The needs of a middle-class person are increasing day by day and personal or small loans are the only way to accomplish the daily requirements. If you are in need and not aware of the steps to get small personal loan, this post can help you.
The need for a loan can vary from person to person and small loans are a lifesaver for so many people. With most of the public getting modest salaries, they are just covering their daily expenses and sometimes unplanned expenses with mini loans. Hence, 77% of the Indian public relies on small loans to meet their end needs.
To keep yourself financially protected during unforeseen events such as medical emergencies, home renovation or vehicle repairing, you need to enrol for a small personal role immediately. And you can only do this when you know the steps to get small personal loan.
Applying and getting a personal loan is very easy these days. Almost all Banks have an online app where customers can apply for personal loans, credit cards etc. These apps are customer-friendly and make the entire process easier and quicker.
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What are Small Personal Loans?
Before discussing the steps to get small personal loans, let’s get into the details of small or mini loans.
Small loans are unsecured collateral-free loans that can be avail for any purpose. The requirement of documentation is minimal, and the process is simple.
Who is Eligible for Small Personal Loans?
If you’re following steps to get small personal loan, you must meet the following requirements.
Note: These requirements/steps will be applicable to Indian citizens and Indian Financial Institutions.
- Indian citizen or resident
- Over 21 years of age
- Must have a certain amount of monthly income
What are the Documents Required for a Personal Loan?
A person who is applying for a small loan must have these documents before following the steps to get small personal loan.
- PAN Card
- Adhar Card
If you are an employee
- Salary Slip for last three months
- Bank Statement of the Bank account for the six months
If you’re self-employed
- Income-tax Return
- Bank Statement
- Profit & loss account and Balance sheet
Get all these documents ready and submit them to the bank. Now you can sit back and relax until the bank gets back to you. Now let the bank or financial institution start their enquiry for further proceedings. Bank will check all the details to see whether you are eligible for the small personal loan or not. If you followed all the steps to get small personal loan properly and correctly, you will get the loan approval easily, but before approving, the bank will check your CIBIL score also.
What is CIBIL Score?
In very simple words, the CIBIL score is the customer’s credit score that is determined by the three-digit numeric number. With this number, banks check the customer’s credit history, including the number of borrowings, repayments habits, banks’ names from where they have borrowed.
The CIBIL score is maintained based on the details found in the accounts and enquiries. If your CIBIL score is decent and your documents are in order, there are higher chances that your loan will be approved by the bank, and the cash will be disbursed to your account after a few small personal enquiries.
So these are the simple steps to get small personal loan. You can apply for it any time whenever you want to fulfill your financial requirements.
Why Do Customers Prefer Small Personal Loans?
Personal loans are easy to borrow. Just prepare a couple of documents and you can apply for a small personal loan. This is why people prefer small personal loans to meet their financial requirements.
Ease of process- The entire process of getting a small personal loan depends on a few documents. If all the documents are in order and meet the bank’s requirements, your loan will be approved within 2-3 days.
Quick Disbursement- You just need to arrange the required documents and maintain a decent CIBIL score, and you will get cash in hand soon if you follow the steps to get small personal loan precisely.
Purchase Anything- Small Personal loans help you to meet your desires. From home to smartphones, middle-class person can live their dreams with mini loans.
Ease of Process- The entire process of getting a small loan is easy and quick. With the help of your smartphone, you can apply for a small loan, submit your documents and get cash in your account.
What Are Emergency Situations That You Can Handle With Small Loan?
Thanks to the Small Loan, which helps us in an emergency also. With online apps and these steps to get small personal loan, it is easy to get and repay the loan.
Medical Emergency If any mishap occurs and you need funds to get the treatment, you can apply for a small loan. You do not even have to wait for the banking hours. You can apply for a small loan through the mobile application.
Examination Fee- If you are unable to submit your examination fee, you can pay through small loans.
Flight Tickets- There are times when you need to travel in an emergency. Some financial institutions provide mini loans for this case also.
Almost all banks and financial institutions provide small loans at a minimum rate of interest. All you need to do is to follow the basic steps to get small personal loan, and they provide you with a loan with six months repayment time of six to one year, depending on the bank’s norms or amount of loan.