A loan guarantor can be a family person, friend or colleague who is legally liable to pay off the outstanding loan amount in case if the primary borrower is unable to repay it. Initially, it seems very simple that it’s just a matter of doing signature only but there is lot more to it. If the primary applicant does the timely repayments then there is nothing to worry about but if he starts skipping EMIs then lender can reach out to the guarantor and ask him to pay the outstanding amount. If both the borrower and guarantor fail to Repay the loan then lender can take legal actions against both the borrower and guarantor too. In this article, we have mentioned few things to keep in mind “Being a Loan Guarantor“ that one should not take lightly.

Impact on your Credit Score: When you sign as a guarantor for someone else and the loan is defaulted, it negatively impacts the credit report of guarantor. However, if the applicant is prompt and repay the loan in timely manner then there will be a good impact on both the borrower’s and guarantor’s credit score.

Impact on your assets: In case of default, if the primary borrower is able to repay the loan then lender will initially try to liquidate the borrower’s collateral to recover money. If the borrower denies or escapes out then lender may ask you to pay off the outstanding amount. If you are unable to pay off then lender can seize and liquidate any of your personal asset such as land, property, etc. to recover the loan money.

Impact on the eligibility to get credit: If you are a guarantor for any loan then it will be counted on your open lines of credit, therefore, your personal eligibility will be hampered but if there is default then your credit score will take a hit too. In that case, if you want to “Apply For Any Loan“ then you may face difficulty due to poor credit rating.

Read the agreement clauses carefully: You must always be careful being a loan guarantor with the clauses in loan agreement that what will happen to the obligations of a guarantor in case of default. For instance, in case where the primary applicant dies or partners get separated after divorce, in these circumstances, loan should not be passes onto heirs.

Track the repayments yourself: Always keeps an eye on the repayments regarding the loan for which you have signed up as guarantor. A single default in monthly installments can be reflected in your credit report too, so be attentive and take an regular update regarding the loan repayments.

After reading all this, it is important for you not to take the role of guarantor lightly and be sure and keep these things in mind before signing up the agreement because you cannot back out later till there can be a suitable replacement and the primary applicant should agrees to do so.

There are many reasons why people want to take out a personal loan, but finding the correct place to go to can be quite difficult. If you have been looking for a place to get a “Personal Loan In Chandigarh“ then your work has been made easy as now you can apply for a personal loan online without any hassle.

What eligibility criteria I have to meet apply for a personal loan?

The eligibility criteria will differ from company to company. Still, these are some of the basic criteria that must be fulfilled so that you can stand a chance to get the personal loan that you are looking for. You have to keep in mind that the eligibility criteria shall be different for salaried and self-employed individuals. Some of the most common criteria are as follows:

• For a salaried person, the age should be between 23 years to 60 years while self-employed individuals must be between 23 years to 55 years.
• The salaried person should make at least 20000 rupees per month while the self-employed person must make 25000 rupees in profit for a month.
• Your credit score must be above 750.
• The minimum loan amount that you will be able to collect will be around 100000, and the maximum will be 25 to 30 lacs.

Different types of personal loans:

People take personal loans for a lot of reasons, and according to the reasons, the kind of personal loan will be given to you shall be decided. Some of the most common reasons why people take out personal loans are-

• Weddings
• Vacations
• Festivals
• Renovation of home


Documents to keep ready before you apply for the loan

Without these documents, you shall not be able to apply for your loan. Keep them in hand while you “Apply For Loan Online“. These documents include:

• Identity proof- PAN card, voter ID card, passport, Driving license, etc.
• Residential proof- Utility bills or passport.
• Proof of income- For a salaried individual you may have to produce your bank statement of the previous two years, and the self-employed person shall have to produce an audited financial statement of the past two years.

Things to keep in mind while finalizing your decision to take out a loan:

• Make sure that you are doing proper research about the company from which you will take out your loan.
• Many people tend to ignore what is written in the fine print; that can be quite a hassle. Read every single line carefully. If you any problem understands any term make sure to get the advice of a professional.
• While repaying make out a clear cut plan to repay the loan. Make sure that that you can repay the amount without any hassle. This will make sure that credit rating is always high, and you never face a problem getting a loan in the future.

The best part about applying online is that you do not have to form long lines or go to any office to get your documents verified. Gets a personal loan sitting at your home today.

Nowadays loans are the survival tool for many individuals as they get you the money at a time of emergency in a hassle free manner. It gives you the benefit of borrowing money with pocket friendly and “Affordable Rate Of Interest“ rather than asking family or friends for monetary help. Another advantage is repayment options where you are in favor of repaying the loan quantum as long as per choice in easy monthly installments known as EMI. One should know about the basic rules to keep in mind before applying a loan to make the loan journey more comfortable.

Affordable EMI of loan: A smart borrower never bites off more than he/she can chew comfortably. So one should take care that loan EMI should never burn a hole in your pocket. Our loan EMI should not exceed from 30% of your total monthly income. If loan to income ratio is in limit, it is always acceptable to lender. If you are unable to maintain the EMIs then it will surely give you a financial burden and mental stress and you will not be enable to focus on other financial goals.

Compare each and everything: Either it is a basic product or any other financial products, we all get active in terms of bargaining and finding the best deal available in market. There are number of banks and NBFCs offering different kind of financial services at different interest rates. The rate of financial product varies from one lender to other. Hence, it is important to compare the lenders and what benefits they are offering.

Do the calculation: The thought of borrowing more money than you need is tempting itself. It might seem to be a smart option but it will generate a burden for rest of the life. Though many of lenders offer money up to higher limits but we should not jump at this thought. It is always advisable to “Apply For a Loan“ and borrow the money equivalent to your requirement and can be easily repaid. Therefore, calculate your finances and then borrow accordingly.

Short tenure: The EMI is lower in the case if borrower goes for a long term loan and can enjoy the tax breaks but the longer tenure ends up in paying more on interest, however, tax benefits brings the effective cost of loan down. Availing a short term loan may not always be possible for everyone because in this EMI is always high. But having sufficient income and benefits from bonuses and incentives, it is the best option to repay your loan in short tenure with increasing EMI.

Check terms and conditions carefully: When you avail a loan, you have to sign a loan agreement consists of terms and conditions regarding the loan and many legal clauses about that particular financial tool. In case you default on loan, lenders have the full authority to take any appropriate action against the borrower but under those terms and conditions.

Do you want to expand your business or want to buy a car, and then the loan is ideal for you. Some people thought borrowing loans is a burden, but if you think technically, you will find it is not! The loan is not your burden because it helps to fulfil your dream instantly, and you can pay EMI later. Suppose, if you want to expand your business, then you can apply for a business loan now; once you will get it, you will expand it immediately, which will help you to get ROI within a certain time. And with the low rate of interest, later you can repay the amount easily.

How To Apply For A Loan?

In India, mainly two types of available loan one are a personal loan and another is a business loan. Now, there are different terms and conditions available for loans as per government rules and regulations. If you want to apply for a loan, you can visit a government bank or private bank or any financial service company. The government sector has set a fixed rate of interest for different types of loans, whereas the private sector offers an attractive rate of interest. You can apply for a loan online or offline both. Online is the best option because it saves you money.

How To Find The Best Loan Service, The Provider?

If you are thinking about “How to Get a Personal Loan“! This article is just for you. You are getting a personal loan now a day very simple. You have to check bank or company, their authentication, their license, and then check your criteria and if match, and then proceed. You have to check the website, always choose a concern or financial service provider or bank properly. Check their authentication, license, and customer reviews regarding the loan. After that, check their website and visit their loan application form. Once you visit, you have to put all the basic information related to your job, salary, you identify proof, etc. and need to submit.

Follow Simple Process

You have to check “Personal Loan Eligibility“ before apply. Once you check your eligibility, you can fill up their online form and submit. Every bank or company has its eligibility. You can apply for a loan if you earn a monthly minimum of 20,000 to 25,000 per month. The more you earn monthly, the more you will be able to get approval easily. Another important factor is the credit score. They will also check your credit score before you apply. If you have a good credit score, you will get a loan very easily.

Documents You Need For A Loan

You have to put some documents for taking a loan. During application, you need to submit your identity proof, like Aadhar card, voter card, pan card, and your two passport size picture and your salary slip, bank statement, etc. Once you submit your documents online or offline, their loan officer will verify the documents, and if they approve, you will get a loan amount easily at your bank within 2-3 business days.

“Online Loans from ShubhBank“ can help you to come over those emergency situations where money becomes the prime necessity as they are fast in processing and disbursal and will be a great help in fighting financial emergencies. But getting approval on some loan depends on the eligibility of the applicant. Unsecured loans are collateral free loans which make the lender making the eligibility criteria bit firm as compared to secured loans. The risk of non-payment of loan amount is always high here so lenders make a strict eligibility check so that the risk of NPA can be minimized. Let’s how to access online loan by taking care of such factors:

Age
Age is the first criteria to meet for a loan applicant and must not be less than 21 years old at the time of applying for the loan and must not be more than 60 years old. The chances of getting loan increases when you are young because you will have fewer responsibilities towards your family and can extend your loan tenure till the maximum length.

Income
The income is the next checklist of the lender before approving the loan. The borrower must have a regular source of income and range may vary from lender to lender. Along with the same, the amount of minimum income also varies depending upon one’s profession i.e. salaried individual or self-employed.

Credit Score
Prior to approving any kind of loan, lenders do check the credit report of the borrower. The credit score ranges from 300 to 900. Therefore, score of 750 or above is considered “Eligiblity For an Online Loan“. Higher credit score reflects your disciplined behavior towards your previous loans. In the case of self-employed, the borrower must have 3 years of business continuity to become eligible for a loan. Frequent change in job area or business denotes instability in nature which is a negative remark for loan eligibility.

Employment History
The employment history is determined in the case of both salaried and self-employed individuals. If you are a salaried applicant, your credits in past will be recorded by the credit bureaus in your credit report. Any defaults in the past may make the lender believe that you may default in your next loan too. Therefore, lender may reject your loan application.

Repayment Capacity
The repayment capacity of a borrower is measured by a calculation as per the standards of Fixed Obligation to Income Ratio which is an indicator of smooth loan repayment. The lender evaluates your net monthly income and the total outgo of your existing loans including the applied one. If the total of all EMI’s is more than 50% of the income, the lender assumes that you may default. In such scenarios, it becomes difficult for you to “Get Approval For an Online Loan“.

Online loans from ShubhBank are very handy as you can avail them anytime and anywhere. But being eligible for a loan is required if you want your lender to approve the application. If you meet up the eligibility criteria and your documents are genuine, it just takes a few days to get approval and disbursement of the loan.

Generally, a Life Insurance cover is purchased to safeguard the family in the event of the untimely demise of the bread earner. However, today it is not just restricted to risk cover, but can also help you in securing a loan. You always have an option to secure a loan against your insurance policy. Let us see in the further article that “How Insurance Policy Can Fetch You a Loan“ in hours of need.

One Should Consider Loan against Insurance Policy
The advantage of a loan against insurance features fast approval and requires minimal documentation and has lower chances of rejection. Another attractive benefit is the interest rate, which is lower than any unsecured loan. This also comes handy for individuals having low credit score.

How to Apply For a Loan
The most important step is to go through your policy documents for details and find out what amount you are eligible for by asking your insurer.Once you complete the formalities, your loan will be assessed and your insurer will get in touch with you for transferring the rights to the lender. This usually takes 3 – 4 business days. Once the process is completed, you’ll get your loan money.

How to Check Your Policy’s Eligibility to Secure a Loan
Many lending institutes provide a loan against the surrender value of “Life Insurance in India“. There are some additional terms and conditions attached to your policies when it comes to avail a loan. For example, your policy acquires the minimum surrender value only if you have paid premiums for at least three years and can get a loan only after completing three years.

How Much Loan You Can Avail
You can avail up to 80-85% of the surrender value of traditional insured plans with guaranteed returns. The guaranteed value is the minimum eligible loan quantum that would be available to you and calculated as 30% of the total premium that you have paid, deducting the first premium whereas maximum value will depend upon the surrender value and the cash value of bonuses that you get. The maximum loan amount is usually decided by the actuarial of the insurance company. Some of ULIPs, which provide a loan facility, will offer money that depends on the current corpus value and the nature of fund in the plan. In a loan against insurance, the borrower’s income is a criterion for loan eligibility but the CIBIL score of the borrower will be considered.

Repayment of Loan
The maximum loan tenure offered is up to the tenure of the policy. The repayment period can either go on for the policy tenure or can have fixed number of years for repayment. Like traditional loans, these loans can also be pre-paid without any pre-payment penalty. In case you fail to repay your loan, then your policy will lapse.

Things You Should Keep In Mind
If you default on loan against insurance policy, your family will not get benefits of the policy cover. This is because the lender has the right to claim the maturity amount.