Unfortunately, no one is immune to financial emergencies… your refrigerator might break down in the middle of the month, the vehicle might get a puncture, or you may need to buy a new outfit to attend a job interview.
Financial institutions might not be the right place to turn to when you get an emergency. However, you can still get a speedy financing solution from organizations that are targeting individuals seeking quick financing.
Emergency consumer credit: What the law says
Whatever the reason or form, an individual can only access the loan amount after 7 working days. While this law was created to help individuals avoid taking a lot of credits and look for an alternative, this is not applicable in many countries. Actually, you can access an emergency loan in some countries in less than a day.
Evaluating the lender: Shop around before applying for it
Most institutions disburse an emergency loan immediately in order to help borrowers meet their immediate needs promptly.
Aside from the limit of an emergency loan, the applied interest rate is generally higher than that of a personal loan. Once again, you will have to take time to compare different interest rates offered by each financial institution.
Pick a lender with the best rates and that can disburse the loan within the shortest time possible.
Applying for an emergency loan? Here is how you can speed up the process
You can speed up the disbursement of an emergency loan only after identifying a lender offering a competitive interest rate.
First prepare all your supporting documents in advance: identity document, proof of address, bank account statement and finally proof of income. Still, some organizations might request additional documentation.
Next, confirm whether the lending institution accepts online applications. If so, make your application and submit your supporting documents online. Indeed, this reduces time wastage linked to visiting the lender in person.
The lender should disburse this loan to your bank account once approved so that you can sort your emergencies.