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Getting a home loan with bad credit is possible

You really need to purchase a home. But you have a bad credit score. Can you even try getting a home loan, or should you rather rent property instead of buying?

You will be surprised about how many people are asking this question. And, the answer isn’t as simple as a yes or no. These are things you should consider when you want to buy a home with a bad credit score.

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Can you really get a home loan with bad credit?

This is the question. Can you really get a home loan with bad credit? Sometimes yes. It depends on why your credit score is low, how low your score is and what lender you are using.

Some lenders are willing to assist buyers with a home loan if they have a low credit score. However, then the credit score should not be too low and you need to prove that you can afford the repayment of the home loan. The only thing you need to remember is that the interest that you are going to pay, is going to be sky-high.

Increasing your credit score is always a good idea

Even if you are going through the process of applying for a home loan, you can still try to increase or improve your credit score. You can pay all your bills on time, and even pay more on each bill than what the premium requirements are. And, if it’s possible repay as many bills as possible before you apply for your mortgage loan.

If you got rejected because of your credit score, take a year and improve your credit score. Then, you can always apply again. No rule says that you can only apply once for a home loan.

Shop around and make sure that you get the best offer

Don’t accept the offer from the first lender. Shop around first and apply to as many lenders as possible. Especially to those lenders that accept people with low credit scores. With a couple of offers coming back to you, you can compare the offers and accept the one with the best premiums and interest.  Don’t take the first offer, just because you have a low credit score and are afraid to lose the offer.

Can you apply for a home loan with bad credit? Yes, and sometimes you will even get accepted. Some lenders will consider an application from a low credit score person. But, the interest will be higher and you might pay higher premiums over a shorter term. But, it is possible and you have nothing to lose other than to try getting an approved mortgage loan.

See here for best refinance home loans.

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Loans

Significant Benefits Of Taking Pawn Shop Loans

Pawnshops are becoming common these days since they provide hassle-free loans. Banks and microfinance are no doubt the best option for taking loans; however, pawnshops are the safer move since you do not have to wait for weeks. Also, all you need is a new collateral item for security, and in return, you would get the loan.

You will get instant loans

One of the most crucial benefits of taking loans from the pawnshops is they have amazing processing speed. Bank loans take about weeks for approval and processing. But, taking a loan from the pawnbrokers Essex is easy since you do not have to wait for weeks to get a loan. However, you should keep in mind that, when taking loans, you would have to provide security in return.

When taking the loan, you would have to offer the item you want to keep as security and take the required amount. The amount you would get would be one-third or one-fourth value of the item. If you agree to take the amount, then the owner would take the item and give the amount you need, instantly.

Easy to avoid the hassle of credit checks

It is yet another reason behind opting for the pawnbrokers Essex and taking loans from the pawnshops. They have a no-credit policy, which is no doubt useful. It does not matter whether you have a good credit score or negative credit score, pawnbrokers would not raise any objection before giving you the money. Collateral, which you would take with you as security, is enough to get a loan in return.

Therefore, all you need to take a loan from pawnbrokers is a valuable item, and you would get a loan. You need to worry that the collateral should be worth millions. As pawnshops only work with small loans, so you can already understand that your diamond ring would be enough.

Zero impact on the credit rating

As the pawnshops do not have any connection with the credit checks, therefore your credit ratings would not affect as well. The biggest problem that you might face when taking a loan from the banks or the micro finances is the late payments would affect your credit performance.

Later on, if you feel like borrowing money, bad credit would create problems for you. Hence, every time you need a loan in small amounts, it is best if you take help from the pawnshops. They do not create any problems when it comes to taking loans from them.

Option to get multiple loans

If you opt for pawnshops when it comes to taking loans, you will get unlimited loans. Apart from that, you would also get different loans every week, if you want. The reason behind this is that, depending on the collateral you bring, you would get the amount. Every time you bring new collateral for security, you can request for a loan, and as many times as you want.

Therefore, these are some of the significant advantages of taking loans from pawn shops. They would give you endless loans without any hassle.

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Loans

6 Benefits of Using an EMI Calculator

The equated monthly instalment or EMI as it is commonly called is the amount that an individual has to pay to the banks and financial institutions on a monthly basis in return for a loan. This amount can be calculated easily with the help of EMI calculators online.

What is an EMI Calculator

EMI calculator is an online tool designed to calculate the monthly EMI to be paid in return for a loan. The loan borrower needs to enter the preliminary details about the loan such as the loan amount, time for which the loan is taken, and the interest levied on the loan. Once this information is provided, the tool fetches the result and displays it in a simple and easy to understand format. This is an inclusive tool to get quick and accurate details about the EMIs to be paid. There are different types of EMI calculators depending on the types of loans such as car loans, home loans, business loans, personal loans, etc. These calculators can be used by individuals to get clarity on their monthly financial obligations and maintain their funds judiciously.

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Benefits of Using an EMI Calculator

Following are some of the major benefits of an EMI calculator:

  1. Convenience: One of the benefits of using an EMI calculator online is that it is easier to use as compared to the manual method. The user of the calculator just needs to input some basic information such as the amount borrowed, tenure of the loan, and the interest rate to get instant and reliable results.
  2. Accuracy: One of the commonest disadvantages of the pen and paper method of calculations is that they may yield inaccurate results due to negligence or calculation errors. An online EMI calculator safeguards against such inaccuracies by providing a hundred per cent accurate results within seconds.
  3. Fast Calculations: Another major benefit of using an EMI calculator online is that it renders results within a few seconds. While manual computations might take a lot of time and still have a probability of inaccurate results, the online calculator provides the output instantly. The user just needs to enter the required information and click on ‘Calculate’ to get the needed information in a blink of an eye.
  4. Specificity: Using an EMI calculator online also provides the benefit of specificity. This means that there are different calculators designed to provide information on diverse types of loans. Therefore, an individual applying for a home loan can use a home loan EMI calculator, one applying for a car loan can use a car loan EMI calculator, and so on.
  5. Graphic Representation: Most of the EMI calculators available online provide their output in a readable format. They not only provide the basic data about the loan and its EMIs but also give a pictorial depiction of important factors. These calculators also give a graphical representation of parameters such as outstanding principal, remaining time, interest rate, etc.
  6. Amortization Table: EMI calculators also provide an amortization table for each kind of loan. This table helps in examining the EMIs payable based on several factors and in analyzing the performance of the loan over time.

How does the EMI calculator work?

The EMI calculators require the borrower to input certain variables that are used to compute the EMIs and other details. These variables include:

Loan amount: This is the actual amount borrowed by the individual. It must be noted that the EMI is directly proportional to the loan principal amount

Tenure of the loan: This is the time period by when the loan has to be repaid completely. Note that the tenure of the loan, interest levied, and the EMIs are all directly proportional to each other

Rate of interest: This is the interest rate that is to be paid by the borrower. This varies from one loan to another. The EMI varies with the type of interest rate levied such as fixed, floating, or hybrid.

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Loans

Loan for unemployed individuals is indeed a reality now!

Availing a loan for unemployed individuals can be tough. Approval or rejection of personal loan applications mainly depends on your income. Personal loans are unsecured, and borrowers are required to meet certain eligibility requirements, the most important of which is the availability of a steady source of income. Since unemployed individuals do not have a steady source of income, their personal loan applications are often rejected.

However, there are certain kinds of loans even an unemployed individual can avail of when need be. Managing the household expenses is not easy if you are an unemployed person. An unexpected situation might appear that you may not have funds for. To cater to such financial emergencies, you can now avail of a loan. The following are the types of loans that can be availed by unemployed individuals.

Types of Unemployed loans in India

  1. Gold loan – Availing a gold loan is the most suitable choice if you are unemployed and in urgent need for loan. A gold loan is a common type of personal loan as it is relatively quick and simple. One needs to walk to their nearest bank branch to avail the same. To avail of a gold loan, one needs to provide their personal gold as collateral
  2. Secured loan – It is a personal loan in which an individual is required to provide the borrower with some sort of security against their loan amount. This reduces the risk for the lender who sanctions the loan. The loan amount will depend directly on the asset value and therefore, allows you to get financial assistance when you are unemployed
  3. Unsecured loan – An unsecured loan is issued to borrowers who have an excellent past credit repayment history and a good personal profile. High credit scores represent the borrower’s ability to pay back the debt. Unsecured loans are approved without providing collateral against the amount you borrow, hence there is a slightly higher rate of interest than that of gold and secured loan
  4. Loan against fixed deposit – An unemployed individual who has a fixed deposit in a bank can pledge their fixed deposit as collateral, in return for the loan amount. It is a secured loan and individuals get 75-80% of the entire fixed deposit amount
  5. Peer-to-Peer lending – Unemployed individuals can also avail of a personal loan from peer-to-peer lending companies. Borrowers can borrow money at a lower rate of interest and lenders can earn high returns. Peer-to-Peer lending companies offer loans from individuals who are ready to take on the risk of loaning to the borrower
  6. Loan against life insurance policy – Unemployed individuals can take a loan against their life insurance policy. When the policy is transferred to the name of the lender, the loan is sanctioned

Government loan schemes for unemployed individuals

  1. Prime Minister Rozgar Yojana – Individuals who have an education at least up till class 8 and are 18-35 years old are eligible for this scheme. A maximum loan of Rs 5 lakhs can be availed under PMRY
  2. Pradhan Mantri Mudra Yojana for Women – Women eager to start their own business can make use of this scheme. This scheme aims to raise the position of women by providing access to funds and by encouraging them to initiate their own ventures
  3. Agriculture loan – Individuals who are aged 22 and above and are engaged in the agriculture industry are eligible to avail of this loan

Also, for individuals who earlier earned a high salary, the probability of getting approval from your existing bank will be higher.

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Loans

Government Loan Schemes for Women in India

Government Loan Schemes for Women in India

According to the Sixth Economic Census released by the Ministry of Statistics and Programmed Implementation, there are about 8 million women who have set up their business in India. They represent around 14% of the total of 58.5 million entrepreneurs in the country.

Undoubtedly Indian women are no longer subjugated under family, and societal pressures and cab pursue their career confidently today. However, lack of finance can be a major setback in their entrepreneurial journey. The same can be a difficult one to overcome. In order to address this situation and promote more women to take up the entrepreneurial path, the government of India has introduced several Business Loans for women. These government loan schemes aim to allow easy access to funds for women entrepreneurs.

Here is a list of government loan schemes for women entrepreneurs in India:

Stree Shakti Package for Women Entrepreneurs

The Stree Shakti Package is anSBI-led scheme to address the needs of women entrepreneurs by offering various concessions and benefits. Women with 50% share in the ownership of any business or firm and have enrolled in the Entrepreneurship Development Programmes (EDP) organised by their respective State Government are eligible under this scheme. This scheme also offers a concession in interest of up to 0.50% against loans for more than Rs. 2 Lakh.

Apart from this scheme, you can also apply for other SBI Business Loans that are available at friendly terms and conditions.

Mahila Udyam Nidhi Scheme

Offered by the Punjab National Bank and Small Industries Development Bank of India (SIDBI), this scheme provides soft loans for up to Rs. 10 Lakh to support women setting up any small-scale venture. SIDBI offers various plans for setting up beauty parlours, daycare centres, purchase of auto-rickshaws, two-wheelers, cars, etc. The repayment tenor for these loans can be up to 10 years.

Cent Kalyani Scheme

Offered by the Central Bank of India, this Business Loan scheme emphasises on supporting women in starting a new venture or expanding or modifying an existing enterprise. This loan does not require any guarantor or collateral, and there is no processing fee charged as well. Women engaged in the rural and cottage industries, micro, small and medium enterprises, agriculture and allied activities, retail trade, and government-sponsored programs and those who are self-employed are eligible to apply for this scheme. The maximum loan amount available under this scheme is Rs. 1 crore.

Bharatiya Mahila Bank Business Loan

Initially implemented by the Bharatiya Mahila Bank, which later merged with the State Bank of India in 2017, this scheme offers women entrepreneurs the facility to apply for Business Loans of up to Rs. 20 crore for meeting their working capital requirement and business expansion for manufacturing enterprises. It also offers special collateral-free Business Loan with attractive rates of interest up to Rs. 1 crore under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover. The repayment tenor is flexible and can go up to 7 years. It offers a combo of working capital and term loans. Moreover, women entrepreneurs can enjoy a 0.25 per cent concession in interest rate. The interest rates start from 10.15% per annum.

Dena Shakti Scheme

This scheme is offered by Dena Bank for women entrepreneurs who need financial assistance in the fields of agriculture, manufacturing, micro-credit, retail stores, or small enterprises. There is a concession of 0.25% in the interest rates and the maximum loan amount offered is Rs. 20 Lakhs for retail trade, education and housing. Maximum of Rs. 50,000 is offered under the microcredit category.

Orient Mahila Vikas Yojana Scheme

This scheme is offered by the Oriental Bank of Commerce. Women who hold 51% of the share capital either individually or jointly in a proprietary or partnership firm are eligible for this scheme. In case of small scale industries, there is no need for collateral security for loans of up to Rs. 25 lakhs. The maximum repayment tenor available under this scheme is seven years, and there is a concession in interest rates of up to 2% for women as well.

Mudra Yojana Scheme for Women

Launched by the Government of India, this scheme offers Business Loans for Women who want to establish a small new venture and business such as tuition centre, tailoring unit, etc. This is a collateral-free loan and can be availed as per 3 schemes namely:

  • Shishu: Grants a Business Loan of up to Rs. 50,000 with the rate of interest being 1% per month or 12% per annum and the maximum repayment tenor is up to 5 years.
  • Kishore: Grants a Business Loan ranging from Rs. 50,000 to Rs. 5 lakhs for a well-established enterprise.
  • Tarun: Grants a Business Loan up to Rs. 10 Lakh for a well-established enterprise for further business expansion.

Udyogini Scheme

Offered by the Punjab and Sind Bank, the maximum Business Loan amount for women entrepreneurs available under this scheme is Rs. 1 lakh. This scheme emphasises on women entrepreneurs involved in agriculture, retail, and small business enterprises. Women between the age 18-45 years are eligible for this loan; however, the family income is taken into consideration and is set at Rs. 45,000 per annum for SC/ ST women.

With such great opportunities available, it is time for aspiring women entrepreneurs to take the leap of faith and move closer towards realising their dreams of becoming business owners.