Everything You Should Know About Small Personal Loans from Online Sources
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Everything You Should Know About Small Personal Loans from Online Sources

Everything You Should Know About Small Personal Loans from Online Sources

posted on 2020-09-12 05:53:44 by Admin

If you are in dire need of a personal loan for your small but urgent financial needs, then small loans can be your go-to options. These unsecured personal loans are for shorter terms. The best thing about these types of online loans is lenders might give you the freedom to choose your repayment time as per your suitability.

You should focus on the repayment when you decide to borrow the amount irrespective of the quantity. Always borrow only when you can afford to pay. This makes you aware of how much loan payment you will be able to afford to pay monthly.

 

Types of Small Money Loans

  • Small Personal Loans

Borrowers usually apply for these types of online loans as they can borrow for a longer period of time. The time period can vary from two months to five years. The plus point is they get more time for loan repayment. And the bonus point is the interest rates on these personal loans is lower than interest on other loan plans.

  • Payday Loans

These types of small loans are usually borrowed for up to a month. The repayment can be done with the interest in one single installment. However, the interest amount on a payday loan varies from lender to lender.

  • Revolving credit Loans

Also known as a line of credit loan, this type of small personal loan comes with an approved personal line of credit. Mostly, this has a certain upper limit. You can borrow whatever amount you need from this line of credit and then start the monthly repayment including interest.

There are no restrictions on the number of small loans here. You can borrow the amount up to your credit limit from the credit line set. The interest is not charged on the approved credit limit, but only on the borrowed amount.

 

How Small Personal Loans help?

Most people take small instant personal loan to meet their meagre expenses, which include and are not restricted to:

  • Daily expenses
  • Gadgets
  • Emergency expenses
  • Unexpected expenses
  • Medical bills and other expenses

 

Why opt for Small Personal Loans Online?

The small loans offered through competent online providers is a perfect combination of a small personal loan with revolving credit. The loan amount you can borrow can range from as low as Rs. 3,000 to five lakhs depending on your approved credit limit.

Let us understand the benefits you can get when you apply for small loans from these parties.

Here are the benefits -

  • Minimal documentation
  • Instant verification of eligibility criteria
  • Instant loan approvals
  • The Interest rate on the amount borrowed
  • No interest rate on the credit limit
  • Borrowers can choose their EMIs
  • Easy and Flexible repayment options
  • Use the money left in the personal credit line as emergency cash
  • No need of a collateral or guarantor
  • Competitive rate of interest

 

Get Small Loans Online from Online Personal Loan Providers like LoanAdda in 5 easy steps

You can instantly get your small personal loan with these five quick and easy steps.

  • Step 1 - Online Registration
  • Step 2 - Fill the application with minimal documentation
  • Step 3- Verification of the Eligibility criteria and KYC Documents
  • Step 4- Instant Loan Approval
  • Step 5- Verify the interest rate and loan repayment tenure

 

Take a Peek in the Differences between Small Loan, Payday loan, and the local money lenders

One should know as a borrower, the key differences in the type of loans before applying. Here are the notable differences in terms of diverse financial factors that could affect your decision.

Features

Payday Loan

Small Loan

Local money lenders

Loan amount

N/A

Monthly income and repayment capacity

Collateral needed

Interest Rates

High

Very low

Very high compared to other loans

Collateral

Not required

Not required

Required

Credit Score

May/not impact the credit score

Improves the credit score

N/A as loan as it is not reported to the credit bureau

Default Risk

High

Lower

Higher

Installment amount

Hefty amount as payday loans are huge

Choose EMIs as per your financial capacity

Generally higher and can vary from lender to lender

Loan Repayment Tenure

Repay in the next 14 days or when you receive your next paycheck

Flexible

Strict and time-based

Terms & Conditions

Defined in the final agreement document

Defined in the final agreement document

Varies from lender to lender. However, it lacks legal binding due to unclear terms and a lack of formal agreement.

 

To apply for small loans, visit LoanAdda. Our best financial assistance and guidance are just a call away.