3. Loans against fixed deposits
You may have opened a fixed deposit account to save money for your retirement days. But if an urgent cash requirement arises, then breaking your fixed deposit to meet the need would not a wise decision. Instead it is more advisable to take loan against the fixed deposit. Usually, banks would lend you up to 75 percent to 85 percent of your deposit amount as loans. And you would be charged with 1 percent to 2 percent higher interest on loan than what you earn over your fixed deposit.
4. Loans against property (LAP)
You may think of selling your immovable properties like home, plot of land, office space to drive some cash for urgent financial needs. But then finding a right buyer would itself will take a long time. So get a banker to sanction you loans in just 7 to 10 days. Any Banker would easily grant you loans up to 50 percent to 60 percent of the market value of your property. And the interest rates charged on these loans is from 12 to 16 percent. Bank may undervalue your property while granting loans on them so remember to get third party valuation done too. And it is recommended to take loans against property only if your cash requirements are huge.
Also Check Out: 3 Facts to Consider Before Repaying Loans
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