WHAT IS A CREDIT SCORE?

Are you availing an instant personal loan or investing in a property? This article will help you analyze your credit score to carry the extra benefits while availing any instant personal loan.

Let’s understand what exactly is credit score? It is a numerical range/scale that grades your financial behavior. Credit score often appears in the form of 3-digit number that varies between 300-900. By financial behavior we mean, how you repay your loan amount on or before the due date.  

Buddy Loan, which is one of the biggest loan aggregators in India disburses instant personal loans with enormous benefits. Enhance your credit with Buddy Loan by availing an instant personal loan on the go.

“The average score”

So, with the help of this score, you can earn your trustworthiness of the financial institution, NBFC or the lender himself. It is one of the factors they look into before lending you a loan to check your credit worthiness.

Banks, lenders and other institutions prefer credit score on an average of 750. One can avail good benefits making way for loans that have low interest rate and high value.            There are many factors that influence your financial behavior such as on time payment, prepayment, and one-shot payment.

Be it any loan such as secured to unsecured, medical to travel and all personal loans embrace one governing choice, credit score. Credit score allotment over years have a way of presenting before the lender or the financial institution, the collective credit score of the individual years are called credit reports.

Credit score: 300 – 600

300, is actually a below average score that sets the credit worthiness to negative end of credit. It signifies the former behavior with the payment and concludes that you have had problems paying ack your loan on time. A deeper study reveals that score 300 is almost the stage of bankruptcy or home foreclosed.

Credit score: 600 – 750

Though 600 stands below average, it is still considered as lendable. For financial institutions, banks, NBFCs and small lenders this score is considered between good and bad score. You can still find lenders for loans and credit cards with a score of 600. However, carrying the same behavior or attitude will not help you benefit much from credit score.

Credit score: 750 – 850

Managing a number like 750 between the financial challenges is not just an average score but close to excellent. It could help the lenders and credit card institutions assess you through the quick sanctions. But more often, it the amount of money that has a direct impact on your credit score.

Keywords

Credit score, instant personal loan, tenure, interest, Time, trust, attitude 

How is EMI calculated on my personal loan at Buddy Loan

Expanded as Equated Monthly Installments, EMI is often the source of confusion. More than confusion, it’s often anxiety over the amount paid. Besides getting a personal loan at the right time, you can reap better benefits without any push or pull of approval through Buddy Loan, one of the best loan aggregators.
Doubts arise over the lender’s interest charging criteria. Lack of clarity on the computation method of
EMI may also deter people from taking Instant personal loans online. The following information discusses the calculation method of EMI. Knowing how much interest is charged, and how much is going towards repayment of the principal is every borrower’s right.
Some salient points about EMIs
• EMIs are dependent on the amount of loan taken, rate of interest and the loan period.
• EMIs are decided on the date of loan sanction and never change during the tenure of loan
repayment.
• Interest component and principal component constitute the EMI.
• EMIs paid in the initial part of the repayment schedule have a substantial portion that goes
towards the overall interest on the loan computed based on the loan period and per annum rate of
interest. In the later years, the portion of the EMI towards repayment of the principal component
becomes higher and the interest component lower.
• Those who have opted for floating interest rates can experience a change in EMIs.

Types of EMI
Pre EMI – Given in stages for construction of home.
 Disbursed in phases for in-development projects or under-construction homes
 Pre EMI installments are levied on the loan disbursed. By the time of completion of the project,
the entire loan is disbursed. Pre EMI is applicable within this period.
Tranche – Borrower pays the complete EMI
 Borrower pays the complete EMI even if the complete loan for the under-construction project is
not disbursed.
Accelerated – Borrower expedites repayment of loan
 A facility available only with select financial institutions, the borrower is allowed to repay more
than the EMI amount to repay the loan faster and reduce the tenure.
How is EMI calculated?
The formula for EMI calculation is as follows:

[Principal x Rate of Interest Per Month x (1 + Rate of Interest Per Month) ^ Number of Monthly
Installments / (1+ Rate of Interest Per Month) ^ Number of Monthly Installments - 1]
Let’s calculate the EMI for a loan of 15 lakhs with an interest rate of11.99% per annum with a loan
tenure of 5 years.
 Rate of interest per month is = 11.99 / 12 x 100
 ^ is to the power of
1500000 x 0.00999 x (1 + 0.00999) ^ 60 / (1 + 0.00999) ^ 60 – 1 = 14984
Every month installment for this loan will be Rs. 14984

How can I get a personal loan at Buddy Loan?

It’s not a million dollar question, yet it’s a question that yields a million dollars! How can I get a personal
loan from Buddy Loan? What are my personal loan requirements? How can I check my eligibility for a personal loan? The questions are unending. But the answers are often scattered across – hidden in loan
pamphlets, conveyed hurriedly by loan agents or inscrutably described by bank or financial websites.
Here’s some easy information on this topic.
Determine your personal loan amount
 Take stock of your requirements. Always borrow more for incumbencies and not for
unnecessary spending.
 Instant Personal loans online are pricier financial products than home loans, so borrow with caution.
 Analyze your take-home salary or yearly income vis-à-vis EMI of the personal loan.
How much personal loan can I get from Buddy Loan for my income?
The rules are simple:
 Higher the income, higher is the personal loan eligibility
 Check your credit score. Some banks want credit scores in excess of 700; some can do with a
little less.
 Non-Banking financial institutions usually cap personal loans at Rs. 25 lakhs. In other cases,
individuals can get instant personal loan online that is 30 times their net take home salary per month or net
income per month.
 EMIs of loans are roughly 45% of the monthly salary or income of the borrower.
 Check for pre-approved offers. Call up the financial institution customer care to check.
 Approach the bank
Types of personal loans
Buddy Loan offers various types of personal loans. Other common personal loans need no collateral.
Personal loan interest rates are therefore higher. However, to obtain them, you may need a good credit
score. Interest rates can be as low as 10% to a higher slab of25% depending on the bank and type of
personal loan product.
 Unsecured
o Needs no collateral.
o Disbursed faster. Generally in a week.
o May be based on a good credit score
 Secured
o Require collateral as security. It could be in the form of property papers, car title
ownership papers etc.

o Some banks offer secured personal loans online where the borrower can borrow money
against their car, home, property etc.
o Interest rates are nominal.
 Fixed-rate
o EMIs of fixed-rate personal loans do not vary.
o Advantage is that if interest rates of loans become higher, the rates of fixed-rate
personal loans remain the same.

 Variable-rate
o EMIs of variable-rate personal loans vary.
o Advantage is that if interest rates of loans become lower, the rates of variable-rate
personal loans also lower.
 Debt combining personal loans
o Multiple debts, in the form of other loans, home loans, car loans or credit card
payments can be consolidated into a single personal loan.

What will happen if something happens to me after I have taken the personal loan at Buddy Loan

In the case of a secure personal loan, the collateral attached to the loan is redeemed to reclaim the
loaned portion of the loan along with the interest. Borrow your personal loan from Buddy Loan explore the benefits of lowers interest rates, increasing your CIBIL score and loan repayment options from this loan aggregators.
In the case of an unsecure personal loan, problems could be posed for the co-signer of the loan. Co-
signers are generally not aware of the implications of their actions. But with their consent, they
automatically become part of the lending bond or agreement.
The co-signer will be asked by the bank to pay the remaining amount. However, the rules of such a
repayment are vested with the bank. The repayment schedule could be continued as the original one, or
a new repayment schedule with a relaxed interest rate may be applied.
However, there are still cases when unsecured personal loans are disbursed without co-signers.
Generally, all financial obligations end for the deceased borrower upon their death. But the lender can
still transfer the financial debt to their properties or estates. In such cases, the estate of the deceased
may be sold to recover their debts.
The survivors, family members or dependents of the deceased can prevent the estate from being
mortgaged by volunteering or committing to pay the borrowed money.
Rules for picking Instant personal loans online
 Choose the lender and not the other way round
o Customers have a variety of choices; banks are constantly courting them with SMSs,
tele-callers, email marketing and more.
o It’s important to shop for personal loans with care. Read the terms and conditions.
Check for hidden charges.

 Beware of flat rates
There are two types of flat rate personal loans.
o One personal-loan type charges interest on the original principal amount.
o The other personal loan-type charges interest on the reducing principal amount.
o Always choose the latter. In the former type of personal loan, you end up paying more
interest.
 0% percent EMI schemes
o Check the processing fee of such schemes. If they are high, then the lender makes up for
the percentage of interest by levying a high processing fee and other charges.
o These personal loan types are highly sought-after for purchasing consumer durables and
electronic items. Processing fee, miscellaneous charges are generally higher. It is
advisable to steer clear of such schemes.

Conclusion

A personal loan is a boon if chosen with care and precision. Avail the amount that is needed and nothing
extra. Plan the repayment, and enjoy the benefits of a personal loan.

How Can I Get a Personal Loan at Buddy Loan

It’s not a million-dollar question, yet it’s a question that yields a million dollars! Working towards smart
money is a quick solvent for any problem. Explore Buddy Loan in order to reap more benefit for a
Instant personal loan online.
Instant 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.
How can I get a personal loan? What are my personal loan requirements? How can I check my eligibility
for a personal loan? The questions are unending. But the answers are often scattered across – hidden in
loan pamphlets, conveyed hurriedly by loan agents or inscrutably described by the bank or financial
websites. Here’s some easy information on this topic.
Determine your personal loan amount
• Take stock of your requirements. Always borrow more for incumbencies and not for
unnecessary spending.
• Personal loans are pricier financial products than home loans, so borrow with caution.
• Analyze your take-home salary or yearly income vis-à-vis EMI of the personal loan.
How much personal loan can I get for my income?
The rules are simple:
• Higher the income, higher is the personal loan eligibility
• Check your credit score. Some banks want credit scores in excess of 700; some can do with a
little less.
• Non-Banking financial institutions usually cap personal loans at Rs. 15 lakhs. In other cases,
individuals can get a personal loan that is 30 times their net take-home salary per month or net income
per month.
• EMIs of loans is either from the monthly salary or income of the borrower.
• Check for pre-approved offers. Call up the financial institution customer care to check.
• Approach the bank
Types of personal loans
Common personal loans need no collateral. Personal loan interest rates are therefore higher. However, to obtain them, you may need a good credit score. Interest rates can be as low as 10% to a higher slab
of25% depending on the bank and type of personal loan product.
Unsecured
o Needs no collateral.
o Disbursed faster. Generally, in a week.
o May be based on a good credit score

Secured
o Require collateral as security. It could be in the form of property papers, car title ownership
papers etc.
o Some banks offer secured personal loans online where the borrower can borrow money against
their car, home, property etc.
o Interest rates are nominal.
Fixed-rate
o EMIs of fixed-rate personal loans do not vary.
o The advantage is that if interest rates of loans become higher, the rates of fixed-rate personal
loans remain the same.
Variable-rate
o EMIs of variable-rate personal loans vary.
o The advantage is that if interest rates of loans become lower, the rates of variable-rate personal
loans also lower.
Debt combining personal loans
o Multiple debts, in the form of other loans, home loans, car loans or credit card payments can be
consolidated into a single personal loan.