Short Term Loans

Lenders planning to avail Short Term Personal Loans should meet the following eligibility criteria:

• Indian residents can apply for Short Term Loans.
• Minimum age of the applicant at the time of loan application should be 21 years and the maximum age at the time of loan maturity should be 58 years.
• Applicants having a minimum monthly income of Rs 10,000 are eligible for Short Term Personal Loans.
• Applicants with credit scores of 750 and above usually have higher chances of availing personal loans. However, lenders offering short term personal loans usually approve applications with lower credit scores as well.

• Duly filled application form with photograph
• ID proof: Voter ID, Aadhar card, PAN card, driving license, passport, etc.
• Address Proof: Telephone bill, electricity bill, rental agreement, ration card, passport, Aadhar card, driving license, etc.
• ITR/Form 16
• Recent bank statement reflecting salary credited into the account

• Shorter tenure reduces the overall interest cost.
• Most lenders usually offer digital loans with quick approval and faster loan disbursal.
• Some lenders also offer instant disbursal in just few seconds.
• These are collateral-free loans with no end-usage restrictions.
• The EMI/NMI ratio of the applicants does not remain blocked for a longer period, thereby improving their eligibility for future loans.

Applicants with poor credit score can also avail Short term Personal Loans.

• Higher Interest Rates: As the loan tenure is short, the interest rate may be higher compared to regular personal loans.
• EMI Burden: Ensure the EMI fits your budget. A high EMI/NMI ratio (more than 50-55%) can affect your future loan eligibility.
• Hidden Charges: Always check processing fees, prepayment penalties, and late payment charges before making an application

• Personal Loans: Best for higher loan requirements. Banks may offer lower interest rates, especially if you have an existing relationship and a good credit profile.
• Loan Against a Credit Card offers quick disbursal against your credit limit. This is best suited for individuals with good credit history and low credit utilization.
• Secured Loans: Options like Loan Against Car, Gold Loans, or Top-Up Home Loans (for home loan borrowers) offer lower interest rates and easier eligibility criteria due to the collateral involved.