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How to Deal With a Financial Crisis Using Emergency Loans

  • Highlights

  • Avail Quick Emergency Loans Online With a Good CIBIL Score

  • Enjoy Easy Emergency Loan Approval With Stable Income

  • An Emergency Personal Loan Has No Spending Limitations

  • Get Up To Rs.25 Lakh With a Bajaj Finserv Personal Loan

With the economy experiencing a slowdown, adopting smart financial planning is the need of the hour. However, even with a sound strategy, facing a financial crisis or a cash crunch during such a time is common and something worth preparing for. In such instances, you have two options: dip into your savings or consider opting for an emergency personal loan. With the former, you run the risk of using up all your savings and still not having enough. With emergency loans, you can get the funding you need quickly and on cost-effective terms, while keeping some savings intact. However, this requires you to pick the right option among the many emergency loans available to you.

Ideally, it may be smart to opt for small personal loans for immediate obligations rather than choosing a loan amount that is more than you need. However, you may need an emergency loan to tackle substantial expenses, such as medical care and hospitalisation, which may require you to borrow a higher sum. The good news is that lenders offer various loan amounts and you can pick an emergency personal loan that suits your needs.

How Emergency Loans Can Help You Deal With a Financial Crisis?

Here are the few things you can do to get an instant emergency personal loan to get out of a financial crisis:

  • Helps You Make Urgent Big Ticket Expenses Without Restriction

    An emergency loan does not come with restrictions on how you spend the funds, so you can use it to address various expenses or to finance large costs. For instance, you can use the Bajaj Finserv Personal Loan as a medical emergency loan simply due to the fact that you can get up to Rs.25 lakh as a sanction.

  • Serves As An Easy, Collateral Free Funding Option

    As an emergency loan is a personal loan, you do not need to pledge any asset as collateral to qualify for finance. This makes it easier for you to apply for and avail during an emergency.

  • Acts as an Instant Solution For Time Sensitive Situations

    Depending on the lender, you can avail an instant digital personal loan and have the entire approved sanction disbursed to you almost instantly. A good example is the Bajaj Finserv Personal Loan, which gives you online approval in 5 minutes and money in your bank account in just 24 hours!

  • Gives You the Freedom to Borrow As Needed and Repay Comfortably

    Leading lenders like Bajaj Finserv allow you to repay over a flexible tenor that goes up to 60 months. This way, you can borrow as needed and adjust your EMIs to suit your repayment capabilities.

With a clear picture of how quick emergency loans can come to your aid during trying times, the next step is to learn how to apply for one. Read on to see the steps to take when you’re facing a financial crisis.

Tips to Get an Emergency Personal Loan Online

Pay Attention to Your Credit Score

When applying for an emergency loan, it is important to note that your credit score is among the most important elements of your financial profile. Since an emergency personal loan is an unsecured offering, lenders rely on your credit score to determine your creditworthiness. Generally, most lenders require you to have a CIBIL score of at least 650 to qualify for funding. So, when you need an emergency loan and your credit score doesn’t meet the mark, you may not get approval until it improves.

Maintain Stable Employment and Income

Your income and employment history are other important eligibility terms that lenders analyse very carefully. For this reason, you must meet the lender’s minimum income requirements for your city and your financial history must reflect stable income. Additionally, lenders may look into your employer and their history within the market. A reputed employer helps your application as it indicates timely salary payments, resulting in consistent EMI payments from your end.

Additional Read: Debt-To-Income Ratio and How to Get It Right?

Apply With a Low Debt-to-Income Ratio

Your debt-to-income ratio is the portion of your salary that is already being used to service existing debt. To enjoy instant approval on quick emergency loans, ensure that less than 40% of your income goes toward existing debt. Any higher and lenders see you as a risk to lend to as your income may not be able to accommodate additional debt.

Emergency loans are effective financial tools that can help you deal with financial crises easily. This is especially true if you borrow smartly and from a lender who offers good borrowing terms. A good example of such an offering is the Bajaj Finserv Personal Loan as you can get a sizable sanction at a competitive interest rate. Its quick disbursal and easy eligibility criteria also make it an exceptional emergency loan. To get this emergency loan online, fill the short application form and enjoy instant approval.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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