Personal Loan for Emergency Expenses

You can think of emergency expenses like unexpected storms. They appear out of nowhere and turn a calm day into a situation that requires ‘immediate attention’. And just as an umbrella provides protection against rain, a personal loan can offer the financial cover to handle such unforeseen expenses. It acts like a safety net, helping you to get access to funds quickly. This way, you can weather the storm and keep things under control till they turn normal. 

What is a personal loan?

It is an unsecured loan that you can use for various purposes. Whether it’s for personal or professional requirements, you can easily borrow funds from lending institutions. And the best part is that there are no limitations on how you want the loan amount to be utilised.

Why should you choose a personal loan for emergencies? 

Here are some key reasons why a personal loan is an ideal choice during emergencies:  

Quick access to funds

The span between the application and approval is short. So, you can make a request as soon as you meet with an emergency and get access to funds. The disbursement also doesn’t take much time, the funds are directly credited to your bank account.

Get higher loan amount with ease 

Many lenders provide loans up to ₹25 lakhs and more without collateral. You can easily apply for a personal loan online and receive funds after approval within hours. However, you must note that the loan amount depends on your credit score and financial profile. 

No need for collateral 

You do not need to have collateral for obtaining a personal loan. This is the primary reason why you should consider personal loans for emergency expenses. 

What kind of emergency expenses can you cover with a personal loan? 

Medical  

Unexpected medical expenses can quickly deplete savings. A personal loan provides the financial support needed to access quality care without sacrificing your peace of mind or health. This allows recovery without the added stress of financial strain. 

Education 

Quality education often comes with high costs and little warning. A personal loan offers the necessary funds to cover tuition and other related expenses on time. Thus, ensuring access to education without financial stress. 

Home  

Home makeovers often are associated with higher costs. And sometimes, they require more money than initially planned. When these bills start to add up, you can apply and get a personal loan. Whether it’s for new fittings, furnishings or more, you can upgrade your home without financial worries. 

Relocation 

Moving to a new house, city or country can be exciting but financially demanding. Whether for personal or professional reasons, there are chances of incurring unexpected costs. A personal loan can help cover these expenses and ease the financial stress of relocating. 

Tips for choosing personal loans for emergency expenses 

Check for a pre-approved offer 

There are lenders who provide pre-approved loans, which can be beneficial for emergencies as the borrowing process is faster. Since your profile is already vetted, you only need to accept the offer to get funds. With some lenders, this can be done in just a few minutes using a mobile banking app. 

Get a flexi loan facility  

A flexi personal loan is similar to a line of credit, helpful during emergencies. You get approved for a specific loan amount and can withdraw funds as needed. Here, you only pay interest on what you use. This type of loan is useful in emergencies since you may not know exactly how much money you will need. 

Avoid high-interest credit options 

In emergencies, it’s tempting to use high-interest credit cards or payday loans, but personal loans usually have lower interest rates. This makes them a more affordable option for covering unexpected expenses. This way, you can manage costs without the burden of high-interest debt. 

Consider a co-borrower  

Adding a co-applicant to your loan can increase your eligibility and help you get a better interest rate. A co-applicant, such as a family member or friend with a strong credit history, boosts the lender’s confidence. This can lead to loan approval on better terms. 

Endnote 

Before you apply for a personal loan online, there are certain factors to consider. First, you should check your credit score and assess your financial standing. If you’ve made your decision to take a loan, compare different options offered by various lenders. You should check the eligibility criteria and then evaluate interest, associated fees and repayment terms to make the right choice. Finally, gather the necessary documents to seamlessly apply for a personal loan online.