Short Term Loans – as the name suggests – are loans which have a short tenure of generally a year or less, and are typically intended for improving temporary shortfall in cash flows – either for individuals or businesses. Lenders offer Short Term Finance options that are structured to meet specific needs. The repayments are scheduled and structured to match your available cash flow.

Short term loans are generally unsecured, but this depends on your individual credit history. Lenders, at their sole discretion, might ask for collateral / security. These loans can be availed by individuals and businesses. These are flexible loans with flexible repayment tenure. While most lenders offer personal loans in the tenure range of 1–5 years, a few banks, NBFC and other private lenders are beginning to offer loans that have an even shorter tenure.


                                                          Features of short term loans

• You can apply for short term loans as an individual or a business.

• Easy loan tenure up to one year.

• Loans amount available depending on your needs and eligibility

• Attractive interest rates – depends on you credit history

• Easy and simplified documentation process

• No collateral or guarantor required – varies from lender to lender

• Tailor-made loans solutions across many categories

• Facility to apply online with most lenders with minimal documentation



Eligibility: Though generally, lenders choose to have a look at your credit history before approving your loan application, and sanction your loan application only if you have a good credit rating. There are some private lenders that might offer short term loans even to those having poor credit. This could be an option for those looking for credit but are being turned down by conventional lenders due to their bad credit score.

If you have bad credit and are looking for quick financing options, then you could perhaps, go for a short – term loan, but you need to be aware of the interest cost before applying. There are certain private lenders that will offer short term loans in India even if the credit rating is bad. The interest rates charged may be very high but your loan application will still be approved. The interest rate will be adjusted to how severe your credit background is.



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