7 Ways A Personal Loan Can Help You During A Cash Crunch
A friend in need is a friend indeed. Who would have thought this quote would be used for personal loans someday. Instant personal loans can prove to be the best friend in times of financial hardship. They can come in any form such as a medical condition, an accident, unexpected car repairs, home repairs, unexpected travel, or other expenses. Such emergencies can arrive at any unspeakable time bringing with it the dire need of instant money. Instant personal loans become the most popular choice in such scenarios because of their instant, unsecured, and convenient nature. But before we dive into how they can help, let’s understand them a little.
What are instant personal loans?
Instant personal loans, also known as unsecured loans, can be taken from financial institutions or banks without giving any collateral in exchange. They are granted almost instantly making them ideal for meeting any personal financial needs. The funds can be used and repaid as per the borrower’s convenience and flexibility, giving them a perfect space to breathe.
Apply online for instant personal loans that are unsecured, quick, and easy.
How can they help in the time of liquidity crisis?
Beyond monthly earning, personal loans add financial leverage that can help meet every unexpected expense. Instant personal loans are a viable option for borrowers in urgent situations because of features like convenient borrowing process, no collateral coupled with instant approvals and disbursal’s. These features are nothing but the ways we will be divulging in to understand their benefits in tough emergency scenarios.
1) Quick online applications: When the perfect business idea clicks but the multiple bank trips sound daunting, the ease of access to these personal loans comes in handy. In today’s digital age, most lenders have a simple online application. This means less hassle of papers, less worry of ‘What should I fill here’, and more convenience with just a click of a button. Borrowers can apply for these loans from the comfort of their homes in just a few minutes, instead of making multiple visits to the bank that are long and tedious.
2) Instant loan approvals and disbursal: If the spontaneous dream travel plan sounds expensive and instant cash is the only way out, personal loans are a true savior. Once the application is submitted with the correct set of documents if all the eligibility criteria are met the approval is granted instantly. The set of documents required and the eligibility criteria vary from lender to lender. Most lenders process instant loan applications within a few working hours. This instant approval is translated into instant disbursal within the next couple of working hours.
3) No worries of collateral: In the case of house remodeling, submitting collateral for a loan can be a bit of a hassle. At times like these unsecured loans sound like a great alternative. For instant personal loans, lenders like banks and other leading financial institutions do not ask for collateral. After all, finding the perfect collateral and submitting it in exchange for a loan can be challenging for many. If all the conditions are met and the documents are valid, the loan will be granted without any constraints.
In the time of financial crisis, instant personal loans can be a quick and easy solution.
4) No other pre-existing terms and conditions: If the instant personal loan was bought when the house was under remodeling but a little money now needs to be used for children’s education, no worries at all. Once the money is transferred to the borrower’s account, the borrower can use it as he/she sees fit. In simple terms, there are absolutely no conditions on how the money must be used. The liberty to use the amount as per the borrower’s discretion can be a major advantage.
5) High principal amounts available: In the case of medical emergencies, the loan amount can go up to several lakhs. Instant personal loans also have the added benefit of big loan amounts. Many banks and financial institutions offer personal loans in several lakhs without any collateral. However, the borrower’s credit score, repayment capacity can be a deciding factor for accepting and negotiating the final loan amount.
6) Range of interest rates: From a student paying college fees to a person giving the down payment for a dream home, who doesn’t want the loan at the lowest rate of interest. Here’s where the lender competition can come to the borrower’s benefit. Many lenders offering instant loans means many options for interest rates. With the plethora of options available in the market, the borrower can choose the interest rate that suits their needs after thorough research. The interest rate of unsecured loans can seem higher than secured loans, for obvious reasons, but they are actually lower than those of credit cards.
7) Flexible repayment options: Jumping from a bad time in life or a financial setback takes not just a lot of will and patience but also time. During this time, no one wants the burden of repaying large figure EMIs for loans. Most lenders understand that and offer the borrower various repayment plans to choose from. This gives the borrower a chance to get back on their feet and the lender a sense of assurance that once the borrower is stable, the money will return. Personal loans sound more appealing after the added benefit of smart repayment plans.
After reading the various ways an instant personal loan can help during a cash crunch, they sound more and more conducive to one’s stability in the times of need. They provide the safety of preserving the saving for the future while attending to the financial obligations of the present in the most convenient of ways.
