5 Kinds Of Short Term Loans In India

The need for a short-term loan is an indication of a pressing financial need. A short-term loan can provide help to tide over your finances in times of need. There are different types of loans available for a borrower to choose from. A personal loan, overdraft facility, and credit card debt relief are some popular options for availing of short-term loans in India that one can choose from. The following infographics will tell you more about these five types of short term loans currently used in India:

1. Personal Loans:

These are best suited to borrowers who want easy repayment terms and do not mind paying higher interest rates on the money borrowed. Personal loans are the most popular short-term loan in India. According to research, about 55% of borrowers availing of personal loans do so for medical reasons.

2. Credit Card Debt Relief:

If a credit card holder is unable to make timely payments, credit card debt relief helps him or her by extending the repayment period and extending the interest rate on the credit cards. The additional benefits provided by these short-term loans include financial planning and counseling services as part of the package.

3. Overdraft Facilities:

These are repackaged due to their similar financial needs as personal loans, but with increased interest rates. They have been termed overdraft facilities because they allow borrowers to access their money without giving any collateral security in return. Overdraft facilities are one of the most talked-about short-term loans in India today.

4. Instalment Loans:

These are also called installment loans and car loan refinance schemes. This type of short-term Emirates Loan allows a borrower to pay back the loan over time at regular intervals. They can be taken for any purpose, including travel, medical reasons, or home repair. These loans are categorized into secured and unsecured loans.

5. Home Improvement Loans:

A home improvement loan can be taken for modifying the home or increasing its value by installing new features or upgrades. These loans often have repayment terms of no more than a year. A home improvement loan can be taken for any type of improvement in the house, such as renovation, extensions, window installation, or even solar panels.

Final words

All these five types of short-term loans are easy to apply for and easy to get approved by lenders. They are all short-term money solutions with different repayment schedules and interest rates depending on the loan requirements. The choice of which short-term loan to take out is based on the borrower’s needs and preferences.

The need for a short-term loan is an indication that you are having a hard time handling your finances. The ease with which you can obtain this type of loan depends on your financial status. You can choose the one that suits you best. It’s important to note, though, that all types of loans have their own advantages and disadvantages. It’s also important to understand these before accepting any loan or product offered to you by a lender or financial institution.