Facing an emergency, be it financial, medical or personal can be unnerving. It can cause a lot of stress and affect your happiness and peace. However, the worst thing is when you have to struggle with finances to overcome the situation. Whether or not you have savings, arranging adequate funds in a short time can be challenging. Thankfully, you have other options to go to. A personal loan can help you deal with any emergency without straining your budget. It can be rightly called a trump card for emergencies. Read on.
- No collateral
When you are in a medical emergency, it could be challenging to go through the process of arranging collateral for a loan. Thankfully, a personal loan is an unsecured loan, which means you can get funds without furnishing any collateral. You can get a personal loan directly based on your creditworthiness and repayment capacity.
- No end-use
In an emergency, there are several different expenses that you need to bear. You might not even know what you need to use the loan for. To avail a personal loan, you need not specify the purpose of the loan to the lender and can use it for any need. It has no end use and can be used for medical charges, legal charges, expenses related to repairs, etc.
- Easy application
A personal loan has an easy application process where you can apply for the loan in a few steps. The lenders usually have an online interface where you can apply for the loan online by submitting a few documents. You need not visit the branch even once. It could be a great relief when you are already dealing with an emergency.
- Lenient eligibility
One of the best benefits of a personal loan is you need not go through stringent eligibility rules to avail one. The lenders only check your income, credit score, city of residence and age while determining your eligibility. Even people who have just started their professional careers can easily avail a personal loan and arrange funds.
- Quick disbursal
When you are dealing with a medical emergency, you cannot wait for weeks to get the funds in your account. This is where a personal loan is highly beneficial. As the processing time of a personal loan is minimum, you get the funds instantly. Many lenders approve the application and disburse the amount in just a few hours if you complete all the formalities.
- Flexible repayment
During an emergency, your sole focus is ensuring that your family members are safe and healthy. A personal loan allows you to do that. When you avail a personal loan, you need not worry about returning the loan amount immediately. You can repay the loan in comfortable tenures with easy EMIs.
Availing a medical loan can help you pay for all the hospital and medical expenses without depleting your savings. Moreover, due to the competitive personal loan interest rate options, you can be assured that it is an economical choice than a credit card.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.