As the name suggests, emergencies do not come announced, and there is often no inkling. They, of course, create havoc mentally, but the financial strain they can cause cannot be explained. Unpredictable events create stress, and when they require an urgent need of funds, they can create havoc, disrupting everything. For such times, the answer is an emergency loan.
An emergency personal loan can be a savior in tough times when arranging for immediate funds can be daunting. The question arising here is, what is an emergency loan? An emergency loan is an unsecured personal loan that can help arrange finances during a financial emergency. These loans help deal with difficult situations and provide relief by giving instant funds.
What is Emergency Loan?
A financial crunch can be difficult, and an emergency personal loan is the easiest way to take it. These loans are quick to get as the amount is usually dispersed in a day or two. And the most favorable part is that these are given without any collateral deposit as these are unsecured personal loans. Sometimes, quick emergency loans are given to the applicant on the same day.
These loans can be used for any emergency where there is an urgent need for funds. Sometimes, these loans can prove very helpful, such as paying education fees, medical bills, or wedding bills. The emergency line of credit can be the best option for any financial emergency.
Features of Emergency Loan
At all times, when there is an emergency, an emergency loan can be applied for. The interest rates can vary from bank to bank and from financial institutions. Therefore, before taking a loan, it is always wise to check the rates and compare them to the others to ensure a good deal is available. Some of the features of the emergency personal loan are:
- Competitive rate of interest
- It can be availed online, making it paperless and convenient
- Flexible payment terms offered by banks
Benefits of an Emergency Quick Loan
Emergency personal loans can be a lifesaver in an emergency when it gets tough to arrange for funds. Some of the main advantages of the loan are:
- There is no need to liquidate investments as no collateral is required
- It can be used to finance any emergency be it medical or personal
- It is a quick process, and funds are available in a day
- There is significantly less paperwork involved
- The interest rates are competitive and affordable
- There is a Flexi EMI option available, making it easy to pay
- Coming from reputed banks and financial institutions, there is no scope for cheating
- Convenient to pay as the loan can be repaid online or through cheques
After understanding what an emergency loan is if you wish to apply for an emergency loan, the following steps have to be followed:
- You can fill the application online by filling in some basic details accurately, as that will give the bank the ability to check the eligibility
- Submit the documents asked for
- The team will verify the application and the submitted documents
- Once all documents are checked, the loan is approved
- The amount is transferred to the account, and then it can be used
Documents Required for Emergency Personal Loan
Understanding what an emergency loan is is important, but knowing which documents are required will get the loan equally important. The documents are needed to check eligibility and confirm that the applicant can repay. The documents that are required are:
- A photo identity proof like an Aadhaar card, passport, driving license etc.
- Proof of income like bank statements of 6 months
- Salary slips for three months to show employment
- Proof of address like passport, electricity bill, Aadhaar card etc.
Any person between the ages of 22 and 58 is eligible to apply for the emergency line of credit. The applicant should have a minimum salary of Rs. 15,000 per month and one year of work experience or six months at least in the job.
Emergency loans are a special product designed for meeting the financial needs of an individual in times of an emergency when there is an urgent need for funds. These loans are simple to get and do not require collateral or a lot of documentation. With the ease of application and repayment, these quick emergency loans by Tata Capital are a boon when there are no available funds but an urgent need. Now that you know there is an option to get a loan in an emergency focus on handling the situation and not take stress about finances, as the emergency line of credit is there to rescue you.