What are Short-Term Loans?

What are Short-Term Loans?

Short-Term Personal Loan?

Facing a financial crunch? A sudden paucity of funds? Short term loans can come to your rescue. Short-Term Personal Loan is intended to improve your cash flows for a short duration of time. They usually have a tenure of less than a year and are specifically structured to meet short term requirements.

You can avail short term loans for a variety of purposes. For instance, you can get a loan for a short vacation. Above all, you can make the repayment within loan tenure. Generally, the amount involved in these kinds of loans is small and hence, they are mostly unsecured. This means that you do not need to provide security or collateral to get such loans.

Short-term loans can help you meet your financial objectives without disturbing your overall financial plan. Plus, many institutions provide short-term loans at the click of a button, with easy and quick disbursement options. Short-term loans offer attractive interest rates that can even spared you of high-interest rates that come along with conventional loan processes.

Features of Short-term Loans

Short-term loans offer many features that combine the convenience of quick money along with easy and structured repayment options. Most of these short-term loans are provided by private lenders or financial institutions. You can engage with them and acquire your loan with minimum hassles and documentation, contrary to the usual loan procedure. Most of all, you can easily apply online and obtain your loan within a matter of minutes. Tailored to meet a large array of requirements, short-term loans can be your answer to all temporary and interim financial issues.

Credit Score

Loans are disbursed depending upon an individual’s credit score. In other words, your credit score determines your eligibility, whether you are qualified to be given a loan. Your credit score is indicative of your repayment abilities.  Your credit score can become a difference between whether you can get a loan or not. A good credit score represents sound repayment abilities i.e. based on your past record, you can pay back your loans on time or not.

A major advantage of short-term loan is that you can get them even if you do not have a good credit score. While most lenders do tend to check on your credit score to make sure you are capable enough of paying back the principal amount long with the interest as stipulated, it is mostly at the discretion of the provider. Hence, short-term loans can provide for a solution in case you have been turned down by conventional lenders owing to your bad credit score.

Your credit score also plays an important role in determining the interest rates which will be levied on you for repayment purposes. This means that if you have a good credit score, you can avail the loans at an attractive rate.

Types of Short-term loans

Depending upon your financial requirements, there are a variety of short-term loans that can be taken. Major categories of short-term loans includes

Personal Loans

Short- term personal loans can be utilized for a variety of purposes, ranging from financing a vacation to paying for emergencies. Personal loans can be easily availed online by uploading required documentation and having the amount transferred to your account in a matter of minutes. These documents may include physical signatures or a post-dated cheque. many digital lending applications readily provide quick loans even if you do not possess a credit history.

Most app-based enders offer an interest rate of 2% per month. Since the interest rate is quite bearable, most people can pay them off within a span of 90 days. The loan amounts usually range from Rs 5,000 to a maximum of Rs 1,00,000.

Business Loans

Business entities can also apply for short-term loans to tide over any interim financial emergency the business might be facing. Also, an influx of cash can also accelerate the business. Short-term loans are designed to meet immediate financing needs, like bridging gaps in cash flow, dealing with unexpected needs for extra funding and taking advantage of new business opportunities. A short-term loan can cover your costs while keeping your daily accounts payable intact.

Short-term loans can be your answer to any financial emergency in the short run whether it is a business entity or an individual.

Apply for Personal Loan Online @ 10.99%

Related Post

Leave a Reply