There are occasions when we find ourselves in need of money immediately. It could be a sudden medical need, tuition payments, wedding costs, or any other obligation. In these situations, getting the money as soon as feasible is crucial. Short term loans can be helpful in this situation.
One of the easiest ways to receive quick cash when you need it most is to apply for short term loans. You can use a short-term loan to meet any financial requirement. The short-term loan is one of the various varieties of personal loans that can be swiftly repaid. Let’s quickly review short-term personal loans for men and women.
What Are Short-Term Personal Loans?
The duration of short-term loans is between one and two years. This indicates that you have a short repayment period for the personal loan. A short-term personal loan is also an unsecured loan, so you won’t have to provide security or collateral in the form of an asset. The only factors the lender considers when deciding whether to approve your loan are your income, credit history, and credit score.
Even if short-term loans are disbursed fast, the word “short term” in this context refers to the loan’s tenure rather than its disbursal period. It is referred to as a short-term loan because you may repay it in such a short period.
Documents Required For Short-Term Loans
The following papers are required when applying for a personal loan:
- Filled out a short-term loan application with a recent photo
- Identity documents such as an Aadhar card, passport, driver’s license, voter ID, etc.
- Evidence of address, such as a utility bill, passport, Aadhar card, or passport.
- Age verification (Can be any of the above)
- Pay stubs from the previous three months or a bank statement from the previous six months
- Form 16
- A check for the processing charge and IT return paperwork
Short-Term Loan Features For Men
- Simple loan terms of up to a year.
- Loan amounts are available based on your eligibility and needs
- Reasonable interest rates that are based on your credit history
- Simple and straightforward documentation procedure
- Varying from lender to lender, there is no requirement for collateral or a guarantor.
- Customized lending options in a variety of categories
- The ability to apply online and with few documents with most lenders
Short-Term Loan Features For Women
- Short term loans are typically granted to female candidates starting at 10.49% p.a.
- The maximum loan amount granted is Rs 40 lakh.
- The typical loan term for female applicants is up to five years; however, specific lenders may give loans up to seven years.
- The processing cost typically ranges from 3% to 4%.
Eligibility Criteria For Men
- For short term loans, the applicant must be at least 18 years old. Depending on the requirements of the relevant lender, the age range may have virtually changed to 21–25 years. The oldest person allowed is 65 years old.
- The candidate must be either self-employed or a salaried employee.
- That is based on what the lender demands.
- The credit score must be at least 650 to qualify for the short-term personal loan option.
Eligibility Criteria For Women
- Women loan applicants must be at least 21 years old at the time of loan application.
- The borrower must be at least 60 years old when the loan matures.
- Women who apply for personal loans must work for specific private sector enterprises and Central, State, or Local Government entities for at least two years, with at least one year at their current employer.
- The essential net monthly income is Rs 15,000 per month.
- Female candidates who have credit scores (including CIBIL scores) of 750 or above are more likely to be approved for a personal loan at a lower interest rate. Some lenders may also grant personal loans with considerably higher interest rates to female candidates with poor credit histories.
Both men and women can benefit greatly from short term loans. They might be a wise way for businesses to handle unforeseen cash flow issues. People may find that these loans are a reliable source of emergency cash. Smaller companies or people with poor credit scores can only survive thanks to short-term loans. Due in part to the fact that these loans are typically for smaller sums of money as compared to the sums of money that are usually borrowed on a long-term basis, the requirements for such loans are typically simpler to meet.
Women applicants’ short-term loan interest rates would also be based on their credit histories. Typically, banks and NBFCs do not lower their interest rates for female loan applicants. You might therefore get a general notion of the short-term loan interest rates supplied to women applicants by comparing the personal loan interest rates provided by the top banks and NBFCs.
- Are interest rates for women lower as compared to men?
Government personnel typically receive preference from lenders for personal loans because of their more predictable income and stable employment. Female government employees have a higher probability of obtaining personal loans at lower interest rates if lenders consider the credit risk of loan applicants when calculating their interest rates.
- Which type of loan is best for homemakers?
The two personal loan options available to homemakers are secured and unsecured personal loans. Secured loan: Housewives who qualify must provide collateral in the form of a vehicle, piece of jewellery, or another asset to receive a secured personal loan.
- Explain Mudra Yojna for women.
Women entrepreneurs can get up to INR 10 lakhs in collateral-free loans through the Mudra Yojana Program for Women. The payback period is flexible, and 25 basis points reduce the interest rate.
- What loans are available for ladies?
There are three main categories of Mudra loans available: Shishu, Kishore, and Tarun, each offering loans up to Rs. 50,000, Rs. 5 lakhs, and Rs. 10 lakhs.
- Is there any PM Yojna for homemakers?
The Pradhan Mantri Matru Vandana Yojana (PMMVY) is a centrally sponsored DBT program that offers cash incentives to pregnant women and lactating mothers in the amount of 5000 rupees (in three instalments).