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There is one credit product which works like an overdraft account where you can borrow as and when needed, for as long as you want!
We often come face to face with situations when we need money for short periods, but don’t have ready cash. When such expenses can be paid by a credit card, we may do that, but often we need hard cash to meet pressing expenses such as school fees, medical bills, or other unforeseen contingencies. In such situations, the most commonly used form of credit is a personal loan. Most institutions extend a personal loan based on your credit score, income proof and assorted documentation. A personal loan works well if you can space out the repayment schedule by EMIs over 12 to 24 months. What if you require the loan for a short period, say a few days, or a couple of months only? A personal loan will simply not fit the bill.
There is one credit product which works like an overdraft account where you can borrow as and when needed, for as long as you want! You can enjoy the loan for days, months, even years, without any EMIs to honour. All you have to do is pay the interest falling due in the account regularly. It is widely used in southern India, but is yet to pick up in other parts of the country. It is the loan against gold jewellery, or gold loan. The best part about a gold loan is that there is no rigid schedule of EMIs as it comes with a bullet repayment plan. And you can close the loan even after one day, without any pre-payment penalty.