Best Banks for Loan

There is some specific reason that makes it necessary outlined below-

Profit Sharing is not important

If someone has borrowed amount for business prospect and earn some benefits by using that amount then, it is not necessary to share benefits with respective bank and just EMI based repayment is required.

Easy to Purchase Expensive Service or Product

After loan availability, individual may look for expensive facilities like medial issues and other vital services with easy without thinking about any complication.

Invest Related Flexibility

After approval of loan amount bank never makes any interfere on utilization of amount and individual have full authority to utilize their amount the way wanted to, they may invest amount in business or in stock market. Bank never creates any type of issue between other party and customer; bank just asks to pay EMI always on time to keep things easier and secure.

Not necessary to repay amount

Customers need to repay overdraft amount on demand and this type of condition may create problem for respective customer. On demand repay is mandatory only in case of overdraft and in case of loan is not required to repay amount. In complete tenure, user avails guarantee to offer repayment facility of amount with ease.

Involvement of Parties

To perform loan transaction among one or more parties. In most of cases parties may be customer and respective bank. It may be rely on bank criteria and individual criteria and needs.

Taking Final Call on Processing

End of the day, it is bank that is responsible for taking final decision on application and request of amount approval. Sometimes bank may approve amount on partially, section wise or approval of amount on single call. In most of cases, customers personal information, his/her credit history and other required transaction related processing.

Loan Type or Mode of Loan

As we know that in most of cases, approve amount given is form of cash, in case of special requirement it can in other forms like input resources, raw material and required machineries to complete the task of particular person.

Applicable Interest Rate

This is one of the most vital and important factor that decides the plenty of things like applicant request and eligibility criteria and several other integral part boost interest towards responsibility of both customer and respective bank. Rate may vary with time and market research to make things easier and affordable for customers.

Distribution Pattern of Loan

A per policy of reserve bank of India (RBI), maximum number of time sanctioned amount transferred in current amount of existing customer and in case of new customer, bank ask to open current account first then further processing will be possible.

Tenure of Loan

There are several factors that play special role in deciding tenure of loan; some of them are reason for applying loan, loan type, previous credit history and transaction record of candidate. In most of cases people opt for loan especially short term, prompt use, long term and mid-term basis.

Repayment of Loan Amount

Bank avails loan on condition of repayment of approved amount along with applicable interest rate on monthly installment basis. Maximum times principal amount and interest rate play vital factor in repayment of total amount. In case of outstanding loan amount overall interest rate may affect the repayment amount along with repayment tenure.

To apply online user need to follow steps outlined below:

• First thing user need to do is explore all trending bank or financial institution information.
• Compare best plan of loan to make your selection easy.
• Then select best offers and facility providing loan plan.
• Read customers feedback regarding that offer from online sources.
• Validate loan provider records to avoid any future financial trap.
• After successful authentication of advertisement details complete the documentation of records.
• Once you submit all necessary details to loan provider bank or institution you will get your approved loan amount in your bank account.

• If your interest rate is good then you will get benefits in personal loan interest rate. So always maintain healthy credit score.
• Personal loan helps in income tax benefits too.
• Personal loan provides option to use your money as per your need.
• Easily approved by authorized bank or financial organization.
• In process of getting personal loan third party interference is not required.
• Banks avails various offers to attract customers.
• Customers can easily manage their expenses with Personal Loan Apps too.

Flexibility of end usage

Everyone has a different lifestyle and so does their needs and thus, this is what adds a significant advantage to personal loan applications. Unlike a car or home loan, there is no restriction on the financial resources to be used for a particular purpose. Therefore, the sum borrowed can be utilized for meeting a range of end-needs such as wedding, travelling, asset purchase, medical expenses, and so on. It’s an easy way to get out of financial crunch immediately.

No collateral needed

Another added advantage is the unsecured loan application that doesn’t demand any collateral against the loan, which means your assets remain safe in the process. Due to this nature, a personal loan tops the list while considering most affordable and significant sources to overcome emergency financial crunch.

Quick disbursal

In most of the cases, applicants already are offered with pre-approved loan offers and thus, the process is quite quick and hassle-free. It is no doubt that having a good credit score is a game winner in this process.

Fewer documents

Gone are the days when applicants need to submit a bulky file of required documents. Now, the loan application is processed with a fewer mandatory documents like KYC and income proof. This makes it faster to process the loan request.

Flexible repayment options

Though this feature may differ from bank to bank, but what’s in common is that every financial institution has flexible repayment feature to look out for. Applicant can choose from a range of repayment options such as EMIs, post-dated cheques, cash, and online payment. Typically, flexible tenures are available seeking for everyone’s specific need and budget.

Tax benefits

An additional advantage of a personal loan is the tax deduction an applicant can claim when using the sum granted for renovation or construction of a house. The benefit amount can be up to Rs 2 lakh as per Section 24B. However, it is essential for an applicant to provide adequate documentation or proof to show the utilisation of funds for the aforementioned purpose.

Credit score

Ultimately, this is the key factor considered by the lenders for any sort of loan approval. So, instead of getting the application rejected, it’s better to maintain a credit score of at least 700 or above to qualify the loan application. Checking the score earlier will give you a clear idea about your current financial position.

Interest rate

Compared to secured loans, unsecured loans generally comes with higher rate of interest. However, the interest rate also depends on certain key factors including monthly income, debt-to-income ratio, credit score, eligibility criteria, tenure, and proposed loan amount. Though the rate varies from bank to bank, many leading banks and NBFCs are offering personal loan at interest rates of as low as 11%.

Additional fees and charges

No, we are not talking about the interest rates, it’s about non-refundable fees and charges applicable on personal loan applications. Generally, the lender charges 2% or fixed amount processing charges to process the application further. Other fees and charges may include pre-payment charges, documentation charges, cheque pick up fees, and so on.

Repayment options

As aforementioned, loan repayment options may vary from bank to bank. Thus, it’s better to check whether the option, in which you are comfortable, is available with the lender.

Loan tenure

Check for the loan tenure period, which generally ranges from 3 months to up to 5 years.

Work on your credit score

Though the score is just a three-digit number, it is a key player in the finance sector. The credit score ranges between 300 and 900, wherein score close to 700 is considered good for loan application approvals. Therefore, if your score is below 700, try improving the score first and this could be done solely through making timely payments of ongoing loans and credits and maintaining a healthy debt-to-income ratio.

Have a steady monthly income

Credit score is directly proportional to monthly income. Thus, in order to ensure timely loan repayments, assure meeting minimum income criteria of the lender. As the lender doesn’t demands any collateral against the unsecured loan, monthly income becomes a significant criteria considered by the lenders.

Pay off existing debts

Chances are, personal loan application may get rejected if an applicant has higher prevailing debts. If an applicant possesses too many credit lines, the lender may consider the application as financially over-burdened and may end up in default. Thus, the best way to avoid such situations is by clearing existing debts first and then applying for a new one.

Incomplete or misleading information

While filling the application, make sure of providing factual and exact information in order to avoid personal loan application refusal.

Relevant loan amount request

No matter how much money you are required, the lender only sanctions the loan amount to which you are eligible for. If you apply for loan amount much higher than your eligibility, then chances are that the application might get rejected.

• First of all you need to submit your valid documents.
• Then, authorize bank will validate your eligibility regarding home loan.
• Then as per your eligibility authorize bank will decide home loan criteria.
• After approval of home loan you will get amount in your bank account.

• Applicants will get advantage in income tax payment.
• Home loan gives sense of accomplishment. Apart from these two there are so many benefits of home loan.

• Banks offers business loan with low interest rate, although its hard to get business loan.
• Banks provides benefits in income tax to respective companies.
• Business loans are secure and affordable. Applicants get some other remarkable benefits with these advantages.

• Applicant must be salaried or self employed.
• Applicants must belong to private limited firm or limited firm.
• Organization must be any service provider or manufacturer.
• Applicant business must be three year old.
• Applicant age must be between 21 to 65 years.
• Applicants must submit Income tax report of last 3 years.
• Minimum turnover of respective company must be 5 million per year along with 2 million profits.

Courses Covered

Post Graduation including degree & diplomas from UGC / Government or other authority approved institutions both in India and abroad. Professional courses like Chartered Accountancy are also covered.

Items Covered Under the Loan

Fees to the Institute, Library Fees, Cost of Course Material, Purchase of a Computer (upto 20% of the total Fees payable), Caution Deposits and likes (upto 10% of the Fees), and Cost of a Two Wheeler up to Rs. 50,000.

• Loan against Self Occupied Residential Property – Up to 65% of market value.
• Loan against Vacant Residential Property – Up to 50% of market value.
• Loan against Rented Residential Property – Up to 50% of market value.
• Loan against Self Occupied Commercial Property – Up to 60% of market value.
• Loan against Rented Commercial Property – Up to 60% of market value.
• Loan against Residential Plot – Up to 40% of market value.
• Loan against mixed use property – Up to 55% of market value.
• Loan against vacant Commercial Property – Up to 50% of market value.
• Loan against Industrial Property – Up to 60% of market value.

Easy availability

The key feature, or say aspect, of loan against property is that they are easily available. The whole process is quite convenient and hassle-free. The loan is available to both salaried and self-employed individuals and thus, there is no professional barrier to avail the loan.

One loan for all needs

Unlike car and home loan, there is no restriction on the end use of the sanctioned amount. This is somewhat similar to personal loan, but the only difference is an applicant needs to mortgage their property against the loan. Various needs like wedding arrangements, medical expenses, etc. can be met and thus, it is called as one loan for all your needs.

Lower interest

As it is a secured type of loan and doesn’t involve any risk of non-repayment of loan, the lender provides the loan at comparatively lower interest rate, which doesn’t leave any financial burden over the borrower.

Tax benefits

Borrowers can enjoy tax benefits if the loan against property is used for expanding the business. Though to avail the benefits, borrowers need to provide enough proof of the end usage of the loan amount.

Quick processing

Gone are the days when applicants need to stand in long queues and wait for their turn to fill a loan application form. With the digital transformation in technology, it is now easy to apply for loan online and get it sanctioned within 72 hours.

As the name suggests gold loan is offered against gold at attractive rates. It is the type of secured loan provided against collateral in the form of gold jewellery or coins. Thus, it is the saviour at times of urgent financial crunch. The lender sanctions amount equal to certain percentage of the market value of the pledged gold. So, if you are in need of money on urgent basis, then you can certainly go for short-term gold loan.

Instant assistance

Financial crisis can occur anytime, mostly when they are least expected. And at such situation, no one has enough time to rush to the bank, stand in long queues, and do all the formalities to apply for the loan. Therefore, gold loan comes handy at such times. All you need to do is deposit your gold with the lender and take home the sanctioned loan against the precious ornaments.

No CIBIL score check

Since it is a secured loan and doesn’t involve any risk of non-payment, the lender approves the loan without checking for applicant’s credit history or income. Also, the loan doesn’t have much impact on your CIBIL score.

High loan value

Applicants can avail loan for up to Rs.10 lakhs or even more without presenting any income stability proof. The loan is sanctioned based on the gold value, instead of applicant’s eligibility. Thus, you can rest assure to get the loan or credit for which you are in need.

Accurate evaluation

Another feature that tops the list of gold loan is that the applicant gets the fair value for the pledged gold. Lenders conduct an in-house evaluation of gold with a carat meter, which ensures additional security.

Flexible tenure

Applicant can choose the tenure according to their repayment capacity. The lender charges an interest rate on monthly basis, which the borrower has to repay along with the principal amount. There is no pre-payment or foreclosure charges involved and this makes the loan even more affordable.

When someone plan to buy new car for their family members especially for your parents, in case of any financial circumstances, individual prefer to borrow amount to buy car. Loan offering company gives plenty of times to respective person to repay the amount. Sometimes it is known as auto loan. Customer just needs to repay amount as per approved EMI on monthly basis to complete the repayment cycle on time.

The days when a whole family use to travel on a single bike or scooter are long gone as today it is quite affordable to own a four-wheeler. Even the middle class family can now afford owning a car. Undoubtedly, banks and financial institutions have made it possible by offering customized car loan offers to every income class.

Car loan has become an increasingly most popular way to prefer the comfort and safety of four-wheelers. With the increasing demand, banks and other financial lenders are competing with each other to win the customer by offering best competitive interest rates and other terms and conditions. However, with an abundance of choices, it seems challenging to pick the best car loan with the best interest rates and flexible EMIs along with other terms. Since the choice completely depends on individual circumstances, there are certain factors to be compared while getting a car loan.

CIBIL score

This is the key factor considered by the lenders and the rest of the loan terms are customized accordingly. Though each lender may have different minimum CIBIL score criteria, it is significant to check whether you meet the required criteria or not. Also, your credit report determines your eligibility for a loan. So, if the score is on the other side of minimum requirement, work first to improve the score.

New car vs. used car

While buying a new car is enticing, it is important to look at how much you could save by opting for used car instead. Meanwhile, look whether the lender offer used car loan and at what interest rates? Apart from the cost concern, there are other terms too for pre-owned and new car loans. So, compare those factors and terms to determine what suits best to your needs.

Interest rates

An interest rate is usually a key factor to choose the best car loan. The interest rate is the rate charged for the sanctioned money or principal value. Getting the best interest rates can actually help you save a lot of pennies.

Flexible EMIs

Not everyone falls under the same income class and thus, it becomes necessary to check the repayment options. However, it is better to go for short-term EMI plan as shorter the EMIs, lesser will be interest charged.

Lender’s market value

With the hype in car loan demand, several lenders have stepped into the finance world. They try to lure the customers with attractive deals, though with hidden terms and conditions. Therefore, before sealing the loan deal, it is significant to check for lender’s market value. It is probably not a good idea to go with a start-up financial institution unless it owns a good market value and goodwill.