Most of us invest so we can utlise the sum so invested in times of dire emergency. There are some investments that are pretty liquid like bank deposits, shares etc., which can be encashed pretty quickly. But, what if you do not have any investments and there is an emergency like quick medical operation that needs cash urgently. Here are few methods which you could rely on for fast cash.
The processing time is fast and the gold loan company or bank will specify the gold against which you will get a loan. It will check for purity etc., before disbursing the amount. Generally, you will get 85 per cent amount against your gold. Gold loan interest vary and can be anywhere between 11 per cent and 20 per cent. If you do not pay the amounts, your gold is likely to be forfeited. Gold loan can be obtained even if you have a very poor credit rating.
Cash Against Credit Card
This is perhaps the fastest way to get cash. However, the amount you can get is limited and the interest rates are exorbitant. You many not be able to withdraw more than 50,000 against your credit card and if you need larger sums this is not the ideal way to go. Also, remember there is a cash withdrawal charge and interest rates can vary from 24 per cent to as much as 40 per cent. This should be the last resort in case of an emergency.
This may not be the fastest way to get a loan, but it is one of the options. Personal loans like all of the above come with hefty interest rates, though not as high as credit cards. Interest rates could vary from bank to bank and depends on your credit rating. Generally, interests are levied between 12 and 24 per cent. There is also a prepayment charge and some banks charge as much as 4 per cent as early pre-payment charges.
Loans against Securities
You can get loan against shares, against post office schemes like KVP and NSC as well. Interest rates are more or less comparable to the interest rates on personal loans. The amount of loan would depend on the value of the amounts in the certificates. Loans are not very large and the duration may not extend beyond 2 years. There is also a processing fee that is payable on the loan amount.
Go for the above loans only if you are in desperate need. Most of the interest rates on the loans and advances are horribly expensive and all of the above should be your last resort.