Category: Loans

Home loans are an integral part of home purchases due to high prices; many people cannot buy the property without the loans. The home loans are charged at interest rates of 6-9% per annum. The interest rates on the home loans are continuously declining as the Repo rate of RBI is continuously decreasing. The interest rates are becoming more and more attractive to home buyers. If the borrower pays the number of installments early, the buyer can avail rebate on the home loans amount and thus can avail discount on the repayment value. Therefore loans can be taken either on the fixed interest rates or else floating interest rates according to the borrower’s choice. In case of faster repayment of the loan amount, the borrower can save money on the interest repayment. The loans can be taken for a tenure of a maximum of 30 years, depending on the borrower’s age. These days, most banks have withdrawn the penalty being charged on the early repayment of installments; in fact, the banks offer a rebate on early repayment of the loans; thus, the borrower can save money against early repayment.

The banks charge a penalty on the non-repayment of the installments or the delay in payment of loans beyond the due date. Due to the banks’ bad debts are on the rise, banks expect that the borrower should repay the loans as early as possible. The banks approve the loans of only applicants with a minimum credit score of 700 points and above. However, sometimes banks may approve the applicants’ loans with a lower credit score on a higher interest basis. There are some lenders amongst the NBFC’s who charge home loans interest rates as high as 18%. The borrower can avail of competitive interest rates only in case of a good credit score. It is always better to prepay the installments as the borrower can become early debt-free from the liability of the loan. Banks also charge processing fees on the loans for the cost required for verification like credit score, third party verification of the documents, physical verification of the property.ETC. The applicant can avail of tax benefits under the income tax act 80C. The government of India encourages people to buy properties by availing of loans. The government aims for “housing for all” for the betterment of society and to boost the real estate sector.

Reasons for utilizing the annual bonus for early repayment of EMI:

• To become early debt-free:

Annual bonus is the bonus amount paid by the companies as part of the employee’s overall performance. The better the performance, the better is the bonus amount paid to the employee. Thus, if utilized for the early repayment of home loans, the tenure of the loans can get reduced, and the borrower can become early debt-free. Therefore it is always better to invest the excess amount gained for the faster payment of installments.

• Rebate gained on the installments:

The borrower can expect a rebate on the home loans to pay for the early repayment of the loans. As the bank’s NPA[non-performing assets] are increasing, there is a possible effect that banks encourage the borrowers to repay the loans as early as possible. Banks provide the rebate on the installments being paid. Thus the borrower can save money on the interest repayment and can become early debt-free.

• A better choice to prepay loans:

It is always recommended to repay the loans early as the borrower in the initial stage of prepayment can save money on the repayment of interest. The borrower should use the EMI calculator to estimate the amount of the installments. In the very rare case, there are banks that charge foreclosure charges; thus, the terms and conditions of the loans should be read thoroughly by the borrower. If no penalty is charged, the borrower should try to repay the amount as early as possible to become early debt-free.

• Improvement in CIBIL score:

The borrower’s credit score may get improved in case of the early payment of the installments. A better credit score helps the buyer to avail of future credits easily. Thus, utilizing the excess amount gained as an annual bonus can help the borrower improve their credit score even better. And also, for the future loans availed, the applicant can better negotiate the interest rates being charged, thus helping the borrower with the financial benefit through the improvement of credit score.

Conclusion:

The banks can provide the rebate to the borrower on early repayment. Thus the borrower can save money on the interest repayment, as banks are keen on recovering the money as early as possible. Thus, it is highly recommended that the borrower use the credit score to repay loans installments faster.

Sometimes in life, there comes a situation when we all need some extra cash to get through a tough time period. Just to do this, quick cash loans are designed so that you can face such situations easily. With Quick Cash Loans, you can easily get loans and easily pay them back.

Following are some advantages of Quick Cash Loans:

Instant Loan

As the name suggests, Quick Cash Loans can get you a loan almost immediately after applying. The process of applying for a quick cash loan is simple and quick, which can be done online, over the phone, and in person. There is no security or collateral involved in this type of loan; that’s why you don’t need to have long meetings with lenders to approve the loans. In other words, you don’t need to go through lengthy procedures to get your quick loan application approved; typically, you can get your quick loan application approved in 60 Seconds.

After your loan application is approved, the money is deposited in your bank account, which you can access the next business day. Whenever you are in need of urgent cash to pay bills or any other emergency, need Quick Loan can prove to be a life-changer.

No Credit Score Required to Get Quick Loan

Your credit score doesn’t matter if you are applying for a quick cash loan. It entirely depends on your job status and income. This means the lender needs to check the time period you have a job for and the salary you are receiving at the end of the month.

You just need to provide proof of your identification, income, and a valid bank account.

Quick Cash Loans will help you get through tough times without having to check your credit score. Even if you have no credit, great credit, or blemished credit, it won’t affect your loan application. However, there are some loan companies that report your repayment to the credit bureau, and as a result, the repayment shows on your credit report, which can come in handy while applying for the loan next time. Remember – you can always take easy personal loans.

Use the Money for Any Purpose

Quick cash loans can be used for anything you want, such as paying for rents, auto repair, tuition fee payments, bill payments, etc., unlike traditional loans. Moreover, you can use quick cash loans for having extra cash in your pocket while going for a vacation. You can use this money to plan an event at your house. There are no restrictions on how you are going to spend this money. Credit Score may not be required for traditional loans, but the lender will ask you the purpose you need the money for. Traditional loans can only be used for limited purposes such as mortgage loans to purchase a property, car loans to buy a vehicle, medical loans to pay your medical bills, or student loans to make tuition fee payments. However, with quick cash loans, you can do all these things along with many other things. With Quick Cash Loan, you can get through difficult times and do all those things that are beyond your budget. If you are short on your rental payments or you want to organize a big event, quick cash loans can help you with that.Quick cash loan applications are processed immediately. You can get cash in your account instantly and can use it for any purpose you want. Moreover, your credit score won’t matter to apply for a quick cash loan. With all these advantages, Quick Cash Loans can prove to be the best source of cash in difficult times.

On March 20, 2020, millions of Americans received notice that their student loans would hold a 0 percent interest rate for 60 days. The novel Covid-19 crisis moved lenders to slash their loan payment policies.

So, what did this mean for everyday borrowers? Does this sweeping change affect the APR on these borrowers’ loans? The answer is both yes and no.

Understanding how APR and interest rate are similar is key to your credit record. You should also know why they’re different and how to approach them. Here’s what you should know about both.

APR vs. Interest Rate

APR stands for annual percentage rate. Here’s where these terms may cause some confusion. The APR and interest rate both reflect the annual cost of a loan that borrowers must pay. However, the APR includes other fees.

Another key difference is that your monthly payment on loans is based on the interest rate, not your APR.

You can think of the APR as a more conclusive breakdown of your overall payments. Unlike the interest, your APR is considered the “true cost of borrowing.” The APR helps borrowers make more informed decisions on major loans than the interest rate.

According to the Federal Truth in Lending Act (TILA), every lender must disclose the APR to the borrower. As the borrower, TILA allows you to make more informed decisions about significant loans.

This largely applies to mortgages and car loans. Some personal loans may be excluded from TILA.

Is It Better to Have a Lower APR or Interest Rate?

You still might wonder whether it’s better to have a lower interest rate or a lower APR. However, this all depends on which cost you prefer to pay more towards.

Your interest rate determines your monthly payments, but your APR determines the total cost of the loan. So if you’d rather have lower monthly payments, you’d look for loans with lower interest rates.

If you have a longer loan period, a lower interest rate might be more manageable for you. Prospective homeowners typically consider this when they’re comparing mortgage loans.

With mortgages, it’s also possible to lower your interest rate through mortgage points. Borrowers can purchase these points from lenders and cut the interest by a percentage. Typically, borrowers start by paying 1 percent of the mortgage to collect 1 mortgage point.

This can ultimately lower your monthly payments, but you’ll need to determine if it’s worth the extra fees.

Types of Loans

Depending on the type of loan you get, you can have fairly high or low interest and APR rates. Your loan either be secured or unsecured, which factors into these costs.

However private and federal loans also offer vastly different interest and APR rates. Private institutions can charge borrowers at their own discretion. Meanwhile, federal institutions are more regulated and have more predictable rates.

• Mortgage
• Home Equity Loans
• Auto Loans
• Student Loans
• Personal loans

However, federal loan APRs tend to be lower than private loans and are often lower than 10 percent. Mortgage, home equity loans, and auto loans tend to have APRs lower than 8 percent. They often even have rates lower than 5 percent.

Part of the reason is that real estate and auto loans are secured. Lenders are entitled to take away loaned physical assets such as a house or car for borrowing collateral. Unsecured loans such as student loans don’t have this physical collateral to keep borrowers paying faithfully. So, you can expect these loans to have much higher interest rates and APRs.

Personal loans can have the highest APRs, some exceeding 30 percent. Student loans tend to have lower APRs, less than 20 percent.

You can view rates for different types of loans and learn how to manage them here.

Comparing Loans

Before you compare any loans you’ll need to know which type of loan you have. Be sure to determine whether the loan includes fixed-rate or adjustable-rate interest rates and APRs. Mortgage loans often carry both fixed-rate and adjustable-rate plans.

If you have a fixed-rate mortgage, you’ll pay the same amount for the lifetime of the loan. However, an adjustable-rate mortgage (ARM) fluctuates.

Your interest rates increase over the lifespan of your loan. There are lifetime rate thresholds that control this increase.

Tips and Tricks

As a rule of thumb, remember not to compare fixed-rate APRs with ARMs.

You can review official loan estimate government documents from each lender. Since these are standard forms, you can always locate the interest rate on the first page of the form. Likewise, you can always locate the APR on the third page.

Once you locate the interest rates and APR for each lender, you’ll have a much clearer comparison. Know that even though one lender’s interest rates may be higher, they might offer a better deal if their APR is lower.

ARMs also use loan estimate forms but they don’t show the increased rate over time. Because they fluctuate, ARMs can be harder to compare to find the best deal.

In addition to using these forms, you should use an APR calculator. Be sure to factor in the span of time that each rate changes in. Some APRs can increase much higher within the first five years than another APR after the first ten.

APR Fees

Other fees such as credit reporting costs may not be reflected by the APR. You should ask your lender what fees are included and excluded from the APR so that you don’t have any surprise expenses. Here are the standard fees included in your APR:

• Broker fees
• Loan origination fees (loan opening fee)
• Premiums
• Discount points

Credit cards often have different APR applications than other types of loans. They carry APR fees based on transactions that only apply to credit cards:

• Introductory APR
• Purchase APR
• Penalty APR
• Balance Transfer APR

Lenders collect an introductory APR when borrowers first open their account. However, many lenders offer a 0 percent introductory APR for at least 12 months.

Other APR fees such as purchase and penalty APR occur from payment or credit line penalties.

If you don’t fulfill payments on time, you’ll have a purchase APR fee to pay on top of your next purchase. In addition, you may need to pay a penalty APR for making late payments.

Lastly, a balance transfer APR occurs when you move the credit balance from one card to another. Introductory APR may apply to the new card after you make the transfer.

Managing the APR and Interest Rates on Your Loans

If you need help managing multiple loans at a time, you may want to consider consolidating them.

On the other hand, it may be helpful to hire a credit advisor to help you with consolidation or simply answer your questions about APR and interest rates.

You can also find some answers right here on our site. Be sure to check out more articles to stay sharp!

Are you thinking of taking out a loan?

If we’re being honest, who isn’t? Although personal loans were pretty popular, there’s no doubt their popularity has hit peak levels in 2020. With the COVID-19 pandemic sending millions of workers out of employment and wreaking the economy overall, so many people are in need of financial aid.

Getting a loan is an ideal way to raise the money you need to make ends meet. But then, there are several types of loans in the personal lending market.

In this article, our focus is on car title loans.

Continue reading to learn more about this type of loan before getting one.

1. A Car Title Loan Is Secured

Broadly speaking, loans are subdivided into two major categories: secured loans and unsecured loans.

A secured loan requires the borrower to put forth a collateral item. This could be a house, car, or any other valuable asset. On the other hand, unsecured loans don’t need any form of collateral. The lender typically relies on your creditworthiness and income security to make a lending decision.

Car title loans fall under the secured loans category.

If you own a car, you can use it to secure a loan from your local bank, credit union, or any other lender. All you need to do is present your title to the lender and make the application.

2. You Need to Own the Car Outright Or Have Equity in It

Having a car doesn’t automatically mean you’ll qualify for a car title loan.

First, the car needs to have value. If it’s a clunker, nobody is going to approve your loan application.

The car’s value should be higher than the loan amount you’re looking to borrow. For example, if you’re looking to borrow $10,000, your car’s value should range from $15,000 to $20,000 or higher. Lenders will typically give you up to 80 percent of the car’s value.

Second, you need to have a clear ownership title. This means you’re the sole owner. If you co-own the car with a lender (you’re still paying an auto loan on the car), you should have positive equity in it.

3. Car Titles Loans Charge a Higher Interest

If you’re going in for a car title loan, be prepared to be slapped with higher interest rates.

According to the Federal Trade Commission, the average interest rate on a title loan is 25 percent a month. This is a 300 percent APR. In contrast, the APR on a traditional personal loan issued by a bank is 9 percent.

Evidently, car title loans don’t come cheap. This should tell you everything you need to know about them: they’re to be avoided.

However, if you’re in a pressing financial emergency, you can go for it, as they’re approved quickly and it won’t matter whether you have bad or good credit.

Car Title Loans: Approach with Caution

Cat title loans have their fair share of pros and cons, but if there’s one thing that can sum them, it’s this: expensive. Considering the high-interest rate, you might want to exhaust your options before getting one.

Need more helpful tips on personal finances? Explore our blog!

Not including home mortgages, the average American carries $38,000 in personal debt.

In the context of a global pandemic, paying off those debts has become increasingly difficult. But you may have a pile of cash in a place you never expected. That is, in the form of your car.

Car title loans can help you transform your car into cash, without ever losing the ability to use it as you normally do. Before signing on the dotted line, there are a few key things you need to know about how car title loans work.

We’ll tell you the most important things you need to know about car title loans and their benefits below.

What Are Car Title Loans?

Title loans are loans that require you to put up one of your assets as collateral. It follows that a car title loan is a loan that requires you to use your car as collateral. These types of loans are also available for trucks, motorcycles, boats, and other recreational vehicles.

Qualifying for a car title loan means that you own your car. There can’t be any liens on your vehicle or you must have at least some equity. If you’re approved, you’ll exchange the title of your vehicle for the loan amount.

Most lenders will also require a photo ID and proof of insurance. Some lenders may also ask for a second set of keys along with the title.

Benefits of Car Title Loans

If you’re ever in a situation where you require money quickly, a title loan allows you to borrow money against your vehicle. They can also be used to pay off pressing debts and lower your overall debt. To learn more about that, read this post.

You would choose a car title loan over other types of loans in these situations because they’re among the fastest ways to access a loan. With online applications processed in less than half an hour, they’re also simple.

Plus, they don’t take into consideration your credit rating, for those with bad or no credit. You get to keep your vehicle and use it as you normally would, all while covering a debt that could have otherwise been very difficult or impossible to pay.

How to Pay Back Car Title Loans

Car title loans may be single-payment loans or installment loans. Both types of payment plans have similar APRs.

Single payment loans require the borrower to pay the full amount of the loan plus interest, usually within 30 days. Installment loans are paid in installments, usually spanning 3 to 6 months.

More Debt-Related Advice

Car title loans are a quick and easy way to pay off pressing debts and address other financial emergencies. You’ll need to prove ownership of your vehicle and have a plan in place to pay it off within the terms of your loan.

And when you find yourself in a bad financial place, you can’t read enough advice. Be sure to check out our debt section regularly for the best advice you can find.

 

Are you thinking of applying for an instant personal loan? This could be a good decision in case you are in any kind of financial trouble. There are many situations in life when you need instant money to tide over unexpected problems.

You can in such a scenario, apply online for instant personal loan. There are some key benefits of instant personal loan which have been listed below:

Convenience

Convenience for the applicant is one of the key advantages of instant personal loan which attracts people towards this kind of loan. You can apply for this from home only. Most of theinstant personal loan lenders have come up with mobile applications that allow users to apply for such loans in minimal time. This makes it convenient for the applicant too and they can avail the loan easily.

Minimum documentation

Borrowers who seek instant personal loan have to deal with minimum documentation. Since the loan is processed online, it saves time and paper too. In case of a regular loan, repeated visits to the bank have to be made which are nowhere in the case of the loan being applied online.

Easy options for repayment

Earlier the repayment for such online loans was done through cheques but now the facility of online repayment has also started. Online lenders have developed a customized repayment system in which the automatic debit of the EMI amount is also allowed.

Decent interest rates

Loan amount ranging from Rs 25,000 to Rs 10 Lakh can be availed online. The interest rate which is usually charged in case of such loans ranges from 10% to 29% depending upon the loan amount. Though this is a bit higher than the normal bank loan, a factor worth considering here is that such loans are offered instantly and can help you deal with any kind of financial emergency instantly.

Privacy

The privacy of the customer is of utmost significance and online lenders have realized this point. They use the personal information of the user only for the purpose of the loan assessment. This information is not shared with anyone.

The bank-level security is used in case of online loans too and the data is kept safe with 128 bit SSL encryption. Thus, borrowers can be assured that their information is safe and it will not be misused in any case.

Easy to get the best deals

The entire process of loan sanctioning is done online. It is easy for the borrower to check out different exciting online loan deals since the different players in this market list all the information online. Help from customer care executives can also be sought and they will be readily available to customize the loan amount as per the need of the borrower.

EMI Calculation made easy

For people who are not very good at math, understanding the dynamics of EMI calculation is a tough task. In cases, when the loan is applied through the bank, the loan sanctioning officer does his or her own calculations and comes up with the EMI amount that the applicant would have to pay.

This, however, is not the case when it comes to online loan processing. Online loan lenders offer the facility of online EMI calculator where indicators like the loan amount and duration of the loan have to be filled. Thereafter, the EMI calculator comes up with the expected EMI amount. This makes it fairly easy for any borrower to understand the nature of monthly instalments he would have to pay on the loan amount.

Check out these benefits before you apply for the loan and get the best deal from the market.

For Australians, it wasn’t too long ago that the housing market wasn’t too good. Prices weren’t doing too good and real estate owners weren’t too happy. Now, from out of nowhere, the housing market in Australia is rebounding. So is now a good time to enter housing market? Let’s take a look at some issues first.

The decline

The Australian housing market was in a bad way a few years ago. Some sources say that around 2017 the prices slumped by about 22 percent. That’s pretty bad. Some say that this slump in prices was due to prices being overvalued, certain regulations passing, and loans becoming more strict. So how about now?

The rise

There’s been a recent surge in real estate activity that some experts say will last well into 2020 and beyond. What some experts think is that this is the result of a decent recovery. This makes sense considering the recent data showing that home values in areas like Melbourne are very close to showing positive returns.

The data continues to show that home values may rise by about 17 percent in areas like Melbourne and about 16 percent in places like Sydney. This is great considering these areas were hit pretty hard during the fall in real estate prices. So how do you get into the current home market, where can you get information?

Something like My Money House is a good source for getting information on financing a home so you can get into the current housing market. Here you can get info on home loans so you’re better prepared to enter the housing market.

Is it a good time?

With how things are looking yes. Think about it, the data shows that prices are set to rise, so if you already own a home this is good news for you already. If you’re not in the housing market and looking to invest or get your first home, even better. Not only would you be getting in on a recovering market but you would be securing a pretty good investment in general.

Markets that in a recovering status like these are good times to invest. There will be plenty of housing options, new money coming in, and just a general good vibe all around. This means that if you’re a real estate agent in Australia, then you’re going to be busy very soon.

Conclusion

Sometimes markets got through bad times, it happens. Now, these times don’t last very long and when recovery happens a boom can easily follow it. Australia went through some pretty challenging times with new regulations, nervous housing market investors, and change in general. Now things are looking up. The right thing to do now is to get information from a place like My Money House, get educated on what you need to do, and get involved in the housing market. Getting that dream home or real estate deal just got a lot easier.

End Of Article

Nowadays, maintaining a good lifestyle is becoming expensive. You can find yourself in urgent need of cash anytime. However, you can save yourself by applying for an instant personal loan through Upwards. Whether you want to buy a gift for your loved ones or want to pay the pending grocery bills, you can fulfill all your requirements by availing an instant personal loan. The personal loan that Upwards offers is a type of unsecured loan, which caters to meet all your day to day needs. A personal loan eligibility calculator can be used to know the amount that you can borrow.

If you are applying for a loan offline, then it can take two to three days for approval. With Upwards, you can get an instant personal loan up to Rs 1 lakh in a hassle-free way.. You can avail a personal loan with minimal documentation and even without any guarantor or collateral. Hence, using Upwards for availing a personal loan can be one of the best options for you. However, many are not familiar with the eligibility criteria required to avail the loan.

Eligibility Criteria to Avail Upwards personal loan

With Upwards, you can get a personal loan easily if you match the lender’s eligibility criteria. Upwards loan eligibility criteria are as follows:

Residential details

While applying for a personal loan through Upwards, you don’t have to worry about factors such as credit score or your employment status To be eligible for a personal loan, you have to be a resident of India. Thus, you have to submit documents to prove your nationality.

Age of the applicant

For the approval of a personal loan, the age of the applicant plays a vital role. In case an applicant is underage, then he or she won’t be able to avail the loan. Hence, you must be above 21 years of age to get a personal loan from Upwards.

Salary of the applicant

No matter if you are self-employed or a salaried person, if you have a regular income, then you can take a personal loan from Upwards. It is essential to know that your loan eligibility criteria can be affected by several factors like your employee status, job location etc. In case you are a freelancer and work from home, you can still apply for a personal loan. But you have to submit your Income Tax return documents along with the loan application. Whether you work from home or you are a full-time employee, you need to have a minimum salary of Rs 17,000 per month.

Required documents

One needs to submit an identity proof such as Voter ID Card, PAN Card, Aadhaar Card, passport or driving license. Besides, you have to provide any document that proves your address like Ration Card, any utility bill and passport etc. To determine your repayment capability Upwards asks for your last three months bank statements or payslips. Apart from that, you may need to submit your job offer letter or a letter from the HRD to prove that you are working. In case you are a self-employed individual, then you have to provide your bank statements of both current and savings account to be eligible for the Upwards personal loan. Whereas, a salaried person needs to submit Form 16, last three months salary slip and previous six months bank statements along with the other documents.

Availing a personal loan through Upwards is easy because it involves minimal documentation process. The whole loan application process is done online, so you don’t have to submit any hard copy of the documents. These points, as mentioned above, may help you to know the Upwards personal loan eligibility process. Also, here’s a personal loan eligibility calculator that we recommend.

Availing a loan is in itself a big decision and to finalize a lender with lower interest rates, an equally challenging task. You compare the interest rates of several banks along with other charges, and apply for the personal loan. Few months down the line, you get to know, the other lender is offering a lower interest rate on personal loan, with added benefits. Now, when you inquire the details in-depth, you learn that you are shelling a greater sum of money in paying off-the debts of your personal loan.

You consider the various other factors and charges of the balance transfer, and understand that you can save big on transferring the loan account to a different lender. You then approach your existing lender and convey them your decision to transfer the loan account, being unsatisfied with the current interest rates.

This process of transferring the loan with the existing lender to a new lender mainly because of lower interest rate is termed as “Personal Loan Balance Transfer”.

How to do a balance transfer to a new lender

When you have figured out the new rates and other features with the new lender for the balance transfer, follow these below steps to process your loan account:

• Apply for the closure of loan account with the existing lender.

• Pay the foreclosure charges to the current lender and obtain a NOC.

• Approach the new lender and apply for the transfer of loan, by submitting the necessary documents.

• Submit the past loan track record and NOC from the previous lender.

• Sign the new loan agreement and the loan sanction letter.

• When the new lender disburses the loan, deposit the cheque or DD for the current outstanding amount, with the new lender.

• When the outstanding amount is received, the ECS and cheques will be cancelled by the previous lender and the loan account will be closed.

Documents required to furnish for the Personal Loan Balance Transfer

For Salaried:

• Identity Proof- Aadhar Card/Valid Passport/Voter Id/Driving License.

• Address Proof- Aadhaar Card/Electricity Bill/Rental Agreement/Passport.

• Last 6 months bank passbook or bank statement.

• Last 3 months salary slip or current salary certificate.

• Latest form 16

For Self Employed :

• PAN Card- Of Firm, Company or an Individual.

• Identity Proof – Aadhaar Card/Passport/Voter ID/Driving License/PAN Card

• Address Proof- Aadhaar Card/Passport/Driving License/Voter ID.

• Last 6-month bank statement.

• Latest Income Tax Returns along with Computation of Income, recent Balance Sheet along with Profit and Loss statement, certified by CA.

• Business Continuity Proof.

• Other business documents include – Certified copy of Memorandum of Association and Board Resolution, Sole Proprietorship Declaration or Certified copy of Partnership Deed.

Things to consider before you transfer your loan

Collateral and Security value – It is critical to understand the fees and charges with the new loan. A processing fees has already been paid by you with your first lender, and if you will again have to bear the fees with the new lender, it is important to analyse is it really worthy of transferring the loan.

Cash outflow – Consider the tenure period while transferring the loan account with the new lender. Interest rates might get reduced but a longer tenure implies more amount to be paid out to the lender. If after all the calculations, the amount to be paid, whether in terms of interest rates or of tenure, then there is no logic in transferring the loan.

Reading the fine print – The introductory rate which the bank offers lasts for a predetermined period of time, usually for six to 18 months after which it goes up. So, make sure you read the fine print of the loan agreement carefully before signing the loan agreement. It will save you from the potential pitfalls which you might face in future.

When you should consider for a balance transfer of the personal loan?

When the interest rate of the current lender is significantly high: It makes an absolute sense to compare the interest rates of various lenders. If you are paying a higher interest rate on your personal loan, which the other lender are offering at a significantly low rate, then you should consider to make a move.

The savings are less as compared to the charges: A thorough analysis of all the charges should be done before finalising the balance transfer. Only the lowered interest rates may not be a good deal to proceed with as other charges of foreclosure and processing might make up for the decrease in the EMIs. After paying off all the charges, if the amount saved is considerable, then a balance transfer is a viable option.

If there are minimal foreclosure and transfer charges – Festive season are a great time when the lenders usually come up with great deal on loans. Along with interest rates, processing fees and foreclosure charges are also reduced in order to gain the consumer base. You can grab the deal, of the Best personal loan online at your advantage, and save on the monthly outflow of installments. You can save a bigger amount by paying off the extra charges also.

When the loan is in initial stages : You can plan for a balance transfer, when your loan account is in the first phase. A balance transfer will not be beneficial if it is done towards a later stage, because a greater part of EMI goes towards interest payment during the beginning years.

Flexibility in tenure or other features – After taking the personal loan, you are promoted to a good role, with a good hike in payment. You wish to part pay the loan amount and your current lender is not agreeing to your request, you can plan for a balance transfer.

Take advantage of the employment scheme: If you are working with a reputed firm, lenders provide special interest rates to them. You can take the leverage if you are associated with such firms. Similar is with self employed individuals, where professionals like CA, Doctor, Architects are at advantage to avail such schemes.

If you find yourself paying off a higher amount as your debts, balance transfer is a good option to save those extra bucks. Look out for a different lender and after carefully assessing the details, go ahead with the process.

There are so many risks with the overcrowding traffic these days. People cannot afford to compromise work commitments on a regular basis and two-wheelers become the preferred choice. If you are convinced by the idea but unfortunately don’t have enough cash in your pocket, you can go for a two-wheeler scooter or loan. Two-wheelers help you navigate through the traffic easily and in the long run, you’d also realize that the overall expenses incurred on a bike are a lot lesser than that of a car. This is just one of the many basic reasons why the demand for two-wheeler vehicles is increasing every day in the market. In fact, it is almost safe to say that for every person who is always running errands, customer-friendly bike and scooter loan is a blessing.

Things You Need to Know Before Choosing the Right Bike Finance:

You might not want to end up paying more than what you should have. Ergo, before opting for a two-wheeler loan, you should do a thorough research of the market. Analyze the following factors precisely before you progress with sealing the deal.

• Low rate of interest
• Simple and easy application procedure
• Flexible repayment schemes
• Quick approval

Choose a Bike or Scooter Loan with the Best Rate of Interest:

While analyzing scooter loans offered by the lending institutions, you must compare the interest rates that are charged by each one of them. Don’t be in a rush while making decisions and go for the loan from the first lender that you come across on the internet. Do a decent amount of research on which company has the best rate of interest to offer and then go for the best bike loan.

Customer-friendly Offers:

There are a lot of financial institutions that aim to provide customers with value for their investment. Majority of the companies extend seasonal offers which turn out to be beneficial in the scheme of your two-wheeler loan. These offers could be anything such as free insurance, discounts provided at the time of purchase, free gifts etc.

What should be Your Limit?

One of the major aspects of this two-wheeler loan guide is to familiarize you with the consequences of over borrowing. Over borrowing could become tragic for you in the future. Therefore, you should always be very responsible while taking financial decisions especially in the case of vehicles. It is very easy to get lured into buying a more luxurious model than what you had intended on buying, but you should always take into account your monthly income and other expenses before finalizing your EMI outflow. It is advised that you use an EMI calculator and calculate the amount of money that you can spend on the bike that you wish to purchase.

Have a Repayment Plan in Place:

Another very important benchmark of taking a two-wheeler loan is to have a proper repayment scheme in place before going further. Do not stretch a loan for too long in a bid to lessen the monthly expense. Your repayment tenure should be put in place after taking your monthly income in the notice. Your age should be kept in mind when you sign up for a repayment scheme. Also, you should go for a lender who is offering you flexible EMI options to repay your loan.