How can my credit score impact the calculation of my loan amount?

There are ample factors that affect your loan amount. However, credit score is a direct impact before your loan approval is granted. Credit score can either help or affect your instant personal loan. Buddy Loan is one of the loan aggregators that will help you enhance your credit score with vivid repayment options, Instant Personal Loan

Your financial behavior will chain your financial plans to help build credit score. Here are some key factors you will have to consider before availing an instant loan.  

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Income liquidity: This factor can assess your capacity to repay an instant personal loan. It is one of the assurances you can give your lender for repayment.

Age: It is important you are under the brackets of this eligibility criteria to avail a personal loan easily. If your age exceeds the criteria, your loans will be easily rejected.

Job instability: If you are repeatedly changing jobs it could be difficult and can even reject your financial institution. 

 

With all the primary factors affecting your loan approval, let us understand how exactly availing a loan affects your loan approval.  

·         Nobody wants to have a bad credit score before lending the loan. Any default I payments, check bounces, etc can easily push you tot the least end of credit score.

·         In such cases, there are high chances of your loan application getting rejected.

·         The lower the EMI, the longer the tenure. But your payments are spread across the full tenure which will help you, if you’re drawing low salary. It will increase your credit scores.

·         Financial bodies and credit brokers sort the loan application by having a record of it. They would asses your application with the history and either decline or approve the loan application.

·         It is advisable to apply a loan only when in dire need than over using for unnecessary or small reasons.

Buddy Loan offers disburses loans stating from Rs. 1000 to Rs.15 lakhs. 

 

How exactly does applying for a loan affect the credit score?

By now, you know that availing any personal loan will affect your credit score. If you avail a loan with an outstanding debt at hand, you’re in a soup.

Credit scores and its’ agencies list your financial activity. Hence, a healthy financial behavior is always recommended.

It is like your overall average wouldn’t make a big difference with a new loan all at once. So, it is a journey of years that can create a good credit score. Paying on time, no bounces, and of course not defaulting the last EMI.

Thus, the impact of new loan will be less on the credit score. The easiest and best way to keep a personal loan from lowering your credit score is to make your payments on time and within the tenure of the loan stated.

What is the meaning of co-applicant?

A co-applicant, as the name itself suggests, will act as an additional application/applicant for the loan that you are borrowing. Having a co-applicant will increase the chance of approving the loan, and the amount that you want to borrow. However, best personal loans, do check out the best EMI options open in Buddy Loan as this aggregator disburses instant personal loans at lower interest rates and good loan tenure. 

 A co-applicant can become a co-borrower once the loan is approved. Which means the loan amount can be shared among both of you. It must be a family member or an immediate family member.

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Now that you have a fair idea of the co-applicant let's see how a co-applicant is different from a co-signer.

The difference between co-applicant & co-singer: 

 Co-signer is a person who acts as a guarantor in case of the primary applicant cannot repay the loan, that is to make sure there is an additional way of getting the money back.

 Whereas a co-applicant will act as a secondary applicant who will have the rights to get hands-on the loan amount that you are borrowing.

There can be a co-applicant in any type of loans provided by Buddy Loan, like Home, Mortgage, Vehicle, Personal loans etc.

When you are applying with a co-applicant, one must fill the application form along with the primary applicant. 

Then the lender will do a background check for both the applicants to understand their previous Credit history, CIBIL Score, Income, etc., to be sure of repayment of the loan.

The lender's limit: 

 The lenders allow up to 6 co-applicants for a home loan/mortgage. Below is the combination of co-applicants 

 

1. Husband and wife – These are the most preferred combination. In this case, both the applicants will be the owner of the property and will be equally responsible to repay it.
2. Father and Son – The son can be a co-owner only if he is the only child. If he has any siblings, then he can be only a co-applicant, this is to avoid al the family disputes in the future.
3. Father/Mother and unmarried Daughter – In this case the unmarried daughter can be the owner, and Mother/father can only be the co-applicants. Their income will not be considered together
4. Brothers – In this case brothers in the same family can take a loan jointly. However, in this case, they must live together on the property that they purchase. 

 

Below are the combinations that are not allowed

1. Father/Mother and married daughter
2. Brother and sister
3. Sister and sister

 

To apply for an instant personal loan, click https://www.buddyloan.in/

What is an EMI?

What is an EMI?

 An EMI is one of the first things that comes to your mind when you think of Loans, be it personal, business, vehicle, marriage, home, or business. However, before we proceed with EMI, note on one of the best loan aggregators in India, Buddy Loan is disbursing instant personalloans at a faster rate and with lower interest rates starting at 11.99%p.a. Their repayment options are better than ever and help you get an EMI option based out of your convenience and capability.  

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 EMI Acronym 

• EMI stands for Equated Monthly Instalments, which as the name itself suggests it is the amount that you pay back your lender every month on a fixed date. 
• EMI will be calculated based on main factors like Loan Amount taken, Tenure and Interest rate.
• Tenure is nothing but the time taken to clear the loan, more the tenure period, EMI will be less and vice versa. But the interest amount will increase in such case of long tenure.
• Interest will be calculated by the lender based on your Income, Previous credits, Market situations, Repayment capacity, etc.

 

Now that we have understood what EMI is, let us see the types of loans

1. Arrears EMI
2. Advance EMI

 

• Arrears EMI – Arrears EMI is also known as standard EMI where you pay the EMI at a fixed date every month until the tenure gets over to repay the complete Loan amount.

 

In this case, the lenders like Buddy Loan disburses the Requested loan amount (Principal amount) minus the processing fee of the Bank or that of any lender.

 

• Advance EMI – In this case, you pay the first EMI well in advance at the time of down payment. Hence the lender disburses the Requested loan amount (Principal amount) minus the processing fee of the Bank and minus the first EMI amount.  

 

This amount will be considered as the principal amount itself without any interest, thus reducing the principal amount borrowed. 

 

E.g.: You want to borrow ₹50,000 from Buddy Loan for your new favourite Mobile of ₹70,000 with a tenure of 1 year (12M)

PS you can easily calculate the EMI amount using any online EMI calculators.  

 

 PS you can easily calculate the EMI amount using any online EMI calculators

	Arrears EMI	Advance EMI
EMI Amount	₹4442	₹4398
Disbursal amount	₹49000 (50000-1000)	₹44602 (50000-1000-4398)
Down payment	₹21000 (70000-49000)	₹25398 (70000-44602)
Total Amount payable	₹74304 (21000+4442*12)	₹73776 (25398+4398*11)

 

Now you know which option to choose when you are applying for a loan. It is advised to choose Advance EMI if you can afford to pay one EMI along with the down payment. Else you can always choose Arrears EMI.

To apply for a loan, click https://www.buddyloan.in/

Conclusion

To add more benefits and enhance your credit score, preplanning your finances helps you reach and safe in the journey. EMI calculator not just helps you with the calculation but give you an introspective idea so that you can correlate you spends and loan repayment, savings and livelihood. 

Points to consider before getting a business loan.

Every business needs a business plan. Majority of commercial applications require more documents as a proof of identity. If you are finding seamless and quick loan disbursal for your business, then look no further.

Buddy Loan is one of the biggest loan aggregators in India that disburses loans at lower interest rates starting at 11.99% p.a. They also have customised EMI options that help you work your credit score with ease.

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Applying for a business loan gives you numerous benefits like tax returns, interest rate reduction based on credit score, faster approval rate based on reputation of the company.

Availing a marriage loan

Any businessman or an entrepreneur can be accommodated with lower interest rates starting at 11.99% p.a. based on their credit history. Business loan is an unsecured loan, where in you do not need to pledge any asset or provide any collateral.

There are certain factors the borrower will have to look for will applying for businessloan. Using the EMI calculator, pre-plan the wedding expenses by roughly estimating the expenses. The EMI scale is present in every loan site to help you calculate your monthly EMIs, total sum of interest rate and more.

By doing this, you will auto check your credit score and thus it is easier to maintain that too. Research about the loan offers carefully and the EMIs that the financial institution can provide.

Eligibility criteria  

Businessloan is nothing but a personal loan which is availed during the financial shortcomings for business development or launching new sectors of business. There are many competitive interest rates from which you will have to pick the appropriate ones. 

Borrower should bear in mind that he/she should be min 25 years – 60 years old to avail the loan. It is more helpful if the borrower is either salaried or self-employed with a minimum salary of Rs. 20,000/-. The approval rate and interest rate depend on the borrowers’ credit history.

The applicant can avail instant business loans up to Rs. 15 lakhs for an application. The borrower can discuss further with the lender for best EMI options in between the loan tenure of 3 months to 5 years.

EMI & Tenure

Buddy Loan disburses businessloans for a loan tenure of 3 months to 5 years. The better option is that you could tell your lender if there are certain concerns and EMI payment can customise such that it only enhances your credit score.

Conclusion  

With the recent extension of moratorium period several public sector banks, financial institutions and NBFCs will give a margin of time to clear out earlier debts if any and relax for the repayment on the present loan. Business loans are very beneficial if you have a co-applicant and hence the loan amount is huge.

How is EMI calculated on my business loan at Buddy Loan?

The EMI on your business loan is the amount you will be paying monthly to your loan lender.
This amount is computed to include the interest and the principal amount. You pay steadily fixed
EMIs for the tenure of the loan, progressively, reducing the amount of money you owe the bank.
The bank may choose to calculate the EMI using the reducing balance method or the flat rate
method. `

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However, loan aggregators help you with the best repayment options for a good 5 years.
Explore Buddy Loan in order to reap more benefit for a Instant business loan online. Meaning more benefits on tax.
Factors that affect the size of your EMI
Change in loan tenure: When your loan tenure is changed, even by a month, it changes the size
of EMI. When you want a smaller EMI amount, the tenure is elongated. However, the longer the
tenure, the higher the interest rate.
Higher EMI amounts result in a shorter tenure and lower interest rate.
Prepayment of the firsts EMI
When you pay the first EMI in advance, it reduces the size of the principal that you owe the
bank. Therefore, as a result, your consecutive EMI amounts will be reduced.
Shifting your loan to a different lender:
Different lenders have different interest rates, and therefore, the amount of EMI will vary. When
you transfer your business loan to a different lender, then your payment changes.
Flat rate method
Principal amount+ interest on the principal = EMI
Number of periods* number of months

Reducing balance Method 1
The mathematical formula to calculate EMI
P*R*(1+R)^N = EMI
[(1+R)^n-1
P =principal amount
R =The rate of interest
N = Number of repayment periods
Method 2
Using an excel worksheet
Using the same variables but the function
PMT=Rate* number of repayment periods* amount of loan
Method 3
Use an online calculator. If you are applying for an online loan, most providers will have an
online calculator where you key in the variables and compute your EMI.
The bank computes the interest you pay using two methods. These are:
• Simple interest. This type of investment is calculated only on the amount of loan given
out.
Principal* interest rate * the Number of repayment periods.
• Compound interest: In this method, the interest is added back to the amount borrowed
for you to calculate the next year's interest
Principal*interest rate= interest for year 1
Principal interest for year 1) * interest rate = interest for year 2
Factors affecting your business loan interest rate
 Amount of interest paid depends on the prevailing bank interest rates
 Your credit score matters a lot
 Late payments cause an increase in your interest rate
 The terms of loan affect the interest rate
 The interest rate is the price you have to pay
These factors will, in turn, affect your EMI. Therefore, it is paramount to be keen on each
element as you apply for your business loan.

What are the uses of a business loan?

Uses Of Business Loan

A business loan is a money you procure from a lender to be able to facilitate the operations of your business. It may be a secured business loan or an unsecured business loan. Make life easier and better by availing a business loan with Buddy Loan, get high benefactors. 

The lenders have made it easy for you to apply for an instant business loan online. Confirm that you fulfil the requirements to apply for an online business loan and decide on the amount you need. Make your application and wait for the bank to verify your request.

Purposes for the instant business loan are:

Expansion

One of the reasons why businesses apply for SME loans is to expand. When business is flourishing, you may need an expansion opportunity. When you make use of the opportunity, you need to ensure that your cash flow and profits are not interfered with. You approach a bank and request a business loan. Start a business.

Start a business

The most common reason people apply from an unsecured business loan is to start a business. As much as this is not a very wise reason, it does offer a reprieve for dire situations.

Purchase Equipment

Almost all business requires equipment or two to run efficiently. This expenditure being capital in nature may be burdensome for a new or expanding business to bear. Therefore, a business loan would come in handy to assist the business.

Inventory

A business continually needs to stock on their inventory. They need to have stock they can sell as their buyers prepare to pay for what they have bought from them. Inventory is one of the largest and complicated a business has to manage. You always have to stock enough options for your customers to buy. Consider applying for a business loan online to stay ahead of trends and customer demands, as well as keep your cash flow optimum.

Cash Flow

When you are dealing with customers who won't pay, and you are still stuck with inventory, you have not sold, then cash flow may be a problem. However, you need not be stuck when you can apply for an SME loan online to finance your cash flow. Your business stays afloat as you can pay for your operating costs using the money. 

A short-term loan provides money to be used for your regular operational costs and can help your business survive when profits are low. By keeping money flowing through your business, you can continue to get new customers to drive revenue while making up for other losses.

What are the features of a business loan?

Features of a business loan

In today’s economy, lenders have become increasingly approachable. With the doors open for all types of borrowers, a business loan comes in handy when the borrower has specific requirements. Buddy Loan can help increase the benefactors with the business loan you avail. 

You can get a business loan to set up shop, or expand his/her business.

But what exactly is a business loan?

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What is a business loan?

As the name suggests, a business loan is a type of loan intended to be used with a business module in place. Be it to start a business, or to expand business; business loans are designed to comply with a borrower’s requirements and plans depending on the business module in hand. 

Business loans are available in an almost exhaustive range. 

Bank loans, guarantor loans, mezzanine loans, asset-based financing, equity-based financing, invoice-based loans, microloans, and startup financing are some of the broader categories one can choose from that caters to his/her requirements.

Salient features

Business loans, in a sense, are better than “bad credit” loans like personal loans. Here is a unique list of features a business loan has to offer. 

1. Convenient and accessible: Applying for a business loan today is no mountain climb is you have a good credit history. There are hundreds of options available in the markets today.
2. Multiple options: We now know a business loan application is not limited by the choices available to him/her. The borrower can opt for the option best suited for his/her business needs.
3. Flexible repayment options: Business loans are designed in a way so as not to hamper the current business module of the borrower. 
4. Hassle-free business loan application process: These loans are so quickly disbursed, a borrower need not run around in circles and can apply for a business loan online unlike the old traditional ways.
5. Instant approval: Business loans are usually disbursed within 24 hours, depending on the amount the borrower has applied for. Even so, a borrower does not have to wait for days to get his/her business loan approved.
6. No collateral required: This, of course, depends on the type of loan a borrower has applied for. Unlike mezzanine loans or asset-based financing, most business loans do not require collateral or mortgage. 

 With lower interest rates, business loans are designed with such ingenuity that these do not hamper your current cash flow and instead aid in regulating and improving your current cash flow.

Buddy Loan helps you connect to the best-suited investor with plans tailored to your needs and requirements. With Buddy Loan by your side, running around looking for investors is a thing of the past.

Happy financing!