A great way to arrange funds quickly 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 exploring these is an excellent bet. Personal loans may be readily available but come at high costs with elevated interest rates and extra charges. If you 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 more accessible, 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 funds at reduced rates. Here are five ways.
1. Take a Payday Loan
A PayDay loan is one that you can take instead 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 themselves of bank overdraft facilities. Moreover, you can get up to three times your salary amount as a loan. The repayment of such a loan must generally be completed within a year’s tenure. Furthermore, you have to pay interest only on the loan amount and the period for which you use it. This works because just interest on the loan has to be paid monthly. This isn’t an EMI-based loan. In case of a 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 straightforward. However, personal loans have high processing fees, not to mention interest. If you have mutual fund investments, a better way to arrange for funds could be to take a loan against these. Banks provide facilities that allow mutual fund holders to pledge their holdings in equity and debt schemes and take loans against this. Loans can be availed of like an overdraft.
4. FD Loans
With your Aadhaar Card, loan availment is accessible 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 fixed deposit in loans, with the option of overdraft facilities or EMIs.
5. Loan Against Gold/Property
If 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.
Final Comments
Today, you can get funds arranged in several ways, and you can find out more about these as you read on the Finserv MARKETS site.
