What is the minimum credit score required when applying for a short-term loan?

Your CIBIL score should be 700 or above to apply for a personal loan.

Are short-term loans risky?

No, short-term loans are not inherently risky, especially when they come with competitive interest rates and flexible loan tenures. As long as borrowers follow the agreed repayment schedule, they can meet their financial needs without long-term financial strain.

Can I get a short-term personal loan of Rs. 50,000?

Yes, SMFG India Credit offers short-term personal loans starting from ₹50,000.

How to calculate short-term loan interest?

To calculate short-term loan interest, multiply the loan amount by the interest rate and the loan tenure. For simple interest, use the formula: Interest = Principal × Rate × Time. You can use a personal loan EMI calculator to see the impact of different interest rates on your EMIs (Equated Monthly Instalments). However, note that the final interest rate will be determined by the lender or NBFC (Non-Banking Financial Company).

Does a short-term loan affect your credit?

Yes, a short-term loan can affect your credit score. Timely repayments can help improve your score, while missed or delayed payments can negatively impact it.

What is short-term finance used for?

Short-term finance is typically used to cover immediate or temporary expenses. It can be utilised for managing emergency costs, clearing short-term liabilities, or funding short-duration projects.

Can I get a short-term loan for 3 months?

At SMFG India Credit, the minimum loan tenure is 12 months.

Which is better, a long-term or short-term loan?

The choice depends on your financial needs. Short-term loans are ideal for smaller, urgent expenses and offer quicker repayment. Long-term loans, on the other hand, are suited for larger financial goals and come with extended repayment tenures, making them better for big-ticket investments or projects.

What are the advantages of a short-term loan?

Short-term loans from well-known lenders of NBFCs provide quick access to funds and faster repayment schedules, reducing overall interest costs. They usually require minimal documentation and offer flexible usage, making them a convenient option for immediate financial requirements.

What is the difference between a short-term loan and a long-term loan?

A short-term loan is typically repaid within a year or two and is ideal for quick financial needs, offering fast approvals and smaller loan amounts. A long-term loan, on the other hand, has a repayment period extending up to 5 years and is suited for larger, long-term financial goals.

How can I get an immediate cash loan?

You can apply for a short-term personal loan online at SMFG India Credit. Before submitting your online application, ensure you meet the eligibility criteria and provide the necessary documents like identity proof, income proof, and bank statements. Upon final approval, the funds can be disbursed to your bank account shortly.

How can I repay my short-term loan?

You can repay your short-term loan through multiple digital channels, such as net banking, debit card payments, or auto-debit facilities.

Who can apply for a short-term personal loan?

Any resident of India who meets the eligibility criteria can apply for an instant short-term loan.

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What Are Short-Term Personal Loans?

Short-term personal loans are loans that can be repaid within 1-2 years.

At any point in life, we can face a dearth of funds to meet immediate financial emergencies or obligations that are unforeseen and unexpected.

When it comes to the informal business sector and small-scale companies that constitute much of the economy, the payment for the goods or services provided is usually irregular and erratic. However, in the case of inability to deal with working capital needs and cash flow fluctuations due to such sporadic payments can cause discrepancies in the functioning of the business or can lead to stagnation in growth and progress.

Even on the personal front, we often face circumstances where we are in dire need of funds on an urgent basis - such as wedding expenses, medical emergencies, school fees, and so on.

We at SMFG India Credit understand such needs and would like to partner with you and help meet your financial needs and objectives, and become a part of your life’s journey.

As short-term personal loans are unsecured loans, there is no requirement to post any collateral as security. These funds are quickly credited to your account after the loan approval.

However, the term "short term" is not attributed to the speed of loan disbursement but to the limited tenure for repayment.

Features and Benefits of Short-Term Personal Loans

Short-term loans in India come with a range of features and benefits that make them an ideal borrowing option for those needing quick financial support. These include:

Quick Loan Disbursement: Funds are promptly transferred to your account after final loan approval.
Flexible Loan Amounts: Borrow up to Rs. 30 lakhs*, depending on eligibility.
Shorter Loan Tenure: A shorter loan repayment period helps you close your loan sooner and may reduce total interest outflow.
Unsecured Loan: No need to pledge any assets or property as security.
Digital Loan Application Process: Apply for a short-term loan online from anywhere, anytime.
EMI Planning: Use our personal loan EMI calculator to estimate your monthly repayments and plan your finances more effectively.
Lower Interest Rate: Avail of attractive interest rates on online short-term personal loans, starting from just 13%* per annum.

Eligibility Criteria for a Short-Term Loan

Approval for an urgent short-term personal loan is based on several criteria, such as age, income level, and credit score. Applicants may check possible loan amounts through a personal loan eligibility calculator before applying.

Key personal loan eligibility requirements at SMFG India Credit are:

Factors	Salaried Employees	Self-Employed Individuals
Age	Must be between 21 and 65 years	Must be between 21 and 65 years
Nationality	Must be a resident Indian	Must be a resident Indian
Credit Score/CIBIL Score	Must be 705 or above	Must be 700 or above
Work/Business Experience	Must have at least 1 year of work experience, with the last 6 months under the current employer	Business must be at least 3 years old
Minimum Income	Monthly income must be at least Rs. 16,000	Annual turnover must cross the minimum threshold, varying based on the profession
EMI (Equated Monthly Instalment)	EMI should be a maximum of 60% - 70% of the monthly income	EMI should be a maximum of 65% of the monthly income

*Please note that this is only the basic eligibility criteria for a short-term personal loan. The final eligibility and loan approval will depend on several factors, including SMFG India Credit’s policy at the time of loan application.

Documentation Required for a Short-Term Loan

Before you apply for a short-term loan, collect the personal loan documents required to validate your identity, address and income. Salaried and self-employed applicants must submit the following:

Document	For Salaried Employees	For Self-Employed Individuals
PAN Card	PAN card, or Form 60, where applicable, for both applicant and co-applicant (if any)	PAN card, or Form 60, where applicable, for both applicant and co-applicant (if any)
Proof of Identity and Proof of Address (any one)	Passport Driving Licence Aadhaar Voter Identification issued by the Election Commission of India MNREGA Job Card signed by a State Government officer National Population Register letter showing name and address	Passport Driving Licence Aadhaar Voter Identification issued by the Election Commission of India MNREGA Job Card signed by a State Government officer National Population Register letter showing name and address
Signature Proof (any one)	Passport PAN	Passport PAN
Bank Statements	Bank account statements for the last 6 months	Bank account statements for the last 6 months
Income Documents	Salary slips for the last 3 months Income Tax Returns or Form 16	Balance sheet and profit and loss account, income computation for the last 2 years Income Tax Returns for the last 2 years IT Assessment or Clearance certificate Income Tax challans or TDS certificate (Form 16A) OR Form 26AS for income declared in ITR
Business Proof (any one)	NA	Licence Registration Certificate GST Number

Please Note:

Where a co-applicant is included in your short-term loan application, their PAN, KYC, and relevant documents must also be shared. The above listing is illustrative; extra documents may be requested depending on the specific loan product, your credit profile, and prevailing policies at the time of loan application.

Keep original ID and address proofs, together with other supporting documents, ready in case a face-to-face verification is scheduled. This may be waived if digital KYC is successfully completed.
If your present residence is different from the address mentioned on your primary proof, you may submit one of the recognised Deemed OVDs. Click here to review the approved options.
An Officially Valid Document (OVD) bearing your current address must be submitted within 3 months from the date on which your initial address proof is provided.

Interest Rates and Charges for a Short-Term Loan

Short-term loans from SMFG India Credit come with competitive personal loan interest rates. Factors such as your loan repayment period, credit health, and income stability determine the rate offered.

Fees & Charges	Amount Chargeable
Personal Loan Interest Rate	Starting at 13%* per annum
Processing Fee	Up to 3.75% of the total loan amount + GST
Late Payment Charges	2% per month (24% per annum) on overdue amount calculated on day to day basis payable from the relevant due date till date of actual payment
Cheque/ECS/NACH Dishonour Charges (per dishonour of cheque/ECS/NACH per presentation)	INR 500
Loan Cancellation Charges (loan cancelled before the first EMI)	INR 1000 + GST
Loan Tenure	Up to 60 months

How to Apply for a Short-Term Loan Online

Applying for a short-term personal loan online is quick and hassle-free. Follow these simple steps:

Authenticate Your Mobile Number: Enter your mobile number along with PAN, pincode, and employment type (salaried or self-employed). Confirm the number by entering the OTP.
Enter Essential Details: Provide information such as income level and your ongoing EMIs or debts.
View Your Short-Term Loan Offer: An offer suited to criteria such as your credit score, income, and existing liabilities will be displayed. Choose the one you prefer.
Finalise via KYC & Submission: Complete digital KYC and upload required documents, as per policy at the time of application, before submitting your application.

*Loans exceeding Rs 2.50 lakhs undergo additional processing. A representative will reach out for any further clarification.

Take the Next Step: Get a Short-Term Loan That Fits Your Needs!

A short-term personal loan in India can be a reliable solution when you need quick financial support for urgent personal or business expenses. Whether you are applying for a short-term personal loan for salaried needs or seeking a short-term personal loan for self-employed requirements, SMFG India Credit offers flexible loan amounts, competitive rates, and a smooth digital loan application process. Maintaining a strong CIBIL score for a personal loan, income stability, and repayment capacity will help improve your loan approval chances with favourable terms. Apply for a short-term loan online today and move one step closer to meeting your financial goals.

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

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Rate of interest

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Your Calculated EMI*

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FAQs

What is the loan amount that is given for short-term loans?

At SMFG India Credit, salaried individuals can get short-term loans up to INR 30 lakhs*, while the self-employed can get short-term loans of up to INR 10 lakhs*.

Is collateral required for availing of a short-term loan?

Short-term personal loans are unsecured loans; therefore, there is no requirement to post any collateral as security.

What is the tenure for a short-term loan?

In general, short-term loans have a tenure of 1-2 years.

What are the eligibility criteria to avail of a short-term loan?

The eligibility criteria are:

You must be a residing citizen of India.
You must be between the ages of 21 and not more than 65 years at the time of loan maturity.
Your minimum income as a salaried employee should be at least Rs. 16,000* per month.
You must have professional experience of at least 1 year and must have been at your current workplace for at least 6 months.
You must be in employment with a private limited company or a public sector undertaking.
For the self-employed, the minimum income is based on the yearly profit after taxes and the minimum annual turnover. It can vary as per the nature of your profession or domain of work.