Short Term Home Loan

Home Loan for Short Term Requirements

Know all details about home loan for short term requirements

✓ Home Loan from ₹5 Lakhs To ₹5 Cr ✓ Multiple Lending Partners ✓ Attractive Interest Rates

While most of us would require a home loan to fulfill our dreams of having our home, many of us may be apprehensive about taking one. Making a commitment that can go on for decades, is indeed something that needs careful planning. However, the option of a Short-Term home loan has made things simpler and easier. 

With a short-term home loan, you can get finances for your home instantly and pay them within a short span of time. Both the interest and the EMI are low as compared to the long-term home loan. 

Features & Benefits of Home Loan for Short-Term Requirements

A short-term construction loan or home loan offers a wide range of benefits and features to the customers. Let's have a look at their-

  • Low EMIs: Because of the shorter repayment tenure, the EMI is also low and accordingly, you can easily manage to repay the loan amount. Mostly the tenure of a short-term home equity loan is less than a year or so. Hence, with quick and low EMI, you can repay it without any hassle. 

  • Low-Interest Rate : As the tenure is shorter for a short-term home loan, you repay the amount faster. This is why the interest applicable is also, especially when compared to a long-term home loan. 

  • Fast Approval: Most short-term loans for house purchase are approved instantly. You do not have to rush or wait for longer to get the loan approved.

  • Least Documentation: A short-term home loan requires the least documentation for quick approval. There are only a few documents that you need to present and you will have the loan disbursed immediately. 

  • No-Collateral Required: Most of the banks offering short-term house loans do not require you to keep collateral against the home loan taken. So, this is also one process you can skip with a short-term home loan. 

Best Home Loans for Short-Term Requirements

Here are some of the best home loan providers you may want to check on-

Partner Banks

Rate of Interest

YES BANK

8.95% to 11.80%.

ICICI Bank

7.60% onwards

Axis Bank

6.75% onwards

IDFC First Bank

7.50% onwards

Disclaimer: The interest rates mentioned above are subject to change as per the norms and policies of the banks.

Eligibility Criteria for Home Loan for Short-Term Requirements

Like every other loan, for a short-term home loan also, you need to fulfil some basic eligibility criteria to avail of the facility. These are simple and easy to fulfil so do not worry, you can easily get the loan. Check out the eligibility criteria-

Criteria

Details

Nationality

Indian

Age

23 to 62 years of age

Employment Type

  • Salaried individuals (Minimum 3 years of work experience) 

  • Self-Employed 

CIBIL Score

750 or above 

Documents Required for Home Loan for Short Term Requirements

Are you ready for bridging finance to buy a property? If so, do not forget to check out the list of documents required. 

  1. Duly filled and signed Home Loan Application Form

  2. Proof of Identity (any one of the following):

    • Aadhaar Card

    • Voter ID Card

    • PAN Card

    • Passport

    • Driving Licence

  3. Proof of Residence (any one of the following):

    • Aadhaar Card

    • Voter ID Card

    • Bank Passbook

    • Ration Card

    • Passport

    • Utility bills (telephone bill, electricity bill, water bill, gas bill)

    • Insurance Policy Receipt

    • Letter from a recognised public authority verifying the applicant’s address

  4. Proof of Age

    • Aadhaar Card

    • PAN Card

    • Passport

    • Birth Certificate

    • Class 10th Marksheet

    • Bank Passbook

    • Driving Licence

  5. Proof of Income

    • Salaried Employees:

      • Form 16

      • Certified letter from the employer

      • Payslips for last 2 months

      • Appraisal/Promotion letter

      • IT returns for past 3 years

      • Investment proofs (if any) like FDs, shares, etc

    • Self Employed people

      • Income Tax Returns (ITR) for last 3 years

      • Business Licence Details

      • Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a Chartered Accountant)

      • Licence of Professional Practice (for doctors, consultants, etc.)

      • Registration Certificate of Establishment (applicable for shops, factories, and other establishments)

      • Proof of business address

If you are an NRI or PIO, some more documents may be asked for.

How to Apply for a Short Term Home Loan?

One of the quintessential pieces of information is how to apply for a short-term loan? You can visit the official website or the nearest branch of partner banks. Here's how you can do it hassle-free-

  • Step 1: Visit the official website of the lender.

  • Step 2: Now enter the details as asked in the form like personal, financial, and employment details.

  • Step 3: Submit documents as required.

  • Step 4: Pay the fees as applicable.

  • Step 5: After verification, a loan representative will get in touch with you and the loan will be disbursed.

Self-Employed people need to follow the same process. Apart from the aforementioned, they also have to provide details of their business. 

5 Types of Short-Term Loans in India

Check out the 5 types of Short-Term Loans in India-

  • Trade Credit : An affordable way to get interest-free funds. It is an interest-free loan that can be availed for up to 30 days. You have enough time to make a purchase with having to bear any extra charges.

  • Bridge Loans: Availed to bridge the gap between the next loan and current financial requirements. It helps you get funds to buy the property while you wait to get another one. 

  • Demand Loans: A great way to gather funds for an urgency that can be availed against any savings instrument. Depending on the savings maturity amount, the demand loan amount is decided. 

  • Bank Overdraft: Availed on the current account, you can use OD to access cash now and repay later. Even when your account does not have sufficient cash, you can borrow within the sanctioned limit. 

Personal Loan: A Personal loan can be availed for personal financial needs like weddings, education, home renovation, etc. On the basis of factors like your credit score, your monthly income etc. the lender will lend you funds with a flexible tenure.

FAQs on Home Loan for Short-Term Requirements

  • ✔️Which home loan is better short-term or long-term?

    There are various things you need to consider before deciding which loan is better for you. Take into consideration the interest rate, EMI, loan amount, your requirements, etc. And then you will be able to make a clear decision.

  • ✔️What is the minimum duration of a home loan?

    A short-term home loan has a tenure of below 5 years and mostly 1 year. However, for a long-term home loan, the tenure can go as long as 30 years.