Introduction
A short term personal loan is a quick financial solution when you need money for a short period. It is commonly used for emergencies like medical bills, rent, travel, or urgent expenses.
These loans are easy to apply for and usually get approved quickly. However, they come with shorter repayment periods, so you need to plan carefully.
In this guide, you will learn everything about a short term personal loan, including eligibility, EMI, interest rates, benefits, risks, and how to apply.
What is a Short Term Personal Loan?
A short term personal loan is an unsecured loan that you repay within a short period, usually between a few months to 2 years.
Unlike long-term loans, the repayment period is shorter, and the loan amount is usually smaller.
Key Features
Short repayment tenure (3 months to 24 months)
No collateral required
Quick approval and disbursal
Fixed EMI payments
Simple online application
Eligibility for Short Term Personal Loan
The eligibility criteria for a short term personal loan are simple.
Basic Requirements
Age: 21 to 60 years
Salaried or self-employed
Minimum monthly income: ₹10,000 to ₹25,000
Active bank account
Basic credit history
Why Eligibility is Flexible
Since the loan amount is usually small and tenure is short, lenders may approve applications even with moderate credit scores.
Documents Required
You need only basic documents to apply for a short term personal loan.
Common Documents
PAN Card
Aadhaar Card
Bank statements
Salary slips or income proof
Most lenders allow digital document submission.
Interest Rates for Short Term Personal Loan
Interest rates for a short term personal loan can be slightly higher than long-term loans.
Typical Interest Rates
Starting from around 12% per year
Can go up to 30% depending on lender
Factors Affecting Interest Rates
Credit score
Income level
Loan tenure
Repayment history
Always compare lenders before applying.
EMI for Short Term Personal Loan
EMI is the fixed amount you pay every month.
Example EMI Calculation
Loan Amount: ₹50,000
Interest Rate: 18%
Tenure: 12 months
EMI will be approximately ₹4,600 per month.
How to Manage EMI
Choose a tenure that fits your budget
Avoid missing payments
Plan your expenses in advance
How to Apply for a Short Term Personal Loan
Applying for a short term personal loan is quick and easy.
Step-by-Step Process
Step 1: Choose a Lender
Select a trusted bank or app.
Step 2: Register
Enter your basic details.
Step 3: Fill Application
Provide personal and income information.
Step 4: Upload Documents
Submit PAN, Aadhaar, and income proof.
Step 5: Approval
Approval is often quick.
Step 6: Disbursal
Funds are transferred to your bank account.
Benefits of Short Term Personal Loan
A short term personal loan offers several advantages.
Fast Approval
Get money quickly, often within hours.
Short Commitment
Loan is repaid quickly.
No Collateral
No need to pledge assets.
Flexible Usage
Use the money for any personal need.
Risks and Things to Consider
Before taking a short term personal loan, consider these points.
Higher EMI
Short tenure means higher monthly payments.
Higher Interest Rates
Rates can be higher compared to long-term loans.
Penalties
Late payments can result in extra charges.
Risk of Over-Borrowing
Taking multiple loans can lead to financial stress.
Short Term Loan vs Long Term Loan
Understanding the difference helps you choose the right option.
Short Term Loan
Tenure: Up to 2 years
Higher EMI
Lower total interest
Quick repayment
Long Term Loan
Tenure: 3 to 5 years or more
Lower EMI
Higher total interest
Longer commitment
Choose based on your financial situation.
Tips to Use Short Term Personal Loan Wisely
To use a short term personal loan safely:
Borrow only what you need
Check total repayment amount
Choose affordable EMI
Repay on time
Avoid taking multiple loans
Direct Answer Snippets
What is a short term personal loan?
A short term personal loan is an unsecured loan that you repay within a short period, usually between 3 months and 2 years. It is used for urgent expenses and offers quick approval, but it often comes with higher EMIs due to the shorter repayment tenure.
How can I get a short term personal loan quickly?
You can get a short term personal loan quickly by applying online through a trusted lender, submitting basic documents like PAN and Aadhaar, and meeting eligibility criteria. Many lenders offer instant approval and fast disbursal within a few hours or one day.
What is the EMI for a short term personal loan?
The EMI for a short term personal loan depends on the loan amount, interest rate, and tenure. For example, a ₹50,000 loan at 18% interest for 12 months may have an EMI of around ₹4,600 per month. Shorter tenure means higher EMI.
FAQs
1. Can I get a short term personal loan without a credit score?
Yes, some lenders offer loans without strict credit score requirements, but interest rates may be higher.
2. How fast can I get a short term personal loan?
You can usually get approval and disbursal within a few hours or the same day.
3. Is a short term personal loan better than a long-term loan?
It depends on your needs. Short-term loans are good for quick repayment, while long-term loans offer lower EMIs.
4. Can I prepay my loan early?
Yes, most lenders allow prepayment, but some may charge a fee.
5. What happens if I miss an EMI?
Missing an EMI can result in penalties and negatively impact your credit score.
6. Is it safe to apply online?
Yes, it is safe if you use trusted and verified lenders.
Conclusion
A short term personal loan is a useful option for handling urgent financial needs. It offers quick approval, minimal documentation, and fast access to funds.
However, it comes with higher EMIs and shorter repayment periods. You should borrow only what you can repay comfortably.Introduction
A short term personal loan is a quick financial solution when you need money for a short period. It is commonly used for emergencies like medical bills, rent, travel, or urgent expenses.
These loans are easy to apply for and usually get approved quickly. However, they come with shorter repayment periods, so you need to plan carefully.
In this guide, you will learn everything about a short term personal loan, including eligibility, EMI, interest rates, benefits, risks, and how to apply.
What is a Short Term Personal Loan?
A short term personal loan is an unsecured loan that you repay within a short period, usually between a few months to 2 years.
Unlike long-term loans, the repayment period is shorter, and the loan amount is usually smaller.
Key Features
Short repayment tenure (3 months to 24 months)
No collateral required
Quick approval and disbursal
Fixed EMI payments
Simple online application
Eligibility for Short Term Personal Loan
The eligibility criteria for a short term personal loan are simple.
Basic Requirements
Age: 21 to 60 years
Salaried or self-employed
Minimum monthly income: ₹10,000 to ₹25,000
Active bank account
Basic credit history
Why Eligibility is Flexible
Since the loan amount is usually small and tenure is short, lenders may approve applications even with moderate credit scores.
Documents Required
You need only basic documents to apply for a short term personal loan.
Common Documents
PAN Card
Aadhaar Card
Bank statements
Salary slips or income proof
Most lenders allow digital document submission.
Interest Rates for Short Term Personal Loan
Interest rates for a short term personal loan can be slightly higher than long-term loans.
Typical Interest Rates
Starting from around 12% per year
Can go up to 30% depending on lender
Factors Affecting Interest Rates
Credit score
Income level
Loan tenure
Repayment history
Always compare lenders before applying.
EMI for Short Term Personal Loan
EMI is the fixed amount you pay every month.
Example EMI Calculation
Loan Amount: ₹50,000
Interest Rate: 18%
Tenure: 12 months
EMI will be approximately ₹4,600 per month.
How to Manage EMI
Choose a tenure that fits your budget
Avoid missing payments
Plan your expenses in advance
How to Apply for a Short Term Personal Loan
Applying for a short term personal loan is quick and easy.
Step-by-Step Process
Step 1: Choose a Lender
Select a trusted bank or app.
Step 2: Register
Enter your basic details.
Step 3: Fill Application
Provide personal and income information.
Step 4: Upload Documents
Submit PAN, Aadhaar, and income proof.
Step 5: Approval
Approval is often quick.
Step 6: Disbursal
Funds are transferred to your bank account.
Benefits of Short Term Personal Loan
A short term personal loan offers several advantages.
Fast Approval
Get money quickly, often within hours.
Short Commitment
Loan is repaid quickly.
No Collateral
No need to pledge assets.
Flexible Usage
Use the money for any personal need.
Risks and Things to Consider
Before taking a short term personal loan, consider these points.
Higher EMI
Short tenure means higher monthly payments.
Higher Interest Rates
Rates can be higher compared to long-term loans.
Penalties
Late payments can result in extra charges.
Risk of Over-Borrowing
Taking multiple loans can lead to financial stress.
Short Term Loan vs Long Term Loan
Understanding the difference helps you choose the right option.
Short Term Loan
Tenure: Up to 2 years
Higher EMI
Lower total interest
Quick repayment
Long Term Loan
Tenure: 3 to 5 years or more
Lower EMI
Higher total interest
Longer commitment
Choose based on your financial situation.
Tips to Use Short Term Personal Loan Wisely
To use a short term personal loan safely:
Borrow only what you need
Check total repayment amount
Choose affordable EMI
Repay on time
Avoid taking multiple loans
Direct Answer Snippets
What is a short term personal loan?
A short term personal loan is an unsecured loan that you repay within a short period, usually between 3 months and 2 years. It is used for urgent expenses and offers quick approval, but it often comes with higher EMIs due to the shorter repayment tenure.
How can I get a short term personal loan quickly?
You can get a short term personal loan quickly by applying online through a trusted lender, submitting basic documents like PAN and Aadhaar, and meeting eligibility criteria. Many lenders offer instant approval and fast disbursal within a few hours or one day.
What is the EMI for a short term personal loan?
The EMI for a short term personal loan depends on the loan amount, interest rate, and tenure. For example, a ₹50,000 loan at 18% interest for 12 months may have an EMI of around ₹4,600 per month. Shorter tenure means higher EMI.
FAQs
1. Can I get a short term personal loan without a credit score?
Yes, some lenders offer loans without strict credit score requirements, but interest rates may be higher.
2. How fast can I get a short term personal loan?
You can usually get approval and disbursal within a few hours or the same day.
3. Is a short term personal loan better than a long-term loan?
It depends on your needs. Short-term loans are good for quick repayment, while long-term loans offer lower EMIs.
4. Can I prepay my loan early?
Yes, most lenders allow prepayment, but some may charge a fee.
5. What happens if I miss an EMI?
Missing an EMI can result in penalties and negatively impact your credit score.
6. Is it safe to apply online?
Yes, it is safe if you use trusted and verified lenders.
Conclusion
A short term personal loan is a useful option for handling urgent financial needs. It offers quick approval, minimal documentation, and fast access to funds.
However, it comes with higher EMIs and shorter repayment periods. You should borrow only what you can repay comfortably.