If you need a business loan and need it fast, you may be considering a fast business loan. This type of loan can help you get the money you need quickly, but there are some things you should know before applying. In this blog post, we will discuss the pros and cons of fast business loans so that you can make an informed decision about whether or not this type of loan is right for your business. Let’s get started. [B-01] How Long Do Fast Business Loans Take? The time it takes to receive a fast business loan varies by lender but is generally much quicker than a traditional bank loan. Some lenders can provide funding in as little as 24 hours, while others may take a few days or longer. The key is working with a reputable lender who can quickly and efficiently get you the funds you need quickly and efficiently. Pros of Fast Business Loans 1. Easy Application Process The application process for a fast business loan is usually very simple and hassle-free. Most lenders have an online application that you can fill out in just a few minutes, and you will usually get a decision on your loan within 24 hours. This is a huge benefit if you need money quickly to cover unexpected expenses or take advantage of a sudden opportunity. With a traditional bank loan, the application process can take weeks or even months, so you could miss out on opportunities if you’re unable to get the funding you need right away. 2. Fast Funding The most common reason many business owners seek fast loans is the quick influx of cash. When you have an opportunity to seize or an unexpected expense pops up, having access to funding can mean the difference between success and failure. In many cases, you can get the money you need in as little as 24 hours. This means you can take advantage of opportunities as they arise and keep your business moving forward. 3. Lenient Requirements One of the main advantages of fast business loans is that they tend to have lenient requirements when compared to traditional bank loans. This means that if you have bad credit or a limited amount of collateral, you may still be able to qualify for this type of financing. However, it’s important to remember that even though the requirements may be lenient, the interest rates on fast business loans are often higher than those offered by banks. MSME loans for a start-up business are perfect for small businesses to take advantage of.Also Read: All About Small Business Loans In India 4. No Collateral is Necessary One of the main advantages of fast business loans is that they don’t require collateral. This can be a major advantage if you don’t have any extra assets to put up as collateral or if you simply don’t want to risk losing your personal property in case you can’t repay the loan. Additionally, fast business loans can be used for a variety of purposes, including working capital, inventory, equipment purchases, marketing campaigns, and more. You can also choose the option of a business loan to apply online. Cons of Fast Business Loans 1. Fees The fees associated with fast business loans can be quite high. Sometimes, you may end up paying an origination fee, a processing fee, and a funding fee. This can add up to quite a bit of money, so it’s important to factor this in when considering taking out one of these loans. 2. Limited Lenders One of the top cons is that there are limited lenders. This can be frustrating because you want to ensure you get the best possible deal. When it comes to fast business loans, there are only a handful of companies that offer them. This means you’ll have to do your research to find the best one for your needs. 3. Higher Interest Rates One of the main cons of a quick business loan is that they typically come with higher interest rates. If you’re not careful, this can end up costing you a lot more in the long run. However, if you can make timely payments and manage your loan responsibly, the higher interest rate may not be as big of a deal. Another con of fast business loans is that they can be difficult to qualify for. Lenders typically require you to have good credit report and a strong financial history. If you don’t meet these criteria, getting approved for a loan may be difficult. 4. Low Borrowing Amounts A major con of fast business loans is that they typically have low borrowing amounts. This can be ideal for small businesses that may not need a lot of money to get started or keep their operations running. Low borrowing amounts also mean that you’ll have an easier time qualifying for a fast loan and lower interest rates. [B-02] The Bottom Line There are both pros and cons to taking out a fast business loan. It’s important to consider all your options before making a decision and to make sure you understand the terms of any loan you take out. Fast business loans can be a helpful tool for businesses needing quick funding, but they also come with some risks. Make sure you research how to get a business loan and talk to a financial advisor before making any decision. This will help ensure that you make the best decision for your business.
When starting a business, one of the first things you’ll need to do is get financing. There are many different options out there, and it can be tough to decide which is right for you. In this blog post, we will compare business loans and personal loans. We’ll discuss the pros and cons of each option, so you can make an informed decision about which type of loan is best for your business. Let’s get started. [B-01] An Overview of Personal Loan A personal loan is an unsecured loan that does not require any collateral. This loan is typically used for major expenses such as consolidating debt, paying for medical bills, or financing a home improvement project. Personal loans usually have fixed interest rates and monthly payments. Personal Loan Advantages Minimal Documentation One of the primary advantages of a personal loan is that it requires minimal documentation compared to a business loan. A personal loan only requires your personal information, such as your ID, proof of income, and bank statements. Easy to Apply Unlike business loans, which can often be quite complicated and time-consuming, personal loans can usually be applied online in just a few minutes. Best Source of Emergency Cash A personal loan is the best source of emergency cash for small business owners. It is easy to get, and you can use it for any purpose. Therefore, if you have a small business, you can use an MSME loan only for specific purposes like buying raw materials or machinery. You have to repay the loan within a short period. No collateral needed One of the main reasons to take out a personal loan is that you don’t need to put up any collateral. If you can’t make your payments, you won’t lose any property or assets. Personal Loan Disadvantages Need high credit score to be eligible Since no collateral is involved in this transaction, interest rates are higher. Compared to company loans, the amount of loans is considerably less. An Overview of Business Loan A business loan is a loan that is specifically given to a business rather than an individual. The loan terms will vary depending on the lender, but they can be used for things such as working capital, equipment purchases, or expansion projects. Business loans often have variable interest rates and are paid back in instalments over time. Business Loan Advantages Tax Benefits The interest paid on business loans is often tax-deductible. This can lead to significant savings come tax time. Lower Interest Rates Business loans often come with lower interest rates because businesses are seen as less risky than individuals, so lenders are more willing to offer better terms. Different Options are Available A business loan is designed specifically for businesses and usually has more options, including standard and term business loans. Business Loan Disadvantages Exhaustive documentation lengthy application procedure It’s possible that you won’t get the desired sum. To be eligible for a business loan, you must have a solid business plan. Personal Loan Vs. Business Loan Both personal loan and business loan have their pros and cons. Below is a detailed comparison of both to help you decide which one is best for your small business: Ease of Application A personal loan is easier to apply for than a business loan. This is because a personal loan does not require collateral and has fewer eligibility requirements. On the other hand, a business loan can be difficult to obtain because it requires collateral and a good credit score. Interest Rates The interest rate on a business loan is usually lower than the interest rate on a personal loan. This is because businesses are considered to be low-risk borrowers. Business loans also have longer repayment terms than personal loans, so you’ll have more time to pay off the loan. Collateral Collateral is an asset that can be seized and sold by the lender if you default on your loan. This gives them some security and peace of mind if they cannot repay the loan. Businesses usually have more assets available for collateral than individuals, so this is one factor to keep in mind when considering a small business loan. Eligibility Criteria The most crucial step in deciding whether to apply for a business loan or personal loan is understanding the eligibility criteria for each. To qualify for a small business loan, you will generally need to have been in business for at least six months and have a minimum credit score of 680. For a personal loan, you’ll need to meet the lender’s income and credit requirements, which vary by lender. Tax Benefit One of the most important things you must consider when choosing between personal and business loans is the tax benefit. The personal loan interest is not tax-deductible, while the business loan interest is. You will have to pay more taxes if you choose the personal loan. Loan Tenure Tenure or repayment period is one thing you need to remember when taking out a loan. A business loan usually has a longer tenure than a personal loan, anywhere from two to seven years. On the other hand, personal loans typically have a shorter repayment period of one to five years. [B-02] The Bottom LinePersonal and Small business loans are viable options for financing your small business. The key is understanding the difference between the two and choosing the option that best suits your needs. A small business loan may be the better option if you need a large sum of money quickly. However, a personal loan may be a better choice if you have good credit and can afford to make monthly payments. Ultimately, the decision comes down to what will work best for your situation.
Golden Age for home buyers: Over the last ten years, the market for home loans has been increasingly generous to the budding home buyers of India’s rising economy, with low interest and increasing housing loan benefits. Supply in the private housing market has been high along with 1 crore new houses being built under PM Awas Yojna (to provide low cost affordable housing for the urban poor with subsidised credit). The situation has nudged housing companies to give immense home loan benefits along with interest rates that have hit record low in the last ten years, sometimes as low as 9%. Mood of India’s rising youth India’s middle class professional youth no longer wants to be limited and meek when it comes to their choice of homes. They want their residence to reflect their growing social status and confidence and the time has never been more right for them to lock into a grand investment. Unfortunately, many new home-buyers feel afraid when buying a home, primarily due to the risk of unforeseen expenditure. In this situation, home loans become the key to transform such a high-value financial strategy into a smooth and logically structured process. Once the structure of the investment becomes clear, fear automatically reduces. Problems of buying a house without home loan In simple terms, there are two ways to own an expensive house without taking a home loan: Set aside a portion of your income (and perhaps invest it in deposits, shares, securities etc.) for several years until you gather enough money to buy the house of your choice.Downside: No guarantee that at the time of buying, a house will be available, that too at an affordable price. Besides, it’s better to start enjoying the comforts of your own home now and not five years later. Take out a large lump-sum amount if your current savings are enough.Downside: You lose a lot of cash, thus exposing your family to unforeseen expenditure, especially medical emergencies. Advantages of home loan: In case of home loans, you can avail the comforts of your own house today at a favorable price, without having to part with a large chunk of cash in one go – any unforeseen expenditure thus becomes easier to absorb. Organizations like Piramal Finance also allow you to restructure your EMIs as per any change in your investment plans eg: you may increase the payback period and decrease the EMI when needed. Living in a secure home with better amenities increases your productivity – your income, lifestyle and financial security thus actually improves. Therefore, it is much better to take a home loan and get the house of your dreams today than to wait indefinitely or risk it all for the same. [B-01] Time to strike is now! The golden age for home buyers may not last forever. According to a recent S&P Global Market Intelligence Report, COVID-19 has made people realize the importance of owning a secure home – the demand for homes has thus been picking up. As per the same report, the collective inventory of houses have fallen from the record high of 700,000 in 2014 to less than 4.5 lakh in 2021. It is therefore expected that prices might start steadily increasing soon. Favorable locations can have multiple advantages such as lower pollution, lower transport costs, less walking to and from markets, living closer to friends and family and even lower pollution. So if you are looking for a home to call your own at an enviable price, better start looking for the required finances now!
Whether big or small, a roof over the head has always been considered a distant dream and a valuable possession for individuals from economically weaker classes. A Pradhan Mantri Awas Yojana is a big step toward making this dream of owning a home come true for these Indian citizens. What is Pradhan Mantri Awas Yojana? Pradhan Mantri Awas Yojana (PMAY) is an Indian government initiative launched by PM Narendra Modi in June 2015 and is based on the concept of “housing for all”. The idea behind this initiative is to provide affordable housing to the urban and rural poor of the country. The government proposed building over 2 crore homes in urban areas by 2022 for citizens who come under economically weaker sections and low-income groups. The tenure for loans under the PMAY can go up to 20 years. This scheme also focuses on making housing affordable for demographics such as women, scheduled castes, scheduled tribes, and minority groups. Depending on the region it caters to, PMAY is divided into two parts Pradhan Mantri Awas Yojana Urban (PMAY-U) Pradhan Mantri Awas Yojana Gramin/Rural (PMAY-G/PMAY-R) Pradhan Mantri Awas Yojana Urban (PMAY-U) The PMAY-U scheme launched in June 2015 addresses the housing shortage issue among the Economically Weaker Sections (EWS) and Middle-Income Groups (MIG). Listed below are the three phases of PMAY-U, which are envisioned from start to completion of house construction. Phase 1 – April 2015 to March 2017, 100 cities and union territories Phase 2 – April 2017 to March 2019, 200 more cities and union territories Phase 3 – April 2019 to March 2022, remaining cities to be covered. Pradhan Mantri Awas Yojana Gramin/Rural The PMAY-G scheme, Indira Awas Yojana until 2016, is administered by the Ministry of Rural Development. This scheme focuses on providing affordable housing to citizens living in rural parts of India. Houses are provided to people who do not own a house or those living in kutcha houses. Eligibility Criteria for PMAY The important conditions to be kept in mind while applying for a loan under the PMAY scheme are The maximum age limit for beneficiaries is 70 years at the end of the loan repayment period. Family income limit based on different classes eligible for the PMAY scheme is Classes Family income limit EWS (Economically Weaker Section) ₹3 Lakhs per annum LIG (Lower Income Group) ₹6 Lakhs per annum MIG-1 (Middle Income Group-1) ₹6-12 Lakhs per annum MIG-2(Middle Income Group-2) ₹12-18 Lakhs per annum Anyone from the LIG, EWS, and MIG groups who owns a home or property in their name or their family member’s name in any part of India is not eligible for benefits under this scheme. To be able to buy a home under this scheme, the applicant should not have availed of a subsidy under any other central/state government housing scheme. PMAY benefits can not be availed for already-built houses. Benefits of PMAY Some of the key benefits of the PMAY scheme are mentioned below Ground-floor house accommodations are preferred for senior citizens and differently-abled citizens. Subsidized home loan interest rates are provided to the eligible applicants for 20 years. In-situ rehabilitation of slum dwellers by providing them with concrete residences. Affordable housing for people from all walks of life. Environment-friendly homes are built under this scheme Documents Required for PMAY Listed below are a few documents required while applying for a loan under the PMAY scheme Properly filled and duly signed loan application form Identity proof document (Aadhar card, PAN card, voter ID card, or Driving license) Address proof document (Aadhar card, Passport, voter ID card, or Rent agreement) Property allotment letter or any property-related documents Proof of income Bottom Line With its mission statement “housing for all,” the PMAY scheme has played a vital role in making housing affordable for people from all walks of life. If you have ever dreamt of having your own home and meeting the eligibility criteria for the PMAY scheme, now would be the right time to apply for a housing loan and fulfill that ever-distant dream.
In any economic crisis, some segments fare better than others. When it comes to COVID-19, however, almost no segment came out unscathed. This impact has been felt in the housing finance sector. Who, exactly, is included in this sector? [B-01] What is the housing finance sector? This is a sector of the country’s economy including all of the non-banking financial companies that are engaged in the business of financing the construction and acquisition of houses. This sector is also involved in the development of plots for the construction of fresh properties. This sector is heavily reliant on a functional economy and was therefore struck quite intensely by the pandemic. Impact of Covid-19 on Housing Finance COVID-19 resulted in central banks all over the globe using three key tools to make the most out of the housing situation: Open market operations, interest rates, and reserve requirements. RBI (the Reserve Bank of India) also came out with slashed repo rates, reaching a two-decade low at 4.4 percent. Additionally, the RBI slashed the reverse repo rate to 3.75 percent and the cash reserve ratio to just 3 percent. Additionally, ‘Targeted Long Term Repo Operations’, abbreviated to TLTRO 1.0 and 2.0 were also introduced. Essentially, with each of these policies, the government was attempting to make home loans more affordable during a time of crisis where job security for most sectors was not guaranteed. The public received the housing loans policy changes mandated by TLTRO 1.0 relatively well. However, this plan seemed to benefit AAA-rated Housing Finance Companies the most. An AAA rating implies that the services offered by these companies have the lowest possible degree of risk regarding timely servicing of financial obligations. It is usually ascribed to larger well-established companies. Noting this unfair advantage, TLTRO 2.0 was announced by the government. This plan was targeted to offer financial support to smaller companies, particularly providing support to smaller Non-Banking Financial Companies (NBFC), Housing Finance Companies, and Microfinance Companies in India. However, this TLTRO 2.0 received a tepid response from the public. The general consensus has been that the pandemic improved the strength of companies that were already well-established, while micro-companies suffered much more. Moving onto real estate: a sub-sector that is among the largest contributors of GDP in India. This segment of housing finance has gone through its fair shares of troubles in the last decade. Two interpretations overshadow the consensus of how the ongoing pandemic has impacted real estate. One approach cites the fact that the lower economic strata has been most affected because of the lockdown. Ultimately, this has resulted in lower demand for affordable housing. On the other hand, there has simultaneously been a clampdown on discretionary spending, particularly from high-income groups, in addition to a flight to a value. This outcome has led to a somewhat notable increase in demand for affordable housing when it comes to the lower and middle segments. With migrants wanting to return to villages, the non-availability of the workforce is an immediate concern. To add to this, new housing projects require a lot more time, with builders mobilizing their resources to ensure completion. Hence, the general outcome has been somewhat negative yet optimistic when it comes to demand. [B-02] Is there a silver lining? Working from home is the new office. This is touted as a silver lining resulting from continual lockdown. Most companies have been seamlessly able to transition to working remotely. Housing customers found it much easier to connect with lenders. Alternatively, lenders too were able to reach out to a large number of customers within a shorter time frame. This has been credited to the high penetration of smartphones, social media, and online work.
Buying a home is a dream every person has. But sometimes, all the savings and hard work are not enough to buy the house you want. People are often unable to pay the entire price of the house upfront. This is where home loans come in. With mortgage home loans, more and more people’s dreams of owning a home are coming true. Read on to find out everything related to mortgage loans in India. [B-01] What are mortgage loans? A mortgage loan is a loan taken against a property. The borrower usually pledges their property to acquire a home loan. The loan can be used to buy a house, renovate or extend your house as well. How does a mortgage loan work? If you want to avail a mortgage home loan, you must choose a lender (bank or other financial institution). You must also meet their eligibility criteria of age, credit score etc. The loan will be offered to you with your property serving as a collateral. Therefore, mortgage loans are secured loans. You, as the borrower, sign an agreement to pay the lender in monthly instalments. There is also an interest rate involved. Some standard eligibility criteria of mortgage loans With every loan, the lender takes a certain amount of risk. Therefore, there are some set eligibility criteria that the applicants must satisfy. Most mortgage loans in India have similar eligibility criteria. 1. Regular source of income: The first thing that lenders check is the applicant’s source of income. You must have a regular and stable source of income to be eligible for mortgage loans. You can provide your IT returns of the last financial year or your salary slip as a proof of income. You can also use your current bank statement as a proof. 2. Debt-to-income ratio of more than 50%: Your debt-to-income (DTI) ratio is the percentage of your net income that goes into paying debts. This includes existing loans, credit cards and EMI purchases. A large DTI percentage indicates that you have too much debt. Thus, lenders think that you won’t be able to pay EMIs of your mortgage loan. To bring your DTI ratio down make sure to close off older debts. 3. Decent credit score: Your credit score (CIBIL score) is used to measure your potential as a borrower. The higher the credit score, the more is your chance to get approved for loans. In India, mortgage loans are usually offered to people with a credit score of 580 or above. Different aspects of mortgage loans By now you know about the basics of mortgage loans. Here are more details about the loan, EMIs, interest rates and more. Principal amount: A mortgage loan in India will usually offer up to 90% of the value of the collateral property as a house loan. The exact amount depends on your record as a lender, financial stability etc. Down payment: While taking a mortgage loan for your house, you also have to pay an amount as down payment. This is the amount that is not covered in the principal amount. It can vary from 10 to 40% depending on the mortgage loan amount. EMI: You have to pay an EMI or Equated Monthly Installment every month. This is the way in which you repay your mortgage home loan to the lender. The EMI has two components – the principal amount and the interest. The amount of monthly EMI depends on the tenure of your loan. Tenure: Tenure of your home loan is the amount of time for which the loan has been sanctioned. It can vary from 5 years to even 25 years. For women borrowers, home loan tenures can even be 30 years. Interest rate: There are two types of interest rates on mortgage loans – fixed interest rates and floating interest rates. Fixed interest rates remain the same throughout the tenure of the loan. Floating interest rates are subject to fluctuations in the market. They can either go up or down. Other charges: Home loans taken against a mortgage also levy a small processing fee and a service fee. [B-02] Looking for a housing loan? Piramal Housing Capital and Finance has a number of options – with easy approvals and quick disbursement.
There are different types of home loans available. The most common are basic home loans for buying or constructing a house. Banks and financial institutions also offer loans for home extension and renovation. Both home extension and renovation are costly processes. Therefore, these home extension and renovation loans can be very beneficial for homeowners. Let us know more about them, followed by their differences. What are home extension loans? With time, people’s requirements change. Families grow, and as a result of this, people require more rooms. Other than that, people also wish to add certain features to their houses. Some people build a balcony because their previous house lacked one. Others want to transform the excess space into a lawn, pool, or garden. Adding a floor to single or double-story houses is also a common occurrence. Although these home expansion processes are less costly than buying an entire home, they still cost a lot. Therefore, these home extension loans come to use. People wishing to extend their homes can avail of a home extension loan from a bank or financial institution. Here are the features of home extension loans. Simple eligibility criteria Great interest rates 90% to 100% of the extension value is given as the principal amount. Long repayment tenure Easy documentation What are home renovation loans? Every home needs renovation at some point. As houses age, brittle plasters affect the walls. Simultaneously, the woodwork starts to wear off, and the roof leaks. Therefore, these houses need repairing. Some people also love remodeling and renovating their houses to give them a different look. All such renovations and alterations require a lot of money. Thus, banks and financial institutions offer home renovation loans. These loans are easy to access and have simple eligibility criteria. Some features of home renovation loans in India include: Easy eligibility criteria Low interest rates Quick approval and disbursal High loan-to-value ratio What is the difference between a home extension loan and a home renovation loan? Home extension and renovation loans are useful for people who want to improve their homes. They are both easy to obtain and offer attractive interest rates. However, both have their pros and cons. Here are some differences between the two. 1. Shifting: While renovating, it is mandatory to move to a new temporary residence. This has its own expenses, and the process is hectic as well. But if you’re adding a room or a floor to your house, there is no need to move. In this respect, home extension loans are more convenient. 2. Ease of approval: Although both loans get approved fairly easily, home renovation loans have a higher approval rate. This is because they are more popular and lenders are more comfortable granting them. 3. Tenure: Home extension loans are almost similar to conventional home loans. They also have similar tenures for repayment through EMIs. They have long tenures, thus offering affordable monthly installments. Home renovation loans have comparatively shorter tenures. 4. Collateral: Home extension loans are comparable to the usual housing loans. Therefore, lenders sometimes require collateral against which they grant extension loans. Home renovation loans have no such requirements. 5. Hassle-free process: Home renovation loans require minimal documentation and can be disbursed within a few minutes. Home extension loans also require only basic documents. However, lenders make a few more inquiries when granting the latter. 6. Flexibility to spend: One of the biggest advantages of home renovation loans is that they allow you to allocate the funds wherever you want. You can use the granted loan amount to do any kind of work you wish to do. You can invest it in carpentry, plumbing, masonry or anything else. As for home extension loans, you can only spend them for a particular cause. [B-02] 7. Balance transfer facility: Loan balance transfer allows you to transfer your outstanding loan balance to another lender for lower interest rates. This helps reduce your burden of debt. It also allows you to extend your repayment tenure as well. Most home extension loans enable borrowers to transfer their loan balance. It is less likely to be available for home renovation loans.
Buying a home of one’s own is a dream every person has. But today, that dream is not limited to just men. With societal changes, women are becoming homeowners and building a home of their own. To encourage more women to go on the same path, banks and financial institutions have many benefits in place. These home loan benefits help women avail of loans without much hassle. Thus, more and more women are starting to have houses credited to their name. If you are a woman looking to buy a house, these are the home loan benefits you should know about. [B-01] 1. Lower interest rates for women: One of the biggest home loan benefits for ladies is the lower interest rates. People who have ever purchased anything on a loan will know that even a 0.01% difference in interest rates amounts to a lot of savings. In order to incentivize more women to buy their own houses, banks and financial institutions offer concessions on the rate of interest on the home loan. The concession might vary from 0.05% to 0.1%. Although this number doesn’t look as impressive, it can make a huge difference. Let us understand this with a simple example. Typically, home loans last for long periods of time. It might take even 15 to 20 years, in most cases. So let us assume that a borrower takes a home loan of Rs. 50 lakhs for 20 years. The interest rate applicable for male borrowers is 8.65%. While the interest rate offered to female borrowers is 8.6%. Therefore, the interest outflow for the male borrower is Rs. 55,28,083 and the interest outflow for the female borrower is Rs. 54,89,953. Evidently, the savings from the woman borrower’s interest outflow amounts to Rs. 38,130. 2. Women enjoy tax benefits, even as co-borrowers: All women availing a home loan are eligible for tax deductions of up to Rs. 3.5 lakh. The same tax benefits can also be availed if you apply for the loan with your spouse. If a couple applies for a home loan jointly, they can still claim the tax deductions. The maximum tax deduction allowed on principal amount is Rs. 1.5 lakh. While the maximum tax deduction allowed on the home loan repayments is Rs. 2 lakh. 3. Lower stamp duty charges for women: Stamp duty adds a significant amount to the cost of the house. To make sure that more women own property, different states lowered stamp duty charges by 1 to 2%. This can result in a woman saving up to Rs. 1.6 lakh on a property worth Rs. 80 lakh. 4. Pradhan Mantri Awas Yojana (PMAY) scheme benefits: The Pradhan Mantri Awas Yojana (PMAY) is a government initiative. The scheme is designed to help women own more houses. It helps women to get access to home loans. Widows and single working women are given preference. You can visit the official website of Piramal Finance to apply for the scheme with a simple click. 5. Large amounts of loan with simple eligibility criteria: To attract women borrowers, lenders have relaxed their eligibility criteria. Some financial institutions offer home loans to people with a credit score of 650 or less. These kinds of home loan benefits make it easy for women to buy their own houses. If you are a woman looking for the best home loan options, Piramal Finance website has a lot to offer. 6. Higher chances of loan approval: Statistics have shown women to be better borrowers than men. There are less defaulters among women and they also have higher credit scores on average. Therefore, financial organizations tend to approve loans of women more easily. 7. Flexible tenures: Among the best home loan benefits for women are the flexible repayment tenures. Women applying for home loans can choose repayment tenures lasting up to even 25 to 30 years. Such convenience gives women the confidence to build a home of their dreams. [B-02] 8. Other benefits: Lenders often have exciting offers and gifts for women availing home loans. These include vouchers, gift cards, gold coins and free holidays, among others. These additional sweet gestures are truly worthy of mention.
A business loan can be highly beneficial for businesses looking to improve their overall sales, growth, and revenue. Any business with a lack of capital or the right type of funds to support its functions chooses appropriate loans and makes the most of them. However, the problem arises when there is a certain miscalculation or a circumstance you simply cannot avoid. During such times, you may encounter a default on your business loan. A default on a business loan could sound like bad news. However, there is always a way to mitigate the risks. In this article, we will talk about the same in detail for your knowledge. [B-01] What Is A Business Loan Default? When a borrower breaks the rule regarding the determined duration of the loan agreement, you may face a business loan default. This mostly happens when the borrower fails to make the payments as decided. Hence the lender may have to take legal actions against them, which might land them in financial problems. But there can be some intelligent ways to avoid this issue if done right. We will discuss them as we read. What Happens When Default Loan Problems Arise? 1. Credit Score Drop Your credit score is what helps you obtain loans and get them approved. So, the lender reports to diverse credit agencies if you fail to pay during an installment. Since your good credit score is what helps you obtain the best business loans on time, it is prudent that you have it checked. Remember, a drop in your credit score also means that your loan can be denied. 2. ncrease in Interest Rate If the credit score drops, there is a high chance the lender will increase your interest rate. This will put you in a spot with your finances and inconvenience while trying to save every penny for your business’s future. As such, it may also take a toll on your loan repayment capabilities in need. With this, the future business loan approvals that you might want to obtain will also become somewhat full of hassles. 3. Foreclosure When a default loan problem occurs, the results can be different depending on the security or insecurity of those loans. If you have a secured loan, a foreclosure will give the lender all the rights to access all properties and assets as collateral. If the loan is unsecured, the lender may demand you provide them with a personal guarantee of all your business assets. None of these is healthy for your future loan approvals. 4. Announcing Bankruptcy If there is a default loan problem, the lender will eventually begin with the legal procedure that will help recover the loan. If there is a secured loan issue, then the lender will ask for collateral. However, in the case of unsecured loans, the lender is most likely to sue you for this issue. So, it is important to maintain caution at every step of the way. How To Avoid Default On Business Loan? 1. Remember The Date The EMI dates are essential because this is when you need to pay your business loans. That is why it is only a good practice to keep checking your phone for bank notifications that keep updating you about your EMI loans. This helps you to avoid a default on your business loan and other hassles that could come with it. In this process, if your account does not have a sufficient balance, you can at least deposit money on time to keep the cash flow consistent and leave your EMI unharmed. 2. Speak To Your Lender If there is any issue with your business loan payment, it is best to speak to a lender about it. Inform them on time so they can tell you how you can mitigate this issue or avoid your default loan problem. Do not sit back and worry about what to do next. Remember, your lender can always provide you with the right kind of assistance you need. Also, even if they fail to assist, they might help you find the right ways to mitigate the problem. 3. Debt Rescheduling The lender can be open to renegotiating the business loan if you face hindrances regarding the monthly payments. So, the lender is most likely to give you a new loan tenure along with a revised interest rate. You must follow this one to avoid your default loan problems again. [B-02] The Bottom Line If you do not know what a defaulter of loan means, do not hesitate to consult your financial expert. You could also speak to your lender regarding the same and help them explain it to you. Remember that this article is bound to help you. So, make the most of it while you can.