Small personal Loans are those financial aids that help in emergencies. There can be different emergencies that can arise which require urgent need of funds. Emergencies like sudden vacation plans, weddings, medical expenses, etc. People even use these loans for day-to-day expenses like students use these loans to purchase study-related materials etc. Now with advancements in technology, these loans are available with just a few taps on your mobile phone. This article covers the benefits offered by these small loans and the process of applying for the loans.
Benefits Offered by Small Personal Loans
Small personal loans are used for various purposes like using for emergencies, planning trips, bearing medical expenses, etc. But apart from all this, they provide various benefits that are mentioned below.
Easy Application
The process of applying for small personal loans is quite straightforward and it doesn’t require much documentation. Some basic documents required could be identity proof income proof, and address proof.
Quick Disbursals
With easy application, the loans offer quick disbursement. These apps usually take 1-2 days for disbursement of the money in your bank account. Some apps don’t even take this much time and disburse the amount within a few hours of application.
No Collateral
Another benefit offered by these apps is they don’t ask for any kind of collateral against the loan. This is mostly because these loans are unsecured, and one doesn’t need to provide securities against them like gold or property.
Starts with as Small as Rs.20,000
The amount for small loan personal starts at Rs. 20,000. This is because these loan providers understand the needs of their customers and know their age range. Due to this, they start these loans with such low amounts.
How to Apply for a Small Personal Loan?
The need to apply for a small personal loan can arise due to any circumstance and it usually occurs suddenly. The below-mentioned steps can help one understand the process of applying for these loans.
Visit the Loan Provider
Multiple lenders are offering small personal loans, research well about each lender and choose the one that suits your requirements best. After this visit the lender’s website or app and search for the “APPLY” button.
Fill in Necessary Details
After reaching the lender’s website and clicking on apply for a loan, one needs to enter the amount for which one would like to apply. Other than that one needs to enter some personal details to confirm their identity. These can include details like name, PAN details, DOB, etc.
Repayments Options
After entering all the personal details and the amount for which you wish to apply. One needs to select one of the repayment options. Lenders provide multiple repayment options like fixed instalments, flexible repayments, automatic withdrawals, etc.
Complete KYC
Loan providers can’t give loans to anyone and they need to confirm the borrower’s identity. So, after selecting the repayment option, one needs to complete the KYC process. This is essential for confirming your identity.
Conclusion
Small personal loans provide multiple benefits like easy application, quick disbursal and no collaterals. These benefits make them a considerable option for quick arrangement of money. These loans are easily available at different lender’s websites, one of them is Tata Capital who provide these loans at competitive interest rates. With this, the process of applying for these loans is also quite easy. It starts with visiting the loan provider, filling in the necessary details, choosing the suitable repayment option and completing the KYC process.