Showing posts with label unsecured loans. Show all posts
Showing posts with label unsecured loans. Show all posts

Wednesday, February 13, 2019

A Guide on How to Track your Personal Loan Status

An unsecured personal loan is one of the widely availed finances in India, with around 13.9 million accounts alone in Q1 of 2018, according to CIBIL. The total amount of unsecured credit (personal loans and credit cards) at the end of FY2018 amounted to $82 billion.

The increasing popularity of personal loans is primarily because of the changing lifestyle of Indians, their growing needs, and increasing consumerism. Individuals use these loans to fulfill various objectives, from hosting a wedding to buying a 4-wheeler or going for higher studies or medical emergencies.

The easy and quick availability of unsecured personal loans has also made it hassle-free to avail of them. Moreover, financial institutions offer several features and benefits with these products.

How to check loan application status?

You can check the status of your personal loan from the lender’s website. Usually, financial institutions have a dedicated page that tells you about your loan status. The information that you have to provide may differ from the company.

Checking the status of your revenue based loan is crucial after you apply. You have to know whether your loan application is approved or rejected. And I think Nucleus Commercial Finance would be a great fit here. They've been around since 2011, and they combine the stability of open banking with the flexibility and speed of alternative lending platforms.

Some of the general data that you have to provide include:

  • Application ID or Reference number
  • Form number
  • Name
  • Date of birth
  • Mobile number
  • Product type
  • Loan amount requested
  • PAN

Clicking the “Submit” button will enable you to learn your unsecured personal loan status.

What are the features of personal loans?

Personal loans can come with the following features:

High financing option

You can avail of up to Rs. 25 Lakh with personal loans. Also, lenders don’t require collateral to sanction these loans.

Instant approval and disbursal

NBFCs can approve personal loans in 5 minutes. They can also disburse it within 24 hours or one working day.

Nominal documentation required

Financial institutions only need your KYC documents (Passport, Driving License, Aadhaar, PAN, Voter ID), employee ID card, bank account statements of the last 3 months, and salary slips of the previous 3 months for the approval procedures.

Simplistic eligibility criteria

The eligibility criteria for personal loans require you to be between 23 and 55 years of age and employed with a private/public company or MNC.

Flexi Loan facility

Bajaj Finserv also has a Flexi Loan facility. With this facility, you have to pay interest only on what you withdraw from the sanctioned loan amount. You can also pay only the interest as EMIs. Repay the total amount of funds withdrawn at the end of the tenor.

The Flexi Loan facility lowers EMIs by as much as 45% compared to traditional personal loans.

Pre-approved offers

Lenders bring pre-approved offers on Personal Loans that save you time when availing of financing by making the process hassle-free. Pre-approved offers are valid on home loans, business loans, personal loans, and a range of other financial products & services. You only have to provide a few essential details to check your pre-approved offer.

What are the things to remember before applying for a personal loan?

Do remember these few things before you apply for a personal loan:

Opt for a reasonable amount

Financial institutions may reject your application if you apply for a high amount. Hence, it is recommended to use a personal loan eligibility calculator. It will help you learn the highest loan amount you are eligible for as per your income, outstanding credit card debt, and loan EMIs.

Calculate your EMIs

Calculating your EMIs helps you to know whether you will be able to pay them. Use an online EMI calculator if you don’t know how to calculate personal loan EMI. Have a high credit score

Lenders need a credit score of 750 or more to sanction you a personal loan. Improving the credit score requires only a credit card. You can also avail of a secured credit card by pledging a fixed deposit as collateral.

Paying the total amount due within the deadline and utilizing 30% to 50% of your credit limit will improve your credit score.

You must lower your fixed monthly obligations

Ensure that the ratio of your monthly income to your fixed monthly obligations is lower than 50%. Closing your existing loans and clearing your credit card debt can help you achieve this ratio.

Opt for an unsecured personal loan today to fulfill your financial goals. Financial institutions give you the option to apply for these loans online. You only have to provide your personal details, income, and a few other basic details to apply successfully.

Sunday, December 30, 2018

What You Should Look for in Unsecured Business Loans

The unsecured business loan is a boon for the small business that cannot provide adequate collaterals or guarantee. While approaching banks or NBFCs for an unsecured business loan, the applicant has to look for overall value proposition he or she receives rather than the only interest rate.

Rate of Interest

The rate of interest is decided based on the internal policy of the bank or NBFCs. Apart from the policy, the financial profile of the individual also plays crucial role in deciding the rate of interest. If your CIBIL score is higher, you will be offered a lower rate of interest.

Moreover, you should ensure that loan is granted to you on reducing balance basis. It ensures that you will pay the interest only on the remaining principal amount. If you are charged a flat interest rate, you will end up paying the excessive amount of interest, even if the notional interest rate is lower.

Loan Processing Time

There are instances that banks take unusual time to process the unsecured loan application. For any business, time is money. The excessive paperwork and lengthy process eventually result in loss of business opportunity. The minute lower interest rate may prove costly if you cannot achieve the desired goal.

Processing Fees

While every bank and financial institute charges processing fees for a loan to cover administrative expenses, it should be reasonable. Some banks charges fixed amount as processing fees irrespective of the loan amount, while the others charges as a percentage of the loan amount. 

Many banks waive off the processing charges for a small loan amount. If you have an existing relationship with your bank, you can negotiate with the bank to waive off or reduce the processing fees.

Loan Amount

The unsecured business loan carries a higher risk of default. Higher the amount, higher the risk. After a certain threshold, the interest rate increase to cover higher probability of default. 

You can also opt for partial collaterals to get a better interest rate on your overall loan amount. Based on your business vintage and historical payment records, you can negotiate a higher amount loan with your bank.

Tenor Granted

The tenor is generally decided based on the purpose of the loan. For example, the tenor for a working capital loan is usually one year, while the same for machinery may extend up to five years. Higher the tenor, higher is the risk of capital repayment. You can review your overall financial cash flow to evaluate ideal tenure for your unsecured business loan.

Prepayment Charges

In case you want to prepay your loan earlier than original tenure, many banks apply prepayment penalties. It is advisable to check with your bank regarding prepayment charges in case you intend to repay earlier.


In real terms, it is not only interest rate that decides the cost of fund for applicants. Many reputed NBFCs like Bajaj Finserv provides flexible tenor and repayment options on business loan application. You can also opt for Flexi facility instead of standard EMI repayment. 

You can also get pre-approved offers that gives you instant loan approval. Under the Flexi facility, the interest is charged on the amount that you have used. Whenever you have an excess fund, you can repay your loan to reduce the interest cost. 

Moreover, you are obliged to pay the interest amount only on a monthly basis. You can repay the principal amount anytime within the overall tenor granted to you.

Wednesday, August 1, 2018

Unsecured Loans – Is It The Right Option to Grow Your Business?

Opting for unsecured business loans is one of the best ways to ensure that you have adequate financing for your business. Unsecured loans are loan without any collateral or security but it does not mean they cannot help you out. 

Such loans are very good when it comes to acquiring financing and it also takes away the additional burden of providing a security or a guarantor- because any might not have any property or asset to provide as security or collateral in the first place. 

Such loans have a lightly higher business loan interest rate than secured loans but if the money is utilized well, then it can be easily used to take care of a lot of business needs and the profit the business makes can be used again to pay back the lender. 

Growing your business will be possible with the right business loan. 

Unsecured loans can be used in a number of ways to grow your business.

Buy larger premises

You might have started your business from one small room but as it starts to expand, that room might not be sufficient anymore, even though it might have a huge emotional value. 

Eventually you have to move on and shift to larger premises which you might have to buy or pay for additional rent. Opt for an unsecured loan to fulfill this purpose.

 Move to a better location where it would be easier for more clients to come and meet you or you could also invest in buying or renting a warehouse, apart from the regular office space you have.

Buy new equipment

There is only so much you can do with old equipment and when there are options for you to buy new equipment to upgrade your workplace, then do not let go off the opportunity. 

New equipment will result in better quality products and it could lessen the production time and this will only keep you ahead of your rivals in the long run. Apply for an unsecured, equipment financing business loan and watch your company go to the next level.

Hire skilled staff

To do better business, you need to produce better quality products and that can only be produced by skilled staff. However, good work would mean you would have to pay more to them as well and you can acquire a loan to pay for the initial money till the profits start coming in. 

Hiring skilled staff would mean your work will be flawless and more nuanced and clients are slowly going to increase in number. Once the sales go up, you can use the profit to pay back the loan.

Fill up the Inventory

The peak season often sees a spike in demand and if you can readily supply to your clients when the others cannot, then you are sure to reap in better profits as well. However, to do that, one needs to keep up production even at a slow time and build up the inventory gradually. 

Acquire an unsecured business loan to carry on with the production even when the business is slow and then when the peak season hits, you will be the first to supply. Pay back the loan with the profits and you will still have enough for yourself, having acquired the client’s trust in return.

Buy Transportation

Many businessmen end up spending tons of money just by having to hire transportation to take their finished goods to the markets or to the supplier which eventually adds up to a lot in the long run. 

Get a loan to buy transportation for yourself instead. Once the loan has been paid off, you will be spending a lot less than your competitors, especially if you have your own garage space.

Invest in Marketing

One of the best ways to ensure that your business grows is to invest in marketing. Let the people know about the kind of work you are doing. Opt for unsecured business lending to invest in marketing strategies and this will definitely makes your sales higher as more people get to know about your business.

Saturday, May 18, 2013

Fix Financial Distress with Secured Loans For Retirement

Individuals with negative credit history are probably some of the most financial distressed individuals out there. However, this drawback should not halt them from obtaining financial stability because there are a myriad of financial programs out there that can be utilized to fix such predicament. 

The long list includes secured loans, click here and they can be easily obtained by individuals with bad credit history.

However, it should be remembered that secured loans should only be obtained to cover emergency expenses because irresponsible procurement can lead to the accumulation of unnecessary debts. Those who are in dire financial situations can be relieved because many creditors practice leeway when it comes to their repayment programs.

Also, individuals who are desperate of cash are encouraged to seek advice from financial experts so that they can make the most of their secured loans and at the same eliminate excessive interest rates.

All in all, the said loans are extremely beneficial and can go a very long way for those who want to achieve financial freedom. 

Benefits of Secured Loans

  • In general, individuals with bad credit history may find it difficult to obtain conventional loans because of disagreeable interest rates. This is not the case when it comes to secured loans since the interest rates that they carry are appropriately calculated. 
  • Many borrowers become saddled with unnecessary debts because of unfitting repayment schemes. Such disadvantage is not an issue when it comes to unsecured loans because borrowers can choose repayment terms that varies from one to five years. With this, borrowers can choose to pay their loans quickly or spread them out a bit. 
  • In secured loans, fixed interest rates translate to fixed payments. Because of this borrowers can have an idea of how much they need to pay on a monthly basis. 


It should be remembered though that the abovementioned benefits can only be obtained if secured loans will be borrowed from reputable companies. Also, before applying for the said loans, it would be best to make an extensive research of various loan programs out there.

The said precautionary measure can help borrowers understand and obtain loans that can perfectly suit their financial status. Many companies are established to lend a default sum to individuals with negative credit history.

However, it should be remembered though that some interest rates are a bit higher, but borrowers can acquire certain deals at lower interest rates.

In the end, a simple action like performing research can go a very long way when it comes to secured loans.

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics