People often have to depend on loans to overcome financial stress. In the time of inevitable emergencies which leads to a mismatch in liquidity, uncertainty in income, loans help us to bail us from these issues. It’s a way which helps us to achieve our financial goals. Hence we must know how we can improve our loan eligibility and avoid rejection of loan application.
To obtain mortgage loans at reasonable interest rates people use their fixed assets and debt-free properties as collateral. As compared to personal loans, to obtain loans at affordable rates other common financial instruments like bond, shares and mutual funds are leveraged.
Some ways to get access to instant finances during emergencies like the COVID crisis are mentioned below.
- Loans from Fintech Startups
Quick, flexible and hassle-free credit lines offered by app-based fintech startups. It is beneficial for young people who are new to credit and requires a flexible amount for short term expenses.
- Gold loan
With very few documentations and possibility to borrow a huge sum of money against the asset gold is a better option because the collateral offers greater security to the lender and loan gets approved easily even when the credit score is low. Compared to other types of secured loans interest rates and processing times are very less.
- Life Insurance policies
Also known as the loan against the Fixed Deposit. A person can instantly get loans by pledging the person’s fixed deposit. As a person can get 90 to 95% of fixed deposit and due to very less margin amount, it is said to be one of the best sources for meeting immediate financial needs
- Covid-19 personal loans
A new category of personal loan ie, COVID-19 personal loans were introduced by banks such as Punjab National Bank, Bank of Baroda, Bank of India to help customers cater to financial emergencies due to the pandemic. Banks are providing this loan to all type of borrowers. Borrowers are eligible to avail loans up to 20 times the salary they have drawn last month (up to Rs. 2lakh). Similarly, pensioners can avail loan up to 15 times of their monthly pension. Tenure of loan is 5 years with concessional interest rates.
- Top up loans
Top-up loans are an easy option to quickly borrow money for home loan borrowers. They have lower interest rates compared to personal loans. Also, there is flexibility in terms of the tenure of the loan. Some banks offer the loan for 20 years or until the outstanding tenure of existing home loan.
