In the current circumstances, health care is the top priority, and it is undeniably true that it is a global requirement. Finances, on the other hand, are inextricably linked to health care. Though our government provides healthcare services throughout the country, including free corona screenings at government hospitals. However, we do have to face our financial commitments. Obtaining financial support is critical during these times, and you should be informed of the various sources of financial support. Even if you have Covid insurance, it's a good idea to have some options on hand in case you need to go to the hospital after acquiring the virus. Loans enable you to address a financial need or meet unforeseen expenses. Taking out a loan gives you financial flexibility because it allows you to make large payments or cover one-time needs without disrupting your budget. Here are some of the options which you can consider availing loan. Choose the option which is suits your requirement considering interest rates and tenure.
Points to consider before applying for a Loan
You should verify your credit history before applying for a loan. Credit history is a record of any past loans you've taken out and how well you've paid them back. Before you apply for a loan, look into the interest rate. The interest rates on loans that need collateral are often lower than those on loans that do not. All types of loans are granted in as little as 48 hours based on the borrower's income and financial history, as well as the collateral to be attached in some situations. You will almost certainly have to pay a processing and penalty cost if you miss the repayment. These fees are determined by the loan amount and vary with the bank.
Loan For Covid Treatment- Bank Loan
Individuals who are salaried, non-salaried, or retirees would be eligible for unsecured personal loans ranging from Rs 25,000 to Rs 5 lakhs from PSBs to meet Covid treatment requirements. Banks Like SBI and Canara bank are offering this unsecured loan. SBI is offering an interest rate of 8.5% with a tenure of 5 years.
Loan For Covid Treatment- Personal Loans
A personal loan is often one of the simplest ways to obtain funds for a variety of personal requirements. Perhaps more crucially, you don't have to put up any collateral to acquire this loan, and you have virtually no restrictions on how you can utilize the funds. Borrowing money, however, comes with a price tag in the shape of interest payments, processing fees, documentation fees, and so on.
Loan For Covid Treatment: Gold Loan
A gold loan is another option for getting cash immediately. Typically, gold loans are available for up to two years, after which you can renew the loan. You must hold gold (in any form, such as jewelry, bar, or coin) as collateral for a gold loan. Banks will lend you up to 90% of the value of your gold.
Loan For Covid Treatment: Overdraft Against Fixed Deposit
A loan against a fixed deposit is a secured loan that allows you to use your deposit as collateral in exchange for a loan. You may be eligible for a loan of up to 90% of your deposit. You don't have to break your FD to acquire a loan against it; instead, you can borrow against it.
Loan For Covid Treatment- Loan against Security
Loans against securities such as fixed deposits, mutual funds, Demat shares, or even insurance policies are also available. These loans have lower interest rates than personal loans. The loan amount can range from 60 to 90 percent of the surrender value of an insurance policy, 80 to 95 percent of a savings account, and 50-60 percent of the stock or mutual funds.
The benefit of pledging your securities is that you can access consistent cash quickly when you need it, and you will still be able to get the benefits of being a shareholder. This implies you can take advantage of your rights to dividends and bonuses while also profiting from price changes in the shares for which you have taken out a bank loan.
Loan For Covid Treatment- Mutual Fund Redemption
Mutual fund redemption, which simply implies selling fund units, is another approach to meet your immediate fund demand. Though experts advise against selling or withdrawing mutual fund units shortly, individuals can do so in the event of a medical emergency.
While there are certain disadvantages, including taxable capital gains, it is perfect for obtaining funds quickly in the event of a medical emergency.
To get a loan against a mutual fund, the holder of the mutual fund must fill out an application and send it to the bank together with any other required documentation. The loan amount will be a proportion of the value of mutual fund units owned at the time the loan is approved.
Loan For Covid Treatment- EPF loan
Employees with an Employees' Provident Fund (EPF) account can withdraw funds or borrow money for medical reasons. Employees' Provident Fund Organisation (EPFO) rules provide that those who want to withdraw money for Covid treatment can do so under the guise of a medical emergency for a spouse, a family member, a parent, or a kid. The member can withdraw the money if an employee, his or her parent, spouse, or children became ill as a result of Covid.
Loan For Covid Treatment- Credit card Loan
This may not be the best option but can consider it when you are in dire need of money. A loan against a credit card is similar to a personal loan secured by your credit card. These are typically pre-approved loans that don't necessitate any additional paperwork. Depending on the lender, this can be converted into an interest-free personal loan after a set amount of time. Following that, it will generate a certain amount of interest. There is a processing fee connected with converting a pre-assigned credit limit to a loan.