Short Term Personal Loans or STPL are loans offered for a loan tenure 1 year or less. Shorter tenure results in higher EMIs but the overall interest cost is reduced. Therefore, such loans are ideal for smaller loan amounts. Lenders offering loans through digital channels provide short term loans with minimum or no documentation, quick loan approval and fast disbursal. However, due to shorter repayment tenure such loans carry high credit risk, and hence, are offered at a very high interest rate.
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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
What are Short Term Personal Loans?
Explore Short Term Personal Loans from 5K to 50K
Interest Rates for Short Term Personal Loans by Various Lenders
Personal loan interest rates offered by various lenders to individuals availing loans with shorter tenure are given below:
| Lenders | Interest Rate |
|---|---|
| Fibe | 18% p.a. onwards |
| Bhanix Finance and Investment Limited (CASHe) | 33.5% -36% p.a. (2.79% -3% p.m.) |
| Kotak Mahindra Bank (Mid-Month Advance Loans) | 10% p.a. onwards |
Lenders offering Short Term Personal Loans
Fibe (formerly known as EarlySalary)
Fibe is an online platform that offers instant cash loans at interest rates @ 18% p.a. onwards. To apply, simply download the Fibe app or register on Fibe’s website and fill in the required details.
| Loan Amount | Up to Rs 5 lakh |
| Tenure | 6 months-3 years |
| Minimum Monthly Salary Requirement | Rs 20,000 per month |
| Disbursal Time | Cash in bank in 10 minutes; Fastest processing |
Bhanix Finance and Investment Limited (CASHe)
Bhanix Finance and Investment Limited (CASHe) offers short term personal loans at interest rates starting from 2.79% per month. The applicants qualifying for personal loans at Bhanix Finance and Investment Limited (CASHe) can get their loans processed in 5 hours.
| Loan Amount | Up to Rs 3 lakh |
| Tenure | 9 months-1.5 years |
| Minimum Monthly Salary Requirement | Rs 40,000 |
| Processing Time | Up to 5 hours |
Kotak Mahindra Bank
Kotak Mahindra Bank offers Short Term Personal Loans branded as “Mid Month Advance” to salary account holders of Kotak Mahindra Bank with zero documentation and instant loan disbursal in just 3 seconds.
| Loan Amount | Rs 3,000 to Rs 1.5 lakh |
| Tenure | From the date customer avails the loan till the date of repayment in the next month |
| Minimum Monthly Salary Requirement | Rs 10,000 for applicants maintaining a salary account with Kotak Mahindra Bank |
| Disbursal Time | Instant disbursal in just 3 seconds |
Eligibility Criteria on Short Term Loan
Applicants planning to avail Short Term Personal Loans should meet the following eligibility criteria on personal loan:
- Indian residents can apply for Short Term Loans.
- Minimum age of the applicant at the time of loan application should be 21 years and the maximum age at the time of loan maturity should be 58 years.
- Applicants having a minimum monthly income of Rs 10,000 are eligible for Short Term Personal Loans.
- Applicants with credit scores of 750 and above usually have higher chances of availing personal loans. However, lenders offering short term personal loans usually approve applications with lower credit scores as well.
Documents Required on Short Term Personal Loan
The common documents required during short term personal loan application are mentioned below:
Why Should one Opt for a Short Term Personal Loan
Individuals should opt for personal loans with shorter tenure for the following reasons:
Applicants with poor credit score can also avail Short term Personal Loans.
Things to Watch Out For
Before applying for short term personal loans, have a look at the following considerations:
Alternatives to Short Term Loans
Here are a few alternatives to consider if short-term loans don’t fit your needs:-
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 a short-term personal loan?
A short-term personal loan is a loan facility with a repayment period usually ranging from a few months to 1 year, meant for urgent or immediate financial needs.
Who can apply for a short-term loan?
Salaried individuals, self-employed professionals, and business owners with a regular income can apply, depending on the lender’s eligibility criteria.
What is the minimum salary required for a short-term loan?
Most lenders usually need a minimum net monthly income of Rs 15,000 for any personal loan.
What is the maximum loan amount I can get for a short-term loan?
The maximum loan amount for short-term loans is based on your income, credit score, repayment capacity and other aspects of your credit profile.
What is the interest rate for short-term personal loans?
The interest rate for short term personal loans are usually higher as compared to regular personal loans. However, individuals with a strong credit profile can get lower interest rates on their short term personal loans.
Are there any hidden charges in short-term loans?
Applicant should always check with the lender regarding the processing fees, prepayment penalties, late payment charges, etc, and read the loan terms before closing an application.
Can I prepay my short-term loan early?
Lenders usually allow prepayment of short term loans. Some banks/NBFCs may charge prepayment/foreclosure fees, while others levy zero charges.
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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