Short Term Loans

Features of Short Term Personal Loans

Short term personal loans are usually offered at interest rates starting from 11.99% p.a. onwards for tenures of 1 year or less, with no end-usage restrictions. However, some lenders might also consider personal loans offered for tenures of 2-3 years as short term loans. The applicants availing short term personal loans are not required to provide any collateral or security. Some lenders usually offer quicker loan disbursal to the applicants due to digital loan application and approval process.

Short Term Personal Loan Interest Rates offered by Different Lenders

*Applicable for selected customers

Advantages of Short Term Personal Loans

• Shorter tenures result in lower interest cost.
• The EMI/NMI ratio of the applicants does not remain blocked for a longer period, thereby, enhancing their eligibility for future loans.

Disadvantages of Short Term Personal Loans

Shorter tenures, especially for larger loan amount, would result in higher EMIs for the applicants.

Lenders offering Short Term Personal Loans

Kreditbee

Kreditbee is an online platform that offers short term personal loans at interest rates ranging between 17%-29.95% p.a. It offers instant loan disbursal with minimal documentation to its personal loan applicants.

Bhanix Finance and Investment Limited (CASHe)

Bhanix Finance and Investment Limited (CASHe) offers short term personal loans at interest rates starting from 2.25% per month. The applicants qualifying for personal loans at Bhanix Finance and Investment Limited (CASHe) can get their loans processed in 10 minutes.

SMFG India Credit

SMFG India Credit offers short term personal loans at interest rates starting from 11.99% p.a. onwards. It also offers instant personal loans with faster loan approval and quicker disbursal.

Eligibility Criteria for Applicants availing Short Term Personal Loans

• Minimum age: Around 21 years
• Occupation Profile: Usually offered to salaried individuals employed with reputed private companies or public sector organizations
• Minimum Monthly Income: Rs 10,000-Rs 20,000 depending on the lender
• Credit score: Applicants with credit scores of 750 and above usually have higher chances of availing personal loans. However, lenders offering short term personal loans usually approve applications with lower credit scores as well.

Related Post: Is it still possible to get a personal loan despite a low CIBIL score

Documents Required for Loan Application

• Duly filled application form with photograph
• ID proof: Voter ID, Aadhar card, PAN card, driving license, passport, etc.
• Address Proof: Telephone bill, electricity bill, rental agreement, ration card, passport, Aadhar card, driving license, etc.
• ITR/Form 16
• Recent bank statement reflecting salary credited into the account

Small Ticket Personal Loans

Small ticket personal loans are usually offered for loan amount of Rs 1 lakh or less. Major lenders usually offer personal loans for loan amounts starting from Rs 1 lakh. Only microfinance companies offered loans of such ticket sizes. Now, people requiring small ticket loans have wider consumer choice as many new-age fintech platforms and NBFCs have also started offering small ticket personal loans for loan amounts as low as Rs 1,000.

FAQ’s on Short Term Loan

1. How can I get short term loans quickly?

Ans. Applicants requiring short term personal loans with quick disbursal can approach lenders offering online processing and fully digital on-boarding for their loan applicants. The fully digital processes allows quicker loan processing and disbursal. Alternatively, applicants can also click here to compare the interest rates and other features offered by various lenders offering short-term personal loans and apply for the one that suits their requirements the most.