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Short term loans in India

Key takeaways

  • A short-term loan is available for up to 1 month.
  • It is suitable for personal and business problems. 
  • You can take a quick short-term loan from Robocash.

Short term loans are the loans which you get for small tenure like 7-90 days. It is generally for small amounts and available with a simple process. You do not have to do any paperwork or go anywhere for taking short term loans in India.

Types of loans in India

There are different types of loans like Home loans, Auto loans, Personal loans, etc. However, there are two main types of loans. Long and short-term loans are types of loans, as per the repayment duration of the loan.

What is a short term loan?

Short term loan is loan given for a shorter period. The short-term loan repayment tenure is less than one year in most cases. Short term loan definition is any loan which is for less than 1 year.

Short term loan features

✔️Lower loan amount. You can get a small amount. Loan amount starts as low as Rs. 1,000. Your loan amount approval will be depending on your income.

✔️Higher rate of interest. Short term loans have higher rate of interest but overall interest amount you pay compared to long term loan is less. You pay interest for less time.

✔️Easily available. It is easy to get a short term loan. You will not require any documents or assets to get a short term loan.

Convenient repayment facility. Repayment of short term is easy. You can repay whenever you want. You do not have to wait till the last date. You can use facilities such as extensions to increase your loan tenure. 

Types of short term loan

✔️Buy now Pay later. You can purchase a product and pay for it later in one shot or EMIs.

✔️Line of credit. You get an approval for a specific amount but you can choose what amount you want. If you got approval for Rs. 10,000 you can choose to take only 3,000 and any amount in future from your approved limit.

✔️Payday loan. Such loans are available only for salaried people. Loan tenure is for around your salary date. You need to repay the loan when you get your salary.

✔️Online loan. You can apply for any amount and get approval. They are easy to take and available for everyone.

What is a long term loan?

Long-term loans are for a higher amount and a long tenure. The process of taking a loan is also longer compared to a short-term loan. Long-term loans are the most famous form of credit in the financial industry. You can take long-term loans for any purpose. 

The long term loan features

✔️Higher loan amount. You can get a bigger amount for the long term. Term can be anything between 2-30 years depending on loan type and amount. 
✔️The rate of interest is low. Interest rate is low in long term loans but the amount of interest you end up paying will be much higher than short term loans.
✔️Tax benefit. You get a discount in tax if you have any long term loan like home loan.
✔️EMI repayment. All long term loan repayments can be done in EMIs. In short term loans many times you have to repay the loan in one shot.
✔️Collateral needed. You will require assets and paper for a long term loan. You will even need guarantors for such loans. Process is time consuming.

Types of long term loan

✔️Auto loan. You can get it for 1-5 years depending on your requirement. Approved amount will be dependent on your capability to pay monthly EMIs.
Home loan. This is the most common type of loan. It is available for long terms like 20-30 years. 
✔️Education Loan. It is available for students at low interest rate. They can repay the loan after they complete the education.
✔️Small business loan. Business loans are long term loans depending on amount and tenure. Terms vary depending on business type and size.
✔️Personal loan. You can get a personal loan for long term for things like weddings, repairing houses etc. 

Benefits of a Short-Term Loan

Now we will list for you the most significant advantages of this type of loans.

Available for a shorter period

If you need urgent money for a specific time duration. You can easily take a loan to fulfill your requirement. You do not need to take a loan for a longer time. A longer-term loan is hectic as well as you pay interest for a longer time.

Total interest paid is less

Long term loan is available at a lower rate of interest, but the overall interest amount is higher than the short-term loan. If you take a short term loan, you may give some higher rate of interest, but you pay interest only for the short term the specific period you take the loan.

Easily available

Short term loan is easy to borrow compared to a long-term loan. A short term loan is low in risk for lenders because the borrower's condition may change in a shorter period. In addition, for the short-term loan, documents and other process requirements are flexible, and the process is easy.

Easy to take

Short term credit is always easy to take a loan. Compared to other types of loans. The requirement for short term finance is less as well as less paperwork. In the current digital era, you can get instant, short-term loans through simply an online application. Short term loans online in India is readily available. Lots of online short-term loans companies’ credit money in your account within minutes of your application.

No guarantor and collateral needed

Quick short-term the loan does not require any collateral and guarantor. As previously mentioned, a short term loan is less risky for the lender. That is the reason the company does not ask for collateral and a guarantor for the loan.

Short term business loans

Short term business loans are available for the business to fulfill the short-term fund requirements for the smooth operation of the business. For a business, many ups and downs come during business operations. For example, a new order for the product comes to the company that requires extra money to fulfill the demand. Short term business loans are also taken for the payment of rent and salary of staff and companies facing short term cash problems.

Long-term business loans are given for a longer duration, and many regulation problems may come during the process. Moreover, business loans need to be paid interest for the whole loan period in the long term. That is a burden on your business.

Short-term business loans are available for the business for any cash crunch. You can have a cash crunch like paying office rent. Paying advance to your suppliers. Paying the salaries of your employees on time. Paying licensing fee which is required to do the business. Short-term business loans can help you in all these situations. The repayment of the loan is easy as compared to a long-term loan. The borrower can repay the loan quickly and pay interest for only that period in a short period loan.

How to apply for a short-term loan in Robocash?

Robocash is a digital-driven short-term personal loan providing company. It gives loans for short term loan period for any cash crunch you are facing. 
Robocash loan is a short term loan in India that is available for salaried and self-employed. To apply for a Short term loan, you need to be an Indian citizen, and your age is greater than 21 years and less than 58 years. 

Robocash Short term loan app helps you apply for the loan conveniently, and all the process is digital. You can also apply for a loan from the Robocash website. 
Documents required for the Robocash loan are pan card and address proof. No physical documents are needed for the loan. Robocash's interest rate and processing fee is competitive and attractive.
You can get approval for the loan amount starting from Rs.1,000. Your limit will keep increasing whenever you repay your loan amount on time. Loan tenure will also vary depending on your credit history and limit with Robocash. Repayment of the loan is also easy.Pay your loan repayment as per your convenience. Pay the interest-only for the day you use the money. Robocash does not charge an interest rate for a whole month or year.

How Can a Short-Term Loan Help You

Short-term loans can help in a different way for different types of problems. Lots of people chose short-term loans because banks denied them a loan.  Short term loans are available from the app. It does not require physical documentation. You can get approval even with a low credit score. Chances of your approval are higher than a long term loan application. In short term personal loans no credit check happens if you have a low credit score.

For loans from traditional lenders like a bank you need a very high credit score. However, in the case of instant short term loans, you can apply with a low credit score, your application may be accepted by the lender if you met other criteria of the lender.

For business, short-term loans help in the daily operation of a business and paying any bill. In business, lots of time you need a small amount of urgently. In this case, you do not have to go for the long-term loan and fulfill paperwork and regulatory work. Short loans are readily available in a simple online process.

In the case of a student, a short term loan is helpful for purchasing gadgets and books or any course material. They can do the repayment as per their convenience. 
For a freelancer, short-term loans help with a different type of problem. Freelancers work on different projects and get payment from clients after completing the project. Many times freelancers face a cash crunch and need a short-term loan and repayment after getting money from the client. 

Short Term Loan FAQs

Is it safe to take a short-term loan from a mobile app?

Yes, a short-term loan from mobile is safe and secure. Short term loan apps like Robocash make it easy to apply for the loan. Not all loan apps are genuine. Many fraud loan apps are available in the play store. Before taking a loan, one must enquire about the company. The company must be RBI registered for providing a loan. Robocash provides the loan according to RBI guidelines for the short term.

What are the charges of a short-term loan?

Many companies are providing loans for various reasons. The charge of the short-term loan changes company to company and your credit score. Robocash provides short-term loans at an attractive rate of interest 

Can I get a short-term loan for business?

Yes, you can take the loan for any small amount required for your business. Robocash helps you during short-term cash crunch problems.  Short term loans online are easy to apply and take money.

What documents are required to take a short-term loan?

Taking a short-term loan in Robocash, you need only two types of documents. The document is Pan Card and addresses proof, and doesn't require any physical document for the loan. The entire loan application process is online. 

How much money can I get in a short-term loan?

Short term loan meaning is a small amount of loan for a short time. Short-term loans fulfill your short-term requirement. For example, in Robocash, you apply for a minimum of ₹1000.

Conclusion

Short term is a type loan provided for the short-term requirement of personal Finance and business operation. Short-term loans are available for different types of personal and business problems. The short term loan is cheaper than the long-term loan. You have to pay interest for fewer days. This type of loan is convenient for taking as well as in repayment of the loan. A short-term loan does not need lots of paperwork requirements and any collateral. Now, most loans are available only in the online application, and all processes are done digitally.

Next time when you are in need of urgent cash you can take a quick short term loan.


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