A personal loan helps an individual to tackle certain payments and obligations that need their immediate attention. Hence it is the most sought out loan and is also quickly provided by a majority of lenders in the market. A personal loan is easily available in the market due to its popularity among the masses. The lenders set eligibility criteria which an individual has to fulfill. These requirements deal with the income of the individual, job stability, age etc. Only after fulfilling the criteria, the lender will disburse the loan amount to the individual.
Usually an individual would only take a short term personal loan when they do not have the capital with them or they cannot arrange funds on an immediate basis. Some of us do not like to ask our relatives or friends for money. Hence to save you this hassle, you can opt for short term personal loans. Yes, you can avail a personal loan for the amount you need and also for a short period of 2-5 years*. A short term personal loan can be taken to fund a mini vacation, purchase a Smartphone, to cover rent for few months etc.
A short term personal loan can help you improve your credit score. Yes, by paying your EMI on time every month until the personal loan is repaid helps in building credibility. This shows the lender that you are a responsible borrower. Also, when you plan to take a loan again, you can request the bank to give you a lower rate of interest and also waive off certain charges associated with the loan like processing fees, prepayment charges etc.
Hence taking a short term personal loan benefits your financial profile and also helps you in your time of need. To know more about how you can apply for a personal loan