Emergency cash loan is such a loan which helps you to get emergency cash in times of unexpected financial crisis. This form of loan can be obtained from various sources. Let’s check out the sources from which you can take an emergency cash loan.

The sources of emergency cash loans

1. From friends or families: This is one of the best options to take an emergency cash loan. If you’re in a financial crisis, your friends or family might be willing to help you. This option will also save you from paying high interest rates.

2. From banks: If you don’t have any other resources to get a cash loan, you can take the help of banks. The following are the ways by which you can get an emergency cash loan from the banks –

*A home equity loan: You can borrow money by keeping your house as collateral.

*A home equity line of credit: Here, you keep your house as collateral and can borrow money from a pool of available money determined by loan to value ratio.

*A signature or unsecured loan: You don’t need any collateral for this loan. But you should have a good credit score to get this loan.

3. From credit unions: Credit unions offer emergency cash loans to their members at attractive interest rates. To qualify for these loans, you need to become a member of a credit union. The advantages of emergency cash loan from  credit unions are:

*Easy loan application process.

*No/easy credit checking procedure.

*Easy repayment options.

4. From peer-to-peer lenders: Instead of borrowing from banks, which have rigid rules and costs, you can also get an emergency cash loan from individual lenders. You don’t require a credit check for this loan and have fast loan-approval process.

5. Payday loans: Payday loans are one of the easiest ways to get emergency cash during a financial crisis. This option is best for persons who have no/low credit score. But, you should be very careful about using payday loans as these loans tend to put greater financial burden on the borrowers.

While emergency cash loans help you to meet the unexpected expenses which tend to arise from time-to-time, they can have adverse effects on your financial situation. Lets’ check out a few disadvantages of emergency cash loans.

Disadvantages of emergency cash loans

1. High interest rate: Since emergency cash loans don’t require credit checks, they tend to have high interest rates.

2. Personal debt: Emergency cash loans will increase the number of consumers reeling under huge personal debts.

3. High fees: Many private lenders tend to charge high fees in addition to the interest rates. This will overburden a borrower with huge debts.

Emergency cash loan can, no doubt, pull you out of an unexpected financial crisis that cannot be covered by savings. But it can also increase your financial problems if not handled carefully. It’s important to consider the pros and cons before taking an emergency cash loan.

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