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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Loan Against Property- an Excellent Way to Cover your Personal Expenses

Loan against property is a type of loan which one can avail by keeping his/her property as a security deposit with his lender. It is said to be one of the best options for your expenses like medical expenses, paying for your dream marriage, or your study. One can use these types of loans according to their preferences and use. As loan against property is a secured type of credit; therefore, there interest rates on these types of loans are less as compared to unsecured loans. Anyone above 18 years of age, having a credit score above 650 and annual income is more than Rs. 3 lakhs is a loan against property eligibility criteria.

Loan against Property 

There are many benefits of LAP when used for personal expenses. Some of them are listed below.

1. Less rate of interest: As these loans are secured loans, the interest in these types of loans is less, which means you can quickly pay your monthly EMI’s.

2. More extended tenure: These loans have longer tenures as compared to other personal loans. This period can go up to 15 years.

3. No extra charges: In LAP, you do not need to pay any additional costs like prepayment charges if you are applying for a floating rate property loan. 

Conclusion:

If you need money urgently to meet your expenses, one can apply for a loan against property. One can avail of its benefits by visiting the lender’s website.

Must Read: Simple Process to Avail Loan Against Property

Important Facts About Small Personal Loans

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At some point in our life, we might experience a small financial crunch that can disturb our monthly budget. So, to get through this situation with ease, we require a small amount to meet urgent needs. That is when small personal loans come into the picture. 

What are small personal loans? 

As the name suggests, a small personal loan is a kind of short-term loan that lenders provide to cover instant financial expenses, such as working capital requirements, purchasing an electronic device, etc. These loans are availed when you need a small amount of funds, ranging from Rs. 15,00*0 to Rs.1,00,000. Small PL is usually sanctioned for a maximum period of 12 months. However, the minimum and maximum loan amount duration vary from lender to lender. Further, these loans are offered to entrepreneurs to fulfill their capital needs as well as to the salaried and self-employed professionals to finance their daily expenses. 

How to apply for a small PL? 

Since the market fills up with multiple lenders, the loan application procedure may be different for all. However, the borrower must follow the below necessary steps to secure such loans. 

  1. Shortlist a suitable lender and fill a digital form provided on the website. 
  2. Try the personal loan interest calculator to assess how much interest you have to pay each month. 
  3. Upload all the essential documents related to your personal and professional profile. 
  4. After the submission, the lender reviews the application.
  5. Once verified, the loan amount is instantly deposited into your account within a couple of minutes.

Final Thoughts 

A small personal loan is an easy and prompt way of raising funds. Its unsecured nature and other countless benefits make it the favorite tool for both businessmen and employees.

Additional Read: Reasons why you should choose personal loan instead of credit card

 

Comparison Between Loan Against Property And Unsecured Business Loan

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With the different types of loans, the availability of funds has increased over the past few years. Due to an increase in funding by lenders, businesses are growing without any obstruction. Loans can be divided into two different types unsecured and secured loans.

In loan against property, one can avail benefits of credit by putting any property as a security of the loan. Loan against property loans is less as compared to that of unsecured loans.

LAP

After availing a Loan Against Property, one receives a certain percentage of asset value which is known as loan to value. If a credit is issued without any collateral, then this type of loan is known as an unsecured loan. Before applying for any business loan or taking a credit facility, one should keep certain factors in mind. Enlisted below are some considerations:

  1. Interest rate: Rate of interest varies from the type of loan you want to avail. The interest rate is determined based on the credit score of the borrower. Unsecured business loans generally have a high interest.
  2. Period of Loan: If longer tenure is chosen, then the monthly EMI’s are less. Loan against property offers a more extended period as compared to that of business loans.
  1. Eligibility: 

To avail the benefits of any credit facility, you must meet the ability of the loan. For unsecured loan your credit rating, salary plays a crucial role in determining the eligibility.

Conclusion:

Before availing one of these loans, one must always compare different lenders. It is advised to know your requirement before availing any loan.

Additional Read: Essentials of loan against property that you should check

4 Things To Keep In Mind While Applying For A Personal Loan

Personal loans are a good option for seeking emergency funds. In case you have a medical emergency or are renovating your dream home, availing instant personal loan can help. You only need to keep these things in mind before applying for a personal loan. 

  1. Interest rates: Do not search out for the lowest interest rate. Inquire about the type of interest rate applied on the personal loan. There are two types of interest rates –  flat interest rate and second reducing the balance interest rate. You might get attracted towards the lowest flat rate, but lower interest rates don’t mean you are going to pay less.
  1. Include all costs: Apart from the principal amount and rate of interest, there are many expenses incurred when you think ‘personal loan apply’. You must ask about the other costs, including processing fees, pre-payment fees, service tax and late payment fees.
  1. Assess your needs: You need to check out your needs for the personal loan. You might meet the personal loan eligibility criteria of ₹15,00,000 amount, but you need to borrow the required amount to address your needs. Remember you have to repay the interest as well. Thus, borrow as much as you need and not in excess.
  1. Ensure your capabilities: Check out your repayment capabilities with personal loan EMI calculator. Make sure your savings or income can cover the EMI along with the principal and interest amount. Do an honest assessment. Failure to default the EMI will result in penalties and can spoil your credit history.

Additional Read: How Personal Loan Helpful For You in Emergency Situations?

Top Reasons Why You Should Apply for a Personal Loan

Personal-Loan-Application-Form

The best part of taking a personal loan is that you can use the loan amount for any reason. While applying for a personal loan, one does not have to explicitly mention to the lender the cause of seeking the loan. Whether planned or unplanned, you may apply for a personal loan for the following reasons. 

Reasons to Apply for a Instant Personal Loan:

  • Debt consolidation: Imaging having taken multiple loans and having to pay off each of them every month. Then, there may be regular piling of credit card bills, thus, leaving you stressed under recurring financial debt. To get rid of the liability of paying off numerous bills, you may consider taking a personal loan to the tune of total financial debt incurred and then repaying all of them at one go. This will leave you with a single loan that you would be required to repay along with interest within the given loan tenure.
  • Ease of application: “For personal loans, apply here” are common advertisements that we frequently come across on the web. Credited by lenders for their customers’ use, most personal loans are unsecured loans and do not require borrowers to offer collateral as security or a guarantor to avail the loan. You may apply for a personal loan by either going to the lenders’ websites or approach the nearest branch with a loan application form. 
  • A better alternative than payday loans: Though personal loans come at high-interest rates, it is still better to avail them than opt for instant payday loans that charge one per cent interest for each day throughout the entire loan tenure. When annualized, the yearly interest rate on payday loans is a whopping 365 per cent per annum. Payday loans are easy to get but involve hefty penalty charges in case of default on payment during the loan period. However, most lending institutions do not charge extra in case of personal loan default or foreclosure. To gauge the estimated returns on a personal loan, you may use the personal loan interest rate calculator available online.
  • Paying for emergency expenses: Medical treatment is getting costlier, thus, mandating the need for personal loans. Not all people buy health insurance to cover the expenses on their medical treatment. Paying off medical bills is one of the reasons to opt for a personal loan. These medical expenses may include spending on surgeries, in addition, to pay for medications and availing aftercare facility, when required.
  • Making added investment to business: The penchant of giving shape to a business idea is common with millennials. However, any business idea, big or small, necessitates some basic investment. While business loans are available, the remaining capital requirement can be supplemented with a personal loan from your choice of lender.
  • Dream vacation: Planning a dream vacation with your loved one? Lack of funds may prove to be a hurdle. You may choose to either wait till you have saved enough or apply for a personal loan. If the need for a break is imminent, the loan amount credited to your account can help. However, it is important to estimate the amount of loan that you would require so that you do not borrow more than you require. 
  • Destination wedding: Indian weddings are synonymous with grandeur and a lot of celebration. If you have opted for a traditional wedding ceremony, get ready to participate in multiple ceremonies. Functions and observing ceremonies can be expensive. Just because a wedding is an expensive affair, it does not mean that you would postpone it for an infinite period. Statistics shared in the past reveal how a major percentage of personal loans was taken to meet marriage-related expenditure. 
  • Home remodelling: You may feel the need to refurbish your old home. Whether you are looking to replace that old roof, install solar panels or construct a new wall, remodel your kitchen or lend a whole new look to your garden area, taking a personal loan can help. Seeking loans from banks for house remodelling is a perfect solution in case you do not have the necessary cash in hand. Assess the estimated costs that would be incurred, decide the amount of loan required and use the personal loan interest rate calculator to gauge the amount of interest that would be charged.
  • Buying hi-end gadgets: You may not want to be boxed within the idea of living a moderate lifestyle. The urge to buy a new motorcycle or spend on a costly entertainment centre or gaming computers can be easily satiated with the amount received from a personal loan. Personal loans lend you the advantage to make an immediate purchase instead of having to save for months to make the purchase. Though you may have to repay the loan amount along with interest, it saves you from the pain of having to wait before buying your favourite item.

Additional Read:  Things to Check Before Availing a Personal Loan Online

Can Self Employed Professionals Apply For Personal Loans?

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Personal loans are the most accessible loans to mitigate an immediate financial crisis. Being unsecured, lenders heavily rely on the CIBIL score and income threshold limits of the applicant for sanctioning the loan. Hence the question arises, can the self-employed sector avail personal loans? Can a self-employed applicant get personal loans even when the credit score does not satisfy the lender criteria?

Let’s delve further for a detailed understanding.

Personal loans for self-employed

With minimal documentation and no collateral submission, personal loans are the most accessible credit options for self-employed or salaried applicants. However, since they are unsecured, lenders use stringent eligibility criteria. Listed below are the eligibility criteria for a personal loan for self employed individuals. Applicants should note that the requirements are different for each lender.

Parameters Criteria
Credit score 650 or above
Age limits 21- 65.
ITR Applicants should have filed  Income tax returns for the past 2 or 3 years.
Income A minimum profitable income after-tax which should be a viable amount in the corresponding industry
Work Experience 1 year

Applicants can further verify their eligibility using free online personal eligibility calculators. Applicants who possess a low CIBIL score are generally considered to have risky profiles. Such applicants can either apply with a guarantor who owns good CIBIL scores or ask for other secured loan options from the lender.

Conclusion

Immediate financial crisis can be addressed through easy personal loans. Being unsecured loans, maintaining a good CIBIL score along with other eligibility factors, improves the chances of loan approval.

Must Read: Self-employed? Here is how you can avail a personal loan

 

Everything That You Need To Know About Loan Against Mutual Funds

A financial crunch necessitates fundraising. 

Out of many funding tools available, a loan against mutual funds is an attractive option.  

What is a loan against Mutual Funds?

Loan against mutual funds is a secured type of loan where you pledge your mutual fund units as collateral as it is a secured loan. It comes with a lower interest rate as compared to other non-secured loans.  

Eligibility

  • You are an Indian national
  • 21 years or more in age
  • can produce age, residential and income proof
  • Income tax return statements

How to apply for this loan?

You can select from an online or offline mode of application. Your mutual fund units will stay with the lender as security until you repay the whole loan amount. You need to sign a lien document, which gives rights to the lender to sell off your units if you fail to repay the loan. The loan amount will depend on the market value of the mutual fund units. 

Salient features of loan against Mutual funds

Various functions make this loan an ideal choice in an emergency.

 They are:

  • Online application, quick approval and fast disbursement of loan funds
  • You can get 50% – 60% of the market value of the mutual fund as the loan amount
  • As it is a secured loan, the interest rate is lower
  • No penalty for foreclosure of the loan

Loan against mutual funds is an ideal funding tool in emergency financial need. It is easy to avail and swift in disbursement.

Must Read: What is a Loan against Mutual Funds and How to Avail it?

Additional Read: 2021 May Months Automobile Top Links

What Is A Commercial Vehicle Loan? -Its Eligibility & Documents Required

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A commercial vehicle loan is a great tool in case you want to start a transportation business or expand an existing one.

Below is some important information you need to know before availing a commercial vehicle loan.

In commercial vehicle loans, the lender provides lump-sum funds for buying vehicles like buses, trucks, and tippers. Whether heavy or light/new or used, you can apply for the purchase of any commercial vehicle you desire.

Fullerton India is a company that keeps the customers’ needs in mind and gives them several benefits:

  1. Loan amount starts from INR 75,000
  2. Hassle-free loan application
  3. Wide range of schemes
  4. Quick loan disbursal
  5. convenient payment
  6. Timely status update

Documents required

After filling the application form, the borrower would have to provide identity proofs, address proofs, age proofs, and bank statements of the past six months. It’s better to keep digital copies of these documents handy. Applicants require giving proof of business existence, profit and loss statement, and income tax returns of the last three years.

Rate of interest

The rate of interest of a commercial vehicle loan depends on the background details of the borrower, such as business turnover, repayment track record, number of vehicles owned, etc.

Additional Read: Things You Need to Consider Before taking commercial vehicle loan

Everything That You Need To Know About Loan Against Mutual Funds

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A financial crunch necessitates fundraising. 

Out of many funding tools available, a loan against mutual funds is an attractive option.  

What is a loan against Mutual Funds?

Loan against mutual funds is a secured type of loan where you pledge your mutual fund units as collateral as it is a secured loan. It comes with a lower interest rate as compared to other non-secured loans.  

Eligibility 

  • You are an Indian national
  • 21 years or more in age
  • can produce age, residential and income proof
  • Income tax return statements

How to apply for this loan?

You can select from an online or offline mode of application. Your mutual fund units will stay with the lender as security until you repay the whole loan amount. You need to sign a lien document, which gives rights to the lender to sell off your units if you fail to repay the loan. The loan amount will depend on the market value of the mutual fund units. 

 Salient features of loan against Mutual funds

   Various functions make this loan an ideal choice in an emergency.

 They are:

  • Online application, quick approval and fast disbursement of loan funds
  • You can get 50% – 60% of the market value of the mutual fund as the loan amount
  • As it is a secured loan, the interest rate is lower
  • No penalty for foreclosure of the loan

 Loan against mutual funds is an ideal funding tool in emergency financial need. It is easy to avail and swift in disbursement.

Additional Read: How to take a loan against mutual fund investments?

Consolidate Your Debts With Loan Against Property

property loan

Debt consolidation is a common practice among borrowers, which means taking out a new loan to pay off the previous loans quickly and comfortably. Though you can avail an unsecured loan to consolidate your debts, it is advisable to go for a secured loan as it provides a lower rate of interest. A loan against property can be one of the best options for debt consolidation. 

You can receive a loan against property from different lending institutions by guaranteeing your residential or commercial property as security. But, before you apply, it is essential to check the loan against property eligibility criteria provided by every lender. 

Now, let’s have a look at how loan against property can help you consolidate all your debts.  

1. High loan amount

By availing a loan by pledging your property, you can get a rather larger loan amount, which usually depends on your property’s current value. With such a high amount, you can easily pay your multiple debts in one go.  

2. Lower interest rates 

The interest rates are comparatively lower for the loan against property as it is a secured loan. Therefore, if you are repaying high-interest debts, then this loan can help you lower your overall EMIs and interest rates. Use a loan against property calculator to calculate your EMI and interest amount to be paid each month.  

3. Any property as collateral

You can secure this loan by pledging various types of properties ranging from your home, office space, or any other property you own. This way, you can choose the most high-priced property and get a decent amount to clear your debts.  

On the whole, loan against property is a convenient solution to not only consolidate your debts but also boost your credit score and avoid penalties.

Reference Read: loan against property v/s home loan- Which one to Choose?

 

7 Thing You Need To Know About Personal Loan Overdraft

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If you are applying for small personal loans, you need to understand what overdraft is. An overdraft means that the lender allows the customer to borrow an amount of money more than a fixed amount. This extra amount is transferred into your account and can be used for any other purpose. This amount has a fixed interest rate that you would get from the lender. Overdraft provides the best personal loan interest rates as compared to others. Enlisted below are seven benefits of personal loan overdraft:

  1. Many lenders can give you this personal loan in India. You can choose whichever suits you the best.
  1. They have fewer interest rates, and you can pay it off quickly whenever you want.
  1. It is flexible, which means that you apply for overdraft you can choose at which rate you want to pay your loan.
  1. It requires less paperwork. 
  1. You can keep track of your investment, and it helps to build trust.
  1. There are timely installments for overdraft loans which helps you to avoid basic payment handling.
  1. By applying for a personal overdraft loan, you choose to agree with a significant movement of cash.

Conclusion:

You can apply for a personal overdraft loan so that you can avail the benefits of extra cash. These loans have less interest rate, and you can pay a loan amount at your pace. There are timely payments of the loan amount.

Additional Read: Things Must Know Before Applying For a Personal Loan

Can Applicants With Low Cibil Scores Apply For Personal Loans?

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Personal loans are often saviours when a rough tide of financial crises pull you down. However, as they are unsecured and risky for lenders, these loans are sanctioned based on the CIBIL scores of the applicants. Hence the question arises: Can applicants apply for personal loans if their CIBIL scores fall short of the ranges set by the lender? If yes, what are the options? Know the cibil score required for personal loan. Here are some points.

Let’s explore the various options to obtain personal loans even with a low CIBIL score.

Personal loan for low CIBIL score applicants

CIBIL scores are the reflections of your credit management. Since in a personal loan there are no collateral submissions, the loan is sanctioned only to applicants who possess CIBIL scores of 750 or above. Any applicant with scores below 600 is considered weak. 

What reduces CIBIL scores?

  • The applicant has availed multiple loans
  • Exceeded credit limits
  • Unpaid EMIs
  • Too many rejections on loan applications
  • Credit cards settlements made at lower amounts than dues

How to avail personal loans with low CIBIL scores?

  • Apply for a joint loan with a family member who has a good CIBIL score
  • Apply with a guarantor
  • Apply to lenders who have corporate ties with your employer
  • Certain NBFCs are relaxed on CIBIL scores, although the interest rates are higher.

Conclusion

Maintaining a good credit history helps applicants settle for loans with affordable interest rates. Although personal loans are sanctioned based on CIBIL scores, some workarounds can be employed to help applicants with low scores obtain personal loans.

Additional Read: How Good CIBIL Score helps to Get Personal Loan Approved?

Debt Consolidation with a Personal Loan Online

Every loan is a liability. The more the loans you avail, the more is the liability on you to repay them. It is imperative that you pay-off these loans as soon as possible.

Debt Consolidation

It is a financial mechanism where you can pay-off all high-interest loans by availing a low-interest loan of long tenure. One of the best choices of credit for debt consolidation is a personal loan.

Personal loan as means for debt consolidation

Are you deliberating whether a personal loan online is the right choice for debt consolidation? Let us see some merits of this loan to validate your choice: 

Benefits of personal loan for debt consolidation

  • Reduction in EMI amount

When you pay a single EMI instead of multiple instalments, the amount of EMI is reduced. The interest rate of a personal loan is lower, especially when you have a good credit score.

  • Easy to manage 

A personal loan is always easy to maintain. You can easily keep track of all the EMIs and dictate your terms with the lenders.

  • Unsecured loan

A personal loan is an unsecured loan. You need not pledge any collateral. It makes the loan availing process hassle-free and straightforward.

  • Building a healthy credit score

When you have multiple loans, you inevitably fail to repay some of them on time. It damages your credit score. A single personal loan makes it easy to repay and build a strong credit score.

A personal loan is an excellent choice for debt consolidation at any time.

Additional Read: Why Applying For A Personal Loan Online Is A Better Choice?

Top Three Reasons to Choose Home Renovation Loans

Like every other thing, houses undergo a lot of wear and tear and thus, might incur some expenses in the long run. To meet these costs, you need to be ready with appropriate. Some of the initial home renovation costs might include roof retiling, plumbing, purchase of smart appliances, flooring, and bathroom renovation. 

Why Choose Home Renovation Loans?

Home renovation loans are one of the best ways to meet the expenses mentioned above without hurting your savings. It doesn’t matter if you are considering renovating the house immediately or at a later point of time, such loans can help you immensely. Here’s why you should consider home renovation loans:

  1. You can apply for an instant personal loan online by submitting necessary documents and having a good credit score
  2. Many lending institutions offer competitive interest rates for such loans 
  3. You can avail upto Rs. 25 lakhs with a tenure of 1 – 5 years
  4. Based on your eligibility criteria, you can have the loan disbursed within a few days

Conclusion:

Home renovation loans are the best to take care of the immediate expenses of your home, and you can plan your repayment as per your capabilities. 

Additional Read: How To Get a Personal Loan For Home Renovation?

Tips To Get Personal Loan For Low CIBIL Score?

CIBIL (Credit Information Bureau, India Limited) is a crucial aspect to verify the credibility of a borrower for a loan. Ranging between 300 to 900, it is a three-digit numeric summary of your credit and repayment history. Lenders usually consider a score less than 700 as a poor CIBIL score, which means that they may not disburse loans to such candidates. And, even if they do, you might be charged a high-interest rate on such loans.

CIBIL score is the first thing that lending institutions evaluate while reviewing the loan application. So, if you have an unhealthy score and want to increase it to avail low-interest loans in future, then taking out an instant personal loan might help you to a large extent. Let’s find out how it works. 

Benefits of personal loan for low CIBIL score

  1. Multiple credit debts can take a toll on your financial health. Thus, taking a personal loan and repaying all of the previous credits at once can help you lower your CIBIL score. 
  2. With a personal loan for low CIBIL score, you can consolidate high-interest debts, and get low-interest rates to pay your instalments faster. 

Factors to consider while availing an instant personal loan 

  1. After extensive research, select a lender that suits your needs and avoid multiple loan applications. 
  2. Determine the amount of loan you wish to borrow. Higher the amount, more difficult it is to repay the loan. 
  3. Calculate your monthly EMIs by using a personal loan calculator and make sure it is not more than 40-50% of your monthly income.

All in all, personal loans not only help to deal with sudden unexpected events but also boost your CIBIL score in the long-run.

Additional Read: A Quick Guide To Help You Boost Your CIBIL Score

Important Points to Note Down When Taking Personal Loans for Salaried in India

As a salaried employee, you come across various situations where you require extra cash to cover your financial needs. This is where a personal loan can prove to be an ideal financial tool for you. Many lending institutions sanction instant personal loans for salaried employees to help them deal with unexpected expenses with ease.

The amount, tenure, and interest rate to be charged on personal loans for salaried employees depend on factors such as applicant’s salary, company reputation, job profile, work experience, credit score, and repayment history. Further, this loan is an unsecured loan, which means that you don’t have to pledge any form of collateral to avail it. 

Most salaried employees can apply for instant personal loans. However, you have to fulfill the following eligibility criteria, which may vary from lender to lender. 

  1. The borrower’s minimum age must be 21 years and not more than 60 years at the time of completion of the personal loan tenure. 
  2. The applicant must have a good CIBIL score to secure personal loans at nominal interest rates. 
  3. Lastly, the applicant’s minimum monthly salary must be Rs. 20,000, which might be higher or lower according to the lender. 

Remember, you should opt for a personal loan only if you have a well-defined plan to repay the loan amount on time and avoid late fees. 

Additional Read: What Are The Mandatory Documents to Get Personal Loan For A Self Employed?

How Can Women Avail a Personal Loan?

The financial requirements of women are mostly different from those of men. So, at a time when feminism is at its hight and women are seeking equal opportunities as men, it only makes sense to provide women with customised financial services. A personal loan for women can offer enormous opportunities. Various banks, NBFCs and private lenders provide instant personal loans to women under various schemes.

Pretty Caucasian business woman at office desk with colleagues in the back

These are the things women need to know to avail an instant personal loan.

  • Quick loan approval:In most cases, women can avail personal loans with a quick process. Apply online and get started.
  • No requirement of collateral:Unsecured personal loans for women are provided without taking security and reasonable interest rates.
  • Easy documentation:The process is almost similar to that for men, carry required documents and get started.
  • Quick disbursement:The loan approval process is fast, and the loan amount is disbursed in your account as soon as possible.
  • Transparency in the process:Women can feel secure as the process is transparent the lenders can not cheat you with your money.

Conclusion:

Many women use personal loans to pay off their dues of credit cards, education loans and other liabilities at one go. Moreover, women are provided with personal loans at lower interest rates than men. Women can avail personal loans with a quick loan application.

Additional Read: How Women Can Get A Personal Loan?

Top 5 Factors Affecting Your Business Loan Application

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Although there are a lot of factors that affect the approval of a business loan application, some factors affect most applications. Capital is essential for all companies to build, grow and sustain. You can smartly apply for business loan by checking the list of the five most common factors affecting business loan applications. It would let you get an edge over other applicants before applying for a business loan.  

  1. Maintain a healthy credit history/credit score
  2. Business plan and model of investment
  3. Type of business (Risk level of your business)
  4. Age and size of your business 
  5. Availability of assets and collateral

These factors are known to play a crucial role in the acceptance or denial of your business loan application. You can use a business loan EMI calculator to make sure you can pay off monthly EMIs of your loan, and your credit score does not get affected.

Conclusion:

Looking forward to these five factors can help you better understand the lender requirements. Remember that your credit score can have a considerable impact and thus make sure to clear all your dues and liabilities before applying for a business loan.

Additional Read: What Parameters Checked By Nbfc For Giving A Business Loan?

Steps To Follow While Applying For A Property Loan

property loan

Property loan is one of the oldest and most availed loans in India. The process is approved upon mortgaging the property. Usually, banks follow a process and provide credit according to the property valuation (50%-70% of the property value). A valuable property can help you avail substantial credit amount when you need it in the form of Loan Against Property. Lenders usually do not demand you to provide details of usage of the loan amount.

Top 7 Features and benefits of a loan against property are listed as follows:

  1. A secured loan allows quick processing of a loan
  2. The loan amount can be used without any specified end-use from the lender
  3. Rate of interest is significantly low
  4. Long tenures are allowed
  5. Ability to apply for top-up loans
  6. Hassle-free application process
  7. Flexibility in eligibility criteria of the borrower

Conclusion:

Loan against property is secured loans that take your property as collateral. It is often used to generate funds and pay off dues and medical bills. Being a secured loan, you need not pay high-interest rates. You can check your eligibility for a loan against property online. After getting the amount, you can use it to pay off your dues, make arrangements for a wedding, or buy a luxury item.

Must Read: All You Need To Know About Loan Against Property

Common Factors Which Affects on Business Loan Interest Rate?

A business loan can help you to start a new business or to expand an existing one. It is a medium of enhancing your existing firms or industries. But before opting for the loan you must have to check the business loan interest rate provided by the different financial platform.

Businesswoman hands holding white card sign with Financial freedom text message

You need to know the factors that decide the interest rate of a business loan. So, let’s have a look at them: 

  • Rate of Inflation: A rise in inflation results in an increase in the interest rate on any loan.
  • Policies of RBI: RBI often announces change in economic policies to check the inflation rate.
  • Relaxation in monetary policies also lowers the interest rate on a business loan.
  • Type of business loan: Secured business loans have a lower rate of interest while unsecured business loan comes with a higher interest rate. SME business loan is a popular type of business loan.
  • Credit Score: A credit score of 750+ is ideal for the lender to offer you a business loan.
  • Business experience: Business which shows a recent history of profit-making can avail a business loan at reduced interest rates.
  • Yearly turnover of business: A profitable business will experience a hassle-free loan approval process and flexible repayment options.

Knowledge of the factors that affect a business loan interest rate helps you to select the right type of loan.

Additional Read: Top 6 Business Loan Myths That You Should Ignore

How Personal Loan Is A Good Option To Cover Your Holiday’s Expanses?

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Now covering the expenses for your dream destination is no longer a question hanging in a limbo. Personal loans from the best lenders can mitigate the financial crunches in your travel plan. Let’s delve further on it.

Personal Loan for Holiday
Personal loans are unsecured, collateral-free loans that come with flexible repayment tenures and instant approval. The funds obtained from a personal loan for travel besides funding charges, if planned well, can also be used to fund your food, accommodation and other expenses incurred.

Advantages of Personal Loans:

  1. Quick disbursal
  2. Minimal documentation
  3. Flexible repayment tenures
  4. More relaxed and less expensive than credit cards
  5. No distinction of funds allocated for international and domestic travel

    Before applying with any lender, you must verify the loan approval margin by reading through the eligibility criteria put forward by the lenders. A loan is approved based on your income, credit score and the documentation submitted.
    Given the number of options available, sieving out the lender with the best personal loan interest rates which suits your goals can be achieved by utilizing an EMI calculator.

Final thoughts
With the flexibility and quickness of disbursal, personal loans stand out as the best solution for your travel plans.

Must Read: Reduce Travel Finance Burden By Taking A Personal Loan

 

Quick Personal Loan – Solution Of All Your Financial Needs

A instant loan is a short-term unsecured loan with same day approval and disbursement. The easier availability of the quick personal loans and less documentation makes it more popular than others.

Some salient features of a quick personal loan are:

  1. The Same day loan disbursement: you will receive the loan amount on the same day as you ma an application.
  2. Online application: Online application facility saves time and efforts and makes same day approval possible.
  3. You can use funds for any purpose: you can use the funds from loan for any purpose of your choice.
  4. No collateral needed: you need not pledge any collateral against the loan and hence need not to worry about its arrangement at the time of emergency.
    The personal loan eligibility calculator considers you eligible if you fulfil these conditions:
  1. You are 18 years or older.
  2. You have full-time employment.
  3. Your salary should be a minimum of Rs. 15,000 per month.
  4. You are getting your salary through electronic deposit into your bank account.
  5. You must provide a copy of Aadhaar Card, Address Proof, a bank statement of six months, ID Proof, ITR of last year, PAN Card and salary slips of last six months.A quick personal loan is an instant solution to all your urgent financial needs.

Additional Read: Reasons Why People Should Apply for A Personal Loan

Planning To Apply For Loan Against Mutual Funds? Consider These Factors


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You can avail loan against your mutual funds from banks as well as NBFCs. This loan is in the form of an overdraft facility and charges interest only on the amount you use as credit.

Now a days, loan against mutual funds is a versatile option for borrowers. It provides security as well as expensive in comparison to other types of loans available in the market.

Consider the following factors while you apply for a loan against mutual funds:

  • All mutual fund units are not eligible for a credit. A list of approved mutual funds is available with every lender.

  • Your loan request will get a consideration only after you write a lieu of your units in the name of the lender.

  • You may get funds up to 50-60% of the value of the equity type mutual fund units and up to 75-80% in case of debt type mutual fund units.

  • Almost all banks and some NBFCs having assets more than Rs. 100 crores offer loan against mutual funds.

  • You cannot redeem your MF units during the loan tenure but may continue to receive dividends.

  • If you default in repaying the loan, the lender can invoke the lien and instruct mutual fund Company to redeem your units for loan repayment.

It would help if you adequately consider these critical factors before deciding to go for a loan against mutual funds.    

Must Read: How To Take A Loan Against Life Insurance Policy?

What Are The Small Businesses Loans Available For Minorities?

business loanm

In this harsh world of business, it is challenging to become a top entrepreneur, especially for minority business owners. To aid financial necessities in income-generating ventures and solidarities the National Minorities Development and Financial cooperation have devised concession loans.

There are different types of business loan in India. One can choose according to their requirements. Let’s delve further into this.

There are two credit lines for annual income defined to be eligible under this scheme.

  • Credit Line I : 

    • Rural sector: Rs. 81,000
    • Urban sector : Rs. 1.03 Lakhs
  • Credit Line II:

    Annual family income of Rs. 6 Lakhs

Schemes:

  1. Term Loans
Line of Credit  Max Limit allowed
Credit I Rs. 20 Lakhs*
Credit II Rs 30 Lakhs*

The Interest rate for 

  • Men: 6% 
  • Women: 8%

2. Micro Finance

Line of Credit Max Limit  Interest rates
Credit I 1 Lakh* 7%
Credit II 1.5 lakhs* Men: 10% 

Women: 8%

3. Mahila Samridhi Yojana

  •  Self-help women groups are sanctioned micro-credit of Rs. 1 Lakh* per member 

Small Business Loans from NBFC

Specific NBFCs, e.g. Fullerton India, provides solidarity loans from Rs. 22,000 to Rs. 45,000* for short tenures for women without any collateral.


Conclusion

Small business loans help small ventures to grow. Applicants can choose the best-suited plan, lender and interest rates using business EMI calculator.

Must Read: Top 6 Business Loan Myths That You Should Ignore

How To Avail SME Business Loans For Growing Business?

sme

Loans that address the financial requirements of Small and Medium Enterprise are SME business loans. SME and MSME sectors provide substantial employment opportunities, primarily through industrialisation in rural and backward areas. It is also making important contributions to the nation’s GDP.

Generally SME loan are available under government schemes in conjunction with many banks and NBFCs. You can apply online by filling an online application form and submitting necessary documents, like:

  1. Identity Proof: Aadhaar Card, Driving License, PAN Card, Passport, Voter’s ID, etc.
  2. Address Proof: Aadhar Card, Driving License, Passport, Voter’s ID, etc.
  3. Proof of Business: Business Entity Proof, Incorporation Certificate, Partnership Deed, Shops and Establishment Certificate, etc.
  4. PAN Card: of the business entity and all partners/promotors.
  5. Financials documents: Audited financial statements, Balance Sheet, Profit and loss statement, Tax audit reports and VAT returns, etc., for the last three years.
  6. Bank Statements: For the previous six months.

To avail SME business loan, you should be a proprietor, a self-employed, or a partnership or private limited company. You should be in the age group of 21 to 65 years, the minimum annual income of your business should be Rs. 1.5 lakhs and you should be in this business for at least two years.

Additional Read: Startup Loans v/s SME Loans- Types of Business Loan

Important Things Financial Institutions Ask if You Apply for a Business Loan

Securing funds through business loans continues to be the standard choice for businesses. With the advent of online applications, things have become easy “ business loan apply” options online.

But there are several things which everyone have to check before applying for business loan. Because every financial institutions have different requirements. But some of the common things are mentioned below which is surely asked by financial platform.
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Crucial flags Considered by the Lender

  1. Collateral

Financial institutions scrutinise the collateral submitted by applicants to reduce the risk of default. 

  1. Business plan 

Most of the lenders request applicants to submit their business plan with a summary that includes details regarding the team, financials, product and company.

  1. Business financial statements

These audited financial statements should include both personal and business details of any debts in the past, credit card statements, and investment details.

  1. Details on accounts payable and receivable

Lenders would also necessitate reference details along with credit and sale history.

  1. Insurance details

To ensure there is no scope for default, lenders might request for the insurance details

  1. ITR and GST returns (of the past six months or one year.)

Conclusion

After the Startup India campaign in 2015, business funding schemes have been on the rise. Applicants can choose the best plan suited for them using a business EMI calculator. With the right lender and authentic data submission by applicants, availing a business loan is far from complicated.

Must Read: Stages to Get a Business Loan That you Must Know

Smart Ways To Save Your Money Through Personal Loan

Personal-Loans (1)

A financial emergency can arise at any time in life and one needs desperate measures to tackle such situations. At such times availing of personal loans can bail you out of the difficult situation. A personal loan can be availed for fullfill your ant requirement i.e, wedding expenses, medical emergency, travel funds, tutions fess, home renovation, debt consolidation and much more. Here are listed some of the smart ways in which an instant personal loan can help you save money. These are:

  • If you have accumulated debt on credit cards, it is better to take a personal loan and pay off your credit card dues which will reduce your monthly burden. Credit cards have a much higher interest rate as compared to personal loan interest rates.
  • If you have a big expense lined up like a wedding in the family or home renovation, it makes sense to take easy personal loans and keep repaying it equated monthly installments over the years instead of depleting your savings in one go.
  • Your credit card debts can severely impact your credit rating and make you fall in the category of high-risk borrower, therefore it is advisable to take a personal loan and pay off your credit card debts to improve your credit score.
  • Credit card usage involves hidden charges and additional costs that customers are sometimes not aware of. Personal loan interest rates are lower and do not involve any hidden charges.

Must Read: Things to Check Before Availing a Personal Loan Online

Best Tips For Buying A New Two Wheeler In India

Two-wheelers have become a lifeline for commuting by middle-class Indians as they are a cheaper mode of transport as compared to cars and can be easily purchased by making a full down payment or by taking a two wheeler loan from banks and private lenders. Hassle-free parking, easy maneuverability, and low maintenance are some of the attractive features of owning a two-wheeler.

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

Tips to buy a Two Wheeler in India  

While choosing a two-wheeler, you must take into consideration mileage, maintenance and servicing cost of the vehicle as it can burn a hole in your pocket if you buy a two-wheeler which is a fuel guzzler and requires heavy maintenance. Also, make sure that the two-wheeler manufacturer has an extensive network of service centers across the city.     

You must also take into consideration the resale value of the two-wheeler so that you get a good deal for your two-wheeler if you want to sell it after a few years.

Once you decide to buy a two-wheeler of your choice, you must explore the option of financing it through your preferred bank by taking a two-wheeler loan so that you don’t deplete your savings by making the entire down payment upfront.

The two-wheeler interest rate is lower as compared to personal loans and you can comfortably repay the loan amount in Equated Monthly Installments (EMIs) by choosing a tenure that suits your budget.

Additional Read: Use 5 Tips to Pay Off your Two Wheeler Loan Faster

Common Mistakes to Avoid When Applying for a Business Loan

Business loans are usually sanctioned for starting a new business, for buying machinery and equipment and for business expansion and related activities. A business loan helps to meet the working capital requirements of an entrepreneur or an enterprise which aims to make an additional investment to grow its business.   

business

Your business loan application can be denied due to some common mistakes and disqualify you from securing a business loan.

  • First and foremost, you should provide a concrete and detailed business plan to the bank or any other financial institution from which you are seeking a business loan. The lender thoroughly scrutinizes your business plan, and if he is not convinced with your presentation, he is likely to turn down your business loan application. This stands for online business loan applications also.
  • Some lenders require collateral security for a business loan in the form of residential or commercial property, stocks, insurance policies, commercial vehicles, etc. and lack of collateral may result in loan rejection.
  • You need to have a good credit score while applying for a business loan, and if you have defaulted on any loan payments in the past, the banks or private lenders are hesitant to sanction a business loan.
  • Another common mistake that borrowers make while applying for a business loan is not reading the exhaustive loan agreement documents before signing them. One must go through the documents carefully as there are hidden charges and clauses mentioned which should not be ignored.

    Must Read: Things To Remember When Getting A Business Loan

How To Get A Personal Loan Without A Job?

pr loan

Getting a personal loan can be a daunting task if you are without a job but there are few ways by which you can secure a personal loan even if you are unemployed.

Instead of approaching a financial institution for a personal loan, you can ask your friends and relatives to lend you money on a nominal rate of interest lower than the financial institution interest rate. But make sure to repay the loan amount as per your promised timeline to avoid bitterness with your friends or relatives.

Approach private lenders in case your bank refuses to give your personal loan. Private lenders usually sanction unsecured loans by charging a higher rate of interest as compared to banks. In that case you can get a loan from any lender if you fulfill the personal loan eligibility and have an ideal credit score. 

Take advantage of your credit score with your existing financial institution. If you have taken a loan earlier from your associate financial institution and have repaid it on time without delays, your financial institution will consider your loan application even if you are out of job by taking into consideration your creditworthiness.

If you are without a job, you can also apply for a personal loan against your life insurance policy or by pledging your movable or immovable assets in the form of property or gold jewellery. In this case, the bank’s risk proposition decreases drastically, which helps you get the loan at comparatively cheaper rates.    

Additional Read: Reasons – Why You Should Take A Personal Loan?