Five Smart Ways to Avail of An Emergency Loan During Financial Needs

A sudden financial emergency may come up anytime, which will require you to arrange funds to get through the financial emergency. With the vast number of loan options available in the market today, it is advisable to avail emergency loans in the form of personal loans instead of liquidating your savings. A major reason why emergency loans are preferable is their easy availability that helps you get the funds you need quickly with minimum paperwork.
Mentioned below are five smart ways to get an emergency loan to get through a financial crisis:

1. Personal loan: The first and best option of securing an emergency loan is applying for a personal ;loan from an NBFC like Bajaj Finserv that offers attractive personal loan interest rates that are affordable for your finances, and you can also use the personal loan for any purpose you like without being answerable for it. 
   
2. Credit Card Loan: Credit card loans are offered to credit-card holders on the unused limit of the card at higher rates of interest in comparison to personal loan. 
   
3. Gold Loans: Every Indian household possesses a certain amount of gold, which can be used to get an emergency loan in case of a financial emergency. Although it’s a quick and simple way of borrowing funds, you need to be sure of being able to repay the loan amount if you want to avoid losing possession of your gold. 
   
4. Loan Against FD & Mutual Funds: If you don’t possess enough gold to get the loan amount you need; you can get an emergency loan by liquidating your FDs and mutual funds. While most lenders offer up to 50% of the Fixed Deposit amount or mutual fund account, the interest rate charged is higher. 
   
5. Top-up Loan: One of the benefits that come with personal loans, top-up loan allow you to add a top-up loan on an existing loan. You can take this loan on and above your personal loan and meet certain pre-set eligibility criteria.​
   

Borrowers can therefore consider these five options for availing emergency loans, and in case they’re going to apply for a personal loan, they need to keep the documents ready in advance.