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The Change of season & the last quarter of the year herald the coming of the much awaited festive season. This is an auspicious time which is marked all over the country with much fervour & gaiety.
As per the specific state or region it is celebrated as Navratri, Durga Pooja, Dussehra, Diwali or Chaat Pooja the essence being the same, the victory of good over evil & light over darkness. When families get together & conduct ceremonies as per the age old traditions pray for prosperity well being & extend their gratitude& thanksgiving to the Gods above.
It is a holiday time, to forget worries & stress of work enjoy this time with your loved ones, exchange gifts, distribute sweets, and invite friends & relatives over for get-togethers.
Salaried individuals look forward to receiving the annual bonus as per the Hindu calendar Business houses mark this time as the beginning of the New Year & pray to Lakshmi the goddess of wealth for prosperous times ahead.
The yearlong aspirations are fulfilled at this time whether it is buying a new car, moving into a new home or renovating the existing one or beginning of a new venture.
Planning for finance is the backbone of any celebration. If the savings have not been consistent or a constraint on the budget is causing stress credit lines are available to help you avail finances so that your dream celebrations are not hindered.
Credit cards are handy for spending when one falls short of cash when shopping or paying bills. A Credit Card is a good step in for an emergency requirement.
It is practical to pay for your purchases & bills via a credit card if there is enough balance in the Bank account to repay the amount on receipt of the statement month on month, but if Credit Card bills are not paid timely the interest charged is steep.
Buying a new car or purchasing electronics & household equipment can also be paid back by easy installement via an Auto Loan or mortgage.
Rather than build up various credit lines the most convenient option is to Apply For a Personal Loan with a Personal Loan one can easily plan all expenditures under a single repayment option. The rate of interest for a Personal Loan is most reasonable & it is easy to process.
So let there not be a hitch in your plans because of financial constraints plan your budget ahead & make sure you have enough resources to make this time special for you & your family.
Often when taking a Personal Loan an applicant may consider & bargain for the primary costs for the loan, such as the Rate of interest which will be charged on the funds taken, the Rate of interest is an important component, but there are other costs which are equally essential. What is the Personal Loan going to cost, will be determined by a total sum of all the charges involved.
Taking a comprehensive view of all the costs is important: bargaining on one component while overpaying on another relevant one may actually land up increasing the overall cost of the Personal Loan.
Here is an attempt to explain the working of Personal Loan costs for the benefit of Loan takers.
Is the major cost pertaining to a Personal Loan, the rate levied varies with the profile of the borrower & from Bank to Bank as per the policy of the particular Lender. The rate of Interest for a Personal Loan ranges from 10.99% to 22% per annum. Major points to be noted are:
| Details of Personal Loan disbursed | |
|---|---|
| Loan Amount | 1 Lakhs. |
| Rate of Interest | 15% @ reducing Balance |
| Tenure for Loan | 12 Months |
| EMI | 9,025.83 |
| Actual cost of the Personal Loan | |
|---|---|
| Interest amount charged for 12 months | 8,309.96 |
| Processing fees charged @ 1% | 1,000.00 (GST applicable on processing fees @ 18%) |
| Total Cost of the Personal Loan | 109,309.96 |
*As per the calculations above, a borrower taking a Loan amount of ₹ 1 Lakhs for tenure of 12 months will pay to the Lender ₹ 9309.96 as the cost of the loan.
The tenure is the time period within which the loan amount is granted is to be repaid to the Bank.
The standard tenure for a personal loan is for a minimum period of 12 months to a maximum of 60 months. An applicant can request for the required tenure to pay back the loan: the final decision remains with the Bank. The importance of Personal Loan tenure is not usually recognised, it plays a major role in the final cost of the Personal Loan.
Given below is an example of variations in the cost of a Personal Loan with a change in the Tenure.
| Tenure | 12 months | 24 months |
|---|---|---|
| Loan Amount | ₹ 1,00,000 | ₹ 1,00,000 |
| Rate of interest | 15% | 15% |
| EMI | 9025.83 | 4848.66 |
| Amount paid as interest | 8309.96 | 16367.84 |
| Total cost of loan | 18309.96 | 116367.84 |
As per the calculations above, we can note the variation in EMI being paid for the similar loan amount for 12 months as compared to 24 months. If an applicant can afford a costlier EMI & return the loan amount within 12 months there will be a marked saving in the interest amount paid as compared to a 24 months tenure.
The processing fee is the charge the Personal Loan applicant has to pay for the dispensation of the loan. An application goes through various stages including verification of the documents & the residence premises of the customer, before finally as per the decision of the underwriter the file is approved/ declined. The processing fee charged is as per the regulations of the Bank. From a complete waiver of the fee the charges can be up to 2.5% of the loan amount.
The processing fee is deducted from the loan amount at the time of disbursal.
| Example of the How Processing Fee Impacts the Cost of a Personal Loan | ||
|---|---|---|
| Processing fee | 1% | 2.50% |
| Loan Amount | ₹ 1,00,000 | ₹ 1,00,000 |
| Rate of interest | 15% | 14% |
| EMI | 9025.83 | 8978.81 |
| Amount paid as interest | 8309.96 | 7744.54 |
| Total cost of loan | 18309.96 | 17744.54 |
| 1000 | 2500 | |
| 19309.96 | 20244.54 | |
As per the example above it may be noted that an applicant willing to pay a higher rate of interest & take a discount on the processing fee may be well ahead in costs as compared to an applicant willing a reduced rate of interest.
The fore closure/ part payment facility refers to the option to pay back the loan or a part of principal, before the tenure. The applicant is not at freedom to do so at will but is governed by the clause of the agreement. Charges will also be applies as per the policy of the Bank.
The lock in period for a personal can be from 6 months to 12 months & a charge of 3% to 5% on the repayment of the principal amount.
If the Personal Loan has been taken as a bridging loan, or in an emergency with an intention to return funds as soon as possible, then choosing a Lender which allows a part payment or the fore closure of the Personal Loan without a penalty will work best.
Other charges for a Personal may cease to be important if the applicant can close or pay a part of the loan at will.
Being able to pay back the principal of the in parts, whenever there are surplus funds will override the interest factor as if a penalty is to be paid the cost of the Personal Loan will be much costlier.
Given below a comparison depicting Personal Loan costs with & without Fore closure charges.
| Personal Loan Details | |||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Personal Loan A | Personal Loan B | ||||||||||||||||||||||||||||
| Loan Amount | ₹ 1,00,000 | ₹ 1,00,000 | |||||||||||||||||||||||||||
| Rate of interest | 15% | 14% | |||||||||||||||||||||||||||
| EMI | 9025.83 | 8978.81 | |||||||||||||||||||||||||||
| Tenure | 12 months | 12 months | |||||||||||||||||||||||||||
| For closure charges | Nil | 3% | |||||||||||||||||||||||||||
| Total cost of loan | 18309.96 | 17744.54 | |||||||||||||||||||||||||||
| Difference of Costs Post Fore Closure | ||
|---|---|---|
| Personal Loan A | Personal Loan B | |
| Principal amount balance after 6 months | 51862.52 | 51739.17 |
| interest paid in 6 months | 6017.5 | 5611.44 |
| charges for fore closure | nil | 1552.17 |
| Total Cost of Personal Loan | 57880.02 | 58902.78 |
As per the example above the customer is ahead by paying an extra interest amount & being able to the close the Personal Loan account before the expiry of the tenure.
The need for the Personal Loan is an individual requirement & varies as per the customer, for one it may be an emergency where as another applicant may apply for a Personal Loan to renovate a home. The bottom line is that the terms should suitable to the customer & all the details regarding the repayment should be clear.
With the many options available it could get a little confusing to the applicant Allying with Yourloanadvisors.com will help to get the best terms available to fulfil your need, we give priority to understanding the customer’s profile, advice & enable them to procure a Personal Loan with the best financial terms.
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Personal Loan is a convenient option for securing funds at the time of an emergency or for fulfilling a Personal need. Popular reasons are for Weddings home renovation, for travel, education, medical expenses & shortfalls in an emergency situation.
As a Personal Loan is quick & easy to secure, it is fast becoming a popular source of funds for the salaried & self employed to fulfill needs for urgent financial requirements. For lenders it offers a quick turnaround for interest on finance issued for tenures of 12 to 60 months.
Before Applying for a Personal Loan it is important to know all the charges applicable & other costs that may be incurred during the course of repayment of the Loan.
No charges need to be paid upfront for a Personal Loan processing from any Bank or NBFC: the major charges that will affect your Personal costs are:
The Rate of Interest or (ROI) as is popularly known is the cost at which the funds are forwarded. The rate of Interest for a Personal Loan ranges from 11.29% up to 22% per annum.
It is charged @ monthly reducing balance which means that every installment paid to the Bank has a component of the interest & principal loan amount. The rate of interest for Personal Loans remains fixed for the entire tenure.
The rates of interest of a Personal Loan for which an applicant can shop around for vary from Bank to Bank as per the profile of the applicant, the monthly income & credit record.
The processing fees are the charges applicable by the Bank/NBFC for assessing the loan request, completing the verification & the underwriting requirements. The fees charged can be nil or up to 2.5% *of the Loan amount: which varies as per the policy of the Lender. It is a variable charge & discounts are given to account holders, applicants with a previous relationship, High income customers & applicants for increased loan amounts. For loan amount of 10 lakhs & above a maximum standard amount is applicable as a processing fee.
Fees for a Personal Loan are usually deducted from the loan amount where as in a mortgage an upfront fee is charged for legal formalities. The processing fee is non refundable post disbursal of the loan.
With the fast paced lifestyle of today, the need to cover all eventualities to be covered is fast becoming necessary. All Personal Loan lenders offer the applicant the choice of an insurance cover for repayment of their Personal Loan. It is not mandatory to take insurance for a Personal Loan.
As per the terms of the insurance policy the applicant will be covered for inability to pay for an interim period due to loss of job or medical emergency. In case of unforeseen circumstances when the applicant is not able to repay the loan amount borrowed, the insurance will take over.
The amount charged is generally 750/- *per lakhs. This amount can be taken upfront or can be embedded into the EMI.
A part payment or pre closure facility refers to the option to partially pay back or return the complete amount borrowed. This option is available to the applicant as per the rules & regulations of the Lending authority. Some organisations allow a foreclosure or part payment whenever there are extra funds at hand while others have a stipulated frame or a lock in period: this period could vary from 6 months to a year, the applicant has to pay 6 to 12 EMI’s before the Loan can be paid back.
Financers also differ in the fee to be applied for on the amount paid toward the loan from nil surcharges to 5%* of the amount. The fee to be paid on the principal balance of the Loan amount reduces with the increase in the loan amount paid back.
Before taking the Loan it is important to be aware of the policy for Part payment & for closure of the Personal Loan if the applicant intends to pay back the Loan prior to expiry of the full tenure.
If the need for the loan amount is fulfilled from an alternate source or the demand for the loan no longer exists or there has been a simple change of plans: if a Personal Loan is at the approval stage the applicant is allowed to cancel the request or take a lesser loan amount. But once the agreement is signed the loan amount will be transferred to the applicant’s Bank account electronically.
The applicant now wanting to return the funds will have to request for a cancellation of the loan.
The cost of the processing fees will have to be borne by the applicant with the charges applicable for the cancellation of the loan. Cancellation charges include a standard fee of 3000/-* & the interest for the number days after which the applicant has returned the funds.
The EMI or the installment for a Personal Loan borrowed will be electronically debited from the salary account on a designated date. Some Banks do issue an alert before the EMI date but it is the responsibility of the borrower to keep enough balance in the account to clear the installment: if there is a scarcity of funds & the EMI bounces the lender can be requested to represent the EMI.
In any case charges are applied for the return of each installment which can be from ₹ 50/-* to ₹ 500/-*, in addition extra interest will be charged for the number of days for which the amount remains unpaid. The interest charged is heavy @ 24% per annum.
In the event of a change of salary account with a change in employment, it is imperative that the applicant keeps a balance in the account or informs the Lending organisation & requests that the repayment mode be swapped. The repayment mode should be swapped prior to closing of the original account as under no circumstance should the EMI be returned as unpaid. It will show as a bounce in the track record whatever the reason for non payment may be. Charges for a swap of the repayment mode are 500/- * per transaction.
All documents giving details of the terms & conditions under which the Personal Loan is disbursed should be kept handy for future requirements. In case of non receipt of original documents pertaining to the Personal Loan the applicant should maintain a follow up with customer care. The requirement for the schedule of the personal loan, amortization & statement is bound to arise, for which the applicant can apply to the Bank charges for issuance of statement or a duplicate of any document is 500/- * per document.
As per the Tax department the current tax or GST applicable on all loan related services is levied @ 18%. These include processing fee, prepayment and part-payment charges, repayment mode swap charges, cancellation charges, missed repayment charges, duplicate statement issuance charges, etc. Other charges are the stamp duty & legal charges that can vary as per the lender norms.
It is essential to have the knowledge & awareness of all the charges that are applicable for a Personal from the time of Disbursal, through different phases up to the completion of the tenure. This will keep the consumer ahead to maximise savings & not have to bear expenses that are easily avoidable.
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The CIBIL Score is the rating given to individual on the basis of the performance of the various credit lines used by the customer a good credit score will enable the applicant to get easily the credit facility applied for. It is important to keep abreast of the Credit Score, as in time of a financial requirement there are no surprises in store.
The salient features of a CIBIL Score are the following;
The CIBIL Score is initiated from 300 points is a high risk category & goes up to 900 to a maximum, while closer to 900 is a low risk category.
A healthy credit score is anything above 725 points, most banks & NBFC’S consider a score above 725 points to be a minimum score to acquire easy credit, anything below may denote a late payment or a default.
A score of 650 points may be accepted for processing of a credit requirement of a loan or credit card if payment delays are not habitual & have happened due to an emergency or unavoidable circumstance.
A minimum credit history of 6 months is required to merit a CIBIL Score it could be in the form of a consumer loan, credit card, Personal Loan, auto loan or home loan.
Consumers with a Credit history of less than 6 months are given a credit rating from1 to 5.Closer to1 being a high risk category & closer to 5 being a low risk category.
Consumers with no credit history & hence no CIBIL record are given are given a score of – 1 on an enquiry to CIBIL, which means the candidate has not yet initiated the use of any credit facility.
It is advisable for an individual to start building a credit score as soon as employed & earning, it could start by Applying for a Credit Card usually Banks with which the salary account exists are liable to issue a credit card without a credit rating.
The age of the Credit history also contributes towards the CIBIL Score maintaining a credit card for a number of years with a regular payment recording or successfully completing the repayment of your Loan for the entire tenure will give a boost to your Credit score.
It is important to keep a watch on the credit score. Once a credit is taken it is important to keep a follow up & make sure that payments due are done on time, a casual or a careless attitude can prove dear. Using credit lines frequently, making payments on time & using a mix of Secure & unsecure credit are ways to boost your credit score.
Keep a strict check on the due date for the payment of your credit card dues or the EMI for your loan. Make it a routine check to make sure that there are enough funds in your salary account to clear the EMI on the scheduled date. If there is a lapse for some reason then make the payment as soon as possible.
A late payment within the 30 days bucket may not impact the credit score once in a while, but if payment is delayed regularly then it shows a habitual delay & the score will be affected.
It is the usage of credit which builds a credit score. Banks are apprehensive to lend to applicants whose credit score is -1.The Loan amounts forwarded may also be conservative leading to un fulfillment of the required finance amount. No Lender will be keen to lend large amounts to an applicant without a proven track record.
Usage of a Credit card or Personal Loan payments with monthly transactions being reported to CIBIL will keep the account active & enhance the Credit Score.
Applying for a Credit Card or loan should be done after a survey of all the market offerings and identifying the right Lender which will best fulfils the financial requirements. Sometimes in an emergency for funds, an applicant could forward the loan application to a number of Lenders in a bid to acquire funds quickly or to make a choice for the terms & conditions offered.
This could create a negative impact on the CIBIL Score of the applicant as every time a financial institution makes an enquiry to CIBIL to obtain a credit score, the CIBIL SCORE of the individual is reduced. A perfectly reasonable Credit Score of 750 basis points can come down as 10% of the credit score is dedicated to CIBIL inquiries.
Taking an Auto loan for purchase of a car or motorbike or a Home Loan to purchase a new property are secure loans which help build a Credit Score but simultaneously using a Credit card or a Personal Loan which are unsecure credit tools will boost your Credit Score tremendously.
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It is time to get over the winter blues & welcome the spring bringing with it warmth & sunshine to banish the cold & dreary days. The flowers bloom, the earth rejuvenates, so do the birds & bees.
There is a definite feeling of love & romance in the air looking forward to the Valentine Day & the summer ahead. It is also the time to plan your finances to make sure that your expenses can be easily met.
For buying that special valentine gift for your loved one, going on a holiday to your dream destination or just celebrating with your family create a financial cushion for yourself so that there are no holds barred to making this time special.
It is now possible to make this a memorable time by taking the following steps to create your financial support system.
Fulfill your wishes & live your dreams, but ensure your financial stability by spending the amount you can afford as getting into a debt is a vicious cycle, any default or delays in payments could further damage your credit history.
We at Yourloanadvisors.com provide financial services & debt consolidation solutions to make sure that you are able to make the best of the coming season of love & romance ahead.
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If an applicant applies for an amount which is not in tandem with the monthly income the loan application may be viewed negatively. A longer tenure may be applied so that the burden of repaying a larger installment is reduced but the loan amount approved by the Bank will be as per the eligibility criteria of the organization.
When forwarding a Personal Loan the major concern for the loan provider is the repayment factor, the applicant should be able to repay the loan timely. The monthly EMI should be easily affordable to the applicant i e there should not be any constraint on the budget of the month for the regular expenses.
Thus apply for the loan amount which can be repaid comfortably the return of the EMI or a delayed payment should be avoided under all circumstances as it could have serious repercussions for future credit requirements.
When there is an urgent need for finance, in the hurry to achieve funds via a Personal Loan one could think it is a good idea to apply to all the major loan providers. Regrettably this a negative strategy & could have a backlash with the following implications;
For more information do read our blog which gives complete guidance on how to identify & apply to the Bank which best fulfils your Personal loan requirement.
There is more to a Personal Loan than the primary charge of the rate of interest often when Applying for a Personal Loan the ROI or the rate of interest is considered as the only parameter to be measured, but equally essential are the following other factors to be considered.
The Monthly Installement (EMI) is the instrument for the payback of the Personal Loan it can be adjusted as per the tenure. If the current EMI creates a strain on the expenses apply for a longer tenure with a more affordable EMI. The Processing fees is the file charges or processing charges for the Personal Loan deducted by the Bank .Various Banks & NBFC’s charges may vary from nil up to 2.5% of the loan amount approved. Though the charges for the processing are not taken initially but will be deducted from the loan amount disbursed. For a loan amount of 5 lakhs processing fees of 2% incurs a cost of 10000/-.
A loan seeker may not be prepared for the deduction of this amount & may face a short fall for the loan amount required. Thus it is wise to negotiate the processing charges or apply to a Bank which has a discounted fee.
The pre closure or foreclosure charges; if the loan amount appended is required as a shortfall or for a limited period of time, the applicant may like to pay back the loan before the expiry of the tenure. In such a scenario there may be charges levied for pre closure of the loan. If the loan amount is required for a limited period it is advisable to check out the terms for foreclosure before applying for the Personal Loan or apply to a Bank which allow a fore closure without any penalty.
So prioritize the need it & be aware of complete costs when applying for a Personal Loan we at are there to assist our clients Free of charge & get them the best deal.
When applying for personal loan give clear & authentic documents: giving physical copies is preferable rather than forwarding them by mail.
The documents submitted for processing of a Personal Loan are of primary importance. They are representative of the applicant’s employment & personal details. Faulty documents can lead to a misrepresentation & unclear documents can lead to unnecessary delays in process.
Submitting documentation by mail can lead to documents being misused, the regulations of most banks demand that the application form be signed by the applicant to authorise the Bank to process the Personal Loan.
A onetime submission of all documents that are clear & have been signed & self attested by the applicant is the way to achieve a quick & a hassle free Personal Loan.
Yourloanadvisors.com enables the pickup of your documents from your home or office premise & provides a doorstep delivery of your Personal Loan.
Get your finances in order prior to applying for a Personal loan
Applying for a Personal Loan is the way to secure finance conveniently for personal needs but no lender is happy to give finance to an applicant who severely debt ridden & cannot fulfil the current obligations in hand. There could be a delay in payment of the current EMI’s due to an emergency situation or genuine shortage of funds, an application for a Personal Loan will get rejected if there has been a return or bounce of a loan EMI for the last three months or Credit Card dues are not being regularly.
In the above case it is better not to Apply For a Personal Loan as the application will be declined & the CIBIL Score will also take a hit. The best way forward is to contact us at Yourloanadvisors.com our experienced advisor will hand hold & guide you step by step to enable a debt consolidation & secure a Personal Loan successfully.
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A Personal Loan is a simple & effective way of securing finance for Personal needs. Many apprehensions & misunderstandings about the product leave applicants confused. Following information is provided for our customers to help distinguish Myths from Facts.
Myth- a Personal Loan is a Secure Loan. The applicant needs to secure an asset to obtain funds via a Personal Loan.
Fact – Personal Loan is an Unsecure Loan. The Personal loan is purely an unsecure loan the applicant taking the loan does not have to mortgage an asset the form of a property, jewellery or a fixed deposit to secure funds. Personal Loan marketed by leading Banks & NBFC is specifically characterized as unsecure the finance required by the loan seeker is forwarded solely on the basis of the profile & supporting documents.
Myth- The rate of interest for a Personal Loan is liable to change at any time during the tenure.
Fact – The rate of Interest for a Personal Loan is fixed at the time of disbursal of the amount. The interest rate is determined by the policy of the particular Bank/NBFC providing the loan. The interest rate being charged on the Personal Loan availed is confirmed to the applicant before the loan is disbursed. The Personal Loan agreement signed by the applicant clearly states the rate of interest to be charged: it remains constant for the entire tenure of the loan.
Myth- Acquiring a Personal Loan is a long & tedious process.
Fact- A personal loan is a fast & convenient way of securing funds for an urgent financial need. An applicant can secure funds within 72 hours of applying. Following the right guidelines, providing genuine details, authentic details & having a sound credit history are important factors that contribute towards the smooth processing of a Personal Loan. We at Yourloanadvisors.com provide doorstep delivery of Personal Loans to our valuable customers & help them to full fill their financial needs timely & without any hassle.
Myth – The Rate of Interest for a Personal Loans is very high.
Fact- The Personal Loan being an unsecure funding is provided at a higher rate as compared to secure loans such as a home loan. It is still the cheapest way to secure funds for personal needs. The interest rate charged for a Personal Loan is from 11% to 18% @ reducing balance. The fixed rate per annum is from 6% to 12%. Getting money without any security from the Bank via a Personal Loans is cheaper & easier than borrowing from private agencies or having mortgage an asset or jewellery.
Myth – The CIBIL data (records of Credit Bureau of India Ltd) is the accurate & the final authority on Credit worthiness.
Fact- The CIBIL is a private agency that keeps a record of all financial data. All major financial institutions Banks & NBFC’s submit details of all credit transactions of their customers to CIBIL.
The CIBIL in turn provides the Banks & Credit Institutions with the records of the credit history of an individual whenever required, or when an individual applies for financial assistance.
Screening the credit history of the applicant gives the Lending institution the confidence to forward further credit. If the credit history is flawed the Loan application will get rejected. While some Banks are willing to override a CIBIL issue other lenders may like to go by the book & reject the Personal Loan request.
It is always advantageous to know an applicant’s behaviour with credit before beginning a credit relationship & accessing the credit records but it is important to remember that the CIBIL records are not infallible.
Maintaining an accurate record of the entire working class, with similar names, date of birth & other similar characteristics is a huge challenge. A financial institute may also erroneously upload wrong data about a client. Technical glitches could also mar records.
Age old defaults are overlooked by Lending institutions if the applicant has been able to overcome a bad patch & restructure finances.
We at Yourloanadvisors help our customers to improve their CIBIL, amend or correct a wrong entry to clear the CIBIL mandate.
Myth – A CIBIL Score or a previous Credit record is mandatory to secure a Personal Loan.
Fact- the Personal Loan mandate for various lending institutions is governed by the individual policy. Some Banks & NBFC’s provide a personal loan to individuals who have a proven credit record; while others may consider it a worthy proposition to give Personal Loans to applicants who have never availed credit before. Loan seekers can apply to a credit institution that forwards Personal Loans to fresh applicants, although for first time borrowers the loan amount given may be conservative, it is worth the while to secure a Personal Loan & build a credit history.
Myth- All the Personal Loan lenders are similar; a rejection from one means a Blanket rejection.
Fact- There is no need to despair if a rejection has been issued for a Personal Loan Application.
There could be many reasons, due to which a personal loan application is declined. The profile of the applicant may not match the policy requirements the current employer may not feature in the approved list of companies or could be a simple verification issue.
The Personal Loan process is speedy one so there is always room for an error in process, most banks are willing to reassess the decision if the customer requests for a relook.
Unless the applicant been a chronic defaulter in former credit dealings or is unable to afford to pay the monthly instalment for the Loan the Need for a Personal Loan can be fulfilled.
Apply for a Personal Loan with Yourloanadvisors.com we will guide you to best of our abilities & will go to all lengths to ensure your Personal Loan experience is successfully managed.
On our Journey of marketing Financial Products, we have always tried our utmost to make customer services & need fulfillment our hallmark.
En route we have had the privilege of helping clients who had been facing undue pressures due to financial issues. With our experience & knowledge of all aspects of the Loan industry, we are poised to help our valued customers restore their peace of mind by helping them out of the debt trap.
This has only been possible with the support, confidence & patience that our customers have invested in us.
We are sharing from our records the details of individual experiences for the benefit of persons who could be facing similar issues: please know that there is help at hand.
Getting out of a Credit Card debt/ solving your credit Card over dues.
Name – Mahima Khanna (changed for privacy purposes)
Age – 30 years.
Net Salary – 40 k.
Personal Profile – Married with a 2 years old child.
Currently Employed with a Limited Company
Details of the financial predicament being faced
Mahima a married individual earning a respectable income, should not have been under any pressure. With her husband also drawing a handsome salary, meeting the monthly budget & indulging in lifestyle expenses should have been easy;
Problem being that Mahima had unknowingly garnered a Credit Card debt of 2.20 lakhs.
It all started with a few shopping sprees which went unaccounted. Thus the interest started building up & with a host of unavoidable expenses piling up before she knew the bills of her credit cards had become unmanageable.
For fear of facing flak from her husband she did not reveal to him the extent of her debts. She tried Applying for Personal Loan but her application not being presented & directed in the right manner, she faced a rejection & kept applying to various Banks with the same result.
Her CIBIL Score had also taken a hit because of the numerous enquiries being made to CIBIL from various Banks. The positive in her favour was that she had been paying the minimum balance due on her Credit Card bills without a default: as a result after paying her credit card dues she could barely manage her monthly expenses.
The Solution Mahima was referred to us by a colleague working in her office whom we had successfully helped in procuring a Personal Loan.
We helped her out of her Credit Card debt by taking the following steps;
Thus with planning, patience & Mahima’s confidence in our abilities & experience she was free from her debt burden.
Our endeavour Yourloanadvisors.com has always been to help our customers achieve their financial goals with the best terms & conditions available.
Our goal is Customer satisfaction & winning a Customer for always.
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A Personal Loan Balance Transfer Transfers a Personal Loan to a corresponding Bank to achieve better terms and conditions.
Choosing a Balance Transfer of a Personal Loan is made to obtain a lower interest rate on an existing Personal Loan. Banks are willing to offer minimal interest rates to take over a Personal Loan with a good track record of timely repayments.
So, both the Bank and the applicant will benefit from this manoeuvre. The Bank will increase its book size with a profitable account, while the applicant will enjoy a reduced EMI.
A Personal Loan Top-up is an extra amount to be added to an existing loan. Rather than applying for a fresh loan, the applicant finds applying for the loan amount needed as a Top-up convenient. The amount approved is added to the principal amount of the existing loan, and a new loan account is structured with a fresh EMI.
Applicants Applying for a Personal Balance Transfer can request additional funds or a Top-up. Prominent Banks, such as HDFC Bank, offer a Personal Loan Top-up with a Personal Loan Balance Transfer to HDFC Bank if the applicant fulfils the Top-up loan eligibility criteria.
The applicant must apply for the surplus amount required as a top-up with the application for a balance transfer. If the applicant is eligible for a Balance Transfer of a Personal Loan, the external Bank will check the top-up’s financial eligibility.
To be eligible for a Top-up Loan from HDFC Bank, other obligations such as Credit Card dues and EMI are being paid for different home loans, and auto loans are taken into account. The EMI for the personal loan after the Balance transfer is added to the other EMI paid the customer must be able to afford the surplus EMI after the budgetary demand for daily living expenses is met. To confirm the EMI, applicants can view our EMI Calculator before applying to check if the added obligation is affordable.
Once the Balance Transfer is approved, the Bank will consider the Top-up request and declare eligibility for the Top-up loan amount. The final loan will include the balance transfer amount with the Top-up a Banker’s cheque or draft is made for the Balance transfer amount, and the Top-up amount is credited directly to the customer’s account.
The loan amount’s EMI, including the Balance Transfer and Top-up, is presented to the applicant’s bank account for the tenure allotted.
If you require an additional Personal Loan amount, Applying for a Balance Transfer and a top-up together is the best deal, as it affects manifold savings.
Reduces Interest Rate: For a regular Personal Loan Top-up, the rate of interest applied will be at the rack rate or standard rate of interest applicable per the applicant’s profile, whereas the rate that will be for the top-up with the Balance Transfer is the lowest as per the market offering, which will considerably ease the monthly instalment being paid by the applicant.
Consistent Interest Rate: The interest rate for a Balance Transfer is fixed for all applicants, regardless of their net salary, current employer, or other factors considered while determining the interest rate and other terms and conditions. The interest rate applied after the balance transfer is 3 to 4% lower than the current rate. Moreover, the interest offer for the Balance Transfer will also apply to the additional loan amount applied for as a top-up!
Thus, the applicant will get the best interest rate possible, which is not available to him otherwise, for the current Personal Loan via a Balance Transfer, and an additional loan amount is required as a Top-up!
Ease of a Single EMI: Other advantages include the comfort of paying a single EMI for the total loan amount. Rather than following up on numerous EMIs, with a Top-up added to your balance transfer amount, you can fulfil the need for extra funds, get a discounted interest rate in a single process, and pay a consolidated instalment.
Facilitate additional financial eligibility with a Personal Loan Transfer to ICICI Bank, the applicant’s eligibility increases as the principal repaid to the parent Bank is deducted. Therefore, a customer can get the maximum loan amount as required. Additionally, with an extended tenure applied to the new loan clubbing, the Balance Transfer and Top Up will yield more incredible eligibility for Loan amount calculations.
If you are looking for a Personal Loan Balance Transfer, do not miss the opportunity to apply for an additional amount as a Top-up loan. With a single process, both the objectives of a Balance Transfer and Top are achieved. Contact us at Yourloanadvisors.com to help you make this profitable transaction!
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A Personal Loan is available to an applicant when the need for funds arises or to fulfil the aspirations of a good lifestyle for himself & his family.
Experiencing the conveniences & feasibility of obtaining funds via a Personal Loan of borrowing, the applicant is liable to apply for an additional amount of personal loan when required.
Applying to the same Bank with which a Personal loan already exists gives an additional sense of comfort to the loan applicant. The applicant can apply for an additional loan amount to the Bank as a Top up the Existing Loan Amount or as a Parallel Loan.
A Personal Loan Top Up is simply an addition to the existing Loan Amount.
A Personal Loan holder needing additional funds can ask for an extra amount to be added to the existing Personal Loan amount. General circumstances under which an applicant applies for a Top Up include the following.
Requirement for Additional Funds
Having been granted a Personal Loan the applicant can comfortably meet his obligations or use the money for his personal needs.
While applying for a Personal Loan it is advisable that the applicant calculate the amount of funds required & applies for the Loan amount accordingly. If there is a shortfall or additional funds are required the applicant can apply for additional amount as a Personal Loan Top to the Existing Personal Loan.
Condition to be met is that the applicant should be eligible for the ‘Top Up’.
Funds required for use in an Emergency
If the Loan seeker has an existing personal Loan he can look to taking funds as a Top Up to the Personal Loan if any medical or other emergency arise a request for a Personal Loan Top Up is liable to be processed quicker than a regular personal loan so it is a good idea to apply & expedite the disbursal of funds.
Amount of Personal loan granted is not sufficient
Often an applicant does not get the amount of Personal Loan needed or applied for. This could be due to any of the following reasons:
The applicant is given a chance to show a good repayment record for a few months & Apply for a Top up there after.
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