5 ways to negotiate business loan offers

You have a successful business in place and you wish to expand it. However, you do not want to go over the board with your funds. Then business loans are your best ally. Banks and NBFCs offer different types of business loans based on the requirement of the company. Some of the reasons why companies opt for a business loan are:

• For establishing a new business
• For expanding the current business
• To purchase new equipment and machinery
• To maintain the cash flow
• Require working capital for the business
• To turn the loss into profits
• For repaying outstanding dues
• For running a seasonal business

However, you should apply for a business loan:

• When you have a strong business strategy in place
• When you foresee steady cash flow in the future
• When the capital flow is greater than a business loan interest rate

The major benefit of business loans is that it does not require any collateral. Also, most of the lenders sanction the loan with minimal pre-payment charges. However, the interest rates are on the higher side.

So, you need to possess strong negotiation skills if you want the desired deal. Some of the ways to get a better offer are:

1) Establish a negotiation strategy: Determine which financial aspects are important and which ones can you give up easily on. It is essential to put forth a strong point to the lenders. Once you decide upon your factors, you can create a strategy around it and implement them.

2) Know the business risk profile: Identify the weakness point of the business, so that the lender does not catch you for the same. Rectify those errors before approaching your lender. Once you recognise the risk factor of your business, you can talk to the financier accordingly.


3) Negotiate the interest rate: As mentioned above, the interest rates tend to be higher since business loans are collateral-free. While applying for the loan, choose between fixed and floating interest rates. These rates will have a massive impact on the monthly budget. Go for the lowest rate.

4) Clear out unnecessary expenses: While negotiating the business loan deal, try to save money wherever you can. Try to curb the expenditure where not required.

5) Know the prepayment charges: Every loan comes attached with additional fees, and most of them are unknown to people. There is more to this than meets the eye. Understand the terminologies associated with the business loans and pay what based on what the business needs. Ask the lender regarding the pre-payment charges.

Research various schemes on the third-party websites. Use the business loan EMI calculator, as it enables the customers to check the results of n number of schemes. Accordingly, avail of the loan that best suits the business.

Two-wheeler loans for students: everything you want to know!

The two-wheeler is the most popular mode of transport in India. It has become an essential commodity for an average Indian’s daily commute. In fact, India is the largest manufacturers of two-wheelers in the world. To constantly keep up with the desires of the young Indians, the manufacturers produce latest models. These new bikes are designed in such a way that they suit the Indian roads as well.

With the demand for bikes on the rise, especially amongst the millennials, banks and other financial institutions have started offering two-wheeler loans. While some bikes may be at your reach, some are beyond your budget. The two-wheeler loan comes with varying eligibility criteria. One of the most popular demographics are the students.

Students, of course, would not have the necessary finance to own a bike of their choice. So, lenders offer bike loan to them under specific conditions. This article talks in detail about how students can acquire the loan.

What is a bike loan?

It is the simplest way to purchase a new two-wheeler. You have to first pay a minimum down payment to the lender, followed by equated monthly instalments (EMIs). You receive plenty of financing solutions when you go for this route. The two-wheeler loan interest rate is affordable and can be managed with EMIs.

What are the highlights of bike loan for students?

• The repayment period for student two-wheeler loans are 3 years
• The income requirement is not as high as a regular bike loan
• You will have to provide a co-applicant when availing the two-wheeler loan
• The documentation procedure takes 3 days
• Two-wheeler loans for students are unsecured
• You can purchase any kind of bike under this credit

What are the eligibility criteria for acquiring student two-wheeler loans?

The conditions differ from lender to lender. The eligibility criteria for students are:

• You should be 18 years old for applying for a bike loan
• The co-borrower, whom you get along when applying for the two-wheeler loan, should earn a decent income
• The co-borrower should also hold good CIBIL score
• The applicant should have a permanent address in place

What documents are needed at the time of bike loan application?

The student proofs:

• ID proofs such as voter’s ID, passport, PAN card, driving license
• Address proofs like utility bills, passbook, LIC insurance, ration card

The salaried/self-employed co-applicant verifications: 

• Income proofs include last 6 months salary slips, past 6 months bank statement
• 2 years’ IT returns
• Last 1 year’s bank statement
• Business registration papers

If you want a better understanding of which bike loan will fit your requirements, you can use the bike loan EMI calculator. It will assist you with your monthly budget as well.

4 types of education loans available in India

If you want to build a bright and successful future for your child, quality education is a must. However, the rising cost of education in India and abroad is a growing concern for students, as well as, parents. If you wish to opt for an education loan, banks and other financial institutions offer them to only deserving and meritorious students. That way the students can fulfil their dreams without any hindrance.

At present, almost all Indian banks and NBFCs provide education loan to students who wish to pursue undergraduate, graduate, postgraduate, professional, and doctoral degrees.

What is the scenario of education loan currently?

Student loans are available at a relatively lower interest rate. Lenders advise students to borrow education loans as per their requirements. The repayment period of such loans can vary to a great extent, depending on the loan amount and the lender.

The benefit here is that you can pay the education loan interest rate after the completion of your course. The educational loan covers the following expenses:

• Tuition fees
• Purchase of books
• Accommodation
• Transportation costs
• Uniform fees

The education loan in India are classified as follows:

1) Undergraduate loans: If you have completed your secondary education, you can take up undergraduate student loans. The undergraduate courses span for 3 to 4 years generally.

2) Graduate loans: If you want to pursue advanced or higher education across the country, you can go for the graduate education loan. However, you have to complete your undergraduate course, to apply for them.

3) Career loans: You can avail such loans if you wish to attend an undergraduate course from a technical and trading school or colleges across the country.

4) Loans for parents: Banks and NBFCs offer unsecured loans for parents who wish to finance their child’s education, regarding the tuition fees, accommodation and other such expenses. Not only parents but any other adult relative can use the education loan to enrol their kids in secondary schools, military schools, religious, private or non-public schools in India.

Education loans are the most sought-after tool today, considering quality education is unaffordable. The education loan interest rate varies from lender to lender. Girl students are eligible for an additional 0.5 per cent discount on the rate offered to the boys. Select the type of loan based on the aspirations of your child.

A detailed guide on gold loan

If you have some gold handy and been scouting for a loan, then it is time to make optimal use of your jewellery. Gold has held sentimental value for Indians over 2,000 years. As a result, people prefer preserving it for special occasions. However, the perception is fast changing. More and more people are using gold to fund their short-term goals for cheaper interest rates. But as with all investments, complete knowledge is essential before entering the financial agreement.

What is a gold loan?

If you are a short-term credit seeker, then gold loans are your best buy. You get 80 per cent of the value for your gold. For this purpose, the banks and non-banking financial companies (NBFCs) check the metal purity. You can provide any gold: biscuits, ornaments and coins, as collateral. The gold loan interest rate is competitive and is usually repayable in 12-60 months. If you are over and above 18 years old, you can apply for the loan.

What are the advantages of the gold loan?

• You can get a gold loan despite holding a bad credit score since they are secured
• You have the option to pay off the interest first and the principal amount by the end of the loan tenure
• If you are from the field of agriculture, you receive further discounts on the interest rates
• The documentation process is hassle-free as you offer gold as security. You would only have to produce your ID and address proofs
• The good thing about a gold loan is that the fluctuations in gold rate do not affect the credit in any way

Points to remember before taking a gold loan:

• If there is a default in the gold loan payment, the lenders can sell your gold and recover the pending amount
• Also, if there is default payment from your end, the lender will levy additional interest charges on your loan amount

Is it better to take a gold loan from banks or NBFCs?

Before you decide whom to approach for your gold loan, check the various schemes online. Compare the interest rates using the gold loan EMI calculator. Zero down your desired loan and then apply for it. However, you have to consider the following points:

• Banks charge lower interest rates than NBFCs
• NBFCs provide your flexibility regarding repayment of loans
• NBFCs disburse the loan in as less as 5 minutes while banks take up to 4 hours
• Most of the NBFCs do not levy pre-payment penalty. However, banks do charge for the same

Hope all your queries pertaining to the loan are crystal clear. Happy gold loan hunting!

4 car loan thumb rules to remember

Purchasing a vehicle has moved from luxury to a necessity nowadays. So, car loans are offered by every bank and non-banking financial company (NBFC). However, it is important to choose a plan that fits your budget and provides you with hosts of benefits.

Make the following pointers your thumb rule before applying for a car loan:

1) Set a budget and research: You have to decide the budget for your car. Your income plays a crucial role here. Once you have your budget set, research for options. With a vehicle loan just a few clicks away, you can opt for a loan within your price segment by researching on third-party websites instead of opting for the conventional method. You should also examine the track record of your dream car and its reviews, to ensure you have made the right choice.

2) Check eligibility: One of the most important rules is the car loan eligibility. Lenders sanction your car loan based on two factors: income and credit score. Make sure the credit report is clear, sans default payments of credit card bills and existing equated monthly instalments (EMIs). You can request the CIBIL agencies to send you a report of your credit score. This is called a soft check. Your score should be anywhere between 750-900 for acquiring a car loan.

3) Compare all available options: One of the best things about online loan applications is checking in minutes which policy fits your bill. You can select a few good deals and use the online tool car loan EMI calculator to pick out the best offer that suits your requirements. Taking time to compare options, allows you to make an informed decision and provides you benefits as well.

4) Availability of documents: As with any other loan, lenders require the essential materials to approve of your car loan. Some of the critical papers you have to keep with you while applying are:

• Identity proofs such as PAN card, driving license, passport
• Address proofs like utility bills, ration card
• Income proofs include the last 3 months salary slips, employment letter, bank statement of the past 6 months
• Form 16

If you are self-employed, the documents could differ:
• Business ownership papers
• Profit & loss statement, income computation sheet and balance report of past 2 years
• 6 months’ bank statement
• Last 2 years IT returns, proof of turnover

If you do not follow these rules, you could lose out on your vehicle loan. Your aspiration of owning a car will only become a distant dream.

5 Reasons to Order Food Online

Home cooked food is the best. There is no alternative for the food prepared by our parents and family. But when the person stays away from the family for studies or job, or any other reason, food becomes a major issue.

The rise of smartphones and high-speed internet has allowed multiple food delivery apps to offer their services. The customer gets a variety of choice to choose from. Here we are listing five reasons to use food ordering apps :

1. Easy and Comfortable Interface
It is very easy to operate the app and order food online. They usually detect the location and display restaurants to choose from. The user can select food by browsing the menu. The order can be placed even at midnight subjected to the availability of eateries. The payment can be made on delivery or while placing the order. 

2. Home delivery
The user has to place an order with the desired restaurant, and the food will be delivered to his/her doorstep. The customer can track their order in real time. They can also talk to the person, who is delivering,  in case of any query.

3. Cashless payment
The customer has multiple options to pay for the food. Numerous digital wallets are providing their services. User-friendly interface enables quick and easy payment. Some of the methods of payment are :
● Digital payment apps
● Internet banking
● Debit Cards
● Credit Cards

4. Discount and offers
There are multiple discounts and cash backs offered by food delivery apps. They try to increase their sales volume by offering good deals to customers. There are several vouchers offered to regular and first-time users. Also, they offer separate deals to customers, and in most cases, you get assured cash back or promo codes which make purchasing the food cheap.
 
5. Save fuel, avoid the crowd
Most of the good restaurants are usually crowded. If a person likes to sit at home and enjoy the taste, an online food order app is boon for them. They also save the cost of fuel or travelling in a public transport.

 It's time to download an online food delivery app, choose the menu and enjoy the taste at home. In case, the user does not like the taste; they can always submit their feedback to the customer care. If there is some fault in the services, a complaint could be filed at the customer care for an immediate solution.

6 benefits of online cab booking apps

Traffic in the city is increasing every day, challenging people to travel from one location to another. Also, the situation of public transport systems in most cities is quite bad. Therefore, paving way to private taxi operators that could help ease commuting. However, you must know that most private taxi services provide their own application for bookings. And this is what’s gaining them a lot of popularity in the country.

Here we are listing 5 benefits of the taxi booking app:

1. Book from the convenience of your home
The user can book taxi online from the convenience of their home. They can choose from multiple operators and decide to use the services of their choice. The user is not required to go to the taxi stand or wait on the street and convince the driver to drop them to a particular destination. They can book the cab from whereever they are, wait for the vehicle to arrive and leave.

2. Know the estimated time of arrival
When the passenger boards the cab, they know their estimated time to reach the destination. This enables them to plan accordingly. In the case of a normal taxi, the user can only guess the estimated time of arrival as the route is not predefined. The driver can also take a longer route to make more money.

3. Easy payment options
There are so many payment options available for the online taxi booking app. The user can either prepay for the travel or pay after completing their trip. The user can also opt to pay via cash, debit or credit card, internet banking or any digital payment apps, depending on the option available with the cab service provider.

4. GPS mapping
The cabs booked online are equipped with GPS. This feature enables the user to keep track of the route. This also facilitates the customers who don’t know the exact way to reach their location.

5. Easy feedback
The user has got the option of giving feedback to the cab operators. They can rate the driver and the vehicle based on services. The passenger can also raise real-time alarms, in case of any discomfort or an emergency.

6. Discount and offers
Different cab operators come up with various offers and discount to attract customers. To promote cashless payment, they offer several cashbacks and gift vouchers. Digital payment apps also provide separate offers to promote their interface. This competition benefits the user.

So, book taxi online to make your travel easy.