Denied aditya birla personal loan? Here are other types of loan you can get

If your request for a personal loan has been rejected, can you still get a loan for whatever reason you need the money? Yes. Continue reading to learn more about the other types of loan you could apply for.

Loan against gold

If you have a significant amount of gold but don’t have pay stubs on hand, you might want to consider applying for gold loans rather than a personal loan online. A gold loan can disburse money quickly after the loan application is submitted, whereas a aditya birla personal loan  may take 2–7 days to process. Gold loans have quicker disbursement times and lower interest rates that start at 7% p.a. when compared to personal loans, which typically have interest rates that range from 10 to 24 p.a. The amount of the gold loan, however, is determined by the value of the gold that was deposited as security, so the borrower should be aware of this. Existing borrowers should be aware that they can always try to transfer their gold loan if they are qualified or are offered a lower rate by another lender, similar to the personal loan balance transfer option. Because the maximum repayment term for a gold loan is only three years, it is advantageous for people who are confident that they will be able to pay the EMI and principal amount at maturity with their current income.

A loan secured by property

There are no restrictions on how the loan proceeds may be used in the future, enabling a loan with a quicker disbursal period. This advantage can be had from personal loans or loans with collateral. It typically takes 2 to 7 days to get your money after submitting an online personal loan application. However, processing times for loans secured by real estate can vary from one to three weeks due to the time-consuming process of verifying documents related to the property. A piece of land that can be used for industrial, residential, or commercial purposes serves as security for a loan backed by real estate. Because the loan is secured by the asset, it typically has a lower interest rate than a aditya birla personal loan (9% to 24%), and you can borrow up to 70% of the property’s market value. Because the loan tenure can be up to 15 years, the LAP loan type is better for people who require a sizable loan, a longer tenure, and smaller EMI options. Similar to how balance transfers on personal loans operate, borrowers may transfer their unpaid loan balance to another lender if they can do so at a lower interest rate.

Loan secured by an FD

A 5 lakh loan secured by an FD is typically less expensive than a personal loan. You can borrow up to Rs. 35 lakh if you apply for a personal loan, but you can borrow up to 90% of the value of your fixed deposit if you apply for a loan against it.  Banks typically increase the current FD rate by about 2% when they offer loans. For instance, if you are receiving a 6% interest rate on the FD, the loan against the FD will be 8%. Even though banks typically do not charge them for loans secured by FDs, the borrower must still pay processing fees when applying for a personal loan online. In contrast to a personal loan, the borrower continues to receive interest credit on their FDs. Additionally, keep in mind that loans secured by fixed-rate debt typically do not permit balance transfers, in contrast to personal loans, which only occasionally do.

Loan backed by PPF

PPF is more than just an investment or tax-saving tool; between the third and sixth years following account opening, one may borrow money against a PPF account at just 1% interest plus the applicable PPF interest rate. Every three months, PPF interest rates are updated. A PPF loan amount of 5 lakh loan or other, will actually have an interest rate that is equal to the then-current interest rate plus 1%. Because aditya birla personal loan interest rates can range from 10% to 18%, they are more expensive than PPF loans. Even if you select the Personal loan balance Transfer option, there is a small chance that you will find a lender willing to extend you a loan at an interest rate lower than the PPF. Even if you have a good credit history, applying for a loan against PPF, which you can only do once a year, does not have the same flexibility as applying for a personal loan.

A loan against life insurance as security

Depending on the insurer, the maximum loans against policies may vary, but most loans fall between 80% and 90% of the insurance’s surrender value. For instance, if you purchased an insurance policy for Rs 50 lakh and its surrender value is Rs 20 lakh (when you decide to terminate it voluntarily), you could easily get a loan for Rs 18-19 lakh. In contrast to the personal loan balance transfer facility, a 5 lakh loan against insurance may not contain or make this facility available to its borrowers. So it would be a good idea to inquire with your lender about this. In contrast to loans secured by insurance policies, where the interest rate is based on how many premium payments you have made, when applying for aditya birla personal loan online, the interest rate is determined by your CIBIL score, current income, and credit history. The interest rate will be lower the more premiums you have already paid. To qualify for this kind of loan, you must have a whole life insurance policy or an endowment plan with a money-back guarantee and guaranteed returns.

The lender will consider your loan request when you apply for a 5 lakh loan based on a variety of different criteria. You can determine whether you can make loan payments on time and how stable your finances are by looking at your bank statements, tax returns, CIBIL scores, and credit histories. The lender will decide how much credit you are eligible for based on these factors. The lender bases the loan amount with the aforementioned options on the collateral you provide. Because they have the option of selling the underlying collateral in the event of a default, lenders typically take a more lenient approach when evaluating loan applications when it comes to factors like credit score, income, and other factors.

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