5 Strategies to Make the Most of Your Personal Loan

 

Securing a personal loan can be a pivotal step towards achieving financial goals, offering flexibility and immediate access to funds. However, to truly maximize its benefits, strategic planning and thoughtful management are essential. 

Below are five strategies designed to help you make the most of your personal loan.

Define Clear Objectives for Your Loan

Understanding why you need a personal loan is the first step towards effective use. Whether it's consolidating debt, financing a major purchase, or covering emergency expenses, having a clear objective helps in aligning the loan terms with your financial goals. 

By defining specific purposes, repayment plans can also be structured more effectively, ensuring the loan serves its intended purpose without unnecessary expenditure.

Choose the Right Loan Terms

Selecting the right loan terms involves balancing the interest rate, repayment period, and monthly installments. Opting for a shorter repayment period may lead to higher monthly payments but will save on interest in the long run. 

Conversely, a longer term reduces monthly payments but increases the total interest paid. Evaluating different loan offers and considering your financial capacity helps in choosing terms that align with your budget and long-term financial plans.

Create a Detailed Repayment Plan

A well-defined repayment plan is crucial for managing a personal loan efficiently. Establish a budget that incorporates monthly installments, ensuring that repayments are timely and consistent. Automate payments where possible to avoid missed deadlines, which can negatively impact credit scores. 

Regularly reviewing your repayment progress also helps in making necessary adjustments, maintaining financial stability throughout the loan period.

Use Funds Wisely and Prudently

The usage of loan funds significantly impacts overall financial health. Prioritize high-impact expenditures that align with your initial objectives. Avoid using loan money for depreciating assets or non-essential purchases, as this can lead to financial strain. 

Instead, direct funds towards investments or necessary expenses that provide long-term value and financial growth, ensuring the loan contributes positively to your financial well-being.

Monitor and Adjust Financial Strategies

Managing a personal loan doesn’t end with securing the funds; continuous monitoring and adjustment of financial strategies are pivotal. Keep track of interest rates, market conditions, and any changes in personal financial status. 

Refinancing options may become available, offering better terms that can reduce costs. Being proactive in adapting to changes ensures the loan remains beneficial and aligned with your evolving financial landscape.

Final Thoughts

By following these strategies, personal loans can be effectively managed and leveraged to achieve financial goals. Strategic planning, disciplined management, and continuous monitoring are key to making the most of your personal loan, turning what could be a financial burden into a powerful tool for growth and stability.

What Can You Do With a Personal Loan?

When financial needs eclipse your current resources, personal loans can be the financial solution to help bridge the gap. But what exactly can you do with a personal loan? 

The possibilities are as diverse as the people considering them. From consolidating debt to funding education, personal loans have the power to be the launching pad for various life-altering moves. 

Here's a comprehensive guide to accessing the multifaceted benefits of a personal loan.

Debt Consolidation

If you're struggling with multiple debts, debt consolidation may be the answer you've been looking for. The process of taking out a personal loan to consolidate your debts may seem daunting at first, but the benefits can be significant. 

By merging all your debts into one manageable monthly payment, you can simplify your finances and potentially save money on interest over time. It's crucial to remember, however, that debt consolidation isn't a quick fix and may come with some downsides, such as an extended repayment period. 

With careful planning, though, you could be on the path to a more manageable and ultimately debt-free financial future.

Home Improvement

It might be time to consider sprucing up your space with some home improvement projects. Whether it's a much-needed kitchen renovation or a dream backyard deck, there are various ways to transform your home into your own personal oasis. 

Not only can these projects improve your quality of life at home, but they can also increase the value of your property. And, with the flexibility of a personal loan for home improvements, you can take on projects independently of your mortgage and at a rate that suits you. 

Plus, opting for an unsecured loan means you won't have to put your home at risk.

Education Funding

Education is the key to unlocking opportunities in one's future, but the rising cost of education is becoming a hurdle for many students and their families. Covering these expenses can be overwhelming, especially when federal loans fall short of covering everything from tuition to living expenses. 

A personal loan for education can offer a solution to this problem, providing a flexible and convenient way to fund education costs. With its quick and easy application process, students can access funds directly and use them to cover tuition, books, rent, and other expenses without the added stress. 

A personal loan for education can make all the difference, offering peace of mind and providing the tools necessary to succeed in achieving a brighter future.

Business Inception or Expansion

Starting or expanding a business takes courage, commitment, and funding. For those with an entrepreneurial spirit, a personal loan can provide both the necessary resources and independence. From launching a startup to expanding an established operation, a personal loan can be the catalyst for growth. 

However, success depends on careful planning and execution. Lenders want to see a solid business plan that outlines how the loan funds will be used and how the business will turn a profit. Maintaining a strong credit score is also crucial for securing the best loan terms and approval odds. 

Countless business success stories have been made possible by leveraging personal loans for growth. With insightful planning and smart borrowing, personal loans can help turn business dreams into reality.

Covering the Unexpected

Life can be filled with unexpected twists and turns, and it can be tough to stay afloat when financial emergencies arise. Whether it's unplanned medical expenses, sudden car repairs, or temporary unemployment, unexpected costs can quickly drain your emergency fund. 

Fortunately, personal loans can provide a quick and effective solution. With fast approval and disbursement of funds in as little as a few days, personal loans can offer much-needed relief during financially challenging times. 

Plus, the flexible repayment options make it easy to find a loan that suits your unique financial situation. Don't let unexpected expenses derail your financial stability. Consider the benefits of a personal loan and protect yourself from potential financial strain.

Final Thoughts

Personal loans offer a versatile and convenient way to access financial resources for a wide range of needs. From debt consolidation to unexpected expenses, education funding, and business growth, personal loans have the power to improve our lives in various ways. 

With careful planning and responsible borrowing, personal loans can help you achieve your goals and overcome financial obstacles. So, the next time you need extra funds, consider the possibilities a personal loan can bring to your life.

Banking Like Never Before With This Instant Personal Loan Option for Urgent Situations!

Are you a salaried professional looking for instant personal loans with minimum documentation? Then applying with an online lending institution like Clix Capital is the ultimate solution. 

Gone are the days of relying on traditional financial institutions that still follow the offline route with many formalities.

The advantage of online lending institutions is that they offer instant loans for salaried professionals with minimal documentation and faster approvals 24x7.

So, if you are a salaried professional who loves to live life without compromises and believes in fulfilling dreams, personal loans are ideal for you.

Here are some variants of personal loans you can avail of instantly online.

• Debt consolidation loans
• Medical loans
• Education loans
• Home improvement loans
• Vacation loans
• Wedding loans

Based on your requirement, you can avail of any of these loans online from Clix Capital best interest rate and flexible repayment tenures.

Who is a Good Match for Taking an Instant Personal loan?

You must fulfill the basic eligibility criteria when you need personal loans urgently.

1. Are you an Indian citizen?
2. Are you between 21 to 58 years?
3. Is your monthly salary above ₹ 20000?
4. Do you have a minimum of one year of experience with six months in your current job?
5. Do you have a credit score of 630 and above?

If your answer to the above questions is YES, you are eligible for the instant loan for salaried professionals offered by Clix Capital.

Where can I get an urgent personal loan?

Once you've cleared the eligibility criteria, you can apply for an instant personal loan on the Clix Capital website for speedy approval and quicker disbursal.

Applying with new-age lending institutions like Clix Capital is the best approach for getting loans, as everything from applying to verification and approval to disbursal is done online. 

For instance, Clix Capital offers instant personal loans with paperless verification at an Experian credit score of 630. Once approved, the amount gets credited to your account instantly.

The best part is that you can avail of a Loan of up to 10 lakhs with a tenure between 12 to 48 months. Also, these are collateral-free and have no restrictions post-disbursal.

Most importantly, depending upon the borrowed amount, you get the loans at competitive interest rates and low processing fees. You can also enjoy better customer service and lower EMI due to the extended repayment tenure. 

What makes applying for loans online ideal is that you can apply anytime and anywhere from the comfort of your home!

Documents required for those who need personal loans urgently

Once your eligibility matches the loan, you must collect and keep the below documents ready for approval.

• Identity proof
• Address proof
• Income proof
• Passport size photograph

Be a part of something better

Personal loans are best to meet a broad range of expenses as part of your life journey. And as there are many types of Loan options, it's essential to choose and apply for the right instant loan for salaried professionals.

About the Author

Amaira Sharma is a finance expert and former business growth strategist who has more than 8+ years of experience in the industry, now, she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.

How to Avail a Pre-Approved Personal Loan on the Instaloan App in 4 Steps?

The Instaloan app by Fullerton India offers quick and hassle-free personal loan options to salaried individuals at affordable interest rates. Unlike other personal loans, there is no need to visit a lending institution or undergo tedious paperwork to avail of a loan.

If you are salaried, the Instaloan app by Fullerton India can help you avail of loans anytime, anywhere through your phone. It helps you avail of quick cash with interest rates starting from 11.99% per annum, with a maximum loan amount of Rs. 25 lakhs.

Benefits of the Instaloan App:

Personal loans can help you meet immediate needs or unforeseen expenditures. Whether it is your daughter’s wedding, need to fund your vacation, or have a medical emergency, these loans can be the best way to meet your expenses without draining your finances. 

Instaloan is an online loan app that helps you avail of such a loan without much paperwork and in a short time. Here are some of the benefits of the Fullerton India Instaloan App:

Maximum Loan Amount: Unlike other personal loans where the maximum amount is limited, this app helps you avail of a loan of up to Rs. 25 lakhs. If you are a salaried individual with a stable source of income, you can apply for a personal loan and fund your immediate needs and aspirations easily.

Digitized process: You can avail of a personal loan using the instant loan app anytime and anywhere. You do not need to visit our branch to complete the process. You can use this app to easily apply for a loan and access it via Android or iOS. Borrowers generally receive the money within hours of loan approval.

Hassle-free Personal Loan options: Though personal loans might look like they require a lot of paperwork, the Instaloan app is different. The borrowers need to upload some requisite documents. 

These documents include valid identity proof like Aadhaar or PAN, address proof, bank statements, and your salary slips. The requirement for minimal documentation makes it an attractive option.

Easy-to-use Interface: The Instaloan app is known for its user-friendly interface. Borrowers need not be tech-savvy to avail of their loans. Once you install the app, you are automatically guided by instructions that help you apply for a personal loan and complete all other formalities by yourself. 

Based on your documentation, it instantly informs you about your eligibility for the loan. After successful verification, you will receive a loan agreement with all the terms and conditions. 

Once an acknowledgment is received from your end, the loan gets approved. Post approval, the approved amount gets disbursed within a few hours.

Loan Tracking Mechanism: Once you apply for a loan, you can track it on the app. Apart from its status, you can also track the payment due every month. 

Such a feature helps borrowers understand their outstanding amount and the time left to repay the loan. The app also reflects the interest rates and your monthly payment trends.

Fast Loan Disbursal: One of the primary benefits of this online app is its fast loan disbursal mechanism. Unlike traditional loans, you do not have to wait for the loan disbursal. 

The Instaloan app ensures a quick loan disbursal, sometimes as quickly as thirty minutes after the loan application, depending on your eligibility and repayment capacity.

How to use the Instaloan App?

The Instaloan app has a user-friendly interface that helps everybody to use it. Here are some steps borrowers must follow while using an android phone or tablet while applying for a loan using this app.

1. Go to the Google or Apple Playstore and search for the 'Instaloan app by Fullerton India.'
2. Once you are directed to the app, click on the 'install' option.
3. After installing the app on your phone or tablet, enter your basic details, including your name, marital status, gender, address, etc.
4. Scan and upload the requisite documents
5. Enter your bank account, employment, and income details
6. Once you input the above details, click the 'submit' button.

Conclusion

The Instaloan app by Fullerton India is one of the best quick loan apps online. The app offers easy and hassle-free loans to salaried individuals within 30 minutes* of their loan application. 

Thus, borrowers are relieved of the tedious paperwork and lengthy wait time compared to other traditional personal loan application processes. Get your personal loan via the Instaloan app today!

Simple Points To Keep In Mind While Availing Of Online Personal Loan

A notable shift in the credit behavior enabled most borrowers to drift toward unsecured advances like a personal loan. The popularity of this unsecured credit is boosted primarily due to millennial borrowers, according to a recent report.

In the last two financial years, around 41% of personal loan borrowers are within the age bracket between 18 and 30 years.

Overall, this unsecured credit is anticipated to grow at 10% by 2025.

Various financial institutions improved their loan application process, leading to shorter processing time, online loan service, the flexibility of fund usage, and more. 

However, before applying for a personal loan, individuals must consider certain crucial pointers to maximize benefits.

Things to keep in mind when availing personal loan

In the past few years, personal loans have become popular among young-age borrowers as it is a convenient way of financing a range of personal and professional requirements. 

Many lending institutions extend affordable personal loan solutions to customers. However, there are certain points that one needs to follow before a personal loan apply to suit their requirements.

Assess your financial requirements

Before opting for a personal loan, the first important step is to confirm that you have efficiently estimated your costs and financial requirements. 

Apart from this, you also need to understand the purpose of availing of the credit. While applying for a personal loan, it is essential to understand the interest rates applicable and the EMI. This is because; one needs to repay the amount in EMIs and requires a surplus amount to meet repayment expenses. 

For this, borrowers need to carefully assess their financial standing to ensure meeting financial obligations.

Consider the right loan amount

Individuals must assess their requirements and decide which one needs to be financed. Some purposes for taking a personal loan can be financing higher education or wedding, planning holidays, etc. 

Depending on the prices and expenses related to your requirements, you can understand how much you need to borrow.

Maintain a healthy credit score

The first thing checked by a lender when you apply for a personal loan is the credit score. If your credit score is 750 or more, the lender will gladly offer you credit. 

However, a lower credit score indicates bad debt management, resulting in loan application rejection. Therefore, it is essential to know about the ideal CIBIL score for a personal loan before applying for it. 

One can maintain a credit score by repaying their dues on time, maintaining a strict credit utilization ratio, avoiding applying for multiple credits, etc.

Compare interest rates

Before applying for a personal loan or any other credit, comparing interest rates offered by multiple lenders in the market is essential. Individuals with a healthy credit score and good repayment history can negotiate with the lender for the lowest interest rate on a personal loan. 

Since a little difference in interest rate can significantly impact the loan tenor, individuals must carefully compare the rates offered by different lenders in the market to avail of the most suitable one.

Evaluate your repayment ability

Before acquiring an online personal loan, it is essential to structure your repayment. Regardless of the loan amount, individuals are liable to repay on time. It is crucial not only to clear the debts but also to maintain a decent credit score. 

Therefore, checking the interest rate, tenor and EMI, and overall borrowing cost is essential. In this regard, one can use a personal loan calculator to evaluate EMIs in advance and manage finances accordingly.

Check eligibility specified by the lender

Another essential factor that one needs to consider before ensuring a successful application for a personal loan is to check the eligibility parameters set by the lender. 

Most lenders ask for the borrower’s age, income, employment status, etc. Once knowing these parameters, individuals will know about the minimum requirements of these factors. 

Although these qualifying parameters differ across lenders, the fundamental parameters remain the same.

Therefore, taking notes of these pointers allows individuals to avail the most affordable credit and ensure hassle-free repayment.

Read More: Here Are the Key Things to Know About an Online Personal Loan

How to apply for a personal loan?

To apply for a personal loan from leading financial institutions like Bajaj Finserv, individuals can follow the steps mentioned below:

Step 1: Select ‘Apply online to open the online application form

Step 2: Input a few details and verify the OTP sent to the registered mobile number

Step 3: Submit KYC and income details

Step 4: Select the loan quantum you wish to borrow

Step 5: Now, submit your loan application

After this, one of the representatives will contact you for further proceedings.

Apart from obtaining personal loans, individuals can also look at the pre-approved offers extended by these reputed financial institutions. 

These offers are available on a wide range of secured and unsecured financial products that ensure a streamlined and hassle-free loan application process. Therefore, borrowers can check their pre-approved offers by mentioning their names and contact details.

To sum up, individuals should consider personal loan charges before opting for credit. Therefore, keeping these pointers above in mind, one can avail of the best personal loan to meet their liquidity crisis.

5 Consequences that You Have to Face for Defaulting a Personal Loan

A personal loan is one of the most beneficial financial products that can help align finances effectively. Choosing a personal loan can help meet urgent financial obligations without any worries.

Borrowers can choose the repay their loan amount as per the repayment capacity through EMIs. Every personal loan comes with a financial commitment to repay the outstanding amount.

Borrowers must comply with the terms and conditions of the loan to avoid default. Choosing the best personal loan rates and the right EMI amount is crucial after assessing factors such as projected income, expenses, existing loan obligations, etc. 

Defaulting on loan repayment can have grave legal and financial repercussions. Read on to learn more about defaulting on personal loan default and its consequences.

Understanding a Personal Loan Default

In the financial world, the term default is used for situations where borrowers fail to comply with the legal obligations of a loan. Failing to make the repayment through EMIs is a case of default. 

Defaulting on the repayment of a personal loan for over 60-90 days is a serious concern for lenders. After a period of 90 days, the financial institution can issue a notice and take legal action against the defaulter. 

It is also crucial to note that defaulting on a personal loan for such an extended period can damage a person’s creditworthiness and reduce the credit score significantly.

5 Consequences of Defaulting on a Personal Loan

The lending institution which has offered the personal loan can take various actions against the defaulters. The extent of financial and legal damage depends on the terms and conditions of the loan. 

Let’s take a quick look into some significant consequences of defaulting on a personal loan.

A major dip in the credit score

Defaulting on a personal loan for an extended period can seriously damage the borrower’s credit score. A credit score is a 3-digit number that can range between 0 to 900, depending on the person’s credit history. 

It is a quantitative measure used to compute a person’s creditworthiness. A higher credit score indicates better creditworthiness. Multiple factors are considered before calculating the credit score. 

Repayment of the borrowed credit has the maximum weightage. Therefore, defaulting on a personal loan can seriously dip the credit score.

Reduces the future borrowing capacity

Defaulting on a personal loan will lead to a decrease in the credit score. Your credit report will also show that you have defaulted on a loan. This will limit the borrowing capacity of defaulters in the future. 

Lenders will perceive borrowers who have defaulted on a loan in the past as high-risk candidates. Therefore, they can limit the loan amount for past defaulters. Lenders can also increase the interest rate on these loans to hedge their risks. 

In short, your borrowing capacity will be pretty limited in the near future. Also, you won’t be eligible for great loan offers and the best personal loan rates. In some cases, defaulters are unable to get any amount of loan, given their poor track record.

Debt accumulation

Not repaying the borrowed amount punctually as per the agreed terms and conditions of the loan can lead to a massive debt pile. This can also lead borrowers into a debt trap. 

Defaulting a loan obligation means adding more burden on the next payment cycle. You will have to pay additional interest charges and late fees (if any) for defaulting along with the last outstanding amount. 

If you keep on defaulting for a more extended period, the debt will amplify, and this will put more strain on your finances.

Legal consequences

In case of default, the lender can issue a legal notice to borrowers and take matters to court. The lending institutions have several legal ways to recover the borrowed amount. 

However, they don’t take such extreme actions in the first 2 to 3 months to maintain a healthy relationship with the borrowers. 

However, after a duration of 90 days, they might exercise their legal rights to recover the loan amount. It is vital to avoid these legal hassles and repay the outstanding balances timely.

Confiscation of collateral

Some lenders might ask prospective borrowers to pledge collateral for issuing a personal loan. In this case, there is an added risk for borrowers. 

It is important to note that defaulting on a personal loan for an extended period can lead to confiscation of the security/collateral offered. Therefore, you must not default on secured loans at all.

However, new-age lending institutions offer collateral-free personal loans that reduce the risk to some extent. However, you must always repay the loan amount timely. A personal loan EMI calculator can help you find a suitable EMI amount.

Here Are the Key Things to Know About an Online Personal Loan

The outbreak of the coronavirus and the consequent lockdown affected the Indian economy. People faced various financial hurdles to meet their expenses. Some of these people were left with only the option of borrowing money. 

During this difficult period, some individuals prefer instant personal loans. It is one of the cheapest mediums to borrow money. Also, the interest rates are quite low. 

Personal loans are considered convenient and safe financial resources that can provide you with a backup whenever you face a cash crunch. You did not have to produce any collateral. Also, some of the lenders offer instant approval.

One can take a personal loan to fund any financial application. It comes with zero spending constraints. One should take up a personal loan that suits the need of the hour. These tips can help you with the best kind of financial product.

Select your lender who asks for easy eligibility

If you are looking for urgent financial aid, then you should go for an instant personal loan. To borrow the money, you need to meet the eligibility criteria. But before you indulge in any amount, you must go for proper research.

Compare the rate of interest

Personal loans that come with lower rates of interest attract a lot of customers. But you need to compare various financial institutions for the lowest rate of interest. 

Some factors directly impact your loan amount, including the repayment ability and your credit history. Based on these factors, you must set your rate of interest. 

Make sure that you look for the interest rate with the help of a rate of interest calculator. Besides, you should choose a lender who charges interest based on reducing the balance method.

Research about the fees and the additional charges

One needs to have complete knowledge about the various additional charges that come along with dispersal. Generally, the lender can charge processing fees with the instant personal loan. 

Some of these lenders can even charge administrative charges. You must understand that these charges are non-refundable. Hence you should choose a lender who offers a low rate of interest. 

In addition to that, one must consider various charges, including penal interest, processing fees, security fees, and bounce charges.

Look for a flexible repayment period

The borrower must look for flexible repayment tenure to have the best boring experience. If you have flexible tenure, then your equated monthly installment would spread over the convenient period. It can help you to repay the loan amount accordingly. 

It also reduces the defaults chances. One must also compare their prepayment charges if they plan to settle down the amount of loan early.

EMI calculations and credit scores are equally important

One must understand the process to calculate the EMI. Individuals can also take the help of an Online Personal Loan EMI Calculator to ascertain the interest rate. 

It can help them to pick up the best personal loan. It will ensure that you need not have to pay any amount more than the required amount. 

Most borrowers tend to pay an additional charge while looking forward to the payment of advance EMI.

Apart from these facts, one must consider the online process as the smoothest process. If the customer does not have the digital version of their employment proof or income proof, they can scan the documents and upload the scanned picture. 

However, with these facts in mind, you can borrow money without any problem.

4 Tips for Buying the Car You've Always Wanted

For some people, a car is nothing but a mode of transportation. For others, though, a car is a chance to express themselves and fulfill a deep desire. If you find yourself in the latter category, then you know how maddening it can be when you don't quite have enough money to afford your dream car. If you make the right financial steps, though, your dream car will be sitting in your driveway before you know it.

Make It Your Top Priority

When it comes to finances, you are likely to achieve that which you set as your top priority. While you may not be able to achieve other financial goals, at least at the same time, your top priority will likely eventually get enough attention to become a reality. 

Therefore, if you make buying your dream car your top priority, you will be surprised at how efficiently you're able to save money so that you can afford to bring it home.

Take Out A Loan

Since vehicles represent such a large investment, many people pay for them using a loan. With the right terms, a personal loan can provide the cash you need and provide plenty of time to pay the money back. 

Before you take out a loan, it's important that you analyze your budget to ensure that the payments can comfortably fit without putting you in financial distress.

Lease The Vehicle

If the vehicle you have your heart set on is a new vehicle, then you can obtain it more affordably by leasing it instead of buying it. Leases tend to have lower payments than traditional financing because you're paying a lower price, to begin with. 



Another perk of a lease is that when the term is over, you have an opportunity to renew your lease and get into another new vehicle.

Head To An Auction

Some people avoid automotive auctions because they think that only vehicles that are somehow damaged or mechanically unsound are put on the auction block. However, vehicles of all makes, models, and conditions are auctioned all the time all over the country.

Therefore, if you watch auction listings for the various auction companies in your area, you may discover that the vehicle you've always wanted is scheduled to come up for bidding. Given their unique format, auctions often allow you to get a great deal on a vehicle. Just be sure that you have the cash-on-hand to pay for the vehicle when you win the auction.

After putting a lot of work and effort into obtaining the vehicle of your dreams, it's important to take good care of it. After all, it would be a shame for your vehicle to fall victim to mechanical troubles after a few years because you didn't properly maintain it. Therefore, make every effort to follow the manufacturer-recommended maintenance schedule so that you and your dream car can enjoy a long and happy life together.

How Does a Personal Loan Help in Your Business?

Running a business comes with its fair share of responsibilities; right from more significant issues like hiring staff, finding suppliers, advertising to smaller expenses like buying a coffee machine for the office. As an entrepreneur, your job is a coming together of many responsibilities and duties. 

Adding support to your entrepreneurial journey is a quick personal loan. It can be used to cover any and every expenditure of a business and allows a company to flourish and touch new milestones.

Here is how a personal loan can help you run your business better:

It gets approved quickly: It is relatively simpler to meet personal loan eligibility rules. The lenders check your CIBIL score to accept or reject the application. You can get a loan by submitting necessary documents such as your bank statements, identity, and address proofs and income statements.

It covers urgent shortfalls: When you apply for a personal loan online, the approval process takes the least possible time. This is useful to cover any immediate financial crisis that you might face in your business. Any other form of credit can require a longer approval time.

It offers flexibility: An instant personal loan can be used for multiple needs. When you submit your application, the loan provider does not inquire about the reason for your requirement. 

You can use the funds for many miscellaneous expenses of your business. Personal loans offer a lot of flexibility to entrepreneurs. They can cover a broad spectrum of costs. This is particularly helpful for small companies or sole proprietors.

It does not need collateral: One of the biggest concerns faced by entrepreneurs is having to sign an asset as collateral when taking a loan. Not only is this risky for the business, but many small enterprises may also not own enough assets to show as collateral. 

Personal loans are unsecured. Hence, you do not require a security or third-party guarantor when you apply for one.

It provides convenient repayment methods: You can choose a suitable loan tenure and equated monthly installment (EMI) amount as per your business’s ability to settle the loan. 

You can also repay a specific portion of the funds with the option of part-prepayment. Personal loans offer different ways to repay the money. These match with most businesses’ capabilities and constraints.

To sum it up

A personal loan can help your business in many ways. It can offer increased financial stability to overcome many economic hurdles. The consumer-friendly nature of personal loans and the carefully designed features can aid both big and small companies in times of need.

If you are an entrepreneur and require capital for the growth and expansion of your business, you can apply for a Tata Capital instant personal loan. With rates of interest starting from 10.99%, you can secure a loan up to Rs 25,00,000 with a loan tenure of up to 72 months.

5 Ways to Get Personal Loan Even with Bad CIBIL Score

Personal loans are easy to avail when you meet all related eligibility criteria. One of the most important factors when considering creditworthiness is your CIBIL score, which is your credit rating. Generally, poor credit scores disqualify you from availing loans. However, there are certain tricks that makes personal loans for bad credit possible.

If you need a personal loan with bad CIBIL score, you can try these workarounds to get the financial help.

Take the loan jointly

When it comes to personal loans for bad credit, the best alternative is to opt for the loan together with another friend or family member. Ensure that the other member’s CIBIL score is at least 750. In this manner, you can bypass your poor credit rating and receive the loan amount from the lender.

Check for errors on CIBIL rating

In some cases, the CIBIL score may fail to show your actual creditworthiness. This generally happens due to a mistake during the CIBIL score calculation. Ensure such faulty scores do not hamper your chances of availing a personal loan. Double-check all the details you provide on CIBIL, such as the PAN number and credit history information.

Enquire about associations between lender and employer

Salaried employees working for reputed companies or organization can check whether their employer has a tie-up with the NBFC in question. You can exploit this connection to avail a low CIBIL personal loan. Financing companies often prefer lending money to employees of such esteemed companies.

Look for other lenders

The eligible credit score for availing a personal loan varies between different lenders. Some NBFCs may offer such loans on lower credit scores as well. Therefore, you should look at all available options. 



You may find a lender whose eligibility criteria you can match. Personal loan eligibility calculators will help you determine whether you can avail a loan or not.

Reinforce your application with a collateral

In general, personal loans are unsecured financial products. You cannot pledge an asset against the money you borrow. However, some financing companies may allow you to do so if you are looking for personal loans for bad credit. Check whether your lender has such provisions in place.

However, improving your credit score is the best way to ensure a fast and hassle-free personal loan approval.

Methods to improve CIBIL rating

• While using credit cards, keep in mind that you should spend only as much as you can repay within the billing date for the card. Unpaid credit card bills hamper your credit rating.
• If you are already repaying a loan, ensure you make EMI payments on time every month. Late payments or defaults will adversely affect your CIBIL score.
• In some cases, the credit score on your CIBIL account does not reflect your credit rating but that of someone else’s. This may happen due to an error on your part while entering your details or due to other reasons. Rectify these mistakes as soon as you notice them to improve your credit rating.
• Rather than looking for a personal loan for bad credit, you can try to improve your CIBIL score by increasing the credit limit on your credit card. High credit limit results in a better first impression about you on lenders.

NBFCs provides pre-approved offers, which makes the loan availing process simpler and faster. These offers are available across both secured loans, such as home loans, and unsecured loans, namely, business loans and personal loans.

So, do not stop looking for a personal loan for bad credit. You will either find a way to avail such a loan with poor CIBIL score or improve your credit rating in the process.

A Guide on How to Track your Personal Loan Status

An unsecured personal loan is one of the widely availed finances in India, with around 13.9 million accounts alone in Q1 of 2018, according to CIBIL. The total amount of unsecured credit (personal loans and credit cards) at the end of FY2018 amounted to $82 billion.

The increasing popularity of personal loans is primarily because of the changing lifestyle of Indians, their growing needs, and increasing consumerism. Individuals use these loans to fulfill various objectives, from hosting a wedding to buying a 4-wheeler or going for higher studies or medical emergencies.

The easy and quick availability of unsecured personal loans has also made it hassle-free to avail of them. Moreover, financial institutions offer several features and benefits with these products.

How to check loan application status?

You can check the status of your personal loan from the lender’s website. Usually, financial institutions have a dedicated page that tells you about your loan status. The information that you have to provide may differ from the company.

Checking the status of your revenue based loan is crucial after you apply. You have to know whether your loan application is approved or rejected. And I think Nucleus Commercial Finance would be a great fit here. They've been around since 2011, and they combine the stability of open banking with the flexibility and speed of alternative lending platforms.

Some of the general data that you have to provide include:

• Application ID or Reference number
• Form number
• Name
• Date of birth
• Mobile number
• Product type
• Loan amount requested
• PAN

Clicking the “Submit” button will enable you to learn your unsecured personal loan status.

What are the features of personal loans?

Personal loans can come with the following features:

High financing option

You can avail of up to Rs. 25 Lakh with personal loans. Also, lenders don’t require collateral to sanction these loans.

Instant approval and disbursal

NBFCs can approve personal loans in 5 minutes. They can also disburse it within 24 hours or one working day.

Nominal documentation required

Financial institutions only need your KYC documents (Passport, Driving License, Aadhaar, PAN, Voter ID), employee ID card, bank account statements of the last 3 months, and salary slips of the previous 3 months for the approval procedures.

Simplistic eligibility criteria

The eligibility criteria for personal loans require you to be between 23 and 55 years of age and employed with a private/public company or MNC.

Flexi Loan facility

Bajaj Finserv also has a Flexi Loan facility. With this facility, you have to pay interest only on what you withdraw from the sanctioned loan amount. You can also pay only the interest as EMIs. Repay the total amount of funds withdrawn at the end of the tenor.

The Flexi Loan facility lowers EMIs by as much as 45% compared to traditional personal loans.

Pre-approved offers

Lenders bring pre-approved offers on Personal Loans that save you time when availing of financing by making the process hassle-free. Pre-approved offers are valid on home loans, business loans, personal loans, and a range of other financial products & services. You only have to provide a few essential details to check your pre-approved offer.

What are the things to remember before applying for a personal loan?

Do remember these few things before you apply for a personal loan:

Opt for a reasonable amount

Financial institutions may reject your application if you apply for a high amount. Hence, it is recommended to use a personal loan eligibility calculator. It will help you learn the highest loan amount you are eligible for as per your income, outstanding credit card debt, and loan EMIs.

Calculate your EMIs

Calculating your EMIs helps you to know whether you will be able to pay them. Use an online EMI calculator if you don’t know how to calculate personal loan EMI. Have a high credit score

Lenders need a credit score of 750 or more to sanction you a personal loan. Improving the credit score requires only a credit card. You can also avail of a secured credit card by pledging a fixed deposit as collateral.

Paying the total amount due within the deadline and utilizing 30% to 50% of your credit limit will improve your credit score.

You must lower your fixed monthly obligations

Ensure that the ratio of your monthly income to your fixed monthly obligations is lower than 50%. Closing your existing loans and clearing your credit card debt can help you achieve this ratio.

Opt for an unsecured personal loan today to fulfill your financial goals. Financial institutions give you the option to apply for these loans online. You only have to provide your personal details, income, and a few other basic details to apply successfully.

6 Brilliant Ways to Repay Your Personal Loan Sooner

The biggest benefit of repaying your personal loan faster is big savings on monthly interest. When you are regular with your payments, it has a positive impact on your credit score. If you want to repay less overall and enjoy early freedom from debt, follow these tips to speed things up and save yourself a good deal of money.

Start with the Most Expensive Personal Loan First

This strategy will not only help you become debt-free faster but also bring you lasting peace of mind and motivate you further. Also, you would be left with more cash to make other repayments. Repaying the bigger chunk first reduces the total amount of interest you pay and also decreases your personal loan tenure.

Increase You Repayments with Every Raise

If your personal loan comes with a variable interest rate, you should be able to change your repayment amounts. If you can, rework your budget to create some extra room to raise your monthly repayment because the lesser you owe, the more you save in personal loan interest.

Double the Frequency of Your Repayments

If your personal loan EMI allows you to keep some extra cash every month, you can not only increase your repayment amount but also the frequency of your repayments. 

If you repay every fortnight rather than repaying every month, you end up paying extra for two weeks as there are 26 fortnights in every year and this will make a massive difference down the line.

Budget and Cut Back Where Possible

Budgeting helps schedule your expenses and reallocate your funds to pay off your personal loan faster while enabling you to cut down on all unnecessary expenses. By keeping an accurate record of your earnings and expenses, you would be in a better position to knock over the outstanding balance sooner.

Round Up Your Personal Loan EMIs

Rounding up your EMI payments will help you repay more. For instance, if your personal loan payment is Rs. 1725.12 every month, you should round it up to Rs. 2000 as this small amount is easy to set aside but will make a big difference eventually by saving your interest money and shortening the loan tenure. So, if you cannot increase the repayment frequency, at least raise the amount.

Go the Extra Mile with One Extra Payment

Squeeze in one big additional payment if you ever get some extra cash through a tax refund or a festival bonus. Whenever you have more money in hand, repay in advance to enjoy EMI-free months later.

The Pros of Paying Off Early

Apart from not having to set money aside for monthly payments, the extra cash can be used to save for your retirement, make home improvements, enjoy a vacation, buy consumer durables online, or pay off other small debts. 

So whether you are repaying a personal loan or about to apply for a personal loan, you can follow these tips to become debt-free faster. 




If you are stuck with a personal loan that has a higher interest rate, you can consider switching to MoneyTap’s personal line of credit. It is an amazing personal loan with a credit limit that is available to you for a lifetime. 

With a MoneyTap personal loan, your outstanding balance is recharged every time you repay your borrowed amount, so you will never run out of cash. 

Also, unlike traditional personal loans that have prepayment penalties, MoneyTap’s personal line of credit allows you to prepay your loan without inviting any extra charges.

So switch to MoneyTap’s personal line of credit and enjoy the best of both worlds – where you will not only save on interest but also get instant access to funds whenever you need them. 

Author bio

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India's first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life's mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.