I Need 1,000 Rupees Loan Urgently

A financial emergency can strike anyone and comes unannounced. There is hardly anyone who does not experience it at some point in their life. In case of sudden expenses that are unforeseen, as was in the case of the sudden demonetization imposed by the government in 2016, one may find oneself to be in trouble.

Such situations can lead to a person being in need of a simple sum such as Rs 1,000 on an urgent basis. Such loans are usually short-term implying that they can be repaid in a short period of time.

Most banks and non-banking financial companies provide instant loans. However, they do have a minimum amount such as Rs 5,000 which they extend as personal loans.

So, what are the options for raising Rs 1,000?

Microloan Apps

Microloans for a small amount such as Rs 1,000 are usually provided as personal loans that are collateral-free and, therefore, do not require a guarantee or an asset to secure immediate funds as is the case with banks and the majority of NBFCs.

Most instant loan applications are entirely online and can be accessed by downloading the applications on a mobile phone.

To apply for the loan online, the borrower needs to log in to the lender’s website and upload their mobile number, name, and PAN information. Once the details are verified, the loan is processed and authorized in just a few minutes. The approved loan amount is then instantly transferred to the borrower's account.

As with all personal loans, the borrower is not required to disclose the purpose of the loan, and therefore, the money can be used for any kind of emergency or urgent need.

Borrow From Friends and Family

The easiest and cheapest way to raise a small-ticket amount like Rs 1,000 is to borrow from family and friends if they are willing to lend. The advantage of such loans is that one does not have to pay interest on the loan raised. This is very beneficial if one is unable to repay the loan on time and thereby will be saved from paying a penalty for the delay.

This form of loan does not require documentation and is, therefore, instant cash in hand. It also gives the borrower the flexibility of setting a realistic and convenient repayment time schedule.

Use A Credit Card

A credit card comes in very handy in case of not having cash in hand. A credit card facilitates delayed payments providing time for the borrower to arrange for the repayment of the loan. Some loans, even of smaller value, can be repaid in installments on an EMI basis depending on the terms provided by the credit card company.

If the payment made on the credit card is cleared within the payment cycle of the amount there is no additional charge on the payment. However, in case the borrower opts for a staggered payment scheme or EMI the credit card company usually levies some kind of fees or charges.

Depending on the credit profile and provisions of the credit card, one may also be offered an instant loan on the credit card. This amount is credited directly into the credit card holder’s bank account. Such loans, however, attract a high-interest rate, the terms of which may be negotiated with the lender. To make such schemes attractive, a credit card company may waive the interest rate, but they do levy some kind of service charge or fees.

Conclusion

While one cannot predict emergencies or urgent need for funds, it is always better to avoid any form of borrowing, as one is most likely to pay more than one had borrowed be it in the form of interest or service charges.

One should strive to be a disciplined money manager, to avoid being stuck in situations of having to borrow small amounts of money. It is always prudent to have a fallback savings account that one can dip into for emergencies or urgent need of funds.

However, if it is unavoidable there are plenty of options now including instant loan apps to raise money in just a few minutes. It is important to note that it is easier to raise loans in a short period of time if all the documentation is in order and the borrower has a good credit history.

While most large banks typically take a few days to provide a personal loan, reputed NBFCs such as IIFL Finance can process a loan application with five minutes and need minimal documentation. IIFL Finance provides hassle-free personal loans starting with as low as Rs 5,000 at attractive interest rates.