Medical emergencies and financial urgencies won’t give any intimation before striking you. you can take a short term loan to tackle this situation. Hence, if you are not ready, then you may find it tough to deal with them!
But when it comes to meeting the urgent need for money to deal with a short term financial crisis, you can always rely on a small personal loan.
A small personal loan is a viable alternative that helps you cover your monetary needs super quickly.
If you don’t know what to consider and how to apply for a short term loan like a small personal loan, then this post will help you. Continue reading!
- Check Your Credit Score
Before applying for a small personal loan or any other loan; you must check if you have a robust credit score or not. Lenders check this out as the first thing as short term loans are mostly collateral-free. Hence, if you have a higher cibil score, then it gives lenders the confidence to approve the loan request. Why? Having a strong credit score means being able to maintain a consistent repayment history. Anything that reads 750 or more is considered a higher cibil score. know the difference between cibil score and cibil report.
- Know your eligibility criteria
The next thing is being aware of the personal loan eligibility criteria that you need to fulfil, along with the documents needed. Have a look at the standard eligibility conditions and documents needed while applying for short term loans:
- Your age should be under 23-55 years.
- You need to be a resident citizen of India.
- You ought to be employed with an MNC, Public or a Private Limited Company.
- KYC Documents.
- Employee ID Card.
- Last 2 months’ Salary Slips.
- Previous 3 months’ statement of your salary account.
- Always shop around
Since small personal loans are collateral-free, they carry a higher rate of interest. Hence, the EMI amount payable may cough up a large portion of your income. To avoid this and save on interest charges, you should always shop around for the best offers. To do that, you can land on a third-party website and pick up the best offer that suits your needs and repayment capacity.
- Go through loan terms and conditions
By going through the loan terms and conditions, you will be able to control it. And it will mean not being surprised if you need to pay some charges. The loan terms and conditions come with all costs that will be payable in the event of a default and more. Hence, you should ensure being aware of all in advance.
Steps to apply for a small personal loan online
- Land on the website of your lender and fill the loan application with your personal, employment and financial details.
- Select your desired loan amount and tenor that you wish to repay the amount.
- Submit the documents required for short term loans to the representative of your lender who will get in touch with you.
- Finally, receive the approved loan amount credited into your bank account within 24 hours.
If you are looking to get urgent money to manage the financial crisis, then a short term loan like a small personal loan is among the best bets.
If you are ready, then you can save your time and efforts by applying online on a lender’s website and app.