This Is How A Personal Loan Can Be Helpful In An Emergency
Life is unpredictable and an unforeseen emergency can strike anytime. Whether it is a personal, financial or medical emergency, one thing that can help you handle any emergency is your finances. Though most people maintain an emergency fund for such situations, at times, it may not suffice their needs. In such situations, a personal loan can come to your aid.
A personal loan is a type of secured credit that can give you the cash you require to pay for unforeseen expenses. Be it a medical emergency or auto repair, personal loans comes with unrestricted end use. You can also this fund for home improvement or debt consolidation, replacing important gadgets or paying for post treatment care.
You can easily apply for an instant personal loan through an online loan app. This financing tool suits best when your funding requirement is less than Rs. 1.5 lakh. For higher loan amounts, you can check with your existing lender or any other banking or non-backing institute.
Read on to discover some smart tips to use a personal loan to meet your emergencies.
How Does A Personal Loan Help During An Emergency?
Nobody can predict a crisis. A medical emergency or a breakdown of your car in the middle of nowhere, can demand a huge finance. In these circumstances, an online loan app can be your best aid.
Here is how a personal loan can help.
- Easy application and process
When an emergency arises, you cannot wait weeks for the money to arrive in your account. A personal loan is beneficial in this situation. You receive the money immediately because personal loans have a quick processing time. If all the requirements are met, many lenders will approve your application and provide you with cash within a few hours.
You can apply for a personal loan quickly and easily by following simple steps. You can download an online loan app and avail the loan by submitting the digital copies of your documents.
- Loans without collateral
A personal loan is an unsecured loan. Therefore, the borrower is not required to put up any security. This makes the entire loan process much easier for the borrower. They also do not have to put up their valuable assets against the loan.
In addition to this, not having to put up collateral makes this a suitable loan option for people who do not have substantial wealth. The lender solely relies on your salary and credit score to analyse your repayment capability. Thus, a personal loan is a suitable funding option for anyone who is a responsible borrower and who have a stable monthly income.
- No restrictions on end-use
An emergency often means you have to cater to different expenses. Whether it is a medical expense or a home repair expense, there are different things that might need finances. It is also difficult to estimate all these expenses before hand.
A personal loan offers you the flexibility of unrestricted end-use. This means when you avail this loan, the loan amount gets credited into your account and you can use this loan amount in any way you deem fit. You do not need to provide the lender proof of your spending.
- Quick disbursals
One of the biggest advantages of availing a personal loan is the quick disbursal. You can easily apply for the loan through an online loan app from anywhere, and the loan amount would get credited into your account within 48 hours.
However, you have to meet the eligibility requirements cited by your lender. You should also furnish the necessary documents to get quick approval for the loan. It is always better to be well prepared for such emergencies and keep the digital copy of your documents in the cloud.
- Flexibile repayment options
Personal loans come with flexible repayment terms. Most lenders provide loan term option of one to five years. Depending on your loan affordability, loan requirement and other factors, you can choose a tenure between 12 to 60 months.
But it is always better to keep your loan term as less as possible. This not only reduces your total interest pay out. But also helps you in getting rid of the loan burden at the earliest. Make sure to use a loan EMI calculator to find the right balance between your loan amount, loan tenure and monthly EMI.
When met with an emergency, the first and foremost thing you need is adequate finance. Nothing can match the speed and efficiency of a personal loan. You can just download an online loan app on your phone and apply for the loan in a few taps.
However, it is important to note here that an emergency can lead to a mental freeze which can result in poor financial decisions. To avoid such situation, you must take your financial decision after much thought and consideration. Make approximate calculations and apply for a loan amount that you absolutely need. With prudent borrowing and disciplined repayment, you can always count on a personal loan to help you in an emergency!