When Should you Get an Emergency Personal Loan in India?
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3 min read
Financial emergencies are a trying time for families. In such times, having financial security is essential. This article discusses how personal loans enable that.
Personal loans are undertaken by borrowers for various reasons, such as education, travel, weddings, etc. These reasons are mostly for pre-planned purposes; cases, where there might be an emergency requirement of funds and personal loans, could help primarily include medical emergencies.
Personal loans are the perfect solution to medical emergencies. People often seek medical loans in times of crisis. During such a situation, high-quality treatment is of the utmost importance, which comes at a high monetary cost, making personal loans an apt solution.
Flexibility in Repayment
When you take a loan on an urgent basis, you are not financially prepared to have a debt added to your line of credit. This addition can make it challenging to repay the loan in time. However, with the flexible repayment tenures of personal loans, this is not an issue. The repayment period spans between 3 months to 60 months. It is enough time for you to figure out your finances and chalk out the plan to make repayments within an appropriate time.
Easy Application Process
Personal loans work on a simple rule – the earlier you submit your application, the sooner you get approval. Nowadays, with personal loan apps, it is easier for individuals to apply for a personal loan since most people own a smartphone. In addition, personal loan lenders also guarantee fast approvals and disbursal periods. Many banks and financial institutions offer a 24–72-hour approval period, making it perfect for emergencies such as health or setting up a new business. For instance, a doctor loan is an option if you want to set up your clinic as a practising doctor.
Unsecured Loans
One of the best things about personal loans is that they are unsecured. It means that they do not require borrowers to pledge any collateral for their loan. The unsecured nature of personal loans opens up its access to a larger group of people and also reduces the complexity of documentation. Online loan apps facilitate a simple documentation process as they do not call for hard copies; all you have to do is upload scanned copies of documents that are readily available.
Simple Eligibility Criteria
The Eligibility criteria for a personal loan is one of the most critical aspects of the process. It helps you understand what you need even to consider applying. Furthermore, it enables lenders to determine your ability to disburse the loan in time through other factors. Every loan has a different eligibility criterion based on the lender. For personal loans, these are the standard parameters:
- Minimum salary of INR 20,000, if based in other cities
- Minimum salary of INR 25,000 is based in Mumbai or New Delhi
- Have to be an Indian Resident
- You must provide identification proof (Voter ID Card, Aadhar Card, etc.)
- Applicant must have a good CIBIL score, ranging between 700-900
- You must have three years of work experience, minimum. And a year’s experience with the current
- Applicant needs to provide proper proof of income
- You should be at least 21 years old when applying and under the age of 65 before the loan matures
While these are the general eligibility requirements, some financial institutions or lenders may have some other requirements. That said, even the additional ones are not too difficult to fulfill. Ensure that you thoroughly check the eligibility parameters before applying. Not living up to them can cause delays, or worse, rejections.
All these features of personal loans make it a great fix for urgent financial needs. To get started with the process, shortlist a few good lenders and narrow it down to the top two. And finally, commit to a lender that gives you a competitive interest rate, complete transparency, and flexibility!
