Need Emergency Loans?
What are emergency personal loans?
Emergency personal loans are unsecured loans that can be availed without any collateral or security. These loans are called emergency because they are processed quickly, usually within a few hours or a day. The loan amount can range from a few thousand to lakhs of rupees, depending on the lender and the borrower’s creditworthiness.
How do emergency personal loans work?
To avail an emergency personal loan, you need to apply for it online through the lender’s website or mobile app. You will need to fill in your personal details, income details, and upload some documents such as PAN card, Aadhaar card, bank statements, and salary slips. Once the lender verifies your information and approves your loan application, the loan amount will be disbursed to your bank account.
The repayment period for emergency personal loans can vary from a few months to a few years, depending on the loan amount and the lender’s policies. The interest rates on these loans can also vary depending on your credit score and the lender’s policies.
Benefits of taking an emergency personal loan
- Quick processing: Emergency personal loans are processed quickly, which makes them a great option when you need urgent cash.
- No collateral required: You do not need to provide any collateral or security to avail an emergency personal loan, which makes them accessible to a wider range of people.
- Flexible repayment options: Emergency personal loans offer flexible repayment options, which mean you can choose a repayment period that suits your financial situation.
- Can be used for any purpose: You can use the loan amount for any purpose, such as medical emergencies, home renovations, or debt consolidation.
Drawbacks of taking an emergency personal loan
- High interest rates: Emergency personal loans can have higher interest rates compared to other types of loans, which can increase your overall cost of borrowing.
- Short repayment period: Some lenders offer short repayment periods for emergency personal loans, which can increase your monthly instalments and put a strain on your finances.
- Strict eligibility criteria: Some lenders have strict eligibility criteria for emergency personal loans, which can make it difficult for some people to avail them.
Things to keep in mind before applying for an emergency personal loan
- Check your credit score: Your credit score plays a crucial role in determining your eligibility and interest rates for an emergency personal loan. Make sure to check your credit score before applying. A credit score of 750+ is considered as ideal to process a personal loan
- Compare lenders: Different lenders offer different interest rates, repayment periods, and other terms and conditions for emergency personal loans. Compare different lenders to find the best deal for you.
- Read the terms and conditions carefully: Make sure to read the terms and conditions of the loan agreement carefully before signing it. Understand the interest rates, fees, repayment period, and other details before availing the loan.
Don’t borrow more than you need: Borrow only the amount you need and can afford to repay. Borrowing more than your need can increase your interest rates and overall cost of borrowing.