Mini Loans or Small Personal Loans: All You Need to Know

You never know when a financial crunch can creep up on you. There might be a variety of reasons behind the ‘why’ but what do you do once you face such a crisis? Thankfully, there is an easy way out to avoid this situation, with the help of a mini loan or a personal loan of a small amount.

If you want a small personal loan with low interest rates and a lot of flexibility, then apply from Airtel Finance for the best offers. In this blog, we will help explain how a mini loan or small personal loan helps, what it means and more.

What is a mini loan?

Mini loans are short-term, unsecured personal loans. Unlike traditional loans, they are designed to be easy and quick to obtain, often with minimal documentation and approval times that can be as short as a few minutes to a couple of days. These loans are meant to cover small, immediate expenses and are usually repaid over a short period, ranging from a few weeks to a few months.

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What are the benefits of choosing a mini loan?

Here is why you could benefit from a mini loan:

Get quicker funds 

One of the primary advantages of mini loans is the speed of approval and disbursement. Many lenders offer same-day or next-day funding, making it an ideal option for emergencies.

Very less documents

Applying for a mini loan usually requires less paperwork compared to traditional loans. Basic personal information, proof of income, and some KYC documents for personal loans (such as Aadhaar card, PAN card, etc.) are often sufficient to get started.

No collateral needed

Mini loans are typically unsecured, meaning you don’t need to pledge any assets as collateral. This reduces the risk for borrowers who may not have valuable assets to offer.

Added flexibility

Unlike some loans that are earmarked for specific purposes, mini loans can be used for virtually any personal expense, from paying utility bills to covering unexpected travel costs. Sudden cash crunch? A mini loan or a small personal loan is the way to go!

Helps to build a good credit history

For individuals with limited or poor credit history, successfully repaying a mini loan can help build or improve their credit score, potentially opening doors to better financial products in the future, such as a credit card and others.

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How can I apply for a mini loan from Airtel Finance?

Applying for a mini loan is straightforward. Here’s a step-by-step guide to the process:

• Download the Airtel Thanks app on your phone. You will find it on Google Play Store or Apple App Store.
• Login to the app with the required credentials.
• On the Shop tab, select Airtel Finance.
• Choose the personal loan banner.
• Enter your details and how much loan you want.
• Submit the details and get your personal loan offer.
• Once you have accepted the personal loan offer, submit the rest of the documents and information as required.
• Your loan request will be processed, and you will get the funds within 24 hours.

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Borrow responsibly and maintain your credit score

While mini loans can be a lifeline during financial crunches, it’s essential to borrow responsibly to avoid falling into debt traps. Here are some tips on how can manage your finances better, even when you have borrowed money:

• Make sure that you only borrow what you need. It can be tempting to borrow more than you need, especially if the lender offers a higher loan amount. However, remember that the more you borrow, the more you have to repay with interest on top of it.
• Go through the terms and conditions repeatedly and ensure that you do not miss out any minute details.
• Before you borrow money, make sure to use a personal loan EMI calculator to see how the loan will affect your finances in the future.
• Always remember to pay your personal loan EMIs on time. Ensure that you also pay other bills such as credit card bills or others, always on time.

Mini loans or small personal loans are very convenient for those who only require a small capital boost for a comparatively lesser amount of time. Regardless of the ease of the application process, you should always remember that everything that you borrow accrues additional interest.