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Tata Capital > Blog > Personal Use Loan > How Will a Short-Term Personal Loan Help in Emergency?

Personal Use Loan

How Will a Short-Term Personal Loan Help in Emergency?

How Will a Short-Term Personal Loan Help in Emergency?

When confronted with unexpected emergencies, most people dip into their savings, sell their assets, or borrow funds from friends and family. The reason? All of these modes are quick and relatively low-risk, making them great financing options for sudden cash crunches. However, bringing money matters into personal matters is never a good idea.  The better option? A short-term personal loan!

You can borrow a quick loan for a short tenure from a trusted lender and repay it at your convenience. Wondering how this loan can help you during a crisis? Read on.

No collateral required

Short-term personal loan are unsecured. So, you don’t need to give up your assets as collateral to avail of the loan. This reduces the stress associated with losing assets during a financial crisis when securing the loan.

Additional Read: How Can a Personal Loan Help You Manage Your Emergency Expenses?

Easy to meet eligibility criteria

Thepersonal loan eligibility criteria for short-term loans are usually easy to meet. They include age, monthly income, CIBIL score, work experience, etc., and may vary slightly between lenders.

Quicker approvals and disbursals

Loan approvals and disbursals usually take more time, making them an undesirable source of funds during an emergency. But with instant loans, the approval and disbursal times are never a problem. This is because lenders require minimal documentation to approve these loans, thus cutting down the loan approval time. The loan amount is also disbursed straight to your bank account upon approval.

Repayments are hassle-free

Although short-term loans tend to have smaller tenures, you still get the same flexibility as long-term loans. So, you can choose a loan tenure such that the EMI payments don’t affect your budget. If you're having trouble choosing a suitable loan tenure, use a personal loan EMI calculator online to get correct estimations.

However, if you want to make the loan repayments more comfortable, get a loan with a lender offering a lowerinterest rate. Doing this reduces the total amount you spend on interest over the loan tenure and makes EMIs more affordable.

Additional Read: Why a Personal Loan is Known as a Loan for Emergency Needs

Closely regulated by SEBI and RBI

The last thing you want to be worried about during an emergency is financial fraud. Thankfully, with an instant loan, it is never an issue. This is because regulatory bodies such as SEBI (Securities and Exchange Board of India) and the RBI (Reserve Bank of India) keep a close tab on lenders and flag any malpractice. Rest assured, when you get a loan from a reputed lender, you will never get entangled in them.

Final word

Looking for a reputed lending partner to help you with your finances during an emergency? Turn to Tata Capital.

We offer instant loans at attractive personal loan interest rates. But that’s not all. We also make sure to keep our loan process easy and transparent so that you can apply for a loan without the fuss, no matter where you are. Check out our personal finance options on our website today.

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