The Best Way To Get A Small Personal Loan Online
What is a small personal loan?
A small personal loan is also called a short-term loan. A small personal loan is taken to cover short-term financial needs. It is a form of a loan with a maximum amount of 2 lacs. It has a quick refund time. This could last up to two years, but no longer. One can use this small personal loan to pay for anything that needs a lump payment. This includes pricey gadgets, medical expenses, travel, and other expenses.
Personal loans are simpler to qualify for. They are also simpler to apply for than home and auto loans. Personal loans are flexible. But they aren’t secure or safe. The terms commonly range from 12 to 60 months.
Individual EMI payments will be greater if a reduced timeframe is selected. EMI payments will be lower if a longer duration is selected.
You can apply for a small personal loan online. This is a reasonably simple procedure since it doesn’t require security. However, some organisations only make it available to paid employees. Small personal loans are always helpful in times of emergencies.
Features and Benefits
These are the list of features and benefits of a small personal loan:
- No fees for an early refund
- A minimum of paperwork
- Quick approval and fast payments
- Low-cost monthly EMIs
- Flexible refund terms available between 12 and 60 months
- Combining incomes to increase loan eligibility
- 100% transparency
- No Security or Collateral Necessary
Who can apply?
Any salaried employee may apply for a small personal loan. Anyone working in the public sector, private sector, and MNCs or linked businesses is eligible for this. The age needed for the application is 21 Years-60 Years. Depending on the company, the minimum monthly salary needed can range from Rs.10000 to 25000. The present employer requires a work history of at least six months.
Anyone who requires a short-term loan to suit their personal or professional needs can get this. Businessmen could use it to cover their needs for working capital. Paid professionals and independent contractors can qualify for small personal loans to support various needs. This includes the purchase of electronics and useful goods like laptops and cell phones.
Even though these are only a few instances of short-term loans, anyone who qualifies for a short-term personal loan can apply.
Eligibility criteria
You need to meet the following eligibility criteria to be applicable for a small personal loan:
- Indian Citizenship
- Age: 21 to 60 years old
- Minimum income needs a range of RS.10000 to Rs. 25000 (depending on the company you apply from)
- Salaried individuals working in private, government or public sector
What are the documents required for small personal loans?
The following documents are required for taking a small personal loan:
- Identification – Identity proof with (anyone)
- PAN Card
- Passport
- Driving License
- Voter identification card
- Aadhaar card
- Address proof (anyone)
- Agreement for registered Leave and Lease
- Passport, Driver’s License, Aadhaar Card
- Voter identification card
- Utility bills, such as the phone or electric bill, etc. (not more than 3 months old)
- Income statement
- Latest pay stubs for one month
- Three months’ worth of bank statements
- CO-APPLICANT- A co-applicant is required if income pooling is necessary to increase loan eligibility.
- Only the spouse may submit a joint application.
- The applicant’s documentation will also be needed at the time of the loan application.
- Passport size photos
How to apply for a small personal loan?
The following process can help apply for a small personal loan:
- Check the online website
- Fill in the necessary criteria required in the form:
- Name
- Email address
- Phone number
- Loan Amount
- State/ City
- Submit the form
- After submitting the form, the lender/ loan company will get in touch with you for further procedures. (The process varies accordingly)
- The lender starts a verification process as soon as the needs and documentation steps are finished. A Small Personal Loan is disbursed faster to your registered bank account after completion.
Key points to keep in mind
- Compared to private moneylenders, licenced lenders offer cheaper interest rates.
- Before deciding on the loan amount, lending centres consider your monthly income and ability to repay. As a result, there is a greater likelihood that your loan will be accepted.
- Your credit score is also raised when you take out a loan from a licenced lending platform. The interest rate on future loans might be negotiated if you have a high credit score.
- The terms and situations relating to the payment tenure, interest rate, and other factors are clear in a loan obtained from a registered lender.
- Read and double-check the terms and conditions before using any website.
Summary
A small personal loan is taken to cover short-term financial needs. We can apply for a small personal loan as long as we meet the eligibility criteria. Technology has made the whole process much simpler. Now all that’s required is to apply without any problems. It can be easily done by choosing a trusted website or lender.
Doing your research is very important. One should have valid documentation to prove their claims. A small personal loan has the minimum number of issues with 100% transparency. Terms and conditions should be properly checked before signing any document. It is a smooth process. Be smart and careful to avoid difficulties.
Takeaway
In the right situations, small personal loans can be helpful. For example, many people cannot pay cash for a particular purchase. For them taking a loan is helpful. With this, it’s critical to understand the terms of any personal loan you take out. And you must have a clear plan for paying back the loan by the terms of your deal with the lender.
Visit Piramal Finance to know more.