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Lending today is a thriving industry most financial organizations offer funds to customers looking to buy a home, a vehicle, commodities, travel, or for a vacation finance is available as needed. Banks issue various forms of credit in the form of Credit Cards, mortgages, consumer loans, Personal Loans, and Vehicle Loans.
When issuing a Loan, the Lender’s primary concern is to ensure the borrower will repay funds as per the schedule. Delayed repayment can cost the customer and the Lender dearly, which both want to avoid at any cost.
A Personal Loan is readily available to fulfill individual needs and emergencies,but borrowing an amount easily affordable to repay with the current earnings is the right decision.
There are no restrictions on using a Personal Loan, and it can be used by the applicant as desired. Banks issue funds as Personal Loans for personal expenditures without collateral or security with an individual policy for calculating the loan amount and interest rate applied. The Primary features for calculating the loan amount that can be issued to an applicant are as follows.
• The Monthly Income: The salary of the applicant transferred to the Bank account, is counted as the monthly earnings if additional sources of income are coming in regularly, provide documentary proof of the same.
• The Current Employer: The company the applicant works with should feature in the Lender’s company category list the loan amount approved and the interest rate are per the company’s categorization.
• The Existing Loans and Credit card usage, as reflected in the CIBIL, are taken as obligations and deducted from the income. The CIBIL Score of the applicant must be above the required benchmark.
The lender assesses the profile of the applicant and confirms the amount that can be issued as a Personal Loan. After the applicant accepts the terms of the lending organization the loan amount is transferred to the applicant’s account electronically.
When signing the agreement and accepting the terms of the lender, the applicant should pay attention to the terms for the repayment of the funds, paying attention to the monthly installment or EMI, the charges applied, and the total cost of the loan.
Before applying for a Personal Loan, it is essential to check all repayment terms to work out a suitable offer. Significant norms influencing the terms and conditions for a Personal Loan repayment include.
The Loan Amount: The loan amount the Lender approves as a Personal Loan after considering all related inputs, such as the amount applied for and the eligibility as per policy. The applicant should easily afford to repay the loan with the monthly installment fixed.
The Interest Rate: The interest rate or the cost of funds for a Personal Loan is 10.25% to 20%, charged at a monthly reducing balance, and is the primary cost of funds. Surveying the market for the lowest rate available will ease the Repayment.
The Repayment Tenure: for a Personal Loan or the period within which to repay the loan is 12 months to 72 months. The Bank decides the term according to the repayment capacity and profile of the customer. The EMI can vary with the tenure if the applicant desires a lower installment a longer tenure can be requested, whereas if the loan amount can be repaid sooner the applicant can ask for a shorter tenure.
A copy of the agreement signed, with all terms and conditions notified dispatched to the customer as a soft copy, and hard copies are sent through mail/courier services. Also included is a schedule for repayment of the loan Known as the amortization schedule or table, which reflects the amount paid as a monthly installment.The columns of the schedule include the following:
• What is the total number of EMI for the tenure of the loan?
• The installment.
• The break-up of each installment: ratio of the amount paid as the interest and principal amount.
• The total amount paid as interest or the loan cost.
• The remaining monthly balance of the principal Loan amount.
The initial installments include a greater ratio of interest as the loan amortizes, the amount going toward the principal increases and gradually grows monthly.
So factually, the EMI repaid is not equal the Bank first recovers a significant part of the interest and then the principal amount.
Though generally ignored, much is to be gained by keeping track of the loan repayment and loan amount balance with the help of the schedule.
The EMI, as it is popularly known, is the instrument to repay a loan it is deducted electronically from the Bank account of the loan holder on a designated date every month.
Whatever date the applicant receives the money, the EMI Schedule begins in the consecutive month. However, applicants receiving funds after the 21st of the month will pay the installment after a month.
For example, for a Personal Loan transferred to an applicant’s Bank on the 23rd of February, the EMI is presented to the account on the 1st of April. A gap interest is charged from the 23rd of February till the 6th of March as an overlap.
It is the responsibility of the applicant to ensure that there are enough funds in the account to clear the EMI if the EMI Bounces or is returned unpaid, the same will reflect in the records, with the following repercussions.
• Finance charges as late payment and interest are applied daily until the applicant pays.
• Details of the delayed EMI will always reflect in the repayment account, even if the applicant pays the installment later with the charges.
• The CIBIL history of the applicant will reflect the transactions of the delayed payment downgrading the score.
• Most Banks and financial institutions do not fund further credit to an applicant if there has been an EMI Bounce three months before the application date.
Therefore, keeping a tab on the EMI date to ensure enough balance in the account to pay the installment is paramount. For further tips on how to avoid missing your EMI date, please refer to the following:
A Personal Loan is a finance issued for individual usage for short periods. Preferably, the applicant should pay the EMI over the tenure to gain maximum benefits. A Personal Loan tenure with timely repayments is the best method to build a Credit Score.
Repayment of your loan early in the tenure is not advisable, as the interest factor paid as compared to the principal deducted; however, if there is a need to repay the loan, whether partially or entirely at an earlier date, financers will have a policy for the time and finance charges.
• The minimum EMI paid or the lock-in period ranges from 6 months to a year, and a finance charge ranges from 2% to 5 % of the principal balance for the foreclosure of the loan.
• Partial repayment of up to 25% of the principal loan amount is permitted, the amount adjusted in the tenure, and the installment remains unchanged.
The charges applied for a Personal Loan foreclosure make it advisable to complete the tenure. However,an advantage of repaying a loan is the eligibility for borrowing a more considerable sum in the form of a mortgage or consolidating finances.
Individuals requiring funds for a limited period, expecting to receive finance, and planning to repay the loan, should pay attention to the terms for foreclosure and part payment and choose a financer with a flexible prepayment policy.
With widespread education and technology, there are increasing opportunities for qualified youngsters. Top companies offer enhanced salaries to qualified candidates as a start.
Banks and NBFC are ready to invest in individuals holding high-profile jobs with a promising future the term “Loans” is no longer a taboo today, a salaried individual can start planning finances, buying a home, and establishing a good lifestyle.
Be cautious and remember that borrowing is easy, but organizing finances to ensure timely repayment is critical to a successful financial future.
The need for funds comes without asking: whether in an emergency or as a lifestyle requirement for funding wedding celebrations, a holiday, redecorating your home, or paying credit card bills, making an arrangement to fulfill the shortfall is a priority.
Near and dear ones may not have the resources to help now a feasible option to help solve the need is a “Personal Loan“.
Leading banks such as HDFC Bank, ICICI, AXIS Bank, YES BANK, and NBFCs offer loans for individual needs without any security or collateral as a Personal Loan.
Banks have devised the Personal Loan product as a quick loan making it convenient for eligible applicants to get the loan amount within 72 hours. Processing is done based on the customer profile and document proof.
A note of the Eligibility criteria required for successfully processing a Personal Loan is a good idea.
Most Banks, such as ICICI, HDFC, AXIS, and YES Bank, have similar eligibility criteria with certain variations to suit the target segment and policy. However, the essential key points to be adhered to are as follows.
The minimum age required for processing a Personal Loan is 21 years. The maximum age limit allowed by most leading Banks such as HDFC, ICICI, AXIS, and YES Bank is 60 years at the time of loan closure or till the retirement age, which could extend to up to 62 years.
The Customer needs to provide Proof of retirement age extension with the application for processing; not all lenders entertain the extension of age criteria clause, which the Customer should verify before applying.
The HDFC Bank has introduced a unique scheme for pensioners to repay a Personal Loan till the age of 65 years.
Primary education is the right of every Indian citizen, with education comes progress and the ability to create a stable future.
For candidates who have scored well, excellence is the basis for securing admission to a prestigious institution and further employment with a good package.
Financers also consider a primary education mandatory to secure a Personal loan and also offerwell-qualified individuals graduating from Top institutions, like IIT and IIM, and professionals such as Doctors, Dentists, Nurses, and Teachers discounted interest rates and enhanced loan amounts.
The Applicant’s employment status is a critical factor for issuing a Personal Loan for salaried employees. The Employer’s profile is all-important to ensure the stability of the job and regular salary for the Applicant.
The Applicant must be currently working with a:
• Public Ltd Company
• Private Ltd Company
• PSU
• Government Organization.
Employees of Proprietorship or Partnership companies are not eligible to apply.
Most Banks and NBFCs, such as HDFC, ICICI, AXIS, and YES Bank, have generated a company list the Employer must feature in the list of approved companies and the Company must be registered with the MCA or Ministry for corporate affairs and exist for five years or more.
The Applicant must have an employment history of consistent employment for 12 months or more to be eligible for a Personal Loan, submitting Documented Proof of the Employer and the employment history at the time of application.
The minimum income required to process a Personal Loan is 25,000/- as the monthly net amount transferred to the Applicant’s salary account.
Most Banks consider a salary transfer by ECS mandatory; the traditional way of cheque deposit or salary receipt by cash is not acceptable. In addition, the Employer must regularly transfer the salary on a designated date a delayed salary transfer is negative.
Banks fix the salary criteria according to the profile, the employment category, and the relationship with the Applicant. For example, HDFC Bank allows applications from candidates with a salary of 25k per month and a salary account or employed with a company listed in Category A of the company category list. For others, a wage of ₹ 30k is the minimum required.
Similarly, Banks such as ICICI, YES, and Axis Bank have their list of preferred categories to which they offer a concession in the income criteria.
Applicants working with companies that are not listed or included in a lower category will need to establish an income of 40k per month to apply for a Personal Loan, whereas State/ Central Government personnel and candidates working for Economic Times listed organizations have a salary of 25000/- High-income customers with a salary of 75k are regarded as elite applicants by HDFC Bank and awarded the Golden Edge Personal Loan benefits.
Banks and NBFC have a widespread presence in most cities, with a chain of branches and ATMs compared to smaller towns and rural areas.
A Personal Loan is unsecured therefore, the Bank conducts a residence verification to confirm the KYC Details of the Customer. The current residence, whether rented or self-owned, must be physically verified by the Bank channels having a strong presence in the metro cities, an applicant is easily contactable for confirmation.
Therefore, to be eligible, the residence location of the applicant must be included in the approved list of locations for servicing Personal Loans.
The CIBIL or Credit Bureau of India Ltd records the credit transactions of Individuals and maintains updates. Lenders refer to the CIBIL to obtain a credit score and history for all individuals applying for credit. The minimum score required to process a personal is 720 points and above.
A sound repayment track of credit held reassures the Lender that the Customer will repay the EMI as per schedule. In contrast, a poor repayment track with delays and defaults will negate the eligibility for a Personal Loan.
Applying to a Lender with a previous relationship of on-time repayment will enhance the eligibility for a Loan.
HDFC, ICICI, and YES Bank process Personal Loans for first-time loan seekers candidates without a CIBIL Score who can create a good credit history by maintaining an on-time EMI.
A rejection of a request is disheartening besides, the CIBIL Score of the applicant decreases with every credit inquiry. Therefore, checking out the possibility, or as in Banking terms called Eligibility for a Personal Loan, before applying is always a good idea.
At Yourloandvisors.com, we can help our esteemed customers to confirm their eligibility for a Personal Loan and assist them in applying to the Lender that services them best.
Loans are useful for funding various personal and business expenses. However, it is crucial to consider one’s repayment capacity before applying for a loan. Once a loan is approved and disbursed, the borrower must start repaying the amount from the stipulated date. Most lenders require creditors to repay loans through EMIs. An EMI is the Equated Monthly Instalment that the borrowers pay each month over a fixed period. A person can check a loan EMI Calculator Online to determine how much they must pay the lender. Checking their expected EMI can help them ensure that they can repay the loan without compromising their essential expenses. Let’s discuss how to use the Loan EMI Calculator and how it can help you budget better!
The Loan EMI Calculator is an online tool to calculate your monthly EMI for any type of loan. This tool is programmed to predict your EMI amount and the total repayable sum once you input three crucial values.
If you want to check the repayment requirements for a Personal Loan, you can use a Personal Loan EMI Calculator to compute the amount. You must input three values for the calculator to determine your monthly EMI. These are as follows:
Interest Rate: The lender determines the interest rate based on internal policies. Most banks use the Reserve Bank of India’s (RBI) repo rate as the benchmark to set the interest rate. You must fill in your lender’s interest rate as a percentage value in the EMI Calculator. In India, the interest rates for personal loans vary between 10.5% and 22%. You can check the interest rates from top Indian banks to estimate your interest amount.
Repayment Period: The loan tenure refers to the total time you have for repaying the amount. Personal Loans in India typically have a repayment tenure of one to five years. In some cases, lenders may agree to extend the tenure to six years. You must specify the number of months in your repayment period while entering details in the EMI Calculator.
Loan Amount: The amount of money you want to borrow is a critical consideration while calculating the expected EMI. You should enter this value into the EMI Calculator to determine the instalment and total repayment obligation.
You can check the estimated EMI with different values to make a choice that works for you. Try adjusting each value along the sliding scale to arrive at the expected EMI value that is affordable for you. You should consider your preferred bank’s interest rates to compute the amount.
Let’s assume that you enter the following values into an HDFC EMI Calculator:
● Rate of Interest: 13%
● Repayment Tenure: 48 months
● Loan Amount: 3,00,000
● Monthly EMI: 8048.25
● Interest Amount: 86316
● Total Amount (Principal+Interest): 386316
You can assess these figures to determine if this loan is the right fit for you. The EMI Calculator can help you in the following ways:
● Plan Your EMI Payments: Knowing your expected EMI helps with better budgeting and ensures you do not miss a payment. Defaulting on these instalments can worsen your credit score. Hence, you should plan your EMI payments by checking the calculator before you take the loan.
● Calculate Your Total Cost of Funds: The EMI Calculator tells you how much you must pay the lender. Increasing the repayment tenure will give you a higher EMI but a lower cost of funds. You can use the calculator to estimate these values and make the right decision.
For more help with loans and repayment considerations, check out Your Loan Advisors today!
Banks and non-banking financial companies (NBFCs) provide unsecured loans to individuals to manage urgent expenses. These credit options are called Personal Loans. A Personal Loan can help you pay for medical bills, home renovations, family emergencies, and other expenditures. Borrowers can leverage attractive offers to get favourable loan terms. For example, if you apply for an HDFC Personal Loan, you can make the most of the special benefits and discounts offered by this bank. Let’s explore how to take advantage of offers while applying for a Personal Loan.
Weighing your options carefully can help you make a better decision while getting a loan. These expert tips are excellent for streamlining your options and securing attractive loan terms.
Top banks in India provide special corporate offers for salaried professionals. You can browse the available schemes according to your income level. For example, you can check out Axis Bank Personal Loans Online for salaried applicants. Typically, borrowers who earn more than 35K per month get attractive interest rates. People having an income of 75K or more get additional benefits under the HDFC Golden Edge scheme. If you borrow more than ₹10 Lacs, you can get lower interest rates. You can browse various loan schemes to find attractive offers that suit your needs.
Banks usually offer attractive interest rates to existing customers. If you have a salary account with a bank, applying for a personal loan from the same bank will help you get better offers. For example, if you have an HDFC Bank Salary Account, you may get a discount of 0.10%-0.25% on your interest rate. The final loan terms depend on your actual income and other parameters but on average, account holders get better deals than non-account-holders. People with salary accounts with their lending banks also get discounts on loan processing fees.
If you borrow a large sum above 10 Lacs or 20 Lacs, you may get better interest rates. While you should not borrow more than what you need, comparing the rates can help you plan your loan application better. If you think you may need more money soon, you should account for that in your current loan application to get the best deal.
The above points can help you shortlist the loan products that suit your needs. But how do you make the right choice and finalise the best deal? Consulting an experienced advisor can help you immensely at this stage. A knowledgeable loan advisor can help you compare various loans by considering factors like:
Interest rates and the effective annual percentage rates (APR).
Repayment tenure, pre-closure, and part payment terms.
Balance transfer facilities.
You can contact Your Loan Advisors to learn more about the available options. This team can help you compare the various loans. They can guide you as you Apply For an ICICI Bank Personal Loan or a loan from any other bank. Contact the team today for more information!
Banks and non-banking financial companies (NBFCs) provide unsecured loans to individuals for personal use. These collateral-free loans are called Personal Loans. The lenders evaluate an applicant’s income, creditworthiness, and repayment capacity before approving an unsecured loan.
The borrowers can use Personal Loans for medical expenses, home renovations, and weddings. Most leading banks like Axis, HDFC, ICICI, Kotak, and YES Bank refer to Pre-approved Company Lists that help them process Loan applications.
Employees of Companies Listed for Personal Loans get attractive interest rates and better loan terms. Let’s break down how to check the company-wise eligibility for Personal Loans.
Various banks have created Company Category Lists For Personal Loans. Employees of these approved companies can apply for personal loans under elite schemes with attractive terms. For example, suppose you want to apply for a Personal Loan From HDFC Bank. In that case, your company should feature in the HDFC Bank Company List For Personal Loans.
Banks create lists of reputable companies because it helps them screen applicants based on their quality of employment, job stability, and income level. All these factors contribute to their capacity to repay Personal Loans on time. In addition, approving loan applications from employees of approved companies can help banks reduce their risks while disbursing loans.
You can find online lists of the companies approved by various banks. For example, visiting this link can check HDFC Bank Listed Company List For Personal Loans. Top companies like Accenture, Amazon, Deloitte, KPMG, and Siemens are on this list. In addition, HDFC has an extensive list of companies whose employees get attractive interest rates while applying for loans.
Other banks like Axis, HDFC, ICICI, Kotak, YES Bank, and reputed NBFCs also provide special Personal Loan schemes for employees of top companies.
Banks and NBFCs provide different loan schemes based on their company category lists. They offer the following facilities after considering the eligibility status of an applicant.
Transfer of an existing personal loan from a different bank.
Approved company employees find it easier to get personal loans at favorable rates. However, Banks and NBFCs have a provision for processing Personal Loans for employees of non-listed companies: the policy for such is stringent, and the terms for the loan can differ.
The net salary of the applicant must be above the required benchmark. Applicants drawing a monthly income of 50k and above are preferred.
The present employer must be a limited or a private ltd; Banks will not entertain employees of partnership and proprietorship companies.
The CIBIL Score of the applicant should be 720 points and above.
Special schemes launched for high-income Applicants with a salary of 1 Lakh or more include the HDFC Golden Edge Personal Loan. In addition, eligible applicants are offered enhanced loan amounts with special terms.
The Top 500 Economic times listed companies feature in the company list of all Financers, other companies included are the following:
Major Corporations with a high turnover and good prospects.
Companies whose shares have shown steady growth.
Establishments have business accounts and salary accounts with the Bank.
Government concerns and PSU, s.
Established and secured concerns engaged in production and manufacturing.
Banks and NBFC research employers with increasing profits and promising growth who can pay their employees on schedule. Which minimizes the risk of the EMI bounce due to the salary not being credited on time.
Lenders update their Company category list regularly, delisting Companies engaged in businesses that are risky or have become non-performing—for example, hospitality companies during COVID due to loss of business.
Companies being as per their performance into tiers employees of upper-tier companies are preferred customers and are granted loans easily with lower interest rates than the lower level.
It is prudent to check the company category of your employer before Applying for a Personal Loan. By contacting us at Yourloanadvisors.com, our experienced advisors can advise and guide you according to your profile and employer to apply to the lender who will best fulfill your loan requirements.
A Personal Loan is funding provided for fulfilling individual needs, whether for emergencies, mandatory or lifestyle requirements finance should be available when needed, not when the crisis or celebration is over.
A Personal Loan is touted as one of the fastest and most convenient methods of securing funds, making this fact a reality for you possible if your application is processed without any delays.
Personal Loan providers have streamlined the process of dispersing funds to applicants hassle-free within the shortest time frame precautions taken from the applicant’s end by taking note of the following will ensure quick receipt of funds.
It would seem logical that the Bank with which you have an account will sanction the amount required as a Personal Loan quite readily this is true to some extent, as the Bank handling your money should be the preferred lender.
But having an account may not be sufficient to sanction a Personal Loan, and having a Bank account in the designated Bank is not mandatory to process a Personal Loan.
Though weight age is given to the existing relationship Banks will differ as per the policy norms for issuing a Personal Loan checking the criteria before applying will ensure the smooth processing of the application.
The balance in your account is a witness to your financial dealings; a healthy bank account is one in which sufficient balance is maintained at all times to cover all expenses. Therefore, an applicant’s bank account is studied closely and significantly approves a loan.
Regularity of salary credits and income from other sources, such as rent or interest, should reflect in the account. EMI for existing loans must be cleared timely and the average bank balance for three months should be sufficient to repay the installment of the loan amount applied.
Bouncing an EMI or a cheque returned unpaid is regarded as a default if any such transaction is seen in the last three months banking history the request for the Personal Loan is denied.
Any new credit taken recently loan amount credited in the last three months is reflected in the Bank account is an alert for further sanction.Before sanctioning a new loan amount the lender will like to assess the applicant’s repayment capacity.
A judicious balance of savings and expenditures would be ideal for giving a favorable report. Therefore, taking stock of the Banking details as the above is in order before applying for a Personal Loan will enable a smooth process.
It is wise to know beforehand the loan amount that can be sanctioned to you or what amount you can get. The requirement for funds could be in excess, but the loan amount will be approved according to the eligibility calculation.
The CIBIL Score should be above the required benchmark of 720 points or more if the CIBIL Score has been downgraded due to delayed payments, it is prudent to wait and rectify it.
Your current income and the outgoings, including the mandatory expenses and EMI being paid for existing loans. If the total EMI being paid exceeds the maximum amount an applicant can pay, there is no room to apply for another loan. Check with Yourloanadvisors.com for methods to lower your obligations and create eligibility if additional funds are required.
5% of credit card dues outstanding will be added to the monthly obligations. Therefore, if the spending on credit cards has been high, it is better to clear the dues before processing a loan request.
The Personal Loan being unsecured credit, the lender will ensure the applicant is well placed to repay the loan timely and is easily contactable. Therefore, physical verification will be conducted at the residence and office premises per the documentary proof submitted.
A self-owned or family residence is an advantage an enhanced loan amount,if required, is sanctioned as rent expenses are saved and inspire confidence that the applicant can be reached.
Bachelors living in rented accommodation must provide adequate proof of residence, verification is conducted closely and the landlord can be required to authenticate.
So if the rented accommodation is recent, ensure the landlord and neighbours are known so they can respond positively to inquiries. A negative verification result can lead to the decline of the request.
A stable job with a regular income is essential to sustain and maintain living expenses. Therefore, a Personal Loan applicant with a history of continued successful employment and prospects is a likely candidate, whereas a break in work is viewed with apprehension.
Three months or more job continuity with the current employer and regular salary credits are the bywords for Personal Loan approval.
A Personal Loan is a policy-bound product per the lender criteria the process steps are clearly defined and streamlined to hasten delivery. Any miscommunication or default can delay the request.
The final decision for approval is in the hands of the Banks Underwriter therefore, the applicant’s profile must be clearly defined to inspire confidence and prove the customer’s eligibility.
The pointers given above have been experienced over our years of servicing loans. For example, we have known eligible applications to have been delayed or declined due to minor errors in documentation and lack of clarity in communication.
We hope this will aid Personal Loan seekers in successfully processing their loan requests and receiving funds timely.
A Personal Loan is a simple & effective way of securing finance for Personal needs. Many apprehensions & misunderstandings about the product leave applicants confused. Whether a first-time loan seeker or having faced issues when applying,the following information is provided for our customers to help distinguish Myths from Facts.
Myth- a Personal Loan is a Secure Loan. The applicant needs to secure an asset to obtain funds via a Personal Loan.
Fact- A Personal Loan is an unsecured loan marketed by leading Banks & NBFCs. It is characterized explicitly as unsecure the finance required by the loan seeker is forwarded solely based on the profile, CIBIL SCORE and supporting documents.
The applicant taking the loan does not have to mortgage an asset in the form of property, jewelry, or a fixed deposit to secure funds.
Myth- The rate of interest for a Personal Loan is liable to change at any time during the tenure.
Fact- The rate of Interest for a Personal Loan is fixed on the approval of the requestat the time of disbursal it is applied per the policy of the particular Bank/NBFC providing the loan.
The Personal Loan agreement signed by the applicant clearly states the terms and the interest rate to be charged.
The interest rate charged on the Personal Loan remains constant for the entire tenure of the loan the EMI is calculated according to the repayment tenure from 12 to 72 months and is deducted regularly from the Bank account.
Myth- Acquiring a Personal Loan is a long & tedious process.
Fact- A Personal Loan is a fast & convenient way of securing funds for an urgent financial need. An applicant can secure funds within 72 hours of applying. Following the proper guidelines, providing genuine details, authentic details & having a good credit history are important factors that contribute to the smooth processing of a Personal Loan. With the introduction of online processing for Personal Loans, applicants can now apply digitally and receivefunds in record time.
We at yourloanadvisors.com provide doorstep delivery of Personal Loans to our valuable customers & help them to complete fill their financial needs timely & without any hassle.
Myth – The Rate of Interest for a Personal Loan is very high.
Fact- Personal Loan, unsecure funding, is provided at a higher rate than secure loans such as home loan. However, it is still the cheapest way to secure funds for personal needs.
The interest rate charged for a Personal Loan is from 11% to 18% @ reducing balance, and the fixed rate amounts to 6% to 12% per annum.
Therefore, getting money without any security from the Bank via a Personal Loan is cheaper & easier than borrowing from private agencies or having a mortgage on an asset or jewelry.
Myth –The CIBIL data (records of Credit Bureau of India Ltd) is the proper& final authority on Creditworthiness.
Fact- The CIBIL is a private agency that records all financial data.All major financial institutions, Banks & NBFCs submit details of all credit transactions of their customers to CIBIL.
The CIBIL, in turn, provides the Banks & Credit Institutions with the records of an individual’s credit history whenever required or when an individual applies for financial assistance.
Screening the applicant’s credit history gives the Lending institution the confidence to forward further credit. If the credit history is flawed, the Loan application will get rejected. While some Banks are willing to override a CIBIL issue, other lenders may like to go by the book &deny the Personal Loan request.
Knowing an applicant’s behavior with credit is always advantageous before beginning a credit relationship & accessing the credit records. Still, it is essential to remember that the CIBIL records are not infallible.
Maintaining an accurate record of the working class,with similar names, dates of birth & other similar characteristics, is a considerable challenge. In addition, a financial institution may erroneously upload incorrect data about a client and technical glitches could also mar records.
Lending institutions overlook age-old defaults if the applicant has over come a lousy patch with a loss of employment or illness and is now earning a regular income paid all debts and restructured finances.
We at yourloanadvisors.com help our customers to improve their CIBIL and amend or correct a wrong entry to clear the CIBIL mandate.
Myth–A CIBIL Score or a previous Credit record is mandatory to secure a Personal Loan.
Fact- The Personal Loan mandate for various lending institutions is governed by individual policy. Some Banks & NBFCs provide Personal Loans to individuals with a proven credit record. In contrast, others may consider it a worthy proposition to give Personal Loans to applicants who have never availed of credit before.
Loan seekers can apply to a credit institution that forwards Personal Loans to fresh applicants. However for first-time borrowers, the loan amount may be conservative; it is worth the while to secure a Personal Loan & build a credit history.
Myth- All, the Personal Loan lenders, are similar; a rejection from one means a Blanket rejection.
Fact- No need to despair if a rejection has been issued for a Personal Loan application.
There could be many reasons why a Personal Loan application is declined. For example, the applicant’s profile may not match the policy requirements the current employer may not feature in the approved list of companies or it could be a simple verification issue.
The Personal Loan process is speedy, so there is always room for an error in operation most banks are willing to reassess the decision if the customer requests a relook.
Unless the applicant has been a chronic defaulter in former credit dealings or cannot afford to pay the monthly in installments or the Loan, the need for a Personal Loan can be fulfilled.
Myth- Money needs to be advanced for processing when applying for a Personal Loan.
Fact- No funds are to be advanced when applying for a Personal Loan, and the processing fees or file charges are deducted from the loan amount approved on disbursal of the loan.
The Processing fees are from nil to 2% of the loan amount, per the policy of the lender and loan amount approved.In addition, the applicant is intimated about the charges applicable and other terms on signing the loan agreement. Any ask for funds or when applying for a Personal Loan should be reported as it amounts to fraud.
We at yourloanadvisors.com have a decade of experience helping our esteemed customers to clear doubts. We assist and guide you to the best of our abilities and go to all lengths to ensure your Loan experience is successful and hassle-free.
Taking a loan can be a convenient way to finance urgent personal expenses. In India, a Personal Loan is an unsecured amount an individual can borrow without collateral. Various banks and non-banking financial companies (NBFCs) provide personal loans for travel, medical bills, wedding expenses, and more.
When you apply for a loan, one of the metrics that lenders evaluate is your CIBIL Score. This score indicates your creditworthiness and allows lenders to assess the risks of loaning you the money. Wondering what it means and what is the Minimum personal loan CIBIL Score? This guide will help you decode everything you need to know about CIBIL scores during your loan application.
TransUnion CIBIL is one of the best-known Credit Information Companies in India. It collects individual credit history data and assigns them scores to represent their creditworthiness. A person’s CIBIL Score can range between 300 and 900. A higher credit score means that you are a more reliable borrower, and lenders have to bear a lower risk while lending you money.
The CIBIL Score reflects different aspects of your credit history. It captures details about your repayment track record, credit inquiries, credit utilisation and similar metrics. A good credit score or CIBIL Score for a Personal Loan indicates that you are a financially responsible customer.
The CIBIL Score is a valuable indicator of your reliability as a borrower. When you Apply for a Personal Loan, you need not put up any collateral. In such a situation, the lenders risk not getting repaid if you default on your payments. Hence, they closely examine your CIBIL Score and credit history before granting the loan. However, the CIBIL Score is not the only aspect they evaluate. They also assess the following.
All these records help the lenders evaluate how likely you are to repay the loan on time. If your CIBIL score is high, you may get a loan with an attractive interest rate.
To Apply for a Personal Loan, your CIBIL score needs to be above the minimum benchmark. The threshold for a personal loan eligibility score varies from lender to lender. Many lenders require a minimum CIBIL Score of 750 to approve a personal loan. However, some lenders may provide unsecured loans to individuals with scores of 720-750. So, the bottom line is that the minimum CIBIL score required for personal loans differs for lenders.
Some borrowers are unsure if they can obtain a personal loan without a CIBIL score or you may be a first-time borrower with no established credit record. You can consult experts at Your Loan Advisors to find lenders who may provide unsecured loans without a CIBIL Score or get more details about the credit score needed for a personal loan.
Your employment and income records are other critical factors in Applying for and Processing a Personal Loan. For more information about the required CIBIL score, contact the Your Loan Advisors team today!
A “Top Up” or an extra amount added to an existing loan has become a convenient option: a customer mindset is to get funds quickly from a known source with familiar terms and conditions.
A Top Up Loan is advantageous to the lender and the applicant, as the lender is confident of the repayment and the borrower is satisfied with the services of the finance provider and will like to avail services repeatedly.
The facilities of a Top-up loan cannot be taken for granted, and the existing loan does no ten sure eligibility for a Top Up.
As the process for a Top Up is similar to that of a new all the designated steps will be followed. Complete documentation is to be submitted to process the same. Eligibility for a Top-up Loan is considered as per the following factors:
The applicant’s current salary must be the same or increased. Suppose there is a dip in the pay, the financials will be re-evaluated to determine if the applicant can afford to pay the extra installment with the reduced income and other expenditures.
If the applicant has a pay increase, the EMI capacity will be calculated per the current salary drawn, and the Top Up amount is easily granted.
If the applicant has changed jobs when Applying for a Top Up, the present employer should rank in the approved company list of the Bank if the company has been downgraded or does not feature in the company category list, the request will be viewed as per the profile of the present company.
If the employer now occupies a premier spot, the applicant can be suitable for funds and the required amount.
A primary requirement to avail of a Top Up facility is that the installment of all loans and credit card bills are paid as per schedule.
A customer making timely payments for the current loan is of value to the Bank and will be readily given further credit when required as a Top- Up Loan. In contrast, the lender can be apprehensive about providing an additional amount to a client unable to manage credit taken.
CIBIL Score: As per the norms for a new loan, a request will be made to CIBIL for an updated record. The CIBIL Score of the applicant must be viewed above the required benchmark; the repayment record of credit taken in the form of loans or credit cards from other lenders is also assessed.
The total credit usage of all the existing EMI and credit card dues must be paid timely. Therefore, all EMI is to be paid monthly, and credit card dues will be added to calculate the eligibility for a Top-Up.
The applicant must have enough income to pay the current due and afford the Top Up Loan.
Any recent credit taken will increase the liabilities of the applicant. Therefore, if the applicant has been granted credit recently, the lender will prefer a time interval before giving an additional amount as a Top -Up loan.
A Personal Loan Top Up is allowed by most Banks 3 months after the existing loan has been granted. Eligibility for a mortgage Top Up is calculated based on the current value of the property and the number of installments paid.
In exceptional circumstances, a Top Up Loan is awarded soon after the parent loan if the applicant’s income exceeds the debt ratio by an excess margin or the value of the property and the applicant’s income is more than the loan amount granted initially.
The primary factor for calculating eligibility for a Top Up Loan is the applicant’s current income, which should be steady. With the monthly incoming, the mandatory expenses, obligations installment due, and credit card spending should be easily affordable.
The employment continuity should not be broken in the recent past, and if the applicant is self-employed, the business should be running smoothly with increased turnover and profits.
To sum up, the eligibility for a Top Up Loan will be calculated per the applicant’s current situation and creditworthiness unexpected events like the recent lockdown effect due to COVID created uncertainty.
Faced with the loss of business, some industries, such as travel and hospitality, were severely affected Financers were apprehensive about offering further credit during the tumultuous period.
Those were exceptional times but keeping a safety margin and planning finances well in advance is the mantra to receive a Top -Up Loan when required.
Check your eligibility criteria with us to ensure a seamless process for your Top-Up Loan.
Loans can help individuals and families navigate urgent financial requirements. There are many types of credit instruments available in India. One of the best loan options available to consumers is a Loan Against Property (LAP). LAPs are secured loans that allow borrowers to submit their property assets as collateral to borrow money. If you are planning to Apply For a Loan Against Property in Delhi or some other part of the country, this guide will help you! Let’s break down how to get Loans Against Property in India!
A Loan Against Property is an option that allows you to borrow a certain amount by mortgaging a real estate asset. Retail banking organizations and non-banking financial companies provide loans against residential or commercial property. These secured loans usually have lower interest rates than Personal Loans. The collateral minimizes the lender’s risks, enabling them to offer favourable loan terms at affordable rates.
Here are the salient features of LAPs in India:
• Eligibility: Salaried professionals and self-employed individuals can apply for LAPs in India. Some financiers may also have specific age criteria for these applications.
• Loan Amount: Lenders usually sanction loan amounts ranging from 50 to 75% of the asset’s property value. They also scrutinize the applicant’s income before approving a loan. The loan amount varies between 10 lacs and 40 crores in the Indian market.
• Repayment Tenure: The repayment tenure of LAPs cannot be longer than 15 years. The lenders approve the tenure based on the loan amount, EMI considerations, and the applicant’s repayment capacity.
Applying for LAPs: Here’s What You Need to Know
Applying for a Loan Against Property in Delhi and other cities can be seamless if you know what to do. Here are the crucial details you must know about the application process.
• Property Ownership Details: You can take a loan against a property if the asset is registered in your name. If you apply for a loan against jointly owned property, all other owners must be co-applicants. According to Municipality requirements, an applicant can mortgage a property with an approved sanction plan.
• Property Types: You can get a loan against different property types. These include residential or commercial plots, industrial property, and commercial premises like shops.
• Loan Purpose: Lenders rarely place limitations on the end use of a loan against property. Usually, borrowers take these loans to pay for wedding expenses, business expansions, higher education, medical emergencies, and similar requirements.
You can apply for Loans Against a property by submitting original documents related to property ownership and personal details. A top financial advisory company in India can help you compare the requirements of different financiers to find a loan that suits your needs. You can submit your applications online or offline, depending on your lender’s requirements. The lender will take original documents for verification before approving your loan. If you want a Loan Against Property Services in Noida, Gurgaon, Delhi, or other areas, you can consult the best financial advisors in India for guidance!