Nowadays, one can only dream of saving up a significant sum of money for emergency expenses. So, what can you do in such a situation? A smart solution is to opt for a small loan.
What are small loans? Well, a small loan is a personal loan that you can take out in times of need. You can apply for small loans to cover unexpected expenses such as house repairs or emergency bills. You can even take them out to help your family through a crisis situation.
Such loans are the ideal solution for dealing with crisis situations since they are extremely short-term and well, small. More and more Australians are taking out small and personal loans nowadays instead of opting for traditional banking loans.
You can get small loans generally ranging from $150 to $2,000. You can take them out for a period of 1-6 months. Most lenders often give you loan term options to choose from.
So, without further ado, let us list down some of the key benefits of small loans.
1. Quick and Hassle-Free Application Process
It takes only about 3 to 5 minutes to fill out the application for an online small loan. Yes, you can apply for it online! The lender then makes a swift decision; it is usually in favor of your application. If your request gets approved, you receive the amount that you requested within the next 24 hours!
Since you apply for the loan online, you can do that by sitting in the comfort of your own home! It is an incredibly convenient and quick process.
2. Simple Eligibility Criteria
Most lenders have a minimum wage per month requirement that you have to fulfill in order to be eligible for the loan. They need to know whether you’ll be able to pay them back or not, and this is their way to ensure that you do!
You also need to be over the age of 18 and have steady employment to apply for the loan. Lenders need your monthly income details to accept your application. And they also require your personal information, especially your account details in order to make the transaction.
3. No Need to Show Collateral
Same day loans often don’t require you to show collateral, i.e., you don’t have to give out information about your home, car, or any other assets you might have when applying for the loan. This is ideal if you want to maintain your privacy and don’t appreciate the idea of lenders knowing every single detail of your financial status.
4. Emergency Expenses
Everyone has cash emergencies from time to time. Not every person has savings on hand to pay for these unanticipated expenses. Small loans are a lifesaver for when you need to cover an urgent bill, a medical bill, some travel expense, or an urgent house repair!
5. You Can Help Out Your Family
You can be the financial support system that your family needs. At times, our parents or siblings are too shy to ask for financial assistance. For such instances, you can simply take out a small loan in their name, which they can pay back on their own terms.
6. No More Borrowing Money from Friends and Family
Likewise, small loans are a great substitute for borrowing money from friends, parents, siblings, or relatives. They help you avoid the mortification that you would face if you had to ask them for money. Small loans are a private, quick, and reliable alternative!
7. Regular Payments Will Positively Affect Your Credit Score
Small loans will definitely affect your credit ratings in a positive manner if you make sure to be prompt with the repayments. In simpler words, consistent repayment of your small loan could potentially improve your credit score.
So, if you find yourself strapped for cash, you can definitely look into small loans to meet your emergency monetary needs.