Tips To Get Instant Personal Loan For Emergencies

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Personal loans offer great financial help when there’s a shortage of funds. People choose it due to its collateral-free feature and flexible repayment tenure. You can pay off the borrowed loan amount between 12 and 48 months according to your convenience. 

A personal loan can be taken when there’s a wedding in the family, and the savings don’t meet the budget; when your insurance policy doesn’t cover hospital bills; or when you fall short of funds for any expense of personal nature. In any of the situations, you can apply for an emergency personal loan and get instant approval from top lending institutions like Clix Capital. 

Here are a few tips you can incorporate before proceeding with the loan application. 

Know the Financial Institution Eligibility

You first need to check the lending institution’s personal loan eligibility criteria. When you know the loan eligibility criteria, getting approval for an emergency personal loan will be easy. 

Although the eligibility criteria may differ from one financial institution to another, still the basic ask remains the same, such as: 

  • Good credit score – preferably 630 and above 
  • Age between 21-58 years
  • Minimum salary of Rs 20,000 
  • Minimum 1-year job experience with six months in the current organisation 

Usually, lending institutions publish their loan eligibility criteria on their websites, which is easy to access. Check the eligibility criteria and see if you qualify for the loan. If you qualify, proceed with the online application. 

Keep Track of Your Credit Score

Having a default-free credit record is another thing you should take care of before applying for an emergency personal loan. An Experian credit score of 630 is the minimum score lending institutions like Clix Capital consider when considering your loan application. If you meet this financial institution’s requirements, there won’t be any delay in getting the personal loan.

However, if your score is below 630, it is wise to improve it before applying. Go to the credit bureau website and check the credit report. Now, see what is making your credit score poorer. Are the unpaid dues or an active loan account still need to be closed? Resolve the errors in your credit report and maintain a healthy score. 

Apply for a Reasonable Loan Amount

When approaching the lending institution for a personal loan, apply for a loan amount you can afford to repay. Because if you take a loan beyond your repayment capacity, you may tend to default. Use the personal loan calculator to calculate your EMIs and apply for a loan with a favourable tenure and interest rate. 

An eligibility calculator is an efficient tool that helps borrowers finalise a suitable EMI according to their monthly budget. To use this, you need to enter the loan amount, interest rate and repayment tenure and get the monthly instalment amount you can pay. You can access the loan calculator online on the website of Clix Capital for free.  

Don’t Apply for Multiple Loans

A common mistake most people make is applying for different loans simultaneously, not knowing how it can impact their credit history. Every time you apply for a loan, the lending institution makes a hard inquiry, which impacts your credit score negatively.

Multiple loan rejections reduce your credit score, making getting approval on your emergency personal loan application difficult. Avoid making such mistakes to get an instant loan for your emergencies. 

Keep the Documents Ready

The personal loan application process requires a few documents, usually identity, address and income proofs. As these are basic documents, ensure you have them ready before applying for the loan. 

NBFCs like Clix Capital provide an easy online application process for personal loans. If your KYC is updated with your Aadhaar and PAN, you don’t need to upload or submit the documents anywhere. You can get them verified online within a matter of minutes.

Conclusion

Now that you know the emergency personal loans’ application and approval process, choose to apply online and get instant approval. Remember, time is crucial during emergencies, so every minute counts. A quickly approved loan can help you handle the situation better than waiting for funds from lending institutions with tedious procedures. 

You can prefer online lending institutions like Clix Capital and get instant loans of up to 10 lakhs without collateral at the best interest rate. There are no end-use restrictions, so you can use them the way you want. 

So, whenever an emergency strikes, a personal loan is there to help you fight it with confidence! 

About the Author

Amaira sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.