At any point in life, square measure able to face a scarcity of funds to fulfill immediate monetary emergencies or obligations that are unforeseen and surprising. once it involves the informal business, and small-scale corporations that represent a lot of of the economy, the payment for the products or services provided is sometimes irregular and erratic. However, within the case of inability to wear down assets wants and income fluctuations thanks to such stray payments will cause discrepancies within the functioning of the business or will cause stagnation in growth and progress. On the non-public front, we frequently face circumstances wherever we have a tendency to square measure in dire would like of funds on Associate in Nursing imperative basis – like wedding expenses, medical emergencies, college fees, and so on.
Table of Content
- 1 What are Short-Term Personal Loans?
- 2 How are short term personal loans different from normal personal loans?
- 3 How can one get a short-term personal loan?
- 4 Who is eligible for a Short-Term Personal Loan?
- 5 What are the Benefits of a Short-Term Personal Loan?
- 6 Is it necessary to link your Aadhar to get a Short-Term Personal Loan?
- 7 What is the Duration of Repayment of a Short-Term Personal Loan?
- 8 How can you Repay the Loan Amount Borrowed in Terms of a Short-Term Personal Loan?
- 9 Is there any need for a Collateral Deposit for Availing Short Term Personal Loan?
- 10 What are the Interest Rates of a Short-Term Personal Loan?
What are Short-Term Personal Loans?
Short-term personal loans are given to individuals who require money immediately in order to fulfil some short-term goal. The repayment tenure is 11 months for availing a short-term goal. When you repay the total loan in a shorter period, you are likely to pay a smaller amount of interest. The process of getting the loan is almost paperless and can be done over the internet. The loan amount is disbursed to the bank account of the applicant in a matter of seconds.
How are short term personal loans different from normal personal loans?
The only difference between online personal loans and short-term personal loans is the tenure of repayment. The typical tenure of repayment for personal loans starts from 1 year and goes up to 5 years, whereas, the mandate of repayment of short-term personal loan is just 11 months.
How can one get a short-term personal loan?
If you need a short-term personal loan, then you can get in touch with a number of e-lender over the internet. These companies have come forward to provide for short term goals. All that you need to get a short-term loan from these e-lenders is a smartphone.
Who is eligible for a Short-Term Personal Loan?
The NBFCs analyze the financial stability of a person from his social media profile and digital footprint. Once they are sure about the financial credibility, they extend personal loans to the applicants on a short-term basis. Some of the lenders go through your credit score in order to have a clear picture of financial stability.
What are the Benefits of a Short-Term Personal Loan?
Some of the benefits of a short-term personal loan are as follows:
- Instant approval
- Completely paperless
- Approval over internet
- No credit charges
- Shorter repayment tenures
Aadhar linking is necessary if you wish to avail a certain amount of short-term personal loan. Your Aadhar should be linked with the PAN in order to help banks to grant you loans over the internet.
What is the Duration of Repayment of a Short-Term Personal Loan?
The duration of a short-term repayment will depend on the lender. It keeps on varying from one lender to the other. However, in general, it is dependent on the amount of cash flow. Banks allow you to repay loans even on a daily, weekly or monthly basis. If you think yourself financially capable of repaying the loan in a certain number of days, then you can easily repay it in 30, 60 or 120 days.
How can you Repay the Loan Amount Borrowed in Terms of a Short-Term Personal Loan?
The short-term personal loan is often granted on mobile. The repayment is most of the time done through a bank transfer. You can also pay through cheque. The mode of the repayment largely depends on the lender.
Is there any need for a Collateral Deposit for Availing Short Term Personal Loan?
Banks and NBFCs do not ask for any collateral deposit while approving a short-term personal loan. There is even no need for a guarantor for the loan.
What are the Interest Rates of a Short-Term Personal Loan?
The interest rates of short term personal are 1.5% per month, and it can be 18% per annum. You can calculate the amount to be paid as EMI by the help of a personal loan calculator online.