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
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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.
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