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.
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.
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.
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 |
|
750 or above |
Are you ready for bridging finance to buy a property? If so, do not forget to check out the list of documents required.
Aadhaar Card
Voter ID Card
PAN Card
Passport
Driving Licence
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
Aadhaar Card
PAN Card
Passport
Birth Certificate
Class 10th Marksheet
Bank Passbook
Driving Licence
1. 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
2. Self Employed people
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.
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.
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.
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.
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.