Whenever you need some money for some personal reasons, personal loans are there for you. Personal loan can be obtained for both small needs such as to buy a television or for some big needs such as to get your children married. For small needs small personal loans are provided.
Small Personal Loan are the personal loans which are of small amount and for small tenure of repayment. The loan amount for a personal loan can be from Rs. 50 thousand to Rs. 20 lakhs. The small personal loans can be up to Rs. 2 lakhs. The repayment tenure for these loans can be very short that is from 1 year to 2 years. These loans may become very handy in the time of dire need of money for people with comparatively low income.
The thing with small personal loans is that they are provided very easily and process of these loans is very fast. Sometimes you can get these loans within a day. Many private banks have scheme for their customers of a readily available small personal loan which they can take only through a phone call to the bank. Some banks even offer these loans even when the customer hasn’t applied for the loan. It is a very lucrative business for the banks also as these loans offer them with a comparatively greater returns.
The bad thing about this loan is that it has a high rate of interest on it. Small personal loans often carry a higher rate of interest as compared to the larger personal loans. Also, repayment tenure of these loans is also small. Besides this if you need a small amount of money for a very small time then you should go for a small personal loan instead of any other loan.