Anyone can face financial emergencies anytime of any type like sudden travel plans, medical illness, credit card bill, home repair, etc, which are not anticipated. You can neither ignore the need nor go for a secured loan through banks or NBFCs as it takes a lot of time to approve and disburse the loan. It is very difficult to get a loan on the same day via banks. Banks usually take weeks to process a loan, moreover there are very less chances that you will be financed with an amount less than Rs. 1 lakh.

Importance of Small Cash Loans:

Small sized loans play a crucial role in meeting up daily needs as well as emergencies, especially when you are running out of cash. This situation may arise anytime and with anyone. It may come in any shape like purchasing a long awaited phone/ gadget, unexpected function of relatives, etc. In this situation, people usually approach pawnbrokers and moneylenders who provide informal loans at very high interest rates.

Read more: Differentiate both Term Loan and Working Capital Loan?

Consequently the debts get huge with a period of time and if you do not have the capacity to repay at a particular period of time, you may be in a financial fix. To meet instant cash needs, you can for a small cash loan up to Rs. 50,000. This is an unsecured loan, wherein you do not have to pledge any asset to the financial institution. Tenure is between 1 month and 6 months. The funds can be utilized for any personal need. No restriction is there in the end-purpose of the loan.

What Are The Benefits of a Small Cash Loan?

Below-mentioned are advantages of the instant loan service:

  1. Borrow between Rs. 10,000 and Rs. 50,000. In some cases, you can even borrow up to Rs. 1 lakh.
  2. You can apply online for a loan and get it disbursed directly into your account sitting at home.
  3. You can apply anytime as there are no specific business hours in contrast to traditional banks which work for specific hours during the day only.
  4. No hard credit check, but expected CIBIL score is 600+.
  5. Minimal documentation only: recent salary slips, bank statements, employment proof, along with KYC documents, and PAN Card. Income Tax Return proof is not essential.
  6. Get loan approval and funds in just 2 hours to 24 hours.
  7. Cash credited instantly to your bank account. Disbursement of loan takes place directly to your savings account provided at the time of application.
  8. No hidden fees are applicable as all charges, including the processing fee is mentioned upfront in the loan agreement.
  9. Flexibility is granted in the repayment tenure (30 days to 90 days).
  10. The loan can also be repaid earlier than the time period agreed upon, without prepayment or foreclosure fee.

Apply for the Loan Online Within a Minute

You do not need to visit the bank with various documents. All you have to do is upload the required documents such as Identity proof, employment proof, and other essentials online on the website of lender to apply for the loan. Online application of the short term loan makes the processing fast and secured. In comparison with traditional banking system, the online credit facility, allows you to get instant cash loans without any hassles.

Read more: What is a business working capital loan?

Eligibility to Apply for a Small Cash Loan

Below-mentioned are the eligibility criteria for the loan:

  • You can apply for this loan if you are a salaried person over 21 years of age.
  • You need to have a minimum monthly income of Rs. 25,000. The income must be regular.
  • The salary should reflect in your bank account. Cash salary is not acceptable.
  • You need to have an active bank account for being able to receive the loan amount.
  • Apart from the credit score, factors like financial profile, repayment capacity, and employment history are also considered for approval of the loan.

Avail the Instant Small Cash Loan Even on Weekends

If there are instant meals, instant coffees, and instant dates in the 21st century, then why can’t there be instant small cash loans? These loans help you to overcome your financial emergencies. Most of the financial institutions offering this loan service even disburse funds on working weekends. The lending institution recognizes your financial emergencies and understands that these can occur even on holidays and weekends.

Read more: MSME Loan: Ideal choice for Small Business Owner

  • The weekend loans system provides a response in 24 hours nearly to everyone and in most of the cases; things are sorted out even way before.
  • Once the loan application is approved, the electronic funding system transfers the loan amount to your savings account within minutes.
  • Repayment is made as reasonable as possible. All you have to do is pay monthly installments without upfront payment in lump-sum within 6 months.

NOTE: While looking for a lender, you should check for small cash loan testimonials to be sure to get the credit through a reliable company. Trusted reviews help you to ascertain the credibility of the lender.  Go through the fine print of the loan, before entering into an agreement.

To Conclude:

Sometimes you may encounter temporary cash liquidity problems which need to be taken care of without a delay. Small cash loans can be availed to meet unexpected and sudden financial emergencies and expenses like auto repair and other such bills that may come up suddenly. It comes out as a boon when you lack sufficient money and cannot arrange the required funds immediately. This loan product does not require you to arrange for financial assets in order to avail it. You do not even need a co-applicant or guarantor.

Read more: How Does a Home Loan EMI Calculator Work?

The fund is disbursed quickly in a short notice. You do not need to wait long for the funds and there is no wastage of time and no unnecessary paperwork. This loan can fulfill as your small cash needs. But, if you are in search of larger amount loan (more than Rs. 50,000 or Rs. 1 lakh), then you can go through various other schemes of secured and unsecured loans such as gold loans and personal loans, both are multipurpose in terms of end use of funds.