Emergency Loan 101: All you need to know about emergency loans
New Delhi, Jan 21 (KNN) Life is highly unpredictable. Be it any event- happy or sad one can put you in a state of distress if you don’t have enough finances in hand. At such times, getting an emergency loan can be of great help as the loan amount can help you cater to different financial situations that may otherwise disturb your peace of mind. Availing an emergency loan can help you cater to your or your child’s wedding expenses, medical bills, education expenses, and even home renovation expenses. Understanding that emergency situations create an urgency for the need of funds, many fintech companies and NBFCs in India have started offering instant personal loans at low-interest rates. Read this article to know everything about getting an emergency loan in India.
What is an emergency loan?
An emergency loan is an unsecured personal loan that you can avail to cater to different financial needs. This type of loan is offered without any collateral at low-interest rates at flexible repayment options. The loan amount can be used for travel purposes, buying a smartphone, laptop or even for buying a vehicle. In case of a shortage of funds in any situation, you can avail an emergency loan in India by simply logging into the website or app of the lender and get the loan disbursed instantly. Thus, getting an emergency loan serves as the right option to cater to quick cash demands in times of an emergency.
Eligibility criteria to get an emergency loan
To avail an emergency loan online in India, it is important that you imply to the below eligibility criteria.
--- You should be aged between 21 years-60 years
--- You should be a citizen of India
--- You should be employed with public, private or Government Company
--- You should have a minimum salary of Rs. 17,000
--- You should have a minimum credit score of 650
It is important to note that the eligibility requirements may vary from lender to lender.
Documents required to get an emergency loan
Below is the list of documents you need to provide to get an emergency loan. The list may vary from lender to lender and also your credit profile.
--- Address proof i.e. Aadhar card, utility bills, passport or driving license
--- Identity proof i.e. PAN card, driving license, passport
--- Income documents i.e. salary slip, Form 16
--- Bank statement
The salary slip and bank statement are mandatory to help the lender verify your employment and salary details. Few lenders in India may require you to provide a salary slip and bank statement of the past 3 months, whereas few may require you to provide the past 6 months' statement.
How to apply for an emergency loan?
If you are a salaried professional, having a minimum monthly salary of Rs. 17,000 and are employed with a private, public or government entity, then you can apply for an emergency loan following the below steps.
--- Visit the lender’s app or website
--- Log on to the app or website using your Gmail or Facebook address
--- Fill in the required personal and professional details
--- Submit KYC details
--- Upload documents i.e. address proof, identity proof, and income documents
--- On approval, submit a bank statement and additional details
--- Get disbursal within 24-48 hours
When applying for an emergency loan, it is essential that you have a good credit score and comply with the eligibility criteria of the lender to ensure your loan application is not rejected. You can use a personal loan eligibility calculator to get an estimate of the loan amount you are eligible to get.
Benefits of emergency loans
No collateral needed: To get an emergency loan, you don’t have to offer any collateral to the lender. This ensures that your assets are safe with you and you are not at the risk of losing out on them in case you are unable to repay the loan.
Minimum paperwork: The loan application process is pretty simple and does not require you to go through any physical documentation process. You can submit minimum documents like you address proof, identity proof, and income documents to get your loan approved.
Flexible repayment options: An Emergency loan is provided for a flexible tenure of 12 months-60 months that makes it easy for you to repay the loan. The loan tenure may vary from lender to lender and also depend on your eligibility criteria.
Instant disbursal: Post successful loan approval, the emergency loan amount is disbursed into your bank account in just 24-48 hours. Few lenders in India offer disbursal within 10 seconds, thereby making it easy for you to fund your emergency requirements.
Utilize the amount for any purpose: Emergency loan amount can be used to cater to different types of financial requirements including doing vehicle repairs, home renovation, payment of medical bills, wedding expenses and others.
Getting an emergency loan in India is thus convenient and one of the best options to take care of your financial needs in a hassle-free way.
Disclaimer: This story has been edited by Sneha Lukka. The view and opinion expressed in the article are of the author.