Ways to get emergency fund: Sometimes we come across situations where we need money urgently. People feel stuck in problems when they need money suddenly in any situation. People have limited options to raise money instantly. At that time, think wisely and take decisions.
In some ways they can get instant cash and fulfill their need. These options include personal loans, credit card usage, bank overdraft etc. available to the public. But these three have different rules. Let us know some details about these 2 options here.
Option of Personal Loans
A personal loan should be chosen when a large amount of money is required. For marriage, higher education, buying a house, any medical emergency you should opt for a personal loan. The bank approves your personal loan after thoroughly examining your financial status and Cibil Score. On this you have to pay the specified amount including interest to the bank every month. If you are employed then a personal loan may be the right option for you in this situation. Because EMI can be decided and paid monthly according to your salary.
Bank overdraft facility
A bank overdraft is a special banking facility in situations where you don’t have cash on hand. It is offered by the bank to its most loyal and responsible customers. Under this service, the bank allows you to withdraw more than the amount deposited in your savings or current account. But the bank charges you interest for this facility.
For example, in your bank account Rs. 50,000.. the bank will give you Rs. 20,000 overdraft limit so you can withdraw from the bank a total of Rs. 70,000 can be withdrawn. Those who need money for a short period of time should use a bank overdraft. The money has to be repaid within the stipulated time.
Use of Credit Cards
By using a credit card you can buy goods and services that you need immediately. Those bills can be paid next month. Every credit card has its own limit. Accordingly you can make a purchase or pay any bill. If you are getting a monthly salary, you should use a credit card in those situations if you expect to be able to pay off the credit card amount in the next month. If your financial situation is not good, you should stay away from credit cards. If you don’t pay on time, you will have to pay a huge amount of interest to the banks. Financial experts suggest that you choose policies that will do you the most good and least harm when you need money.
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