Small Cash Loans Are a Perfect Quick Money Solution

It’s always a problematic situation when you are suddenly faced with unexpected expenses, such as medical emergencies, delayed monthly salaries, or paying off debts. A solution to these problems is to borrow small amounts of money from a financial institution to deal with unforeseen expenses. These are known as small cash loans.

A small cash loan refers to a loan between the denominations of INR 10,000 and INR 50,000 in India. Since small cash loans are unsecured loans, you do not have to any security against it as a collateral.

There are a few pointers to keep in mind before applying for a small cash loan:

Qualifications for Applying for a Small Cash Loan

  • You can apply for a small cash loan if you are an Indian citizen and are above the age of 25;

  • Your minimum monthly salary should be INR 20,000. If your salary amount is lesser than the specified amount or if you are self-employed, you will have to find out which loans you can apply for.

Conditions That Can Lead to the Rejection of Your Loan Application

  • If you have many current debts to repay;

  • If your repayment capacity is unsteady;

  • If you otherwise do not fit the qualification criteria.

Benefits of a Small Cash Loan

  • The loan approval takes only a while after you submit all the necessary documents, such as salary slips of the previous few months and identity proof. The loan amount is credited to your bank account on the same day as the banks approval;

  • The main difference between a private personal loan and a small cash loan is that in a personal loan, the minimum loan amount is INR 1,00,000, with a longer repayment period. However, with small cash loans, you need not worry about long-term debt(s);

  • Interests rates are usually quite reasonable, but they also depend upon the amount you borrow and your repayment tenure. The interest rates may vary between 2-10% per month;

  • The repayment period is to 3 months to 1 year . A shorter repayment tenure is acceptable if you borrow an amount that is lesser than INR 50,000.

Mistakes to Avoid Before Applying for a Small Cash Loan

  • Be cautious if a lender asks you to pay security because this is not needed for small cash loans;

  • Compare interest rates of different financial institutions;

  • Do a thorough research of your financial institution, so that you are fully aware of the terms and conditions of the loan agreement.

Handling any kind of emergency is much easier when you can borrow small personal loans. You just need to ensure that you keep small cash loans as an option for times when you suddenly need to arrange for the money.