A beautiful home is a personal asset that everyone has dreamt of owning for a long time. If you are planning to purchase a new house, these are the two things that you will consider instantly a pretty home and about applying for a home loan. However, what matters is qualifying for the home loan. It is most important for the lenders to analyze your repayment ability, which is essentially evaluated based on your earnings, expenses, savings, work profile, financial capability, and repayment history of loans and other dues. A nasty credit score and therefore the ghosts from the past, i.e. your credit debts or poor payment history can pose a drag while qualifying for a home equity credit. Here are 4 important tips to see before apply home loan online:

• Your Credit score: – A credit score is like an inspiration that can be a foundation for your easy home loan application process. This score depends on how consistent you are good at paying your past EMI and loans. The higher the credit score, the higher the chance of the loan getting approved. And also one can expect the best rate of interest on the home loan as a bonus. A trusted bank or financial institution will make a report on your Credit score. Ensure you check your credit score at least six months or a year before you “Apply For Home Loan“.

• Required Documents for a home loan: – Before you go and apply for a home loan, it is necessary documents required and ensures they are available before you approach a bank or financial institution.
1. Pan card or Aadhaar card to verify your identity.
2. Bank statements for at least 12 months. Make sure you maintain a reasonable balance in this account over the past 6 months.
3. Last 3 months salary slips.
4. Income Tax Returns for the past year or two years.

• Consider you’re Budget, down payment and EMI: – Define your budget for buying a home, how much money you can consider for the down payment, and how much loan home would you require. Mostly you will get 80% of the value the property as a home loan if your income seems sufficient. Calculate your EMI range you are comfortable with, as that will help you to decide the tenure of the loan. You can use online EMI calculators.

• Interest Rates of the loan amount: – The borrowers have to pay interest on the loan amount in a calculative way. It may vary from 6.70% to 6.95%. As the loan amount is reduced after some EMI, the amount of interest is also reduced. “Home Loan Interest Rates“ may vary from bank to bank. It also depends on RBI changes in interest rates. The buyers must have some processing fees during the transfer of an amount.

Taking all the above points into consideration, you can proceed to apply for the home loan. Thus it will improve your chances for a quick home loan approval.

If you want to own a successful business or want to make your existing business successful, a regular cash flow is a part and parcel for every company to start a profitable business. The common reasons for which a company needs funding can be purchasing a new machinery, wages payment to the staff, buy an office space, bring down the existing debt or to expand the pre-existing business. Therefore, to get the funds, there is a large marketplace for business loans as corporate sector plays a significant role in contributing the GDP of the country. Nowadays, the demand for business loans is increasing; hence financial institutions are making it easier to avail funding for businesses. Here are few tips to tell you that how to pick the right “Business Loan“ to achieve success.

TYPE OF LOAN: There are different types of business loan available in India for small businesses which are mentioned below:

• Working capital loan.
• Term loan.
• Machinery loan.
• A business line of credit.

So, to avail the benefits, you first have to decide about the type of loan you need. If you need to purchase new or upgraded machinery/equipment then you can opt for a machinery loan, if you need to pay out wages or want to expand your existing business then you can go with working capital loan. When you know about such options, these always work the best when you “Apply For Business Loan“. Always research them one by one and opt for best suited at last.

THE RIGHT LENDER: When you are trying to plan for a loan, you will come across many lending institutions offering number of benefits. But if you really want to secure best option, it needs sometime. You need to research for various lenders by going through their websites, customer reviews on their portal. Always compare them on the basis of interest rates, quantum offered and tenure to repay the loan. ShubhBank is trending lending institution who provides Online Business Loan to fulfill all your requirements.

DOCUMENTATION: When you apply a loan, every lender will ask you about business’s cash flow to ensure them for repayment. It is every borrower’s responsibility to provide correct documentation to avoid rejection of loan application. Having a robust business layout showing the potential growth and profit can help you to get approved for loan. The other important factor to know is eligibility criteria. Try to opt a lender with minimum eligibility criterion as gathering all the required documents may be tough at that point of time. Some of the documents required are given below:

• Existing business details.
• Previous year’s Income Tax Returns.
• Proof of identity- PAN card, address proof, voter ID etc.
• Last two years bank statement.
• Commercial and residential property documents.

At last, selecting a right business loan is important for every business’s success. So be a smart, choose the best loan product available in the market and make an informed decision. Hence, a right financial partner can contribute to your growth in business.

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.

Nowadays, there is panic in air due to pandemic of COVID-19 and staying indoors is not only an effective way to remain healthy but it may also be a good time for financial security when all of us surely need it. However, all the individuals are facing downside of not being able to business or commute to workplace but there are some upsides of this isolation period. Generally, our life is fast paced that we forget to identify our monthly budget, so it is great time to embrace the isolation and make this a productive one. Here take a look upon how to keep check on your finances while staying quarantined while checking your monthly scenario.

Check Your Credit Report
Your credit report contains all the information about your Credit Card billings and loans. Moreover, it shows you the updated repayment history. By going through it, you’ll figure out if you’ve been missing any Credit Card payments or loan EMIs. Also, reviewing your credit history every now and then will help you boost your CIBIL score and thereby increases your chances of loan approval in future.

Review Your Savings
Prepared a brand new plan to save money in 2020 so why not review how you’ve fared in the first quarter. It’ll give you an insight into how realistic your plan is, and if required what changes you can make to it. Sometimes, plans sound great on paper but they don’t pan out the same way in real life. If you find out any gap in your plan and fix it before you move ahead into 2020.

Reschedule Your Household Budget
As essentials are taking center stage during the lockdown, it’s time to adapt your household expenditures to better suit the situation. Use this period to map out the general cash flow towards daily expenses. You might be already doing everything right in this regard, but it won’t hurt you to review it for what it’s worth.

Clear Your Credit Card Dues
If you’ve been paying your minimum monthly due towards your Credit Card bills, you may want to consider clearing all the dues because these plastic cards charge high interest rates which can cause your debt to grow big. You don’t want to be in debt trap. If clearing your dues is not your style, you can always consider transferring your outstanding balance to a Personal Loan. This way, you’ll be repaying your outstanding due at a lower rate of interest.

Forecast the Lockdown Savings
If you want to look up at the “Bright Side of this Lockdown“ just try and lay out how much you’re actually saving by not commuting to work place on a daily basis. Now it is the right time to optimize your savings and make this isolation work in the favor of your finances.

Well, it’s a best time to review your finances. Do to the same what companies do during a recession like identifying weaknesses and improve accordingly.

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.

When you are looking for a loan, you not only go for the loan amount or the interest rate associated with it but also a lender from whom you are “Getting the Loan to Fulfil your Requirements”. With the leading competitions in the lending market, some of lending institute offers the loan that look best first but under the hood cannot be as pleasant as the appearance. To avoid such things a good lender is the must having specific skill set and can be easily recognized. An ideal lender showcases each and every product that is beneficial to the customer with a detailed description associated with the product and services. When the lender provides the convenience to the borrower and services online or any other facility then the lender is ideal for any kind of loan. Lending is a business where there is benefit as well as risks also. So when you are looking for an ideal lender, keep some useful points in mind to recognize the safety of the deal for its clients.