We can’t always depend on a normal personal loan for our financial needs. Mostly because these loans are big-ticket finance solutions – they entail loan amounts that often run into lakhs of rupees. But what do you do when you need an emergency personal loan to cover smaller financial gaps? Well, until recently, the only way out was to borrow from friends or family. However, many non-banking financial institutes come in and now provide finance solutions to help cover such small yet urgent financial needs.
How to get one?
Many of these lenders offer the convenient option of applying online. You can fill out the application form on their website, scan and upload the documents, pay the processing fee and submit your application. Within 48 hours, your application will be approved and the sanction process will begin! It’s really amazing considering the troubling process of applying for a normal personal loan.
Apps make it easier.
Apps make it even easier for you to avail a small amount personal loan. They will have a process that is limited to your phone that can be completed with no more than 4 easy steps. The documentation as well will be super convenient usually not involving more than 4 documents and a selfie taken on your mobile camera.
What else do these apps provide?
Well, they offer a treasure trove for borrowers looking for small loans. Firstly, they offer loan amounts from Rs. 8,000 to 2 lakhs. This is usually enough to cover those small to medium needs. They also make it easy for you to meet their eligibility requirements. Have a salary of above Rs. 18,000? If yes, then you’re eligible! You don’t even need a credit score, this opens the door for first-time borrowers or those who have credit rating deemed unsatisfactory for traditional personal loans and lenders. The best part is that they provide instant approvals and sanctions within a couple of hours; ideal in emergency situations.
What’s it like to repay these loans?
It’s easy since most lenders will offer 3 months to 24 months to repay the loan. This is enough time considering that loan amounts are small. The interest rates are generally between 1.25% and 2.50% per month. Moreover, there are no prepayment charges with most of these apps. This allows you to repay the loan in a way you are most comfortable with minus any annoying penalties.
Can I trust these apps?
You want to be able to trust the lender when in need of an emergency personal loan. And with most of the apps, you can judge whether a lender is trustworthy or not be reading the ratings. Also, the official number of downloads and loans disbursed should give you a fair idea of the lenders’ credibility.
So if you need a small amount personal loan, you can turn to the internet or simply reach into your pocket and get tapping on your phone. There are numerous lenders that ready to provide pocket-friendly loans amounts in a snap!