Emergencies are a part of life. Such situations may come along with a significant, unexpected expense that you are not prepared for. This is where fast personal loans can be very useful.
Personal loans are a popular way to finance large one-time expenses that are repaid over a few years. About 8 million Australians had personal loans approved in 2019. Personal loans are a low-cost financing option that gives you a little extra, which is enough to tide you over.
Most lenders have made the process of getting a personal loan quick and easy. This article discusses why you may need a quick personal loan and how to find one that suits your requirements.
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Table of Contents
Reasons to Get a Fast Personal Loan
Emergencies are the main reason people get quick loans. Other reasons include job loss, home improvements, etc.
- Medical Emergencies: As the name suggests, you may face a medical emergency that is not covered by your insurance or covered only partly. In such cases, you are left to foot the bill, but not everyone has enough savings to cover it. This is when you must look for a bank that can offer a quick personal loan.
Many out-of-pocket medical expenses are not part of your health insurance plan, and you end up paying for them. When a large expense comes along, you can finance it using a personal loan and repay the amount over the next few months.
2. Job Loss: The outbreak of COVID-19 was a global crisis that hit a lot of individuals and industries. Many people lost their jobs, while others were forced to cut back their work hours. This led to a gap in income, but the expenses kept mounting. This was a chief reason for people getting more quick personal loans in the year 2020.
3. Funeral Expenses: Death is unexpected, and you want to give your loved one a memorable departure but are short of funds. A quick loan can help you cover the funeral expenses, and you don’t have to worry about repaying it immediately as you mourn over your loved ones. You can make small payments over the next few months to repay the loan.
4. Sudden Home Repairs: Your home could have experienced some damage that is not covered by insurance. Such repairs can quickly add up and eat into your savings. It is recommended that you finance these repairs using fast personal loans instead of your savings.
With the interest rates being super-low on personal loans, you will end up repaying the entire amount within months without feeling the burden of payments.
5. Unexpected Travel: Most trips are planned and booked in advance, but unexpected travel plans can burn a large hole in your pocket as last-minute tickets are exorbitantly priced. Why spend most of your savings on a ticket when you can get a small personal loan instead?
You can pick the loan repayment schedule and make payments accordingly without dipping into that precious savings account.
The top five reasons you may need a fast loan are covered here, but there could be a lot of other reasons that require you to have a large sum ready immediately.
No matter what your reason, bankers are now more than ready to give out quick personal loans. Are you wondering how you can find one? Here’s how.
Check Online
You can check online to find lenders who dispense fast personal loans. They also allow you to pre-qualify for one.
A pre-qualification is the process of assessing your information to know how much you are eligible for and at what rate. Such pre-qualified loans do not run a hard credit inquiry, so you can check the terms of your pre-qualified loan with various lenders without hurting your credit score.
Check with Your Bank
You can check with your banker about getting a quick personal loan. Since you are already in business with them, it will be easier to qualify for such a loan. Also, depending on your payment history, you may get a lower rate than other bankers.
Go To Credit Unions
If you don’t qualify for a loan with conventional banks, you can go the non-conventional way and apply with a credit union. They are more flexible when compared to banks when qualifying you for a loan.
Fast personal loans can save you in your time of need. They are easy to apply for, discrete, and offer multiple repayment options. They enable you to handle any emergencies that life throws at you, even without an emergency fund.
