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Applying for A Loan? Here’s Everything You Need to Know

By Bhavesh Mehta - Jan 4,2020
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Applying for a Loan? Here’s Everything You Need to Know

Loans come in all sorts of different types and forms, which is why there is a variety of factors you should consider before you apply for a loan. Determining the need of the capital, comparing loan options and finding out the loan eligibility criteria for each option helps in deciding the best suitable loan in the market for you. And while loans generally tend to be a lengthy process, in today’s world you can also conveniently apply for a loan online on Finserv MARKETS. When weighing your options, you must also pay particular attention to ease and accessibility. For instance, if you download the Finserv MARKETS App, you can utilise the UPI platform which facilitates quick transactions and values your privacy, security and confidentiality. With the availability of benefits like m-Pin based authorisation and the ability to raise transactional queries directly with your bank, you have both ease and convenience right by your side, on the go. You can, thus, make your part-payments and loan EMIs swiftly and track your loan account at all times. If you’re applying for the Hybrid Flexi Loan using the Finserv MARKETS App, you can get flexible payment options, principal holiday tenure and an unlimited number of withdrawals.

But before you finally apply for a loan, here are some important things to consider:

I. Types of Loans:

Before you decide to borrow money, it is important to understand the different types of loan options that are available:

Secured vs. Unsecured

  • Secured loans: In this type of loan, personal property is offered as collateral and may be granted to individuals with poor or no credit history.
  • Unsecured loans: These types of loans do not need any collateral and majorly depend on the credit score of an individual.

Variety of loan types:

  • Term loans: As the name suggests, these are simple loans with strict timelines to pay the money back to the lender within a certain ‘term’ predetermined between the lender and borrower.
  • Short-term loans: With loan repayment periods between 3 months to 12 months, these kind of loans are taken for periods of less than one year and paid back in one lump sum amount.
  • Equipment financing: These kinds of loans are collateral or secured loans, granted for purchasing equipment wherein the purchased equipment is the collateral.
  • Line of credit: Specific loan amounts are granted per year on an as-needed basis. These loans usually need to be repaid quickly.

II. Category of loans:

These are the general category of loans that are generally offered by lenders directly. They are availed for a very specific purpose, and can have one or a combination of factors mentioned above.

a) Personal loan: This type of loan is unsecured, usually taken for a shorter loan tenure than others and is availed to meet any immediate financial needs. If you have a financial need such as a wedding or a vacation to plan, it is best to conveniently apply for a loan online on Finserv MARKETS where your can get an instant personal loan approval as quick as in 3 minutes.

b) Business loan: This type of loan is majorly focused towards an individual’s need of working capital for their business. You can help grow your business, or buy new machinery with the help of the right business loan plan.

c) Student loan: This type of loan is granted solely for educational purposes. It is specific to the university, course module and structure of the programme that the student loan is being availed for, and comes along with repayment guidelines to be followed by the student or guarantor.

d) Mortgage loan: This type of loan is also known as loan against property and requires property to be mortgaged against the required loan amount or capital. The loan to value ratio determines the amount of loan against property that can be availed by an individual. This category of loans is very popular in India and is specific to new home buyers and loan against property customers.

e) Auto loan: Be it bike or car, this type of loan is a financing option available for an individual to finance the bike or car for specific loan amount. For instance, on Finserv MARKETS, you can easily avail two wheeler loans with minimal documentation to buy a scooter or motorbike of your choice.

III. Interest Rates

This is a very important factor to consider for an individual, firm or entity before they apply for a loan as the total loan amount depends heavily on the EMI to be repaid within the stipulated loan tenure.

It would not be wrong to say that one should do thorough research of loan interest rates from different sources and lenders before finalising the best offer. Apart from loan interest rates, there is also convenience fees to consider. There can also be important terms & conditions that may include hidden charges, which need to be ascertained and finalized upfront.

This is why it is important to avail a loan from a trusted, transparent platform like Finserv MARKETS, where you can apply for a loan online without incurring any hidden charges. Not only do you get to get to enjoy fast online loan processing and the option of custom-made loan plans, but you can also rely on a platform that is trusted by 100 million+ satisfied customers across India.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

 

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522