Shortage of funds can arise anytime due to unanticipated events and emergencies. Thankfully, due to a plethora of loan options being available in India, things are becoming easier with each passing day. Events like an unplanned vacation or sudden cash crunch can lead to a need for financial assistance. Short-term loans are designed to provide help during such occasions, rendering it the perfect solution for your immediate cash needs. They can be defined as unsecured loans, which have a tenure of one year or less. It’s easy to procure this type of credit due to minimal paperwork and relatively quick processing time. Often, people ask, “How does short-term loan work?” So in this article, we are going to explain just that and more.
Applicant must be an Indian citizen.
You should be either salaried or self-employed.
Salaried individuals should be between the ages 13-58 years to qualify for a short-term loan.
The following documents will be required: Pan Card, Passport/Aadhar Card/ Driving Licence and bank statements for the previous 3 months.
Short-term loans are distinct and possess many desirable characteristics that make them interesting. Let’s discuss some of them in the following paragraphs.
Low credit scores
This won’t impact your chances of getting a short-term loan as compared to other types of credit. Your credit scores won’t be considered in the context of this loan. This emphasises the ease with which short-term loans are obtained. This is perhaps the only type of loan where your credit score won’t have any bearing. You can get a personal loan for low CIBIL score.
No credit checks
Yes, you heard that right! While many loan applications get rejected on the basis of past credit history, short-term loans are an exception to this rule. Your creditor will not be interested in your credit report and will approve your loan application right away. And now, you can also avail a personal loan with low credit score.
The loan money can be used for any purposes, including financing your business, paying your child’s school fees, etc. This means you have the freedom to spend your loan money on anything. Additionally, the repayment period will be significantly lesser than other types of credit. This means you won’t be embroiled in any deals that require long-term commitment.
This loan type generally involves the least amount of paperwork, with reliable institutions like Finserv MARKETS approving it in just 3 minutes! Many layers of the approval process are eliminated for your short-term loan. Also, the loan amount will be electronically disbursed quickly to your bank account. The overall process can be termed as instantaneous.
There are many varieties of short-term loans available in the market. Here are some of the most common ones.
Synonymously known as swing loans, these are unsecured loans that help you combat short-term cash crisis. In India, such loans are taken while the customer is buying or selling his/her property. Commonly used by real-estate buyers, this loan comes handy while making the down payment for your new house.
They are secured loans that can be procured against your savings, insurance, securities and NSCs. The maturity value of your investment/saving against which the loan is applied will determine the total loan amount.
Short-Term Personal Loans
Perhaps the easiest to obtain of the lot, this Bajaj Finserv Personal loan variant requires the least amount of paperwork and the entire application process is easy, quick and convenient.
Let’s take a look at additional features of short-term loans.
The repayment tenure can be anywhere between 6 months to 5 years as per the loan agreement.
Most institutions provide short term personal loan up to Rs. 25 lakhs with the minimum credit amount being Rs. 50,000. The loan sum will be decided on the basis of your repayment capabilities.
They are generally high for short-term loans and range between 12 to 20 percent per annum.
Now that you’re familiar with short-term loans, you can certainly avail its benefits when the need arises. You can avail a Bajaj Finserv Personal Loan from Finserv MARKETS and can enjoy benefits like quick disbursement, low EMI, minimal documentation and a list of other features.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”