Short Term Loan
The short term loan is a type of loan which can be availed for a short period of time. The tenure of this loan is mostly 1 year or less. This loan is very useful for those who want a loan for short tenure. Such types of loans usually have smaller principal payments, shorter tenures and higher interest rates.
Types of short term loan:-
- Bridge loans
- Payday loan
- Bank overdraft
- Demand loan
When a customer knows that they will have money after some time but they need money immediately, in this situation customer can opt for a bridge loan. The bridge loan is a secured loan due to which property has to be pledged to avail this loan.
Sometimes such a situation comes that the salary is exhausted and there is time for the next salary to come, then in such a situation, if you need some money, then the customer can choose the payday loan. The customer has to pay back the loan amount when their salary comes.
This is a facility provided by the banks to the current account holders. With this facility, current account holders can withdraw cash more than the amount they have in their account. However, they have to pay back the money they had withdrawn more than their account balance.
The demand loan helps customers in urgent need of funds. You can avail this loan by pledging your insurance policies or any other savings instruments.
Eligibility criteria for short term loan:-
- The candidate should be at least 18 years old.
- Candidate should be Indian residence
- Applicant should have a saving account
- Candidate must either be a salaried employee or a self-employed individual/business owner.
- If candidate is a business owner then his business should be at least over 1 year.
- If candidate is salaries then he must have worked in one place for over 2 years.
Documents required for short term loan:-
- Applicant’s identity proof like aadhar card, voter card, PAN card or driving licence etc.
- Applicant’s residential proof like aadhar card, voter card or utility bill etc.
- Candidate’s income proof such as salary slip of the last three months
- Bank statement of the last six months
- Candidate’s two passport size photographs
How to apply for short term loan?
- Go to the https://www.bankagent.in/
- Search for the short term loan
- Choose the bank by which you want to take a loan
- Click on the apply now button of the bank
- Fill the form and submit it with the documents
Short term loan providers in India:-
- Bank of Baroda
- Moey in minute
- Early salary
- Fund tiger
Benefits of short term loan:-
- Short term loans are easy to repay.
- Most banks do not charge pre-closure charge.
- The interest rate is higher on this loan but the total amount that has to be repaid is lower due to its tenure being lower than other loans.
- Customers can choose the tenure according to their convenience.
- EMI plans are set keeping in mind the customer’s repayment capacity.