Which Personal Loan is better for you? - Long term or Short TermPersonal loans are best known for their flexibility. Borrowers can take personal loans to support various financial needs. The loan tenure differentiates personal loans into two types – short and long-term personal loans. Loans with a higher amount are given a longer period to repay whereas short-term loans are cleared in a couple of years. Both types of personal loans have their own benefits for different borrowers.
Consider the following while selecting a long term or short-term personal loans:
- Short-term loans are less risky for the lenders in terms of repayment. Hence, no collateral is required. Lenders will ask for a security pledge for loans with longer tenure.
- Short-term loans are ideal for emergency situations and long-term loans with more amount can support financially to fulfil your life goals. For instance, buying a new house, supporting your child’s foreign education etc.
- Short-term loans have higher accessibility online. Borrowers can apply for a loan up to 2 lakhs with instant loan apps and websites. This can be repaid easily in a tenure of 1 to 3 years. This is not the case with long-term loans. No doubt you can enquire and apply for long-term loans online but the processing will have a personal involvement from the financial institution. This is mainly due to a higher loan amount which cannot be sanctioned only in just a few clicks.
- Long-term loans are better off in giving a considerable interest rate. Lenders track your financial history before loan sanction. Expecting the status of your finances to be stable in the imminent future, a low-interest rate is given on long-term loans.
- Borrowers can make use of the EMI calculator wisely to select the loan tenure for both short- and long-term loans. Depending upon the loan amount, you can select the interest and repayment tenure to derive a well-budgeted EMI in seconds.
Hero FinCorp, one of the fastest-growing financial service companies in India, identified the need for urgent finance and developed a user-friendly instant loan app called ‘Simply Cash’.
For short-term loans, Simply Cash is a reliable instant loan app of recent times. It is securely available on Play Store and open for download on smartphones. In case of emergency expenses, small cash loans or 24 hours finance, borrowers can avail a personal loan up to 1.5 lakh in 24 hours. Paperless documentation reduces the loan processing time and gives a speedy approval.
Even though Simply Cash falls in the category of short-term loans, an amount of 1.5 lakh taken as a loan gives considerable financial support in times of urgent cash requirement. Salaried and self-employed individuals with a minimum monthly income of Rs.15,000/- and an age limit up to 21 – 58 years can apply for a personal loan via Simply Cash.
Both short and long-term personal loans are multi-purpose loans 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.