Your entire financial strength may be affected all of a sudden by an unforeseen act or event. You may lose control over your financial situation due to an accident or natural disturbance. Likewise, any event of celebration might leave a short-term impact too. Under these emergency circumstances, you might find it tough to maintain your cash fund. Experts tend to advise you on creating your own emergency reserve for about 6 months in advance.
You may not have someone to provide you with cash when you’re experiencing a financial crunch. You might achieve funds from some reliable sources depending on your actual requirement. The availability of such funds can be ascertained by taking into account the urgency of your need, the loan period, and the cost to achieve them. You might experience a number of hassles while seeking a traditional loan from a lending company, so you may even consider applying for some online loans. This article will provide you some insight into simple borrowing.
Here are a few simple loan options that you have in hand:
Loan against salary.
Check out your option to gain some financial assistance with your employer. A portion of your salary may come in handy especially when you’re under a financial crunch. Your employer might even provide for an amount that’s equivalent to what you’d earn for 6 months. Such a loan may be adjusted to your salary for a period of 1 year. You may or may not have to pay an interest amount in addition to a portion of the principal amount every month. The amount of money you take a loan depends on your requirement.
Extended home loans.
You may have applied for a home loan in the recent past. You may choose to get your loan extended. You may extend it by up to 50, 00,000 INR and then get it repaid through the remaining years of your loan tenure. This is allowed only after you’ve met a certain portion of the principal amount for over a period of time. You can’t really get the loan extended to an amount that edges past 75% of your home value in combination with the loan value.
Credit Cards.
You must be using your credit cards to make online purchases. But you may even use them for withdrawing cash. However, the ATM doesn’t allow you to enjoy cash withdrawal over 80% of your credit limit. Also, you may experience some limitations pertaining to regular withdrawals. You may get in touch with a few lending organizations that allow you to make over-limit withdrawals. But for this, you’ll need to bear some overdraft charge apart from your regular cash withdrawal interest. An interest of up to 3.5% has to be paid per month for availing the ATM cash withdrawal facility.
You must achieve a clear picture of your overall financial situation before applying for an online loan. Prior to applying for a loan, you must think of a feasible repayment strategy. That’s why it’s truly important for you to fulfill all dues on time or else you might land up in some debt trap.
