Small Personal Loan

Facing a cash crunch? Here's how a small Personal Loan can help you

We live in a new normal, where uncertainty is certain! In such times, we may often encounter tough times when it comes to finances. Small loans can assist us in solving short-term financial issues when things get rough. For instance, unforeseen costs may arise from health emergencies, outstanding bills that need to be paid off immediately, and so on. Further, the pandemic-related layoffs, delays in salaries, and reimbursements have had an impact on people's disposable incomes, affecting their ability to pay in many scenarios. Whatever the situation, small loans from online lenders can offer quick cash relief for emergency needs, which conventional loans do not come with. Depending on one's situation and eligibility, these small instant loans could be taken in the form of micro or Personal Loans. 

Let us dive into understanding what a small Personal loan is.

What is a Small Personal Loan?

A Small Personal Loan is an unsecured loan that can be obtained from banks or other financial institutions without the need for any kind of collateral. These loans are typically approved right away and can be used to cover any unforeseen personal financial difficulties. Small instant loans can be taken to cover unforeseen costs, pay off existing debt, consolidate debt, make home improvements, fund travel, raise your credit score, etc. Unlike other secured loans, you are free to use the money however and wherever necessary. Additionally, some personal loans could assist in tax reduction.

How does a small Personal Loan help during a cash crunch?

Personal Loans provide you access to funding that goes beyond your monthly income and can be used to cover unexpected expenses. Personal Loans make for a suitable option for borrowers in need of quick cash because of their features including a hassle-free application process, no requirement for collateral, rapid approvals, and fast disbursements. 

Here are some of the factors that make personal loans an excellent enabler in times of financial difficulty:

  • Accessibility: One of the main advantages of small instant loans is the ease of access. The majority of lenders have a straightforward loan application process that is usually digital as well. For instance, Poonawalla Fincorp provides you with an easy application process and KYC verification online. The ability to apply for a house loan from the comfort of your own home eliminates the need for numerous bank visits, time-consuming application forms, etc. for borrowers who are preoccupied with an emergency.
  • Instant approval: If all requirements for eligibility are satisfied when the Personal Loan application process is finished, approval is given right away. Personal Loan applications are typically processed within a few business hours by banks and other financial organisations. For example, at Poonawalla Fincorp, eligible loan applications are given a green light for a quick disbursal instantaneously.
  • No pressure of collateral: Most consumers find it difficult to submit an asset as collateral during the loan application procedure. Banks and other well-known financial institutions offer unsecured small instant loans without the need for collateral, which is an asset you need to give away to the bank in case of default. If all the requirements are met, you will be given the loan amount with no restrictions on how to utilise it.
  • No restrictions on usage: A personal loan has no limits, unlike home or car loans. It is really helpful in moments of crisis to be able to use the money wherever required. For instance, during a medical emergency, one has to pay for transportation, medicine, hospital costs, and even accommodation in various locations. Naturally, having the freedom to use the loan amount in any way is a big benefit.
  • Curated repayment plans: Repaying hefty EMIs for loans through financial difficulties can make it even more difficult to get back on your feet. Recovering from a financial setback or other interruptions in life typically takes considerable time. However, most lenders give their clients the choice to select the most suitable repayment schedule based on their financial situation, which can aid them in better budgeting. Small instant loans are a preferred option for borrowers, thanks to smart repayment plans that provide them with a lot of control over the repayment process. Using the online Personal Loan EMI calculator, you may select from several customizable payment plans at Poonawalla Fincorp.
  • Attractive interest rates: Customers can now obtain unsecured Personal Loans from a variety of banks and NBFCs, which has resulted in a surge in the number of lenders offering attractive interest rates. Borrowers have a wide range of options to choose from, allowing them to decide on the loan with the best terms and interest rates. Although Personal Loans have higher interest rates than secured loans, they often have lower rates than credit cards. A Personal Loan with a relatively lower interest rate can be a useful alternative to credit card debt because credit card companies normally charge a hefty rate of interest.
  • Boosting credit score: Small instant loans can also help you raise your credit score, which is a very obvious benefit. Even if it might not be a top priority during an emergency, you indeed need a good credit score to get loans at favourable terms in the future. You can raise your credit score and bounce back quickly if you take a Personal Loan and pay it back on time.

Wrapping it up

Small loans are a perfect option to cover unexpected expenses like a medical emergency, house renovation, car repair, etc. Small instant loans help you avoid depleting all of your savings in times of need and make it easier for you to continue making your monthly payments in the future. Before making a final decision, it is advisable to compare the eligibility requirements and interest rates for Personal Loans across several websites. Always thoroughly go through the loan agreement and ensure that you understand all of the terms before you sign up.

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