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HOW ONLINE LOANS ARE CHANGING THE WHOLE LENDING SCENARIO?

Posted on Thursday September 22nd, 2022

Nowadays, digital technology has entirely changed the way of borrowing and lending the money. There are number of bank and NBFCs that marked an online presence through their websites, lending portals and lending apps for taking the loan procedure to a whole new level. Access to online lending market has made it easier for borrower to Apply For Loan these days.

The time taken to approve your loan application has been reduced significantly to 2-3 business days and physical process involved in authenticating the CIBIL has been replaced by API which automatically lessened the turnaround time. Therefore, the entire process of loan sanction has been made pretty easier. Here, we will discuss about some of the features related to online loans:

Basic eligibility criteria: Most of the lending institutions have very easy and simple eligibility criteria for sanctioning a loan. This makes it convenient for a wide variety of people to get a big or small ticket loans. Nevertheless, one must have a really good credit score for availing such types of loan solutions.

Paperless transactions: The lending institutions that offer online loans provides an easy documentation process with the help of lending apps and online submission of required papers. It means there is no need to visit the branch physically to avail any loan because you can simply get it approved by sitting at your home or office.

Faster processing: Once you submit all the required documents, your loan application get processed within 1-2 days and then the loan money is disbursed directly to your bank unless and until you have a good credit score. The loan procedure starts with meeting up eligibility criteria and ends with the loan quantum required for disbursal.

No hidden fee: When you avail any kind of loan, make sure to read all the terms and conditions regarding loan, interest rate, minimum payable amount for every month carefully. Well, all these terms are highlighted on the lending portals and phone applications making it hassle free to you access the portal and Apply For Loan Online easily.

Affordable interest rate: Those days are gone now when the interest rates were handled by the bank managers because there is no space for favoritism as rate of interest are highly competitive these days. In recent times, any borrower will be eligible for rate of interest evaluated by the system based upon their credit profile, thus eliminating human bias.

Great customer support: Every lending institution provides both instant approval as well as 24X7 customer support to your queries by emails, SMS or phone calls. They give you a faster resolution and peace of mind regarding your question related to entire loan process. Nowadays, loan companies give you all the pre and post loan services along with financial solution.

Hence, the scenario of the financial sector has changed radically with the advancement in digital technology and online loans which are simple, convenient, paperless as well as seamless to access. One can apply for desired loan solution to meet a variety of personal and professional needs.


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HOW COLLATERAL FREE LOANS CAN BE AN IDEAL CHOICE?

Posted on Monday August 29th, 2022

The collateral free loans refer to the term where a borrower doesn’t need to pledge any asset or security against the loan money. The loans are approved on the basis of client’s current income, cash flow and credit rating to ensure the repayment of loan on time. Collateral can be any of your personal or business assets that acquire certain financial value against the borrowed money.

One can Apply For Loan to fulfill the personal and business purposes without pledging any security. Most of the popular collateral-free loans are Personal Loans and Business Loans. The amount of loan sanctioned purely depends upon your credit score. So, now you have better understanding of collateral-free loans, here we have listed some of the benefits availed from security free loans making them an ideal choice for borrowers.

● No security required: As the name indicates, these loans are free from the requirement of any asset from the borrower. Lender will not compel the customer to risk his/her valuable asset for availing a loan. Therefore, by removing this obligation, it allows the borrowers to remain stress free about debt burden and use the amount to tackle their financial crunch without losing any asset.

● Build your credit history: Since collateral loans remove the requirement of any security but it is based on most important aspect which is borrower’s credit worthiness. Every lender approves the collateral-free loans based upon the clean credit history and good credit score of their client.

If you are a first time borrower, then unsecured loans can be great way to start working on your credit score. After availing the loan without pledging any asset, make sure to pay the loan EMIs on time to build up your credit score over the time and get eligible for big ticket loans in future.

● Quick loan approval: In case of secured loans, lenders take long time to approve the loan as they need much time to evaluate the value of the possession submitted as collateral and thereby finalizing the loan quantum. However, collateral free loan eliminates this need and loan mount is approved and disbursed quickly.

As one of the reputed lenders, ShubhBank sanctions the collateral free loan in a few minutes after evaluating your eligibility and funds are reflected in your bank account within 24-48 years.

● Flexible payments: Sometimes unsecured loans are restricted by limited repayment options but most of the lending institutions like ShubhBank offer variety of repayment options to make the loan journey as smooth as possible. We offer collateral free loans at nominal interest rates with flexible repayment structure.

Hence, collateral loans have become ideal choice to the dilemma of the loan seekers who don’t want to risk their assets in the loan process. Moreover, it helps the borrower to build a credit score and helps to Apply For Loan Online or offline in future at competitive interest rates. If you are looking for easy and convenient collateral-free loans, visit the ShubhBank and avail the useful features such as fast online processing and flexible tenors on unsecured loans.


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WHAT ARE THE FEATURES AND ELIGIBILITY FOR UNSECURED LOANS?

Posted on Friday August 12th, 2022

Nowadays loans are savior for several reasons which can bail you out from tough financial situations and provide you financial cushion for happy events in your lifespan. An unsecured loan is that credit solution which doesn’t require any collateral, so a lender sanctions you a loan based upon your creditworthiness. A lending institution will check prescribed eligibility criteria to approve your unsecured loan. Personal loan, business loan, credit card loans are some of the basic examples of unsecured loans.

Loans are classified into secured and unsecured loans which have different features and criteria. An unsecured loan generally depends upon borrower’s credit worthiness whereas in secured loan, one has to pledge some type of asset as collateral reducing the chances of default. Therefore, unsecured loans stand in contrast to secured loans and if you are looking to Apply For Loan it is good to know the features of unsecured loan which are mentioned below:

Higher interest rate: However, unsecured loans are riskier than secured loan for lenders as they are collateral free but require higher credit score for loan approval. In case of default on secured loan, lender has right to repossess the collateral to recover the outstanding dues but in unsecured loans, lender can’t claim any asset. Therefore, unsecured loans are fully qualified on the basis of creditworthiness, so they are always offered on high interest rate.

Role of co-applicant in loan: Every lending institution decides the loan approval based on creditworthiness of borrower in case of unsecured loan and can charge you a higher rate of interest if they find you risky as per their analysis. In some cases, looking after your requirement and eligibility, lender may give you an opportunity to add a co-applicant with a stable income and good credit score.

The role of co-applicant is to take on the legal obligations to pay the debt in the times when primary borrower defaults on payment. One can also share the EMI burden with their co-signer.

Credit report: It is the key factor that decides the approval or rejection of your loan application. One must have a credit score above 750 to get approved for unsecured loan and to grab a competitive interest rate on it.

Well, the eligibility criteria for unsecured loan are highly stringent and may differ from one lender to other. Here, we are listing the widely followed eligibility criteria. Have a look on it:

A borrower must be salaried person or self-employed individual with regular income above a certain minimum threshold.

If you have any existing loan then its EMI must be below 50% of your monthly earnings.

The credit score of borrowers whether they Apply For Loan Online or offline should be above 750 with an excellent credit history.

One must have a work experience between 2-4 years depending upon the type of employment.

Now you know that secured and unsecured loans are starkly different and have different features and eligibility criteria, so choose wisely between them to get a financial aid in tough times.


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WHAT ARE THE BEST WAYS TO MANAGE LOAN REPAYMENTS?

Posted on Friday February 18th, 2022

Many of us are not able to fulfill their dreams with our savings; therefore people turn to financial tools such as loans or credit cards. These loans can fulfill all your needs whether for buying a home, vehicle or those who want to pay for higher education or wedding. One just thinks of his/her needs and lending market has a customized offer for you. There are number of secured or unsecured loans which are easily available in market and apply for a loan.

Nowadays, loans are easily accessible and majority of people are able to take the advantages of these financial tools. However, your eligibility helps you to avail any kind of loan but it’s more important to manage the loan repayments as it has a huge impact on your credit history. Here, we have listed down some of the tips to manage your loan payments easily.

Create a budget: Before you Apply For Loan work out on your financial planning. Always make yourself sure of debt to income ratio and savings to pay the monthly installments. It is of great importance to scrutinize the terms and conditions of the loan that it doesn’t impact your credit score and you have to shell out more money than your earnings. Hence, do a proper search and stick to your budget plan and get a loan accordingly.

Timely payments: It is really important to make regular repayments to make your loan journey stress free and joyous experience. Never let your repayments to pile up as it will only accumulate additional costs such as penalty and have an adverse effect on your credit history. Loan repayments should be your top priority to have a good financial health. When you can’t remember the due dates of loan EMI’s, set out an auto debit facility for repayments.

Prioritize high interest loans: The loans which have long tenure are always opted for lower rate of interest where as short tenure loans charges you high rate of interest. It is always advisable to pay off the loans that have higher interest as it will help you to reduce the debt burden. You can also take the advantages of tax deduction on some loans.

Seek some financial advice: After following such tips, if you are still unable to manage your loan repayments and getting into a debt trap, then I’s a high time to seek an advice from financial expert. He/she will guide you through all your financial worries and offer you a credible advice and remedies to lower down your debt burden. These experts may charge you some fees but saves you a lot of bucks.

These financial solutions are meant to help you in fulfilling your requirements whether you Apply For Loan Online or offline and repaying your loan EMIs on time can make your loan journey more fun for you. It is important to inculcate some financial discipline to take benefits of these wonderful and easily accessible financial tools that make your present and future easy and enjoyable.


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HOW ONLINE LOANS ARE CHANGING THE FINANCIAL MARKET?

Posted on Monday February 7th, 2022

In past times, when you had been tried for a loan, you would be aware of the time consumed in it as well as remember the amount of paperwork you submitted to get a loan. Nowadays, with the evolution of digitalization in the fintech sector has completely changed the lending scenario. With an access to smart phones, you can get anything you need whether it is groceries, medicines or loans and investments.

Before the online portal has been introduced, the NBFCs and banks were only limited to metro cities leaving the majority of potential borrowers undiscovered. Moreover, the cost of loans were very high and time consuming due to the involvement of physical office, lots of documentation, verification and evaluation of loan applicant. Now the technology has revolutionized the way of lending sector and you can Apply For Loan at your fingertips.

The processing time of a particular loan has been reduced to 1-2 business days from 15 days as earlier. Now the whole loan process has become paperless, you only have to upload the documents on online portal of specific lending institution. The physical process of verification has overtaken by API which has decreased the turnaround time to minutes from days. Online lending has penetrated the whole country and has an access to every person who owns a smart phone.

In recent times, online loans are the most convenient financing options available in the market. Here, we have mentioned some of the features of e-loans on which you will agree that they are customer friendly financial solutions. Let’s explore some of these:

Simple eligibility criteria: The eligibility criteria for online loans have become relatively simple and easy to meet. If a borrower is a resident of India and above the age of 21 years and earning enough as his/her monthly income, you are eligible to apply for any kind of loan according to your needs.

Minimal documentation: A decade ago, lenders ask for lot of paperwork and documentation to disburse a loan but online loans are quiet popular these days as they are quick and paperless. To exemplify, ShubhBank provides you a digital platform to Apply For Loan Online with uploading some of the basic documents such as PAN card, residence proof, salary slip of last six months etc.

Fast processing: In past, the processing time was measured in days and moths but today you can process your loan application with 1-2 business days on approval. The disbursal of loan has become much faster when it comes to any financial emergency.

Customized loan solutions: The digitalization in fintech industry has ensured that lenders could come up with customized credit solutions to meet the unique requirements of their customers. One can find tailored solution for their needs whether it is for wedding expense, home renovations, business needs or medical emergency. The competition between lenders has increased to create unique solutions that appeal the potential loan seekers.

Hence, whatever be you need, you can be sure that you will get a tailored solution at ShubhBank.


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HOW TO MANAGE YOUR FINANCES DURING CORONAVIRUS PANDEMIC IN 2021?

Posted on Monday April 26th, 2021

The world economy is in a state of turmoil due to COVID-19 pandemic, leaving most of the population insecure about their jobs and finances. The financial anxiety is increasing at an alarming level during these tough times; it’s hard to make rational choices about the better ways to manage finances. However, making smart financial decisions by avoiding money mistakes are must to ensure your financial security in future. In this article, we are listing few tips to overcome financial crisis at a personal level.

→ Fuel up your emergency fund: Anyone can face an actual emergency such as a job loss or less income to pay regular bills. It is the right to beef up your emergency funds as financial experts’ advice to have three to six months worth of living expenses in your savings. Nowadays, when you are working from home, you can save so many bucks spent on the commuting, meals, and laundry towards your emergency funds. Moreover, you are unable to access any leisure activities like movies, restaurants, concerts etc., you can also put that money towards your fund.

→ Look on your spending habits: If you are insecure about your finances during this ongoing pandemic, have a closer look on your expenses. Try to spend on crucial expenses and cut down your unnecessary expenses to a minimum level. Your monthly bills have to be your priority, else can wait. Priorities essential utility bills like electricity, water, insurance premiums and loan EMIs. Look for a way to buy products in bulk for minimum price.

→ Get a loan to avoid immediate cash crunch: If you are a business person then you may have a disrupted cash flow as well as income disruptions to pay your employees and regular bills. Therefore, you can Apply For Loan either personal or business depending upon your repayment capability to overcome this immediate cash crunch. However, taking a loan can be easier option these days, but consider it as a last resort. If you find that you will be unable to repay it easily then do not take on debt to worsen your current situation.

→ Opt for second income: Try to come up with some innovative ideas to earn extra income. You can take up freelancing projects, online part-time jobs or make your past time activity to earn for you like handcrafts, baking, chocolate making, culinary skills etc. The earnings from these projects can be small but this small proportion can add up to something very significant in future.

→ Do not sell your stocks: As the trending stock market crashes, it will tempting you to sell your stocks but history imparts that stock markets have always recovered over time, so do not react to it without having a word with any financial expert. Now, if you decided to sell your stocks, you will automatically lose the opportunity to participate in the market recovery. A panic stricken decision of selling your stocks may lead to significant money loss and you may fail to achieve your financial goals.