3 Instances Where You Need a Small Personal Loan

In today’s day and age, we need money in order to do even the littlest of things. From buying a week’s worth of groceries to getting a new television set, to taking care of a medical emergency or unexpected repairs in the house – getting all of this done would be impossible without money. At the same time, given how easy it has become to avail a loan today, people generally flock to banks, and other lenders whenever they fall short of funds. This is because that all of these financial entities have a facility where you can avail loans online. So, instead of running the risk of asking family and friends and getting embarrassed as a result, people choose to take out a loan when they need it.

Here’s the thing, though: sometimes, we also need small-amount loans, and that is when we need to get a small personal loan. Not all loans need to be of a big ticket-size for them to qualify as a loan. A small-amount loan is also a loan. And there are many instances where you’d require one. We’ve listed three such situations for you. Read on:

1. When You Don’t Have Emergency Funds

 Now, most of you would have heard of this popular saving tip, where you create an emergency fund to bail you out in case of a rainy day. While that is a good tip, it might not be possible for everybody to follow, considering that everybody earns differently, has different financial obligations to consider, and different lifestyles. So, in case you have to take care of a pressing need that’s not too substantial, but don’t even have spare funds that you can use, getting a small personal loan will help.

2. When The Need is Immediate

It will also be a good idea to get a small loan if the need is immediate, where you cannot wait for approval from traditional lenders, which tend to take a week or two. This could be anything from paying off missed EMIs to taking care of vehicle repairs – you can’t wait, and you need the funds fast. If you need the funds within 24 hours to two days, it’s best that you approach an online lender, or a Fintech company, who will be able to offer you small-ticket loans starting from as low as Rs. 1,000, within just a day or two.

3. When You Need a Short Loan Tenure

Small-ticket loans usually tend to have smaller tenures of 15 days to 1 month already, when you apply for one. If your need is small, where you just need a small amount of cash (one that you are sure you will be able to pay off soon), a small loan would be your best bet. After all, it makes no sense to be bogged down with long tenures when your loan amount is just Rs. 5,ooo or less (depending on your need).

Wrap Up

The above three points denote instances where taking a small amount loan is a good idea. Just be sure to check customer reviews and ratings of the lending organization, before you sign on the dotted line.

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