There are tough times everyone is facing in recent times due to the pandemic; a person drains economically and mentally. Such a situation hovers over the financial health of the individual due to lay-offs or pay cuts. These unexpected events defer in your monthly budget and create a financial crunch.
It is not a huge cash deficit but a slight shortfall, which prevents one from getting through the situation with ease. There are loan EMIs, house rent, and daily expenditure to look after. When due dates for certain debts or paying some bills creep up on you, all you need is a little financial help to fulfil these obligations. However, approaching your lenders for a small loan would involve filling out lengthy forms along with submitting numerous documents, and then waiting for approval on your loan application.
It is during these times when small personal loans are the ideal financial remedy for your financial shortfall. Financial Institutions comes to the rescue by providing small loans as per your requirement and with minimal eligibility criteria and paperwork.
What is a small loan?
A small loan is an unprotected or unsecured loan that could be used for fulfilling your financial needs. There is an effortless and quick way to get cash at the time of need. This serves as a suitable way to deal with financial emergencies without disturbing your monthly budget.
Applying for a small loan
You can apply for small loan through the online application or visiting the premise of the lender. The loan application requires various financial and personal details of the borrower. Based on the eligibility criteria, the loan gets sanctioned, and the amount is instantly transferred to the borrower’s account.
Features of the small loan
- Loan approval without any need of pledging the collateral.
- The application process is simple and requires minimum documentation and paperwork.
- The verification process is straightforward, leading to quick approval of the loan and making it a suitable option to fulfill your financial needs.
- The loan amount is disbursed to the borrower accounts immediately after document verification and loan approval.
- For Identity Proof you require Aadhaar Card / PAN Card/ Driving License, Voter ID Card, Passport
- For Age Proof you require a Birth Certificate/ Voter ID Card/ School or College Leaving Certificate
- For Address Proof you require Passport/ Aadhaar Card/ Voter ID Card/ Landline Bill/ Registered Rent Agreement/ Driving License/ Bank Statement/ Passbook/ Utility Bill
- For Income Proof you require ITR Forms, Form 16, Last 6 Months Salary Slips, and Bank Statements
Eligibility Criteria to Get a Small Loan
You need to meet the essential criteria to be eligible for a personal loan. You can use a personal loan eligibility checker to verify the same.
- The borrower should be an Indian citizen.
- The minimum age to apply for a small loan is 21 years.
- The individual needs to be self-employed or have a certain kind of regular income.
- The age of the customer should be less than 65 years.
Repayment of Small Loan
The Personal Loan Interest calculator is set to calculate all the relevant estimated figures. A small loan is repaid in one to five years, but it may vary depending on the loan scheme you opted for. There is an option of repaying the mini loan before the maturity date without any extra fees, which could be a great way to save on the interest.
Such type of loans helps you with meeting even the slightest financial crunch and make up for the deferred payments. It is a quick and straightforward loan procedure provided by the lender with minimal documentation and verification process.