Most common reasons to use emergency loans
If you are someone who ever had a major medical bill to cover, or a sudden car repair or another such financial emergency, in that case you are probably well aware that it is not an easy task to come up with immediate money.
It is always advised that every household shall have its own set of emergency funds as that acts as the most secure form of remedy. But when we step out of the ideal world into the real one, we know that most households cannot save so much to form an emergency fund box. This is where the emergency loans come into the scene. With the provision of emergency loans, you can get immediate cash with ease when you don’t have enough of it to cover the expense.
Types of emergency loans
There are different forms of emergency loans as per the requirements and you can get the type that would best suit your requirement.
- Personal loans
- Payday loans
- Title loans
- Credit card advances
Reasons why you shall use emergency loans
Emergency loans can be used to meet practically any expense. Be it the requirement of meeting medical bills, or for making rent or mortgage payments, or for home or car repair, and even to meet the funeral expenses, as long as it is for the legal purpose, and within the terms and conditions, emergency loans are all you need to make your life so much easier.
Given below is a list of reasons why you shall use emergency loans:
Emergency requirement of immediate cash:
If there arises a sudden need for money to cover some sort of immediate expense, and you do not have cash in hand or do not have any means to raise that amount immediately, emergency loans come in handy.
These days, there is a provision of online forms which enable you to know whether you’ve been approved within a few minutes. The funding can be released within a few working days or even on the same day depending on the type of loan and the lender. You can use the emergency loan in situations like:
- Paying for unexpected medical bills
- For funeral expenses
- If there is an unexpected breakdown of the car or vehicle, it needs to be repaired
- Making payments for past due home rent and utilities
Consolidation of debts:
Expenses incurred from using credit cards can be a difficult thing to control over a period. This is because the interest rate on these credit card loans is quite high. There can also be instances where you might be having an existing loan that can currently put a lot of stress on your finances.
There might be situations where not much time is left to pay your EMIs without defaulting on your loans. In such cases too, the emergency loans prove to be saviours. They can prove to be of great help during such crises, as you can apply for these loans to consolidate all those loans which have high rates of interest being incurred with time.
Home improvements and repairs:
If you own your own home, there might be instances where you would require an upgrade or repair with immediate effect. For instance, if there is a sudden instance where the wall or the ceiling of your house gets damaged, and that too just before the monsoon is supposed to hit; or if any part of your home requires renovation or repair immediately before a momentous occasion, you are going to need a decent amount of money on an urgent basis.
In such cases, you can either dig into your savings or if they are not enough, you can easily apply for emergency loans to cover up the costs. It is advised that before you settle for any lender, you shall thoroughly research various banks and NBFCs. Compare the terms of services and interest rates and make an informed decision before just opting for any bank.
Cover the cost of moving:
If you are moving from one place to another, there is bound to be an expenditure in that. If the place where you are moving is not too far, the expense incurred might not be too much, but the cost would rise dramatically if you are moving from one state to another. The cost of packing up the belongings, hiring movers and transporting the belongings might put a burden. To save you from this, emergency loans provide the required amount within no time.
Financing for vehicle:
If you are going to purchase a vehicle or take it on a lease, emergency loans can also come to great use. And if you have taken secured loans dedicated to the purchase of a vehicle, which keep your vehicles as collateral, and are worried about missing the payments as a result of which your vehicle might be possessed, you can ease the pressure of the situation by applying for an emergency loan.
It is not recommended to borrow money to pay for your wedding. Rather than borrowing, you shall consider cutting off some of your demands to meet your budget. However, if there arises a situation where you need to borrow some amount to meet the requirements, then there can be some options available, like credit cards or emergency loans.
While a credit card is an option readily available, the rate of interest is higher as compared to emergency loans. Thus emergency loans seem to be a much better option.
If you require emergency loans, you shall consider Badger Loans. They are a trusted organisation that provides all types of emergency loans at reasonable rates of interest and the process is hassle-free. Once all the criteria are met, the emergency cash will be made available within an hour and the money would be transferred directly to your account.
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