A short term personal loan is offered to an individual for a short period, usually between one month and a year. These are beneficial to people who cannot obtain longer-term loans from a bank or lender for a variety of reasons. Short-term loans are often unsecured, which means you do not have to put up any money or property as collateral. Short term personal loans can also be referred to as short-term installment loans or short-term financing.

Benefits and features of short term personal loan

End-use flexibility

There are many purposes for which short term loan can be used. This means they can be used to plan a wedding, go on a family trip, renovate your home, pay for education, buy things like gadgets or furniture, start and build a business, or pay for an unexpected medical emergency.

No collateral is required

The majority of short term personal loans are unsecured. This means that you will not be required to offer any assets as security in exchange for the loan amount. Customers who do not have collateral to pledge as security benefit greatly from this.

Fast disbursal

Short-term loan disbursements are typically faster than most other long-term loans. In addition, you do not need to submit proof of the loan amount or any assets because none are generally pledged.

Loan amount

Individuals choose short term personal loans to satisfy short-term necessities such as paying a medical bill, covering a wedding price, or funding an unanticipated trip. A short term personal loan can be obtained for as little as Rs. 5000 and extended up to Rs. 300000. The user can choose the loan amount that best suits his or her needs.

Minimal documentation

The amount of paperwork and documents required for personal loan is minimal. This makes the entire process quick and simple for the consumer, as the paperwork can be filled out quickly and easily.

Tenure

As the name implies, short term personal loans are only for a short period. Short-term loans are easier to obtain and short term personal loan repayment can be done quickly, allowing the borrower to get out of debt sooner. The durations range from one month to twelve months.

Eligibility for Short Term Personal loan

There are certain eligibility criteria to meet in order to apply for a short term personal loan. These include:

  • Applicants should be a resident of India
  • Individuals who are salaried or self-employed are eligible to apply
  • The applicant should be between the ages of 21 and 60

The eligibility criteria for short-term loans may differ from lender to lender, so it is best to check with your lender regarding their eligibility criteria.

Documents needed for Short Term Personal loan

  • PAN Card
  • Residence Proof
  • ID proof
  • Proof of residence 
  • Latest 3 months bank statement
  • Latest 3 months salary slips 
  • 1 passport size photograph

Summary

Short term personal loan can be used for a variety of purposes. This implies they can be used for several things, including vacations, weddings, house renovations, schooling, purchasing high-end items, luxury, and so on. Disbursements for short term personal loans are usually faster than those for long-term loans, and Bajaj Finserv offers short-term personal loans with lower EMI rates of up to 45%. 

Read Also: How Private Employees Can Get A Home Loan From Bajaj Housing Finance Limited

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