Overdraft facility is sanctioned against a house, fixed deposits, and insurance policies as collateral, and interest is charged on the usage of money.
India is amidst a terrible second wave of the COVID-19 pandemic. This is a tough time for the people of the country. Many have lost their jobs, many are going through pay cuts. Medical expenses have also risen. During such a time of crisis having an extra income is welcome for anyone.
With the active COVID-19 cases dropping remarkably at the end of the year 2020, economic activities rebounded pushing the stock markets up in the first two months of 2021 to all-time high levels.
However, the rate of inflation remained high for the major part of 2020, aggravating the miseries of people struggling after a job loss or salary cuts. But the key policy rates were kept low by the Reserve Bank of India (RBI) to give priority to economic development rather than controlling inflation.
Here we bring some options for you to earn some extra money. However, all options come with their own set of advantages and disadvantages which should be carefully read before investing.
Choose tax-efficient products
Investors can turn towards specific issuers as per their preference and lend with a horizon of 2 to 3 years. They must also maximise the tax efficiency with suitable product structures.
Invest in equities for long term
However, to beat inflation, investors have to take some risks and invest in equities for the long term.
Sectors you may consider
Sectors such as financial, healthcare, and FMCG alongside others have certain opportunities that can be utilized. They have strong chances of outperforming broader markets and can be tapped via specific products such as Mutual Funds and PMS.
Loans against cars
If someone possesses a car, he/she can get a loan against it if they are in dire need of funds. No income documentation is required to receive a loan against the car.
Overdraft facility
It is a type of credit facility that is linked to a bank account and a user can get money from an account even if there is no money left in the account. It is provided by financial institutions, including banks and NBFCs.
Overdraft facility is sanctioned against the house, fixed deposits, and insurance policies as collateral, and interest is charged on the usage of the money.
Gold loan
People can also look for loans against gold as it comes at a lower interest rate and there are several lenders which offer gold loans.
Loans against insurance
Many people take insurance policies for the safety of their future and now when there is a liquidity crisis, loans can be availed against insurance policies like money back and endowment policies. These policies come with life cover options and therefore, one can get loans against these policies.
Loans against credit cards
Consumers can also get loans if they need a credit card as there is a system that can help in the quick disbursal of funds if they have a good repayment history.
Line of credit
For a line of credit, one can get loans up to a maximum limit and give it back and then borrow again.
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