Money is dynamic in nature. Different people need
different amount of money for diferent reasons. Lot of times it is
possible that money is not at our disposal when we need them for a
purpose. The money may be invested, blocked or not available. As
everybody knows Money can be borrowed for a cost from various sources.
However, the cost is diferent for diferent methods and someone not
selecting the right method may end up paying a lot more
Overdraft against Fixed Deposit :
Can be available as a loan upto the 90% value of
your existing fixed depost with th same bank.
the advantage is that you don't need to break
your current investment plan. The interest
charged will also be only for the days for which
the money is used and only on the amount
withdrawn.
Loan
Against Shares :
If you have stocks in your demat account, which
you do not wish to sell for some time, you can
pledge them with a finance company who will give
40-50% overdraft facility over the total value
of select shares. The shares can be unpledged in
one business day whenever required to be sold
Loan against Securities :
Your investment with other instruments like Life
Insurance, Mutual Fund, Public Provident Fund,
whcih you do not wish to liquidate right now can
be pledged with a finance company. The company
will sanction an Overdraft based on the current
valuation of the instrument
Cash on Credit Card :
Available in seconds without any paperwork from
any ATM Machine. High charges and interest rates
are disadvantages for this kind of borrowed
money. If you have made some expenses on Credit
Card, and then borrowed money. Mind you, when
you payback, first the dues due to expenses made
previously will be subscribed, making your
interest payment even higher.
Housing Loan :
May be used by an individual for buying a house.
this loan is available for a very low interest
rate around 10.25 % and for a very long duration
making the installment amount very low.
Loan agains property :
Your existing property like house, office, land
can be hypothecated with a bank, which will
value the property and sanction an overdraft
facility accordingly.
Loan for Furniture/Renovation :
Loans are available by some finance companies
for interior decoration of your homes.
Loan for appliances :
Do you want to buy a computer or a microwave or
a home theater or whatever for your home or
office ? Don;t worry about payments, all the
products come with ready financing.
Loan for Office Premises :
A business can apply for buying a property to
Banks or Finance Companies
/
Auto Loan :
You can have finane for two wheler, four wheler
and it is Very Easily Available. Available to
Individuals as well as firms.
Personal Loan :
Easily available to individuals. Should not be
preferable as the interest rates are very high.
Will attract heavy penalty if installments are
not paid on time.
Loans for Marriage : Special occasion loans have
started selling in India
Shopping Loans : Innovative concept, started by
some finance companies who are also into retail
business.
Loan for appliances : Do you want to buy a
computer or a microwave or a home theater or
whatever for your home or office ? Don;t worry
about payments, all the products come with ready
financing
Project Loan :
Available for complete business project, for
setting up new business, expansions or
modernisation. Lot of paper work required.
Preferable to appointing a consultant or a
chartered accountant preferable. Time consuming
process.
