What is Short Term Personal Loan and How To Apply Online?

Sometimes, a situation arises when we're in dire need of some quick funds. It may be a medical emergency, payment of school fees, wedding expenses, or any other requirement. It is important under these circumstances to receive the funds as fast as possible. And that is where a personal loan comes into the picture.Getting a personal loan is one of the best ways to get rapid financial assistance when you require it the most. A personal loan can be used for any financial need that you have. Among the many types of personal loans , the short-term loan can also be repaid quickly. Let us get a brief idea about short term personal loans.

Short term personal loans have a tenure of about 1-2 years. This means that you can repay the personal loan within a short span of time. A short term personal loan is also an unsecured loan , so you won't need to furnish an asset as security or collateral. Only your income, credit history and credit score are taken into account by the lender when considering your loan.Even though personal loans are quickly disbursed, the term 'short term' in this regard is not attributed to the disbursal time but to the tenure of the loan. Since you can repay the loan in such a quick time, it is termed as a short term loan.

There are some eligibility criteria that you must fulfil if you need a personal loan. Do note that these criteria may be different for different lenders.

1. You must be a residing citizen of India
2. You should have at least one year of professional experience.
3. You must have been employed for at least 6 months.
4. You must be a salaried individual with a public/private company or MNC
5. You must be between 23 to 60 years of age

When applying for a personal loan, you must furnish the following documents:

1. Duly filled personal loan application form with recent photograph
2. Proof of identity, like Aadhar, passport, driver's license, Voter's ID etc.
3. Proof of address, like a utility bill, passport, Aadhar, passport etc.
4. Proof of age (Can be any of the above)
5. Salary slips of the last 3 months or bank statement of the last 6 months
6. Form 16
7. A cheque for processing fee
8. IT return documents

The interest rates of personal loans can be anywhere between 11% to 24%. A lot of factors are taken into account before an interest rate can be calculated. It all depends on your income, repayment capability, credit history, credit score, existing loans, city of residence, etc.

Applying for a short term personal loan is extremely easy. All you need to do is first decide on a lender by comparing interest rates and loan deals. After you've zeroed in on a lender offering you the best rates, visit the lender's website and apply for a personal loan. Here you'll be asked to fill an application form and upload some documents. After completing these tasks, the lender will assign a representative who will contact you and start processing your loan.Once your documents are verified, the loan officer will sanction your loan, and the amount will be disbursed in your account within 24 hours. In this way, a short term loan can really help when you require some quick financial assistance.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.