How to choose short term loan?
There are several factors to consider while choosing a short term loan in order to ensure you get the best possible deal. Factors such as:
Interest rates: Banks offer lower or higher interest rates depending on the borrower’s occupation, income, and credit history. Before choosing a lender, compare the loan interest rates offered by different lenders and opt for the one offering the minimum interest rate.
Service charges: Processing fee, pre-payment charges, and documentation fee are some of the service charges that are added to the loan amount. Choose a lender that charges a reasonable fee for these services.
Equated Monthly Instalments: Compare the EMI options offered by various banks, before choosing the one that offers the optimum EMI option.
Loan tenure: The repayment period for short-term loans range from 6 months and 1 year. In some cases, the loan tenure is less than 2 years.
Loan issue time: The main purpose of a short-term loan is to fulfil the immediate financial needs of a customer. Most banks process and issue loans within 48 to 72 hours.
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