Mr. Kapoor is going through a monetary crunch and looking for a small amount to handle a medical emergency. However, he also does not want to fall into a debt trap. In such a situation, the ideal solution for him would be to opt for small loans to meet his urgent requirements.
Are you wondering what a small personal loan is? Read on to know!
These loans are unsecured in nature and come with no end-use restrictions. The borrower does not need to pledge his assets as collateral to obtain funds, and the money can be used to meet any kind of financial requirement. Apart from these aspects, here are some additional features and benefits you should know about these small cash loans:
No matter how small the amount is, it is mandatory for applicants to meet certain basic eligibility parameters to avail of such loans. Here are some requirements:
If you are meeting all these aforementioned eligibility criteria, it is time for you to prepare all the necessary documents. Here is a list of documents you will have to submit for availing of a small amount of personal loan:
In addition, you need to submit your bank statements (past 6 months. Note that both the eligibility criteria and document requirements generally vary from one lender to another. Since this is an unsecured loan, your credit score will play a significant role here. The lender will check your repayment track record. Make sure you have a credit score of 750 or above to get prompt approval.
However, you also need to meet these basic parameters and thoroughly check what else your preferred lender is looking for before you submit your application.
Meeting the lender-specific requirements is not enough; you should also set a proper repayment strategy beforehand to avoid default on loan repayment. As mentioned earlier, financiers offer personal loan interest rates based on your credit profile. There is enough flexibility in terms of the repayment tenure. You can choose a period of 1-5 years when applying for small cash loans online.
You also get the convenience to prepay the loan before it expires. However, look out for the charges associated with it.
To find the flexible repayment terms on your personal loan, it is extremely important to compare different lending institutions. Therefore, when you search “small cash loans near me”, make sure to open multiple links, go through the details and draw a comparison before settling for one!
With Navi, you can expect affordable interest rates and other facilities as well. The cash loan disbursal process does not take that long, which makes it an ideal option during financial emergencies. On top of that, the paperless process saves you from unwanted hassles.
|Loan Amount||Up to ₹20 Lakh|
|Interest Rate||9.9% to 45% p.a|
|Tenure||Up to 72 months|
You can follow this simple procedure to apply for small personal loans at Navi:
Even though you will be obtaining a small amount, it is still advisable to compute what your monthly obligations will be to smoothly manage your finances.
Generally, while going through a cash crunch, individuals often fail to maintain all their financial liabilities and end up missing or delaying in making EMI payments. This inevitably leads to a poor credit score and impacts the repayment track record. To avoid this, make sure to evaluate monthly instalments beforehand using Navi’s personal loan EMI calculator and plan accordingly.
Apart from learning about the application procedure for small loans, you should also know the terms and conditions. Some lenders mention specific details, such as foreclosure charges, pre-payment charges, etc., on their websites. Make sure to go through them before availing of financial assistance.
Ans: When you default on your personal loan repayment, your lender will charge a penalty for the delay. Apart from this, defaulting can have negative consequences on your CIBIL score. Keep in mind that a poor CIBIL will cause problems when trying to avail of loans in the future.
Ans: With several lenders in the market, a borrower must keep in mind the following factors while looking for the best option:
• Loan processing charges
• Foreclosure expenses
• Tenure flexibility
• Eligibility parameters
• Documents required
Ans: You can determine the exact principal amount available by using a personal loan eligibility calculator. This online tool requires you to enter your city, employer, monthly earnings, and expenses. After entering these details, the calculator shows how much loan amount you can avail yourself of.
Ans: To improve your credit score, you need to repay your existing dues in a punctual manner. Apart from this, maintaining a good credit mix, consisting of secured and unsecured loans, can help too. You must also check your credit report for mistakes from time to time.
Ans: You can convince your lender to provide a small personal loan even when your credit score is low. However, be ready to shell out higher interest charges for the same. Alternatively, you can opt for such credit with a co-borrower.
Axis Bank Personal Loan Interest Rates April 2023Axis Bank Personal Loan interest rates are currently starting at 10.49% p.a. for loans of ₹25,000... Read More »
No Credit Check Loans in IndiaWhat is No Credit Check Loan? A ‘no credit check loan’, as the name suggests, does not... Read More »
Instant Cash Loan in 1 Hour Without DocumentsInstant Cash Loan in 1 Hour Are you in any emergency cash crisis and in need of an instant cash ... Read More »
Personal Loan on PAN Card – Check Your Eligibility & Apply Now!Do you need urgent cash to pay for an unexpected expense, a pending bill, or a medical emergency? A... Read More »
What are Short Term Loans? – Key Features and BenefitsShort Term Loan A short term loan provides urgent assistance for an individual’s financial req... Read More »
Interest Rate on NBFC Personal LoanNBFC Personal Loan Non-Banking Financial Companies (NBFCs) are becoming increasingly popul... Read More »
How to Apply for a Pre Approved Personal Loan?Pre Approved Personal Loan Pre-approved loans are instant personal loans that are offered by ban... Read More »
Personal Loan Disbursal ProcessA personal loan is an unsecured loan which you can avail to deal with any type of financial emergen... Read More »
Unsecured Loan – Types, Benefits, Interest Rate & EligibilityWhat is an Unsecured Loan? An unsecured loan is a type of loan that doesn't require any collater... Read More »
Small Cash Loan on Aadhaar Card without PAN CardSmall cash loans are type of personal loans offered by banks and NBFCs to meet short-term financial... Read More »
Personal Loan for Low CIBIL Score Applicants – Eligibility Criteria and How to ApplyOverview - Personal Loan With Low CIBIL Score Be it for a medical emergency, a sudden business o... Read More »
What is a Fast Loan – Features, Interest Rates and How to Apply Online?What is a Fast Loan? A fast loan is an instant personal loan that allows you to borrow money wit... Read More »
Top 10 Chit Fund Schemes in India in 2023Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »
10 Best Gold ETFs in India to Invest in April 2023Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »
10 Best Demat Accounts in India for Beginners in 2023Creation of Demat accounts revolutionised the way trades were conducted at the stock exchanges. It... Read More »
20 Best Index Funds to Invest in India in April 2023What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »
Best Arbitrage Mutual Funds to Invest in India in April 2023Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »
10 Best SIP Plans in India to Invest in April 2023What is SIP? SIP or Systematic Investment Plan is a method of investing a fixed amount in ... Read More »
10 Best Corporate Bond Funds in India to Invest in April 2023Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »
10 Best Bank for Savings Account in India [Highest Interest Rate 2023]Savings account is a type of financial instrument offered by several banks. It lets you safely depo... Read More »