A personal loan is indeed the best financing avenue that can help you handle any emergency. Whether it is a medical bill that you need to pay or repairing bill for your home or vehicle, a personal loan is your trump card. A personal loan comes with unrestricted end use, zero collateral, easy eligibility and minimal documentation. You can either apply for a salary loanor an instant personal loan.These loans are super easy to access and can be used for any purpose.
You can easily apply for an online loan, by downloading a loan app or by visiting a lender’s website. But before submitting your loan application there are a few things that you must know about availing a loan.
Salary loan vs Instant personal loan
A salary loan is a special type of personal loan extended by many lenders to salaried employees. It is a short-term loan, usually 3 to 12 months long, given to employees based on their monthly salary. The biggest advantage of a salary loan is that you can avail one despite having low credit score.
However, if you do not qualify for a salary loan, you can still avail an instant personal loan to meet your emergency funding necessities. An instant personal loan has many perks like comparative interest rate and longer tenure, but you need a solid credit score to avail this loan.
Know How a Personal Loan Works Well as a Last Minute Financing for Emergency
1. Get instant approvals
One of the best things that makean onlineloan suitable for emergency financing is their instant availability. You only need to meet the eligibility requirements and submit the necessary documents. The loan application is processed within minutes and the loan amount is disbursed into your account shortly after.
2. Fast disbursal
Both salary loans and instant personal loans offer fast disbursals. Based on the lender you selected, you may receive the approved loan amount into your bank account within 24 to 48 hours. This makes these loans the perfect fit to meet your emergency needs. An online loan is processed much faster than other financing options.
3. Minimum documentation for fast processing
An onlineloanrequires minimal documentation for processing. Since it is an unsecured loan, you do not need to submit any papers related to collateral. Most lenders just seek your identity proof, address proof, age proof and income proof. You also need to submit your recent passport size photographs. In case, you have an existing relation with the lender then the process is further simplified. When you apply for a salary loan from the bank where you hold your salary account, the need for documentation is minimal.
4. Digitalized processing makes it convenient
Anonline loanmakes the entire process digitalized. From submitting your documents to disbursing your funds, the entire process is streamlined digitally. Youdo not need to visit the branch or stand in long queues to get approval for your loan. This makes a personal loan an ideal choice when you are stuck in an emergency.
5. High financing value for emergencies
Emergency situations can be financially demanding and can need immediate, high-value funding, which makes a personal loan an excellent choice for emergencies. An online loancomes with suitable funding value as per your eligibility. You can apply for a personal loan through a loan appand avail financing of up to Rs.1.5 lakh. For higher value funding, you can approach a bank or a non-banking financial corporation.
6. Funding available for all types of expenditures
Whether you apply for a salary loan or an instant personal loan, you can use the loan amount in any way you deem fit. These loans come with zero-restrictions to end use. This means no matter what your emergency is, a personal loan can help youmeet all your financial gaps. Be it a medical emergency or a travel emergency, a home repair emergency or a vehicle breakdown, a personal loan is your go-to solution.
With a host of lending institutions providing personal loans, you can easily avail an emergency loan at competitive interest rates. But an emergency can be very overwhelming making it difficult for you think rationally. However, a loan is a big financial burden.
That’s why, before you apply for an online loan,make sure to check all features and facilities available on the loans. Visit the lender’s website online or download an app, to compare the best loan offers. Also, while availing an emergency loan, you must also consider your repayment strategy.