What Is Small Personal Loan And What Are The Requirements For It?
The little pleasures of daily life are the ones that make us the happiest. Whether it’s buying the latest electronics, taking that long-awaited vacation, paying for your wedding, renovating your home, etc.
Are you looking for a loan that covers all such immediate financial needs? Do not burden your savings or rely on others, consider taking a small personal loan. Read on to learn about what a small personal loan is and who qualifies for it.
What is a small personal loan?
Small personal loans are often known as “short-term loans.” A small personal loan is an unsecured loan that meets urgent needs. You can use a small personal loan for a variety of things. It is easy to apply online because of the simple application process, hassle-free personal loan requirements, and quick approvals. These loans come with quite benevolent terms and conditions for borrowers.
Small Personal Loans Are For Whom?
Both salaried workers and self-employed people can apply for a small personal loan. Additionally, first-time borrowers can avail of them too. You may use the money to cover both your personal and professional financial needs. Even business owners and entrepreneurs can get a small personal loan. They can use it to cover their needs for operating capital.
Features of small personal loans
Key characteristics of small personal loans include the following:
- Quick access to money.
- Affordable interest rates.
- Quick approval.
- Flexible choices for repayment.
- Complete transparency in the borrowing process.
- Paperless approval.
- Quick disbursals.
- No collateral.
Use of a Small Personal Loan
The use of a small personal loan includes
- Paying for your essential needs.
- Obtaining the necessary cash flow for the firm.
- Covering costs associated with medical emergencies.
- Travelling.
- Paying for funeral costs.
- The cost of moving expenditures.
- Buying a bike or scooter.
- Purchasing a gift for family members.
- Completing a training course.
- Remodelling your property.
- Paying for wedding costs.
- Credit card debt repayment.
Small Personal Loan: Duration, Minimum, and Maximum Amount.
A small personal loan’s borrowing amount varies from lender to lender. On average, the borrowing amount of a small personal loan varies between Rs. 10,000 and Rs. 2 lakh.
Each lender has a different loan repayment term. Most give a term of three months to two years. Few lenders now provide small personal loans with 15-day repayment terms. Piramal Finance offers personal loans up to 10 lakh with easy repayment tenure starting at 1 year and extending up to 5 years.
Thanks to the fintech industry’s rapid rise, customers may now get instant loans at fair terms. They no longer have to bear the high-interest rates imposed by private moneylenders.
Small personal loans from Moneylenders vs. Registered lenders.
The key distinctions between the two are
- Interest rates: When lending money to customers, private moneylenders charge a high-interest rate. However, registered lenders provide lower rates of interest due to a huge customer base and fair market conditions.
- Loan amount: A registered lender will do your tight background checks. The checks include your credit history, income, and ability to repay. You will only get the loan if you pass all the checks. Local moneylenders do not perform tight eligibility checks. It makes it easy for you to get caught in a debt cycle.
- Credit score: A small personal loan from a local moneylender is a private transaction. That’s why it has no impact on your credit history. If you get a small personal loan from a registered lender, this will affect your credit history. Your credit score will rise if you make on-time payments and avoid defaulting.
- Terms and conditions: A registered lender will have terms and conditions. The T&C includes interest rates, repayment schedules, etc.But, a loan from a private moneylender lacks legal protection. That’s why the lender is free to raise the interest rate on your loan.
Personal Loan Requirements At Piramal Finance.
- Eligibility Criteria.
- Salaried individuals working in the following areas may apply.:
- Government Institution
- MNCs or related companies
- Partnership Firms
- Proprietorship concern
- Private sector
- Public sector
- Age Requirements.
- 21 years to 60 years
- Income Terms.
- A monthly salary of Rs. 25,000 or more.
- Work Experience Condition.
- At least six months of experience in the present organization.
- Documents.
The documents necessary to get a small personal loan are:
- PAN Card (Mandatory)
- Identity Proof (any one of the below) Passport
- Driving License
- Aadhaar
- Voter’s Identity Card
- Address Proof (any one of the below )
- Registered Leave and Lease Agreement.
- Passport
- Driving License
- Aadhaar Card
- Voter’s Card
- Telephone/Electricity Bill etc.( shorter than 3 months old)
- Income Proof
- Latest 1 month’s salary slips.
- Bank statements not more than three months old.
Bottomline
A small personal loan is the best answer to fulfill small and urgent financial needs. It is a popular loan among people because it is easy to get and requires no collateral. The small personal loan requirements are very straightforward. A person with an income as low as Rs. 10,000 can also avail of this loan. Always prefer borrowing a small personal loan from a registered lender. As they offer lower interest rates and easier repayment terms than moneylenders. Apply online or call 1800 266 644 to get an instant small personal loan.