Small Personal Loan

A small personal loan, or a small loan, is an unsecured loan designed to meet urgent financial needs. With a quick and hassle-free paperless process, you can apply for a small loan online and get the funds you need without disrupting your monthly savings. Small loans provide a convenient way to handle emergencies, with flexible loan repayment tenures that allow you to repay according to your comfort. If you need quick financial assistance, small personal loans online can be the ideal solution.

Features and Benefits of a Small Personal Loan

Get convenient access to funds with these key benefits of a small finance loan:

Quick Online Approval: Check your eligibility, complete the online application, and receive quick loan approval.
Digital Loan Application: Our digital loan application process allows you to apply for a small loan anytime, ensuring a smooth and paperless experience.
Quick Loan Disbursement: After your loan approval, the approved loan amount is disbursed promptly to your bank account.
Flexible Loan Tenure: Choose a loan tenure ranging from 12–60 months, designed to keep EMIs (Equated Monthly Instalments) manageable.
Best-in-Class Interest Rates: Enjoy competitive interest rates on small personal loans, starting at only 13%* per annum.

Eligibility Criteria to Get a Small Personal Loan

Small personal loan eligibility depends on factors such as age, monthly earnings, and credit score. A personal loan eligibility calculator can help prospective applicants determine the loan amount they may qualify for.

Factors	Salaried Employees	Self-Employed Individuals
Age	Must be between 21 and 65 years	Must be between 21 and 65 years
Nationality	Must be a resident Indian	Must be a resident Indian
Credit Score/CIBIL Score	Must be 705 or above	Must be 700 or above
Work/Business Experience	Must have at least 1 year of work experience, with the last 6 months under the current employer	Business must be at least 3 years old
Minimum Income	Monthly income must be at least Rs. 16,000	Annual turnover must cross the minimum threshold, varying based on the profession
EMI (Equated Monthly Instalment)	EMI should be a maximum of 60% - 70% of the monthly income	EMI should be a maximum of 65% of the monthly income

*Please note that this is only the basic eligibility criteria for a small loan. The final eligibility and loan approval will depend on several factors, including SMFG India Credit’s policy at the time of loan application.

Factors Affecting Small Loan Eligibility

When applying for a mini loan, lenders or NBFCs (Non-Banking Financial Companies) assess several factors to determine your eligibility. Here are the key aspects that influence your loan approval:

Credit Score

A higher CIBIL score for a personal loan indicates strong creditworthiness, improving your chances of approval with better interest rates. Conversely, a lower score may result in higher interest rates or even the rejection of your online small loan application.

Monthly Income

Lenders or NBFCs evaluate your monthly income to ensure you can comfortably manage EMI (Equated Monthly Instalment). A stable and sufficient income reassures lenders of your repayment ability. Generally, higher income levels (and low existing debts) can lead to better loan terms and access to higher loan amounts.

Employment Status

Personal loans for salaried individuals with steady employment are usually considered lower risk. Personal loans for self-employed applicants are also available, but they may need to provide additional documentation – such as CA-audited financials for the past 2 years – to verify income stability and repayment capacity.

Relationship with Lender

Having an existing account or a strong loan repayment history with a financial institution can improve your chances of approval and may qualify you for preferential interest rates on a small personal loan.

Documents Required for a Small Personal Loan

Submit these personal loan documents when applying for a small loan online:

Type of Document	Salaried Employees	Self-Employed Individuals
PAN Card	PAN card or Form 60 must be submitted by both the applicant and the co-applicant (if applicable)	PAN card or Form 60 must be submitted by both the applicant and the co-applicant (if applicable)
Proof of Identity and Proof of Address (any one)	Passport Driving Licence Aadhaar Voter ID provided by the Election Commission of India MNREGA Job Card authorised by a State Government officer National Population Register listing name and address	Passport Driving Licence Aadhaar Voter ID provided by the Election Commission of India MNREGA Job Card authorised by a State Government officer National Population Register listing name and address
Signature Proof (any one)	Passport PAN	Passport PAN
Bank Statements	Bank account statements for the last 6 months	Bank account statements for the last 6 months
Income Documents	Salary slips for the last 3 months Income Tax Returns or Form 16	Balance sheet and profit and loss account, income computation for the last 2 years Income Tax Returns for the last 2 years IT Assessment or Clearance certificate Income Tax challans or TDS certificate (Form 16A) OR Form 26AS for income declared in ITR
Business Proof (any one)	NA	Licence Registration Certificate GST Number

Key Guidelines:

If your small personal loan application includes a co-applicant, their PAN, KYC, and other basic documents will also be required. The above list is only indicative; depending on your chosen loan, your credit profile, and policies at the time of loan application, SMFG India Credit may ask for additional documentation.

Keep original identity and address proofs, along with supporting documents, available for any in-person verification. This may not be necessary if digital KYC is completed as per norms.
Where your address proof shows a different address than your current residence, you may provide one of the recognised Deemed OVDs. Click here to view the approved options.
An Officially Valid Document (OVD) showing your current address must be submitted within 3 months from the date on which you share your initial address proof.

Small Personal Loan Fees and Charges

Your personal loan interest rate depends on factors such as credit score, income stability, existing liabilities, and overall eligibility. The following table lists the key fees and charges applicable to a small personal loan:

Fees & Charges	Amount Chargeable
Personal Loan Interest Rate	Starting at 13%* per annum
Processing Fee	Up to 3.75% of the total loan amount + GST
Late Payment Charges	2% per month (24% per annum) on overdue amount calculated on day to day basis payable from the relevant due date till date of actual payment
Cheque/ECS/NACH Dishonour Charges (per dishonour of cheque/ECS/NACH per presentation)	INR 500
Loan Cancellation Charges (loan cancelled before the first EMI)	INR 1000 + GST
Loan Tenure	Up to 60 months

Repayment of a Small Personal Loan

Personal loan interest rates are set based on the customers’ credit history. A small personal loan is usually repaid in one to five years, but it may vary depending on the policy you opt for. There is also an option of repaying the mini loan before the maturity date without any extra fees, which could be a great way to save on the interest*. A personal loan EMI calculator can assist in determining your monthly loan repayment amount and planning your budget effectively.

How to Apply for a Small Personal Loan Online

Applying for a small personal loan online is a simple and quick process at SMFG India Credit:

Mobile Authentication: Enter your mobile number, PAN, pincode, and employment type (salaried or self-employed), then validate the number using the OTP.
Enter Key Details: Provide information about your income and mention any ongoing EMIs or obligations.
View and Choose an Offer: A loan offer will be generated based on criteria like your income profile, credit score, and existing debt. Pick the offer that fits your preference.
Complete KYC and Submit the Form: Complete digital KYC and upload documents if needed according to our policy at the time of application. Submit the form to finalise the process.

*Loan requests above Rs. 2.50 lakhs may undergo further review. A representative will connect with you if additional details are required.

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.