Month: October 2016

The No Nonsense Guide to Personal Loan EMI Payments

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Personal Loans Guide

Most of us get a personal loan to meet the current financial crisis but later fail to pay off the loan debts on time. To avoid getting into this situation, it is wise to read the fine print carefully and look for low interest rate loan schemes before signing the dotted line. Although it is good to pay all the loan debts on time, but when it comes to personal loans, the sooner you pay, the better will be your financial health and the credit score. If you are one looking to pay off your debts in the shortest possible time period, in the subsequent sections we will discuss some tips that you can follow:

  1. Choose the best home loan deal: Someone rightly said that the process of clearing loan debt faster starts at the time you get a loan. Make sure you choose the personal loan wisely by comparing the options available to you. Remember that the rate of interest on personal loan schemes varies at least 2-6% between lenders. Therefore it is good if you compare interest rates online before finalizing any one personal loan scheme.
  2. Check for no payment penalty: Most banks charge a penalty if you pay higher EMI’s to pay your loan faster this penalty is irrespective of the personal loan interest rate on offer. They do this to make up for the revenue loss that will incur on interest income. Thus to avoid getting into this issue, it is wise to choose a bank that offers zero pre-payment penalties on personal loan EMI’s.
  3. Choose the shortest loan tenure: By using easy and flexible EMI calculator, you can determine the loan options with shortest loan tenure. EMI is all about the interest rate, loan amount and tenure. Once you have opted for the personal loan with low-interest rates, you can choose the shortest EMI tenure based on your paying capabilities.
  4. Streamline budget and keep a check on unnecessary expenses: Making a budget and streamlining expenses is the best way to pay off the loan debts earlier. It also allows you to spend wisely and allocate your funds as per your basic requirements. Also, it allows you to keep a track on where your income is spent and you can easily cut down on charges that seem inappropriate to you to pay the loan debts faster.
  5. Create an emergency fund: Always create emergency funds to make sure that you can pay the loan EMI’s even in adverse situations that demand unexpected money disbursals. Missing EMI’s will add to your loan interest. It will also impact your credit score and make your future loans more expensive to you.
  6. Repay high-interest loans first: Making a list of all outstanding loan and them paying the one with high-interest rate can benefit you at large. Once you have cleared the most costly debt, you can move forward to pay the less expensive one.
  7. Monetize Assets: You can even choose to pay your home loan by monetizing your assets whether it a house, car, your life insurance policies, bonds, shares, etc. You can use these as collateral to secure a low interest secured loan from a lender of your choice.

These are quite a few significant tips that you must consider to pay your personal loan debts on time. Also, you can try and get your outstanding personal loan converted to a secured loan using your vehicle or residential property as security. But remember, this can only be done if your house or vehicle is free from various sort of debts. However note that if you fail to pay this loan, you may end up losing your collaterals. So it is a must to determine your condition and your debt paying capability before keeping your valuable property/vehicle on stake.

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Why We Love SBI Credit Cards (And You Should, Too!)

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In today’s digital age we come across hundreds of revolutionary innovations driven by technology and each one of those making our life better and smarter. One such path breaking idea was that of a “Credit Card”. In ancient days we used to trade through the barter system, then came an era of exchanging metal coins for the goods and then we invented the coins and the paper currency to do commerce. But today in the 21st century, we needed something even more better, faster and more convenient than all the older methods of doing commerce and so was invented the Credit Card – famously known as the ‘Plastic Currency’ worldwide. Credit card has transformed the way we make our purchases. It has completely changed the purchasing perception of customers across the globe. The traditional way of keeping cash at hand for purchasing is rapidly becoming obsolete. They are the most convenient way of paying for absolutely anything and everything that you wish to own, from a movie ticket to flight bookings; from clothes to furniture; almost anything under the Sun can be purchased with the help of a credit card.

sbi credit card
sbi credit card

Prima facie even though the Credit Card resembles the Debit card there are few functional differences between the two. With Debit cards we can withdraw funds from the account with which it is associated whereas in case of the Credit cards  – instead of deducting amount directly from your associated account it provides you with short term loan which we have to pay off within a stipulated time failing to do so interest is charged on the funds borrowed. The beauty of Credit cards is that they fulfill the urgent need of money without needing to spend a single penny in cash.

Credit Cards provide various benefits to us they can be listed as under:

  • Convenient: They prove to be more convenient and safe rather than carrying cash around.
  • Record Keeping: Credit card statement provides for monthly statement for the expenses made using the credit card so record keeping and keeping a track of expenses becomes easy.
  • Instant Money: Credit cards satisfy the need for instant money and offers easy repayment when we have cash at our disposal.

Now a days, every bank provides for Credit card facility to its customers, every bank has come up with various schemes and facilities as per the needs and requirements of its customers but here are the reasons why we love our SBI credit card and prefer it over Credit cards provided by all other banks and we bet the facilities provided by SBI Credit Card will probably make you fall in love with it too!

  • Extensive options: SBI Credit Cards offer extensive options for all our requirements, SBI has specifically designed the Credit Cards to cater the needs of both personal and corporate customers.
  • Unique Features: Every credit Card available with us is designed to cater our every need; may it be earning reward points against purchases and repurchasing through earned reward points or earning frequent flier miles or discounts on various lifestyle products and brands or movie tickets or booking a train ticket and the list goes on.
  • Lower Interest Options: SBI Credit Cards offers the lowest Interest Option Schemes amongst its peers for repayment of Credit Amount. SBI offers unique facilities of transferring balances of your ongoing credit balances of other banks Credit Card to your SBI Credit Card and your ongoing EMI’s to SBI Credit Card. We can also avail Felxipay option for the payment of credit balances.
  • Encash: Encash is other unique feature provided to a few select set of SBI Credit Card Holders. Encash is pre-approved money on demand facility to the cardholder. The amount can be over and above the existing credit limit or within the credit limit of the cardholder.
  • Easy Money Availability: As customers of SBI credit card holders a facility of easy money is available for us. In this the easy cash is available equal to the amount balance on our credit card. We can either demand for this money on our doorstep or can have an ATM withdrawal of the balance amount on our Credit Card.
  • Insurance: SBI Credit Card Holders enjoy insurance facilities in various forms like Insurance against Card theft, Hospital cash, Accident Shield Insurance cover and Family health Floater. We can avail any of the above insurance facilities as per our requirement.
  • Utility Bill Payments: Credit Card Facility provides for payment of utility bills at a click of a button at our own convenience.
  • Easy Accessibility: We have easy accessibility to the credit card statements and SBI Card Account anywhere and anytime through SBI card online, Go Mobile App or Simply through an SMS. 24*7 Service is available to us on tip of our fingers.

The below figure depicts the various credit card products that SBI has on offer:

why-we-love-credit-card

SBI Credit Cards Family

The utter luxury of variety of options, features and benefits simply makes us fall in love with our SBI Credit Card. Lastly, we would like to just one thing – Try SBI Credit Card ones and we bet you won’t leave it forever!!!!!