By Mya Finn
With the introduction of Aadhar cards, people can now avail of loans quickly without worrying about collaterals or credit history. This is a relief to those who need funds quickly to cover the unexpected expenses that pop up. The process of acquiring an Aadhar card loan is also very simple since the Aadhar card contains all the details that act as enough proof for verification.
After the verification process and it’s confirmed that the Aadhar card contains your data, you’ll have to meet the eligibility criteria. This entails verifying if you meet the lender’s requirements. We can see that the whole process of applying for a loan on an Aadhar card is very easy. However, how to use these funds for unexpected expenses? Indeed, unexpected expenses appear when you least expect them. And once you acquire the funds, you will be eager to pay for it to reduce the anxiety. But, you need to have a plan on how to use the funds so you don’t use all the funds on other things.
Common Unexpected Expenses
Before we take you through the steps to use a personal loan on an Aadhar card to cater for unexpected expenses, it will be useful to show you some of the most common unexpected expenses that exist.
Requiring money on short notice could be due to various reasons. The following financial emergencies you may likely encounter which may need urgent funds:
Car repairs: All of us experience sudden car breakdowns at some point in time. Maybe you are on a trip with your family, or you’re just from your job, and the car suddenly grinds to a halt. It is inconvenient and, at the same time, could lead to unexpected expenses. You will be required to arrange for towing services and also for the repair. A card is like a lifeline that needs fixing when it breaks down.
Medical bills: While the health service often caters to medical expenses in India, sometimes, an emergency medical bill will need to be paid before accessing health care. However, the price can be costly. Even if you have savings, they won’t be enough.
Higher bills: Most people plan their bills. However, at times, the bills can be incredibly high. Maybe you have relocated to a new home and did not know how much you would need to pay during winter. Or, your insurance plan premiums have increased suddenly. Having other funds set aside for such unplanned high bills might be challenging.
Funeral expenses: At some point in your life, you may incur funeral expenses when your loved one dies. The cost of a funeral can vary; it can be about Rs 50,000 and other additional costs for catering, memorials, etc.
How to use Aadhar Card Loan for Unexpected Expenses
If you find yourself facing an unexpected expense that might leave you broke, a personal loan on an Aadhar card can offer the needed assistance. This is because you will be able to ascertain the amount of money you need to borrow and then apply for the specific loan amount. With just an Aadhar card, availing a loan will be a piece of cake. Here are several ways to use a loan on an Aadhar card:
Have a Payment Plan
You can comfortably discover the payment plan for your expenses. If you need to pay service providers for unexpected bills, you can choose monthly payments, weekly or biweekly payments.
Most medical providers offer payment plans, which makes the costs more affordable. You may break this amount into smaller payments every month and work according to your budget. More interestingly, the medical debts might be repaid without adding interest or other charges provided you pay according to the standard agreed plan.
Cut on Spending
When an unexpected expense strikes, the first thing to do is to reduce your spending. Try as much as possible to stop spending money unnecessarily on unwanted items. This will help avoid overspending the loan amount you just got for handling emergencies. However, the secret to achieving this is to have a budget. This way, you will know how you’re spending your money.
Consolidate High-Interest Debts
If you have multiple due dates and are carrying higher rates, you can combine them and pay them all at once. This will help save you more money that would otherwise be used on high interest.
Settle the Hospital Bills
You may still have insurance but the medical bills may result in unpaid expenses that may affect your credit reports negatively. Even though money in your savings accounts may help avoid these frustrations, it’s not always easy for most individuals. However, with an Aadhar card loan, you will easily settle the bill and avoid any negative impacts.
Paying the medical expenses from your pocket is costly, especially since healthcare comes with higher costs.
Even though you can negotiate the bill with a medical practitioner, there are other management bodies. The medical loans will help those who have trouble raising funds to pay for their medical bills. The loan will enable borrowers to cover medical expenses and repay in installments.
Conclusion
An Aadhar card loan can be very helpful if you don’t have any savings or they aren’t enough to handle an unexpected expense. Getting these loans is stressful, and you’ll be stable to fund the financial problem that arises. But proper management is what to focus on. You need to use the loan amount responsibly while settling your expenses like medical bills, home repairs, car repairs, etc.
lendingplate offers loans with just an Aadhar card, and in some cases, you will be required to provide a PAN card. You will be able to access funds quickly without difficulty.
