Facing cash crunch and amid it have got infected by this lethal coronavirus which is all the more dangerous in its second wave. Here are some easy to go to option that may not prove costly for you in the long run.
Here we will stress that funds can be needed even if someone has a Covid 19 coverage because the insurer might not allow cashless treatment or there can be other constraints. There can be 'n' other reasons such as you happen to visit the non-network hospital for treatment and other such similar issues.
So, in a case if you want quick and easy money:
1. Pledging gold or taking gold loan:
Securing loan against gold is easing, it being a secured loan. Interest rate on such loans starts at a nominal 7 percent or so. Considering your repayment capacity you might get a lucrative rate of interest. Now in a case, gold prices see sharp correction, the lender may ask you to deposit extra amount or to submit more of gold to make up for the statutory loan to value ratio, failure to do so may result in selling of your gold.
2. Can also take shelter of credit card:
Revolving credit costs a great deal in double digits and so it shall be wise to go for a cheaper loan. One may combine different debts and go for debt consolidation and choose the low-interest rate credit option.
3. Pre-approved loans:
These are also easy to go to options as they are processed and disbursed easily. Those with long standing with the bank and based on the customer's bank account and credit history, there is decided some pre-approved loan. The interest rate on this loan option may vary in the range of 9-26 percent.
4. Loan against security:
Here for any underlying security including insurance policy FDs, shares, mutual fund etc. Say for instance in the case of insurance redemption one can get as loan amount equivalent to 60-90 percent of the surrender value, in case of mutual funds 50-70 percent of the share or mutual fund value.
Also, there could be full offloading of these securities to receive the full value.
5. Withdrawal from EPF:
EPF i.e. for retirement can also be opted in a case there is no other go to option for funding. And as per the PFRDA, the funds can be released in as less than as 3 days.