Small personal loans are your ultimate lending option to meet short-term and immediate financial needs.
Whether it is to settle a medical bill or pay for college tuition, you can get small personal loans for a variety of reasons.
So how can you borrow a small personal loan?
Well, we have a detailed guide for you.
A small personal loan is just like any other personal loan – the only difference is the amount of the loan.
It comes with the same set of terms and conditions as most personal loans.
A small personal loan can simply be defined as an unsecured loan that you can avail to meet urgent financial crises – when you’re simply short on cash to cover an expense.
Usually, there are no restrictions on why you need to secure a small loan.
You can get a small loan for home renovations to buy something purposeful or even for travel – if the reason is legitimate, you’re eligible for the loan.
Also, if you’re concerned that only salaried employees are eligible to secure a small personal loan then you’re in for some good news.
Both self-employed individuals and people without professional experience can apply for a small personal loan.
Interestingly, a study suggests that men go for credit card loans while personal loans are popular amongst women.
22 percent of the personal loan consumers were under the age of 25.
Additionally, Gen Z has shown particular interest in personal loans as opposed to Millenial who still prefer credit card loans.
While there are various reasons as to why a person opts for a personal loan, the most common ones are listed below:
Before applying for a small personal loan, make sure you understand what you’re asking for.
Being mentally prepared for what’s ahead can help you plan for future finances.
For example, you must know the repayment terms and interest rates mandated by the lending agreement.
Always compare your options before choosing the lender for your small personal loan.
This way, you wouldn’t take on additional debt nor worry incessantly about monthly installment payments.
Let’s explore the most important features of small personal loans.
The range of interest rates on small personal loans varies between 10.85% and 16.25% per annum.
The loan repayment is usually flexible. You can repay the loan through monthly installments within 12 to 72 months.
You can get a small personal loan for an amount as low as 50,000 INR going up to 5 lakh.
There are several different types of personal loans.
The best thing about small personal loans is that they are quickly disbursed into your account.
The amount gets disbursed into your bank account within 24 to 48 hours.
Small personal loans are popular amongst people who don’t want to have any collateral.
Unlike home loans or gold loans, with personal loans, you don’t have to offer any personal asset as security.
There’s another way to secure quick funds without liquidating your assets or taking up loans with high interest rates.
You can opt for a loan against mutual funds.
If you have investments in mutual fund units, you can easily use them as collateral to secure a loan.
This way, you will have access to quick funds while keeping your long-term investments intact.
In fact, 50Fin is a great platform that helps you secure a loan against your mutual fund investments with interest rates as low as 10.5% per annum.
With us, you can get your loan approved in just 7 minutes!
The loan amount depends on the value of your mutual fund units – which greatly depends on the market conditions.
Moreover, you can have the loan amount disbursed into your bank account within 4 business hours.
If you want to speed up your loan approval process, make sure you have done your preparation.
Have a checklist of documents. While small personal loans are mostly zero paperwork loans, keep the following documents in one place:
Also, you must meet the basic eligibility requirements. For instance:
Here’s why we believe loans against mutual funds are better than small personal loans.
Small personal loans are the most common lending option for meeting quick cash shortages.
Whether there’s a medical bill that you have to settle or you want to urgently travel somewhere, a small personal loan can be your ticket to financial stress relief.
While small personal loans are easy lending options, loans against mutual funds offer more convenience and benefits.
Confirm your eligibility and learn more by signing up on our platform.
