5 Alternatives To A Personal Loan With Less Interest

 

A personal loan with less interest is a reliable way to fund your financial needs. However, you can explore other ways to get quick funding at the lowest interest rate. Here are some popular alternatives to a personal loan.

 

1. Gold Loans

 Gold loans carry the lowest interest rate, from 7% to 12% per annum. Gold is a valuable asset for lenders, who give secure loans on pledging gold. Additionally, gold loans require minimum documentation and take less time to process.

2. Loan against Fixed Deposit (FD)

 Loan against FD costs 1% to 2% above the FD rate. If you have an FD, you can easily get a personal loan with less interest on your fixed deposit. You won’t have to break your deposit or lose interest on FD.

 

3. Loan against Property (LAP)

 Borrowing a loan against property can save you money on interest. If you have an investment property, you can convert it into a quick loan at an interest rate of 8% to 12%. The good thing is that you can extend the loan tenure up to 15 years.

 

4. Credit Card Balance Transfer Loans

Converting a high-interest credit card debt to a lower-interest loan is a great way to fund short-term financial needs. It is called balance transfer and it often comes with a promotional interest of 0% for a few months.

 

5. Peer-to-Peer (P2P) Lending

 P2P lending often has interest rate lower than banks. For this reason, it is considered an alternative to personal loan with less interest.