Short-Term Loans in Indore

Short-Term Loans in Indore

A short-term loan could be the easiest option to access funds in an emergency or immediate need. You can get a short-term loan in Indore from various banks, NBFCs and online lenders. However, choosing the best channel needs a lot of background research and analysis. You can apply for a short-term loan in Indore as short as 3 months, and the process is quick with minimal documentation.

What is a short-term loan?

As the title indicates, a short-term loan is a loan taken to meet immediate financial requirements and repaid in a short tenure i.e. within a year. Banks, NBFCs and online lenders provide short-term loans to all individuals catering to various needs.

Features of short-term loans in Indore

If you are looking for a short-term loan in Indore, it is important to know the following features in the short-term loan.

Loan amount: As it is a short-term loan, the minimum loan amount could be as low as INR 10,000 to a maximum of up to 5 lakhs, depending on your credit profile. The loan amount in most cases is decided based on your income and other eligibility criteria.

Repayment period: Once the loan is disbursed, the borrower may have to start repaying the loan from the next month. However, it may differ from lender to lender. The repayment period could range from 3 months to 1 year for a short-term loan in Indore.

Processing fees: A standard processing fee is charged for getting a short-term loan in Indore. It could range between 1 to 6 percentage of the principle loan amount.

Pre-closure charges: While the online lenders may not levy a penalty for pre-closing the short-term loan in Indore, banks and NBFCs might levy a small amount of fee up to 2% for prepaying your loan. However, this could vary from lender to lender.

Short-term loans in Indore with bad credit

You, as a borrower, might be in a situation having a bad credit due to negative issues such as delinquency, late payment etc. With the bad credit history or low credit score, it could be challenging to get a short-term loan from traditional lenders. In such a scenario, individuals with bad credit can explore lenders who offer short-term loans without considering credit score as main criterion. But they may have alternatives to evaluate your creditworthiness. Finding such options could get you a short-term loan easily. Most of the peer-to-peer lending platforms offer short-term loans with no credit checks.

Short-term loans in Indore Eligibility

To get a short-term loan in Indore, a person must meet the following eligibility criteria

• The applicant should be an Indian resident
• Salaried or self-employed individual with a minimum income of INR 20,000. However, this requirement is subject to vary depending on the lender and demographic profile
• The borrower should be above 21 years old or 60 and below. This is however might differ from lender to lender
• The borrower must have a certain years of work experience as demanded by the bank
• Should reside in the current location for at least 1 year and must have all the necessary documents
• The applicant should have a good credit history and credit score

Note: Apart from credit score, the lenders also evaluate the creditworthiness of individuals using alternative methods. Hence, even if you do not have a credit history, you could still have a fair chance of securing a short-term loan in Indore.

Interest rates of short-term loans in Indore

You can get the cheapest interest rate on short-term loan in Indore if you have a good credit history and income as demanded by the lender. The interest rate generally starts from 10.9% onwards and it can go up to as high as 36% according to your credit profile. The interest rates are entirely decided by the lenders and it is subject to change as per the lenders’ internal policies.

Fees and charges on short-term loans in Indore

Once your loan is approved, the banks may levy various fees and charges for disbursal. You will be notified about the charges before sanctioning of the loan and only after your acknowledgement, it will be disbursed to your account. Following are some of the fees and charges levied on a short-term loan in Indore.

Processing fee: The processing fee on the loan will range between 1 to 6 percentage of the loan amount.

Late Payment: If you are unable to pay the short-term loan on time, you may have to pay a penalty to the bank.

Documents required for short-term loans in Indore

Documentation is an important process in a loan process. Failing to submit the required documents or any mismatch in the detail would disqualify the applicant from getting the short-term loan in Indore. Following are the documents that most lenders would be asking during loan application.

• Passport size photos (May not be required if applied online)
• Identity proof: Passport, Voter ID, Aadhaar card, Driving License
• Residence proof: Passport, landline bill, rental agreement or bank statement
• Age proof: Passport, driving license, pan card or school certificate
• Pan card
• Income proof: Last 3 months salary slip
• Bank statement: Up to last 6 months
• Employment: Offer letter, reliving letter or form 16

Some lenders allow you to upload the documents online and no physical documentation is required. This helps you save a lot of time and facilitates the loan processing faster.

How to apply for a short-term loan in Indore?

Apply Online for Short- Term Personal Loan

Online: Applying for a short-term loan online is much simple and easy. While some banks may allow you to apply directly on their website, some banks request you to leave your personal and contact details and an executive from the bank will contact and guide you through the process. When you apply online with the bank where you have an account, sometimes you might also get instant e-approval. Most lenders allow you upload the documents online and deliver the result within 30 minutes.

Apply through apps: Online lenders such as CASHe, EarlySalary, Paysense etc, allow the applicants to apply through their apps which facilities much simpler loan application. You can enter your personal and contact details, upload the documents and get approval within an hour. All this can be done using your mobile by downloading the lender’s app.

Offline: Visit the nearest branch of any bank where you wish to apply for the short-term loan and meet the bank’s representative who will guide you through the process. You may have to fill out the application form and submit the required documents. Once the documents and personal details are verified, your application will be processed for approval.

You can also download the application form from the official website of the bank and submit it to the nearest branch of the bank.

Applying Through CreditMantri

You can check your eligibility and apply for a short-term loan by signing up with CreditMantri. It is quick, simple and above all, free.

CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender’s credit criteria. Hence, the chances of your short-term loan application getting approved is higher.

How to choose a short-term loan in Indore

When choosing a short-term loan in Indore, you need to first analyse the income and the amount required as a loan. You may have to check the credit score before applying for the loan. If the credit score is low, you need to improve it before applying for the loan to make sure you get the best offer.

Make up your mind about the channel through which you are going to apply for the short-term loan in Indore. Compare the rates offered by the traditional lender and online lenders. Choose the best offer that suits your repayment schedule comfortably.

What is the best lender for a short-term loan in Indore?

This question does not have a singular answer. The best lender is easily the one who offers the short-term loan at better terms. You need to comply to various criteria to qualify for the short-term loan. Compare the short-term loan features from various lenders and analyse their interest rates, terms and choose the one who offers a short-term loan that is comfortable for your repayment.

About Indore

Being the financial capital of the state Madhya Pradesh, Indore is home to India’s third oldest stock exchange. The most part of the city is enabled with free wifi facility, making it the second city in India to use cloud-based technology to the maximum. Indore is the largest economy in Central India and its major business industries are textiles, oil-seed extraction, handloom, electronic goods, shellac and bicycles.

Short-term loans in Indore – FAQs