The financial industry in the country is growing rapidly day by day. With the number of borrowers increasing to apply for loans, the lenders in the industry are competing with each other regularly to prove themselves as the best among the other financial institutions. NBFCs and banks have also increased the business with a lot of offers for the borrowers with regards to the interest rates. People are also switching towards this new market trade instead of availing the other options offered by the banks.
Many banks and NBFCs offer innovative and lucrative loan products at affordable interest rates.
Personal Loans
Among the loan products, a personal loan is the most enquired loan product in the industry at the moment right now. 90% of the finance were disbursed as personal loans only in the year 2019, as per the industry reports.
It’s because personal loans offer the required funds for the individuals with easy eligibility and are also flexible in its nature. It needs very minimal documentation and the loans are taken for very essential requirements like wedding, education and medical emergency. Some people also opt for these kinds of loans to go for a vacation for their family or even to buy a fancy gadget.
Personal loans can also be availed instantly through the financial institutions, provided you meet their criteria of eligibility according to the lender you apply for. Some lenders even disburse the loan amount within 24 hours of time. A new range of application processes is the online facility provided by all the lenders in the financial industry. It is more convenient for applying with comfort as you can do it from your home or office using a laptop or a smartphone. And with the competitive interest rates and the benefit of without submitting or pledging any asset, the personal loans are a blessing for every borrower.
Business Loans
Next to the personal loans, are the Business loans which are in high demand nowadays. These loans are short-term loans that don’t need any collateral to submit like the personal loans. It is the ultimate source for every businessman to run any kind of business as it helps to meet the endless expenses of a business.
Most of the lenders offer the business loan for applicants who have a decent credit score and fulfill their eligibility criteria. Business loans are mostly availed by startup companies and also well-established companies at times to buy stocks, new machinery, to hire staff, training the employees, expanding business, marketing or promoting their products or as a working capital loan.
With all of the above things required for a business loan, one loan is just not enough to meet the endless expenses of a business. Businessmen sometimes opt for a personal loan to meet certain expenditure. But most of the people are not really aware of the loan process and requirements when you want to get a business loan and a personal loan simultaneously. Whether to buy a personal loan or not, if not they will be struggling to manage their business. For those who are in such a situation, the answer for them is a big YES. The lenders offer individuals more than one product loans, if you satisfy them with your eligibility levels and some of the important points are discussed below:
Credit Score
A credit score is a very important and essential aspect for lenders to assess your financial history. It reflects your past repayment history, your current loan status and the defaults in the past on your loan payments. Therefore, the lender will not monitor your credit score only if it comes to availing a single personal loan. Lenders might just approve with the financial credentials and other factors like the tenure of the loan and the loan amount etc.
If everything goes well since you have a determining track record in the credit history, then the lender will have no issues in sanctioning the loan. They will study the entire report of the credit to analyse how well you have been handling your budget and finance on a timely basis. A credit score which is above 750 is considered as a good score to grant you the loans. The lenders who are offering the loans will sanction your new loans even if an existing loan provided your credit score is over 750.
Repayment Capacity
This is the most important point in which any and every lender looks out for when you apply for a loan. Lenders are always ready to provide new loans if you’re capable of paying it back at the specified time. If they understand that they can trust you to handle multiple loan repayments simultaneously, they will immediately approve the loans. The repayment capacity is judged with the applicant’s income, and financial credentials. And that is why they ask for your documents like income proof, bank statements, and chartered account reports audited by an accountant. If everything goes well, they will deliver the loan amount as quickly as possible.
Income
The income you earn plays a vital role in the loan approvals as the lenders consider it as a security for their money. And it should be stable enough to prove that you have a regular income credited to your account on a monthly basis. Lenders are concerned with this since the repayments are important for them which have to be paid by you with the respective interests. If they can read your financial status and you have a steady flow of income, lenders will understand that you can also pay the monthly EMI’s. It will be also helpful for them to come to a conclusion that you can manage both the business loan and Personal loan simultaneously without any hiccups or struggles by paying them regularly in the future. Since both are unsecured loans in nature, they will acquire a higher rate of interest compared to the other loans. It is also important to calculate the numbers before, so that you can avoid the burden of separating a solid amount from your earnings,
