There can be situations in your life when there is an urgent need of money. It can be a sudden expense relating to your child’s education that you cannot put off and for which an urgent loan is required. You might need urgent loan for business expansion, critical home maintenance, or any number of other reasons. When you find yourself in such a circumstance, an urgent loan is required, which enables you to get money quickly and address an urgent need.
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Is There An Urgent Loan Required To Fulfill A Financial Need
What are Urgent loans?
Urgent loans are the loans that help you in an emergency situation where you immediately need cash. Banks, NBFCs, and many online loan apps offer urgent loans. Your loan application often gets approved on the same day you apply.
Today, there are many banks, NBFCs and other financial institutions which provide urgent loans through mobile app. All you need to do to get an urgent loan is to install any one of these online apps on your mobile phone, upload all your KYC documents and fill in your personal details. If your credit history is good, then you get the loan within a few hours. You can get an urgent loan up to Rs 5 lakh for 5 years.
How To Get An Urgent Loan?
When you require money immediately, you can receive the cheapest personal loan through these channels:
If you have a strong credit score, banks are your best bet for securing a personal loan at a low cost. Furthermore, you won’t even need to submit any documents to the bank if you have a solid relationship with them in order to get a loan. Customers can also get pre-approved loans from the majority of banks. Banks typically do not permit partial prepayment if you want to pay off the loan before the term has expired.
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Non-Banking Financial Corporations (NBFCs) offer loans in a more flexible manner than banks because of their laxer eligibility requirements. However, because an NBFC’s main source of funding is not banks, the interest rates are marginally higher. The fact that NBFCs offer various repayment alternatives is one of their benefits. Examples of NBFCs are Bajaj Finance, Tata Capital.
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Emergency Loan Apps
Here some loan apps which are registered by RBI:
- Dhani App
- PaySense App
- Cashe App
Procedure to get Urgent Personal Loan
Below is the step by step process to apply for urgent personal loan:
Step 1. First of all install any of the above mentioned Loan Apps from Google Play Store.
Step 2. Verify with OTP with the help of your mobile number.
Step 3. After this fill your personal information like name, address, date of birth etc.
Step 4. After this your credit score is checked, if you are eligible for the loan then you will get some credit limit.
Step 5. Now you have to click on Select Emi & Apply and submit the application form after choosing the loan tenure, EMI etc.
Step 6. After this you have to complete your KYC and submit your documents.
Step 7. Enter the details of the bank account and verify it.
Step 8. After this submit your application form.
Step 9. After waiting for some time, the loan amount is transferred to the bank account specified by you.
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The Fintech Companies
Fintech Companies also provide loans with a range of terms, from a few days to many years. The interest rate is typically significantly greater than banks, though. While banks and NBFCs rely on conventional sources for information like credit history and score, fintechs frequently use cutting-edge alternatives like social data streams or geographical indicators. They impose higher interest rates on customers whose financial situation they see as being less clear.
The Money Club is a fintech company that has built an AI-based P2P chit fund based savings platform. Its community banking app aims to make saving, investing, and borrowing money more efficient.
When we suddenly require money, chit funds serve as both a saving and a borrowing instrument. Additionally, you can bid to borrow a lump sum at low interest rates when the need comes. Consequently, there is no need to rely on any debt instrument to meet your urgent financial needs.
Compare this to taking out a loan and setting aside the same amount of money each month for the interest payment. The family has additional financial constraints due to both interest and principal repayment. The money in a chit fund, however, is your own money. When you take out this money to pay for your family’s necessities or expenses, you do not owe anyone anything.
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FAQs on Urgent Loan
Some banks and finance companies give emergency personal loan from 3 months to 60 months, and you can easily avail this loan. You can pay back the loan every month in monthly installments. If you repay the loan on time, your credit score will increase.
You can get an emergency personal loan from Loan Apps from Rs 1000 to Rs 10 lakh. Initially you get lesser amount of loan, but gradually as you repay on time you can also get pre approved offers upto Rs 10 Lakhs.
Urgent personal loan is an unsecured loan which is given by the finance company without any guarantee at its own risk. The interest rate of an urgent loan may be upto 36% p.a. Apart from this, up to 2% processing fee has to be paid on the loan and some lenders may also add additional charges.
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