Have you availed a lump sum medical loan and yet are falling short on cash? Or, do you need to purchase a laptop and set up your work-from-home nook? Are you a businessman left with limited working capital? Small personal loans can be your knight in shining armour in all such situations. A small personal loan is a short-term loan that grants you an amount up to INR 2 Lacs and has to be paid back within two years.
Let us have a look at various
small personal loans that can help you out in times ofsudden cash crunch:
Debt consolidation loans Debt consolidation helps you combine your existing loans into a single loan, where you are required to pay one EMI instead of separate EMIs for each one of them. You can avail a
small cash loan for consolidating the EMIs on other debts and outstanding amounts, such as multiple credit card bills, credit card loans, medical loans, and many more. Such an arrangement facilitates easier debt management and reduces your chance of forgetting payments. However, you need to check online, compare, and choose the best deal for you.
Also Read: Availing Personal Loans Just Became Super Easy with Digital Lending Secured small personal loans You can avail a
small personal loan by pledging an asset as collateral or security. This can be a savings account, an investment, a car, or a motorbike or scooter. The primary benefit of taking a secured small personal loan is a reasonably affordable rate of interest. Check the website of your preferred financial institution to find the best rate available.
Unsecured small personal loans Getting a small personal loan is also possible even if you do not wish to offer collateral. You can take an unsecured small personal loan if you do not mind the considerably higher rate as compared to the secured variant. Financial institutions often charge a higher rate of interest to compensate for the risk involved in granting you a small personal loan without collateral.
Pawn loan If you have a piece of jewellery that you do not wear anymore or any valuable item (like metal utensils) that you do not use, you can visit a pawnshop and secure a
small personal loan against it. However, ensure that you deposit the item that you can temporarily part with and would not require shortly. Remember that if you cannot repay the pawn loan within the agreed tenure, the shop will consider keeping it or selling the same to recover the amount.
Also Read:
6 Foolproof Tips That Can improve Your Personal Loan Application Gold Loan A gold loan serves excellently as a
small personal loan. Many financial institutions offer instant gold loans,which can be as less as a few thousand rupees. You can avail pre-approved offers from your preferred financial institution and submit documents online to expedite the disbursement. During the current pandemic, most
financial institutions insist that borrowers should complete the documentation online and visit the branch just to deposit their gold in the vault.
Payday loan You can avail a
Payday loan by securing your future salaries as collateral. However, given the turbulent global economic scenario, payday loans may come with high rates of interest since the job markets are currently unstable, and consequently, one’s future salaries might also get affected.
Title loan You need to secure the ownership documents of your car as collateral to avail a title loan. Remember that not repaying a title loan can put your car at risk.
Also Read: How Personal Loans Help During An Emergency Conclusion Choose right and choose well. Although private money lenders offer small personal loans without a background check and legitimate documentation, avoid taking small personal loans from them because they attract high rates of interestand often lack formal loan agreements. Such loans may lead to hidden charges and unexplained terms and conditions. Use free, online calculators to estimate the amount of loan you require and the monthly EMI that you will need to pay after the loan is disbursed.
The rates of interest, as well as the loan terms and conditions, can largely depend on your credit score. The
higher your credit score, the better are your chances of loan approval and getting affordable rates.
Getting a small personal loan also becomes easier if you fulfil basic KYC and documentation with minimal errors. Although the application process varies from one lender to another, most lenders have online application forms to help you apply at any time. So, put an end to your cash crisis today by applying for
a small personal loan online.
