5 Financial Instruments Against Which You Can Think Of Taking A Loan
A personal loan is the first option which all people would consider when they think of getting a loan. When a financial crisis comes in front of you, you will either use your savings or you can consider getting a personal loan immediately. But there is no need to worry about you because there are many financial instruments available on the market, against which you can easily take a loan when you need it.
Here, we are going to share with you all the details about 5 such financial instruments which are as follows.
#1. Loan against Shares:
Those people who have a huge amount of investment in equity shares, then they can avail a loan against the equity shares. In this, the ranges of interest rate are within 11 percent to 22 percent p.a. The loan value and tenure depend on the NBFCs and the banks on which you are applying. Generally, the bank and NBFC give you a loan at a minimum rate of 50 % of the value of equity shares.
#2. Loan against Fixed Deposit (FD):
The biggest advantage of a personal loan over a bank fixed deposit (FD) is that it is available very quickly. Normally banks give loans up to 70-80% of the value of fixed deposit FD.
#3. Loan against Gold:
Most people in their country invest in gold. Hence, it has some gold in every Indian house. If you want to take a loan then you can consider taking a gold loan. According to the Reserve Bank of India’s guidelines, banks and gold loan companies can give up to a maximum of 75% gold loan on your gold value. Every bank and NBFC is different in interest rates.
#4. Loan against Residential Property:
When we want to a personal loan instead of any property then know it as a loan against residential property. Nowadays, many financial institutions are available on the market which offers us to take a loan against the property.
#5. Loan against Life insurance policy:
The biggest advantage of taking a loan in lieu of a LIC (life insurance policy) is that it has to pay less interest than a personal loan. If you have taken a life insurance policy then you can consider taking a loan against a life insurance policy.
Generally, the loan amount can be some % of the surrender value of the life insurance policy. The personal loan amount can be from 80 percent to 90 percent of the surrender value of the life insurance policy.