Are you out of a job and wondering how to tackle an unanticipated expense? Worry not; there is a way by which you can pay for now for your emergency expense—taking personal loan.

Many Indians have lost their jobs due to the Coronavirus pandemic. Making a living while being unemployed is tough enough in its own right, and it gets even more problematic when unplanned expenses arise like a car breaking down, an emergency medical expenditure taking place, something going wrong with home, etc. When you are jobless and need to pay a bill out of your range, you’ve got a few options as shown below.

You can tap into these three money sources before taking a personal loan

Personal loans taken using personal loan apps can be easy and affordable to borrow. But the smart way is to try accessing money from elsewhere.

When you need money urgently, a personal loan can come in handy and you have to pay a certain interest on your personal loan. However, the amount you’d pay may be greater in comparison to the amount you would pay on a credit card balance. So, before you borrow a personal loan from personal loan apps, you might want to tap into these cash sources.

  1. Emergency fund: Everyone must have an emergency fund. If you’ve been unemployed for quite some time, you may have exhausted your emergency fund already. Or it might be the case that you have such a fund but you are hesitant to tap into your emergency savings as losing it would mean losing your safety net. Know that the whole purpose of having an emergency safety net is to use it for emergencies. You are better off using your savings before borrowing money from elsewhere. In this way, you avoid the interest. Also, you must have a fund for large expenses like marriage so that you don’t have to take a marriage loan.
  2. Home equity: Your home equity is the part of your home you own. For example, if the valuation of your home is Rs. 80,00,000 and you owe Rs. 30,00,000 on your home loan, you have Rs. 50,00,000 worth of equity in your hands. You can tap into this equity when the need for funds arises.

You can take out a loan against property. You can borrow a lump sum and pay back via installments just like in a personal loan, but the interest is much lower. Also, if your credit score is not that good, a loan against property would be much easier to qualify for a personal loan such as a marriage loan. But note that, when you use your home as collateral and fall behind on payments, you risk losing your home.

  1. Family: Not many have family members with large financial resources. But if you do have such a close family member who is strong financially, you may ask him/her for a loan rather than borrowing the same from a lending institution.

A family member may loan you some amount of money without any interest, which makes it easier to pay off. Furthermore, if you are in need of only a small amount of money, then asking a family member for a loan is a more reasonable solution. Note that even when you borrow money from a family member, you pay it back on time. You would not want to damage your relationship with someone who has helped you.

So, these were the three money sources you could tap into before taking a personal loan. But what when you don’t have access to any of them and you want some money urgently? When you are in a jam, a personal loan can be a great way to borrow. When you keep up with your EMIs, you increase your credit score, which can also be put to use in future.

Apply for a personal loan

At times when you need quick money, a personal loan is a good way out. It lets you borrow for any reason you might have. Also, interest rates of personal loans are many times more affordable than that of credit cards, when you have a good credit score. Also, personal loans close quickly, so you can have your funds days after you apply, letting you use funds for your expense right away.

You can negotiate for lower charges

You can never expect when a person or entity you owe money to might work with you because of your jobless status. In case you are facing a surprise expense, try to negotiate. For example, if your car breaks down, ask your mechanic to lower the charges on the repair or at least stretch out your payment for some time. You never know how much such negotiation will help you only if you speak up about your hardships.

You can fall back on credit cards that offer 0% interest

Credit cards are considered as a last resort for borrowing. If you don’t get a personal loan, you can try charging your unplanned expense on a credit card with a 0% introductory rate. Many such cards charge a 0% interest for over a year giving you a reasonable time to repay a balance. Again, if you are unable to pay off your debt by the time the intro period gets over, you can face a very high interest rate on your balance. So, you have to be careful when you go on this route.


When you are unemployed, even a small expense out of the blue can seem drastic. When you don’t have enough money in savings to pay for the expense, try to bring it down as much as possible. Only as a last resort, you can borrow an affordable loan and pay it off on time.