Need credit? Need a personal loan? During medical emergencies like or marriage function or to pay bills you require instant money and you apply for a personal loan. You contact the lender in a hurry and got the personal loan with a high-interest rate. This happens because you have a low credit score or maybe you are applying for the first time. Later you realize that you pay a large amount from your salary as a monthly EMI. But you have already made a mistake. But you know you have other options to borrow money like,
Gold Loan
Most of the lenders willing to provide to a gold loan because they get gold as collateral. if you are in need of money, a gold loan can provide you within one day. Minimal documents required and it takes one day. And the interest rates on a gold loan is less than a personal loan in between 11% and 15%.
Loan against Insurance Policies
Many take an insurance policy to get tax benefits and investment purpose. Many don’t know that the insurance policy can avail your loan. Amount of loan depends on the type of insurance you have. You can get the maximum of 80%-90% of the surrender value of the policy. The interest rate varies between 10% to 12% and depends on the insurance policy changes.
Loan Against Fixed Deposit
It is one of the best alternatives to personal loan. If you have a fixed deposit and you want to withdraw at time of emergency. For doing that you need to pay the penalty that disrupts your savings. But you take a loan on your deposit amount at a lower interest rate.
Loan Against PPF Account
Loan against PPF account is another option that may fullfil your need for money. You can get a maximum of 25% of your PPF amount. You are eligible for a type of loan after having an account for minimum 3 years. The interest rates are lesser as compare to personal loan.
Loan Against Mutual Funds
As it is an asset you can get a loan by pledging it. The maximum amount can be of 50%-60% of the amount of fund. The interest rates decide at the time of the application