Should You Opt for a Personal Loan?

Personal Loan

There might be situations in your life when you will need some funds urgently but might not have any in your bank account. At such a time you can ask for some funds from your friend or relatives, but that imposes a lot of restrictions on you. So the next best thing that you can think about is taking a personal loan. Availing a loan is not as easy as it sounds and there are a few procedures that you need to complete before the bank approves your application for…

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4 Factors that can Impact your Home Loan Eligibility

Home Loan Eligibility

Buying a home is a major decision in your life, and its importance even further goes up when you are availing a Home Loan for the same. Yes, although a Housing Loan is a major financial tool that’s available to salaried class as well as business owners, only a few qualify when it comes to the Home Loan eligibility criteria. Want to check your Housing Loan eligibility instantly? Go to a reputed lender’s website and avail a free Home Loan eligibility calculator to know more? Even reputed online lenders offer…

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3 ways to Maximize your FD Returns Despite Falling Interest Rates

FD Returns Despite Falling Interest Rates

Wanted to invest your money in a bank FD? Hold on! Banks have revised their rate of interest offerings for short-term investments such as fixed deposits because of the funds’ liquidity in such products. A short-term investment that was to fetch an investor with an interest rate as high as 7.5-8% in most of the financial institutions will provide only around 6% for a lock-in period of 3 years for deposits up to Rs.1 crore and less. Yes, the revision in the FD interest rates is not good news! However,…

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How an ERP Software can help a Business to Meet GST Compliance?

Since the time the new indirect tax regime of the country has kicked in, it has left the businesses baffled. The taxation has become so difficult that it has become almost impossible for people to manage things on their own and that too without seeking any assistance from an external source. This is the main reason behind the excessive suffering of those businesses which haven’t sought the help of a competent GST tool till now. GST compliance is a necessity which has to be met at all costs and it…

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4 Essential Financial Lessons Business Owners Need to Learn

When planning to set-up a business after the GST roll-out, you need to be careful and extremely knowledgeable. You need to follow the GST norms while keeping in mind your business objectives. It is difficult for start-ups to generate revenue until they try hard and hire hard-working and dedicated employees to gain growth. GST implementation will help start-ups to grow in the competitive market by offering them certain benefits such as composition scheme. It is a scheme in which businesses whose annual turnover is less than 75 lakhs can get…

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How to refinance your Home Loan despite a bad credit score

Have a bad credit score? You can still refinance your Home Loan with some simple yet effective ideas. Read on to get an insight now! Ajay Kulkarni had a Home Loan of Rs 30 lakhs for 20 years at an interest rate of 10%. Recently, there were some medical emergencies in his family and he could not pay the EMIs on time leading to the default of his loan repayments. He then came to know about another lender who was charging an interest rate of 8.53% on Home Loans. He decided to give the option a shot and opted for a Home Loan Transfer. But, his missed repayments had negatively reflected on his credit score and he did not know if his new lender would sanction his refinancing application. Let’s help you to go about a Home Loan refinancing despite a bad credit. How does you credit score affect refinancing? You should know that financial lenders use your credit score to find out if you can repay them on time. A credit score ranges within 300-900, and a score of 750 is a good score. A credit score within 350 to 750 is average while anything less than 350 is bad. If you have accumulated too much debt and a bad credit score, lenders will consider you as a ‘high-risk’ customer. Lenders may not wish to sanction your housing loan application. Banks, in particular do not give priority to borrowers failing Home Loan eligibility. How to refinance your Home Loan with a bad credit score? ● You will have to resolve your bad credit score in the first place. Try to pay off the costliest debt that you have. Also, try to at least pay the minimum amount due on your outstanding amounts ● If possible, deposit a particular amount in your bank account as the lenders may see that you have funds in the account to repay the Home Loan. ● You can also ask someone with a good credit score to co-sign your loan which may assure the lender that you will surely pay the loan on time and without fail. ● If a lender has rejected your Home Loan application, don’t try at the same lender or any other, why? Because a rejection also reflects on your credit score and reduces it even further. ● Rather than banks, apply for a Home Loan refinance with a non-banking financial company (NBFC) because NBFC are less strict than banks while handling your case. ● If you work for a noted company, you can negotiate with lenders as they do consider candidates with a bad credit score but with a good employer. ● You can also explain your lender about the bad credit score such as medical emergencies. You can make your case strong with original bills and medical certificate obtained from your physician. ● Nothing working? You can also approach credit management agencies; they may help you find the best match for your Home Loan refinance application. You must watch out for some precautions ● If a new lender accepts your Home Loan refinancing, it’s good for you, but may charge a high Home Loan interest rate when compared to new customers. You should also see if other fees and transfer charges are higher or not. If the cost of the balance transfer is high, refinancing may not be the best option to go for! ● Is your new lender increasing the loan duration while decreasing the interest rate? Watch out! For example – The new lender provided Ajay a low interest rate but extended the tenure to 20 years. But, he had already repaid the loan for five years to the pervious lender. It means that Ajay’s Home Loan refinance is set to cost him a lot more in the long run and his monthly payments have reduced, though! ● If you have loan repayment by refinancing mode on mind, you need to consider the other charges that you will incur. You must add it to the total loan cost if there is an increase in the tenure. The Bottom Line Home Loan refinance and that also on a bad credit score may be difficult but it is not out of proportion or is not impossible. The idea is to approach NBFCs than banks. Try to negotiate the terms and conditions by displaying your employer status or get a person with a good credit score to co-sign your loan. Also, try to improve your credit score as much as possible and consider all discussed pointers when deciding to opt for a Home Loan refinance.

Have a bad credit score? You can still refinance your Home Loan with some simple yet effective ideas. Read on to get an insight now! Ajay Kulkarni had a Home Loan of Rs 30 lakhs for 20 years at an interest rate of 10%. Recently, there were some medical emergencies in his family and he could not pay the EMIs on time leading to the default of his loan repayments. He then came to know about another lender who was charging an interest rate of 8.53% on Home Loans. He…

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How Can You Use An Engineer Loan To Your Benefit?

Engineer Loan

A healthy flow of funds is essential for your business to thrive. You need money for purposes such as setting up a new business division or to finance working capital. Additionally, you may also need funds to buy machinery and other assets for new or existing projects. In such cases, you can rely on an Engineer Loan to keep your business functioning smoothly. An engineer loan offers you a host of benefits like: Minimal documentation requirement Simple eligibility criteria Competitive interest rate No need for collateral or a guarantor Quick…

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Here’s your checklist for investing in a corporate FD

corporate FD

A fixed deposit remains one of the most popular investment options in India. The secured nature of the investment and assured returns are a prospect that many people find attractive. Notably, besides a fixed deposit offered by banks and other financial institutions, there also exists FDs offered by various companies. Now, while investing in a bank FD, it is likely that you compare fixed deposit interest rates offered by different banks with respect to the tenure, and accordingly, make a decision.  But when it comes to investing in a company…

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