Do you suddenly need cash due to unforeseen circumstances such as accidents and car troubles? Maybe you’re about to go on that most awaited family vacation but you realize you don’t have enough money to cover all your expenses. If you’re faced with either of these dilemmas, then getting an emergency loan is the best option for you.
What are Emergency Loans?
Emergency loans are your go to loans especially when life suddenly throws you a ton of bricks. This allows you to face whatever unexpected financial difficulty you may have head on. Since emergencies need quick action, emergency loans are also given quickly. Some lenders even approve loans as quick as 24 hours after you’ve sent all the necessary requirements.
Aside from quick approval, emergency loans are also easy and hassle free. Most of the time you won’t even need to send as much documents as you would if you were to apply for a normal personal loan. Lenders are also relatively more lenient when it comes to approving emergency loans. Even if you had a bad credit history, there’s still a huge chance that your loan application would get approved. The ease of getting emergency loans are mostly due to the nature of why you need a loan in the first place. There’s no sense in being strict about giving out emergency loans since most of it are low amounts and are really for emergency purposes and if the lender is too slow or strict there might not be any use for the loan anymore.
When do People Usually get an Emergency Loan?
Below are the common circumstances by which borrowers see the need to take an emergency loan instead of a personal one.
1. Accidents and Hospitalization
There’s no way for anyone to predict when you or someone in your family would get into an accident or get hospitalized. Although it’s highly advisable that we should set aside a part of our salary for health related emergencies, most of the time we out this off because we don’t see the need for it in the short term. If you’re one of those people who didn’t see the need for a health fund until now that you need it,getting an emergency loan would be your go-to solution.
2. Home Repairs
Having a place to call home, whether you’re renting or you own the house, is one of the basic human rights that all people should have. However, this right also comes with a lot of responsibilities. People are often faced with the problem of maintaining your home which could be very expensive.
3. Car Repairs
In areas where public transportation is inefficient, having your own vehicle is a need rather than a luxury. It’s an easy way for you to get around without having to wait for the unreliable bus or metro. The only drawback to having your own car is that you’re bound to have to bring your vehicle to the mechanic for repairs. These repairs coupled with the labor fees can be very expensive and might cost you thousands of bucks.
When you go on a vacation, it’s usually booked well in advance and you would be given ample time to save up. You might have even skipped a few meals and reluctantly said “no” to buying tat bag you’ve always wanted that was on sale. These sacrifices would help you have enough money for that trip. However a lot of unexpected things could happen while you are on trips.
Who is Eligible?
Now that you’ve read the circumstances that might call for you to get an emergency loan, it’s time for you to know whether you’re eligible for this kinds of loans. However lax the process of applying to this loan may be it still has basic requirements that must be met for you to be considered as a borrower. Below are the usual requirements for emergency loans.
⦁ Must be of legal age (18 and above)
⦁ A resident of the UK
⦁ Be employed and receives regular paychecks
⦁ Have a UK bank account
Are Emergency Loans Right for Me?
Keep in mind that the loans may be given quick but that most of the time the loan amount for emergency loans are not that high. So, if you need a huge amount of money this might not be for you or you may combine this with another loan so your needs would be met. The interests are slightly higher compared to other personal loans so this might make payments harder for you.