Small loans are intended to cover unexpected expenses or just fill the gap in your budget before your next paycheck. In no case should you expect loans to solve every money problem as they come with fees and obligations. Being a responsible borrower is the key to benefiting from this process and making it work for you without experiencing further damages to your budget.
The main reasons people take short-term loans include:
Medical emergency,
Utility bills,
Urgent repairs,
Mortgage/Rent payment
Holiday gifts,
Debt payout, etc.