Covid-19: Look for cheap loan options to raise cash as banks turn cautious

Go for secured credit options and make the most of assets like gold, house, car

With job losses, pay cuts and business failures, especially in the micro, small and medium enterprises becoming a norm in the wake of Covid 19 pandemic, many people will be looking to raise funds. However, banks, on their part, are becoming more cautious while sanctioning uncollateralised loans. In such circumstances, it is best to look at instruments that can provide you with immediate liquidity without much hassle, and more importantly, at a low cost.

Loan against fixed deposits:

Adhil Shetty, CEO, BankBazaar, says: “Most banks offer loans against fixed deposits (FDs). Since you provide collateral to the bank, it extends