How a Personal Loan can help you out in emergencies

How a Personal Loan can help you out in emergencies

While it is common for borrowers to apply for small loans to fulfil goals like travelling or festive expenses, personal loans can also double up as emergency loans. Since these loans are unsecured, you don’t have to worry about pledging collateral to get funds. For the same reasons, the application and approval process of these personal emergency loans is also faster. The best part is that you can access funds in less than 24 hours from top lenders so that you can address the emergency without delay. Using these funds, you can address urgent medical needs, home repair, education costs and more with ease.

During a cash crunch, all you need to do is meet the usually simple personal loan eligibility terms and check the personal loan interest rates to ensure you’re getting a competitive offer. To make the most of such a personal loan, apply online to save even more time and effort. To get an in-depth understanding of what makes these personal emergency loans so convenient, read on.

Ample finance without collateral

Time is of the essence when you are dealing with an emergency and pledging an asset as security takes time both at your end and the lender’s side to fulfil various verification protocols. Since personal emergency loans do away with this requirement, you can apply faster. What’s more, personal loans give you ample funds based on your profile as a borrower. All you need to do is ensure you have a good credit score of 700-750 and more to apply stress-free.

Have simple eligibility criteria so you apply easily 

Personal loan eligibility parameters are usually easy to meet, so you can qualify for the loan without worrying about getting a co-applicant or a guarantor involved. This helps you speed up your application. Most lenders ask for stable employment, set a minimum salary requirement from Rs.25,000 to Rs.35,000 based on the city you reside in, have an age bracket of 23 to 55 years, and require you to be an Indian citizen and resident.

Require minimal documents for faster approval 

Paperwork can often be the most cumbersome aspect when you’re applying for credit, whether it is small loans or big-ticket funding. However, personal loans allow you to apply without hassles by requiring the least number of documents. To get approval for such emergency loans, all you need to provide are KYC documents, income and employment proofs.

Offer Flexi facility for repayment relief 

One feature of personal loans that make them a great resource during emergencies is that some lenders offer them a unique Flexi facility. A Flexi Personal Loan allows you to address a cash crunch better as it allows you to borrow all at once or as and when you need to from the sanctioned loan amount. Here, you only need to pay interest on what you withdraw, rather than the entire loan amount. Moreover, you have the option to pay only the interest as your monthly instalment, which reduces your EMI by up to 45% in the initial tenor. This helps ease cash flow and gives you a way to address the emergency first without worrying about repayment.

Enjoy greater convenience with online calculators and application 

While getting the loan approved and accessing funds is key during an emergency, smart financial planning beforehand can help you repay without strain. This is where you can use the online personal loan eligibility calculator, EMI calculator and part-prepayment calculator. These tools make checking if you qualify for the loan, forecasting your monthly instalments and reducing debt faster by making part-prepayments much easier, respectively. Additionally, lenders today have a 100% digital process to apply with a short and simple online application form. This further hastens the process of application during a cash crunch, when you may be strapped for time.

Get expedited approval with pre-approved loan offers 

Finally, pre-approved loan offers make personal loans the ideal emergency loans and may eliminate the need for you to submit documents altogether or help you get a higher loan amount. These are usually offered by lenders to existing customers, whose paperwork and other details may already be in their records. In such cases, you can apply for a personal loan with just a click and get funds faster too.

These 6 characteristics of personal loans make them a popular choice during emergencies, but to ensure repayment is as smooth as application, choose the right lender. For instance, Bajaj Finserv Instant Personal Loans come with all these perks while also offering funds up to Rs.25 lakh at competitive personal loan interest rates and a long tenor up to 5 years to simplify repayment. The associated fees and charges of this loan are also transparent, which means you don’t have surprises later, and the Flexi Personal Loan further ensures you can make monthly payments with ease. Additionally, you can get the funds in your bank account in just 24 hours from approval, so you can tackle emergencies quickly. To explore further, check your pre-approved offer now.

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