A small expense often transforms into a big problem only because it is unexpected in nature, and one doesn’t have ready cash to cover its cost. Many times people require only a little extra cash to tide over their current financial circumstances. Rather than opting for high interest borrowing alternatives, they take small personal loans for their modest, yet pressing needs.
Although there is no specific official definition for small personal loans, in general, these are unsecured personal loans of around ₹ 1 lakh or lesser. The lower cap is usually ₹ 3000, however, can even go down to ₹ 1000 in case of certain lenders.
These loans can be availed by both salaried individuals as well as self-employed people, even if they are borrowing money for the first time. While the tenure of these loans might differ from lender to lender, in most cases it is anywhere from 3 months to 2 years. It is also important to note that not every bank and NBFC extends small personal loans. In majority of the cases it’s peer-to-peer lending platforms (a type of NBFCs) that offer such small personal loans to people. What sets these loans apart is the swiftness with which they get disbursed. Often, the disbursal happens on the same day of the loan application.
Small personal loans are proving to be instrumental in solving the immediate lending requirements of a great multitude of Indians. As the loan normally gets sanctioned without any type of collateral, it’s extremely easy for people to apply for it. The application process is also completely online, is relatively easy and doesn’t involve heaps of documents. As a result, you can apply from anywhere you like, at any time of day/night.
If you’re taking a small loan from a peer-to-peer lending company, the chances are high that the loan amount might be credited into your account within an hour itself!
It’s common for unexpected expenses to sometimes convert into big hassles without even knowing. This is where a loan product like this can be extremely helpful. The offered interest rates are better compared to credit cards, and the terms are also comparatively better. All in all, small personal loans are the way to go for any individual who wants to tide over his/her current financial troubles, but doesn’t want to get shortchanged because of his/her circumstances.
GoSahi website has proven to be the best platform to compare small personal loans provided by all kinds of lenders including banks and NBFCs. The applicants are asked to provide some basic details such as the loan amount, tenure, income etc. after which the platform’s AI does its job and fetches the most fitting small personal loan offers for the applicant. There is no data selling and no unwanted calls involved.