Short Term Loan, different types of short term bank loans
In short term loans the amount of loan and interest rate should be returned in less than a year time period. The short term loan is taken by the person’s who get any emergency and they can not avoid that and they need that loan then they take the short term loan and repay it in the time period of less than a year.
TYPES OF SHORT TERM LOAN
Merchant cash advances:
The merchant cash advance loan is like cash payments but it is still in the category of the loans. In this loan the lender provides the loan to the borrower that is needed and the lender uses the credit card of the borrower and uses it till the loan amount is not repaid.
Lines of credit:
The line of credit loan is like using a credit card. This type of loan is different from the other loans. In this loan type the credit card makes monthly installment payments against whatever amount has been borrowed.
Payday loans:
The paydays loans can even be offered by the high street lenders. The payday loan carries very high interest rates but is good for the borrower.
Online or Installment loans:
The invoice loan is also taken online because it is easy and very convenient for the lender and the borrower both of them. The money is wired to the borrower’s bank account, when the loan is approved.
Invoice financing:
In the invoice financing loan the lender loans the money and charges interest based on the number of weeks that invoices remain outstanding. Once the invoice is paid by the borrower then the lender will take the interest charged on the loan before returning to the borrower.
BENEFITS OF SHORT TERM LOAN
- The short term loans have a short time for incurring interest.
- This loan provides quick time for funding to the borrower.
- This loan is easier to acquire.
- It helps you in an emergency by quick loan facility.
- The short term loan helps you in your business.
- It improves your credit rating.
- You have a short term debit in this loan.
DOCUMENTS REQUIRED FOR SHORT TERM LOAN
- Identity proof.
- Aadhar card.
- Residential proof.
- Driving licence.
- Electricity bill.
- Passport sized photograph.
- Salary statement of last three months.
ELIGIBILITY FOR SHORT TERM LOAN
- Nationality should be Indian.
- The borrower should be a salary based employee.
- Self-employees can also apply for this loan.
- Age for applying is 21 years to 60 years of age.
- Minimal income should be Rs.12,000.
APPLY FOR SHORT TERM LOAN
Steps of applying short term loans are given below.
- Choose the bank or lender from which you want a loan.
- Fill the application form.
- Mention all the details required in the form.
- Attach all the documents asked by the bank or the lender.
- Submit the form and wait for the approval.
BANKS GIVING SHORT TERM LOANS
| HDFC Bank | Standard Chartered Bank |
| Bajaj Finserv | Fullerton India Bank |
| Kotak Mahindra Bank | IndusInd Bank |
| ICICI Bank | PNB Bank |
| SBI | Axis Bank |
| TATA Capital | Reliance Consumer Finance |
| Deutsche Bank | HDB Financial Service |
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