There are times when you need a small amount of money like a few hundred pounds extra to meet some immediate expenses like car accident, medical expenses, pet care, business purpose etc. As these expenses could not fit into your monthly budget, you need an additional financial support in the form of small loans. As the name suggests these loans involve lending of small amount of money for a comparatively shorter period of time. It can be any amount from £100 to £3000. However, it may vary according to the terms and conditions of the lender.
Why do you need small loans?
Small loans for business – You may need some quick bucks for a business start-up or business transactions.
Small personal loans – You may need money for any personal things and need not put any asset at stake for this
Small loan for bad credit – If you have not been able to make repayments of credit card then this loan will help you through it and get yourself out of the bad credit score
Different types of small loans:
Although types of small loans are not defined, one can still categorically describe them as under:
Small unsecured loans: These loans are given keeping the creditworthiness of the borrower in mind. These loans are not given against any tangible asset and so, they are called unsecured loans. Generally these loans are given to people with an excellent credit history. When you need a small amount of money then you can borrow from the bank or lender or credit providing company without keeping any assets at stake. This loan is repaid within a short period of time and with fix monthly amount decided by the provider. As these are unsecured loans, they generally charge a high APR.
Small Payday loans: When you have no alternative left for a loan or if you cannot contact the bank or any other lender, then an option of Payday loans can be tried. The loan comes with a clause that the borrowers will pay back the amount on the day of their salary or within a short time period of receiving their salary. These loans can be a quick solution but proves to be an extremely expensive bet if you cannot manage to pay it back on time.
Small loan from credit card: You can borrow small loans from your credit card companies. Many of them offer a 0% interest on credits offered on an introductory basis. So, leverage such schemes when you need a quick small loan and save yourself extra interest to be paid while paying back the loan. The interest free period is only for making purchases and if you withdraw money from your credit card then it will cost you high transfer fees. Therefore, when you need a loan to buy something then go for the credit card option.
Bank overdraft: Some of the banks provide a small amount of loan without charging interest for some time. These overdrafts are a good way to manage some money within a small notice. The only drawback is that if you fail to payback within the specified time then you have to pay high interest to the loan providing bank.
How to get small loans fast?
The loan passing will depend on the amount you need and the loan provider. For example, you can get Payday loans within few hours while a bank offering unsecured loan may take three days or a couple of weeks to deliver the cash.
For people who need money fast, it is important to check the waiting period before making an application for the loan. You can discuss with the loan provider or check their terms and conditions online.
To get a small loan fast, you must have a good credit score so as to win the trust of the loan provider. Applying online takes less time than going to a company and doing all paperwork. It also processes things faster. If you have a mobile app then apply through it and you may get an instant response. If your application gets approved then they may send you cash within minutes. So, check with your loan provider for fast small loans.
With these details, you can easily get a small loan while sitting in the comfort of your house. Just one word of caution – be honest with your loan provider, do not hide any details. Otherwise, you may get last minute cancellation of the loan. For more about loans, check our loan guides on freepricecompare.com. You can also call us on 02034757476.