Benefits Of Opting For a Small Amount Personal Loan In India.

It is a goal for every millennial to achieve financial wellness on their own. However, the increasing costs of living don’t allow the modern generation to achieve this goal. Hence, many times, they are often left helpless in the face of an immediate medical emergency. But now they can breathe with a sigh of relief; after all, there are a ton of new-age financial institutions that provide capital assistance in the form of an emergency personal loan in India.

You can easily apply for this financial assistance through the traditional methods or by making use of modern means. Further, the interest rates charged by the new-age banks and NBFCs (non-banking financial companies) are way lower than the ones given out by the traditional financiers and loan sharks.

Other than that, there are a plethora of other benefits of opting for a small amount personal loan in India, and a few of them are here as follows:

  • Other than covering the sudden medical emergencies; you can make use of the loan amount for a variety of other reasons. You can purchase a new gadget, consolidate your existing credit card bills, or even fund your last-minute trips.
  • An emergency personal loan in India is offered by the financial institutions without asking for any sort of collateral. Meaning, you don’t have to keep any of your property or funds with the financial institutions as collateral, in order to obtain financial assistance. Therefore, even the documentation of a personal loan is extremely quick as you just have to submit a few documents such as your salary slips, KYC documents, proof of residence, etc.
  • The new-age financial institutions offer the applicants with a flexible repayment option. Therefore, you can easily plan out and repay your borrowed sum in the form of EMIs (equated monthly instalments) over a certain period of time. Further, the financial institutions determine your EMIs on the basis of the principal borrowed amount, interest rates charged and your repayment tenure.
  • The financial institutions even provide you with an EMI calculator on their online websites for free-of-cost. Therefore, you can easily make use of this online tool to compute your emergency personal loan amount from the comfort of your home or office. These tools have an extremely user-friendly interface; thus, any person can make use of it, without having any sort of prior knowledge.
  • Further, there are a ton of new-age financial institutions providing personal loans; thus, you can easily reduce your interest rates through comparison. You can either choose to compare on the online websites of the financial institutions’ or make use of the aggregator sites.
  • Comparison of personal loans will not only give you an insight into the functioning of a bank or NBFC but will also help you find the best financial institution for you.

Thus, these are the various reasons why opting for a small amount personal loan can prove to be a wise choice. Hope this article will help resolve all your doubts.

Good luck and all the best!

What to do when you need a small amount of personal loan.

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!

Hope this has been helpful, good luck and all the best!

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