Globally, short-term loans or small loans are sought to be the easiest and quickest option for the borrowers. In the case of the small term loan, people can get quick loans without much hassle of documentation and tenure period. This type of loans is really useful during emergency times. One can opt for assorted nationalised banks, NBFCs and online lenders to collect the small loan. It is maybe time taking but worthy in every way when opting for small loan lenders in Pune. Let’s understand the term ‘small loan in Pune’ from scratch.
Defining Small Loan
A small loan is a loan made on emergency requirements with immediate effect and for short tenure. One can take these loans from nationalised banks, NBFCs and online lenders via online as well as offline.
Features Of Small Loans In Pune
It is very intricate and essential to understanding the facts when opting for the small term loan.
- Loan Amount: The minimum to the maximum amount is INR 10,000 up to 5 lakhs as per the credit profile of the borrower. One such criterion to decide the loan amount is the borrower’s salary.
- Repayment Period: The repayment period should be between 3 months to 1 year. Though it period differs from lender to lender, disbursed, the borrower needs to start paying from the next month.
- Processing Fees: The percentage can be between 1-6% which is marked as a standard processing fee over the principal amount, charged for getting a short-term loan in Pune.
- Pre-Closure Charges: Some lenders do not impose any kind of charges whereas some short-term loan lenders in Pune might levy a small amount of fee up to 2% for pre-closure.
Do You Have Bad Credit?
As a borrower, you must keep a tab on your credit score so that whenever in need, you may quickly apply and get a loan. With the bad credit score, it could be challenging to apply for a small loan from traditional lenders.
In such cases, you can explore other lenders who do not consider credit score as the main criterion.
Eligibility Of Small Loans In Pune
- The borrower should be an Indian resident or citizen
- Be it salaried or self-employed, the borrower should have a minimum income of INR 20,000. This clause varies from lender to lender.
- The age of the applicant should be above 21 years old and below 60 years old.
- The borrower must have an account in a nationalised bank or have some experience with a bank.
- The residential documents should be at least 1 year old.
- The applicant must have a good credit history and credit score
Fees & Charges
Once your personal loan is approved, various types of charges and fees may be levied by the banks or money lenders. Be levying, they will notify you before the sanctioning of the loan amount. Check out the fees and charges levied on a small loan in Pune.
Processing fee: The processing fee from 1 to 6% on the principal loan amount.
Late Payment: The borrower may have to pay penalty if he or she has been unable to pay the monthly payment to the lender or the bank.
Documents Required For Small Loans In Pune
- Passport size photos
- Identity proof: Passport, Voter ID, Aadhaar card, Driving License
- Residence proof: Passport, landline bill, rental agreement
- Age proof: Passport, driving license, pan card or school certificate
- Pan card
- Income proof
- Bank statement: Up to last 6 months
- Employment proof