Four Things to Consider When Taking a Loan for Financial Emergencies

Financial emergencies can come at any time, and some will be severe enough to drain all your savings.All the money that you had saved for a rainy day might not be able to cushion such a blow. At such times one can always turn to loans to lessen the load on themselves. Business loans in times of crisis can save your company from going bankrupt. Always use a Business Loan EMI Calculator to calculate your EMIs, so you can adequately manage your monthly liabilities.

A Few Things to Consider Before your Approach a Lender

 

·         Loan Amount

 

The amount disbursed to you will depend on your income and credit history. The value of the collateral and CIBIL Score also are significant factors.

 

·         Processing Time

 

A loan that will take time to be approved and disbursed might be useless to you after a few days of the emergency itself. You should know which of the loans have the shortest processing times.

 

Usually, gold loans and loans against credit cards are processed within the same day. A personal loan may take anywhere between a day or a week.

 

·         Processing Charges

 

Gold loans have the lowest processing charges of all investments. Mostly the processing charge is anywhere between 0.2% to 2 % of the loan amount. Many personal loans have a 2 or 3% processing charge, but it is often waived off during festivals.

 

·         Loan Tenure

 

This is a crucial part of the loan repayment plan. A longer tenure means lower EMIs, but the interest charged would be higher. Short tenure means that the EMIs would be costly, but the interest rate charged would be less.

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