91-9711165183
Taking a loan is a common way to access more funds. Borrowing money can help individuals and businesses manage essential expenditures or emergencies. But getting a loan often depends on the creditworthiness of a borrower.
Lenders want to be sure that their creditors will pay back the loaned amount on time. That is why banks and other lending institutions look at the credit scores of loan applicants before sanctioning their requests.
Credit scores can also influence the terms of a loan agreement. For example, you may get low Personal Loan Interest Rates if you have a high Credit Score! Thus, your credit score is an essential consideration while making financial decisions. But who decides these scores, and how can you get this information? Let’s explore the top agencies in India that are authorized to generate your credit report.
The Reserve Bank of India (RBI) has authorized four Credit Information Companies (CICs) to collect information regarding the creditworthiness of borrowers. These credit bureaus analyze and interpret the credit behavior of borrowers to generate their credit scores. They provide comprehensive credit reports for borrowers across different types of credit instruments. TransUnion CIBIL is India’s oldest credit bureau. It is also the most ubiquitous. As a result, its name has become synonymous with credit scoring. That is why many people refer to all the CICs as CIBIL Agencies. The four CICs in India are:
● TransUnion CIBIL
● Experian
● Equifax
● CRIF Highmark
Let’s break down everything you need to know about these bureaus.
This institution was established in 2000, becoming the best-known credit bureau in India. Leading banks, non-banking financial institutions, and housing finance organizations refer to CIBIL Scores before approving loan applications. For example, if you want a YES Bank Personal Loan, having a high CIBIL score will help your case. Here is what you need to know about this credit bureau:
● Services: TransUnion CIBIL provides consumers with credit scores and complete credit reports. The credit scores it assigns lie between 300 and 900. It further generates the CIBIL ranks and commercial accounts for organizations.
● Scoring Techniques: It collects information from the Consumer, Commercial and Micro-Finance Institution Bureaus to develop credit scores for over 1000 million entities. It has a calculation model called Empirica. This scoring model considers repayment history, credit mix outstanding loans, and other details.
● Contact Details: Users can contact CIBIL by logging onto https://www.cibil.com/contact-us.
This American-Irish institution was the first CIC approved under the CICRA Act of 2005. It launched its Indian operations in 2010, generating credit reports with its proprietary scoring techniques. Here is what you need to know about this SEBI-approved agency:
● Services: It provides credit scores for individuals and commercial proprietors in the 300-850 range.
● Scoring Techniques: Experian uses the FICO calculation model to generate scores. It focuses on better risk management. Moreover, it combines individual and business information to calculate commercial borrowing scores.
● Contact Details: Users can reach out to Experian at https://www.experian.in/contact-us.
Equifax India was a joint venture between 7 Indian financial institutions and Equifax Inc. USA. Since 2010, this organization has focused on creating user-friendly credit reports by minimizing complicated jargon. Let’s break down what you must know about Equifax.
● Services: This institution provides credit reports to consumers. It also includes portfolio reviews and risk scores for its members.
● Scoring Techniques: The Equifax scoring model accounts for the length of credit history, repayment records, credit mix, and other factors. Its scoring model calculates scores in the 280-850 range.
● Contact Details: You can contacts Equifax at https://www.equifax.co.in/contact_us/en_in?intcmp=header_contact.
Licensed in 2010, CRIF Highmark is India’s pioneering full-service CIC. It provides credit reports for multiple borrower segments. They cater to retail borrowers, MSMEs, microfinance creditors, and commercial borrowers. Here is what you must know about CRIF Highmark:
● Services: It provides credit reports to different kinds of borrowers. It also offers fraud management and predictive analytics-oriented solutions to institutions.
● Scoring Techniques: CRIF’s scoring model accounts for factors similar to the ones used by other CICs. An essential element they evaluate is the debt-to-income ratio. They assign scores in the range of 300-900.
● Contact Details: Users can contact this institution at https://www.crifhighmark.com/contact-us.
As the above discussion highlights, credit scores calculated by India’s CICs lie in the 300-900 range. Typically, a score above 700 is considered to be high. If you want more information, like the minimum CIBIL score for Personal Loans or how to check your CIBIL Score for loans against property, you can contact the YourLoanAdvisors team today!
A Loan Top-Up is a common terminology in the banking industry referring to an additional sum added to a pre-existing loan, similar to an extra topping added to a pizza or refills to a glass of Coke the base remains the same but with an enhanced value.
Individuals look to a previous source as a suitable option rather than starting a new relationship. Dealing with a known Bank or NBFC gives the applicant a sense of comfort in applying for additional funds as a Top Up when required.
A Personal loan: Funds received as a Top-up to a Personal Loan can be used for personal expenditures such as Family vacations, Wedding expenses, educational expenses, and medical usage or emergencies.
A Home Loan: A Top-up to an existing Home Loan is sanctioned for registration of the property, home renovation, expenses for additional construction in the residential premises, and maintenance expenses.
Banks and NBFC usually give a gap period of three to six months before sanctioning a Top-up. This is more so with first-time loan seekers, confirming if the applicant conducts the loan per the agreement terms.
Lenders are keen to retain good customers who seek a Top-up to their existing loan, but only if eligibility criteria are met.
• Individuals with an existing loan are eligible to Apply for Top-Up if the EMI is being paid on time; the successful payment record gives a sense of confidence to the lender that the loan will be repaid without delays. The request may be denied if there are bounces or delays in the repayment track.
• The applicant’s obligations will be considered before calculating the eligibility for the Top Up these include existing loans, credit card dues, and regular monthly outgoings. The income must be sufficient to afford the expenses and pay the additional EMI amount.
• The CIBIL Score of the applicant must be above the required benchmark the CIBIL records are checked to ascertain the number of loans and credit cards being held.The repayment record for all credit taken should be a timely one. If the lender feels that the applicant has recently taken too much credit, the applicant can be declined.
• The applicant’s employer must feature in the approved list of companies issued by the Bank. If the applicant has changed employment, the application for a Top-up will be viewed per the applicant’s current status and must meet the eligibility criteria.
A relationship with an existing lender may prompt customers to apply for extra funds when required. A Top-Up option though convenient and suitable in some circumstances, may not work well in others.
A Top-Up Loan is quicker as the lender is familiar with the applicant’s details and can expedite the process. Therefore, a Top Up is advantageous if there is an urgent requirement of funds.
With a top to the existing loan, the applicant has the benefit of paying a single installment for the entire amount. Individuals preferring to manage a single EMI can Top Up an existing personal loan and not apply for an additional/parallel loan.
If the existing EMI is a strain on the purse, an additional loan may add to the expenses. Applicants can request an extension of the repayment tenure with an affordable EMI post-approval of the Top-Up.
With a Top-Up,customers can avail of the benefits of a discounted interest rate applied to the principal balance of the existing loan and the added amount approved post a Top-up.
Applying For a Top Up Loan will not always serve well below are the scenarios under which it might not be the best option.
As most Banks have a lock-in period of 12 months, therefore, with a top Up, the applicant can repay the loan a year after receiving the Top Up amount thus, the choice for prepaying the loan becomes restricted.
Applying for a Top Up early in the Tenure is a better option as the interest quotient has been majorly repaid after the tenure has crossed halfway. With the loan being restructured, interest will be levied as per a new repaymenttenure on the principal balance of the previous loan and the fresh amount sanctioned.
The current interest rate should be confirmed before Applying for a Top Up. If the existing loan is running at a lower rate than what is being offered with a Top Up it is better to Apply for a Parallel Loan rather than going in for a Top Up.
Consider all the options before deciding whether a parallel loan will serve the need better than restructuring the existing loan with a Top Up.
A Top loan is similar to a Balance Transfer which is done internally. The existing loan will be foreclosed, and a new Loan account will be generated with the principal balance of the current loan and the additional amount approved.A new EMI will now be presented to the Bank account for the tenure approved.
The process steps followed for a Personal loan Top Up are similar to those of a Fresh Personal loan.
The applicant needs to apply with the updated documents giving the present residence and employer details. The request for a Top Up can be declined if the applicant’s current profile and CIBIL History are unsuitable. Running a previous Loan successfully is not reason enough to get a Top Up when needed.
Lenders willingly offer a Top Up to Existing Personal and Home Loan customers who successfully run their present loans with an on-time repayment record. It is a win-win situation for the lender who is confident of funds being repaid with interest and for the applicant.
First-time credit seekers must build a good credit score before being eligible for a Top-Up Loan. Existing customers are issued for a Top Up as often as desired as long as they hold a steady income and a profile that the bank approves.
Central Banks approving Top Up Loan are the Prime Lenders today.
HDFC Bank
ICICI Bank
Axis Bank
Yes Bank
Keep the Top Up option but survey the market for other offers we at YourLoanAdvisors are there to help our esteemed customers make the best decision for their financial needs.
Personal Loans can be a relief when we urgently need funds, whether for any individual requirement or an emergency. A prominent feature of Personal Loans is that they do not require collateral or security, which is beneficial for the borrower but a high-risk product for the lender.
They can be availed in locations all over India as per the areas serviced by lenders. In all the major metro cities, i.e., Mumbai, New Delhi, the NCR, Bangalore, Chennai, Hyderabad, and Pune, to name a few.
However, like all other loans, it is equally vital in the case of Personal Loans as well to make the repayments on time, failing which can lead to extra charges being imposed over and above the interest charged. This can also lead to a poor credit record, making banks hesitant to offer furtherance or a higher interest cost.
Evaluating the impact that Personal Loans have on our finances and credit rating, we observe that Personal Loans could instead positively help our credit scores with the loan obligations, including the principal and interest payments, being made on time. Below are some of the positive ways in which Personal Loans can boost our credit scores:
When all the repayments of an unsecure loan are made on time, the credit score increases. This can be achieved if one regularly keeps up with the bill payments by keeping a set budget, using an automatic bank payments feature, or setting reminders.
The credit utilization ratio defines how much of the available credit limit is used. Our credit utilization ratio will remain low by maintaining a conservative usage of the available credit and making regular and timely payments.Use over the available limit or pending due scan increase the ratio, reducing the chances of getting credit when required.
A diverse mix of secured credit and unsecured in the form of a mortgage or an auto loan and Credit Cards or personal will help to build a healthyscore. A diverse mix of long-tenure and unsecure credit repayment tracks will ensure that the credit score is above the required benchmark.
Regular credit usage does much to keep the CIBIL account active. The score will stagnate or dip if average data is not received and updated. Lenders are keen to know that applicant has been currently using credit and making timely payments. This will ensure a good credit rating and easy receipt of further loans.
Major Credit Bureaus Authorized to Collect Data from the Banks are the Following:
• CIBIL
• GRIF High Mark
• Equifax
• Experian
The agencies’ essential functions and operating methods are similar, although the scoring techniques may differ. Data of all credit transactions are updated regularly and assimilated.
A good repayment record can boost a credit score as Personal Loans are unsecured. In contrast, defaults or delayed payments can reflect immediately in the scoring. Therefore, much depends on the individual user whether a Personal Loan will help build a credit score or drag it down.
Personal Loans can now be availed from the comfort of your home – thanks to websites like YourLoanAdvisors, which can assist you in helping credit at competitive interest rates and in record time.
The abbreviation KYC stands for” Know Your Customer” which has become the foundation for all Banking transactions. The Reserve of India has mandated the Know Your Customer process steps for all financial institutions to verify the authenticity of applicants for financial services.
It has been ruled that before acquiring new customers, Banks, Insurance and Asset management companies must comply with the KYC Guidelines, as the financial sector is prone to crimes like money laundering, identity theft, and terrorism funding
To complete the KYC Process, an applicant must submit the appropriate documents. Banks have enumerated several readily available records to simplify the process. The following KYC-Required Documents are to be submitted as proof of identity and address when Applying for a Loan or any other credit form,
Aadhaar/PAN/Passport/Driver’s License/Voter ID/Employee ID with photo, etc.
Wikipedia describes a PAN Card or a permanent account number as: “A ten-character alphanumeric identifier Foundational ID issued in the form of a laminated “PAN card” by the Indian Income Tax Department to any person who applies for it or to whom the department allots the number without an application.”
Thus, a PAN Card becomes an essential document for individuals with an income to establish their identity for tax, legal or banking needs. The details of a PAN Card include.
The details filled in the application form must match exactly with the PAN Card copy submitted. The PAN Card mainly serves as proof of Identity, age proof and signature verification. As mentioned, the father or mother’s name also authenticates as relationship proof if required.
The Aadhaar is a 12-digit number which gives a unique identity to every Indian citizen and provides a system for single-source offline/online identity verification. The different forms of Aadhaar are Aadhaar Letter, Aadhaar PVC card, e Aadhaar and m Aadhaar. All forms of Aadhaar are equally valid and acceptable. When applying for government or financial services, an Aadhar card can be used as proof of identity, address, and age. Specifications of an Aadhaar card include:
The QR code contains the demographic details and photograph of the customer, along with the masked email ID and mobile number. UDAI digitally signs the QR Code to avoid misuse. As an Aadhaar card has been declared an essential document for all official dealings, it has become nearly mandatory for all banking transactions.
An Aadhaar card is linked with the applicant’s mobile number and endorses the complete details required by Banks such as HDFC and Axis Bank to serve as an Identity and Address proof.
Further, the Aadhaar card also serves as an e-mandate for conducting biometrics, mainly as ICICI Bank operates KYC Verification digitally.
It is primarily a travel document issued to all Indian citizens on behalf of the Government of India. A Passport is proof of nationality and enables an individual to seek a permit or VISA to cross borders and travel overseas.
The rigorous checks conducted before issuing a passport give it authority to be used as an officially valid document for the purpose of KYC Verification. The passport can be used as proof of Identity and as address proof.
A passport carries a laminated photograph of the applicant and gives the following details:
A Driver’s Licence, Voter ID and a Government Employment ID are other KYC Documents Banks approve for verification.
For financial services, whether opening a new Bank account or acquiring credit, KYC Checks are to be completed per the guidelines of the Reserve Bank of India to ensure that the customer is genuine and not involved in fraudulent activities.
After submission, the financer thoroughly investigates all the documents to ensure that the papers submitted and applicant details are authentic.
The required process for verification of KYC Documentation can be done conventionally. Considering the changing times, the digital processing of KYC Requirements for banks has also been declared officially valid by the Reserve Bank of India.
The significance of KYC should not be underestimated; a one-time submission of all the necessary documents will help to expedite processing. Only after the KYC has been checked is the Bank or financial institution authorised to complete the financial transaction, be it opening a savings account or acquiring further credit.
Borrowing money from the bank can help one navigate financial exigencies. Personal Loans are excellent for managing lifestyle needs or unforeseen expenses. However, financial commitments are unpredictable and borrowers sometimes need more money than their original loan amount. Here is where a loan top-up comes to their rescue. For example, if you have an existing Personal Loan, you can apply for the Personal Loan Top-Up facility! This option will allow you to borrow additional money if you clear the eligibility requirements. A Top-up Loan is a convenient way to draw more funds without extra hassles or complexities. Let’s break down the concept of Top-up Loans and their benefits!
Top banks in India offer convenient credit options for their valuable customers. A Top-up Loan is an excellent option to help borrowers extend an existing loan. You can apply for an additional loan amount while repaying the original sum. This top-up is a quick solution to your incremental financial requirements. Once approved, the bank disburses a top-up loan within a short span. The approval process requires minimal documentation as the bank already has the borrower’s details.
Personal Loan users often avail of this facility to extend the availability of funds. For example, if one has taken a Personal Loan from the Bank, they can get a top-up loan on their Personal Loan. This option will allow them to access additional funds without going through the procedural complexities of a new loan.
Many people get daunted by the idea of borrowing more money. But worry not! Managing your credit the right way can yield many advantages. Let’s glance through the benefits of a top-up loan!
● Minimal Documentation: Most banks ensure simplified documentation for borrowers who apply for top-up loans. For example, Top-up Personal Loan applications require very few documents to initiate the approval process.
● Quick Disbursal: Top-up loans are excellent solutions for meeting urgent financial needs. Banks already have relevant documents related to the borrower’s creditworthiness and income. As a result, top-up loan approvals become quicker. You can get the approved amount in your loan account within a few days.
● Favourable Loan Terms: If you are a creditworthy borrower who pays existing instalments on time, your lender may offer attractive terms for your top loan. You can get Personal Loan Top-Ups without putting up any collateral. Moreover, you may request the bank for a tenure extension within the usual five-year limit. Interest rates and tenure extensions are subject to the lender’s discretion. However, expert loan advisors can guide you to get the most attractive terms when you Apply For a Top-Up Loan.
● Better Credit Score: Taking a top-up loan can contribute positively to your credit history if you make the repayments on time. This aspect can improve your Credit Scores for getting attractive terms on your future loans.
Now that you know about this exciting facility, you can contact YourLoanAdvisors to learn more! Their experts can help you get top-up funds from leading banks. So if you need a top-up loan on your Personal Loan, reach out to YourLoanAdvisors today!
With the onset of digitalization, the financial industry has had a makeover online transactions are the rule of the day. Monies are transferred with a click, and Bank visits have become few and far between.
Banks and NBFCs continuously update information regarding products and policies. Terms and offers for secured and unsecured loans are published and advertised.
Taking it further, Top Banks and Finance companies now offer online processing for secure and unsecured credit. The speed and convenience of online transactions boost sales and loan seekers are happy to research the best terms available per their needs from the comfort of their environment.
A complete range of information is available on the net regarding lenders and their latest offers for a Personal Loan individuals needing fund surgently find it convenient to apply online and receive funds in record time without having to visit Banks.
Applying online is easy for a Personal Loan, with soft copies of income and KYC Documents readily available. But using online has some roadblocks, and it is essential to take note of the following to ensure smooth and timely processing.
Before applying online or mailing your documents, it is essential to know the significant terms and charges that apply.
Interest Rate- The interest rate or cost of funds is the primary charge for a Personal Loan and ranges from 10.5% to 18%.
Repayment EMI- The monthly repayment for the Personal Loan should be comfortable to pay. The tenure is fixed from12 to 60 months per the income and loan amount. Calculate your EMI in advance using our EMI calculator.
Processing Fees- Charged is from nil to 2% of the loan amount disbursed.
The Foreclosure Terms- The lock-in period for a Personal Loan extends from 6 to 12 months, with charges applicable for early repayment of the loan.
On mailing details, your request will be registered by the Bank the lender will also forward a CIBIL request. If the terms are not suitable and further processing is not desired, there is no going back to the application the inquiry will show in the CIBIL record, and points will be deducted as per the norms.
Applying online simultaneously to many lenders can lead to a decline of your request due to many inquiries registered on the CIBIL track.
A Personal Loan is forwarded without any security as documentation forms the basis for the decision to approve or decline the request.
Special care is required while compiling Personal Loan documents, including income and KYC Documents. Complete documentation sent on time will ensure speedy processing, which may be withheld or delayed if the required documents needed for the financer are not received.
Copies sent should be updated and authentic, as all documents are verified to ensure they are true copies. The Banks officer may require additional documents from the customer to prove ownership or continuity if an increased loan amount is required.
The Domain and credentials of the service provider should be verified before mailing documents they should belong to an organization, as sending documents to a personal mail ID is risky.
Contact details should be verified to ensure accessible communication and be easy to track. Maintain verbal contact at all stages to check if all is in order.
Most Banks make a verification call after receiving a Personal Loan request to confirm the applicant’s contact details. A message or email is also sent to acknowledge the loan request, and a loan ID is generated. If no communication is received within 24 hours of submitting the paperwork, it is a cause for concern.The USP of a Personal Loan is easy and quick receipt of funds if the process is stalled because of a pendency, it will defeat the purpose of online processing.
Being updated at all stages of the process is essential as it will ensure the timely delivery of a Personal Loan. Systems are still being revised for online processing for secured and unsecured credit, but the journey is mixed.
Applicant sun willing to expose their details online still prefer to process their loan application by giving hard copies of documentation. Cutting down on paperwork and physical visits,customer verification is confirmed on a Video call and applicants can now process the disbursal of their loan online by accepting the terms and conditions of the loan agreement on the soft copy. Banks are working to remove glitches, as there is no denying that digitalization is the finance industry’s future in the times ahead.
A financial crisis can break anyone economically as well as psychologically. If you are going through a major money blow, then Personal Loan Consultants in Delhi can be your one-stop solution to keep your financial woes at bay. Recently Personal Loans have emerged as one of the most practical ways of borrowing as the loans are unsecured. Lenders take on more risk when they provide them to consumers, which is why the interest rates that apply to them are greater than those that apply to home loans or auto loans.
As per RBI data, the credit outstanding for the Personal Loan category was stretched by 12.1% from 26 lakh crore in September 2020 to 29.18 lakh crore in September 2021. 2022 is no different. The numbers have only rose significantly, denoting how Personal Loans have become one of the most pragmatic solutions to handle immediate financial responsibilities.
Personal Loans can be helpful for a myriad of reasons including when you need to pay for a medical emergency, pay off all of your bills, fund your child’s further education, or for other reasons. Because Personal Loans do not require collateral, they are far simpler to obtain than home or auto loans. Here are some crucial factors to take into account if you’re looking to apply for an immediate Personal Loans.
Although Personal Loans will help you out in an emergency, it’s crucial to realize that the interest rates that apply to them are pretty high, and the payback terms are relatively brief. Equated Monthly Installments (EMIs) will be used to repay the amount you borrow, so you will need extra money each month to cover these costs. To ensure you can fulfill your payback commitments, you must take into account your total financial status.
It is simple to get carried away and apply for a greater amount than you need because Personal Loans are so simple to obtain and can be disbursed in just a few minutes or hours. It’s critical to determine how much cash you’ll need for immediate expenses and keep your borrowing to a minimum of that amount.
Banks and other financial institutions charge hefty interest rates for Personal Loans. Consider options like loans against fixed deposits, loans against shares, or even loans against gold if you don’t want to spend a lot in interest. These loans are secured since they are backed by assets, and they have far lower interest rates than traditional loans.
To avoid unpleasant surprises later on, you must carefully read the loan paperwork from beginning to end. Read the small print to ensure you are aware of all the costs and penalties. By doing this, you can make sure you are fully aware of the terms and circumstances of the loan, which will make it easier for you to make timely payments and pay off your debt without experiencing any difficulties.
Defaulting EMI Payments or failure to repay the loan on time can have severe implications. Therefore, understand that deferred or delayed payments lower your credit score and make you an unreliable customer in the eyes of the banks that you approach in the future. In addition, inquire about the penalties on late repayment, so that you don’t increase your financial burden with late repayments.
Personal Loans account for about 28% of total bank credit and a report said that volumes of new Personal Loan accounts recorded a drastic growth of 133.9% due to increased customer demand.
Gone are the days when taking a loan or repaying it was a headache. Now there are hassle-free borrowing alternatives such as Loans Against Property in Delhi and the best part is you can always avail of Personal Loans without any lengthy or gruesome processes. How? Well, all you need to do is reach out to the top loan consultants and they can support you with everything ranging from the initial documentation to final repayment.
Banks advance Personal Loans to salaried individuals to manage urgent financial needs. You can (get) personal loans to fund your lifestyle practices or pay for (Immediate) expenses like medical emergencies. Sometimes, the loan amount is inadequate to cover all the financial needs you might have. A Personal Loan Top-Up can help you manage your expenses and navigate your money matters in such situations!
Let’s break down everything you must know about this financial facility for individual borrowers.
India’s leading banks allow clients to borrow more money from an ongoing Personal Loan account. They can get additional financing while repaying the original sum. These loans work just like your initial personal loan. Banks allow users to enjoy similar benefits. For example, HDFC Bank’s Top-up Personal Loan facility enables borrowers to access funds without providing any collateral. At the same time, the HDFC Personal Loan Top-up also allows users to get money without any end-use restrictions.
Let’s Explore its Salient Features:
● Unsecured Debt: These top-up options ensure collateral-free access to additional funds, just like the original personal loan.
● Tenure Extension: When a borrower applies for the Personal Loan Top-Up facility, the bank may extend the loan tenure. If you apply for a top-up from the bank, YourLoanAdvisors can guide you to seek a loan extension. However, the extended loan tenure must remain within the five-year limit for repaying the regular Personal Loan.
● Attractive Interest Rates: Sometimes, lenders offer lower interest rates on personal loan top-ups. Borrowers who pay their original Personal Loan EMIs within stipulated timelines sometimes receive attractive interest rates. This factor helps to reduce the overall cost associated with your loan.
● Boosts Your Credit Score: Borrowers who take top-up loans and repay them on time can improve their credit scores. When this happens, the borrower’s creditworthiness improves to get better terms on future loans.
Procedure and Documents You Need to Apply for Personal Loan Top Up It is easy to apply for personal loan top-ups with India’s top banks like. For example, the Personal Loan top-up procedure is quick and easy to manage. Lenders typically ask the borrower to submit the following documents.
● Identification documents.
● Income proofs.
● Original documents submitted during the initial application.
However, some lenders do not ask for additional documents and re-verify the original proofs submitted during the initial process.
Offline applications for Personal Loan Top-Ups happen at bank branches of a borrower’s existing lender. However, you can also apply for it via the lender’s website. For example, for an personal loan top-up, the online application process is simple and quick. fill up a form on the bank’s website and submit the relevant documents. The lender will assess the application and determine the revised interest rate before disbursing your loan amount.
If you want to know more about the application process, contact the experts at YourLoanAdvisors. They will guide you through the steps and help you get the best financing solutions!
In today’s lifestyle, liquidity management is imperative handling unexpected financial emergencies is not always manageable. Borrowing money is the first thought that appears when managing a financial problem.
Though meeting loan requirements is not as easy as it seems, you can contact Your Loan Advisors, leading Personal Loan Consultants in Delhi, who can help you to process a Personal Loan that covers your needs.
Savings in the form of a Fixed Deposit can also help you save the day A loan is readily granted against a Fixed Deposit by most Banks. Therefore, instead of prematurely withdrawing a fixed deposit, you can get a loan against it and cover your financial needs.
Which is a better option? Let us discuss the major features, pros, and cons to get a clearer picture.
The interest rate for a Fixed Deposit is 2% to 3% more than the current Fixed Deposit rate. In effect, the higher the return on the Fixed deposit, the more you pay for the loan. With a Fixed Deposit Rate of 7% to 8% currently, a loan will be charged up to 11% per annum.
The current interest rate for a Personal Loan is levied at 10.25% to 18%, charged at a reducing balance. It varies from financer to financer and is subject to change.
Consider the rates, the Personal Loan Rate being charged per your profile, and the interest you will pay for a loan against your fixed deposit before finalizing.
The Loan amount issued against a Fixed Deposit will be determined by the amount you invested and the pending tenure. The loan amount cannot be more than the Fixed Deposit and the EMI over your monthly income.
Personal Loan eligibility is calculated per income, employer, and obligations if the EMI is affordable. The applicant can check the EMI using the EMI Calculator.
The fixed deposit and the EMI suitable loan amount required should be covered.
The tenure granted for a loan against the fixed deposit depends on the period the loan must be repaid before the maturity date. If the date is closer, the loan amount granted will be as per the affordable EMI.
The tenure for a Personal Loan extends from 12 to 72 months, fixed as per the applicant’s requirement and the financer’s policy.
The documents required for processing a loan against a fixed deposit are the updated KYC Documents. which include residence and identity proof.
The customer will have to visit the branch to complete the formalities physically Banks do not offer digital processing.
Personal Loan documents include income documents, bank statements, and KYC Documents. A Personal Loan can be conveniently processed from the comfort of your premises. Documents can be submitted digitally and the loan is disbursed online.
The loan against a Fixed Deposit is secured; if the customer cannot return the loan in time, the Bank can break the Fixed deposit to recover the loan amount.
While a Personal Loan is an unsecured loan based purely on the applicant’s profile and income forwarded without guarantees, the terms and conditions are applied per the financer’s policy.
If the loan amount required is minimal and for a relatively shorter period, then a Fixed deposit may be your answer. However, if the terms are unsuitable or you do not have a Fixed deposit, a Personal Loan is a solution.
Loans, secured and unsecured, are a primary source for individuals requiring funds for a new home, education, or personal usage.
A lender’s primary concern is that the money forwarded as a loan should be repaid per the schedule. Besides documentary proof or collateral,the customer’s profile is vital. The application form for a loan requires both personal and professional details,which help the lender decide whether the applicant qualifies or not. Fillout the application form for a loan carefully with valid information which matches the documents submitted.
Details are asked regarding the applicant’s source of income and personal information,which contribute to the decisioning of the loan. Significant questions include the following:
The applicant’s source of income is a priority for the lender. A regular income will ensure financial stability for repayment of the borrowings.
The applicant, if salaried, must be working for a minimum of 12 months to be eligible for a loan. They will be quizzed about their employment history and change of jobs. If there has been a break in employment and if so for what reason? The applicant may be asked to submit documentation of previous jobs as proof of continuous work.
For self-employed individuals, the business entity must have a vintage of 5 years or more, with a consistent turnover and profit. The company must be registered with the MCA with all required certifications.
The nature of the business of Self-employed persons and business organizations is vital to the lender if the business profile is considered nonprofitable and risky as per the financer, the loan will not be processed. Specific business profiles may be supportive, while others could be regarded as ‘negative’ and thereby not fundable per policy.
The current employer of salaried applicants must be in the approved company list of the financer. Most Banks will happily fund the employees of the Economic time’s Top companies, profitable ventures having a high turnover and Government staff. At the same time all Banks may not fund applicants employed with proprietorship firms.
Give a thought to the loan amount you want to apply for. It should be commensurate with your income so the EMI can be easily repaid.
The need for funds may be in excess, but the loan amount given will be as per the Eligibility Calculation Criteria of the financer. When filling in the loan amount required provide a realistic figure in sync with the earnings that the financer will be comfortable lending.
A Home Loan or mortgage is calculated by considering the property’s cost and the applicant’s income. Other EMI being paid and existing credit will be taken into account.
The amount approved as unsecure depends on the pay of the applicant, mandatory monthly expenses and other obligations, loans, and credit card bills.
Use our EMI Calculator to check if the EMI is affordable before requesting the loan amount and repayment tenure.
This is the most crucial query the lender will want to know the end users of the funds given. The applicant will be questioned in detail to verify the purpose of the loan.
For a Home Loan, the amount is meant for purchasing a residential property. When disbursing the loan amount, the lender must provide proof of purchase and an advance payment receipt.
The loan amount will be given directly to the seller for a ready-to-move property and funds will be forwarded to the builder if the property is under construction.
For a mortgage, the net is more comprehensive a loan granted against property, or LAP as it is popularly known can be used for business, for further education of children, or the construction of residential or office premises. As the case demands, the payment order is made in the customer’s name or company and can be used at the customer’s discretion.
A Business Loan is meant to be used to further the business, buy equipment, and for expansion the applicant must be able to give details to support the request as to how the funds will be deployed in the business venture.
A Personal Loan is meant for personal usage, emergencies, vacation, home renovation, a family celebration,or wedding expenses.
Before sanctioning a Personal Loan, the underwriter must be convinced that the funds will be used appropriately and will question the applicant to ensure that the applicant has a genuine need. Funds granted via a personal loan cannot be used for investment or starting a business, or nefarious activities.
Before sanctioning a loan, the CIBIL of the applicant will of the applicant is checked. The applicant will be asked about the existing loans as reflected in the CIBIL if there are any delays in repayment in the past, pending loans,or credit card bills., At this juncture, the customer will get a chance to clarify If there are any errors or missed updates. The CIBIL Records the details of all credit used from the start, and the applicant must be clear and accurate about all inquiries regarding credit usage.
Stability and Contact ability are the bywords for getting credit. An applicant who has been residing in the same premises for several years or has a self-owned property has a permanent base will give a sense of comfort to the lender.
A self-owned or family house has the added benefit of no rental expenses and adds points to the profile.
The underwriter will confirm the residentialst at us,and a physical verification will be conducted to verify the details. Documentary proof for ownership can be requested if the requirement for the loan amount is in excess.
The number of persons supported by the earning member will make a difference to the allotment of expenses. First, the mandatory and lifestyle costs must be covered, like education expenses for children and household expenses for the family. Surplus funds are used to pay for EMI or luxury spending.
The applicant will be asked about his children, spouse, and parents living with him and if other earning members help support the family.
Banks and NBFC also club the income of a spouse or blood relatives to increase the eligibility for funding extra loan amounts.
The applicant can submit proof that there is a regular income from other sources, such as rent or commission, which can be added to the income criteria to increase Eligibility for a Loan.