CreditMantri Finserve Private Limited
4th Floor Sudhama, 36 Vijayaraghava Road,T Nagar, Chennai, Tamil Nadu 600017
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
A 12-month loan is a short-term unsecured loan which can be paid back in a period of 1 year. Already a popular concept in the Western countries, Indians are also warming up to 12-month loans. Also known as payday loans, this is a kind of personal loan which is disbursed against your paycheck. The amount of EMI on these loans also gets directly debited from your salary account. If you have immediate cash need for travel, education fees or medical emergencies, you can opt for a 12-month loan. There is no collateral required for these loans and they are disbursed in a day.
About 12-Month Loans
These are extremely short-term loans, hence the interest rate for these loans is very high, sometimes as high a 5%-10% per month which means more than 100% p.a. However, if you are financially disciplined and repay the loans on time, the payday loans are a great option for you to address your immediate cash requirements. The interest rates for 12-month loans may vary across different lenders, hence you need to do a proper check and scrutiny before applying for a loan from any of the lenders. There may also be a nominal amount of processing fee or other charges that may be charged by a few lenders.
You need to apply for a 12-month loan to your lender either by visiting their office or online. Usually, the loan is disbursed within a day. You can opt for an easy way of repayment such as direct debit from their salary account, ECS or through post-dated cheques.
Usually, institutional lenders in India are not comfortable with 12-month loans. The ones who disburse these loans are private lenders. Though it is a very prominent concept in countries like the US and the UK, big Indian lenders are little wary of these loans due to the risk quotient involved. Since these loans carry a high rate of interest, it is recommended that you opt for these loans when it is absolutely necessary and there is no other option left to explore. If you fail to repay the loan on time, you may have to pay double the amount of loan because of the high-interest component.
For availing personal loans, it is mandatory to have a good credit history. This is one of the primary criteria for loan approval. Your credit score is assessed by the loan officer and he decides whether to sanction the loan or not. If your credit score is below the permissible limit, it indicates you may not have managed your debt well in the past and there are chances you may default of this loan as well.
On the other hand, the 12-month loan, is an instant personal loan which doesn’t look at your credit worthiness because the amount is repaid from your current salary. In these cases, even if you have a bad credit score, you can get the loan.
Personal loans have a rate of interest in the range of 12% to 25%, while the 12-month loan has interest rates as high as 100% p.a. Since the payday loan is an unsecured short-term loan, it has a high rate of interest. Another reason for high-interest rates is the absence of creditworthiness as a criterion. Hence, we recommend taking a limited amount as a 12-month loan else it will be very difficult to repay the huge accumulated debt.
The personal loan is sanctioned for a period ranging from 12 months to 60 months. This makes it easier for the borrowers to repay the money as the tenure is spread out. The 12-month loan, as the name suggests, is a loan which has to be repaid over a period of one year.
1. What is a 12-month Loan?
A 12-month loan is an unsecured personal loan which needs to be repaid within a span of 12 months. The quantum of this loan is small and the rate of interest is higher than that of regular personal loans. You can avail this loan when you have urgent cash requirement. The application and approval of these loans are very quick.
2. Can I avail a 12-month loan if I have a bad credit history?
As these loans are short-term and the repayment hugely depends on your current monthly salary. Hence, creditworthiness is not a criterion when approving this loan and you can apply for the loan even if you have a bad credit score.
3. Who offers 12-month loans in India?
12-month loans in India are offered by private lenders and not institutional banks. You need to look at the terms and conditions of the loan when you zero in on any particular lender.
4. Who can apply for a 12-month loan?
Every person who is in the age group of 21-62 years is eligible to apply for the 12-month loan be it a salaried individual or a self-employed professional. You must also have a work experience of a minimum of two years to be eligible as a borrower.
5. When should I apply for a 12-month loan?
You can apply for a 12-month loan if you have requirement of instant cash. However, due to the high rate of interest, it is advisable to use this option only as a last resort. You also need to ensure that you take a limited sum of money as a Payday loan.
Get low interest loans & Lifetime FREE credit cards
Get customized Credit Health Report
Improve your creditworthiness
3 Month Loans
6 Month Loans
Animal Husbandry Loan
Business Instalment Loan
Cash Credit Loan
Cold Storage Loan
Collateral Free Loans
Dairy Farm Business Loan
Ecommerce Loans In India
Faq Loan Against Property
Government Loans For Small Scale Businesses
Home Improvement Loans
Instant Short Term Loans
Kitchen Modernization Loans
Loan Against Credit Card
Loan Against Fixed Deposit
Loan Against Insurance Policy
Loan Against LIC Policy
Loan Against Rent Receivables
Loan Against Securities
Loan Against Shares
Loan For Agriculture
Loan For Beauty Parlours
Loan For Businesswomen
Loan For Chartered Accounts
Loan For Construction
Loan For Day Care Centre
Loan For Land Purchase
Loan For Marraige
Loans For Advocates
Loans For Army Personnel
Loans For Defence Personnel And Widows
Loans For Disabled
Loans For Graduates
Loans For Minorities
Loans For People On Benefits
Loans For Restaurants
Loans For Scheduled Caste
Loans For Schools
Loans For Startup Business
Loans For Taxi Drivers
Loans For Unemployed People In India
Loans For Warehouse
Long Term Loans
Medical Equipment Loan
Micro Small And Medium Enterprises Loan
Personal Loan For Low Credit Score
Personal Loans For Self Employed
Reverse Mortgage Loans
Same Day Loans
Small And Medium Sized Enterprises Loans
Small Business Loan For Women
Small Business Loans
Top Up Loans
Working Capital Loan
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.