Life is unpredictable. You never know which way your life will go and what you will be facing in the next couple of days. You may face a financial emergency, maybe in the form of a sudden medical expense, a car repair, or an urgent home repair, wreaking havoc on your budget. These are the moments when you would need emergency personal loans.
This emergency cash would be nothing less than a lifeline for you. It would bring your breath back and keep you going in tough times. But there are a lot of things you must know before applying for a personal loan for emergencies. Dive in and understand what you should do while applying for an emergency loan online or offline.
What Are Emergency Loans?
Well, the fundamental question you should have an answer to, right? If explained in formal terms, emergency personal loans are financial tools that are designed to provide quick cash during tough circumstances. In simple words, an emergency loan provides you with some cash when you are in dire need of it. Unlike other kinds of loans, these are unsecured loans where you do not need to provide any collateral to avail them. These loans offer a swift solution when you need funds urgently and hence, they have a faster approval process compared to other loan types.
What Are the Features of an Emergency Loan?
Emergency personal loans come with the following important features:
Fast Approval and Disbursement: Emergency loans are processed quickly, often within a few hours to a day, so you can get the money when you need it most.
No Collateral Needed: These loans are unsecured and hence, you do not have to offer any assets to get the loan amount.
Flexible Loan Amount: You can borrow small or large amounts depending on what you need. With CASHe, you can avail loans ranging from ₹1,000 to ₹4,00,000.
Good Repayment Term: Here, you usually have a good time to repay the loan, which could be a few months to a couple of years.
Higher Interest Rates: Because these loans are quick and do not require collateral, they may come with higher interest rates than other types of loans.
Why Get Personal Loans for Emergencies?
Emergency personal loans are quite helpful during unexpected situations. Here’s why you should consider personal loans for emergencies:
- When you face sudden expenses like medical bills or urgent repairs, an emergency loan can give you the money you need right away.
- As these loans do not require you to put up any assets, you would not risk losing anything valuable if you are unable to repay the loan on time.
- You can use the loan for any emergency, whether it is a health issue, car repair, or anything else.
- Repaying the emergency loan on time can also improve your credit score.
Also Read: Emergency loan Requirement! CASHe to your Rescue
Eligibility Criteria for Online Emergency Loans
You need to meet the following loan requirements to get online emergency loans on CASHe:
Age: You should be above 21 years of age
Income: You need to have a minimum monthly income of ₹15,000
Credit Score: Make sure to have a good credit score (usually 650 or above)
KYC Documents: Submit basic documents like your Aadhaar card, PAN card, and address proof for verification.
What to Use a Personal Loan Emergency For
You can use an emergency personal loan to:
- Pay for unexpected medical treatments
- Fix urgent problems in your home
- Cover costs if your car breaks down or your bike needs repair
- Take care of last-minute travel expenses due to family emergencies
- Consolidate and pay off high-interest debts to reduce your financial burden
How to Know a Personal Loan is the Best Option for an Emergency
You should go for an emergency personal loan only when:
- You need cash quickly and have no other loan options
- You can repay the loan within the agreed time. If you are unsure, consider other options to avoid more financial stress.
- The loan amount is enough to cover your needs without putting you into unnecessary debt.
Should I Get a Loan for an Emergency?
Here’s what you can do before you decide to take a loan for an emergency:
- Evaluate your situation and check if you have no other way to cover an urgent expense
- Check other options and see if you can use your savings.
- Have a loan repayment plan so that you repay the loan on time and do not miss out on any payments to damage your credit score.
Conclusion
So, if you are facing unexpected financial challenges in your life, then emergency loans will certainly rescue you.
Now, if you are looking for an emergency loan with competitive interest rates and good loan terms, then download CASHe, your emergency loan app. CASHe offers emergency loans online with a fast approval process, flexible loan amounts of up to ₹4 lakhs and an easy application method.
