Nationwide containment has been put in place to prevent the spread of Covid-19, which has hurt the economy. However, there was no option other than locking it down. During this period, many SMEs are still struggling with a cash flow crisis. Many large companies are struggling to revive activity.
The employees of these organizations suffered the most during the Corona period. Many employees have lost their jobs, many have seen their wages drop. Taking out a loan is the only option to face such a cash emergency. There are four ways in this news that you can take out a loan right away in an emergency.
- Loan against FD: If you have a fixed deposit (FD), then in an emergency you can take out a loan immediately by pledging this FD. It is the best source for meeting immediate financial needs as it has a very low margin and can get up to 90-95% of deposits as a loan. Banks typically charge 2% more than the FD rate as the interest rate on this loan.
- Gold loan: In a time of record gold, it is easy to take out a loan in lieu of your jewelry or ornaments. This loan is issued within a few hours and the interest rate on this loan is lower than that of a personal loan because it is a secured loan. Additionally, banks offer flexible repayment options on gold loans. At present, up to 90% of the value of gold can be used as a loan.
- Loan of FinTech Startups: There are many application-based fintech startups in India that offer online lending based on your qualifications. This option is particularly popular with younger populations who are new to credit and are asked for short-term expenses.
- Covid-19 personal loans: Many public banks like Punjab National Bank, Bank of Baroda, Bank of India have introduced a new category of personal loans to relieve their customers of Covid-19. This loan is called the Covid-19 Personal Loan. However, banks have very strict standards for these loans. They usually give Covid-19 personal loans to salaried employees or employees who have a salary account with the bank.