Why you should borrow personal loans to fulfil your financial goals?

Personal loans are one of the best financial tools that will help you fulfil your needs of day-to-day life. You can borrow from Rs 1 lakhs to up to 30 lakhs at attractive interest from top banks and non-banking financial companies in India. The reason might vary from meeting your household requirements like durables – electronic goods, furniture to other needs like sudden medical attention or funds for higher education. Personal loans in India can be utilized to meet your short term financial goals without having to surrender your policy papers or break any investment funds. You should first know your needs; look for options provided by banks & NBFCs, and check the personal loan interest rates that prove affordable on your wallets.

Due to widespread internet penetration in every sector, even the loan lending segment is not leaving any stone unturned to lure potential customers. Taking a personal loan is very easy and simply online. There are round the year deals and discounts for customers, and you can compare quotes online to make an informed decision. Just in case you still are not so internet friendly you can always approach the banks or NBFCs directly to make an application for the loan. They will have special units in their branches for catering to customers seeking a personal loan.

A salaried individual will be able to procure personal loans in India rather faster and easier than self-employed or business-oriented individuals. That’s because they have a fixed monthly income, and it acts as a guarantee for the financial institute. A regular and secure flow of income with good credit history is what lenders will be eyeing on before they sanction the loan for you. Your age, occupation, and income will easily determine your repayment capacity. Other than this, lenders would decide your eligible loan amount and personal loan interest rates. Once these factors are evaluated it takes a mere couple of minutes to drop a message or email in your inbox about your loan sanction. The disbursal takes place in mere 3-5 working days. You can repay the money with affordable EMIs for a period between 30-60 months.

Different loan lenders will have different eligibility criteria; however, some of the common conditions would be as follows:

  • Your age should be between 21-60 years to apply for personal loans in India.
  • The borrower should be employed at least 1-2 years in the existing company else run a successful business for 2+ years before applying for a personal loan.
  • Your minimum income will vary across different lenders. However, it range between 15,000 to 20,000 for metropolitan cities, while at least 15,000 for other cities across India.
  • The ratio of borrowing should not exceed 30% to 40% of your monthly take home salary else it might seriously derail your finance.
  • Maintain a healthy credit score of around 700-800 for quick loan sanction and instant disbursal. It acts as a triumph card for negotiating with the lenders for low personal loan interest rates.

Reputed aggregate sites compile quotes from top banks and NBFCs in India on their website. You can compare quotes in terms of interest rates, processing fee, eligible loan amount, tenure, EMI, etc. Before you sign on the dotted lines, it’s better to go through the terms and conditions. If you have any doubt, talk to the customer support team online that is available 24X7 for your assistance.

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5 Tips To Pay Less On Your Home Loan Interest Rates.

Home loan interest rates are a huge area of concern for the borrowers when it comes to avail of housing finance. It’s the crux of any form of a loan and if not figured properly you can get into deep financial trouble. An affordable interest rate can help you reduce the monthly EMIs and you can comfortably make payments towards it. There are leading aggregator sites online that will help to compare apple-to-apple online and make a wise decision about choosing a particular firm and interest rate for a housing loan.

So, here are a few tips that will help you to reduce the burden of your housing loan interest:

Firstly you should start saving for a higher down payment

Any lender sanctions up to 80-85% of the home loan amount and the rest 15-20% are paid by the borrower itself. Therefore, experts say you should start saving for the margin money for a year or two and accumulate a larger down payment. It will help you borrow a small amount and thus, the interest calculated would also be less. Larger down payment will mean you pay less interest on the entire tenure of your housing loan.

Start building a good credit score for better home loan interest rates

Besides getting speedy approvals, a good credit score can help you negotiate with the lenders for low-interest rate deal. It displays your willing to repay your debt on time and makes you a responsible citizen as well. Thus, lenders are willing to entertain such candidates, consider their application and do quick loan sanctioning. While you’re saving up funds for a larger down payment you can work on your credit score as well by repaying any form of pending debt such as car loan, personal loan, credit card bills, etc. Make sure you make the EMI repayment on time. The oldest credit card will reflect your repayment history and your credibility time period offered by the bank. It should positively impact on your credit score and leverage your negotiating powers. Even 0.5-1% decrease in the home loan interest rate will help you save loads of money over time.

Go for floating home loan interest rates

Many people want to protect themselves against the market tides and thus opt for a fixed interest rate. But remember fixed rates are on the higher side and yield more money. If you’re in your late 20s or early 30s you can take a little bit of risk and can opt for a floating rate on your home loan. You can definitely save money and on an average, it would be a balanced interest rate in the long run. Floating rates are normally lower compared to fixed interest rates and you can save a considerable amount of money. You can talk to the experts who can anticipate well on the real estate and loaning sector and accordingly give a wise suggestion on the interest rate deal. If the interest rates start to increase too frequently and consistently you can shield yourself with fixed interest rates for a minimal fee.

Keep making prepayment at regular intervals

It’s one of the golden tips to reduce the overall burden on your home loan interest rate. Making prepayment will decrease the principal amount and automatically bring down the interest rate incurred on it. So, if you have got any increment, bonus, investment maturity returns you can always divert it for making prepayments and enjoy a lower monthly installment of your home loans.

Always compare and opt for a balance transfer

If you see that your existing lender is not giving you much benefit on the interest rates, you can compare the home loans in the next 2-3 years’ time and plan for a home loan refinance. If you struck with a good deal talk to your existing lender. If they’re not willing to offer it, in spite of your good repayment history and credibility you can always migrate to another lender. You should go for such option as long as the switching fee and other charges implied are lower than your potential savings on your new interest rate deal.

Hope these tips will help you save significantly on your home loan interest rates. Don’t forget to take an opinion from your financial expert. Apply for housing loan online today!

Personal Loan India: Consider these factors before approaching a lender.

Do you have any medical exigency in the family for which you need urgent cash? Or do you want to shred off high-cost loans or credit card to get out of the debt spiral? And in addition to all these things, today the lifestyle that most of the people wish to live today takes away the major chomp of your savings, right? What about the savings that we must assign for our retirement or emergency fund? So, how a personal loan can help us with this? Or explain, what are personal loans India? Well, unlike a home loan or a car loan, a personal loan comes under unsecured debt, for which a lender does not insist on collateral. And being unsecured in nature, the risk for any lender would be high as they are left with the only option- i.e. legal to resort in case of a default. Hence the personal loans India crafted especially according to the Indian market, and are slightly higher than the ones which are backed by collateral.

Well, a personal loan comes really handy when your need for cash is urgent, and at times when you want to lower your overall debt burden, or even when you want to boost your credit score/CIBIL score. And because of its quick approval process, it is considered to be as an easy way to access funds. But whenever it comes to availing personal loan India, you need to be slightly cautious or you can say aware. This is because you might end up choosing the wrong financial product, and your mistakes can bound lenders to extend a personal loan at high-interest rates. Here, we will tell you what all you should weigh before you decide to sign the loan agreement.

Personal Loan India

Evaluate Your Requirement: Many financial pundits advise that one should not overboard with the loan amount. Well, we all know that personal loans India is an easy way to access funds and are often disbursed within a few days. And, this can make a tendency to go for a larger amount of loan than the actual requirement. So, one should limit the loan amount to what your end objective or purpose is.

Overall Cost: Continuing with the point mentioned above that one must consider the overall cost of the personal loan incurs on your pocket, which includes the personal loan interest rates and the additional fee. If the requirement that you have today is not worth the overall cost, then maybe it is not the wise move to take a personal loan. Try at your level if you can satiate those needs by any other means or not, like through credit card.

Interest Rates: There are two types of personal loan interest rates in the market, and the major thing to go through before approaching to a lender is to check whether the interest rate is fixed or variable. The fixed interest rate implies that it remains constant throughout the loan tenure and a variable interest rate used to change, i.e. increases or decreases according to the ongoing market conditions-index value.

Additional Charges: The accumulated interest is not only the only fees that are charged in a loan, but there are also other multiple additional charges associated with it. Additional charges such as processing fee (when the loan is being processed), late fee, and prepayment fee. Lenders charge a late fee when you are inconsistent with your monthly EMI’s, and pre-payment is when you choose to pay or close the loan amount before the decided tenure.

Choose One: See all and choose one, like they say that you have to kiss a lot of frogs before you find your prince. But in the personal loan India, kissing all the frogs can generate a problem for you. Hence, you should look at multiple loan options, deals and offers before choosing the one, through online loan aggregator’s site and then apply to the ones you feel that your loan can get approved on and can commit to.

Well, these are some of the common factors or things that one needs to consider before you get a personal loan India. If you keep these things in mind, you will never go wrong while borrowing the money.

Hope this information helps you!

Explained: From where to apply for an urgent personal loan.

The small personal loans are the need of the hour- and why not? The costs of products and services have increased greatly in recent years; forcing people to pile up heaps of debts under their belt. Further, many-a-times, people even find it difficult to relieve the medical expenses on their own. The personal loans are provided by the new-age financial institutions at way lower interest rates than the ones given out by the traditional financiers and loan sharks.

There are a number of advantages of opting for these loans, such as:

  • A personal loan is unsecured in nature; thus, you can not only consolidate your existing debts but even choose to make use of the money to relieve your medical bills, as well as travel to distant places.
  • The repayment of an unsecured loan is done in the flexible form of EMIs. These installments are calculated on the basis of the principal amount, interest rates, and repayment tenure.
  • The financial institutions also provide the borrowers with an EMI calculator, to help them calculate their amount of small personal loans.

You can easily apply for an unsecured loan through a bank or an NBFC (non-banking financial institution) through the traditional offline methods or through the new online ones. However, the eligibility criteria that you need to fulfill in order to obtain a personal loan are here as follows:

  • Financial stability: The banks and NBFCs check your income source and job stability before sanctioning the urgent personal loan amount. The reason being, financial institutions want to ensure that you will be able to repay the borrowed amount without defaulting on your payments.
  • Work stability: Before applying for a personal loan through the new-age financial institutions, ensure that you have been working with your current organization for at least 2 years. This will encourage the financial institutions to sanction your loan amount.
  • The reputation of the organization: The financial institutions also evaluate your employer’s foothold in the market. After all, if your organization has a good reputation in the market, then the chances of your growth become higher; thus, helping you to repay the loan amount swiftly.
  • Credit score: Banks and NBFCs (non-banking financial companies) look into your credit score and history to gauze your loan repayment capability. Thus, ensure that you have a credit score of more than 750 before you decide to apply for small personal loans.

How to improve your eligibility?

You can easily improve your chances of obtaining an urgent personal loan amount by following these steps:

  • Repay all of your current and previous debt on time.
  • Compile all the documents required (make sure that you don’t miss out any of them).
  • Let the financial institutions know about your loan repayment defaults beforehand (if you have any).

Hope this article helps you to obtain a personal loan easily. Further, one must remember that the eligibility criteria of each and every financial institution vary from one another. Thus, the best thing to do would be to contact the particular financial institution or check through the aggregator sites.

Good luck and all the best!

Benefits Of Opting For a Small Amount Personal Loan In India.

It is a goal for every millennial to achieve financial wellness on their own. However, the increasing costs of living don’t allow the modern generation to achieve this goal. Hence, many times, they are often left helpless in the face of an immediate medical emergency. But now they can breathe with a sigh of relief; after all, there are a ton of new-age financial institutions that provide capital assistance in the form of an emergency personal loan in India.

You can easily apply for this financial assistance through the traditional methods or by making use of modern means. Further, the interest rates charged by the new-age banks and NBFCs (non-banking financial companies) are way lower than the ones given out by the traditional financiers and loan sharks.

Other than that, there are a plethora of other benefits of opting for a small amount personal loan in India, and a few of them are here as follows:

  • Other than covering the sudden medical emergencies; you can make use of the loan amount for a variety of other reasons. You can purchase a new gadget, consolidate your existing credit card bills, or even fund your last-minute trips.
  • An emergency personal loan in India is offered by the financial institutions without asking for any sort of collateral. Meaning, you don’t have to keep any of your property or funds with the financial institutions as collateral, in order to obtain financial assistance. Therefore, even the documentation of a personal loan is extremely quick as you just have to submit a few documents such as your salary slips, KYC documents, proof of residence, etc.
  • The new-age financial institutions offer the applicants with a flexible repayment option. Therefore, you can easily plan out and repay your borrowed sum in the form of EMIs (equated monthly instalments) over a certain period of time. Further, the financial institutions determine your EMIs on the basis of the principal borrowed amount, interest rates charged and your repayment tenure.
  • The financial institutions even provide you with an EMI calculator on their online websites for free-of-cost. Therefore, you can easily make use of this online tool to compute your emergency personal loan amount from the comfort of your home or office. These tools have an extremely user-friendly interface; thus, any person can make use of it, without having any sort of prior knowledge.
  • Further, there are a ton of new-age financial institutions providing personal loans; thus, you can easily reduce your interest rates through comparison. You can either choose to compare on the online websites of the financial institutions’ or make use of the aggregator sites.
  • Comparison of personal loans will not only give you an insight into the functioning of a bank or NBFC but will also help you find the best financial institution for you.

Thus, these are the various reasons why opting for a small amount personal loan can prove to be a wise choice. Hope this article will help resolve all your doubts.

Good luck and all the best!

Some tips to shortlist the Right Personal Loan Providers.

Personal loan is one of the most popular financial products used for innumerable purposes such as financing during medical emergency, consolidating your credit card debts, or whether fulfilling your long held up needs of overseas travelling. Well, while comparing different personal loan providers, most of the time a borrower considers the rate of interest as the sole deciding factor. A personal loan can actually help you in easing your financial stress during emergency. And, to get the peace of mind during emergency situations, without putting any strain on your pocket or monthly budgets, here are some tips that can help you to get the right personal loan quote-

Product Research: first and foremost thing before opting for a personal loan is do your thorough research. Financial Pundits says that doing a product research can eventually decrease the probability of loan burden while repaying it. Why? Because the product comes with a high percentage i.e. rate of interest. So, if you choose an unsecured loan option with the uneconomical personal loan percentage, it would increase the overall payout. We know that it is really hard to shortlist the right personal loan provider, especially when you have less time, and on the other hand, you have to deal with financial exigency. But in this digital era, things don’t take time. There are so many personal loan providers who offer financial product i.e. personal loan with amazing offers in the market.

Choosing the right lender: Maybe you want to apply for the unsecured personal loan from the very first loan lender that you come across, but it is really important to choose the right one, according to your requirements. Today, there are so many NBFC’s, public and private lenders in the market who are offering amazing loan quotes, concession on processing fees, and somewhat an extension on borrowing limit.

Profile Assessment: Well, there are chances that your loan application might get rejected or might get approved. Hence, before even doing the financial product research, it is wise to do a profile assessment. The unsecured personal loan profile assessment means, it counts your economic status and current financial credibility. So, it would be better if you check your CIBIL score primarily, as it becomes your guaranteeing factor. Thus, before you shortlist the right personal loan providers, profile assessment is a must. For example, if you are working in a reputed firm, you can get a better personal loan percentage, i.e. interest rates, and a right quote if your loan repayment potential is high.

Tenure Options: If you are opting for this financial tool aka product and you want to choose the longer tenure, make sure that your lender provides the comfortable and flexible tenure options. Borrowers choose longer tenure to make their repayment manageable. Hence, it is advisable to properly communicate with personal loan providers in advance, regarding the tenure period.

Hope this information has been helpful to provide you a quick hassle free personal loan! In addition to this, you can apply with multiple personal loan providers online or you can visit your nearest branch physically. If you have been loyal to a particular lender, chances are that they might reduce the interest rate. Happy borrowing!

Four tips to obtain easy personal loan India.

Personal loans are gaining popularity amongst salaried individuals who often hunt for finances during crisis time. They have been around for a while, and they’ve now gained an edge over the conventional loan patterns. Top banks and non-banking finance companies provide personal loan at attractive interest rates with instant e-sanction. Whether you need funds for a car repair, home renovation or pay medical bills, personal loan India can come to rescue you during a cash crunch. You borrow personal loan from banks or financial institutions and payback in the form of fixed monthly installment with interest on top of the principal amount.

If you’re running into debt all over the place, it acts as a very good tool for debt consolidation. Wherein you pay single, and low personal loan interest rates, in convenient monthly installments to the lenders.

Here are 4 tips to get instant personal loan India:

Check your credit score before you make an application. It holds a significant bearing on your quick loan sanctioning, and low-interest rate deal.

Shop for the best personal loan interest rates: Sticking to the first loan lender isn’t a good idea. Instead, you should compare quotes with top banks & NBFCs and make an informed decision. Most lenders post their borrowing limit, documentation, eligibility criteria, required credit score, etc. on their website.

Do your quick maths: As a borrower, it’s important to determine how much cash you could avail based on your risk potential and credibility. So, use an online calculator that would give you a rough idea of what your monthly EMI would look like. You should try different permutations and combination of personal loan interest rates until you get your desired number.

Maintain good debt-to-Income: If there is a higher debt to income ratio, it means you would find it difficult to make repayment. This will adversely impact your loan application, and chances are lenders would reject it. So, always borrow less and make timely repayment of your debt to maintain a good income-to-debt ratio.

Watch out for charges: Other than processing fees, there are pre-closure charges, cheque bounce charge, etc. These small changes can make a dent in your pockets.  You shouldn’t feel like getting punished for the early exit of your debt.

Top banks and financial institutes provide a personal loan with interest rates as low as 10.99% to 16%. You can borrow from Rs 1 lakh to 30 lakhs. Once you key few details on aggregator sites such as your name, place of work, monthly income and fixed obligation, organization details, etc. they would come up with the best match as per your affordability and financial requirements.

Best personal loan interest rates are awarded to the borrowers with an excellent credit score and stable income source. If you handle it responsibly, a personal loan is a good financial tool to fulfil your goals on time. Seize your opportunity now!

Tips to reduce your home loan interest rate in India.

It is a dream of every working-class member of the Indian society to purchase a home. For this very purpose, he or she saves money in the form of fixed deposits, funds, etc. throughout their lifetime. However, in recent years, the costs of properties and plots have surged greatly; thus, a lot of people find it difficult to fulfil their dreams of purchasing a house of their own.

In here, financial institutions play a huge role by offering home loans in India at attractive interest rates. Further, the new-age banks and NBFCs (non-banking financial companies) even provide an additional discount of 0.05% on the interest rates for women borrowers and co-applicants. Thus, today in this article, we will be sharing a few tips that will greatly assist you in reducing your home loan interest rate:

  • Look out for good deals: The new-age financial institutions have now started offering home loans online. Thus, you get the option to compare and look out for the loan products from the comfort of your home or office. The reason being, the interest rates charged by the new-age financial institutions vary from one lender to another; thus, comparing amongst them will help you choose the one that suits your needs the best. You can easily choose to compare amongst loan products on the aggregator’s websites.
  • Loan tenure: The banks and NBFCs (non-banking financial companies) offer you flexible repayment options in the form of EMIs (equated monthly installments). This not only helps you to repay your current debts but also plan out for the future ones. Further, your EMIs are calculated on the basis of the principal amount, home loan interest rate, and repayment tenure. However, if you opt for a longer repayment tenure, then you would have to repay higher interest rates; thus, if you want to reduce your rates of interest- then choosing a shorter tenure would be a wiser option!
  • Improve your credit history: The new-age financial institutions offering home loans in India scrutinize your credit score and history. The reason being, your credit history gives them an insight into your financial management skills and helps them you gauge your repayment capability. Therefore, ensure that you work and improve your credit score before applying for a housing loan; as this will greatly help you to negotiate and reduce your interest rates. The best way to improve your credit score and history is to repay all your previous and current debt on time.
  • Transfer of balance: In the recent years, the banks and NBFCs (non-banking financial institutions) have taken a number of steps to help the borrowers, and the option of a balance transfer is one of them. Transfer of balance, as the name suggests, means that you will be transferring your outstanding loan account from one lender to another. This feature allows you to renegotiate on the rate of interest with the new lender- to obtain a lower home loan interest rate.

Hope this article will help you to obtain a lower interest rate home loan.

Good luck and all the best!

5 Don’ts when applying for home loans in India.

Your home is one of the big-ticket purchases, and it’s one of the greatest investments you could make in your life. Due to the rising real estate prices, you would apply for a home loan with any of the lenders across India. But mere applying is not enough, because there is more towards it. A few things which even lenders won’t be able to tell you. It’s all about analyzing things on your own. So, here are a few things that will prevent you from falling into the trap of huge debt, and avail attractive home loan interest rates:

Choose your property and the lender

It’s a common practice in India to first ascertain the loan amount. But technically speaking, if you first choose your lender and if they are not ready to offer the loan amount for the property then deciding it won’t make a sense. There are a lot of aggregate sites that will tell your eligibility, home loan interest rates, etc. You can take an overall gist about particular lender willing to finance up to a certain amount. You should then finalize your property, ensure it has thorough paperwork, and then approaches the lenders who have finances houses in the same locality or project.

Splurge your savings

Some people feel having a stable job is good enough to qualify for a home loan. However, lenders expect more from you. They want to see a specific amount in term of savings so that you pay uninterrupted monthly EMIs even if there is recession, job or income loss. Your savings amount will lend additional financial security to your application, and place more trust on your behalf amongst lenders regarding your repayment capability. Any bonus, increment, perks should be saved to make easy loan repayments.

Home Loan

Home loan interest rate

There are particularly two types of interest rates – fixed and floating interest rates. While fixed rates would stay constant through your loan tenure, the floating rates would change as per the market conditions. While fixed-rate seems to the obvious choice for salaried individuals, experts say a person with high-risk potential can opt for floating interest rates. Home loans in India are taken for a longer tenure, and the market conditions are bound to change over the course of time.

Don’t’ start a new credit line

Your lender will check the fixed monthly obligation and see how reliable you are in repaying the share of your home loan. So, if you already have a huge debt, your chances of getting home loan approval seem to diminish. Before planning to take home loans in India close all your existing credit lines and don’t go for any new one. Closing credit lines will automatically shoot your credit score, and you will get instant loan approval.

Don’t make investments

Although, investment returns are very good tactics to pay a lump sum and reduced the overall loan burden; however, over the course of time if it doesn’t yield many returns it will affect your repayment ability. An investment that gives steady returns such SIP, mutual funds would definitely make senses, but don’t go for highly volatile investments such as equity stocks or forex investments.

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