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Short Term Loan Online at Lowest Interest Rates

Short Term Loan Interest Rates start from 11.49%. Go ahead & apply for a short term loan now!

What is a Short Term Loan?

A short term loan can be defined as loan taken for a period of one year or less. These loans usually have greater flexibility of repayment within the stipulated tenure. While most banks offer loans for over 1 year, there are a few banks and NBFCs which are now experimenting with loans for shorter duration. This type of loan is very prevalent via individual lenders, which is primarily unorganised with interest rates of over 100%. However, now via Cashkumar, we have individual lenders offering short term loans or payday loans for shorter duration and affordable interest rates.

Short Term Loan Interest Rates

Interest rates could vary based on the profile of the person as well as the institution/individual from whom the borrower is taking a loan. The typical interest rate for a short duration could be around the 1.5% per month i.e. 18% per annum. However, these rates could go much higher as the borrower does not feel the pinch since it is a small amount. Let us illustrate this by a simple example.

Person A wants to borrow a Rs. 10,000 for a period of 30 days. He is willing to pay around 11,000 at the end of 30 days. The deal looks lucrative, as the borrower gets the money that he needs and is comfortable paying Rs 1000 extra after a month. This however is a 10% interest rate for a month, which is close to a 120% on an annualised basis. This is the interest rate at which some loan transactions happen. This is all getting normalised on our platform as we cap the maximum interest rate to ensure sanity in the system.

Documents Required for Short Term Loan

  • Three passport size photographs
  • ID proof – Passport/Voter ID/Aadhar or Drivers Licence
  • Residence Proof – Passport/ Landline Bill/ Post-paid Mobile Bill/ Rental agreement or Bank Statement
  • Pan Card copy
  • Age Proof – Passport/ Drivers Licence/ School Certificate or Pan Card copy
  • Income Proof - Latest 3 months salary slips
  • Banking Statement - 6 months bank statements
  • Job Stability & Continuity – Offer Letter, Relieving Letter and Form 16

Basic Eligibility Criteria for Short Term Loans

  • This loan is given to both individuals as well as self-employed businesses with different criteria. A salaried individual should be over 23 years, working in a credible company, must have a good credit score as well as fair bank balance.
  • Salaried individual with minimum income of Rs 15,000. Salary bracket would again depend on the city you live in and the company you work for. Eg. If you are in a Mumbai, the salary requirement will be higher than non-metropolitan city and again if you are working in a top MNC, the salary requirement would be lesser than one working with a startup.
  • Should be staying in the city for at least 1 year
  • Total work experience should be at least 2 Years
  • You would require basic documentation such as your address proof, identity proof, latest bank statements etc
  • For a business, there needs to be some relationship with the bank or a healthy bank transaction showing regular credits.

Customer Stories on Short Term Loans

Rajesh was working in one of the reputed companies in Bangalore. For his son's graduation, he wanted to gift him a bike which was around 75,000 of which he had 35,000 and needed around 40,000. Rajesh was not keen on applying for a Personal Loan with a bank, as the tenure being offered was a minimum of 1 year. He was looking for a 6 months loan to close it quickly. That is when Rajesh explored an option of a Short Term loan where he got offers right from 1.5% per month to 5% per month. Rajesh was expecting a bonus in the near future and was also keen on an option of pre-closing the loan even before 6 months or choosing a 3 months loan. But with Cashkumar, providing him an option of pre-closure with zero charges, he took a 40,000 loan from a few individual lenders and returned a total of around 43,000 over a span of 6 months. This worked well in his favour as he did not have any obligations and at the same time he fulfilled his son’s desire of getting a bike.

Short Term Loan Interest Rates

Check the Interest Rates and EMIs using Short Term Loan EMI Calculator at different monthly flat interest rates

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