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.

Providing a loan or loaning is an entrusting capital which is carry from one person to another. A loan has three elements the principal or the borrowed amount, rate of interest and tenure or period for which the loan is availed. It is one of the major economic properties of any bank or NBFC that is a Non-Banking Financial Company proposes.

There are several types of loans and the familiar categories of loans that people serve as:

• Home Loan
• Car Loan
• Education Loan
• Personal Loan
• Business Loan
• Gold Loan

These Junctures a bank mainly consider to Applying for any of these Loans

Bringing a loan is a huge economic judgment that compels you to create conscious options. Here are some options:


• Credit Score: When you will apply for loan, you have to review your credit history. The history of Credit score is a certificate of your last borrowings, if any, and reimbursement certificate. This will illustrate if you are accountable for repaying or if you have declined payments in history. A credit score of (750 and above) is great.

• The Interest Rate: Check the loan interest ratio before you apply for one. Loans that compel collateral security commonly have lower interest rates than loans that don’t require.

• The Processing Fee And Other Charges: When you try to apply for a loan, and if you lose your payment deadlines for your loan, you will be liable to spend a processing and punishment fee equally. These payments and taxes rely on the loan proportion.

• Research To Get The Best Rate For Your Loan: Research and compare from different banks & NBFCs to get the best interest rates, EMI, tenure, and other charges that best suit you.

Eligibility to have a Loan

• Salaried and Self-Employed persons can “Apply For a Loan“.

• The Age limit is from 23 years to 58 years for salaried and 28 years to 65 years for a self-employed person.

• The income should be Rs.25, 000 and yearly for salaried and minimum turnover of Rs.40 lakhs for a self-employed person.

• The CIBIL Score should be Above 750 for both.

Documents for Loan Application

For both salaried and self-employed persons, these documents are mandated to apply for a loan

• Application form with photograph
• Identity and Residence proof
• Last six months bank statements
• Processing fee cheque
• Latest Salary Slip for salaried
• Proof of Business for self-employed
• Form 16 for Business Profile and Previous three years Income Tax returns (self and business)

How to apply for a loan?

Applying for a bank loan is easier than one would believe. However, before you pertain for one, you should be conscious of your economic circumstance, lent you will have to compensate the loan proportion later. With all the paperwork implicated and several eligibility standards, you first comprehend your necessity and if you believe it’s a favourable way out for you. In the festival of Lohri 2020, apply for a loan to have several benefits and make you a “Happy Lohri“.

In India, loan defaults and frauds are the major reason behind unpaid loans. Lenders believe lending is risk free when borrower have a good credit score and a regular income source but recent slowdown in economy, vanishing jobs and increased unemployment in the country has led to a rise in number of loan defaulters. The majorly popular loans in India are Home loan, loan against property, Gold loan, Used car loan, Machinery Loan, Business loan, Personal loan etc. These loans have been classified into two categories; one is secured loan and second is unsecured loan. There are “Some Reasons You Should Know Behind Loan Defaults“ such as delays in salaries, job loss and business turn down are some of the top reasons for debt defaults.

Delay in Salary: It is the most common reason behind 40% of the loan defaults in India. The salary delay is common whether you are in government job or private job. Therefore, borrower is no left with any other option of delayed payment of loan for more than a month affecting your credit report.

Job Loss: As the Indian economy has been slowing down after demonetization, the number of job losses has increased and in such a case, borrower is left with no money to repay his/her ongoing monthly installments.

Business Loan: Business is always unpredictable where nothing is sure and most of the business owners take a working capital loan for the smooth operation of their venture. In case of any loss or failure, the repayment of the loan becomes tough leading to loan default.

Frauds: It might sound unrealistic but fraud is one of the major reason of loan default because some people take loans with a pre-planned intention of not to repay it. It is difficult to qualify for a loan without having legal documents still some manage to do so. Some of them misguide the lender and get underground not to “Repay the Loan Amount“.

The defaults are most common in business loans and personal loans as they are unsecured, so in that case of fraud borrowers do not pledge collateral equivalent to the borrowed amount and later on they do not repay. The consequences related to loan defaults are additional charges and penalties, drop in credit score, less chances to qualify for future credit, loss of ownership of collateral with lots of stress and tension. When you are not able to repay the loan for more than 3 months, the lender will send you a legal notice if you do not take any considerable step. The court will provide you a time period to repay the amount but if you failed to utilize that time, then your collateral will be considered as non-performing asset.

In order to lessen the defaults in country, every lending institution needs to tighten their loan eligibility and have a thorough check on the borrower’s repayment history and job security. Moreover, in case of business loans, every lender needs to be more sure about the repayment before they lend.