Near about half of the Indian population is willing to avail loans to meet their financial crisis or to uplift their present lifestyle as per a report. About 28% of this interested population are inclined to avail small personal loans to support their short term financial troubles.
Because of easy availability, short term loans are dominating the Indian credit market. As the name says, these loans can support your immediate financial needs with a short repayment tenor option. Financial institutions like NBFCs provide several loans with such terms at competitive interest rates. You should have detailed information before availing one.
Following are some popular loans that you can look for –
Personal loans are designed to meet your personal needs, such as higher education, home renovation, overseas travel, a grand wedding, etc. You can avail this loan on meeting the basic criteria without any collateral.
Here are the basic criteria to avail personal loan –
- CIBIL score – 750 or above.
- Occupation – Employed (with an MNC, public or private sector company) or self-employed.
- Age – 23 to 55 years.
While choosing a personal loan, you should first check the interest rate. Compare the available rates and proceed accordingly. Also, with flexible tenors of up to 60 months, you can repay the loan. Moreover, you can avail a loan amount up to Rs.25 lakh depending on your eligibility. All you need to know is how to apply for personal loans.
NBFCs like Bajaj Finserv also provide pre-approved offers so you can avail loans in less time and with minimal effort. This offer applies to financial products like home loans, business loans, personal loans, etc. Check your pre-approved offer by providing your name and phone number.
Among the short term loans in India, a bridge loan is mostly popular for financial needs in real estate. As per the name, this loan helps you out with your financial shortages until your big-ticket sized loan is approved. You can avail this loan against your asset; hence, the loan amount can be substantial as per your asset size. Commonly, you can avail a loan amount up to 70-80% of your collateral.
If you hold current accounts, you can avail a bank overdraft facility when you need financial help critically. With this facility, you are sanctioned with an overdraft limit. With this type of short-term loan, you are allowed to make withdrawals over and above your account balance.
Like other types of short term loans, there will be an interest rate levied on the sanctioned amount. The interest rate is usually affordable; however, you may have to pay different charges such as processing fees, withdrawal fees, etc.
You can avail a demand loan by pledging your insurance policies or other savings certificates as security. According to the terms and conditions of the lender, you can receive a certain percentage of your security value as a short term loan amount.
One of the most affordable loans in the market, trade credit does not attract any interest on the loan amount for up to 30 days in most cases. Moreover, you only need to pay interest on the utilised amount. You can also decide whether you will repay the total loan amount within the specific time frame, i.e. 30 days, or opt for EMI option.
In conclusion, from the above information about short term loans, you have an understanding of the types, affordability and also how you can avail these credits. You can opt for any one according to your financial needs and situation.