Short Term Loan

Friends, as you all know. That short term loan is that which is given for a very short time. Its duration ranges from 15 days to five years. There will be many such lenders in the market who give short term loans. All these loans are securitized loans. There is no guarantor in this. Its EMI is very high. The interest rate in this is very high. The highest interest rate can be up to 48% in this. All these loans are very risky.There are many such in the market. When we need the most urgent cash, we turn to them because at that time no one is visible in front.

The process of taking short term loan is very quick. In this you do not need to provide any physical document. Just your Aadhaar number should be linked with mobile number and PAN card should be linked with mobile. Just fill in the basic details. Your EMI chart appears in front of you. It is available instantly through apps.

Types of Short Term Loan, Personal Loan, Overdraft Facility, Bridge Loan, Demand Loan, Payday Loan and Buy Now and Pay Later

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Benefits and Features of Short Term Loan:

In short term loans, the need for physical documentation is negligible and the loan is approved quickly.

Short term loans keep small business alive. A short term loan is required for the smooth running of the business.

If one wants to plan a foreign trip, then a short team loan gives a lot of benefit.

This type of loan is very helpful in emergencies.

Your CIBIL score should be 600 plus to avail this loan.

All the short term loans mentioned above require minimum documents and are quickly disbursed.

Disadvantage of short term loan:

As everyone is aware, every coin has two parts. So is it in this too. Let's try to find out.

Its biggest demerits are that it offers less loan and its rate of interest is very high.

You incur pre closing charges for one short repayment.

Personal Loan:

Personal loan is a financial instrument that helps you to put money for multiple uses. When you opt for a personal loan, you pay a specific amount at a specified interest rate and it is repaid for a fixed pay term. Its minimum term ranges from 3 months to 5 years. In this, a minimum loan of Rs 10000 to 50000 lakh is available. The minimum rate of interest in this ranges from 10% to 24%.

Overdraft facility:

Overdraft is a financial facility, through which you can withdraw money from your bank account even when there is no money in it. So it is called 'overdraft'. Each bank maintains an overdraft for its customer and sets a time limit. Depending on the customer's bank relation, the customer can withdraw money only up to the prescribed limit. The interest rate starts from 12% in this. In this, 5 crore banks provide overdraft facility.

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Bridge loan:

We take a large loan to buy a flat, expensive car or any expensive property, but sometimes we also need a small amount which is called down payment. If you also need instant money for short duration then it is called bridge loan.

Bridge loan is basically a short term loan, which you can use to meet your immediate needs. This is a good option for those who do not like to bear the burden of long term debt. If you have a regular source of income, a bridge loan can be a good way to avoid a traditional loan, with a monthly rate of interest of 9% 18% and you can take it for a week to a week.

Demand loan:

Demand Loan This is a type of secured loan. In this, loan can be taken by giving something or the other. Both banks and non-banking companies offer such loans against insurance policies and small savings instruments such as national savings certificates. The loan amount depends on 60 per cent to 85 per cent of your savings value. In this, the interest rate is charged on your outstanding amount.

Payday loan:

This type of loan is charged on a day to day basis. In this, you have to pay on a daily basis. It is a high cost unsecured loan which can be availed during short term financial crisis. One can apply for this type of loan both online and offline. This should usually be repaid on the customer's next pay day. These types of loans are beneficial when a employed professional earning a monthly salary needs an urgent loan,

This loan can be used to pay one's regular bills, to finance other household expenses, or to take care of any other short term requirement. These loans usually have high interest rates.

Buy now and pay later:

Many stores these days offer Buy Now Pay Later loans both in person and online and offline. By shopping this way shoppers can exit the store, then pay later either through installments or through monthly payments that start after a specified period. These loans can be lucrative. If you are short of cash or don't have it now, don't worry, this facility can be availed. The interest rate in this can be from 10% to 30%.

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