Nothing can be said about when and to whom life will bring what financial crisis. It is very common to face a sudden financial crunch due to a sudden medical emergency, huge loss in business, important home repairs or a big family event. In such a situation, if suddenly this question arises in front of you that 'you need Rs 5 lakh tomorrow', then even good people lose their sweat. But in today's digital and modern financial era, there is no need to panic, because there are many such fast and secure ways in the banking sector through which you can easily arrange an amount of Rs 5 lakh within a few hours. Let us know from the perspective of a financial reporter which of these paths can prove to be the safest and best for you.
If you are in dire need of Rs 5 lakh tomorrow and your CIBIL score is very good i.e. 750 or above, then the first and best option for you can be 'Pre-approved Personal Loan'. In today's time, all the major banks like HDFC, ICICI, SBI and Axis transfer the loan to their old and trusted customers directly into their bank account with just a few clicks without any paperwork. The biggest feature of this route is that you do not need to stand in long queues at the bank and you get instant approval through the mobile banking app itself. However, you have to keep in mind that the interest rate on personal loan may be slightly higher than other secured loans, but it is the perfect solution to save time in times of emergency.
If your CIBIL score is not very good or you do not have the option of pre-approved loan, then there can be no better and safer option for you than 'Gold Loan'. In India, many big banks and NBFCs, from Manappuram Finance, Muthoot Finance, provide cash or account money to the customers in exchange for gold. By keeping the old jewelery or gold biscuits kept in your house in the bank locker, you can easily get a loan of up to Rs 5 lakh within just 30 to 60 minutes. In this process, no income proof, salary slip or CIBIL score is required, because your gold remains pledged with the bank. This is the reason why gold loan is considered the most reliable and fastest way to raise money tomorrow.
If you already have some savings and have investments in the form of mutual funds, shares, insurance policies or fixed deposits (FD), then there is no need to break your investments at all. You can avail the facility of Loan Against Securities or Loan Against FD on these investments. The biggest feature of this method is that banks do not take any kind of risk in this, hence they release funds of Rs 5 lakh to you immediately at a very low interest rate. Also, your old investment also remains safe and the returns on it also do not stop. In the eyes of financial experts, this is considered the most sensible and economical way to raise money in an emergency.
People who have a good credit card in use for a long time can avail the 'Cash Advance' facility through the credit card when needed. However, withdrawing cash from an ATM via credit card involves hefty interest and transaction fees, so it should only be used as a last resort. Apart from this, banks provide 'Overdraft Facility' for many salaried professionals, under which despite having zero balance in your bank account, you can withdraw an amount up to a fixed limit i.e. up to Rs 5 lakh immediately and later pay it as per your convenience.
Whenever you need a large amount of money like Rs 5 lakh tomorrow, do not get misled by any loan app or illegal online lending platform. Nowadays, many fake loan apps trap people in the name of giving loan in a few minutes and later give them mental torture by charging huge interest. Always contact authorized banks and financial institutions registered by RBI only. Before taking a loan, compare its pre-closure charges, processing fees and interest rates thoroughly so that you do not have to face any major financial crisis later. Only steps taken with wisdom and understanding can make your emergency easier.