How To Get Loan Personal Online In Bangalore (Guide)

In this post, I’ll explain some amazing ways to get personal loan online in Bangalore without having all the hassle you usually have with banks and at some really good and low interest rate. In this guide, I’ll mention 5 methods to apply for a loan when living in Bangalore.

5 Methods To Borrow Money Online In Bangalore

Peer to peer lending : P2P lending is a form of lending where an individual or multiple lenders invest money directly in a borrower at a negotiated interest rate which ranges from 12-36% which borrowers pay in reducing EMI’s through an online platform. The concept of p2p lending is still new in India however already there are thousands of active borrowers and lenders are exchanging with platforms like Lendbox, I-lend and Rupiya exchange. Getting a personal loan in Bangalore through a p2p lending platform is an amazing deal.
Loan With Banks : A lot of banks like Vijaya bank allow to apply for a personal loan online through their website and also claims to disburse within a few days of approval however this requires you to go to the nearest bank branch to submit the required documents and the approval have really low chances as the they require a good credit score.
Lending Money Through Facebook : This may sound a little weird but it is very much possible and a lot of people has been raising money through facebook. It is very much like p2p lending and crowd funding where you join a group with Bangalore lenders, provide documents, get approved and then bid for personal loans with private lenders.
Committee : Although, it is very costly compared to other forms of lending but still a very efficient method to get money in case of emergency. Committee is an informal way of lending where a lot of lenders combine a sum and interested borrowers bid for the rate of interest.

Hope this list will help you with getting a personal loan in Bangalore, if you found this article helpful then feel free to share it and help other peoples too.

How To Get A Loan For Wedding

Wedding is one of the most important and special days that a person experience and everyone wants to make their special and remembering but with the continuous inflation, it has now become very tough to organize a wedding within a very restricted budget and for having a special wedding day, it’s now very important to finance it just like you do for vehicles and homes to avoid any kind of financial stress. So, now the question rises, How can I finance my wedding? or How can I get a wedding loan?, well it may sound silly, but there are many ways to borrow money or get loan for a wedding and that too online.

Here are the steps to get a Wedding Loan

Get a personal loan

Even though, a personal loan have limits but if it covers your wedding budget then why not. Getting a personal loan on internet is not really tough but it still need to be done very carefully to avoid unnecessary expenses, you can use peer to peer lending with online lending platforms such as Lendbox and Prosper or if it’s too complex for you can go for regular banks if you can wait longer and doesn’t want to get into complicated things.

Below are steps for both cases

Wedding Loan Via Peer To Peer Lending Platform

Register on a peer to peer lending website
Fill in the data and upload the required documents
Wait for verification and activation
Request proposals to investors with your amount and reasonable interest rate
If your credit score is good then you’ll get funded within 2 days otherwise wait
Repay your amount in installments

In a p2p lending platform, you don’t have to wait longer and if you request proposals in small amounts and it increases the rate of approval and speed of funding but if you have a bad credit score then it will be hard to get the loan amount in time.

Wedding Loan Via Banks Or Other agencies

Apply for a loan online
Wait for revert
Verification process will take place a few days after if your application granted
After 2 to 3 verification processes, you will get loan
Repay with easy monthly installments

When applying for a loan in Banks, you need to know that they have high rejection rate and if you have bad credit score then getting loan from banks is almost impossible since and keep in mind that processing fees in Banks can be a little high compared to other institutions and p2p lending platforms.

Should you really go for a Wedding loan

Before going for a loan for covering your marriage cost, you need to understand, on what terms you should go for a wedding loan and do you actually need it because in India “chacha mama milke hi kra dete h shadi” but on a serious note, if you have plans and support to cover up your event cost and you are using your credit card with maintained balance then there is no need to get loan from a bank or a lending platform.

You can arrange money offline if you have contacts as Wedding is something that you can easily borrow money for but in the end it all depends on you, whether to take a loan for your wedding or not. Take the decision that will help you improve your credit score.

Hope this post helped you understand how and where you can get loan for your marriage.

How To Borrow Money Online In India

Lending and borrowing has been started centuries ago and as technologies advanced, this became more and more convenient to the point where you can even borrow money online while sitting on your couch wearing pajamas. Today, we are gonna tell you the same. In this post you’ll learn How to borrow money online in India.

Best Ways To Borrow Money Online

1. Borrow money with peer to peer lending platforms

One of the best ways to get personal loans on internet is by using P2P lending platforms. Peer to peer lending is the investing and borrowing process between individual peers/persons without going through any traditional intermediaries using an online platform.

Read what is peer to peer lending and how it works to understand it more briefly.

Peer to peer lending is much different from banks as explained by Mr. Bhuvan Rustagi in an article in Buisness-Standard, he said

“Unlike taking a loan from a bank, these platforms are do-it-yourself.

So, there will be no executive visiting to collect documents and provide other services.

A borrower needs to scan and upload documents for KYC, such as photo, PAN card, Aadhaar card and passport.”

Bhuvan Rustagi

COO, Lendbox

Even though peer to peer lending is still in its early stage in India and there are only bunch of platforms available right now however, the awareness about this is increasing at a good speed among the normal people and platforms like Lendbox, faircent are growing at an amazing rate and making this process as secure as possible and make this process of borrowing money online in India easy.

Benefits

Easy to apply
Fast funding for people with good credit score
Low Interest for people with good score
Easy repayment with EMI
Low processing fees and no hidden charges

Risks:

Lack of lenders
High interest rate for people with bad credit

2. Online Personal Loans from banks

Now many banks are also providing loans over the internet for the eligible candidates with good credit score, CIBIL Score and many other things. You can get loans for multiple type of needs such as home loans, car and bike loans or even consumer durable loans.

Even though, the application process is online, many kinds of verification processes will take place offline and sometimes, service and support of these bank or loan agencies can be really poor and unresponsive.

Benefits:

Low Interest Rate
Long repayment time or Low EMI

Risks:

Not good for people with credit
Long verification process
Heavy processing fees and unnecessary charges
Poor service or support in many banks

These are the two best ways currently to get loans or borrow money online in India, you can go for peer to peer lending or online personal loans whatever suits you better but always remember to maintain your EMI’s on time to keep your credit score good.

What Is Debt Consolidation And Best Ways To Do It

If you are tired paying down multiple debts like credit cards, or personal loans every month, a debt consolidation plan could simplify your financial situation. It won’t offer you “quick solutions” but rather long-term financial strategies to eliminate debt. So what exactly is debt consolidation strategy? And how does it work?

Well, through debt consolidation you take out a loan, pay off your other debts and have a monthly pay off. So, basically it is the process of combining two or more debts into one and results in a single debt payment and at lower interests.

It works as a great option for people who have multiple creditors to pay and too many dates to juggle with. Traditional lenders like banks do provide the borrower with a debt consolidation loan. Lenders examine your credit score, income and employment history before approving the debt consolidation loan.

However, online platforms like peer to peer loans, abbreviated as P2P loans, offer an opportunity to the investors to place their money in your loan and when you pay back the loan, the investors receive the interest. Peer-to-peer lending is the latest innovation which is shaking up the financial industry.

Commonly referred to as ‘marketplace lending’, this platform establishes connection between the providers of capital and the borrowers who need the credit. These firms act as a third party between the borrower and the lender and make the whole process of getting the credit easier and less painful. By serving as middlemen, peer-to-peer banks avoid many of the liquidity risks faced by fractional reserve banks today.

Once the lenders start contributing to your loans, you are easily to pay off your credit cards without missing any payments.

searching for higher-profitable assets. The marriage of interests of the credit seeking borrowers and the lenders has helped the P2P platforms proliferate. This platform gives the investor a chance to bid his/her money into the portfolio of a lender he feels reliable and confident about.

By funding a loan as an investor through a P2P platform, you get to play in a space where you are getting returns higher than you might get through corporate bonds. The investors bid on the applicants they find most compelling and which have a good credit score. It is commonly considered as ‘consolidation’ because instead of making multiple payments to the creditors, the borrower now makes one monthly payment to a debt settlement company with the intention of negotiating a lower debt payoff.

However, this platform is still not well known in third world countries and is in its nascent age. As this fairly new platform will proliferate in India, it will surely attract more investors to bid their money in different portfolios of lenders.

Tips To Get Loans At Low Interest Rate

With a loan, a person can counter many kinds of financial needs and emergencies but sometimes the loan itself can be a huge burden because of high interest rate and unnecessary processing fees and hidden charges that many financial institutions like banks includes in their loan programs.

So, How can you get personal loans at low interest rates?

That’s one tricky question, because without a doubt, a person with poor credit history is subject to get ignored, rejected and charged heavily from such institutions. Even though you can get a personal loan with bad credit but still that doesn’t mean it’ll be favorable to you or will help you eliminate your financial problems or needs but still, if you’ll remain careful enough, then you can get loans at very affordable rates. Here are the things you need to mind before applying for a loan.

Maintain A Good Credit Score

Well, this is a obvious thing, you need to learn how to maintain a good credit score from very start otherwise you’ll face many problems later, with some good tactics you improve your credit score but we’ll talk about that later, few things you need to do to in order to maintain a good credit score are the following.

Pay your utility or any kind of bills at time
Keep your credit card balance low
Avoid using credit card at unnecessary times
Use Debt consolidation strategies
Keep an eye on your credit card reports

Have a look at this video to understand how to maintain a good credit cost

Use social lending platforms

With social or peer to peer lending platforms like Lendbox, faircent and i-lend , you can save a lot of unnecessary charges and can get loans even with bad credit score if you have valid reasons for that.

Read here : What is peer to peer lending and how it works?

There are a lot of difference between peer to peer lending and banks and these platforms offer loans at lesser interest rates compared to banks as they don’t act same as any other intermediaries and charge a very small amount of processing fees once a loan gets approved.

Have a look at the info graphic below to understand how borrowing works in a peer to peer lending platform

Peer to peer lending infographic — source – Lendbox

These are the two best ways to get loans at low interest rate and if you follow these tips carefully then you can fulfill your financial needs without getting much stressed about repayments and other such processes

How To Get Loans With Bad Or Poor Credit Score

Has your credit scores being knocked out by wind due to financial problems, or are you struggling to build an impressive credit score for the very first time? Low credit scores are likely to give you a tough time in accessing loans especially hefty loans. However, you will be surprised to know that you have ways by which you can secure loans even with a lowercredit score. So, here is how you negotiate the best credit deal in case you have a score below 750.

Here Is Solution To Get Loan With Bad Credit

According to the data provided by Credit Information Bureau Limited (CIBIL), 80 percent of the loans that are approved by lenders have a score above 750. However, lenders don’t look at the credit score as the only parameter for sanctioning the loans and deciding the interest rates.

The difference in interest rates varies over various factors – whether the loan is secured or unsecured, the amount of the credit and the payback tenure. A borrower is able to avail a secured loan at lower interest rate even with poor credit score; however interest rates jump with an unsecured loan.

Also Read : What is Debt consolidation and best way to do it

The income source and the employer also play an important role in determining the interest rates. Promising source of income and an employer with a good reputation in the market can help you in availing the loan at lower interest rate even with poor credit score.

Generally, Non-Banking Financial Institutions (NBFCs) are more flexible in offering loans with lower credit scores and cut-offs compared to banks. NBFCs have disbursed loans for a credit score as low as 360, but charge higher interest rates compared to the traditional lenders such as banks.

Peer-to-peer or P2P lending platforms like Lendbox and i-lend can also help the borrowers in availing small personal loans of up to Rs five lakhs with a low credit score.

The borrower can get access to loans from these platforms at 12 to 24 per cent interest rates without any collateral. However, the P2P platforms scrutinize the borrower’s profile with low credit scores under strict process and categorize them under different risk brackets. It also assesses the banking and social behavior of the borrower through LinkedIn, Facebook, repayments, monthly obligations of the borrower, family details and office stability, before placing the borrower’s profile in under the risk bracket.

If the reason of your poor credit score is your credit defaults of the past, it is advisable to explain to the lender why you defaulted. The lender may excuse you and offer the loan at lower interest rate, if you have a genuine reason to offer for your previous credit default.

Another way of improving your credit score can be using special products like secured credit cards against deposits. Banks like ICICI offer these secured credit cards which do not look at your score or income and your credit limit is based on the deposit you make. Once the borrower starts using this card and make repayments on time, the credit score improves gradually.