Mini Loans or Small Personal Loans: Everything You Need to Know

Emergency expenses can arise at any time, and arranging money during this time can be challenging. Mini loans, also known as small personal loans, provide quick access to small amounts of money without any inconvenience. These loans provide minimal paperwork, quick approvals, and convenient repayment methods.

What are Mini Loans?

A mini loan, also known as a small personal loan, is an immediate loan that assists individuals in fulfilling urgent financial requirements. It is an unsecured loan type, and hence you do not have to furnish any security to obtain this loan. These loans are used for medical emergencies, unexpected repairs, travel, or buying appliances. The amount you can borrow ranges between 5000 and a few lakhs. The repayment is also easy. You can select a tenure that is comfortable for you (usually between 12 and 72 months). A longer repayment period offers smaller monthly payments of the loan. However, you will have to pay more interest.

Advantages of Mini Loans or Small Personal Loans

• Fast approval: If you meet the requirements, your loan can be approved quickly by the lender.
• Basic documents: The procedure is paperless and involves basic documents such as ID proof, income proof, and bank statements.
  
• Quick money transfer: The amount of the loan is transferred to your bank account within a few hours of the approval.
  
• Spent the money on anything: You can spend the money on anything, be it education, medical needs, repair of the home, wedding costs, shopping, etc.
  
• No security required: The loan is not secured, and therefore, you do not have to offer any property or asset as security.
  
• Flexible loan amount: You can take a loan for as little as Rs.5,000 or can go up to a few lakhs, depending on your financial needs.
  
• Boosts credit score: Paying the loan on time can increase your CIBIL score.
• Flexible repayment option: You can choose the repayment tenure, which ranges between 12 and 72 months, depending on what suits you best.

Eligibility for Mini Loans

1. Occupation Type

• Salaried individuals working in government sectors, private companies, or multinational corporations.
• Self-employed professionals such as consultants, doctors, lawyers, chartered accountants, etc.

2. Income

• For salaried customers, the monthly salary should be between Rs.15,000 and Rs.30,000.
• For self-employed professionals, the minimum annual turnover should be Rs.15 lakh.
• For business owners, the minimum annual turnover must be Rs.15 lakh.

3. Age Criteria

• For salaried individuals: 21 to 60 years
• For self-employed professionals: 23 to 70 years

4. Work Experience

• Salaried individuals should have a minimum of 2 years of work experience, with 1 year of experience in the current job.
• Self-employed professionals must have a minimum of 5 years of experience.
  

5. CIBIL score

A CIBIL score of more than 700 is considered good for getting the loan.

How to apply for Mini Loan or Small Personal Loan?

Step 1: Visit the website or mobile app of the bank that gives small personal loans.

Step 2: to check whether you are qualified for the loan, enter your basic information, like your age, occupation type, income, and loan amount.

Step 3: Complete the mandatory information, including your work details, personal details, and financial details. Select the loan amount and the repayment period.

Step 4: Submit the documents, which are the KYC documents, bank statements, income proof, etc.

Conclusion

The bank shall scrutinize your application and will examine your credit score, repayment ability, and income. Upon approval, agree to the terms and conditions after scrutinizing them thoroughly and validate the process via OTP or electronic signature. The amount of the loan is credited to your bank account in a few hours.