Finance

How Does a Small Personal Loan Work?

An unwanted expense is always a problem if you do not have the money to tackle it. Whether it is of a huge amount or just a small one, it always comes as a not so present surprise. What matters is how we tackle that emergency to make the most out of it. While some decide to exhaust their savings, others borrow from their near and dear ones. The smartest, however, decide to take the small personal loan, keeping both their savings and personal ego intact. 

What is a small personal loan?

Also known as instant cash loan, a small personal loan is an unprotected or unsecured loan that you can use for your personal financial needs. They serve as a convenient way to deal with any financial emergency without touching your savings.

Why opt for a small personal loan?

Though the sanctioned amount in case of small personal loan is low, it has various features which can be helpful.

  1. No collateral is required for getting the loan sanctioned.
  2. Only a few documents are required with the loan application form, during the complete process. The documents required are”
  • KYC documents, for example, driving license, Aadhaar card, and voter ID card
  • Last 3 months’ salary slips (for salaried) or income proof (for self-employed)
  • Last 6 months’ bank account statements of salary account (for salaried) or current account (for self-employed)
  1. The very easy and straightforward verification process, thus great for financial emergencies.
  2. The loan is disbursed in just 30 mins of document verification and loan approval.
  3. Flexible Repayment option is available.

Reasons for taking a small personal loan?

A personal loan does not mention any specific reason to apply for small personal loans. Some of the common reasons are:

  1. Wedding: To ensure that your wedding is a memorable day for you and your spouse, going a little extravagant is important. So one can use the loan amount for their wedding.
  2. Education: Whether it is higher studies for yourself or your kids, personal loan takes care of that at the market-driven interest rate and flexible repayment tenure.
  3. Exotic vacations: Vacations are the only option to get away from the mundane lifestyle. So make sure you are taking an exciting trip with your parents and friends and let your loan finance the entire vacation.
  4. Hobbies: It is important to have a hobby to stay focussed in life. These days if you like photography or music, the tools required are expensive. So instead of delaying your hobby, take a personal loan and enjoy your hobby and develop your skills in your area of interest.
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The eligibility criteria for a small personal loan

To get a small instant loan, the applicant must fulfil the following mentioned eligibility criteria.

  1. The applicant must be an Indian Citizen.
  2. The minimum age of the applicant should be 21 and the age of customer at the time of maturity must be below 65 years.
  3. The applicant must either be self-employed or have a certain kind of income.

The eligibility can also be different for various lenders, but these are the basic points. Also one can use the personal loan eligibility tool to know whether you qualify for the loan or not.

How to apply for a personal loan?

If you follow the above criteria and would like to give a new start to your life then you can apply for the loan by visiting the lender’s website and filling in the application form with the necessary details. If you qualify for the loan, you will get a call from the customer executive for loan terms.

Conclusion

A personal loan is a great tool to sort all your financial troubles. However, make sure to know all the loan details before you apply for the loan.

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