Six things to know About Short Term Loans or Short Term Fee Financing

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Did you know that applying for a short term fee loan online is very easy, you need to know a few things first.

Applying for a short term loan happens in your fingertips today. If you are a parent or student reading this then you know how applying online works.

Each year we have millions of kids joining college in India. According to the University Grants Commission  there are 30 million students in their undergraduate years. Every parent or student needs to take a short term loan, a yearly loan to pay for accommodation, course textbooks, fees including tuition.

But, there are a few things you must know before you apply for a short term fee financing.

Know your Credit history: when you apply for short term fee financing you must go through the process of credit score. We do look at the credit score and if it is good you can proceed to the next steps which is to apply for a loan. A good credit score is anything over 750-775. If you have a score above 800 then your credit is very good. But we do provide loans to folks whose credit score is 600 or 650 too depending on their income statements.

School or college or course certificate: one thing we do is verify our customers. We require a copy of the certificates of the past just to ensure that you are keen on the loan. Availability of recognized certificates is a doorway for you to apply for a short term fee loan.

Minimum salary/income criteria - We need this information so that we understand that you can service the loan. Your income statements can make good your ability to pay the short term fee loan. Please do have Bank statement where your income gets credited ready when you start applying for a loan online. We also need the copy of your PAN and Aadhaar.

Take the right loans: once you pass through the eligibility checks you are made an offer and a bouquet of loans is provided as a choice. Please choose a loan that is beneficial to you in terms of lower interest payments and zero pre-closure charges. All fee loans in the end cannot be draconian on an individual, they have to be friendly in terms of repayment terms. Also choose a loan where the bank's customer service guides you through the process of closure and can in many cases refinance the loan as well. Also choose loans that have shorter loan tenures. Choosing interest rates varies, internal rate of return can go high as 30 percent per year too.

Also take a loan that has flexi repayment and that a one year loan can be extended to 24 to 36 months. The loan processing fee can be 2 to 4 percent so choose on the basis of our customer support team's guidance if your confused over how the processing fee works.

Collateral free, 3 day disbursal and paperless: you must know that most of the short term loans are unsecured, up to Rs 7 lakhs when it comes to education. There is no collateral asked for the loan and the entire process is paperless. So before we provide the loan we ensure various checks so that you are good for credit and obviously we take the risk on your ability to repay the loan. Once you are selected the fee loan is made available in your account in less than three days.

Make sure you repay your loan: Timing is important for a short term fee loan because you start repaying the loan right after the first month of borrowing. Either your parents will repay it or you have a part time job that can help you repay it immediately. Either way please ensure that you use the education to make good on your repayment. These are the six things that you have to keep in mind while you apply for an online short term loan. Instant education loans online are easy on Creditap. Just download our app and find out. Hope we have your short term education loan covered.