What do you do when you need cash now, and payday is days or weeks away? Most people usually panic and allow stress to consume them. While unplanned expenses can be frustrating, there’s something you can do.
Financial experts advise us to save for emergencies to cover unexpected expenses. However, not everyone can manage that due to various reasons.
Thankfully, there are ways you can get fast cash when you need it. And one of them is taking an emergency loan. Today, we will talk about why a personal loan for an emergency may be the best solution and how to access this loan. Let’s get started.
What Is a Personal Loan?
A personal loan is a form of credit installment, which gives borrowers a one-time payment of cash. Then, the borrower will pay the loan back with added interest within the agreed term. These loans do not come with usage restrictions. Therefore, you can use them to cover any emergency expenses.
Can Personal Loans Cover an Emergency?
Yes. Personal loans are very flexible. As such, the borrower can use them in various circumstances. Since the cash is deposited in your account, you can use it for any reason, like paying medical bills, consolidating debt, or repairing a leaky roof during floods.
Even the repayment terms of personal loans are very flexible. You can choose long periods of 12 months and above if you want a lower monthly payment. Or you can choose shorter periods, which means paying more but less in the long run. Therefore, it gives you a lot of flexibility, depending on your financial situation. Other than flexibility, here’s why personal loans are suitable for emergency funds;
• Online Application
No one has the time to visit a lender’s office during an emergency. It is why traditional loans are not suitable when you need money urgently.
Thankfully, you can apply for a personal loan online at the comfort of your home or wherever you are. Simply visit the lender’s website using your smartphone or computer, download and complete the application from the app, then submit. The lender will then review your application, and if successful, you’ll have the money in your account within a short time.
The online application saves you time and effort that you’d have otherwise used to travel to the lender’s office. Plus, it ensures that the loan is available at all times and individuals can apply for it conveniently.
• Lower Interest Rates
Emergencies are stressful times. As such, it’s easy for one to overlook the interest rate they are being offered. Generally, personal loans have a lower interest rate compared to traditional loans from the bank. As such, you will spend less money repaying your loan, and even if you forget to check the interest rates, you’ll not break the bank when repaying the cash.
• Instant Cash Access
An emergency calls for quick access to cash. Therefore, you may not have time to visit the bank to make an application or call friends and family for help.
For instance, if someone needs a medical emergency and the hospital requires them to pay $10000 before the treatment starts, going the traditional loan route may take quite some time before the application is approved. Most traditional loans have a waiting time of at least one to four business weeks before approving the application.
Thankfully, personal loan lenders have moved the application process online. Therefore, they can review and determine your eligibility the same day you apply. Furthermore, same-day lenders are available and ensure you get the loan during the same day it is approved. Most personal loans take between 24-48 business hours for the funds to be in your account. Thus, you can quickly cater to the emergency.
• No Collateral
Most lenders offer unsecured personal loans. Thus, you don’t need to pledge any collateral to be offered the loan. Lenders will only check your credit score to determine whether or not to approve the loan. This unsecured nature of personal loans makes them quick and easily available during emergencies.
How to Get a Personal Loan for an Emergency in One Day?
So now you have understood all about personal loans for emergencies. The next question you are asking is how you can access them? Well, first research on personal loan lenders online. Go through each lender carefully, ensuring that you understand their offering and interest rates. Also, make sure you compare the loan amount and terms.
Then, pick a suitable lender for your needs. After, start applying. Bear in mind that you’ll have to share your personal and income information. Then the lender will also check your creditworthiness and if you’re eligible, approve your application. The time you’ll get the funds varies from lender to lender. However, most usually take at least 24-48 hours.
A financial emergency isn’t the end of the world. And a personal loan can help you cover your expenses. So next time you need cash fast, why don’t you try this option?
Show Comments (0)