A personal loan is one of the best options for any short-term financial crunch or immediate emergency. This unsecured loan is quite handy and can easily manage the planned as well as unplanned expenses. The advancement in the technology and the digitalization in lending sector have speeded up the entire loan process, therefore one can “Apply For Personal Loan“ instantly and get the approval for it in less than an hour.

Everything sounds so good about this loan such as quick approval, fast disbursal and many more factors like these which make personal loans, one of the widely accepted financial products among the majority of people. However, there are several benefits associated with this loan but there are certain things about the loan which remain untold. In this article, we will mention some tips about personal loan that nobody going to tell you.

Secure in need: Being an unsecured loan, the rate of interest rate is comparatively higher than other secured loans. So, keep all this in your mind, always apply for a personal loan when you are not left with any other option. It is good to understand that as this loan helps to cover your short-term crisis, you will be paying back it for coming years with interest. Hence, make yourself sure about your repayment capacity within your income.

Additional charges: Before you decide to go with a specific lending institution for taking a personal loan, you need to know about all the terms and additional charges along with interest rates charged by that lender. These additional charges may include processing fees, penalty charges for prepayment or late payment of EMIs, verification charges etc. Make sure that you take these things into consideration as these factors can club together to form bigger amount.

Pick a short tenure: Most of the lenders provide personal loans for longer tenure with lower EMI. It may be quite tempting but you end up paying more on the component, so always try to pick up a short tenure.
Good CIBIL score: A good credit score always helps you to grab the best deals on a personal loan. It will give you the power to negotiate the lower interest rate with the lender to reduce your loan burden.

Research thoroughly: Nowadays, there are innumerable personal loan providers in the lending market offering the same product at different rates of interest. To grab a best deal on your personal loan, it is important to do thorough research before choosing a lender for you. Select a loan provider after comparing every feature such as interest rate, terms and condition, loan tenure etc. and then “Apply For Personal Loan Online“ or offline according to your requirement.

Hence, if you are looking to sign for a personal loan application, it is important to consider above mentioned tips as they will not only help you to catch the best deals on personal loan but it will also keep you stress free from the debt trap as well as avoid the future troubles.

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Personal loans are unsecured types of loans that do not require any security and it can fulfill every need, dream or purpose. To be at the top, they are quick and convenient. In this article, let us have a look that how to manage your expenses when you “Apply For Personal Loan“. Therefore, we will discuss the different expenses that can be fulfilled with personal loans.

√ Emergency Expenses: Sometimes in your life, you face unpredicted expenses which may require arranging the sudden funds either foe medical emergency or urgent travelling. A personal loan can be a perfect fit to meet such immediate expenses. You can get necessary funds at a flexible tenure with a personal loan that has negligible spending restriction. Knowing your tenure and rate of interest in advance will help you to plan your budget. Since these loans are disbursed in the form of cash transferred to your account which you can utilize to manage multiple expenses.

√ Higher Studies: Pursuing higher studies, especially in abroad, is a dream come true for most of the people. However, it is an expensive affair as you have to pay tuition fees along with accommodation and living expenses but you need not to give up on such an amazing opportunity due to shortage of cash. Hence, you can avail a Personal Loan from ShubhBank at competitive interest rates. The loan amount will help you to pursue higher education with the coverage of tuition fees as well as other expenses.

√ Home Improvement: The exterior and interior of your home play a crucial role in setting your mood for the rest of the day as well as ensure you to feel relieved when you are back home after an exhausting day. However, there are few times when you may want to add up a room or to renovate your home. It could be either from wear and tear your home has experienced in past years or you want a change. Instead of using your savings you can take a Personal Loan from ShubhBank for home improvement. So, if you are looking to build a modular kitchen or want to change the floor of your home, you can go ahead with this loan.

√ Wonderful Vacations: Both the children and adults lead hectic lives these days and most of them look forward to exotic destinations in holidays. This leisure time help us to spend quality time with our friends and family to enjoy new experiences, to increase productivity, witness different cultures and also to feel rejuvenated, so get a “Personal Loan“ for yourself, and travel to all exotic and gorgeous destinations. It would not only give you the chance to click wonderful pictures to be posted on social media platform but also develop cherish able moments.

To reiterate, there are number of other expenses such as working capital requirement for new venture or existing businesses that can be met by personal loans as the important thing to remember is that these loans are unsecured loans and are not restricted to any particular use.

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There are certain times when you require funds quickly for wedding expenses, travelling somewhere or a medical emergency and many more. In such situations, you may or may not have savings to redeem or any asset to pledge. Hence, a Personal Loan can be savior in these tough times. Most of the lending institutions in the market allow you to grab a Personal Loan without any collateral and don’t lay down any restrictions on using the funds.

One must be careful about certain things before they “Apply For Personal Loan“ as the rate of interest charged on this loan is higher as compared to other types of secured loans. The rate of interest depends upon the borrower’s profile, needs and lender’s eligibility criteria. There are some factors which could be helpful in making an informed decision and to get the best offer available when it comes to calculate interest on personal loan.

Prepayment of a loan: The prepayment of any existing loan can help you to reduce the interest rate on loan to significant extent because repaying the loan earlier helps in reducing the amount of monthly installments and let you save interest to the extent of the repaid loan amount.

Pay outstanding debt: The multiple outstanding debts leaves you with less income flow to repay your personal loan resulting in higher rates of interest. Paying off your outstanding debt is a good idea as it lower downs the rates of interest. It is advisable to repay the debts with high interest rate followed by debts having lower interest rate. Therefore, repaying the loan faster will help in reducing the loan amount, thereby decreasing the interest burden.

Balance transfer: Personal loans being unsecured loans always have high rate of interest resulting in high cost borrowing. Thus, most of the lenders allow you the benefit of transferring the loan balance to the lenders who offer lower interest rates which will reduce your repayment burden to a particular extent.

Good credit score: The regular cash flow or stable income, low income to debt ratio as well as maintaining a good CIBIL score with a clear history of the repayments make sure the lender about your eligibility when you “Apply For Personal Loan Online“ or offline and helps you to avail better as well as lower rates of interest.

Debt consolidation loan: If you are already facing a stress of having multiple loans along with a personal loan then try to consolidate all your debts with a debt consolidation loan at lower rates in addition to other benefits to shed off the burden of repaying existing debts.

If you are looking out for a loan, then a Personal Loan from ShubhBank can help you to obtain the funds to fulfill your requirements with easily payable EMIs and flexible repayment period. Despite of which option you choose, staying committed to timely repayments will help you not to fall in the debt trap and solve all your questions to reduce the interest rate on personal loan.

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On the one hand, there is less paperwork because there is no need to verify any property in the case of bank housing loans. On the other hand, there are strict income standards to qualify for personal loans. But if you take the grade, you take only three days to receive personal loan- much less time than home or car loans.

So, here is the step-by-step break of the individual loan application process:

Step 1: Investigation with the financier:
The first step is to get closer to a lender. Whom do you contact Provide you with the creditors as much as possible and provide you with debt? Then negotiate with them to get the best interest rate. Once all the banks offer you the offers, choose your lender based on the information you have before.

Step 2: Collection of documents
You need to submit copies of Pan, aadhar and income documents along with passport size photograph .

Step 3: Visit Field Investigation Agency Representative
After submitting the documents, visit a field investigator to check out the facts provided by your home in the residence, office tenure, and so on. You need to be during this trip; Otherwise, the fact that the researchers you add actually adds, so the lender will force you to reject your loan application.

Step 4: Loan approval
After documents verification and loan eligibility check the required amount gets sanctioned .

Check the required document below:

• Proof of identity
• Address proof
• Bank statements
• Employment Certificates / Business Continuity Documents
• Salary Slips / ITR Filing
• Each of the aforementioned criteria varies, documents, wages, self-employment, and business people.
To “Get Your Personal Loan Approval” here are some tips:
• Check the Personal Credit Eligibility Criteria before applying
• Check your credit score
• Avoid multiple apps
• Provide real information
• Aim for the real loan amount
• Manage job stability

Once you require the loan in quick time , personal loan is the best way to provide you urgent necessity . You can check various online portals like shubhbank.com to access online eligibility and doorstep services for fast closure of the loan process . Nevertheless online checks gives you a fair idea about the competitive market rates and processing fees involved with various lenders.

A personal loan to pay off credit cards is often called as consolidation loan (CL). The idea is to get a credit card CL with a lower interest rate than what you’re paying on your card as well as a set repayment period. This way, you get a defined and fixed repayment plan.

 

Advantages of using a PL to pay off cards

PL will carry the biggest benefit if you’re currently paying high interest rates on multiple card accounts. Here’s why.

 

1. Potentially lower interest rate

A small change in your interest rate can make a big difference, that too if you have a lot of card outstanding. Keep in mind that there’s no guarantee your “Interest Rate will be lower on a Personal Loan“. It will depend on your creditworthiness.

 

2. A single payment

Various card outstanding payment through one consolidated finance can easy your repayment capacity and allows you to get rid of balance on card in defined time frame.For example, you won’t have to worry about various payment dates and amounts. Also it helps in being organized with single payment pattern as a constant EMI.

3. Quicker oystanding payoff

Constant repayment and monthly EMI may enable you to save more from income and interest part and thus repay in lesser time frame .

Since credit card often don’t have fixed repayment period the outstanding amount keeps on piling up. When the debt is high then you can not just get away with repayment just by paying minimum amount due .

 

Disadvantages of using a personal loan to pay off on cards

Despite multiple benefits for opting CL there exists certain demerits as well which cant be overlooked.

 

1. Potentially higher interest rates

Not all PL companies offer low interest rates. It all depends on your credit history and lender comfort .

 

2. You might not be able to afford it

Repayment on defined time for fixed EMI might break your budget amid your fixed spending and disturb your saving pattern for a short while .

 

3. You might have to pay a fee

Some PL companies charge a processing fees. This fee typically ranges from 1 percent to 6 percent of the loan amount. If you borrowed Rs15,000, for example, you’d pay between Rs150 and Rs900 upfront.

So, It depends on situation that using a personal loan to pay off credit cards could be more expensive although if the loan has a lower interest rate and offers fixed EMI .

 

Is a credit card consolidation loan the best move for you?

If you have a good repayment history and high-interest card debt, a combined loan could help you save money on interest and repay your debt sooner.

At the end of the day, make sure you’re taking the time to consider all your credit card debt consolidation options. Even if you don’t qualify for the best deals out there, you’ll have the knowledge you need to create your next action plan for paying off your credit cards effectively.

Individual engaged in using professional skill for commercial gain and profess any working activity is considered a self-employed professional. This term applies most readily to doctors, chartered accountants, lawyers , retail merchants and architects. Other profiles such as management consultants from other domain such as finance, supply chain, manufacturing, marketing, etc. as well as professionals from other activity and commercial areas such as HR consultants, teachers/tutors, fashion designers, commission sales agents for a variety of sectors, etc. are usually treated as self-employed individuals.

Banks has listed various specific professions that can be considered for funding on their individual financial merits . For example, doctors looking for loans to set up their own clinics are treated favorably by most lenders due to their steady income and relatively low risk profile.

For a self-employed professional, the risk profile as a borrower is more than that of a salaried person. Therefore, the lenders determine the eligibility of the borrower on the basis of past earnings. Generally, two years Income Tax returns, balance sheet and Profit & Loss statements are required to establish to ascertain borrowing ability, along with bank statements of the last 3-6 months to show creditworthiness of the individual and net portfolio assessment.

Lenders such as banks and other financial institutions offer two kinds of unsecured lending to self employed professionals .

1. Business Loans: Self employed can avail this loan If  practice continues for a period of three years or more, unsecured business loans can be availed of, on the basis of your previous years’ work performance and IT returns. These are effectively a form of personal loan to the business.
2. Personal loans: This is the most frequent form of unsecured loan availed of by self-employed professionals availed for quick money purpose, and is usually available for a tenure of 1-5 years. Amount of the loan, tenure and interest are at the discretion of the lender as per customer profile .

With the increase in numbers of self employed professionals and advent of mushrooming business opportunities , lending has become blessings for all those who need money for specific purpose in no time . Emerging India has witnessed tremendous growth in working opportunities and has enamored high class individuals opting for such professional to use their dynamic skills to earn manifold . Thus “Unsecured Loans” in the capacity of borrowers has turned to be a hot cake selling product for their immediate working capital needs . Shubhbank.com specializes in such products for the purpose of immediate lending from reputed banks and financial institutions .