6 Smart Reasons To Get A Business Loan

Posted on December 21, 2020 by James Paul

People have different kinds of opinions around the world about taking business loans. Some people like the idea of where other people are completely against it. However, the truth is that if you are looking forward to expanding the range of your business venture in the long term, then it is a smart idea to take business loans. If you take business loans, then you will be able to continue your business venture successfully as an entrepreneur.

Indeed, many people do not want to go in that’s after taking business loans, but there are many good reasons to take business loans and take advantage of that. So if you want your business to succeed in the future, then you should consider applying for a business loan.

In this article, we are going to discuss six smart reasons to get a business loan. So keep on reading to find out more information below about business loans.

Here are top reasons to take a business loan.

Expansion Of Physical Location

If your business is going very well and you want to expand it on a long-term basis, then it is the right time to take a business loan to expand it even further. For example, if you are the owner of a retail store or a restaurant and your business is going well that you are running out of space for more customers.

In such a case, it is the perfect opportunity to expand your physical location into other regions and to invest in more franchises of your business. So if your main motive is the expansion of the physical location of your business area, then it is a smart listen to take a small business loan in this regard.

Future Credit

If you want to create future credit for your business for a large scale financing, then it is a smart decision to take a business loan to fulfill this purpose. It is a feasible option to have some business credit beforehand. After taking the business loan, you will be able to make your payments on time, and hence you will be able to develop a trusting relationship with your lenders.

Business Equipment

Taking small business loans to purchase business equipment is one of the most common reasons. If you want to improve the quality of your business operations, then it is a smart decision to take a small business loan for purchasing its equipment and other things to enhance the services for the consumers.

Inventory

Inventory is the basic commodity for keeping the business running on a long-term basis without any issues in the operations. If you want to purchase more inventories for your business, then taking a small business loan in this regard will be a smart decision. If you run a seasonal type of business, then you might need a large amount of inventory during that season. Such a time is the right time to get a small business loan.

Business Opportunity

If you recently got a business opportunity that can be very profitable for you in the future, then you can take a business loan.

Skilled Workers

If you want to hire skilled employees to give a boost to your start a business, then it is the right time to take a business loan.

A Complete Online Guide to Choosing and Paying Off a Financial Loan

Posted on November 14, 2020 by James Paul

Learning about financial loans has become a necessity for those who want to get the most out of life. It would be nice if children were taught these financial truths, but the reality is that many of these concepts are very sophisticated and complicated. We will discuss what you need to consider when choosing and paying off a financial loan.

Everyone has a different reason for needing money. Finding the best fitting loan should be the goal when you borrow money, and luckily for you, BoomerBuyerGuides can help you with that. This complete online guide to choosing and paying off a financial loan will compare traditional and alternative lenders, so you can find the best loan.

Choosing Financing Products

The finance industry continues to divide itself into more sub-categories. Everyone is aware, conscious and familiar with the traditional banking sector. Traditional bankers tend to be very conservative, requiring a lot of paperwork and creating an application process full of red tape.

Gradually, the increase in wealth throughout the world has led to more alternative lenders being available. Those with bad credit might want to consider creative financing. These are the primary factors for choosing the right loan:

Characteristics
Needs
Speed
Length
Cost

Sit down and list your own personal preferences for each of these factors. Use this list to separate lenders from one another.

Characteristics

Traditional lenders (i.e. banks) have a very rigid application process looking at your income, assets and credit score. Some of their processes have become very robotic. They have a lot of red tape, but can usually offer larger loan amounts.

The alternative lending sector has arisen as a counterpoint to the stodgy banks. With alternative lenders, there is more flexibility in how borrower characteristics are assessed. For example, most non-traditional lenders require less paperwork.

Needs

Amazingly, many banks think that they have a right to know what you are spending the money on. In fact, for the top businesses, Wall Street banks will restrict how they can spend their money. Some banks think they are your boss.

The problem with this is manifold. While some banks might think they are experts at everything, they are actually quite limited in their knowledge. They might be able to crunch numbers, but you know more about your needs than they do.

In contrast, most alternative lenders really don’t care how you spend your money. It belongs to you. They simply want you to repay the funds on time.

America was founded on the freedom to work hard and be productive. You can use your funds to pay off credit cards, plan a vacation or start a business. The best alternative lenders will treat you as mature individuals, responsible for spending your money wisely.

Speed

Many individuals and financial experts have noticed that large mainstream banks have created a slower, more bureaucratic process for loan applications. This might be due to lingering economic problems or their increased internationalization. Some of the largest banks have headquarters in distant cities; sometimes, the headquarters are even in foreign countries.

Unfortunately, due to the large vertical structure of many traditional lenders, the loan authorization process has become vastly lengthened. You might not be able to get authorization from a local branch manager; your paperwork might be sent to headquarters for authorization. All of this takes time.

Online lenders will tend to have a more horizontal, flat organizational structure. They understand that one of the expectations of online lending is speed. Therefore, they will create a loan authorization process that is faster.

Compare these loans to find the one that best fits your needs. Sometimes, there is a very lucrative opportunity that might not last for a long time. If you get the money you need, you can make a healthy profit. But, time is of the essence.

Length

The loan length for most traditional lenders tends to be quite varied. This is definitely a lucrative benefit of the largest banks. They might offer loan financing for months or years.

Many large banks have a myriad of lending clients – governments, corporations and individuals. Governments and corporations will tend to require a longer time frame for their loans. Most individuals will prefer short-term loans.

Alternative loans will tend to be for shorter periods of time. Therefore, they are ideal for those who need money fast. The alternative lenders are less likely to establish long-term lines of credit.

Cost

Many banks have numerous brochures listing a cornucopia of financial products. Generally, these financial packages are created by corporate headquarters and sent to the branches. Therefore, you will have more cookie-cutter loan variations.

The large traditional lenders will want you to fit their lending parameters. They are not likely to adjust their financial packages to fit your needs. Large financial institutions have a take it or leave it mentality. They are more likely to reject loan applications from those with bad credit.

This is in contrast to how most alternative lenders work. Many of them are flush with cash. They need to make loans to ensure that their money is fully invested in productive purposes.

Therefore, they will focus on finding a way to provide you with money. Risk management is a key element of all bankers, but the alternative lenders have more control over their risk management. Thus, they are more likely to lend to high risk, no credit or bad credit borrowers. Alternative lenders will try to adjust the cost of the loan, so that the loan can be approved.

Best Fitting Loan

So, be completely honest about your financial characteristics. Many will want to borrow more than they need; but this can lead to serious problems, if you cannot pay it off. Find an affordable loan.

Carefully balance your needs and wants. Choose a financial loan that fits your capacity to pay it off in a timely manner. When you do that – everybody will be happy with your financial loan choice.

How to Determine if a Car Title Loan is Right for You

Posted on August 7, 2020 by James Paul

Do You Need Cash Fast?

No matter how well we plan our lives, we sometimes run into gaps in our finances to cover emergencies or unplanned events. Those who can get through life without needing a little extra cash are incredibly lucky people — but not everyone has that experience.

For those who need a way to get money quickly, but have very limited options from where they could get it, car title loans are a viable way to borrow money for a short period of time without penalty to your credit score. So, is a car title loan right for you?

You don’t need a good credit score to get a title loan.

If you’ve struggled with a checkered credit history, then you know that traditional lenders like banks will turn you down for a personal loan, no matter how small, just because of your credit score. Many people with lower credit scores have to shop around from bank to bank. Each time an institution performs a credit check, your score gets lower and lower.

However, even with bad credit, you can still qualify for a car title loan. Car title loan companies don’t check your credit, and only care that you have the means of paying back your loan. These companies work every day to even the financial playing field for those in need of cash.

If you own your own vehicle, you can get a title loan.

Instead of holding your credit score over your head to motivate you to pay back a traditional personal loan, you need only to put your current vehicle up for collateral on a car title loan. If you own your vehicle outright and have no other liens on your car’s title, you can get a title loan based on the value of your vehicle and your monthly budget.

Car title loan companies will hang onto your title for you for the duration of your loan, but you can keep your car keys and continue driving your vehicle. You will receive your car title when you’ve paid off the value of your car title loan, plus interest.

A car title loan is right for you if you only need a loan for a very short time.

A personal loan can have a lengthy payback term that you might have to agree to before accepting the loan money. However, car title loans are designed to be short-term loans, which allow you to quickly pay them back and get on with your life.

Generally speaking, car title loan companies will give you at least until your next payday, if not an entire month, to repay your loan from them. Many car title loan agencies offer flexible repayment plans and will work with you to determine the best loan duration for your situation.

Car title loans let you borrow a small amount of money, or a larger sum.

Depending on why you need to take out a loan, you may only need a couple hundred dollars. It hardly seems like time well spent to visit multiple banks to see if they can offer you financing, and most people dread calling family members to ask if they could borrow money.

If you need a small amount of money, from $100 up to a couple thousand, depending on the value of your car, a car title loan could be the answer to your financial problems. Plus, car title loans are awarded quickly, so you won’t need to wait hours, or even overnight, for the bank to contact you back to let you know of your approval status.

Car title loans are paid back to a local business.

When you borrow money from a major financial institution, like a bank, you might need to mail off your payment to an unfamiliar address. It’s hard to trust companies you’ve never worked with before, or can’t interact with in your community.

However, a local title loan company accepts your payments directly, either by dropping them off, sending them in the mail, or through special electronic processes like auto-debit or online accounts. No matter which method you choose to repay your loan, you can rest assured that the company getting your money is the very same one that you visited when you applied to take out your loan, and you can contact the financial experts there any time you have a question.

Car title loans are designed to help you.

If you’re in a bind financially and need some money to get you through, a car title loan may be the right choice for you. If you’re interested in a title loan as an option, grab your car’s title and drive down to your local car title agency to learn how you could leave with cash-in-hand the very same day.

Installment Loans Online: 7 Reasons Why Should Apply for It

Posted on April 10, 2020 by James Paul

There are circumstances in life that you need money to cover for sudden or emergency expenses. Perhaps, your emergency fund is not enough to shoulder the required amount, so you have to borrow the much-needed cash. In such a time of financial emergency, getting an installment loan is an excellent idea.

An installment loan allows you to borrow cash and pay it back with set installment payments. You can pay the loan in smaller chunks weekly, monthly, quarterly, semi-annually, or annually until the maturity date. Read this article to learn more on installment loans online and the advantages of applying for it.

Less Hassle When Applying for It

Many folks out there apply for online installment loans because of the convenient and pretty straightforward application process. As long as you have a mobile gadget, such as a tablet, smartphone, or laptop, you can apply for an online installment loan in the comfort of your home or while you’re on the go.

Look for the online application form on the website of the lender and fill it out with the necessary information. Then, wait until your loan application is approved.

Fast Cash

Aside from the no-hassle process of the loan application, you can get the money you need fast when you apply for an online installment loan. After submitting the application form, you’ll get notified within several minutes about the status of your loan application.

Once you successfully get the approval from the lender, the loan amount will reflect on your account within 24 hours or the next business day. Since you can take out the money fast, an online installment loan is a perfect loan product to apply for when you want to pay for immediate expenses.

No Strict Loan Requirements

Having a poor credit rating is a big hindrance to borrowing money from credit unions and banks nowadays. These lending institutions make sure that you have an established credit profile and a good credit score before they approve your application.

Thanks to online installment loans, you can now borrow cash even with an imperfect credit profile. Online lenders don’t impose strict qualification requirements, and many of them don’t perform credit history checks.

If the lender sees that you can pay what you owe them at the end of the loan’s lifespan, they won’t hesitate to approve your loan application, even if you have a poor credit rating.

Ease of Repayment

One of the advantages of getting an installment loan online is the benefit of manageable repayment fees and schedules. Depending on the loan amount and the lender, you can even decide the schedule of the installment payments. For instance, you can choose to pay semi-annually, quarterly, or monthly.

The lender won’t also let it happen that you fail to repay the whole loan amount at the end of the loan’s lifespan because there will be a matching of the amount you’re borrowing and the frequency and volume of your income. Some deals also come with a low-interest rate, but this varies from lender to lender.

You Can Compare Multiple Lenders

You can find a lot of online lenders nowadays who offer online installment loans. So, you can compare multiple lenders and choose the best one who provides the best deal. Consider factors, such as loan approval speed, loan terms, interest rates, and overhead fees when you decide who will be your lender.

Also, pick a legit site when you apply for an installment loan online. Don’t forget to read the reviews, privacy policy, and terms and conditions of the website.

You Can Take Out a High Loan Amount

Most online installment loan lenders offer higher amounts of loans for longer loan terms. That’s why an online installment loan is perfect for those who want to borrow money to cover costly purchases, such as home loans or auto loans.

If you don’t want the burden of having multiple loans at the same time, applying for an installment loan is an excellent idea due to the higher loan amounts that you can take out.

Rollover Option

While it’s advisable to repay your loan at the scheduled end date, there are instances that you can’t repay the entire loan amount on time. But, with online installment loans, you have the option to roll over the loan to prevent getting negative information on your credit profile.

Aside from the rollover option, you can also opt to get another loan that has advantageous loan terms to pay off your original loan.

Takeaway

If you need to borrow money, you should consider online installment loans. This type of loan is the perfect loan product for people who want to take out fast cash without getting through a lengthy application process.

It also comes with higher loan amounts, manageable repayment terms, and a rollover option. Plus, you can get this loan even with a poor credit score.

How Availing of a Personal Loan can Help Boost the Credit Score

Posted on March 16, 2020 by James Paul

In today’s money market, personal loans are the most preferable credit option. It is a type of “unsecured” loan which signifies that banks do not take any collateral from a borrower for security purposes. The eligibility for acquiring a personal loan depends upon the credit score of a consumer. A good credit score reflects that a borrower is financially responsible as well as capable enough to repay the loan. Apart from the thing that the approval of a personal loan largely depends on the borrower’s credit score, an individual can also avail a personal in order to boost his credit score. A personal loan for a good credit score is significantly important.

A good credit score plays a very crucial role in determining the eligibility of a consumer to avail a personal loan.

What is A Credit Score?

A credit score is a 3-digit number which reflects the individual’s credit history. It shows the goodwill that a person holds in the credit market. It is calculated based on the credit history of a person. A lender evaluates a loan seeker’s credit score to estimate his ability to repay the loan. The credit score ranges between 300 and 850. A credit score of 700 or more than that is considered good enough for a consumer, for personal loan apply. A consumer possessing a good credit score can avail a personal loan at a lower interest rate than the usual. It also determines the amount of loan that would be sanctioned by the lender. To boost your credit score, you can consider going for personal loan apply. How can this be done? Before learning this, it is important to know how a credit score is calculated.

How Credit Score Is Calculated?

A credit score is calculated based on the following five factors:

Repayment history – The most important factor is the repayment history of a borrower as it shows how sincerely he repays his debts. Regular EMI payments improve an individual’s credit score. One should maintain a consistent and scheduled repayment record to secure a good credit score.
Total credit owed by a person – The total amount of loan taken by a person is also a factor that is taken into account for calculating his credit score. It is important because it shows the borrower’s current repayment ability.
Length of credit history – The time period of a loan is also taken into account to calculate the credit score because it helps in providing more data of repayment history of the borrower and also shows his long-term history in the credit market.
Type of credit – The previous credit records of a consumer are evaluated to understand which type of credit was taken by him/her. Usually, a large number of unsecured credits amounts to a poor credit rating. Try to maintain a mixed bag of secured and unsecured credits.

How Can Personal Loan Boost Your Credit Score?

A personal loan is repaid through regular monthly installments(EMIs), which is usually a long term process. As it has been noted, credit scores highly depend upon repayment history of a borrower. Therefore, a long credit history would help in building a good credit score. Personal loans have higher interest rates than other secured loans. A person who potentially pays his/her EMIs is considered to be faithful and responsible.

However, one may also follow the given guidelines to boost his credit score by a personal loan apply-

Loan seekers who do not have any collateral/mortgage to submit as a security to the banks cannot avail a secured loan. These people usually have a low credit score. Availing a personal loan can help them to boost their credit score. If one possesses a good monthly income and has maintained goodwill with a bank, they can avail a personal loan and use it to increase their credit score.
A person who has never taken any credit from the money market can avail a small amount of personal loan by buying any durable good (like a laptop, refrigerator etc.) and build a basic credit score. If one repays such small loans without any failure, he can achieve a decent credit score.
Unlike credit cards, where a person has to pay the debt as a whole, a personal loan has fixed repayment terms which bound a borrower to be consistent with his/her repayment process. Regular scheduled repayment helps to increase a borrower’s credit score.
Do not apply for multiple loans in different banks at the same time. Everytime a person applies for a loan, banks conduct a detailed enquiry on their profile, known as a hard enquiry, which lowers the credit score.
Avoid closing a personal loan prematurely. It affects a loan tenure which has a negative impact on the credit score of a borrower.
Use a personal loan for debt consolidation. It would help you manage your payments consistently which is important for a good credit score. You may personal loan apply to pay all your outstanding debts.

A personal loan apply is a very convenient and consumer-friendly credit facility. It not only helps in boosting a person’s credit score but also helps one to manage their debts with ease.

Loan Apps: Applying for Personal Loans Simplified in 2020

Posted on February 10, 2020 by James Paul

A few years ago, applying for a personal loan was a cumbersome process. One had to visit the lender’s office, fill out an application form, submit physical copies of KYC documents, bank statement, sign the forms and wait for weeks to get loan approval. However, in today’s times of digital advancement, getting a personal loan has now simple; you don’t have to look beyond your smartphone to get instant access to funds. Many banks, NBFCs and online lenders in India have made optimum use of technology to offer quick personal loans to salaried professionals via personal loan apps. A personal loan app is an application that you can download from iOS or Google Play store to conveniently apply and get quick personal loans. Installing the application on your phone makes it simple for you to not just get the loan, but also helps you access details of your loan. So, if you are thinking about whether or not to download a personal loan app, then here we tell you how the app has made the loan application process a cakewalk.

Reasons why you should install a personal loan app today:

Helps you get emergency funds: A personal loan app helps you get quick access to funds, thereby making it easy for you to cater to emergency financial requirements. In case you are in need of urgent cash, then the app makes it easy for you to get funds on the go. Whether you are in some other country or have to pay off credit card bill or even need funds to cater to a medical emergency, you can simply download the app and apply for the loan online.

Saves time and effort: An instant loan app makes it possible for you to get quick access to loan services on 24*7 basis. Whether you are travelling or are at home or in the office, you can simply apply for a loan anytime from anywhere. A few years ago, lenders required you to visit their office for physical documentation and verification process. But now, you no more have to do any paperwork or visit any lender’s office. The personal loan apps have made the loan application process fully digital by enabling eKYC feature that helps you submit all your details online. You can further upload the documents online in JPG or PDF format, thus saving your time and effort.

Safe and secured: When it comes to applying for a loan via a personal loan app, people are very often concerned about the security of the details submitted. But with the advent of technology lenders in India design apps that are 100% secure and trustworthy. You don’t have to worry about losing your money as all your personal information is secured with encryption technologies.

Minimal documentation: Since the loan application process is done online, you don’t have to follow a lengthy documentation process. All you have to submit is your address proof, identity proof and income documents. You can upload the documents online to help lender verify your personal and professional information.

Cater to multiple personal expenses: Whatever line of expenses you have to cater to, a personal loan app can be easily accessed from your phone to address different financial situations. You can easily buy a smartphone, pay off your wedding expenses, get your house renovated, use the money to pay education fee and others. Having a personal loan app in your pocket makes it simple for you to get a huge loan amount in a hassle-free way.

Quick access to all loan related information: You have 24*7 access to all your loan related information. The app not just makes it possible for you to get quick cash, but also displays loan related information like your EMI details, interest rate, foreclosure charges, loan tenure and outstanding principal amount.

How to apply for personal loan using a loan app?

Download an instant personal loan app from Google Play store or iOS

Log in to the application using your Gmail or Facebook address
Submit your personal and professional details
Upload KYC documents-address proof, identity proof and income documents like your salary slip and bank statement
On the basis of the information provided, the lender will verify your details
On successful approval, you can proceed with submitting additional details and verifying your bank statement online
On successful verification, the loan amount is disbursed instantly or within 24-48 hours depending on the disbursal process of the lender.

Conclusion

There are several benefits of using a personal loan app if you have a decent credit score and comply with the lender’s eligibility criteria. A loan app can thus be your saviour in times of a financial emergency owing to simple application and minimum documentation process. The app can help you get out of a financial emergency within a few hours and help you save on your time and effort as well.

How to Check your Personal Loan Status? Everything you Need to Know

Posted on January 23, 2020 by James Paul

Personal loans are unsecured loans that are granted by banks and other financial institutions to prospective and eligible borrowers agreeing to repay the financial assistance within a specifically defined period of time.

Individuals who have applied for a personal loan are oftentimes in a constant state of doubt and panic regarding the status of their loan application. Here are a few suggestive means through which loan applicants can check their Personal Loan status.

You can check your personal loan status online with the help of your device. Source: Ambit

How to check your Personal Loan status – Online Method

The easiest and the most time-efficient way to track the status of your personal loan status is via online mode.

Almost all banks and lending institutions give the loan applicants the opportunity to check their personal loan status via option available on their official websites. All you need to do is visit the official website of your chosen bank lending institution and then locate the option available to check the loan status. You will be required to enter certain specific details such as:-

Reference number of your application
Contact details (Mobile Number)
Date of birth
Name

Once the verification of the entered details is done, you will be able to access your personal loan application status. There are a few other online means apart from the official websites through which you can check the loan application status.

Check your personal loan status via Net Banking

Personal loan applicants can also track their application via net banking facilities offered by their respective banks or lenders. This method might be all the more convenient for existing customers. One simply needs to log in to their net banking portal or ap, locate the loan related page and then enter the required details to track the current status of their personal loan application.

Check your personal loan status via your registered mobile number

While the loan application is in the initial application stage, the bank/lender requires your mobile number so that they are able to contact you in the near future. Most banks and financial institutions give the opportunity to track personal loan application status via this registered mobile number.

How to track the status of your personal loan application via customer service

All major banks and lending institutions have robust and responsive customer service. This service is not only for account opening queries but can also be utilized to check the status of your personal loan application.

Applicants can contact their bank/lender via their contact number or the email address as given on their official website, and documents. In case you opt to call the customer service, make sure to keep your registered contact details and application reference number closeby before calling the customer service. Once you provide the required details, the executive will be able to inform you about the current status of your personal loan application within minutes.

Considering you decide to contact your bank via email, compose the mail in a very clear and crisp manner with all the necessary details and information such as the reference number of your loan application, date of birth, personal details such as contact number, name, etc. Your bank will most probably get back to you with a status update within 24-48 hours.

Offline method to check your personal loan application status

One of the most basic and most obvious ways to get any sort of update regarding bank and loan associated issues is to physically visit the nearest branch of your respective bank/lender. Despite the growing number of customers opting for various modern means, there are still a large number of customers who prefer offline methods. Whether you are not familiar with modern ways of technology or you simply find it more convenient you can simply visit the bank branch and check your application for your personal loan.

Go to the nearest branch of your chosen bank/lending institute. Carry the necessary documents to avoid multiple trips. The application reference number, identity proof are some of the basic and most important things you should have. Enquire about your issue with a bank representative and they will be delegated to help you and you will be updated on the current standings of your personal loan application.

However, it is arguably a better option to opt for online methods like website portals, net banking facilities, etc in order to avoid unnecessary harassment to both parties and it is also not the most time-efficient method.

One may wonder whether checking your personal loan status is actually of any significance, well it is. In case your personal loan application, unfortunately, gets rejected instead of unknowingly waiting for the loan to be approved you can start looking for other assistance or enquire about it to the bank. Keeping yourself up to date is always beneficial in every case and checking personal loan status with time duly falls in that category.

Factors that affect personal loan applications:

Income of the applicant: The loan application is heavily dependent on the ability to repay the loan amount by the applicant within the specified tenure. This repayment can be assured by the assessment of the applicant’s income. If the person has a higher income or a more stable means of repayment, he is more likely to get financial assistance. Higher amounts of income also imply higher chances to get a better loan amount. However, applicants with lower income are not neglected, lending institutions offer a lot of flexible options of repayment.

Employment history of the applicant:

Most individuals earn their income and maintain their livelihood via employment. The lender will obviously want to assure that the loan lent is repaid, for this, they will need to assess whether the applicant has a steady and stable income source. The employment history will determine the chances of the application being approved, delayed or declined.

For example, if the loan applicant has a steady record of being employed in one particular establishment for a good period of time, usually at least for 24 months, it will indicate that the applicant is reliable and more capable of repayment. Being employed at a highly reputed establishment can also positively affect the loan application.

Repayment of pre-existing debts and credit:

Apart from factors like income and employment that affect one’s personal loan application, other debts that a person owes and already existing credits also play a major role in affecting and impacting the personal loan application. If the applicant is already under pressure of repaying previously borrowed loans and debts from various borrowings and credit cards etc, the chances of the application being accepted for yet another personal loan will diminish drastically.

The lender will determine the fate of the loan application with the help of a ratio that consists of the monthly debt repayment and the income of the applicant. This ratio is known as DTI (debt to income ratio). In most cases, it is ideal if the debt repayment amount remains below 35 per cent of the income. Exceeding this percentage indicates that the personal loan application is more likely to be declined as lenders will consider that the applicant’s repayment ability is not up to mark.

Collateral guarantee:

Applicants who are struggling with other factors like low credit score, limited means of income or inconsistent employment status still have a slight chance to acquire the personal loan with the help of collateral as security. Lenders and financial institutions who were otherwise reluctant in processing and accepting the personal loan application due to the inability of repayment will be more inclined to accept the application if there is a certainty that their financial assistance will be repaid in due time or they can seize the collateral instead.

Relationship with the bank/lending institution:

Applicants who are already customers of the bank can use this to their advantage in applying for a personal loan. If the personal loan applicant has a good relationship with the bank, it will increase the chances of the loan being granted as well as getting a good interest rate. The bank will assess and not be as wary in granting the loan, and furthermore, the applicant can also negotiate the interest rates with the bank based on this relationship.

Common reasons for rejection of personal loan applications:

Low credit score
Incomplete information on the application
Incorrect/false information provided to the bank/lender
Ineligible according to the bank/lender’s eligibility criteria
Mismatch or inconsistent signatures
Documents provided are invalid
Failing or forgetting to take NOC (No Objection Certificate) from previous lenders

Here are a few suggestions to ensure your personal loan application is successful:

Carefully map out the need for the loan: Outline a list for the objectives and motives you need the financial assistance for. Prioritize them according to the urgencies and necessities. Make sure you do not end up borrowing more than you actually require, otherwise you will be repaying interest amounts unnecessarily for a longer period of time.

Do your research and compare the best rates available:

It is essential that one does not apply for a personal loan hastily based on impulse. Enquire amongst the best options and then pick the rates and offers most suitable to your needs and requirements. This will minimize the chances of the application being rejected and also prevent you from tainting your track record of credit score history.

Maintain a decent Credit score:

One of the major reasons why most applications for a personal loan are rejected is that the applicant has a not so credible credit history. Applying for multiple loans, being careless with debt repayment, credit card dues, etc are a few determinants that harm your credit score. A good credit score will help enhance the chances of the personal loan application being granted and the loan being granted.

Assess your repayment ability:

Applicants who are applying must consider the tenure and their capacity to repay the loan before submitting the application for the personal loan. For example, if the applicant is not certain that they will be able to repay the entire amount shortly, they should opt for a longer tenure for the personal loan. Applicants must be highly aware of their repayment capabilities before applying for the personal loan so as to lessen the chances of rejection as well as to retain a good credit score track record.

Compare all additional costs:

Personal loan, apart from the loan repayment and interest rates also carry certain additional costs along in forms of the processing fee, late payment fee, prepayment fee, etc. Compare the fee rates amongst the options available in the market so that you can have a clear picture of the probable expenditures. This will help you in maintaining your finances and ultimately assess your full repayment ability.

Provide accurate and authentic details:

Applicants must provide correct and authentic information and documents in order to ensure the application for the personal loan to be successful. Any false or incorrect input provided can jeopardize your chances of the loan being granted and hamper your track record.

Personal loans are gradually dominating the lending market owing to its flexibility in all the fields that matter to the individuals in need of immediate financial assistance. It does not require any collateral and there is no need to specify the motives for the loan to the lender/financial institution. However, this opportunity to avail financial assistance should not be exploited and individuals should use the loan for objectives within the legal boundaries, any unlawful action can cause great harm and will be faced with dire consequences.

Final Words:

Applying for a personal loan these days is a simpler task. It is the research and pre-application mental exertion that takes a tad bit longer. Most banks/lending institutions have online portals on net banking and easy to follow-through options available on their official websites, through which the individuals looking for financial assistance can apply for a personal loan. However, if you are a traditionalist or simply find the offline method easier then simply visit the nearest branch of the bank and lender you have opted for and contact a bank executive who would help you through the process.

5 Reasons Why You Should Opt For An Instant Loan Online

Posted on December 28, 2019 by James Paul

It’s bad enough that most cash-crunch situations come at a time when you need money the most. But what can make matters even more stressful is finding yourself running from pillar to post trying to get your instant loan approved when you’re hard-pressed for time.

Luckily for us, digitization has taken over the world of finance, giving rise to the “paperless lending” trend. In other words, it is now possible for us to apply for an instant loan online, get approved and receive a loan at competitive interest rates through an online web and mobile portals. In fact, as of 2017, there were more than 225 alternative lending companies have been established in India. FinTech Trends Report India 2017. Price water house Coopers and Startup boot camp.

While the rise in Fin Tech and alternative lending companies make it clear that digital loan lending is gaining popularity, there are still plenty of us who are apprehensive about approaching an online lender. This is understandable because it’s quite easy to fake information in the digital world – and this can be a concern, especially where money is involved. Regardless, there are many benefits to taking an instant loan through an online channel. Here are some of them.

1. Convenience

The first thing that comes to mind when we talk about any process that’s digital and online is convenience. All a borrower needs to do is carry out some research on some good online lending services through the internet, followed by a diligent comparison of the tenure options and interest rates offered by various listed lenders. This way, he can apply and get approved for a loan that’s best suited to his needs and financial status, all from the comfort of his home or office, without the need to visit a brick-and-mortar lending institution!

2. Time-Saving

Who has the time to stand in long queues and fill out endless forms when you’re in a financial emergency? Online loan lending institutions cut their paperwork down to a minimum and require you to fill in fewer details as compared to the traditional loan application process. Once you fill out the details and submit the necessary documents that match the eligibility criteria, your request will get approved almost instantly and your money should be credited within a single business day. This will save you not just a lot of time but also money!

3. Easier Access

Most banks and credit institutions have become extremely picky when it comes to approving loans. In some cases, it can take weeks for your loan to get approved by a bank which can be a problem if you’re facing a sudden cash crunch. Online loan lenders, however, are a lot more lenient. While they do have a set of eligibility criteria rules they will still try to consider your application. For instance, you don’t necessarily need to have an excellent credit score provided you have a stable job and steady monthly income. Therefore, it is fairly easy to get your loan approved quickly with online loan lending services and, which explains why they are gaining so much popularity today.

4. Instant Approval

Online instant loans usually boast of a faster turnaround rate as compared to traditional loans. You can get your loan in just a matter of minutes provided you match the required eligibility criteria. Not only that, the loan you have applied for often gets credited to your account within 24 hours! This feature of online instant loan lending services is particularly helpful when you find yourself in a situation where you need to cough up a large amount of cash immediately.

5. No Annoying Sales Pitches

Have you noticed how banks or credit unions often try to sell you additional services or products that you don’t need when you inquire about an instant loan? None of that here! Online loan lenders just focus on one service – and that is loans. So you don’t have to put up with unnecessary sales pitches which can be very annoying when you’re hard pressed for time and money.

Remember, online loan lenders are designed to make it easier and faster for you to apply for an instant loan. While it is natural to be intimidated by this relatively new trend, we do recommend that you give it a chance. Just do your homework before you choose an online loan lending company to borrow from and you’re well in the clear!

Why Take Out a Personal Loan?

Posted on July 30, 2019 by James Paul

If you instantly think that taking out a personal loan is a bad idea, ask yourself what you would be using it for. Personal loans in Canada don’t have to be a bad thing; there are many good, legitimate reasons to take out a personal loan. Of course you would want to choose a credit limit, interest rate and payment plan that works for you; what you can afford will all depend on your credit score as it is.

Strengthen Credit

Speaking of your credit score, a personal loan can actually help you build yours. The oldest and most regularly-paid lines of credit look the best on your credit score, so steadily paying off a personal loan over time can help you in the long run. Your credit will take a small hit initially, but you will be shocked at how quickly it rebuilds and strengthens itself.

Emergencies

We’ve all had that day from hell where something massive happens: A pipe burst in the basement, the car was sideswiped or a fallen tree branch went through the window. Life happens, and dishing out thousands of dollars out-of-pocket is not a reality for everyone. Personal loans can help cushion the blow in case something in your life goes awry.

Home renovations

Repairs can become costly when left unfixed for too long, so if you need to take care of something like a crumbling foundation or a sagging roof, you might reconsider that personal loan. Is your house becoming a hazard to live in? Yes, you will be making monthly payments, but those are worth having a safe, comfortable home.

When used responsibly, personal loans don’t have to be instantly labeled as a bad thing. They can help you in many ways and can serve as a buffer between that rock and a hard place.

Lending 101: Can a Personal Loan Be Used for Business Purposes as Well?

Posted on April 14, 2019 by James Paul

The quick answer to this is YES, it can!

For someone hoping to start a small business today, lots of hurdles could possibly limit the actualization of the dream. Chief among the likeliest detriments, apparently, is the lack of adequate funding to kick-start the business.

See, almost all the mainstream financial institutions never bother to finance a startup. They will ask for a long list of requirements, some of whom being unnecessary or beyond the reach of a strong-willed entrepreneur. And so, the only alternative would be for the business person to fund the business using a personal loan.

What exactly is a Personal loan?

There’s this kind of loan whose popularity is growing by the day, all because it’s issued to offset an emergency that’s personal and understandable. Basically, borrowers get the loan for simple home improvement, to service their cars or pretty much pay off a debt. It is a fixed interest loan, issued almost instantly and without any much paperwork.

Providers could be anyone, from an ordinary brick-and-mortar bank, a credit union or an online lender like King of Kash. The loan isn’t secured against any asset, which essentially means the repayment period can be quite short and tight. All a person would need is to indicate a fixed amount to be repaid regularly and choose how long it would take to repay it all.

A Personal Loan to fund a new business is a great decision

But just because it’s a loan you often use to pay off a quick fix doesn’t mean you can’t use it this time round to finance a new business. Many people have used it in their businesses and they are doing quite good.

This loan rides on the following benefits:

#1 It’s easy to qualify for a personal loan

After knocking every lending facility and getting no financial backing, the last thing you would pray for is getting someone eager to fund you without asking questions. And that is where a personal loan provider comes in.

Getting accepted is almost automatic and, so long as you maintain an impressive credit record, the lender will keep financing your business until stands on its own. You must be above 18 years old with a remarkable credit score and permanently residing in the country.

#2 Freedom to use the money on whatever you see fit

The fact that this loan is issued directly to the individual who is interested in starting a business is impressive. You, who applied for it, are responsible for which aspect of the business the money goes to and how wise it is used. Whether you channel the whole chunk to marketing it or you take a fraction and use to pay for the premises. And you won’t be answerable to anyone, provided the loan is spent wisely.

#3 Comes with low Annual Percentage Rates (APRs)

Unlike credit card loans, personal loans are attractive for business because of their comparatively lower APRs. With or without an excellent credit limit, this benefit invariably means you will save a huge amount throughout the life of the money borrowed.

Sometimes, it could be as low as 5.99% or 6.99% which is a pretty good deal compared to the ordinary online loans that do start from 10.99%. Also, the fact that it is going straight to an investment venture can give you the confidence that repaying it back will not be impossible.

#4 Flexible repayment schedule

It’s almost natural of personal loans to be repaid once per month. And it is this attribute that seemingly favors business owners as it gives them adequate time to plan repayment well. Weekly repayment schedules that are associated with other loan types can be hectic and overwhelming.

But there’s a catch!

It is important to mention that, even with these benefits, personal loans are usually issued according to a number of factors, including the loan applicant’s credit score. They will assess your level of income, how much amount you are seeking and how you will repay it.

Also, it is often unwise to rely on a personal loan alone when starting a business. This is because; this amount is usually awarded in smaller amounts and perhaps won’t be adequate enough to get the business rolling. And even if it does, repayment might not be a guarantee since the business could take a while before profits start to trickle.

But why use a personal loan when a business loan is ideal?

Traditionally, the best loan alternatives for someone eager to start a business would be seeking a hand from family and friends. About 40% of all ordinary startups are financed this way. And it’s because, unlike a fully-fledged lender, friends would be willing to wait until the business breaks even so that they request their money back.

The idea of going for a business loan isn’t an exciting one

The problem with almost every business loan provider is their rigidity towards financing humble businesses. They will advise on choosing a business-tailored loan instead of a personal loan.

For your business loan to be approved, lots of hurdles will stand on your way. One of them is proof that indeed it is a legally operating business, capable of repaying the money when it’s due. Of course, you will also have to give collateral or security against the amount asked for. And for someone who is barely starting up, maybe there would be no security against the loan, which will force the entrepreneur to abandon the business.

The often fancy financing an already existing business

If at all, they fund the business, then they will be willing to fund an enterprise which has been running and has started to stabilize. In fact, if it has been operating for a couple of years and is already making profits, and all the paperwork is correct, then they will not hesitate to fund you. This effectively locks out a startup or a business that might have not started realizing any profits.

Lastly, business loans are usually a massive chunk of money

There’s no problem with getting a handsome amount in funding. But when the business only needs a little amount, then applying for what’s in excess of the actual amount it needs is costly. Remember, maybe you just needed a little amount to top up on your capital so that the business starts.

Where to Find the Right Lender

Clearly, choosing a personal loan can be a novel idea provided it’s well thought out and the lender agrees to it. This loan depends on several factors, key among them being your credit score. In some rare occasions, the lender may ask for security, although it is not something that’s always mandatory.

Basically, what the lender ought to know is what the purpose of the loan is. Therefore, try to be honest and upfront with the lender, explicitly explaining what you require the loan for and how you plan to repay it back. If you lie and they eventually find out, you might be blacklisted from future loans.

These are the types of personal loan providers today:

Banks and credit unions: it is expected of any bank today to have a personal loan given how fashionable this type of loan is. For most of them, the easiest way to give someone a personal loan is by checking on their most recent financial activity.

In most cases, however, the whole application process happens online, via an app where a computerized system approves the amount. Credit unions follow the same procedure too, although they base their reason to approve or decline on a person’s credit history.

Online lenders: the convenience of accessing almost everything online today has seeming forced all the non-conventional personal loan providers to provide their clients with mobile apps. And for a majority of clients, online lenders are, by far, the best options.

They make it easy to access the loan and still offer probably the most reduced rates of interest. With a lender like King of Kash, one only needs to check the lender’s rate, complete the application process and get the funds.

Alternatives to Personal Loans

Aside from a business loan, there are a couple of other alternative ways of funding a new business when you are denied a personal loan. They include:

Investors – this includes pitching to both angel investors and venture capital investors. If your idea is exciting and will appeal to them, rest assured it will be financed swiftly.
Government grants – there are several government-backed programs that fund startups without asking for too many requirements.
Credit card loans – they are quite popular and can suit the business’ need for quick funds as well.
Crowdfund – the internet is an awesome place to crowdfund. You will need to use the right platforms and convince the public that whatever they will contribute, however little, will go towards getting the business started.

So, Can a Personal Loan Be Used for Business Purposes as Well?

Yes, it is absolutely possible to fund a business using a personal loan. But this option is subject to lots of considerations, including your credit score and how much you need. And so, before you choose any particular personal loan provider, make sure you think critically about it.