Serious Questions to Ask Before Applying for a Personal Loan

Your phone buzzes or you get an email pop-up saying you have a pre-approved loan facility. Isn’t it common these days? It certainly is a clever marketing strategy to make sure that you click on the link mentioned in that text or email. These kinds of messages flood your inbox throughout the day, but you must consider your need when you apply for a personal loan.

Sometimes there may be emergencies where availing a personal loan can be the last resort. That is when one should opt for a personal loan. While you apply for a personal loan, a few crucial questions should be assessed by every applicant. Evaluation of these questions helps in selecting the most effective cost loans for yourself.

Let us quickly run through the questions that you should be asking yourself while you apply for a personal loan-

What is a personal loan?
A personal loan is a form of borrowings that are not sought for any purpose in particular.
The utilization of such funds is not restricted and can be used for reasons like funding an emergency or relaxing on vacation. There are fixed rates of interest for such loans that differ among the various lenders.

How to apply for a personal loan?
The process is more or less the same for the different lenders. You can visit the nearest branch of your lender or even over the telephonic services if available. With the digital space growing leaps and bounds, one can apply for a personal loan via the online facility too.

Are there different types of personal loans?
Yes, there are two types of loans, namely a secured and unsecured loan. A secured loan is guaranteed by collateral. This collateral can be an asset which the lender can obtain ownership of in case of default by the borrower. Personal vehicles, jewellery, or other personal properties can be used as collaterals.
Another type of loan is an unsecured one where there is no requirement for any collateral against the funds borrowed. Such unsecured personal loans are based on your income, credit score, any pending debts due to the lender, and availability of credit.

What is my credit score?
A credit score is a measure used by the lender to determine your loan eligibility. The higher your credit score, the better it is. Generally, higher credit scores increase the chances of the full amount of loan applied for. You can check your credit score before you apply for a personal loan on payment of a nominal amount of fee. Analysis of the credit score helps you in getting a better understanding of the various debts having an impact on it.

How are my Finances?
Knowing your financial health helps in analyzing whether you can repay the amount so borrowed. A thorough analysis of your annual income and expenses helps in determining the serviceability of the debt. You sure do not want missed deadlines in repayments as they attract a hefty penalty.

How much should I borrow?
The most vital question to address when you apply for a personal loan is how much to borrow. This question should be addressed, keeping in mind your need and creditworthiness. Availing an amount that you are confident enough to pay is what you should borrow. This saves you from the hassle of using up the available credit limit.

How long will it take to pay off my loan?
Personal loans are available for different tenures. It is important to evaluate your capacity to pay the loans and select a tenure comfortable enough in which you can repay your loan. The tenure serves as an important factor in the determination of equated installments for each defined period.

What is the rate of interest?
The interest on your loan is an essential factor in determining the affordability of your loan. It determines how cheap or dear a loan will cost to the borrower from among the different lenders. Lenders often charge different rates of interest for different borrowers depending on their creditworthiness.

These are the few questions that can help you in deciding the terms and conditions for your loan. Make sure you read the fine print on your loan agreement keeping in mind the various charges, fees, and penalties. Lastly, make the best use of your personal loan to fund your needs. Select wise and choose the best!

The alternative Hot-list of Places to Go on Holiday in 2020

If you’re planning for a long getaway, away from the hustle-bustle of city life or you’re planning a surprise vacation for your family. Whether it is a trip to the lofty peaks in the Himalayas or the Andaman Islands in the south, you’ll be spoilt for choice when it comes to deciding where to go on your holidays. For travel loan in India you can apply for a travel loan and cover all the travel costs with ease.  There are a lot of banks that offer loans for travel finance. Getting a loan not only makes it easier to manage your travel expenses, but also helps you save on your personal savings.

Let’s have a look at the travel destinations in India that should surely be on top of your 2020 list.

Slovenia

A beautiful country in Central Europe that is known for its mountains, ski resorts, and lakes. Slovenia is covered in forests, and there are a lot of parks and reserves. Last year, the 270km Juliana Trail, a hiking route through the Julian Alps, takes walkers away from some of the most-visited parts of Triglav national park in a bid to combat over-tourism. At Bike Slovenia Green you can explore a multi-stage itinerary through the Julian Alps, around Lake Bohinj and Lake Bled and on to the Adriatic coast. The series of one-day cycling loops visit places that have a Slovenia Green certificates, such as the karst village of Komen, known for fresh cheese ravioli, fresh herbs, and prosciutto. Sweden

Gothenburg

This city has a cultural scene that includes Way Out West, a three-day summer music festival that is 100% vegetarian and has contributed to reducing its carbon footprint year on year. The Hagabion cafe and bar in the central Linné area are renowned for a vegetarian menu where people gather here, for a drink before moving on to the many other restaurants, bars, and venues nearby. Stick to the southern coastal path from the center to Särö island there are numerous spots for wild swimming at lakes in and around Gothenburg.

Val di Vara

The rolling Vara valley in north-west of Italy is not unusual in suffering a hemorrhage of young people from the rural communities but it is quite unusual in its response: going greener. Val di Vara Bio Festival is now an annual event that includes street food, games, livestock shows, and good music. In the past few years, young locals have opened five farms to the public and started 13 agriturismos, offering rustic rooms and farmhouse meals, plus jams, liqueurs, olive oil or meat to buy. Here you can have an organic lunch of corzetti pasta with walnut sauce at Albergo Amici in Varese Ligure, before stocking up on foodie gifts from, say, honey and fruit farm Cascina le Bosche or herb and saffron producer Le Piccole Erbe. Followed by a dinner that could be at the equally organic Antica Locanda Luigina in Mattarana.

Rotterdam

Rotterdam is a city that’s not afraid to experiment. From the architecture of Rem Koolhaas to the annual Rooftops Festival. Europe’s largest port Rotterdam is a fascinating living laboratory for anyone interested in what urban living might look like in the future. Many of the city’s innovations are focused on a waste-free circular economy. Rotterdam is home to the world’s first floating farm, where 32 cows are fed on scraps from local hotels and restaurants and produce milk for the city residents and manure for Rotterdam’s flowerbeds.

Menorca

Menorcans realized early that a sustainable approach to tourism was essential for avoiding the overdevelopment that has spoiled so much of the Mediterranean coast in Spain. A Unesco biosphere reserve since 1993, the island has crystal-clear waters, a thriving local culture, and unique gastronomy. The best way to access the white sandy beaches is via the Camí de Cavalls, an ancient path for mounted soldiers connecting defensive lookouts that encircle the island.

Financial Issues in a Marriage & How to Overcome Them

Most married couples have all sorts of disagreements from time to time. It’s the nature of being in a long-term relationship. No matter how much you love your spouse, there will always be occasions when times are tough and they might drive you crazy. Most of these problems are related to a lack of financial management, where they are constantly struggling to avoid financial disputes and arguments. Money is the number one cause of such disagreements between married couples. Hence, it’s important to be aware of the kind of problems that can arise, and the methods to overcome them.

At times a couple faces problems to finance their marriage to manage these expenses they can apply for a marriage loan. There are a lot of banks and lending institutions that provide marriage loans in India. So, good research on the financial market might get you a reliable source to avail a loan. Here are some of the financial issues in marriage faced by couples and some advice to help resolve them.

  • Different Financial Personalities

The first big financial problem that can affect marriages is when each partner has a different financial personality which means both partners think about money differently. A common division of personality might be that one partner is a spender who likes to buy new things and indulge in luxuries of life while the other partner is inherently a saver, preferring to seek bargains. This issue can lead to big problems if it’s not addressed. The way to handle it is expressing each of their concerns and working out a blended spending style that’s respectful of you and your partner’s needs.

  • Hidden Spending

It’s necessary for couples to talk about spending and money management openly as there’s a risk that one partner may hide their expenses from the other partner. If it’s not checked, it can turn into a problem and erode the trust between the two. While it may not be easy to talk about spending habits, it’s important to make it clear that part of your responsibility as a couple is to be open and upfront about such spending. You can also create monthly budgets to help you spend within agreed-upon limits.

  • Hidden Debt

What happens if one spouse runs up their debts and doesn’t inform their partner about them. This is a problem that people can bring into a relationship if they don’t reveal they’ve got a significant amount of debt on them. Your responsibility as a partner is to let your spouse know about everything including spending problems and you run up debt as it can affect them too. Letting them know about this earlier can help your situation as you both can start working on reducing the debt with a financial planner. That way, you’ll be able to pay it off and improve your finances.

  • Financial Power Plays

When one spouse earns more money than the other, one spouse chooses to stay at home after starting a family. Such situations have the tendency to create financial inequality and lead to resentment especially if it’s not something you talk about. To avoid this problem, have a conversation about what staying at home means for your relationship. The same is true if one partner makes a lot more than the other. To tackle this problem you both need to divide your expenses equitably and check in with one another regularly.

  • Money and Extended Families

This is one of the trickiest financial problems to navigate when one spouse has a family member who’s in financial distress. It’s natural to want to help people you love but it’s undeniably stressful when the money is not getting paid back. As you might imagine, the solution is honesty and transparency between both partners in any financial transactions involving your family. It’s important for both partners to understand each other’s situation and also be helpful to set healthy boundaries on how much loan can be provided and how much you’re willing to let it affect your lives.

5 Practices that will affect your Personal Loan Eligibility

Personal loans are a great credit instrument if you are looking to avail urgent funds. Easy eligibility criteria, simple application process, minimal documentation and flexible repayment options are some of the major benefits of availing a personal loan with leading financial institutions. Since the loan amount can be used for various purposes, personal loans are one of the most preferred financing options in times of emergencies. Nowadays, you can avail an instant personal loan online from the comfort of your home. However, you must make a note of certain aspects to ensure that your loan application is not rejected by the lender. Therefore, let us have a look at a few aspects that can affect your personal loan eligibility.

Not being aware of your credit score:

Your credit score plays a crucial role in determining your loan eligibility. Therefore, it is essential that you check your credit score before applying for a personal loan. You can check your credit score by visiting the CIBIL’s official website. Having an idea of your CIBIL score can give you fair understanding regarding whether your loan application will be accepted or not. A high credit score can increase your personal loan eligibility significantly. Therefore, you must work towards improving your credit score before applying for a loan. You can improve your credit score by clearing outstanding dues and making timely repayment of your existing loans.

Not checking your loan eligibility:

The personal loan eligibility criteria may differ from one financial institution to another. It is advisable that you compare various lenders before choosing the right lender for yourself. Also, check whether you satisfy the eligibility criteria set by that lender. You can check your loan eligibility by using an online loan eligibility calculator. This will give you a fair idea of whether your loan application will be accepted or not. Checking your loan eligibility beforehand will reduce the chances of rejection of your loan application.

Not keeping a track of credit utilization ratio

Credit utilization ratio is the ratio of the amount of debt you owe on your revolving credit accounts to the total credit available. If you have a high credit utilization ratio, it can affect your credit score significantly. Therefore, you must always keep a track of your credit utilization ratio and try to minimize it. Make sure that you do not over-utilize your credit card and use it wisely. This will help you boost your credit score and increase the chances of availing a personal loan.

Making multiple loan applications

Applying for multiple loans frequently or taking multiple credit cards can affect your chances of availing a new loan. This is because financial institutions make a hard check of your credit score when you apply for a personal loan, and this hampers your credit score negatively. Also, if you already have multiple outstanding dues to repay, the lender may consider you as a high risk borrower and hesitate in approving your loan application.

Not comparing various lenders

Since the interest rate on personal loans may vary from one lender to another. It is advisable that you compare various lenders before making a loan application. This will help you avail a loan that best suits your needs. Not comparing the financial institutions and applying for a personal without researching the lender can affect your loan eligibility. Therefore, it is also essential that you learn the terms and conditions of various lenders before making the final decision of applying for a personal loan.

Now that you have a better understanding of various factors that can affect your personal loan eligibility, make sure that you keep them in mind before applying for a loan. Also, once you avail the loan, it should be your prime responsibility to repay the loan within the stipulated time. If you have any queries while applying for a personal loan, you must seek the help of a financial advisor. This will help you make a well-informed decision.

Best Ways Personal Loans can Help You Save Your Money

Everyone goes through a financial crisis at some point in their life. At such times, availing a personal loan might make sense as they provide quick cash and can meet the immediate expense without blowing up all your savings. If you’re looking to consolidate high-interest debt or finance a large expense you can apply for a Bajaj Finserv personal loan and get the financial assistance you need. You just need to fulfill the personal loan eligibility criteria and documentation process. Once approved the loan amount will get disbursed in your account. Most personal loans are unsecured, meaning you are not required to pledge collateral on loans. If used properly, personal loans can help you save a lot of money.

What is a personal loan?

A Personal loan is a kind of unsecured loan that helps you meet your current financial needs. These loans could be used for anything from credit card debts consolidation, to refinance student loans, wedding expenses, home renovation, travel expenses, etc. While a personal loan might help you take care of unexpected expenses, they can also help you save money.

The following are some of the ways persona loans can help you can save money.

  • Lower interest rates

The rate of interest on a personal loan is comparatively lower than the credit cards. Therefore, personal loans can be used to make purchases in lieu of credit cards as a money-saving strategy.

  • Debt consolidation

Debt consolidation means opting for a loan to pay off other liabilities and debts. To avail a huge, low-interest rate personal loan, you need to pay off your other small, high-interest rate debts. By doing this you can save money on a high-interest student loan or your credit card bill, for example, by repaying them faster or at once using a personal loan. Remember to check with your bank about their prepayment policies as some money-lending institutions charge penalties or charge additional fees for not completing the loan tenure.

  • Claiming tax benefits

While availing a personal loan you can claim tax benefits. Under Income Tax Act, if a personal loan is availed to renovate a house or make a down-payment for it, then you are eligible to claim tax deductions of up to Rs. 2 lakhs under Section 24(b). In order to avail of this benefit, you will have to produce proper receipts and documents to the bank.

  • Smart repayment plans

You can choose to use the most appropriate repayment plan on your loan on the basis of your current and foreseeable financial status to enhance your savings. For those who are expecting their financial situation to get better in the near future, due to a promotion, for example, can apply for the step-up repayment option. The EMI scheme starts off at low-interest rates that gradually increase over time.

  • Cover big expense

With an instant personal loan you get the liberty to repay the money over the years in small installments. Since the interest rates on personal loans are quite low, it is a cheaper way to cover big purchases.

  • Improve credit score

When you avail a personal loan, the complete loan amount is to be repaid in a fixed period. And if you repay the loan in full at a given time, it not only lower your credit utilization ratio but also improves your CIBIL Score.

Top 5 Questions of a Business Loan Interview

A business loan is the most popular financing option for entrepreneurs looking to expand their business. However, before pitching a business loan request to the lender, entrepreneurs must prepare themselves thoroughly to boost their loan approval chances. Below, we are going to have a look at some of the most important questions that can be asked by the lender during the business loan interview. If you are an entrepreneur looking to avail a business loan, make sure that you keep yourself well-prepared for the following questions:

  1. What is your business plan?

It is essential that you plan your business strategy well in advance before applying for a business loan. Lenders may ask you your business plan to evaluate your repayment capacity. Therefore, a well-defined business plan can improve the chances of your loan approval. Make sure that your business plan includes important aspects such as, the future goals of your business, profit-generating factors of your business as well as funds required to purchase equipment and inventory, hire new staff, etc. This will reflect your seriousness towards your business, which may eventually boost your loan approval chances.

  1. How much loan amount do you need?

You should have a clear idea about the purpose behind availing the business loan. This will help you estimate the loan amount you would need. The reason of availing the loan could be upgrading infrastructure, promoting products, hiring staff, etc. Make a note of all such business requirements before pitching the loan request to a lender. Lenders will sanction your desired loan amount only if they are convinced the loan amount would be used wisely.

  1. What is your credit score?

Your credit score determines your current financial status. Therefore, lenders will certainly enquire you about your credit score and repayment history before approving your loan application. The higher your credit score, the higher will be your chances of getting the loan sanctioned. Thus, make sure that you work towards improving your personal as well as business credit score before applying for a business loan. A credit score of 750 or above is considered to a good score and lenders will likely approve your loan request, provided you satisfy other eligibility criteria

  1. Does your business have the repayment capacity?

Even after checking your credit score and repayment history, there are chances that the lender may ask this question. In such a scenario, you should elaborate on the future business plans. Also, explain the potential profit-making areas of your business to convince the lender about your repayment capacity.

  1. What collaterals are you providing?

 

  • Business loans are usually secured loans, wherein you have to pledge collateral to avail the loan amount. Collaterals are the security that protects lenders in case the borrower fails to repay the loan. Most lenders may enquire you about the collaterals before approving the loan. Also, the amount that you can borrow may depend upon the value of collaterals.
  • However, with some financial institutions, you can avail a business loan without providing any collateral. For instance, you can get a Bajaj Finserv Business Loan available at Finserv MARKETS at zero collateral. This keeps your valuable assets if you happen to default the loan.

Apart from being collateral-free, Bajaj Business Loans also have attractive interest rates, flexible repayment options, low processing charges and prepayment penalty, etc. Moreover, you can avail the loan amount within 24 hours. Minimal business loan documentation, Instant approval, and quick disbursal are some of the major benefits of Bajaj Finserv Business Loans.

What are The Different Types of Business Loan?

For entrepreneurs looking to avail funds for establishing or expanding their business, a business loan is nothing less than a blessing. With leading lending institutions, you can avail a business loan in a hassle-free manner from the comfort of your home. Online application process, simple eligibility criteria, minimal documentation, instant approval and quick disbursal of the loan amount are the key features of availing a loan from a leading financial institution. However, before availing a business loan, you must have a clear idea regarding the purpose behind availing the loan amount. This will help you avail a business loan that best suits your requirements. There are various types of business loan offered by lenders. Let us have a quick look at the types of business loan:

Professional loans

Professional loans are usually availed by self-employed doctors, lawyers and chartered accountants. The loan amount in case of professional loans may vary from one lender to another. Professional loans are usually long term loans that come with a repayment tenure of 5-7 years.

Working capital loans

Working capital loans are availed by businesses to carry out their daily operations. Working capital loans are unsecured loans that are approved quickly and do not require much documentation. The eligibility criteria is flexible and the application process is simple.

Overdraft

Overdraft loans are of great help when entrepreneurs require urgent money but don’t have sufficient balance in the account. In case of overdraft loans, the interest rate is charged only on the amount that has been withdrawn from the overdraft limit. Various factors such as the credit history, business cash flow, repayment history and your relationship with the lender, play a crucial role in determining your overdraft limit.

Term loan

The loan amount availed through a term loan can be utilized for both personal and business purposes. Term loans are a smart way of quickly increasing capital in order to enhance the supply of the business, or expand the business. One important thing to consider while availing a term loan is whether the interest rate is fixed or floating. With leading financial institutions, you can avail a term loan with flexible repayment options.

Now that you are well aware of the various types of business loans, ensure that you make the right choice while availing a loan for yourself. Before availing a business loan, you must compare various loan offers provided by different lenders. This will help you avail a loan that best suits your needs. You can apply for business loan at Finserv MARKETS in a hassle-free manner. A Bajaj Finserv Business Loan comes at attractive interest rate and with lucrative features such as flexible repayment option, less processing fees, prepayment facility, no hidden charges, quick approval and instant disbursal of the loan amount. You also get the option to customize your business loan according to your requirements. However, before you apply for a Bajaj business loan, make sure that you check your business loan eligibility. This will reduce the rejection chances of your business loan application.