It may happen that you need a small payday loan to meet unexpected expenses, such as the purchase of a new car for example, a holiday package or a new computer or mobile phone.
Let’s see how to obtain small amount loans, to be allocated to the most disparate expenses.
The Loan figure
Usually, when thinking about a loan, the limits related to the maximum amount that can be requested are considered. The amount of disbursable money is calculated on the basis of the income that the person has, on his years and on the length of the loan that determines the installment.
This is to ensure that the contractor can cope with the debt quietly and regularly. But are there any minimum limits? What is meant by a small loan?
In recent years, in addition to large-scale Loans, the habit of requesting Small Loans has taken hold, disbursed and used for daily needs.
What is meant by small loans
The amount that is called small loan has not been clearly established by anyone and depends on the institution that provides the loan.
In principle, it is also possible to access the line of small loans to buy a new computer, a new refrigerator, or in general, any other household appliance.
In recent years, cell phones have also started to be purchased through small payday loans.
The characteristics of a small loan
The basic information you need to know is that small loans are addressed to the individual. They are therefore payday loans.
A payday loan is defined as a non-finalized loan granted to the person. Whoever obtains it does not have the obligation to allocate the money to the purchase of a particular good.
As for the figures, some institutions consider small loans those up to 5,000 USD. Others, however, indicate them up to 10,000 USD.
Some banks also offer up to $ 15,000 or $ 30,000 even defining these small loans.
Usually “cuts” are established or you can ask for one thousand, two thousand, five thousand or ten thousand USD. This is to make funding easier.
Loans from 500 USD to 3,000 have recently started to be considered as “micro credit”.
How to determine the amount that can be requested
The person is well aware of the amount of money he needs, but the income as well as the number of years with which he wants to return what has been received determine not only the installment, but also the feasibility of the operation.
The purposes of the small loan
As we said, when requesting a small loan, there is no need to say what we will use it for, although sometimes the lender may ask for it.
Being a non-finalized loan, there is no need to use the money received precisely for that asset indicated in the loan underwriting phase.
However, there is one thing that those who ask for a small loan should take into consideration: length.
For example, if it is a payday loan required to go on vacation, it would be better if the duration did not exceed one year. Otherwise you would find yourself, on the next holiday, still paying the installment.
In the case of the purchase of goods such as computers and mobile phones, the small loan should be of a duration proportionate to the value of the asset.
For example, in the case of a mobile phone, which after a few years could break or be replaced by a later model, the loan should not be of too long a duration.
Having said that, let’s see who could provide such a loan.
If the payday loan is aimed at the purchase of goods such as computers, appliances, furniture, electronics, but also cars, it could be the same operators to be affiliated with financing institutions.
This is the case of large distribution chains that rely on well-established circuits, such as Binary Lender, Fine bank, Agree Bank, but not only.
Today it is possible to buy by paying in installments, through a small payday loan also in the online store.
Most of the online stores that sell expensive goods, such as appliances, electronics, equipment, etc., have an agreement with institutions that offer financing.
If, on the other hand, you intend to make a small loan intended for a holiday, to pay off debts, or for any other need that does not include purchases in a shop, you can contact your bank directly or any other institution.
Banks are the first to offer small loans to their account holders. Then there are realities such as those mentioned above to which others are added.
These are always consumer credit institutions that often specialize in this sector of small and micro credit.
How to choose
Moving among all the offers on the market is not easy at all. Nowadays there are sites online where you can compare many offers to choose the best one.
When making a comparison, the same values must be used in all cases: length of the loan, sum required, if you are an employee, etc. This will result in truly comparable values.
You will also be able to check the rates applied and check which type of loan would best suit our needs.
Once you have found the two best options, it is time to talk to the staff, get a better explanation of how it works, know how much you will pay for total interest, preliminary and insurance costs, if any.
In general, small loans are not difficult to obtain and some of the subjects who could take advantage of this opportunity are certainly housewives, young people and pensioners.
The assignment of the Fifth
This type of loan has a particular form of repayment which takes place through a deduction from the salary, made by the employer, or from a pension by the pension institution.
Anyone who has an occasional job or does not have a fixed-term job can still, thanks to some institutions, have access to credit, even if to a lesser extent.
So as we have seen, there are many ways to get a small loan.
Now let’s see what documents are needed to request it.
Personal identification documents are required: identity card and tax code or health card. For employees, the paycheck and the CUD are required, while for self-employed workers, the income tax return is required. Pensioners must present the pension slip.
How long does it take to get a small loan?
Some institutions claim to be able to make a loan in one day. Fast loans can be obtained in two days and can also be requested online with a digital signature.
In principle, if all the necessary requirements are met, your bank could also provide it in a few days.
However, not all banking institutions are able to respond to the loan request in a short time. Some take fifteen days, others even a month.
Before taking out a loan, it is good to also inquire about the timing: on average how long does it take to know if the request has been approved?
Sometimes a loan application can be rejected. In this case you can contact another institution. It is not said that everyone evaluates in the same way, so it is worth trying.