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What are the eligibility criteria for a car loan?

Eligibility criteria is a set of framework that determines whether or not you are qualified to apply for a car loan. Before applying for a car loan, every individual has to go through an eligibility criteria check to ensure that they are qualified. 

A lot of banks (like PNB Car loan or ICICI Bank) have eligibility criteria calculators on their website, so if anyone is interested in applying for a car loan at their bank, they can use that calculator to check whether or not they're eligible to do so. 

Factors that affect car loan eligibility

The eligibility criteria usually differ from one bank to another. There are many variables that impact the eligibility criteria of the bank. 

Some of them are:-

1) Credit Score:- This is the essential criteria to check whether or not an individual is eligible for a car loan. A credit score is basically a number between 300-900 that defines a person's creditworthiness. So if your credit score is high, then your application will quickly get approved. But if your credit score is low, then you'll have to go through some variables. 

2) Car:- The type of car you're purchasing also plays an important role in determining whether or not you're eligible for a car loan. Because a vehicle is an asset, so its value will keep depreciating. So the bank checks the model and the model's resale value before approving your loan application. If the resale value is high, you'll be required to qualify for a specific eligibility criterion different from the usual standards. So a car's resale value is an essential factor to determine your eligibility. 

3) Income:- Banks only allow employed individuals to apply for car loans. So if you're unemployed or a fresher, then your application for a car loan will be rejected. Banks check not only your employment status but also your income. The minimum revenue required is INR 10000 per month to apply for a car loan. So if your income is less, then you won't be able to apply for a car with a high value. So if your income is high, then you can easily get approval for a high-value vehicle. Your 60% of the income is taken for EMI. So you can calculate the EMI you'll be paying in advance using tools like Car Loan EMI Calculator. 

4) Employment status:- An individual needs to be employed. They can either be salaried or self-employed individuals. And the minimum work experience required for a salaried individual is 1 or 2 years. And if you are a self-employed individual, then your business should be at least two years. 

5) Relationship with the bank:- Your relationship with your lender is significant. You should maintain a healthy relationship with the bank that already has your account with them. So in times of need, they can help you with the whole car loan process, and you can even negotiate the interest rate and other charges. 

The eligibility criteria usually vary from one bank to another. 

Some of the essential eligibility criteria are: 

1) Age:- You should be at least 18-60 years to be eligible for a car loan. But this usually varies from bank to bank. Some banks only accept individuals who are 21 and above. 

2) Income:- You should at least have an income of INR 10,000 per month. 

3) Employment status:- You can be a self-employed individual or a salaried individual. 

4) Work experience:- You should have a minimum of 2 years of work experience in order to be eligible for a car loan. 

If you can't meet all these criteria, then your loan application will be rejected. But if you're really determined about getting a car through a car loan. Then you can get a co-signer or a guarantor to take the car loan responsibility with you. But be sure to compare all the banks and then choose the one that fits you perfectly.

Also read this: Understanding Car Loan Lender 

WHAT IS A CAR LOAN?

A car loan is regarded secondly as an automobile loan. As the name suggests, a car loan means a loan that a person takes to purchase a car and pays back the amount of that car with interest in equated monthly instalments (EMIs).A car loan allows a person to get a car that he wants to buy, the person only has to make the down-payment, and the bank gives everything else. When the money has to be returned, the person has to pay back the amount with interest. There are different interest rates on various loans. Also, different banks offer different interest rates. For instance, ICICI car loan offers a 7% interest rates on such loan which is one of the most competitive intrest rates in the segment.

HOW TO SELECT THE BEST CAR LOAN?

Various banks provide varying interest rates as The interest rates determine which loan is suitable for you or not. If the interest rate is higher, you will have to pay the EMIs in a higher amount, and if the loan has a lower interest rate, it will definitely be beneficial for you. Also, different banks offer different schemes on car loans for their customers to attract.You can compare different interest rates online available on the different websites of the banks. After comparing at least 5-6 interest rates, you can finally choose the car loan which is suitable for you. ICICI Bank Car Loan offers the best car loans that are worth upto 100% of the on-road price of the vehicle that you desire, along with a tenure of upto seven years and attractive interest rates.

BENEFITS OF A CAR LOAN: - A car loan is beneficial in a lot of ways. Following enlisted are the benefits of a car loan: - 

1. Easy loan application: - the whole process of applying for a car loan is so simple. You can simply apply for a car loan online while sitting in your room.
2. Minimal documentation: - There is minimal documentation. Not many documents are needed; just basic documents are required like identity proof, address proof, etc.
3. Quick and easy loan procedures: - The whole process of applying for a car loan is very quick and easy at the same time. Once you are eligible and fulfil all the criteria, your loan would be finally approved by the bank.
4. Attractive interest rates: - Different banks offer different interest rates on car loans. Many banks tend to offer the lowest car loan interest rates to attract customers, and also it will be beneficial for the customers.
5. Diverse loan options based on the requirement: - There is a wide range of options available for loans for home, cars, etc. You can check the loans and apply for the one that you want. 
6. Varied repayment options: - there is a wide range of repayment options; you can repay with cash, credit card or bank account. Some banks also offer no advance EMI repayment.
7. All segments of customers are covered: - No matter whether you own a private business or a salaried employee, you can apply for a car loan, provided that you fulfil certain conditions.

FEATURES OF AN ICICI BANK CAR LOAN: - 

1. The borrowers of the loan can apply to get instant approval and also faster processing.
2. ICICI Bank provides car loans upto 100% ex-showroom price of the vehicle.
3. The car loans of the ICICI Bank also come with a low interest rate and the tenure of the loan repayment of upto seven years.
4. ICICI Bank provides loans upto 80% of the value of the pre-owned cars.
5. ICICI Bank doesn’t charge any foreclosure charges on a Car Loan. 

The demand for a  car loan is high because everyone wants to get a car and live a luxurious life. A car loan helps us get the vehicle that we want to purchase with equated monthly instalments as a payment option with interest.

Everyone wants to have a high amount of money and that money amount can be either from borrowing or earning. But if a person is earning there is no issue but if the person is in need of money he is great at using his/her gold asset.

Gold Rates Today may differ as per the purity of the gold in various Banks. As the  Bank offers different Gold Loan Rates according to the carats and purity of the Gold.As per the official Website of the Bank, It offers 7.65% Gold loan rates.

Many people believe that a gold loan is known for luxury purposes but the real role of a gold loan is to fulfil the needs during an emergency. People are not able to arrange many from financial institutes but because of the gold loan where there is no requirement of credit score the borrower will get the desired amount as per his/her gold’s purity. After the tenure period, the borrower will get benefits in the credit score as well through which he/she can get extra discounts on other loans and can be eligible for other loans as well. This is also an ideal loan during an emergency because the person can be at high interest as well but it will offer you a low interest rate.

Bank has one of the lowest gold lending rates, at 7.65%, for both current bank clients and new borrowers. The interest rate on a  Bank jewel loan varies depending on the amount borrowed, the purity of the gold, and the loan-to-value ratio.

Gold Loans are loans that you can get by pledging your gold jewellery to a bank. Bank gold loans can be used for both personal and company expenses such as children's schooling, marriage, and other financial crises in the household. The below are some of the advantages of getting a loan from a Bank:

• Easy, no-hassle loan.
• Your gold ornaments are completely healthy.
• The interest rate that is fair.

Features of a Gold Loan

The interest rate on a Canara Bank gold loan starts at 7.65%.

• The bank charges a processing fee of 0.5 per cent of the loan volume, with a minimum of 1,000 and a maximum of 5,000 rupees.
• The term of a Gold Loan varies from 6 to 12 months.
• Bank offers the lowest EMI per lakh on a gold loan with the lowest gold loan interest rate of 7.65% and the longest loan term of 12 months.
• The bank charges a fee on prepaying jewel loans.
  
  

Bank Documentation
Bank's documentation process is simple. To obtain a gold loan, you must have one proof of identity and one proof of address. The following is a list of name and address proofs:

1. PAN Card, Driver's License, Passport, Voter's ID Card, Aadhar Card are all acceptable forms of identification.
2. Voter ID cards, Aadhar cards, rent agreements, utility bills, and bank statements are all acceptable forms of proof of address.

Other Charges being objected by Canara Bank
 There are various other charges that have been charged by Canara Bank which includes the following:

The  Bank offers 1% of the loan in its processing fee.

Faq’s

Does the bank provide Gold loans at Low Rates.?

Yes,  the Bank has lowered the lowest interest rate on gold loans, which will take effect on April 21, 2021.  Bank currently provides gold loans beginning at 7.65%, a reduction of 1.05 per cent from the previous average of 8.70 percent.

What is the maximum amount of gold loan I can get from the Bank?

Bank will lend you up to Rs. 20 lakh as a gold loan.

There and always an important question that arises in the mind of the loan borrower or the applicant. The question is how a credit score influences the procedure of the two-wheeler loan and vice versa.

First of all, to know the same concept, one will have to go through the proper meaning of the credit score. A credit score is nothing but a three-digit number generally prepared and issued by credit rating agencies or bureaus. Through the credit score information, a loan provider gets the exact and accurate information about all the types of loans availed in the past by an individual. It is preferred by most of the banks, and nbfc is that if a person has a positive credit score, that is a high rate of credit. If a person has nearly 700 for 800,, he will be given the full fever to receive loan approval for the two-wheeler. 

A credit score is an important thing based on which the rating calculation depends. The first and foremost thing which comprises the top part of the credit score is the payment history. It generally covers all the style or the pattern based on which it availed all the types of loans, how it has been paid or has been handed will be checked to provide the approval for the loan. The most important thing is the current debt, or any credit loan service is already going on now. Then the next turn comes for the length of the tenure period, which means for how much period or months or year the loan was granted. Then the two other components, that is, the new credit and the credit mix, contribute about 10%and 10% respectively.

Bad payment behaviour

• An important factor that influences the credit score while availing two-wheeler loans is the bad payment behaviour during the loan repayment. From the different kinds of service, it has been noticed that a 30 days delay in the repayment period reduces about 100 points in the credit score, which will be very tough to regain by following the proper repayment rules of a new loan. Bank of Baroda two wheeler loan offers better facilities to the customers. Most of the time, it has been noticed that people use multiple credit cards at a time. It does forget to manage it properly as they do not have an intention of paying it properly with proper reminder alerts, and this is the reason due to which they miss the due dates of the payment and take a hit as it adds two different types of penalties or charges along with the exponential rate of interest.

The tenure of the loan

• The loan's tenure period plays a vital role in influencing the credit score in a two-wheeler loan. For example, suppose the two-wheeler loan is an event for the return of 5 years or more. In that case, there will be a maximum number of which will include interest as well as repayment principal, but in this case, the rate of interest which will be charged which means the value of the interest amount total collected will be much more than that of a two-wheeler loan availed for three years. This will eventually increase the cost of the borrowing of the two-wheeler loan. At the same time, on the other side, there is cutthroat competition in the market where some of the financial institutions will offer the same tenure period at a low rate of interest to attract the customer who is involved with the other financial institution.

Conclusion

High credit utilization ratio, outstanding debt, and payment of the minimum amount also play a vital role in influencing the credit score while travelling for the two-wheeler loan. the income source capacity of the loan applicant also checked as besides the the two-wheeler itself, the income is the source with which the loan repayment EMI is will be paid each month.

Also read this: Two-wheeler Loan Pre-Payment Options 

HOW TO IMPROVE A TWO WHEELER LOAN ELIGIBILITY? 

If you are really in need of a two-wheeler vehicle and want to apply for a two-wheeler vehicle loan, here are the ways in which you can improve the eligibility of a two-wheeler loan: - 

1. MAINTAIN A HIGH CIBIL SCORE :-

The first and foremost thing is to maintain a high CIBIL score. It can be done by making the timely payments of the dues of credit cards, closing all the previous debts, checking the discrepancies in the report of credit and making a balance between secured and unsecured loans. By this, you can maintain a good CIBIL score. An ideal CIBIL score is around 700, which the money lenders prefer. For example, if you want to apply for an Oriental Bank of Commerce Two-Wheeler Loan, your credit score must be around 700.

2. CHOOSE A LONGER TENURE OF REPAYMENT :-

The longer the tenure of repayment, and the longer will be the time to pay off the loan EMI. Also, the rate of interest and the tenure of repayment are inversely proportional. Therefore, if you want to have lower interest rates on your monthly EMIs, you can opt for a longer loan repayment tenure.

3. OPTING FOR A JOINT LOAN-:-

By this option, we mean that if you have a co-applicant, the eligibility of the bike loan will improve. It will be because the salary or the monthly income of both the applicants will be taken into account by the moneylender. You have to make sure that the co-applicant you are choosing has a good credit score and a stable income source.

4. SHOWING ADDITIONAL INCOME SOURCES :-  

The moneylender or the bank just wants the satisfaction that the borrower will repay the loan. The additional sources of income can be mutual fund dividends or rent from any other property.

TWO WHEELER LOAN PRE-PAYMENT OPTIONS: -  Most of the banks offer the prepayment option for the loans that they provide. Prepayment means that the borrower can close the loan sooner, much before the completion of the tenure of repayment. The prepayment of the loan is done by most of the customers because it helps them to get rid of the financial burden. However, one may have to pay some pre penalty charges. A person can close the Two-Wheeler Loan in two ways mainly: - 

• OFFLINE METHOD: - Following are the steps that one needs to follow if completing he/she wants to prepay the loan via this method: -

1. Check the lock-in period- You cannot repay the loan in a lock-in period but after that.  The lock-in period can be between 3 months to 6 months
2. Call customer care- You can know about the outstanding amount due to be paid for the loan by calling customer care.
3. Prepayment charges- Some of the lenders or banks charge a prepayment penalty, so you should find out the amount and pay for it.
4. Acknowledge the email sent- Your bank or the moneylender will send you an email containing your prepayment information. You have to acknowledge the email and confirm that you will prepay your loan.
5. Payment- You can then pay the loan’s outstanding amount and the pre-closure charges by a cheque or a DD.

6. NOC Certificate- The most important thing is to collect the NOC certificate. It is proof that shows that you have prepaid your loan and are left with no dues.

• ONLINE METHOD: -  You have to follow the following steps if you want to prepay your two-wheeler loan online: - 

1.  Add/Link your bank account to your internet banking profile.
2. Now you can view your loan account ledger and can continue the transactions.
3. To make the prepayment, you have to transfer the money to your loan account. 
4. A loan account is like the other savings account, and it has an account number and an IFSC code.

However, if you are not comfortable sharing this much information about your bank account in the online method, you can follow the offline one.

Also read this: Things To Follow to Avail Two Wheelers Loan 

There are a lot of charges, fees and penalties that are applied. Before applying for a two-wheeler loan, it's very important to know all the applied charges and what would be applied in the future. There are also charges that can be avoided, so it is important to know the basics about charges.

The charges other than the two-wheeler loan interest rate applied by the bank can be divided into three categories-

Loan-related fee- In this category, you will have to pay charges that are a part of a two-wheeler loan. These charges may differ from one bank to another. You can avoid paying a lot of loan-related charges if you are applying during peak season or festivals.

Document related fee - In this category, you will be charged for getting your documents stamped, charged and certified. The charges vary according to your need. For example: If you want to get a CIBIL report, then you'll have to pay charges for that, but if you already have a credit report, then you don't have to pay those charges. So the charges that are applied in this category are mostly avoidable.

Legal/Government fees- In this category, you will have to pay charges applied by the government. These charges are compulsory and should be paid when incurred.

Loan-related fees

Application fee- It is a non-refundable charge that is applied by the banks while applying for a loan. If you are applying for a loan, then the first step is to get the application form. To get the form, you'll have to pay a certain amount. The charge usually ranges from INR 2,500-7000.

Penal Interest rate- It is very important to pay your EMI on time. If you ever delay the payment of your EMI, then you will be charged 2% to 3% of your EMI amount as a late payment fee.

Prepayment charge: This is also known as pre-closure charges. It is applicable if you are making a prepayment in full before the loan tenure ends. The fee charged usually varies between 2% of the outstanding amount. A lot of banks like PNB two-wheeler loan and Axis bank charge 4% of the amount.

Document related fee

Stamping charges- If you want to get any legal documents signed on stamp paper, then you will have to pay charges that will depend on the actual cost.

NDC charge- If you want to get a No Due Certificate (NDC), then you will have to pay a charge ranging from 0 to 500. And in case you need a duplicate copy of your NDC, you'll also have to pay a charge that ranges between INR 100 to 500.

CIBIL report- Lenders approve your application according to your repayment history in your credit report. So it's very important to show your credit report while applying for a loan. If you want a copy of your credit report from CIBIL, then you have to pay a charge between INR 100 to 1500. This charge will differ if you are asking for a credit report from other institutions like Equifax.

Legal/Government fees

Legal fees- The legal charges are already decided by the government for each loan. So you'll have to pay an amount based on your loan amount that will be charged by your lawyer before getting ahead with the verification process. Valuation fee: The fee will be charged by the banks to get your two-wheeler vehicle inspected and valued. The charge that you'll have to pay will depend on the charges that will be incurred by the bank.

Conclusion: There are other charges that are charged while applying for a two-wheeler loan. So it's important to choose a bank that is regulated by the Reserve Bank of India because those banks are transparent about all the costs that will be incurred during the whole loan process.

Also read this: Two-Wheeler Loan In Pandemic 

The first and the formal thing that needs to be kept in mind regarding the two-wheeler loan is maximizing the loan amount. 

• Most of the time, people get afraid of availing or maximizing the loan amount, but if you take some steps properly, it will help. Purchasing a bike by availing a two-wheeler loan with the purchase of about 80%  on-road price of the two-wheeler can make one initiate flexibility to manage other financial requirements.
  
  
• From the side of the government, there are certain reforms and policies that have been implemented to provide benefits for the customers who are facing difficulty during the time of the pandemic regarding their repayment of the loans as most of the jobs have already been lost due to the outbreak of the Covid 19 and the financial conditions of the people are not good. There has been a moratorium period, including tenure of 4 years, having 12 months of interest payment and 36 months of repayment of the original principal. Still, due to the inability to pay at the proper time, extensions have been added that have increased the tenure of 36 months to that of 48 months.
  
  

• One of the most important things to be kept in mind is not avoiding too many credit options for a two-wheeler loan that is over-borrowing should not be there. If a loan is available, then it does not mean that you will have to take the loan only without checking the other types of facilities provided by the different types of loan providers of a two-wheeler loan. There is nothing positive, but only negative things are related if the matter of over-borrowing arises. The first and foremost thing which is very much bad in over borrowing is that it will not allow a person to understand that when it is happening and after a long period when it will affect your financial stability to a much extent will be understandable and will act accordingly. It might happen that without proper calculation of the EMI, there might be the possibility of cutting around the expenses from the other types of requirements and meeting up for paying the loan amount. SBI two wheeler loan have the concept of providing reminder alert to help the customers. The worst that can happen will be that it will leave you in such a situation that after meeting up most of the requirements, you will be left with nothing and does it you wish you will be unable to pay for skip the EMIs and thus hampering the credit score which is very much worse for the other loans which you will be availed in the future.
  
  

• When availing of the loan, all the details must be carefully listened to and watched and understood to execute properly as per your feasibility. The different types of hidden charges and the processing fees, if you are not noticed properly, can make it difficult to manage the other types of expenses as there might be fluctuation in the payments, which will affect the stability of the budget and thus hamper everything.
  
  

Conclusion

Due to this reason, there is always guidelines are being given by the financial institutions that proper planning and discussion should be there for the proper execution of the loan like that of some backup arrangement if some part of payments is not given at a certain point of time or the facility of loan restructuring is there or not in case of any on certain change in the job profile or the income source of the customer. To conclude, we can say that proper management of a loan will never put you down during the most crucial time.

Also read this: How does a Two-wheeler Loan help to save? 

Banks in India offer car loans with interest rates starting from as low as 7.25% per annum. The loan tenure offered by a majority of the Banks ranges from 1 to 8 years. The processing fees charged for the application process depend upon the Bank you apply to. A certain amount of the Car price is required to be paid by the borrower of the Loan in the form of a down payment. Few banks and financial institutions also pay the price for the Car for the borrowers fully.

Many car dealerships also provide their customers with the option to apply for a Car Loan with the help of some tie-ups with a few specific banks and financial institutions. The rate of interest offered in this case is usually higher than that which you can avail yourself of. Most Car Loans can even finance the 100% on-road price of the Car. This would have no down payment from the borrower. Certain Banks provide Car loans up to few Crores to their customers. These Loans are not specifically limited to the purchase of a new car. These can be used to pay for an Old Car as well. A high credit score can get you a lesser interest rate for your loan.

Some popular Car Loan schemes offered by India Banks and Financial institutions are -

• Bank of Baroda Car Loan
• Canara Bank Car Loan 
• Axis Bank Car Loan 
• Federal Bank Car Loan
• The State Bank of India Car Loan
• ICICI Bank Car Loan

Eligibility Criteria -

The application criteria involved for the application procedures of Car Loans are :

• The applicant should be of legal age at the time of application and below the age of 75.
• The applicant should have a net monthly income of at least INR 20,000.
• The applicant should be self-employed or salaried/employed for at least the past year from the current employer. 
• The applicant should be working for a private or government organization or self-employed.

Documents Required -

The Documents required for the application procedure of Car Loans include the following with Passport-sized photographs :

• Proof of Identity of the Applicant (Any of these: Aadhaar Card, PAN Card, Passport, Driver’s Licence, Voter ID Card of the applicant).
• Proof of Residence of the Applicant (Any of these: Aadhaar Card, Passport, Driver’s License, Utility Bills, Ration Card).
• Proof of Income ( Form 16, Salary Slips from the current employer, Bank statements of the past six organisations months, Latest Income Tax returns report).

In some cases, the Banks and financial institutions might demand certain extra documents and paperwork as per the Bank’s policies.

It is easier to avail of a Car Loan when compared with other loan options available in India. A high credit score is not required for the application process as this Loan is kind of a Secured Loan. The vehicle itself acts as a security of the Loan and can be beneficial for both the lending bank and the borrower. But, Car ownership is not provided to the borrower until the end of the Tenure of the Loan. You would also be required to pay a down payment to the car selling agency.

The key factors that can help you in estimating the monthly EMI amount include the loan amount to be borrowed, the processing fees charged, the rate of interest applicable, and the tenure of the loan. A Car Loan EMI Calculator can be used online to determine the monthly repayment with the help of the details mentioned earlier.

Consider and compare several Car Loan offers from various Banks and financial institutions and apply to the ones you are eligible for. Choose a Car that requires fewer services as it would significantly reduce your future monthly expenses. Do not apply for a Car Loan in multiple Banks as it would impact your Credit Score.

Also read this: What is the tenure period of a car loan? 

Usually, to reach your location quickly, you need not depend on public transport schedules and availability, nor will you depend on it. Fortunately, if you have chosen to acquire a two-wheeler then the banks will do the rest by making it very simple for you to obtain a bike loan. When you take a world-class superbike, this burden appears larger. PNB Bank provides bike loans at totally accessible rates to make it simpler to repay a two-wheeler loan more flexibly and less concerned about purchasing the two-wheelers for your other monthly costs or the availability of cash. The frosting on the cake is the easiest and fastest procedure of documentation. 

You have the following papers available when applying for a two-wheeler loan from the PNB Bank. There are certain things to be kept handy for the document verification in a two-wheeler loan and those are Age-proof and a photo ID such as certificate of birth or leaving of school, life insurance, PAN card, passport. It would be advisable to have a valid passport, a voting id card, a driving license, or a bank statement with 3 passport sizes photographs. Let’s explore the possibilities of acquiring a loan in PNB Bank Two-wheeler loan plan with all the information to make an uncomplicated document verification. 

Once you prepare your mind for buying a two-wheeler it is very essential to remember certain things before applying for a two-wheeler loan.

The Eligibility for Two-wheeler loan
When you apply for a two-wheeler loan, you need to examine the eligibility for that loan. The borrower is highly careful and only sanctions the loan after examining the borrower's repayment capability. At the time of applying for a loan, the applicant's minimum age should be 21 years and his maximum age restriction is 65 years. For residential stability, the applicant must stay in the same residence for a minimum of one year. Applicants should be in steady one-year employment or self-employed for two years at least.

Interest rates for the loan
In debts, the interest rate has a major impact. A lower rate gives cheap EMI. Therefore, while applying for any loan, the interest rate is the main concern. They are the most suited to your profile at PNB Bank and provide a competitive two-wheeler loan interest rate. The Two-wheeler loan interest rate can be attained with a good CIBIL score and a monthly income assurance. The interest rate typically decreases as the loan term rises. Therefore, you should choose the loan's period based on the EMI, without too much financial expansion.

 Two-wheeler EMI calculator
The calculation of EMIs is also crucial since it informs you about the real interest paid during the loan duration. You might notice, on the other hand, that you pay monthly expenses as an PNB for the loan. So you will have a clear image of this part of the money that is to be separated from your monthly revenue as an PNB by your 2-wheeler EMI Calculator.

You can also buy the bike you want. However, a bike loan might alleviate these problems by reducing the financial strain and also by buying your ideal bike. By taking a bike loan you may solve these problems by reducing the financial strain and also by purchasing your ideal bike. Because of current conditions, your two-wheeler loan might be covered by insurance or accidental covers. You can also pay additional expenditures when purchasing a bike, such as accessories or alternative two-wheeler seats.

 Conclusion

Get up to 100% of the funding for your new two-wheeler, fast and easy payouts, reasonable prices, and rapid eligibility for a two-wheeler journey. Therefore, to buy a bike or scooter you should acquire a two-wheeler loan. Details may be verified with the PNB Two Wheeler Loan at an annual minimum interest rate.

Also read this: THINGS TO CONSIDER BEFORE SIGNING A TWO WHEELER LOAN AGREEMENT 

Gold is one of the top priorities of the average Indian household, and people like to keep their money in this precious metal for long periods. According to the World Gold Council (WGC), Indian households own between 22 and 25 tones of gold. The rural households account for the majority of this. Companies have been compelled to close units temporarily or retrench personnel as demand for products and services declines owing to the epidemic and the lockdown, which has lasted several weeks. For many people, the global economic recession has resulted in a loss of income and a lack of finances. As a result, individuals are turning to one of the most valuable assets to receive emergency finances to deal with the current situation. Small firms and entrepreneurs are using gold loans to relaunch their operations and bridge the financial gap, according to studies. Furthermore, because gold prices are rising, borrowers can access larger quantities through gold loans. 

• Interest Rates on Gold Loans 9.50 percent to 29.00 percent.  
• Secured Loan is the most common type of loan.   
• Time to Process: 24-48 hours.     
• Loan Amount Maximum.     
• Gold can be worth up to 90% of its face value.        
• Loan terms range from one day to nine months.

How to make use of your gold You can get a gold loan if you have an urgent need or if something unexpected happens to you, such as losing your job or your business. Convert your gold into little ornaments and borrow money against them on a short-term basis. Over the previous few months, gold prices have also risen dramatically.

• The LTV on non-agricultural loans has been enhanced from 75 percent to 90 percent by the RBI. This service will be available until March 31, 2021.
•  This will also assist banks and non-bank financial institutions in expanding their gold loan books.
• As the demand for gold loans has increased, more NBFCs have stepped in.

Features of a Gold Loan

Purpose: A Gold Rate can be used to fund a variety of needs, including educational expenses, medical emergencies, vacations, and so on.

Security: The gold that has been pledged with the bank or financial institution works as security or collateral for the loan amount.

Tenure possibilities: Tenure options might range from three months to 36 months.

Fees: Other costs and costs that may apply to a gold loan include processing costs, late payment costs/penalties for not paying interest, appraisal fees, and so on.

Advantages of a gold loan For the following reasons, gold loans are a popular financing option for satisfying short-term company needs:-

Quick Processing: Gold loans are usually disbursed within a few hours of the application being submitted. As a result, it is the most effective way to raise donations quickly. In fact, you may get a gold loan in less than 45 minutes.      

Rates are low: When compared to other loan choices, such as personal loans, the interest rate on a gold loan is lower. For example, has low interest rates on gold loans.     

Documentation is minimal: Another benefit is that you only require valid identification and proof of address.

Processing fees: These are normally quite low. While some lenders may conceal a few hidden fees that may come as a shock later, it follows a transparent process and reveals all prices. They charge a small processing fee of 1.5 percent plus GST. In addition, they impose a valuation fee of Rs 250 for loans up to Rs 1.5 lakh and Rs 500 for loans over that amount.

Flexible tenure: Muthoot Finance Gold Loan come with a variety of repayment options, ranging from six to 24 months. Depending on your financial status and company objectives, you can choose the payback period and alternative. Statement/ Recommendation Gold loans are the easiest sources to tap into right now if you're seeking for a strategy to get quick cash to get you through the current cash constraint. Apply for a Gold Loan today and take care of your business, unforeseen costs, and bill payments on your own.

Also read this: HOW GOLD LOAN IS IMPORTANT 

Personal Loans can prove to be extremely beneficial in fulfilling the needs of the borrower. These loans can be used for several purposes and the application process is also very easy. These loans are unsecured and thus offer a lot of benefits and require very little paperwork and documentation. Keeping in mind the unsecured nature of these loans, the banks and financial institutions charge a high rate of interest on loan amounts from the borrower.

Personal loans can be availed by people both by online and offline mode. The time duration for the processing of the loan application can take up to around 14-21 days. Online applications can take a lot less time than that. In general, the interest charged by banks and various financial institutions charges a rate of interest starting from 8.95% per annum. The applicants can apply for a loan amount up to INR 50 Lakhs based on certain criteria. The loan tenure offered by banks can go up to 7 years. Processing fees for the application process generally range from 0 to 3% of the loan amount plus the applicable GST.

The application status of Personal Loans can be checked via both online and offline modes. This enables the applicant in getting updates about the application status. Personal Loans have become quite popular among the people of India in the past few years. These loans can be used for the personal needs of a person like wedding ceremonies, home renovations, business investment, education, etc.  

Eligibility Criteria

To be eligible for a Personal Loan, the following requirements is needed to be fulfilled by the applicant:

• If salaried, the applicant should be above 21 years of age and below 60 years. In the case of self-employed applicants, the applicant should be at least 22 years old and below the age of 55.
  
  
• The net monthly income of a salaried applicant should be INR 15 thousand and the net income for self-employed applicants should be INR 25 thousand.
  
  
• The CIBIL score of the applicant should be at least 750
  
  

The application process involved for Personal Loans is quite simple and easy and does not require a lot of effort from the borrower. The Banks do not demand any asset from the borrower as security and hence the Paperwork and documentation involved in the process are very less when compared with other loan policies. This is why many people prefer Personal Loans over other Loan policies due to the benefits that personal loans offer.

Document Required

The following documents are required for the application procedure of 

Personal Loans:

• Proof of identity of the applicant
• Passport-sized photographs of the applicant
• Proof of Residence of the applicant
• Proof of income of the applicant
  
  

No security is required for the application procedures of these loans unlike Home Loans, Car Loans, Gold Loans, etc. 

Multiple repayment options are also available for the borrower to repay the loan amount. Online payment is also accepted by several banks and financial institutions. An online Personal Loan EMI Calculator can be used to make an estimate about the monthly EMI that needs to be rapid to the bank. These calculators require details like the loan amount, rate of interest, and the tenure of the loan.

Some of the popular Personal Loan schemes offered by Banks and other financial institutions in India are:

• State Bank of India Personal Loan
• ICICI Bank Personal Loan
• Bank of India Personal Loan
• Bank of Baroda Personal Loan
• Axis Bank Personal Loan
• TATA Capital Personal Loan
• Fullerton India Personal Loan

The very fact that personal loans do not require any asset from the borrower as security makes it a pretty good option for borrowing money from the lending organizations. These have been used by many customers of banks and financial institutions at times of need. The amount borrowed can even be used for medical emergencies and hence have saved several lives in the past.

 Also read this: Why approval of the Personal Loan gets rejected 

Companies that are in demand of capital generally look out for two options: Debt Finance and Equity Finance. Most of the time, the choice depends upon the source of funding readily available for access by the company. Debt finance refers to the act of borrowing money, while Equity finance refers to the act of selling certain portions of the equity to raise capital. Equity finance’s main advantage over Debt finance is that there is no requirement to pay back the amount in equity finance. In addition, equity finance does not cause any obligations and hurdles for the company. The main advantage of Debt financing is that the owner of the company does not lose ownership of the company in any way possible.

Equity Finance:

Equity finance is a way to raise capital for a company by selling a portion of the company’s equity. The ownership can be distributed among individuals as per the decision of the Business owner. There is no requirement for the Business owner to pay anyone any amount of money. The equity distributed among individuals generate dividend for them based on the performance of the company. Companies usually try to provide an excellent return to the investors to maintain a good image among the masses.

The disadvantage of Equity financing is that the business owner would be required to buy every equity share of the company to achieve the complete ownerships of the company once again. It can be expensive if the share prices go high due to the performance of the company. This is a very major issue that a lot of companies have faced in the past. This can prove to be a major loss for the business owner in case the business fails due to any reason. 

Debt Finance:

Debt Finance is borrowing money and repaying it with a certain amount of return based on the accepted condition between the lending and the borrowing party. In some cases, debt financing can limit a company’s actions for certain fields. There are numerous advantages of Debt financing. Debt finance’s most significant advantage is that the lender does not have ownership over the borrower’s business. Once the borrowed amount is paid back, the relationship between the lender and the borrower ends. In addition, the interest charged on Debt finance options is usually Tax deductively, which can be considered to be a huge advantage for the business owners. 

Debt finance’s disadvantage is that it requires the borrower to pay back the loan amount regularly as per the lending institution’s policies. In addition, in the majority of the cases, the lending body requires the applicant of the loans to provide some kind of security which can be an asset that the business owner owns. Therefore, if a person chooses the Debt finance option, the monthly expenses would be increased for him/her.

The requirements for the application process of Debt Finance options include the following:

1) Evidence/proof of identity of the applicant.

2) Proof of residence of the applicant.

3) Age Proof of the Applicant.

4) Documents related to the Business the applicant owns.

5) Bank Details of the applicant like account number, IFSC code, etc.

However, an Online Loan Calculator can be used to estimate the amount required to be repaid during the loan tenure. The requirements to use a loan calculator are the rate of interest, loan amount, and the tenure of the loan. Therefore, these loan calculators can be very helpful for estimations of the repayment amount.  

It is advised for you to raise capital with a mix of equity and debt finance. Most companies follow this method to sustain themselves for a long time. If your company has just started, it would be advised to go for Equity fundings as the monthly repayment burden would significantly reduce. There are several available resources in online and offline mode that can help you further understand the working of Debt financing and equity financing. 

Also read this: Why approval of the Personal Loan gets rejected