| Interest rates | As per the applicant’s credit profile |
|---|---|
| Loan amount | Depending on the repayment capacity |
| Loan tenure | Up to 1 year |
| Collateral | Collateral-free |
| Usage | Urgent financial requirements, except speculation |
| Loan disbursal | Instant |
| Loan application | Applied through instant loan apps |
Short Term Personal Loan
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How Can I Apply for a Personal Loan Online?
Get up to ₹40 Lakh in 5 Simple Steps
Step 1: Enter your mobile number in the application form
Step 2: Provide your personal details
Step 3: Enter OTP to verify your mobile number
Step 4: Select the loan purpose and loan amount
Step 5: Compare offers and apply for the best-suited loan
Personal Loan Overview: Understanding Short-Term Capital
Short Term Personal Loan Interest Rates
| Lenders | Interest rates (p.a.) |
|---|---|
| Paisabazaar Loan App | 9.98% onwards |
| Fibe Personal Loan | 18.00% onwards |
| kreditBee Personal Loan | 12.00% - 28.50% |
| Olvy Personal Loan | 18.00% onwards |
| Moneyview Personal Loan | 14.00% onwards |
Eligibility Criteria for Micro & Short-Term Advances
Applicants planning to avail short term personal loans should meet the following eligibility criteria on personal loan:
Documents Required for 100% Paperless Short-Term Approvals
Below-mentioned are the documents required during personal loan application of short term personal loans:
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Short Term Personal Loan EMI Calculator
Step-by-Step Guide on How to Apply for a Short-Term Personal Loan Online
You can apply for a short-term personal loan online through Paisabazaar in the following steps:
Compare Short-Term Personal Loans vs Traditional Long-Term Credit
| Short-term Personal Loans | Long-term Personal Loans |
|---|---|
| Offered for a tenure of usually 3 - 12 months. | Offered for a maximum tenure of usually 5 years. |
| Higher EMIs. | Usually lower EMIs. |
| Total interest cost is low. | Total interest cost is higher. |
| Usually smaller loan amounts. | Usually higher loan amounts. |
Pro-Tips to Secure Instant Cash Loan Approval Within Minutes
You can follow the below-mentioned tips to get your personal loans approved instantly:
Common Reasons for Short Tenure Loan Rejections and How to Avoid Them
Common reasons for the rejection of short-term personal loans include:
By avoiding the above-mentioned mistakes, you can increase the chances of your short-term personal loan approval.
Structural Comparison: Short Term Personal Loan vs Credit Card vs Loan Against FD
| Features | Short-term Personal Loan | Credit Card | Loan Against FD |
|---|---|---|---|
| Type of Credit | Unsecured | Revolving credit | Secured |
| Repayment tenure | Usually up to 1 year | Flexible | Based on the FD tenure |
| Loan disbursal | Fast | Instant | Quick |
| Loan amount | Generally smaller | Limited to the credit card limit provided by the bank | Up to 85% of the value of FD |
| Credit score | Timely repayments increase the credit score | Timely repayments increase the credit score while high credit utilization reduces it. | Does not impact the credit score if repaid on time |
| Usage | Urgent personal financial requirements | For everyday spends | In case of financial emergency |
How Can I Apply for a Personal Loan Online?
Get up to ₹40 Lakh in 5 Simple Steps
Step 1: Enter your mobile number in the application form
Step 2: Provide your personal details
Step 3: Enter OTP to verify your mobile number
Step 4: Select the loan purpose and loan amount
Step 5: Compare offers and apply for the best-suited loan
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FAQs
What is the minimum monthly income required for a short term personal loan?
Lenders usually offer personal loans to individuals having their monthly income of Rs. 25,000. However, the loan eligibility depends on the EMI/NMI ratio which should be below 55%, including the existing EMIs and EMI of the proposed personal loan.
Can freelancers and self-employed individuals apply for a 3 to 12-month loan?
Yes, freelancers and self-employed individuals can apply for a loan for 3 - 12 months.
Does a low income affect the maximum loan amount approved?
The approved loan amount is calculated based on the EMI/NMI ratio of the applicant. If the EMI/NMI ratio is below 55%, including the existing EMIs and EMI of the proposed personal loan, you become eligible for a short-term personal loan.
Does a lower CIBIL score automatically disqualify me from short-term borrowing?
Individuals with a poor CIBIL score may not qualify for personal loans. Some lenders offer personal loans to individuals with a low CIBIL score but at a higher interest rate and smaller loan amount.
Why are short term personal loan interest rates higher than regular loans?
Short term personal loans are collateral-free and offered for a very short tenure, usually 3 - 12 months. Since, the risk involved is higher, they are offered higher interest rates as compared to regular loans.
How much interest do you pay on a 3-month short term loan?
If a short term personal loan of Rs. 50,000 is offered at 11% p.a. for 3 months, the total interest incurred would be Rs. 919.
Is a salary slip mandatory for securing a short-term personal loan?
A salary slip is not mandatory but essential for availing short-term personal loan. However, applicants without a salary slip can submit their bank statements and ITRs during loan application.
Personal Loan Articles
View All ArticlesPaisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners.
The APR (Annual Percentage Rate) of a personal loan is its annualised cost of borrowing, which includes the interest rate as well as the processing fees, documentation fees and other fees charged during the loan origination. The APR is expressed in the form of a percentage and thus, allows personal loan applicants to detect personal loan schemes offered at lower interest rates but with higher processing fees and/or other charges.
The APR of personal loans usually ranges between 11.29% to 35%. For example, assume that you have availed a personal loan of Rs. 5 lakhs @ 10.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, which amounts to Rs 7,500. Therefore, the total borrowing cost of your personal loan will be Rs 1,52,317 and its APR will be 11.16%.
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