Email 
WhatsApp 
How to Track Personal Loan Application Status Online?
Personal Loans are the best funding options for people who nee . . .
15 Mar, 2023
Apply for Instant Loan
Download Our App
Products Personal Loan Two Wheeler Loan Used Car Loan Loan Against Property Loyalty Loan Home Loan Insurance Apply for Instant Loan
You might need a short-term loan at different times to cover emergency expenses or fulfil your desires. Many financial institutions provide different types of short-term loan products without collateral, security, or guarantor. Although they may extend the loan quickly within a few hours, they are called short-term loans due to their brief repayment terms of up to 36 months.
In the following sections, we will cover the different short-term loan types, their features and benefits, who can obtain them and how.
A short-term loan is a financing facility you may obtain for a short period to cover an urgent expense. Based on the short-term loan types you borrow, the repayment tenure may range from 6 months to 36 months. Opt for a loan product with flexible repayment options to keep the EMIs manageable.
Financial institutions offer different types of short-term financing you may borrow to suit your needs. Some of the best options include the following:
Trade credit is an affordable way to obtain an interest-free loan for an urgent purchase. Usually, you must repay it in 30 days. However, ask for a longer tenure to fit it into your budget. A flexible tenure allows additional funds and time to finance various initiatives.
A bridge loan helps cover the expenses until you obtain another loan of a bigger value. Many people take these loans in India for property transactions. If you are waiting for funds from another loan, a bridge loan can cover the gap with sufficient funding for a short period. It is a preferable funding option when you want to wait for the right time to apply for a bigger loan with better rates and terms.
Also Read: Choosing Between Short Term And Long Term Loans
Personal Loans are unsecured loans you can use to cover various expenses like weddings, education, home renovation, medical emergencies, or travel costs. Lending institutions evaluate your Personal Loan eligibility based on your employment, credit history, income level, etc. What makes a Personal Loan different from others is its higher loan amount and longer repayment tenure of up to 36 months.
You may obtain a demand loan against your insurance policy or another savings instrument like NSC to cover an urgent need. The maturity value of the savings instrument determines the loan amount and eligibility. Many instruments also have a lock-in period before which you cannot demand a loan against it.
Also Read: What Are Short-Term Personal Loan Options Available In India
You can obtain a bank overdraft on your current account. With a bank overdraft, you get an overdraft limit up to which you can withdraw funds despite insufficient cash in your account. The interest rate applies only to the amount you withdraw. However, check out additional costs like fees per withdrawal, etc., before obtaining a bank overdraft.
If you are looking for the most suitable types of short-term loans to borrow, it's essential to understand their features and benefits before applying:
Many new-age lending institutions like Hero FinCorp support 100% digital loan application procedures that do not require any branch visits or physical paperwork. The online process eliminates any additional formalities, making quick disbursals possible directly into your bank account.
Also Read: What Are Advantages And Disadvantages Of Short-Term Loans
With flexible repayment terms of up to 36 months, you can choose a tenure with budget-friendly EMIs. An EMI calculator helps calculate EMIs for various loan terms, allowing you to choose a tenure with affordable EMIs.
A short-term loan application process demands minimal documentation for verification. These only include your identity, address, and income proof. The documentation procedure does not involve any paperwork either, as you can simply scan and upload the required documents through the website or app.
Features like no collateral requirement, 100% digital loan procedure, simple eligibility criteria, minimal documentation, and no end-use restrictions make short-term loans an immediate financial resource for urgent needs.
With regular EMI payments, you can improve your credit score and eligibility for a bigger loan.
Also Read: Short Term Loan Vs Long Term Loan - Which Is Right for You?
The eligibility criteria may differ depending on the type of short-term financing you borrow. Ideally, the applicant should be an Indian citizen from 21 to 58 years of age. Moreover, they must have work experience of at least six months for salaried Individuals and two years for self-employed professionals. A minimum salary requirement of Rs. 15,000 per month is also applicable.
Also Read: Long Term Or Short Term Loans Which One Should You Choose
A short-term loan offers multi-faceted benefits, making them the best funding option for urgent needs. Primary reasons to choose short-term finance include the following:
The application process is 100% online and involves no physical paperwork or branch visits. Consequently, you can apply for a loan in minutes without hassle.
No collateral requirement, the digital application process, and no paperwork and branch visits let the lenders evaluate your application in minutes, giving you quick access to funds with instant approval.
A short-term loan has lower interest rates than credit cards and many other loan types, making it a cost-effective financing solution for short-term urgent needs.
Flexible repayment terms allow you to choose a tenure with budget-friendly EMIs, making repayment easily manageable.
Also Read: Demand Loans Vs Term Loan - Know the Major Differences
Here is a stepwise procedure to apply for an urgent short-term loan:
Hero FinCorp offers emergency loans of up to Rs. 3 Lakh with a repayment tenure of up to 36 months. Thanks to the 100% digital loan process, you can get instant approval and disbursal into your bank account within a few hours. Moreover, these loans have no end-use restrictions, allowing you to use the loan amount for any urgent expense or desire.
Also Read: How To Avail Short Term Loan To Fund Your Education?
1. How Can I Secure A Short-Term Loan?
You can secure a short-term loan by applying online through the lender’s website or app.
2. What Is The Period Of A Short-Term Loan?
Hero FinCorp offers short-term loans with repayment terms of up to 36 months.
3. Is There Any Collateral Needed For A Short-Term Loan?
Short-term loans are unsecured Personal Loans that do not require any collateral, guarantor, or security for approval.
4. What Is The Loan Amount Offered For Short-Term Loans?
At Hero FinCorp, you can obtain a short-term loan of up to Rs. 3 Lakh without any end-use restrictions.
5. What Makes A Short-Term Loan Different From A Long-Term Loan?
The loan amount and repayment tenure make a short-term loan different from a long-term loan. A short-term loan has a smaller amount and shorter repayment period than the latter.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
Subscribe to our newsletter and get exclusive deals you wont find anywhere else straight to your inbox!
Unsecured business loans
Credit History
Home Loans
Finance Tips
Others
Life at Hero FinCorp