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7 Comments
Let us look at the various loan products to answer the question.
Particulars Personal Loan Credit card cash advance Loan against property (LAP) Loan against security Gold loans Meaning This is an unsecured loan taken for personal use. This is an unsecured loan taken for personal use. Secured loan taken by mortgaging the house It is a secured loan taken on securities which include shares, fixed deposits, insurance policies etc It is a secured loan taken on gold Tenure 1 – 5 years Can be paid off monthly Maximum of 15 years 1 year 3 -12 months Interest Range 14%-23% 24%-36% 12%-16.5% 12%-15% 11.5%-15% The interest rate on personal loan is high and is second only credit card cash advance. In order to avoid paying such high interest, you can consider loan against security or gold loans. The rate of interest is lower than personal loans and also they may just fit the tenure for which you’re looking for the loan. Loan against property may have to be eliminated by virtue of the fact that you do not need a very large sum of money and besides the loan is for a long tenure.
So look for a personal loan only under the following circumstances
- If you do not have a security against which a loan can be taken. Remember there is a big list of security on which a loan can be sort. So go through your investments to see if you could get a loan on it.
- You want a loan very quickly and you need quick processing. In that case the fastest is credit card cash advance. But that is way too costly. So it is better to take a personal loan in that case.
- If you’re sure that your cash inflows will be sufficient enough to pay off the personal loan in time. Else the costs will accumulate on account of the penalty levied.
Published on May 21, 2010 · Filed under: Personal Loan Guides; Tagged as: Secured loan, unsecured loan
When Should You Take A Personal Loan?
7 Responses to “When Should You Take A Personal Loan?”
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ajayvinodh said on July 22nd, 2010 at 4:15 am
hello sir,
what was the procedure for getting personal loan & property loan
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shwetabh said on July 22nd, 2010 at 5:33 am
Hello Mr. Ajay,
For personal loan eligibility: visit here
For home loan eligibility: visit here
Rupeetalk.com
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pankaj said on June 18th, 2011 at 5:16 am
hi, Sir,
i have need to some personal loan 100000-200000 i am working i a tour and travel company . my salary monthly 18000 per month in hand
so please advaice me and tell me consern person
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Mathan said on July 21st, 2011 at 2:10 pm
i am working in bahrain … can u arrange for personal loan..
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Mathan said on July 21st, 2011 at 2:12 pm
my salary 25k per month
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Rajesh kumar said on January 18th, 2012 at 11:11 am
Required personal loan salary package Rs-240000/- per year
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raveender reddy said on February 10th, 2012 at 11:26 am
sir am raveender reddy i want to start a dairy farm plz help me by giving loan 9848465076
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