Personal loans have a unique feature of coming into the picture first, when facing a financial crisis due to emergency of any kind or even a long planned and well – thought over expense. Personal loans are a helpful tool in case of medical urgency or even to redo your living room. No one from the lending institute would ever come back and ask you about the area of usage of the disbursed funds. The absence of any kind of collateral or a security also makes personal loans one of the highest selling asset products offering by any reputed bank or a financial institution.
Next step is to obviously choose from the various options available around us. Nowadays, the lending institutes try to aggressively sell the loans. Remember the last time your friends about receiving another call from a loan department and getting bothered! However, you need to research on seeking feedback about the lowest interest rates and low turn-around time for processing of loan application.
Once you have chosen about the loan amount and the institution where you will be borrowing from, you need to adhere to the eligibility criterion monitored by the borrowing institution. Among the other documentary requirements, one check is completed from the bank’s end – CIBIL score.
What is a CIBIL score?
CIBIL is the abbreviated notation for The Credit Information Bureau (India) Limited. CIBIL happens to be an agency which provides credit history and associated reports linked to any individual or even a commercial set ups. CIBIL agency possesses records and details of your loan of any kind or credit cards even. This being an independent agency, helps to provide the most sought after platform by banks and other Financial Institutes, the credit worthiness of a possible lender. It reflects the history of lending by an individual and the associated repayment history. Any EMI skip or settlement of a long standing overdue for any loan account or credit card by an individual gets captured in the CIBIL scores. Data available on CIBIL gets updated every month with the help of submission of information by various lending institutes.
Good CIBIL score
CIBIL scores typically range from 300 to 900 for a person having any kind of credit history, 300 being the lower end of the score range. In order to be considered eligible for a personal loan, lending institutions look for a safe CIBIL score between 750 and 900 of the borrower. One might question in this scenario, whether a person having no credit history of any kind stands a good chance to get his loan application processed? The response is – NO. The reason behind this is the lenders are no really sure whether you really possess an appetite for credit at all.
You might have a pertinent question post the above information. Why such a high CIBIL score requirement for seeking a personal loan? Simple explanation would be the boon of personal loans –i.e., not seeking collaterals, becomes the bane for the lender. Personal loans have been considered by all lending institutions being an unsecured asset type hence making them very risky. A high CIBIL score would direct the lending institutions to ascertain whether a lender possesses a habit of a disciplined repayment.
Nowadays, CIBIL allows any individual to check his/her credit scores online post submission of a small fee. A tentative lender can check his score directly in case he is unsure about the same. The latter situation is desirable in such a case, since a rejection of any kind of loan application can further bring down the credit scores. On the other hand, a good credit score of 750 and above can help you negotiate better terms with any lending banks/institutions.
In situation where your loan application has been rejected by any bank due to a bad credit score, it is prudent not to apply for a loan immediately at some other organisation. First and foremost, one should check the CIBIL report in details and work towards clearing dues or unattended loan/credit cards.
An individual has to practise to be careful and disciplined while managing loans and credit cards. This can serve a long way to achieving the financial goals in the long term.
Applying for a credit card has become very simple nowadays. All you have to do is visit your bank or even simpler, log on to the bank’s website. Everything can be done with a few clicks. Similarly, you can also check the status of your credit card application with ease. Understandably, you wait for your credit card and any delays in the process can be demotivating. Thankfully, you can put the speculations aside and see what is happening to your application on your bank’s portal.
Checking the status of your credit card application online
Like mentioned above, it is very simple to check the status of your application. Here is what you have to do:
1. Log on to the bank’s website.
2. Open the link to track the card (commonly spotted on the left panel).
3. Enter the application reference number or application form number in the space provided.
4. Enter your mobile number or your date of birth (for verification)
5. Get to know the status of your application
Some banks also provide this service via text messages. All you need to do is send as SMS to the number provided with all the details. You will then get a reply with the status of your application.
What are the statuses that are commonly seen?
When checking for your credit card application status online, you will see any one of the following:
• Application approved
• Application declined
• In process
Let us take a closer look at each.
Application approved – This is a very positive status report as once your application is approved, your entire credit card journey will commence. The bank, after going through the profile of the consumer and the documents submitted, decides whether or not it will issue the credit card. Your application getting approved means that the bank is happy with your profile and would like to issue you a credit card.
Application declined – Whether a bank’s representative called you directly and convinced you to take a credit card or it was your own decision to apply for one, your application can be declined. Many people are left confused as to why their application got declined, but there are some very basic reasons behind this. If you find your application has been declined, check to see if you submitted all the correct documents. Then, if you are employed with a lesser known company or are unemployed or self-employed, then the bank may have thought of you as a potentially risky person to do business with and therefore declined your application.
In process – This status message means that your application is still being scrutinized, your credit scores evaluated and your overall financial health is being looked into. Banks exercise some caution before issuing credit cards to ensure that the customer doesn’t become a defaulter later on. So this status may take some time to change into either an ‘approved’ status or a ‘declined’ status.
Despatched – If you see this status when you log on to check the status of your credit card application, then you must feel happy! This means that your application has been approved and your card is on its way to reach you.
Other ways of checking the status of your credit card application
Apart from checking the status online, you can also visit a branch of the bank and speak to a customer relationship officer directly. If you provide them with the basic details (the same details that you need to enter on the website), they can check the status and let you know instantly. Alternatively, you could also contact your card agent or broker through whom you applied for the card. It is the broker’s job to provide you with all the information that you need regarding your credit card. Give him the required data and he will do the job for you.
So as you can see, it is extremely easy these days to know exactly what is happening to your credit card and how far away it is from you! Like all banking transactions, checking the credit card application status is also extremely simple and you can carry it out without any difficulty whatsoever.
Gold loan, as the name implies, is a loan that is offered by banks to the consumers against their pledging of gold ornaments like gold ornaments, gold coins etc.Gold loan is offered by all types of nationalized banks, private banks as well as other financial companies at very competitive rate of interest. They are generally used to carry out all the basic household requirements of the consumers like children’s education, marriage etc. Presently there are many financial companies offering these gold loans at attractive interest rates. Let us have a look at the top 5 leading companies offering gold loans:
- Muthoot Finance Gold Loan
- Mannappuram Finance Gold Loan
- Union Gold Loan
- HDFC Gold Loan
- SBI Gold Loan
Muthoot is the leader in the Gold Loan race while SBI also gains the number 5 spot in our list. Since these two are among the top players, it necessitates knowing the reason why. The Gold Loans promised by them must have some benefits which ensure the leading spots. So, let us delve into the Gold Loans of Muthoot Finance, a Non-Banking Financial Corporation and SBI, a leading public-sector bank.
Muthoot Finance Gold Loan
Muthoot Finance is one of the leading and largest gold loan providers not only in India but also globally. They have been taking into account all the gold loan needs of the customers at very competitive interest rates for the past 129 years. Let us have a look at the features of Muthoot Finance Gold Loan:
- The loan is distributed as quickly as within 5 minutes.
- The customers can enjoy the loan at an amount as low as Rs.1500.
- The loan amount has no maximum limit.
- It offers prepayment of loan option to the applicants without any charge.
- Simple loan application process involving minimal documents.
- The gold, against which the loan is taken, can be valued in the safety of the house of the applicant.
- Quick loan disbursal process increases customer relations
- The gold ornaments of the applicants are stored in a safe environment.
SBI Gold Loan
State Bank of India is also one of the leading gold loan providers in the country. They offer loan to the applicants in exchange of gold items like gold ornaments, gold coins etc. at very competitive interest rates. Let us have a look at the features of SBI Gold Loan:
- Simple loan offering procedure.
- Comparatively less paperwork required.
- Minimum loan amount is Rs.20,000 and maximum loan amount is Rs.20 lacs.
- Any person with a fixed monthly income like pensioners, bank employees can take up this loan.
- Lower interest rate on the loan granted
- Gold loan is offered to anyone above the age of 21 years.
- It accepts security of gold ornaments like gold coins, gold jewellery etc.
- Nominal loan processing fees is levied.
The above were the benefits of Gold Loans from each institution and the following table provides a comparative analysis of both the loans for a bird’s-eye view.
|Points of analysis||Muthoot Finance Gold Loan||SBI Gold Loan|
|Loan variants||The company offers gold loans in 8 different type of variants||Only one type of Gold Loan is available with the bank|
|Rate of interest||Interest rate ranges between 14% to 24%||Interest rate remains constant at 11.20%|
|Minimum loan||Minimum loan amount is Rs.1500||Minimum loan amount is Rs.20,000|
|Maximum loan||No maximum loan amount limit||Maximum loan amount is Rs.20 lacs.|
|Repayment tenure||The loan can be repaid within 7 days or within a maximum of 12 months||Repayment period of 30 months or 36 months is available depending on the nature of the loan|
|Evaluation of Gold||In-house evaluation of gold possible.||No in-house gold evaluation done.|
Now you know why these two Gold Loans are placed in the leading spots. Gold is not bought on a daily basis so why not do a detailed study beforehand and then opt for the best gold loan plan that would suit the needs and requirements of the applicants? The benefits of the leading plans are discussed above and you can make an informed decision. So now, secure your gold in the best possible hands and enjoy the benefits of the loan which is easily available, has lower interest rate and can be put to multiple uses.