6 Assets That You Can Use to Obtain Funds in An Emergency

Emergencies by definition show up unannounced and bring along an array of unforeseen expenses. This means that regardless of how much you plan beforehand, your dedicated corpus for emergencies may not suffice and run dry sooner than you estimated. In such situations, it’s wise to avail funding through asset-backed emergency loans as these give access to financing on cost-effective terms. The interest rate and sanction you will get depend directly on the type of asset you pledge.

Here are 6 assets that you can use to get funding in an emergency.


To avail a loan against property, all you need to do is pledge a residential or commercial space you own as collateral. The presence of a high-value asset ensures that your sanction is high, often running into crores and that the interest rate is nominal. Lenders usually offer you funds amounting to up to 90% of your property’s market value. Remember, the better the condition of your asset, the higher will be your sanction. Being a secured loan, you also get to repay it via a long tenor, spanning up to 20 years, which keeps your EMIs affordable.


Gold is a common asset, and in an emergency, you can use it to get liquidity quickly. Lenders normally offer funding up to 75% of your gold’s value. This can be in the Rs.10 to 20 lakh range, depending on the valuation of your gold pledge. Further, some financial lenders and NBFCs allow you to apply for an emergency loan, thus making the offering even more convenient.  


A car collateral loan is the one in which you use your vehicle to get funding from your lender, against it. The quantum of funding depends on your car’s value, which is based on factors such as its age, original price, and depreciation. The loan-to-value ratio is lender-specific, but can run high. As a car is a depreciating valuable, the newer your car, the higher will be your sanction.

Fixed Deposit

While breaking an FD in an emergency is an option, it may not be the most profitable. This is because you can easily obtain a loan against your deposit and allow it to flourish in the back lines. The loan amount you can get depends on the type of deposit you pledge. Typically, you get access to larger financing when you offer a cumulative, rather than a non-cumulative FD.


In a similar manner, you can also pledge securities you own such as mutual funds, bonds, shares and stocks to get funding in an emergency. Since these investments can be high-value ones, the sanction is also correspondingly large and can run into crores. The loan-to-value ratio depends on the type of investment you pledge and the risks involved with that particular instrument. However, the repayment tenor for this type of loan is usually short.

Insurance policies

Pledging your insurance policy not only helps you get access to a high-value sanction, but also allows you to keep your policy intact. The capital a lender offers in return of your investment depends on the quantum of premium you pay, which ranges between 9% and 12%. The tenor depends on the policy’s term and it’s important to note that ULIPs and term plans do not qualify as valid assets.

Whether you are scouring the internet for medical emergency loans or need instant financing for an international trip, an asset can prove to be of immense value. However, the valuation process can take time and identifying an asset quickly is not always possible. In such cases, you can apply for an unsecured loan with a reputed lender like Bajaj Finserv.

Bajaj Finserv offers personal loans of up to Rs.25 lakh within 24 hours of your application, thus making the offering function as an emergency loan, when needed. All you need to do to enjoy a speedy disbursal is get your application approved. Getting approval is easy as the eligibility terms are simple and you need to submit minimal documents to qualify for the loan. Further, you can also avail the flexi personal loan and access funding on the go without needing to make multiple applications. Thanks to this facility, you can withdraw from your sanction anytime you want and pay interest only on the amount you use. Moreover, you can also repay the loan via interest-only EMIs and pay the principal only at the end of the tenor.