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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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WHY SHUBHBANK IS A TOP BUSINESS LOAN LENDER?

Posted on Friday July 15th, 2022

A business loan is a financial solution which is designed to fund business operations. Similar to other types of credit, it involves the creation of debt which is paid back along with interest. There are several types of business loans offered in lending sector such an asset based financing, cash flow loans as well as microloans.

ShubhBank is popular for business loan because of its safety, transparency, quick disbursal and 24X7 customer supports. One can Apply For Business Loan to solve the issues that a small and medium business firms face in accessing quick and ample amount of funds for smooth business operations.

However, there are many lending institutions offering business loans but here are some noteworthy reasons why you should choose the ShubhBank for your financial requirements in expanding and operating the business.

Minimal Paperwork: We aim to provide an easy and convenient financial solution with a motive to solve the problems faced by various business companies in acquiring funds for growing their business. One can avail quick business funding with minimal paperwork making the loan procedure very simple.

Safe and secure process: Our institution follows all the mandated RBI guidelines and policies to secure your personal information and loan details, therefore one need not to worry about the credibility from where you are accessing the required funds and your data to be stolen.

Transparency: ShubhBank is one stop solution to give you a financial access at a single click on our website, small and medium scale business persons can borrow from us to avail monetary aid tailored to their needs at a speedy approval and transparent processing charges so that there would be no surprises later.

Fast processing: When you apply for a business loan at ShubhBank, you will get quick approval on your business loan from our institution, first check your eligibility and upload the required documents to get an easy approval on your loan application. The loan amount will be disbursed directly to your bank account within 2-3 business days.

Hassle-free process: We understand the need of an hour that monetary requirements are necessary. You might need cash urgently when the situation arises. You can also Apply For Business Loan Online where the application get approved within 1-2 business days if you are an eligible borrower and funds get directly credited to your bank account.

Multiple types of business loans: ShubhBank’s lending solutions will help you with multiple types of business loans such as term loans, line of credit and machinery loan etc. and you can borrow the specific one according to your needs and apply for a particular loan solution.

ShubhBank is an online as well as offline lending market place which is known as the best model to meet the cash requirements of various business companies to upgrade and expand their production units to reach the newer heights of success. We offer our customers a better loan experience, better guidance about products and services as well as give our borrowers a fast and convenient loan application process.


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HOW TO CHOOSE A RIGHT TENURE FOR PERSONAL LOAN?

Posted on Wednesday June 8th, 2022

Personal loan is referred to as all purpose loans which can be utilized to meet any financial need such as paying wedding expenses, starting up a new venture or other investment purposes etc. Nowadays, many banking and lending institutions offer personal loans in India without any kind of security. Therefore, personal loans are very popular as compared to other types of loans.

When you Apply For Personal Loan what affects more your budget is repayment tenure which involves EMI and payable interest. Choosing a longer or shorter tenure has its own pros and cons, so a right tenure on your loan is very important as it will help you to save a lot of bucks in future. Thus, we have listed some of the following factors to look upon while deciding loan tenure:

Loan quantum: The required money to be borrowed as a Personal Loan plays an effective role in finalizing loan tenure. If you are going for smaller amount, then there is no need to elongate your tenure but if you are planning for larger quantum, it is good to spread your repayment period for longer duration, so that there will be no burden on your financial health in long run.

Calculate rate of interest: Some of the factors are inter-related with each other such as interest rates, monthly installments and rate of interest. If you are securing a loan at higher interest rate, then you are charged with higher EMI and longer tenure. Hence, make sure to compare all the combinations of interest rates and loan tenors and choose one that is convenient for you.

Plan your monthly budget: Your monthly earnings and budget should be assessed to compare it with repayment terms by the lender. If you find that your monthly expenses take about 60-70% of your monthly salary, you can go easy on EMI amount of your loan. One can opt for shorter tenure on Personal Loan. If you can budget your monthly earnings in such a way that you can make high EMIs conveniently will be better option.

Clear current financial liabilities: A person who doesn’t have a good credit score then he/she has to pay higher rate of interest. Also, it will affect the duration of your repayment structure. If you are already paying off any existing loan then it can put a huge financial burden on your budget, making you extend the new loan tenure to pay off new EMIs. So, one must clear their existing financial liabilities to maintain a good credit history.

A Personal Loan is one of the most convenient loans in the lending market these days. Try to follow a stringent financial discipline so that your credit worthiness should not be affected and then Apply For Personal Loan Online. However, it is also advisable to study the offers well and compare the loan solutions offered by different lenders.

To avail comfortable loan tenure, visit ShubhBank and get the benefits like instant approval, less documentation and fast disbursal. Always remember, every penny counts so it is important to choose right loan tenure along with loan amount.


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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 FUND A HIGHER EDUCATION WITH PERSONAL LOAN?

Posted on Friday February 4th, 2022

However, professional and vocational degrees do not come cheap but attaining a higher education is important these days. Parents have to set aside a huge part of their earnings for the higher studies of their children and sometimes it can make them feel financially overburdened. They have to arrange funds from different sources such as FD withdrawals or retirement funds to pay the higher fee structure in a prestigious college.

Therefore, to avoid such situations, one should look for other ways to fund their child’s dream of higher studies that do not stress your finances. In case, you don’t need a huge amount of funds then you can Apply For Personal Loan to fund the education. Nowadays, lending sector has multiple options of Personal Loan that comes under pocket friendly interest rates as well as minimal eligibility criteria.

An education loan can also be an option but getting approved for it is not that simple as it requires an admission to good college with good ranks. There is an advantage of tax benefits as per section 80C of the income tax act on the personal loan that you going to use for educational purposes. Moreover, you don’t have to utilize your savings or emergency funds to pay the fees of the college.

Difference between Personal Loan and Education Loan:
If you need large amount of loan money to pay the tuition fees you may not get approved for a Personal Loan but one has great chances of approval on education loan for the same.

Study loan come with some in built features which means if you have any trouble in making the repayments once you graduate them you will be offered with some relief through forbearance programs of deferment by the specific lender which is not possible in the case of Personal Loan.

In the aspects of Personal Loan, one has to make the repayments towards the loan quantum soon after the disbursal of funds whereas study loans come with earning based repayment options where the installments can be adjusted to fit your pocket. Once your child completes his/her degree courses, you generally have a grace period of six to twelve months before starting any repayments.

There are no end usage restrictions on funds when you Apply For Personal Loan Online but qualifying for an education loan is not that simple as it demands good college as well as good marks.

The disbursal time for Personal Loan is so quick that you can get the loan money within 1-2 business days while it takes little more time to get the disbursal on study loan.

There are so many options to fund your higher studies in India or abroad such as using the parent’s savings to their retirement funds or taking a personal loan or education loan, it all depends upon your budget, earnings and requirements that which financial solution suits you the best to fulfill the dream of your child to be successful in life as well as easy on your pocket.