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.

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!

What to do when you need a small amount of personal loan.

We can’t always depend on a normal personal loan for our financial needs. Mostly because these loans are big-ticket finance solutions – they entail loan amounts that often run into lakhs of rupees. But what do you do when you need an emergency personal loan to cover smaller financial gaps? Well, until recently, the only way out was to borrow from friends or family. However, many non-banking financial institutes come in and now provide finance solutions to help cover such small yet urgent financial needs.

How to get one?

Many of these lenders offer the convenient option of applying online. You can fill out the application form on their website, scan and upload the documents, pay the processing fee and submit your application. Within 48 hours, your application will be approved and the sanction process will begin! It’s really amazing considering the troubling process of applying for a normal personal loan.

Apps make it easier.

Apps make it even easier for you to avail a small amount personal loan. They will have a process that is limited to your phone that can be completed with no more than 4 easy steps. The documentation as well will be super convenient usually not involving more than 4 documents and a selfie taken on your mobile camera.

What else do these apps provide?

Well, they offer a treasure trove for borrowers looking for small loans. Firstly, they offer loan amounts from Rs. 8,000 to 2 lakhs. This is usually enough to cover those small to medium needs. They also make it easy for you to meet their eligibility requirements. Have a salary of above Rs. 18,000? If yes, then you’re eligible! You don’t even need a credit score, this opens the door for first-time borrowers or those who have credit rating deemed unsatisfactory for traditional personal loans and lenders. The best part is that they provide instant approvals and sanctions within a couple of hours; ideal in emergency situations.

What’s it like to repay these loans?

It’s easy since most lenders will offer 3 months to 24 months to repay the loan. This is enough time considering that loan amounts are small. The interest rates are generally between 1.25% and 2.50% per month. Moreover, there are no prepayment charges with most of these apps. This allows you to repay the loan in a way you are most comfortable with minus any annoying penalties.

Can I trust these apps?

You want to be able to trust the lender when in need of an emergency personal loan. And with most of the apps, you can judge whether a lender is trustworthy or not be reading the ratings. Also, the official number of downloads and loans disbursed should give you a fair idea of the lenders’ credibility.

So if you need a small amount personal loan, you can turn to the internet or simply reach into your pocket and get tapping on your phone. There are numerous lenders that ready to provide pocket-friendly loans amounts in a snap!

Hope this has been helpful, good luck and all the best!

Are you planning to take a personal loan? Avoid these few mistakes.

A personal loan is an ideal financial tool when it comes to mitigating your financial issues. There are many reasons to take personal loan India such as renovating your home, debt consolidation, medical attention, etc. however, you will have to consider a few factors before you avail it. You should avoid mistakes else it will make a dent in your wallet. So, here are five personal loan mistakes that you need to watch out for and avoid them.

Don’t Shop around

There are a lot of personal loan options in India; however, it’s not a mandate to pick the first one. Since you have options, you should compare deals amongst top banks & financial companies and shortlist the ones that will match your financial requirements and affordability. Go ahead and see if you have any pre-approved loan offers, as lenders will give you the best personal loan deals. You might want to consider things like interest rate, processing fees, disbursal time, repayment options and loan tenure.

Taking higher interest rates

It’s would be wise to see that if you’re taking a loan for debt consolidation, the interest rate should be low enough to save your money else it won’t make sense. You will find that a variable interest rate has its own negatives and positives such as it might rise in the near future as well. Keep the entire picture of average personal loan interest rate you would pay during the tenure and then decide if you should go for it or not. Else, you have a fixed rate on a safer note.

Personal Loan

Not calculating other charges

Personal loan India come with a lot of other charges such as processing fee, late payment charge, pre-closure charges, cheque delay charges, etc. The processing fee is a percentage on your loan amount, pre-closure is implacable if you close your debt early. Consider all these fees, and try to speak to the lender to waive them off. Consider all the fees that come with your personal loan, and then decide which one is the best offer for you.

Choose right loan tenure

We take a personal loan for a variety of reasons. Lenders offer flexible tenure of 1-5 years, and at times we’re happy to see a loan that gives lower monthly payment option. The deal might be great, but you would’ve to shell out more interest rates. If your goal is to get rid of the debt faster, short repayment tenure will make sense for you.

Fraudulent lenders

Due to the prevalence of online facilities, it’s easier to get loans at attractive deals. Lenders try to lure potential customers with low personal loan interest rates deal. However, with convenience comes the increased risk of falling prey to frauds as well. You should figure out lender authorization and only then approach them. Read reviews online and talk to a financial expert before you plan to avail loan form a particular lender.

Missing your monthly payment

It’s important you make your payments on time. Missing it will damage your credit score and would cost you late fees. If you’ve taken a secured personal loan, and you keep missing out payments, you might lose on the collateral pledged with the loan.

Here is how to get a personal loan quickly & easily.

For those who think it’s not easy to get a personal loan, think again! The internet has made things so easy that getting a personal loan is as easy as 1-2-3. Don’t believe us? Well, we will tell you how to submit your application in just a few taps & get sanctions in as little as two days!

Go online!

Jump traditional applications. Don’t waste your time visiting bank branches to compare quotes. Just go online and start comparing your options in seconds. You won’t need to take time out from work or move out of your home. All you need is your laptop, mobile phone or tablet.

Apply online.

Some borrowers compare online but still visit a branch to get a personal loan. Why do so when you can apply online as well? Just fill out the simple application, scan & upload your documents, pay the processing fees online and hit the submit button. Before you know it your application will be sent over for approval. If all is well, you can expect approvals in minutes!

Get a personal loan

Give apps a go!

Some of the new-age lenders have introduced apps through which you can get a personal loan in minutes. They will have completely app-based processes and extremely quick turnaround times. The documentation will also be extremely convenient and will usually consist of just 4 or 5 documents required; of which one would be a selfie!

Try aggregator sites.

This is probably your best option. You can use aggregator sites as well to get a personal loan. They will list the top 30 or 40 lenders in India along with their loan amounts, tenures & interest rates. This makes it easy to compare as you have all of the best options right in front of you, in one single page. You can also apply through these aggregator sites. In fact, most of them will provide you instant quotes and ensure that you get calls from lenders offering you’re the best possible deals.

They will also have calculators that you can use to ensure you are making sound decisions before singing along the dotted line and committing to the loan. These sites will also have unbiased reviews of the personal loans available today. These reviews will be written by real borrowers who have taken loans through these aggregator sites. This is extremely helpful as most reviews these days are fake and are posted by the bank or NBFC’s marketing agency to create a better online reputation.

So there you have it, some ways to get a personal loan quickly & conveniently, all thanks to the internet. If you are worried about online payments, just remember that these lenders are usually huge companies and they have full-proof firewalls & other precautions in place to keep your application safe. We hope this has been helpful, good luck and all the best. Always remember to read the loan documents carefully before agreeing. If you need more help, just get in touch with one of the lenders or aggregator sites today!

5 criteria you should use to compare personal loan providers.

Choosing the right personal loan and personal loan providers is no walk in the park. It requires tons of analysis & evaluation. You’ll need to carry out thorough market research to find the best loan and lender for your needs. It might seem daunting but this article will make things easier by highlighting 5 of the most important criteria that you should weigh your options against. They will help you make the right selection of finance & financer.

1. Loan amount on offer.

You should look for lenders that are willing to provide the loan amount you need. This is probably the first criteria that a good lender should fulfill. Different lenders will judge your loan worthiness differently and it’s possible that some lenders might not provide the loan amount you need.

2. Repayment comforts.

The lender should offer a choice of repayments plans. Some lenders offer up to 6 or 7 repayment options such as a step-up, bullet, EMI holiday, etc. Each of these repayment plans is suited for different kind of financial profiles. The more choices you have the easier it is for you to find a repayment plan that best suits your financial capacity.

personal-loan
Personal Loan

3. Charges.

All personal loan providers will have their own set of charges. How many charges there are and how much each charge will be different from the next lender’s charges. This is why it is important to compare charges before finalizing on a lender. While compare charges remember to pay special attention to the processing fee as this is one of the bigger charges involved. Most lenders charge between 1 & 2 percent of the loan amount – making this an important personal loan percentage to compare when evaluating the various lenders. Also look at late payment, prepayment & cheque bounce charges as you might encounter these while repaying your loan.

4. Reviews.

Most people compare numbers and figures and rightly so; a personal loan is a financial decision and needs to be backed by sound mathematical planning. However, sentiments of others can help make the right decision as well. That’s why you should what other people feel and say about the personal loans & personal loan providers out there. Positive reviews and good ratings are a sign of a good financial offering. It’s important you find unbiased reviews such as those on aggregator sites. These reviews are from real borrowers and not marketing gimmicks.

5. Interest rates.

This is one of the most important personal loan percentages. That’s why many lenders compare this rate before doing anything else. But this is a wrong approach. One should first find a few good loans and lenders that provide good loan amounts, comfortable repayment solutions, have good reviews have fewer charges and then compare their interest rates to see which the best is.

These were 5 of the more important criteria you should base your selection process on. They will ensure you get a loan and loan provider.

Good luck and all the best, happy borrowing!

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