| If you have a business idea in mind and require funds | | | | however, take such loans for granted and repay |
| to transform the idea into a reality, there are plenty | | | | them leisurely, which offset the advantages that you |
| of options available in the market. Careful study of | | | | would reap if you repaid fast. |
| the options is however, essential, as any hasty | | | | Retirement Funds: |
| decision could land you into a financial mess. | | | | You should use these loans only when all other |
| Therefore, gaze your requirement well and compare | | | | options are closed. Interest on such loans is not |
| the available options to check which one would best | | | | tax-deductible. If you fail to repay such a loan within |
| suit your necessity. Given below are some popular | | | | the stipulated time (mostly five years), you are |
| credit options and various pros and cons related to | | | | charged with heavy penalties and taxes. Moreover, if |
| them. | | | | your resign from your duties at office, the employer |
| Credit Cards: | | | | holds the right to call such a loan full, this can cause |
| Credit cards are the most popular credit option | | | | financial distress. |
| available in the market. You can use them for almost | | | | Life Insurance: |
| all the purposes from paying your grocer's bill to | | | | You can borrow against your life insurance, if you |
| booking tickets in an airline. When a credit card | | | | have a whole policy. Here, you have the option of |
| company issues you a credit card, it sets a specific | | | | not repaying. However, it is wise to repay, otherwise, |
| credit limit for you after verifying your income details | | | | the loan amount is deducted from the benefits |
| and various other factors. You can go on borrowing | | | | payable by the insurer to your beneficiaries. |
| until your limit extinguishes. | | | | Credit Unions: |
| You must however shop for a card that has low | | | | It is wise to borrow from credit unions, as they offer |
| interest rates and additional features such as reward | | | | very low interest rates and fees. If do not belong to |
| points or cash back facilities. | | | | such a union, check with your employer, if you can |
| Home Equity Loans: | | | | join one. |
| These loans are among the favorites of the tax | | | | Whichever option you choose, make sure that you |
| payees, as they are cheap, easily available, and offer | | | | negotiate with your lender well to get the best deal. |
| tax deductions on the interest component. | | | | In case, you are considering borrowing from friends |
| In such an option, you can avail of a loan against | | | | or relatives, obtain all the terms and conditions in |
| your house (on ownership). It is a very good option | | | | writing to avoid hiccups later on. |
| because of the prevailing low interest rates. People, | | | | |