AuthorAlisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. Archives
March 2020
|
Back to Blog
There are times when people are in desperate need of money. In such scenarios, there are only two alternatives: (1) liquidate your investment to obtain the required financial assistance, and (2) take a loan against security and procure the needed money by using your mutual fund bonds as collateral. Each of the two alternatives has its own pros and cons, but as per the experts, the latter choice is more beneficial. When you choose the first option, you take a risk and put yourself in a vulnerable position due to lack of liquid assets for future needs. However, when you apply for a loan against your mutual fund bonds, you are entitled to double benefits: you get the required financial support while preserving your asset at the same time. Having said that, the latter alternative is beneficial only when the interest payable against the loan is considerably lesser than the interest gain received from your mutual fund investment. So, your decision to take a loan against your mutual fund will be rational only if you obtain it at a low-interest rate. Doing so isn’t that difficult, you can follow the below mentioned steps and ensure a low-interest rate. Monitor your CIBIL score: Your CIBIL score, if it is in a good state, will play an important role in taking you closer to your objective and get you the loan at a competitive interest rate.
0 Comments
Read More
Back to Blog
There are times when people run into inescapable budgetary problems and are left out with only one way out - to face the problems with suitable solutions: financial loan. However, considering the fact that the nature of ‘inescapable financial issues’ may differ from one person to another, the need is for a common instrument that can be used by all, for all mentioned and untalked circumstances: something similar to a personal loan which comes with end-usage flexibility. Though personal loan can be a good alternative but considering the high-interest rate a subscriber becomes liable to pay, a cheaper choice is much more than essential. That's why loan against securities outshines others and emerges as a fitting option for the above-discussed situations. Now, having talked so much about loan against securities, it is crucial for you to know the benefits of the product before applying for the loan.
Higher loan amount The borrowing limit depends on the market value of the asset that you use as collateral for the loan. Hence, you get the added advantage to obtain a higher amount by submitting a collateral of higher value. Having said that, there’s always a maximum limit which you must check before applying. Lower interest rate The interest rate is relatively lower than other loan schemes due to the low-risk factor. The availability of security reduces the risk factor on the lender’s side, and in return, the borrower gets to avail the benefit of lower interest rate. Preserves your investment The last but most lucrative advantage of loan against securities is, the subscriber gets to avail the loan to overcome the financial crisis along with preserving their investment simultaneously. In the end, we would like to add that all investments must be made only after careful and comprehensive research to ensure maximum benefits. After all, it's your need, you know what's the best way to get out of it. Read More :- Avail Loan Against Shares to Fulfill Your All Needs |