What makes personal loan the best bet to deal with financial contingencies?

Published: 05th October 2017 06:17 PM  |   Last Updated: 06th November 2017 07:27 PM   |  A+A-

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The uncertainty of life is the most certain thing about it. Have you ever found yourself stuck in a financial contingency? Children can get sick; you can be involved in a car accident, or any other unfortunate event can arise to disturb your monthly budget. We, all of us have faced such situations at some point in time when our pay cheque refuses to stretch anymore!

When you find yourself in a financially stressed situation where time is a constraint and your ‘need’ is urgent, where should you turn for help? Here, a personal loan can be your savior to tide over short-term financial volatility. It is a loan which you can avail to meet both your planned and unplanned financial needs. 

Here are some financial contingencies which you can deal with a personal loan and get immediate relief.

  1. Car Repairs

Imagine, you are coming from your friend’s party when your car hits the truck coming from the other side. there is no serious physical car faces the major brunt. You have a car insurance and you approach the insurer for the claim settlement who refuses to settle it because you were under the influence of alcohol at the time of the . Now how would you repair your car and meet this unexpected expense?

In such a situation, you can apply for a personal loan and get your car repaired. You can apply for a personal loan online through a simple application process and get the required funds for the repairing purpose.

  1. Hospitalisation Expenses

Ailments and accidents do not come with a notice. Considering the rising inflation rate in India, medical emergencies not only cause physical but also dig a hole in your pocket. The situation may become worse if due to illness or accident, you may not be able to work, but, your medical bills would pile up. Your health insurance policy may not cover all your medical bills, which means, you would have to settle some expenses from your pocket.

At this stage, you can apply for a personal loan online to pay your medical bills quickly. Moreover, you can use a part of your loan amount to pay your medical bills and the remaining to cover the loss of income, which could happen when you lose your job due to your medical condition.

  1. High Outstanding Debt

While on the one hand, credit card brings with it lots of comfort and ease, it can turn into a debt problem if you fail to manage it well. Credit card companies levy high rate of interests on its defaulters which can go beyond 30% to 40% as well. The situation becomes worse if your salary is not enough to meet the credit card bill.

This debt could add to your other budgeted expenses and prevent you from saving for your financial goals. To get rid of high credit card dues, you can apply for a personal loan. If we look at the high interest rate of credit cards, it makes complete sense to go with a personal loan which relatively comes at a cheaper premium rate, and can help you save some money as well.

  1. Reconstruction of the House

    God forbid, your house is damaged by earthquake, fire or due to any peril, without home insurance, you might face difficulty in reconstructing your house. Here you can apply for a personal loan online and get funds to reconstruct your house. Even if you have a home insurance policy and think that the loan amount is insufficient for the reconstruction or refurbishing of the house, you can apply for a personal loan online and get the immediate funds which can be used for reconstructing and refurbishing of your house. 

Along with the above, it is feasible to use a personal loan for buying electronic appliances, funding a holiday/marriage, funding your child’s educational course, etc. 

Whenever you face a financial crisis, applying for a personal loan online can be the best thing that you can do. With personal loans being offered by both banks and non-banking finance companies like Aditya Birla, it is always advised to make a systematic comparison before zeroing in on one option.

To sum up, a personal loan can help you deal with any cash crunch. While having a contingency fund is important to deal with a financial emergency, a personal loan can be the best option in all the cases.

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