₹24,959
Loan EMI
₹34,90,279
Total Interest Payable
₹59,90,279
A small loan is a type of unsecured personal loan that is useful for people who have an urgent but small financial need. As these loans are relatively small, they have shorter loan terms. When applying for a small cash loan, many lenders may give you the flexibility to choose a repayment tenure that’s best suited for you.
ProTip: When deciding how much to borrow, it’s always a good idea to plan the repayment well in advance. By doing so, you are aware of how much you can afford to pay every month. As a rule of thumb, you should not borrow more than what you can afford.
All You Need to Know About Small Personal Loans
Get a small amount personal loan at a low-interest rate
Get quick small cash loans starting from ₹ 3,000
Get your hands on it with a mini cash loan
Most people take small loans to meet their small expenses, including and not limited to:
Payday loans are small loans that are borrowed for up to a month and are repaid with interest in one single instalment when the next salary kicks in. The amount of interest you could pay on a payday loan may vary from lender to lender.
Personal loans are usually borrowed over longer periods of time (anything from 2 months to 5 years). This means you have more time to repay the borrowed amount. Interest on small personal loans is typically lower than the interest on payday loans.
A line of credit loan is also known as revolving credit. In this type of a small loan, you are approved for a personal line of credit, which has a certain upper limit. You can borrow what you need from this line of credit and repay it every month with interest. You can take as many small loans up to your credit limit from this credit line. The interest is charged only on the amount you borrow and not on the whole credit limit approved.
Know the Difference: Small Personal Loan Vs. Payday Loan Vs. Local Money Lenders
The differences outlined below will give you a clear picture of why a small personal loan is a better choice.
Feature | Small Personal Loan | Payday Loan | Local Money Lenders |
---|---|---|---|
Interest Rates | Comparatively low (governed by RBI) | High | Very high (generally, decided by the moneylender) |
Loan amount based on | Monthly income and repayment capabilities | N/A | Collateral provided |
Credit Score | Improves credit score | May or may not affect credit score | No impact as the loan is not reported to the credit bureau |
Terms & Conditions | Outlined in detail in a formal agreement | Outlined in a formal agreement | Lack of formal agreement. Terms are unclear and there is no legal binding |
Collateral | No | No | Yes |
Repayment | Flexible | Need to typically repay within 14 days or by your next paycheck | Rigid and strict |
Default Risk | Lower as you choose EMI according to your financial comfort | Higher as instalments for payday loans are huge | Higher as it may get difficult for you to meet the money lenders’ demands |
₹24,959
₹34,90,279
₹59,90,279
MoneyTap’s small loan is a perfect combination of a small personal loan and line of credit. You can borrow money as low as ₹ 3,000 and as high as your approved credit limit (up to ₹ 5 Lakh). Let’s understand why MoneyTap is a better option for small loans with an example.
Rahul needed ₹ 15,000 to buy a smartphone. He applied for a small loan with MoneyTap online with minimal documentation. He was approved for a loan of ₹ 35,000 at an interest rate of 11%. From his credit line, he withdrew ₹ 15,000 and bought the phone. Rahul was charged an interest of 11% only on the ₹ 15,000 that he borrowed and not on his credit limit of ₹ 35,000. MoneyTap allowed him to choose his EMIs and repayment tenure (ranging from 2 months to 3 years) according to his financial capability. And he did just that. He opted for a loan tenure of 6 months. The money left in the personal credit line acts as emergency cash, which Rahul can use anytime without applying for another small cash loan.
Fill up basic details such as age, city, PAN number, & income so we can determine your eligibility.
After the approval from our system, we’ll schedule a KYC visit to your house / office to collect documents.
Credit line is ready to use! From the approved limit, transfer as much money as you need to your bank account.
With MoneyTap’s line of credit you will have money available instantly 24x7 to use anytime, anywhere. Click below to experience its power.
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Salaried individuals, self-employed individuals, and businesses can choose to take a short-term loan.
MoneyTap offers loans as small as ₹ 3,000.
Once you fill the application form and submit the soft copies, MoneyTap just takes a few minutes to intimate the approval status.
No collateral or guarantor is required for short-term personal loan approval.
You can choose a repayment tenure ranging from 2 months to 3 years.
You are expected to repay the borrowed amount by the repayment due date. If you fail to do so, you may attract a penalty. However, some small personal loan lenders may offer you a grace period for repayment.