Why Do Millennials Today Prefer Taking Small Cash Loans?

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So you need to pay an important bill, but your paycheck is yet to come. What do you do? Ask a friend or family member for an advance and get done with paying the bill, repaying the one who helped later. But, what if you need a considerably large amount on an emergency basis? Who do you turn to? Friends and family members may not always have the required Small Cash Loan at the very moment, nor will your employer furnish you salary weeks before the due date.

What is Small Cash Loan

The best option to get out of a spiral of the financial crisis is, taking an instant Small Cash Loan and repaying it monthly from your income. The millennials today are turning to payday loans to bridge the gap between financial requirements and funds. This is because of increasing expenses and crucial activities that cannot wait for the paycheck to arrive.

For instance, you have to pay home rent on the 20th of the month, but the salary will arrive on the 1st of the next month, and the landlord cannot wait that long for the rent. As the young population has a good earning capacity, they can manage to pay regular EMIs towards Small Cash Loan.

Why Take Instant Loans?

As a millennial, you may want to live your life on own terms and experience financial freedom. A small cash loan is a perfect match for those who have an urgent monetary need, are a salaried individual who receives a monthly income in the bank account, and has required documents to apply for the Small Cash Loans. Under an instant loan, you can borrow between Rs. 10,000 and Rs. 50,000 and get the cash transferred to the bank account within 24 hours or less.

Thus, attaining finance becomes a hassle-free task and you do not even have to ask anyone for providing you monetary support.

  • While older generations believed in saving up money and pay for their basic needs, the millennial believes in investing money and using their income smartly to purchase important commodities or sponsor their dreams.
  • There is no holding back to the dreams of the youth because a small cash loan will help monetarily. However, there have been cases where young people become over-dependent on short-term loans and get into a debt cycle that they cannot escape.
  • Why payday loans gaining popularity among the working youth of today is because the loan facility is unsecured. It means there is no need to submit collateral.

Thus the short-term fund acts as good as a personal loan because through the borrowing you can fulfill any expenses, such as a wedding, travel, education, loan for home repair, medical treatment, debt consolidation, etc.  It is possible to apply for this small cash loan online with a lending institution. Traditional banks and NBFCs may not provide a small amount of loan, but third-party financial companies may.

Importance of Credit Score for Small Cash Loan

Your credit score may not be important, however, your financial history must be decent. A CIBIL score of 650+ is desirable. Since the loan is unsecured, the lending institution will check your repayment capacity. The interest rate charged will depend on loan tenure, amount, and your financial profile.

The tenure of the loan itself will be just a few months (usually up to 3 months), so you can repay the loan soon and get out of debt, while not stressing your bank balance at all. The loan amount sanctioned will be considering your financial liabilities, so you can easily pay off the loan within a timeframe.

Also Read: Best HDFC Credit Cards | Home Loan Interest Rate

How to Wisely Approach for Small Cash Loans?

It is vital to realize that taking a small cash loan is for managing expenses you cannot pay for. You should only borrow money if you can repay in time or it will simply add burden to finances. Rather build the habit of keeping off unnecessary expenses and save funds for necessary expenses. However, if the financial planning still leaves you out of money, then you can, of course, choose instant small cash loans as the last option.

  • An instant loan works like an advance salary, because you pay the EMIs from your income, almost like using your salary for paying for your needs.
  • The advantage of a small cash loan is, you can even use it for business purposes. However, you have to be currently salaried to obtain the funds.
  • Minimal documentation is another reason why millennial chooses such loans. As a borrower, you have to submit only your residence, identity proof, income proof, salary slip, and few recent passport-sized photographs.

How to Apply for Small Cash Loan?

As a youth of the country, you may aspire to rise above others and leave no stone unturned to achieve your goals. There is no point waiting for opportunities to walk up to you, rather grabbing the same yourself. And in the realization of this journey, small cash loans are your perfect companion to serve the necessary financial aid in times of emergencies.

  • You can just visit the website of the loan provider and quickly fill the application form.
  • Submit soft-copy of KYC documents, income proof, bank statements, etc as asked by the financial institution.
  • After the loan application, the credit management team of the bank will review the details and check your loan eligibility.
  • You will then receive a callback or intimation from the financial institution as to the status of your loan application. If the application is approved, you will be told about the sanctioned loan amount.
  • After loan approval, the funds will be transferred to you without any delays. It is as easy as it sounds.

So, if you have any urgent financial requirements in your business or personal life, do not hesitate from taking a small cash loan. Make sure to repay the loan in a timely manner as repayments will have an effect on your credit score, which will further decide how eligible you are to avail new small cash loan in the future. You can negotiate for the best interest rate, terms, and conditions for a new loan with a CIBIL score over 700 and closer to 900.

You May Also Like to Read: Small Business Loan in India

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