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.
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How To Do Financial Planning For Weddings With A Personal Loan?

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Weddings are an elaborate affair with too considerable expenses on dress, decoration, food, venue and much more. Financing all this from your savings account can be a daunting task. It is where a personal loan can play a crucial role.

How to Plan for a Marriage Loan?

You may have meticulously planned every wedding detail, but have you given a thought on how to manage all the expenses? Here are a few essential things to consider before taking a marriage loan:

  1. Start early: Instead of waiting for the last moment, start planning your wedding expenses in advance. It will give you an estimate of the loan amount you require and arrange the documents required for the personal loan to cover wedding expenses.
  2. Avoid unnecessary expenses: Since there is substantial interest payable on a personal loan, you will avoid reckless expenditure on the wedding. 
  3. Don’t exhaust savings: Under no circumstances should you use your savings for your wedding. The personal loan will help keep your savings intact for emergency expenses. 
  4. Avoid paying hefty interest: If you are borrowing money for a wedding, avoid using your credit card or other overdraft facilities to create debt that comes with a high-interest rate. 
  5. Invest smartly: If you have savings, use the money to invest in mutual funds or other high paying instruments. It will help you to cover your loan cost. 

Wedding is a special day for both the bride and groom. Everyone tries hard to make their dream come true. But it is essential to take care that the dreams do not drill a hole in your pocket.

Also Read: 5 Tips to Manage Expenses of Marriage in a Simple Way

 

Why Taking a Personal Loan for Home Renovation Makes Sense?

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You can procure a personal loan for attending to a wide range of personal and leisure-centric requirements. However, pairing the same with home renovation makes the most sense as you might not be able to make refurbishments with a home or mortgage loan, as it puts the property at risk. In comparison, a personal loan is easy to procure and doesn’t require a lot of processing, if availed from credible NBFCs.

Here are some of the reasons why a personal home renovation loan is the most appropriate financial tool for your relevant requirements:

  • Collateral-Free

Personal loans are collateral-free as you do not need to put anything on the mortgage. Once you choose the loan amount and calculate the repayment liability, you only need to pay off the EMIs and keep reducing the financial burden. 

  • Simple Application

Unlike a home loan or any other financial instrument requiring mortgages, a personal loan for the home renovation isn’t hard to procure. You only need to keep the necessary documents handy and ensure that the credit score is on the higher side. Besides, if you have a good loan repayment history, you might even be eligible for a pre-approved personal loan. 

  • Easy Procurement

Needless to say, a personal loan is probably the easiest financial support to procure, provided the NBFC also projects a considerable online presence. Therefore, if you are planning to renovate a home, it is advisable to estimate the costs beforehand, set aside the personal loan documents, and apply for the concerned amount as per the eligibility. 

Regardless of the application approach you take, it is necessary to keep an eye on the credit score to ascertain the amount you are eligible for. 

Must Read: A Checklist to Check before Paint your walls in this festive season

Apply for Online Personal Loan in 5 Easy Steps

India has witnessed several changes in the last couple of decades, especially in the financial sector. With rapid digitalisation, everything has now shifted online, ditching the age-old lending system. With all the services online, one can now enjoy all the financial services from their homes’ comfort.

Are you looking for funds to finance your daily needs or family emergencies? Now you can get instant personal loan online. There are various lenders available online to choose from.

Apply for an online personal loan

To apply for an online personal loan, follow the steps mentioned below:

Step 1: Visit the lender’s website and browse over to the personal loan page.

Step 2: On the web page, click on the ‘Apply Now’ option. You will mention your mobile number for verification and choose whether you are a salaried individual or a self-employed professional.

Step 3: Fill the loan amount you want and the preferred repayment tenure. You can use the personal loan EMI calculator to know the monthly financial strain you will face in repaying the loan.

Step 4: Once the eligibility check is complete, fill in all the details in the application form. You will be required to mention your personal, professional and banking details.

Step 5: Upload the required documents for e-KYC and loan approval. Click on the submit button.

Based on your details mentioned, a customer care executive will call you to provide you with the loan amount, interest rate and tenure for which loan is available to you. On your approval, the loan amount will be directly transferred into your account.

Must Read: What is the concept of Prequalifying For Personal Loans? Learn here

4 Ways to Get a Better Interest Rate on Personal Loan

A personal loan has become the best financial tool currently to finance all your emergencies and expenses. However, as it is an unsecured loan, the interest rate payable for a personal loan could hold you back when you think to yourself, “I need a personal loan .”

Well, do you know there are ways through which you can get a better personal loan interest rate? Some of the tips are shared below:

1. Credit Score: A credit score over 750 is a great way to get an instant personal loan at competitive rates. A high credit score can help you in getting better interest rates on personal loans from lenders. It is also important that your credit utilization ratio stays under 30%. 

2. Stay aware of the market: Before applying for a personal loan, make sure to do your market research properly and then opt for the lender offering the best interest rate. 

3. Make timely repayments: The repayment history considered is not just for the current loan but also for all the loans you have taken in the past. A good repayment history reflects well on your profile and helps you get a lower interest rate. 

4. Working with a good employer: Your employer also impacts your interest rate. Working with a Fortune 500 company or an MNC makes your profile strong, helping you grab a lower interest rate on a personal loan.

These are some simple ways of getting a personal loan with a better interest rate. A good relationship with a reliable lender in the market can further strengthen your case for a loan at a reasonably low rate of interest.

Must Read: 9 Simple Tips To Increase Your CIBIL Score In India

How a Personal Loan can Be a Lifesaver in a Crisis?

In this fast-paced world, instant loans are the most viable financial instrument. Everyone requires instant cash to finance all their needs and emergencies, and what better option than a personal loan in India. 

A personal loan is an unsecured loan, so we are not required to pledge any asset as security. The loan request is sanctioned based on your past credit score and present income. 

Some of the reasons why a personal loan is a saver in crisis are:

  1. Sanctioned amount: Be it a medical emergency, wedding expenses, vacation or even business requirement, personal loan offers an amount that can fulfil all your needs.
  2. Flexible tenure: Unlike other loans, the repayment tenure for a personal loan is flexible. So, based on your choice, you can repay the total amount in equated monthly instalments.
  3. Flexible interest rate: The interest rate for a personal loan is not fixed; it varies based on your income, age and credit score. You can also negotiate with the lender and get your interest rate reduced.
  4. Easy approval process: Unlike other loans which require a lot of documentation and take weeks for approvals, the processing of a personal loan is quick. With minimum personal loan documents required, you can get hassle-free loan approval and also enjoy quick disbursal.
  5. One loan for all your needs: Personal loan does not have a restriction on the fund’s usage. You can use the loan amount as per your requirement.

Many people shy away from a personal loan. However, it is a much safer option than managing all your expenses through a credit card. You can apply for any reliable lender in the market and enjoy the benefits mentioned above.

Must Read: How Borrowers Can Make Money By Availing A Personal Loan?

What Factors Are Considered By Lenders For Business Loan Approval?

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With so many start-ups coming up every day, getting enough funds to keep them running and growing is essential. One of the best options is to borrow a business loan. However, they are some factors considered by lenders for your business loan approval.

Factors affecting business loan approval

Before offering an online business loan, lenders very carefully review the application of the borrower. It helps to assess the repayment capacity of the businesses. Some necessary factors to consider are: 

  1. Credit History: A vital factor for business loan approval is credit history, which indicates the borrower’s creditworthiness. So, you or your business must have a good credit score. A low credit score can considerably reduce your chances of getting the loan. Therefore, try to maintain the score between 700-750.
  2. Collateral: Personal loans fall under unsecured loans’ category. However, there are some secured business loans which require collateral like a real estate property or high-value business machinery.
  3. Business cash flow: The lenders also evaluate the cash flow of the business. It acts as a driving factor for approving a business loan. A low cash flow is regarded as risky. So businesses have to provide a bank statement to give a clear understanding of the cash flow.
  4. Documentation: Each business has some documents that contuse to grow with its expansion. The lenders require identity proof, address proof, business license, financial documents, business ownership proof and more.

Conclusion

If you are looking for a business loan, understanding these factors will help get a faster loan approval without much delay. An online business loan calculator will help you determine the loan terms.

Additional Read: How To Get a Lower Interest Rate on a SME Business Loan?

 

How Loan Against Property EMI Calculator Work

A loan which can be availed by keeping a property, commercial or residential, as collateral is known as a loan against property. It is a form of secured loan, in which the owner of property pledges the asset to the lender, while not losing their rights on the property. 

While Loan against property is a very common financial tool, it is important to be very careful while choosing your lender. One of the ways to do it is using a loan against property calculator.

Loan Against Property calculator

LAP Calculator is an EMI calculator which helps you know your monthly repayment amount to be made, in return for the loan amount borrowed. This can either be done manually by the applicant or through the various EMI calculator tools available online.

  1. Calculating EMI Manually

These are the parameters required to calculate the Loan Against Property EMI:

Amount of the loan sanctioned (P)

The interest rate being charged on the loan (r)

Repayment Tenure (n)

To calculate the EMI you can use the following formula:

EMI = P × r × (1 + r)n/((1 + r)n – 1)

  1. Calculating EMI through an online tool

For calculating the EMI through online too you will be required to know 

Loan Amount sanctioned (P)

The interest rate on the loan (r)

Repayment Tenure (n)

After filling all the details in the online tool, you will know the exact EMI. 

Conclusion

You can also adjust the three parameters and come to a final value of EMI that you think you can afford to pay with the other monthly expenses. 

Must Read: 6 Factors to Help Decide the Tenure of your Loan against Property

3 Things to Know Before Applying for Two Wheeler Loan

The rapid evolution in vehicles’ technology and the craze for two-wheeler loans has led to increased loan applications. It is important to know about a few things before applying online for a two-wheeler loan.

Why take a two-wheeler loan?

  • In the pandemic, a situation where one must maintain social distancing, it is a safer and much more economical solution to commute on the bike rather than using public transport.
  • With two-wheelers, you can avoid all traffic and wait for less at the traffic signals.
  • Their maintenance cost is much lower than four-wheelers.
  • The rate of approval for loans for bikes is higher than those of four-wheelers.
  • The pollution caused by two-wheelers is lesser than in four-wheelers due to better fuel efficiency.
  • Offer great resale value.
  • They are much easier to park and offer better mileage.

Things to keep in mind

Before applying for a bike loan, here are some key points to keep in mind.

  1. Check for low-interest rates: Different lenders offer different rates of interest. You must choose the lender with the lowest bike loan interest rate. It will help in reducing your monthly EMIs.
  2. Know your requirements: Only borrow the amount you need for the bike purchase. Overborrowing can cause you excess financial burden and increase your EMI.
  3. Plan your repayment: Instead of just procuring the loan, decide how you will be repaying it also.

Conclusion

Bike loan is a great option to choose at the time of the pandemic. With so much competition in the market, the above points will help you choose the right lender.

Must Read: 6 Benefits Of Two Wheeler Loans You Should Know About

Why Purchase a Two-Wheeler Through a Personal Loan?

Most people look for financing their purchase of a two-wheeler with a bike loan. If you are someone who does not have an asset for security and want to buy a two-wheeler, then a personal loan is your best option. 

Why choose a personal loan for a two-wheeler purchase?

  1. No collateral: A personal loan is an unsecured financial tool, where you are not required to pledge any security. Based on your application form, uploaded documents and the credit score, a personal loan can be availed easily. 
  2. Completely digital: With a personal loan, you can skip all the long lines and apply for the loan digitally. Also, the personal loan processing and disbursal is a very quick process since no collateral verification is required.
  3. 100% road price: For a 2 wheeler loan, the borrower is required to give a down payment. However, with a personal loan, you do not have to get in the loop of down payment and directly pay the entire bike cost upfront. 
  4. Simple eligibility criteria: The eligibility criteria for a personal loan are fairly simple, and if you have a good credit score, your loan approval chance at a reasonable interest rate is assured. 
  5. Flexible EMI and shorter tenure: With a personal loan, you get the freedom to choose your own tenure. You can either keep it small for faster payment or long if you do not have enough cash. You can use the bike EMI calculator to determine the monthly repayment amount.

Conclusion

Though the interest rate for a personal loan is slightly higher, it is a great option even if you want to buy a brand-new or second-hand two-wheeler.

Must Read: A Smart Approach to Select Your Two-Wheeler Loan Tenure

What Are The Charges On Loan Against Property?

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The Loan Against Property is a great financial tool because it is easy to use and serves as a useful source of financing. However, to plan your expense efficiently, you should know the various charges applicable on loan against property & its interest rates. (Checkout LAP interest Rate)

Charges on Loan Against Property:

  • Loan Against Property Interest Rate

When the lender provides money to the borrower, an interest rate is charged. This is calculated on the total amount borrowed and until the repayment period. The Interest rates are calculated annually and then added proportionately to each EMI.

  • Processing Fees

Also, known as application fees, this covers the administration costs, cost of carrying out credit checks and property appraisals, etc. The processing fee is a negotiable amount about which you can consult with your lender.

  • Statement Charges

The lenders send you a hard copy of the principal amount, interest rate and loan statements for which specific charges are levied. You can avoid these by switching to online loan management.

  • Penal Interest

After disbursal of loan, you are unable to repay the EMI or default on the loan, then a penal interest is charged. The interest is over and above the already mentioned interest rate and is calculated on monthly basis. So, it is important to plan your repayment.  

  • Foreclosure Charges

If you want to pay off your entire loan at once, then some lenders also charge foreclosure charges. So, ensure that the loan you choose has a low foreclosure charge if at all, to make repayment simpler.

Conclusion

These are some charges on the Loan Against Property, that is why choosing the right lender is important. With that, you can void certain charges and reduce your financial debt.

Additional Read: Five Golden Rules to Follow While Taking a Loan against Property

Things You Will Be Asked When You Need A Business Loan

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Each day thousands of start-ups start with a vision and aim to make it the next best technology that the humans will be introduced to. While an idea is important, one also requires funds to make the idea into a business. This is where you will e required to apply for the business loan.

Before you take the business loan, know about the details you will be asked when you need a business loan.

  1. Collateral: Lenders do offer loan to businesses, but to reduce the risk, you will have to pledge and asset as collateral.
  2. Business plan and financials: No lender offers a loan without knowing the feasibility and the aim of its makers. This is where you will have to submit your business plan, it can also be a summary. Along with this, you need to inform about your expenses, your receivable and other financials that may be important to prove the credibility of your business.
  3. Personal Finance information: These details will include the details of your assets, vehicles, investment accounts and many more. In the case of multiple owners, the personal finance of each owner is to be submitted.
  4. Insurance Information: To aid risks, the lenders also prefer to advise the business to take insurance in case of death of any owner.

Conclusion

A business loan is a great tool that helps finance all your necessary expenses like buying equipment, renting, salary and others. Remember to keep the above points in mind when you apply for the loan.

Must Read: Business Loan vs MSME Loan: What’s the Difference?

How Much Mortgage Loan Can I Get?

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It happens that sometimes there is a sudden need for money, we get the idea of taking a loan. But which type of loan is suitable at that time is a big issue. If you live in your house and you need money for some work, then you can take a loan by mortgaging that house with financial institutions. This type of loan is known as a mortgage loan.

Factors affecting mortgage loan eligibility:

  1. Applicant’s Age- One of the critical factors for a mortgage loan is age, which the lender considers before deciding your mortgage loan amount. As the mortgage loan is taken for longer periods, so it is necessary to get into the position early to pounce on the opportunity
  2. Income- Income is also an important factor. While there is no specific income criteria, a reasonably good source of income will get you a mortgage loan.
  3. Down Payment- Normally every lender offers a mortgage loan which is 70-80% of the property value. So, make sure you have got your down payment covered.
  4. Property Location- The location of your property also determines your mortgage loan amount. A property in the positive list of lenders to get hassle-free loan approval. 

How much loan can I get?

While various factors influence the mortgage loan, however, the final loan amount will be the financial institution’s decision solely. For all the details you can call or visit the nearby financial institution’s branch and get all your queries and complaints resolved at the earliest. 

Additional Read: 4 Things to Know Before You Get a Mortgage Loan

MSME Loan: An Ideal Choice for Small Business Owners

So many new businesses are coming up each day, and with that is arising the need for capital to fund these businesses. While looking for an investor is not a choice for small business owners MSME loan is the best option. Let us see why. 

MSME loan features:

To encourage MSMEs, the government of India, in collaborations with other financial institutions have started different schemes offering business loans to MSMEs in India. Let us see the features of MSME loan:’

1.      The MSME loan has minimal eligibility criteria to qualify for the loan.

2.      The MSME loan also helps small businesses save on certain taxes. 

3.      As the loan is driven by the government of India, equal opportunity is provided to each business. Startup business loans for women are also provided under it. 

4.      The MSME loan helps in providing funds to small businesses for capital growth. 

No matter what your business is, the funds from MSME loans can be used for any kind of business requirement.

Qualifying criteria for MSME loan:

To qualify for the MSME loan, the requirements areas follows:

∙        A proper Business plan

∙        A registered business

∙        Profit and loss statement

∙        Last year’s ITR filed for your business

∙        A good credit history

∙        Certificate from all the authorized bodies

∙        Your permanent address proofs

∙        Sign of co-borrower (if any

∙        Collateral documents (if required)

∙        Bank Statement

∙        Business should have a realistic projection.

∙        The business should have an end-use of funds.

The government has released various schemes like Stand-up India, Pradhan Mantri Mudra Yojana (PMMY), MSME Business Loans for Start-up’s In 59 Minutes and many more that offer MSME loan to businesses. Based on your requirement you can make the best of these schemes to fund your own business.

Must Read: Follow these Easy Steps to Get A MSME Loan

Why Instant Personal Loan Is A Great Choice For You?

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Personal loans are one of the best financial instruments which you can utilize to upgrade your lifestyle. If utilized judiciously, personal loans incorporate a financial discipline in your life which allows you to achieve your financial goals in a systemic manner. Financial institutions, like Fullerton India, provide great schemes for personal loans at attractive interest rates.

You can check for the best schemes using a personal loan EMI calculator online. The following are some of the reasons why taking a personal loan is a great choice for you.

Reasons to Take Personal Loan:

  • No Collateral

A personal loan does not require you to keep collateral against your loan amount. Hence, you can easily take a loan without putting your personal asset on the line.

  • Digital Convenience

The digital transformation of financial systems has made taking a personal loan an extremely convenient exercise. The entire process gets completed on your laptop or smartphone while sitting in the comfort of your home. One can install personal loan app on their handset and apply for loan easily.

  • Affordable Rate of Interest

Personal loans have a very affordable rate of interest. You can check for different rates of interest being offered by financial institutions using a personal loan EMI calculator.

  • Minimal documentation

Bare minimum documentation is required to apply for an instant personal loan. The documentation includes identity proof, address proof, PAN card and income proof. All these documents can be uploaded from your laptop or your smartphone.

Hence, taking a personal is not only convenient but is also very affordable. Right from covering for your short-term financial needs to buying the next costly gadget, you can apply for a personal loan to reach any of these financial milestones of your life.

Must Read: 5 Types of Personal Loans That you Can consider

5 Ways In Which Mortgage Loan Benefits Veterans

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Veterans are individuals who deserve respect and all the applause for their service to the nation. If you are a veteran who is looking for a loan, then there is good news you can now avail mortgage loan which comes with unique benefits making it easy for you to get keys for your dream house. Let us learn about the benefits exclusive that veterans enjoy with Mortgage loan.

Benefits of Mortgage loan for benefits

  1. No Down Payment

One of the things individuals struggle with before buying a house is saving for a down payment. While the option for zero down payment was earlier available for all, however now things have changed, but not for veterans. With no necessity for a down payment, you do not have to take money out from your savings or retirement emergency fund. You can also use your savings for repairs and renovation later. 

  1. No Private Mortgage Insurance

For lenders who cannot give 20 percent of the quote home price, have to get private mortgage insurance added to the total loan amount, for the risk of the loan being defaulted. However, with the veteran mortgage loan, as the federal government backs the loan, the risk is eliminated. 

  1. Basic Allowance for housing

The veterans are offered a basic allowance for housing, which can be counted as a source of income. This allowance can also be used for making the mortgage payment. 

  1. Better Interest rate

Apart from the above-mentioned benefits, veterans also enjoy favorable mortgage loan interest rates. Due to the government backing on these loans, the risk of failure is low, which is why lenders charge lesser interest rate of Mortgage Loan for veterans.  

With so many benefits, for veterans building a dream house is easy and simple. If you too are a veteran then you can now visit your nearest lender, or apply online for a Mortgage Loan and get all the above benefits. 

Must Read: 5 Types of Mortgage for Homebuyers: Which One is Best for You?

All You Should Know About Loan Against Property

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With a loan against property, you can get funds for your emergencies by placing your property as collateral. Before you opt for a loan against property, these are some points that you should know about it.

5 things about Loan Against Property

  1. Know the value of your property
    Before you use your property as collateral, make sure to know the value of your property, so that you can get a better deal on your loan. Some things to know about your property are the age, the locality it is situated in, the reputation of the builder, size, and amenities offered. 
  1. Check various lenders:
    Different lenders have different terms and conditions for the loan against property. So, it is important to check various lenders that are available, and the interest rate, the loan amount they are offering you. Even the application process for LAP is smooth and simple.
  1. Eligibility criteria:
    For Loan Against Property, the eligibility criteria are the same as that of a personal loan. However, more focus is done on the property you are using as security.
  2. Multipurpose Loan:
    There is no fixed purpose for which Loan Against property can be used, so this is a multipurpose loan which can be used for healthcare, business, and many more.

  3. Loan available for all:
    The Loan against property is available for both salaried as well as business professionals. 

Loan Against Property is a great financial tool for your emergencies. So, if you are interested in opting for it, the above points will help you get the much-needed information about LAP. Make sure you choose a lender who fulfils your criteria and then chooses wisely. 

Must Read: How to Get a loan against property from Fullerton India?

Get Quick Approval for Business Loan – A Step by Step Process

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Running or starting a new business requires a lot of capital. The initial cost of setting up the infrastructure and operating for the first few months without a lot of profit are too hard to manage. Getting an instant business loan is very easy these days. Financial institutions offer personal loans for business at a very low rate of interest. If you are planning to apply for a personal loan, then the following step-by-step guide will help you in getting a quick approval. 

Step-by-step process for Quick Approval for Business Loan

  1. Understanding the Types of loan you want

There are different types of schemes available. Whether you want a term loan, a cash credit facility, an invoice discounting or you want to go for Government backed initiatives will decide the type of application you have to fill.

  1. Research

Doing an initial research online will save you a lot of time. You can choose the best scheme that is being offered by one of the best financial institutions and straightaway apply on their website.

  1. Importance of Credit Score

You should know your credit score and keep it higher than the threshold required to apply for a loan. A good credit score will ensure that your loan gets processed without any roadblocks.

  1. Collateral

Ask your lender if any collateral will be required for the loan. Prefer a lender which does not take collateral for a small amount of loan. Avoiding collateral will save a lot of time and the processing can be done very quickly.

  1. Documentation

If you apply for an instant business loan, then the entire application can be done through online mode. If everything is found in place, then the processing can be completed in the next 48 hours.

Follow these 5 steps to get quick approval of your personal loan.

Additional Read: 7 Benefits of Having an Online Presence for a Business

Benefits of Loan Against Property

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Loan against property is a convenient way to get a loan at lower interest rates than personal loans. Unlike the personal loan, where no collateral is required, in LAP the loan is taken against property i.e. you keep your property as security in case you are not able to pay off the loan in the allotted time period. You can apply for LAP here: https://www.fullertonindia.com/loan-against-property.aspx

Benefits of Loan Against Property

If you have some property in your name, which you can use as security, a loan against property is one of the options. Some of the benefits of LAP is: 

  1. A loan against property is a secured loan. 
  2. As the property is kept as security, the interest rate is lower than a personal loan. 
  3. The tenure for repayment of the loan amount is more than in any other loan. You can also extend the time line up to 15 years. 
  4. The EMI loan Against property is lower than other loan types.

Disadvantages of Loan Against Property

While loan against property is a great way to finance your expenses, it comes with its set of disadvantages which are:

  1. The amount that one can borrow is directly proportional to the property kept as collateral. 
  2. The income laws are strict in the case of LAP as that is the only eligibility norm. 
  3. The evaluation of the property is done by the lenders themselves, and thus the value is lower than the actual market value. 

So, like any other loan, LAP also comes with its set of pros and cons. It is important that before you make any decision, make sure to evaluate both, and then decide accordingly. You can use the mortgage loan calculator to get a better idea. 

Must Read: 6 Common myths about loan against property you need to stop believing

Things To Know Before Applying For A Personal Loan

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A personal loan is an easy and simple unsecured financial instrument to finance your emergencies. While it offers attractive rates, flexible repayment time, and lots of other benefits, there are some things one must know before applying for an instant personal loan like, eligibility criteria, personal loan required documents, require credit score and much more. Here is a list.

Things to know about Personal loan

  1. Maintain a Good credit history: As it is an unsecured loan, it does not require any collateral. Your loan details will depend on your credit history. Good credit history will make it easier for you to get the loan at a lower interest rate.
  2. Consider your needs: It is important to know why you need the loan, and how much loan you need. Evaluate your needs as well as your expenses, this will give you a good idea about what to expect in the future. Your needs will determine how much loan amount you need to meet your expenses. Your expenses will help you understand how much EMI you can pay for the loan, thus finalizing the tenure you want for the loan.
  3. Comparing competitors: There are various digital and offline lenders available in the market. Different lenders offer different services and interest rate for the loan. So based on your requirements, you should compare the lenders and then make a final decision.
  4. Access all the costs: Apart from the loan amount and interest that you have to repay in the form of EMIs, you must ensure to access all the costs. These can include some processing fees, prepayment fees, and late payment fees involved.

Once you have thought over everything about the loan, you can upload the personal loan required documents and submit your application. 

Must Read: Questions To Ask Before Taking A Personal Loan In Pune

Additional Read: The Merits and Demerits of Personal Loan Refinance

Does my Salary Impact my Personal Loan?

One of the easier loans that one can avail of is a personal loan, which is an unsecured loan that does not require any collateral, however, there are certain eligibility criteria that the lender takes into consideration to ensure the repayment of a personal loan. 

How income affects personal loan

While applying for a personal loan is easy, getting it approved, and sanctioned can be challenging. The final approved amount depends on various factors, one important among them being your income. Let us see how your salary can impact your personal loan

  1. The more your salary, the higher is your chances of getting a personal loan approved. 
  2. Higher-income also provides the flexibility to choose your repayment tenure. 
  3. Your interest rate on a personal loan will also depend on the salary. A higher salary ensures higher repayment capacity.

What is the minimum salary required for a personal loan?

If you are applying for Fullerton India personal loan, it is available for both salaried as well as self-employed professionals. The eligibility criteria for all eligible applicants above the age of 16 is as follows: 

  1. For applicants residing in Mumbai and Delhi, the minimum salary for a personal loan is Rs 25,000 per month.
  2. For applicants residing in other locations except for Mumbai and Delhi, the minimum salary for a personal loan is Rs 20,000 per month. 

Normally the loan amount eligibility is 30 times the monthly income. While salary plays an important factor in your personal loan, it may vary for each lender.  You must also ensure that you have a good credit history and check with the lender before you apply for a loan. 

Must Read: How to Get an Unsecured Loan? Here’s a Guide

Why Choose Online Personal Loan from Fullerton India

Fullerton India, a non-banking financial company, dealing with financing across retail and rural segments. With their online personal loan facility, you can now finance all your emergencies with ease and simplicity.

Why choose Fullerton India?

After establishments name as one of the most reputed Financial institution due to its decades of experience, Fullerton India decided to make borrowing convenient with its online service.  The service is really helpful for corporate employees with a good CIBIL score who do not have time to visit the bank to get their loans approved.

Services offered by Fullerton India

1.      Completely online personal loan: With the online service offered, you can now get all your paperwork done online without must hassle. From application form filling, to document uploading and tracking the loan application now all be done online.

2.      Personal loan Calculator: With the personal loan calculator, you can now fill in your loan amount tenure and get a prediction of the monthly EMI that you might have to play against the personal loan. This will give you a better idea about the personal loan liability you are signing up for. One can install Fullerton India Personal Loan App and apply for the loan easily.

3.      30 mins loan disbursal: With the complete online application, the Fullerton India also offers 30 mins loan disbursal in your bank account, once your application has been approved. So no more waiting for your finances, get quick and fast cash.

With so many services and a quick online application, Fullerton India is you go to a lender for all financial emergencies. Make sure you read all the terms and services and accordingly apply for the loan.

Must Read: 5 Steps To Check your Personal Loan Eligibility Online

Reduce your Monthly EMIs Using Personal Loan Balance Transfer

As easy it is to get a personal loan, managing and repaying it can be difficult due to the high-interest rate. Which leads to applicants looking for alternate ways to reducing their outstanding debt. While there can be many ways, one of the most common is to use the personal loan balance transfer.

What is a Balance Transfer?

A personal loan balance transfer is transferring the current personal loan to a comparatively lower interstate. This leads to a reduction in your monthly EMIs. As simple and beneficial as it may sound, it also leads to a change in the terms and conditions of the loan.

Benefits of Balance Transfer

You can easily get a personal loan from various lenders; the balance transfer option helps you get a fresh chance to ease your EMI burden. Some of the benefits of Balance Transfer are:

1.      Reduced Tenure:

Each lender can have different balance transfer terms, based on the terms of your lender you can expect a marginally reduced loan tenure with Balance Transfer. While this may be good news as you will be debt-free sooner, it can also be stressful for many. However, if you have opted for a long-term repayment period then the balance transfer can really be in your favor.

2.      Lower Interest rate

If you are feeling bogged down by your high monthly EMIs then, the balance transfer can be of great help in transferring your existing loan to a different financial institution at a lower rate. However, make sure that you are using the personal loan EMI calculator to get a holistic idea of the new loan terms before you opt for a balance transfer. Certain additional factors like processing fees, loan tenure, or other charges must also be taken care of before you take the step.

3.      Increase in Your Credit Score

Dragging the personal loan for long can somewhat negatively affect your credit score and hamper future loan chances. However, transferring to a different institution will increase your credit score, leading to more credit options in the future.

Most of the financial experts believe that balance transfer of personal loan can be a good move in the long term and make your finances better. Make sure you go through the pros and cons of the deal before you make the final decision.

Must Read: 9 Surprising benefits or advantages of taking a Personal Loan

What are the Different Types of Loans in India?

As we grow so do our needs, for this we look for various credit options available in the market. There are various options available, which will make it easy on your pocket to fulfill these needs. One of the best options to fund your dreams is to take a loan.

Different types of loans

While broadly there are two kinds of loans: secured and unsecured, they can be sub-categories into various others based on your needs. Let us discuss the same.

1.      Home Loan: Buying a dream house is everyone’s fantasy, but saving so much can take a long time. So, a better option is to apply for a home loan that will take care of your home and will also save on your taxes.

2.      Auto Loan: This loan will help you in owning your dream vehicle. This loan is mainly taken to purchase to car.  

3.      Business Loan: This loan is taken for all your urgent financial needs in your venture. This loan can be used to buy new equipment, upgrade your office space or start a new business.

4.      Personal Loan: Also known as an unsecured loan, this loan can be availed without any collateral. A personal loan can be availed for any purpose like a vacation, education, medical emergency, etc. The current personal loan interest rates are higher but are for all your needs.

5.      Gold Loan: As the name suggests, this given is against gold. The loan can be used for various purposes starting from medical emergencies, education, starting a business or many more.

These are some of the loan options that you can avail of based on your requirements. Make sure you visit the lender before you apply for any loan, to know the terms and conditions. 

Must Read: 6 Reasons Why People Are Applying for a Personal Loan?

All you Need to Know About Pre-Approved Loan

Now and then you might have received emails and messages about pre-approved loans. While some of them might be fake, some are actually sent by lenders. Wondered why?

Let us learn more about the pre-approved loan. Pre-approved loans are zero collateral short-term loans provided by lenders to their loyal customers who have a good credit score. 

What are the key features of pre-approved loans?

If you have a personal loan requirement and not sure how to get one, a pre-approved loan can help sort your problems. Some of the features of pre-approved loans are:

  • Minimum paperwork: With a pre-approved loan you do not have to worry about any documents or paperwork. Based on your credit score you already have a loan with zero paperwork. 

Fast processing: The pre-approved loan can be processed fast and with minimum hassle. 

  • Simple application procedure: While many other loans have long application forms that you are required to fill, the pre-approved loan requires just some personal details, and you are done.
  • Favorable interest rates: As the pre-approved loans are after taking care of all the necessary details like credit score, the interest rates are favorable and EMI is easy to pay, which you can calculate your EMI using the Personal EMI calculator.

Pre-approved loans can be a lifesaver for your financial requirements as the approval takes less time. With only just a click you can get all your finances sorted. But make sure you check all the details before you go for the pre-approved loans. 

Must Read: What Are The Factors That Affect Personal Loan Interest Rate?

Need Funds for your Startup? Explore the Loan Against Property Option

The funding gap is a problem faced by most start-ups as there is a wide chasm between the number of funds needed and the number of funds available for such companies. While the fund needed is very high, funds are not so easily available. Such lack of funds often demotivate the owners of the company as they are unable to execute their ideas and visions. However, such a problem of the funding gap can be solved by using a loan against property or property loans.

How can a loan against property help?

A loan against property allows the start-up founders to obtain a loan against an asset that is lying idle. Since loans are secured by the property, the banks are willing to give a higher amount of loans at lower rates as compared to personal loans. A high-value property and a respectable credit score can allow you to obtain such loans easily.

Loan against property calculator also is less troublesome for the borrower as interest rates are much lower as compared to the personal loans. This allows for longer tenure loans as well as a reduced financial burden on the entrepreneur. The entrepreneur also has minimal restrictions regarding the usage of such money. A bank might restrict the fund usage in case of a car loan or home loan, however the same is not an issue in case of loan against property.

A loan against property can prove to be the white knight for a beleaguered company and startup. Apart from the lower interest rates, it allows the owner to concentrate on their business and steering it through rough waters.

Additional Read: Here’s How You Can Avail Tax Benefit On Loan Against Property?

FAQs

Do Indian banks/NBFC give a loan against property for doctors?

How does loan against property work?

What is the Income Tax Benefits on Personal loan?

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A personal loan is also referred to as unsecured loans as they do not require any collateral and easily available to all for financial emergencies. While a personal loan can be your saviour during a cash crunch, let us learn its benefits on income tax. 

Is a Personal Loan Taxable?

As a personal loan is not considered income, it is not taxable. However, it is always advisable to take a personal loan from a reputed lender to avoid any tax deduction on your loan amount. You can apply for loan here: https://www.fullertonindia.com/personal-loan.aspx

Can one avail tax benefit on personal loan?

While many of you may deny, but apart from many other benefits, personal loan online apply also helps in reducing your tax liability. This can happen if you put the loan amount to a specific end-use. As per the Income Tac Act,1961 tax benefit can be availed on personal loan if it is put to the following use: 

  1. Business Expansion

If the loan amount is being used to meet the expenses related to business expansion, which in turn will help in increasing the revenue of the business. Then you can claim a tax deduction for the interest you are paying on the personal loan.

Must Read: 5 Reasons Why Borrowers Choose Fullerton India NBFC for Personal Loans

  1. House Renovation

If the loan amount is used for home renovation or improvement, the interest paid up to Rs 30,000 can be claimed as a deduction. If the renovation is for a residential house then a deduction of up to Rs 2 Lakh is allowed for interest paid. You can use the Personal loan EMI calculator to learn your interest paid. 

  1. Purchase of other assets

If the money borrowed is used to purchase an asset like non-residential house property, gold jewellery, or shares, you can benefit from the exempted tax on the personal loan. 

 So, while the personal loan is unsecured and is not taxable, if used judiciously it can offer great tax benefits.

Additional Read: 2021 May Months Automobile Top Links

FAQs:

Is a personal loan secured or unsecured debt?

Know Reasons why to Secure your Loan Against Property

A loan against property is a secured loan that can be obtained by any individual or corporation by putting up their property as collateral. A property loan may be obtained for a variety of purposes including personal expenditure, business purposes and even to pay off other loans. (checkout your LAP documents here)

As compared to other modes of loan, loan against property holds certain distinct advantages that make it favorable. 

  • LAP is easier to obtain:

A property loan is generally easier to obtain as compared to a personal loan, business loan, or education loan. Since LAP involves collateral, the financial institution is more relaxed with regards to the recovery of such loans granted. Loan against property documents required is quite less as compared to personal or other loans. 

  • The borrower will get the advantage of lower interest rates:

Since the loans are secured against a property and the loan granted is less than the value of the property, financial institutions are more likely to give you lower interest rates. This is in stark comparison to education loans or personal loans which have high-interest rates. 

  • Flexible tenures: 

A property loan may be granted for upto 20 years by certain lenders. This allows the borrower to pay a lower EMI initially and in case of the betterment of financial condition can pay off the loan. The longer tenure though is very useful in the initial years of the loan. 

A property loan might be a solution to stop short term problems or take advantage of opportunities. The above benefits make it more attractive and increase its demand amongst the consumers.

Must Read: What are Difference between Home Loan vs. Loan against Property

Ten Reasons Why You Should Take A Loan Against Property to Pay Off Loans

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There could be instances when one needs a large amount urgently. Funds could be needed to deal with business losses or for business expansion or an impending wedding or for foreign education. If one has property available, rather than selling the property to arrange for the funds, one can take a property loan for the convenience. 

Here are ten reasons why a property loan or a loan against property is useful:

  • A high LTV: 

A loan against property is generally sanctioned up to 90% of the property value which allows for a higher loan to be obtained. 

  • Lower rate of interests:

 The interest rate of a loan against property is lower than a personal or unsecured loan. Such a loan against EMI calculator will easily show the benefit of the same. 

  • Secured Loan:

Since the loan is secured against property, financial institutions have easier norms. 

  • Possibility for higher tenure: 

The security of the property allows financial institutions to provide a longer tenure for repayment thus easing immediate financial pressure on the borrower. 

  • Prepayment is allowed: 

Loan against property allows for pre-payment and thus the borrower can prepay as and when the financial situation strengthens. 

  • Single loan instead of multiple loans: 

Since a loan against the property can be obtained for a higher amount, it can be used as a mode to repay other loans. This will result in a single EMI instead of multiple EMI’s. 

  • Easy approval as opposed to personal loans: 

Property loans are generally easily approved as compared to personal loans due to the security of the property. 

  • Faster disbursement: 

The easy approval results in faster disbursement allowing the user to make use of such an amount and take advantage. 

  • Top-up facilities can be availed: 

Users can choose to borrow until a certain percentage of the property and keep the option of top-up open for the remaining portion. 

  • Tax benefits in certain cases:

Interest and charges for such loans can be claimed in Income Tax if used for business purposes and can also be claimed against House Property if loan obtained for such purpose. 

Selling a property could take time. It may also be a convoluted process. Therefore it makes sense to acquire a property loan and arrange funds quickly.

Additional Read: Here’s how you can avail tax benefit on loan against property

Different Ways to Calculate Your Personal Loan EMI

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A personal loan is often obtained in case of emergencies or when one is in urgent need of funds. The onset of COVID-19 has compounded such a need for many people in the country. However, before obtaining such a personal loan, it is wise to be aware of the total payment to be made over the tenure of the loan.

Such information can be calculated using the EMI which is to be paid monthly to the financial institution. The EMI along with the schedule of payment is given with each loan however, the borrower must be aware of how EMI is calculated. This will ensure that a borrower makes an informed decision.

Manual calculation of EMI

One can either set up or use a personal loan EMI calculator using an application such as Microsoft Excel. Or use one of the myriad calculators which are available online.

Firstly, let us understand how an EMI is calculated. The formula for calculation of EMI is dependent on three main factors i.e. the amount of loan taken, rate of interest as well as time to repayment. Such formula is as follows:

EMI = [P * R * (1+R)^N] / [(1+R)^N-1      

Where P = Principal

R = Rate of Interest

N = time period

Calculation in Excel:

Apart from such manual calculations, EMI can also be calculated using the financial function in excel which can provide the data instantly.

Online Calculators:

EMI can also be calculated using online calculators wherein the user has to merely enter the details regarding the loans to calculate the EMI. The user can also know different EMI by changing tenor of loan, interest rate or principle to suit their need,,

An understanding of how EMI is calculated and basic knowledge of its computation enables one to become better informed and avoid being taken for a ride. With several personal loans being sold online, a personal loan EMI calculator turns out to be a handy decision making tool.

Must Read: 5 Tips to Acquire Attractive Deals on Your Personal Loan Interest Rate

FAQs:

What personal loan lenders accept referrals for money?

Will a personal loan build more credit?

Taking an Education Loan? Here are do and dont’s to keep in mind

Several Indian families aspire for their wards to study abroad. Acquiring education from a credible foreign university opens up several opportunities. Most of these universities have world class professors, do cutting edge research, possess excellent infrastructure and have enviable industry linkages.

However, it may not be possible for many families to arrange for the expenses from their savings. Some applicants might receive scholarships whereas most applicants may apply for an education loan whereas others may apply for a personal loan for higher education.

But one needs to keep the following do’s and dont’s in mind before securing an education loan.

What you should do?

  1. Check the legitimacy of the university selected:

Newspapers and media have been often rocked with the news of students being duped of a non-existent university. Along with care in the selection, of course, the student must also thoroughly research the university to ensure their money doesn’t go to waste.

  1. Select the course properly:

Students often swing between one course to the next if such a facility is available. The student must select their core subjects carefully and not follow the herd. 

  1. Reasonable salary expectations:

Foreign education is often associated with a high salary and growth later in the years. However such expectations must be tempered to avoid disappointment.

What you shouldn’t do?

  1. Put up the house as collateral for an education loan:

Borrowers must be careful in providing assets against their loans. The provision of a house against such a loan is generally not advisable as an issue with repayment of such a loan could leave the applicant homeless.

  1. Take up an education loan with a very high EMI:

The tenure and rate of education loan must be carefully selected to avoid paying very high EMI’s and putting pressure on the user or too long to increase the amount of interest.

 While an education loan can help a student and their family achieve their dream, documents for personal loan must be carefully studied keeping in mind the above points before signing on the dotted line.

Must Read: 5 Mistakes To Avoid While Applying For Personal Loan In Chennai