A Small Cash Loan is Compatible to Meet Financial Emergencies

The need for extra cash is always felt by individuals. Not everyone is born with a silver spoon and not everyone will have enough funds in hand always to meet all types of urgent and planned expenses. Now, traditional banks and NBFCs are unwilling to provide monetary aid to people with low credit scores or with no credit history at all. Because of this, many individuals cannot obtain an unsecured loan at all. The youngsters, especially those between 20-30 years of age, feel the pinch of it. This is because at the start of a job, people do not always think of building their credit score.

Thus, they do not have the habit of taking credit. But during financial emergencies the instant need of funds can force a person to look for extra funds. This is where a small cash loan comes to rescue. This financial product is cut out for salaried individuals who often run their homes on a strict monthly budget. This class of people often may experience cash crunch to meet small and unexpected expenses. To fulfil this need, they may approach family members and friends for soft loans.

What to Expect from this Post?

In the article below, we have discussed the benefits of a small cash loan and how it can be used by salaried individuals. The post also discusses the features of this borrowing facility and how it is suitable to solve financial emergencies in a jiffy.

Why Use a Small Cash Loan for Urgent Monetary Needs?

Below we have discussed how a small cash loan is preferred to overcome financial urgencies:

Flexible Loan Amount

A small cash loan makes salaried individuals independent. As the loan is of a small amount between Rs. 10,000 and Rs. 50,000, it is a perfect fit to end all the monetary chaos experienced due to a cash flow disruption. Borrow only an amount you need, and do not exceed the limit as any loan is a responsibility to be paid back in time. Tenure of the loan is between 1 month and 6 months. So, if you wish to take a short-term loan, then this is the best fit. You can repay sooner and close the loan early as well. There are no charges for prepayment or foreclosure.

Minimal Requirements

You need to be over 23 years old to apply for this loan. The credit score requirement is not high in this borrowing facility. One should have CIBIL 600+ to avail the funds. In case of a genuine issue (delayed EMIs due to delay in salary credit or an emergency), a lower CIBIL score may be acceptable. Documentation is also minimal. The applicant has to submit proof of address and identity, recent passport-sized photographs, and income proof with bank statement. The lender usually has the facility of online application, which makes the process of approval and disbursal, quick.

Multipurpose Loan

Salaried individuals can fulfil their financial emergencies anytime without worrying about how to arrange their immediate monetary requirements. Also, the funds can be used for any purpose. The financial institution does not ask for any reasons as to why one is taking the funds or for what purpose the borrowers wish to use the money. The funds can be used for travel, medical emergency, and fee for higher education of children, purchase of electronic items and gadgets, home renovation, debt consolidation, vehicle repair, pay credit card bills, or any need.

Unsecured Borrowing

The funds can be obtained with collateral or security. So, the personal assets of the applicant are not at any risk. There is no need for any guarantor as well. No need of a co-applicant too. In traditional loans, many times, a borrower has to add a co-applicant to the loan application. Or he/she may have to provide a guarantor to secure the funds. But, in case of a small cash loan, all these requirements are not present. The loan is as good as an instant personal loan service, where no collateral is needed to avail the funds.

Improve Credit Score

Since the financial institution will send information of your credit activity to the credit bureaus, the borrower must ensure timely repayment. On making timely repayments, the credit score of the person improves significantly. This means, in the future the lenders will consider such a candidate as reliable to provide a loan amount. The creditworthiness of the loan applicant increases in case of an excellent credit score. It makes it easier for the person to obtain new loans in the future. Try and maintain a CIBIL score 750+ to increase the possibility of receiving approval on traditional loans.

Transparent Procedure

A small cash loan also comes with a facility of transparent procedure with no hidden charges. Processing fee is always mentioned in the loan agreement, which also contains details of other terms and conditions. It is best to read the fine print of the loan document before signing the same. As the charges are stated upfront, there is no scope of fraud. The loan agreement is legalized and valid. The lender will abide by the terms and conditions as mentioned in the agreement.

Great Customer Service

Borrowers can also benefit with top-notch customers service and receive a quick response from the team on a query on the loan, repayment, or any other related service. The customer representative goes through the loan application to check if all the required information has been provided by the applicant. After which, the probable borrower is contacted regarding the loan status, and to understand the needs of the applicant better to suggest the best borrowing option.

Final Words

Small cash loans are perfect for financial emergencies. These are available for salaried individuals who draw a regular monthly income with a good repayment capacity. This borrowing facility can help people in many ways; especially provide funds in their bank account within a matter of a few hours. This is why; applicants prefer this unsecured loan over other traditional loans. One can apply for the loan online from the comfort of his/her space, without hassles.

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