Thursday, February 14, 2019

Ways You Can Avoid a Premature FD Withdrawal with the Help of a Personal Loan

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There are so many different investment options in India that one is bound to get distracted. But the most common one out of them all is a bank’s fixed deposit. It allows you to lock-in your saving for a particular duration and let you earn interest on the same.

Apart from being the most common, it is also the simplest way of utilizing available investment options in India. But a situation which is very common amongst investors is the premature withdrawal of a fixed deposit. This decision can be taken for many reasons, including personal and business.


However, now with the help of an instant personal loan, investors can stop losing money on premature FD withdrawals. In this article, you will read about everything related to such case scenarios.

Situations that can encourage you to break an FD

     When the interest rates rise and your fixed deposit is in a lock-in period for three years. It can make you miss out on investing in other great investment options in India.
     When the interest rates fall, and the fixed deposit is in lock-in for one year or less.
     When an investor needs immediate funds, but their FD investment options in India are nowhere near the maturity period.

Ways a personal loan help investors

1. Quick funds

Due to the simple personal loan eligibility criteria, a borrower can obtain funds almost instantly. It is evident when you have all the relevant personal loan documents handy.

2. Easy application process

If you are wondering how to apply for personal loan, then you are in for a surprise! All the personal loan eligibility standards allow you to apply online with convenience.

3. Usage and limitations

Using a personal loan as available investment options in India will allow you to enjoy flexibility. It is all because the funds generated by this source can be utilized for any purpose.

4. Loan amount and tenor

If you want to acquire a personal loan for an extended period, it is now possible. Borrowers can easily apply for a personal loan for a tenor of up to 5 years. Furthermore, the amount limitation for this investment option in India is also substantial.

5. Interest rates and fee

Although the interest rates on personal loans can be a little bit high, one can still shop for a better quotation. To find low interest rates personal loans, borrowers can easily use the online EMI and fee calculator.

Other available options to avoid premature withdrawal

1. A laddering approach

One way to save yourself from making a premature withdrawal on your fixed deposit is by following the laddering approach. With such investment options in India, you will be able to create an extensive portfolio of assets. You can opt for schemes that offer best short term investments to create fixed deposits of different maturity periods.

2. Sweep-in accounts

The list of investment options in India also provides you with the facility of sweep-in accounts. It is two in one account that allows you to enjoy interest rates of a fixed deposit with liquidity factor. Moreover, this account is also considered the best investment plan for 3 years by most people.

NBFCs is the ideal option to consider when you are looking to borrow a personal loan, business loan, home loan or more.

To facilitate the loan acquiring process, they have created numerous pre-approved online deals. Going for these deals can make your loan process hassle-free and fast.

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Author: verified_user

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