Small personal loans are the solution for individuals looking for quick funds to finance urgent needs. They can maintain their savings, avoid withdrawing their investments prematurely or liquidating them at a loss, or depending on others. Approach a financial institution and consider applying for a small personal loan at affordable interest rates. A report shows that small loans under Rs.1 Lakh form 50% of the personal loan segment.
Small personal loans online start from Rs. 50,000. These loans can be taken instantly by providing all the required documents to the lending institution.
What is a Small Personal Loan?
Small personal loans are instant cash funds. It is considered the best option to get the required funds to meet financial emergencies without getting overburdened. One can get the required funds to deal with a financial crisis without collateral. It is easy to repay the loan in small EMIs during the long tenure as per their repayment capability.
Features and Key Benefits of a Small Personal Loan
- Unsecured Finance
Generally, lenders prefer collateral against a loan as it guarantees that the borrower will repay the loan amount during the loan tenure. Thanks to small personal loans, individuals can get funds without pledging any asset. Lenders usually approve a personal loan against an online application with supporting documents only. Individuals can use a personal loan eligibility checker before making a loan application.
- Minimal Documentation for Online Processing
Offline loan processing is a cumbersome and lengthy task with hefty documentation. Digital lending has made the loan application process simple. Borrowers can complete the loan application process online following a 100% digital process that helps them to save time and effort. They can complete the KYC (Know Your Customer) formalities over a video call.
- Flexible Repayment Tenure
Financial institutions help borrowers by offering a flexible repayment tenure between 12-60 months. A flexible repayment tenure allows borrowers to repay the loan amount at their convenience as per their repayment capability. Generally, borrowers prefer a short-term tenure to save on interest costs.
- Restriction-free Use of Loan Amount
A personal loan can be used for varied purposes without restriction. Individuals need not hold on to important tasks till the next salary credit. Simply make an online application for a small personal loan. The loan amount can be as high as Rs. 25 lakhs.
Small instant personal loans have simpler eligibility criteria. The following are the common eligibility parameters to obtain a small personal loan:
- Applicants should be Indian citizens.
- The age limit is 21-60 years.
- Applicants should have a regular source of income.
- The applicant should have the required documents.
Set of Basic Documents Required for Small Personal Loans
- PAN (Permanent Account Number) card
- Proof of Identity, Age, and Residence – Aadhar, PAN, Passport, Voter ID, Driving License, etc.
- Income Proof – Bank statements/Salary Slips/ITR (Income Tax Returns) or Form 16 (for salaried persons)
Advantage of Small Personal Loans
Borrowers find it an excellent offering to fund various financial requirements that require a lump sum. Borrowers, like, students, professionals and businesspersons, can use personal loan eligibility checker and utilise these loans in the following ways:
- Small Loans for Home Renovation: Individuals often need to renovate or repair their homes or offices and can’t wait for a long period. Instead of using their savings, they prefer to apply for small personal loans to renovate their homes for necessary repairs and get a new look.
- Small Loans for Small Purchases: Individuals who just started earning or whose salary is insufficient to fund purchases like a smartphone, laptop, scooter, etc., prefer applying for small loans.
- Small Personal Loan used by Students: Small and instant personal loans can help students to bear their education expenses, which can be tuition fees, accommodation charges, etc. They can apply for a loan with a co-borrower.
- Small Personal Loan for Travel: Those looking to surprise their partner with a special holiday trip can use a small personal loan. These loans can help borrowers looking to fund their planned or unplanned travel needs without hassle.
Overall, people utilise small personal loans online to meet their various financial needs at affordable costs. An online EMI calculator can help determine the appropriate personal loan amount based on one’s repayment capability and cash flow.
It’s time to fulfil different financial goals with small personal loans.