Personal Loans – Alternatives to Personal Loans 2

Car Refinance – This type of loan is taken as a line of credit or as a one-time loan that is based on the valuation of your car. It is type of secured loan and the sanction time is 7 working days. The tenure of loan varies from 03 to 60 months. The interest rate of the loan is from 15% to 20%. The processing charges are high and the loan eligibility criteria is based on your monthly income as well as the value of car that is being kept as collateral. It is typically given up to 60% to 80% of the value of the car. It is used as a short term loan available at the cheapest cost.

Personal loan – It refers to the personal loan taken by individual for personal usage and it does not require any security or guarantor for that. It is a type of unsecured loan. The sanction time is usually 5 Working days and the tenure of loan varies from 12 to 84 Months. The interest rate ranges from 12% to 22%. The processing charges for this personal loan are high and the loan eligibility criterion is based on your monthly income. It is used when you need cash for the medium term.

Loan against Property (LAP) – This type of loan is taken by mortgaging the house property. It is a secured loan and the sanction time is 10 to 15 Working days. The tenure of loan ranges from 36 to 120 Months. The interest rate varies from 12% to 18%. The processing charges are lowest and the loan eligibility criteria is based on your monthly income as well as the value of property that is being kept as collateral. The loan is given up to 60% to 80% of the property value. It is taken for a long term period.

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