If you have a fixed deposit and need an urgent loan, it's best to take a loan against your fixed deposit. This is because the loan would come against an interest rate of just one per cent over and above your fixed deposit.
Why Loans Against Fixed Deposit is Beneficial?
If you take a personal loan the interest rate could be as high as 14-24 per cent depending on various parameters. On the other hand if you take a loan against a fixed deposit it could be just 1 per cent more than the contracted rate on the deposit. You may end-up saving a huge sum of money by taking a loan against a fixed deposit.
Secondly, you can get a loan without a problem, which makes them getting very easy as compared to a personal loan.
The only hiccup is that one must have adequate deposits to help in getting the financial support when needed.
Try and Use Personal Loans as The Last Resort?
Try and use personal loans as a last resort as they come with very high interest rates. In fact, along with credit card interest rates they are the most expensive interest rates around.