THE A TO Z OF LOANS…

Loans. We all know what loans are and how relevant they are in today’s world. Everything is getting ‘crazy’ expensive while salaries remain stagnant. Needs and demands know no limit and thus we all at some point in our lives resort to good old loans… credit cards or personal loans… house loans, cars loans and educational loans… we are no stranger to these terms. 

This article is not going to technically explain what and why are loans or the usual finance jargon. This topic is meant to deal with other options one has instead of the normal cliché phenomenon of loaning from banks…taking loan against securities like property, assets, shares, and gold.

Where the interest rate of a personal loan ranges from 16 to 24%, the interest rates for these loans range from 12 – 14%...thus, they are much cheaper!

    1. Loans Against Shares

To get such a loan-

The shares which you own should be on the approved list of your lender bank.

The shares should be fully paid up.

This is a good option for those who need to fulfill immediate financial needs while preserving their investments.

    2.Loans Against Property

The minimum eligible criteria which you need to fulfill to get this loan are -

Your income, savings, debt obligations

Cost/value of the property mortgaged

Your repayment track record for other loans, credit cards, etc.

   3. Loans Against Gold 

Gold loans are easy to get at low interest rates. All your need to do is, to pledge your gold ornaments or coins to banks or financial companies.

   4.Loans Against Fixed Deposits

Instead of breaking fixed deposits, one can opt for taking loans against them. Usually, banks lend up to 75% to 85% of the deposit amount as loans with a rate of 1% – 2 % interest higher than the one of the FD.

   5.Loans Against Employers

Sometimes, you can also approach your employers for providing you loans while adjusting the repayment in salary. One can also request for a cash advance on salary, in case of urgent financial needs. No paper work, no interest rates.

Loans against securities are easily payable, have low rates of interest and are convenient for small to medium to large requirements.

Generally, these loans do not require tedious documentation or complicated paperwork and are fast, clean and efficient.

The most important part about such loans is that they provide us with only a fraction of the market value of the asset as a loan….and thus are flexible.

…But the bottom-line is, that a loan is at the end of the day, a debt and must be taken cautiously!