What are small loans?

Personal loans in Australia seem to gain favour as an increase of an estimated 30 billion in June – August 2019 has been found in a market worth about 173 billion dollars. Naturally, the requests for small loans, a kind of personal loan with a smaller withdrawal capacity with lesser interest rates, also saw an increase. Usually, small loans have a range of about 2000-5000$ and any loans higher than that go into a completely different category. 

Small loans usually do not require an asset for security but rather only a good credit history with the freedom of using the money for any purchase or payment. Click here Sverigekredit.se to know more about.

Eligibility for Small Loans:

These are what a customer should look out for when applying for small loans online.

• If the person has bad credit, usually it won’t be a problem. But one must keep in mind to have a good credit history as this can attract better loan prospects.
• Must have a valid bank account with recurring income so that the lender is sure of repayment
• Must be at least 18 years or older 
• Any other criteria that the lender may demand

Documents Required:

• One must have a valid ID that shows personal details like age, date of birth and other data including contact information
• Bank details of the account to ensure smoother and quicker monetary transfer without delay
• Source of income from a job or business. Recurring income usually preferred 
• Bank statement of the past few months to check for credit history and score

Advantages of Applying for Small Loans Online:

1. No Need for Collateral: Usually, when taking loans from banks, collateral or security is usually required to be submitted. This is to ensure that the client pays off the debt. There’s no need for collateral with small loans as long as the client has recurring income in the account.

2. Flexible Rates: Most lenders usually have flexible and comfortable interest rates or fees to pay back quickly. One can also change the scheduled time according to the customer’s convenience. So, there is no need for a fixed period within which the customer should make the payment.

3. Multi-usage: One can legally use small loans for anything as long as the customer guarantees to return the money. Certain loans like housing, student and medical loans focus on each separate aspect whereas small personal loans are useful to pay for anything from unexpected expenses and weddings to student loans and mortgages 

4. No Strict Credit Score Required: A customer with a bad credit score can also get the loan approved as long as there is recurring payment in the bank accounts. Although a good credit score is an advantage, it is not necessarily a requirement.

5. Fewer Documents Required: Unlike traditional loans that need lots of paperwork, documents and signatures, small loans only need an identification and bank account details. 

6. Shorter Approval Time: Small loans usually have a shorter approval time compared to traditional loans. This makes sure that the customer can access the money as soon as possible, especially if the customer is in a financial crisis. Majority of the small personal loans get approved within 24 hours from the time of application.

7. Ease of Process and Security: There’s no need for the customer to go to a bank and sit down and wait for the paperwork to be ready. Small loans can be applied online from the comfort of one’s own home through a secure financial website. There’s no more scurrying through dozens of paperwork to get the loan approved.