A short-term loan through various loan apps like Kreditbee, MoneyTap, StashFin, LendingKart, Pine Labs, etc. is an excellent way to manage instant and necessary expenses. It requires minimal documentation and generally, there are zero requirements for security as most such loans by nature are unsecured. The application and grant procedure are even instant and simple, usually performed through online mode. So, if you hold a healthy score and a good income, you can reach out to your preferred NBFC or bank and place the application for a short-term loan.
Simply, basis the applicant’s sound credit profile, you can opt for a loan ranging anywhere between Rs 50,000 and Rs 25 lakh. A few digital companies also offer proceeds higher than Rs 25 lakh. For instance, HDFC Bank and Kotak Mahindra Bank offer loan proceeds on a personal loan of up to 40 lakhs. Based on your credibility, the interest rate levied on loans can differ anywhere between 10 per cent and 24 per cent per annum. The loan tenure might range anywhere between 3-6 months and 1-2 years. In the case of special loans, the loan tenure can go as long as six to seven years. Let’s look at some popular short–term categories of personal loans through loan apps.
Home Renovation Loan
While a long-term home loan may be a great idea if you want to purchase a new property, a short-term loan might be a great way if you just need to get some renovations done in your current home. Also, this makes for an excellent investment as renovated home’s market value rises.
You can take up anywhere between Rs 2 lakh and Rs 30 lakh as loan proceeds. However, in the case, you take up higher loan proceeds, it would not be granted as per the short-term loan program. For availing higher loan proceeds, NBFCs and banks can provide a long tenure of anywhere between twenty and thirty years.
Education Loan
Of course, there are secured education credit options with a repayment loan period of up to fifteen years. However, for a specific education-linked expense, you can even go for a short-term loan. Such loan proceeds can be utilised for meeting any kind of academic expense like tuition fees, hostel fees, buying course-linked equipment and others. While small-term loans may be available in this category, loan proceeds of up to Rs 20 lakh can even be granted as well as the tenure may go as high as seven years.
Wedding Loan
Weddings can plunge your savings. Also, unplanned, and unanticipated expenditures can come up anytime. Under the wedding-linked short-term loan, a member of the bride’s or groom’s family can place an application for an amount as low as Rs 50,000 and up to Rs 25 lakh. Based on the borrowed funds, the loan repayment tenure may range anywhere between three months and up to six years.
Travel Loan
Gen Zers and millennials like spending on travelling. Unlike the past generations, which completely believed in saving massive sums before travelling abroad, present-day youth like taking quick decisions. Travel loans are an amazing solution for the young generation, particularly in case they have a stable income source and a good credit score and profile. Again, you as an applicant can opt for going for small proceeds of between Rs 25,000 and Rs 50,000 or big-ticket loan proceeds of 10, 20 or 30 lakhs. The maximum available repayment tenure is generally six years.
Healthcare Exigency Loan
While insurance is generally an ideal answer for mitigating your medical exigencies, a loan also can act as a life-saving instrument. Whether you do not have any healthcare policy, or you have exhausted your insured amount and require more financial help rapidly, medical exigency loan can be of great help. You can avail a small loan or an amount of up to Rs 20 lakh to 25 lakhs. Again, for higher proceeds, the loan tenure can go over five years.
Loan for consolidation of debt
A short-term loan can even be taken up to repay multiple debts. Holding multiple loans shows up in your profile, which negatively impacts your credit score and the potential of applying for a loan in the future. So, many like applying for the debt consolidation option, use the same to settle debts and pay the same in the form of a single loan.
The next benefit is specific loans, like those provided by credit cards have a high interest rate. Though a personal loan, unsecured in nature even come with a higher rate of interest than the secured one, it still comes with a lower rate of interest than a loan against a credit card. Debt consolidation loans can be as high as Rs 25 lakh.
Pension loan
A few financial institutions provide pension loans for retired individuals. Sometimes, pensioners can land in a tight spot when witnessing sudden high expenses like those owing to healthcare issues. In a scenario like this, you can place an application for a pension loan. Loan proceeds can be at least eight times their pension on a monthly basis and the tenure may be extended for up to 5-6 years.
Small personal loans like festive loan
Specific banks and NBFCs even provide short-term personal loans for meeting miscellaneous expenditures. One common short-term personal loan is a festive loan. Festivals, a lot of times can result in additional unplanned expenditures. When witnessing such scenarios, you can consider going for a festive loan.
White goods loan or consumer durable loan
White goods like television, air conditioner, washing machine, television, etc. are usually costly. If you require purchasing multiple consumer products, it might be recommended to place an application for a consumer durable personal loan. The loan proceeds available can go up to several lakhs. Moreover, a few NBFCs and banks might provide insurance covers even to make their loan deals consumer friendly.
Mobile phone loan or personal computer
It is the same as any consumer durable credit option. As technology gallops, we have a massive range of digital devices that are available in several price bands. In the case you want to make a high-end buy but do not have a considerable amount saved, then you can opt for a short-term loan. Alternatively, you can even be provided with a loan EMI payment offer, which would be in aggregation with NBFC or bank.
