Whether it is a medical emergency, home repairs, or an unexpected expense, Small Personal Loans help meet your short-term financial needs. They provide quick access to funds during times of urgency with straightforward approval and verification processes. Small Loans are short-term borrowing options that typically involve lower Loan amounts. These Loans are unsecured and intended to meet immediate financial needs.
Depending on your eligibility, you can receive competitive interest rates and flexible repayment terms. With streamlined application processes and quick approval, lenders provide a convenient borrowing option for various short-term expenses.
Eligibility criteria
Several NBFCs and online lenders offer these Loan options, providing borrowers with alternatives to high-interest Credit Cards. To qualify for Small Personal Loans, lenders typically consider various factors such as age, income, and creditworthiness. The qualifying requirements also vary. Here are the basic eligibility criteria at SMFG India Credit:
- Age: 22-65 years for salaried individuals (a minimum of 25 years for self-employed individuals). The age should not exceed 65 at the time of Loan maturity.
- Nationality: Indian citizenship and residency are required.
- Income: Minimum monthly income of Rs. 25,000 for Delhi/Mumbai residents, Rs. 20,000 for others. Self-employed eligibility income depends on minimum annual turnover and profit after taxes, which vary by the nature of the industry or the domain of work.
- Work experience: At least 1 year overall for salaried applicants, with six months at the current employer. A self-employed applicant’s business must have been operational for at least three years.
- CIBIL score: A credit score of 750 or above is required to apply for Personal Mini Loans.
The final eligibility depends on multiple factors, including the lender’s policy during the Loan application.
Features and benefits
Mini Loans have several advantages, from attractive interest rates to a potential positive impact on your credit score. Here are the most prominent features and benefits you can anticipate:
- Quick approval: Small Personal Loans often have fast approval processes and quick disbursal times, subject to your eligibility. This rapid turnaround is invaluable for securing Loan funds in times of urgency.
- Lower interest rates: Compared to Credit Cards, Small Personal Loans typically offer lower interest rates for eligible applicants. This significantly reduces the overall cost of the Loan, making it a more economical choice for borrowers.
- Fixed repayment schedule: With a fixed repayment term and consistent monthly payments, borrowers can budget their finances more easily. Knowing how much to pay each month helps manage your existing obligations effectively. Additionally, a definite end date for the Loan lets you plan for future financial goals.
- No collateral: Being Unsecured Loans, there is no need to pledge collateral to secure the necessary funds.
- Potential credit score impact: Timely repayments on Small Personal Loans can positively influence your CIBIL score, potentially leading to better financial opportunities.
Conclusion
Small Personal Loans can offer quick financial assistance for immediate short-term requirements. SMFG India Credit offers Personal Loans at competitive interest rates starting at 13% per annum and repayment tenures of up to 60 months.
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