A great way to arrange for funds at short notice is to opt for a personal loan online. Apply for it with just a click and your loan gets approved fast. However, there are other options when you need funds, and it’s a good bet to explore these. Personal loans may be easily available, but they come at high costs with elevated interest rates and extra charges. In case you happen to choose a personal loan, you should select a lender offering you the lowest personal loan EMI per every lakh. Since the inception of the Aadhaar Card, loan taking has become easier, as details linked to your financials and proof of identity/address are incorporated in the card. Still, it helps to know different ways to arrange for funds at reduced rates. Here are five ways.
1. Take a PayDay Loan
A PayDay loan is one that you can take in lieu of your next salary. This is a short-term loan for availing funds for a short period. This kind of loan is typically a single installment loan. This means that the total amount of the loan with interest will be deducted from your next salary, once deposited.
2. A Salary Overdraft
Salaried employees can avail of overdraft facilities from banks. Moreover, you can get up to three times your salary amount as a loan. Repayment of such a loan has to be completed within the tenure of a year, generally. Furthermore, you have to pay interest only on the amount of the loan you actually use, and the period you use it for. How this works is that, just interest on the loan has to be paid monthly. This isn’t an EMI-based loan. In case of foreclosure, there is no extra penalty/charge. Activation of this is easy and very fast.
3. Loan Against Mutual Funds
It may be easy to get a personal loan online. Apply through your bank’s website and the process is very simple. However, personal loans have high rates of processing fees, not to mention interest. If you have mutual fund investments, a better way to arrange for funds could be a way to take a loan against these. Banks provide facilities that offer mutual fund holders to pledge their holdings in equity and debt schemes and take loans against this. Loans can be availed of as an overdraft on these.
4. FD Loans
With your Aadhaar Card, loan availment is easy online or offline. If you have a fixed deposit with a bank, you can take a loan against that. You can get up to 85% of the amount of the fixed deposit in loans, with the option of overdraft facilities or EMIs.
5. Loan Against Gold/Property
In case you have gold or property, you can use this as security to take a bank loan. These are secured loans, so interest rates are naturally lower.
Today, you can get funds arranged in a number of ways, and you can find out more about these as you read at the site of Finserv MARKETS.