People generally prefer to invest their savings. They prefer to invest in properties or financial instruments like shares, fixed deposits, or gold. 

People prefer investment to struggle with financial emergencies. People choose to invest to be financially stable. 

When it comes to the face of financial crises and funding, people chose to take personal loans. There are many types of financial instruments against which one can opt for a loan. 

Let’s see the 5 most obvious financial instruments against which one can opt for loans. Those 5 are Residential property, shares, fixed deposit, life insurance policy, and last but not the list is gold. 

Loan against Residential Property : 

A loan against residential property can be a good option. As it is a static property, it is safe for the lender. Thus, it is easy to get a loan against it. One can opt for 60-70% of the value of the property as a loan. As per your chosen lender, you can have a suitable tenure between 2 to 20 years. The interest rate ranges from 11-15% on loan against property.

Loan against Shares :

One can opt for a loan against investment in equity shares.

One can opt for 50% of the value of the share as a loan. The interest rate ranges from 11-22% on loan against shares. The tenure and amount of loan mainly depend on the bank, NBFC, or lender. 

Loan against Fixed deposit:

Loan against FD is the most obvious idea. The maximum LTV can be 90% of the amount of FD in the bank account. The interest rate ranges mostly 2-3% higher than the interest rate on FD. The tenure of the loan will be the same as the tenure of fixed deposit. 

Loan against Life Insurance Policy :

We opt for life insurance to fight against emergencies, sudden accidents. So, why not for financial crises. 

One can opt for a long against the life insurance policy. One can have 85-90% of the value of the surrendered value. The interest rate ranges from 09-10% on loan against shares.

Loan against Gold :

Gold comes in handy instruments to get a loan in an emergency. The lender checks the purity of gold, measures the weight and evaluates the price of it. After this process the lender approves the loan, Loanee can opt for a loan of up to 80% of the original price. The gold loan can be a better choice when you want the loan for a shorter duration and less interest. 

There are some benefits to taking a loan against gold at MyLoanCare. The process to opt for a loan against gold is less time-consuming. The gold loan is secured. That’s why it has lenient eligibility criteria and fewer documents. As compared to others, interest or gold loan rates are also not higher. It is about 10-12%. Mainly, many institutions do not charge processing fees. If any lender charges, it is not more than 1%. There are no or fewer foreclosure charges. Income proof is not compulsory to require, and also credit card does not affect much. 

Simultaneously, it has some drawbacks. That is, in the case of default, the lender can legally sell your gold to recover the amount. 

Conclusion : 

Loan against financial instruments is the most obvious thing. During a financial emergency, it is a handy solution to fight against a sudden financial crisis.