A personal loan like Bajaj Finserv Personal loan etc., because of various reasons like a low credit score of below 750, inadequate professional experience, low income, et cetera, might get rejected. And if not rejected might be approved at a higher Bajaj Finance personal loan interest rate if opted for a personal loan through Bajaj Finance or at the higher interest rate, in general, though other lenders.
In such a condition, you do not need to lose hope because a personal loan offered by Bajaj Finserv Personal Loan or other lenders is certainly not the last resort, especially if you hold assets or have other investment options that you can pledge as collateral.
Let us have a look at possible alternative lending sources if you are not eligible for applying for a personal loan with Bajaj Finserv Personal Loan or other lenders:
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- Loan against fixed deposits
Fixed deposit is a financial instrument, especially among risk-averse investors. Taking a loan against this helps you to get away from the financial crisis at a lower interest rate that ranges between 1% and 2% above the term deposit rate. With minimal documentation, the loan gets processed in less than a day. Generally, banks offer a loan facility of up to 85% of your fixed deposit value. However, the exact percentage might differ from lender to lender. Few people prefer to withdraw fixed deposit amounts prematurely instead of taking a loan against it. In a few situations, it might be suitable, but generally, it is not recommended. It is because by doing this, you not only lose interest which you would have earned but also pay the penalty for premature withdrawal. Moreover, by opting for a loan against a fixed deposit, your fixed deposit amount continues to earn interest during the loan tenure also.
- Loan against property
A loan against property is another loan option which you can opt-in place of a personal loan. A loan against property is disbursed against the mortgage of property deed of business or residential plots or properties to the creditor who in return lends a certain percentage of the market value of the property. As it is a secured loan, hence its rate of interest is slightly lower, starting from 8.20 % p.a. onwards. The loan amount sanctioned for a loan against property can go up to 10 crores. This loan type is worth considering if your requirement for the fund is huge and you have no other source. If you default on your personal loan, then your bank or lender might sell it to cover the outstanding amount. However, there is also legal protection against the possession, which requires being checked with your lawyer and financial advisor. Moreover, before pledging the deed, you must make sure that the property title is clear of claims or charges.
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- Top-up home loan
A top-up home loan is a financial aid given by finance companies or banks to borrow a certain amount above the home loan amount. If you already have a home loan from financial institutions and require more funding, then opting for a top-up home loan for personal reasons like marriage expenses, funding of child’s education, business expansion, et cetera is a great option. Moreover, it is considered a better option than a personal loan offered by Bajaj Finserv Personal Loan or other lenders as it has a low rate of interest that is almost similar to or slightly higher than a home loan’s interest rate. However, in the condition of personal loans offered by Bajaj Finserv Personal Loan or other lenders, their interest rate is considerably higher, which can go up to 24 % p.a. Moreover, the loan amount offered by the top-up home loan option can go up to Rs 50 lakh or even more. On the contrary, the loan amount on personal loans like Bajaj Finserv Personal Loan etc. depends upon the applicant’s monthly income and their potential to service the personal loan. Lenders like Bajaj Finserv Personal Loan and others offer personal loan amounts of anywhere between Rs 50,000 and Rs 20 lakh, with a few of the lenders like HDFC bank willing to sanction a higher loan amount of Rs 40 lakh.
- Loan against securities
Your securities like Demat shares, bonds, mutual fund units, insurance policies assist you in compounding your money with time. When you face a financial crisis, it comes to your rescue. Instead of selling away the securities in haste, you can use loans against securities to avail timely finance. The limit of financial assistance depends upon the securities that you have pledged. The interest rate of loan against securities ranges between 9.25 % and 18 % p.a while you can get a personal loan worth up to 80% of the value of securities pledged, with a minimum loan amount of 50,000 and a maximum loan amount of 5 crores.
- Gold loan
If you own gold, then a viable loan option is a gold loan that you can consider for your immediate requirement. Gold assets in the form of jewellery, ornaments, and coins are accepted as collateral by NBFCs and banks. The interest rate of gold loans ranges between 7 % and 29 % p.a., while the tenure can range between 7 days and 4 years, where the highest loan amount sanctioned is 1.5 crore.
The loan includes minimal paperwork and lenient eligibility criteria, thereby offering speedy disbursal. Furthermore, it mostly includes up to 1% processing fees and the disbursal of an amount is solely based on the purity of gold. Gold assets without purity certification might attract a high cut in their value.
- Loan against car
If you got a car of your own, then you can use it to secure a loan against it. The interest rate applicable on this loan type can go as high as 15 % p.a. Like, in other loan options, this loan option is sanctioned at the discretion of banks. The bank might reject or accept your request for a loan basis your car’s condition, popularity, age et cetera.