With the current scenario, emergencies may arise out of the blue. The pandemic has only increased the instances of crises that have occurred. So, having the option to avail of a personal loan instantly during emergencies can prove useful.
5 Steps to Avail Personal Loans for Emergency Situations
1. Ensure a good credit score
To begin with, your credit score is one of the most important factors when it comes to applying for a personal loan. The credit score is commonly referred to as the CIBIL score. It is recommended to maintain a CIBIL score at a minimum of 750. You can begin by repaying your credit card dues and keeping a good credit history to improve your credit score.
2. Check your eligibility for a personal loan
While a credit score is important, other factors determine your eligibility for a personal loan. For instance, many financial institutions consider your source of income an important factor in granting you a personal loan. Typically, salaried applicants are preferred over non-salaried applicants. Besides, your type of employment can also determine the interest rate on the personal loan. Similarly, your financial capability to repay the EMI is important in granting a personal loan. So, ensure you meet all the eligibility criteria required for a smooth process while applying for a personal loan.
3. Keep the required documents ready
To begin with the personal loan process, you will be required to submit a list of documents to the bank or the financial institution. Some commonly needed documents are your Aadhar card, PAN Card, Driver’s License, Utility Bills such as the gas bill, electricity bill, or the water bill, Passport-sized photos, Salary Slips, recent bank statements, and others. Having these documents handy can reduce the time taken from your side while applying for a personal loan. By submitting the correct documents, you can also refrain from re-submitting the loan application form, thereby reducing the delay in availing of your loan.
4. Pick the right loan provider
One of the most important factors is to choose the right loan provider. It would be best if you looked into the lender’s credibility in the first place. You could start by looking for reviews and testimonies of the loan provider. It is also crucial to enquire about the paperwork and the processing fees of the lender. A simpler documentation process can be better and save you time. In addition, if your loan provider has a good response time, it will be beneficial when you have queries. Moreover, it can help you choose a loan provider with a fast disbursal time as you can quickly avail of your loan.
5. Look for benefits and additional features
While a personal loan comes with its financial benefits, certain personal loans also offer other benefits to customers. One of the most convenient features is the pre-approved loan option. With this feature, availing of a personal loan can come in handy in case of emergencies. For instance, some personal loans also allow you to withdraw multiple times as and when you need a certain amount of your loan. This feature will help you handle an emergency flexibly and flexibly according to your needs.
The Bottom Line
With these five pillars of a personal loan, you can stay prepared to get an instant loan that can serve you in emergencies. So, ensure to have the required documents ready while maintaining a good credit score to avoid any hassle while availing of a personal loan.