In this fast-paced world, urgent financial needs can arise at any time without warning, such as unexpected travel expenses, education fees, exam fees, sudden medical expenses, and many more.
To cover these suddenly arising expenses, there are many NBFCs or fintech platforms available for providing loans for any reason, such as tuition fees, household expenses, and utility bills, in a short time, even for small-ticket loans with short, flexible repayment tenures.
Reason For Choosing 12 Months Tenure of Repaying 20,000 Loans
- With a short repayment duration, the amount needed to pay for EMIs is still low, even for a 20,000 rupee loan with 12 months.
- Due to the low amount needed to repay a 20,000 rupee loan with interest each month, it becomes easy for the borrower to manage repaying the loan and live life without disturbance or sacrificing any needs.
- It also helps in building a credit history and increasing a credit score by paying small amounts each month on time, which builds trustworthiness and creditworthiness among lenders for borrowers who repay their loans.
- Their many lenders offer flexible repayment terms to borrowers, allowing them to repay their loans at their convenience.
Platforms Offering 20000 Loan For 12 Months
| Platform | Interest Rate (P.A.) | Disbursal Time | Processing Fee |
| SmartCoin | 22% to 30% | 1 Day | ₹100 to ₹500 |
| Nira | 18% to 26% | 24 to 48 Hours | ₹350 to ₹500 |
| MoneyTap | 13% to 26% | Same Day | Depend on Usage |
| PaySense | 16% to 28% | 1 to 2 Days | Up to 2% of Loan Amount Approved |
| KreditBee | 18% to 30% | Within 24 Hours | ₹100 to ₹500 |
| CASHe | 24% to 30% | Few Minutes | ₹200 Onwards |
| mPokket | 24% to 36% | Instant For Regular Users | ₹50 to ₹200 |
| FlexSalary | 16% to 28% | Same Day | Depend on lender |
Eligibility Criteria For 20000 Loan For 12 Months
✅ Age: 21 to 60 Year Old
✅ Monthly Income: Minimum Salary up to 12,000
✅ Employment Status: Salary Person, Self-Employed, Freelancer, Gig Worker
✅ CIBIL Credit Score: 600 or Above. Prefer
✅ Residential Status: Indian Citizen
Document Required For Applying for a 20000 Loan For 12 Months
- Identity Proof: Aadhaar Card, PAN Card, Voter ID
- Address Proof: Utility Bill, Aadhaar Card, Passport
- Income Proof: Salary Slip (Only Salary Person), Bank statement of last 3-6 months, ITR (Self Employed)
- Photograph: 2 to 3 Recent Passport-Size Photo
- Bank Account: Active Bank Account in Applicant Name
What is the ideal situation for a 20,000 loan for 12 months?
This amount of loan can be taken for various purposes and reasons, like
- For Travel: Urgent travel booking and other travel expenses can be covered by that amount.
- Personal Needs: A new mobile or other household appliance can be purchased with that small ticket loan amount for a short period.
- Education: For any short-term educational course, instant approval loans can be applied for.
- Start-Ups: Small business owners can take small ticket loans for restocking inventory.
- Emergencies: This instant disbursal loan can help cover emergency medical bills at the present time.
Check Out : Aditya Birla Personal Loan Apply Online & Eligibility, Interest Rate
Conclusion
A small loan with a tenure of at least 12 months is the best option for borrowers who need small financial support and want to repay the loan with small installments each month. In India, there are several banks, both government and private, as well as NBFCs like Aditya Birla Capital Limited (ABCL) and online platforms like SmartCoin, MoneyTap, CreditBee, and Paysense, which are mentioned above. These platforms help startups grow, so without wasting any time, you should check them instantly.
Frequently Asked Questions for 20000 loan for 12 months
Is it possible to obtain a 20,000 loan without a credit score?
Yes, there are many lenders available to provide such loans without checking credit scores or credit histories, but they may be offered at a higher interest rate than usual.
What happened to miss any EMI payment?
Missing any EMI payment will result in an additional amount, such as late payment charges and penalties, and will also negatively impact the borrower’s credit history and credit score.
