A personal loan for salaried employees can be used to meet a variety of personal and financial commitments, such as repaying hospital bills, planning a large wedding, or supporting your child's further education. You can apply for a personal loan from NBFC or talk to your bank about it.
How Do You Pick the Best Personal Loan Term? You must fulfil these 5 procedures whether you borrow from your bank or seek for a personal loan from an NBFC: 1. Calculate the Loan Amount The loan amount you're looking for might have a big impact on the length of your personal loan. If your loan amount is minimal, you should try to choose a tenor with a shorter term. For a bigger tax benefit on personal loans amount, however, it is preferable to lengthen your payback period to avoid financial hardship. 2. Interest Rates Comparison In general, a low-interest personal loan has lower EMI payments and may be repaid in a shorter period of time. As a result, a high rate of interest means higher monthly payments that must be stretched out over a much longer loan term. 3. Set a budget When deciding on repayment terms, keep in mind your source of revenue and monthly costs which will also be dependent on tax benefit on personal loans. Lower EMI payments are recommended if your monthly expenses compensate for 70-80% of your monthly earnings. However, this will extend the term of your loan. Likewise, if your monthly budget permits you to afford higher EMIs, go for a shorter tenor. This is where the personal loan EMI calculator can come in helpful. 4. Pay off any outstanding debts Your credit score will undoubtedly suffer if you have several outstanding debts. This will reject your request for a low rate of interest and lengthen the term of your loan. Furthermore, the previous loan's responsibility will influence your monthly budget, forcing you to extend the term of your new personal loan for salaried employees in order to make regular EMI payments. 5. Keep Future Increments in Mind If you are certain about the future financial increase, such as a boost in salary or large payment, you may want to consider choosing a high EMI payment option to pay off your personal loan faster.
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Digital KYC or Electronic KYC (eKYC) is an instant ‘Know Your Customer’ verification process. Most companies today prefer this method for customer onboarding.
But what is KYC? It is a verification process that lets companies assess whether their customers are genuine and following legal practices. When this authentication is done electronically, it is called eKYC. In today’s fast digital world, companies can’t afford to keep customers waiting for verification and onboarding. This is where the eKYC process proves to be useful, giving organizations an edge over the competition. How Digital KYC Is Done? When companies go for e KYC verification online, it is done using Aadhar-based authentication. Customers are sent a one-time password on their number linked with Aadhar and the OTP is entered on the portal to complete the verification. It is a super fast process that helps organizations make their customer onboarding quick and hassle-free. Benefits of Digital KYC Cost-Effective When KYC verification is done, it takes a lot of paper, effort, and coordination to authenticate a customer which is eliminated with digital KYC. eKYC is an instant process that saves a lot of money and investment. Paperless Filling forms to open a bank account consumes time. Banks ask for various documents to verify identity and address. This is where an eKYC based on Aadhaar helps reduce such time consumption. It lets banks quickly assess whether the customer is legit or not. Security Whenever eKYC procedure is followed, the company gets digital identity proof of the customer, eliminating any chance of fraud. Digital KYC portal sends an SMS to a genuine mobile number linked with Aadhaar, so there is no chance of any misuse. The introduction of digital KYC has proved to be a game-changer in India when it comes to verifying customers. eKYC process helps banks onboard their customers quickly and beat the competition with the newest technology implementation. The interest is the percentage of an initial amount, or "principal," that is added to that principal over time. A loan will be repaid within the agreed-upon time frame, in the case of one. A savings or investment account will be repaid over the investment's lifetime or while the account has money in it. The simple and compound methods of calculating interest are compared in this article.
What is Simple interest: An interest rate that is added to the principal on a regular basis is known as simple interest. The amount of interest added to a loan over time can be calculated by multiplying the interest amount by the time period, for example: i = p x r x t In that formula, t is the duration of the loan. What is compound interest? Interest compounded on the principal includes all accrued interest previously. The following formula can be used to calculate the amount of compound interest you would accrue every year: i = p x (1 + r)t - p There are 12 accrual or compounding periods in a year, so p represents the principal, r represents the interest rate and t represents the number of interest accrual periods. Adapt the following formula if you have more than one compounding period in a year: i = p x (1 + r/t)t x y - p In this version of the formula, y is the number of years. Simple vs. compound interest: differences There are some significant differences between simple and compound interest:
Non-banking financial corporations (NBFCs) deal with loans, stocks, shares, bonds, and securities, but they do not provide savings accounts like banks. Financial institutions are gearing up to reclaim their business following the Covid shut down due to the people's deplorable economics.
According to a recent study conducted by the RBI, NBFCs beat banks by 15% in terms of loan availability, customer satisfaction, risk management, and digital reach. How may NBFC personal loans help you solve your financial problems quickly? If you're in a financial emergency and need liquid assets right away, NBFCs are the place to go. They may quickly fix your financial problems if you are a qualified candidate for a personal loan from one of the finest NBFCs. NBFCs are preferable to banks for obtaining quick personal loans for a variety of reasons, including inexpensive personal loan interest rates and rapid personal loans. Criteria for eligibility – The qualifying requirements for personal loans are less stringent than the lengthy list supplied by banks. The following are the fundamental qualifying requirements:
The RBI originally introduced KYC standards in India in 2002, and it became an obligatory practice for all banking institutions in 2004.
KYC, or Know Your Customer, is the procedure of identifying a customer to detect and prevent fraud in financial transactions. KYC is required since it is a legally binding process that all financial institutions must follow. What are the different kinds of KYC? Some institutions use e-KYC verification online. Submit a copy of your authentic Aadhaar card to the institution's website to verify yourself. This is the electronic equivalent of knowing a customer. Another way to get to know your customer is to visit them and confirm their information. This procedure can also be carried out by requiring the customer to call the bank or broker's office with his PAN Card and Aadhaar Card. Let's go on now that we've thoroughly grasped the concept of "what is KYC?" This article will explore the most often used KYC types and their accessibility to financial institutions, and the compliance measures that surround each of them.
KYC, or Know Your Customer, refers to the process of identifying a customer to detect and prevent fraud in financial transactions. KYC is essential since it is a legally binding process that all financial organizations must follow. Some institutions use online e-KYC verification, while others require a face-to-face meeting with the customer. Traditional education loans are often not enough to fulfil students’ financial needs. With these loans, students can only pay off their tuition fees. Students have to bear several expenses such as food and travelling expenses, particularly if they are staying away from home for studies. Traditional loans can cover all these. Personal loan for students is a wonderful support to cement the void. If you are looking for quick loans to finance your non-educational expenditures, think about getting a personal loan.
Eligibility criteria for a student loan alter with your choice of a lender. However, some criteria are common at all the lending organizations across India. Still, you should check if a particular lender has some additional criteria for prospective borrowers. You should also ask the lender about the documents you have to submit. A personal loan comes with multiple benefits summed up as follows: No Collateral You don’t need to submit any collateral to obtain this financial product. Hence, personal loans are quick and convenient to avail. Restriction-Free Usage Flexibility of usage is one of the major benefits of personal loan for students. With a personal loan, you can cover an array of expenditures. Traditional loans don’t come with this benefit. Quick Disbursement Since it is an unsecured loan, it requires no lengthy process of verification. Quick disbursement is a salient feature of personal loan and makes it more attractive to those who need funds within 24 hours. Repayment Flexibility It is another remarkable advantage of this financial package. You are free to choose a tenor according to your repayment ability. Choose an EMI, which you think is convenient and comfortable to pay. Income Tax Benefits A personal loan for students grants you some attractive income tax exemption. The Income Tax Act, 1961, states anyone taking loans for educational expenses can file income tax benefit on repayment. Bajaj Finserv makes different pre-approved personal products available at a low interest rate. These include credit cards, home improvement loans and personal loans. Submit your name, contact number and other details to check the offers. You can expect to get a personal loan for students within 24 hours of submitting the application. A sudden financial emergency may come up anytime, which will require you to arrange funds to get through the financial emergency. With the vast number of loan options available in the market today, it is advisable to avail emergency loans in the form of personal loans instead of liquidating your savings. A major reason why emergency loans are preferable is their easy availability that helps you get the funds you need quickly with minimum paperwork.
Mentioned below are five smart ways to get an emergency loan to get through a financial crisis:
An immediate personal loan, also known as a digital personal loan, may be a great way for people to get money for things that they wanted to do like House Renovation Loans. Obtaining a quick loan with a large loan amount may also assist them in meeting their various financial needs, but it is important to understand the pros and cons before signing up for any loan in order to prevent fines and unexpected surprises in the future. However, lenders may refuse your loan if you make several typical errors. To get your loan authorized fast and avoid falling into a vicious debt cycle, avoid making these typical errors. However, lenders may refuse your loan if you make several typical errors. To get your loan authorized fast and avoid falling into a deadly debt cycle, avoid making these typical errors. 1. Not checking alternative options Personal loan fees and features range from one lender to the next. You should not commit to a contract without first weighing your alternative possibilities. Interest rates, processing fees, prepayment penalties, loan duration, and loan amount can all differ from one lender to the next. 2. Excessive borrowing Repaying your loan on time might be difficult if you go overboard with your loan amount. If you miss a payment, you will be penalized, your credit score will be ruined, and your prospects of receiving a loan in the future will be harmed. 3. Failure to clarify the Loan's specifications One of the most typical errors made by loan applicants is their inability to define the loan's details, such as the purpose, duration, and amount. It's mostly because borrowers aren't completely informed of the situation. 4. Credit Score Ignorance A strong credit score is important when it comes to evaluating your loan eligibility and interest rate for loans like home renovation loans: if your credit score is poor, your application is likely to be denied. If your credit score is 750 or above, you will be eligible for the lowest personal loan interest rates available. 5. Failing to Consider Affordability As previously said, personal loan terms and conditions range from one lender to the next. It's essential to read your loan agreement thoroughly for any hidden fees before a personal loan online apply. Read Also: Pros & Cons for Home Improvement Loans in India Getting a personal loan has become a lot easier with the rapid digitisation in the country. Most financial institutions now offer this loan online allowing borrowers to fulfill their short-term, emergency expenses. This makes it very easy for borrowers to take a fast personal loan online. All borrowers need to do is meet the eligibility criteria.
How to Increase Personal Loan Approval Chances?
The personal loan segment is likely to grow at a rate of 10% till the financial year of 2025. Due to the borrower-friendly benefits of this loan, including quick disbursal and restriction-free usage, the growth of this uncredited loan has been on the rise. One must know about the income tax benefit on personal loan before applying for it. It can help them claim the deduction while preparing the income tax return file at the end of any financial year. It would help to maximize the savings of the borrower.
Here are some pointers on the income tax benefit on personal loans. While investing in any residential property If the borrower wants to use the funds of personal loans on the construction or purchase of any residential property, they can avail benefits of income tax deduction. In this way, the individual can claim various tax benefits on the interest rates under the section of the IT Act. Moreover, the borrowers can claim up to Rs.2 lakh for any self-occupied property. To claim this kind of exception, the borrower must have the lender's certification. While investing in any asset Borrowers can also save a lot on tax payment if they diverge the personal loan towards any investment in assets. If the borrowers meet any stock investment, non-residential properties or jewelry, it will add the interest paid to the asset's acquisition cost. It will help to reduce the capital gain on the particular asset if it is considered for resale. However, one cannot claim the tax deduction on the payable interest rates for personal loans in the same year of asset procurement. Moreover, there are other hosts of benefits that the personal loan offers. Some of these are:
In March 2020, the RBI cited a report to claim that personal loans made up 24% of the total credit during the financial year 2019-20. The total transaction value in the category of personal loan will expectedly snowball to Rs.1015395 million in 2021. Low interest personal loans are on rise. These loans are easily available, a feature contributing to the popularity of this financial product. Lower interest rate facilitates doorstep loan repayment. Advantages of Low Interest Personal Loan
Low interest rate is a big draw for the prospective borrowers and so, they always look for the lender offering the most competitive rate. The factors affecting the interest rate on personal loan are not limited to only the lender. Hence, the prospective borrowers should keep in mind some essential factors that have to do with personal loan interest rate. Credit Score A minimum CIBIL score of 750 is one of the primary conditions to get your loan application approved. However, the rule of the thumb is, the more, the better! You can maintain a good credit score or improve the same by simply clearing off dues on your existing loans. Income Sources Individuals without a healthy credit score resort to professional credentials to enhance their chance of getting a low interest personal loan. For the salaried individuals, mention of monthly salary is a must. There may be other sources of income such as yields from fixed deposit, rental income etc. You can mention all these details to get a better interest rate. Flexi Loan The facility entitles you to take out funds from a predefined credit limit. Furthermore, you need to pay interest only on the part of the funds utilized and hence, can save a substantial amount on interest payment. Credit Utilization Ratio Experts suggest that a credit utilization ratio below 30% helps avail a low interest personal loan. Bajaj Finserv offers different pre-approved offers on products, including credit cards and personal loans. Submit the required details to check the available offers. The eligible borrowers can get loans at an attractive interest rate. Must Read: All About Low Interest Personal Loan Making changes in your interior and decor can be expensive. Many people renovate their homes, according to the Vastu Shastra. To be ready for an extensive expense, one must take the help of a home renovation loan. Moreover, the private financial firm and the bank offer the customers the benefits of personal loan online to make the financial burden lighter. If you don't want to provide all the savings to your interior decorator or architecture, you should successfully carry out the renovation work. Listed below are some factors that can help you with the best instant personal loan app in India. Processing fee to get instant loan The lender tends to deduct the asset percentage of the amount as processing fees. This fee does not guarantee any approval. Sometimes it is also non-refundable. Hence you must get it checked with the lender and verify everything before applying for the loan. Rate of interest of the best loan app A minor difference in the rate of interest can create a huge difference. You must cross-check the rate of interest with your concerned lender before applying for the loan. Documentation required The home renovation loan requires a simple documentation process with a reasonable interest rate and faster approval. Before applying, make sure that you check for the maximum amount you want to use to secure the loan. However, suppose you feel insufficiency in the amount. In that case, you can also opt for a personal loan online apply to get instant approval based on your relationship with the lender or your credit score. Pre-paying the amount of the loan app Some borrowers tend to think that they will repay the loan amount in advance when they have enough cash. But most of the lenders enforce rigidity for pre-closing the home renovation loan. The reason behind this is that the lender does not want to provide the war with any interest income. Therefore before applying for the loan, you should check the rules and regulations. Some of the lenders also charge a fee regarding the pre-closure. You can also get it in the form of pre-approved offers. Many financial institutions offer home renovation loans at the most competitive interest rate. You can check the personal loan online with Bajaj Finserv and get instant approval in minutes. Must Read: Must Know These Points About Instant Personal Loan App It is important to have good financial health, especially during the beginning of the financial journey. The negative remark on the credit score affects the loan taking capacity of the borrower. However, there are plenty of ways by which the credit report can get red flagged by the CIBIL authority. But the most common method among early-age borrowers is credit card debt.
You should know that credit card debt is high-interest debt, if left due it can impact negatively on the credit score. There are two popularly known options to pay off credit card due, either apply for a personal loan or transfer the balance to another credit card with updated features. However, if you are struggling to pay personal loan dues as well, it is possible to transfer the balance and start fresh. It is called a personal loan balance transfer. If you have a cheaper alternative, then balance transfer is the best option. Difference between Balance Transfer on a Credit Card vs Personal loan Applicability The loan transfer on a credit can be preferred if the debt amount is comparatively smaller. Because in that case, the loan can be paid back easily and faster. On the other hand, if the debt amount is larger, then you can prefer applying for a personal loan. Cost of Borrowing There is a cost involved in borrowing external funds. The cost of borrowing is subtracted from the disbursement amount. Therefore, you need to know the cost of each financing option. Repayment options The balance transfer on a credit card is a short-term loan, i.e; it has to be paid back within 12-to-18 months. However, the personal loan transfer payment option is flexible as it can be paid back within four years. These differences will help you choose between both financing options. Choose wisely! However, if you want to borrow funds to clear off your dues or cover up emergency expenses. You can visit Bajaj Finserv website and check for pre-approved loan offers by just putting in your contact details. Home improvement or renovation is something that every homeowner needs to do every few years to keep their home in pristine conditions. Home improvement is usually a costly affair and requires a large amount of money. Since these large expenses can cause a huge dent in your savings, you can always get home improvement loans from financial institutions.
Personal loans are the best solution for financing your home renovation, however before signing a personal loan for home improvement, borrowers must consider these 6 factors to make a smart decision:
Now that you know the important things you need to know before applying for a personal loan, you can easily avail from a financial institution like Bajaj Finserv, for amounts of up to Rs.25 lakh. It may be your dream to buy a car. The car can allow your family and you to have a convenient, safe and enjoyable ride. Also, some people look forward to second-hand vehicles instead of purchasing a brand new one. But the demand for pre-owned cars left many borrowers with the search for pre-owned car loans.
Eligibility criteria One can apply for any pre-owned car loan if the age limit is between 20 to 60 years. Irrespective of the fact that you are salaried or self-employed, you can apply for this loan amount. But before you use it, you should check for the credit score, expected incomes, and various other terms and conditions to avoid getting rejected for the loan. Amount of loan Lenders do not provide loans against the whole amount of the second-hand car. But the percentage of the value plays a significant role in determining whether it can be a feasible option to take the loan or not. Age and the type of car The loan approval sometimes depends on the age of the car. A lender may not approve the loan for a second-hand vehicle that is older than ten years. It is mainly because of the risk factor involved in financing the car due to its condition. Also, before taking a loan, you must verify the type of car you will buy with the loan amount. Some lenders might offer loans to private vehicles, while others provide loans to various new models and brands. Online personal loan If you find it difficult to arrange the required finance for purchasing a car, you can apply for an online personal loan. You can check websites or mobile apps that offer low-interest personal loan options. To avoid wasting time, you can also look forward to pre-approved loans. Bajaj Finserv, one of the leading NBFC offer pre-approved online personal loans to the borrowers. To check your pre-approved offer, you just need to share your basic personal details and avail of a hassle-free personal loan at affordable rates. Every homeowner gets their home renovated every few years to keep the condition of the house pristine and maintain the looks of their home. Home renovation costs can include renovation, maintenance costs, interior and exterior redesign, etc. which can make it a costly affair. Luckily homeowners can avail home renovation loans from NBFCs without hurting their finances or renovation plans. However, before you apply for a home renovation loan, keep the below mentioned points in mind:
NBFCs like Bajaj Finserv offer home renovation loan for amounts of up to Rs.25 lakh based on your eligibility, which you can calculate using an online personal loan EMI calculator. Ever since the Covid-19 pandemic has hit, a lot of individuals are taking personal loans to deal with sudden financial obligations and to manage other large expenses. As per reports, personal loan for women are becoming extremely popular amongst working professionals in India. Along with this, there are a lot of Financial institutions like Bajaj Finserv who offer personal loans at attractive rates of interest. Since personal loans are unsecured loans, the interest rates offered on these loans is comparatively higher than secured loans and interest rate calculation depend on various factors, but you can still get a low interest personal loan by following the following tips mentioned below:
You can use these tips to not just getting your personal loan approved but also secure a low interest personal loan by showing the lender or the financial institution that you qualify for a lower interest rate when they do their interest rate calculation. Additional Read: Some Facts About Personal Loan For Women There is no single good reason for taking a personal loan as it depends on the purpose for which you need funds. Thankfully, personal loans can be taken for any reason provided that you satiate the eligibility conditions put forth by the lender. Some of the popular small personal loan types are given below so that you understand the different reasons for which you can avail of a loan: Home improvement loan If you intend to do some structural or interior changes in your home, you can apply for a home improvement personal loan. You can get a quotation from a builder or contractor before applying for the loan as it will help you to procure the loan easily. Wedding loan Taking a wedding loan to cover all the expenses related to marriage is not a new trend anymore as young individuals these days are not interested in disturbing their investments. Education loan You may secure an education loan for your child to manage the expenses related to their higher education. For that, you need to co-apply for the loan along with your child. Travel loans, debt consolidation loans, medical loans, etc. are some other personal loan types that you can avail of to cover emergency expenses. You can also apply for a small personal loan from peer-to-peer lending companies or instant loan apps if the fund requirement is not huge. However, do not forget to calculate the EMI by using the loan EMI calculator or online loan EMI calculator as it will help you to prepare yourself financially. Also, it will help you to choose a tenor that can help you to repay the debt without any issues. It is possible to get a personal loan with low CIBIL but the interest outflow could be greater. This is because of the high-interest rate at which the lender will provide the loan if your CIBIL score is less or if you don't satisfy the eligibility terms. A better idea would be to explore the pre-approved loans that you can get quickly with minimum documents. For instance, Bajaj Finserv gives pre-approved offers for its different products, including personal loans, credit cards and home loans. Visit their portal and enter your name and phone number to check the personal loan offer for you. Additional Read: Know the good reason for a personal loan?
The financial market is full of various credit options. But among all, the home improvement loans are currently on the trend. It is because unsecured loans are gaining popularity because of their easy access. Personal loans made it easier for the Indians to plan their home or remodel it as funds are easily available. Before you indulge in this loan, here are some things you should know about personal loans for home improvement.
One can use it in various home improvement needs. One can take numerous types of personal loans. But before you take the home improvement loan, remember that this loan can fulfil the financial need of several home improvement names, including-
Minimum qualification It is one of the convenient credit options that anyone can avail. All you need is certain requirements like:
Quick availability One can avail of the home improvement loan within 24 hours from the time of applying. Tax benefit There are unique tax benefits for home improvement loans. Moreover, the maximum amount that one can deduct annually can go up to Rs.30000. Collateral financing The home improvement loan is a collateral-free loan. Due to that, there is a reduction in the documentation requirement. Convenient tenor selection As per the financial capacity of an individual, they can select the loan repayment period. Flexi loan facility It is another unique benefit of taking a personal loan for home improvement. Various lenders, including Bajaj Finserv let the borrower withdraw the desired amount from the pre-sanction limit. This facility charges the borrower minimum interest rate, which reduces the EMI by 45%. In today's era, home improvement loans can be easily available. But you must fulfil all the eligibility criteria to get the loan amount. Additional Read: Everything You Should Know About Home Improvement Loans Before we start our in-depth discussion, you must know the fundamental meaning of personal loan balance transfer. It is a process where you can transfer your loan repayment options by shifting your outstanding amount from one lender to another. It will help you save some money from interest and EMI. Here, we will try to introduce everything that comes with this process. So, before signing a personal loan agreement, you must go through the points that we are about to mention.
Understand the interest rate Evaluating the interest rate is one of the primary things you have to do before conducting a personal loan balance transfer. You have to make sure that you are choosing the most competitive interest rate. So, don’t forget to check the interest rate before signing a personal loan agreement. Check the additional charges A personal loan balance transfer involves additional charges. You have to understand that a balance transfer signifies the starting of a new plan. Therefore, you have to pay some extra charges. Choose the right tenor This process will allow you to reset your tenure options. Therefore, you can increase or decrease your tenor according to your necessity or preference. To be precise, you will get a chance to negotiate with your lender. Benefits of personal loan balance transfer A personal loan balance transfer comes with numerous benefits such as:
So, these are almost all the pivotal things that you need to know about personal loan balance transfer. We would recommend you go through all the points that we mentioned before signing a personal loan agreement. These days, if you are thinking of getting a low-interest personal loan, non-banking financial companies are your best alternatives. They don’t come with strict terms and conditions. Besides, their features are pretty attractive. Similarly, if you calculate their personal loan rates, you will perceive that they are easier to afford. One of the best ways to calculate the loan rates is by using an interest rate calculator. It will provide you with accurate results. So, here is the process that you follow to get the low-interest personal loan from Bajaj Finserv. Submit the necessary documents You have to submit a few documents if you want to get a personal loan from Bajaj Finserv. So, here is the list of the documents that you have to submit if you are a salaried person-
There is a possibility that they will ask you for some additional documents if they need further verification. Become eligible for the loan Numerous factors influence personal loan rates. Here are the factors that we are talking about:
Once you become compatible with all these factors, it is time to calculate the loan rates. So, use an interest rate calculator for this process. Apply online Once you apply online, you will get fast results. Here are the steps of online application:
So, these are the things that you have to follow if you want to get a personal loan from Bajaj Finserv. Additional Read: Know How To Avail Low Interest Personal Loan If you need some urgent money for purposes as per your preferences, then you can always rely on the unsecured personal loan. The unsecured personal loan is given on the basis of your creditworthiness, and you don’t need to submit any collateral. Based on your eligibility, you may access up to Rs.25 lakh from leading lenders in India. But before applying for the loan, you ought to consider some do’s and don’ts. Read on! Do’s of unsecured personal loans
2. Compare all offers online and go for the best deal Before opting for the unsecured personal loan, you should always compare all loan deals online and pick one that’s best for your needs. You can do that on a third-party website for free. 3. Go through the loan’s fine prints The fine print of the loan contains vital loan details like the repayment tenure, late payment charges, prepayments, defaults, foreclosure and more. Knowing all in advance can make you aware of what to pay and when. Don’ts of unsecured personal loans 1. Don’t default Defaulting on the unsecured personal loan can hamper your CIBIL score and affect your eligibility for the next loan. Hence, always make timely EMI payments and never default. 2. Don’t use the loan money for your desires The unsecured personal loan can be used without any restrictions, but it must not be availed for non-essential things or your desires. It is an emergency loan after all, and it must be used for covering your needs, and not desires. Bajaj Finserv offers pre-approved offers on personal loans and much more. Its purpose is to simplify the loan processing. You can explore your pre-approved loan offers after sharing your basic details such as your name and mobile number. Additional Read: Know Everything About Unsecured Personal Loan After the continuous cut in the repo rate by the Reserve Bank of India and its monetary committee, personal loans are available at affordable interest rates. Such revisions have led to a surge in personal loan popularity. Prospective borrowers can calculate personal loan EMIs before applying for the loan using ready-to-use EMI calculators. Borrowers can take advantage of the widespread availability of a low interest personal loan in the following way: Meet All Eligibility Parameters While eligibility criteria may differ from lender to lender, here are standard parameters you need to meet to get a personal loan at a low interest rate: 1. Credit score To impress a lender, a prospective borrower has to maintain a high credit score as it indicates your disciplined behavior towards your debt payments. CIBIL score lies between 300-900. The credit score at 900 is the highest. Generally, 750+ is considered a good credit score and preferred by most lenders to approve a loan application. The higher the score, the higher the chances to get loan approval. With a high credit score, you can negotiate on loan offers with a lender. You can ask your lender for a lower interest rate on your loan. A flexible repayment facility is also provided to high credit scores. 2. Minimum income Lenders are providing you a loan without any collateral. Therefore, you need to meet their minimum income criteria. They grant a personal loan to high-salaried or well-established self-employed individuals. An individual with a stable income can ask for a low-interest personal loan if the lender is satisfied with his/her repayment capability. 3. Negotiating with previous lenders You can choose your previous lender to get a personal loan. And if you have maintained a good relationship with the lender, you can negotiate to get a low-interest personal loan as loyalty builds trust with time. Your old financier can think of providing a loan at a low rate, provided the client repayment record is spotless. Thus, a high credit score enables borrowers to make EMIs more affordable with low-interest personal loans. Individuals looking for a personal loan can also grab pre-approved offers available for them. Bajaj Finserv offers pre-approved loans to their selected clients. Check your pre-approved offers for personal loans, credit cards, home loans simply using your basic personal details. Must Read: Know Everything About A Low-Interest Personal Loan In India, a large number of people apply for personal loans. Since best personal loans are unsecured and collateral-free, people find them comfortable to apply. A faster loan processing, approval and money disbursement further makes it one of the most applied. However, the best personal loan reasons are different from the borrower to borrower. Read on! Common personal loan reasons at a glance
2. For marriages The expenses of an Indian wedding could be unending. Many apply for a personal loan to get a large amount and cover all needs. A CIBIL score of 750 or more helps a borrower get speedy approval. 3. For home renovations One of the major reasons why people avail of a personal loan is for home improvements. The funds could be used for anything from bathroom fittings to interior modifications to kitchen tweaks and more. It is possible to get a loan approval of up to Rs.25 lakh from reputed lenders in India. 4. For medical emergencies Medical emergencies come without giving intimation and may consume all your savings and assets if you are not ready. It is where a personal loan for a medical emergency can help to pay off medical bills and more without restrictions. 5. For travel goals If you have been locked in your home owing to the Pandemic, you can rejuvenate by visiting your favourite locations. You can look up funds out of a personal loan to help you book flight tickets, hotels; enjoy sightseeing and food and more. Since best personal loans can be used for personal loan reasons, there is no end to how its funds can be utilized. Bajaj Finserv comes with pre-approved offers on personal loans, home loans, business loans and more. It is to ease off the processing of the loan. You can check your pre-approved loan offers today by sharing your basic details like your name and mobile number. Additional Read: Know The Reason Why You Avail Personal Loan To cover the educational expenses, many parents prefer to take education loans for their children. However, most education loans do not cover the entire fees and expenses of the students, and therefore, the borrowers need to arrange a set percentage of the expenses by themselves. This percentage could be higher for abroad studies. To avoid this inconvenience, you can apply for a personal loan offered by Bajaj Finserv. The benefits for an instant personal loan for students are given below:
Funds the entire expenses Bajaj Finserv does not restrict you while utilizing the funds obtained through a personal loan. Also, you can borrow as much amount as you require provided that you are eligible for it. As a result, its instant personal loan can be used to fund the entire expenses of your child’s education. Quick disbursals For getting the education loan approved, you will have to go through many procedures and formalities. For example, you need to get the acknowledgement letter from the college or university in which your child studies and provide documents of both you and your child. The personal loan for education offered by Bajaj Finserv gets disbursed quickly as minimum documents and formalities are required to process it. Moreover, you can fill the form and select the loan tenure and amount from your home as an end-to-end online process is available on its website. Flexible repayment You don't have to worry about the repayment of the loan, as a flexible loan can be selected at your convenience. Also, you can prepay an emergency loan if you wish and reduce the EMI up to 45% by paying only the interest of the loan as EMI during the initial term of the loan tenure. Bajaj Finserv also offers pre-approved offers, including personal loans, credit cards, travel loans, etc. For verifying the pre-approved offers that you can avail of, you can visit their website and submit your name and contact details. |
AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |