Buying a house, a car or the latest gadget is now possible thanks to the several companies that offer loans. Earlier, getting a loan was an enormous responsibility, owing to high-interest rates and other factors. Today, many companies offer bite-sized loans or loans with lesser interest. People can acquire these loans from numerous websites and apps that offer them. They no longer have to rely on banks. These apps offer attractive incentives for taking a loan from them, and with several people borrowing from them, it lends to their credibility.
One of the attractive offers these apps provide is “small loans”. A small loan amounts to a few thousand AUD.
Small loans
A loan amount ranging from hundreds to thousands of AUD is a small loan. The base range of a small loan differs across the companies that provide them. Some offer loans from 2,000 AUD, and some offer even lower amounts. The maximum amount of a small loan is usually 5,000 AUD. These amounts are perfect for housing renovations, vehicle remodelling, gadget purchase and upgrades, or even a long holiday. As these loans are not from banks, they offer many more advantages. A primary advantage is the lower interest rate. The processing time and procedure for a small loan is less complicated as well, and they credit the amount into the account almost immediately.
The convenience of a small loan
A small loan is convenient because of the numerous advantages it offers. The low amount and the low-interest rate makes it easier to repay. Additionally, they also offer the following perks.
Fast Processing
The first step in applying for a small loan is to fill an online application form. This form asks for a few ID proofs authenticating the borrower’s age, bank details and income details. The company then verifies these documents and processes the loan. They don’t ask for any collateral, which speeds up the process. People hesitant to share their details online can rest assured that these companies use fool-proof security measures. They ensure complete protection of all details submitted and are government-approved.
Flexible Usage
A small loan from a company, rather than a bank, offers more flexibility of terms and conditions. These companies don’t have any restrictions on what the borrower uses the money for. People can take these loans and use them for any personal expense without having to justify it later. The company also offers complete transparency of costs incurred. They detail the loan amount, interest rate and interval, fees (if any), and don’t add any additional costs later. Once you see this, you may want to choose this option.
Another flexible option offered by these companies is their repayment schedule. The borrower can set up a customised repayment schedule that suits their financial situation.
Credit Score
A central problem some people face is their credit history. Some banks and companies may deny loans to those with a bad credit score. But these loan-lending apps and websites have more open criteria. They only focus on the income and employment details to ensure the individual is eligible to return the amount. They are understanding of people with inadequate credit histories and are willing to overlook them as circumstantial.
Small loans are a genuine boon for several people. Certain expenses may exceed the individual’s income but may not amount to a bank loan. A few hundred or thousand dollars is too small an amount for a bank to lend, and borrowing a massive sum for a small expense makes no sense. A small loan comes in handy here, taking people a step further in achieving their dreams.
Author: Alison Lurie