How to get the assurance of approval on your bank loan application

The reasons for taking a bank loan can greatly vary from person to person. While some take it to buy a car, others may apply for a loan to build a dream home or even renovate an existing one. Whatever the reason may be, applying for a loan is a tedious process as banks maintain very strict application standards. The high standards that banks set for borrowers can often make those who apply wonder whether their loan will be approved or not.

However, individuals can ensure their loan gets the assurance of approval. Here’s how-

1. Check your credit score

Whether you take an online loan or an offline one, the bank you apply to will check your credit score to determine whether your loan will be approved or not. The credit score is calculated on the basis of previous loan repayments (if any). Those who have a high credit score are generally given preference by banks than those with lower ones as it shows their ability to repay the loan in time. Hence, you should try to increase your credit score to ensure that your loan is approved.

2. Reduce your debt

If you want to improve the chances of your bank loan getting approved, it will be a wise idea to reduce existing debt. Large amounts of existing debt hold the potential to hurt your chances of qualifying for as well as getting an approval on your loan as it’s taken into account when analyzing your debt-to-income ratio. Hence, if you cannot clear out any existing loan entirely, consider reducing it to be on the safe side.

3. Apply for an amount you can manage

One common thing most people overlook, or rather overestimate when applying for an online loan is the amount. For example, if you require 10 lakhs to renovate your home but ask for a loan of 20 lakhs, the bank will question you about your intentions for the rest of the loan amount. In such a case, the bank may decide to reject your application, deeming it to be a risk in comparison to those who apply for an amount that is not above what they need. Hence, before applying for a loan, fix the right amount.

4. Get all the documents ready

Gathering as well as furnishing all the right documents as and when the bank asks can go a long way in getting your loan approved. Key documents that can help in getting your loan approved include tax returns, pay slips, bank account statements, KYC documents and whatever else your bank requires.
In the end, as long as one prepares well, their loan will get the stamp of approval without much problem. In case of any questions, be sure to consult an expert.

Getting an online personal loan is now made easy

A personal loan is the best way for one to purchase an expensive item that one always wanted but couldn’t afford to, such as a bike, an expensive gadget or even a piece of jewelry. Earlier on, getting a personal loan used to be quite a hassle as one had to make several visits to the bank. On top of that, the filling of several complex forms was a mandate and then there was the waiting time for approval.

However, now getting a personal loan is very easy as one can just apply online and get instant approval. Here’s how-

1. Check your eligibility criteria

The eligibility criteria for an online personal loan is fairly simple. Qualified individuals include salaried professionals such as CAs, salaried doctors, engineers, any employee of a private limited company or a public sector employee. Applicants should also be aged between 21 and 60 years and should have had a job for at least last 2 years with a minimum of the last 1 year with the current organization. A minimum net income of Rs 15, 000 per month is generally considered acceptable.

2. Register yourself

The first thing you have to do is get on the website of the bank you wish to take a loan from. In the menu section of the website, you’ll see an option for personal loan. Click on the apply button (or whatever the option is on the website). You will be taken to an online form which you will have to fill in correctly.
Details you may be asked to furnish include your basic KYC (know your customer) information such as your name, address, date of birth etc. along with your annual/monthly income.

3. Get your documentation in order

Fortunately, to get an online personal loan, you do not have to furnish a long list of documents. Simply uploading the scanned copies of basic documents is enough. That said, the documents you have to furnish include
• ID proof, which could be a copy of either your Aadhaar, passport, voter ID card or driving license
• Your address proof, which can be a copy of any one of your ID proofs
• Your bank statement of the last 3 months
• And your latest salary slip or salary certificate

4. Choose your offer and apply

Banks may offer several personal loan schemes with varying rates of interest. Generally, the details of these schemes will be available on the website and you must go through them before making your choice. Also, search the website for the details of the fees of the loan. Once you’re done making your choice, and have already carried out the above steps, apply for your loan.

Most banks process the loan instantly or in 4 to 5 hours. That’s how easy it is to get an online personal loan.

The convenience of personal loan calculator and how you can benefit from it

Personal loan is one of the most common forms of financial loan that an individual takes. These loans may be taken for a host of different reasons, such as the marriage or education of children, family vacation and more. However, each bank offers the same loans at varying rates of interest. The tenure for the repayment of such a loan may also differ from one bank to the next. These variable factors make it very difficult for a personal loan applicant to figure out the EMIs that they are likely to pay.

This is where the personal loan calculator comes in handy. Through these specialized tools, one can check exactly how much they would have to pay each month if they take a loan from a certain bank.

How to use personal loan calculators?

These days, each bank’s website provides such a calculator for the loan applicant’s convenience. Once you get to the calculator page, you only need to enter certain figures to calculate the total interest that you would have to pay on the loan and also the monthly payments or EMIs that would have to be made.

The first thing that you need to enter into the calculator is the principal amount or the loan amount that you would like to avail. Secondly, you would also have to enter the interest rate for the personal loan. In India, the rate of interest in case of a personal loan may range from 10% per annum to 20% per annum.

Lastly, enter the tenure or duration of the loan repayment. After this has been filled in, press the calculate button to determine exactly how much interest and EMI you would have to pay for the loa

Credit card apply – Enjoy a stress free application process with these steps

Credit cards are quite common these days and it is a service that is offered by most banks. Credit cards are essentially used to take out personal loans of a limited amount and then repay them back to the bank. For instance, one may buy a television set using their credit card. After a specified time, they have to repay the price of the TV along with the interest to the bank.

While credit cards are no doubt quite useful, applying for one may be quite confusing for some individuals. So, here is a look at some of the steps to help with credit card application.

Steps to follow to apply for credit cards

Before apply for a credit card, you must first choose the type of credit card that you are looking for. Each bank offers a wide variety of cards, each with its positives and negatives. Determine the kind of card which suits your need. The eligibility criteria for each card may be different along with the benefits offered by each. Similarly, the interest charged on the cards also tends to be different.

Next, you must fill out the form for the credit card application. Previously, you had to visit the bank in order to complete this step. However, now due to the internet, online credit card application is also a viable method of carrying out the same. Along with the application form, you must also provide your photograph.

You must provide a proof of income alongside your bank statement for the preceding six months from the time of the card application. This will help the bank judge whether you qualify for a credit card or not.

After the documents are submitted, the bank will perform a verification to check that all the data that you have provided is correct. Previously, an employee from the bank would drop by and personally perform the verification. However, now in case of online credit card application, the bank will merely call you and your reference contacts to perform the verification.

If you manage to clear the verification procedure, the bank will courier the credit card to you in a matter of 3 to 4 weeks from the date of the application. The courier will also include information regarding the deals you can avail using the card and also the credit limit. You cannot use the card to purchase items if you reach a certain credit limit in a month.

Following these steps will ensure that one easily gets hold of a credit card, which comes quite handy to make major purchases or in case of emergencies.

Wholesale Banking: All that you need to know

Banking is a diverse section of any financial system of the world. While most individuals are concerned with personal banking features only, many aspects mainly concern larger organizations. Unlike retail banking that mainly deals with smaller businesses and individuals, wholesale banking is primarily needed by larger organizations and by other banks.

What is wholesale banking?

Any financial transactions that occur between merchant banks and other financial institutions is known as wholesale banking. This kind of banking is mainly limited to very large organizations and equities. This form of corporate banking comes with added perks, which are not offered in case of retail banking. These perks include currency conversion, transactions in case of large-scale trade, financing for working capital and many others.

Aspects of wholesale banking

Wholesale banking is concerned with the lending and borrowing of money between two major, large-scale entities or organizations. These organizations may be government-controlled bodies, funds allocated for pension and other institutions with enough assets to be considered a large-scale business.

A transaction may also be referred to as wholesale banking if the lender and the borrower are two banks. This kind of transaction usually takes place in the interbank market and involves the exchange of very high sums of money.

Most ordinary banks also offer the wholesale banking services. These organizations act as merchant banks in case of such a transaction. This means that you can conduct corporate banking with the same bank under which you may have your personal account.

Why wholesale banking is beneficial?
Since in such corporate banking, the transaction revolves around much larger sums of money than in retail banking, there are a few benefits to wholesale banking. Due to the higher amount of transaction, most banks offer discounts in the form of lower interest rates and reduced transaction fees on a per rupee basis.

Aside from the added advantages, wholesale banking is vital for proper functioning of a larger business. For instance, a company operates 20 different branches across India and each of the branch needs to keep a reserve amount of Rs.10 Lacs. This means that in total the branches would need to maintain reserves of Rs.2 Crore. Maintaining and managing such cash using retail banking would be too difficult. So, to streamline the procedure, wholesale banking becomes essential.

Through such corporate options, the company has to maintain only one account through which all of the company’s transactions can go through. So, if one has a big business and are looking for a simpler procedure to handle the financials, try out wholesale banking.

What changes occur when you convert your salary account into savings account?

When an individual joins a company or organization, a salary account is generated for them. The salary account is opened at the bank that the company is associated with, for the purpose of transferring employee salary every month. Thus, while a salary account is a type of a savings account where one receives their salary, a savings account is generally opened by an individual on their own, at the bank of their choice and at any time they want. A person can deposit money in their savings account whenever they want, unlike a salary account where the salary is deposited by the employer each month.

There are quite a few advantages of a salary account. They include-

1. This type of an account can be marinated at zero balance. A minimum account balance is not necessary.

2. A salary account offers its holder, draft as well as pay order facility for free.

3. Debits cards for this type of an account are also offered for free, that is, no issuance fees or annual fees are taken.

In case an individual plans to switch a job, or leave his current job the salary account then requires to be closed. This is primarily because the agreement between the bank and the company ceases to exist. But a number of banks offer individuals the choice of converting their salary account to a savings account.
In case you choose to convert your salary account into a savings account, you should bear in mind that you will not enjoy the previous benefits that your salary account offered, a minimum balance will now have to be maintained, drafts and pay orders will be charged and you may have to pay an annual fee for your debit card.

Thus, before changing a salary account into a savings account, consider the following-

1. Will the savings account be useful?
If you already have another savings account, converting your salary account into a savings account will not be of much help. But, if this is not the case then you can convert it. A savings account will encourage you to save money from time to time. 

2. New job, new salary account- is it necessary?
Find out if the new company is associated with the same bank as your previous company, if this is the case, you can make arrangements to use the same salary account without converting it into a savings account.

3. location of the bank branch
Make sure that the bank branch is located near you for convenience.

A salary account should be converted into a savings account only if the account will be of use later on, otherwise one can easily close it.

Do you know how to protect your credit card while accessing net bank?

Credit cards have become very important in the present times. It is plastic money which comes with its own perks. Now, one can carry a credit card in India to make payments at shops, malls, grocery stores and restaurants. Credit cards are being widely used for the purpose of making online payments. One can use his credit card to pay bills online, recharge mobile phones and even shop anything from clothes to electronics online. Net banking has made life easier for all. Transactions can be easily done online without physically visiting the bank and queuing up for depositing or withdrawing cash and transferring money from one account to another.

Though credit cards have made life easier for all of us there are certain things one must be careful about including cyber crimes and credit card hacking. There are several simple precautions and ways through which one can assure that his credit card is safe while making online transactions. These include the following:

1. Individuals who access their bank accounts through net banking must assure that they have the latest updated version of anti-virus software on their devices. This will prevent any hacking.

2. Sometimes one may have to access his account through a shared computer. In such a case there are chances that the password and pin of your credit card may be hacked. In order to avoid this cyber experts do recommend usage of a virtual keyboard to fill-in the pin details to avoid any instance of hacking.

3. Instant updates via SMS and e-mails are provided by banks when the customer’s credit card is used for a transaction. To avail this facility to protect your credit card the customer must keep his contact details up to date and notify the bank in case there is a change in the mobile number or e-mail ID. In case an individual’s card has been fraudulently used he will immediately know if his details are up to date.

4. OTPs or one time passwords are generated to make online transactions safe and easy. If one has a credit card in India and wishes to make an online transaction, he is provided with an OTP through which the transaction is completed, after he provides his credit card number and transaction details. This is an effective way of protecting the credit card pin because the OTP is for single time use and is known only to the customer.

5. One must never provide his confidential credit card details such as the maximum limit, pin and security question answer to any individual or a website which may ask for such details in the pretext of providing lucky draw gifts or jackpot prizes or unbelievably attractive offers.

Thus, by following the tips mentioned above one can assure that his credit card continues to be safe while accessing their bank account online and making transactions.