Financial emergencies can come unannounced in anyone’s life. There might be circumstances where you urgently need cash. In such situations, people have two options. The first option is to utilise the savings to meet the financial urgency. The second option is to take a personal loan and resolve the financial requirement. It can be a tricky choice as both options seem right. Finding the right one for the situation can make a lot of difference. Read on to understand the usage of instant* loans or saving funds in an emergency.
Should we use our savings in an emergency?
Since childhood, we have learned from elders about the importance of saving money. Most people maintain a savings account and use other investment options. Whatever the nature of saving funds, it is essential for every individual. People have several expenses to meet, and they might not regularly deposit in saving funds. The savings for every month might vary due to unexpected expenses. It takes time to build substantial savings. Unlike an instant personal loan, savings are built up diligently over time.
It might seem logical to use the savings fund during an emergency. The financial emergency will be solved, but the savings account will be depleted. It might have taken years to build savings, and it can be used up in days. What if another financial emergency arrives shortly after exhausting the savings fund? You cannot exhaust your savings for every financial need that arises. It might again take years to build up the desired amount in your savings fund.
Let us say someone has to plan a trip with family members. A trip might not seem like an emergency, but it is good for family bonding. In such a case, there is no point in exhausting the saving funds during the trip. Saving funds can be saved for other emergencies more important than a trip.
Why are personal loans preferred during an emergency?
During an emergency, personal loans can be a great option for those in need of quick and hassle-free funding. Personal loans are unsecured, which means that they do not require any collateral. This makes them an attractive option for those who do not want to risk any assets while dealing with a financial emergency.
Additionally, personal loans are often available with a quick approval process, allowing borrowers to receive the funds they need in a timely manner. This is especially important during an emergency, where time is of the essence.
Personal loans also allow borrowers to keep their savings intact, as they do not need to dip into their personal savings to cover the costs of an emergency. Instead, they can use a personal EMI calculator to determine the amount they need to borrow and the repayment schedule that works best for them.
While some people may consider asking friends or family for money during an emergency, personal loans can be a more reliable option. Borrowing from friends or family can strain relationships and may come with strings attached, such as a requirement to repay the loan immediately or with interest. Personal loans, on the other hand, are a formal arrangement with a financial institution, ensuring that both parties are clear on the terms and expectations of the loan.
Here are some points favouring a personal loan during an emergency:
- An online personal loan is disbursed quickly to help meet the financial urgency.
- The lender will not ask how you are going to use the personal loan amount.
- A personal loan is approved quickly for individuals with a high income and good credit score, in case you qualify for their other eligibility requirements
- An online personal loan is available with minimum documentation.
- You can choose a short repayment tenure for a loan and become debt-free quickly, on the other hand, if a borrower wants to spread out their loan repayment over a longer period, they can opt for a longer repayment tenure.
- A personal loan will keep your savings funds, assets, and investments intact for the future.
- A personal loan will aid in building a credit history for future loans.
How to get an instant* personal loan in an emergency?
Gone are the days when you had to visit the lender’s office to secure a loan. With Fullerton India, people can apply online for personal loans and get the amount instantly*. Start by using the personal EMI calculator on Fullerton India’s wesbite Once the personal loan amount is decided, submit the loan application online. Provide the required documents for personal loan verification online. Funds will be transferred to the applicant’s bank account after loan approval.
Conclusion
Savings are accumulated over time with great patience and a lot of effort. There is no need to break the savings fund for every other expense. Fullerton India offers personal loans with flexible repayment periods and affordable interest rates to meet financial emergencies. Submit the online application and get instant* funds with Fullerton India!
*Terms & Conditions applied.