Managing funds, especially liquidity, is one of the important factors of personal finance. The process of managing the cash flow requires a disciplined financial lifestyle with a lot of careful and wise decisions.
Ups and downs are indeed part of your life, so we must be prepared if any worst happens. It is important to manage savings, liquidity, and investment to have a better financial future.
If you have savings or any investment, then you can deal with your financial problems and manage them efficiently. But if you do not have savings, some banks provide you fixed deposits that help you rescue from your financial problems.
Many banks also provide personal loans against FDs. What are the benefits of taking a personal loan against FD? Read the article to know more.
Pros of personal loan against FD
Even though the FD is a well-liked investment option now, when compared to a personal loan, the personal loan is regarded as the finest choice because of the following benefits.
- Low-interest rate
A personal loan is an affordable loan that is easy to repay for borrowers. It is suggested to take a personal loan than FD because there are fewer interest rates applicable to personal loans.
It means it is easy for borrowers to repay the complete loan amount without any burden of much interest rate. Also, the EMI for a personal loan is cheaper than other loans.
- No processing fees
Another benefit of taking a personal loan than FD is that many banks do not charge processing fees to give a personal loan. If some banks charge processing fees on your personal, the fee is also much less than the other type of loan.
So, taking a personal loan than FD or any other loan is always beneficial because there are fewer or no processing fees.
- Hassle-free process of application
This is one of the convenient features and benefits for applicants. Applying for a personal loan online is easy, as it involves less time and less documentation.
The application process for a personal loan is fast and does not need much paperwork. You can easily fill out your loan application online smoothly and quickly.
- No need to break your FD
The best fact about taking a personal loan against FD is that you do not need to break your FD. You will also get the interest in loan tenure. So, it is always considered best to avail of a personal loan against your FD because it will help you get interest in your loan amount.
In a nutshell, it is concluded that taking a personal loan against FD is always beneficial. Even if you have your FD but need to manage your finances, you should use a personal loan against FDs. This way, you can save yourself from interest rates applicable to the loan.