Need Urgent Money? 5 Ways to Arrange Money at Low Cost

When you need money immediately, you often wonder where to find the cheapest yet quicker ways to arrange for it. The traditional method of borrowing money from family members or friends has come a long way in current years. Nowadays, access to online loans and other available options have made it still more convenient for people than borrowing money from acquaintances. However, there are still other options available to those who need cash in a hurry at lower interest rates.

Let’s explore a few.

Payday Loans

A payday loan is a loan that can be availed for the time being till your upcoming salary gets credited to your account. These short-term loans are outstanding when you need urgent short-term funds for specific needs. This loan is fully deducted along with interest on the subsequent salary day of the borrower.

Taking Personal Loans Online

Personal loans are another quick and easy way to arrange money at a low cost. Many lenders provide instant personal loan approval at reasonable rates. Calculate your monthly EMI through the personal loan EMI calculator available at your lender’s digital online portal to understand if the EMI suits you.

Almost all lenders in India offer personal loans. They facilitate the online application process for quicker approval and disbursal. Compared to salary loans, the borrower gets favourable terms on loan and is entirely transparent, with pre-determined processing fees and other charges. If you need a higher amount with a long repayment tenure, then personal loans are more affordable.

Salary Overdraft

Salary overdraft is an instant credit facility where banks offer their salary account holders to withdraw over and above the bank balance when in need. You can borrow overdraft against salary for any personal use by salaried employees. One can withdraw up to a limit of 75% of the average net salary for the last three consecutive months with a max limit of 3 lakhs per person. The interest is levied based on the tenure of repayment and the amount withdrawn.

Loans Against FD

Many banks offer ‘loans against fixed deposit’. If you have a fixed deposit with any bank, it allows you to take a loan against a fixed deposit. Most banks allow up to 85 to 90 % of the fixed deposit as a loan. It lets you avail of instant cash without liquidating your fixed deposits. The overdraft doesn’t have prepayment charges, and the interest rate ranges from 1% or above the related time deposit rate. Many banks and NBFC offer no prepayment penalties, zero processing charges for such loans, and instant. However, one can easily avail of this loan even if they have a low credit score, do not meet income eligibility, or do not have any other assets as collateral. You can avail of loans against recurring deposits and cash certificates if one does not have a fixed deposit.

Mutual Fund Loan

Loans against mutual funds can be availed using mutual funds as collateral for the loan. The bank or Non-Banking Financial Companies (NBFC) will hold the mutual find units as security until you repay the loan. These are good if you are facing a short-term cash crunch. That way, you don’t have to sell your mutual fund units, and your loan is availed in the form of an overdraft (OD). In such plans, one needs to pay the interest according to the loan amount used and not on the entire amount of loan availed. The interest rates are usually around 10 to 11 % on mutual funds,

Covid Loan

Covid loans are cheaper comparatively unless one doesn’t go overboard. These personal loans are availed explicitly for treating oneself or family against the virus. This law came to effect on April 1st, 2021, making it a solace for the customers who needed money to meet covid-19 related medical expenses. This loan can be availed by salaried, non-salaried or pensioners equally. Additionally, these loans do not require any collateral to avail themselves.

There are additional options like loans against a gold insurance policy, residential or commercial property, and more. Such loans are secure against collaterals, and they come with comparatively low-interest rates than a personal loan. Look for a banker or an NBFC who does not penalize you for prepayment or foreclosure so that you get the flexibility to pay once you get the funds.

If you are looking for lenders offering the cheapest personal loan interest rates, then Fullerton India is the right choice for you. From Fullerton, India offers affordable personal loan interest rates starting from 11.99%. We are an established NBFC awarded and recognized for high ethical standards committed to serving our customers to the best. So, apply for an instant personal loan if you are looking for instant hassle-free funds to avail the host of benefits that it brings with itself.

Also read “Availing personal loan from the best banks

Leave a Reply

Your email address will not be published.

2 × three =