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Personal Loan

Personal Loans for Home Renovation: Smart Ways to Upgrade Without Overspending

by adminFebruary 23, 2026

written by admin

Transforming your house into your dream home does not have to drain your savings. Personal loans for home renovation offer a flexible and accessible way to fund upgrades, from kitchen remodels to bathroom makeovers, without the complexity of home equity loans. In this guide, you will learn how to use personal loans strategically, avoid common pitfalls, and maximize your renovation budget.

What Are Personal Loans for Home Renovation?

A personal loan for home renovation is an unsecured loan that homeowners use to finance property improvements. Unlike loan against property (LAP) or home equity loans, these loans do not require you to mortgage your property as collateral. This makes them faster to obtain and less risky if you are unable to repay.

These loans typically range from Rs 50,000 to Rs 40 lakhs, with repayment terms between 1 and 7 years. Interest rates vary based on your CIBIL score, income, and the lender you choose. Most major banks like HDFC Bank, ICICI Bank, SBI, Axis Bank, and NBFCs like Bajaj Finance offer competitive personal loan products specifically for home renovation.

Key Characteristics:

No collateral required: Your home is not at risk if you default, though your CIBIL score will be impacted.

Fixed interest rates: Most personal loans come with fixed rates, meaning your EMI stays the same throughout the tenure.

Quick approval: Many lenders can approve and disburse funds within 24 to 72 hours, especially for existing customers.

Flexible use: You can use the money for any home improvement project–painting, flooring, modular kitchen, bathroom renovation, or even solar panel installation.

Why Choose a Personal Loan Over Other Financing Options?

When it comes to financing home renovations in India, you have several options. For instance, Kubiz is one of the most trustworthy personal loan companies. Let’s take a look at how personal loans stack up against the alternatives:

Financing Options Comparison

Financing Type	Collateral Required	Approval Speed	Best For
Personal Loan	No	24-72 hours	Quick projects, renters, low property value
Loan Against Property	Yes (property)	2-4 weeks	Large projects, lower rates
Home Improvement Loan	Sometimes	1-2 weeks	Specific renovation projects
Credit Card	No	Instant	Small projects under Rs 2 lakhs
Top-up Home Loan	Yes (existing home loan)	1-2 weeks	Existing home loan customers

According to Reserve Bank of India (RBI) data, personal loans in India have grown at a CAGR of approximately 18-20% over the past few years, with home renovation being a significant use case. The India Brand Equity Foundation (IBEF) reports that Indian homeowners are increasingly investing in home improvements, driven by work-from-home trends and rising disposable incomes.

How Much Can You Borrow?

The amount you can borrow depends on several factors:

CIBIL Score: Borrowers with excellent credit scores (750+) can qualify for larger amounts at lower rates.

Income: Lenders typically offer 10-20 times your monthly salary. Salaried employees and self-employed professionals are eligible.

Debt-to-Income Ratio: Most lenders prefer that your existing EMIs do not exceed 50% of your monthly income.

Employment Type: Salaried employees from reputed companies often get preferential rates compared to self-employed individuals.

Typical Loan Amounts by CIBIL Score

CIBIL Score Range	Typical Loan Amount	Average Interest Rate
750-900 (Excellent)	Rs 10 lakhs – Rs 40 lakhs	10.5% – 14%
700-749 (Good)	Rs 5 lakhs – Rs 20 lakhs	14% – 18%
650-699 (Fair)	Rs 2 lakhs – Rs 10 lakhs	18% – 24%
Below 650 (Poor)	Rs 50,000 – Rs 5 lakhs	24% – 30%

Note: These are estimates as of 2024-25. Actual rates and amounts vary by lender, income level, and individual credit profile. Processing fees range from 1-3% of the loan amount.

Smart Strategies to Avoid Overspending

Taking out a loan is one thing–using it wisely is another. Here are proven strategies to ensure your renovation stays on budget:

1. Create a Detailed Budget Before Borrowing

Before you apply for a loan, map out every expense. Include materials, labor, GST (18% on most renovation services), and a contingency fund (typically 15-25% of the total) for unexpected costs like structural issues or material price fluctuations.

Example: If you are planning a Rs 5 lakh modular kitchen renovation, budget Rs 5.75 lakhs to Rs 6.25 lakhs to account for GST, transportation charges, and potential design changes.

2. Borrow Only What You Need

It is tempting to borrow the maximum amount you qualify for, but remember: you will pay interest on every rupee. With interest rates ranging from 10.5% to 24%, every lakh borrowed can significantly increase your total repayment amount.

EMI Calculation Tip: Use online EMI calculators provided by banks. For example, a Rs 10 lakh loan at 12% for 5 years means an EMI of approximately Rs 22,244, with total interest of Rs 3.35 lakhs.

3. Compare Multiple Lenders

Interest rates can vary significantly between lenders. Even a 1-2% difference can save you thousands of rupees over the loan tenure.

Shopping tip: Compare offers from public sector banks (SBI, Bank of Baroda), private banks (HDFC, ICICI, Axis), and NBFCs (Bajaj Finance, Tata Capital). Check aggregator websites like BankBazaar, Paisabazaar, or use the Paisa Portal by RBI to compare rates.

4. Watch Out for Hidden Charges

Some lenders charge processing fees (1-3% of loan amount), prepayment penalties (2-5% if you close the loan early), late payment charges, and documentation fees. Always ask for a detailed fee structure.

Common charges to watch:

Processing fee: Rs 500 – Rs 10,000 or 1-3% of loan amount
Prepayment charges: 2-5% of outstanding principal (waived by some lenders)
Late payment fee: Rs 500 – Rs 1,000 per late EMI
Cheque bounce charges: Rs 300 – Rs 750 per instance

5. Prioritize High-Value Projects

Not all renovations are created equal. According to property consultants and real estate experts, some projects offer better value addition to Indian homes:

Modular Kitchen: High demand from buyers, adds 8-12% to property value
Bathroom Renovation: Modern fittings increase appeal, adds 6-10% value
Flooring Upgrade (Vitrified tiles/Wood): Adds 5-8% value
Fresh Paint and Lighting: Cost-effective, adds 4-6% value
Balcony/Utility Area Enhancement: Adds functional space, 5-7% value

Focus on projects that add value to your home, improve energy efficiency (like LED lighting or better ventilation), and enhance your quality of life.

How to Apply for a Personal Loan for Home Renovation

The application process is straightforward. Here is what to expect:

1. Check Your CIBIL Score: Visit CIBIL, Experian, Equifax, or CRIF High Mark to get your free annual credit report. A score above 750 gets you the best rates.

2. Gather Documentation: You will need: Identity proof (Aadhaar, PAN card), Address proof, Last 3 months salary slips (for salaried), ITR for last 2 years (for self-employed), Last 6 months bank statements, and Employment proof.

3. Get Pre-Qualified: Many banks offer instant pre-approval for existing customers. Check your pre-approved loan offers in your net banking portal or mobile app.

4. Submit Your Application: Complete the formal application online or visit the branch. The lender will perform a hard credit inquiry at this stage.

5. Review the Loan Offer: Carefully review: Interest rate (reducing balance method is better), EMI amount, Processing fees, Prepayment terms, and Total repayment amount.

6. Receive Funds: Once approved, funds are typically disbursed directly to your bank account within 1-3 working days. Some banks offer instant disbursal for pre-approved customers.

Common Mistakes to Avoid

Ignoring the APR/Effective Interest Rate: Always compare the Annual Percentage Rate (APR) or effective interest rate, not just the advertised rate. Processing fees and other charges increase the effective cost.
Not Reading the Fine Print: Check for prepayment penalties, loan insurance requirements, and whether the interest is calculated on reducing balance or flat rate basis. Reducing balance is always better.
Taking Maximum Tenure to Reduce EMI: While a 7-year loan has lower EMI than a 3-year loan, you pay significantly more in total interest. Balance EMI affordability with total cost.
Using the Loan for Non-Renovation Expenses: Stick to your renovation plan. Using funds for consumer purchases, vacations, or investments defeats the purpose and leaves you with debt but no improved home.
Ignoring Tax Benefits: While personal loans do not offer tax deductions under Section 80C, if you are using the loan for home construction or renovation of a self-occupied property, you may claim interest deduction under Section 24(b) in some cases. Consult a CA to understand eligibility.
Not Checking Lender Credentials: Verify the lender is registered with RBI. Avoid unregulated lenders offering “too good to be true” rates. Check reviews on platforms like Google, Trustpilot, or MouthShut.

Top Personal Loan Providers in India for Home Renovation

Here are some popular lenders offering competitive personal loans for home renovation:

HDFC Bank: Interest rates starting from 10.5%. Instant approval for existing customers. Loan up to Rs 40 lakhs.
ICICI Bank: Pre-approved offers for salary account holders. Interest from 10.75%. Minimal documentation.
State Bank of India (SBI): Interest from 11.15% for existing customers. Special schemes for home renovation.
Axis Bank: Instant personal loans up to Rs 20 lakhs. Interest from 10.99%.
Bajaj Finance: Quick approval and disbursal. Flexi loan facility available. Interest from 11%.
Tata Capital: Flexible repayment options. Interest from 10.99%. Online application process.

Disclaimer: Interest rates are indicative and subject to change. Always verify current rates on the lender website.

Alternatives to Personal Loans

While personal loans are a great option for many, they are not the only way to finance renovations:

Loan Against Property (LAP): Lower interest rates (8.5%-12%) but requires property as collateral. Suitable for large renovations worth Rs 15 lakhs or more.
Home Improvement Loan: Offered by some banks specifically for renovation. May have lower rates than regular personal loans.
Top-up on Existing Home Loan: If you have an existing home loan, you can take a top-up at home loan rates (7.5%-9%), which are lower than personal loans.
Gold Loan: Quick and easy if you have gold jewelry. Interest rates 7.5%-12%. Loan amount based on gold value.
Credit Card EMI Conversion: If you have a high credit limit, convert large purchases to EMI. Watch for interest rates and processing fees.
Government Schemes: Check for state-specific home improvement schemes or subsidies for solar panels, rainwater harvesting, or eco-friendly renovations.

Conclusion

Personal loans for home renovation can be a smart, strategic way to upgrade your living space without depleting your savings. In the Indian context, where property ownership is a long-term investment, thoughtful home improvements can significantly enhance both your quality of life and your property value.

By understanding how these loans work, comparing multiple lenders, and sticking to a realistic budget, you can transform your home while maintaining financial stability. Remember to factor in GST, choose the right loan tenure, and always read the fine print before signing the loan agreement.

With proper planning and disciplined spending, your renovation project can create the home of your dreams while building long-term wealth through property appreciation.

February 23, 2026 0 comments

Forbrukslån: How to Apply for a Personal Loan

by adminFebruary 20, 2023

written by admin

Consumer loans are great because you can use them for any reason such as paying a medical bill, getting a new device, debt consolidation, a student loan, or for vacation. The principal amount, as well as the interest, can be paid in installments. This installment can be paid for a long period of 2 to 5 years.

Apart from the fact that the repayment period is long, you don’t have to back up the loan with collateral. Hence, it is regarded as an unsecured loan. Visit https://www.bankrate.com/loans/personal-loans/unsecured-loans-definition/ to find out more about what an unsecured loan is and how they work.

An APR (annual percentage rate) is the name for the interest rate you pay for this loan. The loan average APR is about 9.41%. However, your creditworthiness might affect the interest rate within a 6% to 36% range. Your income, credit score, and even debts are accounted for before your APR is determined.

Steps to Become Eligible a for Personal Loan

To become eligible for this kind of loan, you need to follow some steps. The first of which is to ensure that the loan is suitable for you. Hence, you need to select the right type of credit or kreditt as it is called in Norwegian. Here are the steps to follow:

1. Decide on the amount you need to Borrow

You should know that when you apply for personal credit, you’ll have to pay back not just the principal amount, but also the interest. The only exception is if the card interest is 0% or you pay on time and the interest is not added.

As a result of this, you should not borrow too much money that is not needed to avoid additional interest. In contrast, you should ensure that you don’t borrow an amount that is less than required. Doing that could cause you to opt for a loan that is more expensive.

You should also confirm that you can make the payments required. Therefore, go for a loan that you can afford the interests repayment.

2. Confirm your Credit Scores

The next thing to do is to confirm your credit scores to ascertain your creditworthiness. To get a kreditt forbrukslån (credit consumer loan), you need to have a good credit score. You can make use of credit reporting agencies such as TransUnion, Experian, and Equifax to get your credit reports.

3. Know what Regulation Z says about your Rights

Regulation Z was implemented by the (FRB) Federal Reserve Board in 1968. This, in turn, led to the creation of TILA (Truth in Lending Act). This act was designed for the protection of consumers who make financial transactions to which personal loans belong. The Regulation Z is under the backings of the CFPB (Consumer Financial Protection Bureau).

The part of the regulation that is relevant and important for borrowers is Sections 1026.17 and 1026.18 under Subpart C. These sections mandate creditors to make known the finance charge, APR, total payments, and amount financed for closed-end loans. You should read up on these things to know your legal rights.

4. Decide where you will get the Credit from

You can get this credit from either a banking license or charter institutions or Non-Banking Financial Institutions (NBFIs). The latter include banks or credit unions. On the other hand, NBFIs include insurance companies, online creditors, payday lenders, etc.

Getting a loan from a bank will require a higher qualification standard. Although the bank may be a bit lenient if you have an account with the bank. The same thing goes for credit unions as they cut their members some slack.

5. Confirm your Eligibility

Go to the potential lender websites. You can also reach them via phone call to find out if you are eligible to receive a loan from such a lender. Confirm if a credit score is required that you must have or if an income limit exists. Also, find out if what the credit history minimum length is.

6. Get Prequalified

After discovering the loans that you aren’t eligible for, then you need to focus on those that will give you the credit. A soft inquiry is what some lenders require to preapprove or prequalify individuals. You should know that the preapproval or prequalification doesn’t guarantee that the load will be given to you. It is only an indication that your financial profile matches those that they give loans.

You will have to fill an online form; it’s not a long one. What is required is just your name, the amount you intend to borrow, your income, and your address. The creditor will then carry out a soft credit inquiry, and then they will get back to you. Click here to learn more about a soft inquiry.

7. Check the Details

After you have been prequalified, then you need to also prequalify the creditor/lender. You need to find out the following:

i. APR, Monthly Payment, Loan Term, and Expected Loan Amount: This will allow you to compare it with other loans.

ii. Fees & Penalties: What origination fee is included? Are there any penalties for late payment? You should find out about this.

iii. Interest Type: Find out if the interest type is variable or fixed. Find out the interest rate difference.

iv. Secured or unsecured: Is the credit secured or unsecured? If it is secured, then you should find out the required collateral.

v. Automatic Withdrawal: Willthe monthly repayments be done automatically? Are they be optional or mandatory? If they are optional, will the interest rate be lowered if I choose the automatic withdrawal?

vi. Arbitration: If there is a conflict, can the lender be taken to court?

vii. Prepayment Penalty: Will a penalty payment be paid if the loan is paid early?

viii. Fine Print: Find out if there are things that weren’t talked about.

8. Submit your Application

After you have verified all the above, you can then submit your credit application. You can choose to submit multiple applications. This should be done within a 14 – 30 days. Rate Shopping is the name for this kind of approach. You shouldn’t worry about this as your credit score won’t be really impacted.

You might be asked to submit proof of your income, official ID, Social Security number, housing costs, and debt. After the application is submitted, then wait patiently for the results.

9. Close the Personal Loan

This deals with receiving the kreddit. You should know that the approval, as well as funding, differs from one lender to the other.

In the event that multiple loans are approved, then you should choose the one that you prefer the more. After that, you sign the required paper and then receive the funding. After that, you need to pay back the credit.

Conclusion

In this article, we have discussed the steps that you can take to apply for a personal loan. The steps you need to take include deciding on the amount you will borrow, confirming your credit scores, knowing your rights according to regulation Z, deciding where to get the kreddit, confirming your eligibility, getting prequalified, checking the details of the loan, submitting your application, and closing the loan.

February 20, 2023 0 comments

Business & Finance Loan

How to Get a 10 Lakh Personal Loan

by adminOctober 15, 2022

written by admin

A personal loan allows you to easily access a high quantum of funds without pledging any collateral and meet any expenses hassle-free. This means that, be it your wedding expenses or paying off your debts of credit cards, you can apply for a personal loan and meet the financial requirements.

So, if you are eager to avail a personal loan, say of an amount of Rs. 10 lakh or above, then you must know the process to get it. You also need the details about how much you need to pay on EMI for a personal loan of Rs. 10 lakh.

Eligibility Criteria to Qualify for Rs. 10 Lakh Personal Loan

Whether you apply for a personal loan of Rs. 20 lakhor Rs. 10 lakh, you must fulfil certain eligibility criteria to avail the funds.

However, note that eligibility parameters may differ with each financial institution. Therefore, for your convenience, the list below mentions some common criteria that most lenders demand from a borrower:

Should be an Indian citizen.
Must fall between the age group of 21 to 65 years.
Should be a salaried employee, be it in the private or public sector or self-employed, with at least 1-year experience in running a business.
Minimum monthly earnings should be Rs. 15,000.
Should have a CIBIL score of 750 or above.

Steps to Apply for Rs. 10 Lakh Personal Loan

Follow the step-wise guide to avail a personal loan for students of Rs. 10 lakh from a financial institution:

Online Process

Step 1: Visit the website or log in to the mobile application of the bank of your choice. Before selecting a bank, make sure you compare interest rates and EMI for a personal loan of Rs. 10 lakhof different financial institutions to make an informed choice.

Step 2: Now, select ‘Apply for Personal Loan’ and enter the required details in the application form.

Step 3: Submit all the appropriate documents along with the application form.

Step 4: Pay the processing fees or other charges, if any.

After you submit your application, a bank representative will contact you to proceed with the subsequent steps.

Documents to Submit While Applying for Rs. 10 Lakh Personal Loan

Submit the documents mentioned below while applying for a personal loan of Rs. 10 lakh:

Identity proof such as Aadhaar card and PAN card
Address proof such as electricity bill, passport, and ration card
Form 16 or ITR form of the previous fiscal year
Last 6 months’ bank account statements
If you are a salaried employee, submit your salary slips of the past 3 months.
If you are a self-employed applicant, submit either a TDS certificate (Form 16A), Form 26AS, or an Income Tax challan to reveal the income tax of your business.
You need to submit ITR returns for the last 2 fiscal years and documents to prove business origination if you are self-employed.

EMI Calculation Process for a Personal Loan of Rs. 10 Lakh

Once you apply for a personal loan app, it is essential to determine the EMI amount to be payable towards your personal loan beforehand. This will assist you in planning and managing your finances effectively and repaying the loan amount without any inconvenience.

Your EMI for a personal loan of Rs. 10 lakhwill depend on the interest rate charged by the lender and the repayment tenure. You can calculate the EMI amount by using the following formula –

P x R x (1+R)^N / [(1+R)^N-1]

Where,

P is the principal amount

R is the interest rate

N is the number of instalments

So suppose you have availed a loan of Rs. 10 lakh for a repayment tenure of 3 years and at an interest rate of 13% (per annum), then the EMI amount will be-

10,00,000x13x(1+13) ^3[1+13) ^3-1] = Rs. 33,694 (per month)

Note that this is an approximate calculation of the EMI amount, and the actual amount may vary.

If you find manual calculation difficult, you can use an online tool like the personal loan EMI calculator offered by leading financial institutions. All you need to do is enter a few basic details such as loan amount, interest rate and tenure to get results in a few minutes.

Thus, follow all the steps mentioned above to get a personal loan of Rs. 10 lakh and meet your monetary obligations easily. Besides, check the EMI for a personal loan of Rs. 10 lakh beforehand to plan your finances accordingly.

October 15, 2022 0 comments

Business & Finance Loan

What Are The Key Considerations When Taking a Personal Loan?

by adminSeptember 27, 2022

written by admin

With the rise of digital lending platforms in recent years, getting a loan has never been easier for the average consumer. However, passing Personal Loan eligibility from the abundant choices accessible now might be a daunting task.

It can be difficult, but choosing only one or two lenders is necessary because not all of them may not be reliable. Borrowers must read their loan agreements carefully.

Here are a few things to think about before applying for a Personal Loan:

The Right Credit Score

The approval of a Personal Loan largely depends on your credit score. The creditworthiness of a borrower is represented by a three-digit number between 300 and 900, known as a credit score. It reflects your financial situation in terms of your outstanding debts, borrowing and payback history.

You will move closer to meeting Personal Loan Eligibility criteria when your Experian credit score is higher. The Experian score is a numeric value assigned by the credit beurea Experian, indicating the repayment capacity of an individual. It significantly impacts the loan terms (interest rate and EMI) and the loan amount that can be approved for you. Personal Loans with favorable terms are more likely to be offered to those with Experian scores above 630.

When choosing a Personal Loan provider, it’s important to keep all these things in mind. Your long-term financial well-being can be guaranteed by committing to a loan provider who provides both low-interest rates and a manageable payback schedule.

Examine The Variations In Interest Rates

After a shortlist of loan options has been compiled, further research can be conducted to learn about the various terms and conditions to choose the best course of action. The interest rates offered may vary for all credit products.

You can read the frequently asked questions sections of each product thoroughly so you can compare processing fees and other key factors.

A word of caution for people applying for loans at different NBFCs, narrow down your loan options to just one lender to avoid too many hard inquiries on your credit score. This might affect a person’s Personal Loan eligibility because it signifies the loan provider that the borrower is a credit hungry user.

You can check for promotional deals or programs that can lower the final interest rate. Find out if you qualify for any to get a better interest rate and pay less each month.

Determine The Best Lending Option

Both conventional financial institutions (banks, NBFCs) and innovative companies (Fintech, digital NBFCs) offer Personal Loans to borrowers nowadays. Traditional institutions like banks have stricter documentation requirements and longer processing times. So, they are not ideal when you need quick access to money.

Fintech and NBFCs require little to no paperwork because it is possible to quickly determine a customer’s creditworthiness online. This allows funds from loans to be disbursed quickly.

Loan Repayment Tenure

The sooner a loan is paid back once it is taken out, the better. However, a shorter period for repayment transcends to higher EMIs due to the reduced number of installments.

Failure to repay a loan EMI on time can harm your credit score, making it more difficult to obtain credit in the future. When taking a loan, it is important to understand loan repayments and loan tenure.

Fees Associated With Foreclosure And Prepayment

Foreclosure and prepayment fees are another group of costs that you might find while applying for a Personal Loan. These fees will be incurred if the borrower pays off the loan before the end of the agreed-upon term.

Examining the fees associated with various loan options will help you zero in on the one that gives you the most leeway in terms of making partial or full repayments.

Conclusion:

Beforeapplying for Personal Loan, it’s a good idea to consider the loan provider’s reliability and customer service in light of your financial goals. Clix Capital is among the top new age NBFCs that has been helping Indians achieve financial independence.

There is no limit to options when it comes to applying for a personal loan, but finding the one that’s best for you takes some legwork. It would be best if you weighed the benefits and drawbacks of several loan products before deciding on one and then sign the paperwork for a loan that meets your needs with respect to interest rates, repayment terms, and loan terms.

September 27, 2022 0 comments

Loan

What Are the Different Types of Personal Loans That Exist Today?

by adminMarch 15, 2022

written by admin

Did you know the current American consumer debt is $15.6 trillion?

This staggering figure shows the sheer number of Americans getting into debt. When getting a loan, ensure you make the most out of it. It means choosing the best personal loans for your financial situation.

Getting the wrong types of personal loans could result in long-term budget strain. For this reason, you have to learn about your options. Read on as we discuss the most common ones around.

Unsecured Personal Loans

Most personal loans fall under this category. It means you need not back it up with collateral, like your house or vehicle. Lenders suffer from higher risks, resulting in a more expensive annual percentage rate.

Your loan approval and APR depend on your credit score. The lenders also consider your income and other ongoing debts. In most cases, it’s between 6% and 36% with a two to seven-year repayment term.

Secured Personal Loans

These loans use collateral, meaning lenders can seize them if you default. Famous examples of these types of personal loans include mortgages and auto loans.

Some banks and other financial institution entities allow loans using another asset. Regardless, these loans have lower APRs since lenders have less risk.

Fixed-Rate Loans

Most personal loans have fixed rates. It means the installments will stay the same for the entire repayment duration. These are great if you like consistent monthly payments.

It also makes sense when you want to avoid rising long-term loan rates. After all, an average three-year fixed-rate loan has a 13.19% APR. It only applies when you have an excellent credit score.

Having a fixed rate means you have an easier time budgeting. After all, you need not worry about your payments increasing over time.

Variable-Rate Loans

These are the opposite of fixed-rate loans since they tie into a bank’s benchmark rate. The rate of your loan depends on it, alongside your monthly payments and interest costs.

Most variable-rate loans could carry lower APRs than fixed-rate ones. It also has a cap, limiting the rate of change over a specific period. The limit also applies throughout the loan.

Bridge Loans

Bridge loans are short-term since you can use them to pay an existing loan. It’s the best personal loan if you have no funds to make payments on time.

Applying, approving, and funding for bridge loans are faster than most types of personal loans. It allows you to manage your personal finances better.

Your business could run into cash flow problems due to long payment cycles. Solve this issue with bridge financing to cover expenses before getting payment. Check out this link and learn more.

Learn Other Types of Personal Loans Now

These are common types of personal loans. Never let the lack of money management hinder your financial status. Use the best personal loans for your situation to avert budget strains.

However, your choice of financial institution could affect your success.

Did you find this guide helpful? If so, consider reading our other posts for more valuable tips today.

March 15, 2022 0 comments

Business & Finance Loan

10 Dos and Don’ts to Follow While Applying for a Personal Loan

by adminAugust 24, 2020

written by admin

The personal loan market has been growing steadily over the last few years. A month on month comparison between January 2019 and 2020 shows that in 2020 the personal loan segment witnessed a growth of 16.9% per cent. The number is expected to be higher for the first financial quarter of 2020-21 because of the havoc caused by the Coronavirus.

The Global Lockdown has led to the loss of incomes, and a personal loan is an easy option in these difficult times. Nearly all banks, NBFCs, HFCs and other creditable lending institutions offer this type of credit. While personal loans are readily available, it is essential to keep a few dos and don’ts in mind before filing a loan application.

The Personal Loan Dos and Don’ts

Conducting a thorough Investigation

Many first-time borrowers do a quick Google search for “personal loan apply” and visit the first of two results. Who has the time to search the nearly 700 crore searches that the search engine can produce in less than 100 seconds?

Do – a thorough search requires you to visit the website of at least 3-7 lending institutions. Follow this up with comparing the eligibility, terms and conditions and interest rate.

Don’t –hesitate to get in touch with customer care executives to understand processes and procedures. It will help tick-off the lending institution not suited to your loan requirement.

Understanding your Financial Obligation

Every person has a credit and debit account – earnings vs expenses. An income could be salaries or income from property, shares, etc. Costs would include but not be limited to your daily needs, travel expenses, shopping, insurance premium, educational expenses and EMI or other loans.

Do – create a checklist of necessary and avoidable expenses. Let us assume; you take a personal vehicle for the daily commute. Appropriate expenses will include insurance premium, service costs, petrol, and parking. However, a new car stereo will fall under avoidable expenses.

Don’t – overlook upcoming expenditures such as a planned trip or school admission. It is also necessary to prepare for financial contingencies. It ensures you have sufficient funds to repay EMIs on their due dates.

Calculating the EMI

The most crucial aspect of any retail loan is the equated monthly instalment or EMI. With each EMI, the borrower pays back some part of the principal amount and interest to the lender.

Do – use the free EMI calculator offered by all lending institutions. You can use these easy-to-use tools multiple times. Input loan amount, tenure, and interest rate to get the EMI instantly. Adjust tenure or loan amount to calculate an EMI that you can afford. Read the amortisation table to know the principal amount and interest amount paid with each EMI.

Don’t – forget that you will pay the EMI every month. Missing out on a single EMI leads to a penalty. Take time to understand the penalty clause as well are prepayment charges before you fill the loan application form. It is also recommended to sign up for direct debit / ECS facility so that you don’t miss out on EMI payments.

Partnering with a Trustworthy Lender

Did you know that there are nearly 10,000 NBFCs registered with the Reserve Bank of India? The number of lending institutions increases exponentially when banks and Housing Finance Companies are added to the mix.

Do – get answers to these questions – How long has the NBFC been in operation in India? Is it a stand-alone institution or does a respectable parent company back it? Do customer care executives have clarity in their communication? Do they discuss all applicable costs and charges?

Don’t – forget to read reviews. It is a great way to judge the lending institution’s trustworthiness. With so many choices, searching for the right lending institution can seem like a Herculean task. But reviews, ratings and communication are necessary for informed decision making.

Following Processes and Protocols

We have already mentioned the need to understand the processes and protocols. Once you have finalised the lender, you need to follow each process and protocol. One of the essential protocols is for eligibility and documents.

Do – remember that your credit score is one of the most important criteria to meet. Typically, you require a CIBIL score of 750 for loan approval. Other eligibility criteria include age and income. Personal loan documents required include proof of age, income and residence. In case you are not meeting the requirements, you can explore the option of taking on a co-borrower.

Don’t – file an incomplete or incorrect application. Missing out on the documents required by the lender is an incomplete application. It will lead to rejection which will harm the credit/CIBIL score.

Personal loans are one of the most accessible loans to get in India. Following the above dos and don’ts can undoubtedly help you to choose a lender and loan amount that suits personal requirements. Ensure that you are filling and filing application only when you are 100% sure!

August 24, 2020 0 comments

Business & Finance Loan

How Personal Loans are better than Credit Cards?

by adminOctober 18, 2019

written by admin

Why go for Personal Loan?

When you are trying to apply for online Personal Loan in India this means that you are doing the best for you and in the right way. Personal Loan is taken in when you need them during the time of management of your source and in the best way here. This means that these types of loans are taken in when you need immediate cash and you need to assess your expense with the use of the cash that you get from the bank here.

Why go for credit cards?

Credit cards are an option when you are trying to take a credit limit from the bank. This means that it can only happen when you are trying to do the best for yourself. Credit cards are applied when you want to apply for credit reasons from the bank here. There is some source for which can work out for here and in the best way.

Pros of Personal Loan

You can always spend less when you have a Personal Loan. This means that during the time of taking Personal Loan, you are about to take it for a limit for yourself. So, this can be done if you want to spend less here.
Remove the temptation of spending more and more here. This means that sometimes to Apply for online Personal Loan in India can be the right choice for you because you will not be faltered with the temptation here.
There is always a fixed rate and tenure for your Personal Loan here. This means that here since there is a fixed rate here for you to manage.

Cons of credit cards.

When you are taking credit cards for yourself then there is always a source to overspend on items that you are bringing for yourself.

There is never a fixed rate for your credit card. This means that you can spend as much as you want here. Because the more you spend, the more you will have to pay here as well.
You will always be burdened with the liability on your head. This means that you will always worry that there is not enough source of money through which you can spend the liability that you have taken in for yourself here.
Plus there is a list of instalment payments that you have to source out for yourself here. This means that the more you spend your credit card, the more installment that you have to spend for yourself. There are other things that can work out for your credit card too. Personal Loan is a better option for you.

Why go for Personal Loan here?

When you want to Personal LoanApply online Personal Loan in Indiathen you must take care of one thing that private loans are always better than credit cards. Therefore.

There is no overspending here. This means that you will be getting the amount that you have got from the bank and there is nothing else.
Credit cards will always put a burden on you, and this can be wrong for you as well. Therefore, you need to opt for something which can work for you and in the right way.
With the help of Personal Loan in Mumbai, you will get a lot of options for yourself as well. You can now fulfill your dreams that you want and in the right way too.

Personal Loan in Mumbai can help you out with a lot more than you think. So, if you want to apply for Personal Loan here then you can always choose the best for yourself and in the right way too.

You can also read: Why go for Personal Loan to fulfill your requirements?

October 18, 2019 0 comments