Nowadays, there is one of the best financing tool in market is a personal loan. Be it for starting-up small venture, your child’s wedding or higher education or to fund the purchase of any electronic appliance, you can avail a personal loan for various purposes. There are many lending institutions offering best deals on these loans but getting low rate of interest is not an easy task. Every lender takes into consideration multiple factors before deciding to lend money to anyone. So take a look on some important factors that determine your interest and the ways to get a better rate of interest on personal loan and how to improve them.

Good Credit Score: A personal loan is an unsecured loan and doesn’t require any collateral. Therefore, in such circumstances, a strong credit score is essential. It represents the creditworthiness of the borrower and lenders will ask for your credit reports before approving your loan. Having a good credit score, increases your chances to get easy personal loan as the lender have idea that you will be able to repay the borrowed money on time. Moreover, a strong credit history puts you in position to negotiate the interest rates.

Avail Seasonal Offers: Always pay attention to seasonal offers during the festive season in order to get low interest before you “Apply For Personal Loan“. You can great deals offering zero processing fees, customized pre-approved deals and discounts on interest rates.

Compare the Loan Deals: Before availing a personal loan, keep in mind the interest rates offered by different lending institutions. All the information is available online, these days, so visit the websites of various financial institutions, and compare all the factors then zero in on a personal loan. You can also check with existing creditors for borrowing as they may offer lower interest rates as well as longer payback period than other conventional lenders.

Good Repayment History: Either it is current loan or pre-existing one, follow the habit of repaying your EMIs and credit card bills on time. This timely repayment will not only improve your CIBIL score but you will also be in better position to negotiate for better interest rates on any type of loan.

Calculation of Interest: It is advisable to understand the interest calculation methods before taking an offline or “Online Personal Loan“. Some lenders may offer flat interest rates on loan where the interest is calculated on entire loan amount whereas some may offer loan at reducing rate of interest which is calculated on remaining principal amount. Having a better understanding of calculation method will save you a lot of time and efforts by avoiding paying a higher interest rate on personal loan.

If you are still unable to decide how to get a personal loan at competitive interest rates, you can avail it on ShubhBank.com. Our loan processing is hassle free with minimal documentation, collateral free and flexible repayment options as well as with the approval in just few business days after applying a loan.

Loan against property is much like any other type of loan in which lender promises you to give the funds by keeping your commercial or residential property as collateral. This concept is gaining popularity among loan seekers as large sum of money gets easily arranged by this. Loan against property offers great features such as easy documentation, faster approvals and flexible repayment options. It means one can apply for a loan from any lending institution by extending his/her property as a security. This is type of mortgage that involves a ‘transfer of interest’ and the ownership of the collateral remains with the borrower. Here in this article, we will tell you about what are the essentials of “Loan against Property“ and why it is attractive as compared to conventional loans. Mortgage loan is convenient as it offers higher loan amounts at discounted interest rate accepting both residential and commercial properties as security. Its major benefits are:

• Large quantum can be financed.
• Lower rates of interest as compared to other loans.
• Longer tenure resulting in low EMIs.
• Efficient financial tool for debt consolidation.
• Multipurpose use either personal or business.

The lender may also ask for KYC documents to validate the eligibility criteria which may consist of:
• Address proof.
• Identity proof.
• Property Papers(Residential/Commercial/Industrial/Plots).
• Salary slip if you are salaried.
• Certified financial statement for last 2 years if you are self-employed.

The approval of loan depends upon borrower’s credit score along with other factors such as age, income, the number of dependents, assets and liabilities. Once you “Apply For Loan against Property“ the lender will evaluate your eligibility depending upon given factors and luckily, if get approved for loan, the amount is disbursed in full or in installments in the bank account of the borrower. One can have choice to pick the type of interest rate either fixed or floating. The quantum of loan extended to the borrower is evaluated on the market price of the property, you pledged to the lender. It is important to keep the fact in mind that every lending institution always holds a certain amount of money and disburse a maximum of 70% of the market value of property. This ensures the lender against any cyclical fluctuations is real estate prices or in case, borrower default on installments.

Loan against property is great financial tool to meet your personal and business needs as there is no restriction on its usage. Many people use mortgage loans for funding children education in abroad, to buy or build a second property or even for business purposes. Putting your property at stake is a serious decision, so go ahead for loan after comparing the different lenders on their websites as many of them offer online loan against property with great benefits and features. The LAP should not be used as risk capital because it has high chances of losing your property to lender, therefore, apply it only when you know that you are able to pay back the loan amount in the fixed period.

In recent times, prices are hiking day by day and it’s impossible to make any big purchase without a loan. However, getting a loan these days has become much easier and turns out to be useful in the right circumstances. Before you approach any lending institution for loan, it’s advisable to know about the basics of borrowing so that you don’t regret your decision later. An EMI is a key factor of any loan, so we are going to tell you all about the EMI and its calculation. The term EMI means for equated monthly installment which is a fixed amount of money, you need to pay your lender as a repayment towards your loan until your loan is fully repaid.

An EMI is nothing but a loan feature that allows you to borrow money for emergency use while letting you to repay it in installments over an extended period of time. It is paid to the lender on a fixed date every month by setting up auto debit system or via cheque through your bank. There are two main components of EMI, the principal amount and the interest component on it. In initial years of loan after you “Apply For Loan“ huge portion of monthly installment consists of interest but as the loan matures, the outstanding loan quantum reduces gradually and the interest part becomes lower than the principal amount. The EMI amount also gets changed in the following cases:

Prepayment of Loan: If someone prepays the loan money during the tenure of loan, EMI will change accordingly. The prepayment cuts down on principal amount, therefore interest will be charged on new principal amount now. You can also ask the lender to change the tenure instead of EMI which leads you to repay the loan money quickly.

Progressive EMIs: Some of the lending institutions also offer the option of repaying the quantum through progressive EMIs. In this case, you initially pay a limited amount for specific time and after completion of this period, you start paying larger installments. It is generally preferred by the individuals who just started their career and cannot afford large EMIs initially but hope to pay it as they grow in their work place.

There is a particular mathematical formula to calculate an EMI which is given below:
P x r x (1+r) ^n/ ((1+r) ^n-1), where P stand for principal amount, r stands for rate of interest and n stands for duration of loan in terms of month. Nowadays, banks and non- banking financial institutions are offering use of free online calculators on their official websites when you “Apply For Loan Online“. These calculators can help you to know how much installment you need to pay each month so that you can plan your budget accordingly. It should be a prior thing in your checklist while securing a loan to calculate EMI beforehand to stay out of debt forever. Hence, you know all about EMI now, go ahead and choose the loan that suits your needs.

Taking a personal loan and using the loan money to fund your vacations or to buy yourself a new gadget is great, as long as you manage the timely repayments and don’t get into debt trap. Personal loan is a most popular financial product that an individual can avail when in need. Most of the lenders have sweetened the pot with minimal documentation, quick approval, flexible tenure and comfortable loan terms. This type of loan is very useful when you need funds in short time such as wedding, travelling, vehicle purchase or home improvement. Before securing it based upon your needs, plan a budget and figure out if your income can accommodate the monthly installments. If you are going to apply for the loan, there are some do’s and don’ts to remember while taking a personal loan for you given below in this article:

1. Borrow as much as you need: This is the best way to avoid getting into debt trap. You may meet the eligibility criteria for higher loan quantum but it’s advisable to borrow just what you need. If you are not sure about your requirements then opt for Personal Loan Overdraft, where you are sanctioned with full loan amount in one go but withdrawals can be done as per need and you only have to pay the interest rate on the amount you use.

2. Borrow according to repayment capacity: As a thumb rule for loans, a loan EMI should not exceed 20-25% of your monthly income. So, before you “Apply For Personal Loan“ calculate how much monthly installment you can accommodate after meeting all you’re your expenses and adjust the funds accordingly.

3. Choose the right tenure: If you opt for long tenure, it will reduce the EMI and short tenures are suitable for short term cash needs where a borrower expects the money from other sources in few days. Therefore, choose carefully and make timely payments as it can affect your credit score and reduce your chances of getting the loan approvals in future.

4. Don’t use loan money for luxuries: A personal loan is multipurpose, it does not come with a restriction on use and sometimes, it is easy to give in to the impulse of spending the loan amount on luxuries. Well, it’s great to treat yourself occasionally but spend the borrowed money carefully and make sure to repay it on time before making an unpleasant loan journey.

5. Read the terms and conditions carefully: Nowadays, there are innumerable digital lending platforms providing you the “Online Personal Loans“ to save your time and make you aware about the terms and conditions applicable on loan processing and approvals. Before, signing the loan agreement read the terms and conditions carefully and ensures yourself what you are getting into.

Personal loans are convenient because they are fastest and easiest form of credit available in the market. It should be a wise decision to identify your needs first, plan out your budget and to opt for a Personal Loan.

Personal loans have become one of the best-selling loan products and it’s in high demand for number of advantages such as easy to apply, easy to repay, faster processing with minimal documents. Considering the high demand, personal loan providers are increasing at rapid pace in market, thus many a time, loan seekers get confused in choosing the right lender. Most of the times borrowers knock at the doors of lending institutions for loan and ignore Direct Selling Agents but if you study the functionality of DSA meticulously, you will find a number of benefits of applying a personal loan from DSA which are given below:

• Best Customer Support: A loan agent will always provide you with a best customer support system as compared to traditional lenders as they follow strict code-of-conduct ensuring the customer will get better services from DSA. They provide you step by step guidance at every step of the loan process.

• Doorstep Service: DSAs are best known for their doorstep services. They send their executives at your doorstep to alternate your visit to your lender’s office. The assigned executive will visit your place as many as times needed for collecting the documents, clarifying your doubts or taking your signatures on the loan documents.

• Credit Score in Safe Hands: There are always high chances of making personal loan mistakes which can spoil your credit score. In case, your eligibility criteria do not match with the lender, then your loan application will get rejected and it will surely spoil your credit score. If you “Apply For Personal Loan“ from DSA, he/she will send your application to those lenders only whose eligibility criteria match you. Also, if you are not eligible, DSA will inform you not to process the application. Hence, there will be no harm to CIBIL.

• Great Chances of Approval: Mostly, the DSAs have a partnership with multiple lenders, therefore when you send a loan application through DSA; they evaluate your personal and professional information and choose the right lender so that you may get a granted approval on loan instantly.

• Less Effort and Saves Time: When you apply a personal loan from DSA, it saves a good amount of time and effort of borrower. You just have to “Apply For Online Personal Loan“ through the website for which DSA works. Once your application gets submitted, loan agent will assist you at each and every step of loan process and saves a lot of time. Always check your loan EMI which will help you to plan your finances in better way.

These are all the benefits you can enjoy by applying for a personal loan from DSA. They always have to abide by the rules and regulations set by the lender, so one can easily trust a DSA for securing a loan product. If a loan seeker wants a seamless experience in the personal loan process, apply it through Direct Selling Agent (DSA) instead of applying a loan directly through the lender making the entire process easier and faster for customer.

Have you ever thought what protects the rights of borrower and lender when a loan is sanctioned or what kind of issues they might face after lending or borrowing money without a contract? The loan agreement is a contract that binds people into some kind of restrictions and regulations to formalize a loan process. It is necessary before lending as well as borrowing money. There are so many types of loan agreements depending upon the type of loan by following the state and federal laws. In this article, ShubhBank gives you a complete guide to loan agreement and its working.

The agreement contains all the details regarding how much quantum has been loaned and the time by which the borrower have to pay back the secured money. Once the papers are signed, the borrower is obliged to pay the borrowed amount to the lender. It also prevents illegal or excessive repayment of interest rate, thus safeguarding the borrower’s right when they “Apply For Loan“. It mutually benefits both the lender and borrower as it assures the lender with guaranteed payback as well as assures the borrower with no hidden charges levied on the loan money. The agreement allows people to take legal action and save you in case of any discrepancy. It is always advisable to draft an agreement to stay at safe side while lending or borrowing the money. There are various sections penned in agreement and enlist as following:

BASIC INFORMATION: Each loan agreement has a section that enlists the details of borrower and lender. The details are listed about the person’s full address, salaried or self-employed, its designation and the numbers of lenders and borrowers with a specified guarantor details in a separate section. At last, a section is included that specifies date and location of signing the loan agreement documents.

LOAN DETAILS: After listing the details of people involved in loan process, one must outline the specific details about transaction and payment information, the interest rate levied on the loan amount etc. In payment section, the details about EMI frequency are listed and also include the acceptable payment mode such as cash, net banking, credit card payment etc. In interest section, information regarding the type of interest rate is listed whether it’s fixed or variable and the date from which the interest will accrue.

DEALING WITH A VIOLATION: If a lender has sanctioned the loan by taking collateral as a security against any “Loans In India“ then make sure to mention the terms related to collateral in the loan agreement. Generally, secured loans have such section in the loan agreements mentioning details of the security agreement where for unsecured loans; one can omit this section from their documents. There is an additional provision in agreement which prevents the violation of the agreed norms. It can help the lender to recover the borrowed amount through legal action or by taking possession of assets in case the borrower defaults on loan payments.