A financial emergency can strike you at any given time, for which you might need to break your savings. Alternatively, you can avail an emergency loan instead. Such a short-term credit facility helps you tackle unforeseen financial emergencies. These advances do not require you to mortgage any collateral – thus the loan sanctioning becomes quicker with nominal paperwork.
So, if you require emergency funds you can consider these financing options –
(A) Personal loans
If you hold a healthy credit score and a steady income source, you can opt for a collateral-free personal loan. With an emergency personal loan like this, you can enjoy benefits like –
a- Instant approval and fast disbursal
As obtaining personal loans do not require you to pledge an asset, it guarantees less hassles in procurement. There is minimum documentation involved, and the disbursement also takes very less time.
This loan facility can be used in case of emergencies like home renovation in the event of a fire outbreak. Your house would need remodelling, which can be met with such advances.
Further, you are not required to pay an exuberant amount of interest as the rates offered are mostly affordable. However, the required CIBIL score for a personal loan is high, i.e. a minimum score around or above 750 is required to obtain personal loans at competitive rates.
b- No end use restriction
The greatest advantage of personal loans is that the funds can be used without any restriction. You can obtain this emergency loan to meet–
1- Hospitalisation cost,
2- Medical treatment expenses,
3- Abroad education,
4- Wedding expenses, and more
You can also apply for a personal loan online to finance other unplanned expenses like making a big purchase in case household disasters strike unexpectedly. Due to its instant processing and fast disbursal facility, you can save a lot of time in meeting unforeseen cash crunches as well as conveniently repay the same compared to other expensive short-term alternatives.
c- No fixed range on loan amount
Unlike other short-term advances, personal loan application does not require defining the reason to avail the funds. Only the CIBIL score, repayment capability and income is taken into consideration, while sanctioning a loan amount as per your requirements.
Further, if you are an existing customer of lenders like Bajaj Finserv, you can also enjoy pre-approved offers. These pre-approved offers are applicable on personal loans, business loans, home loans, and numerous other financial products. These offers streamline the process of availing finances by faster loan processing through nominal paperwork. You can check your pre-approved offer by sharing a few necessary details like name and contact number.
(B) Business loan
If you are in urgent need of funds to increase your working capital, or invest in infrastructure and maintain inventory, you can obtain an emergency loan for business. This instant loan facility provides your business the boost to help it grow and scale new heights with improved competitiveness and profitability.
However, this loan facility is customised to fund your small business. Alternatively, you can also avail the loan to meet the short-term financial requirements for your business. As the funds avail have no end use restriction, they can be used to cover any emergency expense like hospitalisation, medication, etc.
Remember to apply for a loan only if you face financial crunch and possess the ability to repay the loan in time. Taking an instant loan to cater not-so-urgent requirements can impinge on the other financial goals as well. That being said, while there are numerous credit options available in the market – compare between lenders to secure a loan on the most suitable financial terms and fulfil all your wishes with the personal loan.