A cash crunch is often unplanned, unanticipated; be it an individual or a business. Thus, having the right financing options in the back of your mind will always give you an edge over any cash problem.
Hence, below are some of the most affordable and reliable credit options you can refer to whenever required:
Loan against mutual funds and other securities: The first but most commonly used option, loan against mutual funds is a great way to secure the required funding without liquidating your investment. One can avail a minimum of 60% of the mutual fund’s maturity value as loan. Even more, if the lender allows it. An applicant can also mortgage his/ her other securities to avail the loan.
Loan from a credit card: Loan from a credit card is not a new concept. In fact, people who have been using credit cards from a long time have probably availed a loan from it already. The only important thing to remember is, you must borrow only in accordance to your repayment capacity i.e. don’t withdraw more than what you can’t pay within a month.
Loan against property: Needless to say, a loan against property is a very popular credit option and almost everyone is aware of its existence. So, you can approach your nearest bank or NBFC to avail of the said facility.
Personal loan: Last but not least, you can apply for a personal loan if you don’t have any of the above-shared types of assets. The loan is unsecured in nature and thus, make sure your CIBIL score is up to the mark.
Bottom line: Just check your eligibility for the loan (whichever you plan to apply for) before applying.