Two Wheeler: 6 reasons why you need one today

More and more individuals are opting for a two wheeler over a four wheeler car. There are various reasons as to why this is choice of transport has become a popular choice for many travellers. Furthermore, the availability of the two wheeler loan makes it easier for individuals to purchase a two wheeler, without any financial burden.

Here are a few reasons why should you opt for this choice of a vehicle today:

1. Easy and convenient: This is one of the major reasons why plenty of individuals are opting for this choice of transport. In cities where travelling is an issue, especially during peak work hours, travelling by car is not only inconvenient but is also an economic waste. Two wheelers, however, offer the means to travel conveniently while making it a user-friendly option.

2. Affordability: Purchasing a two wheeler is less expensive as compared to purchasing a car, especially with a two wheeler loan. Moreover, fuel prices are constantly changing, making any choice of transport with low mileage, a wasteful option. As compared to a car, a two-wheeler will require less fuel and provide the higher mileage, making it an ideal choice economically friendly transport.

3. Wide choice: With an increase in the demand for bikes, plenty of manufacturers have now launched several new models and types. You now have a choice of two-wheelers ranging from simple transport to sports choices, to terrain friendly choices. Each of these choices has excellent features for several buyers, wherein which, with a 2 wheeler loan it will make purchasing a bike much more convenient.

4. Inexpensive: Several individuals are under the impression that purchasing a bike with a loan will account for a financial burden, especially with a high-interest rate. Furthermore, EMI’s may be seen as a drain on one’s monthly income. On the contrary, a 2 wheeler loan is quite competitive and ensures that borrowers enjoy a burden and complication free, financial solution.

5. Quick approval: Purchasing a bike does not require too many documents for verification. You would only need to documents pertaining to your identity, address proof and income. In fact, if you opt for a loan along with the bike, the application process is relatively simple. With no roadblocks, your application process will not take more than a few days.

6. Low down payment: When opting for a loan to finance the purchase of a bike, an applicant would need to provide a down payment. In the case of the two wheeler bike, the down payment is sufficiently low making it easier for any individual to opt for it.

While there are plenty of more reasons as to why you should opt for a two wheeler today. But no matter the reasons, in the end, you should ensure that the bike choice and loan option should be viable to you and your needs.

5 factors that determine your bank loan approval

Loans are the ideal financial solution for those who are seeking the immediate or large amount of funds. In fact, depending on your financial requirement, you can easily opt for a loan type pertinent to that particular situation.

But while it may be easy to apply for a loan, getting an approval on your application is another factor. Lenders and banking institutes who offer the different types of loans often refer to certain features before giving one’s approval for the application.

Given below are some of the loan aspects that are taken into consideration for most loan approvals:

Credit history: Most lending and banking institutes would prefer applicants who have clean financial habits. A credit score will indicate this financial health. Normally, a credit score of 800 and above is considered as the best score. The score in between 600 to 800 is considered good. Any credit score below that level will increase the chances of rejection on the loan application. If you already have a good credit score, you can not only get a good loan rate, but also a faster loan processing and fewer verification check.

Occupation: Banks are more preferential to occupations that are stable. Certain occupation profiles such as government employees, blue chip companies and doctors are more likely to have an approval on their approvals for bank loans. In addition to these profiles, chartered accountants, engineers and lawyers are more likely to get a loan approval. However, individuals who are working in private companies and self – employed companies will get the lowest rates. Banks are particular to this factor as the repayment capacity depends on the income of the person. A stable job will ensure that the income earned by the applicant will be continuous and without any delay.

Age: Age is another criterion that lending banks will look at before giving out different types of loans. In most cases, applicants between the age group of 30 to 50 years are most preferred, as they are considered more financially stable. After all, these individuals also have a decent number of working years left to repay back the borrowed funds. Any applicant with age above that will have a high chance of loan rejection.

Work experience: Most lending institutes request about your work experience, in a particular company. This is because the longer the employment years you serve, the more points you will earn with the lending institute. This shows stability in your work, especially if you are at the peak of your working years.

Relationship with the Bank: The older the relationship with the bank, the higher are the chances of getting an approval on your applications for bank loans. Most of these lending institutes value familiar customers, as they are aware of their financial past. A person who has had a relationship with the bank for more than 10 years will be preferred over the one with no relationship.

How do you use the internet banking safely?

Internet banking has now offered a convenient mean to access your financial needs right from the comfort of your home. Moreover, with the ever progressing technology, mobile banking is now making its way alongside this form of internet banking.

But the flip side of these convenient banking means is the risks that are involved. There is always a risk that a user’s data will be compromised or even an unauthorised access the user’s account is given. In fact, you may not be aware that your account or funds have been accessed by an unknown party until it is too late.

So how can you use internet banking without it affecting your investments and funds? Here are some tips you can keep in mind:

Opt for a genuine anti – virus software: In order to protect your computer, phone or laptop from any attempts of phishing, malware and other security threats, you will need to use a genuine anti – virus software. This software helps in detecting and eliminating adware, malware and spyware that can access any sensitive information or unauthorised data. 

Avoid using public Wi – Fi: One of the biggest drawbacks of an open Wi – Fi network, is that between the end user and the hotspot, a hacker can easily trace all data, without any difficulty. Unsecured connections are a perfect opportunity to introduce malware unknowingly into the device you will be using. If you must use the public internet network, avoid using it to access sensitive information.

Opt for VPN software: When accessing a public network, there is a risk that the data at your end or the source will be either compromised or exposed. On connection, you risk exposing your data or providing a gateway of exposure. But with a VPN software, the connection and data are kept secure and encrypted. In this way, your internet and mobile banking will be kept away from prying eyes.

Update your OS regularly: Be it your phone, your computer or laptop, your operating system needs to be regularly updated. These updates normally comprise of the latest security patches and updates which help protect your system against evolving viruses, malware or adware which can affect your internet banking. At the same time, avoid ‘rooting’ or replacing the original software of your systems with pirated systems as they can have glitches in them, allowing unauthorised access to your devices.

Update your passwords regularly to a strong one: While this may be a tedious job, it is important for you to keep your account safe while maintaining confidentiality. While it is a given that you don’t need to share your details with anyone, you should also be aware that you shouldn’t share your information even when you are requested for it. Regularly change your passwords to new and strong ones. For additional security, create and maintain different passwords for logins and transactions.

EMI Calculator: Calculating an effective loan cost

A loan is an ideal way to satisfy any financial requirement. Furthermore, different types of loans, such as a home loan, car loan, or even a two wheeler loan can be used for specific purposes. Alternatively, you have the personal loan and the loan against property that can be used for miscellaneous requirements.

But no matter the loan type, the fact remains that once funds have been borrowed, it must be repaid over a fixed period. At this stage, as an applicant, you should have sufficient funds to make the repayment. Do you have sufficient funds or income to repay both the loan amount and the interest rate? Furthermore, you should have sufficient funds to make the monthly payments through the EMI.

All these factors should be considered well before you even apply for the loan. But calculating these rates will be a tedious job, especially with the different loan rates and the competitor rates themselves.

This is where the EMI calculator will assist you. This calculator is used to calculate the ideal loan rates, by the given market rates. The details given below provide insight on how this tool will help calculate the EMI and how it can be used to estimate an effective loan cost:

Principal amount: The principal amount is basically the amount that you will want to borrow. Depending on the type of loan will you be applying for, the amount can have an upper limit. Take, for example, the loan amount for the loan against property cannot cap more than 85% of the loan. Furthermore, even if your financial profile allows you to access a high loan value, the loan amount you finally apply for should be easily repayable. The EMI calculator will help you calculate the ideal principal amount, thus ensuring that you can afford it before you can apply for it.

Interest rate: The interest rate applies to all the loans. However, the rate of the interest rate will differ from type to type. In certain loans, such as the personal loan, the interest rate is normally high. A high-interest rate would mean longer repayment tenures and higher EMIs. Therefore, it is crucial that you calculate the ideal interest rate. With the EMI calculator, you can calculate the ideal interest rate, based on the rate offered by the lender. In this way, you can easily get the EMI rate, along with the repayment tenure

Tenure: When you calculate the EMI you will also calculate the tenure of the period. Just like the interest rate, the tenure of repayment for certain loan types are fixed. For example, the tenure for a bike loan will be anywhere between a few months to a year, whereas for the home loan it can be up till 30 years. Since the EMI, comprising the principal amount and the interest rate is distributed through this tenure; you need to ensure that you get adequate time to repay back the funds.

Answer these questions before purchasing your car with a car loan

Purchasing a car has now become as easy as purchasing any other commodity. In fact, with the wide variety of cars available in the market, it has become easier to choose a car. An added advantage to this decision is the car loan.

Plenty of lenders are now offering car loans that are tied up with particular brands and models of cars. This not only makes it convenient for you, as a borrower, to consider the option of selecting a car but also to reduce the time and effort to shop around for one.

But while it may seem easy and convenient to opt for a car choice that comes tied up with a car loan, it is crucial that you review certain factors before you opt for one. Here are a few queries you need to answer before you opt for a car and loan for purchase:

What will you be using the car for?

A car is not about aesthetics. In fact, the different models and makes are designed to be suited to specific needs. This, in turn, influences the rates of the car loans. So if you will be using your vehicle for specific purposes such as travelling short distances within the city, then driving a compact car may be ideal. Similarly, if you will be covering long distances on long drives, you may want to opt for a car choice that is roomy and comfortable. Regardless of your daily itinerary, ensure that you go for a choice that is best in terms of fuel economy.

Who's going to be riding in the car?

If you are using the car for your own purpose, then you can always opt for a sleep sports car or a top of the line sedan. After all, it makes a great choice to go cruising down the highway or long roads. However, if you will be sharing your car with the rest of your family, then you might want to reconsider your choice of vehicle to consider their needs. In this case, a spacious SUV or van will make a better choice. Furthermore, since you will be driving your family around, you may also want to opt for a choice that comes with an advanced safety system. Since each model and make of the car influences the value of the loan, you may want to consider this choice before you apply for a car loan.

What car features would I want and need?

When you apply for a car loan, the loan value is calculated based on the basic components and specs of the car. If you need to add additional components such as a built – in navigation system or a voice activated controls feature, or even a top of the line audio system or improved environmental performances, the loan rates will increase. If you need to add these features to your vehicle, you may want to make a list and classify them on priority and usage.

All you need about the Personal Loan EMI Calculator

You may need urgent funds at some point in your life. But your friends and family may not be in a position to assist you. However, you still have an option of opting for a personal loan.

A personal loan, which is an unsecured loan will require no collateral or security unlike other types of secured loans. Furthermore, the end-use of the funds received through this loan can be used for several purposes. So if you need to finance a wedding, pay off any other loans or even sponsor a part of your holiday trip, the choice is yours.

Like other loans, the personal loan will be need to repaid back. In this case, you need to plan your finances beforehand. But how much do you need to keep? How much will you actually know how much will you be paying for the interest? This is where the personal loan EMI calculator will be useful. Given below are some of the commonly asked questions and answers pertaining to this financial tool.

What is a Personal Loan EMI?

Like any other loans, the personal loan comes with an EMI. EMI stands for equated monthly instalments. These monthly instalments are either fixed or floating, with a fixed tenure. Through this monthly instalments, you will be required to repay your loan. By using the personal loan calculator, you can easily calculate the EMI rates of the loan.

Why should you calculate the personal loan EMI before applying for the loan?

Before you take the personal loan, you need to assess whether you can afford the loan in the first place. At the same time, you need to ensure that you can afford the EMI, throughout the years required to repay the funds. Hence it is crucial that you calculate the approximate EMI using the personal loan EMI calculator. By using this tool before applying for the loan, you will know how much of a loan amount you can afford, settle for an interest rate that will suit and fix EMI rates that are affordable.

How to calculate the EMIs?

While you can calculate the amount manually, you can also use the personal loan calculator to calculate the amount for you. All that is required from you to input in the calculator includes:

• Loan amount: This is the first amount you will need to input. The loan amount is basically the value of the funds you will want to borrow.
• Interest rate: This is the rate which is calculated on the loan amount. Most lenders will already have a fixed base rate which can be increased to your preference.
• Tenure: This is the number of months you would require to repay back the loan amount and the interest rate.

As soon as you provide the required information, you can submit it for calculation. The result will be the calculated loan EMI amount.

All you need to know about the CIBIL score and Personal Loans.

When you apply for a personal loan, the lending institute will need to first consider whether you are worthy of receiving that loan. In other word, the bank would need to know and understand whether you are good with your finances. It will also consider whether you can repay the loan within the given time or whether you are prone to missing your payments.

Most lenders and banks will review your credit worthiness through your CIBIL score. This value is associated with you and your financial profile. It also indicated how responsible you are with your previous loans and credit cards. In fact, the CIBIL score is one of the primary parameters that is used to determine the approval of any loan.

Calculation of the credit score:

Your credit score is calculated on a specific set of parameters. In most cases, they include:

35% - The repayment history
30% - Amount currently owed to lenders
15% - Number of years of service debt
10% - Number and amount of recent loans taken or applied for
10% - Credit mix
Based on this, the score will be calculated within a range of 300 to 900.

How do you get a bad score based on these parameters?

There are various reasons as to why a potential borrower’s credit score can be affected. It includes the following:

• Defaulting in making on any of the repayments
• Extensively shopping for a loan but getting rejected repeatedly.
• No previous loan application
• No previous credit history for validation

When you need to avail a loan, a lender or bank will conduct a background check on the borrower. Through this check, they will ascertain if the applicant is capable of making payments and repaying their loan. Higher the credit score, higher will be your chance of availing a loan. Furthermore, you will get better loan rates in terms of a flexible tenure and better interest rates.


When it the right time to opt for a personal loan?

If you are planning to apply for a personal loan online or at your bank, you can consider these factors to increase your chances of getting the loan:

Sufficient time to improve the score: If you have sufficient time to improve your credit score, you can take the efforts and means to do so. A small loan or credit card repayment will help improve your score to the required acceptable one.

Good salary: If you earnings is good enough now, you can apply for this loan. At the same time, you will need to have enough capacity to repay your loans it will work in your favour no matter how low the CIBIL score is.

Consider your spouse’s CIBIL score: If your own score is low, you need not worry. Your spouse may have a better score than you. In this case, you can always apply for a joint personal loan online or at the bank. Banks will consider the combined credit score, thus increasing your chances of approving the loan.