Bangalore: Every day we come across some or the other financial crisis in our daily lives. In such cases, either we tend to take loans or turn to friends and relatives for a soft loan. But with rising consumer spending and the loans getting expensive day by day, even if we want to, we can’t take loan at times.

Unfortunately, there are some options available in the market which we don’t consider, like loan against securities like property, assets, shares, and gold. These kinds of loans make complete sense moneywise, but still these asset-backed loans schemes are in much of a limelight. Nikhil Walavalkar of ET Bureau has brought out the following facts about such asset-backed loans.

Why You Should Consider a Loan Against Securities (LAS)?

The interest rate of a personal loan costs from 16 to 24 percent, whereas these loans with an interest rate of 12 to 14 percent are much cheaper considerably.

"Each one of these asset-backed loan has its own advantages and disadvantages. You have to choose one of them only after analyzing your needs in detail," says Satish Mehta, Co Founder and Director, Credexpert, a credit counselling entity, as quoted by ET.