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Are You COVID Positive And Need Funds But Can’t Burrow From Anyone? Here’s What You Can Do
COVID patients or their relatives can explore some of these options for urgent funds if their bank loan request has been denied or put on hold:
New Delhi: At this time of COVID crisis, there is an urgent need of funds as many are infected with the virus and there is a rise in hospitalisation and treatment costs. Moreover, the cost of procuring critical medicines and oxygen supply along with vaccine has also gone up due to an acute shortage. At this critical juncture, many Covid-affected families are borrowing money from banks and NBFCs to meet their medical expenses and hospitalisation. However, at this moment, not all urgent loan requests may be entertained by banks due to poor credit score or a high amount of existing loans. COVID patients or their relatives can explore some options for urgent funds if their bank loan request has been denied or put on hold:
Provident Fund: Salaried employees who ae affected by the COVID and need money can withdraw from their Provident Fund account. While it is not ideal to withdraw from a PF account as it is considered a retirement corpus, one can use the option in case of a medical emergency. They can use this as last option if other options fail to get money. Notably, the provident fund can be withdrawn if the account holder’s immediate family members — spouse, children or parents — are facing a medical emergency.
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Mutual Fund: Apart from Provident Fund, here’s another option that can be used by the individuals to meet urgent fund requirements which essentially means selling fund units. However, professionals advise against withdrawing or selling mutual fund units in general. Though there are some drawbacks like taxable capital gains, it is, however, ideal to access quick funds during a medical emergency.
Fixed Deposit: Besides, the individuals can withdraw from their fixed deposits (FD) or Saving Accounts in case of medical emergency or financial crisis. However, before withdrawing any money from FD, one must ensure that their FD comes with a premature withdrawal facility. Notably, the fixed deposit account with a premature withdrawal facility allows the depositor to close the FD before the date of maturity, providing relief during an emergency fund situation.