Personal loans have become easily accessible thanks to the digital era introducing a number of instant loan apps and credit websites. Even the traditional mode of personal loan has simplified the loan application process. Financial firms in India have a set variety of personal loan offering in the form of long term and short-term loans suitable for borrowers from diverse social and economic backgrounds.
Based on the loan tenure, personal loans are categorised as short term and long-term loans. Whether personal loan is required for a new venture, sufficing working capital requirement or paying medical bills, the loan amount and interest rate charged over it are the deciding factors to shortlist the type of loan. If you borrow less, there might be a need of taking another personal loan soon and if excess loan is taken, repaying it on time becomes a burden. Hence, it is important to identify as to which loan type whether short-term or long term will fulfil your financial need at that point of time.
Here are some basic factors differentiating between short term and long-term loans:
Benefits of Short-Term Loan
A short-term loan is valuable especially for small and medium sized businesses or start-ups. Short term loans are also helpful for sudden financial problems. Pay day loans and cash advances are types of short-term loans having the below advantages:
Benefits of Long-Term Loan
Borrowers with a positive credit history can easily acquire a long-term loan to fulfil major expenses in professional and personal lives. The advantages of borrowing a long-term loan are:
Both that borrowers can acquire with a set of personal and income documents. Decide which loan types suits your financial requirement and apply for an instant loan accordingly. Check the eligibility criteria before filling the loan application form.
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.