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oi-Sunil Fernandes

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Most of us invest so that we can use the invested money in the event of an extreme emergency. Some investments are quite liquid like bank deposits, stocks, etc. which can be cashed in quite quickly. But, what if you have no investment and there is an emergency like a quick medical operation that urgently requires money. Here are some methods you can rely on for quick cash.

gold loans

Promoting your gold to a gold lending company for quick cash may be the quickest way to get a loan.

The processing time is fast and the gold lending company or bank will specify the gold you will be loaning against. He will check the purity etc. before disbursing the amount. Typically, you will get an amount of 85% against your gold. Interest on gold loans varies and can be between 11% and 20%. If you do not pay the amounts, your gold is subject to confiscation. A gold loan can be obtained even if you have a very bad credit rating.

Cash against credit card

This is perhaps the fastest way to get money. However, the amount you can get is limited and the interest rates are exorbitant. You may not be able to withdraw more than 50,000 against your credit card and if you need larger sums this is not the ideal solution. Also keep in mind that there are cash withdrawal fees and interest rates can vary from 24% to 40%. This should be the last resort in an emergency.

Personal loans

It 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 high interest rates, but not as high as credit cards. Interest rates may vary from bank to bank and depend on your credit rating. Generally, interest is charged between 12 and 24 percent. There are also prepayment charges and some banks charge up to 4% prepayment charges.

Securities loans

You can also get a loan against equity, against post office programs like KVP and NSC. Interest rates are more or less comparable to personal loan interest rates. The loan amount would depend on the value of the amounts in the certificates. The loans are not very large and the duration cannot exceed 2 years. There is also a processing fee which is payable on the loan amount.

Conclusion

Go for the above loans only if you are in desperate need. Most interest rates on loans and advances are horribly expensive and all of the above should be your last resort.

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