During emergency situations that require immediate funds, individuals usually look at their savings account or opt for lending from a friend or family members.
However, the funds available with these sources may be limited and not suffice the situation at hand. So, what can one do?
In such cases, an Instant Personal Loan can be one of the most accessible solutions. Rather than utilizing all savings and having nothing for the future, such a loan can help you in emergency situations.
Being unsecured, borrowers don’t need to pledge an asset as collateral for availing Personal Loans. Further, banks and NBFCs don’t restrict the application of such loans to limited purposes.
NBFCs also provide pre-approved offers on Personal Loans, home loan, business loans, and a host of other financial products. These offer lower the time taken for availing financing and also simplify the process.
Thus, getting a Personal Loan becomes rapid and can address several emergency situations like:
1) Medical Emergency
Although highly exceptional, some may come across a medical emergency that can call for a significant investment. Situations like a surgery or a chronic disease treatment will require immediate funds that many may find unfeasible to gather.
With a processing time of about less than 24 hours, one can have their hands on the required cash instantly when they apply for a Personal Loan.
2) Debt Consolidation
When faced with a cash deficit, a business can face hurdles when the due date of repayment approaches. If failed to do so, the relationship between a company and its creditors can be hampered.
Continuous delays in payment may result in vendors lowering their line of credit. Some may even seize doing business with the company.
These situations can pose a threat to a business and may even restrict it from attaining growth.
As Personal Loan criteria are minimal, self-employed individuals can opt for such financing options for debt consolidation.
3) Clearing Outstanding Taxes
Non-filing of income tax alone will invite a 5% penalty per month on all outstanding taxes. Failing to pay taxes will cause the individual to pay a 0.5% penalty on the outstanding tax amount.
Also, in some cases, the individual may also have to serve jail time of 3 months to up to 7 years.
Hence, paying off income tax is a must and that too within the due date. However, when faced with a cash crunch, individuals may find it hard to address this urgency.
So, banks and NBFCs, with minimum Personal Loan eligibility criteria provide this quick and easy financing option. With such a loan, one can pay off the taxes and avoid any unnecessary penalties or jail time.
4) Educational Expenses
Sending the child to a renowned university in India or a foreign country is another cause for the need of funds.
Banks and NBFCs can provide up to Rs. 25 lakh with a Personal Loan that can be useful for funding higher education. Not just tuition fees, but such a loan can also be used for hostel charges, paying for books, and other expenses.
Hence, with a Personal Loan, one can avail emergency funds for all of the situations mentioned above. The presence of a Personal Loan EMI calculator with websites of reputable banks and NBFCs makes evaluating the loan even quicker and straightforward.