Reasons for Personal Loan Rejection

 A personal loan is a versatile financing solution that helps you meet needs of various types. It is a quick source of funds for emergencies and instant needs. There are various sources from where you can borrow a personal loan. Banks and non-banking financial institutions are very regular with personal loans. It enables you to cover immediate expenses without difficulty.

Read More: Do’s And Don’ts While Applying For A Loan

A personal loan is an unsecured form of loan without any need for collateral or security. Since it is an unsecured form of loan, the risk of default is high. The eligibility criteria, therefore, will be very high. If you are borrowing for the first time, you must know some common reasons behind a loan rejection after you apply for apersonal loan online. If you are aware of the reasons, you can work on them to avoid any sort of rejection:

●        A low credit score: The most common reason for a personal loan rejection is a low credit score.A good credit score is always a representation of good credit habits, a good repayment track, and financial stability. On the other hand, a low credit score means there is instability and there have been cases of delayed payment or default in the past. This can reject your instant personal loan online application straightaway.

●        A low income: If you don’t earn well, it can lead to a personal loan rejection. A low income means there is a risk of default in repayment. No loan provider will be able to take the risk. The purpose of checking credit eligibility is to ensure that the repayment will be done smoothly. You must make sure that you do not borrow with a low income.

●        Incomplete documents: If you are not able to produce all the original documents, then it will be a hurdle. You need to make sure that you have all the documents as asked by your loan provider. If not, you may get your loan rejected.

●        Multiple loans: If you already have multiple loans, you need to make sure you close them before taking on a new debt. If your debt-to-income ratio is not balanced, you will not be able to get a loan. Make sure you close all your existing loan applications before you apply for a new one.

●        No job stability: If you keep changing your job frequently, it means there is no stability. You need to make sure that you work with one employer and then stabilize your employment.

Finishing up

Are you thinking of starting the personal loan apply online process? If yes, visit the Clix Capital website to apply for an instant personal loan online with the help of a personal loan calculator.

6 Tips to Plan Finances for Your Wedding

 

Indian weddings are extravagant and amazing. Parents go beyond their reach to celebrate a perfect dream wedding like any movie or fairytale. It is indeed a luxurious affair with so many glamorous events and rituals where the whole family gets together to celebrate and enjoy. However, all of these add up to a huge expense, and it is never an affordable or easy one. After a wedding, the finances are almost exhausted, and you need to plan your wedding well so that you are financially stable even after celebrating it in all its royal and amazing ways. Here are some of the best tips that can help you plan your finances with top-rated wedding loans:

Take a personal loan online: A wedding is an expensive affair. It is true that you have planned it for years. However, there is always something coming up at the last moment that you can not compromise. In the middle of a wedding, you cannot face a financial crisis, so it is better to have a personal loan to stay financially stable without hurting all your income and savings.

Make a budget: You need a budget for your wedding. The budget should have all the small and big wedding expenses. It is important for you to follow the budget as per the needs.

Do not spend too much on décor or lighting. A wedding should be amazing with relatives, the bride and groom, and happiness and joyful moments. You do need to spend a lot on the décor, just for a few hours. Décor is very costly nowadays and it is a complete waste of money that you should avoid.

Cut down on guests: It is your wedding and it is the most special day of your life. You must cut down on your guest list to save a lot of money. The catering services are very expensive. Why waste time on people you don’t even know and do not count much in your life? Well, it is better to keep a good crowd and your budget under control.

Don’t spend much on the venue: A cozy wedding is always very special. The venues like banquets and open grounds are too costly for a few hours. If you can decorate a penthouse or your ancestor's home beautifully, it will add a touch of emotion and joy.

Save a good amount: When you save for a long time, you can actually make a lot of money. Keep your expenses within the budget so that everything is in sync and in good order.

Wrapping up

A personal loan online or wedding loan is the best one to have a perfect wedding moment. Go for an instant personal loan so that you can get the best digital borrowing experience.

Things to Consider When Availing Instant Personal Loan

 Instant loans are personal loans that you can apply for online. In just a matter of few hours you will receive the money in your bank account. You can get instant loans online without much documents.

Tips to consider before applying for instant loan online

Below are the 5 tips you must consider before applying for an instant personal loan online:

1. Stay aware of your CIBIL score and repayment history

Instant personal loans require the applicant to have a CIBIL score greater than 750. Your credit score denotes your credit history and how well you have utilized your credit. The better you use credit card utilities, the better your credit score will be.Good credit score means that you are creditworthy and will repay on time if you are offered a loan.So, before you apply for an instant loan, you should be clear about your credit score.

2. Read the fine terms and conditions

Generally, before e-signing a loan agreement for an instant loan, the customer should familiarize himself with the terms, rules and cost. However, it is your responsibility to consider every detail of the loan before signing the contract. Reading the terms well saves you from future turmoil and surprises and makes you aware of your responsibilities as a borrower.

3. Keep the required documents ready

Keep your documents such as photos, bank statements, addresses and proof of identity, etc. ready. Save PDFs and images before using them on devices such as smartphones, computers and tablets. Prepare it in advance so you can upload it if necessary. Ensure a break-free procedure of the online personal loan application.

4. Smartly choose your instant loan amount

While you have the option of choosing an instant loan amount, if you qualify, all you need to do is to choose the right loan amount.

Don't push too hard on loan which can disrupt your budget and reject your future loan applications, which negatively affects your creditworthiness. So, before you start thinking about how to get an instant loan online, determine the loan amount you want.

5. Check your eligibility and probable EMI beforehand

Use the personal loan EMI calculators to determine the maximum loan amount you are eligible for, your EMI, and the associated costs. This exercise will explain what your EMI will be. This will help you plan your budget and get a loan amount that you can easily repay.

Must Read: Key things to consider while opting for a personal loan

Conclusion

Also, make sure that you are being offered a minimum interest rate by all the lenders in the market. Again, make sure you need an instant personal loan. Instant loans can be useful in times of need, but can be burdensome if not justified.

Personal Loan Foreclosure - The Complete Guide

 

Typically, personal loans can be repaid over several months at a low and fixed EMI. But sometimes we receive a bonus from our employer or unexpectedly from our family, which allows us to repay the entire loan amount at once. What is the best way to proceed in this case? Should you go ahead and pay entire amount of your loan? Is there a provision for prepayment offered by your lender? Let's find the answers to these questions.

What is Pre-Payment/ Foreclosure of a Personal Loan?

Prepayment or foreclosure of personal loans is basically the process by which the borrower repays the loan before the term expires. The borrower is required to repay the principal amount to close the loan.

Things to Consider before Pre-Closing a Personal Loan

Here are a few things that you need to consider before you decide to foreclose your loan:

Foreclosure Fees - Most lenders charge a foreclosure fee when the borrower decides to prepay the loan. Typically, foreclosure fees range from 2% to 6% of the principal amount owed at the time of foreclosure.

Lock-in Period - Most lenders have a lock-in period of several months to a year after which the borrower can prepay the loan.

Remaining EMI - You need to calculate the total amount you have to pay in terms of remaining EMI (of course if you let loan naturally) and compare it to the total amount you have to pay if you decide to foreclose the loan. This will help you figure out which method is more useful to you.

Seasonal Offers - While this is rare, there are times when lenders have seasonal offers where they waive foreclosure fees for a limited period of time. Be updated with such offers and increase your potential savings by prepaying your loan during this time.

Read More: When to choose a Personal Loan over a Secured/Collateral Loan?

What is the Foreclosure Process?

If you have the required amount and want to prepay your instant personal loan online, you must follow the foreclosure process:

Contact Your Lender - First, borrowers need to contact their lender and generally write a request expressing their desire to foreclose the loan. Existing loan account number and all other important customer data must be specified in the application.

Payment of the principal amount-Once the lender accepts the request, they will calculate the amount owed taking into account the interest paid so far as well as the date of foreclosure. The foreclosure date will then be communicated and you must pay the amount by the specified date. A foreclosure fee is added when making the foreclosure of the loan.

Get a Certificate of Clearance - Make sure you get a no objection certificate (or NOC) from your lender stating that the full amount has been paid and nothing is due. The certificate must contain all other important information about the client.

These are some of the important factors that you must consider before you decide to foreclose your loan.

When to choose a Personal Loan over a Secured/Collateral Loan?

 Most of us take loans to meet our financial needs, but some apply for them just to improve their credit history or to create one. For any reason, you can choose between unsecured or secured loan options. A secured personal loan has no risk as the borrower pledges a security or asset along with it to recover the loan amount if he defaults. For a loan provider, a secured loan is the best business. Did you know you can benefit from a secured loan too by being a borrower? If you have assets at hand to keep away till the loan term ends, you must do it. The benefits of choosing a personal loan with security or collateral are huge. Take a look at all the benefits before you delve in and borrow.

Benefits of borrowing a secured personal loan

●        Access to various financial products: When you have a security or collateral to keep with your bank, you are open to borrowing various products. There is no loan or line of credit that you can not get. With security, you are an asset and an essential business to the loan provider. You can easily access any loan as per your needs. If you need an instant personal loan, you will get the best deal when you have an asset to pledge.

●        Lowest rate of interest: A rate of interest is the amount that is an extra sum of money paid along with the principal loan amount. This amount should be kept low so that the loan and EMI remain affordable and under control. It is very important to keep your interest rate checked. When you secure your borrowing by pledging a collateral or security, you will get the lowest rate of interest. The EMI will be affordable and you won’t pay a high extra amount every month for the long-term loan.

●        Easy approval: A secured loan has no risk in it. The chances of default if there can be settled with the help of the collateral pledged. If you need an easy approval, you must secure your loan. The lower the risk of borrowing, the better the approval. For a secured loan, the eligibility criteria take a back seat. No matter how low your score is, with collateral things will work in your favour.

Read More: Personal Loan vs. Credit Card Loan-Which is More Feasible?

Finishing up

Keep your personal loan documents at the time of borrowing an instant personal loan from Clix Capital. When you keep your eligibility criteria high, there is no need for any security in a personal loan.

Your Guide to Personal Loan EMI Calculator

 

An EMI calculator is a one-stop accurate tool for all the calculations during borrowing. A personal loan is quite a handy option that can meet any sort of need. It is a versatile product for multiple reasons and emergencies. However, for the right borrowing, a personal loan calculator is very essential. It makes even complicated calculations easy and quick. You get to compare the various rates and choose the best loan product on the market. It is important to make a loan calculator part of your borrowing journey for better borrowing assistance. Before you start using it, here is some important information about using a loan calculator.

What is a personal loan calculator?

A personal loan interest calculator is not a simple calculator that can be used for daily activities and simple calculations. It is a very specific tool that can be used only for loan related calculations. When you use a personal loan calculator, even the complex computations are done within seconds. You can easily compare the rate of interest offered by various financial institutions, calculate simple interest and even the monthly installment EMI. A personal loan calculator is available on the online websites of various non-banking financial institutions.

Benefits of loan calculator

●        Accurate: A personal loan calculator helps you with 100% accurate computation. Even the complex computations are done with 100% accuracy. There is no room for any human errors and you can easily find the best results.

●        Quick: Instant results are offered when you use a personal loan calculator. A calculator makes it easy to quickly calculate and compare the various rates and products that are available on the market.

●        Simple: A loan calculator has a very simple interface and users can easily use it without any technical knowledge. It is very simple to use and very specific.

●        Know your EMI: A personal loan calculator will help you calculate your EMI. When you input the principal amount, tenure and rate of interest, you will get the EMI. If you feel the EMI amount is too high, you can change the tenure or the principal loan amount till you find the right EMI amount that you can afford.

●        Compare: A loan calculator will help you calculate and compare the various personal loan products available on the market. It will be easy to compare and choose the right loan EMI and the best rate of interest that makes a loan affordable.

Read More: What Happens If I Default on a Personal Loan?

Finishing up

Use a personal loan interest calculator to compare the best available options for personal loan interest rates in the market. Clix Capital offers the best personal loan interest rate.

Learn How Balance Transfer in Personal Loan Can Help You Reduce EMIs

 

A personal loan is a perfect solution to meet immediate needs and emergencies. It is a versatile product that offers you a lending hand to meet all your needs. You can meet any need with the help of a personal loan as it is completely flexible and unsecured. However, a personal loan with a steep rate of interest can prove to be a burden. When you settle for a wrong tenure or high personal loan interest rates, you will regret the borrowing experience. If you are willing to decrease the loan burden, you can go for a balance transfer. A balance transfer is the best way to meet your needs and emergencies. Before you transfer your personal loan balance, you need to gain enough knowledge about it.

What is a personal loan balance transfer?

A personal loan balance transfer is a process in which your existing loan is transferred from your current bank to another bank. An existing loan can be transferred directly from one bank to another when you watch out for new features and specifications. This will be fruitful only when the bank you are switching to offers you better loan terms and conditions. The rate of interest should be lower than what is being offered to you now. You can calculate it with a personal loan interest calculator. A balance transfer is done for a purpose. Again, to get a low rate of interest, you need good credit eligibility and history. If you maintain a good credit score, there will be various banks and non-banking financial institutions offering you a low rate of interest. With a transfer in balance, your EMI will increase and you will enjoy an affordable loan.

Read also: 12 Reasons Why You Should Apply For a Personal Loan

What are the benefits of a balance transfer?

●        A balance transfer will help you with a low rate of interest. One should transfer the loan from one bank to another when you get a low rate of interest. This will help you with a low and affordable EMI.

●        A balance transfer will get you extra funds if you need them. By transferring your existing loan to a new one, you can borrow an extra amount of money if you need it. This will help you with an extra sum of funds.

●        A balance transfer will help you with favorable terms and conditions. It will give you an amazing borrowing experience.

Finishing up

Use a personal loan interest calculator to get an affordable personal loan. A low personal loan interest rate will help you with reduced EMI. Balance your transfer to a new loan, so that you get better terms.