An emergency may knock on your door when you are hardly prepared. Although you might have an emergency corpus to take care of such situations, considering the ever-rising cost of healthcare, that, might fall short. An emergency personal loan may be your best bet during such times.

An emergency loan is the best way to fund short-term financial emergencies without breaking your existing fixed deposits, emptying your savings account, or paying high premiums for medical insurance. Typically, the entire loan approval process happens online, and it takes no more than fifteen minutes to submit the documents required for a personal loan and complete the formalities. The money gets directly credited to your bank account before the end of the day.

How to Ensure an Emergency Personal Loan Approval

As an emergency personal loan is the most convenient loan during an emergency, to ensure its approval, you should keep the following points in mind.

1. A credit score of 700 and beyond can fetch you the best interest rates and loan terms.

2. It is better to apply for one emergency loan at a time. Too many loan applications can negatively impact your credit profile.

3. Try to keep a six-month gap between personal loan applications.

4. Keep an eye on your debt-to-income ratio. Ensure that your debt does not cross 50% of your monthly net income.

5. As personal loan interest rates are often lower than credit card rates, it is wise to keep your credit card bills in control.

6. Ensure that your credit profile has a healthy mix of unsecured and secured loans.

Conclusion

Emergency personal loan interest rates are more cost-effective than many other loans. Use a personal loan EMI calculator to check which loan term offers the maximum savings. Also, create a budget for paying the loan dues regularly, as non-payment can hit your credit profile hard.

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