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.

Calculate your Home Loan EMI Apply for Home Loan Balance Transfer

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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Watch out for these 3 Myths about Pre-Approved Loans

Have you been offered a pre-approved loan recently? If so, then you may be one of the few Indians with a clean credit history. When a bank or financial company calls to tell you that you can obtain a pre-approved loan, it means that the lender finds your repayment capacity up to the mark.

But a pre-approved loan may not be what you’re looking for. And if you’re considering one, then you need to keep an eye out for the common misconceptions that credit-seekers usually have with regard to pre-approved loans.

Here are a few myths about pre-approved loans that you need to know about.

Myth 1 – Pre-Approved Loans Have Low Interest Rates

It’s probably the first thing that every tele-marketing executive will try to tell you; that your pre-approved loan comes with discounted interest rates. Most lenders will give you pre-approved personal loans at a rate of interest that’s 1% to 2% lower than what it is for the regular borrowers. For instance, if a bank provides personal loans at a 19% interest rate to regular customers, it may offer pre-approved personal loans at a reduced 17% interest rate to a privileged few.

But that doesn’t necessarily mean it’s the best deal out there. In fact, there may be far better deals out there. It’s important to consider other options as well—such as a loan against fixed deposit or a credit card—before opting for a pre-approved loan.

If you’re seeking financial aid, consider the wide range of products offered by Bajaj Finserv, ranging from home loans to loans against shares.

Myth 2 – Your Pre-Approved Loan is Guaranteed

You may have been offered a pre-approved loan, but that necessarily doesn’t mean that you’ve already been sanctioned one. Although your chances of obtaining a pre-approved loan are quite high as opposed to an ordinary one, there are still a few technicalities that may block your way. This often happens in the case of pre-approved home loans.

If the bank needs documents that you don’t have, then your loan won’t be sanctioned. Even a small discrepancy in your documents may be reason enough for the lender to cancel your pre-approved home loan offer. ‘What is pre-approved home loan?’ you may ask. Well, it’s a secured loan that a bank or financial institution offers to help you build or buy your own home.

Myth 3 – You Get to Choose the Amount You Want

This is another one of the common myths about pre-approved loans. Banks offer pre-approved loans of certain amounts, and this amount is based on your repayment history, account balance, income level and so forth. Although, you’re in a better position to negotiate with the bank for the amount of your pre-approved loan, you also need to remember that you don’t have unlimited leverage. The bank won’t raise your loan amount beyond a certain limit, which may not be what you want.

It’s important to choose a loan that suits all your requirements. Consider a reputed and trustworthy lender like Bajaj Finserv, known for their array of financial products and services.

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<< Click here to Apply for our Business Loans up to Rs 30 Lacs >>

<< Click here to Apply for our Home Loan @9.85%>>

<Click here to check your Home Loan eligibility>>

Pre-approved property loan: The gift that keeps on giving

The biggest challenge associated with acquiring any loan, be it personal or property is the approval process. Most financiers follow a stringent approval policy and verify the borrower’s credibility in every possible way before they sign off on the loan.

A pre-approved loan is the process of getting yourself verified as a suitable candidate for the loan. Once you are approved for a loan, the rest is easy since the lender has already judged your repayment capabilities. There are a lot of advantages of a pre-approved property loan that can make your search for the required funds more fruitful. NBFCs like Bajaj Finserv offer Business Loans with features like online account access and part prepayment facility.

Here’s what your ideal financier would look for, while offering you a pre-approved loan, a pre-approved property loan, or a pre-approved loan against property-

  • Proof of Income: One of the most important documents to verify whether a borrower would repay the loan in time is their proof of income. A genuine document that contains all the necessary details about your source of income and other details will work wonders for getting your loan pre-approved.
  • Proof of Assets: A document that holds a detailed account of all your assets, be it short-term or long-term is also required for the pre-approval process.
  • A Favourable Credit Score: This is something that should definitely be on your radar if you are looking to get a pre-approved loan. A good credit score will boost the lender’s confidence regarding your ability to pay back the loan.
  • Employment Verification: Another important thing to keep in mind while looking for a pre-approved loan is verifying your employment status and providing documents that support the same.

Now that you are familiar with the pre-approval process, let’s take a look at the advantages of a pre-approved property loan:

Helps Find Your Dream House
Most property sellers are particularly strict about the buyer having a pre-approved loan before they even consider selling. Without a pre-approved property loan the sellers won’t take you seriously and might not even show you the property. Get your loan approved and purchase the house you fall in love with without any unnecessary hassle.

Saves Time
Once you have a pre-approved home loan, there are a lot of property buying options open for you and since you know your exact budget, your search can be significantly narrowed down. This not only gets you the best property but also saves the precious time you would have otherwise lost on property-hunting.

Negotiation Prowess
With the confidence you get from having a pre-approved property loan, you can negotiate freely with the buyer, without worrying about losing the property. Once your loan is approved, property sellers are likely to be willing to give you your dream home for less than the list price because you have the financier’s stamp of approval and the necessary finances at your disposal.

Quicker Loan Disbursement
Once the formalities of approval are over, the loan disbursement process doesn’t take too long. Banks will be more willing to offer you a loan if you are already pre-approved, and will quicken the process of sanctioning the loan. This also ensures that you don’t miss out on some great property while waiting for an approval.

Getting a loan approved opens a lot of doors for the buyer and should be a priority for you as a borrower. Financiers like Bajaj Finserv offer Home Loans with part prepayment facility and nil foreclosure charges. You can also opt for a Loan Against Fixed Property by Bajaj Finserv that offers benefits like online account access and Flexisaver facility.

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Avoid making simple mistakes – Find the Best Loan option

Buying a home is one of the most important decisions of your life. It requires meticulous planning and dedication. Any carelessness on your part can result in disaster. There are a number of financial institutions that offer a variety of home loan options. However, since you’re spoiled for choice, picking the right scheme can be complicated. There are several financial institutes, such as Bajaj Finserv, which offer Home Loans at rates as low as 9.85%.

While you are trying to get the best loan deal possible, you need to understand that a sloppy move could lead to a financial crisis.

Here are a few common home loan mistakes to avoid:

Lack of Research

Enjoy window shopping? You will need to do it with home loans, only on a much larger level. Stop relying on friendly recommendations and explore all the different interest rates available to you. Also acquaint yourself with the different fees charged by different banks, such as prepayment fees, processing fees, valuation fees, legal fees, and other hidden charges. This can go a long way in helping you with your investment.

Closing an Old Loan Account

Many financial institutions have access to very little information on you, apart from the few documents you provide them with. This is where old loan accounts come into play. For instance, if you have an old credit card with a clean repayment record maintained, this can help you gain the confidence of your lenders. A clean track record can be taken as proof that you are a reliable and can be trusted with a loan.

Falling Prey to Teaser Loans

Many banks in India have come up with a rather enticing concept called “teaser loans”, where these institutions charge unusually low interest percentages on your home loans for the first few years. These repayments will gradually increase over the course of your tenure. This gives you a false sense of security.

Taking in More Than You Can Handle

You may think that going a little overboard with your loan amount will not matter in the long run. Lenders usually consider the maximum amount based on your income and other liabilities. However, they don’t consider your current expenses. If you have an increase in expenses on a monthly basis, and you have opted for a larger loan, it could result in a financially critical situation.

Buying a New Line Of Credit

You need to understand that incurring fresh debt or taking on any other loans can foil your plans to buy that dream home. This has a direct effect on your loan eligibility.

Setting up a home is a lengthy journey, which financiers like Bajaj Finserv can assist you with, thanks to their easy online approval services. Though you may face a lot of problems along the way, the process becomes much simpler once you understand the mistakes to avoid while applying for a home loan.

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<Click here to check your Home Loan eligibility>>

Pre-Approved Home Loan vs. regular Home Loan

Almost everybody knows that a home loan is a kind of loan that you take in order build or buy a house. So then what is a pre-approved home loan?

A pre-approved home loan is essentially a loan that’s already been sanctioned to you by a financial company. Your lender judges your repayment capacity by looking at your income status, current EMI outflow, payback history and net worth. The lender gauges at this information and then decides to offer you a specified loan amount. Some lenders even provide a discounted rate of interest, often going out their way to offer attractive pre-approved loans to trusted customers.

Let’s take a look at some advantages of a home loan. If you apply online for home loan at Bajaj Finserv, you can get benefits like 3 EMI-free months and a part prepayment facility.

What’s Awesome About Home Loans

Capital Appreciation: Buying a home means that you’re investing in the real estate market, which is known for its steadily rising value. If you take a home loan, it can prove highly profitable in the long run as your house increases in value. You can also rent out your house, charging a higher rental fee every time the prices go up.

Low Interest Rates: You may already know that home loans have lower interest rates as opposed to other kinds of loans. Interest rates on home loans start from 9.75%. If you avail the services of Bajaj Finserv, you can avail home loans at enticing interest rates starting from 9.75%.

Renting vs. Buying: If you decide to buy a home, you take a home loan and pay the EMIs every month. It’s an expensive course of action, but property prices have a tendency to go up. So taking a home loan can be highly profitable in the long run, possibly outdoing a fixed deposit. On the other hand, if you choose to rent a home, the increase in property prices will definitely cause an increase in your monthly rental payments.

Pre-approved home loans are the same type of loans, but instead of you approaching the lender for a loan, the financial firm itself asks you to take a loan. This doesn’t mean that you’re ensured of getting the money, but pre-approved home loans have their own benefits.

Benefits of Pre-Approved Home Loans

Zero-In On Your Home: Lenders usually specify the loan amount when they offer pre-approved home loans in India. Since you know the exact amount, you can eliminate homes that are not within your budget, and narrow down on the most optimum choices.

You Can Negotiate with Your Seller: A pre-approved home loan will make it clear to your seller that you mean business, and that you have the funds to close the deal. This could lead to your seller providing you with added benefits like discounts, or allowing you to move into your new home as soon as possible.

It’s Comforting to Your Real Estate Agent: If you buy a home through a real estate agent, he/she will be more proactive and put in their best efforts. Getting a pre-approved loan means that your agent knows how sure you are of buying a home, and that way he/she is certain of the commission they will receive.

You’ll Get It Quickly: Receiving a pre-approved loan means quicker loan processing. You won’t have to go through every aspect of the documentation process that is involved in getting a home loan. Usually, pre-approved loans take roughly one-third of the time taken by regular home loans. Another benefit is that you can quickly purchase the home you’ve chosen to buy, before it’s sold to another buyer.

Those are the differences that surface when you take a look at pre-approved home loan vs. regular home loan, with pre-approved loans adding on to the benefits provided by ordinary home loans. It’s wise to accurately assess your financial status before deciding on which loan to take.

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5 Business Loan Myths You Should Ignore

5 Business Loan Myths You Should Ignore

Going through a small Business Loan process can be quite taxing and that’s after you finish researching various options to suit yourself and your business. To add to the pressure, there are various myths that surround the sanctioning of a Business Loan. While you run from pillar to post to get your business funded, these myths are sure to give you a false sense of your eligibility for a loan, thus dampening your spirits. Fear not, as we bust the myths and present the facts to save you from struggling, due to the misinformation that surrounds your search for the right Business Loan to fuel your business.

MYTH 1. Approval of Your Application Takes Forever

Unlike common belief, a complete and a compelling Business Loan application will not take forever to be reviewed. While some applications may take time in case the lender decides to probe deeper before accepting or rejecting the application, most lenders do not take too long to revert to consumers. And if you think filling out the application is cumbersome, you’ll be happy to know that some lenders like Bajaj Finserv allow you to apply for a Business Loan with a click of a few buttons online and grant approval as quickly as in a day! It’s time to put aside your worries and apply for your Business Loan now.
FACT: Your Business Loan can get approval in as less as a day!

MYTH 2. New Businesses do not Qualify

While you may think that only successful and already existing businesses qualify for a loan that is just not true. If you’re wondering how to get a loan to start a small business, here’s your answer: Lenders lend money to new businesses too. It is not necessary to have had a business running for a few years or for that matter even a good credit score in order to apply for a loan. However, a lender will scrutinise your personal finances and credit history in order to examine financial security before sanctioning you a loan.
FACT: New businesses do quality for a Business Loan>

MYTH 3. The Best Way to Get a Loan is Through a Bank

While banks are one of the oldest institutions that offer loans, there is an array of opportunities from different lenders today. Funds can be raised through crowd funding, venture capitalists and grants from organisations and institutions, including the government. Non-banking financial corporations such as Bajaj Finserv also offer Business Loans for up to Rs. 30 lakhs. You can get a small Business Loan without collateral from Bajaj Finserv and avail the ease of paying it off in easy tenures at low rates of interest.
FACT: Business Loans may be availed from a host of lenders including non-banking financial institutions

MYTH 4. The Most Important Criteria to Consider is the Rate of Interest

While the rate of interest on a Business Loan is one of the deciding factors, it is not the only important factor. Pay attention to the lender, the tenure of repayment and the terms and conditions of your Business Loan, and be smart about your loan. It is very easy to get duped while applying for a Business Loan. Offering a low rate of interest is one of the best ways used by con artists to lure you into signing up. Make sure you do your background research and compare all the features of various options before finalising on the one you want.
FACT: Do your background research and look beyond interest rates before you finalise your Business Loan

Also ReadInterest Rates on Business Loans: How do They work?

MYTH 5. The Higher the Loan Amount You Request for, the More Chances of Your Application Getting Rejected

If you believe that your loan application will get approved if you apply for a lesser loan amount, you are most definitely wrong. Financial institutions are known to prefer lending higher amounts as it helps increase their profits in the long run. It is important to evaluate the amount you require and take a loan only for that much. Taking a loan over and above what is required will result in payment of unnecessary interest, whereas taking a loan lesser than what you require will result in major compromises in the operations of your business. In a nutshell, your cash flow should be able to cover your loan expenses.
FACT: Your loan amount request has nothing to do with your application being accepted or rejected

With these small Business Loan myths busted, you are sure to be more confident about applying for your Business Loan. Do your research and consider all your options carefully. Choose a lender who offers you a simple application process, convenient online access to your account, a stress-free tenure and an easy and low rate of interest. This will ensure that you are not hassled by the Business Loan, and can instead use it effectively in your business.

Apply for Business Loan Online Check your Business Loan Eligibility

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