Facts about short-term loans | Fusion - WeRIndia

Facts about short-term loans

Facts about short-term loans

Short-term loans come in handy by solving short-term financial needs.

In India, there are many lenders that offer short-term loans to prospective borrowers.

Borrowers can apply for these loans through online channels.

Here are some important facts about short-term loans:

  • Short-term loans are easily and quickly disbursed.
  • Salaried employees, self-employed people, and businesses can avail these loans.
  • Normally the repayment tenure of short-term loans does not exceed one year.
  • The interest rate for short-term loans is higher than that of personal loans. But, due to lower repayment tenure, the overall amount that the borrower pays in the form of interest is lower than that.
  • Majority of lenders allow application online. Borrowers can submit their documents through online channels, hence the transaction does not require any paper documents.
  • Before applying for a short-term loan, compare various loans of different lenders. Check the disbursal time, processing fee, interest rate, late payment fee, and also the available customer channels.
  • Check your eligibility before you apply for the loan. You should have an income of ₹15,000 or more to get a loan. Salaried employees should have at least 2 years of experience in that organization and businesses should be at least 1-year-old.
  • Then, fill the online application form and submit it to the lender. You have to furnish all the required details along with the required documents.
  • The required documents include proof of income like salary slips for the last 3 months, proof of residence, proof of employment, bank statement, proof of age, and PAN card along with passport size photographs.
  • After submitting the necessary documents, you have to wait for the lender’s approval. Based on the documents, the lender can either approve or reject your loan application.
  • The lenders will also consider the repayment capacity of the borrower.
  • You will receive the funds into your bank account if the lender approves your application.

Image Credit:  LendingMemo.com / CC BY 2.0

Image Reference: https://www.flickr.com/photos/lendingmemo_com/45601152345/

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