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All You Need to Know About Top-Up Personal Loans

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While planning your finances can go a long way in ensuring a timely fulfilment of various funding needs, encountering unexpected expenses is unavoidable. It can further get challenging for individuals who have already availed financing. That’s where my top up loan comes in handy, taking care of an urgent funding need during emergencies. Existing personal loan borrowers can thus avail top-up advances to fulfil their additional financing needs.

Let’s take a look at how beneficial these advances can be,the top up personal loan interest rates, and the eligibility criteria associated with them.

A quick overview of top-up advances on personal loans

Select lenders offer a significant portion of the existing personal loan amount as top-up advances. Financial institutions also provide attractive top up loan interest rates to the applicants.

The interest rates on such additional advances on personal loans are also comparatively low, making top-up loans preferable for customers.

  • Reduced processing charges and affordable rates

Since the applicant is under an existing loan, top up advances bear minimal to no additional processing charges. A new loan, on the other hand, comes with fresh processing charges and a one-time fee. Top up loan interest rates are also cheaper than a new personal loan, making them more affordable than availing a fresh advance.

  • High loan value

Borrowers can avail funds up to Rs.25 lakh over their existing loan amount. A high loan amount can thus be used to meet several emergency funding needs without depleting the savings.

  • Minimal documentation and quick verification

To avail this loan amount, the applicant must be an existing customer of the lender. Therefore, it is likely that the financial institution already possesses almost all the necessary documents. It thus ensures quick verification of a customer’s application for top up loan.

  • No hidden charges

The loan documentation from the financier will list all the associated charges in complete detail. This record of possible expenses makes borrowers aware of the repayment amount they need to meet, and there are no hidden charges to pay later.

The requirement for additional funding: Reasons to apply for top up loans

As Unsecured advances with no restriction to end-use, top up personal loans can be availed for any possible reason.

  • Medical emergencies

With high loan amounts and fast approval, applicants can use these funds to meet any medical emergency conveniently. Therefore, if an existing borrower requires additional funds for a medical emergency,he/she can rest assured knowing that their remedial expenses are taken care of as well with the advance.

  • Home Renovation expenses

Home renovation is one of the most common reasons why borrowers may take top up loans as it involves big-ticket financing. These funds are provided over and above a pre-existing personal loan and can also be used to buy new fixtures and furniture for the property under renovation.

  • Consolidation of existing debts

Managing multiple loans can be cumbersome at times as borrowers need to track individual credits and payment schedules. Top up advances can thus be availed for debt consolidation loan and be beneficial depending on your current financial situation as putting it to such use helps reduce the monthly instalments as well.

  • Big-ticket purchases

Top up loans can also be extremely beneficial when an existing borrower needs to make a new purchase requiring a lump sum payment such as the purchase of high-end gadgets, holiday bookings, etc.

One can also avail a customised personal loan for travel if such a tour involves high-value spending.

  • Increase in liquidity

Keeping more cash in hand gives the freedom to make purchases conveniently instead of opting for a financing facility. Paying money upfront helps in reducing the overhead costs in the form of interest accruing on financing the purchase. 

Also,at times making full payment in cash comes with exciting discounts.

What are the eligibility criteria to avail a top-up advance?

A pre-existing relationship with the lending institution helps while availing a top up on a personal loan. Since the borrowers are existing customers, the lender is most likely to possess the required documents already. 

Some lenders also require borrowers to complete stipulated numbers of EMIpayments to provide a top-up on the existing loan. Being a responsible borrower thus increases the chances of securing additional funds. The applicant’s credit history and repayment capability are taken into account as well.

For instance, lenders like Bajaj Finserv offer top up advances on personal loans with many attractive features to eligible customers. Any existing personal loan borrower can thus avail the advances via quick processing.

They Also provide pre-approved offers to make financing hassle-free and time-saving. Such offers are available on several financial products, such as personal loans, business loans, and credit cards. You can check your pre-approved offer using your contact details only.

The associated flexibility and reduced top up loan interest rates make it preferable over new loans.

Make sure to check your repayment capacity before availing a top-up advance. With quick financing facilities and other attractive benefits, top up personal loans can be of great assistance to existing personal loan borrowers during emergency funding needs.

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Finance

Tips to Help Motorists Secure Auto Insurance Quote Online

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Auto Insurance Quote Online

Car insurance coverage can cover the individual driver, passengers, the other motorist and pay for loss and damage costs in the event of an accident. A car insurance policy is an essential cover in most states. It is essential to shop before securing a cover from any provider because the cost for quotes varies. 

One of the most convenient ways to shop with minimal movements is online. Today, many insurance providers engage their clients online, allowing them to renew expired policies or purchase a new one. You can engage hershey auto insurance on their online platform and see how convenient it is. 

How to get an auto insurance quote 

You can get a free quote by using either of the following:

  • Quote comparison tool
  • Auto insurance broker
  • Direct online quote
  • In-person quote
  • Quote by calling

What next?

All of these methods of acquiring auto insurance quotes are effective n-but may vary in few ways. However, the basic requirements are the same. Make sure you have:

  • Personal information- for the multiple drivers in your household including teenagers. You’ll need to know their date of birth and occupation.
  • Information about the car in question- the model, make, vehicle identification number (VIN), and mileage.
  • Average miles per year
  • Record of your driving history and that of the multiple drivers’ too
  • Updated coverage details

How often should you shop for auto insurance quotes?

Insurance companies are in a competitive field and so quote costs get revised often. Motorists are advised to shop every 12 months when renewing their policy. It is also crucial to shop if you’ve moved to a different location or gotten married.

Comparison helps you find a different rate allowing you the opportunity to make a better purchase. When shopping, compare the difference in the limits, deductibles, and the cover.

The following issues can inform your decision to shop even when your policy runs valid:

  • Change in your marital status
  • Age bracket changes-e.g. from a teen to an adult driver
  • Moving in with family and deciding to combine policies
  • Move to a different location, thus different ZIP code.
  • A significant change in your credit score
  • Change to a job that needs less driving
  • Three years have elapsed since you violated traffic regulations or found at fault in an accident.

Should your current insurance provider operate in your new location, there’s no need to shop. Similarly, if you’re comfortable with the services offered, you do not need to change or shop.

Factors that determine auto insurance rates

One of the most significant factors to consider when shopping is the financial status of your insurance provider. A reliable insurance provider honors claims without fail. 

On your part, you must also be a keen driver, have a clean credit record to attract discounts.  A risky client pays more for auto insurance cover. 

Parting Shot

Car insurance cover compensates for your loss and damage in the event of an accident. Secure the best auto insurance cover by shopping online and comparing what each provider has to offer. When you settle for one, you can minimize the cover’s cost by asking for a discount, giving evidence for good credit history, safe driving record, and leveraging on your loyalty.

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Finance

Working Capital Loan – Everything You Must Know | Of Business

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Working capital credit

Working Capital Loan: Vital Aspects You Should Know

The primary goal of running a firm is making profits, but the underlying motive from the get-go is to never run into cash flow deficiency. But, as your business evolves and grows, deficiencies in working capital can become a recurring problem. And it’s in these stages of scaling that companies, especially small and medium ones, struggle predominantly. To that end, a working capital loancan relieve the financial distress caused by cash flow deficits and allow your business never to lose the positive momentum. However, it’s crucial to know the dynamics of this financing option to manage working capital more deftly.

Working Capital Loan: Meaning

It’s a short-term financing facility that allows businesses to fund their day-to-day operations. A working capital credit is excellent for resolving cash flow problems spontaneously, without any hassle. Several financial institutions in India, like banks and NBFCs, offer these loans.

Working Capital Loan vs. Term Loan

Take a look at their differences and how each of them are ideal for different use-cases.

Tenure – Financial institutions usually grant such loans for a repayment period of up to 5 years. However, it involves a shorter payment term for working capital credit, typically, 3 to 6 months.

Purpose – Companies avail a term loan to undertake significant business expenses that will have a long-term bearing. Working capital credit is usually acquired to meet the operating expenditures of a business, like buying equipment.

Eligibility – Financiers usually expect businesses to satisfy rigorous criteria to be eligible for a term loan. But, the eligibility criteria for working capital credits are less rigid and are easier to qualify.

Working Capital Loan: Types

1.    Equipment Loan

As the name suggests, this loan type is specifically customized to provide financial assistance to companies to buy new equipment or machinery. Such a loan usually entails an end-use restriction, meaning you cannot utilize the quantum for anything other than purchasing equipment.

2.    Bill Discounting

Numerous enterprises use the bill discounting service to finance their various working capital needs. With this facility, you can release the amount blocked up in unsettled invoices ahead of their maturity dates.

3.    Overdraft

It’s a line of credit extended by banks to various businesses. You can avail this facility if you are on good terms with your bank. An overdraft facility allows you to draw cash from your account even when its balance reaches zero but is capped at a predetermined limit. You can thus address your working capital concerns efficiently with such a line of credit.

Working Capital Credit: Eligibility Criteria And Documents Required

The eligibility criteria for a working capital finance depend on the type you’re availing and also on the financial institution. Usually, the parameters based on which a financier extends working capital finance are

  • Business vintage
  • Clientele
  • Annual turnover
  • Credit rating
  • The credibility of owners/directors

To give you a rough idea, a financier would usually be lenient to provide you with a working capital loan if your company holds a robust credit rating. You may need to furnish documents for verification. Hence, it is essential to keep all relevant papers handy. With such information in tow, you can easily apply for a working capital credit that suits your financial requirements.

Wrapping Up

Cash flow scarcity is a commonplace occurrence in any growing business, and a working capital creditis an ideal device to alleviate such monetary crunches. Working capital requirements will naturally vary across companies, and by gathering information about its features and different types, you can use this credit facility optimally.

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Things to Know Before Applying for Personal Loan

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An easy way to deal with financially difficult times, a personal loan could help manage expected and unexpected expenses as well as consolidate your debts. Whether it is paying for emergency medical bills, dealing with home renovation expenses, or funding your dream vacation, a personal loan does not have any end-use condition and can be used for any purpose. 

While they do not require any security or collateral, one must be aware of numerous visible and hidden charges associated with it before filing the online personal loan application. While the loan amount offered by the bank may vary depending on the candidate’s eligibility and requirement, one must perform an in-depth investigation of various associated factors such as credit score, processing fee, foreclosure charges, EMI amount, etc. before making a final decision.

Scroll down to know more about the things one should know before applying for a personal loan.

Things to Know Before Applying for a Personal Loan:

  • Compare Interest Rate

The rate of interest on the personal loan varies from bank to bank and one should perform a thorough research of comparing the interest rates offered for the same loan amount as it plays a crucial role in deciding the final repayment amount. Along with it, the borrower should also pay attention to whether the interest rates are fixed or floating during repayment tenure. Complete information about the interest rates can be gathered from the official bank websites or through the respective customer support services. 

  • Evaluate Multiple Charges 

While availing a personal loan from any issuer, the borrower should be aware of all the charges associated with it such as processing fee, foreclosure charges, late payment fee, etc. The bank usually levies a heavy fee to new borrowers and one must bargain to get a clear estimate of expenses and plan finances accordingly. In addition to it, make sure to identify any concealed charges such as cheque bounce charges, loan cancellation charges, etc. to avoid any mishap at a later stage.

  • Maintain good credit

A good credit health validates your ability to handle debts while a low credit score demonstrates bad debt management which might affect your loan application. Hence, you should pre-analyze your credit history and make sure to keep your CIBIL score above 750 to avoid any rejections. One can maintain a healthy credit history by paying their credit card bills in full and on time as well as not exceeding more than 30% of the credit utilization ratio.

  • Evaluate the EMI amount

EMI amount management is a key factor to focus upon while submitting an online personal loan application. The EMI amount can be calculated in advance based on the eligibility, loan amount, interest rate, and repayment period to close the loan on time.

  • Avoid fake loan offers 

The lenders offer gimmicky schemes on personal loans to the borrower which might provide a low rate of interest initially but prove to be a financial burden in the future. Be sure to read the fine print to understand the terms and conditions mentioned in the loan agreement carefully as most of the hidden costs and obligations are buried in the paperwork.

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