Eight Smart Ways To Raise Funds During Emergency Situation:


An emergency fund is something that will make it pleasant for you to handle your financial emergencies without worries. When there is a sudden emergency, and you don’t have the right finances to get you through, then the situation might get out of hand. 

Here are certain situations where you will need an emergency fund to help you through:

A Pandemic Outbreak:

When there is a sudden pandemic, you will be confused as some of your health insurances cannot cover the disease. But when you have a backup fund, you can get through it without a problem. Also, during a pandemic, there will be financial stress for everyone, even for their household expenses. 

Medical Conditions:

Some medical conditions will not get covered through your medical insurance, and an emergency fund is much needed for situations like that to get the necessary treatment.

Limited Coverage Amount: 

Sometimes your insurance cover will not be enough to cover your hospitalisation expenses, and you will suddenly need the money that can get fulfilled with your emergency funds. 

Reimbursement Clause:

Some health insurances cannot cover your medical treatments as cashless, so you will have to pay the money and reimburse it later. So you will need to pay the hospital bills prior and then reimburse it. 

Loss Of Job:

When you suddenly lose your job, you will need money to run your family until you get another job. So having an additional fund will help you at those times.

Heavy Business Loss:

Business is always a field where you cannot predict what will happen, so always make sure to have some funds for fulfilling your sudden losses and taking up your business smoothly.

Smart Ways To Help Get Funds During Emergencies:

The above are the standard conditions when your finances profoundly affect you, and you will have to pact with the complications that come along with the financial stress. Here are some smart ways that will help you in raising funds during emergencies:

  1. Using Emergency Funds:

An emergency fund is something worth six months of your monthly expenses. You should always make sure to have funds like that to help you out of emergencies. It will rescue you from the financial stress that you will have to go through in situations like that. When you have those funds, it will help you get over the situation without getting into a liability.

  1. Borrowing From Friends And Family:

Sometimes we will not have emergency funds, or those won’t suffice our current needs. In those times, you can ask your family and friends for help. When they share your burden, you can be relieved from the financial stress a bit. 

  1. Getting A Personal Loan:

When you have a steady income, you can opt for a personal loan to get over with the current situation you are facing. Nowadays, many financial institutions offer you a personal loan, but you should have a good credit score for it. Also, the interest rates for a personal loan might be a bit higher, so you have to think well before choosing to get it. But always analyse your repayment strategy before applying for a loan else you will severely affect your credit score. 

  1. Take A Credit Card-Linked Loan:

A credit card offers you a loan along with it, where you can get the funds you want and your loan amount will vary according to your usage. Also, there will be a specific limit within that you have limited your usage. These loans also come with compound interest rates that will put you in financial stress. 

  1. A Payday Loan:

A payday loan or a microloan is for meeting your short-term funding requirements. You can get these types of loans when you can repay when you get your salary. 

  1. Applying For A Gold Loan:

Gold is something that Indians are very fond of and have been taking along with them for ages now. So when you are in an emergency, and you have idle gold in your home, then applying for a gold loan is the most excellent option for you. Gold loan is the most preferred among the other loan options as it is easy to avail, has flexible repayment options, tenure and lower interest rates. The gold that you pledge will act as a collateral for the loan that makes it more accessible. 

  1. Take A Loan Against Your Investments:

When you have investments like FDs, PPF, RDs or mutual funds, you can get a loan against it. The loan amount and tenure will be dependent on the amount you deposit, and the interest rate will also be reasonable. 

  1. Loan Against Life Insurance Policy:

Yes! You can pick for a loan against your life insurance policy where the loan amount will depend upon the surrender value of your life insurance. In these cases, the loan disbursal will be done immediately, and you will be offered financial solutions with a moderate rate of interest. When you get a loan against your life insurance, you will put your loved ones at risk if you don’t repay it on time as it will affect your life insurance policy. 


Sometimes even when you are prepared with a solid health insurance policy and an emergency fund, you cannot be sure about getting your finances well settled. So you should always be ready to understand your needs and act accordingly to avoid stressful situations like these. An emergency is something that we cannot predict, so we should always be prepared to face it when it comes. 

The emergencies will already give you many panic attacks mentally, and when the finances also put pressure on you, then you are likely to get double the stress. The mental stress is something we cannot control, but the financial burden can be under control when we maintain our finances correctly. So always understand and have a way out of situations like these. Be prepared both mentally and financially to avoid last-minute panic attacks!


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