An emergency situation can arise anytime. It can be a medical emergency or any other urgent expense which would require instant funds. There is no running away from them. What do you do in times of a cash crunch? You might think of taking a loan. A personal loan is the most accessible type of loan. It is an unsecured loan and you can use it for any purpose.
A short-term personal loan is an instant personal loan which you can take when you need immediate funds. Here is why a Short Terms Loan is better than a personal loan when you need funds for a small period.
Features of a Short Term Personal Loan
- Amount of Loan Offered
A short-term personal loan is a loan which you take when there is an immediate need for funds. The amount of the loan which you are eligible to avail depends on your credit score and also your monthly income. The minimum loan amount is ₹ 1,000 and the maximum is ₹ 15 Lakhs.
The repayment period for your loan with Indiabulls Dhani is from 3 months to 24 months. When you take a short term personal you can repay it in a few months itself.
- Processing Fees
The processing fee charged for a short term personal loan can be 1% to 5% of your principal loan amount.
- Prepayment Charges
If you wish to repay your loan before the tenure then there are no prepayment charges for loans till Rs. 20,000.
Benefits of a Short Term Personal Loan
- Instant Money
A short-term personal loan provides you with the much needed instant funds. As the process is digitized, you can avail an instant personal loan online and get the approval on the spot. Once you get an approval, the money gets disbursed in your account immediately.
As the tenure is for a shorter period, you can predict your financial situation and take a loan accordingly.
- Money Saver
Short term personal loans save you from paying more interest. It is an unsaid rule that the longer the tenure, more interest is what you pay. So if you avail a short-term loan you pay less interest as compared to a long-term loan.
- No Collateral Needed
As this is an unsecured loan, you do not need to keep any collateral.
- Minimum Documentation
This loan is dependent on your credit score. So when it comes to documentation all you need is your credit report, bank details, and personal identification details, all of which are digitally collected and processed.
- Good Credit Boost
As you pay this loan in a short-term, it improves your credit score. This can work in your favor if you wish to avail any kind of loan in the future.
When you take a short-term loan you need to be absolutely sure of your needs and take the loan. A short-term personal loan is definitely the option when in need of immediate funds.