Many of us would think of taking personal loan as the easiest and quickest way to get cash for solving the financial crisis. But there are some other alternatives apart from personal loan which can be used. With the interest rates on personal loan, it is quite essential to be aware of the alternative available. These will help you when you are in real need of money and when there is no enough time to wait until the loan is approved and money disbursed.
Loan against Shares:
If you have share of some very reputed companies, then based on this banks will be ready to lend loan. The only drawback of this is , not all company shares are accepted for this type of loans, only very reputed and highly credit worthy company shares are considered. The loan on these depends on the value of the shares and number of shares the applicant holds. If the market is very volatile, banks will hesitate to offer this type of loans.
Loan against Fixed Deposits:

Use Your Fixed Deposit as a Collateral to Secure a Loan
This is considered as the quickest way to get loan. If you have a fixed deposit in any bank, make use of this money to take loan. Bank will be comfortable to lend loan on the existing deposit they have plus the rate of interest on such type of loans are very low and affordable. This loan needs very less documentation plus up to 80% of the fixed deposit value, immediate loan will be approved by banks.
Loan against Public Provident Fund (PPF):
If you are looking for loans up to 2 years of time, then this option is available. This loan can be taken by the borrower even without breaking the Public Provident Fund. Once the first loan is completely repaid, you are allowed to taken next loan. However, it is very important to furnish the details of why loan is being taken. Loans will be granted only for emergency situations like wedding, house constructions and so on.
Loan against Life Insurance Policies:
Loans against Life insurances have very low interest rates and there are many alternatives available to repay the loan. The value of policy is used to determine the loan amount. This loan can be repaid during the term of the policy.
Gold Loan:

Use Your Gold Jewelry to get a Gold Loan!
Though this was one of most common way to arrange money due financial crisis among rural and semi-urban locations, this has now become a very popular source of immediate even in urban areas. Gold loan will help in having quick liquidity of the asset. This is also an alternative of selling the asset. For this type of loans, there is no processing fees or prepayment charges. The borrowers have to just pay the interest for the loan amount until the whole loan amount is repaid as a bulk payment. This works similar to a secured loan where the security in this case is gold.
Details of different alternatives for Personal Loan:
Factor | Loan against Fixed Deposit | Gold Loan | Loan against Property | Loan against Shares | Loan against Life Insurance | Loan against PPF |
Eligibility | Fixed deposit should be for at least a year | Available for just gold components. Not valid for other stones, metal or platinum. | No mortgage issues. Property should not be under ownership disputes. Minimum income from the land should be Rs 1 lakh | Only individuals are eligible.. Loan is granted only on the basis of bank’s approved list of shares | They are sanctioned only on endowment plans, after completion of 3 years of the entire premium | It is available from the 3rd up to 6th year and up to 25% of balance at the end of 2nd year |
Documents | Fixed Deposit Receipt | Proofs for identity and address of the individual | Proof of residence, identity, age, income, property documents and signature | Proofs of address, identity and signature. Power of attorney, transfer pledges and forms | Actual documents of the policy | PPF passbook |
Rates of Interest | 1% or 2% more than the rate on the fixed deposit | 10% to 17%; Higher in the case of gold loans from NBFCs | 13% to 16% | 13% to 16% | 8% to 9% | 2% above the rate of interest for PPF |
Processing Time | 2 or 3 days | 1 working day | 10 or 15 days depending on the lender. | 7 to 15 working days | 2 to 3 days | 1 or 2 working days |
Make use of this information to pick the best and quick option through which you can take loan instead of depending on a personal loan.
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