6 facts you must know before applying for a Joint Home Loan

A joint home loan is simply a loan that you apply for by adding an additional borrower to your loan application. The benefits of a joint home loan are much greater than that of a normal home loan. Not only does it allow you to take a loan of a higher amount, it also ensures certain tax benefits.

However, before applying for a joint home loan, you need to know how to maximize your benefits without facing any problems.

Who is a Co-applicant?

A co-applicant is someone who shares the responsibility with you in taking the loan and repaying it on time. Your co-applicant can be your spouse, sibling, or your parents. Financial institutions like Bajaj Finserv, sanction joint home loan with brother or joint home loan with spouse, especially when they have individually earned incomes. A co-applicant cannot be a minor or anyone who does not have blood relation with you. Most banks also do not approve joint home loans with friends. In case of joint ownership, lenders insist that all the co-owners of the property must be co-applicants.

Joint Home Loan Eligibility

One of the important benefits of taking a joint home loan is that you have a higher chance of getting the loan sanctioned. While applying for a joint home loan, you should include the income details of your co-applicants in the joint home loan declaration form. The bank will evaluate the aggregate incomes of all the applicants, allowing you to avail a higher loan eligibility value. However, most banks are very specific about computing the loan eligibility. Your total income is valued together, only if the co-applicant is your spouse, parent, or sibling. If the co-owner is any other relative or friend, their income cannot be counted for raising the loan value.

Tax Benefits

A joint home loan allows you to enjoy certain tax benefits. Under 80C of the IT Act, a joint home loan gives each co-applicant individual tax benefits. The Act empowers both the applicant and the co-applicant to get tax rebates of up to INR 1.5 lakh for principal repayment. Under section 24 of this Act, applicants also get a rebate of up to INR 2 lakh on interest payments.

Required Documents

The documents required for joint home loan application are the same as those needed for normal home loans. The only difference is that co-borrowers have to submit the documents individually. Apart from the documents related to the property, lenders also ask each applicant to produce their address proof, income proof, Permanent Account Number (PAN), bank statement, and proof of age, while applying for Joint Home Loan.


Your CIBIL score is an important factor, when banks consider joint home loans. It is essential that both the applicant and co-applicant have a good CIBIL score . The CIBIL score ranges from 300 to 900, in which 900 is considered to be a perfect score, and any score ranging from 300 to 699 is considered as a bad score. If one of the applicants has a bad score, most banks will not be ready to grant eligibility for higher loan amounts.

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Home Loan Moratorium Period

Moratorium Period Meaning – All You Want to Know About Moratorium Period

There are a few terms used in real estate and banking which are difficult to understand for the masses especially in the case of Home Loans. Therefore, let us look into the meaning of Home Loan moratorium period and understand how it is connected with your Home Loan and your situation.

Moratorium Definition:

A moratorium period is the duration in the loan term when the borrower doesn’t have to pay any money i.e. no repayment or EMI. It is the waiting time before the repayment of the EMI begins. This tenure starts with the date of disbursement of loan. However, even though the borrower is not required to pay EMIs, the outstanding balance continues to incur interest. In a common man’s language it is the holiday period on the timeline of your repayments.

The moratorium period ensures that your repayments on your Home Loan start after you have had some breathing space. Thus, you actually get some grace time.

What is a Home Loan Moratorium Period?

Say, you have applied for house loan and the bank sanctions the loan for its construction. During the Home Loan moratorium period, you will be granted a grace period for your repayments. You will not pay the EMI for a certain period of time.

Some good lending organizations will provide a longer moratorium period in order to give value to their customers. For instance, the Bajaj Finserv Home Loan Moratorium Policy provides a 3 month EMI grace period to help manage / plan monthly expenses and give a cushion to the customer to plan his finances. If the customer is a business person, then a 3 month EMI holiday will help in cash flow planning and will provide an opportunity to reinvest the same in his business.

How Moratorium Period is Connected with Home Loan?

Consider this example of a Home Loan moratorium period: Let’s say your Home Loan is for INR10,000,000.00 with 240 months at 10.40% to repay with an EMI payment amount of INR 99,167. You further choose to opt for an EMI holiday scheme from Bajaj Finserv.
Well, the Intelligent Home Loan allows you to take a holiday! You get 3 months off wherein your EMI eventually becomes INR102,154 for 237 months. Can you use your 3 months smartly? Of course you can! You can use the money for a variety of different responsibilities such as family care, student loan payoffs, reinvest in your business, vacation expenses, credit card pay offs, or your good old financial planning for the rest of the year.
What really happens here is that while you take 3 months to accumulate your finances and/or get yourself in shape for repaying the Home Loan, the housing loan interest you were to pay within the 3 months gets added to the principal amount and you start paying from the 4th month.

Loan Servicing in a Moratorium Period

Your lending institution can provide you with a moratorium period Home Loan calculator to get your figures right. You can also avail the same online. The terms & conditions on servicing of loans in the moratorium period vary from bank to bank. If you are thinking of taking a Home Loan then it is advised to sit with the respective bank authorities and discuss the complete Home Loan procedure. How much interest will be incurred, what will be the moratorium period of your Home Loan and how you can utilize that time period in repaying the EMIs are all very valuable to your financial plans as a Home Loan borrower.

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5 situations to avoid using your Credit Cards in

Having a credit card can sometimes pave the way for several unnecessary expenses, which could leave you incredulous when the time comes for you to repay them.

Read on to find out when you should not use your credit card so that you don’t to regret your purchasing decisions.

  1. Using Credit Cards to Cover Your Daily Expenses

    This is one of the most common mistakes everybody makes. While this isn’t such a bad move altogether, it will certainly be a burden on you in the long run as regular usage may result in you going over your budget and maxing out the card. So always make sure that you make a budget and adhere to it. Make calculated buys to help with your payments. Lenders like, Bajaj Finserv, offer EMI calculators to help you plan your repayment schedules.

  2. When You are Close to Your Credit Limit

    Maxing out your credit card is probably one of the worst possible mistakes you can make in your financial life because this can have an adverse effect on your attempt to improve your CIBIL scores. If you are looking for a loan due to a monetary emergency, your spending history with your credit card could get your application rejected.

  3. Shopping for Reward Points

    Credit points are one of the most popular reasons to use your credit cards, but many schemes are usually quite unnecessary. There is a strong chance that you will have spent more money than you had to, just to earn points that won’t offer much help in the long run. If you get 1 point for every hundred rupees you spend, and you need to rack up about 500 points to get rewards of up to INR 1000, the interest charged on your transactions will far exceed the credit rewards you will be offered.

  4. Paying off Another Card’s Debt

    If you have an old card with a little debt and you think ‘what’s the harm in clearing the debt with a new card?’ Couldn’t hurt, right? Wrong! While consolidating your debt sounds like a great plan, it isn’t good news for your monthly credit report. Making a habit out of doing so will sabotage your finances. If you need to pay off a loan, NBFCs like Bajaj Finserv, can offer personal loans with online approvals within minutes.

  5. When You Don’t Have a Plan

    It’s one thing when you use your credit card when you know exactly what you are doing with it and how you will repay the debt. It’s completely another when you don’t have a clear-cut plan to get rid of the debt. So, when you are stuck in such a situation, keep your card in your wallet and resist temptation.

    Having a credit card can result in you making a lot of impulsive buys, which is why you need to exercise a bit of self-restraint and be a responsible adult while using it. Try to use it only when the pros outweigh the cons. If you do have to opt for a credit card, choose one with good interest rates and rewards. Several financiers like Bajaj Finserv, offer 5 reward points for every INR 100 you spend.

What happens when you default on personal loan

Personal Loan Defaulters Beware

Certain eventualities and dispositions often hamper an individual from maintaining a regular and a healthy financial record but let us explore what happens when you default on a Personal Loan. Firstly, you are immediately termed as a “defaulter” and the implications on your credit profiling are huge. However, you don’t have to remain a defaulter all your life and hence we shed light below on various ways to rectify your situation.

What Leads to Defaulting?

Personal emergencies, loss of job, death, company going bankrupt, accidents and various unpredictable calamities can lead an individual to defaulting on a Personal Loan. In such cases if the bearer is uninsured or hasn’t left equivalent funds to tide over the situation, repaying the Personal Loan is impossible. However, it is important to note that the biggest misconception in deferral payments is the panic factor that creeps in with the failure of repayment. Amidst half known facts, the defaulting individual typically ends up worsening the situation.

Basics of Dealing with a Personal Loan Default

A lending institution like Bajaj Finserv usually provides a buffer time of at least a month or two before beginning the process to recover funds on a Personal Loan. However, reminding the customer to keep a good track of his or her credit rating is entirely at the discretion of the lending clubs. Following some simple steps while dealing with a Personal Loan deficit can make the bearers life much easier. For example, as soon as you are aware of your situation the first step would be to inform your lender and ask for their understanding.

How to Manage Personal Loan Defaults?

There are some key aspects that the bearer must keep in mind to rationally resolve the issue of delay and lapse.

  1. Clear you intentions: The bearer must inform the lending club about the situational crisis and the reason for the delay. A workable and empathetic option can be charted only if the bearer is able to prove his intentions to repay. Most banks are empathetic if the bearer genuinely ascertains their willingness to pay. Subsequently, the bank will also make provisions to aid the bearer and will withhold the issuance of any such statement in their documentation.
  2. Restructure the loan: Banks have the provision to help you restructure the loan by reducing the EMI amount and increasing the tenure. But such provisions can be accessed only on the basis of the severity and genuineness of the situation. In this duration, if the bearer feels that things have streamlined at his/her end, then it is also possible to negotiate with the bank for a higher EMI and close the loan sooner than planned.
  3. Deferring the payment: A temporary relief can be sought from the bank where in both the parties agree to withhold the payment for a specified duration. The lending club does impose a penalty for this duration but then once things are settled, the bearer can continue to pay off his loan as per the original time frame decided upon with the lending club.
  4. One time settlement: In case of uncertainties, you have the option to settle your outstanding Personal Loan amount by making a one-time settlement. The lender can waive off certain charges from the total amount payable and will offer a one-time payment for the purpose of settlement. In case of aggravated financial instability, the bearer will have to file for bankruptcy and will have to free himself from the loan commitment.
  5. Conversion into secured loans: Since a Personal Loan is an unsecured loan, lending clubs tend to be more agile and impromptu in recovering. By offering a security, the bearer can win the lender’s trust and can thus bring down the rate of interest for the EMIs while rescheduling.

Consequences of Defaulting on Personal Loan

The disadvantage of missing an EMI can weigh heavy on your credit history and implies a risk of default on Personal Loan. Some consequential actions are elaborated below:

  1. Deferring a payment will invariably result in surplus penalty charges being levied on the amount that has to be paid. These are additional to what was actually promised to the bank in the original contract.
  2. Delays have a direct impact on your credit history. The credit report holds details of your delays thus projecting you as a borrower with low credit rating.
  3. Credit repayment delays directly correlate to problems in securing loans in the future. This can result in getting a loan at an exceptionally high rate of interest.
  4. Legal hassles often erupt as a result of non-payments on a Personal Loan as the lending institution will most definitely walk the extra mile to ensure the repayment of their debt.


It is essential that once an individual secures financial aid from a lending institution, they must respect their commitments in order to repay it. Consequently, defaulting on a Personal Loan is not as dreaded a process as it seems and if the borrower follows the correct procedures then he will only secure the lender’s goodwill and good faith.

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Credit score explained: Importance of a good CIBIL score

When you apply for any loan, be it personal, home or business, the first thing the lender looks for is an excellent Credit Score. Your credit score plays a major part in getting your loan approved. Now, you might be wondering, what is a good Credit Score?

A Look at the Basics

A credit score is a numerical representation of your creditworthiness, which is calculated based on your Credit Information Report (CIR). A CIR is an individual’s credit payment history across different loan types and credit institutions over a period of time. In India, the Credit Information Bureau Limited (CIBIL) is responsible for creating a CIR for each individual. A good CIBIL score, which is another name for credit score in India, can do wonders for your loan applications and hence should be something to watch out for.

As per CIBIL, scores ranging from 700 to 900 is a good Credit Score range, and 900 is considered the best possible score. You should also ensure that the Credit Score calculations are done based on factual data so as to provide a true picture of your credit standing.

As per CIBIL, scores ranging from 700 to 900 is a good Credit Score range, and 900 is considered the best possible score. You should also ensure that the Credit Score calculations are done based on factual data so as to provide a true picture of your credit standing.

CIBIL Score for Personal Loan

Personal loans are mortgages you take to meet your monetary requirements like purchasing a new TV, going on a vacation, etc. The average credit score for getting a personal loan approved would need to be between 650 to 750. To make sure that your credit score stays in the required range, make a concentrated effort to keep your credit transactions in check.

Read Blog : A Good CIBIL Score Can Help You Get a Better Deal On Your Personal Loan

CIBIL Score for Car Loan

Planning on purchasing a new car? Before you start looking for sources to finance your purchase, ensure that you have an excellent credit score. Generally, lenders look for a credit score of above 700 points before approving your car loan application.

Average Credit Score for Home Loan

Financial service providers are usually the most stringent while approving home loans owing to their burgeoning demand. A good credit score range for home loans would lie somewhere between 750 to 800 points. Banks like Bajaj Finserv offer Home Loans, with benefits that include a low interest rates and processing fee when you apply online.

Now that you have a clear idea about the different credit score requirements for varied types of loans, let’s delve into the credit score calculation process.

In India, there are various factors which influence your credit score such as payment history, outstanding debt, length of credit history, number and types of loan accounts, utilisation, applications for new credit etc. However, it is important to note that each member i.e. Banks, NBFCs etc. (which elect to use the CIBIL Score) has its own benchmark that constitutes a “good” score and this varies from bank to bank.

Once you have a respectable credit score, you can opt for the varied financial services offered by banks and institutions like Bajaj Finserv, these include Personal Loans, Home Loans, Business Loans, Gold Loans, and more.

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Myths about your Credit Card that can get you into trouble

The credit card is the most popular means of credit in the world; if ever there’s an emergency, your credit card is there to help. But before getting a credit card, it’s important to find out about the best deals on the market. Non-banking financial institutions like Bajaj Finserv provide credit card options that come with a ton of benefits.

Due to their widespread popularity, users often have many misconceptions about credit cards in general. Below are some of the popular credit card myths debunked.

Myth #1: The CVV Number Is the Only Important Detail

This is a popular misconception that many entertain. If nobody knows your CVV number, then your card is not necessarily safe. Some websites don’t ask for your CVV number when you make an online transaction; all they need is the expiration date, card number, and name of the card holder. This essentially means that fraudsters could use other information about your credit card in order to rob you. It’s important to maintain the privacy of each one of your credit card details, and not just the CVV number.

You can, however, scratch off the CVV number at the back of your card for safer offline transactions, provided you remember it. Also ensure that you observe the process when your card is being swiped.

Myth #2: Carrying Balance on My Card Will Help My Credit Score

This is one of the thou-shalt-nots in the list of credit commandments. Carrying a debt balance on your credit card and paying the minimum due each month is not going to improve your credit score. This is one of the major credit card myths you should be careful about. In fact, this practice may completely ruin your credit score.

When you can’t afford to pay your bills in full, then you can choose to pay back the minimum amount. However, if you keep paying just the minimum due for a continued period of time, then you risk damaging your credit score. This is because your credit card issuer assumes that you’re struggling financially or that you’re simply irresponsible when you don’t make full payments on time.

Myth #3: My Signature on the Back of the Card is Not Critical

Contrary to popular notions, the signature on the back of your credit card is quite important; if there isn’t any signature, then the card may simply deemed invalid. The signature is present so that when you’re purchasing a product, the merchant can cross-check your signature on the card with that on the bill. Most merchants ignore this rule, and so do most consumers. The signature can help prevent a lot of confusion even if you lose your card; this is one of the credit card facts that you need to keep in mind.

Myth #4: I Need a Credit Card to Earn Rewards

If you’re getting a credit card solely for the rewards, think again; you get rewards only if you pay off your dues on time. Financial firms introduced the reward system when they realised that users could not pay their credit card debts on time. Lenders usually end up making more money off the reward system than customers. You can consider using an EMI card from Bajaj Finserv as it provides a better reward point system.

Myth #5: My Credit Card is Safe as it Cannot be Duplicated

Your credit card is made with a specialised magnetic strip that stores valuable information. When you swipe your card, data is extracted from the magnetic strip so that your payment can be verified. Now this information can be cloned in order to make a duplicate card, thereby putting your account at risk. In order to avert this threat, you can choose a credit card issuer like Bajaj Finserv, who provides an additional layer of security. Select from either the platinum card or the world credit card, depending upon your requirements.

By knowing these credit card myths, you can avoid making the common mistakes that card holders frequently make.

Best Home Loan Repayment

Pick The Best Home Loan Repayment Option

With escalating real estate prices, Home Loans are becoming a substantial source of finance for home-buyers looking to purchase their dream home. As each homebuyer has a different financial background and requirement, lenders offer them a variety of options to repay their loans.

Before you opt for one, you should figure out the best Home Loan repayment option for you. Additionally, opting for the right bank and Home Loan plan is also instrumental. Financiers like Bajaj Finserv offer 3 EMI free months on Home Loans to facilitate ease of repayment. You can also apply online for your Home Loan to enjoy easy and fast processing. With Bajaj Finserv you get one of the lowest Home Loan interest rates with 5 minute approval facility on online applications.

Usually, Home Loan repayment in India boasts of customised options that are based on a borrower’s capacity to pay EMI at different stages throughout their life. Factors considered while deciding a borrower’s repayment option are age and monthly income of the customer, stability of employment and any other debts that are being serviced by them. Let’s explore the different types of Home Loan repayment options that are popular in the market.

Different Types of Home Loan Repayment Options:

Step-up Repayment Plan

This repayment plan is for people who have just started their careers. Here, the bank schedules the EMIs in a proportionate accelerating pattern, in accordance with the assumed increase in the customer’s income. A step-up loan helps the customer with an affordable EMI during his early job years.

Step-Down Repayment Plan

This repayment plan is also called Step-down Repayment Option and is a customised plan for individuals who expect a decrease in income during latter half of the loan tenure. This plan is beneficial for applicants who will retire closer to the end of the loan tenure. Here, the EMI subsequently decreases in proportion to the reducing income of the buyer.

This plan also helps youngsters by offering them an option to combine the income of their parents with their own income to avail a higher loan.

Tranche EMI for Under-construction Property

Tranche EMI is a repayment option available only for very large loan amounts. Here, the loan is disbursed in instalments over a long period of time.

Normally, the customer will have to pay a pre-EMI (interest for the amount disbursed) till the full loan amount is disbursed. Hence, this plan is offered to customers who can start paying EMIs soon after the first disbursement. As compared to other plans, the loan repays faster with this repayment option.

Balloon Payment

A balloon payment is a large payment made either at specific intervals or at the end of a long-term loan. This repayment option is vaguely similar to a step-up repayment plan, but the major difference is that more than one-third of the loaned amount is paid in latter half of the tenure. This scheme is advantageous only if the financial requirement of the customer is high.

Just knowing how to choose best Home Loan repayment option isn’t enough, choosing a suitable Home Loan plan is equally important. Consider an option that provides ease of repayment with a few extra incentives. Home Loan scheme offered by Bajaj Finserv proposes benefits like nil foreclosure charges and prepayment facility..

Fixed Interest Rate:

A ‘fixed’ interest rate is one that remains consistent throughout the entire tenure of your loan. There a few variations of fixed Home Loans available, offered by banks and other financial institutions. Once such option is a semi-fixed type, wherein the interest rate remain static for 2-5 years, after which the current floating rate of interest is applicable.

Though this type of loan is appealing, there are some drawbacks. Fixed loan schemes are generally priced 1-2% higher than floating loans. Additionally, some lenders may demand additional payment is you decide to foreclose on your Home Loan. Others, like Bajaj Finserv, offer low or free foreclosure options, which allow you to get out of the agreement without incurring additional debt.

Floating Interest Rate:

This is one of the most popular Home Loan options for first time buyers. In this type of scheme, the rate of interest varies according to the economic climate. The interest rates are dictated by the PLR system and the Base Rate System, used by financial institutions and banks respectively.

When there is a dip in the market, there should also be a corresponding decrease in interest rates.
These variable Home Loans are the most sought-after Home Loan options in India as they have viable prepayment options, which allow you to finish repaying the full amount faster without incurring any penalty.

What You Should and Shouldn’t do

If you prefer paying off your debt faster, these do’s and don’ts of Home Loan prepayment should make for an interesting read.

Should You Prepay?

The Home Loan prepay option is an ideal choice if you want to decrease the tenure of your loan. The reason this facility is popular is because, in the long run, the amount you are charged as interest decreases if you pay a lump sum. The earlier you pay, the higher your savings

If you do decide that prepaying is your best option, then the below pointers are important to keep in mind.


  • Prepay Without Recalculations

    Do the math and see if making prepayments is beneficial to you. Not all cases result in you coming out on top, so make sure you do the research before you go through with it.

  • Overlook Tax Benefits

    Repaying a Home Loan makes you eligible for interesting tax rebates for the principal as well as the interest. Again, look into what prepaying would do to those benefits and make a choice based on the results.

  • Prepay Entire Loan

    Don’t take the prepayment route for the entire loan amount. Look at partial payments, till a time when the interest is lesser than the amount it would fetch if invested elsewhere.


  • Pay Early

    The earlier you pay in your tenure, the more beneficial it is to your bank account. The initial EMIs are usually designed to cater to the interest component of a loan payment.

  • Regulate Your EMIs

    When you prepay a loan, then you are given two choices – you can either reduce the EMI and continue with the same proposed tenure after paying, or you can keep the EMI and reduce the tenure. When given this choice, opt for the same monthly payment if you are comfortable with the specified amount. This way, the tenure significantly reduces, which means you will invariably resolve your debt sooner rather than later.

  • Keep Your Documents Ready

    When you’re prepaying a loan, you may be asked to produce an ID proof, address proof, and income proof. Little research on the financier, would list out the documents required.

The Home Loan Prepayment Calculator

Easily accessible on the web, a Home Loan Prepayment Calculator may serve as the best tool for your Home Loan related calculations. By using one, a debtor may gain invaluable insight on important questions like:

  1. Is Home Loan part prepayment a good idea?It is more likely to be a good idea, provided the debtor makes a prepayment off the principal amount during that period of the tenure when he/she is entitled to pay the maximum interest rates. Though the interest rates may differ widely as per the specifications of the loan, most debtors are likely to benefit more if they start the Home Loan prepayment procedure at the earliest possible opportunity.
  2. What are the Current Home Loan Prepayment Rules?This piece of information is indispensable for debtors who have taken, or are willing to take, a Home Loan. A conscious and deep understanding of the specific rules set forth by their respective creditors is of utmost importance in order to be able to abide by the norms of the transaction.Most Home Loans allow the scope of pre-payment; however, it is the discretion of the debtor to be able to judge the value that he/she may attain out of it. The value would differ as per the contributing factors like fluctuating interest rates in the market, current cap on taxable interest charges and the amount levied by the creditors in the guise of a Home Loan prepayment penalty.
  3. What are the pros and cons of prepayment as opposed to regular payment of EMIs?The pros and cons would differ from those that come along with the regular payment of EMIs. Pre- payment is best availed with the intention to decrease the liability and should therefore be done only when a debtor is perfectly capable of doing so.

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Everything You’ve Ever Wanted To Know About Long Term Loans

While some loans take years and years to repay, they also offer the ability to quickly throw your eggs into solid business and investment opportunities. And when dealing with sums as large as those, a smart investor can quickly make good on a loan and rake in piles of profit.

Long term loans come in different types, benefiting different people. Whether you’re an individual looking to buy a home or a conglomerate looking to expand your business, these loans can give you a helping hand. In this article, we will talk about the types of long term loans available and also discuss their importance and problems in detail.

  1. Mortgage Loan

    A loan offered by a bank or financial company to help you buy a house or any other real estate property is called mortgage loan. This loan is popularly referred as home loan and is a typical long-term loan example. Both individuals and companies can use mortgage loans to their benefit. The three basic elements of mortgage loan are the collateral that secured you the loan, the principal and interest amounts, and insurance and taxes.

    When you’re granted the mortgage loan, the home you’re buying is taken as the collateral for the loan. In case you failed to pay your debt, your home will be acquired by the bank as compensation. The total sum you borrowed as a mortgage loan is the principal amount, while the interest amount is the charge for your use of the bank’s money.

  2. Debenture

    Cash loans offered to individuals and companies by banks or other financial institutions are called as debentures. This type of loan comes without the need for collateral. Debentures can be personal loans or business loans depending upon who takes it. In India, a debenture is usually given in the form of a bond, where the borrower signs an IOU to the lender. In this bond, the borrower agrees to pay back the principal amount along with the interest.

  3. Motor Vehicle Loans

    If you’re looking to buy a vehicle, whether it is a two-wheeler, four-wheeler, or heavy-duty truck, you can get a long-term loan for it. You can be a salaried professional looking for a two-wheeler or a transport company looking to buy a couple of lorries, but rest assured that there are banks and other financial institutions ready to fund your purchase.

  4. Educational Loans

    The educational loan is a highly popular type of long term loan in India. After this loan type has come into prevalence in the country, many students have benefitted from it. Usually all national banks are authorised to provide educational loans for students.

    To get this loan, a student must co-apply to the bank with a parent, sibling, or spouse. If the loan is between 4-7.5 lakhs, then third-party security is required. If the loan exceeds 7.5 lakhs, then collateral is required. The repayment of these loans should start after one year from the time the student finishes his or her studies. Any default in paying the debt will affect both the student’s and the co-applicant’s credit history.

Problems And Importance Of Long-Term Loans

Long term loans can lead you into trouble if not managed well. They can affect you both financially and psychologically by being a constant burden on your head. But if you plan well from day one, then long term loans and advances can be a great way to get ahead in life.

In a way, this type of loan is a boon to anyone who dreams big, as you can get a large sum to pursue your dreams without having to worry about your current financial situation. Governments, companies, and individuals all use long term loans to boost the quality of their lives and operations. Since the repayment time is usually more than a year, you can easily plan well in advance to make the most out of these loans.

Some loan providers, like Bajaj Finserv, allow you to obtain finance for two wheelers and three wheelers at especially attractive rates.

Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 6 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Personal Loans, Loan against Property, Small Business Loans, Home loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle refinancing Loans. Bajaj Finance Limited prides itself for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.

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<Click here to check your Home Loan eligibility>>

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