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How Personal Loans Help to Deal with a Financial Crisis- Check Here!
Financial crisis can definitely be a cause for setback for most individuals. Often, people tend to stress whenever something unplanned occurs and a sudden need for money arises. However, there are solutions that can help an individual be financially stable and manage crisis at ease, and one such ideal solution is applying for a Personal Loan.
A Personal Loan is a type of unsecured loan that can be sanctioned for multiple reasons and is versatile in terms of usage. From an unplanned medical emergency to making a big-ticket purchase and from fuelling an internal trip to helping arrange for wedding funds, a Personal Loan will help you with it all.
Be it versatile uses, easy to avail, hassle-free process, or competitive rates, Personal Loans have ample advantages. No matter what the emergency, Personal Loans are usually a great resort to overcome financial crisis. Let’s take a quick look at how Personal Loans can help you deal with any emergency or financial crisis:
- Versatile usage
For example, when you apply for Personal Loan, the principal amount offered by the lender has to be used towards the business, be it working capital, inventory purchase, etc. However, when it comes to Personal Loans, no such defined segments restrain the borrower. Be it a sudden financial crunch, repayment of mounting credit card bills, needing money for down payment of a home or to clear a quick medical bill, you can use it for any such purpose, and more.
- Collateral-free loans
Personal Loans are collateral-free in nature i.e., they are unsecured loans. Hence, it is relatively easy and quicker to avail Personal Loans as compared to other types of loans. Hence, if you need to quickly arrange funds to come out of a financial crisis, Personal Loans could be an ideal solution. However, it is crucial to remember that because this loan type is collateral-free, the rate of interest also stands to be relatively higher as lenders take a greater risk in loaning the amount in case of Personal Loans.
Alternatively, one must always ensure that their loan instalments are repaid on time as even unsecured loans can create a major dent in your credit history. You can check your free CIBIL score online and keep a tab on your credit history.
- Quick and hassle-free approval
Applying for any kind of loan has now become easier with most banks and financial lenders digitising their offerings. Be it applying for business loan online or opting for a Personal Loan, it has all become very quick and hassle-free. You can avail of Personal Loans at ease because the documentation required for these types of unsecured loans is relatively lesser and digital applications have made it possible to quickly apply without stressing about paperwork.
- Faster disbursal
Personal Loans are ideal for practically any purpose that an individual deems fit because most banks or lending institutions help process and sanction the amount faster as well. Once the loan application is approved, the loan amount is directly credited to your bank account. This means that you can use the amount instantly to clear past dues, make big ticket purchase, or for anything else. Unlike other loan processes, Personal Loans are disbursed faster, which makes them the perfect solution to any financial crisis.
- Building credit score
For all those individuals who are still new to the concept of credit score or don’t have a credit score yet, a Personal Loan can help them build their CIBIL or credit score at ease. You have to ensure timely repayment of your EMIs and that no EMI is missed in the entire repayment schedule to prove your creditworthiness to the credit bureaus. It takes time for your activities to affect the credit score but consistently staying creditworthy is the key here. Missing out on timely payments or defaulting in any kind of repayment also has a negative effect on your score.
You can check free CIBIL score online and work towards improving it by making timely repayment of loan amount, credit card bills, staying with the utilisation cap, etc.
- Flexibility in loan amount
A Personal Loan can be a small term need for cash infusion or even a heftier amount that you need to take care of medical expenses. Based on your type of emergency, you can decide the amount you want to opt for and apply for as little as you need. For example, most banks offer Personal Loans that will also help you clear small time credit card bills or fill-in for an EMI if your salary is not due for the next week or two.
You can take control of your financial situation by borrowing as much as you need and only paying interest on that amount. Additionally, you can also decide the repayment tenure by calculating your monthly EMIs and asking your lender for a repayment schedule, which will help you finalise your loan tenure at ease.
In conclusion
Personal Loans have become one of the most sought-after loan types in current times and it is largely because of the flexibility they offer. If there is ever an emergency or cash flux that you can foresee in the near future, simply apply for a Personal Loan online as it is available for applicants any time of the day or night.
Personal Loans can help you overcome financial crisis with ease, ensuring that you are not stressed or burdened with the task of arranging funds during an emergency. Remember to apply for a Personal Loan as quickly as possible and not wait till the very last minute. The sooner you apply for a loan, faster it can get approved and disbursed, and you can overcome any crisis in no time! Take charge of your finances and avail a Personal Loan as per your need.
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