Since traditional financial institutions take a while to approve loans, it can be quite tempting to find alternatives that provide instant access to cash. While the market is flooded with financial products, choosing the right one is crucial to cater to your needs.
Emergency loans come in handy in times when you need quick cash as they provide you with much-needed credit within a short span and the least amount of paperwork. So, let’s look at some of the best alternatives to regular personal loans in this article.
Best Options For Quick Loan Approvals
1. Bank Overdraft Facility
Such a facility is offered through your bank account upon special discretion and is based on your account standing. You will need to check with your bank about the eligibility criteria, and if approved by the branch manager, the overdraft limit is activated on your account soon enough. It must be noted that the approval is solely at the discretion of the particular branch, your financial standing, and your relationship with the branch.
2. Payday Loans
It is one of the first options that come to mind when anyone thinks- “i need a loan urgently.” Payday loans have become increasingly common these days and several online lenders process such loans without a hassle.
All you need to do is log in to your preferred lender’s website, fill in the details, and check the eligibility criteria for such loans. The application process is straightforward and you will need to enter your personal information, and salary details, and upload a few supporting documents. After verification, the loan amount is disbursed to your bank account then and there.
3. Cash Advances On Credit Card
One needs to log in to his/her credit card account to avail of such cash advances. Another alternative is to swipe your credit card through an ATM to withdraw cash. The withdrawn cash will be added to your monthly credit card statement with applicable charges. Some credit card companies provide regular offers on cash advances. Visit the official website of your credit card company or call customer care to know about current offers.
4. Loans Against The Insurance Policy And FD
Most banks and NBFCs offer such a facility. You may walk into your branch, submit your FD details or policy documents, and check for eligibility criteria. In case of approval, the loan amount you receive will depend upon the value of the documents you provide.
5. Home Equity Loan
Such a loan can be considered a top-up loan against an existing home loan with a specific bank. Since you already have an active loan with the bank, you will have your emergency loan approved with minimal paperwork and verification.
Such a loan is granted based on your financial standing and repayment track record of your home loan. So, people with good relations with their bank are more likely to land a better loan amount and favorable interest rates.
Now, that you are well informed about your financial alternatives, do not give much impetus to your thought- “i need a loan urgently.” Put your knowledge to good use and figure out which of the financial products is best suited to cater to your needs.
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