How to classify different types of Instant Personal Loan?

How to classify different types of Instant Personal Loan?

  • by
different types of Instant Personal Loan

Instant Personal loan is known as the best component to get rid of a financial crisis and its features and benefits help everyone to manage their cash requirements. However, it is a temporary solution for your cash crunch and your strategy for the repayment must be clear as per your income ratio and saving amount after accomplishing your expenses. Therefore, for multiple expenses, as per the time and loan amount you can discriminate based on loan type. We, hereafter, discuss types of instant personal loans that can help you as per need.

Short-term personal loan

A short-term personal loan is designed to accomplish the cash crunch when there are requirements of a lower amount, and you are not able to manage the cash due to having a month-end cash crunch or unexpected expenses. In that case, a short-term personal loan helps you get instant relief in paying your utility bills like credit bills, school fees and many more.

Tenure

The tenure for the short-term loan is short and usually, it is fixed for thirty days, or you are supposed to repay the loan amount with your next salary date. The lenders consider your salary and credit score before the approval and in comparison, to your salary, they approve a loan amount which is forty percent of your salary. It is approved to secure the repayment by the borrower because, as per the salary they can plan the repayment strategy easily, especially for the lower amount.

Repayment scheme

The repayment scheme for a short-term loan is different and a one-time repayment is preferred by the lenders like the credit card bill which is approved for a short period. However, some lender facilitates different EMIs; in that case, the tenure is expended for three months.

Personal loan for long-term

It’s a commonly known type of personal loan where anyone can borrow, especially those having an average salary like RS. twenty thousand or more, and can pay the amount in different EMIs choosing the long tenure.

Tenure and EMIs

In the instant personal loan, you can choose the amount which may be multiple of your salary, and you can choose the EMIs as per the rate of interest and length of EMIs. In this type of loan, you are allowed to pay the loan amount easily by increasing your saving amount. Here also you need to have a good salary and credit score which is verified by the lenders and after getting your creditworthiness, they approve your loan amount with a certain tenure, interest rate, processing fees and all. Therefore, a long-term loan is distinct from a short-term loan, and it happens only as per the tenure and repayment schemes.

Features and Benefits of an Instant Personal Loan

Easy application

The application process for an instant personal loan is easy and as per your requirements, you can apply for a personal loan through your smartphone only by filling in all the details and submitting all the required documents.

Instant Approval

The loan amount is approved and disbursed shortly due to having advanced fintech technology and therefore you can get the amount in a while.

Convenient Repayment

It’s easy to repay the loan amount with the upcoming salary in case of a short amount and it can also be converted into small and different EMIs.

Conclusion

As per the requirements of loan amount and repayment strategy, you are free to choose the loan either a short-term or long-term loan. Before applying for that you must be assured about the loan amount, rate of interest, processing fees and all. It affects your repayment and financial planning if not verified before borrowing. There are huge differences between short-term and long-term loans and their main components have been discussed briefly. Where a short-term loan is provided to manage small financial requirements. If you are also looking for an instant personal loan in Delhi, apply online and get your disbursal right now.  

Leave a Reply

Your email address will not be published. Required fields are marked *