It’s easy to avail of a loan package but it’s really hard to return the loan amount. It doesn’t matter which type of loan you have taken, the point is how you will pay back within a fixed time period. If you wouldn’t be able to pay back the loan amount completely then you will be charged with an outstanding balance. This balance would be an extra interest rate on your actual loan amount. How to avoid it is another debate so today we will only discuss three best ways to return the personal loans in Dubai which are:
- Tax saving Fixed Deposits
- Privileged interest rates for Senior Citizen
- Loan against Fixed Deposits
Deposits for loan payments
As per previous rules and regulations, Income Tax interest earning on your fixed deposit is exempted up to a fixed amount. There is a way to save your tax amount like if you want to invest your funds for a longer tenure and do not want to end up paying taxes, the best option would be a tax-saving fixed deposit account. You can choose to invest in a tax-saving fixed deposit to pay your loan amount. In a tax saver FD, the principal amount you opt to invest is exempted from taxation and you will be charged on your profit amount. Under these fixed deposits, your money is locked in for a period of 5 years or more and it depends on the services of a specific bank.
There are few restrictions that if you want to earn maximum profit, you will not be able to break your fixed deposit before maturity. Yes once you are done with your time period then you can avail loans or credit cards on these deposits as well.
Privileged interest rates for Senior Citizen
Most of the banks and financial institutions offer preferential services like privileged FD interest rates for senior citizens so that they could manage their payments. Senior citizens are offered higher interest rates on FD than regular individuals because they are out of the range of high-net-worth individuals. Usually, banks and private financial firms provide 0.50% more than the FD rates for regular individuals. But, the fixed deposit interest rate for senior citizens varies from one bank to another due to their age factor.
Loan against Fixed Deposits
There are a number of options and the best personal loans bank is one of the most important benefits of holding a fixed deposit. Any individual investing in the fixed deposit can easily payback the existing debts in the form of a personal loan and get a loan against FD from a lender. Your bank or financial institution will issue a loan against your term deposit using it as collateral. Also, the interest rate for the loan taken against your fixed deposit will be much less than traditional loans.
Remarks:
Either you want to take a personal loan or in a situation to return the previous debts, fixed deposits account with a higher interest rate can serve your purposes with complete ease.
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