A personal loan is a special type of unsecured loan, which can be taken by individuals from a financial institution, be it a bank or a non-banking financial company, also known as NBFC, to cater to any personal needs. The personal loan application process requires individuals to provide some critical information such as income level, credit history, employment status, repayment capacity, etc. If these specifics match the personal loan application key criteria, individuals can avail a personal loan.
Unlike other types of loans, a personal loan does not require the borrower to secure it against an asset such as property or gold. The unsecured nature of the loan results in higher interest rates. However, what makes it popular is that it can be used for meeting any personal financial needs. This attribute of the personal loan comes handy, especially for meeting financial emergencies that may crop up suddenly.
List of Financial Emergencies That Require a Personal Loan
So what type of financial emergencies does a personal loan cover? To answer this, below is a list of financial exigencies for which a personal loan can be availed.
· Personal loan for medical emergencies- Unfortunate events such as accidents can take place anytime and anywhere. This might demand you to gather a significant sum of money all of a sudden. Instant funds can also be required for treating end-stage or critical diseases, the medical costs of which are ever rising. Though pre-bought health insurance is useful at such times, there might be a need for additional funds over and above the insurance cover. In such a case, getting a personal loan can help you quickly get the money for medical treatment.
· Personal loan for education- Fees of educational institutes are skyrocketing through the roof. When the time comes and your child is ready to seek admission in the dream university of his or her choice, you might find it challenging to afford its fees. Rather than asking your kid to bid goodbye to their dream and their future, you can opt to apply for a personal loan and pay for their education.
· Personal loan for a wedding- It is no news that weddings can get very expensive. But, as it is the one day that everyone hopes to be special for both themselves and their families, cutting down on the budget doesn’t seem like a right decision. However, the high expenses involved require you to arrange funds in a significantly short period. In such a situation, when you are struggling to gather the required money for your lavish dream wedding, you can choose to get a personal loan and make your dream come true.
· Personal loan for travel- A critical business deal or a personal situation might require you to travel urgently. Opting to apply for a personal loan online can be your best bet in such a circumstance. The application process is easy and the loan disbursal too is fast, thereby offering the peace of mind while to plan your travel.
· Personal loan for business- Setting up a start-up requires a huge investment. Rather than pooling all your savings into establishing the business foundation, applying for a personal loan might be a better option. You can choose a loan that suits the needs and preferences of your business, while offering competitive interest rates and flexible repayment options.
· Personal loan for home renovation– Renovating a home can be quite a drain on your finances. If you are in urgent need of revamping your abode, you can go for a personal home renovation loan. The money can be useful in covering repair costs, purchasing new furniture as well as refurbishing the home in general, without burning a hole in your pocket.
· Personal loan for debt-consolidation– Defaulting on your existing loans can have a negative impact on your credit score. It can also lead to issues arising in availing loans and credit in the future. In such a situation, you can get a debt consolidation personal loan which lets you combine the outstanding debts or dues into a single payment. The payment can be carried out monthly, which would allow you to effortlessly manage all your instalments together.
How to apply for a loan during financial emergencies using Finserv MARKETS App
Financial emergencies demand quick action. Using a loan mobile app such as the Finserv MARKETS app, you can avail the best personal loans in quick easy steps.
· Check Eligibility– Check your eligibility based on basic criteria, such as age, salary, work experience, and credit score
· Customise your Loan- Choose the right product to bundle your product.
· Verify Me- Get verified securely online, by providing necessary documents such as identity proof, proof of residence, income proof, office address proof, passport size photographs.
· Money in Account- Once verified and approved, the loan amount will be credited to your account within 24 hours.
Uncertainties are an inevitable part of life. As you might not have funds for all such exigencies, availing a personal loan can be a wise decision. The easy personal loan application process using a dedicated loan mobile app, minimum paperwork, attractive interest rates, quick loan disbursal and flexible repayment tenure, makes personal loans the efficient means of finance for bidding goodbye to your financial woes.