The Covid-19 has disrupted the life of almost everyone. Most people are facing the financial brunt this virus has brought upon them. In the case of a financial crunch, it is natural for many to dip into their savings or investments or may even considering taking loans.
Is it advisable to take a loan or break your investments to lessen the financial burden?
Money9 Helpline lines up experts to help you understand what should you do in such financially challenging times.
The helpline hosted Rishi Mehra, founder of Wishfin and personal finance expert. He shared his valuable insights to address the financial queries of our callers from across India.
Here are some questions:
Hasmukh Joshipura, Gujarat: I have lost my job. I have the IDFC ELSS fund, LIC ‘s endowment plan, and Kisan Vikas Patra post office scheme. My dues on credit card and personal loans are pending. What should I do?
Mehra: You should first pay off your credit card dues. The credit card charges a higher rate of interest in between 40 to 50 % which over a period will multiply and accumulate into a large debt. You can check online your IDFC ELSS fund or with the bank, they have an option to provide you 75 % loan on that. You can take that loan and pay off your credit card dues. First, get done with your credit card pending amount, and then you can focus on your personal loan.
Abhishek Mall: What about the loan from an insurance company against our policy?
Mehra: For endowment policy and some plans, they have some time period. If that time period is passed then the company can provide you a loan. There are some banks also that give loans, but you should prefer insurance companies as they are aware of the policy and the internal factors also plays an advantage.
Aloke Mazumder, Kolkata: I am paying EMI a personal loan of Rs 4 lakh and my credit card’s outstanding is Rs 1 lakh. To reduce my debt burden should I liquidate my investments in MFs or take a loan against FD?
Mehra: If you can liquidate your FD, you should do that to pay off your credit card dues first.
(Follow Money9 for latest Personal finance stories and Market Updates)
Funds would be raised through issuance of fully paid-up equity shares at Rs 10 apiece to eligible shareholders of the company as on the record date
This, however, is subject to the outcome of certain court proceedings, a combination notice filed with the Competition Commission of India (CCI) noted
Airtel will pilot and deploy the indigenous solution as part of its 5G rollout plans in India and begin the pilot in January 2022
IIFL Home Finance will issue secured redeemable and/or unsecured subordinated redeemable NCDs for an amount aggregating up to Rs 5,000 crore