A loan that requires repayment in a period less than a year is termed as short term loans. For getting short term loans a person should have a good track record as well as a good banking relationship. It is mainly used when there is a crisis situation in the business; this loan helps in fulfilling the capital needs. The short term loans are also very beneficial for starting any new business. The approval time required for these loans is very less and the funds are also transferred very quickly just after the loan gets approved. Many banks and private companies offer such loans. The rate of interest for such short term loans also varies from banks to banks. The security offered by the short term loans also depends on the bank at which the loan has been applied. The eligibility criteria set by most of the banks is checking of the previous credit history. If the loan is a short term payday loan then the past credit history of the borrower is not checked.
Conditions for getting short term loans
- The applicant applying for a short term loan should be salaried or self employed and should have a steady flow of income from a genuine source.
- Should be of the required age limit specified by the branch.
- And should provide all the necessary documents required for getting approval for the loan.
A number of online sites provide short term loans online. The process of getting a short term loan includes the following steps:-
- For applying for a loan there are online registration forms available that is required to be filled with necessary information.
- Then the application is processed.
- Once the application is approved the loan amount is transferred to the borrowers account. The transfer of money takes a very small amount time.