Everything you need to know about emergency loans

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Emergency Loan 101: Everything You Need To Know About Emergency Loans

New Delhi, January 21 (KNN) Life is highly unpredictable. Be it any event, happy or sad, one can put you in a state of distress if you don’t have enough finances on hand. In such times, getting an emergency loan can be of great help as the loan amount can help you deal with different financial situations which might otherwise disturb your peace of mind. Using an emergency loan can help cover wedding expenses, medical bills, education costs, and even home improvement expenses for your or your child’s child. Realizing that emergencies create urgency for the need for funds, many FinTech companies and NBFCs in India have started offering instant personal loans at low interest rates. Read this article to learn all about getting an emergency loan in India.

What is an emergency loan?

An emergency loan is an unsecured personal loan that you can use to meet different financial needs. This type of loan is offered without any collateral at low interest rates with flexible repayment options. The loan amount can be used for travel, for the purchase of a smartphone, a laptop or even for the purchase of a vehicle. In case of shortage of funds in any situation, you can get emergency loan in India just by going to the lender’s website or app and get the loan disbursed immediately. So, getting an emergency loan is the right option to meet the demands for quick cash in an emergency.

Eligibility criteria for obtaining an emergency loan

To qualify for an online emergency loan in India, it is important that you meet the eligibility criteria below.

— You must be between 21 and 60 years old
— You must be Indian citizen
— You must be employed by a public, private or government company
— You should have a minimum wage of Rs. 17,000
— You must have a minimum credit score of 650

It is important to note that the eligibility requirements may vary from one lender to another.

Documents required to obtain an emergency loan

Below is the list of documents to provide to obtain an emergency loan. The list may vary from lender to lender as well as your credit profile.

— Proof of address i.e. Aadhar card, utility bills, passport or driver’s license
— Proof of identity, i.e. PAN card, driver’s license, passport
— Income documents, i.e. payslip, form 16
— Bank statement

The payslip and bank statement are required to help the lender verify your employment and salary details. Few of the lenders in India may require you to provide a payslip and bank statement for the past 3 months, while few may require you to provide a statement for the past 6 months.

How to apply for an emergency loan?

If you are a salaried professional, having a minimum monthly salary of Rs. 17,000 and are employed by a private, public or government entity, then you can apply for an emergency loan by following the steps below.

— Visit the lender’s app or website
— Log in to the app or website using your Gmail or Facebook address
— Fill in the required personal and business information
— TP submit KYC Details
— Upload documents i.e. address proof, identity proof and income documents
— After approval, submit bank statement and additional details
— Get the disbursement within 24-48 hours

When applying for an emergency loan, it is essential that you have a good credit rating and meet the lender’s eligibility criteria so that your loan application is not rejected. You can use a personal loan eligibility calculator to get an estimate of the loan amount for which you are eligible.

Benefits of emergency loans

No warranty required: To get an emergency loan, you don’t have to offer the lender any collateral. This ensures that your assets are safe with you and that you don’t risk losing them in case you are unable to repay the loan.

Minimum documents: The loan application process is fairly straightforward and does not require any physical documentation process. You can submit minimal documents like proof of address, proof of identity, and income documents to get your loan approved.

Flexible repayment options: An emergency loan is provided for a flexible term of 12-60 months, which allows you to easily repay the loan. The length of the loan can vary from one lender to another and also depends on your eligibility criteria.

Instant disbursement: After loan approval, the emergency loan amount is paid into your bank account in just 24-48 hours. Few lenders in India offer 10 second disbursement, which makes it easy for you to finance your emergency needs.

Use the amount for any purpose: The emergency loan amount can be used to meet different kinds of financial requirements including vehicle repairs, home improvement, medical bill payment, wedding expenses and others.

Conclusion

Obtain a emergency loan in India is therefore convenient and one of the best options to meet your hassle-free financial needs.

Warning: This story was edited by Sneha Lukka. The point of view and opinion expressed in the article are of the author.


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