Short term loans is the loan that is granted to the borrower for the personal use or urgent business need. This type of loans generally doesn't require any guarantee or security it is solely based on borrower capacity to pay. To fulfill urgent cash needs or to fulfill financial aspirations this type of loans are best options. Whether wedding preparations or international holidays or buying jewelry for spouse, it can help you to achieve all instantly. Those types of loans are given for minimum 15 days and maximum of 12 months it can vary from bank to bank.
Eligibility
You can take loan as per your need (maximum of 20 lakhs) and as much you repay easily generally EMI can be 40% of salary you take to home after deducting existing loans EMI.You can have a co applicant too as co applicant's income is also added so it will increase your loan repayment capability so will result in increased loan amount.
Eligibility criteria for SME are given below:
1- Your age should be at least 18 years.
2- You are eligible if you are salaried employee or self employed or self employed.
3-You should have fixed and stable income source and a very good repayment capacity.
4- Your CIBIL score should be good. (Credit Bureau of India Limited (CIBIL) maintains credit history of the customer by compiling data from all banks and repayment history of loans and credit cards by their customers based on that repayment history CIBIL assigns score to the customer). Before giving loan to any customer banks checks CIBIL score of the customer.
5- if you are a salaried employee then you should Works for a stable company.
Documentation:
Documents required are minimal for that type of loans. Generally bank requires following documents for processing loan:
i- Identity proof(pan card,passport, voter id, aadhar card, driving license etc)
ii- 3 to 6 months bank statement (if salaried statement of your salary account)
iii- residence proof(ration card, rent agreement, property documents, electricity bill etc)
iv- latest salary slips
v- In case self employed bank requires balance sheet, profit and loss account, partnership deeds etc.as for self employed person profit is the main cause to determine loan amount.
Documents changes if there is any change in RBI's (reserve bank of India) kyc (know your customer) policy.
Some more details you should know are:
Interest rate:
Rate of interest varied from bank to bank.14.25% to 25% at fixed rate.
Processing fees
It can be 1% to 5% of loan amount
Pre-closure charges
5% can be charged of pre-closure amount.
Guarantor requirement
Guarantor is not required for that type of loans.
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