The world is a book and those who do not travel read only one page– Saint Augustine
Well, who doesn't want to finish "the book" in this case? But unfortunately, it is not that easy. International travel is an expensive affair, especially if you are traveling to Western countries, starting from visa process.
Be it for student visa or tourist visa, one of the requirements for traveling to Western countries is having a "healthy" bank statement, to assure the authorities that you have enough money to cover all your travel and stay expenses and any emergencies. Most people don't have this kind of amount handy in their accounts as they prefer investing their earnings for returns. This is one of the reasons why many Indians are discouraged to travel to Western countries. However, there are ways in which one can deal with a situation like this. Here are the options:
Loan against LIC policy
Loan against LIC policy is an easy way of availing personal loan if you have a running plan. You must have a valid LIC policy and must have paid at least 3 years of premium in full. Interest rate on this kind of loan depends on the applicant’s profile. The loan is valid for only LIC endowment policyholders and the policy is held as collateral by the LIC. However, not all insurance policies by LIC have this feature.
Loan against mutual funds
Loan against mutual funds units lets investors borrow money by pledging their mutual fund units as collateral. It's one of the best options to meet short-term liquidity needs without redeeming the mutual fund units and losing out on returns. The interest rate on these loans varies from lender to lender and depends on the market conditions and the applicant's credit score. The tenure for loan against mutual funds units is usually shorter than other loans, making it convenient to repay immediately after your needs have been satisfied.
Gold loan
Gold loans have been a lifeline for many when in times of urgent needs. In a rising interest rate scenario for personal loans, these loans come handy as an alternative option as they provide quick and easy access to funds without the burden of high interest rates. Gold loans do not require credit history, cibil score, proof of income, etc. as in the case of traditional loans.
Sponsor’s account
Another way out is presenting a bank statement of a sponsor by establishing that you are either related to the sponsor by profession or the sponsor is a part of your family. Among the most recognised are spouse sponsorship and employer sponsorship. One can use documents like marriage certificate, pay slips, etc. to establish such sponsorship.
Borrowing
Borrowing from a close friend or family member can be the best option in such urgent times. This also gives one the convenience to repay the entire amount together in a short period unlike in the case of a personal loan where there is a lock-in period.
