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.

Factors to Consider Before Applying For an MSME Business Loan

The MSME sector is an indispensable contributor to the Indian economy. More than 6.3 crore MSMEs in the country produce approximately 8000 products and contribute about 45% to the total employment in the country. However, MSMEs have been facing serious financial issues after the Coronavirus pandemic.

Business loans for MSMEs help these small businesses to cope with financial challenges. To ensure that your MSME loan application does not get rejected, you need to be aware of certain factors that affect your business loan application.

Factors to Consider Before Applying For an MSME Business Loan

The credit score of a business is a vital determinant of its loan application approval. It also decides the interest rates and the terms of repayment of the loan. A good credit score leads to a better interest rate and customer-friendly loan terms for the business.
An MSME loan means a loan to meet business expenses. Before applying for a business loan, you should analyze your business expenses and determine the amount of loan you need. It will help you apply for the correct loan amount and save from default on your loan EMIs.
Have an accurate record of the business’s financial standing. Ensure that the credit report, GST report, and financial statements of the business are accurate before applying for a loan. It will prevent delays and rejection of your loan application.
A business that has positive cash flows and has shown a profit in the last few years is more likely to get a business loan.

Apply for a business loan with a trusted lender to increase your chances of getting a transparent and fair loan offer.

Also Read: Know How To Get MSME Loan For your New Businesses?

How To Get The Best SME Loan To Meet Your Requirements

Adequate capital and a great business idea with a detailed plan can drive success. A Small and Medium Enterprise (SME) loan with lending institutions can help entrepreneurs during a crisis or unpredictable times. Financing your business through a loan maintains the existing ownership structure, unlike equity distribution.

How to Get the Best SME Loan

Following are the factors to consider getting the best Small Business Loan:

Business Needs

For an efficient loan, an entrepreneur needs to know the business requirements. You should understand your business requirements regarding operations and future growth. You should determine your current financial position and estimate your requirements for additionHow To Get The Best SME Loan To Meet Your Requirementsal funds. You should apply and utilize the loan amount prudently. Hence, a better understanding of your business position will help you to make the right decision for a loan as per your requirements.

Your Financial Credibility

While approving a business loan, lending institutions look at the applicant’s creditworthiness. CIBIL score is an important factor for lenders to determine the SME or MSME loan interest rate offered to the borrower. A good credit score can offer you more favorable terms for your loan.

The Timeline

Know how soon you want the funds. Lending institutions can process your loan instantly and disburse the loan amount on the same day of loan approval.

Repayment Tenure

Borrowers need to repay the loan amount and interest within the loan tenure. Loan repayment is one of the key factors to select the most suitable loan at a competitive MSME loan interest rate. You should understand your business cash flow to make decisions on repayment tenure accordingly.

Thus, pair up with the best lending institution to take a business loan, like SME loans, at favorable terms.

Also Read: 5 Useful MSME Business Loan Tips for Young Entrepreneurs

Why Choose a Bike Loan Over Cash Purchase?

Purchasing a new bike could be need-based for some and an aspiration for others. The convenience of daily commute along with savings on fuel costs is unmatched. In addition, two-wheelers can be a lifesaver during traffic jams. Many people purchase their new bikes with cash or debit cards. However, it’s not a prudent financial choice. Instead, opting for a bike or two-wheeler loan is recommended. Finding the right lender can help you choose the best two-wheeler loan in the market.

What are two-wheeler loans?

Two-wheeler loans are unsecured credit products that help individuals purchase a two-wheeler, such as a bike or a scooter. The loan can be repaid through affordable monthly instalments as per the agreement with the lending institution. The 2-wheeler loan interest rate offered by reputed lending institutions like Fullerton India is affordable. However, the exact interest rate is contingent on your credit score, income, and repayment track record.

Benefits of choosing a bike loan over cash purchase

Most people might find the idea of choosing a bike loan over a cash purchase absurd as there is a cost of borrowing involved, i.e., the interest rate. However, you will be surprised to learn the benefits of choosing a bike loan. Here are some crucial ones.

A bike loan can help you build a good credit history and make you eligible for high-value loans.
You don’t have to arrange all the funds; therefore, the financial burden is lower.
Bike loans can help you purchase the dream bike even if it’s currently beyond your budget.
In addition, bike loans make you eligible for attractive discount offers from lenders.

Also Read: Know HowTwo-Wheeler Loan EMI Calculator can help you to calculate EMI

Tips to Choose the Best Two-Wheeler Loan

Purchasing a new vehicle is a significant achievement for most people. However, a new car might not be affordable for many people initially, so they start with a two-wheeler. However, some people for a two-wheeler because they are passionate about it or want an easy commute. Well, buying a bike or scooter over a car has plenty of advantages. Firstly, you save a decent amount on fuel charges. Secondly, you don’t have to worry about finding an adequate parking space. Thirdly, you can beat the traffic and reach your destination sooner. There are many other advantages as well.

What Is A Two-Wheeler Loan?

A two-wheeler loan is a credit product designed especially for two wheeler finance. It helps people purchase their dream bike or scooter without any financial burden. The amount borrowed can be easily repaid through affordable EMI plans. Learning about the cost of borrowing funds through a two-wheeler loan is essential. Comparing multiple two wheeler loan interest rates will help you choose the best product.

Tips For Choosing The Best Two-Wheeler Loan

A two-wheeler loan has multiple benefits to offer. It broadens your options and removes the financial burden from your shoulders. Here are some practical tips for choosing a two-wheeler loan.

Maintain a good credit score

Maintaining a good credit score can help you get the lowest interest rate on two-wheeler loans.

Plan repayment tenure before applying

Choosing the right EMI amount by finding the suitable tenure is crucial to repaying the borrowed amount timely.

Borrow what you need

Choosing the right loan amount is crucial to avoid excess interest or insufficient funds.

Also Read: Know HowTwo-Wheeler Loan EMI Calculator can help you to calculate EMI

A Quick Guide to Collateral-Free Small Business Loans in India

Obtaining funds for a new business has become easier than it used to be. However, it’s still tough to catch the investor’s eye, given the growing competition in the start-up space. Funding is a significant challenge for most small businesses in India. Getting a business loan is another exciting way to fund business activities. However, most companies don’t have collateral to get the loan approvals. High-value business loans demand collateral in most cases. However, some new-age financial institutions like Fullerton India offer unsecured business loans to bridge this gap.

Understanding unsecured business loans

Unsecured business loans help businesses avail of the required financing without demanding collateral. It is an excellent option for small and medium-sized enterprises. However, some eligibility criteria must be fulfilled. It is essential to check for these criteria before applying for unsecured business loans. Different lenders might have varied eligibility requirements. Modern financial institutions don’t have rigid eligibility criteria. One can quickly get a business loan in Bihar online.

Also Read: 6 Tips Helps you to Save Business Loan Interest Rates

Why choose an unsecured business loan?

Here’s why you should opt for unsecured business loans.

Unsecured business loans can be a game-changer for most small and medium-sized businesses that don’t possess substantial collateral for secured loans.
Since no collateral is involved, the risk is much lower than secured loans.
The best online business loans providers have a simple application process that doesn’t require visiting branch offices.
Minimum paperwork is involved, and the loan disbursement process is much faster. Apply for a business loan with Fullerton India for the best interest rates.

What Can Be Done Using a Personal Loan?

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

Personal loans have grown immensely popular in India over the last few years. A lot of it can be accredited to increasing adversities during the global pandemic. Many people lost their jobs, and most had a pile of medical bills. Personal loans became a lifesaver in these challenging times. It’s a great way to meet urgent financial obligations without depending on your savings. Personal loans are unsecured loan products, meaning you don’t have to provide collateral to get the loan. It has helped many people who couldn’t deposit collateral to get a loan.

Why take a personal loan?

A personal loan can be taken to meet a wide range of expenses. It is a multi-purpose loan, and the lenders impose no restrictions on its end-use. Unlike other loans (home loans), they can be used to cover all expenses. There is also a personal loan for CIBIL defaulters. Let’s look into what people usually take a personal loan for.

Medical expenses

Medical emergencies can happen at any time. Unfortunately, most of us are not always financially prepared for them. In such situations, a personal loan can be of great help. You can quickly pay your medical bills in full and repay the loan amount using an affordable EMI plan.

Wedding

Weddings in India are grand and expensive. At times, expenses can exceed our planned budget. A personal loan can help you meet the wedding expenses with ease.

Education

Higher education is costly, and without higher education, it’s tough to have stable employment. Personal loans can be used to finance higher education if needed.

Also Read: Is it Possible to Take a personal loan without an income proof?

What Are Pre-Approved Personal Loans?

The growing competition in the loans segment has made lending institutions more customer-centric. As a result, it is easier to apply for a loan and get approvals on the same. Applicants do not have to wait in long queues or for long periods to hear about their loan approvals. Today, they can check everything instantly using technology. It has also increased the demand for unsecured loan products like personal loans. Conventionally, personal loans were only granted to borrowers who applied for them. Today, lending institutions offer pre-approved personal loans in Pune and other cities to loyal customers with a good credit history.

What Are Pre-Approved Personal Loans?

Pre-approved personal loans are a version of personal loans that do not require customers to apply for. These loans are offered to people who are existing customers and have a good credit score and history. It removes the application stage from the loan process since the lender already has the required documents. Pre-approved loans can help one avail of the loan amount instantly. Instead of customers reaching out to lenders, the lenders reach out to borrowers. Making part payment of personal loans is recommended to create a good credit history.

Benefits Of Pre-Approved Personal Loans

The idea of lenders reaching out to prospective borrowers for lending money might seem unrealistic to many people. However, it does happen. The lenders prefer lending money to low-risk borrowers. Here are some exciting benefits of a pre-approved personal loan.

A pre-approved loan doesn’t require additional approval. Therefore, the loan disbursement is faster.

A pre-approved loan requires little to no paperwork since the prospective borrowers are existing customers

You can get the best interest rate possible with a pre-approved personal loan.

Also Read: 3 Questions that Decide your Personal Loan Amount

How can Personal Loans Help With Emergencies?

Personal loans are unsecured loans offered by lending institutions to borrowers to meet different financial obligations. We often face emergencies we haven’t planned for. In most cases, significant funds are needed to overcome these challenges. Relying on friends and relatives is not a great option. However, an external financial aid like a personal loan can help. People take personal loans to meet all kinds of financial obligations as no restrictions are imposed on the end use of the loan amount. Modern lending institutions are offering quick personal loans for various emergencies including medical bills.

Personal Loans For Emergencies

Personal loans can be taken for different emergencies. However, it is crucial to keep all documents for a personal loan in order before applying. Let us take a quick look into what can be done with a personal loan.

Home repairs

Unexpected home repairs are common, especially during the monsoons when rainfalls are heavy. A personal loan can help you fund your pending home repairs. You can take a personal loan to carry out home improvements when needed.

Debt consolidation

If you have an outstanding balance on multiple credit cards, debt consolidation is advisable. It can help save a good amount of money on accrued interest charges. The interest rates on personal loans are lower than on credit cards. Therefore, setting off an existing loan on a credit card through a personal loan is a prudent decision.

Medical emergencies

Medical emergencies can drain our savings to a great extent. Taking a quick personal loan can help you meet mounting medical bills and tide over the financial crunch.

Also Read: How Will Fullerton India Short Term Personal Loan Helps in Emergency?

Practical Tips to Improve Personal Loan Eligibility

All lending institutions have eligibility requirements for approving loan applications. These criteria help them weed out borrowers with poor credit history. It helps them reduce the risk to a minimum. Different lending institutions can have varied eligibility requirements. Although it is not as challenging today to get a loan as it was a decade ago, the applicants must meet the minimum eligibility requirements. It’s the only way to get your loan approved by the lenders. Read on to learn more on how you can improve the same.

Improving Personal Loan Eligibility

Here are some practical tips to improve your loan eligibility for personal loan quick approval.

Reduce existing debt obligations

Reducing existing debt obligations can help you improve eligibility for a wide range of personal loans. It will boost your repayment capacity, which lenders evaluate before offering credit. Always use a personal loan repayment calculator before applying.

Increase the credit score

Increasing your credit score can make you eligible for a wide range of loan products. Most lenders have a minimum credit score criteria of 700 points. However, keeping a score over 750 points is excellent for your eligibility.

Include income from all legal sources

Most borrowers have a minimum income criterion, and the applicants must have a higher income than required. Including income from all legal sources is advisable to meet the minimum income criteria. Note that you must submit the necessary documents to support the claim. Therefore, only include what can be verified legally.

Also Read: What is Personal Loan Disbursement Process?

How To Boost Your Chances of Getting a Personal Loan?

Financial emergencies can drain your savings and cause financial distress. It happens with people who dig into their emergency funds for everyday challenges. Therefore, it is always prudent to opt for a personal loan to meet such expenses. One can choose an affordable EMI plan based on income and repayment capacity to repay the personal loan. A leading lending institution like Fullerton India offers a personal loan amounting to INR 25,00,000. It is sufficient to manage various emergency expenses such as medical bills, education fees, travel expenses, etc. The repayment tenure can be up to 5 years. It provides plenty of time for borrowers to repay the loan amount.

Tips To Get Personal Loan Approvals

Personal loans are unsecured loans, meaning the borrowers do not have to bother about collateral. However, it increases the risk for lending institutions in case the borrower defaults. Therefore, they have personal loan eligibility criteria to weed out bad borrowers and minimise their losses. People who meet the eligibility criteria are granted the loan amount. Those who fail to meet the eligibility requirements will not be offered a loan. Here are a few tips for getting personal loan approvals.

Maintain a high credit score

A credit score measures an individual’s creditworthiness in the market. Maintaining a high credit score is essential for getting your loan approved easily. Always aim for a credit score over 750 points.

Choose a longer repayment tenure

A longer repayment tenure means lower EMIs. These low EMIs might be more affordable for the borrower based on their repayment capacity.

Stable employment

Stable employment records with a reputed organisation can boost your chances of personal loan immediate approvals. Also, a higher income denotes a higher repayment capacity.

Also Read: Tips to Manage your Finances with an ongoing Personal Loan

The Working Mechanism of a Personal Loan Balance Transfer

The unsecured nature of personal loans makes it a viable option for an applicant who is unable to provide collateral. The demand for personal loans has grown significantly over the past few years. Many new lending institutions have entered this space to offer customized loan products to a diverse range of customers. All loans have an underlying repayment obligation. However, many a time, it can be challenging for people to make their repayments. During this situation, they often default on their EMIs, which is detrimental to their credit score. A personal loan balance transfer can help manage these situations.

What Is A Personal Loan Balance Transfer?

A personal loan balance transfer is a process of transferring the outstanding balance from an existing loan account to a new one. It is very similar to home loan refinancing. However, here there’s no house involved. People opt for a personal loan transfer when they get favourable terms from the new lender— for example, a lower interest rate on personal loans. During a personal loan balance transfer, the outstanding loan amount is repaid by the lender in full, and a new loan account is opened for the borrower.

The borrower has to meet the new terms and conditions associated with the loan. A personal loan balance transfer has several benefits, for example, a lower interest rate, extended loan tenure, and a top-up loan facility. These benefits can help borrowers reduce their EMI obligations and total outstanding balance. It’s a great way to reduce borrowing costs. Finding the lowest personal loan interest rate in India is highly recommended for a balance transfer.
Additional Read: 6 Life Situations Where Instant Personal Loan is Necessary

How To Reduce EMI On An Existing Personal Loan

Personal loans can help finance many needs, including medical emergencies, travel, or further studies. These loans are ideal because they are flexible and have relatively low-interest rates. Fullerton India offers an instant online personal loan that requires minimal documents and offers competitive interest rates. The following are some of the ways you can reduce your EMI on a personal loan:

1. Right loan amount

Finding the right loan amount is essential as taking a high loan and not being able to service it will affect your credit score. Understand your needs and expenses and choose the loan amount accordingly.

2. Appropriate loan tenure

A longer tenure will ease the monthly EMIs and your personal loan status. However, longer tenure may be more expensive as you will pay more interest and be in debt longer. If you wish to pre-pay your loan, charges may apply. With lending institutions like Fullerton India, you can calculate such charges with their personal loan prepayment calculator.

3. Don’t default on personal loans.

Keep checking your personal loan status to ensure you don’t default on your loan, which can also affect your credit score. Penalties will apply for defaulting on loans and affect your credibility on applications for future loans.

4. Plan your loans before applying

Using tools like Fullerton India’s personal loan prepayment calculator and EMI calculator, you can assess your payment plans and ability to pay your loans before applying. Planning your loans will save you time and help you choose the right lending institution.

Also Read: How Personal Loan EMI Calculator Helps in Easy Financial Planning

Benefits Of A Personal Loan

A personal loan is helpful to meet emergency fund requirements for varied situations like medical expenses, excess funds for marriage, home renovation, etc. In the age of digital banking, emergency or instant financing from credible lending institutions has become easier and more accessible. You can use tools like a personal loan calculator to better plan your loan. Personal loans should not be taken indiscriminately as they can affect your CIBIL score and prove costly. However, for a responsible borrower, here are some of the benefits of a personal loan:

Unsecured

Being an unsecured loan, you don’t need to provide collateral or security to the lending institution to secure your loan. If you have a good CIBIL score over 750, and have all the required documents, you can expect a low personal loan interest. Since you don’t pledge any of your assets, the lending institution depends on your credit profile to determine your ability to pay the loan.

Quick approval

Online personal loans have a quick approval process, which is one of the biggest perks of taking a personal loan. Fullerton India offers instant approval with minimum documents and a good CIBIL score of 750.

Pay off high-interest debt

Personal loans can help clear other high-interest debts. It is best to pre-plan your loan and understand your borrowing better using a personal loan calculator from a lending institution to know your personal loan interest so you make an informed decision.

Also Read: Top 5 Factors that Affect Personal Loan Interest Rates

How A Personal Loan Can Impact Your Credit Score

Personal loans are popular because of increasing digitization, accessibility, and quick approval process. It can be used to finance any requirement you may have, from a medical emergency to funding a vacation or wedding or other unprecedented expenses. Since they are unsecured loans, you don’t need to pledge any collateral security to obtain a personal loan. To get the best personal loan in India from a reputed lending institution, you need minimum documents to prove your address and identity and a good CIBIL score of over 750 to get instant approval. On meeting these, you can quickly get a personal loan with minimum interest. The following are some of the ways you can increase your credit score:

On-time payments

Paying your personal loan on time will help avoid late payment penalties and negatively affect your CIBIL score. Personal loan minimum interest is an attractive option if you are a responsible borrower making timely payments.

Debloating credit utilization

You can use a personal loan to pay off existing credit card debt, help your credit score, and have a lower interest rate that enables savings. Get the best personal loan in India and pay it on time to better your credit score.

Consolidating existing debts

You can use a personal loan to consolidate multiple existing debts under one umbrella. Not only will this ease the burden of interest rates on your savings, but it will also help better your credit score over time.

Also Read: Ways to Get Lowest Interest Rates on Personal Loan

Personal Loans in Pune

Pune is a peaceful city in Maharashtra with a population of around 31.2 lakhs. It has several institutions that offer personal loans with interest rates ranging from 9.60% to 36%. Fast personal loan applications are very beneficial as you can compare interest rates, processing fees, prepayment fees, etc. and then make a rational decision. You will also be able to calculate your EMIs and then choose your loan amount appropriately.

Those looking to apply for a fast personal loan in Pune can experience a hassle-free way of getting credit and enjoy unique features like ‘zero usage, zero interest’, e-Sign, and easy EMI conversions.

Documents needed to apply for a Pune personal loan

1. Photo ID and age proof

2. Signed application form with photograph

3. Residence proof

4. Last six months’ bank statement for salaried/self-employed applicants.

A few of the top lenders that offer personal loans in the city of Pune include Fullerton, India; Bank of Punjab; State Bank of India; Tata Capital, etc. While issuing the loan, one should make a part payment of upwards of 20% of the loan amount, which will result in you availing of a loan with a lower interest rate. Always ensure that your debt-to-income ratio does not surpass 40%–50% of your monthly net income.

Also, working for a reputed firm or company increases your chances of availing of a loan at the best interest rate possible. Also, ensuring that you make a negotiation to get the best price on your loan is a necessity.

Also Read: 3 Tips to Avail a Better Interest Rate on Personal Loan

Fullerton India- top NBFC in India

NBFC stands for Non-Banking Financial Companies. It relates to asset institutions providing financial services without a banking license. The Reserve Bank of India defines NBFC as “a company registered under the Companies Act, 1956 engaged in the business of loans, advances, acquisitions of government securities, insurance, etc.” Investment banks, insurance companies, hedge funds, and private equity funds are examples of NBFCs.

Fullerton India is an NBFC in India and deals with financing across retail and rural segments. It is registered as an NBFC-Investment and Credit Company (NBFC-ICC) with the Reserve Bank of India and is a member of the SMBC Group. Their primary services constitute financing of SMEs for working capital and growth; loans for commercial vehicles and two-wheelers; home improvement loans; loans against the property; instant personal loans; working capital loans for urban self-employed; loans for rural livelihood advancement; rural housing finance; and financing of various rural micro-enterprises.

They offer personal loans that have complete transparency and simplicity. The unique and customized offering includes an instant online application. It provides instant personal loans online, and the process is paperless. You can get the loan credited into the account immediately after approval.

The Documents For A Personal Loan Are:

Photo
Identity proof such as a PAN card, driving license
Address Proof such as electricity bill, passport
latest salary statement as proof of income.
Bank statements
We can get personal loan eligibility in minutes. The Loan Repayment Tenure is Min. 12 Months and Max. 60 Months with the Annual Interest Rate being Min. 11.99% and Max. 23.99%.

Also Read: Can i Get Multiple Personal Loan at Same Time?

What Advantages Can Online Two-Wheeler Loan Applications Offer?

Let us work through the benefits of having an online two-wheeler loan. Shopping with loans becomes easy with your budget. The fact is that loans will allow you to repay a lump sum through easy installments. It does not burn a hole in the pocket. Instead, you can choose to repay the amount as per convenience. The two-wheeler loan interest rate is minimal enough for you to pay it within 60 months. Nevertheless, it depends on income and The monthly EMI amount you are comfortable paying back.

No longer do you need to invest a fortune in fuel maintenance. The best thing is that a two-wheeler has better mileage than a four-wheeler. So, you can save a lot there. Besides, you can apply for an online two-wheeler loan. You can keep a lengthy Bank loan approval process at bay.

Now you can enjoy the most of two-wheeler loan benefits at your convenience.

Improving credit score

Two-wheeler loans are much easier to pay off within a short tenure. Besides, paying off loans will add to your credit score. Therefore, if you have plans to take more loans in the future for travel, business development, or marriage, you can use this loan as your headstart.

Marginal cost

Most leading financial institutions offer a nominal two-wheeler loan interest rate. Sometimes it may extend to seven hundred percent of the on-road price of the vehicle you plan to buy. Isn’t it a great thing? So don’t waste your time anymore and grab the deal!

Also Read: Know How Two-Wheeler Loan EMI Calculator can help you to calculate EMI

All That You Need To Learn About House Mortgage Loans

There are some times in life when you need funds urgently. A house mortgage loan is a loan that you take against the property you own. It could be a shop, house, or non-agricultural piece of land. The lender will provide you with the principal loan amount and the charges as interest on it.

The loan can be repaid in monthly payments. Your property will serve as collateral.

It stays in the possession of the lender till it gets paid in full. There are two types of interest rate that applies to a mortgage loan.

While the floating interest rate gets adjusted as per the prevailing market condition, mortgage loan rates will remain the same for the entire tenure.

What Characteristics Does A Mortgage Loan Have?

Lenders accept properties that get constructed, your commercial shop or house.
Not all types of properties and real estate get accepted by lenders.
The property poses a marketable value. It should be a freehold property that gives the property owner the legal right to transfer the ownership of the property.
Mortgage loan rates will change periodically and get directly linked to the Marginal cost of funds.

Why Is Taking A Mortgage Loan Necessary?

A house mortgage loan Can be taken for a couple of reasons like the following.

Funding for medical emergencies
Paying for kids’ higher education
Business expansion
Paying for your son or daughter’s wedding
Home Renovation

Nevertheless, there is no restriction on how you can use the money.

Also Read: Should Borrowers opt for Adjustable Mortgages Rates or Not?

Explore The Importance Of LAP Loan

A secured loan provided by banks, home finance companies, and NBFCs is known as a loan against property or LAP loan and is secured by either commercial or residential property. When opposed to personal loans or company loans, these loans are typically offered at cheaper interest rates and disbursed within a fair amount of time.

Let’s Find The Usefulness Of LAP Loan

Even after receiving the loan, the applicant may continue to live in the home.
The loan may be used for several things, including unanticipated medical costs, children’s higher education and marriage, or starting a business.
The loan against property interest rate ranges from 7.35 to 10.5 percent depending on the size of the loan and the bank of your choosing.
When you need money for personal or professional needs using an Asset such as a commercial or residential property, you can apply for LAP.
LAP is a cheaper option than a personal loan.
Although these loans are simpler to qualify for, they have lengthy and flexible repayment terms. It’s as simple as it gets with a fully digital process on LAP.

The Following Elements Are Taken Into Account While Determining Lap Eligibility In Typical Circumstances:

The applicant’s monthly income
The applicant’s age; the property valuation of the applicant’s real estate, whether residential or commercial
Existing Debt (if any)
Current employment history, prior employment history, and credit history of the candidate are used to determine credit worthiness
100% compliance with the deadline for submitting the necessary financial papers

Also Read: Here’s How can LAP be used to consolidate debt?

Features That Make Personal Loans the Best Solution During Emergencies

Many people plan to apply for a personal loan when they need funds in an emergency. They are easy to apply for, and lenders give personal loans instant approval within minutes. Let’s look at the features that make them the perfect solution for financial emergencies.

100% Online Application: Gone are the days when prospective borrowers had to stand in queues and visit the lender’s office several times to apply for a loan. Today is the age of digital technology that allows applicants to complete the loan procedure online. Now, people may apply for a loan online through the lender’s website or mobile app and get approval almost instantly.

Paperless Documentation: Many lenders support a 100% online loan procedure, including documentation. Now, applicants do not need to visit the personal loan finance company’s office to submit the required documents. They can scan and upload the necessary documents online through the lender’s website or app.

No Collateral Requirement: Personal loans are unsecured loans that do not involve collateral, security, or guarantor. The absence of these elements makes the verification and approval process faster than before, making personal loans the ultimate solution during financial emergencies.

Flexible Repayment: Flexible repayment terms of personal loans do not stress the borrower’s finances. Borrowers may use a personal loan EMI calculator to select a loan term with conveniently affordable EMIs. As a result, they become an ideal financing option during contingencies.

Features like personal loan instant approval, paperless documentation, and flexible repayment make personal loans the best solution during emergencies. The key is to find a reliable personal loan finance company that caters to the borrower’s needs without stressing their finances.

Must Read:Top 5 Factors that Affect Personal Loan Interest Rates

Red Flags to Look for While Choosing a Personal Loan Provider

A personal loan is among the best credit tools when it comes to flexibility. The borrowed funds can be used for a wide range of financial obligations. The interest rate offered is also lower than its close alternatives like a personal loan on a credit card. The best thing about a personal loan is that it doesn’t demand any collateral from the borrowers. Reputed and modern financial institutions like Fullerton India offer easy personal loans that are highly affordable. However, not all loan providers have such a customer-friendly approach. Therefore, you need to be mindful of the red flags. Here are some essential factors to consider.

1. High-interest rate

The first and most important thing to check while choosing a loan provider is the interest rates. A very high-interest rate is a major red flag as it will increase the total due amount and EMIs. It is recommended to compare the interest rates from multiple providers and use a personal loan EMI calculator online. The cost of borrowing money should not be very high and out of your budget. Maintaining a good credit score can also help you get favourable interest rates.

2. High processing fee and other upfront charges

Many lenders charge a minimal processing fee for loan applications, and some may even add other upfront expenses. You should not borrow money from lenders with an upfront charge and a very high processing fee.

3. Prepayment penalties

Prepaying a loan can save you significant interest charges. However, some lending institutions charge a prepayment penalty. Always check for the prepayment terms & conditions and choose a lender that offers penalty-free prepayment charges.

Keep an eye out for these red flags, and then choose wisely.

Must Read:Check How to Get Personal Loan On Aadhaar Card

A Checklist to Get the Best Personal Loan

A personal loan is a collateral-free loan with no end-use restrictions. Many NBFCs provide personal loans with different terms and conditions. The key is to find the best personal loan suitable to the applicant’s requirements. Here is a checklist to get the best online personal loan to fund the necessary expenses.

Loan Amount: The first thing to check is the loan amount one needs to borrow. The applicants need to calculate their expenses and borrow sufficient amounts to cover them.
Interest Rate: The interest rate is the primary factor affecting a borrower’s choice. The idea is to select a lender offering the personal loan minimum interest rate that keeps the loan cost low.
Credit Score: The credit score is a crucial parameter to measure an applicant’s credibility. On a scale of 300 to 900, a score of 750 or above indicates responsible credit behaviour that most lenders prefer.
Repayment Term: After taking a loan to cover an emergency expense, the loan should not become a burden on the borrower’s finances. The lender must offer a flexible repayment term that borrowers may choose according to their monthly budget.
Applicable Charges: Apart from the loan amount and the interest rate, the borrowers must bear several other expenses, including the processing fee, documentation charges, legal charges, etc. It’s crucial to check them out before applying for an online personal loan.

A personal loan is the best financing option during an emergency. However, keeping this checklist in mind will help a borrower make an informed decision and handle the finances responsibly.

Must Read:Is using personal loan for home renovation a good idea or not?

A Guide to Refinancing a Personal Loan in India

Financial emergencies often strike at the most unexpected times. Personal loans come as the best funding option during these times, but borrowers may not have enough time to research and select the best lender. Once they are out of the emergency, they may realise that they did not borrow the best personal loan in India in a hurry. That is when they may consider refinancing their existing loan.

Refinancing means paying off an existing loan with a new loan to get better interest rates or simpler terms and conditions. Here is a quick guide to refinancing a personal loan in India.

Steps to Refinance a Personal Loan

Refinancing a personal loan entails the following simple steps:

Checking Loan Eligibility: A lender will refinance a loan only if the applicant has a consistent repayment history and a high credit score. Besides, they also look at other requisites like the applicant’s age, income, employment, DTI ratio, etc. An individual must fulfil the new lender’s eligibility conditions before proceeding with the refinancing.
Considering the Cost of Loan Refinancing: Lenders charge some amount while refinancing an existing loan. Considering these costs along with the part-prepayment charges is crucial before opting for a loan refinance.
Applying for a Refinance: After finding a fair deal, the borrower can apply for a personal loan refinance. It entails filling up an application form, submitting the required documents, and selecting a repayment term using a personal loan calculator. Once the lender approves the application, the borrower can pay off the existing loan and repay the new loan’s EMIs with new terms.

Choosing the best personal loan in India to refinance an existing loan is crucial in managing finances and maximising savings.

Must Read:Personal Loan EMI Calculator: Know How it helps optimise your loan

Get The Best Mortgage Loan Successfully Following 3 Steps

If you are finding it hard to get the best mortgage, here are the initial three steps to set yourself up for getting the best mortgage loan.

Pullout Your Credit Reports: Before accessing a mortgage application, a loan seeker should check their credit reports. You need to ensure that there is no mistake in your credit report as it can reduce your credit score unnecessarily. Credit history plays a crucial role in getting a good deal on a mortgage loan. You can pull your credit report for free once a year from the CIBIL credit bureau.

Improve Your Credit Score: An individual should improve their credit score before applying for a loan, as mortgage loan interest rates in India depend on the creditworthiness of the borrower greatly. Generally, a lender prefers a credit score of 700 to approve a loan. However, it is a mortgage loan; they can also approve your loan at a lower score. You should pay your credit card bills and previous loan EMIs on time to improve your credit score. Also, if you find a mistake in your credit report, submit a request to improve it as soon as possible.

Calculate how much EMI you can afford: Before you start filling out your loan application, check how much EMI you can afford to pay. Use the calculator provided by the lender to calculate eligibility and EMIs o a loan beforehand.

The lender may ask for your ongoing loans or existing debts. You can compare different property mortgage loan offers with different lenders. Most individuals prefer trusted NBFCs to get a loan at an affordable rate.

Must Read: 7 Steps To Get Successful Approval on mortgage loan

Fund Your Child Education With A Loan Against Property – Here’s Why

The increasing cost of education can make it challenging for financially weak families to provide the best education to their children. One preferred financing option for child education is a loan against property as it offers the following benefits:

Fund Against Residential and Commercial Property: One can get the best value loans against their commercial and residential property and fulfill your child’s education requirements.

High Loan Amount: A property loan offers a high loan to value ratio that differs by property type. It can go as high as Rs. 5 crores with Non-banking financial companies (NBFCs), providing a loan amount up to 70% of the property value. The loan amount will depend on the property’s type, condition, and location.

Easy Processing: Lenders can easily approve a property loan application as a property loan is a secured loan, and they need not worry about recovering the loan amount if the borrower defaults.

Lower Interest Rates: A loan against property is affordable as the interest rate is lower than an unsecured loan. A loan against property is a secured loan. Loan against property private finance with renowned NBFCs can be availed of at an interest rate of as low as 9% per annum.

Flexible Tenure: A loan against property is a flexible tenure that can be extended to 20 years. A loan applicant can choose a longer tenure to reduce the EMI. Also, it is your choice to reduce the interest outgo with the option of short term tenure.

Thus, if you are a property owner, you can easily avail a loan against property to finance your child’s education.

Must Read: How LAP can be an Ideal Choice for Larger Funding

What Can Prevent You From Securing Small Business Loan

Business loans can greatly support a startup as well as an existing business to grow. Business loan funds can be used to invest in machinery or equipment, hire new staff members or other numerous expenses. To secure such beneficial loans, you should avoid the following roadblocks:

Poor credit history: Creditworthiness is the primary factor a lender considers before offering a small business financing option. Lenders consider an applicant’s credit score to determine their credibility. If there is a lack of diligence in repaying previous debts, the lender may reject the loan application.
Lack of a solid business plan: Lenders can easily sanction a loan for a well-thought-out plan for your business. A business loan application with a half-baked plan may be rejected.
Many loan applications at a time: Individuals should not make many loan applications at once. They should shortlist a few lenders for a SME loan (full form – Small and Medium Enterprise) and pick an offer with the maximum probability of approval. Applying for many loans at a time can be a red flag for credit bureaus.

Avoid any of these activities that can prevent lenders from accepting your small business loan applications.

Self-employed persons, proprietors, partnership firms and private ltd corporations serving in manufacturing, trading or services sectors can apply for these loans. Existing companies need to show their financial statements showing a profit for the past two years.

If you need a business loan of Rs.50 lakhs, you can get it without collateral against a small business loan. If your requirement is for more funds than Rs.50 lakhs, you can apply for a secured business loan with renowned NBFCs at a lower interest comparatively.

Must Read: Here’s how SME Loan Benefit Your Business?

What Is A Pre-Approved Loan?

Pre-approved loans can be defined as instant personal loans. These are readily available loans with a financial that has already scanned its existing customer’s financial details for a loan sanction. If an individual maintains an excellent CIBIL score, the lender can consider them to offer such instant personal loans.

The pre-approved personal loan amount can be transferred on the same day of application submission as the lender already has checked your ability to repay the loan.

An individual can check pre-approved loan offers at the official website of the lending institution and apply online for these instant small loans.

How Pre-approved Loans Work?

A pre-approved loan is based on an individual’s information provided by credit bureaus that assign credit scores to the borrowers, like CIBIL. Generally, an existing customer of a financial institution can avail of pre-approved Loans. However, while you apply for a loan with other lenders than the older one, you can still check for pre-approved loan offers. The financial institutions generally obtain credit history reports of numerous borrowers from credit bureaus and can provide you with a pre-approved loan offer based on your score and eligibility. Personal loan for low CIBIL score can be availed of at a higher interest rate relatively.

Pre-qualified loans are different from pre-approved loans. Pre-approved is more committed than a pre-qualified loan. Prequalification is just the first step of loan processing, where the institution asks you to fill out a detailed questionnaire to know your loan preferences and purposes. On the contrary, a pre-approved loan is ready to be processed loan based on your verified credit history after the prequalification step.

Must Read: How Do Home Improvement Loans Work? Step by Step Guide

Thus, repay your loans and credit card bills on time to maintain a high credit score and avail of pre-approved loans.

Are There Any Advantages To Paying Off Your Personal Loan Early Or Partially?

Personal loans are a great solution for getting the cash one needs fast. Personal loans are normally given to borrowers to meet their short term needs for expenses that cannot be met by savings or regular income. These could be emergency expenses or expenses that must be paid at once.

However, when it comes to repaying the loan, borrowers can pay the amount in EMIs for the entire loan period, or if they have sufficient cash, they can prepay the loan as the whole amount or make part payment of personal loan.

Paying a significant sum in interest every year until the term finishes might be burdensome, specifically if borrowers have selected a long time. This is because longer loan terms contribute to higher interest payments, even though the rates are lower.

The goal is to pay off the entire loan early to benefit from paying less interest. If keeping idle cash or investing it elsewhere makes a borrower less money than the interest they pay on their personal loan, it is better to pay it off.
Part payments work because they reduce the amount of unpaid principal, which lowers the EMIs and the interest amount borrowers pay. However, keep in mind that it only helps if they make a large quantity of lumpsum money as part payment.
Further, making complete prepayments can improve the credit score in the long run. That is because the person paid off the debt early.
Being debt-free has numerous benefits. It leads to a stress-free existence, allows to achieve financial independence sooner, lowers the risk of financial failure, and gives more extra income.

Must Read: Can i Get Multiple Personal Loan at Same Time?

With Fullerton India, obtaining a personal loan is straightforward and quick. The process is digital, with rapid approval, competitive pricing, easy personal loan eligibility criteria and little paperwork.

Considering A Personal Loan To Fund Your Business? First Understand The Following Things

The decision to take out a personal loan to fund one’s business in Pune is essential, and one should take the time to consider whether or not it is the right move for their business.

After all, individuals borrow money from a financial institution and the personal loan minimum interest rates have to be paid back over an agreed period.

Before taking out a personal loan to fund their business in Pune, borrowers need to think about the following factors.

First, if an applicant is unsure before filling out a personal loan application, they need to see an expert.
If a person needs a personal loan, they need to include a clear financial plan for how they will use the money, what caused the need for such funding, and when they will pay it back.
Before a person signs on the dotted line and takes out a personal loan, they need to be sure that they understand how much risk they are taking on. The best way to ensure financial security is to shop around, read reviews, and be comfortable with the interest rate you will have to pay.
Owners of businesses should make sure they consent to terms that are fair and clear. Excessive interest rates and hidden fees are frequently used by lenders to take advantage of vulnerable small-business owners.
To ensure individuals put their businesses on the right path, their budgeting must be accurate. Create a realistic forecast that considers all expenses, including loan payments.
The fact that the debt will remain if the firm fails is a critical issue for taking out a personal loan.

Must Read: 3 Tips to Avail a Better Interest Rate on Personal Loan

With Fullerton India, getting a personal loan in Pune is quick and seamless. The process is digital, with instant approval, competitive pricing, and minimal documentation.

An Essential Guide To A Personal Loan EMI Calculator

A personal loan is an easy way to obtain instant cash for numerous expenses and is ideal for anyone who does not have enough money to pay for a purchase in one transaction.

A personal loan helps individuals meet their financial requirements such as home renovation, wedding, medical or educational expenses, or even splurging on a holiday or a special occasion.

However, if individuals want to ensure that they do not run into any financial troubles concerning repaying the loan, they can opt for an online personal loan EMI calculator.

A personal loan EMI calculator is an online financial tool that allows one to determine their monthly payments for a personal loan and is free of cost.

Why is There a Need to Use a Loan EMI Calculator?

A borrower may utilize a personal loan EMI calculator for a variety of reasons, including:

A personal loan EMI calculator can be immensely helpful for borrowers as it will tell them the exact amount of their monthly instalments.
Personal loan EMI calculators are tools that borrowers can use to plan their finances.
It is an online tool that borrowers can utilize at any time.
Further, one can save energy and time by not having to do these calculations.

With Fullerton India, borrowers can get an instant personal loan with less interest rate, quick processing, and minimal documents.

Also Read: How To Choose The Best Interest Rate for Your Personal Loan?

Borrowers may also use their free personal loan EMI calculator to figure out how much they will have to pay in monthly EMIs and plan their finances accordingly.