Learn How To Apply For An Emergency Loan During Financial Crisis - Loan Trivia

Breaking

Full-Width Version (true/false)

Wednesday, 28 April 2021

Learn How To Apply For An Emergency Loan During Financial Crisis

 



As of the last financial year 2019-2020, urgencies accounted for one of the top 5 reasons why individuals availed emergency loans in India.

  • As per a September 2020 report, as much as 37% of the millennial demographic availed funding to address emergency financing needs, especially medical urgencies – a remarkable hike from 31% last year.

Personal loans, available presently at a short notice, have come out as one of the most convenient forms of borrowing during emergencies. Also, as the salaried class is back to availing personal loans, as indicated by the RBI, here’s a quick look at things to check and adopt when availing such credit for better chances of approval.

  • As of July ending 2020, personal loans for individuals with regular income, including the salaried class, witnessed a Y-O-Y surge of 13.3%.

Application for an emergency loan – Things to know

  1. Identification of funding needs

The foremost aspect to consider when availing emergency funding such as an instant personal loan is the recognition of the total financial requirement. Although it can get challenging to determine the total funding need during an emergency, an approximate idea of the personal loan amount required helps identify a suitable lender along with the personal loan eligibility criteria needed.

  1. Interest rate determination

Next, run a market comparison on a third-party website about different interest rates by leading lenders on an emergency loan and select the most affordable option. You can also make this assessment for your repayment liability with the use of a personal loan calculator. 

Doing so shall help identify the most affordable funding option as per the personal loan interest rate applicable.

  1. Lender selection

Moving on, timely availability of finances during an emergency is equally essential. In such an instance, it is ideal to make lender selection based on the ease of approval and disbursal. Select lenders in the market provide such credit approval within a few minutes of application for eligible individuals. Coupled with minimised documentation and a streamlined personal loan verification process, these advances are easy to avail of.

The availability of pre-approved personal loans in the market only makes it easier to avail of funding during an emergency. NBFCs like Bajaj Finserv bring this facility for online borrowers.

The company makes the process of financing hassle-free and less time-consuming with their pre-approved offers, which are available on a range of financial products, including business loans, credit cards, and personal loans. You need to provide only your name and contact details to check your pre-approved offer.

  1. Repayment options

Financial discipline also involves charting a plan even during emergency funding. Hence, it is equally essential to explore your repayment options with the lender and decide on the best-suited one. While the standard repayment process involves making regular EMI payments towards the total loan liability, you can also plan for prepayment either through part-pre-payment or foreclosure at low to no additional charges. Make sure that you know how to plan your personal loan EMI repayment better for maximised benefits.

  1. Loan application

Once all the borrowing decisions are made, an individual can proceed to apply for the emergency loan with the selected lender. Make sure to check the eligibility requirements laid by the lender and whether you fulfil them before applying.

The standard eligibility requirement for a personal loan for emergency include – 

  • An age range of 23 to 55 years.

  • Employment with an MNC, a public or a private company.

  • Resident Indian citizen.

  • Minimum monthly salary as per the city of residence.

  • A minimum credit score of 750.

Note that individuals with a low credit score can also avail of a personal loan, albeit with stringent terms of lending.

Also, the document requirements are minimal and essentially include KYC and income documents.

Once done, proceed to apply with your lender online for hassle-free approval in the minimum possible time. Keep the essential documents handy to streamline and fast-track the application process.




No comments:

Post a comment