Whether you are trying to pay off an urgent debt, dreaming of going on a retail therapy expedition or facing off an unexpected expense, there is no doubt that having access to cash would make your life a lot easier. In times of emergency, personal loans are a lifesaver, with their instant loan approvals, fewer paperwork hassles, and flexible terms. Although lenders may charge higher interest rates as they are unsecured loans, personal loans in cash are one of the best ways to secure a large number of funds quickly. You can also opt for credit card cash advances or liquidate your other assets to raise money.
- Take out quick personal loans: With their swift approvals and hassle-free sanctions, personal loans are one of the best ways to get access to a large sum of money. However, you must have good credit scores and adequate income to pay off the monthly EMIs to make use of quick personal loans.
- Take a credit card cash advance: You can take a credit card cash advance if you are short on funds. Taking a credit card cash advance means withdrawing money from your credit card account. They typically have higher interest rates and comparatively higher APR charges. Some lenders may have limits on how much you can withdraw by doing a credit card cash advance. They do not offer a grace period. As soon as you make a credit card cash withdrawal, interest begins to accrue in your name.
- Liquidate your assets: Most Indian households have a stack of gold jewelry to be used in times of financial crises. If you have jewelry, stocks, bonds, fixed deposits, or other kinds of assets, liquidate them. Some lenders may charge penalties if you break an investment, so make sure to weigh the pros and cons of breaking an investment before you liquidate them
- Apply for peer-to-peer loans: Peer-to-peer loans do not require a lending firm to act as the middleman. You can avail of loans directly from individuals, who are willing to offer you the money. Lenders are free to negotiate with borrowers. The money transfer and monthly payments are handled by the platform. So, make sure to check the legitimacy of the website, from where you are availing of peer-to-peer loans.
- Do a cash-out refinancing: If you have an ongoing mortgage loan, you can take another loan to get fast cash. For example, if your mortgage value is INR 50 lakhs and since you purchased it, the value has increased to INR 90 lakhs, lenders will give you the difference in cash and lock you in a new monthly EMI plan. In a standard refinance loan, you would not receive a cash advance. Cash-out refinancing may take slightly more time to process and sanction than personal loans, but it is one of the best options to secure cash if you own a mortgage.
Take a title loan: Title loans refer to those loans that require collateral. Car loans are the most popular type of title loan that can be used to get quick cash. If you are unable to secure instant personal loans because of poor credit scores, title loans are the second-best option to obtain funds.
- Take advantage of payday loans: Payday loans are like a high-interest cash advance, where a lender typically sanctions a portion of your next paycheck. You can realize payday loans to help yourself out of a financial crunch, but they charge high interest and are based on how much you earn. You have to provide income proof like salary slips to avail of these loans.
- Look for loans online: In the era of online banking, you can secure quick cash by applying for loans online. You have to fill out a registration form and submit the required documents to proceed with your loan application. Another benefit of availing of loans online is that you can browse their collection of available loan products, compare between lenders, and choose the best option from the convenience of your couch. There are several lenders who offer instant personal loans online. It is best to be cautious and check the legitimacy of your online loan portal before submitting important KYC documents.
Are quick cash options unreliable?
While the words ‘quick cash’ sound like an oxymoron, they are not always unreliable. With upgraded technology, banks and NBFCs are doing their best to streamline the loan application processes to be quicker and less complicated. Nowadays, you can avail of several options like quick personal loans, cash-out refinancing, and payday loans to get fast cash. While these loan options charge a higher interest than traditional bank loans, you have to compromise if you want money quickly. The silver lining? If you are a reliable borrower, have a good record of paying back your debts, and have income and assets, you can secure better loan terms.
If you find yourself cash-strapped in an emergency, it is important to keep a clear head. Do not make rash decisions with money, no matter the urgency. It is quite easy to fall prey to online scams if you are not careful. If you exploit a large sum of money that you cannot repay, it may snowball into an impossible financial headache. Read through the loan document and check for unnecessary processing charges and additional costs. Organize your identification documents and bank account statements in a single place and make sure that they are updated with the latest information.
Your best bet in times of emergency is to get an instant personal loan. They may charge slightly higher interest rates, but if you have good credit scores and a steady income, it is the best way to secure fast cash with minimal paperwork. Reach out to Andromeda. If you match the eligibility criteria, they offer instant personal loan approvals. You can also browse their wide variety of loan options and choose the best one according to your needs.