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Why is a Personal Loan One of the Best Short-Term Loans?
India has seen a steep rise in Personal Loan applications and disbursals in the last few years. The collateral-free nature of a Personal Loan coupled with no end-usage restrictions makes it a convenient financing solution. Digital lending has also revolutionised borrowing, catapulting the lending business to new heights. But from the customer’s point-of-view, is a Personal Loan the best short-term loan? This blog lists the top reasons why it might be. Read on!
A Short-term Personal Loan is an unsecured credit option with less than 1 year tenure. It is a ‘fast cash’ solution for salaried individuals. These loans do not have any end-use restrictions. A Short-term Personal Loan empowers you to cover diverse monetary needs, such as emergency expenses, home renovation costs, etc. You may opt for a short-term personal loan to:
Here are seven reasons why Personal Loans excel in the best short-term loan financing arena:
A crucial advantage of this credit type lies in the rapid disbursement. Personal Loans can be approved and credited to your account within days. This agility is invaluable when facing urgent expenses, starkly contrasting the protracted processes of other options.
Responsible repayment of a short-term Personal Loan can do wonders for your credit score. Timely monthly instalment payments, reported to credit bureaus, can offset any negative marks, paving the way for better loan terms in the future.
Smart utilisation of a Personal Loan can translate to significantly lower interest rates than your credit card. Thus, you can save considerably on interest without facing a financial crunch while fulfilling your dreams.
Unlike other loans tied to specific purposes, Personal Loans offer unfettered freedom. Use it to cover expenses such as medical bills, car repairs, home renovations, or to bridge a temporary financial gap – the choice is yours.
Consolidate your existing debts under a single, streamlined Personal Loan. This simplifies your loan repayment with just one monthly instalment, and the potentially lower interest rate can shave off significant savings in the long run.
Unlike traditional loans that often require collateral, most Personal Loans are unsecured. This eliminates the need for guarantors or pledging valuable assets, making the process hassle-free and accessible to a broader range of borrowers.
Personal loans aren't confined to rigid pre-defined amounts like mortgages or car loans. You can choose the amount based on your circumstances, including expenses, income, and repayment capacity. This flexibility caters to diverse needs without imposing unnecessary limitations.
To access a short-term Personal Loan, here are some essential prerequisites:
A Short-term Personal Loan can be a great avenue to acquire funds in case of emergencies. When looking for these loans, Poonawala Fincorp emerges as one of the best short-term lenders. Here is a step-by-step guide on how to apply for the best short-term loans:
Step 1: Click on ‘Apply Now’ to move to the application form.
Step 2: Fill out the application form accurately and upload the required documents.
Step 3: Cross-check the details and click the ‘Submit’ button.
Once done, the representatives from your financial institution will verify your loan application. If all the papers are accurate, you will receive a confirmation and instant disbursal of the loan amount in your bank account.
Also Read - Short Term Loan Vs Long Term Loan: Differences, Benefits, Characteristics
During financial emergencies, short-term loans help to cover your expenses. The easy application process, competitive interest rates, versatile use, and other salient features contribute to their popularity. So, the next time you face a short-term financial hurdle, you may consider getting a Short-term Personal Loan.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.
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