With the changing economical conditions, countries central authority regulated bank interest rates to keep a hold on the cash flow. As changes made in interest rates on bank deposits and loans directly impacted the financial health of the residents.
Looking at the current market situation and recent trend of interest rates now people are forced to look for some alternative which make them get loans at relatively lower interest rates. So lets have a look at some of these alternatives which you can opt to get loans as lower interest rates:-
Family Or Friends
One of the oldest way to get loan is either from your family members or from your friends. Trust is one important factor which binds family and friends together and let them help each other in their needs. So to get some kind of monetary help from your near and dear once is one of the way which let you get rid from the heavy interest rate and other boundations which comes along with the loan money.
Your Company Employer
The company where you work in is an another way to get loan at a reasonable interest rate as compare to other lenders. These days employees can get good loan offers from their company employers as well.
Loan Against Property
Loan against property is another way to get loan at lower interest rate. Lender keeps property papers as security against the loan which allows them to offer better interest rates as compare to other forms of loans.
Loan Against Public Provident Fund (PPF)
This is one of the convenient way of loan at reasonable rate. As loan facility on PPF is available from the third financial year from the financial year in which your PPF account opened (excluding the year of deposit). The allowed loan limit is 25% of the total amount deposited in the PPF account at the end of second year immediately preceding the year in which loan is applied for.
Borrower can repay the amount of loan either in lump sum or in convenient installments. Interest on loan is charged at a rate of 1% if it is repaid within 3 years else the interest at the rate of 6% is charged on the outstanding loan balance.
Borrower can even apply for another loan before the end of 6th financial year only if the first loan amount is fully repaid.
Loan Against Fixed Deposit
For a short term loan need one can also pledge his fixed deposit to get loan upto 100% of fixed deposit value at lower interest rate. This type of loans are secured against the FD, so bank offers better interest rates as compare to other loan types.
Loan Against Securities
Taking loan against shares and mutual funds offers better interest rates as compare to other loan types. Any resident Indian can pledge his securities like shares and mutual funds to get loan at lower interest rates.
Loan Against LIC Insurance Policy
One can also get loan against his LIC insurance policy upto 60% of the maturity value of the policy. Borrower can pledge his LIC insurance policy to a lender as security to get loan at lower interest rate as compare to other loan types.
Gold loan is one of the most attractive loan type as financial institutions offers quick loans at reasonable interest rates. Lender keeps gold as collateral against the amount of loan and offers 70 to 90% of the value of gold in the form of loan to the borrower at lower interest rates as compare to other loan types.
Loan Against National Saving Certificate (NSC)
Borrower can also get loan against national saving certificate (NSC) upto 95% of the value of the NSC. Lender takes NSC in the form of security to lend money at lower interest rate as compare to other loan types.