Tag: emi calculator

How to Correct a Late repayment record on your Credit Report at Letzbank

Did you know that even a minor delay in repayment of your loan EMI or your credit card bill gets recorded in your credit report and forms the basis of your Credit Score? Therefore you need to take your finances seriously and live a disciplined life in terms of your finances.  If you have ever owned a credit card then you would know that your credit card limit is automatically enhanced if you make you payments in time however, if you fail to make the credit card repayment in time it can lead you into a debt trap which would ultimately lead to a poor credit report. Once you credit report is poor your credit score will automatically be poor, now the question arises how to set straight your credit report – here’s the answer.

Every banking or financial institution that lends money to people check their credit score and credit report before they lend the loan or offer credit card to the borrower in order to ensure that the borrower is a financially responsible citizen and will make the loan repayment in time. Any fishy thing found in the credit report or a low credit score would ultimately lead to rejection of your loan application or your credit card application. The banks or the financial institutions either ascertain the credit score or the track record of the borrower themselves or hire an agency to check the credit score and credit report of the borrow. The three credit bureaus in the country are Experian, CIBIL and Equifax.  You can also check your own credit report or credit score for Free from Experian at Letzbank portal.

So what would you do if you find that there is a late repayment recorded in your credit report? It is not a cake walk to strike off a late repayment record from your credit history and it is hard to convince your lender to ignore a mistake that you have made, therefore this is what you need to do to strike off a bad remark on your credit image:

 

  • Firstly you need to get a copy of your credit report. Once you received the copy of your credit report, you must check it thoroughly for any error or inaccurate information mentioned in the report including late repayment.
  • If there is a default since you forgot the date the due date you can request your lender to strike off on a goodwill basis – such arrangement is also known as “Goodwill Adjustment”. However, yourlender can only consider your excuse and make an adjustment if you have a good repayment history and have barely ever defaulted. It is solely for the lender to decide if he wishes to strike off your late repayment or not.
  • There can be cases where the lenders may require some kind of assurance from you part before he strikes off your late repayment record. They may often request you to sign up for auto-debit towards payment, so you do not default again.
  • You can also request your lender to remove the late repayment remark by agreeingto pay the outstanding amount either partially or fully.

 

You can also get in touch with an agency like Experian and they will be able to help you strike off your late re-payment record. Keeping a track of your credit report and making payments in time are two very genuine and doable ways so that you do not land yourself into the trouble in the first place. Check your Credit Report and Credit Score for Free from Experian at Letzbank!

 

Know Banks to offer Personal Loans through ATMs at Letzbank

Most of us who have had long standing relationship with a certain bank/s have received a call from the customer care offering a pre-approved personal loan. The competition between lending agencies has intensified so much that sometimes a long and reliable relationship is also not required or requested! Well, now the banks are ready to take the offer of personal loan a notch higher making it further easy and simple to avail it- by offering it through their ATMs. Before we tell you how the system is expected to work, let us first touch upon the very concept of personal loans.

What are Personal Loans

Personal loans are a category of loans that are meant for meeting personal expenses and emergencies. The best part about personal loans is that they can be put to use for plethora of purposes. Right from medical emergencies to your dream vacation, you can avail personal loan for just about anything. In some cases the bank may specifically debar certain uses of the loan money; same shall be mentioned in the loan document. With heavy competition to tap retail market such riders have become truly rare. Banks are now only interested in timely repayment of the loan amount. Personal loans are short term loans and need to be paid back within a year.

Advantages of Personal Loans

  • Extremely easy to avail as there are almost no conditions attached except repayment and tenure
  • Very quick processing time which makes these loans ideal for emergencies
  • Personal loans can be used for any personal use without giving an explanation to the lender
  • Minimum paper work and documentation
  • Available at competitive rates

Disadvantages of Personal Loans

  • They are available only for the duration of one year
  • Compared to other loans, the interest rate on personal loan is higher
  • Pre-closure and advance payments are usually not allowed or only allowed upon payment of penalty and charges.
  • Easy availability leads to misuse of these loans in the hand of borrowers.

Now that we have discussed the Pros and Cons of personal loans, let us move on to the new initiative taken by banks to offer personal loans through ATM.

How will it Work?

Usually you visit ATM to withdraw money or check your balance. Now every time you avail the service of ATM, after the transaction is over the ATM screen will flash the offer of instant personal loan to you. If accepted, it will immediately disburse the loan to you. This is a rather easy thing for banks to do and all they need is, robust software to handle ATMs across India. Usually bank has all important information about its clients and account holders. It is on the basis of this information that the banks offer personal loans. Their metrics computes the loan amount based on income earned, average account balance maintained, average spending on credit card and credit history of the account holder. With the introduction of new system, this information will be patched to your account number and recognised every time you use your debit or credit card.

Reason behind the move

There are certain well founded reasons behind this initiative. The first one being capturing the retail market which is presently flooded with borrowers who are availing mainly vehicle or home loan. Personal loan is still a category that does not interest a lot of people. Many borrowers are not even well aware of this category of loan. Secondly, the demand for corporate finance has remained and continues to remain flat. The only growth that is being seen is in personal finance at retail level. This move will reduce the queue for loan at banks thereby relieving a lot of man hours that can be put to better use.

For non-Clients

If a person who does not have any relationship with a particular bank yet wants to avail a personal loan then he or she can swipe any bank’s card in the ATM and request a call back by giving contact number.

Advantages and Disadvantages of the Move

At the very outset, personal loan through ATM has numerous advantages. It will over simplify the procedure and reduce congestion at the banks. Even persons who do not have any relationship with the bank will be able to approach and get in touch with their customer care without setting a foot in the bank. There is no time lag owing to loan processing, just press yes and receive the loan amount.

The main disadvantage is handling the cash amount in the ATM. A big amount getting dispensed catches eyeballs and can put the borrower at risk. The over simplification of the process may lead to incessant borrowing and misuse of funds. For those lacking financial discipline, instant personal loan could create a financial mess.

Withdrawal of personal loan from ATM is a big move by the banking sector and should fuel spending in retail sector. If withdrawing personal loan from ATM does not make you feel comfortable, visit us on letzbank where we get all categories of loan including personal loans, under one roof. Compare attractive offers from various well known names in the lending sector. If still in doubt, get in contact with our customer care for clarifications. We also have useful and innovative products other than loans like online Return filing platform in tie up with Clear Tax and Credit Score report powered by Experian. We also have an eligibility calculator which gives you an idea about the loan amount that you can apply for. Letzbank is your one stop shop for loans and returns. Visit us today and buy the dreams of tomorrow with our loans that take care of every occasion and need!

Advantages of borrowing Home loan top-up at Letzbank

Did you know that borrowing Home Loan Top-Up can be better decision to make than to borrow Personal Loan or Business Loan – Know how:

What is a Home Loan TOP-UP: Home loan top-up is a loan that can be borrowed over an existing home loan. Home loan top-up is offered to reliable customers who have sincerely made payments of the home loan they had borrowed. Bank would offer such reliable customers a top-up over the housing loan amount that has been paid thus far. Home Loan Top-up can be borrowed without any pre-condition therefore they are easy to be borrowed to meet any financial requirement be it a personal or even a business requirement. Let us know in detail why borrowing a Home Loan Top-up a better deal than borrowing a personal loan or business loan.

  1. Home Loan Top-Up are offered to existing customers: Since Home loan top-up are offered to existing customers therefore, there is no question of you being eligible or not to borrow a home loan top-up. You are eligible to borrow a home loan top-up if you are an existing home loan customer. However, you need to still meet the bank’s criteria to determine if you are eligible for home loan top-up on your existing home loan. You should have paid your home loan EMI for a minimum period of 2 to 3 years for you to apply for home loan top-up. Since you had already submitted your KYC documents and other necessary details or documents and the banks would have verified the same at the time of granting you the loan therefore, no further verification is required.
  2. Home Loans are offered at lower interest rates as compared to Personal Loan or Business Loans: if you compare various interest rates you would find that the home loan interest rates are lower than all the other loans as the home loans are offered at 8.35% to 12.50% per annum. On the other hand personal loans are offered at 10.85% upto 24% per annum. Business loans are offered at rate of interest starting from 14% upto 24% per annum. The comparison shows that given an option Home Loan Top- up is a better deal to grab than any personal loan or business loan.
  3. Home Loans can be paid over long loan tenure: We are all aware of the fact that home loans are offered for a really long tenure that can be extended upto 30 years. On the other hand personal loan and business loans are short termed loans that can be borrowed for loan tenure of 3 to 5 years max.
  4. Home Loan top-up can be availed at Low processing fee cost: Unlike processing fee of personal loan and business loan the processing fee required to borrow a home loan top-up is relatively lower. Processing fee to borrow personal loan or business loan is upto 3%, whereas the processing fee to borrow home loan to-up is 0.35% to 1%.

The article proves that given an option Home Loan Top-Up is a better deal to grab than borrowing any Personal or Business Loan.

Why credit Score is the only number you should be concerned with? at Letzbank

The credit score of a person is the sum of your entire repayment history. This credit score is determined by your debts, loans, missed payments, credit card and number of loans. The highest score is 900 and if your score is 750 and above that you are said to be within the Low Risk bracket. Therefore, higher the credit score lower is the risk involved while disbursing the loan and therefore higher is your eligibility. The credit score changes depending on your spending choices. So explore with us everything about the credit score in this article.

Why is your Credit Score Important?

Some of the reasons why the credit score is very important are that –

  • It is one of the factors that would determine whether or not your loan application will be approved. If your credit score is high it simply indicates to the banks that you can be trusted with the loan repayment.
  • Having a good score helps you in fetching loans at low rate of interests and therefore low EMI.
  • The credit scores and records are permanently saved on the portal and showcase your entire history. So make sure you have a good clean score.

How to improve the credit score?

  • Always make sure that you pay your bills on time. There are a number of simple ways to track your payments such as writing sticky notes on the fridge, maintaining a calendar of things to do, put a phone reminder or something but pay your bills on time
  • Do not use your credit card to more than the credit limit you can pa back, because small ratios are better for rating.
  • Even if you had a debt on you and you paid it out, don’t try to remove or delete that record, because it will be great for the banks to see that you did clear off your debts and didn’t keep it pending and unpaid
  • Don’t apply for multiple loans or credit cards all at the same time. Because if it gets declined also it gets recorded and has a risk of lowering your score
  • Have your name only for your accounts and not let others use your accounts. Because even though it’s not you the credit company will not know, so you will fall into trouble.

 

So these are few of the most important things to know about the credit score and why exactly it is such a serious thing. Remember that it is a long process to get the score back to good and so try your maximum best to not come under the risk bracket. If at all you find that your credit score is not that good, you can rectify your credit score by availing an expert help of organisations such as Credit Clear and your score can be improved. Hope this article was helpful for you all.

Know Quick tips of getting home loan approved at Letzbank

Want to buy your dream house but don’t have the savings? No worries at all because the banks are ready to help you get the home you love by offering you a home loan. This everyone knows that the banks are the biggest help but if you’re afraid listening to the rejection stories from the people who applied for the loan thinking it will happen to you too, then you have reached the right place, cause we are sharing you tips that will help you get your home loan approved.

Tips:

  • Clear your credit score – This is the number one thing to take care of because applying for not just the home loan but any kind of loans. If you have thought that the owed debts are at a different bank, organizations, etc. then that is not the case. The complete history and financial data is shared amongst the institutions. So always make sure your credit scores are fine and it’s better to take a no-dues certificate from them.
  • Have the answers before questioned – Some of the basic but important questions that the lending party would want to know are your monthly income, assets, your credit history, existing loans and your job background. Most of the times the rejection happens here in this step itself, so already getting prepared with these questions will help you be prepared to furnish your details more confidently with the lenders.
  • Be stable – It is very important that the lenders know that you’re stable with the jobs you do. Strictly avoid changing your job during the loan process. They will not be able to trust you with the commitment of paying your EMIs on time and regularly. But if it’s necessary for you to shift your employer during the loan process then make sure your pay is higher than the previous job and you’re not getting into a self-employed job.
  • Be careful with your spending – This is another important thing to keep in mind while applying for a loan. Make sure you don’t get into a bike loan, laptop loans or don’t take a big amount of personal loans before applying for a home loan, because what happens in this case is that already your EMI would be high as the product bought costs high. The home loan EMI depend on your monthly income and the spending you do in the particular month. So be careful of that.

The points given are very important, if you think you could skip any of it and try to still take a chance applying for a home loan, we recommend not to, because another point to keep in mind is that the banks do ask if there has been a rejection of loan previously and take your loan strictly, digging out the history and then the chances of rejection is more. So avoid that stage and approach the lenders fully prepared to get them to accept. Hope you get your dream home soon.