A lot of us invest in mutual funds, insurance or fixed deposits but fail to realize the importance of having ready cash, anytime, anywhere. Ready cash becomes even more important when you consider that sometimes it can take as long as three days to get your investments liquidated.

To help you sail smoothly through such rainy days, there are three ways by which you can get instant cash. However, it is important to keep in mind that these loans come with a very high rate of interest. All the more reason why you should always set aside some portion of your salary as cash in hand.

Loan against gold

Even though experts say buying gold jewellery is not a good investment option, it is one of the fastest ways to get instant loans at a time of crisis. You can get up to 80% of the appraised gold value within a few hours of filing an application. The rate of interest varies from bank to bank : for instance, State Bank of India (SBI) offers loans at 12.25% for up to Rs1 lakh and 12.75% for more than Rs1 lakh. The borrowing limit too varies: for instance, you can borrow up to Rs10 lakh from HDFC Bank Ltd.

Documents: You need to provide any one identification document, such as passport, driving licence, permanent account number (PAN) card, and any one address proof, such as a ration card, voter’s card, passport, and telephone or electricity bills. You would also need to provide a bank statement for the last three months.

Process: You don’t need to have an account with the bank, if you want money against gold. Simply furnish the required documents and a loan would be approved to you within a few hours.

Loan against a credit card

It is one of the most expensive ways to access money. However, it is also one of the fastest ways. You will be charged around 2-4% every month for a loan against your credit card, and the rate keeps increasing if you fail to pay the amount due on time.

Documents: You need to have an automated teller machine (ATM) personal identification number (PIN) of your credit card to complete a transaction. Generally, it takes two to three working days for the ATM PIN to be delivered to you by mail. So, keep it ready because other than withdrawing cash, it is also useful to pay your credit card bills in cash.

Process: Swipe your card, feed the ATM PIN, follow the written instructions and withdraw cash.

Loan against a bank account

A few banks, such as HDFC Bank Ltd, offer loans up to Rs5 lakh to its account holders within a few hours of an application. But all banks do not provide such services to its customers. Therefore, when you pass by your bank the next time, don’t forget to ask about instant loans on the basis of your existing account.

Documents: You need to provide an identity proof.

Process: Go to your bank, produce an identity proof and you can get a loan within a few hours of filing an application. The size of the loan would depend on your account activity and balance.

Source :- http://www.livemint.com/2008/01/06220928/
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