Personal loan as a financial product and as a credit segment has grown significantly in recent years. According to RBI, at the end of February 2020, this financing method accounted for almost 28% of India's total credit book. To complement this report further, another market research has forecasted that, personal loan in India is likely to grow at 10% between FY2020-25.
Evaluating different aspects behind this growth will put the spotlight on the borrower-friendly benefits of this financial product, which has played a pivotal role here. Advantages like swift disbursal and flexible repayment terms have made emergency personal loans a go-to product for many to manage any financing distress.
4 Instances Where an Emergency Personal Loan Can be Helpful
Here are some instances where access to a quick personal loan prove to be helpful –
1) Medical Emergencies
Medical emergencies are hard to predict. Moreover, the rising costs of hospitalization and associated expenses can quickly exceed the insurance coverage amount and exhaust your savings.
You can avoid facing this financial distress by opting for an emergency personal loan. Since there are no restrictions on its usage, and the amount is typically high, you can manage such situations without any hiccups.
2) Debt Consolidation
Debt consolidation is the process of refinancing your outstanding by taking a single loan to pay-off others. It helps you to streamline EMI, manage them better, and save a considerable amount in interest repayment.
In this regard, personal loans present an excellent option for debt consolidation. Since personal loan interest rates are competitive, and it comes with a flexible repayment schedule, you can easily manage your loan EMIs.
3) Educational Expenses
Online personal loans are a great option to manage expenses of higher studies as well. Compared to a traditional education loan, this financing option extends better terms, improved repayment options, and most importantly, the flexibility of usage.
Thus, you can utilise this financing option to deal with any urgent fund requirement, be it for resources required for a project, a hike in tuition fees, or accommodation if studying away from home.
4) Home Renovation
Home loans are purpose-built, and you cannot use them to meet any additional expenses. In comparison, a personal loan in Hyderabad offers better flexibility; you can use the fund for home renovation and repair.
Even though it is not an emergency expense in its strictest sense, in some instances, you need to do some urgent repair work. Quick personal loans can be handy in those situations.
Apart from these four, you can meet an array of financial obligations with an emergency personal loan. However, being an unsecured financial product, you need to meet a set of stringent eligibility criteria to qualify for it, such as a 750+ CIBIL score.
But you can easily bypass it by opting for a gold loan. Being a secured financing method, it has lenient eligibility terms, making it easy to avail. Along with that, it also offers similar benefits to a personal loan, like no end-use restriction, which further increases your convenience as a borrower.
Furthermore, with Rupeek gold loan Hyderabad, you can now receive the services at your doorstep, which further amplifies your convenience.
Another significant benefit of a gold-backed emergency personal loan is its quick availability. With specific financial institutions, obtaining a loan of this sort only takes an hour. Thus, handling emergencies becomes simpler. However, before applying for one, be mindful of the loan terms, and decide accordingly.