There is no doubt in it that sometimes a very complicated situation comes in most people’s life. When they have an urgent requirement for some money, but they don’t have sufficient funds to complete their requirement. Hence such a critical situation can easily disturb their monthly budgets. Even it is small money, but at the time of urgency, it seems like massive cash to those people. For getting money for such urgent requirements of small money, is to get small personal loans is the best solution.
Even if you meet all the small personal loan eligibility criteria, then you can quickly get an instant approval for your small personal loan. After authorization or verification, the amount of loan directly disbursed into your given account immediately within 24 hours.
What are the small personal loans?
In simple words, Personal loans are one most popular types of unsecured loans. Personal loans are two types of small or short personal loans and long personal loans. Actually, personal loans are commonly taken for personal emergencies or personal uses, such as renovating your house, financing a vacation, and filling up for wedding expenses, etc.
Small personal loans are one of the types of personal loans that are most commonly taken by most of the peoples. It is also called as short-term loans. If anyone receives any small personal loan, then they can get up to ₹ two lacs with the instant approval of the loan, even they have to repay this amount within a short period. The short period deadlines for repayment of the loan may be become up to 1 or 2 years, but not more than two years. It is noteworthy here that such small personal loans taken to finance people’s short-term money requirements.
Who can take a small personal loan?
It does not matter that you are a businessman or employee or even a housewife. Anyone can take a small personal loan who wants to meet their personal or professional requirements.
Most of the businesses take such personal loans to meet working capital requirements. Working capital is one of the essential things for the well running of the business. In fact, an employee sometime has to take some short personal loans for their financing some individual needs. Such as buying a bike, other consumers’ appliances, and purchasing any electronics such as laptops or any smartphones, etc. Even a housewife or anyone he\she is can easily take a small personal loan if they are eligible for such personal loans.
The major features of small personal loans-:
Here are some key features of small-personal loans-:
1. These loans are also known as the name of short-term loans.
2. Such short personal loans offer you easy access to money at the time of urgent requirements.
3. The best feature of such loans is easy and quick approval of loans.
4. These loans are also providing money with very attractive and affordable interest rates.
5. It is another one of the best features of such types of loans that, in these loans, includes a 100% transparent process.
6. Such loans can also give you one of th best options that are the option of flexible repayment.
7. After approval of your loan, you can get the loan amount within 24 hours of approving the loans.
8. The period for repayment is a maximum of 2 years for such short term loans. So you can quickly get freedom from the burden of loan payments in a short time.
The eligibility criteria for ”Small personal loans”-:
Here are some key conditions that required in a person to become able to apply for such loans. Even these points are the eligibility criteria for taking such small or short personal loans.
1. The applicant has the nationality of the country.
2. The person who is applying for a loan must have a valid saving or current bank account.
3. It does not matter he is working as an employee or businessman. He\she must have a minimum monthly income of Rs.10000 also.
4. To be eligible for taking any type of small personal loans, the applicant must be at least 25 years old.
5. It is a very important requirement for being qualify for taking a loan; that applicant has a good credit score.
6. There are many serval other conditions for being eligible for taking such loans that can differ from one lender to another lender. It depends on their term and conditions policy.
The documents required for applying for any small personal loans?
Here is the list of all the documents that required for applying for an online or offline personal loan-:
1. One of the identity proofs of the applicant, such as Aadhaar card/pan card/voter card/ passport, etc.
2. Proof of age of the applicant it maybe includes verification of age from the Adhaar card/ Driving license/ Voter ID card/ passport or mark-sheet of high school.
3. The official or reliable bank statements of the applicant bank account for the last six months.
4. Proof of regular income such as income declaration or salary slips of the previous 3 to 6 months or previous year ITR of the applicant.
5. The recent passport-sized original photographs of the applicant.
The major differences in small personal loans from moneylenders vs. registered lending portals-:
At present, there are many short-personal loan providers available that are providing such loans. From banks, NBFCs to the private moneylenders. are providing such short personal loans. Here are the major differences in all small personal loans from moneylenders vs. registered lending portals-:
1. Interest rates
One of the significant differences in the interest rate offered by both personal loan lenders. The interest rates of the loan offered by a registered lender are quite lower as compared to interest rates offered by private moneylenders. If any person takes a loan from any private money lender, then they have to pay the high price of interest on repayment.
2. Checking of capability for repayment of the loans
Mostly all the registered lending institutions always check your monthly income statement and your capabilities before determining the loan amount for approval of the loan. Then according to your capability of repayment, they offer you a loan. Therefore you can easily repay such a loan as its provided according to your capabilities of repayments.
On the other hand, private money lenders can quickly approve your loan without even check your capabilities to pay such big loans. It may become the cause for you to end up in a debt trap.
3. Credit Score
If you are borrowing a personal loan from a registered money lending institution, then it always improves your credit score. And if you have a high or excellent credit score, then you can easily take a loan of a large amount of money. Even you can easily negotiate or bargaining on the rate of interest on future loans.
On the other hand, if you are taking a loan from a private money lender that it will not be included or considered in your credit history. Thus loan from a private money lender can not help you with the benefits of improvement in credit score.
4. Terms and conditions
If you take a loan from a private money lender, then there will be a lack of formal agreements. Even there may be terms and conditions that are very typical, unclear, illegal, and unlawful. The private money lender can force you to repay the loan before the given period for repayment. Maybe they can increase the time-to-time interest rate of loans.
On the other hand, if you are taking a loan from any registered money lending institution, then you don’t need to worry about terms and conditions. As the terms and conditions related to interest rates, repayments, etc. of loans; like these, all terms are very clear, legal, fixed, and transparent in registered money lending portals.
5. Instant approval of loans
If you are taking a loan from a registered money lending portals that are providing you online loan approval facility. Then your loan can easily and quickly approve within 1 hour, but if you are entirely eligible for taking a loan according to their terms and conditions.
On the other hand, if you re taking a loan from a private money lender, then it may take some time to approve your loan as its offline process. It maybe takes 24 hours for approval of your personal loan from a private money lender.
We have mentioned all the detailed information about small personal loans. Such as what is a small personal loan, who can take it, eligibility criteria for applying, required documents, differences in loan from a private and registered money lender, etc. Therefore as we already mentioned all the relevant and informative information about such short personal loans. Thus we hope that our blog will become very helpful for you and will clear all your doubts about small personal loans. Even our blog will also helpful for you to choose one of the best moneylenders that suitable for you out of private or registered money lenders.