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How to Apply for a Personal Loan for 3 Months: A Step-by-Step Guide
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Are you in need of urgent funds? If you are looking for an instant, short-term option, a personal loan for three months is a great option.
A personal loan for 3 months can be applied for funding emergency financial requirements, like medical bills, covering unexpected expenses, or managing cash flow gaps. In contrast to long-term loans, these options for 3 months are flexible in terms of repayments. With the help of digital lending providers, like Stashfin, applying for a personal loan for three months is relatively easier.
You should check the eligibility criteria beforehand and provide relevant documents to simplify the application process.
What is a 3-Month Personal Loan?
A personal loan for three months is a short-term loan. In contrast to traditional long-term repayment tenures, these loans for three months can be repaid within 90 days.
A personal loan for 3 months is typically applied for meeting short-term financial needs, like urgent renovations, medical bills, or filling instant cash flow gaps.
These types of short-term loans are preferred when you need funds without the high cost of borrowing. A personal loan taken for less than 3 months features a short period when it comes to repaying the loan amount. When a borrower applies for a 3-month personal loan, the individual has ample time to repay the loan amount without being burdened by the cost of borrowing.
Can You Apply for a Personal Loan with a Low Income?
Reliable lenders allow you to apply for a short-term loan with a low salary.
The loan approval process might depend on several factors, including existing debts, repayment history, and your credit score. Lenders typically look into your ability to repay the loan amount based on your income history. Therefore, for low-income applicants, there can be strict regulations.
If you wish to improve your chances of loan approval with a low income, you can choose alternatives like digital lenders, NBFCs, or microfinance institutions. Such providers usually feature a flexible income requirement. Moreover, you can also apply for a smaller loan amount with a long-term repayment tenure to ensure that you are able to manage the EMIs effectively.
3-Month Personal Loan Application Process
When you wish to apply for a 3-month personal loan, here are some easy steps to follow:
1. Step 1: Apply Online: Most digital lenders, banks, or NBFCs offer the convenience of applying for a 3-month personal loan online. For instance, using Stashfin, you can apply for a personal loan using its mobile app right from the comfort of your home. The online application process delivers a hassle-free mechanism to ensure seamless loan procurement.
2. Step 2: Ensure Proper Documentation: Typically, for a personal loan for 3 months, you might require less documentation. Some important documents to consider might be bank statements, income verification documents, and identification proof.
3. Step 3: Consider the Duration of Loan Approval: Usually, the approval term of a 3-month personal loan is faster when compared with other traditional loans. Loan approval might require basic information related to financial and personal details. When you apply for a short-term loan from reliable lenders like Stashfin, you can experience a quick approval process.
4. Step 4: Expect Funding: Finally, the loan amount is disbursed to the borrower’s account in a span of 24-48 hours upon short-term loan approval.
Which Documents are Needed for a 3-Month Personal Loan?
Typically, instant personal loans come with pre-approved offers. Therefore, the exact documentation for a 3-month personal loan might vary depending on your credit profile. Usually, it is recommended to keep the following documents handy while applying for an instant personal loan for 3 months:
- Employee ID card
- PAN Card
- KYC documents: Passport/Aadhar/NREGA job card/Letter of National Population Register/driver’s license
- Utility bills for piped gas and electricity
- Bank account statements for the previous 3 months
- Salary slips for the last 3 months
How to Increase Your Chances of Loan Approval
To improve your chances of loan approval for a short-term personal loan, here are some tips:
1. Reveal Stable Income: Lenders typically need assurance that you will be able to repay the loan amount within a span of 3 months. Therefore, you need to showcase a stable source of income through salary slips, bank statements, or any other income proof.
2. Ensure a Good Credit Score: When you maintain a credit score of above 650, it improves your chances of easy loan approval.
3. Minimize Existing Debts: When you boast a lower DTI or debt-to-income ratio, it depicts a better repayment capacity.
4. Choose the Right Lender: Digital lenders offering access to mobile apps, like Stashfin, provide more flexibility when it comes to approving a 3-month personal loan.
Common Mistakes to Avoid While Applying for a Personal Loan
1. Not Paying Attention to Your Credit Score: If you have a poor credit score, less than 650, it might minimize your chances of loan approval. Therefore, check for ways to improve your credit score.
2. Ignoring Loan Terms: Always pay attention to specific loan terms & conditions. Some lenders might impose hidden charges or processing fees during loan approvals.
3. Not Choosing the Right Loan Amount: When you end up borrowing more than what you need, it will only increase your EMI burden. You might be ultimately left with too little to cover the overall loan expenses.
What If Your Loan Application Gets Rejected?
A rejected loan application does not imply that you are left with no option. Here are some tips to help you out:
- Consider alternatives like NBFCs, a smaller loan amount, or digital lenders.
- Understand the reason for rejection.
- Work toward improving your credit history.
- Apply with a co-applicant.
Conclusion
You can apply for a 3-month personal loan to manage your short-term financial needs. Still, you should be careful during the application process. In the end, it is always recommended to choose the right lender, like Stashfin, to help you with flexible loan terms and ease of repayment.
Frequently Asked Question
Can I Get a 3-month Loan Without a Credit History?
Yes. You might get a personal loan for 3 months without a proper credit history. However, your options might be limited. There are some digital lenders that offer personal loans to individuals without a proper credit history.
What’s the Fastest Way to Get a Personal Loan Approved?
One of the fastest ways to get a personal loan approved is to choose a reliable digital lender or NBFC offering instant loan approvals. For instance, Stashfin offers instant access to personal loans once you fulfill the eligibility criteria.
Do Short-Term Loans Have Higher Interest Rates?
Yes. Short-term personal loans typically depict high interest rates when compared with long-term loans. Lenders charge a high interest rate because these loans are repaid quickly and therefore, offer less time to earn interest.
Is It Better to Apply Online or Visit a Bank Branch?
It is faster and easier to apply for a personal loan online through reliable lenders, including Stashfin. Digital lenders offering quick loan processing and approvals.
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