The Era of Personal Loan!

Get instant personal loan
Get instant personal loan

Personal loans can be used for a variety of purposes such as paying off for marriage, medical expenses, renovating your house, supporting your child’s education, or even paying back an existing loan. Loan aggregators meet the right bill with the borrower’s profile. They help ease your repayment process. Buddy Loan counter gauges this with an innate objective for every person to clear their financial crisis.

Consolidating debts with a personal loan

Debt consolidation means to amalgamate multiple debts into a single debt. One of the ways by which debt consolidation can be made is by securing a personal loan. Supporting this is www.buddyloan.in, visit this site for availing better benefits of personal loan for lower interest rates.

This means that a person with multiple debts can secure a personal loan and can use that amount to repay those debts. This way there is a reduction in the number of debts as the person will only have to repay the personal loan.

There are benefits as well as down-sides to consolidating debts with a personal loan.

BENEFITS

1) Lower interest rates – When there are multiple debts, the amount paid for the interests could be more, or a few debts may have higher rates of interest. In such cases, if you consolidate these debts with your personal loan which has a lower rate of interest, it can benefit you monetarily.

2) Predetermined amounts   – When debts are consolidated with personal loans, there is only on debt, and therefore the interests are to be paid during specified intervals and the term period for repayment of a loan is also pre-determined.

3) Improves credit – In case your credit card payment is due, it is better to consolidate it with personal loans as it would improve your credit.

4) Unsecured personal loans – Unsecured personal loans are those where no collateral is required to procure them. It is a great idea to consolidate debts where the collateral is involved with an unsecured personal loan.

DOWNSIDES
  1. Greater rate of interest – If the rate of interest for a personal loan is greater than your other debts, then it is not advisable to consolidate these debts with a personal loan. This is because of the higher the rate of interest, the more the amount you would spend.
  2. Longer term-period – The term of the personal loan must also be taken into consideration while attempting to consolidate your debt through a personal loan. If the term of repayment of a personal loan is long, then it is obvious that you will have to pay to spend more on paying interest.
  3. Assets could be risked – If you consolidate your debts with a personal loan that requires collateral, then you put your assets into danger.

Therefore, the conclusion that can be drawn is that you can consolidate your debts with a personal loan. But before doing so, it’s important to weigh the terms of your personal loan to that of the debts and to analyse whether it would be beneficial to you at any point in time.

Documents Required to Get a Personal Loan

When you are in sudden need of a large sum of money, one of the best ways to arrange it is to get a personal loan from a bank or NBFC or a loan aggregator like Buddy Loan. To obtain this loan, one of the most important requirements is to provide very few necessary documents.

Buddy Loan helps you to understand the common documents asked by most of the lenders to understand the financial capability of the borrower and to know whether he/she is capable of repaying the loan amount. Besides this, it also helps the lender to understand and verify personal details of the borrower such as their name, age, income, employment status, employer details and address. Based on this information, the lender decides whether or not to disburse the loan amount to the application.

Documents Required to Get Personal Loan

Buddy Loan has a wide pool of loan providers like Banks / NBFCs, which require a particular set of documents for a loan applicant to verify their details and assess their financial capability. These documents may differ depending on whether the applicant is a salaried individual or self-employed. Following documents are required from salaried individuals’ application for a personal loan:

  • Proof of Identity: Passport / Driving License / PAN Card / Voter ID Card
  • Proof of Residence: Passport / Utility Bills / Ration Card
  • Income Proof: Form 16 and Salary slips for last 3 months
  • Proof of Age: Passport / PAN Card / Driving License / Voter ID Card
  • Job Continuity Proof: Current Job Appointment Letter or Current Employment Certificate and Experience Certificate
  • Bank Statement: Statement of bank account for the last 6 months
  • Sanction Letter and Payment Track Record, in case of existing loans
  • Passport size colour photo
  • Duly Filled Personal Loan Application

If the applicant for the personal loan is a professional or self-employed professional, the lending institution would require the following documents.

  • Proof of Identity: Passport / Driving License / PAN Card / Voter ID Card
  • Proof of Residence: Passport / Utility Bills / Ration Card
  • Proof of Age: Passport / PAN Card / Driving License / Voter ID Card
  • Proof of Office Address: Utility Bills / Maintenance Bills / Property Documents
  • Proof of Office Ownership: Utility Bills / Maintenance Bills / Property Documents
  • Income Proof: Income Tax Returns for the last 2 years including computation.
  • Proof of Business Existence: Shop Establishment / Salary Statement for last 3 years
  • Passport size colour photo
  • Duly Filled Personal Loan Application

Only after submitting the above-mentioned documents, the bank / NBFC can process your loan application and disburse the loan amount. Once the documents are verified, the loan amount is approved. To begin your personal loan application process with Buddy Loan, click here. 

 

Tips for Successful Personal Loan Application:

Personal loans often attract some of the highest interests in the financial market. Interest rate starting at lowest, 11.99% p.a., personal loans become one of the biggest sources of interest-based fund for the lenders. However, loan aggregators help you with the best repayment options for a good 5 years. Explore Buddy Loan in order to reap more benefit for a personal loan.

If you avail a personal loan, you can use it for a variety of purposes such as paying off for wedding expenses, medical expenses, renovating your house, supporting your child’s education, or even paying back an existing loan. Most of the time, it is taken in need of urgent and temporary cash depending on the situation. The situation might be health treatment, weddings, holiday vacations, etc.

In such cases, when the loan application is rejected, it can be extremely frustrating and upsetting. There are certain factors that are always considered by lenders before approving any loan application. Knowledge about these factors will help you ensure that you successfully get your loan application approved.

Here are a few tips to ensure a successful personal loan application:

Improve Your Credit Rating

Your credit rating is the first thing that a lender examines when you apply for a personal loan. Your credit rating is the clearest indication of your financial behaviour and history. Lenders use it to determine whether or not you would be able to pay back the loan amount.

So, before you apply for a loan, make sure to check your credit file first. If you have a low credit score, take the necessary steps to bring the score up before making the personal loan application.

Manage Your Finances

Managing your finances not only involves using your regular income efficiently but also proper utilization of any existing credit that you may have access to. Both of these points have a big impact on the approval of your loan application.

Check the outstanding balance on your credit cards, your payment history with all kinds of credits as well as your previous financial history. If you have any existing credits, make sure to keep up the repayments. Don’t let your credit cards ‘max out’.

Instead, use them to 20-25 per cent of the credit limit. Also, ensure that you pay the entire outstanding amount each month, not just the minimum payable amount. Efficiently managing your finances shows the lenders that you are a good borrower and in complete control of all finances.

Borrow Only What You Need

For a lender, it is obviously riskier to lend someone a greater amount than if they were lending a small amount. So, apply for only the amount that you need to improve your chances of getting your application approved.

So, before applying for the personal loan, make sure that you have done everything possible to ensure that your loan application is a success.

Availing a personal loan for a holiday/vacation!

Personal loans can generally be taken for a variety of purposes like, for renovating your home, for your marriage expenses, for buying a car, for medical expenses or for any other occasions.

Borrow a personal loan from Buddy Loan to explore the benefits of lowers interest rates, increasing your CIBIL score and loan repayment options from this loan aggregators. Supporting this is www.buddyloan.in, visit this site for availing better benefits of education loan for lower interest rates.

So, you can definitely secure a personal loan to enjoy your holiday or vacation. To enjoy more benefits such as increasing the credit score and ample repayment option, explore Buddy Loan, one of the best loan aggregators.

However, there are several advantages and disadvantages to securing a personal loan for your travel and vacation that need to be taken into consideration.

ADVANTAGES

1)         The specific interest amount to be paid – Personal loans have set the lower interest rates starting at 11.99%p.a., which needs to be repaid. This makes it easier for the borrower to plan his income and payments in advance.

2)         Specific term – Besides the interest on a loan being specified, the term within which the loan must be completely repaid and the intervals of payment of interest are also specified.

3)         Unsecured personal loans – Personal loans are mostly unsecured in nature, or in other words, they may not necessarily require collateral if you have a good credit score.

4)         A better alternative than a credit card – Securing a personal loan for vacation is better than accumulating more debt on your credit card, as in case of loans, the amount of payment and terms for payment is pre-determined.

DISADVANTAGES
  1.             Paying more than the amount spent – Whenever you secure a loan, it is obvious that you pay more than you borrowed, given that you pay the principal amount and an interest rate starting of with 11.99 %p.a. You must consider this before you procure a personal loan for your vacation.
  2.             Secured loans – Unsecured personal loans are not available to all. If you have low credit scores, then you may not be eligible for unsecured loans, and hence, you would have to involve your collateral to procure a personal loan. This is the reason you must think twice about attaining a personal loan for your holiday if you do not have a good credit score, as it would put your assets into risk.
  3.             Future is unpredictable – Future being unpredictable, it may be difficult for a borrower to repay the loan or to pay interests on time due to unavoidable financial crisis.

Hence, weighing the advantages and disadvantages, it can be concluded that securing a personal loan for a vacation must be preferred less in case you have other alternatives such as your savings or deposits.

 However, a personal loan for a holiday is a better alternative than spending from your credit card, if you have no other choices to enjoy your vacation.