5 Types of Loans you can Avail to Survive the Covid-19 Crisis

The onset of the pandemic has led to great economic uncertainty. Markets have crashed, and millions of people face loss of employment, leave without pays, and salary cuts. Those with unpredictable incomes have perhaps suffered the biggest financial blows.

Managing finances at this point could appear difficult for many families. However, prudent financial planning at such times can go a long way. It will help battle cash flow disruptions and tackle emergency situations.

One of the many ways to tackle the need for funds is to opt for loans online. Have a look at the loans you can pick to wade through the Covid-19 crisis smoothly.

1. Personal Loan

The best personal loan banks offer loan amounts ranging from ₹1 lakh to 40 lakhs. With the lockdown in place, digital sanctions have been made available. One can choose tenure from 12 months to 84 months with compounded interest starting from 10.75%. These low-interest personal loans can be used to pay off debts, fund your child’s education, or cater to household repairs. You can also claim tax benefits under Section 24B in case you use the funds for house renovation.

2. Loan against Property (LAP)

long with applying for an instant personal loan online, consider a LAP. This is available for corporate entities, salaried employees, and self-employed class. You can keep your commercial, residential, and industrial property as collateral against competitive interest rates. The mortgage loans can be used to finance emergency costs such as medical tests, hospitalization, funding your child’s college education abroad, or for emergency household expenses. These are secured loans which offer low-interest rates for maximum benefits.

3. Home Loan

Home loans have the minimum turnaround time with the basic documentation. The eligibility criteria are simple, and loans are disbursed up to 90% cost of the property. You can also opt for pre-approved loans as per your needs, without any hidden charges. The fund amount can be used for purchase, construction, expansion, and renovation of the house. In case of moving into a new house, the received finances can be used for flooring, tiling, fittings, and the over-all setup expenses.

4. Business Loans

Just like an instant personal loan online, applying for a business loan entails a simple and quick procedure. The amount starts from ₹ 3 lakhs and goes up to ₹75 lakhs. Generally, loan tenure is in between 1 to 5 years. You can also opt for a top-up facility if you wish to obtain additional funds. No security or collateral is required to apply for this loan. To cater to the pandemic crisis, door-to-door services are also offered by some providers. All private limited companies, manufacturers, and traders can avail the loan.

5. Pre-Owned Car Loan

You do not have to postpone buying a car during a pandemic. In fact, it is much safer than travelling in public transport. At competitive rates, one can opt for car loans. The EMI options are flexible, and you can cover up to a significant percentage of the vehicle’s value. Choose the tenure up to 7 years and purchase a car from dealerships across 35 cities. Unaccompanied and sanitized test drives are being offered to facilitate social distancing.

Loans could be logical options to tide over the unsettling times. The best loan structures can cater to personal as well as business expenses. With long payback tenure and tax benefits, you can rest assured to be able to pay the EMIs smoothly.