7 Best Alternatives To Personal Loans
7. Loan against Securities
Loans that are availed from banks by pledging securities such as equity shares, government relief bonds, RBI bonds, life insurance policies, mutual fund units, UTI bonds, gold deposit certificates, gold ETFs, kisan vikas patra and national savings certificates are known as loans against securities. The securities which are pledged for availing loans are to be availed must be owned either by the borrower or by his close relatives.
By pledging the securities, a borrower can take care of their urgent cash needs while preserving their investments as the lender will only block the borrower’s shares. It means that even after pledging the securities, borrowers continue to enjoy all shareholder benefits like dividends and bonuses.
These alternatives are some great ways to avoid taking a personal loan not only in terms of interest rates but also in terms of the time taken to fulfill your financial need.
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