Choose the Best Short Term Loan without a Doubt

Financial debt and insecurities are the cause of distress and anxiety in the majority of individuals. An individual can never know of the sudden impending need for money in their lifetime. There are numerous problems in everyday life that mainly affect our finances and disorganize our budget. It can be an emergency, more than estimated or unforeseen expenditure, payment of lined up bills, unpaid taxes, repayment of a debt, and many other similar reasons. But in most cases, a small or a minimum amount of cash is needed to fix such monetary issues. In order to avail cash, a middle-class individual can only think of a suitable-short term loan or an emergency loan that can recover the financial instability. However, when choosing a loan what matters the most is the amount of cash needed, eligibility criteria, and an individual’s ability to pay within the timeframe.

The most popular types of short term loans that are very much in demand in recent times are - Personal Loans and Small Cash Loans.

An Individual as per his needs can pick between these two types of loans after having a look at their advantages and drawbacks.

What are Small Cash Loans?

Small cash loans or instant cash loans is an unsecured loan which means that the borrower is not required to submit any form of collateral security to the bank or lender. For a small cash loan, your credit score should be 600 or more.

Pros :

Minimum Amount Guarantee - If the borrower is willing to borrow a small amount of cash then small cash loan utility services allow an individual an amount ranging between Rs.10,000 to Rs.2,00,000. This loan facility helps meet the sudden expenses like medical bills, repair of vehicles, home renovation, unplanned outstation visits, etc.

Online Approval – The presence of digital platforms has made it a lot easier for customers to avail instant loans online through net banking. Earlier, it almost took 8-10 working days for a loan to get sanctioned but in the modern era, the internet has made it a lot better. As of today, there are many instant cash loan direct lender websites and apps that offer quick and uninterrupted services.

Low-Interest Rate – The interest rate is comparatively low as compared to secured loans or personal loans. It is usually 0.1% per day.

Tenure – It depends on the borrower to select a particular time period or date as per his/her convenience to pay. He/She can even avail of EMI services as a form of repayment.

Cons:

Lengthy Paperwork – It is a suggestion for every borrower to not go for an instant cash loan at a time of emergency because it is difficult to avail cash within 24 hours as it involves a certain amount of paperwork and conditions.

What are Personal Loans?

A personal loan is similar to a small cash loan. It is taken when there is an urgent personal need. Like a small cash loan, it is also an unsecured loan. For a Personal loan, your credit score should be 750 or more.

Pros

Fixed amount - If the minimum requirement of cash by an individual is rupees one Lac then he should go for a personal loan as it allows the individual to borrow funds between the range of 1 Lac to 25 Lac.

Minimum documentation - It is advisable for an individual to take a personal loan if he wishes to have a minimum documentation process. The services rendered at times of personal loan sanctions are usually hustle-free and quick.

Instant Approval – The Approval process does not take a lot of time. It is estimated that the loan can be approved in around 30 minutes.

Tenure – The time allotted for repayment is more than small cash loans. It can be several months or a year depending upon the amount and interest rates.

Cons: