Author: SMFG India Credit

SMFG India Credit http://financenews.wordpress.com SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.), is registered as an NBFC - Investment and Credit Company (NBFC-ICC) with the Reserve Bank of India, and is a member of SMBC Group. SMFG India Credit started its India operations in 2007, and is today a leading NBFC with a pan India presence. Working together with over 16,500 employees, we reach our market by connecting with around 3.2 million customers, be it in cities, towns or villages, right at their doorstep. We penetrate deep inside the market through more than 729 branches, covering 600 towns and approximately 65,000 villages.

Benefits of Using an EMI Calculator Beforehand for a Bike Loan

Harley-DavidsonÕs new electric bike, LiveWire, is shown in this handout photo

When availing of a bike loan, the sanction period is always a concern, especially if you need the loan urgently. So, what can you do?

You can use a bike loan calculator. The calculator ensures the loan amount, interest, and tenure you are proposing is valid in conjunction with your finances. Hence, your sanction period may decrease. The following are a few benefits of using it beforehand.

Benefits of Using a Bike Loan EMI Calculator:

Knowing Your Credit Limit

When applying for a loan, people tend to extend their line of credit. But by using an EMI calculator, you know how much you can borrow based on your income, credit score, etc.

Helps Choose a Suitable Tenure

For some people, shorter loan tenure is better, and for others, longer tenure is better. Using a bike loan EMI calculator allows you to see variations of the loan based on the tenure, interest rate, and loan amount you choose. Thus, you get insight into the different options and choose which one is best suited for you.

Helps Make an Informed Choice

Loan EMI calculators will help you determine what is ideal for you. Therefore, when speaking to lenders about the loan, you will be aware of what you are looking for and compare all possible options with your ideal conditions in mind.

Use Fullerton India’s wide range of calculators and financially plan your way to a successful future, knowing your lender is reliable, offering competitive interest rates and flexible repayment schedules tailored to your needs!

Must Read: Major Factor to Consider while choosing a Bike Loan

How to Maintain a Good Credit Score as an SME?

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Having a high credit score as Small and Medium Enterprises is important. It helps get funding through as well as new clients. This is because your business credit report can be accessed by other stakeholders in the industry before getting into business with you. The following are a few things you can do to maintain a good credit score:

Things to Do to Maintain Good Credit Score are:

Consistency

A good credit score is built overnight. When availing an SME loan, your credit score needs to be in place consistently. A good practice to boost your score over a period is by credit utilisation – use your line of credit but do not max it out.

Updating Information

There are a few major bureaus in India that maintain profiles of companies. Make sure your profile is up-to-date across these platforms. Information such as years in operation, number of employees, and financial statements must be updated periodically. It is also advised to only borrow from lenders registered on these bureaus.

Credit History
It is essential that business owners have a good credit history. This means that they must have no defaults in repayments of previous debt or financial commitments. Having a clean public record is also of the essence, it is a business loan requirement and not having a good rep makes lenders sceptical.

Fullerton India has expertise in business loans that can give your SME a head start. With our flexible tenures and competitive interest rates, you can focus on your business’s growth and be at ease about financing.

Additional Read: Tick-off These 5 Requirements Before Availing Small Business Loan

How to Avail a Loan Against Shares, Bonds, and Debentures

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Loans against share helps you take advantage of your investments and use it for further financing. Additionally, it fulfils people’s contingencies and helps them liquidate investments without selling them. Some things to consider before taking the loan against shares are:

Things to Consider Before Opting for Loan Against Shares:

Take a loan against shares and debentures (equity) only if you are expecting full compensation through benefits and need the loan to fulfil the need for funds in the interim period.

In case of reinvestment of this loan, ensure that the advantages are equal to/more than the costs you incurred.

For your better understanding, the steps of the procedure are as follows:

One can pledge shares, units, bonds, and even policies to avail a loan against policy.

After you have submitted the application, including all the share certificates and relevant documents, the lender will open an account in your name.

The loan is sanctioned, and the borrower is informed of the interest rate which is only charged on the number of days you have utilised the funds.

The loan amount is based on 2 factors, the first is the extent of financing in a specific stock. The second factor is the value of the stock upon evaluation.

The loan for one borrower does not usually exceed Rs.20 lakhs, as per the RBI’s rules for loans against security of shares and maximum 10 lakhs for equity bonds.

Fullerton India specialises in loans against shares. We offer flexible repayment tenures and competitive interest rates so that you can ensure your financial health!

Additional Read: What is loan against demat shares? Point’s to Check Before Applying

What Are The Types of Mortgage Loans In India

Mortgage loans are outstanding for those who want to buy a home as they offer a high sum based on the property pledged as collateral at lower interest rates than other types of loans. The documents for the immovable property need to be deposited to the lender until the loan period.

Additionally, the tenure of repayment is If you are looking to buy a home, choosing the right type of mortgage loan is very important. There are six types of mortgage loans in India.

Let’s see them

Types of Mortgage Loans in India

Loan Against Property (LAP)

Lap loans are offered for both commercial and residential properties. Borrowers have to mortgage their property to get funds from lending institutions. One can avail of this type of loan for any personal needs.

Commercial Purchase

People in business and entrepreneurs popularly take these loans to buy only properties like shops, office space, commercial complexes etc.

Lease Rental Discounting

You can take mortgage loans against learned properties where monthly rental is converted into EMI for the loan.

Second Mortgage Loan

Banks and NBFC’s give loans for properties that are already pledged under the mortgage loan. The borrower can repeat this additional loan EMI with the first loan EMI he had availed.

Reverse Mortgage

Loans that are provided to senior citizens as a monthly salary after which the lender will sell the property pledged and waive the total EMI amount.

Home Loan

Most commonly used loans, called home loans, are used by customers to renovate, rebuild or buy an under-construction property. You cannot use this loan for other personal purposes. These loans should be used only for procuring a house.

Fullerton India offers loans against property at the lowest property loan interest rate starting from 9%. With Fullerton India mortgage loans, you can avail up to INR 12.5 Cr on residential or commercial properties. Apply now!

Additional Read: What are the Key Benefits of a Mortgage Loan?

All About Loan Against Property

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A loan against property is a collateral loan that You can avail against a property. The loans that are secured against property come with lower interest rates than the ones against collateral. Any immovable property that is residential or commercial can be pledged against the loan. You can apply for property loan here-

https://www.fullertonindia.com/loan-against-property.aspx

Features Of Loan Against Property

Eligibility Criteria

The eligibility criteria for a loan against property differs based on the lender. Most lenders check the borrowers’ repayment track record aka credit history, employment status, age, and financial stability before sanctioning the loan.

Higher Loan Amount Sanctions

The lap loans have a higher loan amount as one is pledging a high-value asset. Most lenders provide a range of 60 to 70 per cent of the property value for the loan amount. The immovable asset can be land or commercial property like a shop or a residential property.

Longer Tenure

Since the loan amount is enormous, many lenders offer longer and flexible EMI payments. Some lenders stretch the tenure even up to 20 years since there is collateral involved. You can use the mortgage loan calculator to plan your instalments and decide on an apt tenure and a perfect instalment.

Speedy Sanction

Since the loans are availed against collateral, the sanctions are fast, and the loans are disbursed swiftly to serve the purpose on time.

Applying for mortgage loans online it brings an array of benefits to you. The loan process takes just a few steps, and the documentation is hassle-free as it doesn’t involve much paperwork. Apply for a lap loan with Fullerton India to get the best deals against property in India.

Must Read: Crucial Things To Know About a Loan Against Property

Aspects of Credit History that Impacts Business Loan Approval

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Good credit history is an integral part of your business loan application. It indicates to the lender how reliable you are. The following aspects of your credit history are considered when availing of a business loan.

Aspects of Credit History that Impacts Business Loan Approval

Defaults in Repayment

It is always good to make timely EMI payments. Even after the deadline, you will be given a few days to make the instalment. Missing this deadline as well is sure to take a hit on your credit history. If your debt repayment is consistently late or missing, then it heavily impacts your chances of availing of a business loan. Even if a business owner does get a loan after this, the business loan interest rate would likely be higher than average.

Bankruptcy

If you have ever filed for bankruptcy, your chances of availing of a business loan are slim to none. It is bound to reflect poorly on your credit history for a minimum of 10 years.

Debt to Income Ratio (DTI)

DTI is the percentage of disposable income going towards debt repayment. A DTI higher than 50% makes loan application acceptance less likely. Especially since a majority are unsecured business loans, the lender becomes even warier.

Business loans can play a massive role in the success of your business. However, availing it is only possible if you are deemed a worthy borrower by the lender. Fullerton India’s business loans are here to help you through flexible repayment tenures and competitive interest rates so that you can expand your business!

Must Read: How We Can Get an Unsecured Business Loan?

Challenges of Availing an MSME Loan

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The MSME (Micro, Small and Medium Enterprises) industry makes for a huge part of our nation’s economy, and it is of great significance to ensure these businesses receive proper help. While there are specific business loans in place for the same, there are still a lot of challenges in availing them.

These include:

List out Challenges of Availing an MSME Loan

Trust Deficit

Lenders have a lack of trust when it comes to MSME loans. This is because they think these businesses have a low repayment capacity. Resultantly, the rules and regulations for getting this loan are much more stringent than others, which is an obstacle in the way of MSME’s.

Lengthy Process

As mentioned above, the rules for SME loans are stricter. This manifests itself into the documentation process and makes it tedious for business owners. Naturally, they hesitate to think of an SME loan as an option as most business owners require funding in emergencies.

Costs and Collateral
A lot of lenders make SME loans secured, meaning, they require pledging of a collateral. This is not possible for a business that is just starting out and has limited assets. While there are some lenders that offer unsecured loans, the MSME loan interest rate automatically goes higher due to the lack of collateral. This again, is not viable for many businesses.

To steer clear of these challenges and get a business loan at competitive interest rates and flexible repayment periods, turn to Fullerton India to not sacrifice the growth of your business due to a lack of funding.

Additional Read: Top Reasons Why MSME Loan is The Perfect Options for Small Business Owners

How can one Get an Instant Loan Online?

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Personal loans online have made it a quicker and hassle-free option to get instant loan sanctions for anyone looking for urgent money. These loans do not require any collateral, and hence they are credited almost instantly. Additionally, these loans require less paperwork as the process is digital.

The instant personal loan process your documents quickly and grant you the personal loan within 24 hours. Additionally, the loans availed through the instant loan apps get you the loan up to 25,000 on the go. Many lenders offer low-interest personal loans through their quick loan apps.

How Can One Get an Instant Loan Online?

Checking their eligibility through the lender’s website.
Calculate your monthly EMI instalments using the EMI calculator
By installing a personal loan app and filling out the application form
Uploading the necessary documents requested by the lender
Photo
ID proof
Address proof
Salary statement
Bank statements
Click Submit

Talk to the customer care representative to discuss further information while the application goes through the verification process.

If sanctioned, the amount will be credited to you within 30 minutes of loan approval.

Lenders offers low interest personal loans that start at 11.99%. If eligible, one can avail of a personal loan up to ₹25 lakhs if a salaried employee. Additionally, one can opt for flexible repayment tenures until five years and choose their flexible monthly instalments using the Fullerton India EMI calculator. Install the Fullerton Insta Loan app today to avail exciting benefits.

Must Read: Get a Fullerton India contactless personal loan completely online

Milestones You Can Reach with Personal Loans

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A personal loan is a collateral-free loan that helps you meet financial needs. Under this, borrowers get the flexibility to decide what they want to use their loan for. As a result, instant personal loans can help you reach a particular milestone in your life. These milestones include:

Milestones You Can Reach with Personal Loans:

Higher Education

Quality education is an investment, but student loans can have very high interest rates, often resulting in premature debt. Instead, you can get a personal loan to finance your higher education, as it is an excellent alternative to student loans.

Wedding Expenses

Having your dream wedding can be quite cost-inducing. To avoid compromising on your desires for this special day, couples can take personal loans to fund wedding expenses.

Debt Consolidation

For those with various debts, it is challenging to pay to different sources with different interest rates. Borrowers can take a personal loan for this. It makes repayment hassle-free and can even be cost-effective. To estimate whether this will be more cost-effective, you can use a personal loan EMI calculator.

Home Renovation

Home renovation is quite an expense and needs a pool of liquid cash to fund it. Unfortunately, many people do not have all the funds available. A personal loan can help you overcome this challenge and pay for the costs in comfortable instalments.

Lenders believes in helping you meet every important milestone in your life. Avail of our loan services for flexible repayment schedules and competitive interest rates that keep you financially stress-free during the loan experience!

Additional Read: How Does A Personal Loan Balance Transfer Work?

Things to Consider When Taking a Personal Loan

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With a surplus of loans available today, not all lenders are trustworthy. This requires borrowers to pay close attention to the terms of the loan to steer clear of any repercussions.

The following are a few things to take into consideration when taking a loan:

High Origination Fees

When borrowers try to finance a personal loan, some lenders might charge an origination fee. While this is not out of the ordinary, borrowers must be wary of how high this fee is. Having an origination fee that sums up a large percentage of the loan amount is a red flag that customers should watch out for.

Short Repayment Span

While it is advised to repay loans as soon as possible, tight repayment deadlines are not ideal. Often, borrowers can face a financial crunch that sets them back. As a result of these deadlines, you can fall into the trap of more debt, with the repayment default reflecting poorly on your credit score.

High Repayment Penalties

Early repayment penalties are there to protect lenders from losing interest rate profits. While these penalties are not usually a hefty amount, some are. High penalties can hinder a customer’s ability to be debt-free sooner. So, when you ask yourself, “How much loan can I get?” be sure to factor in these extra costs.

A trusted lender’s wants you to have a good loan experience and feel financially secure. Therefore, we offer loans at competitive interest rates with very flexible repayment schedules, preventing any financial burden in the process!

Must Read: How To Increase Your Personal Loan Eligibility?

How Can You Manage Your Personal Finance Better?

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To manage personal finance better, one needs to strategize saving and investing. A few simple things can help you improve your money crunches and diminish your financial issues. Here are few tips to strategize and manage your personal finance better. (Check your personal loan rates here)

How Can You Manage Your Personal Finance Better?

Invest wisely

If you cannot access the desired asset that can give you a higher value asset in the longer run, then go for a quick collateral loan. Collateral loans have comparatively even lower interest rates. You can use the sum to get the desired asset with better returns.

Prepare For the Unprecedented

A financial emergency can arise in any situation. You can opt for low-interest personal loan rates in such situations to manage your finances well. One thing to keep in mind is to

Use A Credit Card Carefully

Swiping a credit card is more convenient, but not its interest rates which go up to 23%. Whether you are buying a mobile or a higher sum, then don’t go for the impulse. Compare it with personal loan rates and calculate your instalments.

Various lenders offers personal loans as flexible repayment schedules and the lowest interest rates that keep you financially stress-free!

Must Read: 8 Tips Helps you to Manage your Personal Loan Payment

Loan Against Securities During Rises in the Stock Market

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A loan against security (LAS) is a secured loan for which you pledge your stock portfolio as collateral. In most cases, the borrowers get 60% of the portfolio’s value as their loan amount. Therefore, if the stock market is on the rise, then the portfolio value will be higher. Hence, an increased loan amount. Furthermore, while the portfolio becomes collateral, the investor will still receive the benefits of their investments in the meanwhile. Some benefits of a loan against security include the following.

Overdraft Facility

Loans against securities are offered in an overdraft facility. An overdraft facility means that after evaluating the portfolio, 40% to 60% of the value is deposited into an overdraft account. The borrower can use this when they deem it necessary, and the interest is only charged on the amount they use.

Revaluation

The lender periodically revaluates your portfolio since the stock market is ever-changing. When the stock market is on the rise, there are much fewer chances of compensating lower than the loan’s value.

Interest Rates

A loan against securities’ interest rate is relatively lower since it is secured. When the stock market is on the rise, your ability to repay the loan with interest is higher, as you are reaping more benefits from the investments in the portfolio.

Lenders specialises in secured loans like these, offering long tenures and competitive interest rates for your maximum benefit. Availability of this loan gives you flexibility in repayment so you do not feel financially burdened at any point!

Additional Read: 5 reasons why you should go for a Loan Against Securities

How Does a Personal Loan Help Settle Previous Debt?

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People often have multiple channels of financing, including loans and debt. Handling all of them separately and making monthly payments to different channels can be an inconvenience. Undertaking a personal loan to settle other debts can be a much-needed relief for many. The steps to taking this loan are also exceedingly simple today, as long as you meet the eligibility requirements.

You can express what tenure, monthly EMI, and the loan amount you are looking for during your personal loan application. Clients base these desires on their income, expenditure, and repayment capacity. Accordingly, the lender will let you know whether your request needs tweaking, and the two parties can come to a common ground.

Potential borrowers can use the EMI calculator to get a reasonable estimate of the loan and interest rates. Such calculators also help them financially plan and be prepared for the various payments they need to make. This further allows them to approximate how long it will take them to settle their debt, helping them decide the appropriate tenure for a better loan experience.

Lenders offers personal loans at competitive interest rates and a flexible repayment period. Annually, personal loan interest rates are roughly 18%. On the contrary, credit card interests are 24-36%/year. Taking a personal loan makes the repayment of debt much more cost-effective. You can comfortably pay it off between the span of 6-60 months. After crossing the 6-month mark, you can foreclose the loan without prepayment penalties.

Must Read: How to manage a Financial Crisis During Coronavirus (COVID-19)

Why Should You Apply For A Two Wheeler Loan?

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A two-wheeler loan is the best way to buy your favourite bike without touching your savings. It is the best option to manage your finances when you have no other way. The best part about a two wheeler loan is that you can get up to 100% of the bike’s on-road price as a loan. It means that you can avail of a zero down payment bike loan for yourself, depending on your age, income, and credit history.

Here are some of the reasons you should opt for a 2 wheeler loan:

You can avail of an affordable interest rate, depending on your income, credit score, current financial obligations, etc. Some lenders even offer as low as 1%.
It is a great way to reduce the financial burden on your shoulders. Keep in mind to apply for a lower loan amount as it significantly reduces the interest rate.
If you make on-time repayments of the loan amount with interest, it will positively reflect on your credit report, increasing your credit score. A healthy credit score ensures approval of loans in the future.
There is flexible loan tenure that ranges between 12 to 48 months. So, it allows you to choose a loan tenure based on your needs and preferences. It is worth noting that a longer loan tenure may lower your EMI but increases interest in the long run.
A 2 wheeler loan comes with minimum eligibility requirements. You will need to prove that you are within the age bracket set by your lender. You must be either a salaried person in a company or self-employed. Also, you must show a minimum income based on your lender’s policy.
You do not need to stand in long queues to apply for a loan. You can access funds to buy your dream bike from the comfort of your home, with just a few clicks on your computer.

Additional Read: Top Benefits of Applying for Bike Loan Online in India

What are the Key Benefits of a Mortgage Loan?

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A land mortgage loan or a loan against property (LAP) is a type of loan that you can avail of against the value of your property. The loan amount that you can avail of depends on the value of your property in the market. Generally, financial institutions offer up to 60% to 70% of your property’s value as a loan.

Compared to other secured loans, the property loan interest rates are lower and most affordable. However, it is worth noting that if you wish to secure a lower property loan interest rate, you will have to convince your lender that you have a stable income, a healthy credit score, and no current financial obligations.

A mortgage loan comes with various benefits that you can avail of while applying for a loan:

It serves multiple purposes, which means you can take a loan against property to cover the cost of a medical emergency, education, wedding, international travels, car repair, home renovation, etc.
Some lenders may even offer lower to no prepayment charges. So, if you wish to prepay your loan, check with your lender if they have such a benefit included in the loan agreement.
The process of applying for a loan against a property is simple and easy.
Unlike unsecured loans, you can opt for a loan tenure of up to 15 years.
Since the loan tenure is longer, it significantly brings down your monthly. It is suitable for people who can not afford higher EMIs. However, if you have the budget, choose a shorter tenure to reduce the total of borrowing.

Must Read: Understand the difference between Loan and Mortgage

What is an MSME loan- & Eligibility Criteria for Applying ?

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MSME Loans are loans for small and medium enterprises, registered with the MSME Ministry of the Govt of India. MSMEs often face the problem of a lack of funds to expand their business. MSME loans help them in expanding and becoming self-sustainable. Certain lenders, offers MSME loans up to Rs 50 lakhs, based on the eligibility.

To understand who qualifies as an MSME, the table below will offer you comprehensive information:

Classification	Micro	Small	Medium
Manufacturing Enterprises and Enterprises rendering Services	Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

What is the eligibility of an MSME Loan?

Here are the common criteria for an MSME loan:

Age Criteria: Minimum 22 – 65 years
In case of Individuals: Individuals who have been engaged in the current business for at least three years with a total of five years of business experience.
Company Type: Self-employed individuals, proprietors, private limited companies, and partnership firms working in manufacturing, trading, or services.
Business Turnover: At least Rs. 10 lakhs per year
Business Vintage: Minimum 2 years in profit
Business with a Minimal Annual Income (ITR) of Rs. 2 lakhs per year

Additional Read: Top Reasons Why MSME Loan is The Perfect Options for Small Business Owners

How To Get The Best Personal Loan Interest Rates?

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It is now possible for consumers to find best personal loan interest rates online and choose the best ones available. There are some straightforward steps that can be taken by borrowers who want to take advantage of the competition among lenders and avail a low-interest personal loan.

Get quotes from a variety of lenders – The competition among lenders has grown exponentially in recent months, meaning that it’s easier than ever for consumers to find attractive offers. It only takes a few minutes for interested individuals to fill out a short online application form at one or more lending websites, and this process will provide them with all the necessary information needed for comparisons.
Improve Your Eligibility: Borrowers should examine all their existing loans and credit cards in order to determine their creditworthiness. This information will be used when applying for a new loan, as lenders usually look at applicants’ current credit situation as an indicator of how likely they are to repay on time. If there is a risk, the interest rate will rise. If the credit profile looks healthy, the interest rate will fall.
Check for festive offers: Some lenders offer discounts on their loans in the festive season, especially for borrowers who get personal loans online. Borrowers should not overlook these festive offers, but rather avail of them as they will lower the interest rate. Borrowers can also get discounts on interest rates and processing charges if they have an existing relationship with the lender.

Follow these steps to get a low interest personal loan.

Additional Read: How to Get a Good Interest Rate On A Personal Loan?

How To Manage a Personal Loan?

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Before taking any loan it is imperative to learn how to manage it. Otherwise, you can land in a debt trap and have lenders harassing you for repayments. But managing a instant personal loan is relatively easier. Here are a few things you can do to successfully manage your personal loan and ensure that you have a smooth loan experience during your tenure.

Tips to Manage a Personal Loan:

Pay your EMIs before making any other payments every month: This is the most important tip to manage a personal loan. Most people forget their EMIs and end up defaulting on payments. This could invite charges and legal action from the lender, which can ruin your credit score in the long run. It is best to use a personal loan EMI calculator before taking a loan to understand your monthly obligations.
Keep a track of the different types of loans you have taken: If you have taken more than one loan, keep a track of them separately so as to avoid confusion at the time of making repayments. The best way is to make separate bills for each loan and prioritise payments accordingly.
Borrow only the amount required: Never go beyond your financial requirement by borrowing more than required. Interest rates are higher for personal loans as compared to other loans, so borrowing a higher amount will lead to a bigger expenditure and pressure on your budget. Always try to keep a saving fund for unexpected emergencies that might force you to borrow money in the future.

Keep the above tips in mind to manage your personal loan effectively.

Additional Read: How to get a Fullerton India Personal Loan? – Step by Step Guide

Crucial Things To Know About a Loan Against Property

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A LAP loan is a secured loan that you avail of against the value of your property. It serves multiple purposes which means that you can use the loan amount to cover the cost of a medical emergency, wedding, higher education, international travel, car repair, home renovation, etc. It enables you to secure up to 80% of the property’s value as a loan. Before applying for a LAP loan, here are the crucial things to know.

Crucial Things To Know About a Loan Against Property:

Interest rate

Since it is secured, the loan against the property interest rate is significantly low. However, it would be wise to shop around and find a lender who offers the lowest interest rate. Also, if you wish to secure a lower interest rate, you need to convince your lender that you have a stable income and have maintained a healthy credit score.

Eligibility criteria

Before applying for a loan, make sure that you meet your lender’s eligibility criteria. Usually, you have to be at least 21 years old and a salaried employee of a company to qualify for a loan. Also, you must show a minimum based on your lender’s policy.

Loan amount

Although you can get up to 80% of the property’s value as a loan, that does not mean that you should opt for a higher loan amount as soon as you see an opportunity. Assess your needs and choose a loan amount that you can afford to repay without any default.

Choose the right loan tenure

Your loan tenure directly impacts your EMIs and your affordability. Use an online home loan calculator to determine a loan tenure based on the EMI you can afford to pay every month.

Must Read: 5 Rules to Keep in Mind while taking a property Loan

How Does A Personal Loan Balance Transfer Work?

A personal loan balance transfer is best if you want to save money on interest. If you have a good credit history and can find a lender offering you a lower personal loan interest rate, a balance transfer can greatly benefit you.

It can be done online or in-person and is easy to do either way.

The first thing you’ll need to do is find a personal loan provider with the best interest rate that fits your needs. Ensure that this lender accepts personal loan balance transfers. You will require to put in a fresh personal loan application with residence, income and identity documents to apply for a personal loan balance transfer. Once the application process has been completed and approved, it will then be time for you to transfer your balance from one lender to another.

You will then be required to get a NOC and foreclosure from your existing lender.

Once you get a loan sanction letter and the amount from the new lender, you can pay off your existing lender and close your loan. Ensure that the lender gives you a No Dues Certificate.

Things to keep in mind when opting for a personal loan balance transfer:

Calculate and ensure that the overall cost of the transfer isn’t amounting to a big loss.
Make sure you know what all the fees of a balance transfer are.
Know exactly when the new lender’s payments will begin and how they will affect your existing loans.

Additional Read: Is using personal loan Balance Transfer a good idea or not?

Things To Consider To Get The Best Two-wheeler Loan

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Bike finance is the best option to buy your dream bike without touching your savings or investments. You can secure up to 100% of the vehicle’s on-road price as a loan, and avail of an interest rate as low as 1%. However, it is worth noting that the loan amount and the interest rate depend on the eligibility factors, such as age, income, credit score, and current financial obligations. Before opting for bike finance, you must follow the underlying things to get the best deal available:

Things To Consider To Get The Best Two-wheeler Loan

Eligibility criteria

Before applying for a loan, you will find out your preferred lender’s eligibility criteria. The requirements are usually based on your age, income, employment type, credit history, current financial obligations, etc.

Loan amount

Assess your needs in advance and determine how much you can get as a loan on your repayment capacity. You can use a two-wheeler loan calculator to determine how much you can afford to pay in EMIs and apply for a loan accordingly.

Loan application process

Not all lenders offer the same application process. So, while looking for a two-wheeler loan, you must choose a lender that offers a convenient loan application process. Your lender must offer an easy and quick loan with minimum documentation.

Repayment tenure

A two-wheeler loan tenure usually ranges between 12 to 48 months. However, it is worth noting that a higher loan tenure can cost you more in interest in the long run.

Down payment

If you make a higher down payment, your loan amount will decrease. A decreased loan amount always ensures a lower interest rate, therefore, reducing the burden from your shoulder.

Keep these points in mind when applying for your next two-wheeler loan to make it even more convenient.

Additional Read: What is the Ideal Tenure For Your Two Wheeler Loan?

What is a Mortgage Loan, And How To Get One For Yourself?

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A mortgage property loan is a secured loan that allows you to access funds to meet your financial requirements without putting any burden on your savings or investments. To get a loan, you need to pledge your property as collateral. It means that if you default on your repayments, your lender has the legal rights to sell your property to recover the loan amount.

The loan amount that you can get depends on the value of your property. You may get up to 70% of your property’s value on a loan. The interest rate on a mortgage property loan is lower than other secured loans, and the loan tenure can go up to 15 to 20 years. Before applying for a mortgage loan, it is imperative to assess your loan affordability through a mortgage loan calculator available online.

To apply for a mortgage loan, you will have to check with your lender about their eligibility criteria and ensure to meet them. Here are the requirements that you need to meet:

You must be at least 21 years old at the time of loan application and 65 years during the loan maturity.
You must be either a salaried employee of a company or a self-employed person.
You must not have any current financial obligations.
You must show a stable income based on your lender’s policy.
You must be working in your current company for at least one year and have work experience of at least three years.

Besides meeting the eligibility criteria of your lender, prepare and submit the following document proofs:

Identification proof
Address proof
Salary slips
ITR or form 16
Bank statement

Check out the eligibility requirements of your lender to apply for a mortgage loan right away.

Must Read: 6 Steps of the Mortgage Loan Process: From Pre-Approval to Closing

What Are The Steps To Get A Small Business Loan?

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Since every business is different, the types, terms, and conditions for the loans vary widely. If your business requires a small business loan, you only need minimal paperwork to avail easy repayments, and attractive interest rates.

Here is a guide for you to understand how to apply for a small business loans:

Understand the requirement: You need to understand your affordability before you apply for a loan, when you need money for short-term needs, estimate your affordability by considering factors like the loan amount, loan term, interest rates, and monthly payments. You need to understand how much capital you can have to fulfil your debt.
Understand Eligibility: It is important to compare various lenders offering small business loans and their eligibility conditions. If you meet the eligibility conditions of a particular lender perfectly, you may be eligible for a loan of a high amount with a low interest rates.
Fill in the application: Most lenders, like Fullerton India, offer online application and disbursal of unsecured business loans. You can submit your application along with required documents online. The lender will get in touch with you to take the process forward. The amount will be disbursed to you electronically upon approval.

Additional Read: 6 Reasons why Small Loans are Good

How To Increase Your Personal Loan Eligibility?

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People, who have a bad credit history or not much of an income to show for their online personal loan application statement can find it hard to get a loan approved. However, there are still things that you can do in order to increase your personal loan eligibility. Here are the important factors on how to increase your personal loan amount.

Factor that Increase Your Personal Loan Eligibility are:

Income Stability – Banks and lenders prefer customers with stable incomes so they would recommend that you think about having extra savings before applying. If you really need a certain amount of cash then prepare yourself financially and show a stable income. Check your EMIs through a personal loan interest calculator to get more information.
Improve your credit score: Having a good credit history will really help you increase your personal loan eligibility. Getting a secured card and pay all of your bills on time is one way to show lenders that you are responsible with their money.
The Number of Credit Cards: If you have additional credit cards than most banks would prefer people who only have one or two active accounts as this is proof of proper financial management. Showing multiple cards could mean that you’re in debt for the rest of your life and it might be harder to apply for loans in the future.
Whiten Your Credit Report: Whitening your report includes paying down previous debts, keeping balances low or getting them removed from your record entirely if possible. When applying for a new loan, lenders look at your credit history to gauge your creditworthiness.

So improve your eligibility and apply for a personal loan rightaway!

Additional Read: How to Apply for Personal Loan Using Aadhar Card in 2021

What Are The Factors To Consider When Opting For Personal Loan Balance Transfer?

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At times, taking a personal loan leads to heavy burden and stressful life. To overcome this stress, borrowers take certain steps such as choosing the personal-loan balance transfer scheme. The (personal-loan) balance transfer scheme enables you to carry forward your outstanding loan balance at a new low rate of interest along with better features from another lender.

Usually, the main reason to have a personal loan balance transfer is to get a lower rate than the existing one, offered by any other financial institution.

But what are things that you must keep in mind when opting for personal-loan-balance-transfer?

Rate of Interest: The personal loan interest rate should obviously be lower than what is offered by the existing lender.
Processing charges and penalties: Check the processing charges of the new lender and the prepayment penalty charges of the old lender to ensure that the loss isn’t larger than the gain. This is applicable for the prepayment penalty charges as well.
The minimum amount of Loan: Check whether your account fulfils the minimum loan amount required to avail a personal loan balance transfer from any other lender.
Actual benefit on operation costs: Calculate what will be actual benefit after deducting all the processing and penalty charges that you’ll have to pay. A considerable gain here indicates that it’s actually worth going for such a big hassle!

Ensure that you read the documentation, terms and conditions of both lenders carefully before signing off on a personal loan balance transfer to avoid any unwelcome surprises in the future.

Must Read: what is the Pros and Cons of Loan Balance Transfers?

Ensure These Points When Taking a Personal Loan on Aadhar

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A personal loan is a great way to fuel unforeseen expenses such as medical expenses, travel costs for work or school, or simply to supplement your income. If you are looking forward to applying for personal loan on Aadhar card, then there are some basic things that you would need to know.

Points to Know When Taking a Personal Loan on Aadhar:

Getting a loan on your Aadhar Card is easy as long as you furnish proof of a stable income along with it. Your Aadhar card works as a residence as well as identity proof which is an important document requirement.
Check the eligibility requirements at your chosen lender’s website. You can do so by using their personal loan eligibility calculator as well. Most lenders have a minimum salary requirement, a healthy credit profile and a low debt-to-income ratio. If you meet the eligibility criteria perfectly, you can avail a higher loan amount at a comfortable interest rate.
Check if the EMI is comfortable for you. Understanding the EMI of your personal loan is extremely important. It helps you to plan your finances to the last rupee so that you don’t get any surprises later. You can use your lender’s personal loan EMI calculator to check your EMI and plan the structure of your loan.
Understand the application process: Most lenders, such as Fullerton India, have an end-to-end digital process. It means that from application to disbursal, everything is carried out online. Especially with the online application and disbursal, personal loans are now accessible at any time of the day.

Find out the lender’s requirements and apply for a hassle-free personal loan rightaway.

Additional Read: Reasons why to Opt for Fullerton India Instant personal loan

All You Need To Know About CIBIL Score For A Personal Loan

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CIBIL Score for a personal loan application is important. Before you decide to apply for a loan, make sure that you know everything about CIBIL score.

What does CIBIL Score Indicate?

CIBIL Score indicates your repayment capacity and the risk involved for the lender while giving you loans or credit card facilities. The more loans you have taken and repaid successfully, better your CIBIL Score becomes; similarly if all your repayments are arrears, it tells lenders that this borrower has already taken several loans and not paid them on time- thus poses a higher risk to lenders as well .So, your CIBIL Score dips.

Here is the meaning of your CIBIL score:

CIBIL Score 0 – No history (NH) or no credit track record available for the borrower. You can apply for a credit card or take a personal loan to open your file with CIBIL.
CIBIL Score -1 – Credit History Not Available (NA) where borrowers track record is less than 6 months. CIBIL records a minimum of 6 months of credit activity to make your credit score.
CIBIL Score between 700-900 – This is considered to be a good CIBIL score. It shows a history of healthy management of credit.
CIBIL Score below 670 – A score below 670 is considered to be a bad credit score. It is advisable that you improve your credit score before applying for a loan in such a situation.

Note: The above are only indicative and not to be taken as official CIBIL guidelines. Check with your bank regarding their CIBIL eligibility criteria and personal loan eligibility criteria for personal loans before making a decision.

Additional Read: Things you Should Know About CIBIL Score For a Personal Loan

How to Apply for a Digital Personal Loan?

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The internet is a good place to look for information or to make small purchases. Unsecured personal loans are readily available on the web, and applying for them online leaves out the need to visit any bank branches. Many lenders offer this service as they recognize the convenience it offers, but also because it makes sense from their perspective too.

Here are Two Ways in which you can Apply for a Personal Loan:

Online application through lenders’ websites: This is the most convenient way to apply for a personal loan. It requires you to fill in an online application form and submit it with the required documents. This approach saves you the hassle of having to visit branches and applying physically. Most lenders, such as Fullerton India, offer an end-to-end digital process. From application to disbursal, everything can be done online. Lenders also offer tools such as personal loan EMI or interest rate calculator and personal loan eligibility calculator to make things easier for borrowers.
Personal Loan Apps: In a move to make personal loans available to everyone, lenders offer instant personal loans through mobile applications. You can check your eligibility, fill an application, submit your documents, and track the application from the convenience of your phone. Some of the apps also help you get personalised loan offers from various lenders on one platform.

Personal loans are now available anytime and anywhere to fuel your needs. Check out the best personal loan offers on various parameters like interest rates, tenure, and other fees to make an informed decision.

Must Read: How to get a Fullerton India Personal Loan? – Step by Step Guide

How to Get a Personal Loan with a Low CIBIL Score?

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A personal loan refers to the amount of money that you can borrow from financial lenders for a variety of purposes, like paying off debts, meeting wedding expenses, or going on a vacation. It is very easy to get a personal loan, provided you meet the eligibility criteria set by lenders.

Meeting the rules and regulations of the lender is very important, as they have the key to unlock your loan. Before approving a personal loan, lenders verify many things and you need to go through all the checkpoints to get the funds sanctioned. One of the most important things is to have a high CIBIL score. Do you need personal loan with bad CIBIL score? Can you still get it approved? Read on to understand how to get a personal loan with a low CIBIL score.

How to Get a Personal Loan with a Low CIBIL Score:

Income Evidence for Loan Repayment

Income evidence like bank statements or salary slips can make the process of getting a loan without a high CIBIL Score hassle-free. While submitting your personal loan application to the lender, attach all your income evidence documents, which will assure the lender of your repayment abilities in spite of poor CIBIL score.

Get a Guarantor

If you have a low credit score, then you can opt for a guarantor with a good credit score. If the guarantor agrees, then the lender can approve your personal loan.

Low Personal Loan Amount

If you request the lender for a high amount of personal loan with a low CIBIL Score, then it’s not likely to be approved. This is because lenders doubt the repayment abilities of a borrower with a low credit score. However, if the loan amount is low, then you can convince the lender to provide you a loan.

Once your loan is approved even if your credit score is low, ensure that you pay it back promptly so that your CIBIL score improves. This way, it would be easier to get your next loan approval.

Must Read: Does credit score affect to your personal loan application?

Things to Check Before Availing a Personal Loan

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Quick personal loans are loans wherein the financial institution allows you to withdraw the requested loan amount immediately. It can have multiple benefits, but you should keep the type of loan and its associated rate of interest in mind before applying for one. You can apply for personal loan here: https://www.fullertonindia.com/personal-loan.aspx

Tenure

Another thing to keep in mind while thinking about taking a quick personal loan is tenure. Loans can have a fixed tenure or a variable tenure. If you have a longer tenure, that means you have to pay less money per month. However, you end up paying a lot more interest in all this way. If you have a shorter tenure, that amounts to higher monthly payments. This is true for the same loan amount.

Floating interest

Opting for this option means that the interest rate will keep on changing throughout the loan. This change has a direct cause-and-effect relationship with the market and the index. If planning to take a loan wherein the interest rate is already a lot, you should consider floating interest. There are good chances of the interest rate going down in such a situation.

Fixed interest

As the name suggests, in these kinds of loans, your interest rate remains fixed for the duration of the loan. This helps one to plan their finances better since they know and anticipate the loan price for its duration.

Consider all the factors at play here before making a decision: your monthly income, your monthly expenses, the interest rates, any assets you own, and others. Using a personal loan interest calculator makes this process easier.

Additional Read: 2 Scenarios When Instant Personal Loans Better Than Credit Card