Category Archives: Loans

Second Hand Car Buying Tips

If you wish to purchase a second hand car, then it is absolutely essential to know how you can obtain a used car loan. There are a number of banks that offer used car loans which are quite simple to obtain if you follow a few guidelines. This form of a car loan takes into consideration the age of the car and its model for financing decisions. Mentioned below are a few things you need to keep in mind before availing a car loan.

The age of the car

Availing finance for a new car is relatively easier, but in case of used car loans, one of the crucial aspects of it is making a decision as to whether the required loan is worth taking up or not. The model of the car is also taken into consideration because if its availability in the market. If the model no longer exists, then there is a possibility it wouldn’t be financed. The age of the car and the tenure is used to determine the kind of finance it would generate. Also, the tenure is also determined on the basis of the age of a car.

Interest rates

The interest rates are based on the valuation of the car which is determined on the basis of the condition of the car, the number of kilometres it has undertaken and the model. This valuation will eventually help the bank of the financer to lend you money in order to purchase. Therefore, the interest rates are charged in accordance with the car model, the age of the car and the customer profile. It is better to look out for a bank than a lender because you will be offered a lowered interest rate via a bank than an NBFC. The processing of the documents does not take much time; it takes about 6 to 8 days approximately.

You can look out for a dealer

The current scenario has a growing number of people who sell their cars off as soon as a newer model hits the market. This way, you have a larger option to avail various used cars. Also, there are a number of organised dealers who source cars and certify them after which they put them up for sale. These dealers ensure the cars are in a great condition, accident free and whether the documentation work is complete or not. You can also avail a warranty of a few months to a year through these dealers.


Tips for Receiving an Approval for Small Business Loans

Securing funds for small business loans have become simpler; you need to follow the right steps and prepare in advance to increase your chances of securing a business loan approval.  Certain companies that are looking out to grow require these loans to increase their working capital, upgrade or hire more employees.

Take a look at the following details in order to avail a business loan:

Provide all your information

This is mandatory and you are required to produce all the specifics and details about how you intend to make use of the funds. You also need to provide them with information regarding how you will accomplish your goals; therefore, you should prepare in advance to answer certain questions that the lender will pose to you.

Share your financial information

You will have to provide your lender with all the financial information and background of your company and your future growth plans that include your personal information. This information will help the bank and the lender to gain an insight into your current financial scenario in order to sanction your business loan. This is mandatory because a lender would be required to know all your past history so that it is easier for him/her to approve your loan.

Try looking out for multiple lenders

This requires a bit of research where you can create a list of potential lenders and discuss with them the possibilities of the loan you wish for. This will help you create more options if any one of them declines your application. Also, their feedback will help you prepare better for future business loan applications.

Look for SBA lenders

Before you take any step regarding a business loan application, you should definitely visit counselors who can assist you with any loan process. They shall also help you with various products available that you may not be aware of. Therefore, with a little assistance, you may be able to secure a loan and build your business further.

Commercial Vehicle Finance and its Importance

First of all, what are commercial vehicles? These are vehicles, like pick-up trucks, mini-vans, three-wheelers, etc., that are specially designed to transport cargo or paid passengers. These vehicles are engineered in such a way that they are able to take on both the smooth city roads and the tough rural terrain.

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Alright, so what significance do these vehicles have for a country India? Well, our economy is booming, mostly due to small and medium scale businesses. These businesses have seen a tremendous increase in their supply needs, this requires them to have commercial vehicles. Usually, these businesses need to purchase more than one commercial vehicle, which puts a lot of financial pressure on them and to ease this pressure, commercial vehicle finance comes in.

Commercial-VehicleThere are a lot of private and nationalized financial establishments that provide commercial vehicle finance. Most of them would first try and understand the need of your business and would then tailor make their loan to best suit the growth of your business. These loans are applicable on almost all commercial vehicle brands and unlike other vehicle loans, are disbursed fairly quickly. Many financial establishments tend provide loan of about 75-100% of the price of the commercial vehicle, thus, letting business owners focus on the growth of their business and not on running around to gather funds. Interest rates too tend to be on lower side, typically ranging between 10-20%. Most establishments also require minimal documentation and provide you with various flexible repayment options.

Small and medium scale businesses are the backbone of our nation’s economy. Pick-up trucks play a major role for cargo needs, whereas mini-vans and other vehicles are used as a means to transport people. These businesses along with their commercial vehicles will play a vital role in the economic growth story of our nation. Commercial vehicle finance will simply help such businesses prosper.

What is a Construction Equipment Loan?

With rapid growth of infrastructure sector, several construction sites seem to emerge in different parts of the country. Such growth has offered several opportunities and jobs to numerous people. As construction site continue to emerge, the need for skilled labour and sophisticated equipment rises. However, the cost of construction equipment is high and rarely can a home developer afford to buy it.

To encourage small and mid-size home developers to purchase commercial construction equipment, banks and NBFCs are now providing specialized Construction Equipment Loan. By availing such loan, a home developer or construction business owner can easily purchase a commercial vehicle without the worry of financing.


For what all is this loan available?

All kinds of commercial equipment which include, but are not limited to, Earth moving vehicles, Material handling equipment, transportation vehicles, etc. can be financed with such loan.

Different types of loans are available for variable assets according to their market value. The terms and interest rates of such loans availed will differ.

How much loan is available?

Asset value decides the principal amount of loan. Banks and NBFCs grade customers and accordingly sanction loan in the range of 80 to 100% of the current value of the asset. Grading system varies with every NBFC. Magma, a leading NBFC, classifies applicants into following types: First time users, First Time Buyers, Small Business customers, Medium Sized business customers, and Strategic Customers. Categorization is done according to the requirements, risk profile, and size of business.

What are interest rates and charges?

  • Based on an array of factors, a commercial equipment loan will carry interest rate between 13 to 15%.
  • Moreover, an additional 3% fee is levied in case of late payment of instalment.
  • Some NBFCs charge a fixed fee for processing the loan while others charge certain percentage of the amount borrowed.

What is the eligibility?

Eligibility varies according to the type of applicant. Generally, an applicant will require:

  • 2 trade references
  • External/ internal guarantor
  • Property ownership proof
  • Experience certificate if applicable

What is the loan application process?

The application procedure for such kind of loan is simple and you will not require employing extensive amount of time and resources. You can directly approach the bank or NBFC, or go through a loan advisor. The processing time (generally 1 to 2 days) will vary depending on your customer type, amount of borrowing, and many other factors.

Easiest and quickest way for Servicing your Financial Need

Aspirations are an integral part of human mind. They compel us to buy, acquire, growth or do things. To fulfill such aspirations, you require a will and some amount of finance. While will is self-generated, finance can be either availed through savings or by borrowing a loan.

In reality, savings take a long time to achieve the financial goal and you may rarely keep up with the will to fulfill your aspiration. It is the option for the patient and the persistent individuals who accept certain delays in fulfillment of aspirations. However, for the fast, excited and impulsive ones, banks and NBFCs like Magma have launched the versatile gold loans.

Gold Loans in India

What is a Gold Loan?

A gold loan is a simple borrowing offered to needy individuals by banks in lieu of their gold belongings. It is one of the most secure kind of lending wherein the gold belongings are kept as collateral with the lender.

Why is it Different?

Gold loans are secured loans. Hence, they do not carry any kind of tedious sanctioning procedure or stringent credit checks. You can simply walk into the bank’s office with your gold valuables and walk out with a gold loan. Minimum documentation, quick sanctioning, and versatile repayment options make all the difference for this borrowing.

What are its benefits?

Unlike a personal loan or any other loan, gold loan is available at low interest rates of 11 to 15%. In addition to this, they carry zero processing fees. Moreover, you do not require to submit your bank account statements, income proof, and other repayment capacity assessment proofs to the lender. All these factors make it more favorable.

How much loan is sanctioned? And for how long?

The loan amount is sanctioned according to the valuation of the gold valuables. The loan tenure is short (up to 12 months) and you can repay the entire amount at the end. Furthermore, NBFCs also provide foreclosure option (with 0% fees) to the borrowers.

So, why be patient with savings or tensed with personal loans when you can easily meet your financial need with a gold loan?