The Benefits of Using A Personal Loan for Family Emergencies
Are you financially prepared to handle family emergencies? Most Indians, especially youngsters, miss this very basic step of financial management. They hardly have any contingency funds to handle emergencies. That’s why many Indian financial institutions offer quick loans to help you meet emergencies.
You can simply download the best loan app and apply for an instant loan within minutes. These instant loans have made financing easy, convenient and available to a wide sector of borrowers.
Due to their high flexibility, personal loans are suitable for various situations. You can use these funds to pay for medical bills, insurance premiums, home renovations, accidental repairs, and much more. These quick loans don’t require many documents and the eligibility requirements are also simple. So, if you haven’t filled out your emergency funds account yet, you can easily rely on a quick loan.
Read on to discover the benefits of using a personal loan for family emergencies.
Why Are Personal Loans Good for Emergencies?
Due to their flexible usage and instant processing, personal loans are best suited for emergency situations. Here are 6 benefits of using a personal loan for meeting family emergencies.
- Instant processing
Unanticipated situations are often time-sensitive. Whether you need to clear a medical bill or pay for repairs, the nature of these emergencies is urgent. As such, having to wait for days to get the loan amount into your account would make no sense. That’s why quick loans offer you quick processing where the loan amount is credited into your account within 24 to 48 hours.
Just make sure that you meet all the eligibility rules cited by the lender and furnish the requested documents correctly. They may further expedite the process if you are an existing customer, or you have a pre-approved loan offer from the lender.
- High-value loan amount
Personal loans offer you high-value funding to cover all your emergency expenses. The loan amount typically depends on your salary, credit score, current obligations and repayment capacity. You must submit all income documents to get a loan amount of higher value.
In addition to this, you can also ask an eligible co-borrower to sign the loan application. This will help you get a loan of even higher value. Use a loan EMI calculator to estimate the loan EMI burden and apply for a loan that you can afford to repay.
- Flexibility
Personal offers high flexibility in terms of usage as well as repayment. You can use this loan amount to accommodate any kind of emergency. The loan amount is disbursed into your account and you can use this amount in any way you see fit.
Also, in terms of repayment, you can repay a personal loan in small monthly instalments. You can choose your repayment tenure and scheduled date for EMI deduction at your convenience. This makes a personal loan highly suitable for you.
- No Collateral
One of the main benefits of a personal loan is that you do not need to put up any collateral to get this loan. This makes it a suitable option for people who do not have any valuable assets to pledge. It is also suitable for those who do not want to put their assets at risk. The lender approves a specific loan amount based on your income and capacity to repay the loan.
5. Minimal documentation
Quick loans are offered to you against minimal documentation. Most lenders ask for basic KYC documents along with your income proof and passport-sized photo. Make sure to have all your documents stored in the cloud. This will enable you to apply for a quick loan from anywhere and at any time. You don’t need to go through the hassles of visiting a bank. This becomes very helpful when you are stuck in a hospital and you are in urgent need of cash.
- Do not disturb your financial planning
Financial planning is common among earning people. You may be saving for months to buy a phone or to book your flights. But an emergency can easily strip off that cash reservoir. But with a quick loan, you can easily manage these expenses without straining your finances.
Final Thoughts
A personal loan can be the perfect choice for accommodating emergency needs. It does not disturb your savings, brings you a lump sum amount and allows you easy repayment with smaller instalments.
Just make sure to find out the best loan app or the best loan offer extended by a bank. Use a loan EMI calculator to calculate the loan amount and tenure according to your loan EMI affordability. Remember, an emergency may impair your rational thinking, but always borrow only the amount that you need and borrow from a reputed lender only after thorough research.