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.
Basic Functioning And Benefits Of A Smoke Alarm
With the advancement of other technologies, fire and smoke alarms are also being made advanced with latest smart detectors.Installing smoke alarms in your house is one of the easiest and most effective ways to protect yourself and your family from the flames. Unfortunately, many people are not taking advantage of the protection provided by the smoke alarms.
Installing properly functional fire and smoke alarm is a must have for the safety of a household.
How Does Smoke Alarm Function
Smoke alarms, also called smoke detectors, work by constantly checking the air for traces of the gasses and fire-producing smoke particles. There are two types of smoke alarms-photoelectric alarms and ionization alarms.
- Ionization warnings are less costly, so they more readily detect sudden, burning fires.
- Photoelectric detectors are a little bit more expensive, so they better detect sluggish, smoldering fires. Photoelectric alarms are also less sensitive to shower steam and cooking food so they are the best choice for alarms to be installed in the vicinity of kitchens or bathrooms.
Some smoke alarms are powered by standard household cabling. This type of smoke alarm should have a back-up battery, as fires can occur when the normal electrical power does not work.
Other smoke alarms are battery powered. No matter what type of alarm you have, it’s important that you keep it properly.
The Benefits Of Installing Smoke Alarm In Your House
Around 12 out of 14 houses in Australianow have smoke alarms installed. However, nearly half of all home fires do occur in homes without working smoke alarms. Without working smoke alarms, over fifty per cent of fire deaths occur in homes. Obviously, in a small percentage of homes most of the people who are killed by residential fires die-those without smoke alarms.
- Smoke alarms can warn you of a fire when you’re asleep, busy or in another part of the house where the fire is from.
- They give you extra warning time when you’re awake, and they’ll wake you up when a fire occurs while you’re asleep.
- Most people think that if a fire happens in their house they will smell smoke and wake up, but that is not true.
- Many fires produce very toxic, odourless gasses. Those gasses can overcome people who are asleep, without ever waking up. Smoke alarms provide life-saving warnings to let you get out of the house before fire or smoke traps you.
- Smoke alarms are cheap. Residential smoke alarms powered by batteries are available for as low as $40AUD.
Regular Testing Of A Smoke Alarm
It is very important to properly test a smoke alarm. Smoke alarms are delicate electronic devices which operate year after year around the clock. Some of them break up, sooner or later. You should test the smoke alarms at home at least once a month, or more frequently if recommended by the manufacturer’s directions.When you purchase premium quality smoke alarm from leading online wholesaler in Australia, you are assured of top-notch product at affordable rates.