Today, a personal loan has emerged as the top choice for providing extra money to meet financial emergencies for salaried and self-employed individuals. This is because you can get an instant loan online without having to worry about long processing times or, most importantly, collateral. The interest rate is also much more affordable (starting from 10.99% per annum) than high-interest credit cards. But it's also unfair to assume that your application for a personal loan will get approved just because it's so easily accessible. Approval for your instant loan online depends on your credit score, monthly income, and repayment capacity. If your application is rejected (for whatever reason), what next? You can get quick loans using financial instruments. Here are three such financial tools you can use to get an instant loan online.
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1. Loan Against Property
A loan against property is a secured loan where you avail the funds against a residential or commercial property that your lender keeps as collateral. All you need to ensure is that the property is in your name and free from any legal disputes. The loan-to-value (LTV) ratio will range from 75%-90% based on your lender. The repayment tenure can go up to 20 years, which again depends on your lender. You can give up a self-occupied/rented residential property (house, apartment) or commercial property (office building, shop) as collateral. There is no restriction on the end usage of the loan amount, and you can use it to meet various financial needs.
2. Loan Against Gold
If you don't have any property you can mortgage, or even if you don't want to, you can always opt for an instant loan online against gold! In this case, you can get a secured loan against your gold jewellery. This is a pretty attractive solution if you're running out of options to get emergency funds. Every Indian family has some gold ornaments (which they purchase as an investment in the first place) that they use to fund their financial needs. These loans come with simple documentation and speedy disbursal. Depending on your lender, you can get an instant loan online in as little as 45 minutes! The EMIs are flexible too, and you can adjust your repayment tenure based on your repayment capacity. Just be aware that most lenders have a minimum loan amount when it comes to gold loans.
3. Loan Against Fixed Deposit
A loan against fixed deposit (popularly called a 'loan against FD') is a type of loan where you avail of an instant loan online after giving your fixed deposit as security. This way, you don't have to worry about breaking/closing your fixed deposit prematurely. The loan amount you get depends upon the FD amount and your lender. It usually ranges from 75%-90% of the fixed deposit amount. However, there are a few caveats here as well. A fixed deposit in the name of a minor doesn't qualify for such a loan. The same applies to a tax-saver fixed deposit as well. If you can't repay your loan in time, your lender will quickly recoup his losses using your fixed deposit amount.
Everybody would like to avail of instant loans online to meet various financial emergencies. However, approval on a personal loan isn't always assured, even for all its convenience and speed. You can always check out the options mentioned above. If you need an instant loan online, KreditBee is your best bet. We offer loans up to ₹2 Lakhs with minimal documentation and a paperless process. For more details, please write to us at [email protected]!