When it comes to loans, the amount you can apply for can vary greatly from lender to lender. Each lender has the right to set their own minimum loan amount, so it is impossible to determine the lowest amount available. However, there are some lenders that offer personal loans as low as a few hundred dollars. It is important to understand where to get a small loan, how to compare lenders and apply for a loan, and what alternatives are available.
Most personal loans are unsecured, meaning that no collateral is required; the application is assessed based on the creditworthiness and financial health of the applicant. These amounts are usually in the thousands, as personal loans are often used for large one-time purchases and are repaid in fixed installments over several years. If your credit card is almost maxed out and you don't want to spend any more money, a personal loan can cover emergency plane tickets, holiday shopping expenses, groceries, or any other miscellaneous expenses that come up over a couple of weeks. You can get a small personal loan by applying to a bank, credit union, or online lender and waiting 1-10 business days for approval and funding.
No two lenders are alike, and the minimum loan amount you qualify for may vary depending on who you borrow from and the amount of loan you apply for. The APR is the cost of credit as an annual rate and reflects both your interest rate and an opening fee of 0.99% to 5.99% of your loan amount, which will be deducted from any loan income you receive. Your monthly income after paying other debts and living expenses should be enough to cover payments on the new personal loan. A personal loan calculator can help you see what rate and repayment period you need to get an affordable monthly payment.
To apply for a personal loan with Upgrade, you must provide your tax returns for the most recent two years, IRS tax transcripts, and bank statements for the last 40 days. If a personal loan seems like your best option, make sure your credit is in the best possible shape to qualify for a low interest rate and good terms. Many credit unions look beyond your credit score and consider factors such as your status as a credit union member when determining if you qualify for a personal loan and what rate you will receive. To decide if this type of financing might be right for you, it is important to understand how small personal loans work.
Now that you have a better idea of what a small unsecured personal loan is, it's a good idea to take a look at some lenders who have valuable offers. Rates will vary depending on many factors, including your creditworthiness (for example, credit score and credit history) and the duration of your loan (for example, 36-month loan rates are generally lower than 72-month loan rates).