MONEYWALLET - Blogs

03

Aug

How to Improve Your Credit Report in 2025

2023-08-03 06:24 AM

In simple words, Credit profile is the history of a person’s financial life. Taking care of your credit profile will define your future credit requirements. Through your credit profile, a credit score will be generated. This score is out of 900. Higher the score, better it is for you. If you have a score that is on the higher side, getting any type of a loan, whether it is an instant personal loan or the best credit card would not be a problem.What happens when your credit score is bad?If your credit score is on the lower side, then it can have a harmful impact on your prospects of getting an instant personal loan or the best credit card.What should you do in case your credit score is bad?If your credit score is bad, that means you have either defaulted on payments, not paid bills on time and have unpaid debts on your name. Every negative strike on your profile will affect you in a very bad way. You must immediately resort to improving your credit score. Doing this will be a long time procedure and in time will help you clean your credit report and credit worthiness.How can you improve your credit score in 2025?It is very much possible to improve your credit score in 2025. By following these few basic steps, you can move on the path of improved credit worthiness.Clear your older debts first:This point does not mean that new debts taken are less important. But your prime importance would be to close your older debts which are more than 3 months old. Clearing them would stop the negative impact it has on your credit score. In case you feel you can make the payment within few weeks, then it will be wise to discuss this with the lender and ask them for some extra time to repay them. Asking for extra time will hold the negative impact on your credit profile.Settle all debts:Apart from clearing your older debts, it is also important to settle debts which are old and getting costlier with each passing day. In case you cannot repay it fully, you can talk to your bank and ask to settle the debt. Yes, this is a possibility and if the bank agrees, you can get the debt settled and written off. Of course this would be mentioned on your credit profile but most importantly banks will understand that you do repay all your debts.Auto-Payment schedule:One last attempt you can make to ensure all debts and bills are paid on time after clearing and settling your older debts is to keep an auto pay schedule. Through this, the discipline to repay your debts will get better and no default will take place. Your only concern here would be to ensure there are enough funds on the day of the auto pay.Please note that improving means this is a continuous process and hence you must always keep paying your bills on time and not default anytime on personal loan payments or credit card bill payments. Improve your credit worthiness and this will ensure your future financial life will be more stable.

03

Aug

Cheaper And Better Alternatives To Personal Loans

2023-08-03 06:21 AM

When you need quick and easy access to finances, personal loans seem to be the best way out. This is because personal loans do not require any collateral or guarantor and are usually disbursed within 72 hours if your loan application is sanctioned. As easy as it seems to access personal loans, you must however know that the cost of borrowing or the rate of interest that you are required to pay on such loans is pretty high between the range of 24-45% flat.The rate of interest is determined by your credit profile and CIBIL score and several other factors such as your income, how much of debt you already have, the reputation of your employer, the length of your service and others to mention a few. Your CIBIL score serves as a barometer of your credit service track record and is a major determinant of the interest rate you are required to pay on a personal loan.If you have been regular with your credit card repayments and maintain basic financial discipline, your CIBIL score should be in the range of 750 and above (out of 900) which is considered satisfactory. If your CIBIL score is lower than this level, your loan application for loan may either get rejected or you may be required to pay a higher rate of interest between 25-45% flat, which needless to say is pretty high. If you do not want to borrow money at such a high rate of interest and yet need the funds, here are some other options you may consider:Loan Against PropertyIf you are property owner in India, your financial woes may be addressed by a loan against property. If you need a loan amount that is upwards of Rs. 5 lakhs, a loan against property will suffice for you. Banks offer loans against residential or commercial property and that can range between 60-80% of the market value of the property and the interest rates and is offered for a tenure of 3-5 years. The interest rates on such loans range between 11-14%.Top Up LoanIf the amount of loan you require is not that high, you can also consider a top up loan on your existing home loan. Such loans are usually offered after you have already established a service track record with your existing lender. In other words, you can apply for such a loan after you have established a repayment track record of at least a year with your existing home loan lender. These loans are available at 0.25-1.25% over the current prevailing home loan rate and have a maximum tenure of 15 years. The loan amount is usually capped at Rs. 5 lakhs by most banks.Gold LoanGold loans are one of the fastest and easiest alternatives as compared to a personal loan and are available at an interest rate of 12-15% against gold ornaments, coins or any other form of physical gold. There are several gold loan institutions today where you can access a gold loan of anything between Rs. 10,000 to 15 lakhs easily for a short term of up to 12 months. Several banks offer gold loans too. All you have to do is to approach one of these lending institutions with your physical gold for an assessment. Based on their assessment you are likely to get a loan of up to 80% of the value of your physical gold instantly with minimal documentation.Loan Against Other Investments- FD/LIC Policies And SecuritiesWhen you are in dire need of funds, you may also consider taking a loan against your existing investments. Here are the main features of a couple:Loan Against FD Or An Overdraft Facility1. Value – Loans can be availed up to 85-90% of the value of the FD2. Rate of Interest – Interest rates are usually 1-2% higher than the rate of interest the bank is offering you on the FD3. Tenure -You can opt for any tenure so long as the tenure does not exceed the maturity dateLoan Against Securities1. Value – Loans can be availed up to 50-60% of the value of securities. Loan amount can be anything between Rs. 1-20 lakhs2. Rate of Interest – Interest rate range between 13-16%3. Tenure – Initially you can get a loan for one year and renew it as per your requirement.Similarly, you can take a loan against your other existing investments such as mutual fund units, insurance policies, national savings certificate (NSC) and even insurance policies. Taking a loan against these securities is a much more prudent thing to do rather than selling them of in haste when you are in dire need of funds. Thus as you can see, taking a personal loan need not be your only resort when you need funds urgently. All you need to do is to have a calm head over your shoulders and decide which is the best option for you. If you still think you cannot #BorrowRight, we at Moneywallet are at your service.

03

Aug

5 Reasons to Take a Personal Loan for Medical Emergencies

2023-08-03 06:18 AM

Medical emergencies can arise unexpectedly, creating a financial burden that can be challenging to manage. To overcome this situation, one of the most effective strategies for addressing such unforeseen expenditures is to apply personal loan online.This article will explore five compelling reasons to consider a Personal Loan for Medical Emergencies.Five Major Reasons Why You Should Consider a Personal Loan for Medical Emergencies1. Quick Access to Funds:They pay a lot of attention to time, especially when a patient has to be rushed to the hospital. Medical emergency personal loans allow the concerned party to get quick access to the required amount to sort out the medical emergency and do not require funds. Unlike other financing forms such as car loan, etc., which may take a lot of paperwork and time to get approved and the funds are released, a personal loan in India can be approved and disbursed quickly. It is also beneficial for critical medical circumstances because you know you have the money required to pay the hospital or clinic bill, surgery, or the fees of a doctor, medicine, and other essential things.2. Flexibility in Usage:An added advantage of personal loans is the flexibility of use. Yes, you can use the money from a personal loan for medical needs, including expenses for all forms of medical treatment included in the loan. This offers the opportunity for extensive treatment, with possibilities covered in hospitalization, surgery, medicines, or follow-up treatment. It also allows having financial variants for different expenses connected with the patient, such as continual treatment at home.3. Lower Interest Rates Compared to Credit Cards:Based on the results, although the cost of personally borrowed funds in terms of interest is higher than credit card interest rates, it is inexpensive to finance such medical procedures. Unforeseen medical emergencies are costly, and high-interest-rate credit cards are expensive to meet these emergencies. Personal loans are available with an interest rate compounded annually, and the costs will be relatively low in the future. They help bring about a much simpler process of satisfying the conditions for financial stability by removing most high-interest payment obligations.4. No Requirement for Collateral:Since many personal loans are unsecured, many do not require you to put your car or house on the line, hence the name – collateral-free. This becomes especially useful during health complications where one cannot secure any loan like personal secured loans. The lack of collateral increases the time factor, which is evident when a loan is sought and processed, hence the effective disbursement of funds. Besides these, personal loans do not require security; therefore, you do not risk losing your important property when struggling to complete the repayment.5. Improve Your Credit Score:Thus, taking a personal loan and repaying it on time will be beneficial, although the overall effect on credit scores will depend on the specific strategy used. Early reimbursement implies that credit has been taken responsibly to repay them, which is favorable to credit rating companies. Therefore, keeping a high credit standing improves the overall financial position and the likelihood of obtaining a better credit deal next time. In the case of medical conditions, this implies the availability of improved credit terms regarding your financial security in case of any other similar event in the future, hence the more extraordinary and continuous ability to await vulnerability to medical costs.Final Words!During medical emergencies for personal loans with Moneywallet, the necessary cash can be obtained quickly and without complications. It has a short approval time, the possibility to use the money for any purpose, lower interest rates, no need for collateral, and a positive impact on the client’s credit history – all these make Moneywallet a perfect assistant in managing unforeseen healthcare costs.

29

Jul

Personal Loan vs. Personal Line of Credit: A Comprehensive Comparison

2023-07-29 11:32 AM

Personal loans and personal lines of credit are two standard financial solutions for funding personal needs and wants. Flexibility is one factor that distinguishes them. Only by identifying their differences can we make an informed decision about them. Therefore, I am going to differentiate between them in the post. This post is about personal loans and personal lines of credit, and we will analyze them to help us choose the best finance option according to our situation.Personal Loans: A Brief OverviewA personal loan is a lump-sum amount borrowed from a financial institution, such as a bank or an online lender. It is typically unsecured, meaning you don’t need to provide collateral. Here are the key characteristics of personal loans:1. Fixed Loan AmountWhen one borrows money from a lender in the form of a personal loan, they are given all the funds at once, and then they have to repay them bit by bit each month over an agreed-upon time frame.2. Fixed Interest RateOne of the most manageable debts is one with definite monthly repayment amounts, such as a personal loan with fixed interest rates.3. Structured RepaymentPersonal loans, which are repaid, have a structured repayment schedule to cover a certain number of monthly installments. Depending on different individuals, the loan duration usually ranges from 12 to 60 months.4. UsePeople use personal loans for various reasons, such as debt consolidation, home improvement, medical expenses, etc. You have the chance to use your funds as you wish.Personal Lines of Credit: A Brief OverviewHere are the key characteristics of personal lines of credit (LOC): revolving credit accounts that function like credit cards.1. Credit LimitWith a personal LOC, you are approved for a specific credit limit. Unlike a personal loan, you can borrow any amount within this limit, up to your credit availability.2. Variable Interest RatePersonal lines of credit often come with variable interest rates, meaning your interest charges can fluctuate based on market conditions. This can lead to varying monthly payments.3. Flexible RepaymentYou have flexibility in repaying a personal LOC. You can make minimum payments, pay in full, or choose any amount in between. You can continue borrowing if you stay within your credit limit.4. UsePersonal lines of credit are versatile and can be used for various needs, such as covering unexpected expenses, managing cash flow, or funding ongoing projects.Comparing Personal Loans and Personal Lines of CreditNow that we’ve outlined the basics of personal loans and personal lines of credit let’s compare them across different aspects:EligibilityPersonal Loans: Lenders typically assess your credit score, income, and debt-to-income ratio when evaluating your eligibility for personal loan. Meeting these criteria is crucial for approval.Personal Lines of Credit: Similar to personal loans, your creditworthiness plays a significant role in securing a personal LOC. A strong credit history is advantageous.DisbursementPersonal Loans: Upon approval, you receive the entire loan amount in a lump sum. This is ideal for planned expenses with a fixed cost.Personal Lines of Credit: A personal LOC allows you to borrow funds up to your credit limit as needed. It provides ongoing access to credit for variable or recurring expenses.Interest RatesPersonal Loans: Personal loans typically offer fixed interest rates, providing predictability in monthly payments.Personal Lines of Credit: Personal LOCs often feature variable interest rates, which can lead to varying monthly interest charges. However, they may come with lower initial rates.RepaymentPersonal Loans: The repayment schedule for personal loans is structured, with equal monthly payments over a specified term.Personal Lines of Credit: Personal LOCs offer more repayment flexibility. You can choose how much to repay each month and low-interest personal loans as long as you meet the minimum payment requirement.PurposePersonal Loans: Personal loans are ideal for certain types of occasional expenses, such as consolidating debts, upgrading parts of your home, or buying expensive goods.Personal Lines of Credit: Examples of personal LOCs include covering emergencies and purchasing projects having uncertain costs. They are also helpful when managing cash flow.Which Option Is Right for You?Choosing between a personal loan and a personal line of credit depends on your financial goals and needs.Choose a Personal Loan: If you would like to make a one-time fixed-cost outlay and pay an even amount monthly.Choose a Personal Line of Credit: If you need constant credit access, would like to be free when borrowing and repaying, or foresee some changing or coming up charges. The decision should resonate with your financial strategy and skill in adequately managing the credit.In ConclusionBoth personal loans and personal lines of credit provide helpful money-related answers, and each has its benefits. Knowing the differences noted here will assist you in making a wise choice that is grounded in your unique financial status and objectives. For more info on personal loans explore with moneywallet today !

29

Jul

How Demonetisation will Impact Interest Rates

2023-07-29 11:29 AM

.In what is titled as a ‘bold’ move, demonetisation has got everyone’s attention at the same scale with people queuing up outside the banks to deposit old Rs 500 and Rs 1,000 notes.In the first four days of the announcement of demonetisation, banks recorded aggregated deposits of over Rs 1 lakh crore. And, most of these were done in savings bank accounts and current accounts, thus giving a boost to the CASA income.The good news is that with all this cash being deposited into the bank, customers are likely to benefit from lower cost of credit. Earlier, banks would charge a higher rate of interest to meet the demand and supply of cash. But, now that banks have a huge amount of money with them, they are in a position to meet new and more loan demands at a much lower interest rates.This Means The Lower Interest Rates Will Make The Following Loans Cheaper :Education LoansHome LoanMedical LoansIf You Don’t Believe Us, Hear It From The Industry Experts:“All rates will fall. It will happen very soon, although I can’t say when exactly this will happen.” Arundhati Bhattacharya, Chairman of State Bank of India, as quoted in The Economic Times.“The deposits are into savings or current accounts which are low cost ones. An increase in them should bring down our cost of funds,” said Axis Bank’s head of retail banking, Rajiv Anand, quoted by PTI.“After deposit of cash into banks, the money circulation in banks will improve. With the increase in cash reserves, interest rate on loans, as well as deposit, might go down,” Amit Jindal, Partner, Felix Advisory, as quoted in The Financial Express.Further, to have more proof to the pudding, this what the numbers have to say. A recent article released in The Economic Times pointed out that the Interest rates have dropped to 5%. This drop is from the earlier number which as high as 30% in the grey market, where a large under-the-counter lending business had been thriving.Though experts are touting a situation where loans and sectors like real estate will be cheaper, it’s time for us to soak in the changes and wait and watch its effects in the long run.For now, if you have any questions regarding how the Interest rates will affect your loan amount, do leave your details below and we’ll get back to you at the earliest.

28

Oct

9 Reasons to Opt A Personal Loan

2020-10-28 12:57 AM

In India, you can get various types of loans to fulfill your various needs. The interest rates, tenure and EMI schedule is decided on the basis of borrower’s profile. Amongst various types of loans, personal loans are the most opted type of loan in the country. Personal loans are easy to get and easy to pay off. We have listed a few reasons behind the popularity of personal loan1. They have easy availability:The main reason behind the popularity of personal loans is untroublesome availability. The personal loans can be acquired within 24 to 48 hours of loan application and submission of required documents. Almost all banks offer personal loans to its customer thus making it easily accessible.2. They don’t need any collateral:To get approval on a personal loan, you do not need to offer any collateral or guarantee. Bank approves personal loan on the basis of borrower’s income details and financial history. Your CIBIL score matters the most in terms of personal loan approval. As you do not require offering your fixed assets as mortgage or collateral, you can access the loan easily.3. They need minimum documentation:Unlike the other long term or larger loans, personal loans require very little documentation. Plus you don’t have to submit extra paper work for collateral as it does not require any. Thus these loans are approved quickly without any hassle.4. They are given in expeditious approval:As many financial institutions offer personal loans and they require minimum documentation, they are approved quickly. When it comes to online personal loan approval, they are approved quickly where as the paper approval takes not more than one to two working days. The mechanism of approving personal loan is very easy, efficient and hassle free.5. They can be used to consolidate your debts:When it comes to financial debts, it’s always wise to clear off a high-interest debt by taking a low-interest debt. If you happen to have multiple debts, you can combine them under one umbrella. By opting for a personal loan, you can pay off your multiple debts and be answerable to only one, which is a more hassle-free solution! Also you can clear your credit card bills by choosing personal loan for a balance transfer. This will allow you to enjoy lower interest rates.6. They are multi-purpose loan:The fund from personal loan can be used for any purpose. Be it a wedding or medical expenses; home renovation or personal bulk shopping, you can use these funds as they suit your needs. They can mainly be used to overcome any financial adversaries. Borrower can apply and access the loan amount without disclosing the purpose of the same.7. They are offered in adjustable sum:Based on various criteria like level of income, employment history, credit score and scope for repayment, you can get a personal loan ranging anywhere between Rs. 1,00,000 to Rs. 20,00,000. Though this also depends on the bank, the amount has always been extremely flexible.8. They offer flexible payback option:To payback your personal loan, banks offer you a tenure ranging from 1 year to 5 years. Thus it is easy for the borrower to pay back the loan with easy EMI policies. Though this depends on the amount of loan and the bank policies, it is always a better option from other types of loans.9. They come with varied interest rate:Depending on eligibility criteria, the borrowed sum, payback tenure and the lender (NBFC or bank), the interest rate varies on personal loan. They start from as low as 10.85%. Many banks use their specially developed interest rate calculator to give you a fare percentile of interest rate.Then what are you waiting for? Opt for a personal loan today!

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