Small Credit Loan Apps: Cash Loan App in India

We often need money to meet our financial needs, in such a situation non-banking financial companies (NBFCs) help us a lot. You will find many Small Credit Loan Apps online, through which you can get instant small loans with just a few documents.

Instant loan apps in India allow you to borrow money for a short period. They are designed to help you with immediate cash needs, like paying bills, buying groceries or covering medical expenses.

Small Credit Loan Apps Review

Interest Rate	Competitive Interest rate starting from 16% per annum.
Loan Amount	Rs 3,000 to Rs 3 lakhs
Tenure	62 days to 36 Months
Processing Fee	The processing fee starts from 3% on the approval loan amount.
Age	Minimum Age Required 18 years.
Lender	Non-Banking Financial Companies (NBFCs)

What do you understand by Small Credit Loan Apps?

Small credit loan apps are mobile applications that offer you small personal loans without guarantee for a limited period, which you must repay with interest in a few months. Most people also know them as payday loans, cash advances, short-term loans or NBFC personal loans.

You will find many RBI-registered apps on the internet that offer you instant personal loans.

These apps’ interest rates and fees are usually higher than traditional banks or credit cards. If you fail to repay the loan on time, you face additional charges, penalties or legal action.

So, before using any small credit loan app, you should research and compare the available options. You should only borrow as much as you need and can comfortably repay, by reading the terms and conditions carefully and understanding the risks involved.

Prop of Instant Small Loan Apps

1. Digital process: Small credit loans are usually available online or through mobile apps, and the application process is fully digital, simple, and fast.
2. Fast approval and funding: Instant Small loans are designed to provide quick access to cash, so the approval and funding process is usually very fast. You get an instant decision on your application, and if approved, you get the funds in your bank account within hours or the next business day.
3. Flexible repayment: Instant Personal Loans typically have flexible repayment options, such as weekly, fortnightly, or monthly payments. You also can choose the repayment term that suits your budget and needs, as long as it does not exceed the maximum limit set by the lender.

Cons of Small Credit Loan Apps

1. High interest rates and fees: Small credit loans are considered high-risk loans by lenders. The interest rate varies depending on the lender, loan amount, loan tenure, and credit score, but it can range from 10% to 48% per annum.
2. Debt Trap: Small credit loans can be a debt trap if you borrow more than your ability to repay if you roll over your loan multiple times.
3. Unregulated Lenders: Some Small loan providers are not regulated by the government or any financial authority, so they do not follow rules and standards that protect consumers.

Eligibility Criteria of Small Credit Loan Apps

Eligibility criteria for personal loans vary depending on the lender, but there are some standard requirements:

• Applicant must be a resident of India.
• The applicant’s age should be between 18 to 60 years at the time of application.
• The minimum monthly income of the applicant is Rs. Rs.15,000 or more depending on the loan amount and tenure.
• Must have a steady source of income and a good repayment history.

Documents Required for Instant Small Loan Apps

To avail of an Instant personal loan, you need to provide the necessary documents, but due to a low credit score, some additional documents are required, which are mentioned below.

1. Pan Card
2. Aadhar Card Should be linked with a Mobile Number.
3. Address Proof: Any one of the documents – Passport, Aadhar Card, Voter ID Card, Driving Licence.
4. Identity Proof: Any one of the documents – Passport, PAN Card, Ration Card, Aadhar Card, Voter’s ID Card, Driving Licence.
5. Income Proof: Last Six months’ bank statements, Income Tax Return, Salary Slip, Balance Sheet, etc.

How to apply for a Small Credit Loan?

It is important to know how to get a Small Credit Loan from an NBFC app. The process to apply for a loan is as follows:

1. First of all, you have to choose an NBFC which can give you a loan.
2. Download and install the application on your mobile.
3. Register using your mobile number and email ID.
4. Provide all the documents asked by the app.
5. Now select the eligible loan amount and tenure time through the app.
6. Next, the app will show you the repayment schedule, such as the due date and repayable amount, read it carefully and click on the ‘OK’ button.
7. Now click on the ‘Add Savings Bank Account’ button to receive the loan amount in your bank account.
8. E-sign the loan agreement using the OTP sent to the registered mobile number.
9. Once you sign the agreement, your application is forwarded for processing.

FAQ Related to Instant Small Credit Loan Apps