Apply For Personal Loans
Personal Loan In India
While it would be great if we had enough funds available to meet all life’s expenses with no worries, but, as we know things are not same every time. Sometimes we look for quick financial support to keep moving forward and that’s when personal loan comes as a handy, convenient, and affordable solution.
Life can anytime through us into some uncertain conditions and/or situations where we need quick money. Understanding the scenario, there are host of banks and financial institutions offering personal loan at affordable interest rates. This is an ideal loan you can go for during the rough patches of your life.
Personal loan is a type of unsecured loan where the applicant borrows a sum of money and assures to repay the loan amount to the lender along with the computed interest rate. Moreover, no collateral is involved to get the loan, though, the lenders consider other factors to determine creditworthiness of the borrower such as credit score, ongoing loan or credit, income proof, and eligibility.
What is personal loan?
Basically, a personal loan is an unsecured loan that lends money at a fix interest rate which the borrower is required to repay in monthly instalments over a specific tenure. The financial market is flooded with several personal loan schemes as prominent banks and credit unions have came forward to let the borrowers meet their personal monetary needs.
Living a tension-free life is quite a desire for almost every individual, though it doesn’t seem to be possible as unseen crisis can hit anytime. Also, while it might be like a cherry on the cake to live the most modern lifestyle, the enchanting development comes at quite high cost of living that sometimes can even burn a hole in the pocket. The high living cost or unseen emergency can definitely shake your finances. So, is it better to compromise or look for some great financial assistance? Well, compromising doesn’t make sense, of course. Thus, a personal loan is a credit instrument that acts as a financial assistance to avail emergency funds, if and when required. Meanwhile, it apparently seems to be an ideal and convenient handy financial solution, still there are certain factors that needs to be took care of.
What a Personal Loan can be Used for?
Now, the big question is what a personal loan can be used for? While secured loans can be used only for the given purpose, a personal loan can be used for any purpose, from managing wedding expenses to consolidating debt or making a big investment.
Consolidate debt - Being buried under a financial debt is really the most stressful situation and once we reach the age of responsibilities, getting trapped under several loans and credits to meet the needs is quite common and that’s ultimately is a recipe for financial trouble, which is where personal loan comes to the rescue. A personal or unsecured loan might be a good option to consolidate types of debts through a single payment. This can help you get more financially organized and alleviate debt-related stress for keeping track of multiple credit due dates.
Pay medical bills - Medical costs are rising every year and a sudden medical emergency can gulp all your savings in a moment. And the most serious part is, medical emergency often hit us when it is least expected and we are least prepared both mentally and financially. Even if you a health insurance, the policy doesn’t assure of 100% coverage. Therefore, personal loan can provide an alternative and affordable solution to pay off the medical bills and repay the borrowed sum in easy instalments.
Wedding arrangements - Indian weddings are definitely the glitteriest show one can ever expect. As marriage is another milestone in anyone’s life, they undoubtedly have certain dreams and desires for the D-DAY. And of course, dreams don’t come at free of cost. Wedding arrangements is one of the top reasons why people opt for a personal loan to make the big day the most precious and memorable one. Thus, when you hear testimonials about ‘wedding loans’, this is nothing but a personal loan to meet the wedding expenses like caterers, photographer, venue, decoration, etc. Before walking down the aisle, you want to be assure of everything being perfect and on place.
Home renovation - Home is a place where you get slip into your comfy pyjamas and have moments of joy and sorrow with your loved ones. But, what if the place needs for a face-lift? Home renovation doesn’t come at easy costs and requires plenty of financial sources. Hence, personal loan can be a great tool to cover most of the expenses while planning for a home renovation or repairs.
Purchase of consumer goods - Though consumer durable goods have a long-term life, but they too need a replacement or repair from time to time. And, as the technology is advancing, opting for hi-tech consumer goods can actually burn a hole in your savings. Also, we are so used of these goods that its hard to imagine a life without access of such goods. Hence, a personal loan comes handy when it comes to purchasing consumer durable goods such as home/kitchen appliances, furniture, electronics, automobiles, jewellery, and safety equipments.
Business capital - Many of us have certain strategic plan to commence the business, but there are people who give up their strategic ideas due to falling short of the finances. Also to be noted that most of the banks offer business loan only to the existing business firms. Even the government schemes to encourage start up business plans have restricted slot. Thus, it is best to opt for a personal loan instead of business loan to manage finances at initial level of business start up. Moreover, personal loan has an easy process compared to that of business finance.
Few Things that must be Considered before applying for a Personal Loan Online or Offline
Get the Best Deal – The financial segment is flooded with several banks and NBFCs offering personal loan at competitive rates of interest. But, when you take a deeper insight, the scene is different because there are hidden charges incurred in the name of processing fee, pre-payment charges, and so on.
Heart Over Mind – Going with the strong gut feeling might be a great option in life, but, while taking financial decisions, you need to set a budget to go with the decision. Sales talk is designed to break this iron clad resolve.
Choose the Right Lender – Though, each lender claims to offer the loan at competitive interest rates with added benefits, it is thus, your responsibility to choose the right lender who has a good reputation in the market.
Understand Each Terms and Conditions – Most of the times, people skip to thoroughly read and understand the lengthy terms and conditions. This will save you from getting into conflicting condition in the future years.
Don’t Borrow More Than Your Repayment Capacity – Even though you might have a need of higher loan amount, it is not a good deal to borrow personal loan more than your repayment capacity. Applying for a higher loan amount also increases the chances of your application getting rejected.
Check Your Eligibility – There are a bulk of online and offline platforms where you can self check your eligibility criteria for the loan. This will save you from getting multiple loan quotes, which can affect your credit score and lower your creditworthiness.
Wait for 6 Months Before Re-Applying – Try to maintain a gap of at least 6 months before re-applying for a personal loan which was earlier rejected due to low credit score. Work on your score during these months to ensure you get the loan approval easily. Multiple loan applications simultaneously can cause your CIBIL score to drop.
Maintain A Good Credit Utilization Ratio – Credit utilization ratio determines the borrower’s available credit and how much percentage of it is currently being utilized. Thus, it is calculation that represents borrower’s credit habit and creditworthiness to get the loan. A borrower’s credit utilization ratio might vary from time to time; it is suggested to maintain the ratio between 40 to 50%.
Personal Loan Offers in 2019
|Citibank||Low Interest Rate|
|IIFL||Easy Eligibility Checks|
|HDFC Bank||Self Employed Professionals|
|TATA Capital||Flexible Interest Rates|
|Capital First||Top-up Loans|
|Fullerton India||Instant Approvals|
|Standard Chartered Bank||Short Term|
|Kotak Mahindra Bank||Quick Turnaround Time|
|HDB Financial Services||Special Offers|
Best Personal Loan Offers - Comparison Table
|Bank/NBFCs||Interest Rate(pa)||Loan Amount||Processing Fees||Part Payment||Pre-closure Charges||Locking Period||Tenure|
|IDFC First Bank||11.69% - 15.00% (BT rates starts from 11.50%)||1Lakh to 20Lakhs||Up to 2.0% of the loan amount||Up to 40% of loan amount every year||3% on your principal outstanding + GST||3 months||12 to 60 months|
|Bajaj Fiserv||12.00% - 16.00%||1 Lakh to 20 Lakhs||Up to 3.99% of the loan amount||Should be more than 1 EMI (2% + applicable taxes on part-payment amount paid)||4% plus applicable taxes on principal outstanding||1 month||12 to 60 Months|
|HDFC Bank||10.99% - 20.00%||50k to 40Lakhs||Up to 2.50% of the loan amount subject to a minimum of ₹1,999/- & Maximum of ₹25000/-||Up to 25% of Principal Outstanding allowed||
13-24 Months - 4% of Principal Outstanding
25-36 Months - 3% of Principal Outstanding
>36 Months - 2% of Principal Outstanding
>48 months - 0%
|12 Months||12 to 60 months|
|ICICI Bank||11.50% - 16.75%||50k to 25 Lakhs||Up to 2.25% per annum of loan amount plus GST||Not available||5% per annum of principal outstanding plus GST||6 months||12 to 60 Months|
|Yes Bank||10.75% - 16.99%||1Lakh to 25Lakhs||Up to 2.50% of the loan amount subject to a minimum of ₹999/- plus taxes||
• 20% Principal Outstanding for 12 – 24 months
• 20% Principle Outstanding for 25 – 36 Months
• 25% Principal Outstanding for 37 – 48 Months
• 25% Principal Outstanding for 49 – 60 Months
1% plus applicable taxes on part payment amount paid
13 – 24 months - 4% of principal outstanding
25 – 36 months - 3% of principal outstanding
37 – 48 months - 2% of principal outstanding
>48 Months - Nil
|12 months||12 to 60 Months|
|Kotak Bank||11.00% - 24.00%||1Lakh to 30Lakhs||Up to 2.5% of the loan amount + GST and other applicable statutory levies||-||5% of the outstanding amount + GST on principal outstanding||12 months||12 to 48 Months|
|TATA Capital||11.75%-19.00%||75k to 20Lakhs||From ₹999/- Up to 2.0% of the loan amount and applicable Service Tax||
Up to 25% of the principal outstanding (2% of the amount paid + GST)
*Maximum of 50% of the principal outstanding permissible
>6 months - 4% of principal outstanding
>12 months - NIL
BT - 5% of the principal outstanding
|6 Months||12 to 72 Months|
|IndusInd Bank||11.49% - 20.00%||1Lakh to 20Lakhs||Up to 2.50% of the loan amount plus tax||-||
Salaried: 4% of the principal outstanding after repayment of 12 EMIs.
Self Employed: 4% of the principal outstanding after repayment of 6 EMIs
|1 Year||12 to 60 Months|
|RBL Bank||14.00% - 20.00%||1Lakh to 20Lakhs||1.5% of the loan amount (Non Refundable fee of Rs 7500 Upfront, Rest at the time of disbursal)||NIL||NIL||12 months||12 to 60 Months|
|Fullerton||12% - 25%||65k to 20Lakhs||3% - 6% of the loan amount plus GST||
Within 7 months to 17 months - 7%
Within 18 months to 23 months - 5%
Within 24 months to 35 months - 3%
After 36 months - NIL
|6 Months||12 to 60 Months|
|IIFL||12.99% - 20.00%||1Lakh to 20Lakhs||Up to 2% of the loan amount plus GST||-||
Up to 4% of the Principal Outstanding
>12 Months - NIL
|6 Months||12 to 60 Months|
Tips to avail Best Personal Loan Deal
Everyone wants to avail ‘get more and pay less’ schemes and there is nothing wrong about it as it’s a general human tendency. As the market is flooded with plenty of loan or credit options and every lender claiming to offer the best deal; there are certain advices to be followed at the borrower’s end. So, let’s check out the best ways to zero down the best personal loan and save plenty of pennies as interest.
Check credit score – Though most overlook this factor, having self-analysis of the credit score has its own benefits. If the applicant has lower credit score, the lender would offer loan or credit at comparatively higher interest rates; while having a good score could help you negotiate the best interest rate. Therefore, check your CIBIL score first before proceeding with the loan application.
Calculate your needs – Before submitting the loan application, know your needs and analyze exactly how much money you are actually required. It’s better to apply for a loan amount that you can afford to repay along with the interest. Also, before approving the application, the lender always check for the applicant’s repayment capacity, and if they found any risk of default payment, the application is likely to get rejected.
Compare online – The digital era has given a lot of freedom to every individual and thus, before zeroing on the personal loan scheme, it is advised to compare the schemes online and get the best scheme at affordable interest rates. You can check and compare the personal loan plans at ApplyKaroo.
Check required documents – Though personal loan has an easy documentation process, it is important to ensure that the required documents are readily available in order to avoid last moment rejection of the application.
Comparison Table - All Banks Personal Loan Interest Rates in 2019
|Banks||Personal Loan Interest Rates||Processing Fee||Foreclosure Charges||Late Payment Fees|
|Andhra Bank||11.6% p.a||Up to Rs.2000||Nil||As per the lender|
|Aditya Birla Capital||11% p.a||1%||3%||24%|
|Axis Bank||15.75% p.a||Up to 2%||Nil||2% on Overdue EMI|
|Bank of Baroda (BoB)||11.60% p.a||Up to 2% (Min. Rs.1000 & Max. Rs.10,000)||NA||2% on Overdue Amount|
|Bajaj Finserv||12.99% p.a||Up to 3.99%||4% of the outstanding principal||2% of the EMI amount|
|Bank of Maharashtra||12.7% p.a||1% (Min. Rs.1000)||As per the lender||As per the lender|
|Bank of India||12.90% p.a||Up to 2%||NA||As Per Bank|
|Central Bank of India (CBI)||11.55% p.a||Rs. 500||As per the lender||As per the lender|
|City Union Bank||12% p.a||1.25%||As per the lender||As per the lender|
|Corporation Bank||12.90% p.a||1.50% (Min. Rs.500)||Nil||As per the lender|
|Capital First||12% p.a||Up to 1.5%||5%||2% of Unpaid EMI|
|Citibank||10.99% p.a.||0.25% - 3.00%||Up to 4%||Nil|
|Dhanalaxmi Bank||11% p.a.||Up to 2.5% (Min Rs.1250)||2%||36% p.a|
|Federal Bank||10% p.a||0.5% (Min. Rs.500)||2% of the outstanding loan amount||As per the lender|
|Fullerton India||12.49% p.a||Up to 6%||Up to 7%||Determined by Company|
|HDFC Bank||11.25% p.a||0.99% - 2.50% (min. Rs. 1,999 & Max. Rs. 25000)||Up to 4%||2% per month on EMI/Overdue Amount|
|HSBC Bank||10.75% p.a.||Up to 1%||As per the lender||3.75%|
|HDB Financial Services (HDBFS)||14.99% p.a||Up to 2%||2% - 4%||3% on Overdue EMI|
|ICICI Bank||11.25% p.a||0.75% - 2.25% (Min. Rs. 999)||5%||24%|
|IndusInd Bank||11.00% p.a||Zero Processing Fee||4%||Rs. 150|
|InCred||16% p.a||2% to 5%||As Per Lender||NA|
|Indian Overseas Bank||11.90% p.a||0.40% onwards||As per the lender||As per the lender|
|IDFC Bank||12% p.a||Up to 1.5%||5%||2%|
|India Infoline Finance Limited (IIFL)||13.49% p.a||Up to 2%||Up to 6%||2%|
|Industrial Development Bank of India (IDBI) Bank||12.00% p.a||1%||2% of the outstanding amount||As per the lender|
|J&K Bank||12% p.a||Nil||As per the lender||As per the lender|
|Kotak Mahindra Bank||10.99% p.a||Up to 2.5%||5%||3%|
|Karnataka Bank||13.15% p.a||0.5%||As per the lender||As per the lender|
|Karur Vysya Bank||12% p.a||up to 1% (Min. Rs.100)||As per the lender||As per the lender|
|Nainital Bank||11.95% p.a||As per the lender||As per the lender||As per the lender|
|OBC Bank||11% p.a||1%||Nil||2% on Overdue Amount|
|Punjab National Bank (PNB)||12% p.a||Up to 1.8% (Min. Rs.270)||2%||As per the lender|
|RBL Bank||14.5% p.a.||Up to 3%||As per the lender||As per the lender|
|SBI Personal Loan||12.00% p.a||1% of Loan amount + Taxes||3% on Prepaid Amount||2% on Overdue Amount|
|South Indian Bank||11.70% p.a||Up to 2%||Up to 4%||As per the lender|
|Standard Chartered||10.89% p.a||Up to 3%||2% - 5%||INR 495|
|Tata Capital||11.75% p.a||Zero Processing Fee||4.5%||NA|
|Ujjivan Small Finance Bank||16.5% p.a||Up to 2% (Min. Rs.2000)||Nil||2% on Overdue EMI|
|Vijaya Bank||12.75% p.a||0.75%||As per the lender||As per the lender|
|Yes Bank||10.75% p.a.||0.99% - 2.50% (Min. Rs. 999)||0 – 4%||24%|
Personal loan for defence personnel
Defence personnels truly deserves the respect and honour for their job done. From serving their lives to the nation to protecting us every day and every second, they hardly live for themselves. However, just like the civilians, defence personnels too have their own personal responsibilities towards the home and family. Despite their devotion towards the nation, their pay is not much to the mark. And as they are not always available for their families, certain financial responsibilities keep hovering around their domestic life. Going with this, several banks and financial institutions have introduced special personal loan for defence personnel schemes just as a gesture of respect and honour.
Special personal loan schemes are specifically designed for the army and defence personnels to suit their financial requirements. Moreover, there are government loan schemes aligned to the credit products which ensure smooth credit flow to this section. The funding allows them to have a balanced lifestyle. So, let’s see what’s in the box for the defence personnels in regards to the credit products.
Who is eligible for the defence loan?
Personal loans are gaining quite popularity among the masses, but the question remains – who is eligible or who can apply for personal loan? So, here’s the answer to it. Just scroll down!
• Working Defence Personnel with at least 1 year of service
• Paramilitary forces like BSF, CRPF, Coastal Guards, ITBP, CISF, and Assam/ J&K Rifles
• Monthly income of Rs.3 lakh for commissioned officers and Rs.2.50 lakh and Rs.1.50 lakhs for junior commissioned officers and non-commissioned officers, respectively.
What formalities are required?
To complete any loan application, there are certain formalities required and this even works for personal loan for defence personnel. So, in case you are a defence, army, or paramilitary employee seeking for a personal loan, you need to complete the following formalities.
• Duly fill the application form attached with two passport-size photographs
• Submit a copy of identity proof (official identity card signed by their respective department authority and Aadhaar card/passport/ voter ID)
• Submit a proof of income (bank statement for last 6 or 3 months)
• Present the proof of address (electricity bill/ telephone bill/ employee identity card by the concerned department)
Once the application is submitted, the loan amount is disbursed in less than 4 hours. Hence, keep your worries aside and be a real-life hero both for the family and the nation as well.
No credit check loans for poor financial history
In today’s era, there is hardly anyone who hadn’t borrowed a loan (not even once) or doesn’t access a credit card. Be it a loan or a credit card, both stands as a saviour during the rough patch of life. Of course, emergencies never come with an invitation and can be expected at the most unexpected time. Such situations appeals to borrow a loan from the potential lenders. However, there is one thing that the lenders consider while evaluating the loan application and that is the applicant’s credit score. But, if the loan is rejected, it leaves a mark on the user’s credit report. So is there any other option to look for?
Well, to this, no credit check loans are best where the lender determines the applicant’s creditworthiness without conducting a hard credit check or hard inquiry. This is specifically helpful for those who are concerned about their credit standing or whose credit score is constantly digging down.
We have heard many times that lenders conduct a credit check to the applicant’s borrowing profile and those having a good history and an excellent repayment track are counted eligible for the loan approval. But, the question here is what about those having poor credit score?
Well, to such applicants, no credit check loans are best, especially when you’re in an urgent need of funds. So, if you’re looking for such a credit option, find a reliable lender offering online loan at flexible terms and lower interest rates to ensure minimum outflow of cash every month.
Benefits of no credit check loans:
No hard inquiry – Hard inquiries happen when a lender checks for the applicant’s credit profile leaving a mark on the credit report, whereas a soft inquiry is simply looking for information without affecting the credit score. However, in case of no credit check, there is no hard inquiry raised by the lender making an option quite convenient.
Quick process – As there is no hard inquiry happening, loan is approved and disbursed within no time, subject to fulfilling the eligibility criteria and qualifying paperwork.
Short-term financial solution – A no credit check loan can definitely bridge the financial gap and help you meet the short-term financial needs. This is considerably helpful in situations like medical emergencies, payment of utility bills, overdue salary, etc.
No restrictions – The best part is there is no restriction on the end use of the sanctioned loan amount. However, experts suggest not to opt for such loans to fulfil a lifestyle desire like going on a vacation trip or buying a smartphone.
Hence, if you are in need of urgent finance, browse online to find the reliable lender.
Top up personal loan
Often in life, it’s common to face one or more financial obligation at a time. At such times, personal loan truly comes as a saviour to meet the necessary fund requirement. Major benefit that comes with personal loan is the fact that the approved funds can be utilized for any given purpose. But, what if the sanctioned funds are not enough to keep going with balanced financial management? Well, to this the answer is top up personal loan.
Several mainstream banks and FinTech companies have introduced the idea of top up loan to ensure extended financial support through an easy, convenient, and hassle-free process. However, top up loan is only offered to the existing personal loan borrowers having a good repayment track record with the bank or lender.
Personal loan top up comes handy in case of an unforeseen financial emergency, especially when you already have an active personal loan account. Now that you’re clear with the concept of top up loan, let’s move ahead to take a closer look at the loan agreement and related terms.
What is top up personal loan agreement?
Although, the lender doesn’t ask for additional paperwork and other formalities, but there is a loan agreement signed by both the lender and the borrower to agree on the terms and conditions of the loan. So, before signing on the dotted lines, let’s see what’s on the agreement and what each clause specifies regarding the loan term.
Loan details – The agreement includes the loan details such as existing loan amount, outstanding amount, existing interest rate, top up loan amount, and tenure. In case of any confusion, ask the bank representative to make it clear.
Legal action – In case of any default payment, the lender has the right to take required legal action against the borrower or seize the security pledged against the loan to cover the outstanding amount.
Free look period – Some lenders may offer free look period, so that in case the borrower is not satisfied with the said terms, then he/she can request to cancel the loan within two days of disbursement.
Pre-payment – Though different lenders can have different foreclosure policies, it is essential to look what your lender has to offer. Check if there is any pre-payment charge incurred or is there any lock-in period.
Disclaimer – The borrower agrees to the agreement terms and that the KYC details submitted are true to their knowledge. Once the borrower signs the agreement, he/she cannot reverse the action.
Hence, it is utterly significant to read the agreement carefully and understand each and every clause mentioned on it.
Pre-approved Personal Loan
In the digitization era, people are getting more and more aware and are looking for handy solutions to handle their finances well. Notably, personal loan is no more considered a taboo in the society; in fact, a broader segment has an active personal loan accounts. However, as it is an unsecured loan, the application is processed based on the applicant’s credit history and credit score. But, there are scenarios when an individual receives an email or call from a bank offering pre-approved personal loan, which means an individual is on good books of a bank and have a good credit standing as well.
What is pre-approved personal loan?
Pre-approved loan is offered by banks to its existing borrowers having a clear repayment record. In some cases, a loan is offered to customers with no credit history based on certain parameters like income, savings history, and relationship with the bank. As the loan is pre-approved, it is often offered at lower interest rates and at flexible terms.
How to check pre-approved loan offers?
Lenders are very much interest in potential borrowers’ profile and if a bank is willing to offer you personal loan, then the bank will notify of the pre-approved offers via an email, SMS, or call. Sometimes, pre-approved loan offers can also be checked through netbanking or mobile banking.
Reasons why pre-approved personal loan offers are best:
Quick processing – As the loan is offered by the bank itself, the application is processed quickly with the applicant’s consent. The process eliminates the need to check applicant’s financial standing as the lender is already aware of their credit rating. Hence, minimum documentation is required to process the application; plus, the loan is disbursed within minutes, which could be really helpful in emergency situation.
Negotiation power – Since the banks are initially willing to lend the loan, and not the borrower who have applied for a loan, the negotiation power stays with the borrower. The opportunity can be used to negotiate for more flexible terms and better interest rates along with other terms and conditions.
Lower interest rates – Pre-approved personal loans are offered at comparatively lower interest rates with an objective to lure the customers. This is also because the lenders have checked the applicant’s credit profile in advance and thus, are confident of no risk involved in offering loan at lower interest rates.
Avail online – Another advantage of pre approved loan offers is that they can be availed instantly online. The entire process can be done from the comfort of your home or office at just a few clicks. In fact, the documentation process is done online and you don’t have to visit a branch for any document formality.
Personal Loan Balance Transfer
It’s no surprise to get into financial crisis as everyone go through the rough patch at some point of life. And, this can be said as one of the reasons why personal loan is gaining quite popularity among the netizens. Personal loan can be helpful in meeting various financial emergencies such as home repair, medical expenses, debt consolidation, wedding arrangements, education fees, and so on.
Though, with the concept of personal loan emerged the idea of balance transfer, which is considered as the most practical solution to save money and payable interest. Basically, personal loan balance transfer is a tool to consolidate outstanding debts at comparatively lower interest rates. However, some people confuse themselves between debt consolidation and balance transfer. So, to clear the air, debt consolidation is used for paying off types of loan or credit accounts, while balance transfer only works to pay off the outstanding personal loan balance.
How to get a personal loan balance transfer?
Well, the process of balance transfer is no hard science and is quite easy and hassle-free. The process works much similar to that of refinancing a mortgage. All you need to do is check the eligibility and then apply for a balance transfer with the particular bank or financial institution you wish to switch your loan account to.
A guide to balance transfer:
Before you grab the opportunity to switch your loan account to another bank or financial institution, there are certain things to be kept in mind. These are to ensure a right decision has been made towards financial molding.
Get your credit report – Whenever you decide to took a long-term financial decision, always remember to get your credit report beforehand to know your current credit standing. Your credit report acts as a guiding tool towards your financial decisions.
Research and compare – Have you ever booked a hotel without proper research and price compare? Absolutely no. Similarly, it is significant to research the banking sector, compare the interest rates, fees and charges, and eligibility criteria before applying for personal loan balance transfer. Always look for the options that suit best to your pockets.
Calculate refinancing cost – Before you seal the deal, calculate the refinancing cost. This is because several banks and lending institutions levy certain refinancing fees and charges that could add up to your debt, instead of dragging it down. Calculating the cost of personal loan balance transfer could help you figure out whether you’re making a saver deal or simply adding fuel to your already outstanding debts.
Hence, balance transfer can definitely be a money-saver deal, but only if done with precise care and understanding. Opting for a balance transfer at higher interest rates will take you nowhere. So, get the strategies shaped right.
Personal Loan for Self Employed with No Income Proof
As we know personal loan is an unsecured loan that comes handy at times of financial emergencies. The past has been a witness of how personal loan have fertilized both the lenders and borrowers in terms of financial growth. The unprecedented popularity and demand can be easily attributed to their quick availability and to the fact that there is no restriction on the end usage of the funds. Another aspect of such loans is that they are unsecured and don’t involve any collateral or security against it. However, this raises a query – Can personal loan for self employed with no income proof be availed? So, the answer is ‘YES’.Personal loan for self-employed individuals:
Emergencies are never concerned whether you’re salaried or self-employed. In simple words, anyone can get into the spiral of unexpected emergencies, leaving their finances drained out. Therefore, keeping this in mind, several banks and financial institutions offer personal loan to those who own the unincorporated business.
If a self-employed individual carries an income proof, it’s well and good, but, in case of not having a valid income proof, lending institutions could imply their certain harden rules, though leaving the loan disbursement unaffected. However, harden rules doesn’t mean that it might be difficult to avail personal loan for self-employed with no income proof, and the fact is that it just involves a few additional formalities to approve loan application. These may include:
Form 16 – In case, you don’t have the income tax return statements or salary slips available, then the duly filled form 16 can be submitted along with the personal loan application.
Alternate income proof – If a self-employed individual doesn’t have any valid income proof, then the applicant is required to submit alternate source of income such as housing rent income, bank balance, spouse or parent’s income, etc. For more details, applicants can get in touch with their respective banks.
Submit collateral – Though personal loan is an unsecured loan and doesn’t involve any collateral or security against it, but if the applicant doesn’t have any proof of income, the bank may decide to disburse the loan following the submission of collateral security against the loan.
Sign a guarantor – One can also sign a guarantor to complete the personal loan application. The lender will be rest assured of timely repayments as the guarantor will be submit his or her income proof and pledge to repay the loan in case of any default.
Bank relationship – If an applicant is an existing customer of the respective bank, then the possibility is that the bank won’t ask for any income proof. In fact, the bank would provide pre-approved personal loan offers to the existing customers.
So, this is how personal loan for self-employed with no income proof can be availed.
Debt consolidation loan
Every individual goes through a rough patch of life at some point of time or other. Having a bad time, people usually borrow loans and credits to bridge the financial gap, but it ultimately becomes even more stressful. Keeping a track of multiple EMIs and due dates every month is not at all easy, while skipping even a single EMI could trigger hefty penalties. So, is there any solution to get out of the situation? Definitely YES.
Debt consolidation loan is a great financial instrument to pay-off existing debts to clear short-term, high interest bearing loans and credit cards. As debt is paid off quicker, it saves you from paying extra interest and relieves stress as well.
Apart from this, there are several advantages to opt for debt consolidation loan such as easy processing, fast approvals, lower interest rates, lower debt to income ratio, flexible tenures,and no prepayment charges.
So, if you prefer opting for a debt consolidation loan, follow certain tips to avoid getting into a debt trap further.
Timely payments – In order to avoid penalties and late payment charges, ensure to make timely payments. Enable auto-debit option to avoid skipping any due dates.
Avoid credit card usage – Ignore swiping the credit cards for unnecessary expenses as this will only lead to financial stress.
Don’t carry balances – Avoid carrying outstanding balances to next month or so except in certain emergency cases.
Avoid unnecessary loans and credits – Except debt consolidation loan, don’t borrow unnecessary loans and credits as it is not going to ease down your burden.
Get a follow through – Most importantly, stick to your budget and get a follow through each month to know you’re going well with your set budget and using your credits wisely.
Personal loan definitely acts as a saviour at times of financial crisis and emergencies, but it is completely noxious to apply for an unsecured loan for unnecessary expenses such as organizing party, going on vacation trips, etc. However, these expenses can be real fun, but it does make sense only if you have enough money in your bank account.