In India, personal loans are becoming very popular. In fact, according to a report by the Reserve Bank of India (RBI), RBI’s sectoral data on bank credit and personal loans grew by 14.4%, reaching nearly Rs 55.3 lakh crore.
Many people use short-term personal loans for urgent expenses like medical bills or home repairs. Managing these loans and repayments can be difficult, but financial aggregator apps can help.
What is a Short Term Personal Loan?
Suppose you borrow ₹700,000 for 9 months with an interest rate of 15% per year. Your monthly repayment (EMI) will be around ₹85,500, and by the end of 9 months, you will have paid ₹769,500 in total.
A short-term personal loan is borrowed for less than a year. Since it’s repaid quickly, it often has higher interest.
Benefits of Using Financial Aggregator AppsKeep All Your Finances in One Place
Imagine you have a ₹500,000 short-term personal loan, ₹50,000 in savings, and ₹20,000 in credit card debt. A financial app shows all this together, helping you see you owe ₹500,000, have ₹50,000 in savings, and need to plan accordingly.
A financial app gathers your loans, savings, and debts in one place, helping you easily track and manage your finances.
Helps You Stick to Your Budget
These apps often come with tools to track your spending.
If you borrow a ₹ 300000 loan for 3 months, the app helps you plan your budget by reminding you to save for repayments. It also alerts you if you overspend on things like entertainment or shopping.
Reminders for Loan Payments
A financial app sends reminders to help you avoid missing loan payments, preventing penalties and extra interest.
For example, if your EMI (Equated Monthly Instalment) of ₹40,000 is due on the 5th of each month, the app will send you reminders before the due date.
Fact: According to the Reserve Bank of India (RBI), as of 2023, the total outstanding personal loans in India amounted to ₹38.71 lakh crore (as of August 2023).
How to Use the App for Loan Management
Enter Your Loan Details
Start by entering your short-term personal loan details like the loan amount, interest rate, duration, and EMI.
For example, a ₹ 600000 loan at 12% for 12 months will have an EMI of ₹55000.
Use the EMI Calculator
Many apps have an EMI calculator. If you’re considering borrowing a different amount, you can use the calculator to see how your EMI changes.
For example, if you increase your loan amount to ₹60,000, your EMI might increase to ₹10,650. This helps you plan better before taking a loan.
Track Your Payments
Every time you make a payment, update the app.
For example, after paying ₹7,100 in the first month, the app shows a remaining loan balance of ₹32,900, helping you track how much you’ve repaid and how much is still due.
Monitor Your Spending
Use the app to track your expenses. It highlights where you spend the most, like eating out. Cutting back on these costs can help you save more for repaying your short-term personal loan.
Challenges to Keep in Mind
Even though these apps are very helpful, there are some things to be careful about:
- Data Security: Choose an app with encryption to protect your personal information.
- Accuracy of Information: The app may show incorrect details if your provider doesn’t update information; always double-check payments.
- Don’t Rely Only on the App: The app is a helpful tool, but always monitor your finances and follow a solid plan.
Table: Loan Details Example
| Loan Amount | Interest Rate | Loan Duration | Monthly EMI | Total Repayment |
| ₹300,000 | 15% | 6 months | ₹60,000 | ₹360,000 |
| ₹600,000 | 12% | 12 months | ₹55,000 | ₹660,000 |
| ₹900,000 | 14% | 5 months | ₹180,000 | ₹900,000 |
Conclusion
Financial aggregator apps make managing your short-term personal loan easy. They track payments, help with budgeting, and send reminders. For instance, borrowing ₹900000 at 14% interest for 5 months ensures timely EMI tracking and payments.
For example, Ravi, a professional in Delhi, borrowed ₹300000 for medical expenses and used a financial app to manage it. The app calculated his ₹60000 monthly EMI for 6 months, helping him stay on budget and make timely payments without penalties.
Using a financial app helps track your short-term personal loan, maintain financial health, and manage loans without stress.