A Quick Guide to Understand Small Personal Loans Online

ByNishi Singh

It is not always possible to be ready for any financial crisis. We have all been there -where we came across situations when we thought of borrowing some small amount to fix up things to make up the shortfalls by not thinking of taking any big loans. Applying for a small quick personal loan is the most possible outcome to get the essential budgets. Personal loans are unsecured, where minimal documentation and the approval process are quick.  The decent thing about a personal loan is that you can choose the amount based on your needs. For example, if you want fast cash to meet a small expense, you can apply for a small personal loan.

What is a small personal loan? 

It has no general definition. A small loan is a type of unsecured personal loan that is specially designed to meet urgent yet small financial needs. Since these loans are fairly small, they have quicker terms. While deciding how much to borrow from the lenders, professionals suggest that you must follow the rule of thumb – never borrow more than you can afford to repay.

What are the features of small personal loans?

  • Small loans are very much affordable and accessible at the same time, as you can access them at low-interest rates in comparison to personal loans and credit cards.


  • Since small loans are unsecured loans, maximum lenders in India offer such loans with a  simple approval process. After choosing the lender, you can apply online on their website, and if you meet the eligibility criteria, your loan will be approved instantly.

  • Instant small quick loans can also be used to finance urgent expenses that may occur out of costs and emergencies such as medical bills, repaying of credit card bills, etc.

  • Another feature of applying for small loans online is you can choose the tenure as per your payment repaying capacity.


Types of small loans available in India

Payday loan

These loans are usually made for those who can meet the daily expenses because of not getting a salary from the employer. These loans can be borrowed for 60 days and can be repaid in a single installment with the interest added to it, Only when the borrowers get their salary. The lenders usually decide the amount an applicant can borrow by seeing their salary structure.

Small Personal loan

If we see the duration of small personal loans it has a benefit of repaying the loan from the range of 60days to five years of the time limit, which gives the options to the applicants to extend the period to repay the loan. This type of loan can meet your various small requirements which are not under your budget or you are running shorter in hand to pay the bills, EMI’s, etc.   

Line of credit A-line

A line of credit is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit loan, which is a type of small loan wherein you get a personal line of credit, and you can borrow within the approved limit and repay it in EMIs with interest. 

Eligibility criteria to get a small personal loan

  • 1. The applicants should be Indian residents.

  • 2. The loan can be availed by people of all occupation,

  • 3. The minimum age criteria should be starting from 21 years of age. 

  • 4. Applicants earn a minimum of 10,000 per month.

  • 5. Valid government ID proof is required to borrow a small personal loan

Even if you only need a small amount, Before you borrow to cover an expense, you should always leave out an option to save a little bit of amount every month or taking on a per time job can help you with your required money immediately, 

But if you do need to borrow money, a small personal loan might be a good option. If your CIBIL score is good you may find a small personal loan quickly with low-interest rates.