In today’s world, the requirement to have access to instant cash can happen at any time. You may or may not have the necessary amount in your account to meet the need. Selling gold, or breaking an FD may take time, and may not be a good idea in comparison to taking a loan. Many lenders offer loans for meeting emergency expenses.
An emergency could be a medical requirement or some unplanned expense that you need to meet without wasting time. Then, what you need is quick cash, and that can be availed easily through an emergency loan, and you are covered comfortably in time. In an emergency, when you are experiencing stress, you don’t have enough time to calculate the EMIs or stand in long queues for approval. So, while many lending institutions do not offer an emergency loan, they do offer a personal loan that is approved and disbursed instantly.
Following are the features and benefits of a personal loan that you can take during an emergency:
- Instant Access and Approval
One of the best features of this loan is the instant approval if you are eligible for the loan and have uploaded all the documents required by the lender. The application forms are quick to fill and submit. Many lenders have apps which you can download on your phone and complete the process. For example, the personal loan EMI calculator of Fullerton India can help with instant calculations and help you decide the loan you can take without wasting time. An EMI calculator is a free and easy-to-use tool available on the website.
- Online Access to the Account
Whether you apply via the website or through an app, today loans offer 24/7 access online and with a click. Approval of the loan after verification, receiving the approved amount, and making the EMI payments; you can access all the information at your convenience.
- Minimal Documentation
Many lenders today understand and support the need for instant access to funds during emergencies. Hence, while the processes are hassle-free, the documentation is minimal. As mentioned above, if you upload all the documents required, your chances of getting a loan approved instantly become higher. Some of the documents required are Proof of identity, Proof of address, PAN Card, Salary slip or income proof, and bank statement.
How to Apply for a Personal Loan During an Emergency?
Before applying for the loan, it is advisable to check your CIBIL Score as many lenders require at least a score of 750 to approve your loan application.
- Check out other eligibility criteria, and if you meet them, only then should you fill out the application form. Remember, that if you fill in the application form without meeting the eligibility, your loan application will get rejected. Rejection of a loan application leads to a lower credit score, and this is something you must avoid.
- While you may require an x amount as a loan, it is your eligibility and repayment capacity that will decide the actual amount that you can get. Use an online EMI calculator to fill in the required amount that will meet your emergency fund requirement. After that, input the tenure which is up to five years and the interest rate. It will calculate the EMI, and this will give you an idea of your eligibility.
- In case, you cannot meet the fund requirement individually; you can take a joint loan with a sibling, spouse or child. If your co-borrower has a high credit score, a higher loan amount may be approved.
- If you are not sure about the loan amount or your eligibility, always reach out to a customer care representative to help you. They will help you understand the terms and know your monthly instalment for a chosen tenure.
Remember that the money is disbursed to your account as soon as the loan is approved by your lending institution. Once it is in your account, you can use it to pay for the emergency.
In many situations, it is not possible to have the funds at your disposal to meet the expenses associated with an emergency. It is a good idea to know about personal loans that can be availed during an emergency. Instant approvals become immensely essential, and as such, you need to know the lenders, their processes and the loan amount you can get. One thing you must always remember is to use the personal loan EMI calculator when applying for an emergency loan.