When you are faced with an unexpected onslaught of medical bills, job loss, or car repair, and you need Money Urgently. Financial experts recommend having at least 3 to 6 months’ worth of living expenses to help you tide over the financial emergency. However, the sad fact is that not many people have emergency funds stashed away for emergencies, making them completely unprepared for situations like these.
If you are stuck in a similar situation, and you don’t have an emergency fund to rely on, where do you look?
Save For Emergencies With Money Club Digital Chit Fund Platform
Need Money Urgently: Know 10 Ways to Get Instant Cash
Here are 10 ways you can get quick money without causing a dent in your finances:
- Borrow From Chit Fund
- Get a Personal Loan
- Take Loan from P2P Lending Platform
- Cash in on Unwanted Clutter
- Borrow Money From Friends or Family
- Withdraw Cash/Use Maximum Limit From Your Credit Card
- Premature Withdrawal or Breaking of Fixed Deposit
- Sell your Gold
- Loan on PPF Account
- Borrow against Life Insurance
- Borrow From Chit Fund Chit fund acts as a saving as well as a borrowing tool when we need money urgently. In a chit fund saving scheme, a group of subscribers save a fixed amount of money every month. You can save money from your salary to invest in chit funds each month. And when the need arises, you can bid to borrow a lump sum at affordable rates.In a chit fund, the number of months for which the investment is made is the same as the number of members in the scheme. Every member gets a turn to take the total amount collected in a month. The member who gets the money is decided based on a bidding system. Generally, those who are in need of money in a particular month participate in the bidding, and the member who bids the lowest is given the total amount of pooled money.
- Get a Personal Loan Without pledging collateral or security, you can get a personal loan to deal with your financial emergency. These types of loans are quick and are processed with minimal documentation, especially the personal loans offered by fintech companies. This loan gives you access to cash almost instantly, especially when you need money urgently. You can even apply for it online and get the funds in your account within 4 to 48 hours. You can repay your loan in easy monthly installments (EMIs), in tenures lasting up to five years. A Personal Loan is the best option if you need money urgently and wish to repay it in EMIs. Banks sanction and disburse loans in the shortest time possible. They simply access your documents and credit scores (which should be above 600 points) to approve your loan. Once your loan is approved, the bank directly deposits the loan amount into your account.
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Take Loan from P2P Lending Platform Peer-to-peer (P2P) lending platforms enable you to get a loan directly from investors, cutting out the financial institution as the middleman.
Peer-to-peer lending platforms allow individuals to lend and borrow money without going through a traditional bank. It is a concept that brings together borrowers looking for unsecured loans with the investors (lenders) who want to get high returns on their investments. So, P2P lending is a system where a borrower who is in need of money can get a loan from an investor who can provide loans at a certain interest rate. P2P lenders are individual investors who want to get a better return on their cash savings than they would get from a bank savings account or certificate of deposit. On the other hand, P2P borrowers seek an alternative to traditional banks or a lower interest rate.
The Money Club chit fund platform also works as a P2P lending platform. The Money Club mobile app helps you get high returns on your investment (if you pick money in the last round) with the least risk. Through this app, you can
- Save money regularly
- You can borrow money whenever you need it urgently
- Earn 3–4 times higher returns than bank fixed deposits.
- Cash in on Unwanted Clutter Selling your old used/unused things can help bring in a decent amount of cash when you need money instantly. Advertise the things you want to sell on popular social media sites. Also, list them on shopping sites that exclusively sell used stuff like eBay and Poshmark..
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Borrow Money From Friends or Family When you need money urgently, you can borrow money from your close friends and family. It has been a common practice for decades.
Although this can be the best option for quick money, it has its own drawbacks. Let us look at a few reasons why we should avoid taking money from friends and relatives:
- No interest component
- Vague repayment terms
- Inability to pay during their time of crises
- Risking the relationship
- Sheer awkwardness of being indebted
- Withdraw Cash/Use Maximum Limit from Your Credit Card A credit card allows you to borrow money up to your set credit limit. You can pay your balance in full each month or make a minimum payment. But, if you miss a payment or only cover the minimum amount due, you may have to pay interest charges. Withdrawing cash from your credit card is a definite quick fix, it has long-lasting adverse consequences. The high-interest rate of using a credit card is applied as soon as you withdraw money from it. There is no grace period, and you may also be charged with a cash advance fee. So, keep this option for quick money as your last resort.
- Premature Withdrawal or Breaking of Fixed Deposit A fixed deposit account is one of the safest investment options where a customer deposits a certain sum of money in an account, for a given period of time and earns interest on it. In an FD account, the amount which is deposited is locked for a period without any scope of withdrawal when needed. However, if the investor does need the money on an immediate basis, he or she can opt for premature withdrawal or breaking of the fixed deposit. Most banks charge 0.5% – 1.00% for premature withdrawal of the fixed deposit..
- Sell your Gold Buying and selling gold is a very common practice in India. It helps people to invest the money and when you need money urgently you can sell the same gold jewellery for cash. However, before selling the gold you must compare the prices of the gold according to the current market.
- Loan on PPF Account The Public Provident Fund (PPF) is a long-term investment plan backed by the government. One of the most helpful features of the PPF account is that you can take a personal loan against the balance in the account. As per the scheme rules, a PPF account holder is eligible to avail a loan from the third year of opening of account till the sixth year of opening of account. The amount of loan that a person can avail cannot exceed 25 percent of the amount that was available in the account at the end of the second year immediately preceding the year in which the loan is applied for. Interest is charged at 1% more than the interest earned on the balance in the PPF account.
- Borrow against Life InsuranceA life insurance policy not only secures the future of your family but also offers a good return on your investment. However, nowadays, policyholders get the benefit of availing a loan against the life insurance policy. So, not only does life insurance provide security, but it also helps when you need money urgently. Loans against life insurance policies have a lower rate of interest as compared to a personal loan. Additionally, if you take a loan against a life insurance policy, its value does not change with the market as in the case of loans against gold or shares.
Get Money When You Need It The Most
You'll get through this.
Whatever option you are considering to deal with your financial emergency, stay calm and make an informed decision after weighing the pros and cons of each option. Need Money Urgently? Don’t panic – money emergencies are usually temporary, so make sure to stay focused on your long-term goals.
However, start building up an emergency fund as soon as you recover from this financial distress. You surely don’t want to go through the stress again of not being prepared for another emergency.
