What is Short Term Loan?
Short term loan is a kind of personal loan offered to fulfill your financial needs with a repayment period of less than a year. These loans proved to be effective for quick funding situations like medical emergencies, higher education, wedding expenses, business purchases etc. Many of the account holders have a good repay capability but they failed to obtain a credit from NBFCs or Banks over a longer tenure. In such case, short term loans are effective to help you to make necessary financial arrangements.
Eligibility Criteria for Short Term Loan
Number of lenders considers approvals of short term loans based on the following criteria:
- Borrower must be resident of India
- Age of borrower should be minimum 18.
- Borrower must have an active saving account in a bank.
- If borrower is salaried employee, he/she should have minimum 2 years of work experience.
- If borrower is business owner, his/her business should be functioning for more than 1 year.
Special Features of Short Term Loan
Short term loans are made available for self-employed, salaried and business person by many lenders as per there terms and conditions.
In most of the cases short term loans are approved though online channels thus no paperwork is carried out for short term loan approval.
It depend on borrower that how fast he wish to clear the loan amount provided that maximum tenure period is 1 year.
