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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!

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.

All You Need to Know about Your Personal Loans

What are personal loans?

Personal loans are unsecured loans that you can take from a bank or a financial institution to meet your personal needs. A personal loan is a debt that you are required to repay in installments as per the lender’s repayment tenure. Moreover, lenders charge you an interest for the amount you borrow which is often higher than other loans.

Being an unsecured loan, you are not required to submit any collateral or warranty in lieu of the personal loan amount. However, defaulting on a personal loan can adversely affect your credit score.

What can you take a personal loan for?

A personal loan has no end use and so you can use it for whatever purpose you want to. It could be used to finance the following purpose –

  • Education
  • Wedding
  • Consolidation of debt
  • Business
  • Travel
  • Home renovation
  • Medical expenses
  • Emergency Situations

Eligibility

Every lender has different eligibility criteria to lend you a personal loan. However, as an overview they consider the following factors – your age, occupation, your income, the city you reside in and your capacity to repay.

Often there are different criteria for self-employed and salaried person.

Your eligibility is also determined by your credit score and credit history. While the amount of loan you get also depends on the city you live in.

Tips to help you get the best personal loan

 A personal loan is beneficial when you want to solve your urgent financial needs. It is easy and simple to avail with easy repayment duration so that you can repay the amount as per your convenience. If you are planning to avail a personal loan, look at these tips to get the best deal.

Lifestyle in Hong Kong

Hong Kong, officially called as Hong Kong Special Administrative Region of the People’s Republic of China is a city in southern China which welcomes you with its high skyscrapers, iconic skylines, lush green nature, delicious cuisine and dynamic Chinese culture. Hong Kong today is the world’s fourth most densely populated region and also a leading market for wealth management services due to its expensive lifestyle. To know more about it, let’s explore the lifestyle of Hong Kong, Asia’s World city.

Transportation

Commuting from one place to another is an easy breeze in Hong Kong. With well managed public transport systems you can go around conveniently and fast. The MTR system that includes trains, metro, buses and trams is a cheap and speedy mode of transportation in the city. Moreover, a prepaid travel card called the Octopus card makes it easier as you can recharge the card and use it for all the public transport mediums.

Accommodation

Accommodation is the biggest problem in Hong Kong. The place is small and the living space is scarce. As a result, a major percentage of people in the city lives in high rise apartments with high rents. Moreover, due to its compact spaces, it is also called the concrete jungle.

Public welfare

Hong Kong has an excellent public welfare facility. The government provides public healthcare for everyone who has a valid ID card. Many employment contracts also provide health care as one of the perks. Moreover, though the education system in private schools is expensive, it is of the highest quality.

Whether 

Hong Kong enjoys a subtropical climate with four distinguishable seasons. The city gets a considerable share of monsoons and often faces tropical storms and typhoons. However, the warning systems of the country are well equipped for extreme weather.

Tradition

Hong Kong is an amalgamation of western and eastern culture. People celebrate various festivals like Birthday of Tin Hay, The Spring Lantern Festival, The Hungry Ghost Festival, and the Chinese New Year.

Language 

Hong Kong has two official languages which are Cantonese Chinese and English. Most people speak English though all signs are in both. However, Mandarin Chinese is also spoken there.

Cost of living

Due to its expanding population and favourable living conditions, the cost of living in Hong Kong is rising at an alarming rate. As per the recent reports, Hong Kong is the 9th expensive city in the world and 3rd most expensive in Asia. Though the city is small, more and more people keep pouring in for its cultural vibrancy, cuisine and stable society. It leads to a steep rise in prices of not only accommodation but also of daily items like a cup of coffee.

Due to the high cost of living and the expensive lifestyle in Hong Kong, it might be difficult to manage your funds. Irrespective of your income, if you are not able to manage your money, you can opt for an expert help. To ensure that you secure the future of your family and also plan a comfortable life after your retirement, you can take the help of wealth managers. Wealth management is a professional process that helps you create, manage and grow your wealth.

A Simple Guide on How to Apply for a Personal Loan

Whether you want to buy a car, start a new business or consolidate your existing debts, a personal loan could be just the financial product that suits your needs. If you’re considering applying for a personal loan but don’t know where to start, you have come to the right place. In order to apply for a loan successfully, it important to have a basic understanding of the application process as well as understand how to choose a personal loan that matches your requirements.

This simple guide will take you through each stage of the application process so that you can pick the right personal loan and apply for it without any hassles. Here’s a step-by-step guide on how to apply for a personal loan: –

Check The Eligibility Criteria

Checking the eligibility criteria is the first step to apply for a personal loan. Checking the eligibility criteria beforehand entails plenty of advantages. Firstly, you will be saved from the prospect of losing processing fee, as there will be low chances of your application being rejected. Secondly, you can save a lot of time by avoiding rejection of your personal loan application. Thirdly, your credit score will not be negatively impacted. Given below is the general eligibility criteria for a personal loan application in Indonesia: –

  • Age – To qualify for a personal loan in Indonesia, you need to be at least 21 years of age or older, but not older than 60. For certain banks the age requirements for personal loans may be even tighter, requiring people to be under 55 or 50.
  • Income – In order to be eligible for a personal loan, you need a steady source of income so that the bank is convinced that you will be able to make the loan repayments. Since personal loans are unsecured loans, the income criteria for personal loans can be quite rigid. If you have a low income, your personal loan eligibility will be lower as compared to high earners.
  • Residency Status – In order to qualify for a personal loan, you will need to be an Indonesia citizen or have Permanent Resident (PR) status.
  • Credit Score – The bank conducts a thorough credit check before approving your loan application to ensure that you will be able to repay the loan. If you have a poor credit history, you may have to pay a higher loan interest rate or even deal with rejection. Therefore, if you have a bad credit history try to improve it before applying for a personal loan.

It’s important to remember that the eligibility criteria for personal loans may differ from bank to bank. You can easily find out the eligibility criteria for a particular bank by simply visiting their website and checking the personal loans section.

Compare Rates and Policies

Once you understand the eligibility criteria, the next step is to compare the rates at which different banks offer personal loans. Besides the personal loan interest rates, you can also compare factors such as loan tenure, pre-payment clause, processing charges and turnaround time for processing the loan. It’s important to compare such factors before applying for a loan as it will ensure that the loan will match his requirements

Different Ways to Apply for A Personal Loan

After you have compared various personal loan options, the next step is to actually apply for a personal loan. There are several ways to apply for a personal loan:

  • The Bank’s Website – Most banks in Indonesia offer online application facility for a personal Just visit the bank’s website and fill up the online application form. On completion of the online application, the bank will contact you with further instructions.
  • Bank’s Phone Helpline – Some banks let you apply for a personal loan with just a phone call. Once you call the bank, the bank representative will guide you through the entire process of the loan application. However, some banks may require you to visit a bank branch while others may fax or email you a form to fill and return via the same mode.

Walk into a branch – You can always walk into the nearest bank branch of your chosen personal loan provider and inquire about the loan application. Most banks in Indonesia, provide fast approval on personal loans with minimal documentation.

Avoid These Common Mistakes While Applying for a Credit Card

Applying for a credit card has never been easier thanks to online applications. All you need to do is complete the online application form and submit it online. Surely, applying for a credit card does not require a lot of effort nowadays, yet there still a possibility for mistakes. If you are not careful, some mistakes can cost you dearly. If you want to make the most of your credit cards, steer clear from the following mistakes while applying for a credit card.

Applying for Too Many Credit Cards Too Soon

While it might be tempting to apply for multiple credit cards to enjoy more benefits, credit card issuers don’t look favorably on multiple credit card applications especially if it’s done within a span of few days. If you apply for several credit cards every few days, your chances of getting approved go down with each subsequent application. Hence spacing out your credit card applications will not help your odds of your application approval but will prevent you from taking on a large risk of credit card debt.

Not Reading the Credit Card Terms Carefully

Visit the credit card website and find out the interest rate and fees instead of just relying on the name of the credit card or the initial advertisement. As a norm, credit card issuers are required to display the cost information on every credit card offer.

Applying for the First Credit Card You See

Although a certain credit card commercial or a pre-approved credit offer in the mail may seem like a great deal, it’s important to do a thorough comparison before applying for a certain credit card. There are numerous credit cards available in the market today. Hence, never settle for a credit card without looking at other available options.

Choosing a Credit Card Based on the Initial Benefits

Some credit cards lure customers with initial benefits such as signup rewards bonuses, no annual fee in the first year, introductory interest rate or double rewards. While the initial period with the credit card may be rewarding, it’s important to consider what the card will cost and benefit you in the second year and beyond.

Assuming Your Application is Going to Be Approved

A high income or a great credit score is not a guarantee for the approval of your credit card application. Factors like a high level of debt or too many recent applications could lead to your credit card application being rejected.

Applying For a Credit Card with Terrible Terms

Everybody wants to apply for a credit card with the lowest interest rate, amazing rewards and no annual fees. If you have a good credit score, you may not have a problem securing a good credit card. However, even if you have a bad credit score, that doesn’t mean you have to accept a credit card with an extremely high-interest rate or high annual fee.

Not Shopping Around

When it comes to credit cards, the market is teeming with choices. Hence, its only prudent to look at a few options before making the final decision. An online search is the easiest way to find and compare credit cards from various credit card issuers based on important factors such as rewards or interest rates.