5 times a personal loan can help you out in emergencies

Mar 24, 2020 8:30 IST 517 views

A personal loan is a great friend in times of need. That is the reason why the Indian household consumes a large amount of instant personal loans to tide through emergencies. As per an RBI report, banks had Rs. 5.89 lakh of outstanding personal loans as of May 2010. By June 2018, the total outstanding amount had reached Rs. 19.33 lakh crore.[1]

When you are in urgent need of funds, you can’t afford to wait for 3 days to get the loan sanctioned. Only an emergency personal loan can help you when time is at a premium. Looking for funds in an emergency? Here are five ways a personal loan can help.

Medical emergencies

A medical emergency is one of the top reasons why one may apply for a personal loan. With increasing medical and hospitalization costs, even those with health insurance cover have a tough time paying the bills. You may exhaust your sum insured or you may have to pay hospital bills for an elderly parent without any health insurance. 

In such a situation, an instant personal loan can be a lifesaver. When you apply for a personal loan from IIFL Finance, you can receive the loan amount in your account in 8 hours so that you get the money when you need it the most.  

Debt consolidation

Costly credit such as those from credit cards that charge high rates of interest can easily go out of control in no time. Or, you may have other loans outstanding that are putting stress on your finances. Sometimes, you may have just 24 hours to pay your EMIs before you default on your loan. An emergency personal loan can help you out of such a crisis. You can also take a personal loan to consolidate (pay off) all your debts that charge high interest rates.

Wedding expenses

India’s big fat weddings are famous worldwide and expenses can spiral out of control when style and extravagance become the order of the day. Despite proper planning, wedding expenses almost always crosses the budget and estimates. Today, the cost of a medium-scale wedding starts at Rs. 10 lakh in India.[2] When costs are high, there is a high possibility that you may face a financial emergency from an unexpected quarter.

For example, your catering budget may inflate from Rs. 5 lakh to Rs. 10 lakh and you may have to pay the caterer within 12 hours or even less. When you are short of funds, an instant personal loan can save the day for you. 

Higher education expenses

An education loan from a bank may not cover each and every expense when your child is undergoing higher education. There are living costs, travelling expenses and a myriad of other expenses that requires a significant amount of money. If you are short of funds before sending your child to a foreign university abroad or in India, you can apply for a personal loan and meet his/her higher education expenses.

As some education loans charge high rates of interest, you can also opt for a personal loan to fund your child’s education in India and abroad. You can apply for IIFL’s Express Personal Loan and receive up to Rs. 25 lakh in your account within 48 hours. 

Home repair and renovation

While home renovation may not be something that we can call an emergency, there are times when our homes might need an emergency repair. You can have a damaged wall or ceiling right before the monsoon, or some parts of your home may be in urgent need of repair or renovation before a momentous occasion. 

Such repairs and renovation can’t wait for weeks; therefore you will require emergency funds at short notice. You can either dig into your savings or apply for an instant personal loan to pay for the costs of repair.

Before you settle on a lender, it’s important to compare with various banks and NBFCs and take an informed decision. Check for interest rates, type of interest rates (floating or fixed), processing fees, prepayment charges, loan tenure, etc. These are the basic things that you need to check. Don’t fall for the trap of low EMIs, use a personal loan EMI calculator and verify how much extra you are paying for the loan by extending your tenure.

Sources:

  1. https://economictimes.indiatimes.com/
  2. https://www.eventswedo.com/

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