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What is a Short-Term Personal Loan?

Availing a short-term personal loan can help you manage unforeseen emergencies. Depending on the lender, you can repay this loan within a short tenure of 6-60 months. A short-term loan can tackle your planned and unplanned expenses, from funding your dream vacation to paying your medical bills. 

 

Moreover, you can apply for a short-term personal loan online and get it approved within a few minutes. This is possible because of simple eligibility criteria and a minimal documentation process. 

 

When planning to apply for a short-term loan, all you need to do is visit Bajaj Markets and avail exciting loan deals from various lenders. 

Eligibility Criteria for Short-Term Personal Loans

When thinking of applying for an instant short-term loan online, meeting the following short-term loan eligibility criteria is vital:

  • Nationality: Indian

  • Age: Between 21-60 years of age

  • Employment Criteria: Salaried and employed in a reputed firm

  • CIBIL/Credit Score: 750 or above

  • Salary: Depends on the city you reside in and the criteria set by the lender

 

You can use a personal loan eligibility calculator to estimate the sanctioned amount before applying for an instant short-term loan.

Interest Rates for Short-Term Personal Loans from Various Lenders

Name of the Lender

Applicable Interest Rates

Standard Chartered Bank

11.00% - 15.00% p.a.

Tata Capital Personal Loan

11.25% - 14.49% p.a.

Kotak Mahindra Bank Personal Loan

10.50% - 16.99% p.a.

YES Bank Personal Loan

20.00% - 22.00% p.a.

SMFG India Credit

11.99 % p.a. onwards

Kreditbee

18% - 29.95% p.a.

HDBFS Personal Loan

14.99% p.a.

Cashe

2.25% per month onwards

Disclaimer: The current interest rates are subject to change at the lender’s discretion. So, check the lender’s website before availing these short-term loans. 

Short-Term Personal Loan Providers

Here’s a list of a few lenders offering affordable short-term personal loans: 

1. SMFG India Credit

You can avail these loans at nominal interest rates starting from 11.99% p.a. Additionally, the lender disburses your loan quickly, thanks to its speedy approval process. 

Interest rate

Minimum Monthly Salary

11.99% p.a. onwards

₹20,000

2. Kreditbee

With annual interest rates ranging from 18% to 29.95%, Kreditbee is an online platform providing affordable short-term personal loans. All you have to do is submit minimal documents for quick and easy loan approval.

Interest Rates

Loan Amount

Tenure

18%-29.95% p.a.

₹1,000 - ₹3 Lakhs

62 days to 24 months

3. Cashe

You can avail personal loans from Cashe at monthly interest rates of 2.55% onwards. Moreover, you can even get your loan sanctioned with funds credited within 24 hours.

Interest Rate

Loan Amount

Tenure Duration

Minimum Monthly Income

Processing Fees

2.25% per month onwards

₹1,000 to ₹4 Lakhs

90 days to 540 days

₹12,000

Up to 3%

Disclaimer: The current interest rates are subject to change at the lender’s discretion. So, check the lender’s website before availing these short-term loans. 

What are the Benefits of a Short-Term Personal Loan?

Be it any emergency, you get the funds quickly with this type of loan. All you need to do is get through the lender’s verification process. This is the main benefit of applying for short-term loans online, as the disbursement happens within 24 hours. 

What’s more, as the short-term personal loan repayment tenure is not lengthy, this loan becomes a cost-effective one for you. This way, with flexible lending tenures and affordable short-term loan interest rates, opting for this line of credit facility is beneficial.

 

Do note that these perks apply across various types of short-term loans. For a more comprehensive overview, here are some of the top benefits. 

  • Near-Instant Financing: You can quickly address urgent financial needs within hours.

  • Collateral-Free Finance: Avail the loan without pledging your collateral.

  • Quick approval: Apply for a short-term personal loan online and get quick approval.

  • Minimal Documents: Submit some essential documents to get funds instantly.

  • Flexible Repayment Terms: Repay your loan conveniently with flexible tenures of up to 5 years.

  • Pre-Approved Loan Offers: Avail pre-approved offers to speed up your loan application process.

  • No Additional Charges: 100% transparency in loan fees.

  • Up to 45% Lower EMIs: Pay up to 45% lower EMIs with the flexi personal loan facility.

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Important Documents Required for a Short-Term Personal Loan

Submit the following documents to get access to quick funds. However, note that documentation can vary from one lender to another.

  • PAN Card

  • Proof of residence (Passport/Driver’s licence/Voter’s ID/Phone or Electricity bill)

  • ID proof

  • Recent passport-size photograph(s)

  • Salary slips for last 3 months

  • Latest 3 months’ bank statements (salary account)

Processing Charges and Fees for Short-Term Loans

  • Penalties: You have to pay penalty interest on the amount due if you default on your monthly repayments. This penalty interest amount increases daily.

  • Processing fees: When availing a loan, you have to pay a small amount towards processing charges. Mostly, these charges are not inclusive of the GST levied.

  • Delayed Payment Charges: Note that defaults in EMI can also attract late payment fees.

  • Applicable interest rates: Since the interest rate is calculated depending on the loan amount and tenure, you can repay the principal and interest within a shorter timeline at cost-effective rates. This way, a short-term loan is more affordable than a long-term loan.

 

For example, PaySense charges monthly interest rates ranging from 1.4% to 2.3%, whereas CASHe has monthly interest rates starting at 1.5%.

How Can I Apply for a Short-Term Loan?

You can apply for a short-term personal loan using the following ways:

1. Through Lender's Website

  • Visit the lender's online portal or website

  • Select ‘Loan Section’

  • Choose short-term loans 

  • Select the ‘Apply’ option

  • Enter your personal and contact information

  • Upload the required documents and click on the ‘Submit’ option

2. By Contacting the Customer Care Team

Another method is to call the lender's customer helpline and ask the representative to help you with the short-term loan application. Then, the personnel will provide the necessary instructions, and you may proceed accordingly.

3. Using the Lenders’ Mobile App

Downloading the lender's mobile app is another option for applying for a short-term loan. This makes the loan application procedure simple to complete. That’s all it takes, and you can get funds without visiting the lender’s branch.

4. Options for Repaying Short-term Loans

You can choose a convenient repayment option that best suits your requirements. Here are a few options to pay your loan EMIs: 

  • UPI

  • Net banking using NEFT or IMPS  

  • Auto debit form or NACH, enabling monthly deductions from your bank account

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FAQs on Short-Term Loans

What is the loan amount offered for short-term loans?

Loan amounts for short-term loans can range from ₹1,000 to up to ₹3 Lakhs.

Is any security required for a short-term loan?

No, there is usually no need for collateral as security for the loan amount.

What is the duration of a short-term loan?

There are different repayment terms based on the lender. While you can repay a few loans within months, several other loans have a repayment tenure of up to 5 years.

Are short-term loans unsafe?

A short-term loan may be the best option for someone who requires immediate funds and can repay the amount (plus interest) within a short time frame.

Does a short-term loan impact your credit score?

A short-term personal loan may not significantly impact your credit score. However, EMI defaults can decrease your credit score. So, it is ideal to pay your instalments without delay to maintain a good track record.

What do people avail short-term loans?

Short-term loans are used for various reasons, including weddings, vacations, renovations, paying off debts, and emergency fund requirements.

Do short term loans have high interest rates?

Short-term loan interest rates vary across lenders and tenure durations. As you are not pledging any collateral, lenders can charge high interest rates considering the risk factor.

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