Life often brings unexpected expenses that require immediate financial assistance, which savings may not always cover adequately. Under such circumstances, short-term Personal Loans can assist in dealing with pressing financial outlays without delay. These loans are nowadays available online through Personal Loan app and websites, making borrowing efficient.
What are Short-Term Personal Loans?
Short-term Personal Loans provide small loan amounts for shorter repayment tenures. These loans can help meet unexpected expenses such as home repair, higher education fees, or urgent travelling. At Hero FinCorp, you can get loan amounts from Rs 50,000 to 5 Lakh at suitable interest rates, starting from 1.58% per month, and flexible repayment tenures of 12-36 months.
Benefits of Short-Term Personal Loans
The benefits of short-term Personal Loans are as follows:
Access to Money
When financial emergencies arise, timely response is essential. When you apply for a Personal Loan through a loan app or website, you can get timely approval followed by swift disbursal.
Repayment Terms
You can choose a suitable loan tenure per your repayment capacity and an instalment amount, making the loan repayment manageable.
Minimal Documents Required
A short-term Personal Loan requires basic KYC details and proof of income. Since the entire process is online, applicants do not need to submit physical copies of their documents.
Eligibility Criteria
To obtain a short-term Personal Loan, the applicant must meet some requirements. For example, when applying for a Personal Loan with Hero FinCorp, you should be between 21 and 58 years old with a decent credit score of 750 or above and earn at least Rs 15,000 monthly. Both salaried and self-employed individuals can apply.
Common Uses of Short-Term Personal Loans
Some of the common uses of short-term Personal Loans are:
Home Repairs
Damage to a house, such as a developing roof leak or faulty pipes, can happen unexpectedly. Repair work tends to need immediate financial assistance, which these loans are able to extend.
Urgent Travel
Family emergencies or last-minute travel can be costly. A personal loan helps cover these expenses without disrupting your budget.
Debt Consolidation
Handling multiple debts may be challenging. A short-term Personal Loan can be used to pay the debts and repay the loan in EMIs as per agreed tenure.
Steps to Apply for a Short-Term Personal Loan
Getting a short-term Personal Loan is easy. Here are the steps to apply for a short-term loan with Hero FinCorp:
Visit the website or install the loan app
Go to the Personal Loan page and click ‘Apply Now’
Enter your mobile number and verify with the OTP received
Choose the loan amount you need
Verify your KYC details to check income eligibility
Click ‘Submit’ to complete your application
Significance of EMI Calculation
Before applying, it is advisable to calculate EMI for Personal Loans to know the monthly instalments. An online EMI calculator can estimate the monthly instalment using the loan amount, interest rate, and repayment period.
How to Use an EMI Calculator?
It is simple to use an EMI calculator:
Go to the Hero FinCorp website and open the EMI calculator tool.
Input the required loan amount.
Choose the repayment tenure.
Enter the interest rate.
Once you enter these values, the calculator will show the EMI amount on the screen.
Factors to Keep in Mind Before Availing a Loan
You should consider some important factors before applying:
Loan Amount
Borrowing more than you need can strain your finances. It is advisable to borrow only the needed amount.
Interest Rate
Various lenders provide different interest rates. Viewing your options can help in getting favourable rates.
Repayment Tenure
Selecting an appropriate repayment period is important. A longer period lowers the EMI value, but a shorter period enables quicker debt repayment.
Monthly EMI
You must ensure your EMI is within your budget for the month. An EMI calculator can help you compute the EMI for Personal Loans beforehand and change the amount or tenure as needed.
Handling Repayments of Loans
Effective borrowing makes the repayment of loans manageable. Here are some tips to handle repayments well:
Switch on auto-pay to prevent missing due dates.
Reduce monthly expenses to prioritise loan repayment.
Pay on time to build a good credit report.
Why a Personal Loan App?
Short-term loans are accessible through the Personal Loan app. Here are some advantages:
Apply from anytime, anywhere.
Swify approval and disbursal process.
Minimal documentation requirements – KYC details and proof of income.
Conclusion
Short-term loans offer prompt financial assistance when required through Personal Loan apps. These loans come with multiple options for interest rates, flexible repayment tenures, and minimal documentation requirements. So, next time you have an urgent financial requirement, apply online to get the required timely.