Money Sources to Tap Before Taking a Personal loan
Pre-approved personal loans are designed to provide you quick and hassle-free access to cash to meet emergencies and unplanned expenses. However, since personal loans are unsecured loans, they also tend to come at a slightly higher rate of interest. This is because unlike a secured loan such as a home or a car loan, there is no underlying asset guaranteeing the security of a personal loan. For this reason, it is advisable that you first exhaust all other sources of funding before turning towards a personal loan. Here are 3 sources of funds you can tap before applying for a personal loan.
1 Your Emergency Savings Funds
When we meticulously put away small amounts to save up for that rainy day, it can become a habit of inertia to never touch that emergency fund. After all, it is never easy to get yourself to break the piggy bank in which you have saved up each penny over so many years. However, one needs to realize that the whole point of building an emergency fund is to use it someday. Additionally, you can also reach out to your family and close friends in your hour of need.
2 Loan Against Property
If you own property such as a house, a shop, or agricultural land, you can avail of a loan against any of these assets. Unlike personal loans, these Loans Against Property (LAP) are secured loans and hence come at lower interest rates compared to other loans. One can avail of a loan of up to 60% of the value of the underlying property that is being used as collateral.
3 Top-up loan
This is an ideal option If you have already availed of a personal loan and are in need of extra funds to meet your obligations. Instead of applying for a fresh personal loan, it is cheaper and more convenient to opt for a top-up loan to your existing personal loan. The advantage of a top-up loan is that banks offer attractive rates on top-up loans. Moreover, since you have already availed of a loan with the bank, the documentation and processing required for the top-up loan are minimal. Finserv MARKETS offers instant top-up loans at attractive rates that can help you meet your existing financial obligations.
Conclusion
Pre-approved personal loans are a quick and convenient way of meeting unplanned expenses. However, it is always advisable that you exhaust all other sources of funds before turning to personal loans. Your own emergency funds, your family, and any immovable assets that you own are all valuable sources for raising funds. In case you already have a personal loan running, you may avail of a top-up loan. If, however, none of these means suffice to meet your exigency, Finserv MARKETS offers instant pre-approved personal loans to meet all your needs.
