Emergencies don’t come announced. If you are looking for Short-Term Loans to help you out of a sudden financial crisis, here is everything that you will need at your disposal.
Whether it’s an unplanned vacation or a sudden cash crunch, we all need a financial boost from time to time. While planning for emergencies is essential, it may not always be enough to meet your expenses. Short-term loans are designed to help you keep things in order when times are rough, and money is tight.
What Are Short-Term Loans?
Short-term loans are generally unsecured loans with a tenure of 1 year or less. They involve minimum paperwork and are simple to procure.
Eligibility Criteria
- Applications are open for both salaried employees and self-employed individuals.
- You will have to be between 21 years and 60 years old in order to apply.
- The approval of the loan may also depend on your ability to fulfil any other criteria set by the lender.
Short-term loans are unique, and they come with a set of features that make them desirable. Take a look at some of them.
Low Credit Score? No Problem!
While a good Credit Score is a mandatory requirement for most loans, short-term loans stand out as an exception to this rule. Short-term loans don’t put a lot of emphasis on Credit Scores. So, if you have a low Credit Score – don’t fret, you’ll still find your way in.
Additional Reading: Improve Your Credit Score With These 6 Time-Tested Hacks
Goodbye To Credit Checks
Whenever you apply for a loan, the borrower pulls up your credit report to check your credit usage history. If they are dissatisfied with the way you have handled your credit, they may reject your loan application. For short-term loans, however, this doesn’t stand true. Your bank may agree to let you borrow even without checking your credit history.
Finance Your Business
Short-term loans don’t just facilitate your personal needs, they are great for your business as well. If there is a cash-flow situation that you are looking to address, you can take a short-term loan and get instant financing for your business. This will help you save time while ensuring you don’t get trapped into a long-winded loan agreement with your bank.
Minimal Paperwork
The biggest problem with loan applications is the fact that it requires a huge amount of paperwork followed by multiple layers of approval. It usually takes a lot of time and ends up causing unnecessary delays. Thankfully, for short-term loans, this process is shortened and simplified to make sure you receive your approved loan amount instantly.
Additional Reading: EarlySalary Short-Term Personal Loan
Short-term loans come in various shapes and sizes. Here’s a list of some of the most common ones.
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Bridge Loans
Also known as swing loans, these are unsecured loans to help you mitigate a temporary cash-flow situation. In India, these loans are associated with the buying and selling of property. Generally, these are used by real-estate buyers to pay for the down payment of the property they are looking to buy.
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Demand Loans
These are secured loans which can be obtained against savings and investment instruments like insurance policies, NSCs and securities. The amount that you can borrow will depend on the maturity value of the saving/investment instrument against which you have applied for the loan.
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Short-Term Personal Loans
Short-Term Personal Loans have found immense popularity among loan seekers because they are quick, easy and hassle-free.
Additional Reading: FAQs On Short Term Personal Loans
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Loan Tenure
The repayment period for Short-Term Personal Loans can be anywhere between 6 months to 5 years depending on your ability to repay.
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Loan Amount
The maximum amount that you can borrow is Rs 30 lakhs while the minimum amount is fixed at Rs 50,000.
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Interest Rates
The interest rates are a little high for Short-Term Personal Loans. Depending on the bank, it could range anywhere between 12 percent to 20 percent per annum.
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Loan Issue Time
Short-Term Personal Loans are lightning fast when it comes to issuing time. You can expect to get your loan issued within 48 to 72 hours.
Short-Term Personal Loans can be a definite problem-solver in trying times. If you are careful with your finances and positive that you can repay the borrowed amount quickly, you should give this one a go.