Short Term Personal Loan

Last Updated : June 16, 2025, 6:18 p.m.

Meeting small financial needs like vacations, weddings, or purchasing a second-hand two-wheeler can often be challenging. Borrowing money from friends or relatives may seem like an option but can strain relationships in the long run. At the same time, opting for a large personal loan to cover minor expenses isn't always practical. That’s where a Short Term Personal Loan becomes the ideal solution. As the name suggests, this type of loan is borrowed for a tenure of less than one year. The loan amount is typically modest, and the repayment is swift, making it suitable for immediate financial needs. Below, you'll find a list of trusted apps in India that offer short-term loans to help you manage such expenses with ease.

You can also explore our curated guide on the Best Personal Loan Apps in India to find the most suitable option based on your needs and profile.

Short Term Personal Loan Applications

Here, you can go through the table containing short-term loan interest rates, loan amounts ,tenure, and some features and benefits with all the applications that give you such loans -

Different Types of Short-Term Personal Loans

Below mentioned are the types of short-term personal loans that could be beneficial to you. Make sure to go through them and their benefits before applying for them.

Bank Overdraft - Allows you to withdraw more than your account balance up to a set limit. Interest applies only to the amount overdrawn.
Benefits:

• Pay interest only on what you use
• Immediate access to funds
• Suitable for short-term cash needs

Trade Credit - An interest-free credit facility that businesses use to make urgent purchases, usually repayable within 30 days. Tenure extensions may be requested for better cash flow management.
Benefits:

• No interest cost
• Flexible repayment terms
• Helps maintain cash flow

Bridge Loans - Short-term loans used to bridge a financial gap until a larger loan is secured. Commonly used in property deals when funds from a long-term loan are delayed.
Benefits:

• Fast disbursal
• Temporary financial support
• Useful for real estate transactions

Personal Loans - Unsecured loans are ideal for personal needs like weddings, education, or emergencies. Offers higher loan amounts and repayment terms of up to 36 months.
Benefits:

• No collateral needed
• High loan limits
• Flexible repayment tenure

Demand Loans
Loans can be availed against savings instruments such as insurance policies or National Savings Certificates (NSCs). The eligible loan amount is determined based on the maturity value of the underlying asset.
Benefits:

• Quick funding using savings
• No need to liquidate investments
• Adjustable loan amounts

Short Term Personal Loan Eligibility Criteria

You will have to be eligible to take a short term personal loan. If you aren’t eligible, then you cannot borrow short-term loans. Therefore, you must go through the eligibility criteria that you will have to fulfill before you apply for short-term personal loans.

• Age - The Age of the borrower should be between 21 years to 80 years.
• Employment - Salaried and self-employed or borrowers working with an MNC, a public or private company.
• Nationality - Indian citizen with a stable residence (permanent or rented)
• Monthly Income - Minimum ₹15,000–₹25,000 (may vary by lender and city)
• CIBIL Score - Your minimum CIBIL score should be 600 and above.

Documents Required for Short Term Personal Loan

If you are using the Short Term Personal Loan Application to get a loan, then you should know that you will have to submit all the documents digitally. You will have to scan the documents first and then upload them to the app from which you are borrowing the loan.

When applying for a short-term personal loan online, keep the following documents handy for a smooth digital process:

• Identity Proof - Voter ID, Passport, Aadhaar Card, or Driving Licence
• Address Proof - Utility bill, Rent Agreement, or Aadhaar Card with current address
• Income Proof - Latest salary slips, Bank statements (last 3–6 months), ITR, or Form 16
• Employment Proof (for salaried applicants) - Offer letter, Appointment letter, or Employee ID card
• Business Proof (for self-employed applicants) - GST Certificate, Business registration, or Partnership deed
• PAN Card- Required by most lenders as a crucial document for processing the loan application.
• Credit Score (Soft Pull or CIBIL Check) – Though not a document you need to upload, maintaining a strong credit score is vital for loan approval.

How to Apply for Short Term Loans?

With the help of the lender’s application you can easily apply for the short term personal loans. You can see the process to apply :-

• Step 1: Search for the Instant Loan App and download the application.
• Step 2: Tap "Apply Now." - Click on the “Apply Now” button to begin your application process.
• Step 3: Fill in Your Details - Provide your birth date, PAN details, monthly earnings, KYC credentials, and current address information.
• Step 5: Upload Documents Submit the required documents to speed up the approval process.

Once your details are verified, the approved loan amount will be instantly credited to your bank account.

Why a Short Term Loan and not a Credit Card?

Many individuals consider credit cards as a solution for emergency financial needs. However, missing a payment can result in high interest charges. Moreover, if your monthly income is below ₹20,000, your credit limit may be too low to cover larger expenses. In such cases, a short-term personal loan proves to be a better option—it allows you to borrow a higher amount with flexible repayment terms. Additionally, unlike credit card cash withdrawals that come with extra fees, converting your short-term loan amount into cash doesn’t involve such charges.

Tips to Prepare Documents for a Short-Term Personal Loan

• Organize in Advance : Prepare a checklist and keep all necessary documents ready before applying for the loan.
• Check Validity : Make sure your ID and address proofs are current and not expired.
• Ensure Clarity : All documents should be clear, legible, and free from errors or overwriting.
• Get Expert Guidance : If unsure about any document, consult a loan officer or financial advisor for clarity.

Conclusion

Short-term personal loans are an effective solution for meeting urgent financial needs like medical expenses, education fees, travel, or emergency repairs. With quick approval, minimal documentation, and flexible repayment options, they provide fast access to funds without long-term debt burdens. Whether you're salaried or self-employed, choosing a reliable lender and understanding the loan terms can help you manage expenses wisely and maintain financial stability. You can also explore our curated guide on the Best Personal Loan Apps in India to find the most suitable option based on your needs and profile.