Have some sudden expenses you need to take care of? An emergency always comes unannounced. You need to be well-equipped to handle it. During these turbulent times, you need immediate solutions — capable of solving the problem. If the problem is money, an emergency personal loan is a simple solution.
Emergency personal loans might be helpful when you need immediate access to funds. An emergency personal loan can help with many expenses. From medical bills to last-minute business funds, emergency loans can cover everything.
This article will help you determine whether an emergency personal loan is the best option for your emergency.
Why should you get an emergency loan to cover urgent expenses?
There are many advantages of emergency personal loans. Here are some reasons you should consider getting an emergency loan to cover expenses.
You get money without providing any collateral.
In an emergency, most lenders will be willing to provide an unsecured emergency personal loan. These loans do not need any collateral. This feature is essential for several reasons. The biggest reason is that you can get approvals faster. This is because your asset does not need to be valued. This process usually takes time.
Unsecured emergency loans are beneficial for people who do not have an asset. This way, you can get the loan without worrying about a mortgage.
The largest advantage of an emergency personal loan is that you are not required to provide any collateral. These types of loans can be used by anyone with or without an asset.
You can submit applications online.
You don’t have to leave your home to apply for a personal loan in an emergency. You can apply for an emergency personal loan online through the lender’s portal. The process is simple.
- Complete the required fields of an online form.
- Upload the documents. This includes your identity proof, address proof, income proof, etc.
- Wait for the approval.
The approval process, including the handing out of loan amount, is done online. Some lenders give applicants approval within 1-2 days. The loan amount is deposited in the account within a week. Some also provide pre-approved loans where the amount is deposited within 1-2 days.
This feature makes emergency personal loans an ideal solution. You can get the funds you need without going to the bank or the lender several times. This is especially important if you have a family or medical emergency and do not have time to spare.
You can get high-value sanctions.
Depending on the details of your profile, you can get an immediate go-ahead for a sanction of up to Rs. 25 lakh. The approval depends on the documents you provide as well as your income.
You get competitive interest rates.
The interest rate on an emergency personal loan is reasonable. Interest rates for emergency personal loans can be as low as 12.99% p.a. Furthermore, you can get a longer tenure to pay off the loan. However, this depends entirely on your profile. You will have to submit the necessary documentation to get the details.
You do not need to liquidate your investments.
If you have invested extra funds beforehand, you need not liquidate them. Getting an emergency loan will help you. This will prevent you from ruining an investment plan you have made. You can continue your SIPs without compromising on emergency expenses.
You can use the money for any emergency.
Emergency personal loans have no end-use restrictions. You can use the money for both business and personal expenses. The principal amount can be used for medical emergencies as well. The principal amount can also be used to pay for any last-minute expense your business may incur.
How do you manage an emergency personal loan?
Let us look at a couple of pointers on how you can manage a personal loan:
Make an accurate plan for the repayment of your loan by using the EMI calculator.
You should ensure your application for an emergency personal loan is well-prepared. Due to your lack of planning, you can be forced to take on debt beyond your financial means. And as a result, your monthly payments might wind up being far more than you had intended.
Preparation is a piece of cake when you use a personal loan interest calculator. These apps are available at no extra cost on the websites of many lending institutions. You can use them to determine the loan EMI, plan for loan payments, and find terms that apply to your situation. You can use the calculator to plan your finances.
You have to be disciplined.
When you receive an emergency personal loan from the right lender, you may get up to Rs. 25 million. However, your financial circumstances will determine your amount. You have to be disciplined when planning to pay back the loan. Plan your monthly expenses at the beginning of the month. You can also pay the EMI immediately after your income is credited.
Regardless, the fact that you won’t have to withdraw money from your savings is a significant burden lifted off your shoulder. So, you can get an emergency personal loan to cover an unforeseen need. You can borrow as much money as you need.
In a financial crisis, like a medical emergency, you may find it challenging to acquire the necessary funds. Having a savings account dedicated to emergencies is one of the best ways to deal with a sudden financial setback. But not everyone has a lot of savings, and even if you do sometimes they may not be enough.
An emergency personal loan is a simple and effective solution for this problem. You can ask Piramal Finance for more information and guidance.