Personal loans have become the most sought-after credit option when you are in urgent need of cash. Minimum documentation, instant approval, quick disbursal are the main reasons that make personal loans a popular financial tool among all consumers. Depending upon the credit history, employment details, and other key factors, lenders decide the loan amount and interest rates. When you are looking for a personal loan, you might have come across the terms of short-term and long term personal loans. Short-term personal loans have a tenure of up to 12 months while long term personal loans have a tenure of more than 12 months, and they may go up to 6 years. How to decide which loan is best for you? Well, it completely depends on the EMI amount you are comfortable with. EMI is determined based on the loan tenure. The longer the tenure, the lower the EMI. If you wish to maintain a low monthly cash outflow, then long-term loans are the best option and if you need cash to meet an immediate cash need, then go for short-term personal loans that you can pay off faster. Once you decide which loan will fulfill your requirements, you can apply for it online. You need to fill in the application and submit the required documents to get the credit in your bank account.

 

Benefits of Long-Term Personal Loans

 

• Reduced interest rates. The longer the tenure, the flexible the interest will be.
• Flexible and reduced repayment tenure, the tenure ranges between 6 months to 5 years
• You can use long term loans for multiple reasons
• No paperwork and instant disbursal within minutes
• Improves credit score. Long-term personal loans involve paying EMI over a long period which shows the financial stability of the borrower.
• Long-term personal loans are perfect to meet long-term financial goals.

 

Benefits of Short-Term Personal Loans

 

• No collateral required
• Can be used for various purposes
• Minimum documentation and quick disbursement

 

Eligibility Criteria to Avail a Personal Loan Online?

 

Whether you are looking for a short term or long-term personal loan, you have to meet the below eligibility criteria to get a loan -

 

• You have to be a citizen or resident of India
• Age should be over 21 years
• A minimum salary/ monthly net income that is Rs. 18,000+
• Need to show valid ID proofs, age proof, residential proof, salary slips of last 3 months, and bank statements of last 3 months

 

Personal Loan Application Process

 

• After deciding on the lender, loan amount, interest rate, and repayment tenure; fill in the application form including mobile number and email id
• Fill in your personal details and employment history
• Submit the documents
• Wait for a few minutes to get your loan amount disbursed

 

While choosing a Personal Loan, it is extremely important to decide whether you want to go for short-term or long-term personal loans. Both of these loans have their advantages and disadvantages. Depending on your requirement and repayment capacity, make the final decision. If you want to choose longer tenure to maintain the monthly cash flow decently, then choose long-term personal loans. On a note, choose a loan that will meet your financial requirements and repayment capabilities.