There are times when you face a financial crunch in an emergency. During this tough phase, it may be difficult to get funds on time. However, with many borrowing options available, you do not need to worry about the lack of funds. Today, with these options, you can easily borrow money online and get funds quickly in your account.
Here, in this guide, learn how to borrow money online and get expert tips on choosing the right lender. Also, understand how to avoid red flags and scams while availing loans.
Exploring Different Online Borrowing Options
There are several ways to borrow urgent money or avail an emergency loan online. Here are the major online borrowing options for you:
Personal Loan
One of the most sought-after and popular options to fund your emergency requirements is a personal loan. With the help of a personal loan, you can get a lump sum of money which you can repay in monthly instalments. With CASHe, you can avail instant personal loans of up to ₹4 lakhs with tenures of up to 18 months. Though the interest rates for instant personal loans are usually lower than credit cards, you might need a good credit score to get the emergency loan approved quickly.
Credit Cards
You can also sign up for a credit card and use it to borrow money for your emergency funds. If you require urgent money in smaller amounts, credit cards are of great use as you can have quick access to money with these cards. You can use the credit card for all kinds of purchases or to get cash advances. However, keep in mind that cash advances on credit cards attract high interest rates.
P2P Loans
Another borrowing option which you can avail online is P2P loans, otherwise called peer-to-peer loans. P2P loans are provided by individual investors and there is no involvement of banks here. You can use online platforms like 13Karat to connect with these investors. Getting a P2P loan is easy as all you need to do is download the P2P lending app, create an account, and find the investor.
Line of Credit
You can also get an emergency loan through a line of credit if you need money urgently. A line of credit would help you borrow money up to a certain limit and you only pay interest on what you use. For example – With CASHe limit, you can borrow funds of up to ₹2 lakhs and you will be charged interest only on what you spend.
How to Choose a Reliable Online Lender
You should be careful while choosing the lender to avail an instant personal loan. Here’s how you can choose a reliable lender:
- Check Reviews: Always look for reviews to see if people had a good experience while borrowing money from the lender.
- Verify Licencing: Make sure the lender is licenced.
- Compare Offers: Consider different lenders to compare loan interest rates and charges.
- Great Customer Support: Always choose a lender with good customer service so that they can help if you have any issues.
Understanding Terms & Conditions
Here’s what you should be aware of to understand loan terms and conditions:
- Loan Amount: Confirm the loan amount you are borrowing.
- Interest Rates: Understand how much interest you would pay on the loan.
- Repayment Terms: Learn for how long you need to repay the loan and how much each payment would be.
- Fees: Check if there are any extra fees like processing or late fees.
- Closure Charges: Be aware of loan foreclosure charges or prepayment penalties.
Red Flags and Scams to Avoid
It is not too difficult to detect red flags or personal loan scams. Here are the signs you need to look out for:
- High fees upfront
- Unclear loan terms
- Pressurising you to act quickly
- Lenders with no physical address
Also Read: Red Flags of Personal Loan Scams
Conclusion
This is how you can borrow money online and fulfil your needs and requirements. However, make sure to choose the right lender before applying for a loan online. If you are looking to borrow money online instantly without much hassle, then CASHe is here for you. Download the CASHe app and apply for an instant personal loan of up to ₹4 lakhs. You can also apply for a line of credit of up to ₹2 lakhs on the CASHe app.
