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WHAT RULES TO FOLLOW WHILE TAKING AN ONLINE LOAN

Posted on Tuesday September 10th, 2019

India has been historically different in lending and borrowing culture. We’ve had friends and relatives lending us money for long decades in our culture, even people wouldn’t hesitate to help strangers facing financial troubles. That’s where the online lending fits the best as it helps the borrower to directly connect with moneylender through online portal. ShubhBank provides you an online platform that helps a person seeking any kind of loan as well as a person who looks for business opportunities. You just need to fulfill some basic criteria with some legal documents to apply for a loan. We will also help you in understanding what rules to follow while Taking an Online Loan. There are some following factors that can help you in securing a loan.

Timely repayment:-
Never miss a repayment of loan. Your loan repayment should be in discipline to make sure that you don’t miss the payment. Missing a monthly installment or delaying a payment is the key factors that can impact your credit history and reduces your chances of getting a loan in future.

Borrow according to your repayment capability:-
Try to take a loan amount that you can easily repay. The monthly outgo for all of your borrowings should not exceed 50% of your income. For example, if your income is 80,000 your total EMI amount should not exceed 40,000.

Keep your loan tenure short:-
The longer the tenure is, the bigger is the burden of interest rate on the borrower. The shorter the tenure is, the lower is the rate of interest. In loan tenure of 5 years, the rate of interest paid is 28.5% of the borrowed amount. If the tenure is 10 years then the rate of interest will raise to 57%.

Take Insurance for a big ticket:-
Financial experts advise that big-ticket borrowers should take insurance cover equal to the loan quantum. Most of the times, insurance policies linked to a loan are typically single premium plans. But the regular payment plans are the best way to insure you.

Switch to best lender for better rates:-
Online lending has become most attractive in today’s world and there are number of banks and NBFCs lending money to the needy. It’s good to compare between the interest rates offered by the different lenders. ShubhBank is offering an attractive rates of interest that makes sense to switch our loans considering the processing fee it should at-least gain you 2%.

Understand terms and conditions:-
Some lenders in the market are notorious for slipping in clauses that are loaded against the borrower. If you are unable to understand the tricky terms and conditions, get a financial advisor or chartered accountant to take a look at the agreement before signing it. And read the terms and conditions carefully to avoid unpleasant surprises in future.

You can apply for an attractive offer and great deals with best possible rates of interest and terms for Personal, Used Car, Business and Home Loan at ShubhBank.