Small personal loans: find and compare the best
Those who apply for a personal loan do not always need high amounts. More and more customers are turning to banks and finance companies for small loans. Loans easily granted by lenders, which impose limits on the maximum amount payable but are usually flexible as regards the minimum loan amount.
When we talk about small loans, we generally refer to sums up to a maximum of 10 thousand USD. However, the income received by the applicant greatly affects the amount that can be financed. Those with a low income will have easy access to sums not exceeding 5 thousand USD.
As regards the repayment, the small loans have an amortization plan which generally extends for a maximum of 3- 4 years. The interest rate is fixed and the periodic installments are generally monthly.
Find the opportunity that best suits your needs now:
- 1000 USD loan
- Loan from 2000 USD
- 5000 USD loan
- Loan of 10,000 USD
Example of a small loan estimate of 2000 USD
|Product:||Credit “Your Projects”|
|Product:||Credit “Your Projects”|
|Loan duration:||60 months|
|Amount Financed:||$ 2,000|
|Total due:||$ 2,465|
Monthly payment $ 41.08 Feasibility check
How to apply for a small loan
The practice for applying for a small loan is the same as when applying for any personal loan. The documents to be submitted in the application are the personal data and those certifying the applicant’s income.
Depending on whether he is an employee or a self-employed worker, therefore, the person submitting the application will have to produce: the latest pay slips and the CUD, or the tax return relating to the previous year. Pensioners present the pension slip.
Small loans can be requested either from traditional banks or from online institutions. In this second case, the application for funding can be submitted directly online, with the possibility of transmitting the documents in digital format.
Public employees and pensioners who need small amounts can also apply for a small Inps ex ex Inpdap loan. Discounted products granted by INPS, which do not require the intervention of credit institutions.
Small loan installment
For access to credit, it is essential that the periodic installment of the loan requested is sustainable for the customer. In the event that the installment is not in line with the repayment capacity of the applicant, in fact, the loan is not granted.
Although there is no precise rule regarding the installment-to-income ratio, many banks only grant financing if the monthly installment does not exceed 30-35% of the monthly income received, net of taxes. Before applying for a loan it is therefore advisable to evaluate its impact on your income.
By following this path, the applicant will be able to both identify the most convenient offers on the market and verify the amount of the monthly installments envisaged.
Purpose small loan
The application of small loans is now a practice for many taxpayers who need to obtain liquidity to face expenses of various kinds. From cars to holidays, products of all kinds are purchased using small loans.
Falling into the category of non-finalized loans, these loans are suitable for any purpose, since they are not tied to the purchase of certain goods or services. When applying, the applicant does not have to specify the reason for the loan.
Waiting times to obtain the loan
The waiting times for a loan are dependent on several factors, such as the amount requested and the creditworthiness of the customer. Elements that significantly affect the time needed to evaluate the loan application.
Not only. The type of institution chosen also influences the time required for the granting of credit. A loan applied for at a traditional bank is granted within 7 days of approval of the application.
The times are shorter if you turn to online institutes, which usually provide the loan in 24- 48 hours from the moment of approval.
Who can apply for a small loan
Anyone with demonstrable income and good creditworthiness can obtain a small loan. Usually there is also a registry limit set at 70 years, however each credit institution can establish different limits.
Pensioners who are over 70 and need liquidity can still access credit by transferring the fifth. A form of personal loan accessible up to 90 years.
The assignment of the fifth is a valid alternative to the personal loan also for those who are reported as bad payers or foreclosures. Subjects who, although they cannot boast a good credit profile, can obtain financing because they are protected by the presence of a fixed income from which the installment can be reduced.
The assignment of the fifth is in fact accessible only to employees and public pensioners. The monthly installment is deducted at the source, from the applicant’s paycheck or pension. In this way the bank is protected even if the beneficiary has had problems with past loans.
Anyone who is reported as a bad payer but cannot rely on a fixed income can still access small amounts by using the changed loans.
How to request a quote to get a small loan
Once you have selected the bank where you want to sign the loan, you can request a quote at the branch, presenting the documents certifying your income.
Many banks and financial companies also allow online quotes, following the specific guided procedures present on the official portals of the companies. In some cases it is possible to obtain a quote even without the presentation of documents, but these are purely indicative calculations. For a personalized quote, lenders always require income documentation.
Insurance for small loans: convenient
Associating an insurance policy with a personal loan means protecting yourself in the event that unexpected events occur, which may affect the beneficiary’s repayment ability.
The costs associated with the policy fall on the beneficiary of the loan and therefore increase the overall cost of the loan. Nevertheless, the insurance policy is always recommended for loans with amounts greater than 5 thousand USD.
In any case, we remind you that the loan policy is always optional, with the exception of loans contracted in the form of a loan transfer.
However, what has been said does not mean that the lending bank cannot place the insurance underwriting as a necessary condition for granting the loan. Rather frequent situation when the applicant’s income is not sufficient to guarantee the regular repayment of the installments.
At the time of the loan application, the bank offers the client various insurance policy quotes. By law, at least two of the proposed estimates must concern insurance companies not affiliated with the credit institution. However, the customer has the option of independently signing the policy.