Personal Finance   Sponsored Post
Five Ways You Can Bag Personal Loan Despite Low CIBIL Score
As a personal loan is an unsecured loan, its interest rate, terms, and other features that you can enjoy are heavily dependent on your credit score. A good credit score, one that’s 750 and above, can help you bag the loan amount you need at an affordable interest rate from a reputed lender. However, in some instances your credit score may not be up to mark or you may not have a CIBIL score at all. Despite this scenario, you can still avail a personal loan for low CIBIL score. Here is how you can ensure you get approval.
 
1. Look for Credit Errors and Rectify Them
 
Having a serviced loan listed as open or an incorrect credit limit can do a lot of damage to your credit score. Similarly, if a wrong PAN number is mentioned, someone else’s credit history will feature on your credit report! Keep a look out for such errors and raise a request to get mistakes resolved. This way you can improve your credit rating and get a CIBIL score to avail instant personal loan.
 
2. Increase Your Income
 
If possible, find a way to increase your income to show lenders that you are more than capable of handling loan repayments. Ask your employer for a possible raise if you have been working with the company for a while or consider going after opportunities that promise you a higher salary. You can also consider taking a part-time job to boost your total income and assure the lender that your debt-to-income ratio is within the accepted limit. 
 
 
3. Apply Jointly
 
When you take a loan jointly, with a co-applicant, you can showcase a greater repayment capacity and give financial institutions the assurance it seeks. More importantly, if your co-applicant has a good credit score, it can help make up for your lack of score and culminate in loan approval. Ideally, avail a joint personal loan with a family member or your spouse to manage the loan in an easier way.
 
4. Look Beyond Your Bank’s Offerings
 
While you may consider your bank to offer you the best loan at affordable interest rates, take a look at other lenders such as NBFCs. Typically, they are more flexible and may consider giving you a loan despite a lower CIBIL score. In fact, you can access many benefits by choosing an NBFC. For instance, Bajaj Finserv Personal Loan offers online applications, online account management, approval within 5 minutes, disbursal within 24 hours, and a flexi loan facility. This allows you to borrow as you need to from the sanction and pay interest only on the used amount. Further, you can opt for interest-only EMIs and repay the principal at the end of tenor. 
 
5. View Your Pre-Approved Offer 
 
While you can use a personal loan eligibility calculator to check your eligibility without damaging your credit score, consider viewing a pre-approved offer before you apply for a personal loan. Reputed lenders offer customised loan offerings that are created to suit your unique requirements and your financial abilities.
 
Keep these interesting facts about CIBIL score in mind if you are seeking a personal loan for low CIBIL score or no credit score. Remember to plan your repayment in advance to ensure that this loan doesn’t impact your score negatively.
 
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    Personal Finance   Sponsored Post
    What Are the Different Types of Business Loans in India You Can Go for?
    There are more than 42.50 million businesses in India, contributing to 95% of the total industrial output of this country. It employs 106 million people and produces more than 6,000 types of products. The sector has maintained an average growth rate of over 10% every year.
     
    Such massive growth is largely due to the availability of funds in the form of business loans. Several financial institutions in India offer such advances with various customer-centric features and benefits. These advances can help to overcome the challenges small business owners face, finance their purchases and integrate the necessary equipment to improve their production line. 
     
    Lenders offer business loan catering to the unique requirements of companies. These products differ in the loan amounts disbursed, tenors, interest rates, repayment schedules and various other aspects. 
     
    Primarily, a business loan is available in 4 major variants: 
     
    Working capital loans 
     
    Working capital is essential to fund a business’ everyday expenses. A business loan for working capital helps a company to pay for raw materials, overhead costs like electricity, rent, water, and other utilities, make payments to suppliers and maintain a healthy financial base. 
     
    Working capital loans are essential for businesses that do not enjoy stable revenue throughout the year. SMEs require working capital loans to sustain their everyday operations. Manufacturing businesses should, however, follow certain tips to manage working capital efficiently to keep their production going. 
     
    • Machinery loans
     
    Businesses require a substantial amount of funds to purchase or upgrade their plant’s equipment. Most of these tools are imported from foreign countries which increase their price significantly. Now, small and medium scale enterprises often face financial shortage to pay for such new equipment or to train their employees in utilising these tools to boost their production capacity.
     
    In such cases, most of them avail machinery or equipment loans to procure and integrate the latest tools effectively. Financial institutions offer high loan amounts of up to Rs. 30 Lakh to aid companies in covering this financial necessity.
     
    NBFCs provide with unsecured loans to purchase equipment. A borrower need not pledge any collateral, which allows him to repay the advance without any risk of asset confiscation on default.
     
    • SME and MSME loans
     
    SMEs and MSMEs form the backbones of the Indian service sector. They contribute to almost 6.11% of the total manufacturing GDP and 24.63% of service sector GDP. However, despite their input in the manufacturing sector, SMEs and MSMEs suffer from a consistent lack of financing. 
     
    To tackle this financial difficulty, MSMEs and SMEs avail additional funds to meet their monetary requirements. Lending companies provide different types of business loans with benefits like affordable rates of interest, Flexi Loan facility, and instant approval within 24 hours. A borrower can also access his loan account online to view important details such as loan statement, repayment date, due amount, etc. Moreover, lenders offer flexible tenors ranging from 12 to 60 months to make repayments easier. 
     
    Additionally brings pre-approved offers to make the loan availing procedure simpler and reduce the time consumed considerably. Customers can opt for pre-approved offers on business loans, you only have to share some essential details to check your pre-approved offer.
     
    Furthermore, the eligibility criteria to qualify for such a loan are simple and easy to meet. Lenders also ask for only the basic documents when a borrower applies for credit. Here are the eligibility terms and documents necessary to apply for credit. 
     
    Eligibility criteria and documents needed
     
    Financial institutions set simple eligibility criteria and minimum documentation to apply for a business loan. While requirements may vary between lenders, some of the common ones include:
     
    • Age of the applicant – An applicant should be 25 to 55 years of age. 
    • Business tenor – Business vintage of minimum 3 years is mandatory. 
    • Tax filing – Applicants have to present income tax returns for at least the past year. 
     
    Business loans in India come with a variety of tailor-made features to meet the unique financial requirements of different business owners. These can offer an enterprise the much-needed support for profitability and growth. 
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    psbloansin59minutes.com Seeks login ID, Passwords of Income tax, GST, Bank Account!
    UPDATED on 10 November 2018 at 1550 to include response from CapitaWorld and SIDBI-led consortium
     
    The Diwali gift from prime minister Narendra Modi to the micro, small and medium enterprises (MSME) sector, may well turn out to be a privacy and security nightmare for small businesses seeking 'easy loan'. 
     
    The prime minister had announced that there would be a dedicated digital platform to enable MSMEs secure in-principle approval for loan proposals of up to Rs1 crore in just 59 minutes. To enable quick and algorithmic processing of loan, Small Industries Development Bank of India, with help from CapitaWorld, set up psbloansin59minutes.com. Any MSME entrepreneur, who is seeking a loan, needs to fill up forms and provide details on this website.
     
    Shockingly, while filing the application form, the portal asks MSME loan seekers to provide login ID and password for income-tax (I-T) website and bank account and username and password for goods and services tax (GST). 
     
     
    It asks the applicant to provide details of GST, I-T, net banking, directors, partners or proprietor and other details needed for the required loan.
     
    Under the GST details, it asks the borrower to provide GST Identification Number (GSTIN), GST User Name and GST Password. For I-T details, the applicant has to provide I-T returns of the past three years in XML format or provide permanent account number (PAN), date of birth or incorporation (of the firm), and "password of income tax account on www.incometaxindiaefiling.gov.in".
     
    As if this is not sufficient, the applicant is asked to provide bank statements of past six months in PDF format or provide "login ID and password" of bank account. 
     
    Shocking, isn't it? The moment you part with your user IDs and passwords for I-T, bank account and GST, anyone can easily misuse these details. Without providing details of GST, ITRs and bank statements or the alternative of sharing login ID and password, you cannot proceed further.  
     
    Why does any website need sensitive and private information like login IDs and passwords of I-T efiling portal and bank account under the pretext of providing in-principle loan approval? 
     
    Talking about data safety and security, psbloansin59minutes.com admits, "The portal collects sensitive data for real time loan evaluation process. Your data is safe with our cloud servers."  
     
    In addition, there no information available about ownership of the website, psbloansin59minutes.com, which is created to collect information from MSME loan seekers. All the information about ownership of this portal is hidden behind a proxy, reveals Who.is data.
     
     
    For registration, as they would like to call this process of collecting all information, there is no fee charged. However, if the borrower wants to receive an ‘in-principle approval’ he needs to pay Rs1,000, plus applicable taxes. 
     
    In addition, the portal clarifies that ‘in-principle approval’ from the website does not mean the loan is sanctioned. “After offering in-principle approval, the preferred lender (as selected by borrower) will conduct a thorough due diligence and decide on whether to sanction/disburse the proposal. The final decision will be at the lender’s discretion,” it says.
     
    UPDATE:
    Responding to this article, Blue Lotus Communications Pvt Ltd, a PR agency of  CapitaWorld and SIDBI led consortium of PSBs, said, "The portal www.psbloansin59minutes.com is owned by CapitaWorld, which is owned and controlled by consortium of public sectors banks and financial institutes, including State Bank of India, Bank of Baroda, Punjab National Bank, Indian Bank and Vijaya Bank. SIDBI group, along with a consortium of banks, now holds 54% stake in fintech startup, which can be extended to 76% after achieving pre-defined milestones. Currently, four out of the seven directors of CapitaWorld are from public sector institutions. There has not been any stake sale and all the money invested by Banks is being used for the development of platform."

    Talking about fee charged from borrowers, the statement says, the portal charges a success fee from banks in respect of all disbursed cases out of cases sanctioned in principle. It says, "This success fee is payable by banks and entitles the Banks to receive following additional services like credit appraisal memorandum, CMA preparation, MCA/other database access resulting in shorter credit delivery cycle. It may be mentioned that the platform may take a few years to break even."

    As per mail from the PR agency, the platform does not store any credentials of its users with respect to third party databases. "The platform accepts data by way of uploading of reports /OTP based authentications by users. The platform is ISO 27001 certified and uses well documented standards of data security/privacy policy," the statement says. 

     
    Peri Maheshwar, publisher and founder of Careers 360, has posted these very pertinent facts and questions on social media about this site.
     
    “Those who applied for the ‘59 Minute SME Loan’ would have got an ‘in principle’ sanction vide a mail. Much of it is auto generated with an algorithm doing the calculation and responding to the applicant and tagging a bank. Now to the real thing:
     
    1. The mail comes from a mail ID [email protected]
    2. Capitaworld Platform is a company incorporated on 30 March 2015.
    3. The company is registered in Ahmedabad, Gujarat.
    4. As of 31 March 2017, the company did not start operations and had a revenue of Rs15,000.
    5. The signatories of the company are Jinand Shah and Vikas Shah.
    6. Another director on the board is Vinod Modha, A strategic advisor for corporates including Nirma and Mudra (Owned by Anil Ambani).
    7. All loanees have to pay Rs1180 on application and 0.35% of the loan as processing fees.
    8. CapitaWorld makes it’s money from the banks who in turn load it on the customer.
    9. This Ahmedabad based private company will hold our data with serious connotations - net worth etc.
    10. After March 2018, the company inducted 4 new directors. One of them, Akhil Handa ran Modi’s 2014 campaign.
     
    Enough said, now the questions:
    1. How can CapitaWorld sanction a loan and tag the bank? What is their locus standi? What authority? Quite simply, the sanction doesn’t mean a scrap of tissue paper. In our language, it is a lead generation platform?
    2. How were they chosen? Criteria? Qualifications?
    3. They were neither operational nor had experience. How were they short-listed?
    4. Shahs, Ahmedabad, Gujarat. Too many coincidences?
    5. Modha, Mudra, Anil Ambani...Hmm…
    6. How was such a massive project trusted to a company with no experience?
    7. What were the terms of the contract?
    8. Any projections on how much CapitaWorld makes?
    9. Is it true the Rs1,160, we paid goes to CapitaWorld and also a part of the 0.35%? Imagine a million SMEs applying?
    10. Anything on data privacy and non-disclosure agreements?
     
    The loan is a long way off. The smoking gun has already arrived! I hope some serious journalists will dig into the ownership, contract, directors and clear the air!”
     
    They made SIDBI, State Bank of India (SBI) and other banks to invest Rs22.5 crore at a share premium of Rs119 per share in June 2018.

    For a company without any operations, revenue, track record, and even the proven product, these PSU banks invested a premoney valuation of Rs19 crore. They must have used this money to develop complete product.

    It is a full circle.

    Now, they will tell that all these banks are shareholders in that company with ownership of more than 50% and hence, it is like semi PSU.
     
    The most depressing aspect of the scheme, of course, is that public money from the public sector banks are being used again by politicians to dole out money under the garb of helping MSMEs. The loans under 59 minutes scheme are fully guaranteed by the Credit Guarantee Trust which means banks have no responsibility to recover the money! 
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    COMMENTS

    Hemant Chitale

    9 months ago

    This is a scam ! How do they use the information collected ? How long do they retain it ? Do they sell the information to other enterprises ?

    Liju Philip

    9 months ago

    A govt of the thieves, by the thieves, for the thieves.

    R Balakrishnan

    9 months ago

    The party and their friends line their pockets. And BJP is brazen about it. The untouchable party and leaders. 2019. Let us see

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