Kinds of Loans against Securities

Previously we had discussed about secured and unsecured loans in India. Today, we shall speak about the loan alternatives that you can opt for in case you possess an asset.

• Loan against Gold: The best thing about gold loan is that the processing is quite quick as compared to other loan processing time. The gold loan is processed depending upon the security you deposit. The rate of interest is directly proportional to the margin of security you deposit. There are no pre-processing charges and not much documentation is involved
• Loan against your Insurance Policies: Some of the insurance policies are eligible to get you a loan. This can be known if you have a surrender value associated with your insurance policy. This is surrender value is available mostly after payment of 3 yearly premiums.  If your insurance policy has surrender value then you are eligible to take loan that is close to 90% of the surrender value.
• Loan against fixed deposit: Like many people you too would have fixed deposits which you would not wish to break in case of an emergency. At such times, you can opt for a loan against fixed deposit. The interest rate charged would be 1-2% higher than the interest earned on your current FD and you can take loan for about 75-80% of the current FD.
• Loan against property: In this type you can opt for a loan against property which could be either residential or commercial. Banks can give loan up to 50% of the market value of the property. Usually this type of loan is opted for large amount of loan.
• Loan against other investments:

1. Shares and Mutual Funds: You can opt for loan against shares and mutual funds too. However, there are only few approved funds and shares that can get loan sanctioned for you. Because of the volatile nature of value of shares and funds, you are likely to be asked for more margin while applying for loan.
2. Public Provident fund: You can also opt for loan on your PPF account. However, you are eligible to opt for loan from the 3rd year to the 6th year and the loan amount will be only 25% of the balance in your PPF account 2 years back.

Kinds Of Loans In India Against Properties

Ram India Group - Pune

India is a growing economy where the majority of the people are looking for properties, either  for  investment purpose or for making a property purchase for residence or both. The nation has caught the attention of many of the international investors who have plans to invest in property in different locations of the country like India.

Many of you would also be willing to buy a property in one of the cities in India but before you go ahead with buying a property in India, you need to have sound knowledge about the loans that the banks are offering and against what asset you can opt for a loan. In this blog we will be discussing about what are the different kinds of loans that you can opt for against various securities and then move on to the alternatives you can opt for loans other than the personal loan in the upcoming blogs.

Have you ever given a thought on what all kinds of loans are available for you in India?

These could be assets which you can mortgage as an existing asset and use to apply loan at a lower interest rate.

Basically, there are two kinds of loans, Secured Loan and Unsecured Loan.

Secured Loan: It is a loan where the loan lender has access to some sort of asset of the borrower which stands as a security for the lender in case the  borrower is unable to repay the loan. The lender in this case can liquidate the security asset and regain the full or partial amount of the loan granted to the borrower as this acts as a sense of security in Secured Loans and hence, the rate of interest is lower on these loans. 

Unsecured Loan:  In this kind of a loan the lender of the loan does not have any access to any of the assets of the borrower and in case the borrower runs away, the lender has no way to regain the loan sanctioned to the borrower and hence, due to this the rate of interest in this kind of loans are higher than that of the secured loans. 

If you are willing to make a property purchase with a real estate firm like Ram India Group in Pune, then you can apply for a home loan anytime after you have decided to acquire or construct a property, even if the property has not been selected or the construction has not commenced. Besides,you can also avail of the loan facility even if you want to renovate or extend your home.

We shall discuss about the different types of loans that you can opt for a home loan in our upcoming blogs. Till then stay tuned.

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