How Do I Get a Small Personal Loan

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A personal loan is excellent for consolidating debt or financing a home improvement project. We rely on personal loans to finance their vacation, medical expense and weddings. After all, these three things are getting expensive day by day.

Accumulating finances for big purchases like an AC or a washing machine isn’t easy. These are urgent necessities but having cash in hand is a blessing most people are blessed with. If you aren’t after a considerable amount that would finance your trip or wedding, then you are in the right place. 

We will share our tips for getting a small personal loan in this blog post, so keep reading to learn more.

Getting a Small Personal Loan 

When you don’t need a lot but a small amount, you don’t want to take more than what you need. The interest will be on the total amount, and you’ll have to pay back more than what you borrowed. So here are ways to obtain a small personal loan

  • Ask People You Know

It’s pretty obvious, but most people don’t know how to ask for money. They are reluctant because they don’t know how to say the magic words. It’s essential to think through before asking someone for money

 because your best friend or a family member could turn you down. 

However, if you request them a loan, they might think twice. The key to asking for a small personal loan without giving up your self-esteem is to propose an interest rate and return period. 

9 out of 10 people will turn down interest and help you out. However, if someone agrees to your term, make sure you pay them back the total amount plus interest. 

  • Run the Numbers 

Before you ask someone for money, be it a financial institution or a friend, always run the numbers. If you think you can afford the required amount by selling something unimportant, do it. However, if you can’t wait that long, promise your lender you’ll pay back once your item is sold or give it to your lender to sell it for you. This will help you win your lenders trust. Plus, you won’t damage your self-esteem in the process. 

  • Go to a Bank

Going to a bank means you are willing to pay excessive interest and share your credit history. However, banks don’t lend money so quickly. They’ll run a complete check on your payment history and view your credit score. After that, the bank will decide your creditworthiness. If you seem fair, the bank will lend you money. However, you’ll have to pay within a set period at a specific or variable interest rate. 

  • Consider Small Loan Providers 

Small loan providers can easily be found throughout Australia. These businesses will lend you money within a day. Plus, the loan amount won’t affect your credit score. However, small loan providers can financially accommodate you up to $5000. 

This might be a tiny amount for some people, but it can change someone’s life. Lightning Loans can help you secure the amount you need to finance your monthly expense or add money to something you couldn’t afford before. 

It’s an easy way to buy what you want to pay for emergencies. Small loan providers are fair, but their interest rate is a bit high. However, considering their fast service, the interest rate is somewhat justifiable. 

  • Use Your Credit Card?

Most Australians are reluctant to use their credit card because of high-interest rates. However, when it’s an emergency, you don’t have any choice. A credit card can quickly rescue you from a medical emergency. However, if you will buy an unnecessary item with your credit card, we’d advise you to reconsider. 

Credit cards have a high-interest rate, and you have to pay within a month or less. If you fail to pay your due amount, your credit score will take a substantial hit. 

If your credit score drops, you’ll have trouble getting a loan from banks and other financial institutions. So think twice before pulling your credit card out of your wallet. 

Final Verdict

A small personal loan might be what you need to buy a car, wedding ring or that perfect bridal dress. However, when you are trying to be independent, you avoid asking others for money. After all, there are financial services that’ll gladly loan you a small amount. Plus, you’ll have plenty of time to return your borrowed amount. So there is nothing to worry about!