Apply for a Personal Loan Online: Things to Know

Personal Loans could be the best way to rescue yourself when you are faced with unforeseen expenditures. No matter what your exigency is, simply apply for a loan online from the comfort of your home and submit the necessary documents. People sometimes get confused with the process of applying for a personal loan online.

There are some factors mentioned below that one needs to keep in mind at the time of applying:

• Decide the loan amount
Always apply for a bank personal loan for the amount you need. If you apply for more amount of personal loans than you need- you will mostly spend it on unnecessary things!

• Decide the loan tenure according to the repayment capacity
While evaluating personal loan applications, lenders always check the repayment capacity by computing a Fixed obligation to income ratio. It is the proportion of your existing income being consumed in debt repayments including credit card bills and loan EMIs. As lenders generally prefer lending to those applicants who are having FOIR up to 40-50%.

• Lookout to find the best lender
There are a plethora of options available when applying for a personal loan online. Many lenders are offering bank personal loans on the online platform. You need to compare amongst them and find the best one to avail of them. To make comparisons easier, you can also make use of the EMI calculator or an aggregate website where you can get the required data to compare.

• Charges and additional fees
Every financial institution is charging a different amount of money in the form of late-prepayment charges or processing fees, etc. It is an extra amount of cash that one needs to pay to the financial institutions when going to apply for a personal loan online. The additional fees vary from one lender to another. So, it is a must to know about them to choose the right lender.

• Your credit score and history
The financial institutions and NBFCs scrutinize your credit score and history to analyze your creditworthiness and offer your interest rates based on that. Before the lender checks your credit history and credit score, make sure you check it. The reason for this is that if you know your credit report, you can make yourself prepared to answer their questions and negotiate the interest rates.

Conclusion
Features like fast loan disbursal with zero restriction on end-use, minimum documentation, and no collateral requirement make personal loans an ideal borrowing option for those who are in urgent need of funds. All required is to keep in mind the above-mentioned factors.

How to apply for Gold Loan online

Today the gold loan is considered as the fastest emerging trend for getting a quick financial fix. You can get a loan of up to 1 Crore, against your gold jewelry. You can avail of an online gold loan whenever you require funds for the education of your children, business expansion, working capital requirement, etc.

Only jewelry form of gold is acceptable when you apply for a gold loan. Any other form of gold such as coins/bars/biscuits or utensils is not acceptable anywhere. The higher is the purity of gold, the higher will be the valuation, attractive gold loan interest rate, and loan amount. The purity of the gold should range between 18-22 karats or above. If the jewelry you are pledging is studded with gems or stones it will not be considered for valuation, only the gold’s value will be considered.

Features and benefits of gold loans online:

• Quick disbursal
• Attractive gold loan interest rates
• Simple documentation
• No EMIs. Repayment at the end of the loan tenure
• Complete safety of your jewelry

Our simple documentation process requires only your Know Your Customer (KYC) details; so that your income proofs don’t affect the sanction process. Our attractive interest rates and flexible repayment options ensure convenience and flexibility. You can also repay the loan at the end of the tenure, without worrying about EMIs. Additionally, your gold jewelry stays completely safe with us, while you go ahead and fulfill your needs.

Here are the steps to apply for a gold loan online:

• The first and foremost step in applying for a gold loan online is checking the gold loan eligibility.
• You should have valid KYC documents which include your address proof and identity proof.
• After that, log on to the website of the lender and start filling the gold loan application. Enter all the personal details like name, date of birth, email address, and contact details. Along with that also upload the required KYC documents.
• After you fill the ‘Basic Details form’, online verification of documents will take place. Post verification of the documents, you get a call from our sales manager, who will explain to you the whole gold loan process.
• If you meet the above eligibility criteria and agreed on the terms and conditions, within 45 minutes the loan manager will visit the gold loan applicant’s place to verify the gold ornaments.
• Post verification of the documents and the gold pledged, your loan amount will get directly disbursed in your bank account of which you have shared details within a few hours by the loan manager.

Bid goodbye to all the financial worries instantly, apply for online gold loan.

How to read your CIBIL Report?

A credit report is a compilation of your credit history. It contains the information regarding what credit products i.e. loans and credit cards you have availed and how timely you repay them.

Anyone can access their credit report from any of the 4 credit bureaus i.e. CIBIL, Equifax, Experian, and CRIF Highmark or you can also download it from a Fintech portal. 

Knowing how to read your CIBIL Report is important because the information mentioned in it is used by the financial institutions and credit card issuers to decide your creditworthiness.

What information is mentioned on your Credit Report?

A credit report consists of several sections with various categories of information. Each credit bureau has its format. However, here is a general compilation of the sections:

A credit report is divided into several parts:

Credit Score

A credit score is a three-digit number that ranges from 300 and 900 depending on your credit behavior. This score shows your creditworthiness. It is calculated using details from the account and the inquiry section of your Credit Report. Your credit score is considered by the financial institutions to know your credit standing before offering you the credit products. If you have a good score, you will be eligible for the best offers along with the lowest interest rate.

Personal & Account Information

This section contains your personal details. You need to check this section very carefully and report the credit bureau in case of any discrepancies. You need to do so because the bureau cannot independently change any information in your report without consulting the financial institutions. The information mentioned in this section is the type of loans you have availed in the past, account numbers, ownership details, important dates, or loan amount.

DPD Information

“Days Past Dues” or “DPD” information in your credit report show the number of days that you have passed after you have made a default while repaying your loan or credit card.

Inquiry Information

Credit inquiries are made when you or another party seeks access to your credit report. Both hard & soft inquiries are made visible to you. But the lenders can only see some of these inquiries. A soft inquiry is the one where your credit score is not affected. It mainly includes the inquiries made by you, a business that wants to offer you some goods or services, and your existing creditor. On the other hand, a hard inquiry is the one that can severely affect your credit score. It is usually made by a prospective creditor, with whom you have applied for credit. A single inquiry will not impact your score by far but too many credit requests can seriously affect your credit health.

Remarks in a credit report

Remarks identify the current state of the accounts that are listed in your credit report. You will find several remarks like settled, written off, post write off settled, willful default, and closed on your credit report and have different meanings. The presence of such remarks on your credit report will hurt your credit score.

Bottom Line

If you know how to read and understand the information present in your credit report. It can help you to improve your credit score. It is important to monitor your credit report regularly to check whether all the information listed in your credit report is accurate or not. You can raise cibil disputes or credit report escalation if you come across any error in your report to get them fixed at the earliest.

Learn about the benefits of checking credit score with FinTech

A credit score is not a static number that remains the same all through the credit history of an individual. It is a dynamic entity that keeps on changes based on your credit activities. To know where your standing on your creditworthiness is, it is a must to check credit score online.

What’s good in checking score with FinTech

As we all know the credit bureau allows you to access a credit report once a year only but with FinTech companies you can get a credit report card as often as you like which is always free of cost either on their portal or through the mobile app. When you go for a free credit score check from a FinTech, you also get in an in-depth analysis of your score in your credit report which helps in identifying the problem areas.

What are the benefits check your credit score with FinTech?

Checking your credit score is the only way available to know how good you are in managing your finances. Some of the main reasons to check your credit score are as follows:

•   Allows you to make your score better
•   Makes you better prepared while approaching your lenders
•   You will get better loan and credit card offers
•   Helps in error identification and get them corrected on time
•   Lessen your hard inquiries
•   Provides your in-depth analysis and expert advice to make your score better

What is the right frequency to check your credit score?

It is good if you check your credit score online at least once in 3-6 months because only when you are in constant touch with your score you will get the best credit report.

How safe is to check credit score or get a credit report online via the FinTech portal or a mobile app?

If you are going for a credit score check frequently, then the best medium to do so is through a fintech website. Many of you keep wondering about how safe it to check credit score online and what impact it will leave in your credit history. But please be assured that it is a perfectly safe way to keep track of your credit activities. It is just a soft inquiry.
All you need to keep in mind that from the website through you are accessing your credit report or score should be authorized by the credit bureau. It is following a system of sound verification and does not any kind of sensitive information such as bank account number and passwords for checking your credit score.

When you are getting a free credit score check with Fintech, you also get to know about pre-approved offers for various credit products based on your creditworthiness. You can compare the offers available in the market and pick the best one for yourself which is only possible when you are keeping a track of your financial activities on a FinTech platform.

How do Online Personal Loans Benefit Us?

When we hear the word Personal Loans, the first thought that strikes are mind is access to instant money which can be used to fulfil our emergency needs. They are used by many individuals for any legal purpose ranging from medical emergencies to home renovation. Taking personal loans online has become fairly common because of its convenience, instant approval, and easy application process. Moreover, personal loans are a type of unsecured loan i.e. we do not have to provide any asset as collateral. Personal loan amount generally ranges from Rs 30,000 to 50 lac with flexible repayment terms.

That said, all the loan applications are not always easily approved. This is because of lack of credit knowledge among individuals i.e. they are not fully aware of the guidelines and application process which leads to rejection of their loan application. Before taking up a loan, it is always advisable to understand what you are getting into by carrying out proper research and checking your credit report from time to time. This would help you to avoid making any mistakes in your loan application process.

Here are a few points you should know before you take a personal loan online:

1) Ideal for emergencies

Personal loans take less time as compared to other loans for the processing and approval process of the application. This makes them ideal for situations when instant cash is required. One reason for the speedy approval is that no asset is taken as collateral and thus the assets do not have to be verified. The whole process right from applying for the loan to the documentation and disbursing the money takes less time as compared to other loans.

2) Lower interest rates

Personal loan interest rates are much lower than most forms of debt especially credit card interest rates. The rate at which you receive the loan is decided by the lender based on your credit profile. A higher credit score means that you would get loans at much lower interest rates and vice versa. Certain other factors such as income level, reputation of the organisation you work at, relationship with the bank and your home ownership determine your interest rates.

3) Used for Debt Consolidation

Taking up a personal loan online can help you to consolidate all your debts. Debt consolidation means combining all your existing debts into one large loan at a much lower interest rate than your existing interest rate. This saves you the hassle of making different payments for all your loans. Holding on to one single loan instead of many provides you with psychological motivation. You can pay off all your debts quickly at a much lower interest rate. Most online lenders do not charge a prepayment fee, so you could pay your loan off early without penalty.

Personal Loans are also used for Balance transfer. In Balance Transfer, the entire unpaid loan amount is transferred to another bank which is offering a lower interest rate. In simple terms, now you just have to pay your EMIs to the bank you’ve transferred your loan to, at the new (and lower) interest rate.

4) Improve Credit Score

Personal Loans are helpful in case you have a lot of payments piled up and want to improve your credit score. You can take a personal loan to pay off your existing debts. Personal loans are harder to obtain than other forms of debts mainly credit cards. That is why, they look so favourable on your credit report as you can build your credit-worthiness by building trust. If a company trusts you enough to give you a personal loan, then it is a good reflection of your ability to pay back your debts and this will help you improve your credit report.

Also, the personal loan money you obtain can be used to pay off all your credit card bills which can in turn improve your credit score. When you pay off your existing credit cards, your overall credit utilisation decreases. If you have the discipline to keep from going into debt again on your credit cards, you will see an improvement in your credit score

Are You and Your Partner Financially Compatible?

Back in the days, while looking for a prospective bride or groom, the elders of the house would go on a hunt to discretely inquire about the social status, financial well-being, and net worth of ‘suitable candidates’ and then match the horoscopes. The elders understood that for a family to flourish, financial well-being was critical.

But in the modern times, where a lot of knots are tied through matrimonial sites and dating applications, people have stopped filtering out prospective bride or groom profiles based on their financial status and compatibility.  Is financial compatibility really that important? Yes. About 25% of Indian respondents (between the age group of 25-40) in a newspaper survey cited that the main reason for their divorce was because of financial issues that one partner or both partners were struggling with.

Whether you are in a long-term relationship or are getting to know each other during the courtship period, talking about financial matters can give you a clear picture of your financial compatibility which would help you to avoid endless fights after tying the knot. Being vocal about financial matters will give you insights into the spending patterns, financial goals and credit history of your partner. Financial compatibility does not mean that you both have to agree on every matter related to money but it is important that both you and your partner should have similar spending patterns.

Here are a few questions you should have the answers to in order to assess your financial compatibility:

What is your partner’s income?

It is important that both you and your partner are aware of each other’s income. Thus it would be easy for you to assess your financial well-being and set your combined financial goals accordingly.

Does your partner have any existing liabilities?

While talking about money matters, it is important to find out the person’s existing liabilities. You should ask yourself if you are ready to take up your partner’s accumulated debt or share the repayment amount as it would help you both to become debt-free quickly. Also, it is also important to know each other’s credit score and credit history as this would ensure you can apply for personal loans (Such as home loans, car loans, etc.) as co-applicants and get them at affordable interest rates.

Interested readers can use the IndiaLends App to check the credit scores for free and can share the link with their spouses to check it as well.

How much are your combined savings and assets worth?

Having some money set aside as savings or owning certain assets can be a good start to a secure future together. If he does not have any money saved up or has not created any assets yet, it might be wise for you to wait for him to settle down first before deciding to take the plunge.

If you or your partner have trouble managing expenses, you can use IndiaLends’ free Expenditure Analysis product to track your monthly expenses and budget them accordingly.

What are your financial goals?

You should always talk to each other about your short-term as well as long-term goals such as, whether he or she wants to live in a rented apartment or wants to purchase a house. This will give you both a clear picture of the life you both desire and whether you are on the same page or not.

Is your partner supporting any family member financially?

It is very important to know if either of you are supporting any family member (dependent) or friend financially or if you want to support them in future. This allows you to set the right expectations for your spouse and avoid clashes in the future.

Sometimes, saving money can be difficult when both you and your partner are heavy spenders. In such a case, you should always keep your spending pattern in check. You can keep a check on your daily expenditure by using the Spend Analysis Feature by downloading the IndiaLends Mobile App here.

Author’s Note: If you want have any questions about this topic, write to us at advisory@indialends.com to connect with one of our credit advisors. Readers who want to know their Credit Score can get their free IndiaLends Credit Score and Analytics Report to check their scores instantly.

Effective Ways to Get Out of Debt

IndiaLends Personal Loan

Having a lot of debts can give sleepless nights to anyone and can become a hindrance towards leading a healthy financial life. Sometimes certain circumstances such as loss of job, recession or a bad accident can create money problems. Other times, debts can pile up because the interest rates that you are currently paying are much higher than the usual interest rates.
Here is an example to illustrate this. You have taken one personal loan and one auto loan at 18% and 14% respectively, and you qualify for a personal loan at 13% p.a. In this case, it makes sense to use the personal loan to pay off your debts completely and repay your personal loan at a much lower interest rate.
By learning how to pay off your debts, you can release a lot of burden and focus on your financial goals without any troubles. Proper guidance and an efficient game plan can help you get debt- free in no time. Here are a few ways by which you can get out of debt:
1) Take up a Personal Loan for Debt
You can take up a personal loan at a lower interest rate to pay off your current loans. Taking up a personal loan for debt will save you from the hassle of making multiple payments on all your loan EMIs. What’s more, the loan can be obtained instantly with minimum documentation and short approval time. Moreover, it is an unsecured loan and thus there is no risk of losing the asset in case we fail to repay it.
2) Opt for Debt Consolidation
You can also opt for debt consolidation to make it easier for you to pay off your loan. Debt consolidation means combining all your small loans into one large loan. The consolidated loan usually has a longer repayment period or lower interest rate or both. This can help you save up some amount every month and is also a more convenient option over making multiple payments on your loan EMIs.
3) Pay off your most expensive debts first
This is a good strategy to get rid of all your debts fast. You should identify your most expensive loan and put all your energy to pay that off first. This would reduce a lot of your burden and you will feel motivated when you see progress. This will also leave you with more liquidity towards the end as you will only be left to pay back your least expensive loan.
4) Transfer your credit card balance
Balance transfer is useful to save up a lot of money. A balance transfer allows you to shift your existing credit card debt to another card which charges a lower interest rate or a longer interest- free period. The process is extremely fast and can be completed within hours.
5) Pay more than the minimum amount
Paying only the minimum amount every month will take you a lot of time to pay back your credit card debts. It is advisable to always pay a little more than the minimum amount so as to get rid of the debts quickly and to avoid being charged high rates of interest.
6) Consider refinancing your mortgage
Getting a new mortgage in place of your original mortgage is another good strategy. This can help you to obtain longer repayment period and lower interest rate. You can also opt for cash out refinancing in order to obtain more money than you actually owe.
The faster you start dealing with your piled up debts, the sooner you will get rid of them. You can choose one or more strategies to pay off all your debts with ease depending upon your situation and needs. Start your debt-free journey today and realize your dreams.