The need for small loans can arise to anyone at any point in time. It means the need for quick funds that one can get and use for various purposes without disclosing the end-use. The most common small loans that are used are personal loans.
With the help of the online loan calculator, one can easily calculate the EMI for the small loans and benefit from the rate. But at the same time, it is important to know the various options to secure a personal loan with low CIBIL.
So let us know how to acquire small loans and how the loan EMI calculator works?
Ways To Acquire Small Loans
Small loans are mostly personal loans in nature that are unsecured. The tenor for the loans can be as low as 12 months and the amount can start at a minimum of Rs.10000 as well. While previously, these were offered by the banks only, there are various other ways to raise small loans during recent periods.
The most prominent options are:
- Banks
When it comes to securing a loan, the initial thought is to go to a bank. It can be advantageous for customers with higher credit scores, as traditional banks may have tougher qualification criteria based on minimum credit scores or income. At the same time, the banks also offer personal loans with low CIBIL, but the interest rates may be high.
- NBFC
The second best option to secure small loans is from Non-Banking Financial Institutions (NBFCs). Initially, NBFCs used to serve the lower-income people, charge fair interest rates, have a clear process, and provide small-ticket personal loans. But today, the application and the utility of the NBFCs have increased a great deal.
- Neobanks
An entirely digital bank with no branches is known as a neobank, a broad umbrella of financial service providers for digitally-savvy consumers. Neobanks adopt a simpler approach and are rapidly gaining popularity for quicker client acquisition. They are based on a single umbrella of numerous services, including personal loans.
- Digital Lenders
Online personal loans have fewer credit conditions than banks and a significantly quicker application procedure, with same-day cash available. Though digital lenders are on the growing stage, due to the lack of governing authorities, most online lenders offer high rates even for small loans, which can exert excessive pressure on borrowers.
Once you know the prominent options from where you can get the small loans, the next option is to connect with the platform that offers the online loan calculator to know the potential EMIs at different rates and tenor to get the best loan.
Reasons to Use Online Loan Calculator
The main reasons to use the loan EMI calculator or the online loan calculator are:
- Know the monthly installments to be paid
- Help in effective financial planning
- Find the best tenor for you based on your surplus
- Compare the rates offered by various platforms
- Reduce the chances of lapses due to EMI amount by allowing optimization
Securing the small loans will help to solve the immediate fund needs. While one might need immediate funds to get the best, it is advisable to use the personal loan EMI calculator. The most important thing to keep in mind while securing a personal loan with low CIBIL is that the browser should timely repay to improve the score.
To get the best small loans, analyze the pre-approved offers, compare the rates and offers, and know the various features of the personal loans with the help of the Bajaj Finserv.