Personal Loans – Alternatives to Personal Loans 1
There are various alternatives available to personal loans. Before applying for the personal loan, you should make a comparison between the various options available to find out the best option that suits your requirements. There are secured as well as unsecured options and the sanction time also varies from one type of loan to other.
Credit card cash withdrawal – It is related to making the cash withdrawals through your credit card from the ATM. It is a type of Unsecured Loan. The sanction time in this case is immediate as you have already received a pre determined credit limit. The tenure of loan is determined by user and the interest Rate ranges from 36%-45%. There are no processing charges and the loan eligibility criterion is based on your monthly income. It is used in the times of emergency cash requirements where you can repay the amount at the earliest.
Loan against Security/Gold – In this case, you can take a personal loan for your personal usage and you need not have any security or guarantor. It is taken as a line of credit or as a one-time loan based on the valuation of your fixed deposit, shares, LIC policy or gold. It is a type of secured loan and the sanction time is 7 working days and the tenure of loan is from 03 -60 months. The interest rate varies from 10.5%- 20%. The processing charges are low and the loan eligibility criteria is based on your monthly income as well as the value of security or gold being kept as collateral. The amount of loan is typically given up to 50% of the value of the security. It is used in time when you want to use a short term loan at the cheapest cost.
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