Short Term Finance in India
During times of cash shortage, payday loans can come to your rescue by virtue of their easy access and availability with no stringent and tedious documentation and therefore, ease your financial burden. For people who are in urgent need of cash in a short span of time such as six months, payday loans are the best way out. Widely popular in the United States and the United Kingdom, payday loans are aimed at catering to short-term cash requirements of consumers. Consumers need to be aware of how much the loans will cost them. After analyzing the costs, consumers will be able to decide if they can afford payday loans.
Eligibility criteria
Payday loans vary widely between different countries and, even between different states in the USA. Any permanent resident of the United States with a salaried income is eligible for payday loans which meet your emergency cash requirements. Consumers should have a permanent bank account in addition to six months of work experience. Consumers need to have a steady monthly income.
Features of short term finance
Short-term finance is defined as banks offering unsecured loans on a short-term basis which has to be repaid at the consumer’s payday. US, UK, and Canada among other countries provide instant payday loans in that consumers can receive cash in their account in under thirty minutes following their loan application. With the help of payday loans, consumers can apply for loans for short duration. The loan is offered to the consumer till his payday, i.e, consumers are expected to pay loans from their monthly remunerations. Payday loans are usually offered for financial requirements that can be repaid from customers’ monthly salary.
Short term finance in India
Payday loans are not provided in India. However, informal lending vis-a-vis private money lenders or non-regulated financial lenders does offer cash at high rates of interest on a short-term basis. Millions of Indians continue to turn to private money lenders to meet their cash requirements, one of the reasons why India is considered under-banked compared to several developing and developed nations of the world.
