So finally, decided to move out of the rented apartment and invest in a home of your own? Unless you have loads of money saved, you might be looking for a home loan to fund this significant purchase. You certainly have plenty of lenders to choose from for housing financing. However, before applying for any Instant Loan Online, you must research the best and most affordable loan option.
It has become easier to rely on a personal loan online to cover your immediate needs as they are readily available online and offline. With minimal documentation, borrowers can access these loans quickly and easily. Some banks provide pre-approved personal loans for salaried individuals. Interest rates vary from each lender, based on your eligibility. Depending on your creditworthiness, you can obtain funds between 25K to 10L INR. Most new-age lenders offer their borrowers affordable repayment options and charge minimal or no foreclosure fees.
Apart from looking for lenders who offer competitive interest rates, it would help decide the Salary loan tenure. You have two choices: short-term and long-term loans depending on the loan term. Let’s understand the significant differences between the 2 comparing short-term and long-term loans.
Short term loans
Those looking to take out short-term loans like Loans For Business usually need quick cash to meet expenses over a short period. For example, your car needs repairing, and you cannot afford it, or an unexpected bill has arrived, and you need cash to cover it.
Short-term loans can carry higher interest rates than standard loans and other charges. As a result, you should only take them out if you can afford to pay back the loan on time.
Advantages of short term loans
- You can access cash quickly
- There are plenty of borrowing options
- They don’t tie you into repayments for several years
Long term loans
Long-term loans are what most people consider to be regular personal loans available from many places, including banks. As long as one has a decent credit history, a stable income, and can afford the repayments.
Long-term personal loans usually have terms of more than a year. Over several years, they get repaid often in regular monthly payments to the lender.
Advantages of long term loans
- You can borrow more than short-term loans
- The interest rates for a long-term loan will be lower than those for a short-term loan
- You can choose from many providers
- Long term personal loans are available to people with most types of credit profiles
There’s no best choice while deciding between a short or long-term loan; it would depend on your capability and need. For example, if you wish for cheaper installments and aren’t bothered by the total amount spent in interest, you can go with the long-term option. In contrast, short-term loans are more suitable if you want a speedy loan disbursal and aren’t concerned about high-interest rates.
Besides, it’s critical to remember that age also determines your loan eligibility. For example, if you’re in your 30s or 40s, lenders might not provide you with a 20 or 30-year loan tenure, as you will reach the retirement age within the tenure.