What is Emergency Loan?

Life is full of uncertain events, many of which are emergencies that demand covering high expenses. These emergencies may relate to medical or personal emergencies where you may be required to seek financial assistance. An emergency loan is a type of loan product that allows an individual to raise immediate capital to cover expenses related to personal emergencies.

An emergency loan with IIFL Finance includes attractive interest rates and flexible repayment options. The emergency personal loan application is approved within 5 minutes of submission. Furthermore, the loan amount is quickly disbursed within 24 hours to ensure the borrower has adequate funds to cover emergency expenses. These features are effective and life-saving, especially when you need a loan urgently.

Emergency Loan EMI Calculator

Calculate your EMI and choose the most suitable product for you

Emergency Loan Features And Benefits

Emergency personal loans have become an ideal product for people who are faced with personal emergencies and need a loan urgently to cover related expenses. Borrowers prefer emergency personal loans instead of overspending their hard-earned savings in lump-sum. The included features and benefits for an urgent loan required are listed below:

No Collateral

Such loans are unsecured and do not require the pledging of an asset collateral.

Quick Disbursal

Emergency personal loans are approved within 5 minutes and disbursed within 24 hours.

Minimal Documentation

Only PAN, Aadhar, and Bank Statements are required for approval.

Attractive Interest Rates

The interest rates are attractive and affordable to avoid a repayment burden.

What are the Eligibility Criteria for an Emergency Loan?

Lenders such as banks or NBFCs have set eligibility criteria for borrowers, which they have to fulfil for getting their emergency personal loan approved and the amount disbursed into their bank accounts. You must analyse the eligibility criteria for emergency personal loans before submitting the loan application when there is an urgent loan required.

  1. Age: The age of the applicant should be between 23 years-65 years.

  2. Employment: The applicant should be a salaried employee or a self-employed individual.

  3. CIBIL Score: The applicant should have a CIBIL or credit score of 750 or higher.

  4. Monthly Salary: The monthly salary of the applicant must start from Rs 22,000, depending on the city of residence.

What are the Documents Required for an Emergency Loan?

Emergency loans online have been designed to offer easy and quick capital to borrowers, including minimal documentation. It ensures that borrowers do not have to go through a complex loan application process when they need a loan urgently. Here is the minimal documentation required to apply for emergency loans in India:

Selfie

The selfie of the applicant as photo proof.

PAN Card

The valid PAN Card of the applicant as ID proof.

Aadhar Card

Aadhar card or driving licence of the applicant for address proof.

Bank Statements

Bank statements of the application for the last 6-12 months for creditworthiness.

Emergency Loan Interest Rate

The emergency loan interest rate is the amount a lender charges for providing the loan to be used to cover expenses related to emergencies. When you take an emergency loan online, you are liable to repay the principal amount along with interest to the lender through monthly EMIs within the loan tenure. The interest rate on emergency personal loans is determined by factors such as CIBIL score, employment, age, desired loan amount, and loan tenure.

Why Choose IIFL For Emergency Loans?

IIFL Finance is a leader in providing financial services in India with an experience of over 25 years, with a special focus on comprehensive personal loans such as loans for emergencies. IIFL Finance has designed its personal loan for emergencies to allow borrowers who are in immediate need of capital to raise adequate funds through a simple and quick approval and disbursal process within 24 hours.

The emergency personal loan comes with attractive interest rates and flexible repayment options. The emergency loan process is entirely online and requires minimal documentation with no collateral requirement, allowing borrowers to raise a maximum of Rs 5 lakh with the option of a higher loan amount on successful repayments.

What Are The Things To Consider While Taking An Emergency Loan?

Emergency loans in India can prove to be highly beneficial in ensuring the effective coverage of expenses relating to any personal emergency. However, as the ultimate decision to approve the urgent loan lies with the lender, there is a possibility that the loan application may get rejected at a time when raising capital is of utmost importance. Here are the things to consider while taking an emergency personal loan:

Analyse Expenses

The foremost thing is to analyse the potential expenses that you will have to cover based on the nature of the emergency. This will allow you to understand how much monetary assistance you may need in the coming days through an emergency personal loan.

Loan Amount

Once you have analysed the expenses, you should determine how much you can cover from your savings. This will allow you to determine the loan amount you must apply for while taking the loan for an emergency.

Research

Research and compare all the lenders that offer emergency personal loans. You should consider lenders based on their loan amount, interest rates, and loan tenure to find the ideal loan plan for you.

Eligibility Criteria

Before applying for a loan for an emergency, you should read and understand the set eligibility criteria. Only if you fulfil the eligibility criteria will the lender approve your loan application.

How to apply for an Emergency Loan?

IIFL Finance has designed the emergency loan product to allow borrowers to raise immediate capital through a simplified and hassle-free loan application process. The application process is entirely online and requires filling in an easy application form along with submitting limited documents. It has significantly proven helpful to individuals who need a loan urgently. Here is how you can apply for an urgent loan required with IIFL Finance:

  • Visit the IIFL website and click on “Apply Online”. An online application form will appear.

  • Fill in the required details, such as your name and mobile number, to get an OTP.

  • Authenticate your profile by submitting the received OTP.

  • Submit the required documents to complete KYC, employment, and income details.

  • Once all the details are filled in, click on “Submit” to submit the application form.

Once you have submitted the application form, it will be analysed by IIFL Finance based on your eligibility criteria and the submitted documents. After successful review, the emergency personal loan will be approved within 5 minutes, and the amount will be credited into your bank account within 24 hours.

Emergency Loan FAQs

An emergency loan is a type of personal loan which the borrowers can use to cover expenses relating to real-life emergencies.

Emergency loans online cover expenses related to any type of personal emergency, especially medical emergencies, to ensure no treatment delay.

The maximum and minimum loan amount varies from lender to lender. It varies further if you seek an urgent loan with bad credit. However, IIFL Finance allows you to take a loan for emergencies that ranges from Rs 5,000 to Rs 5,00,000.

Although there is a complex mathematical formula to calculate interest rates on emergency personal loans, it is better and quicker to use IIFL Finance’s emergency loan EMI calculator to precisely calculate the interest rates.

The interest rates on emergency personal loans depend on factors such as CIBIL score, employment, age, desired loan amount, and loan tenure.

Emergency personal loan eligibility differs from lender to lender. In the case of IIFL Finance, you can check the emergency loan eligibility by visiting the IIFL website or by heading over to the “What is the Eligibility Criteria for an Emergency Loan?” section.

You can reduce the burden on EMIs on emergency loans by opting for a higher loan tenure, as it will stretch the EMIs over an extended period.

You can track the status by logging into your loan account with your registered email address and scrolling down to the “Application Status” section.

Show More Show Less