Looking for funds amid COVID-19 pandemic? Try these options

Amid the second wave of the COVID-19 pandemic, people are looking at different ways and means through which they can have an extra income or can look for other sources of funds. Planning finances have become very important these days.  Many of them are facing a liquidity crisis at present and to eradicate that, it is important to have options available to get the much-needed additional money. 

These options come with their own set of advantages and disadvantages which should be carefully read before investing.

Loans against cars

If someone possesses a car, he/she can get a loan against it if they are in dire need of funds. No income documentation is required to receive a loan against the car. 

Overdraft facility

It is a type of credit facility that is linked to a bank account and a user can get money from an account even if there is no money left in the account. It is provided by financial institutions, including banks and NBFCs.

Overdraft facility is sanctioned against the house, fixed deposits, and insurance policies as collateral, and interest is charged on the usage of the money. 

Gold loan

People can also look for loans against gold as it comes at a lower interest rate and there are several lenders which offer gold loans. 

Loans against insurance

Many people take insurance policies for the safety of their future and now when there is a liquidity crisis, loans can be availed against insurance policies like money back and endowment policies. These policies come with life cover options and therefore, one can get loans against these policies.

Loans against credit cards

Consumers can also get loans if they need a credit card as there is a system that can help in quick disbursal of funds if they have a good repayment history. 

 Line of credit

For a line of credit, one can get loans up to a maximum limit and give it back and then borrow again.