21st century consumers in
India have seen Banks and Non-Banking Finance Companies (NBFCs) in India offer
a wide range of loans. Never before has access to loans been as easy.
Several recent developments in banking infrastructure (coming of age of the credit
bureaus and increasing ease of cheque settlements across locations) are aiding
the ease of availability of loans. If we classify loans based on the purpose
for which money is being raised, there are at least the following:
·
Housing Loans to fund the purchase and/or construction and/or repairs and
renovation of a house along with the land surrounding it or even the purchase
of a flat in a residential apartment.
·
Commercial Property Loans to fund the purchase of immovable property for commercial
purposes.
·
Car Loans (also known as Auto Loans) to fund the purchase of a new or
a used car.
·
Multipurpose Loans where the loan amount can be used for any purpose. Most typically,
loan amounts greater than Rs 10 lakhs are either used for funding a business
(popularly called Business Loans) or for funding higher studies of children.
Multipurpose loans for amounts less than Rs 5 lakhs are often used for funding
wedding expenses (own or sibling) or for funding an overseas holiday. More
importantly multipurpose loans may be further classified based on the
collateral offered.
1.
Personal Loans : These are completely unsecured loans (meaning no collateral has
to be provided by the borrower). These attract high rates of interest which
banks are known to negotiate for customers matching their target profiles.
2.
Loan Against Property : The collateral pledged here is an immovable property (either
residential or even commercial). These are cheaper than unsecured loans since
the bank perceives a lower risk, but they are costlier than Home Loans as the
purpose of using money is an unknown
3.
Loan Against Security : The collateral pledged here is a financial asset such as stocks/
bonds/ fixed deposit
4.
Loan Against Gold (also known as Gold Loans)
: The collateral pledged here is gold jewellery.
ApnaPaisa advises consumers to
borrow responsibly. It is important that we remember that a loan taken is the
same as giving the bank a share of our future income.
Borrowers who experience a
difficulty getting a loan because of age, income or credit score can still
avail of Gold Loans and Loan Against Security.
On the other hand, in case of a
personal loan, the bank is placing its entire bet on the future income of the
borrower so these loans are obviously not available to applicants whose age or
income profiles don't conclusively prove the potential to repay.
How does ApnaPaisa help loan-seekers?
Simply put, the ApnaPaisa
platform helps consumers looking for loans in the following five ways:
1.Generating Choice
The first thing about rates and
charges is that they can always be negotiated. And a skillful negotiator can
also negotiate the terms once he senses that the bank is desperate for his
business. But the key to getting a great deal is to be in the driver's seat.
For that, you need to have a choice of banks who are queuing up to offer you a
loan.
With ApnaPaisa's ever expanding
network of over 1,200 banks and distributors spread across the country, we
believe that whatever be your profile you will certainly not get more choice if
you apply on any single other platform. In fact, it is our mission that if your
loan can be done on the terms desired by you in India it should be possible to
be done through the ApnaPaisa network.
If you directly want to apply and
do not have the time to do a comprehensive research at this point of time, you
might find these pages useful:
Apply for a Home Loan
Apply for a Personal Loan
Apply for a Loan Against Property
2.Calculators to aid
decision making
Much before we choose to apply,
we want to know some basics. For instance, what is the maximum loan amount am I
eligible for? Or what EMI will I have to pay and for how long? Or if I have an
existing loan, should I pre-pay it or even transfer the balance? We believe
that our easy to use calculators help answer these and other equally relevant
pre-purchase questions.
3.Rate Charts to make initial
comparisons
Another pre-purchase question
that we seek to answer is what are the typical rates in the industry today? Or
which bank will offer you what rate and levy what charges? While it is
extremely important to note that all rates and charges that are published by
banks (even on their own websites) can be negotiated to a certain extent. But
most of us want to get a broad idea of current rates and charges even before
applying. Which is why, weve built a host of comparison tables for any given
profile that you may use as ready reckoners.
4.Product Guides
Our Product Guides explain the
typical loan application process, the eligibility criteria, the documents
required, the typical associated costs (in addition to the interest charged),
tax implications (if any) and negotiating tips so that you can get a better
deal than most others.
5.Expert Advice
In case you still have a question
that has been left unanswered, you have the option to post it for free on the
ApnaPaisa Facebook page. While we cannot promise that we will be able to answer
all questions posted here, we will certainly make our best effort.
At this time we are considering
the possibility of expanding our expert team so that we can offer advisory
services for a fee where we will be able to guarantee a response within two
business days.
Should you be interested in such
services, Please visit Allindiayellowpage.com
to know detail information about banks and loans you are looking for