Whether it’s a marriage expenditure or a travel expense, short-term personal loans are ideal to meet short-term financial needs. Short-term personal loans are unsecured loans that can be used for any purpose. These type of loans do not require any security or collateral. The short-term loan amount can range from Rs.50,000 to Rs.30 lakhs. The loan tenure can be between few months to 5 years.
Listed below are the benefits and features of short-term personal loans:
There are several factors to consider while choosing a personal loan in order to ensure the borrower gets the best possible deal. Factors such as:
To obtain a suitable short-term personal loan, the borrower should meet the following eligibility criteria:
The documentation process in the case of personal loans is very simple, and hassle-free, with minimum paperwork, and quick processing time. The following documents are needed for loan application:
Listed below are the applicable interest rate and fee for short-term personal loans:
|Loan amount||Rs.50,000 to Rs.30 lakhs|
|Loan tenure||6 months to 5 years|
|Loan issue time||48 to 72 hours|
|Interest rate||12% to 20% p.a.|
|Pre-payment charges||Varies with banks|
|Processing fee rate||1% to 3%|
State Bank of India offers specialised loan schemes for salaried individuals during major festival seasons. HSBC India offers short-term personal loans with a flexible loan repayment period of up to 5 years. Borrowers can avail a maximum loan amount of up to Rs.15 lakhs. Repayment options include EMIs, an ECS or an SI on the borrower’s bank account.