Small Personal Loan App: Get Small Loan Online Instantly
Have you ever found yourself in a situation where unexpected expenses arise, and you need more immediate cash? Or do you need a quick infusion of a small personal loan without the hassle of a complex application process? These situations are more common in today’s India than one can imagine. In fact, according to an October 2023 report by Transunion Cibil, this is a reality for approximately 2% of all borrowers seeking personal loans.
This scenario often leads to exploring small loan apps that can facilitate swift disbursements of modest amounts—catering to urgent needs.
So, what exactly is a small loan, and what purpose does it serve? In this article, we answer these questions and many more.
What is a small loan?
Based on their business principles, financial institutions can provide small loans ranging from INR 1000 to INR 5 Lakh. This upper limit can vary among institutions. For some, the maximum threshold for a small loan is capped at INR 1 Lakh.
What are the benefits of a small personal loan to borrowers?
While quick disbursement and hassle-free documentation are the primary benefits of a small personal loan, they also carry other incentives like enhancing credit scores, providing collateral-free loans (in some cases), and promoting financial inclusion.
Nonetheless, like any loan product, a small personal loan also has cons or terms that borrowers should conduct thorough due diligence about.
Small Loan Apps – What are these? How do you find the best small instant loan apps?
One of the most convenient ways to procure a small loan is through a mobile application backed by leading financial institutions in the country. These small instant loan apps or small credit loan apps help borrowers get short-term loans of up to INR 5 Lakhs simply with the click of a button- making money available at their fingertips!
But, there are over 70+ small personal loan apps that the Reserve Bank of India approves. How do you choose the best one in an ecosystem where the borrower is spoilt for choice?
The short answer to this is to analyze the features of each lending institution. As mentioned above, every institution has a different threshold limit for what they categorize as a ‘small loan’. For some institutions, this threshold is up to INR 5 Lakh; for some, it is as low as INR 50,000. This threshold further decides eligibility, interest rate, repayment timelines, and other loan agreement terms.
Thus, the best small loan apps should be determined by borrowers, considering their credit score, the amount required to be borrowed, current financial health and other essential factors.
The KreditBee app offers a small personal loan of up to INR 5 Lakh, provided the borrower has a minimum monthly income of INR 10,000.
Things to keep in mind when borrowing through small loan apps
Small loan apps provide several benefits to their customers. They are easily accessible on mobile devices, allowing users to apply for quick financing. Secondly, streamlined processes like minimum documentation and fast approvals make the disbursement process extremely user-friendly. Lastly, loans through apps help a great deal in penetrating deeper into the crevices of the country. In a country like India, it may not be possible for everybody to have a laptop; however, a higher percentage of the population has access to a smartphone. Thus, financing through a mobile app also promotes financial inclusion in the country.
The top 10 small loan apps
- KreditBee: KreditBee stands out as a reliable and user-friendly small loan app. It provides instant personal loans to salaried individuals, offering flexibility in repayment options. With a seamless application process, borrowers can receive funds within minutes.
- CashBean: CashBean is another notable app that provides instant short-term personal loans. With a straightforward application process and quick approval, CashBean is a popular choice for those in need of immediate funds.
- EarlySalary: EarlySalary specializes in salary advances and short-term loans. It offers a quick and paperless application process, making it convenient for users to meet their financial needs before their next payday.
- MoneyTap: MoneyTap is an app that offers a line of credit to users. It provides flexibility by allowing borrowers to withdraw as much as they need and pay interest only on the withdrawn amount, making it a cost-effective solution.
- PaySense: PaySense offers personal loans with minimal documentation and a quick approval process. The app provides a user-friendly interface, making it easy for borrowers to manage and repay their loans.
- Credy: Credy is a small loan app that caters to the diverse financial needs of individuals. It provides instant loans with competitive interest rates and offers flexible repayment options.
- LazyPay: LazyPay is known for its ‘Buy Now, Pay Later’ feature, allowing users to make immediate purchases and repay the amount in easy installments. It’s a convenient option for those looking for short-term credit.
- mPokket: mPokket is designed for college students and young professionals, offering small loans for their immediate financial needs. The app has a quick verification process and disburses funds within hours.
- SlicePay: SlicePay targets the college-going population, providing small credit lines for various expenses. It’s an excellent choice for students who require financial assistance without the need for a credit history.
- FlexSalary: FlexSalary is a loan app that caters to the specific needs of salaried individuals. It offers instant salary advances and flexible repayment options, making it a reliable choice for those facing urgent financial situations.
Is a small instant loan app safe?
Small loan apps are heavily regulated by the Reserve Bank of India and backed by credible financial institutions, making them relatively safe for borrowers. However, like any financial product, borrowers should conduct their due diligence and educate themselves on cyber frauds and scams to prevent untoward incidents.
A small instant loan app provides quick access to funds but requires careful consideration. Users should choose apps with clear terms, robust security, and positive reviews. Borrowers should be mindful to borrow sensibly for urgent needs, repay on time, and view a small personal loan as an emergency solution only.
Stay safe by making informed, responsible borrowing decisions.