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.
Read: Need Emergency Money: 5 Ways To Get Money In An Emergency
Is There An Urgent Loan Required To Fulfill A Financial Need
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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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.
Download the Money Club App to Save Borrow and Invest
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.
Read: How Does The Money Club Mobile App Work? – The Money Club
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