Should I take a loan over my fixed deposit? Advantages and Disadvantages about quick Loan againts fixed deposit

Whats up Guys,

Many times, we need some advance money temporarily. So, we decide to take a Quick Loan against our Fixed Deposit. There are many advantages and disadvantages in it. It may beneficial or worst. Its depend on loan purpose, repayment schedule, repayment period etc. Here, I am going to write about that. Let you decide yourself, is the Quick Loan against Fixed Deposit beneficial or worst for your needs? But one thing, You will need to pay interest more than you getting from your Fixed Deposit. It is known as additional interest.

Advantages,

1.You may get profit than the additional interest. Many people earns more profit within short period. So, If the profit is higher than the additional interest. Why are you thinking about this? Just take the Quick Loan. Don't take higher risk, if you feel it won't give you such profit at all. Most of the seasonal business mans have been using this tricky method. Seasonal businesses mostly give them a good profit.

2.It will avoid losing interest profit. If you withdraw the Fixed Deposit during agreement period, You will be given very low interest. For an example: You deposited money for 5 year agreement term. If you withdraw the deposit in third year, You won't get actual interest for the three year period. They just give you very low interest for the period. It is a big lost for short term money needs. Here, Quick Loan is best to you.

Disadvantages,

There are many disadvantages in it. I say something of them here.

1.Profit from the purpose may less than the additional interest. There is no guaranty that every business will be success. You need to carry a risk in it.

2.Your Fixed Deposit may be closed. You may not repay loan back. Then the loan balance may reach your Fixed Deposit balance. Then the account will be closed as no repayment. So, you loose your money waste for interest. Therefore, If you feel that repayment isn't possible to you during the period, better is to withdraw the Deposit for your needs.

3.Many people see low interest rate loans in advertisements. So, they feel that it is profitable. You should consider the rate per year or per month. Some financial companies confuse people with such difficult advertisements.

Final decision is your according to your purpose and period of the Loan. I don't say the Quick Loan against Fixed Deposit is totally worst and its give you lost at all. Its depend in your total financial and business situations. That's all.

What do you feel about the loan against Fixed Deposit? Let you comment here. I will get back to you within 24 hours. If you have loved this article, please Plus or Share or Tweet. Thanks for readings.

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