The current global pandemic has enforced a nationwide lockdown in India, halting over 70% of the country’s economic activity. In the Global Macro Outlook 2020-21, Moody’s Investors Service has predicted a sharp decline in incomes because of the lockdown.
Due to this widespread shortage of cash inflow, you may need urgent funds if any contingency strikes. Additionally, you may also have to deal with a financial crisis if you are among those whose regular income has come to a standstill. Thankfully, liquidity needs during the lockdown can be met with an instant personal loan online.
How can personal loans be of use during the lockdown?
With an income crunch, paying rents or credit card bills can be tough. Unforeseen medical emergencies can also crop up anytime, requiring costly treatments. The need for funds can be diverse, but a personal loan can help with these costs. Here’s how:
When the requirement for finances is immediate, loans for personal use are the ideal solution. The sanctioned amount reaches your bank account within hours after the document verification is complete.
No collateral or guarantors
Such loans are unsecured loans and do not require you to pledge your assets as security. This way, you can preserve your assets as an additional source of income for future needs. Moreover, to apply for personal loan, you do not need to run from pillar to post to arrange for a guarantor at a time when social distancing is the call of the hour.
Additional Read:- How to Choose the Best Personal Loan for Needs?
Affordable interest rates
Personal loan interest rates are typically lower than that of credit cards. If repaying outstanding credit card dues has become challenging due to reduced earnings, you can consider consolidating your higher-interest debts with a lower interest loan. It can make monthly payments affordable and ease your financial burden in these difficult times.
Borrow and repay online
You do not need to step out of your house and risk your family’s health to arrange for money during this lockdown. The whole process of application, as well as equated monthly instalment (EMI) payment, can be conducted online from the safety of your home.
Flexible repayment schedule
With flexible EMI options, you may initially opt to pay lower monthly instalments when you are faced with a scarcity of funds. After your income stabilizes, you can choose to increase repayment amounts to pay off your loan faster. You can easily find out how much you have to pay per month using an online personal loan EMI calculator and apply for a loan accordingly.
How do you apply for an online personal loan?
1. Determine your personal loan eligibility by visiting the lender’s website.
2. Fill up an application form online.
3. Upload the necessary documents like your PAN Card, pay slips, bank statements, employment certificate, and other KYC documents.
4. Once approved, you will receive the loan amount directly in your bank account.
Additional Read:- 5 Ways in Which Personal Loans Can Help You Save Money
To tide over economic hardships during this period, you can avail of a personal loan online from a reputed financial institution, such as Tata Capital. At attractive interest rates, Tata Capital offers loans tailor-made for you. You can even pick a flexible repayment schedule as per your financial capabilities.