What are the different types of personal loans in India?

When a fixed amount of money is lent to the borrower with a fixed repayment time, it is called personal loan. They do have a fixed interest rate over the repayment tenure. Further, personal loans are segregated to two other categories, unsecured and secured, which we shall discuss more on. 

Buddy Loan offers a solution to each of your financial nuance, with a wide pool of lenders. It disburses unsecured loans, yes loans without a collateral with lower interest rates starting at 11.99%p.a.  

Types of loans:

Personalloans are of two types, basically, secured and unsecured. Secured are those loans which require an asset from the borrower, whereas unsecured needs no collateral at all.

With the highest loan approval rate in the industry, Buddy Loan offers a solution to each of your financial nuance at your fingertip. The below 9 types are the basic types available now.

·         Business 

·         Travel

·         Two-wheeler

·         Car/four-wheeler

·         Education

·         Medical

·         Home

·         Gold

·         Marriage  

You can definitely enhance your credit score if you’ve a poor credit history but with higher interest rate and as you keep with your EMIs you can make up your credit score. Checking your credit score every once in 4 months can help you gauge the graph and the following benefits from it. Buddy Loan disburses loans starting from Rs. 1000 to Rs. 15 lacs.

Business loan: A personal loan that is availed on business enhancement during a financial shortcoming.

Two/ Four – wheeler loan: This is the easiest personal loan to avail to buy a vehicle at on road price.

Travel & Education Loan: Instant loans for overseas travel and education. Travel loan covers all the expenses from accommodation to holiday planning, while education loan covers the yearly tuition fee and its education laterals.

Home & gold Loan: A personal loan i.e. approved on the basis of home improvement loan, land acquisition, construction, or home refurbishment.

Medical Loan: Often known as the emergency loan is availed on the grounds of medical emergencies and for treating health issues.

The new adage:

·         Festival loan

·         Top-up loan

·         Bridge loan

·         Agricultural loan

·         Pension loan

·         Personal computer loan

The overall personal loan in India have a variety of reasons and names to make availability more diversified and easier.  

Conclusion:

It is by far easy to avail and repay the instant personal loan as the process is hassle free and involves very minimal documentation. All the personal loans mentioned above are asserted with specific interest rate and a tenure extending from 3 months to 5 years.

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How will I know if my personal loan is approved or rejected?

Before we understand why credit score is so important, do know that one the biggest loan aggregators in India. Buddy Loan disburses loans at lower interest rates starting at 11.99%p.a. Here is a quick chance for you to enhance the credit score with customized EMI options.

One could avail loans for multiple reason, pursuing education overseas, buying a new bike or car, surgical and medical expenses, consolidation of loans, home refurbishment, etc. Instant personal loans are far efficient and suitable in helping the borrower hone their credit score. Or sum the credit card bills and you still have to hold a good financial image for another card. 

But all this arrive from one point, by knowing the status of your personal loan. To be prepared for the approval or rejection of the loan is thus under your control and by means of your credit history.

 

You can track your personal loan online and offline:

Thanks to the advanced technology that has made life easier to access the status of personal loan. Digitization has helped banks and NBFCs upgrade their functionality via websites. The best part is the application process i.e. equally transparent to us as that of the operators.

Via offline you can always probe the lender, NBFCs or bank staff to know the status of your instant personal loan. However, with all the possibilities of loan approvals there are certain standards by which these financial institutions bifurcate your applications to approved and rejected.

·         Your credit history plays an important role in your loan approval

·         The lower the credit score, more are the chances of rejection

·         The higher the credit score, higher is the chances of quick approval

·         The higher your credit score, loan approvals are easier and can be approved with less interest rates.

·         Any personal loan like education & travel loan, two/four-wheeler loan, medicalloan, have all better loan tenures to enhance your credit score.

 

Buddy Loan also provides business loans with customized EMI options and minimal documents. You can borrow any amount from Rs. 1000 to Rs. 15,00,000 with a loan repayment tenure of 3 months to 5 years. 

 

Conclusion

You can start by accessing your credit reports for every once in four months to gauge your financial behaviour and then apply for a loan. However, you could always use the website panel to know your application status under process. In Buddy Loan app, the loan aggregator has vivid app facilities that provide you timely updates on EMIs payments, referral codes, gift vouchers and more facilities.

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What is the difference between a co-applicant and a guarantor?

Availing an instant personal loan isn’t difficult if you are doing so with a joint venture. Be it a guarantor or a co-applicant, we all have help in hand if we learn to ask. But how do a guarantor & a co-applicant differ?

This article clarifies this and also persuades you to choose the wiser options while availing an instant personal loan. Today, Buddy Loan is one of the biggest loan aggregators that has dispensed personal loans with lower interest rates starting at 11.99%p.a., customized EMI options, etc.

However, will a co-applicant or a guarantor ease your burden on repayment or credit score? We shall check that below:  

Co applicant for a personal loan

In order to get a better deal on your personal loan, we avail a co- applicant or a co-borrower. Your loan approval or eligibility increases if your co-applicant has good income & credit score.

The next question is who can be co-borrowers? In most of the scenarios, it is usually the family members, like your spouse or parents. Of course, there are lenders who allow your siblings to be allocated as co-applicants too.

Similarly, of the co-applicant has any bad credit score or a bad income proof, the chance of availing a loan is likely low. In here, a default will affect both the scores.

Guarantors in personal loan

Usually, banks require guarantors before they approve of any personal loans. A guarantor is a person or institution who is liable for the loan as a principle borrower. A guarantor gives the consent to the lender that they will be backing the borrower in case of defaults. 

But not every personal loan is a “guarantor” personal loan. Banks and other financial institutions prefer guarantors with good income over Rs. 25000 to qualify for a consent.

A guarantor should be aware of the consequences of the loan default and will bear the responsibility of repayment in case of borrower’s default. A guarantor loan is an unsecured loan whose signature is mandate on the credit agreement.

To remind you so, Buddy Loan disburses all personal loans as unsecured loans, yet with lower interest rates & customised EMI options. 

Conclusion

A personal loan eligibility is always dependent on you majorly, however, a co-applicant and a guarantor serve as a catalyst in loan approval.

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.

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What are the different types of personal loans in India?

When a fixed amount of money is lent to the borrower with a fixed repayment time, it is called personal loan. They do have a fixed interest rate over the repayment tenure. Further, personal loans are segregated to two other categories, unsecured and secured, which we shall discuss more on. 

Buddy Loan offers a solution to each of your financial nuance, with a wide pool of lenders. It disburses unsecured loans, yes loans without a collateral with lower interest rates starting at 11.99%p.a.  

Types of loans:

Personal loans are of two types, basically, secured and unsecured. Secured are those loans which require an asset from the borrower, whereas unsecured needs no collateral at all.

With the highest loan approval rate in the industry, Buddy Loan offers a solution to each of your financial nuance at your fingertip. The below 9 types are the basic types available now.

·         Business 

·         Travel

·         Two-wheeler

·         Car/four-wheeler

·         Education

·         Medical

·         Home

·         Gold

·         Marriage  

You can definitely enhance your credit score if you’ve a poor credit history but with higher interest rate and as you keep with your EMIs you can make up your credit score. Checking your credit score every once in 4 months can help you gauge the graph and the following benefits from it. Buddy Loan disburses loans starting from Rs. 1000 to Rs. 15 lacs.

Business loan: A personal loan that is availed on business enhancement during a financial shortcoming.

Two/ Four – wheeler loan: This is the easiest personal loan to avail to buy a vehicle at on road price.

Travel & Education Loan: Instant loans for overseas travel and education. Travel loan covers all the expenses from accommodation to holiday planning, while education loan covers the yearly tuition fee and its education laterals.

Home & gold Loan: A personal loan i.e. approved on the basis of home improvement loan, land acquisition, construction, or home refurbishment.

Medical Loan: Often known as the emergency loan is availed on the grounds of medical emergencies and for treating health issues.

The new adage:

·         Festival loan

·         Top-up loan

·         Bridge loan

·         Agricultural loan

·         Pension loan

·         Personal computer loan

The overall personal loan in India have a variety of reasons and names to make availability more diversified and easier.  

Conclusion:

It is by far easy to avail and repay the instant personal loan as the process is hassle free and involves very minimal documentation. All the personal loans mentioned above are asserted with specific interest rate and a tenure extending from 3 months to 5 years.

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.