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What are the options for borrowing money during a financial emergency?

Curious about Financial emergency

What are the options for borrowing money during a financial emergency?

In India, there are several options available for borrowing money during a financial emergency, such as:

1. Personal loans: Banks and nonbanking financial companies (NBFCs) offer personal loans that can be used for emergency situations. The interest rates and repayment terms vary among different lenders.

2. Credit cards: Credit cards can be a quick source of funds during a financial emergency, but they come with highinterest rates and fees. It is important to pay off the outstanding balance as soon as possible to avoid accumulating debt.

3. Gold loans: Gold loans are secured loans that can be availed by pledging gold jewelry as collateral. The interest rates are lower compared to unsecured loans, and the loan amount depends on the value of the gold pledged.

4. Loan against fixed deposits: Individuals can avail a loan against their fixed deposits with banks. The interest rates are lower compared to other unsecured loans, and the loan amount depends on the value of the fixed deposit.

5. Loan against insurance policies: Individuals can also avail a loan against their life insurance policies or other insurance policies, which have a surrender value.

It is important to evaluate the interest rates, fees, and repayment terms of each borrowing option before selecting one to ensure that it aligns with your financial situation and goals.

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