Smart investment tips to buy a Property

Planning is the key to everything we do in life. If you have a goal in life, be it short term or a long term, a proper plan can help you achieve it. Speaking about plans, we happen to have a lot of dreams which we would like to achieve someday or the other. Dreams like buying a high end car, an expensive phone, shopping for branded clothes, etc. These are dreams which you can fulfill with a small amount of planning and management and there you go! Dreams fulfilled! Is this the case with every purchase in our life?

Here we are talking about buying a home. Buying a house is a very lengthy process and takes a lot of your attention. For many of us, it’s a luxury we cannot afford. In some cases, by the time we reach to a decision to buy a house, the property becomes expensive or else the funds get exhausted. There is something or the other stopping you to make your dream purchase. For buying a property you need a proper plan which includes your budget, place of property, is there a co-borrower you can count on? Home loan options, you need to do a thorough research on which lender would be the best as it’s a long term commitment when it comes to home loans. HDFC Home loan gives you the best interest rates and less processing fees with speedy approvals.

After all the necessary research done by you, you decide on a property and start making the necessary arrangements to purchase the house. The very first thing in the home buying process is to make a huge down payment. You are prepared for it, but at last moment there are some additional charges and without digging a huge hole in your pocket you won’t be able to make the purchase. This leads to dropping the plan and again you are at ground zero.

It’s a total nightmare to see your dream property slipping out of your hands. Now you think you must have started making some smart investment for such a day. Thinking to start making smart investments, we will show you how,

Start early

Buying a house is almost everyone’s dream. Find you calling at the earliest and start saving for a good down payment for the house. On the other hand, if you apply for a loan at the early ages let’s say in your 20s and 30s, the bank will give you maximum loan amount with long tenure up to 30 years. By doing this you may end up paying very less down payment.

Start fixed deposits and recurring deposits

This may look funny, but this helps a lot. We happen to spend a lot on unwanted things and end up having no savings for future. By opening deposit accounts, you can start saving a lot of money. This way, you can minimize your spends and start saving for the deposit account. This savings then helps you make a huge initial payment if needed.

Invest in SIP Mutual funds

This is one more thing you can do to save money to buy a house. SIPs promise you a good return between 10-18% returns depending on which type of fund you are selecting and the tenure associated to it.

Start working on your credit score

The most important thing when it comes to buying a house is that you will need financial aid from a bank or a home loan lender. Make sure to have a good cibil score before you apply for a loan to get the maximum out of a loan buying process.

Every step you take to buy a house gets you one step closer. Just make sure the steps you take will help you in the long run as this is a long term commitment and you need to prepare for the same.

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Find Out Why and How to Start Building a CIBIL Score?

What will you do if you find yourself in a cash crunch one day, and you don’t have any savings left? Chances are that you will apply for a small loan. But do you know that your application can be easily rejected if your CIBIL score is poor?

Your CIBIL score is the most important factor that banks and NBFCs consider when they evaluate your loan application. So, you need a high score if you want a loan, especially at a lower interest rate. This brings us to the main question- how can you improve CIBIL score?

The first thing that you need to understand is that no matter how poor your score is today, you can improve if you are willing to do the work. You may not get the desired results within days, or even weeks. However, if you are committed and take the right steps, then nothing can stop you from building an impressive credit. All you have to do is take the following steps:

1. Check Your Report

The first thing you need to do before you can start working on your CIBIL score is checking your credit report. Only then you can see what your current score is and how much work do you have to do to increase it to a decent level (a score that’s equal or above 750 is considered good).

You can also go through other important details in the report which include personal details, previous loan’s details, repayment history, income, etc. If you see any mistakes in these details, then you can have them corrected which will improve your score.

As per RBI’s norms, you can receive one free CIBIL report every year. Although you can get your report as many times as you want for a small fee. You can check CIBIL’s official website for more details.

2. Start Using a Credit Card

Using a credit card is one of the simplest and most effective ways of improving credit score. This is because when you use a card and pay the bills on time every month, then it builds trust and increases the score. Plus, you can save money too as many credit cards offer perks like cash back offers, discounts, reward points, etc.

3. Checking Credit Utilization

If you are already using a credit card, then check if you are spending more than necessary every month. Ideally, your credit utilization shouldn’t be more than 35%. For instance, if your credit card limit is Rs. 1 lakh, then you shouldn’t spend more than Rs. 35,000 per month as it affects the credit negatively which you can easily verify through a copy of your free CIBIL report.

If you need to spend a lot of money with credit cards every month, then it’s better to get multiple credit cards. This way you can lower your credit utilization without compromising with your spending habits.

4. Get a Joint Loan

Apart from credit cards, small personal loans and home loans also help in building a credit score. Although you should try to get a loan all by yourself, if you are having trouble with that, then you can get a joint loan instead.

When you apply for a loan with a co-applicant, especially if they have a good credit history, then it’s easier to get a loan. However, the benefit of repayment in terms of credit score is shared equally between the borrowers. So, when you take a loan with someone who has a good credit, then you can improve CIBIL score along with them using their merit.

So, there you have it- some of the most recommended tricks that you can use to build credit. However, there are a few other things that you should keep in mind. For instance, you should never become a loan guarantor for someone who you don’t fully trust even if they are a family member. This is because if they fail to repay their debt, then you can greatly hurt your own credit score. Also, never underestimate the consequences of late payments. Whether it’s credit card bills or loan EMIs, every single payment should be made on time if you want to improve your score faster. Good luck!

Application Checklist for you before Taking A Loan

Personal loan is a very convenient way of borrowing money from banks and NBFCs to meet any immediate financial need. The process is extremely fast and simple provided you have all the documents required in order. Since personal loans are unsecured, banks need to ascertain the credit risk associated with the borrower before sanctioning the loan. They approve of a certain loan amount depending upon the repayment capacity of the borrower. They require you to submit proof of income and some other important documents to ascertain your eligibility for the loan.

There are some important things that one must take care of before applying for a personal loan. Here is an application checklist that will guide you if you are availing for the personal loan for the first time.

Checking the credit score

Since banks use your credit score to determine your eligibility for the loan, it is a good practice to check your score yourself first to know your chances of approval. Order your free credit report from any of the three credit rating agencies to analyse your credit standing. Having an excellent score helps in instilling confidence in the lenders and bargain for an attractive rate of interest. However, if you don’t have a very good score you can opt for personal loan without CIBIL score that are available at exorbitant interest rates.

Finding the Eligibility criteria

Different lenders take into consideration different factors to ascertain a person’s eligibility for the loan. Find out the eligibility criteria of the specific lender with whom you wish to apply for the loan. Check the parameters like age, occupation, income and credit score before proceeding with the application. Get a list of documents required so that you have all the relevant paper work when you apply for the loan.

List of required Documents

Contact your lender and get a checklist of the documents that you need to submit along with your application. The requirements of the documents vary based on the profession, income and loan requirements. However there are some common documents that you must have in handy. For an ICICI Personal loan you may require

  1. Valid Proof of identity- A copy of passport, PAN Card, Voter Id Card or driving licence serve0s as a proof.

  2. Proof of address – Copy of passport, Aadhaar card, rental agreement, utility bill, ratio card.

  3. Proof of Age

  4. Financial documents

  • For salaried employees- Bank statement for last 6 months, Salary slips of last 3 months, Form 16 for last 2 years, Employment certificate or appointment letter

  • For self-employed Individuals- Bank statements of savings and current account, proof of office address, ownership proof, Income tax returns of last 2 years, detailed financial audit including Profit and Loss statement and Balance sheet. Since the source of income of self-employed individuals is riskier than that of salaried individuals, these documents help in providing an assurance to the bank that they have a steady inflow of funds.

  1. Passport size photograph

Since personal loan is unsecured in nature, the lender verifies the documents thoroughly to make sure that the borrower has the capacity to repay the loan.

Interest rate charged

The rate of interest determines your monthly EMI on the loan. Find out the best rate that you can get. Also look at the processing fees, late payment charges, prepayment fee etc. It is important to have a clear understanding of these charges before you apply for the loan.

Repayment plan

Use the EMI calculator to plan your repayment in advance and choose a tenure that suits your budget. Take into consideration any major changes in your income or expenses that you expect in near future. Being realistic helps in avoiding any future defaults on loan that may adversely affect your CIBIL score.

Taking care of this essential checklist will ensure that you get approved for a personal loan at good terms and rate of interest.

How To Update Your CIBIL Score Online

By now it is evident that what is the importance of your credit score and credit report. There are four bureaus in India, viz. CIBIL (Credit Information Bureau India Limited), Experian, Equifax, CRIF HighMark. These are the four bureaus that offer credit report and score of any individual. Now as well know that score is made up of 5 parameters: payment history, an amount owed, new credit accounts, account length and the mix of credits; different bureaus have different algorithms to check an individual’s score. A report, however, is the detailed information of how the score is made, and various transactions associated with an individual.

As CIBIL was the first bureau that was established in India in association with TransUnion, many people may consider credit score as CIBIL score and credit report as CIBIL Report. The score ranges from 300 to 900, where 300 is considered the lowest and 900 is considered highest. Any score that is 750 or above is a good credit score. The benefit of having a 750 or more score is getting the loan or the credit application approved easily with better interest rates. A score ranging from 600 to 750 is average and would take more efforts in getting loans and credits approved but with a higher rate of interest on them. And for anyone with a score below 600, it is nearly impossible to attain any credit. When the score is low, the most priority is to to get it to 750 level. Also, these days, a score is not just a measure of getting a loan and interest rate easily but it is a credibility score for many places. It is checked for jobs, visa applications, important study locations. Your score shows your responsibility towards the finances and how efficient are you in handling them!

So when you are planning to increase your CIBIL score, what would you do? As the parameters are explained, you have to work closely towards all the factors. First of all, start repaying all the debts and clear the old mess. Also, take a close look at the report. At times, it may happen that the transactions that make your score low, are not made by you. So, there is either fraud or identity theft that has happened with your account or using your information or some of the details are wrongly updated. What to do in such case? CIBIL has a dispute raising method online.

Go to the website and raise a dispute with the bureau. They would check the application and verify the error. Once it is they cross verify and check the issues, you score would be updated and unwanted data will be removed from the report.

This is the case when a dispute is to be raised, but what if one wants to update the cibil score online? Well, when you make any credit or related transaction, the information within a few weeks is passed to the bureaus. For example, you have applied for a car loan and a bank is processing it. So, first of all, it is reflected in the report as the hard inquiry. Once the loan is approved and the transaction starts, with all the EMIS which you pay including the down payment, the information is updated in the report. The banks and the NBFCs have to pass this information to the bureaus. Sometimes it may happen that some information is not updated in a particular report of the bureau, but do not feel hesitant to connect to the bureau and send an application to update that particular update which is missed. Banks at a time may miss passing the information.

So, there is no specific method to be followed when the score is to update in the report over the internet in normal norms, but yes, while dispute; do not waste time. Make sure you fill the form and raise it online as soon as you can.

How fast can my credit score increase

We area unit in associate degree ear wherever everything that we wish is instant. Instant is nice. however, it creates a great deal of hysteria, impulse, and impatience. Everything instant isn’t smart. Despite obtaining the results timely, it’s continually not essentially good. There area unit several instances wherever the perfection or accuracy isn’t maintained at the speed of achieving it. whereas speaking over credit score and it’s the rate of accelerating or decreasing usually has several myths. Let’s get those busted. there’s no magic which will happen and would get your score to optimum nice over every day or month. Also, the speed of increase additionally depends on the score that is present. If the score is 450 and if the score is 650, positively the time needed to urge 750 that is taken into account optimum best, differs. The one that has 650 can take lesser time compared to the one that has 450.

CIBIL Score is very important & it is a three digit number which is determined by payment history, the amount owed, new credits, credit mix and length of credits. Where, 35% is comprised of payment history which means how one has been making payments over the tenure of credit accounts opened. Credit consists of the credit card usage and the loans taken. 30% is for the amount owed. The total amount that has been taken, I.e. the credit limit one has for the credit card and the loan amount taken also has a major role in making the credit score. Length of credit history is 15%. How long have been the credit accounts are open, is the factor that is also considered. Rest both, new credits, credit mix are given 10% each. New credits are the one which is applied. But, if there are multiple attempts for opening new credit accounts can drag the score down. As it makes the creditors think that one is in dire need of funds which is also called credit hungry behavior. Credit mix is the combination of a secured and unsecured type of credit along with the fixed and revolving type of credits. These are the parameters and the weight of them.

 Any mistakes in these parameters can state with the score. the main points data is mentioned within the CIBIL report. however long are the account open, however and once area unit the payments created, any defaults, lost or delayed payments area unit all mentioned within the report. Also, the inquiries created for applying the credit are mentioned. the primary score is established when half dozen months of a lively account. Then the score is updated almost every month. Credit utilization is also a factor which affects the score. This is specifically for credit cards. One should not use more than 35% – 40% of the total credit limit of the card one has. To increase the score, the first and the foremost thing which has to be done is rectifying the old mistakes. There may be any missed payments, default accounts, unpaid dues, etc. work on them. Talk to the banker, tell the issues you had. Try clearing all those first. Then, use your credit card upto 35% of its limit. If your usage is more, apply for a new card. And use the mix. As you apply for a new card, new credit factor is also considered. But yes, do not overdo! Try taking a secured loan, say a gold loan or secured credit card. This will be a good of credit mix as well.

Once this is achieved, make sure you do not miss any more payments or delay in payments. Organize the payments. Keep reminders. Do not miss the repayment dates. While you follow this practice for over few months, a good credit score is no far! Again, there can’t be any finite time that is calculated to get a 750 score, but it is always achievable if the above mentioned points are taken care of!

What error  you  can  avoid while  building a credit score

A good credit score can be the ultimate key you can hold to unlock the best financial opportunities in life. Not only a good credit score can help you with various loans and credit cards, it can also help you land on your dream job. It can act like a boost when your future landlord conducts background verification on you. A good credit score can help you in many ways you cannot imagine.

What many of us do not know is that, building a credit score is equally hard as maintain the score. Unfortunately for many people who were starting on this epic credit journey a decade ago had no idea on how to start and how to dodge the blind spots when it comes to credit scores. Fortunately, today you have all the information you need at your finger tips when it comes to starting your journey to build a good cibil score. You have different websites as well, which helps you with free cibil score check to make better credit decisions. With all the information you need, are you still confused? Are you not getting the right gateway to start your credit journey? Are you still on the grey when it comes to identifying the blind spots of credit report?

Today we will help you understand and avoid the most common errors and also tips to build your credit score,

Apply for a credit card

What better way to start your credit journey other than having a credit card in hand. A credit card is one type of unsecured loan which you can use. You will have to make the payment of the credit limit used within 50 days of time. A credit card if managed properly can help you with financial marvels like reward points, add-on cards; you can even apply for another credit card on the basis of your primary one. On the other hand, if you default any payment, you can take a serious hit on the cibil score which will stay on your report for at least seven years.

Apply for a consumer durable loan

If you are denied a credit card because of no credit score, you can apply for a consumer durable loan. A consumer durable loan is the best and easiest way to enter the credit world and it can also help you build your credit. There are a lot of vendors who are entering the consumer durable market as the market has potential. When purchasing a product, you have multiple choices when it comes to lending options.

Avoid getting into debt

Once you open a bank account and start transacting on the same, you are on the financial radar. You will receive a lot of calls from different company’s telesales department who will offer you various loan options. Avoid them and take a loan only if needed. Just because you have an attractive offer in hand, does not mean you will have to take a loan. Many people make such mistakes and end up being in debts. A healthy tip would be to avoid such calls and if needed a loan contact your primary bank branch for loan options. Some banks provide you pre-approved loan options towards your account considering your financial transactions.

Be patient

As we all know, Rome was not build in a day. Similarly you cannot expect your cibil score to go up in a very short span of time. You will have to be patient and gradually see your score go up. Like explained in the earlier point, you can opt for credit cards and other financial options to get your score up eventually.

If you are still not sure on how to start building your credit score, you can always seek professional help. There are companies dedicated for such tasks which can help you build a healthy score for future financial transactions. No process is hard if you know how the process works, be educated about credit facts and start your credit building journey with ease.

Mistakes to Avoid When Building Credit History

If you want to be responsible towards your financial security, then it’s important that you build a high credit score with the help of good credit history. However, in that endeavor, you want to be careful with your actions and avoid the common mistakes that people commit only to hurt their score. These are:

1. Closing Old Accounts

It’s true that with few bank accounts and credit card accounts you can manage your finances easily and get the desired results faster. However, if you have to close a few accounts, then picking the old ones can do more harm than good.

Here is the thing- the length of credit history plays a huge role in your credit score calculation. In other words, your oldest accounts make a bigger contribution towards your score in comparison to your recent accounts. So, if you have to close an account, it’s best to choose one that’s relatively new.

2. Late Payments

Late payments, whether we talk about personal loans or credit cards, are never good for your credit rating. In fact, the majority of top credit bureaus such as TransUnion CIBIL, Equifax, High Mark, etc. give the highest weightage to the payment history when calculating your credit score. So, if you miss only a few payments, then your credit history will stay good. However, if you fail to make the payments on time more often than not, especially in multiple accounts, then you can expect a huge damage to your creditworthiness.

3. Increasing Credit Utilization

You may have a reason to believe that increasing credit card usage i.e. credit utilization can help to build a high credit score faster. On the surface, that seems logical, after all. However, that’s not how the system works.

Higher credit utilization doesn’t have any impact on the credit rating growth. In fact, if it’s above 35%, then it can easily cause damage instead. This is because the credit rating agencies associated high credit utilization with “credit hungry” behavior. In other words, they are led to believe that the user isn’t financially reliable which is why they are utilizing a large portion of the credit available at their disposal.

4. Carrying Credit Card Balance

A lot of people don’t know exactly how the “minimum payment” feature of credit cards work. They just assume that everything is fine as long as they make these payments.

In theory, minimum payments are a good option. After all, you don’t have to pay any fine and so your credit score shouldn’t be hurt either, right? Wrong!

It’s true that by making minimum payments you can prevent the penalties and/or extra charges. However, you may still suffer in the long run. This is because when you make a minimum payment, your balance amount is carried over to the next month and becomes debt. So, if you continue making minimum payments again and again, your total debt will increase which not only gives rise to financial challenges but also impacts your credit score calculation.

5. Failing to Monitor Credit Report

When people want to increase their credit score, they often to their friends and relatives for guidance. If they are lucky, they get some valuable insight and tips such as expanding the credit variety, timely payments, the option of secured credit cards, etc. However, a lot of times they don’t get to learn about the significance of credit report monitoring.

If your credit report has discrepancies, then the credit rating agencies will continue to give you a poor score even if you are making all kinds of efforts. Plus, you can’t monitor your progress unless you monitor your report and actually measure the impact of your actions.

All the credit rating agencies in India are required to provide every user a free credit report once every year. Thus, there is no reason for you to not get yours.

Building a good credit history isn’t too complicated or difficult. However, having sound knowledge of the same is the key. In that regard, the mistakes explained above can be of great help to you. Good luck!

How Does Different Credit Bureaus Work

Before jumping to the main topic, Let’s know that what is the credit bureau? And what mainly does it do. A Credit Bureau is an organization who generates and maintains the credit score and credit report of any individual. These both are nothing but a direct reflection of how credit responsible any individual is. There are various factors which these bureaus determine while generating, updating, and maintaining the score and the report. Various algorithms are working on the credits and the repayments of credits any individual has taken and is repaying. It also majorly depend upon the banks or the NBFCs who update them with anyone’s proceedings of the credits. If in case, a bank or an NBFC fails to do so, it directly affects the score.

Everyone who has dealt atleast once with credit score or credit report knows what do they both mean. A score is a three-digit number between the range of 300-900 which is obtained by calculating various factors and report is the detailed information about the accounts. Where are the credit bureaus and how many of them will know the information? In India, there are 4 credit bureaus viz. TransUnion CIBIL, Equifax, Experian and CRIF HighMark. The first ever bureau was TransUnion CIBIL which was established in 2000 with the association of TransUnion, An America based Credit Bureau. CIBIL stands for Credit Information Bureau India Limited. Over the next few years, other bureaus came and established themselves. In 2010, RBI(Reserve Bank of India) passed a mandate that each and every bank or an NBFC(Non-Banking Financial Company) has to update any information regarding the credits which includes any type of credit card or loan of an individual to the credit bureaus.

Credit score consists of 5 parameters.

• Payment History

• Amount owed

• Length of credit history

• Credit Mix

• New Credit

Check the following table which determines the weightage of each of the above-mentioned parameters in respective credit bureau.

TransUnion CIBIL

Equifax

Experian

CRIF HighMark

In Percentage(%)

Payment History

35

35

35

35

Amount Owed

30

30

30

30

Length of Credit History

15

15

10

10

Credit Mix

10

(Inquiry) 10

15

(Utilisation)15

New Credit

10

(Accounts in Use) 10

10

10

Now, as per the details mentioned above, the 65 percent of any credit score comprises of the payment history as in how responsible the person has been over past years in making the payments of the credits s/he had been taking is considered. The amount owed is how much is the total credit anyone has taken, this includes the credit card limit as well as a loan. And the rest three factors revolve around the total length of credit history i.e. from how long has an individual be taking credits, credit mix i.e. what kind of credits one has. Secured or unsecured and revolving based on fixed credits. New credits are the new type of accounts (not be mistaken by bank accounts) or the credits which one opens. In here, Equifax has a different name as Credit inquiry which is the number of times one has inquired about any kind of loan or a credit card. The loan would be any of the loans like, home loan, education loan, car loan which are basically unsecured types of loan. And the accounts that are in use. Also, CRIF HighMark considers the credit utilization instead of credit mix.

There is no much difference between any of the factors which determine the score. There is hardly 5 percent change. So when the credit score is calculated is more over the same with just 20-25 points change. There can a major difference when a bank would not update any of the bureaus about a transaction. That can happen sometimes, that a particular bank would update the information to 3 bureaus and skips one or there is no tie up with any of the individual bureaus. When anyone checks the detailed report, it can found about which information is missing. Majorly if there is any change, it would be of 50 points maximum and shouldn’t we worry about, as taking the above points into consideration.

But, one should always be responsible for his/her credits and should not take them casually. The weightage may differ in any of the bureaus of the parameter but, an individual’s behavior would make the creditworthiness better or worse. So, one has to be mature enough in taking the credit repayments seriously!

Learn How to Read Critical Information from your Credit Report

All credit bureaus in India are required to provide a free credit report once a year to anyone who asks for it. This means that you can access your credit report free of cost four times a year since there are four credit rating agencies in India. However for these reports to be useful you should be able to understand the relevance of the information contained in them, especially the critical part. So here we take a look at the critical information that a credit report contains what it means and why you need to focus on it.

What is Critical in Your Report?

So let’s say you got your free credit report, now you need to know what is contained in each section and how it impacts your credit score. As we all know credit scores are all about your debt history so all information about all your credit cards and loans.

The credit score definitely is the most important thing in your CIR. A good score is important for you to get loan applications sanctioned and is also an indicator of your credit health. A score above 700 is considered to be good.

The accounts section is the most crucial part of the report and the information contained here impacts the score to a great extent. Information about all open loans, closed loans and credit cards is included in this section. Thus you should first make sure that all the loans and cards that are mentioned in the CIR actually belong to you. Though unlikely some loan or credit card that may not belong to you may be mentioned in your CIR. It could be just an error or sometimes a case of identity theft in either case it is very important that you take immediate action on it.

The next thing you need to understand is the account classification of each loan. Each debt is classified as per their payment status. Thus if you have been paying regularly then your loan would be classified as STD. If a loan is classified as anything other than STD then it means that you have not been paying regularly and it is not good for the score. So make sure that no loan is classified as a non-std asset by mistake. It may happen that the borrower may assume that his EMI’s are being debited on times while it may not be happening due to some error or oversight.

You should also check your repayment history, this will let you know if you have paid all your dues on time in the past 36 months. DPD means day past due; thus DPD of zero for all credit cards and loans is a good sign for the credit score. Anything beyond zero DPD signifies that the payment has been delayed which will lower your credit rating.

Also ensure that all loans that have been repaid by you fully are reported as closed. Even if you have repaid all the dues from your end but the loan reflects as an open loan then you need to get in touch with the lender and get a NOC or complete any other pending formality as required.

When going through the CIR also check details like the total loan amount, unpaid amount, tenure, interest etc. This will ensure that you have all your facts straight and there are no errors on the part of the lender or you have not missed any important detail.

Other Aspects That Require Attention Too:

While what is mentioned above is critical in your report, there are other aspects too that require careful consideration. Some facts that you need to check are:

  • Personal Information section contains details about the DOB, PAN, and driving license and so on. Make sure that all information mentioned is accurate

  • Contact Information section has details about individual’s current address and also past addresses (if any), email address, telephone number, mobile number etc. Again the accuracy of this information is important.

  • Employment Information section has details about the current occupation, work place details, name of the company (for salaried) duration of employment etc.

  • Enquiry Information sections details about all enquiries made by lenders and this also has a bearing on your credit score. So do make sure that the details mentioned here are accurate.

So get your CIR and understand what it means, it will help you stay credit healthy.

How to Plan Your Dream Wedding Without Spending Your Savings?

Life is but a long sequence of good and bad moments. However, some moments are more special and important than the others, one of which is your marriage.

It’s true that you don’t tie the knot every day. Plus, it’s a special occasion because it’s the beginning of a new chapter, or rather a new life. Thus, it’s understandable if you want to organize a lavish and festive wedding, with no concern for the expenses. However, is using your savings for the same a good idea? Let’s find out.

Weddings in India

Indians weddings are known for their grandeur and plush display. However, to make arrangements for these, a massive amount of money is required. This is the reason why many young professionals turn to their savings for help. They liquidate their fixed deposit accounts, bonds, and other long-term investments to fund their weddings. However, this is not recommended by the finance experts for the following reasons:

  • After you get married, many new expenses may need to be taken care of, such as home loan, new furniture, travel, car loan, etc. However, if you have spent all your savings on the wedding, then you won’t be able to clear these expenses.
  • You must always have an emergency fund for financial security. For instance, if for any reason, you lose your job or develop a serious illness, then you should have enough money to handle the situation without needing money from anyone else.

What’s the Solution?

A personal loan is the best solution for funding your dream wedding because of the following factors:

 

Peace of Mind

The biggest and most important reason to get a personal loan is that it gives you the peace of mind when you know your savings safe and untouched. So, you can enjoy planning your wedding without a worry and pay for all expenses easily.

With a personal loan, you also don’t need to go through the inconvenience of selling your mutual funds, bonds, etc. to get the money. Instead, you can give your full attention to the most important event of your life i.e. your marriage.

Fast Disbursal

The approval process for a personal loan isn’t as complicated as a home loan or education loan which require an excellent cibil report and often a loan guarantor too. There are also few formalities and minimum waiting period.

These days, many banks offer special loans which are designed for exclusively for marriages. So, you can also look into them to get the money even more easily and quickly.

Competitive Interest Rates

Thanks to the large number of NBFCs and other financial institutions that have emerged on the surface today, the interest rates and perks offered on the personal loans are extremely competitive. So, if your timing is just right, and your CIBIL report is impressive, then you can easily get an attractive interest rate that will help you repay your loan quickly.

How to get a wedding loan?

To get the best possible loan for your wedding, be sure to do your research and compare the interest rates online. Other than this, you must keep the following things in mind:

  • Wedding Budget: A wedding comprises of various kinds of expenses. However, when you take a loan, then you have to make sure that you have as accurate of a budget as possible. This is to avoid a situation in which your loan is way smaller than your actual expenditure.
  • CIBIL report: One of the most important things you need to do to get a low interest rate is to improve your credit report. This is because all banks decide the interest rate and the terms of the loan on the basis of this important document only.
  • Loan Documents: Make sure that you have the appropriate documents to apply for the loan. These include your ID, proof of income, bank statements, etc.

In Conclusion

Weddings are meant to be thoroughly enjoyed and cherished, there are no two ways to it. However, you can’t let your emotions come in the way of your discretion. So, spend as much money you feel comfortable with, but don’t splurge your savings when a personal loan is a much safer option.