Money required? Here are quick options for short-term loans


Banks and financial services companies offer a personal loan for a minimum amount of Rs 30,000. | Photo credit: BCCL

New Delhi: There may be an urgent need for money for various needs. For medical emergencies, paying a credit card bill, servicing an EMI, weddings, and vacations. Banks and financial services companies offer various types of facilities through which emerging short-term needs can be met. For short-term needs, relatively less paperwork is required to obtain a loan compared to conventional loans, but these short-term loans carry high interest rates.

To meet his short-term cash needs, a client can take out personal loans, payday loans, loans against the Public Provident Fund (PPF), demand loans, loans against credit cards, loans against shares, loans against term deposits, etc.

Banks and financial services companies offer a personal loan for a minimum amount of Rs 30,000. Payday loans are largely similar to personal loans. To get a payday loan, a client is required to submit a pay slip, Personal Account Number (PAN) and few other details and the loan is sanctioned within a day, subject to fulfilling the eligibility.

Loans against PPF, credit cards, stocks, fixed deposits can be availed at lower interest rates than personal loans and payday loans. A client can borrow up to 90% of the PPF amount after 3 years, while equity and ELSS loans are granted up to 50% of the total amount depending on the market value of the investment.

In case of fixed deposits, loans of up to 90% of the value of the deposit can be used and interestingly some banks including State Bank of India charge interest rates on the daily declining balance.

Credit card holders can also take out loans on their respective cards, subject to credit card limit and spending habits. For credit card loans, banks consider credit score, bill repayment patterns, available credit card limit, credit dependency as some of the parameters to decide the loan amount that should be given to a customer.

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