Loans for Covid Treatment? 8 Different Emergency Fund Loan Options
Points to consider before applying for a loan
You should check your credit rating before applying for a loan. The credit history is a record of all the loans you have taken out in the past and how well you paid them back. Before you apply for a loan, check the interest rate. The interest rates on loans that require collateral are often lower than those on loans that do not require collateral. All types of loans are granted in as little as 48 hours based on the borrower’s income and financial history and the collateral to be applied in specific situations. You will almost certainly have to pay a processing and penalty fee if you miss the repayment. These fees are based on the loan amount and vary by bank.
Covid Treatment Bank Loan Loans
Individuals paid as employees, non-employees, or retirees are eligible for unsecured personal loans between 25,000 and 5 rupees from PSBs to meet Covid treatment requirements. Banks like SBI and Canara Bank offer this unsecured loan. SBI offers an interest rate of 8.5% with a 5 year tenure.
Loans for Covid Treatment – Personal Loans
Often times, a personal loan is one of the easiest ways to obtain funding for a wide variety of personal needs. Perhaps more importantly, you do not need to provide any collateral to purchase this loan and that you have virtually no restrictions on how the funds can be used. However, borrowing money comes with a price tag in the form of interest payments, processing fees, documentation fees, and so on.
Loans for Covid Treatment: Gold Loans
A gold loan is another option to get cash instantly. Typically, gold loans are available for up to two years. After that, you can extend the loan. You must hold gold (in any form such as jewelry, bars, or coins) as collateral for a gold loan. Banks lend you up to 90% of the value of your gold.
Loan for Covid treatment: overdraft against time deposit
A fixed deposit loan is a secured loan that allows you to use your deposit as security on a loan. You may be eligible for a loan of up to 90% of your down payment. You don’t have to break your FD to get a loan against it. instead, you can borrow against it.
Loans for Covid Treatment – Loans Against Security
Loans against securities such as time deposits, mutual funds, demat stocks, or even insurance policies are also available. These loans have lower interest rates than personal loans. The loan amount can be between 60 and 90 percent of the surrender value of an insurance policy, between 80 and 95 percent of a savings account, and between 50 and 60 percent of the stocks or mutual funds.
The benefit of pledging your securities is that you can have quick access to consistent cash when you need it and still get the benefits of a shareholder. This means that you can exercise your rights to dividends and bonuses while benefiting from changes in the price of the stocks for which you have taken out a bank loan.
Covid Treatment Loans – Mutual Fund Repayment
Mutual fund redemption, which simply involves the sale of fund shares, is another approach to meet your immediate fund demand. Although experts advise against selling or withdrawing mutual fund shares anytime soon, individuals can do so in the event of a medical emergency.
While there are certain downsides, including taxable capital gains, it’s ideal for raising cash quickly in the event of a medical emergency.
In order to obtain a loan against a mutual fund, the owner of the mutual fund must complete an application and send it to the bank along with all other required documents. The loan amount is a proportion of the value of the mutual fund shares held at the time the loan was approved.
Covid Treatment Loans – EPF Loans
Employees with an Employees’ Provident Fund (EPF) account can withdraw or borrow money for medical reasons. The Employees Provident Fund Organization (EPFO) rules state that those wishing to withdraw money for Covid treatment can do so under the guise of a medical emergency for a spouse, family member, parent, or child. The member can withdraw the money if an employee, his parents, his spouse or his children get sick as a result of Covid.
Covid Treatment credit card loan
This may not be the best option, but it can be considered if you are in dire need of cash. A credit card loan is similar to a personal loan that is secured by your credit card. These are usually pre-approved loans that don’t require any additional paperwork. Depending on the lender, this can be converted into an interest-free personal loan after a set period of time. After that, a certain amount of interest is generated. There is a processing fee when converting a pre-assigned credit limit into a loan.