4 Ways Your Savings Can Help You Secure A Loan

HDFC Bank

A financial emergency can hit anytime. Usually, people take the personal loan route to fund their money requirements. There is a notion that it is difficult to get a loan granted at a short notice. This may not be true at all times. There are several financial options against which a loan can be secured even in a shorter duration. Today, getting a loan sanctioned is not a hassle at all. There are several financial companies and easy loan provider companies in India who can be consulted for a speedy loan reception. We have listed down 5 ways one can use savings to help procure a loan. Let’s have a look.

Loan Against Fixed Deposit

Most banks offer a loan against FD. Fixed Deposits can be used as a collateral for loans one can get at lower rates. They are usually gauged at a few percentages higher than the fixed deposit. Usually, banks increase up to 90% of the fixed deposit that would be held in a loan.

Loan Against Residential Property

Securing a loan against your house is a popular option as its benefits are appreciable. One can receive loans by mortgaging residential property with the bank.  The loan is provided given as a part of the certain percentage of the market value of one’s property. Usually, 50-60% is the percentage banks lend as the value of the property. Loans sanctioned through the property is secured because the property is kept as collateral with the bank.

Loan Against Gold

Getting a loan against gold is also one of the popular ways due to the gradual mushrooming of gold loan companies. As per the RBI guidelines, the maximum loan to value percentage is 75%. As loan against gold is backed by physical gold, banks too provide it at ease. One of the benefits of loan against gold is the smaller interest fees. The interest rates are generally in the range of 13 to 14% and are processed faster.

Loan Against Insurance Policy

Loans are provided by the insurance company or any NBFC or your preferred bank. One can secure a loan against his/her life insurance policy and endowment policy. The maximum loan amount sanctioned is 85%-90% of the collateral value. The interest charged on the loan ranges between 9%-10% per annum.

Financial constraints can strike at any given time to anybody. Today, with the help of many loan-providing companies and banks, there are a lot of more options to receive a loan using one's savings channels within a short period. Always take a well-informed decision when it comes to applying for loans. Looking to get a loan? Apply with Loanz, an expert online consultant where applying for loans is made easy with an array of services.