Short term loan starting @ 12.5% p.a

Short term loans are loans which as the name indicates, come with a shorter tenure. Apply now and get instant approval.

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What is a Short-Term Loan?

As the name indicates, short-term loans are loans that come with a shorter tenure, usually a year or less. It is a one-time repayment loan that is especially useful if you cannot avail a long-term loan.

Short-term loans are for smaller amounts, and the eligibility criteria are usually relaxed. However, banks will analyse the repayment capacity of the borrower. Since the tenure is low, the rate of interest for short-term loans is usually high. Many banks and NBFCs prefer to give short-term loans as they find them more profitable.

Features and Benefits

Short-term loans are usually disbursed quickly and can be availed by working professionals, self-employed individuals, businesses or enterprises.

As lenders prefer an online application for loan processing these days, the procedure is remarkably simple.

A repayment capacity of the borrower is taken into account while fixing the EMIs.

Though the interest rate of short-term loans is higher, the overall interest you pay is lower than long-term loans due to the shorter tenure.

The credit history of the borrower is not normally scrutinized for short-term loans. However, some lenders may expect you to have a good credit score.

You can repay the loan using the auto-debit feature. It ensures you make timely payments of your EMI.

No end use conditions, once the loan amount is credited you can simply use it finance any purpose. For instance, you can use it to renovate your home, purchase equipment for your office etc.

Some banks levy a nominal foreclosure charge if you repay ahead of schedule.

Short-term loans provide funds for immediate goals and expenses. Usually, banks provide short credit with one-year tenure.

Eligibility Criteria for a Short-term Loan

The eligibility criteria for the Short-term Loan differs from lender to lender. Here are some eligibility criteria set by most lenders,

You must be a resident of India
Must be a salaried employee or a self-employed professional
Minimum age 18 years
Must have a savings bank account
Most banks expect you to have a net monthly income of Rs.15,000 at least
Salaried employees should have a work experience of at least two years, and the self-employed should have run the business for at least one year.

Documents required for Short-term Loan

There are few documents to be submitted with the loan application,

PAN Card
Income Proof – Salary Slip for the past three months for the salaried, balance sheet for the self-employed
ID Proof – License, Aadhaar Card, Passport, Voter ID
Address Proof – Ration card, Rental Agreement, Telephone Bill
Bank Statement for the past six months
Two Passport size photographs

How to Apply for a Short-term Loan

Many lenders allow customers to apply for short-term loans using their online channel. However, checking every one of them is a challenging task. Fincover eliminates the hassle of applying on every bank’s website, thereby saving you a lot of time. With our loan aggregator service, you will find the best short-term loans in a few clicks. Listed below are a few steps that you must follow to apply for a short-term loan.

Log in to Fincover
Click on “Short-term Loan” under “Loans and Deposits”
Enter the details asked for and click on submit
You will get the loan offers of different banks and NBFCs
Select the loan offer that suits you the most and submit the documents required for the process
We will forward your application to the lender and a representative from the side of the lender, will contact you with further details