Short term loan is a type of loan that is borrowed for a short period of time, usually less than a year. In India, short term loans are often used by individuals and businesses to cover unexpected expenses or cash flow gaps. However, it is majorly opted by businesses for temporary finance business requirements. With Airtel Personal Loan, you can apply for a short term loan in a few seconds and get it in a few minutes after approval. The process is completely online and hassle-free via the Airtel Thanks app.

The loan amount for short term loan can vary depending on the lender and the borrower’s creditworthiness. Normally, short term loans are offered for smaller loan amounts compared to long-term loans. For individuals, short term loans in India may range from a few thousand rupees to a few lakhs depending on the borrower’s income, credit score, and purpose of the loan. However, for businesses, short term loans in India may range from a few lakhs to several crores, depending on the size and type of business.

No, short term loans are unsecured loans, thus, they don’t require any collateral. However, in some exceptional cases, the lender may consider this option.

The tenure for a short term loan can vary depending on the lender and the money borrowed. However, as the name suggests, short term loans are provided for a shorter period of time, ranging from a few months up to 18 months.

There are several pros of short term loans, let us count some:

Quick approval and disbursal: Short term loans are typically approved faster sometimes within a few hours. This can be helpful in case of emergency expenses or unexpected cash flow issues.
No collateral required: The majority of short term loans do not require any collateral, which makes it easy to get for most individuals and businesses.
Improve credit score: Timely repayment of short term loans can help improve the borrower’s credit score.
Flexible repayment options: Short term loans may offer more flexible repayment options compared to other types of loans, which allows borrowers to repay the loan in smaller instalments or in lump sum amounts as per their financial situation.

The penalty condition can differ from lender to lender depending on several factors. However, many banks charge early repayment penalties of up to 2-3% of the principal amount outstanding and the penalty for late payment is usually between 1% and 2% of the EMI.