{"id":25612,"date":"2022-03-11T08:09:00","date_gmt":"2022-03-11T08:09:00","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=25612"},"modified":"2025-02-17T11:21:37","modified_gmt":"2025-02-17T05:51:37","slug":"small-personal-loan-vs-personal-loan-what-is-the-difference","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/small-personal-loan-vs-personal-loan-what-is-the-difference\/","title":{"rendered":"Small Personal Loan Vs Personal Loan: What is the Difference?"},"content":{"rendered":"\n

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If you\u2019re confused between personal and small personal loan, think of the latter as a subset of the former. Simply put, small personal credit or loan is similar to personal finance, except that the loaned amount is lesser, and the tenure is shorter.<\/p>\n\n\n\n

However, both personal and small personal finance are unsecured loans, meaning you don’t need to pledge any collateral while applying for them. All you need is a decent CIBIL score. This feature makes both these types of loans easily accessible, and they often help borrowers meet a variety of big and small expenses.<\/p>\n\n\n\n

Additional Read:<\/strong> How to Apply for a Personal Loan in 5 Simple Steps?<\/a><\/p>\n\n\n\n

Small personal finance vs personal loan: differences<\/strong><\/h2>\n\n\n\n

Even though these two loan types have several shared features, as mentioned above, they also come with many differences that are worth mentioning. Here they are:<\/p>\n\n\n\n

Parameters<\/strong><\/td>Small personal finance<\/strong><\/td>Personal finance<\/strong><\/td><\/tr>
Loan amount<\/td>Here, the total loan amount is usually lower than personal finance. Thus, the prefix \u2018small\u2019 before its name! The exact maximum amount for this type of loan<\/a> can vary from lender to lender.\u00a0<\/td>Personal finance comes with a significantly higher loan limit. Many people use it for big-ticket purchases like funding an entire wedding, higher education, renovating their property.<\/td><\/tr>
Interest rate<\/td>Since a small loan can range between thousands and a couple of lakhs of rupees, the lending stakes here remain lower than its counterpart. Therefore, the interest rates at which this loan is given are also lower.<\/td>Since this loan comes with high lending limits, which can run into several lakhs of rupees, depending on the lender, it usually comes at a slightly higher interest rate.<\/td><\/tr>
Tenure<\/td>Small personal finance is usually offered with a shorter tenure because the total loaned amount is less.<\/td>Personal finance typically comes with longer tenures, as the total repayment amount is bigger, which can take a few years to be comfortably repaid by the borrower.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Common benefits of small personal finance and personal finance<\/strong><\/h2>\n\n\n\n

Think of small personal finance<\/a> as a mini version of personal finance. No wonder both of them have more commonalities than differences. These include:<\/p>\n\n\n\n