What is an Emergency Loan? Where to Apply for an Emergency Loan?

It is not easy to get cash right away for emergencies when you have to cover a major medical bill, unexpected car repair, etc. Having loans for emergencies in India is one of the best financial cushions you can thrive on, so why worry about any monetary crunch? Luckily, an emergency cash loan can help cover all your big expenses when you are not having enough cash when you need it the most.

What is an Emergency Loan?

An emergency loan is an unsecured loan which is availed to cover the costs of your unplanned expenses. Emergency loans tend to be of small amounts which are instantly approved usually on the same day of application itself.

Because emergency loans are unsecured, you need not have to pledge any of your assets as collateral to avail a loan. The eligibility criteria for an emergency loan varies from one lender to another, so you will have to evaluate each lender on a case-by-case basis - how much amount you can borrow, how much fees are charged, interest rates, minimum credit score and income requirements.

For What Purposes Can an Emergency Loan be Used?

You can use an emergency loan for almost any reason like:

• Utilities - Pay your utility bills on time by using an emergency loan. Staying current on your bills ensures that you don’t disturb your monthly budget and fall behind on expenses.

• Medical bills - If there is an unexpected medical expense on the alarm, then an emergency cash loan can help cover those costs.

• Home or car repairs - Some home repairs need immediate attention and immediate payment to be done. Likewise, your car can also have certain repairs which can pop up at the most inopportune times. If you need to fix your car or get your home renovated, and can’t afford to wait any longer, then a loan for emergency in India, can be of help.

Types of Emergency Loans

• Personal loans - For an unsecured personal loan, your lender will verify your credit history, credit score, income and job stability. Based on these factors your loan amount and interest rate will be determined.

• Credit card advances - You can borrow instant cash if you have a credit card. Interest rates for credit card cash advances tend to be higher when compared to other traditional loans.

• NBFC loans - NBFC abbreviated as Non-Banking Financial Company is considered a trending solution for immediate funds to fix any financial emergencies. These loans don’t have much documentation and take less than a few minutes to approve your loan request.

Where to Get an Emergency Loan?

You can avail an emergency loan from any of the lenders such as banks, credit unions, NBFCs, etc.

• Banks - If you have an account with a bank, then you are lucky enough to get a personal loan from there. The processing time of banks is different when compared with other lenders. For example, many banks consider a good credit score or income requirements before lending you with a personal loan.

• Credit unions - Instead of a bank account, if you have an account from a credit union, then it is easy to avail an emergency loan from a credit union. These lenders are community-based and have certain relaxed guidelines in approving bad credit loans.

• NBFCs - Many NBFCs offer a wide variety of emergency loans, depending on your requirements. Most lenders offer pre-qualification options so that you can also verify whether you are qualified to borrow an emergency loan before you can actually apply for a loan. This way you can help yourself avoid a hard credit check which can badly hurt your score.

Conclusion

Whether you need a loan to pay for your emergencies to cover a gap in your income, meet any unexpected home improvements, or to cover any last-minute wedding expenses, an emergency cash loan can help you meet that need. 

But choosing the right lender is of paramount importance to ensure a hassle-free borrowing experience. So, consider FlexSalary - a loan offering product of the most diversified NBFC in the country called Vivifi India Private Limited. FlexSalary’s emergency loans are fast and convenient to help you with quick funding during any emergency.