A personal loan is an unsecured type of loan that can help you get funds for a number of reasons. With an instant loan, you can borrow money to make any substantial purchase or get instant funds to meet any emergency. Therefore, this multipurpose loan is a great option to get the required finances needing any collateral.
In recent years, digital lending through instant loan online apps has made access to loans easier. You can complete the borrowing process – from application to document submission – with just a few clicks on these apps or lenders’ websites. This makes it a powerful tool to manage your finances.
As such, an instant loan can come in handy when dealing with an emergency. Read on to learn how to use a personal loan when dealing with an emergency.
Access a hefty sanction with ease
Modern lenders now offer an instant loan of ₹25 Lakhs, with some offering an even higher limit. Access to such a sanction helps when dealing with emergencies, especially if you aren’t certain about how much you will need.
Moreover, these instruments are unsecured, so you can qualify for the full sanction, without any collateral. Simply apply on the respective website or loan app, and the funds get transferred to your account within a few hours.
However, do note that the amount you get depends on your financial profile and your credit score. Thankfully, over the last few years, these processes have improved as well. Today, lenders have better access to data, and can often offer the amount you need with ease.
Avail a pre-approved offer for instant funding
In some cases, you may get pre-approved for a large loan. These are specialised offers that certain lenders extend to customers. In an emergency, such offers can be very helpful simply because it expedites the borrowing process.
Here, you don’t need to go through the regular application process as the lender has already vetted your profile. You simply need to check for a personal loan offer and authorise disbursal. In fact, some lenders offer a one-click facility on their dedicated loan app, which is also linked to your bank account. In such cases, the entire process can take only a few minutes.
Opt for an appropriate tenure, based on your finances
When availing an instant personal loan for an emergency, pay attention to your repayment responsibilities too. One way to utilise these loans favourably during difficult times is to ensure that it is affordable. The easiest to achieve this is to pick a tenure that allows for a comfortable EMI.
Thankfully, most personal loan instruments will allow you to pick a tenure that goes up to five years or 60 months. Remember, a longer tenure equates to a smaller EMI and vice versa.
Avail the flexi loan facility, if offered
The flexi personal loan is a specialised type, offered by select lenders. It is quite similar to a line of credit, and it can be very helpful when dealing with an emergency. Simply put, a flexi personal loan is one where you get approved for a sanction and are assigned a loan account.
Here, you can withdraw from your account, as needed, and are only charged interest on the amount you withdraw. You don’t pay interest on the entire sanction, and you can even prepay the amount you withdraw. This facility can be beneficial when dealing with an emergency as you may not always know how much money you will require.
Armed with this information, scout for the best personal loan offers for all your financial emergencies on the Bajaj Markets App. Here, you can compare some of the best personal loan providers and apply with just a click. To get started, simply download the instant loan online app from the Google Play Store or the App Store on your smartphone.