Sometimes, unexpected situations can make it difficult for us to manage our expenses within our income. In such cases, emergency personal loans can help us in times of need.
Emergency personal loans are unsecured loans that help you meet unexpected or emergency financial needs. Within a short span of time you can avail of a loan starting from Rs. 50,000 to about 20 lakh. For most personal loan providers, anyone with a minimum monthly net income of Rs. 20,000 is eligible for an emergency personal loan, as long as they have a good credit score.
You can take emergency personal loans for a number of reasons. It could be to fund a car repayment, unexpected education fees, last-minute wedding or travel-related expenses, refinancing of an existing high-interest loan, or for a medical emergency. The benefit of personal loans is that they are almost agnostic to end-use – you can virtually use them for anything you want (other than investment & for speculative purposes).
Being unsecured, emergency personal loans typically charge slightly higher rates of interest when compared to secured loans. There are also other charges associated with late & non-payment – so be aware of the terms and conditions of each loan before you decide to avail of one.
Eligibility Criteria for Emergency Personal Loans
Emergency personal loans have certain eligibility criteria:
- The applicant will typically need to be between 23 and 55 years of age
- Salaried professionals with a minimum monthly net salary of Rs. 20,000, or self-employed individuals (minimum turnover of 40 lakhs) are eligible to apply for emergency personal loans
- The applicant should have been in his or her current occupation for a minimum of two years
- The applicant should have been residing in his or her current home address for at least one year
It might take anywhere between 24 hours to about a week for an emergency personal loan to get approved. If you are looking for emergency personal loans in Bangalore (for example), you need to make sure you have all your documents ready.
Documents Required for Emergency Personal Loans
- An application form for the loan you wish to apply to (unless applying through digital lenders such as Qbera.com), along with your latest photograph
- A proof of your identity which could be your passport, voter ID, Pan Card or driving license
- A proof of address such as your passport, utility bill or rental agreement
- House-ownership proof (if applicable) in the form of property documents, an electricity bill or a maintenance bill
- Bank statements for the previous three months
- Salary Slips for the previous three months (or recent salary certificate along with the latest Form 16)
- Security cheque from your salary account (the agent will usually help you fill this out)
Self-Employed individuals may be required to submit a few more documents such as office address proof, business existence proof, IT returns, etc.
If you want to speed up the process, do explore alternative online lenders such as Qbera.com.