Top Benefits of Personal Loans for Short-Term Financial Needs

Banks and Non-Banking Financial Companies (NBFCs) offer a myriad of financing solutions, from short term loans to ones with a longer duration; whatever your need, a loan is available.

Among the various categories of loans, personal loans gain significant popularity. Recent studies have revealed a significant increase in the utilization of personal loans, which underscores their adaptability and practicality.

The numbers are not surprising, given the ease and advantages of short term loans. But before we dive into the nitty-gritty of personal loans, let's understand the basics.

What is a Personal Loan?

A personal loan is a multipurpose loan available for personal or business-related financial needs. The loan does not require any collateral security and offers flexible repayment options. It is one of the major reasons it serves as a short term personal loan for your short term financial needs

Also read - 5 Ways you can use a Personal Loan for career development

What is a short term personal loan?
 

Short term personal loans are financial products designed to provide borrowers with access to funds for a short duration, typically ranging from a few months to a couple of years. These can be used for various purposes, including debt consolidation, home renovations, or unexpected expenses.

Short term loan eligibility

To avail of a short term personal loan, here are some basic eligibility parameters you need to fulfil –

• Age

You must be more than 18 years of age to avail of a personal loan. Usually, lenders require a minimum age of 21 years to apply for a loan. The maximum age to apply for a personal loan is between 60 and 70 years. Metra Trust offers personal loans between the age of 23 and 60.

• Income

A minimum steady income is needed to get the loan. Usually, it starts from Rs 20,000 and might vary across lenders.

• Credit score

The CIBIL score shows your creditworthiness and is an important criterion. Usually, personal loans are available with a credit score of 700 and above.

Advantages of short term loans

Here are seven reasons why short term loans can aptly fulfil your needs -

• Quick availability/disbursal

Personal loans, also known as instant loans, are sanctioned with a short turn-around time. For instance, Metra Trust Personal Loans can be approved within 5 minutes*, and the funds are disbursed within 30 minutes. Given the speedy disbursals, personal loans prove ideal for emergencies.

*Note - It is best to speak with the bank and read the terms and conditions for quick disbursals. 

• Minimal documentation

Personal loans are accessible with minimal documentation. Add to it the digitisation of the loan application process, and you can simply upload the documents online and fulfil the requirement. For instance, Metra Trust Personal Loan is fully digitised for a convenient application process and is one of the best short term loans in India.

Note – End-to-end digital depends on the approved loan amount

• Easy availability

Personal loans have simple eligibility criteria. Some lenders also offer loans at a low credit score. With more than two dozen banks and NBFCs in the fray, it is easy to get short term personal loans sanctioned. You can compare various loan offers and choose a lender with the lowest interest rates.

• Flexibility

Need to buy a refrigerator or an air conditioner? Consumer durable loans give you the desired funds. If you are planning an international vacation, you can choose travel loans. But what if you need to do both?

This is where personal loans prove suitable. Whatever your needs, short term personal loans offer no-questions-asked funds.

• No collateral required

Personal loans are unsecured loans that do not need any security or third-party guarantee. You don't have to pledge any asset as collateral to get the funds. The loan is sanctioned based on your income and eligibility qualifications.

Since no collateral is needed, you are not bound to mortgage your assets making the loan easy and convenient.

• Lower interest rates

Short term loans have affordable personal loan interest rates making the loan easier to repay. There's also the possibility of getting the lowest interest rate by having a good credit score and/or a higher disposable income. 

For instance, Metra Trust Personal Loan starts from an interest rate of 10.75% per annum.

• Opportunity to improve credit score

Availing of a personal loan allows you to establish your credit history when you are new to credit. For those who already have a credit history, timely repayment of the loan EMI can help you build up a good credit score.

Factors to consider before taking a short term loan

Before you avail of a personal loan, here are some factors to keep in mind -

• Interest rates and fees

Check the personal loan interest rate before you avail of the loan. Choose a lender offering the lowest rate to save on the EMIs, and check the fee structure, especially the processing fee. Loans with lower fees are better since the additional costs are reduced.

• Repayment terms

Assess the repayment tenure of the loan. Pick lenders offering flexible options like Metra Trust Personal Loan , where you get tenures starting from 6 months and going up to 84 months.

• Credit score and history

Check your credit score before applying for a loan. A low score might get your application rejected or result in a high interest rate. Match your score to the lender's eligibility requirement to get your loan sanctioned easily.

• Purpose of the loan

Though personal loans are multipurpose, assess the need for which you want to avail the funds. Have a particular goal in mind for which the loan is needed. Don't overspend because you can avail of the loan, or the repayment might become challenging.

• Other financial obligations

Assess your existing debts when availing of a new loan. Ensure that the aggregate EMIs payable for your debts don't strain your budget.

How to apply for Metra Trust Personal Loan?

Metra Trust Personal Loan can be an ideal solution for your short term financing needs. It offers funds up to Rs 1 crore with minimal documentation. The digital process also speeds up the loan sanction granting you funds at the earliest.

There are just four steps to apply for the personal loan –

• Step 1

Apply online through the Metra Trust Mobile Banking App

• Step 2

Enter your details for an eligibility check. Once checked, you will get online approval

• Step 3

Upload your documents and complete the loan verification process

• Step 4

The bank verifies your personal information based on the documents submitted. Upon successful verification, the loan is credited to your bank account

Also read - How to calculate bank interest rate on a Personal Loan

The bottom line

Short term personal loans can give you quick funds for your varied financial needs. The loans are affordable, collateral free, and available online in a few steps. So, plan that much-awaited vacation, give your home the makeover it deserves, or pay for an emergency - do all this and more with a personal loan. Apply for the loan in four simple steps with Metra Trust and get the funds sanctioned seamlessly.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.