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