Life is unpredictable, and emergencies may arrive at any time. While maintaining an emergency fund is advisable, most people are least prepared for urgent financial requirements. That is when small Personal Loans come to the rescue. These loans also provide quick funds to fulfil people’s desires, such as a long-awaited vacation, weddings, higher education, etc. If you need financial support for any emergency or desire, a Personal Loan can be the best way to go. However, before applying, read on to learn a few important things about these funding options.
What is a Small Personal Loan?
Small Personal Loans are unsecured loans best for urgent financial needs. You can obtain them without collateral, security, or guarantor. Moreover, they have a quick turnaround time, as most approvals come within minutes of application. To make these loans more easily and quickly accessible, many lenders like Hero FinCorp now support digital loan procedures through their websites and loan apps.
You can apply for a small Personal Loan from the comfort of your home without any branch visits or paperwork. The best thing is they come with have any no usage restrictions, making them the best funding options for various expenses, including medical emergencies, home renovations, higher education, foreign vacations, and last-minute wedding expenses. Furthermore, they have flexible repayment terms, keeping EMIs affordable and easily manageable.
Features and Benefits of Small Personal Loans
Let’s look at the key features and benefits of these loans:
- Collateral-Free: You don’t need to pledge any valuable asset as security to obtain a small Personal Loan. This makes it an ideal funding option without risking your assets.
- Minimal Documentation: Applying for small Personal Loans is no rocket science. You simply need to submit a few basic documents like your identity, address, and income proof. However, the documentation requirements may vary between loan providers.
- Instant Approval: Depending on the loan size, loan companies may offer instant approvals and disbursals. So you can quickly tackle your urgent needs without delays. A good credit score and low debt-to-income (DTI) ratio expedite the process without hassle. You may also get a Personal Loan for low CIBIL score, though their interest rates may be higher than normal.
- Flexible Tenure: The loan terms for these loans range up to 36 months. Since the tenure directly impacts your EMIs, the term flexibility lets you choose a repayment plan suitable to your monthly budget.
- Competitive Interest Rates: Since these loans have smaller loan amounts, the interest rate and outgo are also reasonable. It makes the loan easy on your pocket and the repayment manageable.
Expenses You Can Cover with a Small Personal Loan
Small Personal Loans have no restrictions with usage. That means you can use them for any legal purpose you want, including the following:
- Medical Emergency: Hospitalisation, surgery, diagnosis, healthcare equipment, therapy, after-care, medicines, doctor’s fees, etc.
- Wedding: Venue, catering, decorations, photography, gifts, outfits, guest accommodation, etc.
- Education: Admission fee, tuition fee, study material, study equipment, lodging, visa, etc.
- Travel: Airfare, hotel accommodation, visa, sightseeing, cab hire, activities, shopping, etc.
- Home Renovation: Designers, materials, shipping, labour, etc.
Tips to Choose a Perfect Small Personal Loan
Several factors come into play when opting for a loan deal. These include the following:
- Loan Amount, Tenure, and Interest Rates: Compare these figures to get the best loan deal suitable to your budget and affordability.
- Processing Speed: It depends on the urgency of your loan requirement. If you are in a hurry, look for a lender like Hero FinCorp that offers a fully digital loan procedure. They will approve the loan quickly without any branch visits, paperwork, or collateral requirements.
- Application Process: These days, loan companies strive to make applications as easy and quick as possible for applicants. A lender supporting a digital application process through a website or app ensures a smooth borrowing experience.
- Reputation and Customer Service: Since you might need an expert’s help at different times during the application and tenure, ensure the lender has a good reputation to provide an efficient customer support system.
Who Can Get a Small Personal Loan?
You must fulfil the lender’s eligibility criteria to qualify for a small Personal Loan. The eligibility conditions usually include the following:
- Citizenship: Indian
- Profession: Salaried employees and self-employed professionals
- Age: 21 to 58 years
- Income: Minimum Rs 15,000 per month
- Work Experience: At least six months for salaried applicants and two years for self-employed professionals
Documentation Requirements
The basic document required for personal loans is more or less the same across lenders. Usually, they are different for salaried and self-employed applicants. These include the following:
- Mandatory Documents: Duly filled loan application form, Passport-sized photograph (coloured)
- Identity Proof: Driving licence, passport, PAN card, or Aadhaar card
- Address Proof: Driving licence, passport, Aadhaar card, ration card, or utility bill
For Salaried Employees:
- Residence Ownership Proof: Electricity bills, maintenance bills, or property documents
- Income Proof: Last six months’ salary slips, the previous six months’ salary account statement, and Form 16
- Job Continuity Proof: Appointment letter from the current employer or experience certificate from the previous employer
For Self-Employed Professionals:
- Office Address Proof: Maintenance bills, utility bills, property documents, or rent agreement
- Business Existence Proof: Copy of tax registration, shop establishment proof, or company registration certificate
- Income Proof: Last six months’ bank statements and ITR for the previous two consecutive years
Stepwise Procedure to Apply for Small Personal Loans
The application procedure is easy, quick, and completely paperless at new-age lending institutions like Hero FinCorp. These are the steps involved:
- Visit the Hero FinCorp website or download their loan app.
- Click ‘Apply Now’.
- Fill out the application form with your income, identity, and employment details.
- Scan and upload the necessary documents.
- Wait for the verification process to complete.
- Review and accept the loan offer to get disbursal into your bank account within minutes.
Hero FinCorp is one of the most reliable lending institutions offering easy and quick small Personal Loans of up to Rs 3 Lakh to salaried and self-employed applicants. With attractive interest rates and flexible repayment terms, they offer the best loan deals suitable for most needs. Moreover, thanks to the paperless loan procedures, you can save a lot of time, effort, and money with quick disbursal.
