Everything you need to know about Instant Short-Term Loans
Short-term loans are loans taken for short durations like less than a year. They are obtained from banks and NBFCs, and the interest on these loans is paid on the principal amount.
Features
- Individuals and businesses are eligible to apply for short-term loans.
- Short-term loans can be approved within a day
- Types of Short-Term Loans in India
There are different types of loans available for a short period. Here are some of them
Personal Loans :
You can take an instant Personal Loan. Salaried and self-employed individuals can easily avail of these loans, but they come at a higher interest rate and are issued within 2-3 days. You can pay this back within 1 to 5 years.
SME Short-Term Loans
These are loans extended to companies to meet immediate requirements. And different banks have different criteria, so you can check with the respective banks for details.
Bridge Loans
These loans are taken to help you till you get another loan. This is usually used for property transactions as the funding comes through in awaiting future returns.
Demand Loans
These loans are meant to meet urgent financial needs. You can avail of these at banks or NBFCs. The maturity value of savings will determine how much you can borrow as a professional loan. Banks accept insurance policies as collateral, and the loan amount could be approximately 80% of the maturity value of the instruments provided as security.
Eligibility Criteria for Short-Term Loans
- The applicants must be above 21 years of age.
- The required documents need to be provided
- The company should be earning a profit consistently
- A certain annual revenue may be expected
- Documents Required for Short-Term Loans & small Personal Loans
- You must have a PAN card, proof of income, proof of residence, proof of age, identity, employment proof and your bank statements for the last six months.
How to apply for a short-term loan
The application process for short-term loans varies from lender to lender. But the general steps include visiting the website, or you can even visit the lender’s office. Fill out the application form and submit the specified documents. Your loan will be approved if everything is proper when you complete this.