Instant Personal Loan

What is a Short Term Personal Loan?

As the name suggests, a short term personal loan is a type of loan that is given to an individual for a short tenure that usually ranges from one month to a year. These are advantageous for individuals who are unable to get loans for a longer tenure from a bank or a lender due to various reasons. Short term personal loans are generally unsecured, meaning that you do not have to provide any money or property as security for the loan amount. Short term personal loans are also known as instant personal loan.

Features and benefits of a Instant Personal Loan

• Flexible end use

Short term personal loans are multi-purpose loans. This means that they can be utilized for organising a wedding, taking a family vacation, renovating your home, paying for education, buying products such as electronics or furniture, establishing and expanding business or paying for a sudden medical emergency.

• No collateral needed

Short term personal loans are generally unsecured. This means that you do not need to provide any collateral as security in exchange for the loan amount. This is very beneficial for customers who do not have any collateral to pledge as security.

• Minimal documentation

The paperwork and documentation that is needed for a short-term loan is very minimal. This makes the entire process fast and easy for the customer as the documentation can be completed very conveniently with ease.

• Quick disbursal

Short term personal loan disbursals are relatively quicker than most of the other long-term loans as you do not need to provide documentation for the purpose of the loan amount and for any assets as none are pledged generally.

• Loan amount

Instant personal loans are opted by individuals to meet instant needs such as paying a medical bill, a wedding expense to meet or an unplanned trip to fund. The loan amount for a instant personal loan begins at just Rs.5,000 and can extend up to Rs.3,00,000. The customer can pick the loan amount based on his/her needs.

• Tenure

Instant personal Loans as the name suggests are taken for a very short duration. Instant personal loans are easier to get approved can be repaid very fast thereby ridding the individual of the financial burden sooner. The tenures range from 1 month to 12 months (1 year).

Eligibility for Instant Personal Loans

To apply for a short term personal loan, there are certain eligibility criteria to meet. They are:

• One should be an Indian resident
• Must be a salaried or self-employed individual
• The individual should be within the age bracket of 21 years to 60 years
• Should have a minimum income of Rs.15,000. In some cases, a minimum income of Rs.12,000 is also accepted.

These criteria can vary from lender to lender and so it is best to check with your lender as to what their eligibility criteria are for their short term personal loans.

Documents needed for Instant Personal Loans

There are certain basic documents that one needs to provide in order to get the loan sanctioned. These documents are:

• ID proof
• PAN Card
• Proof of residence (Passport/Driver’s license/Voter’s ID/Phone or Electricity bill)
• Latest 3 months bank statement (where salary is credited)
• Salary slips for last 3 months
• 1 passport size photograph

These documents needed can vary from lender to lender and so it is best to check with your lender as to what documents are required for their instant personal loans.

Fees and charges Instant personal Loans

Interest rates:

The interest rates vary from lender to lender. CASHe has interest rates that begin at just 1.5% per month. Fibe offers interest rates that begin at just Rs.9 per day. PaySense offers interest rates that range from 1.4% to 2.3% per month. Money View has interest rates that begin at 1.3% per month. This facilitates easy EMIs for the customer. Since it is a instant personal loan, this works out to be very reasonable for the customer.

When an individual opts for a instant personal loan, the outflow of money towards the paying of total interest is much lower in comparison to a long-term loan. This makes a instant personal loan much cheaper than a long-term loan.

The interest is calculated keeping in mind the loan amount and so the outflow of cash towards repaying the principal amount along with the interest is much lower in the case of a instant personal loan.

Late payment charges:

The customer is charged a late payment fee if an EMI is not paid on time in most cases.

Penal charges:

The customer is charged a penalty interest on the overdue amount if paid late. This amount increases on a daily basis in most cases.

Processing fee:

The customer is charged a processing fee. In most cases, the standard GST is also applicable over the processing fees.

How to apply for a short term personal loan?

• Online

The customer can directly log onto the lender’s website, click on the loan section, select short term personal loans from all the various loans available and click “apply” for the short term personal loan. The customer can then fill out his/her personal and contact details to complete the application process. The documents required such as ID proof, address proof and income proof can be submitted online.

• Download app

If the customer has a smart phone, the lender’s application can be downloaded from Google Playstore or Apple app store. The entire loan application process can then be completed on the mobile phone with ease. No physical documents need to be submitted and the customer does not need to visit any office in order to get the loan approved and disbursed to his/her bank account.

• Call customer care

Another option would be for the customer to find their lender’s customer care number, dial it and ask their staff to help them apply for a short term personal loan. The staff will then help you apply either online or on the mobile app with proper guidance.

Repayment options for Instant Personal Loans

You can repay your Instant Personal Loan’s EMI payments using UPI or Netbanking with NEFT or IMPS using the virtual account that has been specially allocated. In some cases, auto debit form (NACH) allows the lender to deduct EMIs directly from your bank account. The repayment method can be chosen by the customer based on convenience. This is followed throughout the tenure of the loan.

Instant Personal Loans – FAQs

1. What is the loan amount that is given for short-term loans?

Loan amounts start at just Rs.5,000 and can extend up to Rs.3 lakhs for instant personal loans.

2. How do I repay my loan amount?

You can repay your Instant Personal Loan’s EMI payments using UPI or Netbanking with NEFT or IMPS using the virtual account that has been specially allocated. In some cases, auto debit form (NACH) allows the lender to deduct EMIs directly from your bank account.

3. Is there any collateral needed for a Instant Personal Loan?

No, there is generally no collateral that needs to be provided as security for the loan amount.

4. What is the tenure for a Instant Personal Loan?

The repayment tenures that can be opted ranging between 1 month to 12 months (1 year).

5. What are the interest rates offered by lenders for Instant Personal Loans?

CASHe has interest rates that begin at just 1.5% per month. EarlySalary offers interest rates that begin at just Rs.9 per day. PaySense offers interest rates that range from 1.4% to 2.3% per month. Money View has interest rates that begin at 1.3% per month.