Short-term loans
Short-term personal loans, as the name suggests, are loans that have to be repaid in a shorter time frame as compared to regular personal loans. Most short-term personal loans come with repayment tenures that are less than 12 months. Additionally, some lenders also provide loans for amounts as low as Rs.5,000 that can be repaid in EMIs.
• Features and benefits
The following are the features and benefits of short-term loans:
o Short-term personal loans are instant loans that are disbursed almost immediately after the application is approved.
o The loan amount that one is eligible to borrow depends on their credit score, monthly income, and any existing debts.
o The loan repayment tenure can be as short as 15 days and the maximum tenure is usually less than a year.
o Short-term personal loans can be availed by individuals who do not have a credit history or have bad credit.
o The application process is usually very simple and quick and requires minimal documentation.
Cashe short-term loans
There are a number of lenders that offer instant short term loans, one of which is Cashe. Cashe is an app-only, online lending platform that provides applicants with instant personal loans. The app uses the Social Loan Quotient (SLQ), a proprietary predictive algorithm, in order to create credit profiles for prospective customers. The SLQ is a dynamic, social behaviour-based credit rating system that evaluates a customer’s credit-risk via their social media footprint. This method is quite a contrast to the methods used by traditional lending agencies that still rely on credit scores and repayment history. The following are some of the features and benefits of Cashe:
Features and benefits
• Loan amount
The minimum loan amount that can be availed on the Cashe app is Rs.5,000 and the maximum amount is Rs.2 lakh. The loan amount and repayment schedule is chosen by the borrower on the app when applying for the loan.
• Loan tenure
The loan tenures on the Cashe app differ based on the amount borrowed. For an amount between Rs.5,000 and Rs.50,000, the loan tenure ranges between 15 days and 30 days. For loan amounts between Rs.19,000 and Rs.1 lakh, the longest repayment tenure that one can choose is 3 months. For loan amounts between Rs.25,000 and Rs.2 lakh, the maximum repayment tenure that one can choose is 6 months. However, Cashe also allows borrowers to make prepayments on their loan.
• Interest rate
The rate of interest charged varies based on the loan amount and the loan tenure chosen. All borrowers receive a 7-day grace period if they cross the scheduled repayment date. After the grace period, an additional interest rate is charged on the EMI. The table below illustrates the rate of interest charged on the lending app:
Loan
tenure
|
Interest rate
|
|
Flat rate
|
Additional interest rate
|
|
15 days
|
1.75%
|
4% +2.5%
|
30 days
|
3.25%
|
3%
|
90 days
|
2.75%
|
3%
|
180 days
|
2.50%
|
NA
|
1 year
|
2.50%
|
NA
|
• Processing and disbursal
Once Cashe receives the applicant's documents and verifies them, the loan amount is disbursed immediately.
• Processing fee
The processing fee charged varies based on the loan tenure chosen and the amount borrowed. The table below illustrates the processing fees for Cashe loan products:
Loan tenure
|
Loan amount
|
Processing fee
|
15 to 30 days
|
Rs.5,000 to
Rs.15,000
|
Rs.500
|
Rs.16,000 to
Rs.30,000
|
Rs.750
|
|
Rs.31,000 to
Rs.50,000
|
Rs.1,250
|
|
90 days
|
NA
|
2% of the loan
amount
|
180 days
|
Rs.1 lakh
|
Rs.1,250
|
Rs.1.01 lakh to
Rs.1.49 lakh
|
Rs.1,750
|
|
Rs.1.5 lakh to
Rs.2 lakh
|
Rs.2,250
|
|
1 year
|
NA
|
Rs.1,000 or 3%
of the loan amount (whichever is higher)
|
• Application process
The entire loan application through Cashe is carried out via the mobile app. In order to apply for a loan, you will have to download the Cashe app and complete your profile. You will also be required to submit all the documents requested including your bank statement, payslips and KYC documents. Once the documents are verified, the money is disbursed to your account after deductions towards the processing fee and the flat interest rate.
Cashe provides customers with the advantage of availing a personal loan despite not having a credit history or a credit score below 750. Additionally, once customers create a profile on the app, they have the benefit of availing another personal loan without having to carry out the application and documentation process all over again. Perhaps one of the biggest benefits of the Cashe app is that the loan amount is disbursed almost instantly and is extremely useful in cases of emergency.
