Everyone has that one moment in their lives when they are face-to-face with an unexpected financial emergency. No matter how much you save up for future contingencies, there will still be at least one such moment where you will find yourself in a situation where you fall short of the funds required at the moment. In situations like these, getting a fast loan seems to be the best and most convenient option.
With a great level of convenience, quick disbursals and easy application processes, a fast personal loan is gaining much and much traction over each passing day. However, no matter how attractive it sounds, you should still remember a couple of dos and don’ts every time you use an instant loan app.
Some dos to follow when applying for an emergency loan:
1.Check the lender’s credibility in the market:
With convenience comes a lot of risk as well. It is essential to always check if the emergency loan app you are using is credible in the market. Keep an eye out for apps that are RBI-regulated to ensure that your financial details, as well as the loan agreement, are in safe hands.
2.Thoroughly compare interest rates:
Getting an instant loan approval in 5 minutes does sound very appealing, but it definitely comes with a catch. Emergency loans usually have higher interest rates than other loans. Hence, you should make use of loan calculators and keep an eye out for other lenders who could provide you with the needed amount at a much lower interest rate.
3.Carefully read the terms and conditions:
Beware of the terms and conditions constituting your loan agreement. There might be certain important information in fine print that you could miss out on. Hence, it is always advisable to read it thoroughly before accepting it.
Some don’ts to follow when applying for an emergency loan:
1.Don’t fall for ‘No Credit Check’ Scams:
Lenders who claim to approve your loan without running any credit checks or checking if you fit their eligibility criteria are usually scams or will harass you extremely at the time of repayment.
2.Don’t go forward with multiple applications all at once:
Applying to more than one or two apps at the same time triggers a hard inquiry. This negatively affects your credit score and can significantly impact your loan application.
3.Do not share OTPs or passwords:
This is one of the most important things that you should avoid doing. Always keep in mind that legitimate applications or lenders never ask for OTPs or passwords over a phone call or via email. This way, you can avoid any sort of loan app fraud by keeping your financial data secure.
The online application of emergency loans can be a saviour, but only if it is done intelligently. Consider the lender, the interest rate, the security and the credit check procedure at your own pace. You can simply search loan app – get cash instantly on the internet and select an app that is trusted by users. The above dos and don’ts will guide you to avoid traps and make informed financial decisions when you are in a stressful situation.