Have you ever faced a severe money crunch on short notice? Have you needed a financial bailout and wished you could find immediate help? Have you wished that you had extra funds to avail the limited-time opportunity? Ahoy there, Personal Loans to the rescue, mate!
Personal loans are unsecured loans that can be applied for by any Indian citizen over the age of 21 and earning a net monthly income over Rs 30,000. Sounds simple, doesn’t it? You do not need any collateral to apply for a personal loan. The documentation is minimal and the processing is done within 24-36 hours.
Now let us look at five emergency scenarios where a personal loan turns out to be the knight in shining armour.
- Medical Emergency
- Kid’s education/coaching fees
- Limited time investment opportunity
- Rental House Deposit /Relocation
- Business cash crunch
When you are faced with a medical emergency, your mind is in a state of turmoil. The expenses are high and unexpected and if it is the end of the month, the problem becomes more complicated. Time is of the essence and you would need quick access to funds. If the expense is very high, there is no point in swiping your credit card unless you are confident of paying it off by the due date. The interest rate on credit cards on the amount outstanding is 2-2.5% per month. A personal loan, on the other hand, costs around 18% per annum. You can get an amount ranging from Rs 50,000 – Rs 10,00,000 for a duration of six months to five years. The best part is that the personal loan is disbursed within 24-36 hours.
Kid’s education/coaching fees
In today’s times, school and coaching fees for kids cost a bomb. In the higher grades, enrolling for two-year coaching can set you back by Rs 5,00,000 – Rs 6,00,000. If you want to ensure admission for your child in one of the good engineering or medical colleges, this expense becomes mandatory. Shelling out such a big amount at one go can be stressful. This is where a personal loan comes to the rescue. You can easily use a personal loan to pay the fees and repay the loan in EMIs over the agreed tenure.
Limited time investment opportunity
Suppose you come across a very attractive IPO that will be a great opportunity to invest in a good company. It could also be a tax savings scheme that would yield you benefits. The price of some assets /shares has dipped presenting a good limited time investment opportunity. If you cannot invest at that point, you have lost the chance. This is where a personal loan can be a saviour. Since personal loans are processed within 24-36 hours, you can plan your investments accordingly. Once you realise your gain, you can choose to prepay the personal loan before the end of the tenure. Foreclosure after six months does not attract any prepayment penalty.
Rental House Deposit /Relocation
People often have to move houses or even relocate cities due to their jobs. Finding a rental property is not easy. In most cities, house owners require six to twelve months’ rent as a deposit. That can be a high amount in some cities and could lead to a temporary cash crunch if you pay from your savings. Under such circumstances, it is better to opt for a personal loan to manage the immediate expenses. You can repay the loan over the agreed tenure in fixed EMIs. After servicing the loan for six months, you can choose to prepay the personal loan in part or in full.
Business cash crunch
If you are facing a cash crunch in your new business or start-up and do not have the time to apply for a business loan, you may look at the personal loan option as a stop-gap arrangement. This works well for a small business where the requirement is a few lakhs. The best part is that, unlike a business loan, a personal loan does not need collateral. The processing is quick and the documentation required is minimum. This can help you tide over the temporary crisis and get your foothold back.
There are several other situations like buying that fancy gadget, taking your dream vacation, paying off your expensive credit card debts, splurging on your wedding, renovating your home etc where you can avail of a personal loan. The documents needed include –
- PAN Card
- Aadhaar Card/Passport/Driving Licence
- Salary Slips of last three months
- Bank Statement of Salary account for the last six months
All of these are readily available. This makes the personal loan application process at Loan Tap, a breeze. Once the online application along with the above documents is uploaded, the Loan Tap team evaluates the application. Once everything is found satisfactory, the loan amount is immediately disbursed to the mandated account.