The COVID-19 pandemic has disrupted economies and shattered families. Many people have had to endure a reduction in their income. In such times, you have no option to manage your finances without redeeming your savings, investment, or taking loans.
Personal loans acquired from a personal loan app have been tremendously popular among borrowers. Whether you have to deal with a medical emergency, education, travel, or paying the down payment of your home loan, you can get instant funds through a personal loan without putting any burden on your pocket.
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When you hit a cash crunch, your priority is to access funds as quickly as possible. Unlike the traditional way of taking loans, online loan apps have made it easy and convenient to access cash. It enables you to submit your applications within minutes and get the sanctioned loan amount into your bank account within hours.
How can a personal loan app help tide over a financial crisis?
There are several benefits you can get using an instant loan app. The most crucial one is instantly accessing funds.
- Enough funds to cover for all emergencies
Through an instant loan app, you can get a high loan amount to cover the cost of big tickets like expensive surgery, international travel, wedding, or higher education. However, the loan amount that you will get depends on factors, such as your credit profile and repayment capacity.
If you have a good relationship with your lender, you may benefit from pre-approved personal loans. Again, the pre-approved loan amount will also depend on your monthly income and repayment capacity.
- Serves multiple purposes
Another benefit of acquiring a personal loan through an online loan app is that you can use the sanctioned loan amount for whatever reason you would like. The beauty of a personal loan is that there are no restrictions imposed by the lender on the end-use of the loan amount. After getting the amount into your bank account, you can use it to pay for your education, wedding, medical emergencies, debt consolidation, or even invest.
Unlike secured loans, borrowers are not required to pledge their assets as collateral to get funds. A personal loan is entirely collateral-free. However, you will have to maintain a healthy credit score and monthly income to get the deal you want.
- Save time and energy
When you have to pay your or one of your family member’s medical bills on an urgent basis, a personal loan app can save your day. Without visiting any physical location, you can just download an online loan app on your phone, fill in your details, and submit your documents from anywhere at any time. After your application is approved, the sanctioned loan amount gets credited to your bank account within hours.
An instant loan eliminates the time taken in completing formalities and saves you the legwork. It is a hassle-free way of getting loans.
- Attractive interest rates
The personal loan market is highly competitive, and it allows you to enjoy affordable interest rates while applying for a loan. You can get interest rates as low as 11.99% for a loan tenure of up to 60 months. However, before opting for a personal loan through a personal loan app, it would be wise to compare different lenders and their rates to get the best rates available in the market.
- Flexible repayment and loan tenure
Online loan apps allow you to repay the sanctioned loan amount along with the interest within a tenure of 12 to 60 months. It enables you to choose a loan tenure that best serves you. However, you can use your lender’s online EMI calculator to better plan your repayments. It allows you to know your estimated EMI before you borrow.
- Hassle-free documentation
Personal loan apps provide easy and hassle-free documentation while applying for a personal loan. You will only need to scan the requisite documents and upload them on the app. The documents required to take a personal loan are PAN Card, Adhaar Card, and Driving Licenses as your identity, address, and age proof. Your salary slips and bank statements. You must also submit your income tax returns (ITR) or form 16.
If you have no other means of managing your finances in these financially distressed times, it would be wise to apply for a personal loan through an online loan app and get the loan amount credited to your bank account within hours of approval.