Apply for a Personal Loan in a Medical Emergency

Although we try not to think about it, medical emergencies can and do happen from time to time.

It’s very rare that we’ll be prepared for these situations, and if the emergency is particularly serious, you’ll need to have a sizable amount of money on hand to treat yourself or your family members. That’s where an emergency personal loan comes in.

But how do you apply for an emergency loan? What are the conditions you’ll need to satisfy? 

What are Medical Loans?

When emergency conditions arise, you can ask your bank for an emergency medical loan, which is offered when treatments such as surgery, therapy, and other procedures are needed to get you or a family member back on your feet after a debilitating illness.

These loans are what we usually know to be personal loans, meaning that they are unsecured loans. The amount that you can qualify for depends on a number of factors, including your profession, your current salary, among others. 

If your medical emergency qualifies to be valid, then a bank and NBFcs will be ready to help you out with a personal loan for emergency. 

What are the Interest Rates that I can Get for these Loans?

Since you are essentially applying for a personal loan, the rate of interest that you will get is generally the same as any other personal loan.

If you want to see if you are eligible for a personal loan, go online and find a personal loan eligibility calculator, usually available on the website, such as Bajaj Finserv’s calculator, where you can enter all the necessary details and find out if you are eligible for a personal loan.

If you find that you are eligible, you can go ahead and apply for a personal loan at their office. 

What can I do to Get a Lower Rate of Interest on my Personal Loan?

If you’re looking up on what is personal loan interest rate for your medical emergency, there a few things that you should be aware of. As is the process with all loans, you will be subject to a financial check, to ensure that you can pay for your loan.

If the bank finds that you have a good credit history and proper time for payback of your bills and previous loans, they will usually charge a lower rate of interest.

Another thing that you can do is find a financial institution that is trustworthy and offers a lower rate of interest than others. This will help you avoid paying too much in the way of interest on the loan, since it can rack up to tremendous amounts over time.

One thing to be aware of is that your emergency has to be recognized by the bank as a valid medical emergency, so check up with your bank to ensure that you have a condition that can be valid. Otherwise, your application may be rejected.

Medical emergencies can be distressing to experience. The emotional aspect of the same can be compounded when you know you don’t have the money necessary to properly treat it.

That doesn’t have to be the case with emergency personal loans. With financial institutions such as Bajaj Finserv, you can rest assured that there is always a way to get yourself or your family members back on the path to recovery without too much worry.

Cash Flow: How to Select the Best Personal Loan for Your Circumstances

There comes a time in everyone's life when they need a large sum of money for a specified purpose. This purpose could range from paying down a mountain of debt to purchasing an expensive item. 

When it comes to obtaining the funds for handling such situations, many people turn to lending institutions in hopes that someone will offer them a personal loan that is right for their particular need. 

Since finding the right personal loan for their circumstances can sometimes seem like a daunting task, here are some suggestions to help with this endeavor.

Unsecured Personal Loans

An unsecured personal loan is a loan that does not require any collateral in order to obtain the money desired. 

Unsecured personal loans are considered high risk from the lender's perspective and generally have higher interest rates than secured loans. 

An unsecured loan would be best suited for those scenarios where the borrower does not have the assets required to put up for collateral.

Secured Personal Loans

Unlike the unsecured personal loans, secure personal loans require collateral to be put up as a means to secure the loan against default. 

This situation is more favorable to the lender and will often come with a low, competitive interest rate. 

Circumstances where this personal loan option appears best suited is with people who have assets to use for collateral and who are looking for lower interest rates to sweeten the deal.

Borrowing from a Credit Union

While there exist many lending institutions that specialize in personal loans, borrowing money from a credit union can be one of the best places to turn when you need a sizable personal loan amount. 

A credit union will likely be able to offer its clients a variety of secured and unsecured personal loan options. 

A credit union personal loan is best for people who are working on establishing better credit.

Family-Based Personal Loans

Just because someone needs money fast, this does not mean that a lending institution is in a position to accommodate any random person with the personal loan they need. 

According to Debt.org, a family-based personal loan may be the best option for some borrowers. Since this is a loan worked out between family members, it is possible to be far less strict about observing all the provisions of the personal loan in question. 

This type of personal loan option may, therefore, work best with people who have no functional credit to their name.

When attempting to acquire a large sum of money for personal reasons, a personal loan may provide a borrower with the monetary solution they seek. 

From lending institutions to family-based lending, the options for finding a decent personal loan are numerous. 

The type of personal loan that works best in a borrower’s circumstances will depend on a lot of factors ranging from credit history to a borrower's ability to make regular monthly payments.

How to Choose the Right Bank for Taking a Personal Loan

What is a Personal Loan?

Personal Loan is an amount taken from a financial institution against which no security is required. 

This loan amount can be used for various purposes like—marriage, medical emergencies, household expenditures, and even vacations.

The amount you take as a Personal Loan is not monitored by the bank and can be repaid through a fixed installment scheme over a fixed period of time.

How should you Apply for a Personal Loan?

You can apply for a Personal Loan in 4 easy steps:

• Step 1: Go to the bank website and fill the online application form.
• Step 2: Once the bank approves your application, select the loan amount and tenure.
• Step 3: In this step, a bank representative will get in touch with you for collecting the relevant documents. 
• Step 4: Post document verification, the loan amount will get credited to your account within 3-4 days. 

Documents Required for a Personal Loan

The requirements vary from one institution to another. However, the following documents are common to almost all banks and NBFCs:

• Identity proof
• Residence proof
• Bank statements (3 months)
• Salary slip (3 months)
• 2 passport size photographs

How Should you Choose your Bank?

Every bank or NBFC offers various Personal Loan schemes with the aim of attracting more customers. Each has different policies and norms and choosing the right one is anything but easy and usually leads to a lot of confusion.

Here’re a few ways you can bid adieu to that confusion and choose the right lending institution. 

Pre-approved Personal Loan

If you’re already associated with a bank and have a good relationship with them you’ll come across text messages and telemarketers pestering you to take a Personal Loan. 

This is called a pre-approved Personal Loan. In this case, the bank or NBFC has already considered you to be eligible to take a loan; in some cases, you won’t have to even submit any documentation. Pre-approved loans can save you a lot of time. 

Rate of Interest

It’s important you do a lot of research on the interest rates offered by each bank. 

Every bank tries to offer low-interest rates to get your attention but they have almost invisible terms and conditions that will lead to an increase of the interest rate once you have availed the loan. 

So, make sure look for loopholes and read the terms and conditions well before go forward with your application. 

Flexi Personal Loan

Flexi Personal Loan is a very borrower-friendly loan. In the case of flexi Personal Loan you can pre-pay the loan amount with idle funds at no extra cost. 

You save a lot of interest as you only pay for the utilised amount; which means you won’t be charged any interest on the prepaid amount.

Loan Amount

While taking a Personal Loan you might have a set amount which you’ll require to fulfil the task. 

Every bank has a fixed amount they can loan to you based on your eligibility. Do sufficient research to see which bank or NBFC offer the amount of fund, you’re in need of.

Prepayment Charges

While repaying the loan there may be situations when you come into an unexpected windfall or get a bonus at work and want to pay off a part of your loan. 

Make sure to choose a bank or NBFC that doesn’t charge any prepayment penalties. This holds true for foreclosure charges too. 

EMI

Using the online calculator for calculation of Personal Loan EMI that you’ll be paying. This will give you a figure that you need pay off on a monthly basis and you’ll get a clarity on how affordable this loan is.

Multiply the EMI with the tenure and subtract the loan amount. This is the interest that you’ll be paying. Consider all these while making the final choice. 

Processing Fee and Time

The processing fee is the amount charged by banks for processing your loan. This amount is cut from the loan before crediting the sum to your account. 

Banks charge up to 3% as processing free so it’s always better you go for the institution that charges you the least.
Processing time is the time taken to approve and credit your loan. 

Pre-closure Charges

Not many people may know this but you can pay your entire loan before the tenure. You can pay off the entire loan amount anytime before the loan tenure. 

Banks charge an interest on pre-closure that ranges from 2-5% on the outstanding amount. Another thing to keep in mind is to find out if the bank even allows pre-closure; in some cases, the bank may allow this but only after a certain time.

Researching online is the best way to begin your search for the right bank or NBFC. 

Every bank has all the information available on its website, and with proper research, you’ll be able to find the right bank based on your repayment abilities and one offering you affordable interest rates. 

 So, you need know everything about loan before applying that will help you to choose the right one.

Ways to Get a Loan with Bad Credit in Retirement

If you have a bad credit history and you discover that conventional lending institutions no longer want to lend you money, you should not despair because it is possible to find a good loan even with bad credit. 

Taking a bad credit loan will help you get the money you need quickly. If you make your repayments on time, you will be able to improve your credit rating. After the loan period has ended, you will be in a better position to get approval for regular loans. Here are some of the ways to obtain a personal loan with bad credit.

Apply With an Expert Broker Who Gives Bad Credit Loans

A broker who specialises in helping people with bad credit should be one of the first places to turn to when your credit history makes it difficult for conventional lenders to assist you. This type of broker will have access to many lines of credit from various financial institutions. 

They will help you analyse your ability to make payments and offer you a loan that you can easily pay back. However, you may need to bear with a relatively higher interest rate.

Take a Loan From Friends or Family Members

If you can't borrow money from a bank because of your credit rating, you may be able to find some friends or family members that will offer to assist you. When you receive a loan from a close friend or relative, make sure you treat it as seriously as you will handle a loan from a bank or mortgage lender. 

It is also important to put the loan agreement on paper and state the interest rate and terms of payment; any penalties for failing to pay back the loan should also be stated in the document. Use an online service provider to create the required documentation for this kind of loan.

Ask a Co-Signer to Help You

If you are not able to find a close relative or friend to give you a personal loan, you may be able get someone who will co-sign a loan for you. This will usually be a person who is aware of your financial situation and is sure of your capacity to pay back the debt. Your co-signer will have to bear the burden of repaying the debt if you default. 

Moreover, the payment history for the loan will not only appear in your credit report but it will show up in that of your co-signer. That is why you must ensure that you can pay back your loan before you use this option.

Those are some of the ways to find a good loan with bad credit. As you shop around for loans, make sure you do your best to improve your credit score. You should also develop a regular habit of saving a fixed amount of money every month. 

Also, do your best to get a stable source of income that will help to convince lenders about your ability to repay any loan they offer you.

For Personal Needs Go For Personal Loans

Often it happens that we compromise with our needs and dreams, but now that time has gone. If you want then your bank will help you overcome this unwilling compromise. There are several kinds of personal loans available in the market for your personal requirements. Whether, it is a car loan or a house the bank offers you a short term or a long term loan.

Personal needs vary from person to person. It may so happen that you are in urgent need of money, but are unable to gather the amount at the moment. In such situations loans are the best option. It helps you to pay in instalments and also furnishes with the option of paying the principle amount when possible. Certain criteria are also to be followed while applying for a loan.

The medieval period people used to mortgage their property or any other particular asset when in need of money. When unable to do so they had to render the same to the money lender. People were exploited on such basis. Sometimes the forthcoming generations also had to endure this loan.

The best part about a loan is its flexibility. In terms of time, money etc. the loan system is the best. The one discussed here are about personal and car loan. A personal loan is the one which can be taken on any basis. The rate of interest is a little higher than all the usual loans.

This loan can be taken for fulfilling any need, say you need to renovate your house or want a new house or want a car. Therefore, it implies that the need is not specific but the amount is specific.

The basic requirement for applying for this kind of loan is a three year filed ITR, a salary receipt and an address proof. These three are the most basic and the most common one, but the specifications may vary from firm to firm.

However, for a car loan the system and the requirements are different. First thing or the point which differs is that this loan is specifically for a car. The next point is that the loan is given in the name of the seller and not for the buyer. The money is to be given in the form of instalments to the bank by the buyer. As soon as the loan is cleared legal papers are prepared which is a proof that the car now belongs to the buyers.

Well taking a loan is a very easy task, but it involves taking care of few points like there should not be any negligence at the time of EMI deposit or else the loan is supposed to be lapsed on account of lack of payment. There are several advantages of loan which can be studied when taken a deeper look.

The term loan is not new to people nowadays but there might be some confusion when it comes to applying or searching for a loan. Hence, for more information on personal loan or even car loan , you can refer the experts.

Understanding the Differences Between Personal and Business Credit

Image via CrunchBase

If you’re a business owner and you’re in the market for a business loan, it’s a good idea to understand that there are big differences between business credit and personal credit. 

Personal Credit

Let’s begin with your personal credit. Hopefully you are already aware of the fact that your personal credit score takes into account your credit history. A credit agency most commonly will calculate your score using the FICO method, which is based on several factors such as your payment history, outstanding debt, new credit, and the length of your credit history.

TransUnion, Experian, and Equifax are the top three personal credit bureaus in the US. It is required by law that these three agencies allow you to request a free credit report from each of them every 12 months. Additionally, if you find an error or discrepancy on your report, under the Fair Credit Reporting Act, the credit reporting company and the organization that provided the incorrect information must investigate the error in a timely manner.

It’s important to note that any accurate negative information on your credit report, like missed payments, will eventually disappear after seven to ten years. And although those marks stick around for several years, you always have the opportunity to build and repair your own credit in the meanwhile.

You want to maintain the best credit score possible because it is your passport to low interest rates and fees when you decide to apply for a car loan, take out a mortgage, request a credit card, and more. If you have a favorable credit history, companies will be more inclined to offer you good benefits and trust that you will make payments on time.

Business Credit

With that being said, if you’re looking to take out a loan for your business, it’s best to do it under your business’s credit. Regardless of how stable your business may be right now, business endeavors can be risky, so you don’t want any of your business’s potential debt or missed payments to reflect on your own personal credit report.

So that’s where business credit comes into play. If you don’t currently have business credit, you’ll want to first form a business entity, apply for a tax number, and then set up a business bank account. Once you’ve done that, you can register with business credit bureaus, so that vendors can begin reporting your business’s payment history to them. The top three business credit bureaus include Dun & Bradstreet, Business Experian, and Business Equifax.

These credit bureaus calculate your business’s Paydex Score, which is similar to the FICO scoring method. The Paydex score takes into various factors, but relies heavily on your business’s payment history.

One of the main differences between your business and personal credit, is that there is no way to repair your business’s credit report. Just a few missed payments, and your business credit could be tarnished forever.

Another big difference is that there are no rules or regulations in place that require the credit bureaus to fix errors on your business’s credit. While you can still report mistakes or dispute errors, there aren’t any laws in place to facilitate the process or protect your business like there are with personal credit.

Understanding some of these main differences between personal and business credit will make you more savvy when it comes time to take out a loan for your business.

Chloe Mulliner writes and edits for CreditSources.org, a website that focuses on bad credit unsecured loans, cash advances, and all things credit related.

How do Fast Personal Loans Work?

Our needs often don’t coincide with our savings. At some time or the other almost everyone has experienced an unexpected emergent expenditure. In such situations not everybody has the money needed to cover that expense, saved up and at their disposal. Even if someone has some savings, she/he may have been saving that money for some other purpose which is just as essential as any. So how does one get out of such a quandary? One viable option would be to take out a fast personal loan.

 

What is a fast personal loan?

Such a form of a credit is fast, effective and is issued without any collateral. Therefore, whether or not you have a material property to provide as security for the credit, you can apply for the same. The only issue you’ll have to take care of is that of your credit rating. This happens because here the lending institution is putting itself at risk by not seeking guarantee in the form of collateral, so naturally it will try to ensure that it is financing credit worthy individuals. A high credit individual as a client carries an implicit assurance of repayment, as he has a stable flow of income with which he will be able to repay back the credit issued to him through monthly installments. Hence this feature is an essential part of such a scheme. 

Types of fast personal loan

This kind of financing can be received for both a large sum of money as well as a small sum of money. In case your present status demands a large sum of money you can apply for:

• Typical personal loans 

But if your need can be sufficed by a relatively smaller amount of money you can opt for:

• Cash advance loans like payday loans. 

The former takes more time and paperwork than the latter. More information on these can be found in www.unitedfinances.com. 

Where can you get these from?

Once you have decided on availing this type of credit you’ll need to know where to get them from, following are listed some of the well known and common sources:

• Banks - These are one of the most reliable sources for obtaining easy cash of this sort. However, it helps your cause if you have a good credit score. Banks approve clients with good credit score, background and a stable source of employment and income. Hence if you’re in between jobs, you might not get approved. 
• Credit Unions- Another dependable source of easy flow of money in this case is credit unions, as they can even approve clients who are old customers of theirs with bad credit rating. This they do by checking the history of the client’s credit and documents stating the details about her/his present employment and income source’s status. 
• Private finance institutions- These are known for their fast service. They also cater to both categories of clients (i) High credit worthy, (ii) Low credit worthy. While if you’re fortunate enough to belong to the first group, you can seek the help of any such institution. But if you belong to the latter group, it is best if you approach those which are locally available. 
• Online sources- Sites like www.unitedfinances.com help you research whatever you need to find out about such credit and apply for the same from the comforts of your home or anywhere you can access their service from. 

A ready flow of cash like this can help you out when you really need it. But if you let the debt pile on by missing out on your monthly repayments, then in the end you will find yourself liable to pay hundreds of dollars in interest. Therefore it is advisable if you pay off your debt in a timely manner. To do so you can do the following:

• Increase the amount monthly installment – This way you will accumulate less interest as you pay off your debt in a short time by making a one or two time payments. 
• Obtain additional sources of cash- You can either pick up extra jobs to repay it or sell off some previously acquired object of notable economic worth that you can do without. If you’re unwilling to do any of these you can dip into your savings pool too. 

In any case you should make sure once your immediate crisis is dealt with you don’t create another one by missing out on the repayment of your loans. For more information on this topic you can visit UnitedFinances.com

Author’s Bio – Sam Payn is a regular contributor of UnitedFinances.com, an online loan community. He also writes for loan and finance blogs.