Monday, July 23, 2012

Utilize fixed deposits for short term financing


Are you in immediate need of funds and wondering what all options you have? There are a lot of  options available, one can consider personal loans or loans against national savings certificate, loans against insurance policy or loans against fixed deposits.

The loan against FD being a secured loan is offered at less interest rate viz-a-viz a personal loan. Banks offer as much as 90% of loans of the value of the fixed deposit. The interest charged is at around 2-2.5% above base rate against 3-3.5% and above for personal loans.

Therefore in case of urgency it is advised to pledge your fixed deposits for taking a loan. Another benefit of taking such a loan is that in case of default, the bank would recover the amount from the fixed deposit and the borrower and his family would not be under the pressure of repayment.  

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