What is a small amount personal loan

Read on to know how a small amount personal loan can be a practical financial tool to get much-needed funds quickly and conveniently.
What is a small amount personal loan
5 min read
29 July 2023

In times of financial need, many individuals turn to personal loans as a reliable solution to bridge the gap between expenses and available funds. These loans are versatile and can serve various purposes, from covering unexpected medical bills to making home repairs and renovations. Among the various types of personal loans, the small amount personal loan stands out for its unique features and accessibility.

How does a small amount personal loan work?

A small amount personal loan, as the name suggests, is a type of unsecured lending option where borrowers can access a relatively modest sum of money. Unlike secured loans that require collateral, small amount personal loans are granted based on the borrower's creditworthiness, income stability, and repayment capability. Generally, these loans have a shorter repayment period, typically ranging from a few months to a year.

Small amount loan: Tenure, maximum and minimum amount

With Bajaj Finance Insta Personal Loan you can get small amount personal loan from just Rs. 20,000 up to Rs. 12,76,500.

Repayment tenure for the Insta Personal Loan ranges from 6 months to 63 months.

Benefits of a small amount personal loan

  1. Accessibility: One of the primary advantages of a small amount personal loan is its easy accessibility. Traditional lenders and banks usually have strict eligibility criteria, making it challenging to secure a loan. However, small amount personal loans are designed to be more inclusive, and lenders often extend pre-approved offers to existing customers with a solid repayment history.

  2. Easy application and quick disbursal: The application process for a small amount personal loan is often streamlined and straightforward. Borrowers can apply online, and the disbursal is usually quick, sometimes within minutes. This speedy process is especially beneficial when urgent financial needs arise, providing a fast solution without extensive paperwork. The Bajaj Finance Insta Personal Loan can be disbursed within 30 minutes* to 4 hours.

How to apply for a small amount loan

In the case of Bajaj Finance Insta Personal Loan, all the processes are expedited, keeping things streamlined for the customers.

Here is how you can get a small amount loan:

  • Click the "CHECK OFFER" button on this page to open the online form
  • Enter your 10-digit mobile number and the OTP to verify your profile
  • An offer with a pre-assigned lending limit will now appear on your screen. You have the option of accepting it or selecting a lower amount
  • Choose the loan tenure that works best for you
  • Complete the online form by clicking on "PROCEED"

Some steps may vary depending on your profile and existing relationship with us. In case you do not see an offer, you have the option of applying for our regular personal loan.

Documents required for small amount personal loans

Select existing customers may be able to get their Insta Personal Loan without any paperwork. If asked for documents, you may need the following:

  • KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card
  • PAN card
  • Employee ID card
  • Salary slips of the last 3 months
  • Bank account statements of the previous 3 months

Before applying for a small amount personal loan, borrowers should evaluate their financial situation carefully and have a clear repayment plan in place. Conducting thorough research and understanding the terms and conditions of the loan is essential to have a comfortable borrowing experience. Additionally, being diligent in making repayments on time can also positively impact the borrower's credit score, improving their financial standing for future credit opportunities.

In conclusion, a small amount personal loan is a practical financial tool that can provide much-needed funds quickly and conveniently. It can be especially helpful for individuals facing temporary financial challenges or those seeking to finance smaller expenses without the need for collateral. As with any financial decision, responsible borrowing and disciplined repayment are keys to making the most of this borrowing option and maintaining a healthy financial standing.

Disclaimer

While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

How much can I borrow through a small amount personal loan?

The amount you can borrow through a small personal loan varies by lender and your creditworthiness. Lenders assess factors like income, credit score, and existing debts to determine your eligible borrowing amount.

What is the repayment tenure of a small amount personal loan?

The repayment tenure for a small amount personal loan typically ranges from a few months to a couple of years. Lenders offer various options, and the specific term depends on factors like loan amount, interest rate, and your financial situation. Shorter tenures may result in higher monthly payments but lower overall interest costs.

What can I use a small amount personal loan amount for?

You can use a small amount personal loan for various purposes, such as covering unexpected expenses, medical bills, home repairs, or funding small purchases. Ensure the loan aligns with your financial goals and borrow responsibly based on your needs and repayment capacity.

Why should you consider taking a small amount loan?

The top reasons to consider taking a small amount loan are:

  1. Easy accessibility
  2. Smooth application process
  3. Quick disbursal
Are small amount personal loans the same as payday loans?

A payday loan is a short-term, high-interest loan typically due on the borrower's next payday, often used as a quick financial solution for individuals facing immediate cash needs. A short-term loan is a small amount loan that is repaid in instalments over a set duration.

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