How does Emergency Loan WorkAn emergency loan works well to cover unexpected expenses and costs. These are unsecured loans with no collateral and security requirement. Hence, it is approved instantly to meet emergency financial needs. An emergency loan can be used conveniently to clear medical bills, utility bills, rental payments, repair costs and funeral expenses.
Emergency loans are of four types:
- Personal loans are helpful to collate emergency cash. The credit score, repayment history and interest rate affect personal loan approvals. Personal loans are approved and disbursed instantly to support emergency monetary needs as they are collateral-free.
- Title/Ownershiploans demand shifting the title of your asset, such as a car in exchange for liquid cash. In case the loan is not paid, the lender can seize the vehicle.
- Payday loans are short-term loans with a low amount range. These are expected to be repaid by the next pay cycle of your company.
- Credit card loans offer instant cash through the available credit balance. Interest rates are generally higher on credit card advances.
Several businesses, careers and homes have survived financial crisis all thanks to the emergency loans made available just in time. Here are the primary benefits of opting for emergency loans:
- Minimal paperwork that saves a considerable amount of time
- Online application of emergency loan makes application and approval easier
- Flexible repayment options balance outstanding EMIs
- Best substitute to keep your savings safe
- Saves borrowers from going bankrupt
- Visit the lender website or download an instant loan app
- Enter authentic personal details in the given fields
- Submit the supporting documents such as identity proof and income papers
- Final approval is received after documents verification
- The loan amount is disbursed within 48hours
A salaried or a self-employed individual with a minimum salary of 15000 to 20000 Rs can apply for an emergency loan using the below documents:
- Aadhaar Card
- PAN Card
- Proof of address
- Salary and income documents
Q.1 How does an emergency loan work?
A: An emergency loan works similar to personal loans. It offers immediate finance to clear urgent and unexpected expenses.
Q.2 How can I get an emergency loan in India?
A: Emergency loans in India are available easily on online platforms via lender websites and instant loan apps, available freely on Google Play Store.
Q.3 What are Emergency Loans?
A: Emergency loansare types of personal loan best for dealing with immediate expenses that are unavoidable and can pile up if not cleared on time.