emergency funds

How a Personal Loan Can Help You Manage the Month-End Cash Crunch

October 30, 2022 • 101 views
Author: PoonawallaFincorp Category: Personal Loan

The truth about emergencies is that they come without warning. They might arise from a health issue, an accident, an unexpected house repair, unplanned vacation expenses, etc. Another fact is that unexpected emergencies can occur to almost anyone. Your savings may be put under pressure, and if you don't have the cash on hand to cover expenditures, you might be compelled to take out a loan. Nevertheless, it could be difficult to quickly borrow a large amount of credit from your friends and relatives. What would you do if that were the case?

The lending industry has evolved over the last few years, resulting in several new institutions and instruments that meet the credit demands of a wide range of people. Particularly in times of need, Personal Loans have grown in popularity as an easy way to obtain credit. Let's discuss Personal Loans in more detail and how they might be beneficial to you during a cash crunch.

Personal Loans are unsecured loans that can be obtained from banks or other financial institutions without putting up any form of collateral. These loans are typically approved instantly and can be utilized to cover any unexpected personal financial emergencies. Instant Personal Loans can be taken out to cover unforeseen costs, pay off existing debt, consolidate debt, make house repairs, finance travel etc. Unlike other secured loans, you are free to use the money however you deem fit.

How Can A Personal Loan Help Manage A Cash Crunch?

Personal Loans provide you access to emergency funds that go beyond your monthly income and can be used to cover unexpected expenses. Personal Loans are a suitable option for borrowers in need of quick cash because of features including a simple application process, no requirement for collateral, fast approvals, and instant disbursals. Listed below are some of the factors that make Personal Loans an excellent enabler in times of financial difficulty:

Easy access

The accessibility of Personal Loans is one of its main advantages. Most lenders have a simple loan application process that is typically digital as well. For instance, at Poonawalla Fincorp, all it takes is a few minutes to visit the website, complete the application form, provide the necessary KYC documentation, and sign the loan agreement. Since one can apply for a Personal Loan application online from the comfort of their own home, borrowers who are occupied with an emergency can avoid making multiple trips to the lender’s branch, filling out onerous application forms, etc.

Rapid loan approval

If all conditions for eligibility are satisfied when the Personal Loan application online is finished, approval is given right away. Personal Loan applications are typically processed within a few business hours by financial institutions. Every valid loan application submitted to Poonawalla Fincorp is accepted within a few business hours.

Collateral-free

Most individuals find it difficult to put up an asset as collateral during the loan application procedure. Banks and other reputable financial institutions offer unsecured Personal Loans without the need for collateral. If all the requirements are met, you will be handed the loan amount with no restrictions on how to utilize it.

Also Read: What Is FOIR And How Is it Calculated On A Personal Loan?

Flexible repayment plans

It usually takes a while to recover from a financial setback or other disruption. Paying high loan EMIs during this period can make it more difficult to get back on your feet. However, most financial institutions give their clients the choice to select the most suitable repayment plan based on their financial situation, which can help them in better budgeting. Personal Loans are a desirable option for borrowers thanks to these flexible repayment plans because they give them a great deal of control over the EMI. Using the Personal Loan EMI Calculator online, you may choose from several customizable repayment plans at Poonawalla Fincorp.

High sanction amount

Without putting up any collateral, borrowers can obtain Personal Loans from banks and NBFCs for sums up to several lakhs. You can apply for a loan at Poonawalla Fincorp, for example, for a sum ranging from ?1 Lakh to ?30 Lakh.  Your repayment history and credit score may impact the loan amount sanctioned.

Attractive interest rates

Customers can now obtain unsecured Personal Loans from lenders offering competitive interest rates. Borrowers have a wide range of options to choose from, allowing them to pick the loan with the best terms and interest rate. Although Personal Loans have higher interest rates than secured loans, they typically have lower rates than credit cards. A Personal Loan with a lower interest rate can be a smart alternative for credit card debt.

No restrictions on usage

A Personal Loan has no usage limitations, unlike home or car loans. You can use these emergency funds the way you want, which is extremely helpful in certain situations. For instance, during a medical emergency, one must pay for transportation, medications, hospital bills, and even accommodation in a different location. Clearly, having the freedom to use the loan amount any way you see fit is a big benefit.

Improve credit score

You can raise your credit score with Personal Loans, which is another important benefit. Even if it might not be the primary concern during an emergency, you indeed need a healthy credit score to obtain loans in the future. Borrowing a Personal Loan and paying it back it on time will help you boost your credit score and help you recover in the long run.

Final Thoughts

Personal Loans are a great way to cover large, unexpected expenses like a medical emergency, house renovation, car repair, etc. They ensure that you won't be required to use all your savings in an emergency and that you'll be able to effortlessly continue to pay your monthly bills in the future. To relieve financial pressure during a cash crunch, it is better to take out emergency funds via a Personal Loan.

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