Will Moratorium Affect Your Personal Loan Eligibility? Explained in Easy Points

 

RBI’s EMI loan moratorium came as a bitter-sweet relief for the self-employed and salaried individuals after a terrible economic crisis amidst the lockdown. Out of three individuals, one has opted for the initial moratorium to settle down the finances. It was taken up by individuals with auto loans, personal loans, home loans, and credit card loans too. Starting from March 2020 to August 2020, many had undergone the moratorium to bring some relief to their financial condition. As per the guidelines, the credit rating or credit score would not be affected during this period, if an individual does not pay his or her EMI or debt. This was done to garb the bad economic condition in the country amidst job losses and salary cuts. However, this moratorium was not a good idea, as it had shown more negative impact than anything positive.

 

Did moratorium affect credit score?

No, the moratorium did not affect the credit score. To understand things better, you need to understand that how they worked. The Moratorium period started from March 2020 to August 2020. During this period the banks allowed the customers to avoid or ignore paying the EMI, bills and make any payment. Non-payment or missed payments during this session would not be added as negative to their credit record and it not has any impact on their credit score. This was the advantage why one out of three people opted for the moratorium. Amidst the job losses and terrible economic condition, paying EMI and bills were not possible for a good percentage of people. This has helped them to keep the EMI away for the months and focus on the necessary and the fixed obligations rather. Since your credit score or record will not be affected, your personal loan eligibility does not affect you.

 

Was it a good idea?

A moratorium was a sweet poison. It did some good by shifting the EMI payment for few months at the time of crisis. But this had become more expensive, due to the added rate of interest. It was not a waiving off the EMI or any amount from the loan, so when individuals started paying they had to pay the EMI for the same month along with moratorium month interest. This became a burden for many to make a high payment from August.

 

Wrapping up

The moratorium did not allow any negative impact on an instant personal loan. The credit score of the individuals was not affected, and this was the only reason why it became a popular relief.

Which loan should you repayfirst- Home Loan or Personal Loan?

 

A costly lifestyle and sudden emergencies can put you under multiple debts. There can be instances when you are ongoing a personal loan and a home loan. Probably you have taken a personal loan to cover up an emergency, and a home loan to get your first home. If you have got hold of some surplus amount of fund and thinking of settling up one loan, then which one would it be? Prioritizing the loan will be very important, and there are certain factors that you need to pay attention to. You cannot simply say that you like the instant personal loan, so you will finish it off first!

 

Finish off the loan with a high amount: If the amount is the factor, then it has to be a home loan for sure. The idea should be to finish off the costly loan first. A personal loan is usually a low-budget loan, whereas a home loan is a huge burden for a long period. If you have the fund to settle up one loan, then go for the home loan. The EMI is always high and takes a good share of your income monthly, so finish it off with the extra fund that you have. This will help you with a good disposable income that you can save and invest in. You should down your burden by finishing off the high amount loan at the first.

 

Finish off the loan with a high rate of interest: Choose the loan that has a high rate of interest. It depends upon your rates completely, because you may have an affordable personal loan or vice versa. The loan with the highest rate of interest should be finished off. Paying off a high amount of money as extra in the form of a rate of interest can be very daunting. You must stop paying the extra rate of interest for a long period. The loan with a low interest rate can be easily given off once you are done with the high rates.

 

Finish off the loan with long tenure: Long tenure loan has to be a home loan that goes up to 15 years. Bearing a loan for 15 years with high EMI and rates of interest monthly can be a huge burden. This is the best decision to finish off the instant personal loan with the surplus fund that you have just got.

 

Wrapping up

A home loan should be finished off first, considering the high cost and rate of interest for a long tenure. A proposal loan is not a burden because it is a low-budget loan with affordable rates. For your ongoing personal loan in Chandigarh, you can surely pay off your EMI with ease.

Loans vs. Advances – Difference Between Loans and Advances

 

A salaried employee often seeks an advance from the salary, due to some unexpected expense. When the salary date is far, and expenses cannot be delayed, a request for an advance is very common. However, this is not the way an organization would function and can make you prone to embarrassment and a bad image. In such a case a loan is the perfect way to handle your expenses without being embarrassed or being under any compliance. However, the right thing for you should be decided by you after considering all the needs and factors. A instant personal loan may not be embarrassing but is a burden. So, before you decide, get a complete understanding.

 

What is an advance?

An advance is applicable for salaried people and underemployment. Due to some need, an employee can ask for a part of the salary in advance, that is before the salary date. As an emergency can come anytime and it cannot be delayed, an advance is a very common thing. It is a part of the salary and there are no extra charges or rates that are charged on. The only disadvantage would be the company policies and the rules. If your company is employee-centric, they may offer you this help under exceptional cases.

 

What is a loan?

A loan is a debt where a person borrows a certain amount of funds from a financial institution. It can be a bank or a private loan provider. For the money you borrow, you will be charged with a rate of interest and there will be other charges as well. It comes with a fixed tenure and you need to repay it within that period. It is a good way to have a huge chunk of money, only if you can pay it back. A loan is a better way to maintain your image but has a lot of risks.

 

Which is better?

Both of them are sources of instant funds to meet your needs. However, it completely depends upon your individual needs and factors. If you are okay to pay charges but not go against company compliance and policies, you can go for a loan. However, if you are capable enough or don’t lookout for a debt, you can negotiate with your employer for an advance.

 

Wrapping up

It is easy to go for a personal loan if you are having a good income. For a personal loan in Bangalore, visit the official website of Clix Capital and you will find amazing deals and rates as per the market standards.

 

The Do’s and Don’ts for getting Personal Loan

Like there are some prerequisites for everything that you come across, a personal loan has its do’s and don’ts too. These sets of rules are very simple and very important at the same point in time. A financial institution offers a loan only when an individual meets up all the eligibility criteria and is responsible enough to repay. If you want a hassle-free and smooth loan journey, you need certain protocols to follow. Here are some of the very common do’s and don’ts of personal loans, that can make the process of borrowing a simple one.

Do’s for getting a personal loan

• Maintain a good credit score: If you need a personal loan easily without any hassle, you need a good score. A good score indicates smooth debt repayment in the past and impressive credit activities. It helps you to be an asset for the financial institutions, and you get your approval without any hard work.
• Maintaining debt to income ratio: Borrow after you are left with no debt. If you follow this, you will have an impressive ratio, and a loan provider will not feel risky to approve you of a personal loan.
• Fetch good options: Compare as much as possible and you will have the best personal loan. Do not settle for the first loan application without hunting for a better option.
• Add security: Go on and add security to turn your loan rejection into an approval. The moment you attach security, your loan provider goes with easy approval.

Don’ts for getting a personal loan

• Don’t miss out on the rate of interest: Do not rush without comparing the best rates in the market. You need the best and affordable loan that comes with a low rate of interest. Make sure you are settling down for a low rate. Do not go for any loan rate that is being offered to you.
• Don’t avoid loan agreement: Your loan agreement has every detail that has been avoided or missed by your loan provider, hence, pay attention to it. Keep track of all the charges.
• Don’t rush on application: Do not rush on with finalizing your loan, without looking for good options. This will always give you a bad experience, as there are chances of better negotiation and rates.

Finishing up

If you need a personal loan in Bangalore, visit Clix Capital. It has to be the best venture to offer you an easy and instant loan, upon approval. From rates to easy documentation, you would find the journey very smooth.

How to Get a Personal Loan if you have Low Salary / Income?

 

Low income is the most common reason for a personal loan. When daily expenses or occasional expenses get higher than income, an instant personal loan becomes a need. However, the banks are very critical in terms of eligibility criteria while offering a loan. A low salary does not give you easy approval very easily, as there can be some sort of risk in repayment. However there are other ways too, that can help you get a personal loan even if you have a low income. If you are finally feeling relieved, you can read on to gain an understanding of the ways to borrow.

 

A good credit record: You may have a low salary, but your high credit score and clean credit background can make your way. A loan provider will always check and give equal weightage to credit score and credit background. If you have maintained your credit journey well, with your low income, this makes you creditworthy. There are huge chances that you get a loan easily approved. It is always recommended that a high score is very essential for a personal loan.

 

Secure your personal loan: If low income is giving you rejection, add on security to have a personal loan for salaried. You may have properties that you do not use, so use them now to get a loan. The moment you add collateral or security to your personal loan, it gets approved. There is no risk in a secured loan, and approval is also given easily. Make use of security and then once you repay, you get your asset back without any deductions. This is the best way if you don’t have a good income to show.

 

Add a guarantor: A guarantor helps you in getting a loan when you face rejection. Make sure you are choosing someone that has a good income and a good credit record. If he takes the guarantee of your loan, you can easily have your loan. It is not easy to find a loan guarantor that could take risks for you; however, friends and family would surely help.

 

Look for options: Having a single rejected loan should not put you down. You must keep looking out for various options, as the market is filled with wide options. There are financial institutions, banks, NBFC, and private loan providers that can offer you, so settle only when you have one.

 

Wrapping up

A personal loan for salaried is essential when your income is low. If you are unable to cope up with your expenses then go for a personal loan in Chennai. 

Things to Know Before Becoming a Personal Loan Guarantor

 

An individual with good friends and an impressive credit score may face a lot of requests for being a loan guarantor. A loan guarantor is a person that takes the guarantee of someone else’s loan when that individual is facing rejection. It is good to help someone have funds at the time of need, but you need to keep yourself alert about the possible drawbacks and risks associated with this. A loan guarantor doesn’t enjoy the fund but needs to take the responsibilities equally. So before you become a co-signer for an instant personal loan, you need to pay attention to these details.

 

• You are under debt: It is not you that borrows, but since you have been a guarantor for the loan, it gets added to your credit report. For the tenure the personal loan goes on, it is added to your report and you are not eligible for a further loan unless it is over. This decreases the chances of your borrowing when you need it for yourself. So, when you are closing your chances to borrow for someone else, you need to think twice.
• Your credit score is affected: Since the loan gets added to your credit report, your credit score is into play. If the loan is repaid on time, it helps your score positively, and if not, then the opposite happens. Your score will go down if the loan EMI is missed or not paid within the due date. You need to understand that the activities of another individual regarding his loan, will affect your credit background.
• Your savings are hurt: It hurts when your savings goes into paying someone else’s loan. This happens when the individual is not being able to pay, and you will be responsible. You are the guarantee for the loan repayment, so without any changes, you need to use your savings to pay the loan. This means, your hard-earned money is paid for someone else’s expenses. If you are being a guarantor, make sure it is worth taking such a huge responsibility.
• Your peace of mind is affected: A debt is a constant burden, and it is on you without any profit. The EMI dates, the fear of repayment failure, or bad credit scores can give you daunting nights.

 

Final words

A loan guarantor is a big decision, as it is filled with drawbacks from every corner. If you are helping someone get a personal loan in Bangalore, refer him to Clix Capital for a better experience.

8 Things to Remember for First-Time Personal Loan Borrowers

 

The need for an instant source of the fund can come up anytime. Life often throws disappointment and plots that needs instant fund for survival. While borrowing from friends can be embarrassing, delaying emergencies seems to be impossible. The only way out of such a situation is an instant personal loan. A personal loan is safe, quick, and easy to have if you know the proper prerequisites. Borrowing from financial institutions is a huge responsibility, and before you dig in, make sure you are aware of some essential key points. Here are some of them that can probably help you with the right decision.

 

• Keep your credit score in a good condition. That is the factor that will be given priority to, and you need to meet the expectations of the score as set by your loan provider. Without this, you will have a long battle in the borrowing journey.
• Borrow only when things are important. You cannot simply end up borrowing for a trip or a gadget, as those expenses can be delayed.
• Borrow the right amount, as you need to pay an interest rate for every penny you borrow. Don’t borrow more or less than needed, go for the exact need amount.
• You need your eligibility criteria in place, like your income, debt to income ratio, and other factors as stated by the various reputed financial institution.
• Be very careful while you note every detail in the loan agreement. It is the blueprint of your loan and has every detail that needs your attention. Be careful about all the charges, fees, payments, and everything that you need to pay during your tenure.
• Pay attention while choosing your loan provider. Do not settle for the first loan approval that you get. There is a lot more to compare, and you need to compare rates and other factors. Settle down, only when you have taken into consideration some good options.
• Negotiation for the best rate of interest is very essential. You just cannot afford to have any rate that is being offered. You need to speak up and crack a good deal.
• Decide your EMI based on your ability to pay. Make sure it is within your budget, and you can afford a smooth repayment once you have borrowed.

 

Wrapping up

Going for a personal loan is best if you are equally active while repaying it. It helps you through thick and thin, only when you maintain a smooth credit background.