Life is unexpected and a financial crisis can happen at any time. People keep aside a part of their earned money as savings to deal with such financial crises. However, when an emergency arises, people often look for different sources from which they can borrow a loan, or mortgage their assets. However, there is one easier and simpler option too. Buying a loan against FD can get you instant liquid cash for managing such situations. All you need to do is have an FD, and the company or bank with which you have it, will provide you a loan against 70-90% of your total principal amount deposited in FD.
Great Option for Small Loans
Loan against FD is a great option for dealing with short-term crisis or when you want small amounts of money. FD can come to your rescue before they get matured by providing a loan/overdraft facility. Companies offers loan against FD facility by providing its customers a loan of 60% of the principal amount in the case of non-cumulative FD. Whereas, in the case of a cumulative FD it amounts up to 75% of the principal amount.
Less Interest Rates
A great advantage these loans have over other loans is they have much lesser interest rates than other loans. The rates of interest on these loans is charged only from 2% to 3% more than the interest rate on your FD. NBFCs offers interest on FD at 7.60%, and the loan interest rates amounts up to 2% above that rate. Normal loans are charged between 9% to 15%, hence, a loan against FD is a much better and cheaper option when looking for small amounts of loans.
Minimum Documentation and No Costs
The duration for which the loan is taken is generally for the same time period in which the FD gets matured. Sometimes it can be less than the duration of FD, but can never be more than that. While taking a loan against FD, you won’t be able to break it to get your principal amount before it gets matured. You cannot withdraw any money from your FD till you would repay the whole amount of loan in full. NBFCs have a very simple process of providing the loan with a single page documentation. There are no processing fees or any other costs, and you get the disbursal of amount in your bank within 24 hours.
Prepayment and Foreclosure
Foreclosure is the procedure of foreclosing your loan by repaying the amount of loan before the duration of the loan ends. Unlike other loans, loan against FD doesn’t charge you any such charges or fees. This gives you the flexibility of paying off the loan amount whenever you want to. Company offers flexible repayment options for these loans which is within the tenure of the FD, which initiates after the 90 days from which the FD has started.
An important thing to be noted is – the time when you are applying for the loan. If you are applying for the loan when the maturity date of the FD is near, the maximum duration you can get to pay the loan off is limited to the time remaining till the maturity of the FD. Due to this, you might not have many months and you would have to pay higher EMIs to pay it off. So, ensure that you check which FD you are applying for loan against, if you have multiple FDs of short durations. Look for the one whose maturity date is farthest by analysing how much EMIs you would be able to pay.
All You Need to Know About Personal Loan Online Disbursal Process
There are some NBFCs like Bajaj Finserv which provide the fastest personal loan disbursal within 24 hours of application.
Unwanted or unpredictable expenses crop up in every person’s life. People often need additional cash to fund these which may not always be available. In such a scenario, opting for a personal loan online poses a smart choice catering to all such expenditures.
There are some NBFCs like Bajaj Finserv which provide the fastest personal loan disbursal within 24 hours of application. Also, they give pre-approved offers for their existing borrowers on a personal loan, business loan, home loan and several other financial services as well as products. These exclusive tailor-made scheme with simplified process aids in saving a lot of time of the borrowers.
Most people prefer taking personal loans online owing to its instant availability. So, if you are planning to opt for one, here’s how to apply for a personal loan:
Unlike the conventional way of processing, an unsecured personal loan takes less disbursal time when applied online. In fact, the loan amount is disbursed within 24 hours in your accounts post verification of few documents.
You need to furnish the following while applying for a personal loan online:
- KYC documents
- Employee ID card
- Salary account statements for the last three months
- Salary slips of the prior two months
Apart from minimal paperwork, you also need to match the following personal loan eligibility criteria:
- Your age needs to between 23 and 58 years at the time of application.
- You should have a stable source of income from an MNC or any public/private sector.
- Lastly, you need to be a residing citizen of India.
Note: NBFCs also provide their borrowers with an online eligibility calculator to evaluate the unsecured personal loan eligibility criteria beforehand.
So, getting an immediate personal loan online with instant approval within 60 seconds and fastest disbursal is a reality now. An additional benefit is that if you are an existing consumer of the lender, the loan disbursement process will be paperless and hassle-free.
How much can you borrow while availing the loan online?
Financial institutions offer a substantial loan amount that can range up to Rs. 25 Lakh fitting all your expenses. So, renovate your home, pay unexpected medical bills, go for a dream vacation or consolidate all your debts with the instant disbursal of such huge amount.
Some more features and benefits:
- Easy repayment schemes
Lenders also provide convenient repayment scheme. Once the money is disbursed in the borrower’s account, he can repay the loan through post-dated cheques or Electronic Clearing Services (ECS).
In addition, a borrower gets a flexible tenure to pay off the credit that varies between 12 months and 60 months.
- Affordable interest rates
Most lenders usually come with attractive personal loan interest rates. However, if a borrower can establish his creditworthiness, lenders also keep room for further negotiation of the rate of interest.
- Flexible Loan facility
It is a new-age facility that allows the borrower to withdraw fund whenever required. He has the advantage of paying only the interest part as EMIs and that too on the utilised amount instead of the total sanctioned value.
The best benefit is that a debtor can avail funds as many times as he wants from the sanctioned amount.
Hence, with easy application and instant disbursal of personal loan online, loan seekers don’t need to go through any hassle. Take advantage of online application and get hold of instant money for any financial requirement.
8 Features of Best Personal Loans You Must Know
Stranded in the midst of a financial crisis and want money? Even though you are the best planner in the world, you cannot plan events of life – you never know when life throws a curve ball at you. Some of life’s surprises can have a major blow on your finances. You might have to set aside your finance plans due to emergency requirements.
All of us have been there – lack of immediate funds to meet sudden needs. From unplanned purchases to medical emergencies to repairs to urgent trips, you might need cash anytime.
What can we do meet the cash crunch?
Well, personal loans are not only logical but respected way of funding your emergency cash needs. Yes, respected – we all know what asking monetary help feels like, even from loved ones.
Does a personal loan sound your saviour? But wait, you cannot jump onto the search button and apply for any personal loan you come across. Many companies advertise their loan as the best personal loan in the market which they are not. You must take a little time to study some of the salient features that a best personal loan must have.
Before we get into all the important characteristics of best personal loans, let’s understand what personal loan is?
Personal loans are a type of unsecured loans designed to meet your personal needs grated by a banking institution, financial company or individual.
Here are some of the most crucial features of the best personal loan:
One of the most important features of a best personal loan is its flexibility. Personal loans, unlike home or car loans, do not impose any limitations on the use of loan amount for a specific use. You can use your loan amount for any personal use you want. From travel to buying gadgets, the money can be used to meet any expense of personal nature.
Disbursement is Quick
Getting a pre-approval for your personal loan must be quick. Generally, a best personal loan provider will check your credit score and eligibility. If you meet all the necessary criteria, the loan is disbursed within 24 to 72 hours, depending on your loan provider. A good personal loan offers instant online loan approval.
The Less Document, The Better
Usually, all personal loans have minimal document requirement. But best personal loans accelerate the process by further limiting the number of documents needed for approval. A good loan provider allows you to apply online by scanning your documents within minutes ensuring you need the help when it is needed.
Minimal Eligibility & Paperwork
Best personal loans have a simple and flexible eligibility criterion with minimal paperwork. Mostly, you need to be more than 18 years of age with Indian citizenship and a stable source of income. The paperwork is minimal which makes the whole procedure swift.
It is quite obvious to be confused in your very first time of applying for personal loan. A good personal loan has a robust customer care department to provide you with all the assistance you might need.
The best personal loans have convenient repaying options. You can have the choice to repay through various repayment options such as online payments, cheques, etc. You can select a repayment tenure that suits you the most. Long repayment tenures will have lower monthly EMIs and vice-versa.
Personal loan interest rates are one of the most attractive things about them making them affordable to all. The EMI remains fixed throughout the entire tenure of the loan. So, you don’t have to worry about interest rate fluctuations like with other loans.
Calculating EMIs can be extremely cumbersome. But when you work with the best personal loan provider, they willallow you to calculate EMI easily. Mostly, on their website. You will get a clear picture of monthly EMIs based on your tenure, loan amount and personal loan interest rate.
A good personal loan also offers tax benefits. It not only gives you the financial support you need but also offers tax benefits. You can claim a deduction as per Income Tax Actif the loan is used for construction or renovation of the home. The maximum amount specified undersection 24B is Rs. 2 lakhs.
The best personal loan requires no collateral. You have to be eligible for the personal loan and have mandatory documents. Thus, your assets are safe in case of non-payment or other such circumstances. Now, that you know all the features of the best personal loan it’s time to get one!