Skip to main content

Which is the best NBFC company to apply for a short term loan?

 

Loans make people's life easier. By availing of the loan, a person can fulfill their financial requirement which can be personal or business-related. Obtaining a loan from an NBFC offers financial support to the person for starting a business, paying debts, buying a house, or any other personal need. However, the length of the loan term can be as important as the loan amount and interest rates. Short-term loans are more beneficial rather than medium or long-term loans.

What is a short-term loan?

A short-term loan is a type of loan which usually comes with a shorter tenure period and slightly higher interest rates. The monthly EMI payments are larger in section. The short-term loan is generally paid off within a year or 18 months. Any loan term greater than 18 months is considered to be medium-term or long-term loans. It makes financial sense to consider a short-term loan as the best option. It is a valuable option for people who are starting their business or need a quick cash flow due to certain needs. It also helps any individual who doesn't have a credit line from a bank. A short-term loan allows the borrower to repay at their own pace of time. In this way, the borrower is likely to have less stress of the repayment tenure.

Benefits of a short-term loan

There are certain advantages of availing a short-term loan. Some of them are given below-

  1. Less Interest- As long as the amount is due on a person, more and more interest is added to the total amount. So, to avoid this situation getting a short-term loan will be a better option. You will be paying back quicker even if the rate of interest is higher than the long-term. In this way, you will save a lot of money in the long run.
  2. Predictable- There is no guarantee of the future. It is not predictable in the long-term where you will be in the next 10-20 years financially. In the long-term, you will be obliged to pay far in the future but in the short-term, it is predictable to set your budget and plan accordingly. The borrower's ability to repay is less likely to change over a shorter period hence, a short-term loan will be a convenient option.
  3. Easy to acquire- Even with low credit scores people can acquire short-term loans. The requirements of such loans are easier to meet and even the loan amounts are small too.
  4. No collateral- Like long-term loans, it doesn't require any collateral security to deposit in the institution. You can apply for short-term loans without providing collateral security to NBFC.
  5. Boost your credit scores- Due to the short duration, people generally pay off the amount quickly. However, timely payments are a good strategy for developing a good credit score quickly.
  6. Fast and secure process- Sometimes due to sudden urgency, a person requires the money in lesser time. The process of short-term loans is fast and secure hence providing quick access to the money. These loans are less risky as compared to long-term loans because of the shorter maturity date.
  7. Less loan approval time- Due to the small amount of money, it takes generally less time for the approval with minimum documentation as compared to other loans where the creditworthiness and assets of the borrower are verified.
  8. Balancing seasonal demands- Business faces ups and downs due to seasonal trends. Some businesses suffer financial crises due to off-seasonal products. Hence, to cover up the loss for the entire year short-term loans can be borrowed for maintaining a steady cash flow of the business and bearing the expenses.

The best NBFC for a short-term loan

Shriram City Union Finance tends to provide the best short-term loan plans to their customers. The company has a trusted legacy of 45 years. With nearly 947 branches across the country, they provide genuine service to their customers at their doorstep. With lower interest rates and a convenient tenure period, it brings complete relief to their customers for meeting their financial requirements. Their loan process is quite fast and secure which requires minimum documentation. Their loan assistants direct the customers in the right way throughout the application process by resolving their queries. They also offer competitive interest rates to their clients.

 

 

Comments

Post a Comment

Popular posts from this blog

A Beginner’s Guide to Business insurance

All businesses look for profit maximization and risk minimization and an insurance does the latter for you. It reduces your risk of paying for unexpected damages and offers risk management services to safeguard your company or business from threats, perils, tragedies, etc. An insured business can - Be safeguarded from potential risks - provide benefits to employees - Focus on business goals - Reduce unwanted stress. Business insurance provides coverage to your company against any damage or loss through theft, sickness, accidents, injuries or deaths. YOU NEED BUSINESS INSURANCE TO • To manage risk and safeguard from natural hazards • To adhere to the law • Protect your employees with insurance • To ensure lawsuit and settlement coverage • To share only risk, no profit. • To secure copyright • Gain new and retain old clients with credibility • To retain your employees • It is a pre-requisite in most business contracts • Its not one size fits all • Insurance offers BOP ( Business Opport
Post a Comment
Read more

All You Want to Know About Two Wheeler Loan Finance

With increasing demand in semi rural and urban places, 2 wheeler market is a high growth industry.  This implies there is ample chance for two wheeler finance businesses.  There has been limited awareness about funding for a two wheeler from the olden times but with the rising penetration of financial institutions throughout the nation, it is now possible to get 2 wheeler finance conveniently and quickly. Obtaining 2 wheeler loan finance is now simple. The qualification standards, documentation necessity and the procedure has been cited below: Eligibility: Individuals over Age 18. Salaried people who were employed for at least a year. Business owners that are conducting a company for more than a year. Documentation : Identity Proof Address Proof Income Proof Valid KYC documents Passport size photographs Process: So as to apply for two wheeler loan finance , the applicant should scout the market for a variety of Banks and financial institutions that offer the loan. Depending on the stip
Post a Comment
Read more

Important Facts About Business Loan

To begin with, business loans may barely be reversed from the lender or financial institution that delivers this debt. This is principal because of the simple truth that if applying this sort of financing, which can be used almost immediately after obtaining the funds. In this way, though you may pay a bigger amount of focus on a business loan, you might be able to gain by obtaining the whole debt funding you need in 1 shot. But, there might be a range of advantages of getting all the financing that you need in 1 lump sum rather than drawing a line of credit. As a result of recent changes in laws in addition to the ways that banks operate a business, you can anticipate a significant amount of being it small business loans or big business loan or business loans are not given directly to you. To the contrary, it is very likely to publish statements from providers that you are buying goods to be able to fulfil its business plan. The chief reason banks and financial institutions have creat
Post a Comment
Read more