How to Use Short Term Loan to Tide Through a Financial Emergency?
Coronavirus has posed a great threat to all of us. It is such an exceptional situation that extreme measures were needed to ensure the safety of people, and eventually, it resulted in complete lockdown. However, many people are not able to meet their ends comfortably. If you are also the one such person who is stuck in a tight spot because of restricted cash flow and already running dry on savings, you may consider using a Short Term Loan to tide through any kind of financial emergency.
There indeed are many Short Term Personal Loans which are designed and marketed particularly for emergencies. HDFC is one name that offers different products to help customers in their difficult times. HDFC bank offers direct Personal Loans to bank accounts of select preapproved customers in just 10 seconds. They also offer loans to other customers in just 4 hours.
|Loan on Aadhaar Card||HDFC Insta Jumbo Loan|
HDFC Personal Loan is offered at a very low processing fee starting from just Rs 1,999 and applicable taxes. You can apply online and avail of these Instant Loans starting at10.99%. Any individual who is between 21 and 60 years of age is eligible for HDFC Personal Loan. Further, there are a number of online and app-based lenders like mPokket, CASHe, MoneyTap, MoneyView and PaySense, etc which will allow customers to get short term loans instantly.
Here is a list of reasons why a Short Term Instant Loan can be the best choice in hard times.
- No physical interaction required: Since the entire country is in a state of lockdown, unless you are involved in the delivery and maintenance of any essential service, you have to stay at home. With Short Term Personal Loans, you can get the loan approval on the phone using a mobile app or on a computer using the web browser. You do not need to step out of your house. You do not need to visit any branch. You do not need to present any originals or submit any copies of any documents. Click a photo, scan a document, submit through the app or mail, and you are done. All this from the comfort of home.
- No Collateral Required: These are unsecured loans. This means that even people who do not have anything to pledge for security can borrow these loans. CASHe offers a bunch of Short Term Personal Loans starting from loans of just 62 days where you can borrow as much as Rs. 80,000. The entire process is similar to a Personal Loan from a bank. You do not need to have any jewellery, gold bullion, or property to give to the lender as a protection consideration or collateral. Just complete the application process in-app, and you will get your money soon in your account.
- Small Amounts, Small Payments: This is an exceptional time, but we should keep the future aspects in mind too. One reason the short term Personal Loan is the best choice for emergency cash needs is that it can be borrowed in small amounts on an adhoc basis. This also means that when you will eventually have to repay the small loan, your instalment will also be very small. One great choice is the MoneyTap Personal Credit limit, where you can pay interest only on borrowed amount till you have the financial capability to repay your principal amount.
- Interest lower than credit cards: Credit Card Cash withdrawal has been the go-to method for most people to avail fast cash in emergencies. However, the interest rates of Credit Card Cash advance are so high that these are not recommended on even these tough times. An Instant Loan on EMI comes with interest rates well below 18% per annum, whereas Credit Card Cash entail high-interest rate, generally ranging above the 24% per annum mark. The financial emergency may not last long, but the interest rate liability will. So instead of Credit Card Cash, always choose small Personal Loans.
- Quick disbursal: Most of these Short Term Loans are also disbursed very quickly. In many cases, you can have the loan amount in your bank account within a few hours of the application process. There are special cases where you can get loan amount in your account within just a few seconds. This speed of getting money is the only way in which you can effectively overcome any kind of financial emergency. Considering that almost all other loan options will take days, if not weeks, to be processed and that banks are anyway running on skeletal staff, there is no better choice available.
- Low processing fees: Any secured debt will come with very high loan processing charges. Loan Against Property comes with a percentage of borrowed amount as processing charges plus applicable taxes. The same is the case of Gold Loans and almost all other kinds of loans. Short Term Loans, on the other hand, come with very low processing fees. Generally, the amount will be fixed, no matter how much you are borrowing. Considering the overall process of loan application for Short Term Loans is simple and fast, lenders can easily pass on the savings to borrowers.
- Simple documentation: The process of Short Term Personal Loans is generally dependent on quick processing. As there is no property or any other kind of collateral involved, the documentation process of these loans is very simple. You will need to submit basic KYC documents like Adhaar Card and PAN card, statement of the bank where you want your loan amount, and quick selfie from your phone camera. Depending upon a few steps of due diligence, you will get the loan amount in your account without any more documentation needed. In some cases, you might be required to submit income proofs, but this is generally not a common ask.
- Loans available even without credit history: Considering these tough times, many lenders are also providing loans to people who do not have a CIBIL Score. CASHe is one such lender that offers Short Term Personal Loan for 2 months or 6 months using their Social Loan Quotient.
Everyone is trying their best to make through these tough times. This is a situation which has challenged the entire world. Working together, we can all make sure that we come out of this situation as strong as possible.
To apply online for Home Loan, Personal Loan, Credit Card, Business Loan & LAP visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 4 million+ happy customers since 1989.