Opting for a personal loan? Then, there is great need to take an overview of its services and terms & conditions. In case you get stuck in a debt of personal loan, there are some techniques that you can follow to relieve yourself from this debt.
These techniques include:

Monetizing Assets:
If you own assets like Life Insurance Policies, Tax Saving Certificates, Car, Home, Shares, Bonds & Debentures, Bank Fixed Deposits, Mutual Funds and gold jewellery etc. Then, you can monetize these assets to pay off your debt. This could be a wise choice as there are many banks that offer loan against assets and such loans carry a relatively lower interest rate and this could also set you free from your personal loan.

Debt Consolidation:
Debt Consolidation is also a good option to consider for your Debt settlement. This is a method to use when you could pay your debt at lower and fixed interest rates. Moreover, it offers lesser monthly installments. Basically, what Debt Consolidation means is that in this method, all the existing debts of a customer are combined to form a single loan. A consolidation agency looks over this whole process. Then, the agency pays off all the existing loans of a customer and the customer just needs to pay that single debt amount.

Convert your loan to a secured loan:
You can convert your home or vehicles loan to a secured personal loan but only on one condition, if your property is free from debts. As there are many benefits of a secured loan like it offers lower credit costs, you can use secured loans for a higher amount of money and it also offers interests at better rates.

Despite many benefits, it also has some drawbacks like the customer has to make regular installments and if the one does not pay these installments on time, then the lender can even sell the property that has been lien marked. The other drawback is that you could land yourself into serious financial problems, if you face money losses like job loss, illness etc. So, it’s better that you opt for this option only if you have some sort of income protection.

Evaluation of other options in financial market:
You can look up for other products like you can do monetization of your assets, sells your shares, bonds or debentures. Also, the premature closing of your fixed deposits could be of great help. The best way to get funds is from the bank where your salary gets credited. As the bank knows your track record, your income or withdrawal transactions, the bank proves to be a better option before you for a secured personal loan and offer you a lower rate of interest.

In case you are self employed, this option could be considered with the bank where you have the main account for your business transactions as the bank would be aware of the volume and nature of transactions done and could therefore offer you a better loan amount and rate.

Gaurav Khurana is an expert on Personal Loans. He is the Founder Director of DIALABANK.COM (Call 60011600) and Ex National Sales Head – ING Investment Mgt India and Vice President Citibank N.A