Life is full of uncertainties, wherein an emergency situation can arise anytime. Be it a medical emergency or any other urgent expense, you would require access to instant funds to deal with the situation in a better way. You can tap into your savings or borrow some amount from your friends or relatives to cater to your financial requirements. However, if the amount required is substantially high, you might have to look for some other source of financing. This is where a personal loan can prove to be extremely helpful. A personal loan is a multipurpose unsecured loan that can be easily availed with the help of leading financial institutions.
A short-term personal loan is an instant personal loan that you can avail when you need immediate funds. Below are some of the features of a short-term personal loan that make it a great source of financing in times of emergency.
Tenure of Loan
As the name suggests, a short-term personal loan has a comparatively shorter loan tenure and hence, you don’t have to carry the debt burden for a longer span of time.
In case of short-term personal loans, the loan amount approved by the lender depends upon your credit score and monthly income. With a good credit score, you can avail a higher loan amount. The maximum loan amount that is you can avail is Rs. 15 lakhs.
Short-term personal loans are disbursed within a short span of time. With leading financial institutions, you can avail the required loan amount within 24 hours. This makes short-term personal loans one of the best credit products to fight financial emergencies.
- With leading banks and other NBFCs, the entire process of availing a short-term personal loan is online. After filling an online application form, you can upload all the required documents online. Also, you can e-sign the loan agreement.
- Minimal documentation is yet another advantage of a short-term personal loan. Apart from basic personal details, financial institutions would require your credit report and bank details while processing your loan application.
The repayment of a short-term personal loan is done in EMIs, which is the easiest way to repay any kind of loan. The auto EMI deduction of the loan makes the repayment very convenient
Lenders never enquire about the usage of the loan amount before approving a short-term personal loan. Therefore, you can use the entire loan amount depending upon your requirement.
Short term personal loans are collateral-free loans. Therefore, you are not required to pledge any collateral while availing this loan. So, it keeps you free from the risk of losing your asset in case of non-payment of the loan.
Now that you are well aware of the key features of a short-term personal loan, ensure that you make the most of it in case of financial emergencies. You should compare various loan offers provided by different financial institutions before availing a short-term personal loan. This will allow you to settle for a loan that best suits your requirements. Lastly, do not forget to read the terms and conditions of the loan agreement carefully before signing it.