Loans against assets may not always work for you
Compare the returns, after factoring in penalties, with the interest rate of the loan
Other factors you should consider are the amount and tenure of the loan and your repayment capacity
The covid-19 crisis has hit many people hard, resulting in a cash crunch for people who have lost jobs or taken pay cuts or whose businesses have suffered. If you are looking for funds on a short notice, personal loans and credit cards may seem to be the immediate solution, but they come with high interest rates. What you can instead look at is taking loans against assets or securities such as life insurance policies, mutual funds, gold or property you own. Such loans, typically, charge a lower interest rate as they are backed up by an asset.