Need a Small Personal Loan? All you need to know about mini loans

Reviewed by: Balakrishnan Narayanan

  • Updated on: 29 Jan 2024
  • Published on: 8 Jan 2024
Need a Small Personal Loan? All you need to know about mini loans

Several lenders offer small personal loans online, making them easily accessible and therefore, a popular option. These short-term loans are best suited for tackling your small needs. You can get the required funds quickly and repay comfortably in your chosen tenure. Some of the ways in which you can use the funding are: 

  • Managing medical expenses 
  • Meeting travel costs 
  • Maintaining cash flow for business 
  • Paying credit card debts 
  • Buying gadgets

Read on to learn the advantages of getting mini loans and their requirements. 

Features and Benefits of Small Amount Loans

Here are the key features and benefits of these loans: 

Collateral Free

You can get a small personal loan without pledging any of your valuable assets as security. No wonder this is an ideal option to get funds when you don’t want to risk your assets. 

Pocket-sized Loan Amount

In these loans, you can get a small amount easily that you can use for several purposes. Access to small amounts helps you avoid pawning your assets or getting funding at high rates. A smaller sum can also make repayment easier since the total amount is lower. 

Minimal Documentation

It’s no rocket science to apply for a small personal loan, as you simply have to submit only a few basic documents. So, you can quickly apply whenever you want and get instant funds. However, remember that the requirements may vary depending on the lender. 

Same Day Approval

Due to the size of the loan amount, some lenders may offer same-day approval and sanction. So, you can easily finance your urgent needs without any delay. However, ensure you have a good credit score and history to get quick approval without hassle. 

Flexible Tenure Options

The term for these loans varies across lenders but generally ranges between 12 and 72 months. Since the tenures have a direct impact on your repayment, the flexibility allows you to choose a period that results in a repayment plan that fits your budget and needs.

Competitive Interest Rates

Lenders often offer competitive rates since the loan amount and tenure are generally smaller than regular personal loans. This makes borrowing easy on your pocket and its repayment manageable.

Eligibility and Documents Required for Small Personal Loans

Here are the general eligibility criteria for getting small personal loans online:

  • You must be an Indian resident 
  • You must be at least 21 years of age 
  • You must not be more than 65 years of age when the tenure ends 
  • You must be a salaried employed or self-employed individual
  • You must have the minimum income as required by the lender

Note that these terms may differ based on the lender you choose and their policy. You will also need to submit the following basic documents when applying: 

  • Aadhaar card
  • PAN card
  • Passport
  • Voter ID
  • Utility bill
  • Last six months’ bank statement
  • Salary slips, ITR, business proof, or other income proof
  • Passport-size photographs

With these features and benefits in mind, you can apply for mini loans to overcome your immediate small financial requirements in no time. At Fibe, you can easily get a small loan starting from ₹8,000 and going up to ₹5 lakhs. Our Personal Loan also comes with affordable rates starting at 2% per month and a tenure going up to 36 months. 

You can use the funds for any purpose and repay early without paying any pre-closure charges. Download our Personal Loan App or register on the website for a 100% digital application process and quick disbursal. 

FAQs on Mini Personal Loans

What are considered small loans?

Lenders generally provide varying amounts between ₹5,000 and ₹2 lakhs as mini personal loans. 

What is the minimum personal loan amount?

The amount depends on the financial institution you apply with and your eligibility. If you showcase good repayment capacity, you can get a higher amount at lower rates. 

How can I take a small loan?

The process of applying for these loans varies based on the lender but here are some general steps: 

  • Step 1: Compare various lenders to choose the best option
  • Step 2: Check the eligibility criteria on the lender’s website
  • Step 3: Apply with the given option 
  • Step 4: Enter the required personal and loan details 
  • Step 5: Submit your application

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