Know About Best Alternatives to Personal Loan
When a person gets trapped in the urgent need of funds, the easiest option that he can consider is to avail of personal loans. Due to poor credit score and high-interest rates a person feels miserable and do not find any other choice to get money. Remember when all of the doors get closed there is always a door opened and you just need to search it.
Think if you will have other Best Alternatives to Personal Loan:
| Loan Scheme | Eligibility | Documents | Interest Rates | Processing Time |
| Loan against gold | Valid for gold ornaments | Identity and address proof | 10% to 17% | One working day |
| Loan against FD | FD should be at least a year | Fixed Deposit receipt | 1% to 2% more than FD rate | 2-3 days |
| Property Loan | Property should not be under any disputes | Proof of identity, age, income, and residence, | 12% to 16% | 10-15 days |
| Loan against shares | Individuals are eligible | Address, residence, and signature proof. | 8% – 9% | 2% above the rate of interest |
| Loan against Insurance Polices | 2 or 3 days | Actual documents of the policy | 8% – 9% | 2-3 days |
Loan against FD (Fixed deposits): This is the best scheme to avail cash quickly as banks lend the loan amount against their own FD’s. The borrower will have to repay the whole amount within the tenure period of a fixed deposit. The main advantage is minimal documentation required and these loans cover about 80 % of the Fixed Deposit value. Even you can earn interest rates during the term period of the loan.
Thus, it is very necessary to pay your monthly repayments every month like EMI’s.
Loan against gold: With the help of this loan, one can easily get immediate liquidity in the form of finance on the basis of one’s gold assets without selling it to the lender. The main benefits for the gold loans are no processing charges, and prepayment charges are levied by the bank. This loan is very beneficial as one with a poor credit score can easily avail it.
Loan against shares: Lenders also lend against shares of some companies which you can hold. However, some of the shares qualify for such loans. The loan amount depends upon the valuation of the security provided and the repayment ability of the person.
Property loan: A person can borrow a loan against property. The loan amount is calculated on the basis of the value of your property. A person also has the option to refinance his property to another lender in case of high-interest rates from the present lender. A person must take absolute care because if a person fails to make repayments he can lose the value of his land or a house.
Loan against Insurance policies: These loans have low rates of interest and have easy repayment options. The loan amount solely depends upon the value of the insurance policy. The loan amount can be repaid anytime in between the term of the policy. It is a quickly available loan with minimal documentation charges.
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| Three Tax Benefits of a Personal Loan | |
| Tax Benefits of Personal Loans | |
| Avoid being a Loan Defaulter | Avoid Bank Scams |
| Aviva launches its new 13 products compliant to IRDA norms |
Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.
