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.

Get Instant Personal Loans Without A CIBIL Score

Consider using collateral for your loans

If you have a low credit score, you may need to offer security to get a Personal Loan. You can use your valuable assets as collateral, making it easier to get approval for a loan from the lender of your choice.

Show your creditworthiness

Lenders always look for borrowers who are capable of repaying their loans. If you have a stable source of income, you can quickly get personal loan immediate approval from any lender. Even if you have a low or no credit score, you can use your salary slip or bank statements to prove your income.

Use a guarantor for your loan

Having a co-applicant or guarantor can increase your chances of getting approved for a personal loan with no CIBIL. However, make sure that your guarantor has a steady income. They will need to complete the KYC process. Lenders will likely approve your loan application if your co-applicant meets their criteria after checking their bank statements and credit history.

If CIBIL, the credit bureau, fails to update your credit report accurately and promptly, or if incorrect information is recorded, you may miss out on getting approved for loans. Therefore, it is crucial for you to regularly check your credit report and ensure that you maintain a good credit score by making timely repayments. This will help you avoid any negative impact on your creditworthiness due to inaccuracies in your credit report.

Offline vs Online Personal Loans: Which One to Choose?

Interest Rates and Fees

One of the main differences between offline and online personal loans is the interest rates and fees that borrowers are charged. Online lenders generally have lower overhead costs than traditional brick-and-mortar lenders, which can allow them to offer lower interest rates and fees. Additionally, online lenders may offer a variety of loan options with different terms and fees, allowing borrowers to choose the loan that best fits their needs and budget.

In contrast, traditional lenders may have higher interest rates and fees due to the additional expenses associated with maintaining physical locations and staff. However, traditional lenders may offer more personalized customer service and the ability to meet face-to-face with a loan officer.

Application Process

Another major difference between offline and online personal loans is the application process. Offline lenders typically require borrowers to apply in person, either at a branch location or with a loan officer. This can be time-consuming and may require the borrower to take time off work or travel to the lender’s location.

Online lenders, on the other hand, allow borrowers to apply for loans from the comfort of their own homes or offices. The application process is usually quick and easy, with borrowers providing basic information such as their income, employment status, and credit score. Some online lenders may even offer pre-approval within minutes of submitting an application.

Approval and Funding

The approval and funding process is also different between offline and online lenders. With offline lenders, the approval process may take longer due to the need for additional documentation or verification of information. Once approved, borrowers may receive their funds in person at a branch location or through a mailed check.

Online lenders typically offer faster approval and funding times, with some lenders offering same-day or next-day funding. However, online lenders may require electronic transfer of funds, which may take additional time to process depending on the borrower’s bank.

Credit Requirements

Both offline and online lenders consider a borrower’s credit history and score when evaluating loan applications. However, some online lenders may have more lenient credit requirements than traditional lenders. This can be beneficial for borrowers who have less-than-perfect credit or who are just starting to build credit.

Additionally, some online lenders may offer loans specifically designed for borrowers with poor credit or no credit history, such as secured loans or loans with higher interest rates. Traditional lenders may have stricter credit requirements, making it more difficult for borrowers with poor credit to be approved for a loan.

Conclusion

When deciding between offline and online personal loans, it is important to consider the differences in interest rates, fees, the application process, approval and funding, and credit requirements. While online lenders may offer more convenience and flexibility, traditional lenders may offer more personalized customer service and a wider range of loan options. Ultimately, the decision of which type of loan to choose will depend on the borrower’s individual needs and preferences.

Loan Against Property: An Ideal Guide For Instant Application

Loans against property are secured loans offered based on the value of the collateral property. Borrowers can seek loans by attaching any residential, commercial, or industrial property owned by them as a guarantee for their short-term immediate need of funds. The article provides an ultimate guide for easy instant loans against property.

Research Thoroughly

Loans against properties are large mortgages, and comparing applicable interest rates, processing fees, charges, and tax deductions is crucial for borrowers before finalizing the right lender. It is convenient for them to visit the lender’s official website to avail of interest rates and an online loan against property EMI calculator.

Maximum LTV Ratio

While comparing the interest rates on loans, applicants must ensure they fetch the lending institution that offers the maximum loan amount toward the collateral property. The LTV (Loan-To-Value) ratio represents the amount of loan available based on the market value of the property.

Loan Eligibility and EMIs

Once the right lending partner is selected, the eligibility criteria as per the institution must be confirmed. A loan against property EMI calculator for pre-calculation of monthly installments is easily available in the loan against property instant apply section.

Prepare Necessary Documents

When applicants follow a loan against property instant apply online option, they necessarily need soft copies of all the documents like identity proofs, address proofs, bank statements, property registration documents, ownership proofs, and declaration deeds related to the property. Keeping documents prepared fastens the loan application procedure.

Verification and Approval

After the documents are submitted, the institution verifies them and forwards the process for KYC verification which is the mandatory practice promoted by the Government of India. The successful KYC verification is forwarded for final approval and according to the institutional process, the loan amount is credited to the borrower’s account.

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Empowering Women Entrepreneurs: How a Business Loan Can Fuel Your Success

Taking the company to the next level might be challenging for a woman entrepreneur. Lack of capital is one of the main hardships for any entrepreneur. Consider using business loans to get over this problem and expand the company.

Women entrepreneurs who want to expand their businesses, hire more employees, or upgrade their equipment may do it with the help of a business loan for women. Additionally, it helps cover operating costs when business is slow, giving women the financial security they need to deal with unforeseen circumstances.

In addition, lenders do not demand collateral from women taking a business loan, making it easier for them to borrow money. Lenders also offer flexible repayment terms and higher amounts of loans at competitive interest rates.

With regard to the amount of capital, payback periods, and business loan rates available, business loans are quite flexible. Women entrepreneurs may tailor the financing to suit their demands and financial constraints.

Moreover, obtaining and repaying a business loan for women may assist in building credit scores and history, which are essential for planning future business initiatives. Women business owners may have easier access to finance with higher credit, which can spur further growth.

Overall, business loans may be an effective instrument for women entrepreneurs who want to commence or grow their firms. Women entrepreneurs may overcome the difficulties and succeed in the cutthroat business environment if they have access to financing.

If you are a woman looking for a business loan, then look no further and opt for a business loan from Fullerton India, to get financial assistance up to Rs. 50 lakhs, with flexible repayment options, competitive business loan rates, and a host of benefits and privileges.

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Steps for Business Loan Application Process

Below are a few important steps to consider while applying for business loans:

Choose the Type of Business Loan

When business owners and entrepreneurs need funds to carry out their business activities, they can apply for business loan online or offline. Based on the business size, turnover, and specific requirements, business owners might apply for SME or MSME loans, working capital loans, or machinery loans for purchase and set-up. Selecting the right type of business loan can help borrowers grab lower interest rates with appropriate loan amounts.

Choose the lender

Borrowers must smartly compare the lending institutions’ interest rates, eligibility, loan amounts, and repayment flexibility before applying for business loans. Borrowers must avoid focusing on the maximum loan amount offered, and must also be taken into consideration the loan processing fees, late payment charges, and EMI charges.

Check Eligibility

Business loans are offered to individuals, companies, SMEs, MSMEs, shops, medical clinics, restaurants, and other service providers. When individuals apply for business loans online, the eligibility criteria for specific business loans differ based on self-employed professionals, traders, retailers, service providers, and private or partnership companies or HUFs.

Check Credit Score

The business entity or self-employed individuals applying for business loans must deliver a good credit score of 750 or more for the lending institutions to consider higher loan amounts with the best interest rates. The credit score is of great significance in business loan documents since it denotes the financial stability and punctuality of the borrowers in the repayment procedure.

Prepare Documents

The sheet size of the funds involved in business loans requires more documentation than in personal loans. Business loan documents included are company registration, the company’s balance sheet, the ITR file, the bank statement, the company’s KYC, and the business owner’s KYC documents.

Verification and Approval

Once the soft copies of mandatory documents are submitted online, after a successful KYC verification, the banks credit the agreed loan amount to the company’s or the business owner’s bank account. Borrowers must follow a timely repayment process to avoid a downgrading credit score.

Also Read: How to Get a Personal Loan With A Suitable Repayment Tenure

Benefits of Personal Loans in India

Personal loans in India offer numerous benefits for working-class, self-employed individuals and business entrepreneurs since they are utilized as per the borrower’s requirements. In the article, the benefits of personal loans for borrowers are discussed briefly.

Instant Accessibility

The increasing use of the internet and mobile phones, in general, have ensured quick access to various services. A financial institution’s official website provides ample information for borrowers willing to avail of an emergency personal loan online. Besides, the digital process helps instant loan disbursement with quick loan approvals.

Collateral-Free Loans

Personal loans are unsecured loans offered by institutions based on the financial stability and borrower’s fund requirement. No collateral is required for an emergency personal loan online since the amount is usually lower than for property and home loans. These types of personal loans fulfill the education and marriage purposes of borrowers.

No End-use Restriction

Other loans like loans against property, vehicle loans, and home loans come with an end-use restriction for borrowers, which means they have to utilize the loan funds for specific purposes, or the loan becomes void. Personal loans are adopted for numerous purposes including, education, home renovation, business expansion, marriage, and home appliance purchases.

Instant Approval Process

After evaluating the monthly installment through a personal loan EMI calculator, the loan application is submitted online. The quick application, online document submission, credit score, and mandatory KYC verification process enable institutions to provide instant loans for creditworthy applicants.

Flexible Repayment Procedures

When the documents and credit score are authentic as per requirements, the loan might be approved within hours of application. The monthly burden due to personal loan EMI depends on the principal amount and the loan tenure. However, institutions offer adjustable repayment procedures to curb penalties on borrowers before the loan matures.

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Education Loan Procedure in India

According to a report by Statista, India tops the category for highly educated migrants moving out of the country, with almost 3.12 million students migrating yearly. Education loans are the way for the new generation of India to obtain international exposure in their respective majors. In the article below, the process for applying for an education loan is discussed briefly.

Loan Eligibility Criteria

Once the educational institution for higher studies is chosen from within or outside India, applicants must ensure they meet the eligibility criteria for a personal loan for studies. The criteria for borrower’s age, education, country for higher studies, and collateral value are followed by institutions as per their policies. Applicants must ensure they meet the eligibility criteria for their personal loan requirements.

Application Process

Loan applications are submitted both online and offline as convenient to the borrowers. The application letter involves a declaration for securing the loan, the degree, the name of the educational institute, the country where the university is located, and the currency for conversion.

Documentation

A personal loan for studies or educational loans requires specific documents deferring as per institutions since most offer loans based on collaterals. They need to submit the official admission letter from the educational institute, the tenure, fee structure of the course/degree, income documents, and fixed deposit ownership if any.

Collateral Requirements

Educational loans below Rs. 7.5 lakhs are allowed without a collateral attachment in India. However, loans above the collateral-free range require any residential, commercial, or industrial property as a guarantee. Applicants might opt for fixed deposits as collateral to ensure their personal loan requirements are met.

Personal Interview

Once the admission and collateral documents are submitted to the lender, the applicant needs to appear and clear the personal interview conducted by experts on behalf of the lending institution. The experts question applicants regarding their past studies, academic performance, course details, and educational institute details.,

Approval and Loan Disbursement

After the successful application and KYC verification process is completed, the loan amount is credited directly to the bank account mentioned by the university/college the applicant wishes to study. They can even opt for semester-wise payments if required.

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How to refinance a Personal Loan?

Loan refinancing is when the outstanding loan by the borrower is fully repaid with a new loan allowing a lower interest rate. Interest rate fluctuations encourage customers to opt for new lower installment loans. Here are a few important steps to consider while applying for a personal loan refinance.

Understand the Requirements

The most common mistake by borrowers in loan refinancing is securing a new higher amount of loan for the outstanding loans due to lower interest rates. Borrowers opting for loan refinancing must carefully calculate and consider the exact amount of the new loan to pay off the outstanding one with lower interest rates.

Check the Credit Score

The timely installments by borrowers and increased income levels might generate better credit stability for borrowers. The borrower’s credit reports are periodically updated by institutions as per their mandate. A better overall credit score and decreased loan amount might allow borrowers to opt for loans with fewer interest rates.

Connect with the Current Lender

Once based on improved creditworthiness, and qualified for lower personal loan interest rates from other institutions, borrowers must connect with the existing lender if they prefer the same or lower interest rate for the current outstanding loan. Since the current lender is already associated with the borrower, they might accept the deal to retain an outgoing valuable customer.

Compare institutions and Apply for Refinance

Lower personal loan interest rates translate into smaller repayment amounts by the borrowers. Comparing the interest rates offered by new lending institutions is critical for borrowers looking for a personal loan refinance. When the terms and conditions related to the new lenders are read and accepted, borrowers can fill up the application, submit the required documents and clear the outstanding loan with the new loan amount’s arrival.

Also Read: Startup Business Loan: Detailed Guide for Small Businesses

Secure Required Funds Easily: Personal Loan Eligibility and Documentation

Securing a personal loan is always the first choice for individuals looking for instant funds. As per data from Care Ratings, the Unsecured loans segment grew by 140 bps in January 2023 from a year ago. Personal loan processing is quick in the technological era by following a 100% paperless process. Each step – from making an application to loan disbursal – can be completed online.

Account Assets Audit Bank Bookkeeping Finance Concept

For seamless loan processing, customers should apply after considering personal loan eligibility criteria and documentation as per the lender’s policy.

Personal Loan Eligibility

An Indian resident aged between 21-60 years
Minimum salary should be between Rs.20,000 – 25,000.
The CIBIL score should be 750+.
The applicant should have an overall work experience of more than one year.

Personal Loan Documentation

Lending institutions leveraging technology for loan processing requires minimal personal loan documents. The set of documents includes:

Identity Proof
Address Proof
Age Proof
Latest 3 months’ Salary Slips
Past 6 months’ bank statements
Form 16 or ITR Acknowledgement
Income Proof

Four Easy Steps to Apply for a Personal Loan Digitally

Provide an active phone number to receive the OTP (one-time password).
Enter the applicant’s personal, income, PAN (Permanent Account Number), and bank details.
Enter loan details. The personal loan amount can be as high as 25 lakhs which can be repaid between 12-60 months.
Upload the relevant documents as mentioned above.

This way, customers can apply for a collateral-free personal loan online after checking eligibility with the lender and keeping the required personal loan documents handy.

Also Read: What You Need to Know About Interest Rates on Unsecured Business Loans in Bangalore

How to compare personal loan offers?

Exploring and comparing institutions to avail of the right lending partner is crucial for personal loan borrowers. A small comparison mistake might result in higher loan repayment amounts. The best steps to follow while comparing personal loan offers are:

Credit Score

Credit scores are important for borrowers and lenders equally. A high credit score above the range of 700 satisfies most lenders’ requirements with less defaulting probability. Lenders are willing to offer fewer interest rates for borrowers with good financial stability. One must review their credit report and based on their score, apply with numerous institutions to fetch the lowest possible interest rates.

Eligibility and Required Documents

Instant personal loan are applied online with a few easy steps. Applicants must ensure the basic eligibility for loans as per age, location, and residence match according to the institutions. They might save time applying for instant loans by creating soft copies of the required documents before initiating the application process.

Terms and conditions

The terms and conditions mentioned in the loan documents are critical information for the borrower’s understanding. They must ensure they agree to the interest rates, loan tenures, repayment procedures and charges of the instant personal loan mentioned in the agreement.

Interest rate and EMI Calculations

Interest rates are critical since even a few basis points difference can result in huge interest amount differences later with higher personal loan EMIs. The online personal loan EMI calculator facility enables the borrower to pre-calculate an estimated monthly installment amount. Borrowers must ensure they fetch and apply for the lowest interest-paying loan.

Loan Tenure and Early Repayment

Loan tenure is an important consideration since longer loan tenure turns into higher repayment amounts until maturity. During the later years, the borrower might opt for loan refinancing with lower interest rates. Since personal loans are unsecured loans, some lenders might allow early loan repayment without additional charges levied on the borrowers.

Must Read: What is the Minimum Salary to Get a Personal Loan?

Key Differences Explaining Personal Loan vs Overdraft

The lending market is growing with time and is accessible online to get finance during a financial crisis effortlessly. Two of the most popular credit lines are personal loans and overdrafts. Here are the key differentiating points to understand what they entail:

Meaning: A personal loan is a debt for a certain period at a rate of interest. Various eligibility parameters are the base for the approval of the personal loan. Apply online on the lender’s official website. On the other hand, an overdraft is a credit facility offered by financial institutions to their existing clients depending on their account balance.
Disbursal: Lenders provide a lump sum amount to personal loan applicants. On the other hand, an overdraft facility allows customers to withdraw funds up to a limit as and when required up to a limit. These excess funds are other than the availability in their accounts.
Processing and Availability: Personal loan requirements and processing involve verifying the documents submitted. In contrast, an overdraft credit facility allows existing customers to withdraw the excess amounts without further processing.
Debt Limit: The personal loan amount is usually higher than an overdraft facility.
Interest Rate: Overdraft interest rates are usually higher than those charged on a personal loan. Apply online with reputable lenders offering personal loans at competitive interest rates, starting at as low as 11.99%.
Tenure of the Debt: Personal loans are offered for a long duration of up to 5 years. On the other hand, an overdraft facility is a short-term debt that has to be cleared within a year generally.

One can choose a credit line and meet urgent or planned expenses based on the fund requirement.

Types Of Property To Avail Loan Against Property

A loan against property (LAP) is one of the most favorable types of loan for individuals seeking funds for various purposes. In a LAP, a loan application is accepted and sanctioned only after the borrower pledges their property of a particular kind to the institution.

To consider such a type of loan, apply for a loan against property with a reliable lender like Fullerton India or visit their nearest branch.

Types of Property to Avail Loan against Property

Residential Property

Individuals can avail of loans from institutions against their home or any other residential property they or their family own.

Commercial Property

Commercial properties are primarily used as collateral for loans by business-class people. The property is either owned by their firm or by themselves.

Industrial Property

MSME organizations avail of such loans and put their industrial property as collateral for a loan from any financial institution willing to accept it.

Lease Rental Discounting Property

A property already leased by the owner can also be accepted as collateral for a loan against the property. The rent received from the property can be transferred as EMIs toward the borrowed loan.

LAP is availed by pledging property as collateral. This type of mortgage loan can provide immediate funds, the interest rates for LAP are competitive, and the repayment tenure is flexible.

The LAP can be approached for various purposes depending on the borrower. Individuals can apply for LAP for higher or foreign education, wedding, and debt repayment. Since LAP is considered a loan with almost no-end use restriction, they are available easily with competitive interest rates. Hence apply for a loan against property today and fulfill your goals.

Tips To Get A Personal Loan for Self-employed Persons

A personal loan is a multipurpose loan and can be used by self-employed persons, including doctors, chartered accountants, etc. It gives flexibility and ease of access for business growth. The personal loan amount can be up to Rs.10 lakhs depending on the lender and applicant’s profile. Lending institutions offer uniquely designed personal loans for self-employed individuals.

Here are the tips to get approved for a specifically designed personal loan for self-employed persons:

Check the Eligibility

Reputed lending institutions and NBFCs (Non-banking financial institutions) provide easy loans for self-employed individuals. One should check the eligibility conditions of a lender before making a loan application to avoid rejection. Lenders provide a free personal loan calculator on their official website. Borrowers are advised to use this calculator to make an informed decision.

Consider Interest Rates

Loan cost is the primary factor that borrowers need to consider before applying for a personal loan. It should be a competitive rate that can make loan repayment easy. Personal loan interest rates are affordable with reputed NBFCs.

Preparation for Documentation

Lenders need to authenticate their customers’ identity, address and income level. Therefore, they need some documents issued by the Indian government. Getting ready with the required documents helps to make an application faster.

Flexible Loan Tenure

Look for a lending institution or NBFC offering a personal loan for self-employed with a flexible loan tenure. It can be as long as 60 months.

For the convenience of application, borrowers can make an online application. If they are comfortable with offline processing, there is a facility for offline application also.

Also Read: 4 Important Things You Should Know About CIBIL Score to Avail Personal Loan

How To Avoid Risk of Missed EMIs

Collateral-free funding options, fast approval, and versatility are a few driving factors for increasing personal loan outstanding. Borrowers must ensure that they pay each EMI (Equated Monthly Instalments) on time to avoid a negative impact on their credit score. Delayed EMIs lead to penalty charges and fall under the minor default category.

Here are a few crucial points that can help to avoid the risk of delayed payments:

Apply for an amount that fits in their budget for easy repayment

Before applying for a Personal Loan, loan aspirants can check the monthly EMI using an online personal loan EMI calculator. Most lenders offer this calculator on their official website for free.

Choose a convenient tenure

Individuals with a low monthly income can consider a long-term repayment tenure. It helps them to reduce the loan EMI. Borrowers can repay a personal loan in easy and small EMIs in a convenient tenure between 12-60 months.

Be proactive

If borrowers suspect they will not be able to pay the next EMIs on time, they need to contact their lending institution before the due date. They need to explain their financial situation and check if the lender can temporarily help and stop the EMI. If it is impossible, borrowers can request the lender to reduce the EMI for a few months. The lender can honour this request, especially when one has a clear credit history and a good relationship with the lender.

These are the major steps that one can take to avoid the risk of missed EMIs for an online personal loan and maintain a spotless credit history for further favourable loan terms. Apply for a loan as an informed user and get ready with the personal loan documents required for quick processing.

Also Read: 4 Tips to Manage Your Personal Loan EMI Payments in a Better Way

Which Is More Favourable – A term Loan or an Overdraft Facility

Among various credit lines, two are term loans and an overdraft facility. To know which is better or more favourable, borrowers need to know the grounds for both.

Understand Term Loans

As the name is self-explanatory, a term loan is provided for a predefined period, generally 12-60 months, in the case of a personal loan. It can be a short-term loan, medium-term loan or long-term loan. Personal loan instant approval facility is the primary driver for the rising demand for personal loans.

Here the borrower receives a lump sum amount sanctioned by the lending institutions.
The lender charges interest at a fixed interest rate depending on the personal loan eligibility during the loan tenure.
The loan amount is distributed among small EMIs (Equated Monthly Instalments) for easy repayment. The EMI calculation varies with the term or tenure of the loan.

Understand Overdraft

It is a type of loan provided in access to an amount in a savings or current account. It can be defined as a pre-approved credit facility provided to the borrower for a certain period. During this period, the borrower can withdraw the effective credit balance within the sanctioned limit.

Unlike term loans, it involves subsequent disbursements on request. It allows borrowers to withdraw funds as and when required during the specified period.
The interest is calculated on the amount utilised only and not on the entire approved limit.

Thus, a term loan is suitable for individuals looking for a small buy or meeting business needs using a lump sum amount. In contrast, individuals who want to manage their day-to-day lifestyle needs with flexible withdrawal and repayment options can go with an overdraft facility. Depending on the personal loan eligibility, the loan amount can go as high as Rs.25 lakhs.

Also Read: 10 Rules to Get the Finest Deal for Personal Loan

How To Get An Affordable Personal Loan

Low-interest rates are definitely one main criterion when finalising a personal loan. Personal loan calculators, like eligibility calculators and EMI calculators, assist borrowers to determine personal loan affordability. Here is how one can get an affordable personal loan:

Competitive Interest Rate

Key factors driving personal loan growth at an affordable rate include healthy competition among lending institutions. Before taking the plunge, borrowers should explore financial institutions and NBFCs (Non-banking Financial Companies) offering personal loans at competitive interest rates.

Maintain Good Credit Score

A loan-seeker’s credit score is directly linked to a loan interest rate. A higher credit score helps to obtain a personal loan at more favourable terms with a lending institution. Also, maintaining a good credit score is a factor within the borrowers’ control that is considered to offer personal loan interest rates. Repay the existing loans or debts on time, and keep the credit utilisation ratio low to maintain a favourable credit score.

Consider Pre-approved Loan Offer

Existing customers of a lending institution can take advantage of pre-approved personal loan offers. Lending institutions generally offer lower personal loan interest rates depending on their clients’ credit behaviour towards their previous debts. It can help to get an affordable personal loan.

Thus, these factors increase the chances of getting a personal loan at affordable interest rates with trusted and renowned lending institutions. Utilise personal loan calculators to check loan eligibility before making a loan application with the lender.

Also Read: Check Out the Various Forms of Long and Short Term Personal Loans

Apply for a two wheeler loan online

Indian commuters of every age group prefer scooters and motorbikes as they can easily manoeuvre through city traffic and take advantage of the fuel economy. It is convenient to own a two-wheeler with easy financing against affordable two-wheeler loans. Reputable lending institutions can help individuals to get one in no time.

Individuals need to follow these steps to apply instantly for two-wheeler loans:

Fill in the Online Application Form: Log in to the lender’s official website and fill out an online application form to request a two-wheeler loan. The application is forwarded for further processing. The lender’s representative can call the applicant to explain available two-wheeler loan options and take the process further.

Documentation: Thanks to the digital process, it is a paperless process to apply for a two-wheeler loan with minimal documentation. Lenders need the basic documents to verify the borrower’s identity and financial stability.

The common set of documents for two-wheeler loans is as follows:

Salary Slips or Income Tax Returns (ITRs)
Form 16
KYC (Know Your Customer) Documents

Verification: Following a 100% digital process, borrowers need not visit the lender’s office to complete the verification process. The borrower can upload the documents for two-wheeler loans online for verification by the lender.

Approval: After the verification of documents, the loan is sanctioned to cover the two-wheeler cost. There is an option of zero down payment for two-wheeler loans. It enables borrowers to save an upfront payment.

Thus, owning a two-wheeler is a convenient and fast online process. Apply online on a trusted lending institution’s official website and secure your two-wheeler today!

Also Read: How Two Wheeler Loans Help You Get the Vehicle of Your Choice?

Features of Loan Against Mutual Funds

Unpredictable ups and downs are a part of human life. There can be varied reasons for liquidity crunch in one’s life, and the only way to solve these situations is through an arrangement of immediate funds.

A loan on mutual funds (LAMF) is one such solution for investors in need of short-term funds. Mutual funds are like any other financial assets undertaken for longer tenures to gain full-fledged returns later. An overdraft or loan on mutual funds is provided by assuring mutual fund holdings as collateral.

Loan against MF units is better than opting for personal or credit card loans with high-interest rates. The loan against mutual funds interest rate can be low with a good credit score, and Fullerton India offers competitive loans against mutual funds interest rates.

Features of LAMF:

As expected, the LAMF can help individuals cater to their short-term funding needs by using their mutual fund holdings as collateral. Selling these units might get them lower profits than what is offered years or decades later.

LAMF is like an overdraft facility on a mutual funds account, which allows the borrower to withdraw more funds than the account availability. Once the pledging of mutual funds is complete, an overdraft limit is set on the account based on the value of the mutual fund’s units.

In these types of secured loans, where the collateral is an investment instrument, the time to obtain a loan is the least, with minimal documentation required. The interest is levied only on the amount utilised and there are no pre-payment charges whatsoever.

Not all institutions provide loans against mutual funds to borrowers. Some institutions might require mutual fund plans of a specified list of asset management companies as collateral. The loan limit for borrowers also differs accordingly.

Also Read: How to Manage Your Month-End Cash Crunch with a Personal Loan?

Latest Classification of MSME

Micro, Small, and Medium Enterprises (MSME) are the driving force of the Indian economy. These entities are engaged in production and service-related sectors like manufacturing, packaging, and goods and commodities storage.

According to the Micro, Small and Medium Enterprise Development (MSMED) Act of 2006, companies were classified based on their nature of business, like manufacturing and service sector. The classification was determined by the investment in the company and was different for both categories of companies.

Since the amendment of the MSMED Act in 2018, companies are no longer differentiated based on the nature of business. The capital invested and the company’s annual turnover are the deciding factors for classification.

As per the amendment made in the MSME Development Act in 2018, the classification was bifurcated based on the annual turnover of all MSME enterprises.

Type of Enterprise	Capital Investment	Annual Turnover
Micro Enterprise	Less than Rs. 1 crore	Less than Rs. 5 crores
Small Enterprise	Less than Rs. 10 crores	Less than Rs. 50 crores
Medium Enterprise	Less than Rs. 50 crores	Less than Rs. 250 crores

Any company, regardless of its annual turnover, requires funds for establishments or business set-up, factory expansion and operating expenses. In such a case, small and medium-sized companies can opt for an MSME loan from financial institutions.

Over the years, many institutions provide MSME loans without collateral for flexible tenures. However, a good business credit score is needed for enterprises to avail of MSME loans without collateral.

MSME loan interest rates differ by the financial institution and credit score of the borrowing company. Some lenders like Fullerton India offer attractive MSME loan interest rates starting from 11.99% per annum.

Also Read: MSME Loan Tips for Young Entrepreneurs

Importance of Business Credit Reports

To understand a business’s financial stability and measure its financial creditworthiness, a business credit score is derived for a particular company or firm. The key credit reporting agencies of the country issue credit score.

The credit report or the score is critically important for companies applying for business loans. The report provides the company’s financial history with credit repayment behaviour recorded by previous lenders. This can help potential lenders to analyse whether they can provide business loans to applicants.

Business loan documents such as company ID proof, address proof, income and bank statements, tax certificates etc., are collected to initiate a company credit score.

The importance of a business credit report is as follows:

A business credit report provides a company’s credit score just like an individual is allocated a credit score. Financial stability, credit history and repayment of debts are considered thoroughly before generating the credit score; hence it is significant for financial institutions to refer to the company credit report.

Since it reveals the company’s financial history and ability to repay the loan, the credit score influences the interest rate levied. For companies with high credit scores, lower interest rates are applied and similarly, a high-interest rate is applicable for companies with lower credit scores.

A strong business credit report can help companies establish a credit history and increase their chances of being approved for financing in the future.

Overall, a good business credit report is critical for a company’s financial stability and growth, and it must be examined frequently to maintain accuracy and enhance the company’s financial status.

Also Read: All You Need to Know About Long-Term Business Loans

How to get approved for a personal loan quickly?

Personal loans are a common unsecured option of finance for addressing urgent monetary needs. Due to its versatility, it may be utilized for various purposes, including weddings, house renovations, vacations, and more. Additionally, the sum borrowed has no restrictions and can be put to any use the borrower chooses. Continue reading to know more about how to get a personal loan instant approval.

Eligibility for Personal Loans

Before applying, make sure you are eligible. Most lending institutions offer personal loans; however, there are varied criteria for personal loan eligibility. But all lending institutions demand specific eligibility criteria from loan applicants. The following requirements must be met for salaried and self-employed people to be approved for an online personal loan:

Age	Between 21 and 65 years
Credit score	Minimum 750
Employment Type	A salaried employee at a public or private company
Minimum monthly Income	25,000 (for Delhi and Mumbai) or 20,000 otherwise)
Loan Amount	Upto Rs. 10 lakhs

Benefits and Features of Personal Loans

Low-interest rates
Swift Approval Rate
No Collateral Needed
Flexible Repayment Tenures

Make sure you meet the loan eligibility requirements and have the necessary supporting papers to get your personal loan instant approval. Most lenders would require your PAN card information, address verification, account statements, income verification, and photographs to process the loan application. The application will be assessed the amount credited if you meet the specifications of the lender.

Also Read: Personal Loan Balance Transfer Explained Along with its Various Use

Guidelines to follow before applying for a loan against property

For any long-term and significant investments, the most viable option is a secured loan, like a loan against property. As these loans are secured and safeguarded against your property, most lenders offer lower interest rates with a higher repayment tenure. The loan against property EMI will also come with many flexible options.

Before applying for a loan against property, thoroughly understand the declared and hidden clauses to be on the safer side.

Let us understand a few aspects you must consider before applying for a loan against property.

Reasonable principal amount:

Research and compare the pros and cons of loans offered by different lenders and finalize the most suitable one matching your repayment capacity.

Know your asset worth:

Be aware of the market value of your property as you will be pledging your property against the applied loan.

Rate of interest and repayment tenure:

It is always good to be mindful of competitive offers provided by several financial institutions concerning the rate of interest and tenure to repay, compare the options, and choose the best among them. The interest rate also comes with different options, like fixed and floating rates. You should be able to decide based on weighing the advantages and disadvantages.

Ineligible for any tax benefits:

You should be aware that a loan against property does not attract any tax benefits, unlike a home loan or education loan.

Penalties and other charges:

You need to know worst-case scenarios like the fees charged if you prepay the loan before the tenure ends or any penalty charges if the EMI gets delayed.

Loan against property instant application:

Many vendors have an online application process where you can complete the application process within a few clicks. Considering such a lender can help save a lot of time and effort.

You should be able to decide with all the attractive offers around you. Many NBFCs offer loans against property in the easiest way and assist you with dedicated relationship managers to guide you through the process. You can opt for a flexible loan against property EMI that you can easily repay for a tenure of up to 15 years.

Also Read: 8 Misconceptions About Loan Against Property Everyone Should Know

What to Consider Before Applying for a Business Loan?

Business loans are of two types: secured and unsecured. Secured loans need security against which a loan amount is approved, and unsecured loans are collateral-free. Before taking a loan, always check the eligibility for the business loan you are applying for in advance.

You can take a few steps to increase the likelihood that a business loan will be approved before applying. You also need to understand the eligibility criteria for a business loan and identify the loan type that most closely matches your needs.

Various loan types:

Applicants can select from a selection of MSME and SME loans, working capital loans, or business loans without collateral, depending on the size of their organization and particular demands.

Ensure you’re eligible:

Even though business loan requirements differ, the following four factors are likely to be taken into account by lenders when evaluating your business loan application:

Credit score – Lenders favor candidates with a good credit history and a score of at least 700. Negative credit history can be a warning sign for lenders.
Collateral – Some lenders ask for collateral, which they can seize if you don’t repay the loan. Some, however, offer business loans without security.
Your total annual sales are also taken into account by many lenders.
Time in business- An online lender usually requires a business to be operational for at least a year, while a traditional financial institution typically requires at least two years.

Repayment capacity:

The borrower repays the principal amount borrowed from the financial institution and the interest that accrues on that principal during the loan’s term. To calculate the estimated monthly repayment amount, most lenders now offer a free online business loan EMI calculator.

Get a collateral-free business loan today through various lending apps or websites.

All You Need to Know About Long-Term Business Loans

A long-term loan is a credit facility that allows repayment of its principal and interest over an extended period with additional charges and interest. Comparing long-term loans to short-term business loans, long-term loans are more advantageous and favored by borrowers.

Long-term loans are apt for customers who need greater loan amounts. Business firms find it more convenient to repay the loan amount with manageable EMIs thanks to this form of loan. The maximum repayment period is five years; however, it may be longer in special cases, depending on the lender’s discretion and company needs. Established businesses with a solid financial history are more likely to be approved for long-term business loans.

Interest Rates and Charges

When compared to other business loans, the interest rates offered by lending institutions for long-term business loans are relatively cheaper. Depending on the applicant’s profile, the fees will differ.

Features

Low-interest rates
Higher loan amount – Up to Rs. 50 lakhs
Longer repayment period – Up to 48 months
Collateral required

Purpose of Long-Term Business Loan

The following are some of the uses for long-term business loans:

Purchasing Assets: Buying land, office space, or commercial property
Capacity Improvements: Buying machinery, equipment, or commercial vehicles
Hiring Staff
Commissioning New Projects
Establishing New Offices

How to Apply for a Long-Term Business Loan

Before requesting a loan, you must:

Verify your eligibility
Complete the loan application form
Submit it, along with the requisite business loan documents

The lender will verify the application and supporting documents that have been submitted. Following document verification, the NBFC will decide whether to approve the loan and if so, the required loan amount will be transferred into your account.

To learn more about your eligibility for a long-term business loan, contact a customer service representative at Fullerton India right away.

Discover How a Personal Loan Can Help You in Times of Need

The inscription personal loan on a yellow sheet that lies on the financial document near the calculator.

Most Indian households take emergency personal loans online because they are easily available for urgent needs. According to TransUnion Credit Industry Insights Report, the total amount owed on personal loans has risen by 31% since last year, reaching a new high of $192 billion.

Another important reason why people opt for personal loans is their usage flexibility and quick and easy approval based on the applicant’s profile.

Usage flexibility: A personal loan has no usage limits, making it the most incredible option for dealing with an emergency.
Easy and rapid approval: you only need to fulfill the basic eligibility criteria to be approved instantly for a personal loan and receive funding within minutes.

Let’s examine how a personal loan can be helpful in an emergency:

Educational expenses: When your child is pursuing higher education, an education loan from a bank might only partially cover some of the costs. While there are numerous expenses, including living charges, travel costs, and a variety of others, that call for a sizeable sum of money. You can take out a personal loan to pay for your child’s education at competitive interest rates.

Medical emergencies: One of the top reasons people seek an emergency personal loan online is for medical emergencies, in which case a quick personal loan could save their life. Even people with health insurance need help to keep up with the rising costs of medicine and hospitalization. It takes lesser time to get an emergency personal loan online.

Weddings: Indian weddings are lavish events. No matter how effectively you have managed your funds, unexpected expenses can emerge at the last moment. Make sure you know enough about personal loans to make taking one simple.

Home repair and renovation: Our homes may require an emergency repair, even if home renovation may not technically qualify as an emergency.

Before applying, use a personal loan EMI calculator to calculate monthly installments and plan your expenses accordingly.

How To Get An Online Two Wheeler Loan?

You’ve found the bike of your dreams, but the price is too much. What you need is an online Two Wheeler Loan. It enables you to purchase the motorcycle or scooter of your dreams and to pay back the cost over time EMIs are a great option. Your ability to repay the two wheeler vehicle loan determines its terms, such as tenure, interest rate, and other conditions.

Features & Benefits

Easy Processing of Loan Documents
Get Access to Loan Amounts Up To Rs. 30 Lakh
Flexible And Attractive Interest Rates
Flexible Repayment Options
Instant Online Approval

Why Should You Go for an Online Two Wheeler Loan?

Not sure if an online Two Wheeler Loan is right for you? Listed below are some benefits to consider:

Safety comes first and foremost – Getting your two-wheeler helps you drive safely as you don’t rely on a driver here.
Feeling of Independence – When you drive your vehicle, you won’t have to rely on others or public transportation to get from one place to another, especially in an emergency.
Easy Transportation – The days of waiting in a big line to board a bus, subway, local train, or auto rickshaw are over. With a Two Wheeler Loan, you can fund your bike purchase and enjoy convenient, on-demand transportation.
No financial struggle – Bring home your ideal bike without using up your funds, and pay it off over a suitable tenure with simple EMIs. To apply, you need a few documents for two wheeler loan, such as – PAN Card, Aadhaar Card and driving license.

Must Read: Know the Relaxations Offered on Loan Against Property

How to Manage Your Finances Alongside Personal Loans?

For immediate funding requirements, Personal Loans are the most preferred funding options. Right from application to disbursal, the loan process is straight and simple. Aspiring borrowers nowadays apply for Personal Loans online anytime and anywhere they need.

However, borrowers should have a financial plan, especially during their loan repayment tenure, to avoid any defaults. Let us see the best practices you can follow to manage your finances alongside a Personal Loan.

Monitor your debt-to-income (DTI) ratio: The DTI Ratio measures the percentage of your income used to repay debts. Maintaining a DTI of less than 36%is considered ideal, and debt repayment becomes more challenging when your DTI is between 36% to 50%. Anything above 50% is unhealthy and can result in defaults or the need for additional funding.
Keep an eye on expenses: Each expense should be assessed from the lens of what income you are generating. The income should be used for necessities, repaying debt obligations, and savings before indulging in any other spending.
Quick repayment: Many lending institutions allow you to foreclose the loan by repaying through lump sums in addition to your equated monthly installments. This way, you can repay the loan ahead of its actual time. Also, you should repay high-interest loans earlier to reduce your overall debt costs.
Timely repayments: Defaulting on the stipulated periodical repayment can attract penalties and potentially impact your savings. Hence, timely repayments are advised, and it also improves your credit score.

Conclusion:

Any loan is a liability for the borrower until it gets repaid. Before applying for a Personal Loan online, you should have a financial plan covering the loan repayment tenure. The Personal Loan requirements are simple; however, the repayment needs meticulous planning.

Why use a Personal Loan EMI Calculator?

A personal loan EMI calculator is a digital tool for online calculations that banks and other financial institutions provide on their websites. Using a personal loan calculator, you may quickly calculate your loan EMIs.

You can plan your finances using this personal loan calculator to determine the amount you will pay for the loan. To use this calculator, you should enter variable numbers such as the loan amount, offered personal loan interest rates, and the preferred repayment tenure.

Why Should You Use a Personal Loan EMI Calculator?

#1 It’s Easy to Use and Cost Nothing

A personal loan calculator can be used without any technical expertise. You need to enter a few variable values to achieve the required outcomes, making it straightforward to use. Additionally, it is accessible online and is free to use.

#2 Anyone can use it

There are numerous platforms where you can get a personal loan EMI calculator. You can find it on the lender’s website or mobile app operated by reputed lending institutions. Additionally, you can access it at any time of day and any number of times. You can still use the calculator even if you haven’t applied for a loan yet.

#3 It Provides Accurate Responses

You should not worry about if the results of a personal loan calculator will be accurate. A personal loan calculator consistently produces results that are accurate and error-free. With a personal loan calculator, you can easily find your EMI without tedious manual calculations.

A personal loan calculator can give you crucial information about your loan, so you should always use it before applying. Additionally, it can help in choosing a suitable tenure. Remember that the figures shown by the calculator are only indicative and may change.

Loan Against Property Eligibility Requirements

gold-loan-vs-lap

One of the many purposes of getting a Loan against Property (LAP) could be to start your business (LAP). It can also be used for various other purposes. Property loans are available for both residential and commercial properties. A loan against property is a secured loan wherein the lender has the option of liquidating the mortgaged property to recover the loan amount in case the borrower defaults.

Longer repayment terms and relatively low-interest rates are the top two positives of taking out a loan against property. In addition, the loan is available to both salaried and self-employed professionals.

Loan against Property Eligibility

Let’s now look at the fundamental requirements for receiving a Loan against Property. Make sure the residential or commercial property you have put up as collateral is legally owned by you and is free of any legal obligations.

The age-related loan against property eligibility requirements is listed below.

	Salaried Professionals	Self-Employed Professionals	Small Medium Enterprise (SME)
Age Requirements	between 21 and 60 years	between 25 and 65 years	Minimum 2 years old

The recommended CIBIL score is 700 or higher. Additionally, SME candidates must submit licensed accountant-audited documents of consistent earnings over the last two years.

LAP interest rates are influenced by the property type, its current market worth, your income, and much more. If you are unsure about the loan against property rates, use a loan EMI calculator to determine the same.

A property mortgage loan enables you to fulfill your company’s needs effectively. With a Fullerton India Loan Against Property, you may maximize your savings while enjoying affordable loans against property interest rates, flexible repayment options, and extended tenure of repayment.

Must Read: How Loan Against Property Helps in Fulfilling Your Dreams?

Why Two-wheeler Loans are a Smart Choice?

bike-rental-service-kolkata-04h5rntjki-696x391

Two-wheeler loans are becoming increasingly popular among consumers as a practical and efficient way to purchase motorcycles, which are a convenient and low-maintenance transport option.

Applying for a quick two wheeler loan with flexible terms and straightforward repayment alternatives is possible. To get money right away, you can check your two-wheeler loan eligibility and apply online or offline.

Benefits of Fullerton India Two-Wheeler Loans

Below are some of the key characteristics and advantages of the two-wheeler loan provided by Fullerton India:

The paperwork procedure is simple and cost-free.
Digital approval is provided immediately.
Both salaried employees and self-employed people are eligible for two-wheeler loans.
Offers attractive interest rates.

Two-wheeler Loan Eligibility Criteria

Below are the requirements that must be met to be eligible for a loan from Fullerton India:

The minimum age requirement to apply for a loan is 18.
When the loan expires, you must not be older than 65.
Salaried workers must spend at least a year working for a public sector organization, an MNC, or a private limited company.
Self-employed people must present at least one year’s income tax returns.
You must have a CIBIL score more than 700.
You must have resided at the place for at least a year and be an Indian resident.
It is necessary to submit the required KYC documents, identification proofs, age proofs, address proofs, most recent ITRs, etc.

Conclusion

Applying for a two-wheeler loan is a convenient process that can be done online. In addition, minimal documentation is required. Fullerton India provides competitive interest rates, and they also offer digital approval immediately.

Must Read: How to refinance a Personal Loan?