Cash loan vs. Personal loan

Often people ask, “Umm, why not a personal loan? Aren’t personal loan and cash loan same?”.


So, NO!! Personal loan and cash loans are NOT same!! There are many differences. To name some:.

  • Personal loans depend upon credit (CIBIL) score, but cash loans do not
  • Payback time of Personal loans can span up to 25 years, but cash loans need to be paid back within a few months.
  • The rate of interest on both the loans vary.
  • The lending firm, in both the cases, is completely different.

To be precise, personal loans are long term loans meant for large expenses, however, cash loans are short term, meant for meager expenses.


Perks of cash loans

Cash loans are quite attractive, given the purpose that they fulfill. To name some of the benefits:


  • You can get the loan amount credited to your account within 24 hours
  • Since these are short term loans, they neither affect your credit score nor do they depend on it.
  • The cash loans work better, with a stable source of income, since you’d need to pay it back within months.
  • Normally, the relatives and the offline (local) vendors play the role of the lending firm, and hence you’d either leave some of your valuable assets as the mortgage (in the case of local vendors), or you’ll face the embarrassment (in the case of relatives). With cash loans, you don’t need to pledge any of your assets.

The downsides

With ample fringe benefits, cash loans have a few downsides as well, like:


  • You can’t take a cash loan, for huge amounts (they are meant for emergencies only).
  • Since the amount is small, it is expected to be paid back within weeks or months.
  • The rate of interest for cash loans are quite higher than personal loans.
  • If you fail to pay back within the already defined time frame, you might face a heavy penalty.

Well, we sure have named these under ‘downsides’, but if you look at them, they’ll appear more of ‘terms and conditions’, that you’ll know before you get a cash loan.


That was almost everything that you need to know for applying for a cash loan. Before applying for a cash loan, make sure, you have checked everything from the below checklist:


  • The loan you’re applying for aren’t a huge amount (that can not be paid back within months).
  • You have compared an ample number of lenders and then reached to this particular one.
  • You have an active bank account.
  • You’ve read the terms and conditions very properly before paying any fee.

Top