An unforeseen event can affect your financial situation without a notice. You may experience an unexpected cause of celebration, a natural disaster, or an accident all of a sudden. You may find it tough to maintain a cash fund for emergency situations, but the financial experts advise you to create one for a minimum period of six months.
Do you have someone to provide for emergency cash when you meet with a financial disaster? Depending on your need, you may acquire funds from a few good sources. The expense to get the fund sourced, the borrowing tenure, and the urgency of your need are the key determinants of the amount and source of such funds. You might come across a number of lending institutions, but achieving a traditional loan can be a tough and time-consuming affair. You may consider catching up a quick loan with a reputable loan provider like Lendgreen.
You may consider sharing your financial need with your employer first. Your employer might just be able to provide you with a certain amount depending on your salary. Such an amount could be worth the value of your salary for up to 6 months. You may have to repay the entire amount back to him or get it adjusted with your salary through a period of 3 months to a year. You might even need to pay it back with an interest of up to 8%, although it gets interest-free under most circumstances. Such loans are usually customized to your actual requirement, but the funds are likely to get transferred to your account within 3 business days.
Do you have a home loan already? If you have one, then you may apply to get it extended. This way, you could top it up by an amount of up to 50, 00,000 INR and repay it throughout the remaining tenure of your home or for a period of 20 years. Paying it back for the remaining tenure of your home loan is permissible only when you’ve repaid a portion of your original loan for a few good years. Remember that you can’t top up by an amount that exceeds 75% of the total worth of your home when combined with your loan value. You may need to bear an interest of up to 13% while repaying the loan amount. But the loan may get issued within three days since the bank has all of your personal details in their possession.
You may use your credit card to withdraw money from an ATM. You may withdraw a maximum of up to 80% of your credit limit. Again, there’s some restriction if you need to withdraw cash on a regular basis. Drawing more than your car limit is also permissible with most banks and lending organizations, but you need to bear an overdraft charge alongside your cash withdrawal interest. You may withdraw cash anytime from an ATM and pay an interest worth up to 3.5% per month.
Applying for a personal loan is one of the fastest options for acquiring emergency funds. Your loan may get processed within a small period of 30 minutes depending on your ties with the banking concern. The process of issuing a loan in your name may even get faster when you achieve a pre-approved loan from a bank wherein you have a checking account. Borrowing funds from a bank may lead to a quick disbursement of funds. You might need to bear an interest worth up to 24% while repaying your dues.
You must get a vivid picture of your entire financial situation prior to applying for a quick loan. It will help you identify your real need under an adverse financial condition. However, you must restrict your borrowing urge to a bare minimum. You’ll need to work your way out of it by developing the right repayment strategy. You might find yourself in a debt trap if you can’t fulfill your dues on time.