5 Emergency Situations When You Opt For a Personal Loan?

A personal loan is one of the most popular finance types in India due to its unsecured nature and faster processing. The process is usually quicker as the lending institutions do not ask for collateral as a pledge. Salaried professionals also prefer personal loans for their limited documentation requirements and fewer bottlenecks.

There are several instances when one is faced with emergencies where there is an urgent requirement of finances. A personal loan can be helpful in such emergencies which are:


Medical emergencies:

Most of us would have opted for medical insurance which would help us to overcome any medical emergencies. Even for those who have not signed up for health insurance, employers would typically have group insurance assigned for the employees. There might be unfortunate instances where the health insurance is not enough and additional funds would be required. In such situations, personal loans can come to the rescue as it is one of the most accessible loans to acquire. You also do not need to burn your hard-earned savings and can opt for personal loans instead. The great news is that most of the NBFCs do provide an instant personal loan option by which you can get the funds credited into your account within minutes.

Wedding expenses:

One can never stop talking about how weddings in India are glossy and expensive. A lot goes into the planning of the wedding, and the incurred expenses can sometimes go overboard. The wedding expenses would primarily comprise of venue, food, attire, travel, accommodation, and so on. Although you can decide on a budget for these expenses much earlier, there will always be possibilities of sudden expenses that can arise at the last moment. You can leverage personal loans to counter such unpredictable situations

Unplanned travel:

Travel can be of any type. It can be a memorable vacation or a specific business trip. Most of the vacations are unplanned, possibly a friends/family reunion or a solo trip. Once you estimate the entire travel plan, you would come to know that you would require additional funds to cover the whole procedure of travel. In such circumstances, instant personal loans can finance the necessary funds and can fulfil your dream of a great vacation. Likewise, there might be a business trip that you do not want to miss but would be short on funds needed to travel. Here, you can take advantage of your positive credit history and avail loans that can help you when you are unable to get assistance from other sources. There are also other instances like pilgrimage or travel to other cities to visit friends/relatives that can dry up your wallet. Rather than hurting your savings, you can get additional funds from your NBFC partner.

Child’s education:

Your child’s education expense can be one of the most unpredictable costs that you need to handle. The reasons are rising inflation, increasing fees and other charges concerning education. Right from playschool expenses to high school, followed by graduation and post-graduation expenses, the associated costs are going to surge with each passing year. Hence it is imperative that one plan her/his finances well and opt for a personal loan in case of situations.

Debt consolidation:

One of the primary benefits of a personal loan is that it can help to consolidate your debts taken from various sources. Multiple loans will have multiple due dates and varying rate of interests. Over a period of time, it can become difficult to pay different due amounts unless there is a steady flow of income. Hence an instant personal loan greatly helps as you can make use of the funds to close your existing smaller loans and have a single loan. Such an arrangement will aid you in managing your finances in a better manner

Conclusion:

Personal loans are considered a lucrative option as you can avail them more easily provided your documentation and credit score are in place. Apart from the instances mentioned above, there are several other options for personal loans can be a saviour in extreme situations as well. Hence you need to understand the personal loans interest rates offered by various financial institutions and then think about applying for a loan.
5 Emergency Situations When You Opt For a Personal Loan? 5 Emergency Situations When You Opt For a Personal Loan? Reviewed by John Thomas on April 07, 2020 Rating: 5

No comments:

Powered by Blogger.