Short term loans are loans given to individuals for a short period, typically ranging from a month to a year. Many people find these useful when they cannot get loans from banks or other lenders for a long time. In general, loan amounts for short-term loans are unsecured, which means that you don’t have to pledge any property or money as security for the loan. Unsecured loans commonly provide short-term financing. It implies that the loan has no collateral to secure the amount. Collateral provided by customers is not obligatorily pledged as security.
Pre-requisites for a short-term loan
There are certain eligibility requirements to meet to apply for a short term personal loan. These include:
- You must be employed or self-employed, working and living in India.
- You need to fall between the age bracket of 21 to 67 years.
- At least Rs. 22,000 income is required depending on your city of residence.
- It is best to check with your lender about the eligibility criteria for their short term loans since they can vary from lender to lender.
Obtaining short-term loans requires certain documents
To get a loan sanctioned, you will need to provide certain personal loan documents. They can include the following:
- Proof of identification
- PAN Card
- A passport, driver’s license, voter’s ID, phone bill, or electricity bill may serve as proof of residence.
- Form 16
- Income tax returns
- Bank statement for the last 3-months (where salary is credited)
- Last three months’ salary slips
- One passport-sized photograph
- Short term loans may require different documents, so it is best to check what documents are needed with the lender.
Places that offer you a short term loan
Download the app
A customer can download the lender’s application from Apple Appstore or Google Playstore if they have a smartphone. One can use a mobile phone to complete the entire loan application process. For the loan to be approved and disbursed to the customer’s bank account, no physical documents must be submitted, and the customer does not need to visit any office.
KYC consists of submitting a few documents to get your personal loan approved. As part of the bulk money transaction, you will also be required to sign the loan agreement and the NACH (National Automated Clearing House) form to enable the automatic deduction of EMIs from your account.
Get in touch with customer service
If the customer can find their lender’s customer service number, they can dial that number and ask for assistance while applying for a short term loan. The banks/financial lenders’ staff will guide you through the online or mobile application process. Use this option when you want to know more about the loan you are applying for, your personal loan repayment, or any other queries to be sorted out.
Customers can register on the lender’s website, click on the loan section, select a short-term loan from all the available loans, and click “apply” to obtain a short-term loan. After completing the application form, the customer can enter personal and contact details. You can submit the documents you need online, including identification proof, address proof, and proof of income.
There is no requirement to submit documentation for the purpose of the loan, and no assets are pledged. As a result, disbursals of short-term loans are relatively quicker than those of long-term loans.
Loans for a short periods are also known as short term loans. It is easier to get approval for short term loans, and they can be repaid very fast, liberating an individual from financial burdens sooner.