A small loan falls under the category of unsecured or personal loan acquired by people who need finances urgently. It’s usually suitable for people willing to meet small financial needs. As these loans are relatively small, these loans come with brief loan terms. Whenever you apply for a small loan in terms of cash, several lenders offer you the flexibility to select a repayment period that can match your needs.
Pro tip: Whenever you’re looking forward to borrowing a small loan amount, you should decide the amount you’re willing to borrow. You should devise a realistic plan to complete the repayment in advance or on time. As a result, you can estimate the amount you can pay out each month. According to the rule of thumb, you should avoid borrowing more than the amount you can pay it back.
How can a small personal loan help you?
Often people take small loans to pay for their daily expenses or meet their minor needs. These needs can be categorized as follows and are not limited to:
- Home expenses
- Medical expenses
- Latest gadgets
What are the different kinds of small cash loans?
1. Payday loans
Payday loans are loans of small amounts borrowed to meet the urgent needs of small financial amounts. Usually, the validity of this loan is up to one month. You’ll have to repay the borrowed amount with interest in a single installment whenever your upcoming salary kicks in.
However, the interest amount you’ll be required to pay on these payday loans can vary according to the lender.
2. Small personal loans
Personal loans are borrowed for long periods or prolonged time. The time can vary from two months to five years. As a result, you’ll have more time on your fingertips to repay the loan amount. Interest charged on small personal loans is relatively lower than the interest charge on any payday loan.
3. Line of credit loans
A line of credit loan is referred to as revolving credit. It is a kind of loan where you’ll be approved for a specific personal line of credit- the personal line of credit has a specific upper limit. Besides, you can borrow the amount you require from the line of credit. You can repay the amount every month along with interest. You can acquire several small loans according to the credit limit from the line of credit. Usually, the interest charged is calculated on the amount acquired. There’s no interest charged on the entire credit limit approved.
What are the features of small personal loans?
- An instant loan app approves credit up to rupees three lakhs to five lakhs. However, these amounts can vary according to the app you’re using.
- The amount borrowed can be used for almost anything. There are no restrictions imposed on the ways you’re willing to spend your money.
- You can get access to flexible repayment options. You can select a tenure along with an EMI amount that you can repay with ease.
- There are no guarantors or collateral required.
- Requires minimal documentation.
How to obtain a small loan?
Step 1: Download an instant loan app and register.
Step 2: Submit the application. Minimal documentation is required.
Step 3: You can learn about the approval status in a matter of minutes.
Step 4: You can obtain the small personal loan amount immediately after your final KYC documentation is completed. Our Gold Coast accountants will help you understand what you can claim to get the most out of your investment.