5 times a personal loan can help you out in emergencies

A personal loan can indeed be your friend in need. When you are in need of emergency funds, instant personal loans ensure speedy approvals and quick disbursals.

24 Mar,2020 03:00 IST 1316 Views
5 times a personal loan can help you out in emergencies

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.

Read More Here: 5 Scenarios where you Need Personal Loan


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

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

Most Read

Franking and Stamping: What’s the difference?
14 Aug,2017 03:45 IST
Like 3485 3485 Likes
Difference Between 24 Karat and 22 Karat Gold
8 Dec,2022 09:26 IST
Like 740 740 Likes
Personal Loan With Low CIBIL Score
21 Jun,2022 09:38 IST
Like 1174 1174 Likes
Why Gold Is Cheaper In Kerala?
14 Jan,2023 09:35 IST
Like 536 1802 Likes

Get Personal Loan