Considering the unsecured nature of personal loans, such credits are easy to get within a short period if you happen to have a good credit score. However, if the amount is small, you need to check with the banks you are planning to approach. Before we discuss how to get a small personal loan, we need to know where to get it.

Where Can You Get Small Personal Loans?

With the advent of NBFCs (Non-Banking Financial Companies), the options of getting loans have considerably increased. The RBI has set some different standards for NBFCs, which are quite distinct from banks. However, NBFCs, along with banks, are well equipped to handle your personal loan requests and move further with the process.

Things to Keep in Mind Regarding a Small Personal Loan

The best thing when it comes to small personal loans is its swiftness. The online process of applying for the loan is quite smooth. Thereafter, the approval does not take much time because of the paperless process. As everything is online, even the disbursal is hassle-free and quick.

Nonetheless, there are a few things that need to be considered before opting for a loan. They are:

  1. Interest Rates:
  2. Being a small amount, you have to be extra cautious about the interest charged on the loan. It is crucial that you check with all the banks and choose the one that has the most competitive rates.

  3. Fees & Charges:
  4. In addition to interest rates, another factor that increases the burden on your finances is the several bank charges levied before the disbursal of the loan, which includes the processing fee. Furthermore, as the amount of the loan is less, you need to ascertain the prepayment fees as well as the late payment penalty.

  5. Big No to Payday Loans
  6. You must stir away from payday loans, especially because they may have very high-interest rates.

  7. Good Repayment Plan
  8. In reality, taking a loan is comparatively easier than paying it off within the stipulated time. So, you need to have a repayment plan even for a small loan before approaching the bank with your proposal. The online EMI calculators can help you formulate an effective repayment strategy.
Now that you know how to get a small personal loan and the intricacies involved, you can easily apply and get it approved within no time. You just need to make a checklist of the documents required and make sure you are eligible in terms of income criteria and other relevant requirements.

Check your eligibility here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



Trending Articles

Popularly Searched Terms

How to Apply for a Personal Loan

Personal Loan EMI

Personal Loan Eligibility

Personal Loan Processing Fee

What is a Personal Loan

Latest Articles

personal-finance
personal-finance

5 Benefits of Getting a Personal Loan for Travel in Advance

Read More
Posted on 18 May 2020
personal-finance
personal-finance

How to Choose a Personal Loan Tenure Smartly?

Read More
Posted on 15 May 2020
personal-finance
personal-finance

Things to be Careful About While Applying for a Personal Loan

Read More
Posted on 15 May 2020

Featured Articles

image abc-of-personal-money
abc-of-personal-money

Are Millennials Any Different When It Comes To Planning Financials?

Read More
Posted on 05 February 2020

Relevant Articles

image home-finance
home-finance

Why Employer Status Matters for Banks' Loan Eligibility?

Read More
Posted on 20 May 2020
image home-finance
home-finance

What Every Property Owner Must Know About Mortgage Loans?

Read More
Posted on 20 May 2020
image personal-finance
personal-finance

5 Benefits of Getting a Personal Loan for Travel in Advance

Read More
Posted on 18 May 2020