subject: Personal loan may not always be a superior offer [print this page] Personal loan may save you in an hour of need, but are you aware there exist not only better options but also more secured ones to get money quickly. Financial planners profess a personal loan should be the last item on your menu when shopping for money even if your requirement is immediate.
Personal loans and loan on credit cards are responsible for today millions of people under debt trap. Yet these people never realised they had a choice beyond even borrowing from friends and relatives, which was on decent terms and conditions.
With the credit history of the borrowers being increasingly considered for any future loans, a lot of your plans for today and tomorrow depend on how respectfully you manage your debt. Judicious debt management helps not only reduce the burden but also grows assets. It is the most practical way to evade debt in the financial ecosystem. Here's a set guess on better alternatives to a personal loan.
Loan Against Gold
Loan Against Movable Property
Loan Against Insurance Policies
Other Options
Other Options
These days, employer offer loan to their employees as part of their employee welfare programs. Majority of the big corporate houses and MNCs extend this facility.
Some companies even offer interest-free loans, though the amount of loan is typically small in such cases. You can either apply for an advance salary or a loan, which will be charged at a nominal interest rate.
Another safe option is to use your fixed deposit by taking an overdraft against it. You can avail up to 80-85% of the deposit amount.
The interest rate is charged 1-2% higher than the prevailing deposit rate. But there's a rider, your repayment would have be made in this case within the time period for which you own the fixed deposit.
Personal loan may not always be a superior offer
By: Bhavana Jhingan
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