Loan for IVF in India: Save Money, Lowest Interest, No Minimum Income Needed
Apply for Minimum Loan AmountTry to take smallest amount of loan possible and arrange money as much as possible either from your own savings or from your friends or relatives. In return, you can pay small interest to your acquaintances. This way, they would be more than happy to lend you money. Isn’t this a fair deal and money saving opportunity for you? Why to bank rich?
Personal Loan against Fixed DepositAlso called as overdraft loan. If you have invested money in FD and do not want to prematurely close the account then you can avail loan against FD. The interest rate is lowest and is typically 1%-2% above the interest rate offered on FD. Other advantages are the account holder continues to earn interest even after taking the loan. And the interest is charged only on the amount utilized. Compared to traditional personal loan, this financing option is a big money saver as the interest rate is nearly 3%-4% less. Almost every bank in India offers loan against FD in India:
- State Bank of India
- ICICI Bank
- HDFC Bank
- Axis Bank and others
Other types of secured loanFor those who are not aware, in addition to fixed deposit, you can also avail loan by keeping securities such as:
- Gold – Borrower has to deposit gold – ornaments, coins, bars, etc. And depending on the purity, weight; money is lent which is 80%-85% of the value of the gold.
- Mutual Fund – Another way to receive quick money from banks and NBFC is by pledging the mutual fund. However borrower cannot sell-off units as they are under lien.
- Shares – Meeting contingency fund is also possible through loan against shares. However the loan amount is less, 50% of the current value of the collateral, which is shares in this case. Moreover credit is offered only against selected securities only e.g. blue chip companies.
- LIC policy – At an interest rate of 10% which is nearly 40% lower than personal loan, you can get financing against endowment policy from Life Insurance Corporation of India. However borrower must have paid the premium for a longer tenure. You can also get loan against insurance policy from various banks, but the interest rate is on a higher side but lower than the personal loan.
- Kisan Vikas Patra or National Savings Certificate – Pledging of KVP or NSC is also a lucrative option to avail finance. Loan amount is between 75% – 100% depending on the age of NSC/KVP.
- Property – Loan is provided against either commercial or residential property provided the said property is in the name of the borrower. Although not everyone has property but this is a good option to avail financial support.
- Car – If you are looking for personal loan at low interest rate, then pledging your car is another solution. However loan amount depends on various factors such as age of the car, condition, and current value. This is a common option to avail financing in western countries.
Personal Loan from Co-Operative BankBorrowing money from co-operative bank is little cheaper compared to commercial banks because of the low interest rate. Co-operative banks charge interest of 8.5% – 13% whereas commercial bank charge 9.5% – 15%. The eligibility criteria is less strict compared to commercial banks.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).