Unexpected expenses or necessities can occur at any time. However, when they occur, they can leave a huge dent in your money. Additionally, it has the potential to mess up your financial management.
These unexpected needs could be anything. For example; paying for course fees, an unexpected medical bill, wedding costs, a dream vacation, purchasing a phone, a car, a business opportunity, or anything else.
For youngsters who have just started to live their lives on their own, facing financial hardship is nothing new. It could happen for any reason, and the crisis might just last a short while. To deal with that issue, all you need is a short-term solution to get you through the crisis. For that, leveraging short-term loans is the perfect solution.
However, make sure the process of obtaining a short-term loan is as easy, quick, and convenient as possible. Here are a few advantages of obtaining a short-term loan from the best loan agency in Ahmedabad.
What is a Short-term Personal Loan?
A short-term loan offers immediate support for a person’s financial needs. A short-term loan, as its name suggests, would normally have a brief tenure of between a few months and five years.
Most short-term personal loans are also unsecured, so you will not have to put up any collateral to acquire the loan. Online short-term loans are available from a wide range of lenders, including banks and NBFCs.
They frequently need little documentation, have low-interest rates, and are disbursed quickly. As a result, these online short term loans are typically an excellent solution for meeting eligible borrowers’ immediate cash needs.
7 Key Features or Benefits of Short-term Personal Loan
Let’s learn the seven key features and benefits of short-term personal loans, which make them an attractive choice for addressing immediate financial needs.
1. Swift Approval and Disbursement
One of the most appealing aspects of short-term personal loans is their speedy approval process. Unlike traditional loans, which may take weeks to process, these loans can be approved within a matter of hours. Once approved, the funds are typically dispersed quickly, allowing you to address your financial needs promptly.
2. Flexibility in Loan Amount
Short-term personal loans offer borrowers flexibility when it comes to loan amounts. Whether you need a small sum to cover unexpected medical expenses or a larger amount for home renovations, these loans can cater to a wide range of financial requirements. This flexibility ensures that you can obtain the precise amount you need without overburdening yourself with unnecessary debt.
3. Minimal Documentation
Getting a loan is no longer a painstaking process filled with lots of paperwork. Short-term personal loans typically require minimal documentation, making the application process hassle-free. This convenience is especially appreciated during emergencies when time is of the essence.
4. No Collateral Needed
Unlike secured loans that require collateral, short-term personal loans are unsecured. It indicates that you are not required to use your property, such as your house or car, as collateral. This is a significant relief for those who may not have valuable assets to offer as collateral or are reluctant to risk their possessions.
5. Repayment Flexibility
Short-term personal loans come with various repayment options. You can choose a repayment tenure that suits your financial situation, be it a few months or a couple of years. This flexibility enables you to manage your finances effectively and repay the loan comfortably.
6. Improve Credit Score
Taking out a short-term personal loan can actually help improve your credit score when managed responsibly. Timely repayments and maintaining a good credit history can boost your creditworthiness, making it easier to secure loans in the future at better terms and interest rates.
7. Versatile Use of Funds
The beauty of short-term personal loans lies in their versatility. You can use the borrowed funds for a myriad of purposes – from consolidating high-interest debts to funding a dream vacation, or even covering wedding expenses. These loans don’t come with specific restrictions on how the money should be used, giving you the freedom to allocate it according to your needs.
Documents Needed for Short-Term Loans
Here is a list of documentation you will be required to have when you apply for a short-term personal loan.
- Identification proof
- Age verification
- PAN card
- Proof of address (driver’s license/voter’s ID/passport/electricity bill/phone bill)
- Income evidence
Based on the terms and conditions of your preferred loan agency in Ahmedabad, there can be some additional document needs. Before submitting an application for a loan, be sure you have all the details on the required paperwork and eligibility.
Criteria for Short-Term Loan Eligibility
Here is a list of eligibility criteria to obtain a short-term personal loan
- Nationality: Resident of India
- Age range: from 21 to 65 years
- Annual Household Income: Rs. 3 lakh or Rs. 20,000 per month in salary (If you live in a metro city, it is Rs. 25,000)
- Employment Status: Salaried or self-employed
- Cibil rating: 650+ (However, a score of 700 or more would be preferable.)
*The actual eligibility conditions may differ depending on the lender.
Short-term personal loans offer a lifeline when you find yourself in financial turmoil. Their swift approval, flexibility in loan amounts, minimal documentation, and the absence of collateral requirements make them a convenient option.
Moreover, the opportunity to improve your credit score and the versatility in the use of funds further enhance their appeal. When you need quick financial aid in Ahmedabad, consider reaching out to the AGIL personal loan provider in Ahmedabad.
With speedy disbursement and minimal paperwork, we offer the Best Loan Services in Ahmedabad. Contact us at email@example.com to take advantage of our amazing services.