Frequently Asked Questions

• What is small amount personal 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.

• Who should take a short-term loan?

  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.

• What are the features of a short-term loan or small amount personal 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.

• What are the benefits of small amount personal loan?

  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:

• What is the difference in short-term loans from registered lending portals vs moneylenders'?

  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.

• What are the eligibal criteria for a small amount personal loan?

  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.