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Benefits Of Short-Term Personal Loan
Personal loans are unsecured loans that provide an easy source of finance for your personal or commercial needs. While personal loans allow repayment tenures up to 6 years, short-term loans are also available for your short-term financial needs.
Do you know what short-term personal loans are and how they benefit you?
Let’s find out –
What are short-term personal loans?
Short-term personal loans are loans that are available for a short-term duration, i.e. 1 or 2 years. The loan is issued easily and is repaid within a short period.
Benefits of short-term personal loans
Short-term personal loans are quite beneficial. Here are the reasons why –
- Multipurpose loans
Personal loans are no-questions-asked loans. The lender offers the loan if your application is approved, irrespective of the use that you want to put it to. You can, then, use the funds for meeting any type of financial obligation that you have. Multiple needs, one loan. Short-term personal loans are, thus, also called multipurpose loans.
- Easy availability
Short-term personal loans are offered by most banks and non-banking finance companies. As such, you can avail of the loan easily from a lender offering the best deal on the loan.
Moreover, the loan is available both online and offline. The online platform further eases the availability of the loan. You can apply for the loan online and get the funds without having to step out.
- Simple eligibility parameters
Being of limited tenure, lenders have a simple set of personal loan eligibility requirements. You can avail of the loan if you are an adult, have a source of regular income, and have a good credit score. These are the basic eligibility requirements making it easy for borrowers to get the loan.
- Minimal documentation
When it comes to loan documentation, the process is simple because a few basic documents are needed for loan sanction. You just have to provide your KYC documents, bank details and income proof and the loan would be sanctioned. This simple documentation makes the loan hassle-free.
- Instant source of funds
Given the simple eligibility parameters and minimum documentation, the loan is sanctioned within the shortest time. Many lenders approve and sanction personal loans within minutes or hours. This fast processing makes short-term personal loans the go-to solution for emergency funding.
- Collateral-free loans
Another best part about short-term personal loans is that they do not require you to mortgage a collateral property for the loan. The loan is sanctioned on the basis of your monthly income. As such, even if you don’t have any collateral security to pledge, a short-term personal loan can give you the funds that you need.
- Affordable interest rates
Lastly, the personal loan interest rate is quite affordable for your pockets. Lenders offer the loan at competitive interest rates so that you can meet your needs and then repay the loan affordably. You can use a personal loan EMI calculator to ensure that the EMIs are affordable and can be paid easily.
Financial needs can arise at any time. Rather than hampering your well-planned budget, opt for a short-term personal loan to take care of the unplanned financial obligations. Whether it is a medical emergency or if your business demands an inflow of funds, short-term personal loans can come to your aid.
With the aforementioned benefits, the loan can be the right answer and provide you with the funds that you need. Moreover, with a limited repayment tenure, you can repay the loan within a short time and avoid possible defaults.
So, understand what short-term loans are and opt for them if any financial obligation is pressing on your budget.
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