How to build a emergency corpus

In today’s uncertain times, having an emergency fund is not just a smart financial move—it’s a necessity. Here’s why you should have one and how to make the most of it in the Indian context:

The Significance of an Emergency Fund

An emergency fund serves as a financial safety net during unexpected crises, providing you with the necessary funds to tackle unforeseen expenses without relying on credit or getting a small loan online. It’s essential to allocate a portion of your income towards building this fund gradually.

Why Liquidity Matters

When it comes to emergency funds, liquidity is key. You need quick access to your funds without facing penalties or delays. Opt for liquid investments that allow you to withdraw money instantly without incurring hefty charges, ensuring you’re prepared for any emergency.

Building Your Emergency Fund

Start by setting aside a fixed amount from your monthly income into a separate savings account dedicated to your emergency fund. Over time, this fund will grow into a substantial corpus, providing you with financial security when you need it the most.

Determining the Right Amount

Your emergency fund should ideally cover three to six months’ worth of living expenses. Calculate your monthly expenses and set aside an amount accordingly. Additionally, consider dividing your fund into long-term and short-term categories to address different types of emergencies effectively.

Investing Your Emergency Fund

While it’s essential to keep your emergency fund liquid, you can still earn decent returns by investing wisely. Consider allocating a portion of your fund to liquid mutual funds, short-term RDs, and debt mutual funds to maximize returns while maintaining liquidity.


Suppose you’ve accumulated Rs. 1 lakh as your emergency fund. Keep a portion in cash at home, some in your savings account, and invest the rest in liquid mutual funds. This diversified approach ensures quick accessibility to funds while earning higher returns than traditional savings accounts.

Why Stashfin?

When you are planning to avail an instant personal loan for self employed, you need to understand why Stashfin is the answer. We are there to understand the factor that urgent situations require immediate redressals, hence, one can avail the financial assistance from us immediately.

Moreover, we offer this facility without charging any kind of interest on the initial amount the potential borrower will avail from us. This means that they have to pay us back the same amount they borrowed initially (T&C apply). 

Redemption Considerations

Look for liquid funds that offer instant redemption facilities, allowing you to withdraw funds up to a certain limit without delay. Prioritize funds that provide seamless redemption processes to ensure you can access your money when needed.

By following these guidelines and customizing them to suit your financial situation, you can build a robust emergency fund that provides peace of mind and financial stability in challenging times. Remember, preparation is key, and having an emergency fund in place especially via a loan app ensures you’re ready to face whatever life throws your way.


How long does it take to build credit?

Establishing a credit history is crucial for accessing financial opportunities, but it takes time and effort. Here’s what you need to know about building credit in India, including how long it takes, how your credit score is calculated, and practical steps to get started on your credit journey.

How Long Does It Take to Build Credit in India?

Building a credit history in India requires having at least one credit account open and reporting to credit bureaus for a minimum of six months. While credit scores, such as the CIBIL score, may take some time to generate, they play a vital role in your financial journey.

Understanding the Credit Score Calculation

In India, credit scores, particularly the CIBIL score, are calculated based on various factors, including:

  • Payment history: Timely repayment of credit obligations is crucial for maintaining a positive credit score.
  • Credit utilization: The proportion of your available credit that you utilize affects your score. Keeping credit card balances low relative to the credit limit is advisable.
  • Length of credit history: Longer credit histories tend to have a positive impact on credit scores.
  • Credit mix: A diverse portfolio of credit accounts, such as loans and credit cards, demonstrates your ability to manage different types of credit responsibly.
  • New credit inquiries: Multiple credit inquiries within a short period can negatively impact your credit score.

Reasons for Lack of Credit Score

Several factors may contribute to not having a credit score in India:

  • Limited credit usage: Young adults and newcomers to the credit system may not have enough credit history to generate a score.
  • Immigrants: Individuals relocating to India may not have their credit history from their home country recognized by Indian credit bureaus.
  • Lack of credit accounts: Individuals who have never availed of credit products or loans may not have a credit score.
  • Recent credit activity: New credit accounts may not reflect on credit reports immediately, delaying the generation of a credit score.

Steps to Start Building Credit in India

To initiate your credit journey in India, consider the following steps:

  • Apply for a Credit Card: Choose from options such as student credit cards, secured stashfin credit card, or those tailored for individuals with limited credit history.
  • Credit-Builder Loans: These specialized loans can help establish a credit history by making regular payments that are reported to credit bureaus.
  • Authorized User: Becoming an authorized user on someone else’s credit card account can help build credit, provided the primary cardholder maintains responsible credit habits.
  • Monitor Your Credit: Regularly review your credit report and score, particularly from CIBIL, to track your progress and address any discrepancies or issues promptly.

By taking proactive steps to build credit in India and demonstrating responsible financial behavior, you can establish a solid credit profile over time, unlocking access to a wide range of financial opportunities.

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