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HOW TO FIX YOUR PERSONAL LOAN ELIGIBILITY?

Posted on Monday April 5th, 2021

Have you ever suffered a loan rejection? Do you know the reasons behind this rejection, if yes, and then do you want to improve your odds of your loan application approval? Before heading to the reasons, you must know how the loan processing works, steps involved in loan application that will make you eligible for re-application with better chances of approval. Generally, personal loans are unsecured type of loans that doesn’t require any security against them. You can Apply For Personal Loan from various lending institutions.

There is no standard set of documents that each lender asks for as it varies from lender to lender. Typically, you will need to submit these documents such as PAN card, address proof, last three months salary slips, latest bank statement etc. However, personal loans are the convenient form of debt but getting an approval could be challenging sometimes. There is a set of criteria that lender will ask for while considering your loan application. Let us have a look on some ways to fix your loan eligibility.

→ Review the reasons of loan rejection: To fix any problem, you must know the reasons behind it. There could be number of reasons for your loan rejection. Some of them may be low monthly income, bad credit score, inaccurate information, unstable profession, existing loans, number of loan enquiries etc. the lender will not take such things positively and may reject your loan application.

→ Improve on credit score: A credit score helps the lender to determine your creditworthiness. If you have a high score of 750 or more, you have greater chances to get your loan approved and you may also get an opportunity to secure a loan on low rate of interest. So it is crucial to build a strong credit history. To do so, it is important to make timely payments on your dues, credit card bills and existing loan repayments.

→ Maintain your debt-to-income ratio: This is the ratio that determines your debts with respect to your income. A higher ratio will reflect that you have too many debts and unable to repay your loan. Therefore, to maintain your ratio low, you must repay the existing debts before applying for new loan. In result, lender will be risk free to provide you personal loan at competitive interest rates.

→ Compare and borrow: Every loan enquiry adds up to your credit report and affects your score adversely. So, do a proper research about lender and compare the loan products online. Every lender has different set of eligibility criteria and rate of interest. You must choose the lender that caters your needs and provides you quick and convenient personal loan.

→ Check your documents before applying: Before you Apply For Personal Loan Online or offline, check your all documents in place. Do not provide any inaccurate information to comply with lender’s terms to face any rejection. Never make a rush before re-applying any loan.

At the end, do not get disheartened, if you get your personal loan rejected. Just follow the above mentioned steps to improve your chances of loan approval.


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WHAT ARE THE STAGES OF PERSONAL LOAN PROCESSING?

Posted on Wednesday February 3rd, 2021

Sometimes situations may arrive when your savings are not enough to cover your emergencies because spending all your savings in a single time is not a wise idea as it increases your potential financial risks in the long run and left you with no financial security to cover you back. There might be a solution for such situation where money is needed urgently apart from your monthly budget. In such case, borrowing will be the only solution left for you but what makes sense is choosing a right lender and perfect type of loan which has easy processing with simple terms. Personal Loan is such a financial tool where you get access to funds without pledging any security at budget-friendly interest rates.

With the revolution in technology with the lending sector, you can now secure a Personal Loan in much easier way. You can easily take a personal loan by visiting the websites of online lenders like ShubhBank or you can also pay a visit for offline loan. To apply for the loan, you just need to fill the loan application form by providing basic information what may lender ask you for. The online processing is fast and your loan gets approved in a shortest possible time. There are few stages of personal loan processing which we have listed below:

→ Loan Application: To start a loan processing, you have to fill a loan application form which can be found easily on the online platform of various lenders. The application form should be duly filled with all the genuine information. The form includes the section to provide your personal details such as name, address, age, employer with whom you are working and contact details such as email address or phone number.

→ Submission of documents: Once you complete the loan application form, lending institution will take the loan process ahead and will ask for the KYC documents to get submitted. A lender needs these documents of loan borrower to determine and verify the identity, age and income. These documents include Identity proof, residence proof, income proof etc.

→ Document verification: The verification process starts once you submit all your required documents with loan application form to the lender. Firstly, the lender will check the credit score when you Apply For Personal Loan and if you meet the criteria, the lender will move ahead to verify your provided documents. The primary verification includes your identity and address that you have filled in application form, then your income details are verified by cross checking with your employer or bank details. When lender finds your documents correct and you meet the eligibility criteria, you will be approved for loan.

→ Disbursal: Here, the lender drafts a loan agreement for you. It may include loan terms and conditions, the interest rate and tenure for which you are getting approved. If you are satisfied with all the terms and conditions, you need to sign the loan agreement. After that the loan money will get disbursed directly to your bank account. It is always advised to go through the terms and conditions carefully in the agreement before signing it.


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WHAT SMART WAYS TO ADOPT TO REDUCE LOAN BURDEN?

Posted on Friday January 15th, 2021

Loans are the credit tools that are capable of helping you in your tough financial times. It might be a personal loan that can be availed for multipurpose usage or a home loan that funds your home purchase but these helping tools have to be repaid, that’s too with accumulated interest rates, nowadays, availing a loan has become quite easy with the online availability, you just need to fill the Online Loan Application Form submit the required documents and have to fulfill the set of eligibility criteria of the particular lender and its approved. Once the loan money gets disbursed into your account, the repayment process starts including paying off the EMIs. If you have availed a loan by evaluating your income then you can be relaxed but if it is not analyzed properly then it can cause a serious trouble to you later.

Life is uncertain and throws up surprises sometimes at you which may hit your finances. Therefore, here are the smart ways to reduce the loan burden to make you feel stress-free.

→ Be in your budget: Whenever you think about managing your finances well, you have to start with a monthly budget. It gives you an idea of how much your expenditures are and teach you to live within your pocket. To make a budget, start with making a list of money you spend in previous month and after analyzing it, create a budget for the next month. Cut all the unnecessary expenses which will make you to save much more at the month end.

→ Grab the tax benefits: It is not necessary that all loans will bring you the tax benefits but the home loans do so. If you have decided to repay a housing loan which gives tax benefits, one must do a cost benefit post-tax evaluation. Instead of clearing such loans, you should focus on those loans which have higher rate of interest and do not offer tax benefits. Few times, it may be good to retain a loan which offers tax benefits.

→ Go for an affordable EMI: Securing a loan can be an easy game for many as they get quick access to the needed funds but it can be tough to repay it as you need to pay much more than the principal amount along with interest. So, to keep the loan journey easy, always Apply For Loan amount that can be affordable without hitting your monthly budget. Take the help of online EMI calculators to know your monthly installments in advance. A shorter tenure of loan can increase your EMI burden. Hence, try to calculate your repayment capacity and affordability before choosing your loan EMI amount.

→ Increase repayment with hike in income: To bump up the EMI with rising income is one of the easiest ways to reduce the loan burden. It will not only help to repay your loan faster but will also make you stress free. Increasing the EMI will end your loan sooner making you enable to focus on the other financial goals.

These are the some ways which should be followed by everyone and will help you to get rid of your loan burden faster.


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HOW TO ACHIEVE THE FINANCIAL GOALS IN NEW YEAR?

Posted on Wednesday December 30th, 2020

Financial goals are the savings, investment or expenditure targets you plan to achieve over a set period of time. The phase of life or the age you’re in usually determines what type of financial goals you wish to achieve. For example, if you’re a teenager, it may be an easy short-term goal like saving for a new pair of branded jeans or something more challenging like saving for a bike. On the flip side, an individual with a growing family would have a long-term goal of going from renting a house to owning his/her own home by taking Home Loan. Moreover, saving for a child’s higher education and saving for your own retirement are the other popular financial goals.

How a one can set the financial goals?
Setting the financial goals is not an easy steps, one has to be determined about his/her decision. So, we are there to help you by suggesting some steps to set the financial goals.

• Figure out what matters to you at first. Put everything, from the practical and crucial to the unusual and distant, on the table for inspection and evaluation.

• Examine out what’s within reach, what will take a little time, and what must be part of a long-term strategy.

• Apply a SMART goal strategy on yourself. Make certain that your ambitions are Specific, Measurable, Achievable, Relevant, and Timely.

• Create a realistic monthly budget. Get a strong hold on what’s you saving and what’s you spending, and then work on it to address your goals. Use your budget to plug leaks in your financial boat.

• Your realistic and practical layout and water-tight budget will show at least a handful of leftover money. How much that money is, get it automatically directed into a separate account designed to complete the first couple of things on your list of priorities.

• Monitor your progress with passing time. Ensure yourself that you are hitting the set benchmarks. If not, take some time in that case to re-evaluate what is wrong.

How to achieve the financial goals?
The best way to achieve your financial goals is by making a layout that prioritizes your savings and investments. When you evaluate your own expenses and savings, you’ll discover that some are wide and distant-reaching goals, while others are narrow in aspect. Your goals can be separated into three categories according to time period:

• Short-term financial goals take a couple of months to achieve. For instance, it may include taking a holiday trip, buying a new gadget or paying off a particular debt by taking Personal Loan.

• Mid-term financial goals can’t be achieved in a short time and can take too many years to get accomplished. To illustrate, it may include purchasing a dream car, finishing a degree course or certification, or paying off your existing debts.

• Long-term financial goals (more than five years) may take long years to get accomplished and, as a result, they require longer commitments, true determination and often more money. To exemplify, it might include buying own home, saving for a child’s higher education, or for a comfortable retirement.


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HOW TO GET GREAT TAX BENEFITS ON THESE LOANS?

Posted on Wednesday November 11th, 2020

Loans can be a savior during an emergency and they don’t have to trap you in debt over a period of time, if you manage your finances well. Even, you can get tax benefits from certain kind of loans. It is true that you could get some great tax deals on your loans. As per the income tax, 1961, government has levied some tax benefits that have been provided been provided to the borrowers to reduce the burden of tax repayment. Let’s have a look on some common loan options that offer tax benefits.

Home Loan: It is one of the biggest loan liabilities that a borrower can avail. The loan quantum and tenure can be high on Home Loan but the tax benefits that a customer reaps on it are pretty good too. It can benefit an individual in two ways. Firstly, the amount paid towards the principal qualifies a tax deduction under Section 80C of the Income Tax Act while another benefit comes from a deduction in the amount paid as interest on the loan. If one has his/her spouse as co-borrower, the deduction can be claimed by each of you. The tax benefits on home loan can only be availed after the construction is completed.If you are planning to sell your home within five years from the date of taking loan then say goodbye to tax benefits.

Study Loan: The government has put various measures to promote higher education in youth and people have become aware to venture out of the country to study. Nowadays, the cost of professional courses such as medical and engineering is still sky-rocketing in India as well as abroad. This is when study loans come in handy as they pave the way to your future. To enjoy the perks of tax benefits on your Study Loan, the loan should be borrowed from scheduled financial institution. The tax benefits to the borrower availing an education loan for pursuing the higher studies come under the Section 80E of the Income Tax Act. This advantage can be availed for maximum of eight years or on the tenure, whichever is applicable.

Personal Loan: It is a type of unsecured loan that offers a plethora of requirements. This loan is a lot easier to obtain without stating the purpose of borrowing it. The most common reason behind applying a Personal Loan is medical emergency, debt consolidation, travelling, higher education and many more. Most of the people tend to miss out the tax advantages on it as not many know this benefit of loan. Generally, the principal amount and charges of interest paid towards loan cannot be deducted for tax exemptions but you can claim the benefits if you are using the borrowed amount for home renovation.

Now you have a guide that if the loans are handled responsibly, they can help you plan your finances in a better way. The tax benefits are the fantastic offers provided on Home Loan, Study Loan and Personal Loan. If you are looking for a loan from above mentioned categories, just give them a shot.


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IN WHAT CIRCUMSTANCES YOU NEED TO BORROW MONEY?

Posted on Wednesday October 7th, 2020

Every person has different notion of borrowing, some might consider it ok to borrow money for short term as well as long term goals whereas some might be strictly against any sort of borrowing. However, in certain situations of life, we have no other option than to avail a loan. The misconception about taking a loan is not good for your finances couldn’t be ignored. The loans can help you in number of ways such a growing your business, get your child higher education; help you to buy your dream home or to invest in attractive business opportunity. However, if loan is not used correctly, it could trap you in vicious debt cycle. So here are some points listed in what circumstances you need to borrow money and there is no harm in it.

→ Medical Emergencies: An emergency can arise uncertainly, therefore, it is tough to be prepared if you are caught off-guard. If you don’t have any medical insurance to cover your emergency, then borrowing money is inevitable. Several lending institutions offer personal loans to help you take care of medical emergencies without worrying about huge bills of the hospital. However, do check the terms and conditions of the loan before borrowing it.

→ Higher Education: If you are worried about child’s future education, a loan against education could be an excellent option if you don’t have adequate savings. Most of the banks and NBFCs in India provide education loan to help the children fulfill their dreams. The financial institutions not only offer the lower interest rate when you Apply For Loan but also have longer repayment period.

→ Expanding Your Business: If someone wishes to grow their existing business, borrowing money might be a best option, if you are short of funds in account to fuel your expansion. With the easy cash flow in operational units, you can grow your business by leaps and bounds which can lead to increased sales and higher profits. Therefore, have a robust business plan to reflect the lender that how you want to use the loan money to expand your business with minimal risk.

→ Consolidating existing loan: You have taken multiple loans in past years and unable to manage them, then gold loan might be a good idea to avail a loan with high amount to pay the existing loan. The gold loans are offered on lowest possible interest rate that can save you money if you are paying higher interest rates. It not only helps to consolidate the loans but also helps to manage your debts better.

Now we have touched upon few circumstances why people might borrow money. Before you Apply For Loan Online do your homework by comparing the different lenders on internet and keeping in mind the different aspects of loan that how much money you really need and how much money can you comfortable repay in a decided tenure. A loan can turn into messy financial challenge if you mismanage it, so beware of your deeds.