Apply For Personal Loan

Loan EMI Calculator

Long Term or Short Term Loans Which One Should You Choose

Long Term or Short Term Loans Which One Should You Choose

Personal loans have become easily accessible thanks to the digital era introducing a number of instant loan apps and credit websites. Even the traditional mode of personal loan has simplified the loan application process. Financial firms in India have a set variety of personal loan offering in the form of long term and short-term loans suitable for borrowers from diverse social and economic backgrounds.

Based on the loan tenure, personal loans are categorised as short term and long-term loans. Whether personal loan is required for a new venture, sufficing working capital requirement or paying medical bills, the loan amount and interest rate charged over it are the deciding factors to shortlist the type of loan. If you borrow less, there might be a need of taking another personal loan soon and if excess loan is taken, repaying it on time becomes a burden. Hence, it is important to identify as to which loan type whether short-term or long term will fulfil your financial need at that point of time.

Here are some basic factors differentiating between short term and long-term loans:
 
  • Loan Duration: A short-term loan is generally taken for 1 to 5 years whereas long term loan is taken for a prolonged period varying between 10 to 20 years.
     
  • Rate of Interest: A higher rate of interest is charged on short-term loans for the lenders to make considerable profits during the chosen short-term period.
     
  • Loan Amount: Short term loan amount vary between Rs. 15,000 to 2 lakh, depending upon the loan provider. This is easy to repay when broken down into EMIs. With long term loans where the loan amount is around 5 lakh or more, repayment of EMIs go on for a longer time.|
     
  • Loan Approval: The time taken for short term loan is quick with minimal documentation whereas long term loan with a higher amount requires more verification of the borrower’s credit worthiness and assets.
     
Benefits of Short-Term Loan

A short-term loan is valuable especially for small and medium sized businesses or start-ups. Short term loans are also helpful for sudden financial problems. Pay day loans and cash advances are types of short-term loans having the below advantages:
 
  • Less risky compared to long term loans as the amount to be repaid is less
  • Available even to those borrowers having low credit scores
  • Resolves sudden cash issues with 24 to 48 hours
  • No restrictions on how you can use the loan amount
  • Formalities and documentation are minimal that enables quick approval
     
Benefits of Long-Term Loan

Borrowers with a positive credit history can easily acquire a long-term loan to fulfil major expenses in professional and personal lives. The advantages of borrowing a long-term loan are:
 
  • Can be used for multiple investments
  • Minimizes the impact on operational cash flow
  • Structured payment process that successfully enables the borrower to clear EMIs over a long period of time
  • Repaying long term loans timely can build a strong credit score
  • Path for future loan applications is cleared once long-term loans are successfully repaid
 
Both that borrowers can acquire with a set of personal and income documents. Decide which loan types suits your financial requirement and apply for a loan accordingly. Check the eligibility criteria before filling the loan application form.
 
 
 

SimplyCash

SimplyCash powered by Hero FinCorp is an instant personal loan app providing cash loans of upto INR 1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash solves instant cash requirements of customers in just a few simple clicks without any physical documentation or meeting. The mobile app is available to users through all popular Android play stores like Google play store, Samsung store, Xiaomi store etc. With one of the most widespread presence, SimplyCash currently offers its services in over 90 major locations in India. Known for a seamless process, instant loan disbursal and transparent pricing - SimplyCash truly lives upto the expectations of being a 'Hero' product.  

Note: SimplyCash is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp. Hero FinCorp Limited is a Non-Banking Financial Company registered under the provisions of Reserve Bank of India ("RBI") and is in the business of finance and lending.

Accepted Banks:

ICICI BANK LTD HDFC BANK LTD IDBI BANK STATE BANK OF INDIA PUNJAB NATIONAL BANK YES BANK INDUSIND BANK KOTAK MAHINDRA BANK LTD

IDFC FIRST BANK LTD AXIS BANK BANK OF BARODA TAMILNAD MERCANTILE BANK LTD INDIAN OVERSEAS BANK INDIAN BANK RBL BANK LTD DEUTSCHE BANK AG CITY UNION BANK LTD FEDERAL BANK SOUTH INDIAN BANK STANDARD CHARTERED BANK CANARA BANK KARNATAKA BANK LTD CITI BANK BANDHAN BANK UNION BANK OF INDIA DCB BANK LTD DBS BANK INDIA LTD THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD DEUTSCHE BANK UCO BANK

Secured
Safe & Secure

SimplyCash is managed and operated by Hero FinCorp Limited, and it follows high data and system security standards.

View Details

SimplyCash Insights

Install App Instant Small Cash Loan App Online
Useful Links

Copyrights @ 2021 All Rights Reserved Powered by HeroFinCorp Ltd.