Is Your Loan Application Getting Rejected By The Bank? Find The Alternative

Taking a loan is the best option to overcome the financial shortages. Whether you need to buy a new house or start a new business, taking a loan can help you to meet the financial needs at that time. Bank is the most common lending solution which is known to the people. They spontaneously look for the nearest banks and apply for the loans. However, not everyone gets the approval for a loan. There are a number of reasons for rejection of the loan application. The biggest reason is your low credit score.

Lending solution for the people with a low credit score

If you have ever failed to repay the loan or you are a loan defaulter then your loan application will be rejected by the bank. But, it doesn’t mean that you cannot get the loan. You can take help from the lenders who offer unsecured loans for your needs. In this way, you will be able to meet the urgent need of finances without any problem.

Many lenders are there who don’t have to do anything with your past credit. They are just interested in knowing if you are willing to repay the loan. By knowing this, they grant you the loan instantly for all types of personal and business needs. Don’t worry if you have struggled with credit in the past because unsecured loans don’t need any collaterals or your credit history.

Unsecured loans for the urgent needs

There are a number of occasions when you need the funds on the urgent basis. When you apply for the loan, you will never be able to get the loans quickly until you apply for the unsecured loans. This type of loan is an unsecured loan and is expected to be repaid on the next pay day. Thus, if you know that you will be able to repay the loan amount on your next pay day then apply for the loan.

Unsecured loan lenders grant you the loan without asking about your credit history which makes it more convenient for you to get the loan for any kind of need. It is a better option than applying for the loan from the bank as it is the quick unsecured loan.

Pay the loans at your own convenience

Unsecured loan providers take care of the convenience of the borrowers in several aspects. Apart from avoiding the heavy documentation work, they provide ease to repay the loan at your convenience. The borrowers can convert the repayment amount into the convenient EMIs so that they can repay the loans easily. They can even extend the loan repayment duration so that they don’t even have to face the pressure while giving the EMIs for a loan.

Make the application for loan online

These days, online lenders are available that offer quick loans online. Thus, you can apply for the loan from the comfort of your home and within few minutes of your application, you will get the approval for loan. You will receive the credit in your bank account regardless of your credit history. It is the simplest way to get the loan for various kinds of financial needs.  You will also be able to meet your urgent expenses with such types of loans.

List of Important Things You Need to Know About Personal Loans

List of Important Things You Need to Know About Personal Loans

Credit comes in several forms that include mortgage, credit cards, automobile loans, and personal loans. A personal loan is considered to be a credit that can assist you in making a huge purchase or to consolidate high interest debts. As personal loans come with low interest rates as compared to credit cards, you can consolidate several credit card debts into a single, and low-cost monthly payment. Before you plan for a personal loan application, it is very important to consider the pros and cons that can impact your distinctive credit picture.

About personal loan


There can be several objectives to apply for a personal loan. When you visit any financial institution such as a credit union or bank, you can ask to borrow money from them. The funds you receive from a mortgage can be used to fund these objectives.


Some of the personal goals for which you can seek a personal loan is to pay education, medical expenses, to buy a major household item, etc. Repayment of a personal loan is different from the repayment of credit card debt. With this loan, you pay a fixed number of installments over a specified time period till the debt gets completely repaid.

Things to know before applying for a personal loan

Application for a personal loan requires considering several things. There are a few terms that you need to know when applying for a loan:


This is the amount that you borrow. As you keep repaying your personal loan, the principal amount keeps on reducing.


When you take a personal loan, you need to repay the principal amount along with the interest. Interest is basically what a lender charges for granting the money and allowing them to repay it after the agreed time.


APR implies “annual percentage rate.” When you take any type of loan, then along with the interest, your lender will charge some fee for making the loan. APR comprise of an interest rate as well as the lender fees to provide a clear picture of the actual loan cost of your loan. This rate helps in effective comparison of the value and affordability of different personal loans.


The number of months for which you agree to repay the loan is referred as the term. This term is notified by the lender when he approves your application for a personal loan.

Ways to get a mortgage loan?

To get the best assistance from a mortgage firm, you need to ask a successful and an experienced local real estate professional.  If you don’t know any good local mortgage firm, then you can seek the help of a top real estate agent in that area. They will provide you recommendations of some reputed mortgage firms.


Credit can prove to be an influential financial tool, but taking a loan is a serious responsibility. Whether you want to buy a car or house, or to break a big expense into manageable monthly payments, different types of credit serve a specific goal that you may have.


Learn About Tax Exemptions on Home Loan

Learn About Tax Exemptions on Home Loan

To have your own home is the dream of every person. However, not many people are aware of the fact that your home loan can provide you tax benefits. This article will help in educating readers on what type of tax benefits can they expect from their home loan and ways to take maximum advantage of it.

What is making home loan so desirable among people?

Up to 85% of the total house property price can be issued in the form of a loan. Tax benefits have been the major attractive feature for people who are buying a property on house loan. This makes more and more people keen in taking a home loan.

Tax exemption rules pertaining to home loan

According to the 2018 budget, property owners that have rented accommodation can deduct a maximum interest of Rs 2 lakh p.a., after adjusting the amount of rent earned on the home loan.

Any amount more than Rs 2 lakh will be carried forward to be evaluated in the 8 assessment years. People who have got the same home and have taken a house loan are eligible for Rs two lakh deduction on the amount of interest paid towards the home loan.

If the house property is sold within three years of the date of purchase, then an individual will be required to pay the tax according to the slab rate. This is because the total profit earned on sale will be considered as “Capital Gains”.

If the house property is not acquired or completed within five years from the date of taking the loan, then an individual has the right to avail interest benefit of Rs 30,000.

What type of tax benefits can you expect from home loan?

Following are the tax benefits that can be claimed as “deductions” under relevant sections of IT Act

  • Tax benefit applicable on principal amount under section 80C states that a HUF (Hindu undivided family) or an Individual is eligible to avail tax benefits on the principal repayment amount of the home loan.
  • Registration charges and stamp duty are also entitled for
  • Life Insurance Premium, EPF, NSC, ELSS can be claimed with the home loan to get an overall deduction of 1 lakh rupees in a year.
  • Home renovations/additions or commercial property on existing property isn’t eligible under section 80C of IT Act.
  • The tax benefit applicable on home loan under section 80C is permitted post completion of house construction and issuance of the “Completion Certificate”.
  • Interest payment under section 24(b) can be availed on interest payable on the home loan that is taken for construction or purchase of a house.
  • Property owners of let out home can claim full amount of interest, but those who have self-occupied properties are eligible for exemption up to Rs. 1.50 lakhs p.a.
  • Loans taken from family and friends can be included to obtain tax benefits.


By being informed about the tax benefits, a taxpayer can claim additional benefits or extra exemptions as per the regulations stated by the ITD (Income Tax Department).


How Does the Unsecured Loan Work?

Unsecured loans are one of the easiest loans that you can get in case you are stuck with the immediate payment problem. All that you need to do is write a post-dated check of the loan amount that you need plus the processing fee as needed. The required amount will then be credited to your bank account. Your amount will be automatically repaid after a certain period, when the lender deposits your post-dated check to his account.

Lenders will usually hold the check till your next pay day. Borrowers can also return the money in cash if he wishes to. In case the borrower is unable to repay the loan on the specified day then he needs to pay a certain extra amount and extend the due date further. The loan amount is usually not a very big amount and it is in the range of $100 to $1000. The finance charges are also based on the rule of the particular state which may also differ.

Usually the loan period is for 14 days and the loan is a bit costly as the annual rate of interest is about 400%. In case you default then there is a penalty imposed on the borrower and the due loan amount becomes very big. Therefore, such short-term loans should not be allowed linger on for a long period.

Requirements for an unsecured loan

In order to get such a loan, the lender must have a bank account and a steady source of income so that he can pay back the loan. He also must have a valid ID however the lender will never check the credit rating. Lender will also not ask about the ability to repay the loan since this type of loan is more based on lender’s ability to obtain his money back and less on the ability of the borrower to repay.

According to data available 80 per cent of the borrower of unsecured loans usually roll over their loan or again borrowed loan within the next month. Online borrowers are usually the maximum among the defaulters.

What is the legal status of unsecured loans?

In the 32 states, this high cost unsecured loans have been authorized by the states and have fixed their own rates of finance charges. Some of the states are little liberal towards the borrower and the loan is a bit less expensive in these states. Those who apply for online unsecured loans are subjected to state licensing laws and the rate caps.

People who are working in defense services and their dependents are provided special protection by law. The lenders cannot charge more than 36 percent annual interest from them.

People who do not have sufficient bank balance or those who cannot use a credit card facility usually apply for such loan. Annually about 12 million people in America avail such kind of loan to meet their emergency expenses and 80 percent of them usually default while repaying the loan. Among the defaulters most of those who apply for such a loan from online. One can really fall under the debt trap if such kind of short-term loan is not cleared in a timely manner.

How Can You Get Unsecured Loans With Bad Credit Score?

People having bad credit scores find it really troubling to get the loan. Unsecured loans are one of the alternatives for borrowers who need quick money to rebuild their credit. But it is not always a good option for their money problem. Unsecured loans are just like a cycle of debt and once you get trapped it is very hard to get out of it. So, borrowers need to approach this type of loan carefully and by having complete knowledge of the terms and conditions of the loan.

Determine if unsecured loan is the right option

  • Evaluate your options – when you are in need of funds, you can consider unsecured loans. It is better to evaluate other options as these loans involve a high rate of interest which you might find tough to pay back. However, if you have a good job then there is no problem as you might be able to pay back the funds easily.
  • Know about the basic process – a unsecured loan is an unsecured or small loan which you have to pay at the fixed day. It is generally a type of loan which is only applicable for two weeks or one month. To get a loan you will have to fill an application form mentioning the amount that you want to take. They also charge some fees. You will get your check of loan by the company on the assigned day.
  • Determine the problems – there are many times when people do not have funds at the time to payback. To ensure that their loan is paid back, they take another short term loan. As these are quick loans and have instant approval, people keep on taking loans and get trapped as they are not able to pay back the high interest rates. So, in spite of getting into debt cycle, it is better to talk to the service provider and take some more time for payback.

When applying for an unsecured loan with bad credit score

  • Know the eligibility criterion – before going to have an unsecured loan, ensure that you are capable and eligible to repay the amount. A lender may require some information about the borrower like you have to give a proof that you are above 18 and citizen of the country. Your contact number, a proof of your employment, a proof that you have a bank account and an email address.
  • Apply online – you have to fill out an application form, make sure to read all the instructions carefully. If you have any doubt related to the application, you can clarify it with your lender. After confirming all the issues then agree with the application and fill it properly. Make sure that you take the loan amount only that is needed by you. Taking extra money can only be a burden on you as you will have to pay a good amount as interest on it.

There are people who take instant loans to enjoy the luxuries of life but it is recommended to take the loans just for your emergency requirements.