The first, and most common way to get a loan for less than 5,000 dollars would be to borrow it from someone you know–family, friends, or co-worker. The advantages to this type of transaction is that 1) family, friends, and co-workers will generally give you very good terms on the loan (and many times they will not even charge you interest). The problems is that you are doing business with people and going into debt to people who you may not want to due to the stress that this can have on the relationship.
Getting a 1000 loan can be more difficult than you think. Unfortunately, at times getting a loan for 1000 can actually be more difficult than getting a 50000 loan. Yes, this may sound counter-intuitive, but it can be the truth. The reason is that generally speaking, someone who needs to borrow 1000 dollars is 1) a higher risk than someone looking to borrow 50,000 dollars, and 2) the reason is usually for a small purchase or to pay a bill vs needing the money for a business investment that can be backed by collateral.
However, this does not mean that getting the smaller loan is impossible, but it does mean that you may have to look at alternative ways to getting the money (i.e. other than a traditional bank or credit union).
A second way to get a small $1000 loan is through a pay-day loan center. These centers have gotten bad press the last few years, and for good reasons, so be careful. Essentially they will make a loan against a pre-dated check that you write to them. Sounds like a great idea, except that you have to write the check for $1,200 in order to get just $1,000–and that is for only a very short time period, maybe just one or two weeks. The advantages of this loan is that it’s quick or easy. The disadvantages are the extremely high costs and higher interest rates, so again make sure you are making a good, solid decision if this is the way you decide to get that 1000 loan.
