The need for instant money mostly arises due to an unplanned expense. It can be a financial emergency or a medical emergency or extra expenses arising during a wedding, etc. Most times, we don’t have the necessary savings with us to cover such unexpected expenses. In such a case, it is better to look for a short term credit option. An instant personal loan is one such option in which you do not have to commit to using the borrowed funds for a particular expense only, and it is provided within a week. People can also have access to instant personal loan which can act as a viable option.
Now, normally personal loans are available for up to 5 years. However, you can opt a lower tenure as well. Availing a personal loan for 12 months or so opens up the option of availing the loan from instant credit apps like CASHe, MoneyTap, Early Salary, etc. These platforms primarily deal in providing short term personal loans. Besides, you do not need a credit score to avail loan through them. The minimum loan amount starts from Rs. 5,000 or so and the maximum amount goes up to Rs. 2 lakhs. However, you must note that the interest rates of these short term personal loans are slightly higher than the regular personal loan.
These apps use psychometric analysis by gathering data from social channels like Facebook, Twitter, Instagram, LinkedIn, etc., to determine the creditworthiness of those people who do not have a credit history. Some key features of these short term personal loans are:
- Quick Processing and Disbursal
- No Collateral or guarantee required, as its a personal loan.
- Very easy to apply online
- Short tenure
- Simple Documentation process and suitable for individuals.
- Lesser or no credit score can be accepted as well.
You can avail these loans not just for unexpected expenses but for any expenses that you desire like home renovation, purchasing a gadget, travel expenses, etc. The basic eligibility criteria to avail this short term loan are:
- Available to salaried individuals.
- Salary slip of last 3 months at least.
- The minimum age required is 21 years, while maximum age cannot exceed 60 years at the time of maturity.
- Along with salary slip, bank statements would also be required for 3-6 months.
Some key benefits of availing short term personal loan are:
- Less Paperwork: Since the loan is not large, and the repayment is to be done within a year, there is minimal paperwork required. In fact, some of them also provide the facility of submitting a couple of proofs required along with applying for the loan.
- Fast Processing: Considering the factors like lower borrowed amount, shorter tenure, minimum documentation; the amount of time taken to process the application and disburse the loan is not more than 3 days, even lower most of the time.
- Least Restrictions: Since the loan amount borrowed is lower the restrictions as compared to a longer personal loan like flexibility in repayment with the options of choosing either EMI or lumpsum payment option.
- Quick Disbursal: The fast application process, lower documentation, lower loan amount and shorter tenure all contributes towards reaching the disbursal date sooner. The amount borrowed can be used for any purpose that you want.
These lenders have actually partnered with one or more banks to provide the service of short term credit to today’s younger generation who demands innovative and personalized financial products.