Things to Know About Short Term Personal Loans

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Things to Know About Short Term Personal Loans
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• Short term personal loans are loans that can be
  availed for a limited duration ranging generally
  from one month to a couple of years.
• Most such loans are unsecured, which means that
  the applicants do not need to put up any
  collateral for availing them.
• Being unsecured, the interest rate of these loans
  is relatively higher than other loans, especially
  secured ones.
• These loans are offered by various lenders, each
  having their own terms conditions for offering
  the loan.

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BENEFITS OF SHORT TERM LOANS
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1. Multi-purpose Usage These loans can be used
for diverse purposes without seeking
authorization from the lenders for the same.
Although loan applicants are required to provide
reasons for availing loan.
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2. Do Not Require Any Collateral It makes loan
an extremely convenient option for people with
limited resources or who might already have
availed a secured loan with collateral.
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3. Minimal Paperwork Required This makes task of
processing loan applications extremely fast and
hassle-free, also enhancing the ease and
convenience for applicants.
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4. Fast Loan Disbursal This ensures that
applicants get the required amount within a few
days and sometimes a few hours making it easier
to borrow the amount at a short notice.
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5. Short Tenure Means Lesser Stress The amount
borrowed is generally quite low and this often
results in lower EMIs that can be easily paid by
the borrower over the given time period. This
tends to create less stress for the borrower.
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• Things To Remember While Availing For Short Term
  Loan
• Short term loans often come with a high-interest
  rate, which is why the applicants should plan
  their finances accordingly to ensure timely
  repayment of the borrowed amount.
• Just like some instant loans online, some lenders
  might levy heavy penalties on borrowers in case
  they miss even a single installment, which can
  increase the financial burden of borrowers
  significantly.
• Given the unsecured nature of these loans, most
  lenders prefer to offer them only to people with
  exceptionally good credit history.

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