A personal loan is the first option which anybody would consider when they think of taking a loan. When there is a financial crunch, you will either use your savings or you might consider taking an instant personal loan as it is easily available these days. Yet, there are other financial instruments against which you can take a loan. Here we share about 5 such financial instruments.
1. Loan against Residential Property
If you have any residential property, then you can use that to take a loan. It will be kept on a mortgage with the Banks or NBFCs until you repay the loan. You can avail a loan against property for up to 75% of its value. The tenure range is maximum 15 years and the interest rate charged is anywhere between 11-15%.
2. Loan against Shares
If you have a huge amount of investment in equity shares, then you can avail a loan against the shares.
The loan amount and tenure depend on the Bank and NBFC you are applying to. The interest rates are between 11-16%. You can avail a loan up to 50% of the value of the shares.
3. Loan against Gold
Gold is something in which every Indian family plans to invest in. The primary reason is that it can be used in times of emergencies. Hence as the name suggests, you can avail loan against gold. According to the rule by Reserve Bank of India, you can avail a loan of up to 75% of the value of gold. The interest rate for loans against gold is from 12-17%.
4. Loan against Fixed Deposit
If you have a fixed deposit in a bank, then you can take a loan against it. You can take a loan against FD for up to 90% of the amount. The banks charge you 2-3% high-interest rate than the decided rate for the fixed deposit.
5. Loan against Life Insurance Policy
You can also avail a loan against your life insurance policy. The total value of the amount that you are eligible to avail a loan for is 85-90%. The interest rate charged on this loan is between 9-10%.
Listed above are the options which are available to you if you want to avail a loan. If none of those are possible then you can always apply for a personal loan which does not require any collaterals and can help you get the required funds instantly. You can now also calculate EMI on personal loan online using the EMI calculator.