Need emergency cash? Use loan against gold to get out of a debt trap

The interest rate on loan against gold (LAG) is 9-18 per cent per annum compa­red to 40-45 per cent on a credit card.

If you are caught in a debt trap, take a gold loan to pay your credit card dues.

You can get a loan of up to Rs 25 lakh and up to 60-80 per cent of the value of gold.

Gold loan providers allow options like partial repayment of principal and interest in place of a pre-decided EMI.

You can also choose to pay only the interest, and repay the principal at the end of the tenor.

Overdraft facility is also available, where you pay interest only on the amount withdrawn, and for the number of days for which the money is taken.

Instant cash, prepaid Visa card, and online credit are other disbursement options that are also offered now.