5 Simple Tips For Completing The Personal Loan Process Successfully

You have lots of ambitions in life that you wish to achieve step-by-step. Firstly, you learn to educate yourself, manage your responsibilities, have a family, start earning, and finally save for retirement. Amidst this circle of life, you come across certain situations where you require immediate financial assistance.

A Personal Loan lets you manage urgent expenses and save the day. It is known for its versatility and multi-purpose usage, like paying for weddings, home renovations, medical emergencies, or children’s education. Sometimes, it also reduces the burden of financial dues or enables you to plan for additional expenses. Let us discuss simple tips to simplify the process:

Credit score

Remember, all options require borrowers to have a good credit score. Also called a CIBIL score, it is a three-digit number showing your creditworthiness. A credit score usually ranges between 300 and 900 and is derived using your credit payment history across various Loans over a period. Most banks ensure your score is above 700 points with repayment capacity. With a high CIBIL score, you can quickly proceed with the application.

Eligibility

Banks have varied eligibility criteria for Personal Loans. However, the standard requirements include credit score, age limit, employment type, three-month bank statement, and minimum salary or income. You must check and compare the options before finalising the scheme and shop around for better ones suiting your income and eligibility criteria.

Borrowing options

Every individual’s financial requirement differs. Therefore, most banks offer multiple borrowing options. For instance, you may need money to buy a car or gold jewellery, start a business, or buy a house. You find specific options for these, but opting for a multi-purpose Loan without collateral is the best choice.

Affordability

You generally repay the amount in equated monthly instalments. Banks want to know your repayment capacity and affordability before approving your application on the Banking app. When checking your affordability, keep your debt obligations in mind. Plan your monthly budget for clarity using the Loan calculator and save money for repayments. Remember to pay the amount on time to increase your credit score and reliability.

Documentation

The approval of your Bank Personal Loan application depends on the relevant documentation you need to support the information provided. You can check the app and prepare the documents before applying. You also get Instant Loans to encounter emergencies, such as medical expenses. It is an entirely paperless procedure with flexible repayment options.

Points to note

It is safer to apply online as it saves time, commute, and effort. However, remember to compare the Personal Loans interest rates since they directly impact the repayment amount. The higher the interest, the higher the amount payable.

Conclusion

You get easy access to money with these financial products. You need not worry about exhausting your savings since these Loans get instant approval and disbursal within a few hours.

What Benefits Do ELSS Funds Offer?

Equity Fund investors often lose their funds in the market as they are unaware of the taxation rules. It significantly lowers their investable income. When you have less investable income, your returns get affected. For avoiding this, most investors opt for an Equity-Linked Saving Scheme. ELSS falls under Equities. It invests most of the funds in equity-related products. It is ideal for those who wish to avoid paying taxes.

Besides tax benefits, ELSS offers other benefits too:

Lock-in duration

Usually, good Mutual Fund portfolios are better for long-term investments. But they do not come with lock-in periods. This affects your investment growth considerably. Under the ELSS Mutual Funds, your funds are secured for at least three years. It even lets you continue investing for more than that. For example, say you invested Rs. 500 and got 50 units on March 31, 2022. In this case, your lock-in period will end on March 30, 2025.

Moreover, your investments get exempted from taxes during this period. This lets you maintain healthy investment behaviour.

Long-term value

The lock-in period extends beyond three years for ELSS Funds. Investors can continue their investment growth for a long time. They can also redeem them if need be. Since this scheme offers tax exemption, you may reap better returns.

Saving discipline

The minimum amount under ELSS is as low as Rs. 500. It is also accessible to those who have just started earning. This empowers them to turn their savings into investments. Over time, they develop a healthy financial habit.  

New investors

A Mutual Fund Investment may sound intimidating to new investors. But since they have little market knowledge, they need a not-too-complex scheme. For such investors, ELSS is ideal. It provides the freedom to invest without needing to bear taxes. Also, it lets them invest in both Equity and Debt Funds.

Higher returns

ELSS generates higher returns. It may boost your investments significantly within lesser time. Unlike other investment schemes, it does not allow partial withdrawals. This facilitates the growth of investments. It will enable it to increase with time. Also, the returns in an ELSS are tax-free. So, you automatically reap higher returns.

Upper limit

Here, the investor could invest as much as they want. There are no maximum limits for investing. This broadens your accessibility to big investors.

Options

ELSS comes in different forms: growth, dividend, and dividend reinvestment. Under the growth scheme, the investor gets gains only during redemptions. Under a dividend scheme, the investor indeed receives timely dividends. Under the dividend reinvestment scheme, investors could reinvest dividends. Depending on your financial situation, you could choose between these three and invest offline or through the Mutual Funds app.

Perks Of Opening An NRO Account

When an individual shifts to another country, they find it slightly tricky to manage the income generated in India. Their regular resident Bank Account does not let them deposit foreign currency and convert it into INR. In times like these, they need a Non-Resident Ordinary Account.

An NRO Account is a type of Non-Resident Indian banking facility. It allows global Indians to manage and park the money earned in India. That way, they systematically house their funds from India and overseas. The following are the perks:

Smooth repatriation

The account provides the holder with easy repatriation. This implies they can transfer up to USD 1 million per financial year through International Remittance. Moreover, the interest accrued is taxable at only 30%, deductible at the source.

Minimal balance requirement

Most banks issue minimal balance requirements, as low as INR 10,000. This helps the holder utilise the funds in their account worry-free.

Easily accessible

This NRI Account is readily available online. You only need to fill out an application form and upload relevant documents. Once verified, you will receive your account information almost instantly.

No risk of exchange rate fluctuations

Funds in the account are not subject to exchange rate risks. Since it maintains your money in INR, you need not worry about conversion losses.

Investment & loan facilities

You can easily invest in term deposits, Mutual Funds, etc., through transfers from the NRO Account. This helps you earn from your savings in the resident country. You may also use these investments as collateral to get loans. The banks charge lower interest rates as they get secured through the account. This way, you get swift and smooth financial assistance during emergencies.  

Joint account option

Any NRI or Indian resident (related to you) is allowed to open an NRO Account in India with you. This option gives your close relative access to your account.

DTAA

Although NRO Accounts are not tax-exempt, the account holder can avoid paying double taxes. They need to opt for the Double Taxation Avoidance Agreement or DTAA. The Reserve Bank of India has entered a DTAA with several countries, intending to discard the need for double tax payments.

Interest on Fixed Deposits

When you opt for an NRO Deposit, you earn interest on the funds in the account. This multiplies the money in your NRO Account.

Ideal place to park Indian income

The account is a viable option to save your foreign earnings and park income earned in India. You can easily access the account to manage your Indian expenses whenever you are in the country.

Trading facility

Some banks allow you to link the NRO Account to a PIS Account to trade in Indian stocks listed on a recognised stock exchange. PIS stands for Portfolio Investment Scheme, an initiative that facilitates NRIs' trading activities.

How Does A Wealth Account Manage Your Money The Right Way?

Money holds immense value in our lives. It determines your standard of living and financial security. Very often, money is considered a status symbol. It is a harsh reality. The amount you hold largely depends on your investments and how well you manage the returns reaped. Many fail to manage their wealth the right way. Opting for a Wealth Account opening allows you to handle money quickly and efficiently.

A Wealth Account is primarily curated for wealth creation. It enables you to make profitable investments and securely park returns from them. Following are the different wealth products and services it offers that manage your hard-earned funds rightly:

A dedicated account

When you make investments, you generally link them to your Savings Account. The investment returns are credited to the account periodically. Since Savings Account is most used to meet daily banking requirements, it could be possible you could end up using all the returns. With a Wealth Account opening, you have a dedicated account. All your investment returns can be parked here. This ensures you do not use your investment returns over unnecessary spending.

Gain exclusive market insights

This is a great wealth solution offered by the account. Here, the most experienced investment gurus prepare market reports. They help you understand the best stocks to invest in and predict future market standings. Though market standing is unpredictable, these reports are helpful to brace for the impact and make appropriate investment decisions.

Having an investment expert on board 

Do you wish to make high-valued investments but lack the time and expertise to do it yourself? You can channel your money to profitable investments by signing up for wealth management. Here, you have a team of dedicated investment experts to help you with your investment journey. They understand your financial profile and investment objectives. Based on this, they recommend the most suitable investment options.

They also monitor and modify your investments whenever required. This often takes some burden off your shoulders. So, sit back and enjoy your investment returns to the fullest.

Access to a range of wealth products

The returns you reap largely depend on the wealth product you invest in. If you pick the right wealth product, your investment journey becomes easy. Choosing the right product is not easy as many wealth products are available today. With the account, you can access a range of Wealth Management products like Fixed Deposits, Mutual Funds, Private Equity, Real Estate Funds, and many other beneficial products.

Consider your investment goals and risk profile to determine the best wealth products for investment.

How Does Income Impact Personal Loan Approvals?

Whether a planned or unforeseen expenditure, a Personal Loan meets all your financial requirements. Personal Loans are unsecured credit. This means you need not pledge your assets as collateral to secure the Loan amount. Apply for Loans at competitive interest rates and flexible repayment tenure. These factors collectively make Personal Loans a good financing option for salaried individuals.

You can apply for a Personal Loan for salaried online within minutes. Before you start, you should know the factors influencing the Loan approval. The bank primarily checks your credit score, repayment history, and salary for Loan approval. Let us understand how your salary and work profile impact the Loan approval.

Income influence

From qualifying for the eligibility criteria to Loan approval, your salary has a significant say over your Personal Loan application. To apply for a Personal Loan, you need to be a minimum of 22 years and a maximum of 60 years. Both salaried and self-employed applicants can apply for this Loan. You need a monthly income of at least Rs. 20,000. Your salary helps the bank determine your repayment capacity.

A higher in-hand salary translates to a better repayment capacity. Given your high salary, you have a significant amount in hand. This makes the bank confident that you can repay the applied Loan amount without defaults. Banks even readily offer pre-approved Personal Loan to applicants with a good salary. Your income determines the maximum Loan amount you can apply for.

With a higher salary, you can request a higher amount. The bank approves such a request as they are aware of the repayment capacity you hold. Your income influences Personal Loan interest rate too. When you portray a solid repayment capacity, the risk associated with your Loan request is significantly low. Due to this, the bank might offer a Loan at a lower interest rate. You also get a free hand in choosing a flexible repayment tenure.

Debt to income ratio

Now, you may think you have a reasonable income, and there is no way the bank will reject your Loan request. The bank still compares the salary with your debt obligations. This is called the debt-to-income ratio. A higher debt-to-income ratio negatively impacts your repayment capacity and overall profile. A debt-to-income ratio of 40:60 is considered reasonable. This way, you get a chunk of your salary to make other repayments.

This also ensures a considerable burden is off your shoulders. Think wisely before applying for a Personal Loan. You can now apply for one through a Banking app. Download the bank’s mobile app and apply for the Loan instantly. 

How To Land With The Best Personal Loan Interest Rates Online?

Personal Loans are unsecured and considered multi-purpose, offered by every bank and financial institution. They are the best way to tackle your immediate financial needs. From financing your child’s wedding to booking a holiday, you can bankroll all your desires with this Loan. You find several options online.

But it is essential to get competitive Personal Loans interest rates as it allows you to make repayments easily. You need to assess your repayment capacity, compare banks and lenders, and check your eligibility before applying. The following are the best ways to get the best Loan interest rates:

Credit ratings

It is necessary to maintain a good score as it shows your creditworthiness depending on how you managed the Loan earlier. A score of 700 or 750 is ideal for Personal Loans. As a rule, the higher your score, the better Loan options you get. Lenders decide on the repayment terms, amount, and interest rates based on your credit scores. A higher score means you can negotiate the terms offered.

Ensure to compare

A little research goes a long way when applying for Personal Loans. You can compare lenders with the desired interest rates and features. It takes time but ensures you make a wise decision. You need to check your Loan eligibility for the bank to disburse the amount in your account within a couple of hours.

Seasonal offers

All banks notify their customers about special offers via SMS or email notifications. Check them for applying for Personal Loans affordably. These offers allow you to get limited period discounts on the interest rate. Often, they are available when you apply for Loans online during the occasions.

Professional reputation

If you earn a high salary and work in a reputed organisation, you are considered a stable candidate for the Loan. Use this to your advantage for negotiating the lowest Personal Loan interest rates with lenders. Your company’s reputation helps you get a lower rate since the lender gains assurance of your financial stability and the ability to repay the Loan on time.

Things to remember

Nowadays, banks offer attractive terms on Personal Loans. However, it is safer to conduct detailed research before applying for Loans offline or on Banking apps. Before deciding on the lender, compare various aspects like interest rates, processing fees, repayment flexibility, prepayment charges, etc. It helps you settle for a Loan that best suits your needs. Using the EMI calculator to plan your monthly budget, you should calculate the Loan EMI beforehand.

Ensure you opt for a Loan with an affordable instalment amount, interest rates, and tenure to reduce the financial burden.

Equity Mutual Funds And Their Benefits

Equities are pooled investment that draws money from various investors to garner a considerable corpus to invest in various stocks. Thereby, they are also called stock funds which are witnessing rising popularity as no investment avenue can generate as good returns as equities. Fund managers select the stocks to invest in, considering the objective.

The Equity Funds manager collects money from several investors and invests it in various investments to form a portfolio. The multiple benefits make it a profitable avenue for you to put your money:

Diversification

Equity funds offer diversification in many ways. They invest in several stocks, various sectors, and other asset classes. As an investor, you can own a share in equities of companies across multiple capitalisations and pan sectors. You benefit from the profits and reduce the risk with even fund distribution. Also, the presence of fixed income securities and other money market instruments further diversifies and balances the investment portfolio.

Professional management

Analysts with experience and expertise in fund management manage Equity Mutual Funds. They research and analyse the various stocks and market trends and aim to outperform the benchmark indices. They generate superior returns than the market indices for their investors. Thus, many investors who lack the skill, willpower, or time to track the market or predict the stock performance should invest in Mutual Funds.

Risk mitigation

Owing to diversification, where the fund corpus evenly spreads over various stocks, it also spreads the associated profits and risks. When one stock underperforms, the other picks up. Similarly, if one sector falls, the other balances the portfolio, reducing the loss incurred.

Wealth creation

Equities generate the highest returns among all kinds of investments. They can offer inflation-beating returns to help investors create a good corpus in the future. If you have long-term goals of capital generation, invest in them. They involve risks but bounce back if you hold them for a long duration. However, you can also invest in Debt Funds like CPs, CDs, Corporate Bonds, Treasury Bills, Government Securities, etc.

Cost-efficient

Investing in equity schemes is cost-efficient. You can be a shareholder in various companies through small investments without a high capital requirement. As the fund size grows, the amount spreads over more fund units, making the cost cheaper. You can invest in a lump sum and SIP investments with an amount as low as Rs. 500 on the Mutual Fund app.

Liquidity

The sale and purchase make online Mutual Fund highly liquid. Similarly, investors can quickly redeem the units whenever desired. Once redeemed, the money equal to the unit value when sold gets deposited in your account within a few days.

Dividend income

Under a dividend plan, you get dividend income either monthly, quarterly, bi-annually, or annually. A dividend is the cumulative profit of all stocks. The profits earned from an Equity Fund are divided among all investors as per their unit holding after deducting applicable charges.