Sit tight. We are going to answer all your questions on Short-Term Personal Loans.
Personal Loans are a great way to get some instant financial cushioning when you’re facing a cash crunch. They are easy to get, have quick approvals and have a paperless process too! So, what’s not to like about Personal Loans?
But here’s the thing. Short-Term Personal Loans (STPLs) are even better! Just like regular Personal Loans, they too have quick approvals, are easy to get, have a paperless process and have a shorter tenure! So, that’s what you’ll love about STPLs.
And if you’re still wondering about how a shorter tenure can make a difference? Then, here’s what you need to know. A shorter tenure = lower interest paid! Which means, a lot of money saved. Win-win.
We are sure that by now you have a ton of questions to ask us about STPLs. Don’t worry. In this article we will answer all your Frequently Asked Questions (FAQs) on STPLs.
Additional Reading: EarlySalary Short-Term Personal Loan
What are STPLs?
A Short-Term Personal Loan (STPL) is a loan that is given by financial institutions who need money immediately. Typically, a short-term Personal Loan has a tenure of 11 months or lesser. These loans are perfect when you require cash urgently because they get disbursed instantly. STPLs are great to pay for unforeseen medical emergencies, or to pay for that yearly premium on your Term Life Insurance policy.
Are they different from regular Personal Loans?
Slightly. The biggest differentiating factor about STPLs is their repayment tenure. Unlike Personal Loans, STPLs have a much shorter tenure – as little as 11 months only.
Where can I get an STPL?
You can get a short-term Personal Loan from an e-lender. These days a few mobile-based lending companies have come forward to provide such loans to individuals who are in dire need of money. So, all you need is a smartphone and you’re good to go.
How do I know if I’m eligible for an STPL?
E-lenders like EarlySalary and CASHe are examples of mobile-based companies who have developed algorithms to find out a customer’s credibility. So, what it does is, it uses the customer’s social media profile or digital footprint to analyse their earning capacity. So, this way the e-lender gauges a potential borrower’s credibility before granting them a short-term Personal Loan.
Don’t have an online presence? Worry not! You can still check your eligibility for a Personal Loan by clicking on this link.
However, a few e-lenders will be sure enough to check your Credit Score before providing you this loan. But some e-lenders use concepts like Social Loan Quotient (SLQ) in the absence of a Credit Score.
Why are STPLs better?
STPLs are better than regular loans for these reasons:
- They are instant and are great if you have an unexpected payment to make like paying a bill, or paying your mortgage, a medical emergency et al.
- The whole process can be done on your smartphone through the mobile app
- The process is completely paperless. Woohoo!
- No need for credit cheques.
- Quicker approvals, so bye-bye long waiting periods.
- Repayment tenure is short. Duh!
Is Aadhaar Linking Necessary?
What do you think? Yep. You need to link your Aadhaar Card to your PAN card in order for mobile-based lenders to grant you an STPL. If you haven’t done it already, its time you do it. Here’s a quick guide on how to get started.
Check This: How To Link You Aadhaar With Your PAN
What is the timeline for repayment?
This will differ from lender to lender. Generally, the repayment timeline is fixed based on your cash flow. You can opt for a scheme that allows you to repay your STPL either on a daily, weekly or monthly basis. You can also choose to repay your STPL by a certain number of days if you think you’re financially capable. So, it can be repaid within 30, 60 or 120 days too!
What is the mode of repayment?
Since this loan is granted through a mobile app, a bank transfer is the most accepted way of repayment. However, depending upon the lender, you can also avail a cheque payment method.
Additional Reading: CASHe Short-Term Personal Loan
Do I need collateral to avail this loan?
No. A STPL is an unsecured loan and does not need a collateral or a guarantor for that matter.
Phew… No collateral required! No fuss! Why don’t you check some of our Personal Loans that don’t need any collateral?