Thursday, 24 November 2016

Documentation That You Need to Furnish For a Personal Loan

While applying for a personal loan, you will be asked a few questions about your finances. Indeed, the whole process is quite transparent, efficient and quite easy so that you can easily acknowledge what you are getting and how much you will have to pay. Once you have completed the application, you will be asked to show necessary documents, such as –

Income proof -The lenders might ask you to show any of the following:
  • Recent bank statement displaying your last three consecutive income deposits
  • Current payslip showing your annual income or last three consecutive payslips
  • An original and signed letter from your employer confirming your income details



Current address proof -The lenders can also ask for the confirmation of your current address. You can show any of the following:
  • Recent utility bill
  • Property sale and purchase agreement 
  • Insurance policy document
  • Unexpired rental or tenancy agreement 

Banking history - You might need your 3 months banking history including online statements from the last 3 months.

Documents required for the self-employed -
  • Applicant’s proof of identity- It might include your voter ID card, passport, pan card or a driving license
  • Residence proof-It can be your ration card, passport or utility bill
  • Age proof- Your age can be confirmed through Voter ID card, passport, pan card or driving license
  • Office address- It can be your property documents, maintenance bills or electricity bills
  • Income proof- They will be asked to show latest 2 years income tax returns, which includes income computation and balance sheet.
Documents required for senior citizens -
  • Identity proof- They will be asked to show their passport, driving license, Voter ID card or PAN card
  • Residential address proof- They can show their license, registered rent agreement or utility bill
  • Age proof- Pan card or passport
  • Proof of income -They can show their pension returns or bank statement
Thus, you need to keep all your documents handy if you want to successfully apply for personal loan.

Tuesday, 15 November 2016

Amount That You Can Borrow Can Be Determined Through Many Factors, Such as…

Having your own house seems to be like a dream come true. You surely need a home loan to buy your dream house. Obviously, you are expected to have enough monthly income so that you can pay for the loan on time. Apart from your monthly income, there are hell lot of factors that you need to consider while applying for it:


  • Educational Qualification: Indeed, your qualification determines your career and one can also estimate your future positions. The banks need an assurance that you can pay for the loan quite comfortably and on time. Thus, your qualification matters a lot in determining the eligibility for the home loan.
  • Income stability: If you are the one who is habitual of switching jobs, the banks or lender cannot trust you. You will answerable for your frequent switches. They can make an idea that your increments and promotions might get affected. They will consider that you will not be able to pay for the loan on time. 
  • Credit scores: It is most vital as banks usually check your credit scores to determine whether they should approve or not. They will reject your loan if you have bad credits. You should also check for any errors within the credit report that might reduce your credit score.
  • Number of dependents: The banks will decide your home loan approval by determining the number of dependents you have. If you have number of people depending on you including your parents, spouse and children, the banks will rethink before approving. You need to make it sure that they all have their own investments and are earning interest from that in order to reduce the financial burden.
  • Monthly expenses: The banks will ask you to reveal your bank statements and savings account through which they will determine your monthly expenses. If your expenses are more, there are more chances that your loan eligibility will be reduced.
You can talk to your lenders about your issues. Even if they feel that you are not eligible for the loan, you can add a co-applicant for the approval.

Thursday, 3 November 2016

Getting Pre-Approved For the Car Loan Strengthens Your Position Thus Improving Car Buying

Once you have decided to buy a car, it is of utmost importance to be pre-approved for the car loan. It is significant, as it will make you at much stronger negotiation position. You can easily get pre-approved for the car loan through banks, lenders or creditors irrespective of the fact that you have good or bad credit.

Better interest rate: If you are getting pre-approved for the loan, you can get the desired interest rate. If you have not negotiated for it, it is likely that the finance manager might take advantage of it and can offer you high interest rate. Getting pre-approved will make it sure that you are getting the best interest rate.

Decide a budget: Once you have been pre-approved for loan, you can easily set a budget for buying a car. You can conveniently determine about how much amount you need to purchase it. You must also include the sales taxes, insurance and other fees in your budget. 


Get better car buying experience: If you have been already approved for the loan, the dealer might be afraid that you can walk away from the negotiation anytime. Otherwise, he will negotiate on the amount of monthly payment that you have named rather than one you really want to talk about.

Go for effective negotiation: Getting pre-approved allows you to negotiate for the interest rate. The time you are closing your deal, you can deny for the extended warranty offers and add-ons that you do not desire.

Boost your confidence: Getting pre-approved will enable the qualified customers to shop for the car with more confidence. With loan in their hands, they can easily focus on car shopping. Thus, it will serve as a great stress buster. Moreover, it is going to save both your time and money.

No doubt, being pre-approved for car loan with bad credit can be a great hassle. For such customers, bad credit car loan is best suitable for them as other loans are usually denied to them by the traditional lenders.