Often an unexpected expense can mess up your monthly budget. This might not necessarily be a big-ticket expense; even certain missed bills or medical emergencies can disrupt your finances. In such a situation, relying on a small personal loan can help you make your ends meet.
What is a small personal loan?
Small finance is an unsecured loan offered for the short term to meet urgent financial requirements. Several lenders offer these loans for salaried employees and self-employed individuals. Since it requires no collateral and carries minimal paperwork, you can avail of a loan almost instantly.
Further, being a personal finance option, you can utilise this loan for a variety of purposes. From medical bills, house repairs and renovation, education fees, etc., you can cater to all your urgent needs hassle-free. Wondering how to get a small personal loan?Read on.
Additional Read: How to Apply for a Personal Loan in 5 Simple Steps?
Before applying for a loan, shop around and check for different loan offerings by various lenders. Naturally, you want to apply with a lender that offers affordable personal loan interest rate. However, consider other factors like repayment tenure, eligibility criteria, charges, penalties, etc. This will help ensure that you get the best loan terms to meet your requirements.
Check your credit score
Your credit score is a crucial aspect of your loan process. Lending institutions assess your credit score to determine your creditworthiness. With most lenders, you need a credit score of 750-900 to avail of a loan at lower interest rates.
Moreover, some lenders might also approve your small loanat convenient loan terms if you have a steady income source.
Understand the eligibility criteria
Other than your credit score, you need to fulfil the eligibility criteria set by the lender. Various lenders have different eligibility criteria but typically include requirements relating to-
- Income level
- Employment type
So before applying, go through the set eligibility criteria of your preferred lender to know if you meet the requirements.
Additional Read: Dos and don’ts for an instant personal loan in India
Applying for a loan these days is easier than ever. Most lenders have an online application process that offers you maximum convenience and ease of getting a loan from the comfort of your home. All you need to do is visit the website of your chosen lender, fill in the digital application form with personal and loan details, upload the necessary documents, and you’re done!
Submit the paperwork
As mentioned before, applying for a small loan does not require extensive documentation. That being said, the general paperwork you need to submit are as follows-
- ID proof
- Address proof
- Income proof (Salary slips/ITR)
- Bank statements
Once you’ve uploaded the soft copies of your documents, the lender will carry out the online verification process. After which, you will receive an instant confirmation of your loan.
Need quick funds?
Now that you know how to get small personal finance, connect with Tata Capital for an instant personal loan. With flexible EMI plans, minimal documentation, and quick loan disbursal, convenience is now yours!
Use our personal loan EMI calculator and start planning your loan with us today!