Short Term Loan

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Fund your short-term goals with Short Term Loans and advances

Key Takeaways

• Short Term Personal Loans are unsecured and collateral-free loans.
• The tenure of Short Term Loans ranges from a year to 2 years.
• These loans require minimum documentation and get approved quickly.
• The expected CIBIL Score is 600 and above.
• Banks offer competitive Short Term Loan interest rates.

Not having access to cash during unforeseen circumstances can be cumbersome. You may need to arrange money for various medical and personal emergencies. Thanks to instant Short Term Loans, you need not fret about short-term money requirements. This type of loan has shorter repayment tenures, is paperless and collateral-free, and the loan amount gets disbursed quickly. To know more, keep reading further.

Short Term Personal Loan

A Short Term Personal Loan is a type of loan that you can repay with 1 to 2 years.  Banks do not ask you to pledge collateral against such loans since a short-term loan is typically an Unsecured Loan. Usually, Short Term Loans help you pay for urgent financial contingencies.

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Short Term Loan – Features and Benefits

Online application

You can apply for short-term loans online via the lender’s website. The application process is smooth and paperless, and you only have to provide scanned copies of your ID, address, and income proof documents.

Quick Approvals and Disbursals

An exceptional feature of instant Short Term Loans is that most banks typically verify and sanction the loan quickly. Funds are disbursed into your savings account within 4-48 hours.

Shorter Repayment Tenures

The title of this article itself indicates that the tenure of such loans is relatively short – ranging from 1 to 2 years. You can repay the loan amount in easy Equated Monthly Instalments.

Interest and Expenses

Banks offer competitive interest rates on Short Term personal loan with minimal processing fees. Other miscellaneous expenses like taxes, pre-closure charges, late payment charges, etc., are stated at the time of application.

No End-Use Conditions

Once the loan amount gets disbursed, you can use it to finance any expense. For instance, you can plan a vacation or a wedding, furnish or renovate your home, purchase gadgets and appliances, etc.

Freelook Period

If you wish to cancel the loan, you can do so within 48 hours of the bank crediting the loan amount into your bank account. Note that the one-time processing fee plus taxes are non-refundable on cancellation after loan sanctioning.

Eligibility Criteria

Essentially, You should:

• Be a resident of India.
• Be a self-employed professional or salaried individual with a regular income source.
• Earn at least INR 20,000 per month.
• Be in the 21 to 60 years age group.
• Show a credit score greater than 600.

Check your eligibility using Personal Loan Eligibility Calculators.

Documentation Required

With instant Short Term loans online, you do not have to bother with providing collateral or hard copies of your documents. Simply scan the standard documents mentioned below and attach them with the duly filled online loan application form.

• Proof of Identity: PAN, Aadhaar /Passport /Driver’s License
• Proof of Address: Utility Bills/Aadhaar/ Passport//Driver’s License, Bank Passbook)
• Proof of Income: Bank Statements, Salary Slips, Filed income tax returns, etc.

Conclusion

Short Term Loans can give you access to quick cash that to finance short-term requirements. These loans are easy to procure and involve a paperless process. Ensure you check your credit history and scores before applying.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.