Online Finance Solution and Tips for all

Tag: Personal Loan

  • What You Need to Know Before Applying for a Loan

    What You Need to Know Before Applying for a Loan

    Applying for a loan is probably everyone’s first thought when they lack money. However, while applying for one may be easy, getting the approval for a loan takes certain conditions. This is especially true in the recent years, since the global economic crisis has affected almost every country in the world. Nevertheless, getting a loan from the bank may be the only option for some people, so it’s important they know the basics before they decide to apply for the loan.

    Credit Card as an Alternative

    A personal loan is not the only form of credit. You can also consider getting a credit card, instead of applying for a loan. This is the cheap alternative, since it offers a 0 percent introductory offer on purchases. However, this can be a tricky payment method for those who enjoy shopping and don’t think much about the debt they’re making. Additionally, a long term loan is better option if you won’t be able to pay the credit card debt in time.

    Interest Rate and APR

    Interest rate and annual percentage rate can vary a lot, depending on your lender and your credit profile. If you have a good credit rating, a credit union or a bank you turned to for a loan will provide you with a very low interest. If, on the other hand, you ask a conventional finance company for a loan and your credit rating is poor, the interest rate will be higher than the one on the credit card. However, a huge advantage of conventional personal loan is that it’s not revolving credit, but installment based. This means that if you get an installment loan, the loan will reduce as you pay off each month.

    Good Credit Score

    When you decide to apply for a loan, the lender will most likely base their decision on your credit rating. It’s imperative that the credit score is flawless, and that you’re not already in debt to some other lender, or you’ll get a bad deal. What’s more, in some cases your load will be denied. If you ever get into trouble with credit rating, companies like Clean Credit can help you get a clean slate and have a piece of mind when it comes to your money.

    Early Repayment

    Even though you’re applying for a long term loan so that you can pay it off gradually, it’s possible that you’ll want to repay it earlier. However, this action will cost you, believe it or not. Many lenders will put a clause that says how much more money you’ll have to return in order to fully pay off the loan ahead time. Therefore, read the contract carefully, before you decide to take this step.

    Payment Protection Insurance

    If you’re unable to meet the repayments every month, payment protection insurance will be there to cover them. You might have a family emergency, like unemployment, sickness or an accident and so you won’t be able to repay the loan for that month. Therefore, search for the best deal and make sure you pay the loan regularly, one way, or the other. However, PPI isn’t mandatory, so if you don’t think you need to have one, don’t apply for it.

    If you ever decide to apply for a loan, make sure you check the previous information in order to get the best possible deal. It’s important that you have a good credit rating, so that you can get a loan, and repay it on time. Make sure you are familiar with the basics of applying for a credit, so that you don’t end up with a too high repayment amount. Knowledge is power, so use it to your advantage.

  • Guidelines for getting Personal Loan

    Guidelines for getting Personal Loan

    Personal loans are given to any customer by the financier or money landing institutions.  This money is given in credit to the concern customer.  The repayment process is decided by the bank or lender after the loan is getting approval to the customer. There are so many factors on personal loans approval, say for example, the existing bill, income, credit score and other property papers to be produced before the concerned institution while applying personal loans. These records are properly looked into by the bank or institutions and accordingly necessary loan can be sanctioned.

    Credit score is the top most important factor while considering any personal loan. It is easily considered after checking the bank statement, credit card  statement and  living expenses bills.  Repayment on time will lead a good credit score for loan approval. Financial Institution get a strong faith for your good credit score. People should note that one must maintain good credit score to avail personal loan from  any financial organization. So, It is very much essential to get the things done and maintain accordingly. So, maintaining bad credit score means not availing the personal loan, this is for sure because bank will not approve the loans due to lack of faith.

    There is an another factors called unsecured debt which affects at the time of loan approval in any financial institution. All these led, It is proved that one should have good transaction with the financial institutions or bank as per bank statement and should have good earning or income in every month to avail quick loans that may be within 24 hours.

    When a person applys for a loan, everything necessary things are considered like person’s living expenses as food, gas, utilities, insurance and house rent etc. After considering all these necessary things necessary instalment is calculated which customers need to pay in every month within a particular period like 3 years years etc.

    Income proof is essential while applying any loan. Bank will check your 3 months income statement and longevity of your service or employment at the existing company. Now a days there is no problem of getting loans but problem is investment in proper place after loan approval. After taking loan people are not managing the fund properly so that they are getting problem at the time of instalment repayment due to not proper investment and financial planning.

    In the end, I would like to say one thing, make a good business plan where you are 100% experienced and your pipeline should be very good in that particular field or business. If you are technically sound or experienced professionally get ready to achieve your goal and target. I think definitely bank will be satisfied with your project and business plan and approve your personal loan or business loan, there is no doubt at all.