We all know, we can take out a loan to cover our cash crunches; but do you know you can use a personal loan or any mini cash loan for investment? Building wealth starts with investment and an online mini cash loan could be your first step towards it. After all your expenses paid, and if you don’t have enough money left, instant mini cash loans can help you get started. Wait. Wait! But, before you go out and fill personal loan application, here are three things you need to consider.
Rates and Repayments terms of Mini Cash Loans
Before you start using instant mini cash loans as an investment, look at their interest rates and repayment tenures. It’s not advised to proceed further, if you find the numbers very expensive. Making high returns on your investment won’t do any good if you’re giving most of it to the lender. Lookup for a loan, which offers reliable and competitive interest rates. In addition to this, evaluate your returns and repayment sum. This equation must always leave you profitable.
Investing an Online Mini Cash Loan? Analyze the Market Performance
Jumping into the investment platform without any research is never a good idea; especially with borrowed money. Always inspect your investment performance from its inception, because last few months data will not reveal much about its market patterns as market can change in the blink of an eye.
Evaluate the Hidden Costs of Mini Cash Loan
When it comes to an investment, every dime matters. Lenders charge you with a fee while taking out a personal loan. Even if it’s a few bucks, you need to weigh it, as it might eat your returns. Apart from all these, watch out all your investment costs -from online mini cash loans cost to lender fee to broker fee to management expenses and everything.
Some Investment Options for You
After taking a mini-cash loan, you can invest the money in the following and reap maximum benefits.
1. Public Provident Fund: You can invest a minimum of Rs. 500 & a maximum up to Rs. 150,000 at an interest of 7.60%. Returns are tax exempted.
2. National Savings Certificate: Can invest from Rs. 100 to Rs. 150,000 at an interest rate of 7.60%. Returns are tax free.
Apart from these, you can also invest your online mini-cash loan in mutual funds, equity shares, real estate, insurance policies and many more.
Before you dive in, choose a better lender with affordable interest rates & then apply for an instant mini cash loan. It is always advisable to shop around and jot down the best available options. Using a personal loan to invest is a big gamble, you always need to be vigilant with the numbers, the ins and outs. Always keep an eye on your investment options and examine market trends from time-to-time.
Source- www.flexsalary.com/blog/benefits-of-mini-cash-loans/
Author Bio
the rate of interest on mini cash loan always higher than the rate offered by PF and NSC.