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.

Things To Consider While Applying For A Business Loan

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To run a business successfully, one requires large amounts of funds. While there are multiple ways to raise capital, the most common form is through getting a business loan.

Since the amount of business loan is enormous, and these loans are risky, they come with high-interest rates.

To help customers decide on taking a business loan from the lenders, organizations have introduced Business Loan EMI Calculators for ease.

Factors to consider while applying for Business Loans:

Purpose of Funds

It is essential to identify the specific expense the loan is expected to cover. Besides covering business expenses, the funds can be used for new projects.

Credit score/financial stability

Any lender will check if you can make enough money from your business to repay the amount you are borrowing from them. You need to submit statements of your present and past expenses of your business.

Collateral Capacity

In case your loan demands to put down some form of security, it will be better to be aware of your capacity to put down some collateral.

Repayment Capacity

Before applying for a loan, it is necessary to calculate the amount of time you are going to need to pay it back. It is advisable to keep the time frame as small as possible to avoid a considerable amount of interest payment.

Conclusion

It is significant to know both the sides of the coin before availing any business loan. And now, you are well aware of the factors to consider while applying for any business loan.

Additional Read: Is Credit Score Affects on your Business Loan Application?

Personal Loan despite a Bad Credit Score: How it Works?

In case you aren’t quite optimistic about your credit score and the overall credit history, there are quite a few pathways to follow, for getting hold of a personal loan. However, not every financial institution is empathetic towards a sub-par CIBIL score. Therefore, it is important to choose well, compare wisely, and tread carefully to get approvals.

How can you qualify for a Personal Loan?

CIBIL score for a personal loan needs to be higher for the approval process to go through. However, if you connect with a Non-Banking Financial Corporation, the credit score might not matter quite a lot. NBFCs often have a host of offers for individuals with middling credit scores.

Are there any restrictions?

A good credit score is one of the few personal loan requirements. Then again, connecting with NBFCs can help you with an instant personal loan, provided you are willing to make certain trade-offs. In most cases, there might be a restriction on the loan amount. Apart from that, higher interest rates are quite common, especially when your credit score is average or rather bad.

Why take a Personal Loan despite Bad Credit?

Although it might seem that a person with a bad credit score will generally refrain from credit lines, a majority of individuals opt for the same to pay off the high-interest debts, like the revolving ones associated with a credit card.

Regardless of your pathway towards a personal loan, you must always compare options and consider the best interest rates, to refrain from any kind of financial burden that plummeted your credit score in the first place.

Must Read: Do’s and Don’ts While Taking a Personal Loans in India

When are Personal Loans is a Good Idea?

Personal loans can be used for paying off your debt, large purchases, emergency expenses etc. Usually, personal loans have the format where you borrow a sum of money from any lender and agree to pay it back with an agreed-upon interest rate, within a period of two to six years. Some may find the loan frivolous, but it can be of great use if you borrow at the right time and for the right purpose.

Debt consolidation – Carrying too many loans or debts with varying interest rates is a recipe for financial trouble. This is where personal loan applications can help. When you apply for a personal loan for debt consolidation, you are combining all those loans into one. This usually leads to a lower personal loan interest rate as opposed to the combination of loans you were paying. Therefore, it is also easy on your pocket.

Emergency expenses – We are living through a pandemic and healthcare facilities are expensive. Therefore, if it comes to it, it is wise to take a personal loan to pay off medical bills and expenses. Similarly, in the event of any other emergency like a death or an accident, if you need quick money, personal loans are the way to go.
Large purchases – Household needs do not strike as per the economy’s needs. You might need an electrical appliance, a geyser, an important fitting inside the home etc. Similarly, buying vehicles or recreational equipment might take some significant investment.

By taking a personal loan, you can enjoy ownership of the equipment and continue to pay for it side by side.

These are a few instances where you can take a personal loan, and it won’t be cumbersome on your pocket. As long as you stay on schedule and repay monthly, taking a personal loan for any of the above purposes will be a breeze.

Must Read: 5 Signs Which Indicates You Can Stuck In Personal Loan Scams

A Short Guide to Personal Loans in India

A personal loan is a small collateral-free loan taken by an individual from a bank or an NBFC. These loans do not require the borrower to state their reasons for taking the loan.

What are the Eligibility Criteria of Personal Loans?

To avail a personal loan, you need to meet a very basic eligibility criterion. It comprises of a stable income, a stable place of residence, a good credit score, age and satisfactory repayment capacity. You will have to present documents to offer as proof of all these factors when applying for a personal loan.

Loan Amount

Three factors decide the amount of a personal loan that you are eligible for. They are your income, your debt-to-income ratio, which is your repayment capacity and your credit score. You can check your eligibility on personal loan eligibility calculators available on the websites of most lenders.

Rate of Interest

The rate of interest for personal loans is high. Since it is an unsecured loan, the interest rate begins at 8.8% per annum. But the rate of interest on your loan will be subject to your eligibility. If you have a low credit score, your rate of interest will be on the higher side.

Loan Tenure

A borrower can avail a personal loan for a maximum of 7 years. But since the interest rate of personal loans is high, it is advised to choose a shorter tenure.

How to Apply

You can apply for a personal loan by filling a simple form on the website of your chosen lender with the required documents. Personal loans are usually disbursed within hours of verification.

A personal loan is the best to fuel any urgent cash requirements.

Must Read: 5 Tips to Get a Personal Loan Without Hurting your Credit Score

How to Manage your Personal Loan?

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Due to fluctuations in the economy, interest rates and the buying behaviour, repayment of loans is made to look more challenging. Many borrowers find themselves in tricky situations where they are unable to pay the EMIs or make late payments, and it is hard on their pockets.

If you are going to personal loan apply online must know the tips for managing instant loans smartly will help you reduce credit burden and pay off your loan easily.

Tips to Manage Personal Loan:

Making a budget

Establishing a budget when you are repaying a loan is incredibly important. Since you are aware that you have to make monthly payments, it makes sense to allocate certain chunks of money to your monthly expenses. Rent, groceries, shopping etc. should all be accounted for at the beginning of the month. Same goes for the loan. Be sure of every payment you made and make a budget out of it too. You should have an excel sheet, where you have accounted for the processing fee for a personal loan as well.

More important than even making a budget is undoubtedly sticking to it. Sticking to what you have decided for your expenses will help you stay on top of finances and take out money for repayments also. Having a budget and sticking to it is the golden rule to repayment.

Set a reminder

Setting reminders for paying your monthly EMI can be of so much help. Not only will it make your payments on time, but it will also lead to an improved credit score.

While personal loan apply online, some lenders provide the option of sending you reminders or E-mails to know when and how much is due as EMI for a specific month. If provided, choose that option. It will only help you repay on time and avoid all the late payment stress.

Repayment of a loan is not as stressful as popular discourse has made it out to be. It can be easy and manageable in case borrowers take care of a few things.

Must Read: How to Avail Instant Personal Loan Online in India?

3 Reasons To Choose Loan Against Property (LAP) During Times Of Emergency

Have a sudden financial crisis that needs to be dealt with immediately? Loan against property (LAP) can be the right option for you. Let’s have a look at a few benefits of choosing LAP in case of emergencies.

Financial issues are part and parcel of life and can happen with anyone. However, delaying your pre-planned idea due to lack of money is not a wise call, and you may even face the consequences in the long term. Hence, in such situations, you must consider taking a loan.

If you require a large amount with a long repayment period, a loan against property can be an ideal option.

LAP (Loan against Property)

In case of LAP, you need to mortgage your commercial or residential assets to get the loan amount. Thanks to the multiple added advantages, the demand for LAP is growing like never before.

Here are three key reasons for choosing a LAP as the primary loan option:

LAP is a secured form of a loan and poses a significantly lower risk for the lender. Therefore, the loan against property interest rate is lower than that of any other loan.
Generally, you can sanction a large amount of money through LAP. As a result, if you are planning to expand your existing business or provide quality education to your children, LAP can do the job for you. On the other hand, you can extend the repayment period for up to 20 years. As a result, you will have enough time to pay back the loan amount.
Thanks to the longer repayment period, the EMI for LAP is relatively lower than its counterparts.

Nonetheless, it is strongly recommended to hire a reliable lender to get the best possible result.

Must Read: 6 Things to Notice before Taking a Loan against Property for Education

Top 5 Tips to Make the Right Choice and Choose the Best Two-Wheeler Loan in India

Commuting to and fro a workplace is a necessity for most Indians. A two-wheeler helps in bypassing the traffic and making the commute faster for a lot of people, but not everyone in the country can afford to purchase a two-wheeler without bike finance.

You can avail a two-wheeler loan online in a few simple steps. Listed are five essential tips that will help you choose the right lender for your two-wheeler loan.

1. Check your eligibility:

Go to your lender’s website and check your two-wheeler loan eligibility to ensure that your loan application will get approved. If you fulfil all the criteria mentioned on their website, then you are more likely to get approval.

2. Credit required:

Every lender has their minimum and maximum limits on the amount of loan. You can avail up to 80% of the price of your two-wheeler through bike finance.

3. Special offers:

Look out for seasonal offers by different lenders. At times, you might be able to avail the two wheeler loan at lower interest rates. You can check a two-wheeler loan EMI calculator to understand your interest liabilities.

4. Prepayment options:

Many lenders allow you to make prepayments or increase your EMI amount if you have extra cash flow. It can help you reduce the overall interest that you have to pay on loan.

5. Convenience:

As more people are seeking bike finance, many lenders have made it possible to avail a loan through an online application. Apply with a lender who provides quick disbursal.

Conclusion:

Getting a two-wheeler loan is easy, and you can apply for it online through your lender’s website or mobile application. Ensure to check your liabilities using a two-wheeler loan EMI calculator before applying for a two-wheeler loan.

Must Read: Can I claim tax exemption on two-wheeler loans?

Mortgage Loans – A Brief Guide or All you Need to know About Mortgage Loans

A mortgage loan is a type of financial instrument where a borrower can avail finances from a lender based on the pledging of an immovable asset. The asset would be under the lender’s custody once the borrower repays the entire principal and the interest amount.

Benefits of a mortgage loan:

Secured loan: A mortgage loan or a loan against property is known as a secured loan. In the case of defaults, the borrower can take control of the asset to recover the finances. Alternatively, as a borrower, you can also sell off a part of your asset to settle the loans.

Rate of interest & tenure: Compared to unsecured loans, such loans have comparatively lesser mortgage loan interest rates and longer tenures. As the asset is with the financial institution, flexibility is provided in the interest rate and tenure.

Processing & documentation: Mortgage loan processing is relatively quicker as the lender would assess your plot to approve the finances accordingly. The necessary documentation would comprise of KYC, land/plot documents, income proof, and other relevant documents.

Types of Mortgages:

Mortgage loan types are as follows:

Simple mortgage (where the prime control is with the lender)
Usufructuary mortgage (where the borrower transfers the possession to the lender)
English mortgage (In case of successful payback, the borrower can regain the possession of asset)
Mortgage by conditional sale
Mortgage by title deed

Conclusion

Pledging your property is a huge decision, and you should entrust your asset with a lender who has a good reputation and is trustworthy in the market.

Must Read: 4 Ways to Get Better Interest Rates on Personal Loan

Loan Against Property Without Income Proof: Is it Possible?

A loan against property or LAP is a loan taken against a residential or commercial property. The property value is assessed before the loan is sanctioned, and the percentage of the property value is given as a loan. One can check their loan against property eligibility online as different lenders have different terms. Make sure you do your research and choose a lender that you are comfortable with.

You must disclose what you are going to do with the money and how you plan to return it as a part of repayment. The loan amount could be anywhere from 40-60% of the property. This is based on the new assessment done and is 40-60% of the current market value.

Now the tricky part

Getting a loan is difficult, as they will ask you for your income proof even if you are offering collateral. This can be tricky as the lenders need assurance about how you are planning to repay the loan.

You can talk to the relationship manager at the bank and ask if there is any other reassurance that you can give to procure the loan. You can offer collateral or tell them how you plan to repay the said loan in the future.

Another way to do this is to get a co-applicant. The co-applicant must have a good credit record and a valid proof of income so that the lender can see the EMIs coming in soon after the loan’s approval.

Must Read: What Is The Difference Between Home Loan Vs Loan Against Property?

Few Tips to Manage Your Loans in the Right Way

The world is full of distractions, and with loans available to almost everybody at the drop of a hat, it has become widespread to see people default on them. Financial planning has become the need of the hour, and every young individual must be aware of it. Always use a Personal Loan EMI Calculator or a Personal Loan Interest Calculator to tally your calculations against that of the lender.

For those who have made mistakes regarding their financial situations here a few things that they can do to

Avalanche

In this method, you make a list of your debts in the decreasing order of their interest rates. Then you sort out the loan, which has the most significant principal and the highest tax. You concentrate on paying off this loan first while others are on schedule too. This way, you don’t default on the big loans; it can accrue the most significant interests on the principal.

Keep doing this till you are debt-free.

EMI and Salary Hikes

Another great way of paying off your debt early is to bump your EMI every time you get a raise. This shaves off months or even years.

Debt Repayment a Priority

If you get an unexpected bonus or a return on investment, then it is your best interest to repay your loan with that first.

Make Timely Payments

Debts are a great way to get a good credit score going for you. Make sure you pay on time.

Must Read: 5 Easy Ways To Choose the Best Personal Loan

Types of Demystifying Loans in India

In today’s day and age, there is a loan available for every need. Whether it be a small amount or a large amount, financial institutions have become very consumer-centric in the last 20 years. This also means that more loans are available today than ever, which may lead to confusion. From personal loans to a house loan, everything is covered these days.

Here are a few types of loans that you can get

Personal Loans

These are unsecured loans that one can apply for. Unsecured means that the person lending the money would not take collateral in exchange for the credit. These loans can be used for anything to fund vacations to get the house renovated. Documents required for a personal loan are minimal.

Credit Cards

Every time you pay with a credit card, you are essentially taking out a personal loan for an expense. Interest is charged if you cannot pay the balance in full almost immediately. If a debt or an amount of the debt is unpaid, interest is charged on it every month.

These are an expensive way to borrow money as they have an average interest rate of 16%.

Home Equity Loans

This is for people who own their homes already. You can borrow against the equity your house has built up in it. If half the house’s value has been paid off, they can borrow half the amount of the house.

Equipped with this knowledge you can choose the type of loan that suits your requirement the most.

Must Read: 5 TIPS TO AVOID REJECTION ON A PERSONAL LOAN APPLICATION

How to Improve Your CIBIL Score By Applying For A Personal Loan?

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The best personal loan is the one which can fulfil your needs and is also not a burden on your monthly expenses. A personal loan is repayable every month.

The amount of EMI depends on the amount of loan, and the tenure one will be selecting. You can check your eligibility for a personal loan by using a personal loan eligibility calculator. (Check Your Eligibility Here)

Personal Loan

Availing the benefits of a personal loan can affect your finance for the tenure you are selecting. So, before applying for a personal loan, one must check with different lenders to get the best personal loan possible. Listed below are some factors one should consider before applying for a personal loan.

Rate of interest: The rate of interest is the most critical factor that will determine your monthly EMI’s and how much you will have to pay for a loan. So, it is advised get the best rate possible.

Amount of loan and tenure: A personal loan varies from Rs. 10,000 to Rs. 75 lakhs depending upon your credit score and monthly income. You can select the period according to your ease from 12 months to 84 months.

Extra fee: Many lenders charge additional fees like processing fees, prepayment charges and many more. It varies from lenders to lenders depending on the scheme you will be choosing.

Conclusion:

To get the best personal loan, it is advised to compare different lenders to get the best deal possible. Review the above factors before applying for any personal loan.

Must Read: Does Repo Rate Impact on Personal loan EMI?

What are the Types of Personal Loans in India?

Personal loans are a great way to get a loan for something that may not have a separate loan category. They are quick and easy to procure and have minimal documentation involved. It is best that you apply for a personal loan online as it is much more convenient.

Even Personal Loans are also of many types, but here are few things you should know about them before you look into the type of personal loan you might want to get.

Unsecured Loan – A loan that does not require collateral
Secured Loan – A loan in which the lender will give you a certain amount against a collateral
Fixed-rate –This means that the rate of interest remains the same throughout the life of the loan.
Variable-rate – This means that the rate of interest will fluctuate as per the market and varies throughout the loan.

Types of loan:

Credit Builder – This helps in making or repairing a bad credit history.
Debt Consolidation – A debt consolidation loan allows you to permanently put all your existing debts into one and have a new interest rate and renegotiated repayment term.
Holiday Loan – These can be used to buy gifts and offset the expenses so that you don’t have to use your savings.
Home Improvement Loan – Loan meant for renovating the house.
Medical Loan – Medical expenses can quickly become a burden, especially for complicated conditions.
Vacation Loan – Travelling to other places can be expensive, but that does not mean it is entirely out of your reach

In summary, there are n number of personal loans. In fact, when you opt for a personal loan there is no limitation as to where you can or can not spend the money. You can use it for anything from gardening needs to covering wedding expenses.

Additional Read: 8 Reasons Why Personal Loans Are Popular in India

What To Do Before Applying For A Personal Loan?

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A loan can be used for various purposes, and in the 21st century getting a loan has become a hassle-free process. There are situations in which a person might need a loan for multiple uses, and in a short period. This is where personal loans can come to your resume. Easy documentation and quick disbursal has made them very popular among people but be wary of personal loan interest rates. People must have to keep the documents required for personal loan ready for easy approval of loan process. Always use a personal loan eligibility calculator to tally your calculations with that of the lender.

If you are going to apply for a Personal Loan soon, keep these points in mind.

Research

Do your research on which bank offers you a loan on terms that you can agree with. Many people end up with the wrong lender and have difficulties down the line. It would help if you choose a lender with an interest rate and late payment fees that you will be able to cover. Different banks and lenders have different rules and interest rates. Find the one that suits you.

Keep Your Paperwork Ready

Sometimes much paperwork is involved; luckily for you, personal loans do not require a large amount of paperwork, and the process is expedited due to this.

All you need is an identity proof, age proof, address proof, salary slips, and an income certificate.

Credit Score

Since this is an unsecured loan, it is necessary to have a good credit score and history. Personal Loan Interest rates are usually higher than that of other loans, so make sure you pay the EMIs on time.

These are the things that one should keep in mind before applying for a personal loan.

Must Read: How Fintech Lenders Changed The Landscape of Personal Loans?

What’s The Importance Of Cibil Score For Meeting Personal Loan Eligibility?

Personal loans can be described as quick unsecured loans that can be used to meet short term financial requirements. Such unsecured loans are easily availed online by meeting the personal loan eligibility criteria and by submitting necessary documents online. It will take 3-4 business days for fund disbursal. Furthermore, you don’t need to pledge any asset for availing this kind of loan.

Personal loan online has gained immense popularity in the past couple of years due to its flexibility and easy loan repayment options. Here’s why you need to seek personal loan whenever you find yourself in cash crunch for your dream house, wedding or exclusive vacation.

Importance of CIBIL score for meeting personal loan eligibility

CIBIL score holds prominent importance for borrowers while seeking a personal loan. It consists of a three-digit number ranging from 300 to 900 with the lower score considered as more inferior, while 900 as the highest score.

You need a 750 credit score for getting personal loan eligibility. The CIBIL score contains a record of all your loans, including EMIs, credit card payments, credit card expenses, and previous loans.

A good credit score enhances the chances of getting a personal loan.
You can check your score online and offline with your money lender.
It helps to create good creditworthiness in the market.
High credit can avail lower interest rate on loan.
You can even avoid other costs including pre-payment fees, processing fees with 750+ credit score.

Must Read: 5 Easy Ways to Get a Personal Loan Despite a Low Credit Score

Getting The Best Out Of A Loan For Doctors

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Every practising professional need cash inflow from time to time. Even doctors need money to set up their office and clinic and purchase medical equipment. Most of the NBFCs, private lenders and banks offers doctors loans for such purposes especially for professional doctors.

Fortunately, a personal loan for a doctor in India is readily available to meet all these expenses. Keeping the following in mind, as a doctor, can help you take advantage of loans designed for doctors.

Requirement –Assessing the loan requirement accurately is important.
Cost of the loan –The interest is one of the significant costs of the loan. It is important to find an affordable rate of interest. Research for competitive rates to make the loan cost-effective.
Repayment –The repayment capacity of the doctor would depend on the prospects of his or her practice. The doctor must select a repayment tenure based on such future income forecasts and estimates.
Approval and disbursal –It is always preferable to borrow from a lender who is prompt in processing the loan application and disburses the approved amount quickly.
Loan account management –The facility of online loan account management makes the day-to-day monitoring of the loan easier for the doctor.

Furnishing the personal loan documents and meeting the eligibility is often not a concern for a qualified medical professional.

Must Read: Reasons Why borrower Prefer Personal Loans for Medical Emergency

Here’s How You Can Manage Personal Loan Repayments?

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At times, we have to take a personal loan to fulfil our capital needs. The popularity of personal loans comes from its easy accessibility due to its unsecured nature. You can avail it for a wide variety of financial requirements, and in most cases, there are no restrictions on the utilisation of money sanctioned against a personal loan.

Today, you can fulfil your dreams quickly by availing a loan, but at the same time, it is essential to ensure that you are financially capable of handling it with your current lifestyle. Here are a few tips that will help you manage personal loan repayments.

Planning a budget:

Before applying, make sure to work out on a budget. Use a personal loan calculator to know the monthly liabilities that you have to repay through EMIs. Make sure you will have enough cash flow to repay on time.

Plan your expenditure:

Have a clear idea about the expenses you need to cover through the loan amount or the investments you have to make through it before it reaches your bank account. Not having a plan can result in unwanted expenditure.

Opt for prepayments:

Check out the terms of the loan before applying, and if possible, choose the one that allows prepayments. It will enable you to clear the debt before time and save a decent amount of money.

Conclusion:

A personal loan is attractive to people due to reduced paperwork and fast access to credit. However, it can hamper your budget if not managed properly. Make sure to use a personal loan calculator to understand your financial liabilities before applying for a loan.

Additional Read: How Can i pay my dental emergencies bill with personal loan?

Important Facts To Know About Property Loans

The biggest challenge for a borrower would be to choose a finance option that does not hurt his/her repayment phase and has lower interest rates. If you have an asset that you can leverage to avail loans from established lenders, you can have a considerable advantage over your finances. Here’s where LAP comes handy.

LAP – Important facts

In Loan against property you can pledge your property to the bank/NBFC to avail of loans. Here are some facts about LAP:

Ownership:

Despite pledging your property to the lender, you are still entitled to the ownership of your asset. You can sell the property to settle the loans and also could lease out your building during the tenure. In some cases, banks/NBFCs also provide mortgage loans to those properties which are under home loans. Such an instance is possible if the market value of your property increases.

Floating interest rates:

Compared to home loans, where the interest rates are fixed, LAPs have floating interest rates, which can depend on the lender. Hence you need to check with your lending institution on this during application.

Associated charges:

There will be a small percentage of the loan amount debited as the processing charges for the loan. Most of the lenders do not levy penalty charges for pre-closure of the loans.

Conclusion:

The documentation and the processing time for such loans are usually hassle-free. You can use a mortgage loan EMI calculator to compare the lenders and choose the best financial partner for yourself.

Must Read: Important Factors That Affect Your Property Loan Eligibility

Along With Credit Score, Which Factor Also Determines The Personal Loan Eligibility?

A personal loan is quickly becoming one of the most preferred finance types for salaried employees due to their advantages. One of the prime benefits of a personal loan is that it does not require any collateral for pledging and hence the processing is quick compared to other types of loans.

Which is the most influencing factor for personal loans?

The lending institution will assess the documents required for a personal loan (Check here) , which will contain the income details, credit score and other information for determining the loan eligibility. Many feel that a high credit score will enable a borrower to be automatically eligible for the loan. A healthy credit score is an essential factor but is not solely responsible for the loan approval. Debt to income ratio is also a critical factor for successful support for your loan application.

What is the debt to income ratio?

Assume that you already have existing loans and your credit score is also high, the lending institution will go through your documents required for a personal loan and analyse your debt to income ratio to process the loan application. In other words, the lender will assess your income breakup to understand the contribution for existing debts, living expenses and then decide your loan amount. Hence you should make sure that your monthly EMI payments are more than 50% of your monthly income.

Conclusion:

You can understand about debt to income ratio better by getting the personal loan contact number of the lending institution and having a discussion with them. Such a practice will help you to secure personal loans quickly.

Must Read: How To Find The Right Personal Loan Lender For Yourself?

Checklist Documents That Are Required To Avail A Commercial Vehicle Loan?

Commercial vehicles such as buses, trucks, taxis, etc, are essential for any kind of transportation business. These vehicles help different businesses by increasing profits and productivity. In India, many lenders offer secured commercial vehicle loans to individuals or businesses who require these vehicles for commercial purposes.

It is fairly easy to get this kind of loan if the applicant fulfills the commercial vehicle loan eligibility criteria. Generally, the applicant has to pay a 20 percent down payment of the vehicle, and the rest of the amount can be financed. If the applicant matches the lender’s criteria, they can even get a lower interest rate on their loan. The documentation is not that complicated, but it needs to be perfect to avoid rejection.

Some important documents that are required to avail a commercial vehicle loan are:

Properly filled application form
Adhaar card
PAN card
Passport
Birth certificate
Driving license
Two years income tax returns or ITRs
All audited financial documents of the business
Bank statements of the last 6 months
A Cheque for the processing fees
Ration card
Recent Electricity & telephone bill
Rental agreement or proof of ownership of the office or factory

Different states have different documentation requirements. Kindly go through the concerned authority’s website and if possible visit their office to get the exact nature of documents you will need.

Must Read: 4 Things To Note While Availing Commercial Vehicle Loan

5 Benefits of Personal Loans You Might Not Know

Personal loans are still looked at with suspicion as they are not very commonly used. But, they can be super-efficient in managing situations that demand smaller amounts of money without any collateral.

If you are looking for an emergency loan that can fulfill a larger purpose, an instant personal loan could work wonders. If you have a decent income and have a good credit score, you should be able to find a personal loan at a low-interest rate.

Benefits of Personal Loans:

Although it sounds counterproductive, avail personal loans can be a good idea in some situations. Do not pay attention to naysayers, and go ahead and make your life more comfortable with a personal loan.

You can pay off high-interest debts like credit card loans and high-interest loans with a personal loan. Once you restructure your loan, you can pay the loan off in installments. The credit card loan is a revolving one, and the interest can be as high as 48-52% annually. You may feel that you are not able to pay the principal. At this juncture, it is a good idea to convert the amount into a personal loan and pay off the debt. This way, you will have a fixed amount to pay that will involve a part of the principal along with the interest quotient. It will help you actually reduce debt. It may be a good idea to club multiple loans like a medical expense, credit card bills, vacation.
Personal loans do not generally involve any collateral so that they could be relatively safer. Any default in payment will lead to a bad credit score but will not attach any property as in a secured loan. It is essential to take a loan that is comfortable to repay, and the EMI are well within your reach. Always aim to take only the amount that you need to keep interested from catapulting. It is not an excellent move to miss personal loan payments as the consequences can be severe, with collection agents haunting you. Your credit score will also nosedive. This will lead to you not getting loans at a reasonable rate any more for a long time.
Short term funds to do a course, take a vacation, or pay medical bills can be availed of with a personal loan. You can check out the EMI you need to pay with the help of the personal loan interest calculator. You can make planned expenditures at a low rate of interest than your credit card and save a lot of money in the long term. This way, you have a fixed tenure to pay off the loan in equated monthly installments. The repayment schedule is in control, and you are less likely to default.
Many of us forget to live in the present and think of the far off future. This makes the monotony of life very depressing. It is a good idea to avail of an instant personal loan to attain the small pleasures of a well-decorated home, the down payment to the right car, your child’s admission fee to a good school or even a dream vacation while you are still healthy enough to take that trekking holiday. The low-interest rates will be a small price to pay for the gratification you achieve.
Probably the essential thing that a personal loan does is build a credit score and history for you. If you have no credit history, it is a good idea for you to take a small personal loan and repay it within time. It takes credit to build a score. This good credit score will open up the possibility of higher loans for business, home loans, or education at a later date. It is an excellent way to add a new credit to your mix and improve your credit score. But, a word of caution, do not apply for a loan from too many lenders and ‘inquiries,’ may have a negative impact on your credit score, and the purpose will be foiled. Choose your lender with care. Your bank will be the best option, or you can look at online lenders who provide quick and low documentation personal loans.

The personal loan can be used for any purpose, unlike a secured loan, a mortgage, or a business loan. You can bank on an instant personal loan to tide you over the temporary financial crises that may occur at some point in your life. The only time you should avoid a loan is when you are not sure that you can repay the loan. Not repaying loans may damage your creditworthiness for years to come. Look for a loan that suits your purpose, is within your means to repay, and builds your credit score. You are on your way to excellent credit history.

Additional Read: Is using personal loan to invest in stock market a good idea?

5 Reason Why You Should Choose a Long Term Personal Loan

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Personal loans offer you the financial security you require without putting a tag on where you’re spending the money. But whether to choose a long-term or a short-term personal loan, that is a question of most applicants. We give you a few reasons why people choose a long term personal loan instead of other loan options available.

For More Details Visit here: https://www.fullertonindia.com/long-term-personal-loan.aspx

4 Reasons to Opt for Long Term Personal Loan:

Reduced EMI – If you opt for a long-term personal loan, your monthly repayment burden is significantly lessened. If you have tight financial commitments for every month, it is best to go for a longer tenure as it leaves you room to breathe. Check out personal-loans EMI calculators before making a decision.
Improved Loan Eligibility – When you choose a longer tenure, your EMI is lower and hence there are greater chances of getting a higher amount of loan approved as the chances of you defaulting on the payments decrease.
Pre-closure of Loan – When you opt for a longer tenure, you can save monthly. This will help you in the pre-closure of your loan before its tenure with a nominal fee of 1-2%.
Higher Amount – If you want to apply for a loan with a high amount, it is advised that you choose a longer tenure. This improves your eligibility as the EMIs are lesser and so are the chances of you turning into a defaulter.
Improved Credit Score – The lending institutions check your credit score thoroughly before approving your loan. If a higher EMI leads you to default your payments, your credit score takes a hit. A longer-tenure can help you in avoiding such a situation.

So, choose a term that suits you best.

Must Read: Short Term vs Long Term Personal Loan: Which is Best For You?

Additional Read: 2021 May Months Automobile Top Links

Does My Small Business Qualify for a Business Loan?

Factors to Consider if You Need a Small Business Loan | Accounting ...

Every business starts small, with the hopes of becoming a global name one day. It requires a lot of effort, constant growth, and funds. While you can take care of the first two by working with qualified professionals, you might need to raise funds. A small business loan can come to your aid in such a case. You can research business loan interest rates, but a few factors decide your eligibility. Here are the basics:

Credit Score: It may be risky, but a business loan of a large amount can be granted to you if you have a splendid credit score and a low-interest rate. The lender will see your credit history, the repayment of previous loans, your credit card transactions, and if all this adds up to a minimum CIBIL score of 750, you’re good to go.
Cash Flow: A steady and healthy cash flow of your business will assure the lending institution of your capability to repay the loan. So, this is important when deciding your eligibility.
Age of Business: Most businesses and start-ups shut down in their first year of operations. Hence, any lending institution requires a steady operational age of at least two years before granting a business loan.
Collateral: There are secured and unsecured loans that you can avail of for your business. While unsecured loans do not require any collateral, the borrowing amount reduces. A secured loan can offer you a more significant amount with a lower rate of interest due to the collateral kept on the table.

Keep these in mind when you apply for your small business loan!

Must Read: 5 Tips Women Can Follow to Get an Approval on Business Loan

Few Ways to Boost You CIBIL Score

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Borrowers might face situations where an application for an instant personal loan will be rejected because of low CIBIL score. It is unfortunate and can happen with anyone if they have been a careless borrower. Hence, at that moment you have the knowledge how to increase Your CIBIL Score quickly.

CIBIL score is an outstanding score that tells financial institutions how responsible you are with your money. It is a parameter between a score of 300 and 900, formed with the summary of your credit history and repayment behaviour. Whenever you apply for a loan with a lender, they usually check this score to decide for giving you a personal loan. If your CIBIL score is more than 700, you are more likely to get an instant personal loan at a low-interest rate. But in case if your credit score is low it is quite difficult to get approval on your loan.

Review your credit report- Credit history and CIBIL score play such an essential role in a loan application; it is wise to review your credit score before applying. Experts suggest checking the credit report regularly. By doing this, you can see where you went wrong and right your wrong. For example, if your credit score is low because of late payments, you can be careful and make timely repayments in future.

Pay dues on time- Repayment on time can be an essential factor for determining the CIBIL score. It is unlikely to get a low-interest personal loan for a low CIBIL score. So, if late payments are keeping your CIBIL score low, work to ensure that you pay EMIs on time. Doing so will also reduce the cost of borrowing as you will no longer pay the penalty by the lender on late payments.

These were a few expert tips to boost your credit score. Small things go along the way in building an impressive score. So, avoiding late payments and multiple loans will keep your CIBIL score high. A high CIBIL score will ensure easy instant personal loans at a meagre interest rate!

Additional Read: Know the Importance of CIBIL Score for a Personal Loan

A Comprehensive Overview Of Essentials of Loan Against Property

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In this day and age, a host of loans are provided by banks so that we can use the cash for various purposes. It can be a vehicle, a house, or a loan for any business venture etc. A relatively popular loan is the Loan Against Property which is essentially a mortgage. This type of loan is popular amongst borrowers as it allows you a large sum of money for any need or challenge that you might incur. Another attractive part of this loan is that it has easy documentation/loan against property eligibility and very flexible repayments. Add to that speedy approvals, and one can surely guess why many apply for a loan against property.

In the loan, the property is put up as a collateral or security. The state defines a loan against property as only a transfer of interest and not the ownership. It means that the borrower remains the owner of the property and the transfer of ownership will happen if the borrower defaults on the loan repayments.

The loan against property eligibility includes the proof of residence, income statement, latest bank statement. If you are an employee, you need the last six months’ salary slips. If you are a business owner, you might need to show at least three years of income before your loan is approved.

The key benefits of having a loan against property:

Lower interest rates
Good while availing more massive amounts
Low EMI due to longer tenure
The Flexibility of how you use your loan

Must Read: Advantages of Loan Against Property to Raise Funds

Positive & Negatives of Secured & Unsecured Loans

While a secured loan is backed by collateral such as a house, property, car, or gold. On the other hand, an unsecured personal loan is offered to you based primarily on your credit profile, personal loan eligibility calculator, and trustworthiness.

Let’s take a look at the pros and cons of both secured and unsecured personal loans to decide the best option for you.

Pros and Cons of Secured Personal Loans

Pros: This security in the form of mortgages offers an extra layer of protection for the lender, and hence, it makes eligibility for the loan more comfortable for you. The rate of interest is lower and more significant amounts since there is the security of collateral.

Cons: It is a high-risk venture. If you are unable to make payments on time and register as a defaulter, you run the risk of losing your home, your property, or any collateral. Each lender offers its own rules and regulations, and they might provide you with the option of repossessing your property as soon as you make the payments.

Pros and Cons of Unsecured Personal Loans

Pros: If you meet the eligibility, this is mostly a quick and hassle-free process. Most of which can be done online. There is less paperwork and no property assessment involved. While a missed payment may ruin your credit profile, you do not run the risk of losing your property.

Cons: They offer smaller loan amounts, require specific eligibility, and may have a higher rate of interest. While your property is safe, you still run the risk of becoming a defaulter and getting sued.

This list will help you decide which option is best for your next loan requirement.

Must Read: What are the Advantages of Unsecured Personal Loans?

3 Most Advantages of Small Business Loans

Every business requires some capital to begin operations. A considerable fraction of these businesses approach a lender for this purpose. Usually, a loan application is submitted with the lender to get approval for a loan on the funds required.

The application also requires submitting some business loan documents, employment documents, and bank account details. Once submitted, if the application is not objectionable, the loan is approved on an annual interest rate.

Advantages of small business loans

Flexibility – There are so many options in the market to choose from, that getting a loan is a flexible process. There are financial institutions, loan apps, and they all come with their offering of different interest rates and loan tenures. It is why taking a small business loan is more relaxed, flexible, and provides you with more options.

Cash Flow

Well, businesses can also encounter cash flow issues. If you do not have financial fall back options, these issues can be fatal for your business. When the business experiences significant growth and suddenly faces a cash flow shortage, things can take a turn for the severe. During such times, small business loans come up as a flexible and easy option out of times of trouble.

Not diluting your equity

Most of the businesses get finance by selling equity or assets. In the long run, that is not the best way to operate. Small business loans help companies maintain their assets and equity while providing them with the necessary funds.

Must Read: Short-Term and Long-Term Business Loan- Which One Is Best For You?

Rules To Follow While Taking A Loan Against Property

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If you are looking for a lump sum amount to finance your business, look no further than a loan against property. A property loan is a good idea to finance any requirements for a lump sum amount of money. The lender will consider your property as security and give a loan at an affordable interest rate. To get a loan against property, there are few rules you should abide by.

Rules to follow while taking a loan against property –

Making repayments timely

Whenever borrowers do not make timely payment, lenders usually levy a penalty charge. This penalty charge increases the cost of borrowing for the borrower. In addition to that, many late EMI payments can also lead to a reduction in the credibility score. So, all borrowers should ensure that repayments are made in time and according to the interest rate decided.

2. Read terms and conditions carefully.

There is a considerable amount of documentation required when availing a loan. It might all look not very interesting, but it makes sense to read all of it thoroughly to avoid any surprises in future.

It is also advisable to deal with a reliable lender and a credible agent not to experience any surprises regarding charges and repayment in future.

3. Borrow based on your financial situation

As a rule, no Equated Monthly Instalments (EMI) must be more than 65% of your net income. Therefore, if you are considering applying for a more significant amount for a loan, your repayment capability as per your net income should match it.

These were a few rules borrowers should follow if they are looking to get a property loan. We hope you undertake responsible borrowing and repayment practices while availing a loan.

Must Read: All you Need to Know about Loan Against Property Overdraft Facility

Benefits of a Loan Against Property

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The loan against property is a type of loan that owners of the property can avail for a large sum of money and easy low-interest repayments over 15 years usually. The loan against property is not as scrutinising as some other loans. Thus the easy approval loan against property eligibility, large sum and a more extended period of the repayments makes this a very popular loan in the world of real estate.

1. Monthly Instalments

The monthly instalments are divided in such a way that you will be comfortable paying them for years and will be deducted directly from your income. It also means that you can claim this while you are filing your tax return. You end up saving a percentage of your money by not giving it to the government. A deduction of up to 2 lakhs can be claimed every year.

2. Interest Rate

It does not matter whether your interest rate is high or low on your loan against the property; this again can be claimed in the income tax returns. Thus you will be able to save even more money.

3. Usage

It does not matter how you choose to spend the money even though this is a secured loan. This flexibility means that the loan can be used for multiple things. Whether it be to finance your business, go on a vacation or use it to buy another asset.

4. Property Type

Whether you have a residential or commercial property, it does not matter as a Loan Against Property can be acquired for both of them.

Must Read: Should You Use a Loan Against Property for Home Improvement?

4 Emergency Situations Where a Personal Loan Can Help You

If you’re buying a house, there’s home loan, if you’re buying a car, there’s car loan. But if expense surfaces which cannot be defined in these terms to the bank, then what do you do? For these times there is a personal loan.

A personal loan is the most fluid kind of loan you can get. It is not specific to one function and you can spend it however you like. You can easily look at personal loan interest rates (Check Interest Rate) and apply for a personal loan online. Here are five situations where a personal loan can help you:

Medical Emergencies: Especially in the times of the COVD-19 pandemic, Hospital bills, and medical expenses can be much more than what you can afford. But don’t worry. A personal loan has you covered in such tough matters so that you can only focus on your family’s health and let your financial worries rest.

Wedding Expenses: Wedding can be an expensive affair, especially in India. But a personal loan can ease your load. You can apply for one, and see your family dancing at the wedding with joy.

Education: If you don’t want your child to be burdened by an education loan, you can easily take a low-interest personal loan and let your child study freely.

Travel: An unplanned trip can create a hole in your savings. But you can apply for a personal loan to finance your trip and save your money for better emergencies.

Let personal loans be your savior in your times of need and live worry-free!

Must Read: How to Plan Your Retirement by Taking a Personal Loan?