When cash is needed as the festive weekend approaches, it is imperative that you know all the means and ways to get a small cash loan. Time is a crucial defining factor in such a circumstance and we recommend that you have a fair picture of how to go about it. Not only will these steps keep you better prepared but also keep your mind relaxed in times of celebration and festivities. Applying for a small cash loan is easy and gets you started on sorting out your financial requirements.
The first and foremost tip to get a small loan is to have your documents in place. Now as a responsible individual, you can keep copies of these documents with you in any case. Checking for the validity of the documents is important as lenders run a thorough check on the applicant’s documentation during the verification process.
Documents Needed for Small Cash Loan
Below mentioned are the general list of documents needed to apply for a small cash loan online:
- Salary Slips from the past three months
- 6 Months Bank Statement
- ID Proof (Aadhaar card, PAN Card)
- Address Proof (Electricity bill, Driver’s licence, Gas bill)
Also, recent Passport-Sized Photographs are required when you apply for a small cash loan.
Small Cash Loan Eligibility Requirements
It is worthy to go through the eligibility criteria as set by various online lenders before the need arises for a small cash loan. Going through these pointers to be sure can save time during an emergency requirement of funds.
- Age: You should be at least 21 years of age and a salaried individual to apply for this type of loan. A regular monthly salary which is debited in the bank is considered valid. Cash salaries are not considered to be okay for drawing a small cash loan.
- Salary: Minimum monthly salary of Rs.25000 is must at most online lenders’ policies for applicants.
- Documents: You need to furnish income proof, such as salary slips, and bank account statement reflecting the drawn salary. KYC documents (ID Proof, Address Proof, PAN card) must be in place.
- Credit score: CIBIL score is not a defining factor for small cash loans and people without a score may apply. However, in case of an active score it helps if it is 600+.
To avail a small cash loan, having your documents in place and understanding the eligibility criteria will surely help. The next thing is to keep a tab on the interest rates of the lending company so as to have complete clarity on the repayment schedule as a borrower. Small cash loans may range anywhere between Rs.10000 to Rs.50000 which can be repaid in EMIs over a period of six to twelve months. Again, on a broad level, the interest rates on these loans will range around 0.1% to 0.3% per day as these are unsecured loans. Small cash loans are disbursed quickly once the verification process is done which usually does not take more than a few hours. Another tip is to have a solid credit history without any loan overdue amounts. Having said that, small overdue amounts, say up to Rs.3000 or Rs.4000 do not go against you while applying for the loan. It is best to clear the dues if you can.
Setting a purpose for the borrowed amount with a list of festival expenses is an important thing to do before applying for the loan. This avoids usage of the loan amount for any other purpose. Often, a loan amount is used for sundry expenses leading to a shortage of funds in quick time. To avoid this problem, it is important to map out the foreseeable expenses for the month and not let any mindless expense happen.
How to Apply for a Small Cash Loan?
Small cash loans can be applied for by following these simple steps:
- Loan processing does not take more than a few hours and the amount is credited directly to bank account.
- Social media verification: Providing links to your social media profiles alongside your bank details helps to establish your credentials faster.
You may be required to link your social media profiles and bank account so that we can process the loan faster.
- After providing your details online, it is likely that you get a call from the credit managers or relationship executives for the loan. You can opt for doorstep service of amount disbursement as well.
- At a time, one candidate can apply for one loan only though he can reapply for the loan after repaying the EMIs from the previous loan.
Instant cash loans have grown in demand and popularity very quickly over the past few years, thanks to some great service by private lenders online. As the festive season inches closer, small cash loans can get you covered for the expenses.