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How to Track Personal Loan Application Status Online?
Personal Loans are the best funding options for people who nee . . .
15 Mar, 2023
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The loan tenure decides whether a loan is a short-term loan or a long-term loan. A short-term loan is generally taken for a period of 1year to manage immediate financial needs. The loan amount approved for short-term loans online varies from lender to lender and the purpose it serves. Borrowers can expect instant short-term loans within 24 hours via instant personal loan apps. Since, the loan is taken for a shorter period, the EMI incurred is quite affordable and easy to repay. Many businesses opt for short-term loans online as it is easy to apply and receive the loan amount in a digitally safe way.
A business survives on the basis of a steady flow of revenue. Instant short-term loans are one of the easiest ways to raise temporary capital to meet the operational requirements. There are uncountable small-scale businesses in India flourishing in different industries, scattered across different cities. There comes a point in business where surplus funds are required either for buying the stock, hiring additional staff or expansion in other locations. During such times, do not invest your savings instead opt for a short-term personal loan online. It is collateral-free and requires no security for loan approval.
A short-term loan is a safe choice and involves almost no risk due to the limited amount sanctioned. As the loan application has turned digital, it is easy to apply for quick short-term loans online. Here are some advantages of a short-term loan that makes it a viable choice:
A consistent cash flow is required to clear the overhead expenses and operational costs in business. In case of shortage of daily cash flow, small cash loans are a good option. It saves businesses from sinking during the low season and eliminates risk of shutting down.
Businesses that experience highs and lows based on the seasonal products undergo financial difficulties as the products are sold only for a particular season. In case extra seasonal products remain, it turns into dead stock. Hence, to cover up this loss for the rest of the year, small cash loans can be borrowed to balance the expenses.
Emergency situations on the business front are quite expected. In case of natural calamities, technical breakdown, equipment repairs or connectivity issues, short-term loans can help to with stand the emergency expenses.
The credit score increases when EMIs are paid on time. Short term loans are less as compared to long term loan amounts. Hence, can be repaid easily in EMIs without much difficulty. The scope of delayed EMI payments is less in short-term loans.
The time taken for a short term loan is quick with minimal documentation whereas a long term loan with a higher amount requires more verification of the borrower’s creditworthiness and assets.
Like every coin has two flip sides, likewise long-term and short-term loans are two sides of a personal loan product. Short-term loans online are easy to acquire but there are some disadvantages that borrowers should be aware of:
As the loan amount is less, the interest rate charged on the loan amount is higher. This makes the repayment figure heavy. So, always look for the prevailing interest rate before applying for any loan.
Missed or failed attempt to make loan repayment can bring down the credit score. This can create problems in future loan approvals.
You may want to clear the loan at once before the due date. But there are lenders who levy prepayment penalties as the amount of interest charged is not earned as profit.
Like any other personal loan online, short-term loans also have a set of eligibility criteria that borrowers should follow for 100% approval. Whether the loan is for 50,000 or 1 lakh, borrowers should check the eligibility criteria before applying for short-term loans online. Lenders who do not have structured eligibility criteria for short-term loans cannot be trusted for loan applications.
Whether personal loans or short-term loans, collating a bunch of mandatory documents for loan approval is tedious. Discarding the traditional document verification process, lenders nowadays accept documents in a paperless format. Those with an urgent requirement of short-term loans should keep their KYC details and income documents handy for verification of personal and professional details.
A short-term loan is also a type of instant personal loan that can be availed online in few simple steps. Download a reliable instant loan app via Google Play Store and initiate the short-term loan application process. Hero FinCorp Instant Personal Loan app is a complete digitized instant loan platform. You can manage your short-term loan account online and check important details like interest rate, EMIs and repayment tenure from anywhere at the tip of your finger. Download Hero FinCorp Instant Personal Loan today for speedy short-term loans within 24 hours.
The Hero FinCorp Instant Personal Loan app is a secured online cash loan app to apply for short-term loans. Self-employed and salaried individuals between the age group of 21 to 58 years can apply for small instant cash loans up to 1,50,000 via Hero FinCorp Instant Personal Loan.
A: A short-term personal loan is taken for a shorter tenure usually for a year. Sudden cash requirements or balancing shortage of funds are primary reasons why borrowers rely on short-term loans.
A: Fixed interest rates are applied to short-term loans which makes it a viable choice for business. However, the percentage of interest for a short-term loan varies from lender to lender.
A: A short-term loan stands true to its name and holds a shorter loan tenure, not more than 1 year. Short-term loans are unplanned and taken during emergency situations.
A: Whether a short-term loan is better than a long-term loan or vice-versa, it all depends upon the purpose of the loan. Borrowers wanting immediate liquid cash, a short-term loan may be the best choice and those looking for a higher loan amount to buy a house/vehicle can rely on long-term loans.
A: Borrowers can get short-term personal loans online via instant personal loan apps such as Hero FinCorp Instant Personal Loan. After the verification of KYC details, instant short-term loans are approved and disbursed within 24hours in the borrower’s bank account.
A: Yes, you can get a short-term loan online in a hassle-free way through instant personal loan apps. In few simple steps of loan application and verification, borrowers can be sure of getting the short-term loan approval in minutes.
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.
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