Also known as a short-term loan, a small amount personal loan is a type of loan of up to ₹2 lacs that is scheduled to be repaid in a short period. This could be a year or more, but not more than 2 years. A small amount personal loan is generally taken to finance the short-term money requirements.

Short-term loan can be taken by anyone who wants to meet his/her personal/professional needs. It could be taken by businessmen to meet working capital requirements. Working capital requirements include maintaining a cash flow and financing funds in a case of temporary shortage. In fact, salaried professionals and self-employed individuals too can apply for small amount personal loans to finance for personal needs such as purchasing consumer appliances and electronics such as laptops and smartphones. Even though these are short-term loan examples, anyone who meets the short-term personal loan eligibility can apply for a short-term loan.

Also known as a short-term loan, a small amount personal loan is a type of loan of up to ₹2 lacs that is scheduled to be repaid in a short period. This could be a year or more, but not more than 2 years. A small amount personal loan is generally taken to finance the short-term money requirements.

A short-term loan is an easy way to meet any shortcomings in funds when in dire need. Apart from being an instant personal loan, there are a lot of other benefits of small amount personal loan. Some of them are:

• Easy Access to Money
• Quick Approval
• Attractive Interest Rates
• 100% Transparent process
• Flexible repayment option(s)

There are many short-term loan providers varying from banks, NBFCs to private moneylenders’. Here are a few reasons why it is advisable to apply for short-terms loan online via registered portals:

• Interest rates The interest rates offered by registered lenders are lower in comparison to private moneylenders’. The private moneylenders’ cost of acquiring funds gets passed on in their loan rates making it expensive.
• Loan amount Lending institutions consider your monthly income and repayment capabilities before determining the loan amount. Therefore, the chances of your loan getting approved are higher. However, moneylenders’ do not run a background check making it possible for you to end up in a debt trap.
• Credit Score Borrowing a loan from a registered lending portal also improves your credit score. If you have a high credit Score, you can negotiate on the interest rate on future loans. However, borrowing money from a private moneylender will not be considered in your credit history.
• Terms And Conditions There is a lack of formal agreement when you borrow money from a lender. The terms are very unclear and there is no legal binding. The moneylender may ask you to repay the loan before the loan tenure ends or may increase the interest rates. However, a loan taken from a registered lender clearly states the terms and conditions related to the payment tenure, interest rate, and others.

The following conditions need to be met in order to apply for short-term loans online:

• The applicant must be at least 25 years old.
• The applicant must be a citizen of India.
• The applicant must have a good credit score.
• The applicant must have a valid Indian bank account
• The applicant must have a minimum of ₹10000 as monthly income
• The other conditions for small amount personal loan eligibility vary from lender to lender. It also depends on the amount you wish to get, the loan tenure, and your capacity to repay.

The documents required to Apply for a Personal Loan :

• Proof of Identity(Aadhaar/PAN card/Voter ID/Passport)
• Proof of Age(Aadhaar/Driving License/Voter ID/Passport)
• Bank statement for last 6 months
• Proof of Income(salary slips of last 3 months or last year ITR or income declaration)
• Passport-sized photograph(s)

A personal loan in India is an unsecured installment loan that individuals can avail from banks, NBFCs or fintech lenders for personal needs. It has predetermined interest rates, fees, tenure and EMIs as per the borrower’s profile and loan amount. No collateral required. Useful for debt consolidation, emergencies, renovations etc. Offers quick online disbursal. Requires disciplined repayment as per fixed EMIs to avoid impact on credit score.