Which Personal Loan is better for you? - Long term or Short Term
Published on : May 28, 2021

When you are on the lookout for a loan you may have come across these terms associated primarily with Personal loans – long term and short term. What do these terms mean in regular parlance? A Short term personal loan refers to loans that have a tenure of up to 12 months. Long term personal loans are those loans that have a tenure greater than 12 months and they may go up to 60 months or 5 years. How does one decide which loan to go for? Well, it depends on the amount of EMI you are comfortable with. 

EMI is calculated based on the length of the loan tenure. The longer the tenure, the lower the EMI. However, you have to remember that you are liable to pay an interest component across your loan tenure. However, if you prefer to have a low monthly cash outflow, you are better off taking a long term personal loan as it doesn’t impact your liquidity. On the other hand, if your purpose for a personal loan is to tide over an immediate cash crunch or to meet an emergency expenditure, you may be better off looking at a short term loan that you can pay off faster.

Once you have decided on the loan tenure, you can apply for the personal loan at LoanTap. All you need to do is fill up an online application and upload the necessary documents. If the paperwork is complete, your documents are in order and you are eligible as per credit policy, , you can expect your loan to be disbursed within 24-36 working hours. The process is quick and hassle free.

So, who is eligible for taking a personal loan?

Any indian citizen or resident who is above the age of 21 years and earns a monthly income more than Rs 30,000 is eligible to apply for a personal loan. These are the primary requirements for filling up the application form. Sanction of loan will depend on the verification of documents and having a good credit score.

What is the maximum amount of personal loan available?

Personal loans can range from Rs 50,000 to Rs 10,00,000 depending on your eligibility and need. Interest rate starts at 18%. The tenure can be up to 12 months for a short term loan while a long term personal loan can go up to 60 months.

What are the documents required?

You will need to upload the following documents along with the application.

  • PAN card
  • Address Proof
  • 3 months salary slip
  • 6 months bank statement of salary account
  • eNach Mandate

 It is important to provide necessary Income proof while applying for a personal loan. Also, Having a good credit score will ensure that your loan application receives a favourable response.

What is the process after Application submission?

The team at LoanTap will verify the documents and complete the KYC process. You also have the option to complete the KYC online in just 2 minutes. Once the process is complete, the loan amount will be instantly disbursed to your bank account. The entire process from start to finish takes 24-36 working hours.

What are the features of personal loans?

As compared to other loans, personal loans are more flexible because they are not linked to any particular purpose. They are open ended and you can take a personal loan for any purpose that you please. Personal loans are unsecured loans which essentially means that you do not need to pledge any asset as security. There are no prepayment penalties in case you wish to foreclose the loan after six months. You can select the repayment option according to your monthly cash flow and convenience. You may opt for interest only EMI, step up EMI, overdraft or term depending on how you wish to align with your cash inflow dates.

Personal loans are multipurpose loans and are the best financing option available when you need funds within a couple of days. The processing is easy, user friendly and convenient with minimal paperwork. It is the paperwork which deters many  from applying for a loan but we can assure you that getting a personal loan is like taking a walk in the park. It is that simple and convenient. Based on your repayment convenience e, you can choose to go for a long or short term tenure. That is entirely up to you. No matter what your loan size, tenure or repayment option, the team at LoanTap will ensure that you have a wonderful experience. So, what are you waiting for? Go ahead and visit https://loantap.in/ and we will be able to assist you with all your financial needs. Just be certain to choose a short term personal loan or a long term loan based on your monthly cash flows to ease the payouts !

Related Article – Should I Choose a Long-Term or a Short-Term Tenure for my Loan?

Long-Term Personal Loan: All You Need to Know