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There might be certain situations where we need urgent cash to tide over emergencies. In such cases, waiting for your next paycheck may not always be feasible. Thanks to the Internet and technological advancements, availing of small instant loans from the comforts of your home has now become a reality.

These small loan apps go by the adage “Fast funds- anytime anywhere” and are a boon to individuals looking for immediate access to money. 

Come, let us learn more about small loans and small loan apps!

What is a Small Loan?

Small loans are instant collateral-free short-term loans that can be used to navigate financial emergencies. The small credit loan app offers the convenience of availing these loans on the go. The loan amount you can borrow varies between lenders; it can be anywhere between Rs.5000 to Rs. 2 lakhs.

But how important are these small loans? 

Importance of Small Loans

Small loans offer you financial stability and act as a safety net, helping you manage emergency financial needs. You can use these instant small personal loans to manage medical bills, wedding expenses, vehicle purchases, home repairs, or cash to fund your trips.

Small loans offer convenience and flexibility at competitive interest rates and flexible payment terms to bridge the financial gaps between paychecks for the salaried and to ensure adequate cash flow for entrepreneurs. 

Small Loan Apps

The interface of small loan apps is simple and easy to use. The loan apps also have a streamlined loan application feature and often integrate a dashboard which displays the loan status and upcoming payment notifications. 

Benefits of Choosing a Small Loan App 

Choosing a small loan app to avail yourself of small personal loans online comes with a horde of benefits. These include the following:

  • The process is 100% digital. You do not need to physically visit a bank and can get the amount you need disbursed to your account in a short amount of time.  
  • The loan amounts vary between Rs.1000 to Rs.5 lakhs
  • The instant small loan app is available 24/7
  • Minimal documentation is needed 
  • These loans have flexible interest rates depending on the app, your credit score and eligibility, as well as the loan amount you request 
  • The apps provide a transparent fee structure so you can make an informed decision and plan your expenses accordingly 

Now that we know the benefits of a small loan app, let us understand who should apply for one. 

 

Who Should Take a Small Loan?

Small loans can be useful for:

  1. Any salaried or self-employed individual who is looking for
    • Debt consolidation  
    • Short-term financial relief from emergency expenses 
    • Funds for Home Improvement
  2. Anyone who wants funds but has limited or no credit history. 
  3. Students who require money for educational expenses 
  4. Small business owners looking for initial start-up costs 
  5. Individuals with low salaries who need personal loans to fulfil financial obligations 
 

Purpose of Small Loans

The mini-loan can be used for several purposes:

  1. Travel 
  2. Education 
  3. Emergency 
  4. Shopping 
  5. Wedding 
  6. Home Renovation
  7. Vehicle repair 
 

Key Considerations Before Applying

While small personal loans online can be beneficial, they may not be suitable for everyone. Take into consideration the following points before you apply for a small loan:

  • Individuals with unstable income might find it difficult to comply with the repayment terms and default on the payments. 
  • If you already have a heavy debt load, be wary of applying for these small loans as they can increase your financial burden.  
  • People without financial discipline need to stay away from small loans as they can misuse these easily available loans. 
  • Make sure you read the terms and conditions for loan repayment, pre-closure and any other fees before applying for the loan. 
  • Ensure you upload all the required documents to prevent your loan application from being rejected. 
 

Features and Benefits of Small Loan 

Here is a comprehensive list of features and benefits of small loans:

Features of Small Loans

  • These small loans are unsecured and don’t need any collateral to be approved.
  • The loan amounts are flexible 
  • Shorter repayment tenure
  • Lower credit score requirements
  • Transparent terms and conditions

Benefits of Small Loans

  • Quick approval and disbursement of funds
  • Multiple repayment options
  • No penalty for loan preclosure 
  • Since the small loan apps charge a fixed interest rate, you can plan for your monthly repayment.   
  • Your credit score improves after you successfully repay your small loan.
 

Why Choose Instamoney Small Loan App Over Others?

Instamoney stands out from its counterparts as one of the leading small loan apps.

  • Instamoney has completely done away with the need for physical documentation and prides itself on quick loan approval within 2 hours. 
  • You can establish a line of credit and don’t have to repeatedly apply for loans. 
  • You can a small loan of up to Rs.50,000. 
  • The interest rates are competitive from 2.99%/month
  • Flexible repayment tenures 
  • No pre-closure penalty 

Customers of InstaMoney love the service and keep coming back for more loans. Users who have applied for and received loans vouch for the quick disbursal of the loan amount and consider Instamoney as one of the best small loan apps. Over 500K customer testimonials also echo the same sentiments.

 

Applying for a Small Loan 

You can apply for a small loan through the InstaMoney app by following these steps:

  1. You can download the InstaMoney app from the Google Play store and proceed with the signup.
  2. Enter your basic financial and personal details and get to know the loan amount you are eligible for within 2 minutes. 
  3. You can upload scanned copies of the required documents. 
  4. Once the documents are verified, you will receive your approved loan amount in your bank account within 2 hours. 
 

Eligibility Criteria for a Small Loan

If you are an Indian citizen between the ages of 21 and 45 and make at least Rs. 12,000 per month, you are eligible for a small loan. 

Documents Required for a Small Loan

  • Aadhar Card and PAN card 
  • Three months’ bank statement with your salary reflected in it clearly
  • NACH or e-NACh forms 
 

Final Thoughts

When you are in urgent need of cash, you have two options- a credit card loan or an instant small loan through a small loan app. Since credit card loans have a very high interest rate, the best option for instant cash boils down to small loan apps. 

Though small loan apps have mushroomed in the recent past, you need to choose the best small loan app for a hassle-free experience. If you are looking for a credible and reliable small credit loan app then look no further than InstaMoney. The small loan app, registered under the Reserve Bank of India (RBI), has over 20 million downloads and has disbursed about Rs. 14 crores, making it your go-to solution if you are looking for instant small loans. 

Download the app from the Google Play Store today or contact customer support for more details. Become one of the millions of individuals who have broken financial barriers with InstaMoney

 

Frequently Asked Questions (FAQs)

1. Can I apply for a small loan even if I have other personal loans? 

Yes, you can. However, please consider your current financial situation and your repayment capacity before doing so. 

2. How can I prevent my small loan from being rejected? 

You can increase your chances of your small loan approval by having a good credit score, meeting the eligibility criteria, and submitting all the required documents with accurate information. 

3. How can I know if a small loan app is authentic? 

Before applying for a small loan, verify the company details and check if clear information is available about the company. Check out the reputation of the small loan app online.