Are you looking for a small personal loan but don’t know where to get it from? We share where to get a small personal loan right here.
You can use several ways to get a small personal loan, but some are harder and costlier than others. Knowing what to look for, where to look, and how to get a small personal loan is essential if you need the money when faced with unexpected expenses. You never want to be in a situation where you owe someone money or where you have to apply for a loan.
However, your circumstances dictate your need for additional money, and that is where a small personal loan may help you. If you need a small personal loan and want to know where to get one from, you have come to the right place. We discuss everything in detail here.
What Is a Small Personal Loan?
The amount of a small personal loan is difficult to define, as it is somewhere between $2,000 to $3,000. Small personal loans can be used for covering emergencies like fixing a vehicle, medical bills, household expenses, and home repairs. It is significantly easier to qualify for and repay a small personal loan because there isn’t much money put on the line.
However, it also means fewer options, and you will experience a harder time finding favorable terms for a small personal loan. That’s because most financial institutions and lenders don’t prefer giving out small personal loans because there are lower returns on their investment.
Where to Get a Small Personal Loan?
Even though most lenders and financial institutions mainly deal in large loans, you can still find plenty of places that can offer you favorable terms for a small personal loan. These include the following:
Most lenders who function online deal in unsecured personal loans that can be used for anything. It’s easier to prequalify for the loan, and it only takes a couple of days to fill the application and receive the funds in your bank account.
•Credit Unions and Banks
Most credit unions and banks also offer small personal loans. They will let you apply online, but you must visit their physical branch before releasing the funds. There are also payday alternative loans (PALs), which allow you to borrow small sums of money even with bad credit.
•Peer-to-Peer (P2P) Lenders
Peer-to-peer lenders are online lending platforms where they match investors who have funds with borrowers who want funds. They offer a quick application process and low interest rates, but not every P2P platform provides small loans, so you may need to shop around for one.
•Family and Friends
It’s not a great idea to borrow money from family and friends as it can strain relationships. However, it can be an excellent option to take a small personal loan from someone close to you if they have the funds and are willing to help loan it to you. However, you should ensure you write up and sign a written agreement that outlines the terms and repayment of the loan before you take the money.
You can also read: How to apply for Wells Fargo Home Mortgage Loans
•Pawn and Title Loans
If you have valuable assets or an expensive vehicle, you can apply for an auto title loan or a pawn loan. However, you must be cautious with these types of loans as they charge higher interest rates, and if you fail to repay the loan, you may lose your vehicle or property.
If you require small personal loans of $1,000 or less than that, payday loans can be an excellent option, but their higher fees mean they are expensive. You should only consider applying for payday loans when you have no other choice and need funds quickly.