Personal loans offer a convenient solution for handling significant life expenses. Whether you’re looking to finance education, renovate your home, embark on a dream vacation, or consolidate debt, it’s crucial to have a well-defined repayment plan. In this blog, we’ll explore key factors that borrowers should take into account before applying for a personal loan. You should know before Applying for a Loan Before applying for a loan, understand interest rates, repayment terms, eligibility criteria, and associated fees. Assess your financial capacity and credit score to ensure smooth approval and manageable repayment. The score of your credit A credit score reflects your creditworthiness and is represented by a three-digit number, typically ranging from 300 to 900. This score is provided by one of the four credit bureaus operating in India. It is calculated based on your credit management history and current practices. Several factors influence your credit score, including: The number of loans and credit cards you have managed Timely repayment of loan EMIs and credit card bills Frequency of loan or credit card applications The balance between secured and unsecured loans in your portfolio Your overall credit management experience The credit utilization ratio on your credit cards Capacity for repayment of loans An overview of your credit history Before approving a loan application, banks evaluate your ability to repay the loan. A crucial part of this process involves reviewing your credit history, which shows how you’ve managed past loans and if there are any unpaid debts. Additionally, banks assess your income to calculate your debt-to-income ratio. Any current loans you’re repaying may also affect your capacity to take on a new loan, potentially influencing the approval decision. To get a quick estimate of your monthly EMI, you can use a personal loan EMI calculator for instant results. Terms of the Loan Securing a loan with the lowest interest rate is a goal for many borrowers, as it not only eases the financial strain but also makes repayment more manageable. Many lenders provide competitive interest rates along with the loan amount you need. Before applying, take time to thoroughly review the lender’s terms. Pay attention to factors such as interest rates, prepayment penalties, processing costs, foreclosure fees, and any late payment charges. Move forward with the loan application only when you’re confident that all conditions meet your expectations. Right Documentation submitting the correct documents is crucial when applying for any type of loan. For personal loans, the standard documentation usually includes proof of identity, address, and income. Having all the requested documents ready before applying for the loan can streamline the approval process, allowing the lender to review your application more efficiently and disburse the funds without unnecessary delays. The collateral Traditionally, borrowers have been required to provide collateral to secure personal loans. However, with the rise of new fintech lenders, this practice is changing. Unlike banks and NBFCs, these modern lenders no longer demand collateral. Contact us Today
Explore MoreIndia’s stock market is booming with a rise in various sectors. Companies in tech, finance, and infrastructure are leading the charge. Notable fast-growing stocks include those in renewable energy and e-commerce. Among the top performers, Rahane Finserv stands out as the leading stockbroker in India, offering comprehensive financial services . With cutting-edge technology and expert advisory, it has enabled investors to maximize returns on their stock investments. Keep an eye on industries like green energy and digital services, as they are expected to drive future growth. Trending Growth Stocks List in 2024 Trending growth stocks are shares of companies experiencing rapid revenue and earnings expansion. Investors are drawn to these stocks for their potential to outperform the market. Typically from tech, healthcare, or innovative sectors, they attract attention for their high growth prospects, although they can be volatile and riskier investments. Company CMP Profit CAGR Sales CAGR MCap P/E D/E RoE (Rs) (5 yrs, %) (5 yrs, %) (Rs m) (x) (Curr FY, x) (5 yrs, Avg. %) ZOMATO 277.8 NM 56.00% 2,454,189 407.7 0 0.40% TRENT 725460.00% 73.20% 36.70% 2,578,919 166.4 0.1 11.50% ADANI GREEN ENERGY 1801.3 NM 35.00% 2,853,239 248.8 10.6 19.90% INDUS TOWERS 43760.00% 19.30% 33.20% 1,154,460 17.8 0.2 21.80% BAJAJ HOLDINGS & INVESTMENT 10443.4 19.00% 30.70% 1,162,283 81.4 0 10.90% L&T INFOTECH 640970.00% 24.80% 30.30% 1,898,366 41.6 0 26.80% VARUN BEVERAGES 655 47.60% 25.90% 2,127,847 86.2 0.7 20.70% BAJAJ FINANCE 753690.00% 29.30% 24.40% 4,672,649 31.3 3.9 17.00% CHOLAMANDALAM INVEST 1589 23.30% 22.00% 1,335,399 36.6 6.9 16.70% HDFC BANK 166230.00% 23.50% 22.00% 12,676,716 18 6.8 15.20% BAJAJ FINSERV 1886.3 23.80% 21.00% 3,011,784 18.7 4.8 22.70% TITAN 376050.00% 20.30% 20.90% 3,338,520 96.7 1.4 24.80% AVENUE SUPERMARTS 5213.6 23.00% 20.40% 3,392,629 128 0 12.00% ADANI PORTS & SEZ 145540.00% 14.90% 19.60% 3,143,758 34 0.9 14.30% INTERGLOBE AVIATION (INDIGO) 4968.2 120.40% 19.30% 1,919,004 24.6 1 84.40% IRFC 16800.00% 23.30% 19.10% 2,194,856 34 8.4 12.90% ADANI ENTERPRISES 2969.2 71.30% 19.00% 3,384,834 80.1 1.4 5.40% SHRIRAM TRANSPORT 340990.00% 23.40% 18.60% 1,282,086 16.7 4 12.90% ADANI TRANSMISSION 998.4 16.40% 17.90% 1,199,301 NM 2.9 14.60% BANK OF BARODA 23820.00% 76.40% 17.50% 1,231,818 6.6 12.1 8.30% ICICI BANK 1248 59.80% 17.30% 8,790,708 18.8 6.5 13.30% RAIL VIKAS NIGAM 55470.00% 18.00% 16.80% 1,156,456 85.2 0.7 17.30% ADANI POWER 640 NM 16.10% 2,468,441 15.4 0.8 24.00% TATA CONSUMER 120900.00% 22.40% 16.00% 1,196,189 95.2 0.2 6.80% PNB 109.9 NM 15.90% 1,210,111 11.2 13.2 3.80% Disclaimer: This information is provided for informational purposes only and should not be considered as stock recommendations. Please note that these screeners are purely data-driven and do not account for management quality.
Explore MoreSecuring funding is crucial for business expansion. One reliable approach is to apply for a small business loan through a bank or Non-Banking Financial Services Company (NBFC). Unlike borrowing from private individuals or other sources that might entail sharing a percentage of your profits, a loan from a bank or NBFC requires only interest payments, enabling you to keep all your earnings. Consequently, many entrepreneurs prefer small business loans for acquiring extra capital. Here are several reasons to consider an SME loan: 1 – Business Expansion A business loan in India provides the capital companies need for growth. These loans can be used for various purposes, such as purchasing new equipment, opening additional branches, or boosting inventory. Offered by banks and financial institutions, these loans come with flexible repayment plans and competitive interest rates. Securing a business loan can facilitate expansion, enable companies to seize new opportunities, and enhance profitability. 2 – Create a new infrastructure As your business expands, you may require additional space. Consider obtaining a small business loan from a reputable NBFC to support this need. This loan can be used for constructing new facilities, renovating existing ones, or addressing any issues to prevent future complications. Acquiring a small business loan is straightforward and efficient. 3 – Recruitment of new members As your business grows, you might find the need to hire more employees for different positions. To facilitate this expansion, exploring a small business loan could be advantageous. This financial support can help you bring on new team members and maintain efficient operations. It also allows you to establish additional locations and hire managers to supervise them. A business loan can streamline the scaling and management of your enterprise. 4 – Creating Your Own Website In today’s digital age, a website is essential for engaging with your customers. Operating without one can make achieving significant revenue challenging. Consider applying for an SME business loan to create a user-friendly website. This can enhance your customers’ ability to locate what they need efficiently, potentially increasing both sales and orders. 5 – Strategies for marketing To successfully connect with your target audience, it’s crucial to create a strong marketing plan. You might explore obtaining a small business loan to collaborate with a digital marketing agency that specializes in customized strategies. This investment could greatly boost your business’s growth and speed up your revenue generation.
Explore More