Finance

Types of loans for short term requirements

In such a scenario, you might not have many options at your disposal and would be looking for alternate funding sources to meet your requirements. Well, there are various types of Personal Loans offered by lenders which you can consider. Though, it is important to mention here that not all types of loans are suitable for short-term requirements. Depending on your needs and preferences, you must opt for the option that can allow you the maximum flexibility.

Personal line of credit

With the emergence of online lending companies like MoneyTap, a new type of Personal Loan variant has become quite popular among Millenials. You will be offered a personal line of credit by the financial institution, which can be accessed through their mobile app or website. You can withdraw money from the personal line of credit as and when required.

Instant cash loans

Instant cash loans have assumed excellent popularity in the present times. The hallmark features of instant cash loans are quick processing and instant disbursals. You can apply for an instant cash loan through online channels, including mobile app and website.

Some of the noteworthy features of an instant cash loan are

The minimum age of the applicant should be 21 years to avail of this facility. Instant cash loans are available for salaried as well as self-employed individuals. Moreover, these loans are available for individuals with CIBIL score as low as 650. The entire application process is paperless, wherein you need to upload scanned copies of the documents.

Consequently, the applications are processed in a quick time. 5 Lakhs, making them suitable for immediate requirements. This allows you the option to choose an EMI amount that you are comfortable with.

Banks offer this facility in the form of a pre-approved loan for select customers. The amount available depends on your repayment behaviour and credit profile. You can avail of this facility through net banking, mobile app, and phone banking. These are three of the most popular types of loans for short-term financial requirements.

Still, you should avail of this facility only after a thorough analysis to make sure you do not end up in a debt trap.

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