The festive season brings irresistible deals on refrigerators, washing machines, cars, and even homes. Instead of rushing for personal loans with high interest, consider borrowing against your existing assets. Here’s how:
1. Loan Against Fixed Deposit (FD) – Secure & Affordable
- Banks offer 70%-90% of FD value as a loan.
- Example: A Rs 5 lakh FD can fetch up to Rs 4.5 lakh as a loan.
- Interest rate: Only 1-2% higher than your FD rate.
- Bonus: FD continues to earn interest while pledged.
- Best for: Short-term liquidity without breaking your savings.
2. gold Loan – Fastest During Festivals
- Borrow up to 75% of your gold’s value.
- Example: gold worth Rs 2 lakh → Loan of Rs 1.5 lakh.
- Processing time: Quick, often within hours.
- Repayment: EMI, bullet payment, or overdraft.
- Caution: Defaulting may lead to auction of your gold.
3. Loan Against Property (LAP) – For Big Expenses
- Ideal for weddings, cars, or house renovations.
- Banks provide 50%-70% of property value.
- Example: home worth Rs 80 lakh → Loan of Rs 40-56 lakh.
- Interest rate: Lower than personal loans.
- Note: Approval takes longer due to verification.
4. Loan Against Shares & Mutual Funds – Let Investments Grow
- Borrow 50%-70% of market value of shares, bonds, or mutual funds.
- Investments continue to generate returns while being pledged.
- Risk: If market value drops, additional security may be required.
- Best for: Investors needing liquidity without selling assets.
5. When to Opt for Asset-Backed Loans
- For short-term liquidity without liquidating savings.
- Cheaper and safer than personal loans or credit cards.
- Must have a clear repayment plan to avoid losing assets.
- Use only for essential festive spending, not impulsive shopping.
✅ Bottom Line: Borrowing against FDs, gold, property, or investments can save you money this festive season. Smart planning ensures low-interest rates and protects your long-term savings, making celebrations stress-free.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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