Did you know that you can borrow a loan for a small amount of money? Sometimes we are faced with a situation where we only need a very small amount of money to bridge the gap between the amount we have and the amount we need. This can be possible in an emergency or any other situation where we might be falling short of funds. Choosing small personal loans can be of help in such a situation and there are many other benefits of this type of loan as well.
If you are looking for more information on any type of small loans like small business loans or personal loans and need to know about the borrowing process, eligibility criteria and documents required, then this article is the right place for you. In this article, we will be talking about the different types of small loans, how to avail of this loan online and how you can get this loan even for a lower credit score.
Table of Contents
What Are Small Loans?
Also known as a mini cash loan or an instant cash loan, a small personal loan is the option to choose when you need to meet any urgent expenses without disturbing your savings or asking people around you for the same. Small loans are a type of personal loan which are mostly unsecured, that is, there is no need for you to pledge collateral when borrowing funds as a small loan. The loan application procedure is very quick and convenient if you have the right documents and are eligible for the loan amount. You can get this type of loan online at very affordable interest rates. The repayment structure is usually flexible and the repayment tenure is short. This is why these loans are also known as short-term loans.
Small cash loans can be used by you for a variety of purposes and you also do not have to specify the reason for borrowing to your loan provider. In the upcoming sections of this article, we will be looking at the various aspects of borrowing this loan to simplify the loan borrowing experience for you.
What Are The Benefits Of Applying For Small Loans?
We now know what small personal loans are and we will be taking a look at the documents you need for the same and how to qualify for this loan. But why should you choose this type of loan out of all other loans? To answer this question, let us take a look at the benefits of applying for small loans.
- Unsecured Debts: When applying for small personal loans, you do not need to submit collateral. This means that you can avail of an online small loan even if you do not have any collateral to offer.
- Less Paperwork: You will not be required to submit a lot of documents for small loans. If you choose Loaney as the loan-providing platform, you will only need to submit your PAN Card and Aadhar Card for the loan application.
- Faster Loan Approval: Having all the required documents in place and choosing an online platform for loan borrowing will ensure faster loan approval and disbursal.
- Flexible Repayment Plans: When choosing personal loans of any type, you can repay the loan amount flexibly with the easy-to-repay plans offered by the loan provider.
- 100% Transparency And Client Confidentiality: Choosing Loaney as your loan provider will help you in getting a hassle-free borrowing experience along with the guarantee of secure transactions and no hidden charges.
These are some of the advantages of small instant loans. In the upcoming sections, you will find more information that will be helpful for you in applying for this type of loan.
10 Types Of Small Loans
When talking about types of loans, small loans can be of various types. In this section, we will be looking at 10 types of instant small loans and understanding the same in detail.
1. Vacations: Whether it is a foreign trip or a destination you have booked for a staycation, you can always choose to pay for the same using a small loan.
2. Weddings: A wedding is an expensive affair in our country. There can be multiple purposes for which you need some extra cash for a wedding. Small cash loans should be your go-to option for the same.
3. Emergencies: Emergencies always arrive uninformed and no matter what the situation is if you require some extra funds, you should apply for an instant cash loan and avail of the amount that you are eligible for.
4. Medical Treatment: The funds you borrow as small loans online can be used for paying hospital bills or getting any major medical treatments done as well.
5. Home Renovations: This is an important stage that most people go through in their life. Buying a new home or renovating a house you own does need a lot of funds. Applying for small instant loans for the same can be a good way to avoid spending your savings on the same.
6. Vehicle Loan: While you can avail of car loans when buying a vehicle, if you are short of a small amount, it is better to choose small cash loans for the same. This will help you in getting your loan easily without much paperwork or submitting collateral.
7. Relocating To A New City: As a student or as a professional, you might have to move to a new city for work or studies. You can avail of quick small loans online to meet your everyday expenses like groceries, local commute or even paying rent.
8. Computers Or Other Pricey Electronics: The world has switched to the online mode and almost every field now requires you to use electronic gadgets to get work done. You can use the funds borrowed as small loans to make such purchases and invest in your job or business or education.
9. Small Business Loans: You might need funds for starting your small business or investing in an existing business that your run. Choosing small business loans for the same will help you in getting the funds that you need for your business.
10. Pension Loan: For pensioners and retired professionals too, small personal loans can be borrowed from a variety of platforms online. These funds can be used by people for travel, medical emergencies or even for funding their children’s weddings.
You can apply for all these types of quick small loans online and avail of the best online loan borrowing experience. Let us take a look at how you can avail of this loan online from home.
Eligibility Criteria For Getting A Small Loan Online
If you wish to apply for small business loans online or any other type of small loan, then you must first check the eligibility criteria and ensure that you fulfil the same. Only then you should apply for this loan. The following are the criteria you must meet to apply for a small loan online on Loaney:
- You must be an Indian citizen who is at least 18 years old.
- You must have an Aadhar Card that is linked to your mobile number and a PAN Card.
- You must have a monthly income of at least 25,000 INR from an approved and verified source.
- You must have a bank account that has net banking facilities.
What Is The Minimum Credit Score Required To Get A Small Loan Online?
CIBIL score or credit score is one of the major aspects that should be considered before you apply for any type of loan. Most banks and loan providers check your credit score before approving your loan application. The minimum score required to get a small loan online is 750. The question now is whether or not you can get small loans for bad credit scores? Having a low credit score will not necessarily mean that you will not be able to avail of a loan, but the procedure and approval will be slightly difficult. Loaney does not require you to get a CIBIL check and you can apply for a loan on the platform.
Documents Required To Get A Small Loan
If you qualify for the online small loan that you wish to apply for, the next thing you should check is the list of documents you will need for the same. If you apply for online small loans on Loaney, you will have to submit the following documents:
- PAN Card
- Aadhar Card linked to your mobile number
- Your photograph
- Bank account details
How To Apply For A Small Loan Online Through Loaney?
Loaney is an online loan-providing platform that offers small personal loans to its clients at affordable interest rates for shorter repayment tenures. This platform is highly trustworthy and safe. All transactions are secure and 100% client data confidentiality is ensured. You can avail of small loans on this platform within a few clicks from the comfort of your home. The paperwork requirement is minimal and you do not need to present a guarantor. There is no need to pledge collateral and the eligibility criteria, as we saw above, are simple to fulfil. If you wish to apply for quick small loans online using Loaney, you can follow these steps:
Step 1: Visit http://loaney.in which is the official website of Loaney.
Step 2: Register yourself using your mobile number and select the option to apply for a personal loan.
Step 3: Fill out the application form for small instant loans and upload a digital version of the documents required.
Step 4: Submit the application form once complete and wait for the platform to review the same. Make sure to provide the right details while filling out the form in order to make the review process faster.
Step 5: After reviewing your loan application, the platform will approve your loan application.
Step 6: Post-approval, the loan amount will be transferred to your bank account.
When applying for loans, small amount loans can often be tricky but choosing the right platform is what will help you conveniently avail of the same.
Small loans are the best option for any urgent financial needs that may arise. When availing of any type of small loan, the procedure is faster and there are also many other benefits of the same. As we conclude this article on small loans online, we hope that you have understood this type of loan in detail and you will now be able to apply for a small loan online without any issues.
Frequently Asked Questions
While we have discussed almost every important aspect related to small cash loans, you might still have a few doubts and queries related to the same. For your convenience, we have answered a few commonly asked questions in this section. We hope this will help solve your doubts as well.
Who are small amounts of personal loans for?
Small personal loans are available online for any person who requires funds and can meet the eligibility criteria set by the loan provider.
What can I use a small amount of personal loan for?
The amount you borrow as small personal loans can be used for a variety of purposes as listed in this article. Other than that many people borrow small loans for bad credit score improvement as well.
Are small amounts of personal loans the same as payday loans?
No small online loans are not the same as payday loans. The key difference between these two types of loans lies in the amount that can be borrowed and the repayment tenures.
Can I get a small loan without documents?
You can apply for online small loans using just your Aadhar Card and PAN Card on Loaney.
What is the smallest loan you can get?
If you apply for any type of small loan like small business loans online using Loaney, the smallest amount that you can borrow is Rs. 200.