Key Points
But it may not be a prudent decision considering the extremely high interest rate charged on credit card dues in case you do not repay the entire amount by the due date, and higher rate on personal loans, especially after the continuous hikes in interest rates over the past two years..
Moreover, before extending an unsecured personal loan, banks usually look at your entire financial profile which takes time and effort..
"The loan against FD offers borrowers the freedom to borrow from the sanctioned limit multiple times as per ones requirements, repay the drawn amount as per ones repayment capacity and incur interest cost only on the drawn amount," said Naveen Kukreja, Co-Founder and CEO, Paisabazaar...
Loan against fixed deposit could be a great option for those looking to avail of a loan at a cheaper rate compared to personal loans where the interest rates range from 10.5-21 per cent per annum..
Loan against FD can be a more cost-effective alternative for consumers having poor credit scores or poor credit profiles as lenders usually set higher interest rates for personal loans for those having poor credit profiles, said Kukreja...
