Short-term loan


Short-term loans – as the name implies – are loans usually for a short term of one or less year, primarily aimed at increasing temporary cash-flow deficits, whether they affect individuals or corporations. Lenders offer short-term lending solutions that meet particular criteria. Reimbursements are designed and organized to balance the cash flow available.

In general, short-term loans are unsecured, although it depends on your own credit history. Lenders could ask for collateral/security at their absolute discretion. These loans may be taken advantage of by people and companies. These are durable loans with a flexible tenure for repayments. While many lenders offer 1–5-year personal loans, a few banks, NBFC and other private lenders are beginning to offer even shorter-term lending.


  • Flexible end use: Short-term lending is multifunctional lending. They can thus be used for a wedding, family holidays, refurbishment, pay for college, buy electronics or furniture, set up and grow business or pay for a sudden medical emergency.
  • No collateral needed: In general, short-term loans are not guaranteed. In return for the loan sum, you don’t have to provide any collateral as security. For customers who have no guarantee of protection, this is highly advantageous.
  • Minimal documentation: For the short-term loan, the paperwork and documentation necessary are very limited. This makes the process for the customer short and simple, as the paperwork can be easily completed.
  • Quick disbursal: Short-term loan payments are comparatively faster than most another long-term lending since no documentation has to be given for the credit sum and any properties as nothing is usually pledged.
  • Loan amount: Individuals opt for a short-term loan to fulfill short-term demands like a medical bill, a wedding cost, or an unplanned trip to finance. The short-term credit balance starts at just Rs. 5,000 and can hit Rs. 3,000. Based on their needs the customer will choose the loan amount.
  • Tenure: Short-term loans are taken for a very short period, as the name suggests. Short-term lending can be easier to receive, which ensures that the person with the financial burden can be repaid very easily. The tenures vary between 1 and 12 months (1 year).


There are also eligibility conditions for applying for a short-term loan. They are:

  • One should be an Indian resident.
  • Must be a salaried or self-employed individual.
  • The individual should be within the age bracket of 21 years to 60 years.
  • Should have a minimum income of Rs.15, 000. In some cases, a minimum income of Rs.12, 000 is also accepted.

These requirements differ from lenders to lenders, and it is, therefore, best to inspect the criteria for their short-term lending with your lender.


In order to get the loan sanctioned, certain specific documents are required. These documents are:

  • ID proof.
  • PAN Card.
  • Proof of residence (Passport/Driver’s license/Voter’s ID/Phone or Electricity bill).
  • Latest 3 months bank statement (where salary is credited).
  • Salary slips for the last 3 months.
  • 1 passport size photograph.

These necessary documents will differ from lender to lender and so you can verify the documents required for your short-term loans with your lender.


  • Online: You can log on to the website of the lender, click on the loan section, pick short-term lending from all available loans and click on the “apply” button for short-term loans. The customer will then complete the application process with his/her personal and contact information. You can submit online documents such as ID proof, address documentation, and income proof.
  • Download app: The loan app can be downloaded from Google Playstore or Apple App Store if the consumer is using a smartphone. You can then quickly full the complete application process on your mobile phone. The client needs to visit no office in order to get the approval of and disbursement of the loan in his or her bank account. No physical documents are required.
  • Call customer care: The customer will also be able to locate the customer service number of their lender and dial it and ask their workers to help them apply for a short-term loan. The employees will then help you with proper advice online and on the mobile app.