A Medical Emergency, Unplanned significant Home Repair, Last-minute holiday that you’re excited to take, Unplanned disaster that results in car Damage, all these circumstances all have one thing in common: they all call for you to spend more money that you hadn’t initially budgeted for. And how can you make plans for the additional finances required when you have to deal with such unanticipated expenses? In conclusion, you have two choices.

But which one of these two choices ought you to pick? The solution is not an easy decision. It relies on a variety of variables, including your financial situation, ability to repay the loan, and the obligations and assets you currently have.

When is Borrowing Money a wise move?

How do you tell if getting a loan is the best course of action for you? Here are several scenarios where getting a loan could be more advantageous than selling your investments.

Benefits of Borrowing Funds

You might think that taking out a loan will be expensive. However, if you have a sound financial strategy, you may easily make room in your budget for a loan. Additionally, you might benefit from some of the unique benefits that come with taking out a loan as opposed to selling your investments. Here are a few of these benefits of taking out a loan.

Getting a loan might help you establish credit. Additionally, your credit score rises if you make on-time loan repayments. Additionally, having a high credit score is always advantageous since it will make it simpler for you to borrow money in the future.

These days, it is typical for loans to be disbursed in a remarkably short amount of time. You may anticipate the money to be deposited to your account fairly immediately once your application is accepted.

The fact that your investments are untouched is the largest benefit of taking out a loan. By doing so, you may continue to accumulate wealth while also borrowing money to meet your current requirements.

When should you consider Selling your Investments?

You are aware of the benefits of selling your investments to cover immediate financial needs. Here are several situations where selling your investments can be the best course for you.

Advantages of Selling your Investments

There are several benefits to this strategy if you are thinking of redeeming your assets instead. It can mostly aid in your prevention of incurring debt. Additional advantages of selling your investments include the following.

For the majority of people, increasing debt may not be a wise financial decision. Additionally, you can avoid taking on more debt by redeeming your investments instead. In the long term, this can be to your financial advantage.

You can also choose for partial liquidation, which keeps some of your capital intact, if you decide to redeem your investments rather than taking out a loan.

A Loan secured by your Investments offers the best of both worlds.

If you’re still having trouble deciding, you could discover that borrowing money against your investment is the best solution. The Indian market now offers a wide variety of assets that serve as solid collateral for loans. Here are a few of these choices for you to think about.

In addition to the choices listed above, if you have a life insurance policy, you can also apply for a loan against it. This is an easy approach to cover any unexpected costs without using up your savings.


It’s not always easy to decide whether to borrow money or sell your investments. Before deciding on one of these solutions, you need to consider a number of factors. So, take your time and come to a wise financial conclusion. And if you need help with this, you can always see a financial counsellor for their professional advice.

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