Things to Do When You Urgently Need a Loan
A sudden calamity, an urgent hospitalization or an unexpected family event at short notice, a financial emergency can surround anyone at any time.
Although it is always advised to hold emergency funds against at least three months, not everyone is bothered to comply diligently with such suggestions. Anyone could be cash-strapped due to financial resettlement or a delay in business sales to materialize. So, when hit with a sudden financial crisis, how to avail instant cash with almost no paperwork complications becomes a big ask.
To find a subtle remedy to your urgent needs, here are the few tips that can help you get instant cash or the best small business loans without long procrastination.
- Borrow from your employer
If you need quick funds with almost no paperwork delay, requesting your employer to understand the emergency and grant you the cash ASAP is the foremost thing to do. You can ask for the funds against your salary or some percentage of your salary that could be equivalent to a period of 1-12 months. Your employer will deduct a certain amount agreed with you from the salary of each month. But in case, if you might want to quit your workplace during your loan payoff period then that could not be possible until you have completely paid off your loan.
- Credit Card Loan
Another frequent aid to address your financial emergency could be a credit card loan. It allows you to withdraw the cash equivalent to 30-70 percent of your card limit or even more in some cases. Although, it seems to be a nice and easiest way to avail instant cash there might be a cap on daily cash withdrawal that might limit you to some extent. Moreover, if you have not issued a credit card yet, then you might need to go through some delaying procedure to acquire one, which might not suit your case.
- Instant Personal Loan
A personal loan takes a moderate time to get issued but is something that many consider when they have to cope up with a financial emergency. You can go straight to a bank and ask for a personal loan against your six months bank statement and salary slips (if not self-employed). This process can take a minimum of a day or even a week to benefit you, depending on the nature of the bank. However, instant personal loans are often proposed with high-interest rates or in other words, banks tend to exploit the urgent need of the borrower. So read the terms and conditions carefully and be absolutely sure of what you are agreeing to.
- Loan Against Property
You can also apply for an instant amount against your property if you lack the required bank statement or salary proofs. This is a quick and easy way to get your application approved only by keeping your residential or commercial property as collateral. The size of the loan might vary with the market value of your house. This type of loan does not come with high-interest rates, so other than a personal loan, it could be your first go-to option. Loan against property can also offer you quite a large sum of money because the amount offered is directly proportional to the value of your house. Mostly, banks are willing to grant instant or even big loans against a property.
- Loan Against Security
One more solution to your instant cash need is to avail of a loan by pledging against your shares or mutual funds or even insurance policies as collateral. Chances are, that a bank would fund you 50 percent cash of the total value of your shares or offer you a fixed deposit of 50-80 percent which is directly transferred to your current account. But, if your shares portfolio declines with the passage of time then you might have to put a different pledge or increase your shares. The whole procedure offers a quick grant of money and is deemed safe by many. Not only banks, even the insurance companies, and other financial institutions offer quick Loans against Security.
- Loan Against Gold
With a nominal processing charge, you can easily get a loan by keeping gold as collateral. Many financial institutions offer such kind of services at fewer interest rates. You can borrow 60-80 percent of the total value of your gold, as the granters keep room for market inflation. The process is speedy and can offer you funds for a minimum of 6-12 months’ tenure. But, in case you fail to pay off your loan on the agreed terms, you might end up losing your gold.
- Loan Against Your Vehicle
Another swift way to get you the desired funds is by applying for instant funds against your vehicle. Bank or any other financial institution will ask for the owner’s documents of the vehicle and grant you 60-70 percent of the total value of it within a day. The procedure is less brainy and saves you a good amount of time. But, like other loans against pledges, if you fail to pay off your loan with 100 percent compliance to the agreed terms, you could end up losing your vehicle.
- Look for Online Lenders
In the current digital age where every other need is fulfilled online, there is a good chance of finding a worthy online lender as well. If you carry a good credit score, then you can apply for an instant personal loan. All the procedure is carried through the online submission and only an agent of the lender might pay a personal visit to your to verify the declarations. However, in certain cases, the interest is a bit on the higher side. But be sure to avail of any sort of funds from a well-reputed institution and be careful of online scams. Loans on installment are always preferable rather than revolving credit and balance.
Finding instant cash for your business needs is no more a tough task in today’s world. There are all kinds of options available that allow entrepreneurs to arrange the required capital in no time. However, you need to be fully aware of the market conditions and the terms and conditions of different kinds of lenders.