A personal loan is an unsecured loan as the lender or the lending organization doesn’t ask for an asset as collateral if the borrower fails to repay the loan amount and interest at the end of the tenure. The money one borrows must be repaid over time, typically with interest.
While applying for a personal loan, consider the credibility of your CIBIL score, interest rates, and other charges required. Several websites have thorough information on the policies for applying for a personal loan in a particular month.
For calculating monthly payments like EMI and down payments, you can use an online EMI calculator. A personal loan EMI Calculator is an online tool that individuals or applicants can access to calculate the respective EMI to be paid off against the instant personal loan amount they have availed at the bank.
Instant personal loans are disbursed to salaried applicants across India via most banks and lending institutes.
Here are 5 instances where availing of an instant personal loan has been proven to be life-saving.
1. Medical Emergencies:
One of the most common reasons to apply for a personal loan is a medical emergency. Many users who have availed of health insurance find it difficult to pay medical bills due to rising costs. It is possible to exhaust your health insurance coverage or pay health insurance bills for a family member.
Instant personal loans can be of great help in such situations. For instance, IIFL Finance allows applicants to get their loan amount in their account within 8 hours of applying so that the money is available when needed.
2. Paying Off Debts:
A high rate credit card, for instance, can lead to an unprecedented amount of debt in no time at all. Alternatively, you may have outstanding loans that are straining your finances and shaking your financial stability.
A default on your loan can sometimes occur in just 24 hours if you do not pay your EMIs.
If you are stuck in such a situation, an emergency loan can help you out. Consolidating your high-interest debt through a personal loan is a very useful and sustainable option in such cases.
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3. Educational Expenses:
An education loan from a bank may fail to cover every single expense involved in higher education. A significant amount of money is required for living expenses, travel expenses, and different types of such necessary expenses.
A personal loan may be a life-saving solution for you if you lack the funds to send your child to an overseas or Indian university. Suppose you are having difficulty paying for your child’s education in India or abroad. In that case, you may look for an instant personal loan considering some education loans charge considerably high-interest rates over a certain tenure.
4. Wedding Expenditure:
Grand wedding ceremonies constitute a large part of Indian tradition and undoubtedly an expensive affair. Although wedding costs can be estimated and budgeted for, they usually exceed the estimates and budget.
An average Indian wedding costs around Rs. 10 lakh. When costs are that high, the likelihood of facing an unexpected financial emergency is greater. Weddings are proof that despite rigorous planning, things might still be on the verge of falling apart.
For instance, You may need to pay the caterer within 12 hours, or even less, if your catering budget increases from Rs. 5 lakhs to Rs. 10 lakhs. Instant personal loans can save you from financial adversities like this if that amount of cash isn’t available.
5. Home Expenses:
Even though home renovations may not always be considered an emergency, there are times when emergency repairs may be required. During a renovation or repair project, such funds should be available immediately to have no delay.
The costs of the repairs can be financed by your savings or an instant personal loan. You must compare loans from various banks and non-banking finance companies(NBFCs) before deciding to go with one lender.
The interest rate and type of interest rate (floating or fixed), costs for processing, prepayment and additional fees and terms, tenure must all be considered. Make sure to check a personal loan EMI calculator before extending your loan term to see how much you will be paying extra.
Other than these, if a situation of emergency arises when you haven’t applied for a personal loan, applying for one might take time to get disbursed. In that case, you can apply for a short-term personal loan. Also, The policy comes with quick disbursal, minimal documentation, and reasonable interest rates. Check out the official websites of banks and lending institutes for more details.
