How to refinance your home loan despite a bad credit score

Asha Shastri had a home loan of Rs. 35 lakh for 25 years and an interest rate of 10%. But there were medical emergencies in her family. So, she could not pay the EMIs on time. She defaulted on her loan repayments. She then came to know of another lender. This lender charged an interest rate of 8.35% on home loans. So, Asha decided to go for a home loan refinance. But, her missed repayments had impacted her credit score. She did not know if the new lender would sanction her application for refinancing.

Let us understand how to go about home loan refinancing despite a bad credit.

How does your credit score affect refinancing?

Lenders use your credit score to find out how likely you are to repay them and on time. Your credit score is a three-digit number ranging from 300 to 900. The closer you are to 900, the better your credit score. If your credit score is above 750, it is good. If your credit score ranges between 350 and 750, it is average. Anything below 350 is a bad credit score.

If you have too much debt and a bad credit score, you are a ‘high-risk’ customer. Lenders are averse to giving credit to high-risk customers. Of course, they want to avoid defaulters. Banks, in particular, do not like to accept ‘high-risk’ customers.

How to refinance your home loan when you have bad credit

  • First, try to resolve the bad credit Try to pay off the costliest debt you have. At the same time, pay at least the minimum amount on the other outstanding debts.
  • If possible, put a significant amount of money into your bank. The lender will see that you have the funds to repay the loan.
  • Ask someone with a high credit score to co-sign your loan. This may assure your lender that you will repay the loan completely and on time. At least, a responsible person with good credit is also responsible for the loan now.
  • Has a lender already rejected your home loan refinance plea? Avoid reapplying to different lenders. Any rejection from a lender gets reflected in your credit report. This reduces your credit score even further. Apply when your credit score is better.
  • Apply for a home loan refinance with a non-banking financial company (NBFC) rather than a bank. NBFCs are less strict than banks when it comes to credit scores.
  • If you work with a reputable organization, you can use this to negotiate with lenders. Lenders do consider applicants with bad credit if they have jobs with good employers.
  • Explain to the new lender if you have a valid reason for your bad credit This could be, for example, a medical emergency.
  • Approach credit management agencies. They can help you find the best match for your home loan refinance.

Precautions to take when going for a home loan refinance with bad credit

You may be lucky to have a lender accept your refinance application even with bad credit. But the lender may charge you a higher rate of interest than it charges new customers. The new rate of interest may be lower than your original rate of interest. But you should factor in the fees and charges of the transfer procedure. Refinancing may not be the best option if the cost of the transfer is high.

Is the new lender increasing your loan tenure while decreasing the rate of interest? Watch out for this. For example, the new lender offered Asha a lower rate of interest. But it extended the tenure to 25 years. Yet, she had already repaid the loan for five years to her original lender. So, Asha’s home loan refinance move will cost her a lot more in the long run. But, her monthly repayments have reduced.

When you want to repay a home loan by refinancing it, factor in the charges that you will incur. Add this to the total cost of the loan if there is an extended tenure.

The bottom line

Home loan refinance with bad credit may be difficult but it is not impossible. Approach NBFCs rather than banks. Try to negotiate the terms by showing your employer status. Or, get a person with good credit to co-sign your loan. Try to improve your credit score as much as possible. Consider all factors when going in for a home loan refinance.

engineer-loan

Professional Loan Schemes for Engineers

There are many kinds of professional loans available today. You get loans for doctors, small business owners, and even chartered accountants. But engineers have not had too many options so far. Bajaj Finserv has taken this into consideration and launched a professional loan scheme for engineers. What can an engineer do with such a loan? If you are an engineer, you can take a loan from Bajaj Finserv to set up or expand your business. Listed below are the features and benefits of an engineer loan. Take a look.

What is a loan for engineers?

A loan for engineers is a loan scheme available to all engineers in India. The loan is available to anyone who holds a valid engineering degree. The degree must be from a recognized university.

Features of an engineer loan:

Engineer loans have some key features. Here are some of them:

  1. Flexible line of credit: A borrower only has to pay the interest on the amount he spends. The interest does not apply on the entire loan amount. This makes taking a loan much more affordable. It drives down the cost of the loan.
  2. Unsecured loan: These engineer loans from Bajaj Finserv are unsecured loans means you don’t need any collateral to get this loan. The lender offers them on the basis of your credit score and your relationship with the lender. Hence, ensure that you have a good credit history.
  3. High loan amount and affordable interest: When taking an engineer loan, you can borrow up to Rs 15 lakh. But the rate of interest charged on the loan is comparatively lower. This makes the repayment process much easier for the borrower.
  4. Pre-approved: Are you an existing customer of Bajaj Finserv? Then rest assured that you can get a pre-approved engineer loan. This could help you get the loan amount in your bank account within a day. It is useful for engineers who need extra funds right away.
  5. Minimum documentation: The engineer loan requires minimum documentation. Unlike other lenders, Bajaj Finserv does not ask you to submit tons of documents. Just provide the basic documents like proofs of identity, address, and income. Hand in copies of your educational certificates as well.

The best part about the Engineer Loan is the flexible line of credit facility. Consider this example to understand it better.

Thomas is a civil engineer from Trivandrum. He wanted to set up a construction business. He applied for an engineer loan of Rs 10 lakh from Bajaj Finserv. But he ended up spending only Rs 7 lakh in the first year. So, the lender asked him to pay interest on Rs 7 lakh only. After all, this was the actual amount that Thomas spent. This helped Thomas save a lot of money as interest cost.

How to take an engineer’s loan:

If you are a self-employed or consultant engineer and a loan to expand your scope of work, an Engineer’s Loan might be perfect for you. You can take the loan if you are an engineer in any of the following fields:

  • Computer science
  • Electrical
  • Civil
  • Electronics and Telecommunications
  • Electronics
  • Electronics and Electrical
  • Instrumentation and Control
  • Instrumentation
  • Mechanical
  • Mechatronics
  • Production
  • Industrial
  • Chemical
  • Information Technology
  • Aerospace

You may need to submit an ID proof, income proof, and tax returns. The lender can also ask for a balance sheet and bank statements of the last three months. Also, keep ready a business vintage proof. Your business needs to be at least five years old. Keep handy a copy of your business registration certificate too.

To sum it up:

Do not let a financial void prevent you from growing in your engineering career. Be smart and apply for one of these professional loan schemes for engineers. Then get ready to move up the professional ladder.

To apply for an Engineer Loan from Bajaj Finserv, simply click here.

Credit Score Determine Your Home Loan interest rates

How does your Credit Score Determine your Home Loan Interest Rates

A Home Loan is a long-term loan with tenures ranging from 15 to 30 years. So, it is in the borrowers’ interest to keep their Home Loan interest rates as low as possible. But the Home Loan interest rates you get have a correlation with your credit score. Let’s understand how your credit score affects your Home Loan interest rate.

What is a Credit Score?

A credit score is a three-digit number. It is generated by an algorithm using the information in your credit history. In India, CIBIL is the primary credit information company. Banks and non-banking financial companies (NBFCs) use information from CIBIL.

Why do Banks and NBFCs Need your Credit Score to Grant you a Home Loan?

Banks and NBFCs look at your credit score before sanctioning your Home Loan. Your credit score reflects your borrowing and repayment habits. So, banks and NBFCs consider it an important factor when they view your loan application. A low credit score reflects poor repayment habits. Lenders would not want to sanction loans to such an applicant. Your credit score provides a measure of how risky a borrower you might be. Lenders prefer to avoid taking on risky loan applicants.

What is a Good Credit Score for Banks to Sanction your Home Loan?

The credit score, in general, ranges between 300 and 900. For Home Loans, it is good for your score to be closer to 900. This improves your chances of getting approval for your loan application. A CIBIL score above 750 is good. Below 350 is a poor CIBIL score. Meanwhile, 350 to 750 are average scores. The CIBIL website offers some statistics about loan applications. It says 79% of loan applicants with a credit score of above 750 got their loans from the banks or NBFCs.

Does your Credit Score Always Affect your Home Loan Interest Rate?

A good credit score always had another benefit. It helps reduce Home Loan interest rates. A high credit score reflects good repayment history. It indicates that you are disciplined and regular with your debt repayments. So, lenders are willing to sanction loans to such individuals. If you have a good credit score, lenders may also be willing to reduce their Home Loan interest rates. Loan applicants can negotiate with their lenders for favourable interest rates. To get a good deal, you need to have a good credit score.

How will Credit Scores Affect Home Loan Interest Rates Now?

Some banks are already linking customers’ credit scores directly to Home Loan interest rates. Other banks and NBFCs may soon follow suit. At the outset, banks will refer to information from CIBIL. Thus, your credit score will now determine your Home Loan interest rate and the EMI you pay. This type of EMI is called a dynamic EMI.

More about Dynamic EMIs

Borrowers with credit scores ranging from 725 to 759 points may have to pay a lower interest rate. This may be around 8.85% with some lenders. Those with credit scores below 724 may have to pay a higher interest. First-time borrowers, who do not have any credit records yet, will pay the lower interest rate. So, when you calculate your Home Loan EMIs, keep your credit score available with you.

Why is it ‘Dynamic’?

Here, borrowers can improve their credit scores to reduce their Home Loan EMIs. Do you have an average or even a poor credit score? Then you can take steps to improve it. Any improvement will reflect on your interest rate and EMI. For example, say you have a credit score of 720. You will pay 9.35% as interest. But, it makes sense to improve your credit score to at least 725 points. Then your interest rates reduce to 8.85%. Thus, your EMIs reduce as well.

With dynamic EMIs, it is up to the borrower to improve their credit scores. They can then enjoy the benefits of a reduced interest rate.

Having a good credit score has another benefit. You can then do a balance transfer on your Home Loan to a lender that uses dynamic EMIs.

Summing up

How will the Home Loan market fare once the credit score is directly linked to Home Loan interest rates? It is always a good practice to maintain good credit scores and credit history. It offers a lot of advantages. You should make the most of it.

Apply for Home Loan Online Check your Home Loan Eligibilty

business-loan

Apply for a Business Loan from Bajaj Finserv and win assured prizes

Business loans are a reason behind many successful businesses. The right amount of funds at the right time can take your business to another level.

If you were thinking of taking a business loan, you can expect several major features and benefits along the way. You can get quick & easy business loans from Bajaj Finserv which helps you scale up working capital while securing the funding that you need for expansion or other purposes. The business loan interest rate is also quite competitive and these loans from Bajaj Finserv fuse convenience and practicality with amazing features and benefits.

Apply for business loan with Bajaj Finserv and win exciting prizes

If you were thinking of taking a business loan, this might be the best time! We’ll tell you why.

If you apply for a Business Loan from Bajaj Finserv between 20th and 26th March, 2017, you can win an iPhone 7.

Yes, now applying for a business loan can get you exciting prizes. Bajaj Finserv has come up with this exclusive offer where everyone gets a chance to win something. Here are the details:

  • If you take a business loan which is less than Rs.10 lakhs, you’ll get an assured JBL Flip 2 Bluetooth speakers with your loan.
  • If you apply for a business loan which is equal to or more than Rs.10 lakh, you’ll get an assured JBL Flip 3 Bluetooth speakers.
  • The best part is, all business loan customers between 20th to 26th March, 2017, will get access to a lucky draw where they can win an iPhone 7 as the bumper prize!

 

Key benefits of business loans

Bajaj Finserv offers unsecured business loans up to Rs.30 lakh. This means there is no collateral that you need to provide in order to obtain a business loan from Bajaj Finserv. This comes as a relief since you do not have to mortgage any asset. You are not required to provide any guarantors as well which is another major benefit offered by Bajaj Finserv. There are no hidden clauses and you can easily check your eligibility online for a business loan.

You can apply for a business loan online and get approval of your loan online within few minutes. Once your documents are verified, you’ll get the money in your bank account within 72 hours.

You can also conduct seamless transactions on the Experia customer portal and also get all information related to your loan account.

What can you use a business loan for?

  • Working capital: Business loans are great for businesses that sometimes require loans to meet their daily operations needs until their earnings are adequate to help them become sustainable over time.

 

  • Business expansion: You can apply for a business loan to ensure your firm or enterprise keeps on going strong, and use the loan for leasing a new office space, hiring more workforce, building efficient technological support, procuring raw material, increasing your marketing, etc.

 

  • Buying machinery or equipment: One good reason to apply for a business loan to buy equipment is that you can use the equipment for its life and later sell it for a salvage value. Make sure you do a cost-benefit analysis before you buy or lease equipment.

 

  • Infrastructure: Infrastructure is often the backbone of companies and business owners can use a business loan to acquire delivery infrastructure or processing facilities. Business loans from Bajaj Finserv are also ideal to pay for acquisition of infrastructural facilities.

It makes even more sense to apply for a business loan now since you stand to gain some exciting gifts while you’re at it. Customers obtaining business loans between 20th and 26th March, 2017, stand to get assured JBL Flip 2 Bluetooth speakers in case of loans less than Rs.10 lakhs and assured JBL Flip 3 Bluetooth speakers in case of loans more than Rs.10 lakhs. That’s not all; you can also participate in the special lucky draw. Who knows, you might have a chance of winning the bumper prize which is an iPhone 7!

Build your business and take care of working capital requirements with the Bajaj Finserv Business Loan. So, apply now!

Bajaj Finserv cuts home loan interest rates to 8.60% for limited period

Whether you are looking to invest in real estate or searching for your dream home, now is the best time to apply for a home loan. Bajaj Finserv, one of India’s leading non-banking finance companies (NBFC), has reduced its home loan interest rates to 8.60% for a limited period from 22nd  March to 27th March.

Owning your own home is a surreal experience, but not everyone has the funds to afford it. And while a home loan is the preferred option for most, it is important that you take this decision carefully.

Choose a Bajaj Finserv home loan that offers attractive interest rates and is easy on your finances. With a number of handy benefits such as instant approval – which means your application will be processed and approved within 5 minutes – and others such as a 3-month EMI holiday and more, you know you are in reliable hands.

And no, this offer is not limited to those buying a home. If you’re unhappy with your current home loan plan, you can still switch to Bajaj Finserv using the Home Loan Balance Transfer option and make the most of the numerous customer-friendly features including:

Easy loan approval and disbursal

Choose the option to apply for a home loan at your convenience. As long as you fit the eligibility criteria, you can get approval for home loan in as little as 5 minutes!

Top-up loans

If you opt for a home loan balance transfer with Bajaj Finserv, you can also get a top-up loan at a low rate of interest, which you can then use to set up your dream home or for anything else you need.

Refinance

If you have purchased your home in the last one year, you have the option to refinance your loan by availing a loan amount that’s less than or equal to the value of your property.

3-EMI Holiday

Bajaj Finserv offers a 3-month EMI grace period to help you plan your monthly expenses.

Visit the Bajaj Finserv website to calculate your home loan eligibility and take the first step towards owning your dream home. But hurry, this amazing offer is valid only from till 27th March!

Fund A Medical Emergency, Or Higher Education Abroad with A Personal Loan

The old train of thought considered taking a loan as a last-ditch effort only to fulfil sudden and unplanned expenses. But in the India of the 21st century, perspectives have changed drastically. What most of us realize today is that a personal loan can not only help in the time of an emergency, but also better assist you in managing your funds while making a big life decision.

What do you need to know about a Personal Loan?

Have you always wanted to pursue an MBA at a reputable college but hesitated because of expenses? Do you want to give your house a much-needed facelift, but don’t want to dip into your savings? Have you been putting off a medical procedure to keep from spending money? A personal loan can be your friend in need at such a time.

Taking a personal loan for educational, home renovation or medical purposes can not only take the burden off your salaried income, but also help you plan your finances better. How? By giving you the freedom to invest your monthly income in lucrative ways while you save only the EMI amount you need to pay.

Top five features of a personal loan:

  1. An unsecured loan with nothing at stake: You don’t have to worry about keeping your or your family’s assets, wealth and property as a collateral for a personal loan today. Neither do you need a co-signor or guarantor. All eligible salaried professionals can get access to instant funds without having to wait too long!
  2. No debt on account of long-term loans: Whether it is funding international education or revamping your home—taking a personal loan won’t mean adding a huge debt to your shoulders. Instead, a personal loan is a short-term loan with comfortable EMIs and flexible payment options that are easy to customise and pay off.
  3. Safeguard the health of your loved ones: At the end of the day, all that matters is the good health and wellbeing of our loved ones. With a personal loan that is there for you in the time of a medical emergency, you can put their needs above everything else.
  4. Be in control of your finances: With attractive interest rates and multiple options to choose your own loan tenure period, a personal loan won’t make you feel like a debtor. Instead, it gives you the freedom to access funds when you need them with loans that go up to Rs. 25 lakhs.
  5. Money in bank in 72 hours: Lenders like Bajaj Finserv, give you instant access to your funds in as little as 72 hours, so that you don’t have to put any of your plans on hold. With a personal loan that is easy to apply for and get, you can start working towards your future right away!

Here are the benefits of a personal loan:

  1. Affordable interest rates: You may be apprehensive of taking a loan in lieu of unreasonable interest rates that eat into your salary. However personal loans have become more borrower-friendly in the last decade with low rates of interest. In many of the personal loan options available today, you don’t even have to pay an interest on the pre-paid amount! When you only pay interest on the amount you have utilised from the entire loan amount as per your need, you end up saving more.
  2. Instant loan approval:Gone are the days when one had wait for days on end to hear about whether their loan application has been approved or not. Today, when you apply online, you can get instant approval in as less as 5 minutes!
  3. Easy online application process: Rather than standing in long queues and going from desk to desk for approvals and paperwork, you can apply for a personal loan from the comfort of your home. As long as you have all the information and basic documents that you need to attach, you don’t have to worry about running around for validating your papers.
  4. Customer-friendly flexibility:You not only have the freedom to pre-pay your personal loan with excess funds when you have them but can also re-avail the pre-paid amount without more paperwork. The fees and charges with regard to processing and online application are also minimal when it comes to personal loans.
  5. Access to cash in 72 hours:No matter the emergency, you can get access to your personal loan funds in as early as 3 days. This ensures that you have support in your time of need and are financially secure when you need to be.

Read more about the advantages of a personal loan here: https://www.bajajfinserv.in/finance/personal-loan/salaried-personal-loan.aspx

What is the eligibility criteria for a personal loan?

To be eligible for a personal loan, you must be a salaried professional between 25 to 58 years of age. The minimum net salary per month differs from state to state, and you need to submit certain documents as proof of a stable income.

The documents required for a personal loan are:

  1. Salary slips of the last 2 months
  2. Bank statements: Salary account bank statement of the last 3 months
  3. Employment proof: Employee ID card, offer letter, etc.
  4. KYC: Identity proof, which may be:
    Passport, Voter ID card, Driver’s license, PAN card, Aadhar Card
  5. Address proof: Passport, driver’s license, ration card, latest mobile bill, letter from employer (with HR or Admin signature)

How CIBIL score affects personal loan eligibility

CIBIL score or a credit score is important to avail a personal loan. CIBIL score is your credit payment history across all loan and credits due in your name over a period of time.

All lenders check the borrower’s CIBIL score before approving a personal loan. Basically, CIBIL score show your ability to repay a loan and thus lenders rely on it.

Here’s how your CIBIL score will affect your personal loan eligibility:

  1. A score of 750 and above is considered as a good CIBIL score. If you have a good CIBIL score, your chances of getting a personal loan increases.
  2. Lenders prefer borrowers with high CIBIL score and give them preference for faster approvals.
  3. If you have a good CIBIL score you might get a lower rate of interest for your personal loan.
  4. However, if your CIBIL score is below 750, then your chances of getting an approval for a personal loan comes down.
  5. Lenders usually hesitate to give loans to borrowers with a low CIBIL score.
  6. If you manage to get a loan despite a bad CIBIL score, the interest rates might be too high.

How to improve your CIBIL score

If you have a bad CIBIL score, that doesn’t mean you can’t get a personal loan. Here are a few tips to increase your CIBIL score:

  • Check your credit history: Do a thorough check of your credit history and rectify any incorrect information.
  • Pay your bills on time: Start paying all your bills within the due date to improve your score.
  • List out your debts: List all your outstanding debts, ranked by most expensive to least expensive.
  • Pay off the highest debt first: Then move on to the next costliest debt on your list.
  • Stop using your credit cards: Limit your credit card usage as much as possible.
  • Do not default on credit card payments: Credit cards have the highest interest charges; defaulting may lead to heavy costs.
  • Do not keep applying for multiple loans: Avoid applying till your credit score improves; a rejection will decrease your score.
  • Avoid taking more credit cards: Even if you are offered free credit cards, do not accept any more of them.
  • Avoid closing old credit card accounts: This move may backfire as it could reflect negatively on your credit history.

Want to apply? Check your personal loan eligibility here.

How can you apply for a personal loan today?

You are just one simple online form away from getting your personal loan. Applying online is easy and it takes just 4 steps to get an instant approval:

Step 1: Fill in all the necessary details correctly and submit the application form online

Step 2: Select your required loan amount and tenure and receive instant approval

Step 3: Hand over the documents to a representative from your lender who will get in touch with you

Step 4: Receive the money in your account!
If you are applying for a loan offline, you can do so by calling on this toll free number: 18002660635. You can even send an SMS by messaging ‘SOL’ to 9773633633 or give a missed call on 9211175555.

Get online access to your personal loan account

Whatever your financial need, a personal loan can help you achieve your desires instantly. At Bajaj Finserv, you have the added benefit of getting a Flexi Loan—which gives you access to funds up to Rs.25 lakhs at the submission of a convenient online application. Once you get the loan, you can access all the information you need, be it the payment schedule, the interest certificate, the repayment track and other important information through Bajaj Finserv’s digital customer portal.

And that’s not all. To help you realise your financial dreams, Bajaj Finserv has introduced a unique product – line of credit. A line of credit is a credit facility aimed at providing you with access to a specified amount of money. When you need money, you can withdraw and use any amount within the allowed level. Interest is calculated only on the amount you’ve withdrawn. This means you have the option to withdraw only as per your requirement and repay a comparatively smaller amount.

 

Calculate Your Personal Loan EMI     Check your Personal Loan Eligibility

Transfer your Home Loan and Get Exciting Interest Rates and Gifts

Transfer your Home Loan and Get Exciting Interest Rates and Gifts

This is the perfect time to apply for a Home Loan as Bajaj Finserv is back with a special flash sale on Home Loan Balance Transfer. This limited period offer will last from 20th to 26th March and help you achieve the elusive milestone of availing better rate of interest and services on your existing Home Loan.

An Offer You Cannot Refuse

Bajaj Finserv has come up with two amazing offers on Home Loans:

  • If you apply for a balance transfer that is greater than or equal to Rs.30 lakh, you will get a Tanishq voucher worth Rs.15,000.
  • If you opt for a loan amount between Rs.20 to Rs.29.99 lakh, you will get a Tanishq voucher worth Rs.10,000.

Buying a home is one of the most important decision in your life, and you should take extreme care when it comes to applying for a Home Loan as you don’t want a loan that puts unnecessary strain on your finances. And that’s a good enough reason to opt for a Home Loan from Bajaj Finserv.
Bajaj Finserv Home Loan comes with a number of handy benefits like instant approval, which means your application will be processed and approved within 5 minutes. The loan also comes with benefits like 3 EMI free months, so that you get some time to divert your funds towards setting up your home and plan your finances better.
If that hasn’t convinced you, wait till you hear about some of the other customer-friendly features offered by Bajaj Finserv. read this post: Why should you be choosing a Home Loan Balance Transfer

Easy Approval and Disbursal

Bajaj Finserv lets you apply for a Home Loan online without leaving the comfort of your home or office. If you fit the eligibility criteria , your loan will be approved within 5 minutes and their representative will get in touch with shortly after that.
Also, if you have used your own funds to purchase a house in the last 12 months, then you can opt for the refinance option offered by Bajaj and avail a loan amount that’s less than or equivalent to the registered value of your property.

Transform your Home to the Home of your Dreams

When you’re buying a new home, you don’t just think about the cost of the house, but also the home improvement charges. For example, you might want to repaint the entire house or buy some new furniture. Bajaj Finserv understands these needs and hence offers a customer-friendly Home Loan deal. So, if you’re buying a ready-to-move-in property, you can also get an additional amount which can be used for home improvement. This saves you from the trouble of applying for another personal or home improvement loan.
This amazing offer is valid only from 20th to 26th March, so hurry before it’s too late!

Apply for Home Loan Online Check your Home Loan Eligibilty

An exhaustive guide to personal line of credit

An Exhaustive Guide to Personal Line Of Credit

Are you looking for a Personal Loan but are afraid of the massive monthly pay-outs? There’s some good news for you. If an easier and more affordable way of repayment tops your list of loan features, a personal line of credit is a good bet. If your personal line of credit application is approved, you are eligible to receive a loan for a pre-decided lump sum amount for a fixed tenure. During the tenure, you are free to withdraw as much as you require from your personal line of credit account and pay interest only on the sum withdrawn every month. Once your needs are met with, you will have to pay back the loan when your loan period expires.

  1. How does the personal line of credit work?

Let us assume that you borrow a sum of Rs.5 lakh over 12 months. If you withdraw Rs.2 lakh in the first month, you pay interest only on Rs.2 lakh every month. Five months later, if you withdraw Rs.2.5 lakh, you pay the interest for Rs.4.5 lakh every month hereon. At the end of the 12th month, you pay back the sum borrowed by you, which amounts to a total of Rs.4.5 lakh.

  1. Five features that make personal line of credit a popular financing option today
  • Your convenience first: At a time where people struggle to pay the steep Personal Loan interest rates, a personal line of credit facility puts your needs first. It is one of the most convenient and hassle-free ways you can opt for to get a Personal Loan.
  • No unwanted financial burdens: As you end up paying a Personal Loan interest rate only on the portion of funds you borrow, the monthly payments are low. This helps you manage your funds better.
  • A simple and speedy process: A simple and easy online process means that you no longer have to stand make multiple visits to the bank or other lender to get your documents in order. You can apply for a personal line of credit online at the click of a button!
  • Stay financially secure: By only withdrawing what you need and paying interest on what you use, a personal line of credit lets you manage your funds in a smooth and resourceful manner.
  • Pay as you go: You can prepay your loan amount before the full and final payment is due, without paying any penalty charges.

  1. Why a personal line of credit is a lifesaver:
  • Solve your cash-flow woes: if you own a business and have a cash-flow problem, the personal line of credit is your friend. When you apply for a personal line of credit, you no longer have to worry about making last-minute investments to keep your business steady and profitable.
  • Medical needs: Medical emergencies crop up when you least expect them to. A personal line of credit can help you pay for such expenses, whether you need the funds right before or after a serious medical procedure, without the hassle of any back and forth processing or additional documentation.
  • Emergencies: If you owe money to someone or are in a financial crunch, a personal line of credit can get you out of it right in time. It is cheaper than a credit card cash advance and easier to avail of than a Personal Loan with collateral requirements.

 

  1. The many benefits of availing a personal line of credit:
  • Interest rates are lower: Unlike a Personal Loan where you pay interest on the principal amount irrespective of usage, in a personal line of credit, you only have to pay the interest on the amount you withdraw which is significantly low.
  • Smaller monthly installments: Since you don’t start paying interest charges until you use the loan amount, the installments are a much smaller amount based only on the usage.
  • Flexibility: You are the decision maker when it comes to a personal line of credit. You have the right to decide the amount you would like to withdraw and when you want to do it.
  • No collateral: A personal line of credit is one of the very few loan options out there that requires no proof of your assets and no collateral against the borrowed amount!
  • No limits and no hidden costs: You don’t have to pay any fees for the withdrawals you make during the duration of your personal line of credit. There are no limits on the numbers of times you can make withdrawals.

Instant online access: Lenders such as Bajaj Finserv give you the flexibility to access an instant online facility to part prepay and withdraw (drawdown) your personal line of credit.

 

  1. How to apply for a personal line of credit?

To avail of a personal line of credit from Bajaj Finserv, you just have to fill up a basic form online with your personal and demographic details. Below are the four steps you must know about:

Step 1: Fill-in all details and submit the form online

Step 2: Get an instant approval. Select your required loan amount and tenure

Step 3: A representative will get in touch for document collection

Step 4: Money will be credited to your account!

Want to apply for a personal line of credit offline? You can do so either by calling on the toll free number 18002660635, sending an SMS with the word “SOL” to 9773633633 or by giving a missed call on 9211175555.

 

  1. Your checklist of mandatory documents

The primary Personal Loan eligibility criteria for a personal line of credit is that you should be a salaried professional between 25 and 58 years of age.

Following are the documents required for a personal line of credit are:

  • Salary slips of the past two months
  • Salary bank account statement of the last three months
  • Employment proof (such as your employee ID card)
  • Identity proof
  • Address proof

 

  1. Find out if you are you eligible for a personal line of credit

You can find out whether you are eligible for a personal line of credit by filling in a basic form using Bajaj Finserv’s Personal Loan Eligibility Calculator. It can help you effectively plan the amount you want to apply for using this calculator.

It’s very easy to use the Personal Loan eligibility calculator. All you need to do is enter few details such as your date of birth, your current city of residence, your business /employer name, monthly income, details regarding any existing loans and EMIs. Once you do this, click on the ‘Check your eligibility’ button. The Personal Loan eligibility calculator will use the information provided by you to run them against Bajaj Finserv’s Personal Loan eligibility criteria and inform you of the loan amount that you are eligible for.

You can fill up the form to check Personal Loan Eligibility here

  1. In conclusion

Whether you are short on funds to buy your dream home or want finance to buy the latest car, you can avail a personal line of credit for all your needs. No need to fret over high interests and steep charges on EMIs! Simply opt for a personal line of credit that works according to your convenience and does not damage your savings.

Lenders like Bajaj Finserv offer attractive financial benefits on their personal line of credit facility, such as no withdrawal charges, part-prepayment option and flexibility to convert to a term loan.

Check out Bajaj Finserv’s personal line of credit facility today! Click here.

PL vs COL

  1. How to apply for a personal line of credit?

To avail of a personal line of credit from Bajaj Finserv, you just have to fill up a basic form online with your personal and demographic details. Below are the four steps you must know about:

Step 1: Fill-in all details and submit the form online

Step 2: Get an instant approval. Select your required loan amount and tenure

Step 3: A representative will get in touch for document collection

Step 4: Money will be credited to your account!

Want to apply for a personal line of credit offline? You can do so either by calling on the toll free number 18002660635, sending an SMS with the word “SOL” to 9773633633 or by giving a missed call on 9211175555.

 

  1. Your checklist of mandatory documents

The primary Personal Loan eligibility criteria for a personal line of credit is that you should be a salaried professional between 25 and 58 years of age.

Following are the documents required for a personal line of credit are:

  • Salary slips of the past two months
  • Salary bank account statement of the last three months
  • Employment proof (such as your employee ID card)
  • Identity proof
  • Address proof

 

  1. Find out if you are you eligible for a personal line of credit

You can find out whether you are eligible for a personal line of credit by filling in a basic form using Bajaj Finserv’s Personal Loan Eligibility Calculator. It can help you effectively plan the amount you want to apply for using this calculator.

It’s very easy to use the Personal Loan eligibility calculator. All you need to do is enter few details such as your date of birth, your current city of residence, your business /employer name, monthly income, details regarding any existing loans and EMIs. Once you do this, click on the ‘Check your eligibility’ button. The Personal Loan eligibility calculator will use the information provided by you to run them against Bajaj Finserv’s Personal Loan eligibility criteria and inform you of the loan amount that you are eligible for.

You can fill up the form to check Personal Loan Eligibility here

  1. In conclusion

Whether you are short on funds to buy your dream home or want finance to buy the latest car, you can avail a personal line of credit for all your needs. No need to fret over high interests and steep charges on EMIs! Simply opt for a personal line of credit that works according to your convenience and does not damage your savings.

Lenders like Bajaj Finserv offer attractive financial benefits on their personal line of credit facility, such as no withdrawal charges, part-prepayment option and flexibility to convert to a term loan.

Check out Bajaj Finserv’s personal line of credit facility today! Click here.

Apply for Personal Loan Online     Check your Personal Loan Eligibility

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