Ways You Can Avoid a Premature FD Withdrawal With The Help Of a Personal Loan
Fixed deposits are still the preferred avenues of investment for a vast majority of Indians. They have secured investment schemes and are not subject to market risks. At the end of the maturity period, the investor can avail the entire amount plus the interest accrued.
FDs can be both short and long-term in nature. The tenor can go up to 10 years in case on long-term FDs. Breaking a fixed deposit prior to the end of the tenor incurs a considerable loss on the part of the investor, especially in case of long-term FDs. Premature withdrawal attracts penal charges apart from the reduced interest amount incurred.
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Liquidation of an FD v personal loan
Many individuals are tempted to withdraw their FD prematurely at times of financial crisis. However, it may not be the best approach. Instead, you can avail of an instant personal loan and take care of the exigencies.
There are several reasons why this approach makes more sense.
- Personal loans are unsecured. You don’t have to pledge any collateral.
- You may avail a high loan amount of up to Rs. 30 Lakh with nominal interest rates on personal loans.
- Top financial institutions approve personal loans almost instantly. You just need to meet a few essential eligibility criteria and submit the corresponding documents. Once your loan is approved, you can have access to sanctioned amount within the next 24 hours. So, you are not deprived of funds at the crucial hour of need.
- There are no end-use restrictions on a personal loan. You may use it for any purpose from renovating your house to meeting emergency medical expenses.
Premature FD withdrawal is a poor financial decision which you should ideally avoid. Avail an instant personal loan instead and repay the same in easy EMIs. This way, you continue gaining substantial interest on your FD amount and avoid paying prematurity charges as well.
Must Read: Ways You Can Avoid a Premature FD Withdrawal with the Help of a Personal Loan
