Benefits of Personal Loan in Case of Emergency


12 Jul 2021 | 5 min read

Did you know, as per a recent report by a reliable credit authority in India, roughly 49% of Indian citizens don’t have the cash to take care of an unexpected emergency worth Rs. 1,20,000? Yes, you read that right! While you can’t always manage when a gigantic expense pops up, you can make financially sound borrowing decisions. A Personal Loan can put money in your hands within a matter of minutes and is a smart way to coat the value tag of unforeseen circumstances which engage quick access of cash. 

Before you roll up your sleeves and churn out those Emergency Personal Loan applications, it is essential to know what the benefits are so that you can understand, why you can turn around a Personal Loan in your financial emergency and make a better and smarter decision. Let’s plunge into the post now! 

Benefits of Emergency Personal Loan  

There are plentiful reasons why Personal Loans are so popular among consumers, regardless of their usage for an emergency. Below we’ve stated the top benefits related to a Personal Loan in times of emergency: 

1. Flexibility 

Personal Loans are very flexible in nature. You can find and make them appropriate for a good range of circumstances. The cash gets credited directly into your bank account and the funds can be used for any reason, such as quick replacement of a leaky roof during flood season. 

You can also utilize them to simplify your financial life by consolidating your existing debts to handle emergencies with ease. An Emergency Personal Loan is additionally flexible in repayment terms. A Personal Loan in India can be availed instantly but can be paid off smoothly across a longer time period of up to 6 years (72 months). 

2. Collateral-Free 

Emergency Personal Loans are secured or unsecured in nature. Having a secured Personal Loan indicates that there's collateral backing the loan up just in case if you default. 

But the positive fact is that most of the Personal Loans are unsecured in nature, so you don’t need to worry about forfeiting your assets such as your home, just in case, you happen to default. 

However, if you’re confident, you can repay your loan timely, you can consider applying for a secured Personal Loan to get the best interest rates

3. Swift Application Process 

Today, the majority of moneylenders in India offer a Personal Loan online, making the method comfortable and convenient. Moreover, Personal Loans do not require hefty documentation as other sorts of loans. 

While Personal Loans are typically processed instantly, it’s always a smart notion to get a hold of the moneylender to seek out how long it can take, particularly, when the funds are required for an emergency. 

4. Multi-Purpose Loan 

The Personal Loan provider will never ask you the rationale for your loan application. Whether you are taking it out as a medical loan, wedding loan, home renovation loan, or for any other reason, the lender won’t bother you for providing them with the exact cause of the loan application. Thus, you can use a Personal Loan for multiple needs. 

5. Low interest rates 

You might think that a Personal Loan will come with a higher rate of interest as it is offered for the purpose of meeting emergencies. But, let us tell you, it’s adverse. Personal Loan interest rate, as compared to the repayment of a Credit Card Loan is substantially lower. This is particularly true in the case of larger amounts. 

6. Prepayment Charges 

If you wish to shut your loan prior to the selected time period. There is a minimum fee for foreclosure without hidden charges. Every lender has a different but minimal charge on pre-payment of the Personal Loan, so you can get to know about that charge, assess your saving and pre-pay the loan. 

7. Minimal Documentation 

Applying for a Personal Loan for an emergency doesn't need much paperwork. All you need is to submit your KYC documents. If your credit history and income flow are appealing, the loan gets approved and disbursed in minimal time. 

8. Credit Score Improvement 

This is certainly true if you’ve similar types of existing credit. A Personal Loan can come in handy in boosting your credit score by adding variety to the types of account you hold. 

The Upshot 

A financial emergency can strike at any point in life and the fact is that nobody is aware of it. But a Personal Loan is made more for such situations only. You can enjoy over benefits as we stated above, yet, we also suggest you ensure a thorough study across the product before you finalize a particular offer. 

Looking for a Personal Loan for an emergency? Visit us at Afinoz and enjoy the appealing features such as instant disbursement, low EMI, nominal documentation, and multiple other features. What’s more? Your online Personal Loan application gets approved within a nominal amount of time and the loan amount gets credited into your bank account instantly! Apply for Afinoz Personal Loan via Afinoz Loan App. Download the App from the Google Play Store today! 

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