TekyBlog

A short-term Personal Loan can greatly help borrowers who find themselves in troubled waters. It is a type of loan that comes without the baggage associated with the word ‘loan’:

• Slow-moving queues.
• Running from pillar to post
• Placating various lending institution officials and agreeing to strict and rigid terms and conditions.

Imagine this coupled with the stresses of needing immediate funds, and the duress of managing one’s finances. Facing an emergency often forces people to change paths and sell assets that may not yet be ripe or break fixed deposits that can derail a future that was hitherto carefully planned.

Our social fabric is such that borrowing from relatives is sometimes the first thing people rule out: better to face difficulties than meet relatives with a humble spine. We have detailed the merits of a short-term Personal Loan and how it helps you in case of an emergency which could need some financial backing.

Let’s see how a short-term Personal Loan can be a way out of this mess. 

1. No collateral: The need for collateral in loans like housing and car is done away with in short-term loans. Individuals who need the money in a financial emergency can consider these loans.  A medical or business need can befall anyone, and you do not want to use fixed assets, which at times becomes a necessity. But these loans do not require you to tie up your assets against them. 
2. Simple eligibility criteria: For short-term Personal Loans, you do not need a long list to tick off, just the basics like a steady monthly income, a healthy CIBIL score, and work experience to back your employability. This puts a large portion of the population in the eligibility bracket, and they can choose a loan that fits their requirements and ability. Producing a salary slip, your employment status, and other simple documents can help you secure the loan. You can even use any free Personal Loan Emi calculators to figure out the amount before applying for a loan.
3. Quick approval: The loans are promptly approved, and the money is reflected in your account sooner than it would with traditional loans. The procedures are simple, and the paperwork is less of a hassle. 
4. Easy repayments: Finance is a large and competitive sector, so various firms and institutions are vying for your attention. In simple words, this translates to easier terms for you. Competitive interest rates mean choosing the financial partner that best suits you and ticks off most boxes. You can pick the easiest EMIs for your loan after carefully analysing various offers on the market. So, you are not beholden to loan sharks that people fall prey to and can make independent financial decisions. 

5  Strictly regulated: In life and personal finance, a good rule of thumb is that if an offer seems too good to be true, then in most cases, it’s not. However, here, there is an exception. The sector is thoroughly regulated by government regulatory bodies like SEBI and adheres to watertight compliances set by the RBI. The finance world can be cruel to the unsuspecting and those in dire need, willing to accept all predatory terms. But the regulatory bodies have routinely stepped in for the borrower and maintained a healthy system of checks and balances which protect the borrower.