Secured Loans Secured loans are those where you have to pledge an asset as collateral for the money you borrow from the lender. That way, if you are unable to repay the loan, the lender still has somethingmeans money back. The interest rate on secured loans tends to be lower compared to unsecured loans.
Home Loan – If you are looking to buy a home, applying for a home loan can go a long way.It offers financial support and helps you buy the house for you and your loved ones. These loans usually have longer terms (20 to 30 years). The rates offered by some of the major banks in India. Your creditworthiness will be checked before the lender approves the loan application. If you have good credit, chances are you'll benefit from lower interest rates on your home loan.Mortgage loans are mainly taken out for the purchase of new houses. However, these loans can also be used for home renovations, home extensions, land purchases, houses under construction, etc.
Loan Against Property (LAP) A loan against property is one of the most common forms of a secured loan. You can mortgage any residential, commercial or industrial property to have the necessary funds. The loan amount paid out iscorresponds to a certain percentage of the value of the property and varies between lenders. While some lenders may offer as much as 50-60% of the property's value, others may offer as much as almost 80%. A home equity loan helps you unlock the idle value of your assets and can be used for personal life goals like higher education for children or marriage.Businesses use a loan against the property for business expansion, RandD, and product development, among other things.
Loans against insurance policies you don't qualify for that. Credit can only be drawn on policies such as endowment insurance and money back policies that have an expiry value. Therefore, you cannot take out a loan against term life insurance as there are no term benefits. .In addition, loans cannot be used against unit-linked plans as the returns are not fixed and depend on themarket performance. It is important to note that you can only opt for a loan with endowment insurance and buyback insurance once they have reached a surrender value. These policies only acquire surrender value after three years of uninterrupted premium payments.
Loan Against Fixed Deposits:This is a type of loan where your fixed deposit is the security. For example, if you have a fixed deposit of Rs.10 lakh in the bank, you can get a loan of up to Rs.8 lakh. However, the interest rate on this type of loan is usually higher than the fixed deposit rate.Loans Against Mutual Funds and Stocks: Certain lenders provide loans against the value of your mutual fund and the value of the stock. However, you cannot borrow large amounts with these types of loans.
Gold Loan: A gold loan can be used to raise cash to meet planned or urgent financial needs like business expansion, education, medical emergencies, agricultural expenses, etc.A loan against gold is a secured loan where gold is pledged as collateral or pledge against a loan amount equal to the market value per gram of the gold on the date the gold is pledged. Any other metals, gems or stones. that are in the jewelry are not included in the valuation of the gold loan.
No comments:
Post a Comment