How to get emergency loans for your business

Corporate Finance

The current financial scene overall has been quite overwhelming, with an increase in the number of financial institutions that are ready to grant you immediate access to a business loan. But we all know that aside from all other aspects, a matter of concern is the time factor. 

Though these financial bodies promise immediate loans, the application process’s duration makes us think otherwise. The delays in the application and in the process of getting your loan approved can make us think that it would be easier to opt for another type of loan instead. So, if you are in an emergency and need an instant business loan, it is best not to go for these loans. 

The other types of loans involve bundles of paperwork and high-worthy collateral you need to submit to the bank. Going for credit cards is also not a wise option in case of an emergency. This is because they are not responsible for granting immediate or high-level credit to the borrowers.

What Are Emergency Loans?

The perfect loan option you must go for during an emergency is the emergency loan. As the name suggests, these low quantum cash loans are immediately processed by banks, NFCs, and other leading institutions. 

The amount limit one can apply for in case of an emergency loan is between Rs. 5,000 to Rs. 5 Lakhs. The tenure for a business loan is flexible, ranging from 30 to 90 days. Also, one has to pay interest at the rate of 0.1% daily. 

Most people make use of this loan for medical emergencies, vacations, renovations, and other needs. Also, if you are looking for a business loan for a new business, an emergency loan is a perfect choice. 

How To Get An Emergency Loan?

There are different ways through which one can avail of an emergency loan. These include:

Cash Advances On Your Credit Card

You can get hold of cash advances by logging into your credit card. Instead of this, you can feel free to withdraw cash from the nearest ATM using your credit card. The amount withdrawn, along with your additional applicable charges, will be added to your monthly credit card statement. You are also likely to get some offers on your cash advances. Contact the customer care of your credit card to get knowledge about the same. 

Bank Overdraft

You will get hold of this special facility based on your account standing. Checking with your bank will tell you whether you are eligible for a bank overdraft facility or not. After talking with your bank manager, the bank will actuate your bank overdraft limit. 

Online Lenders

A simple and hassle-free method of getting an immediate loan is by raising a personal loan from a trusted online lender. This process will require little to no documents and will be completely based online. All you have to do is fill up the application form to apply for the loan and upload the asked documents. In two simple steps, the required loan amount will be transferred to your bank account within 1 to 2 days. 

Payday Loans

A common type of emergency loan, Payday loans are processed by numerous online lenders. If you wish to check whether you are eligible for this loan or not, just log in to their website, enter the necessary info and check it for yourself. By uploading some documents and typing in your personal info and salary details, your verification will be completed immediately. Lastly, you will get hold of a virtual credit card to withdraw the loan amount. 

Loans Against Insurance Policy And FD

You can get this facility through various banks as well as non-banking financial corporations. All you have to do is go to the nearest bank branch, give your documents or FDs and check whether you are eligible to get loans against them. By pledging your documents, you will be able to determine your loan amount. 

Home Equity Loans

You will get this loan above your already existing home loan opted through a specific bank. You will not be liable to submit any documents since you have already secured a loan from the same bank. It will depend on your financial history with the bank and your repayment history too. If you have a stable and positive relationship with this particular bank, you do not have to worry about the loan amount. You will get a decent amount with the proper rate of interest. 

The Bottom Line

An emergency loan is sure to come to your rescue whenever you are experiencing financial crunches and need some amount immediately. So, if you find yourself stuck in this situation, do not step back from attaining an emergency loan. This is also regarded as the best housing loan if you have to pay the amount required urgently.