Your 5-point guide to availing instant loans

#Business, #China, #Evergrande, #Gold, #loans, #short-term personal loans


Right now, the world is talking about Evergrande, the Chinese real-estate giant almost 300 billion dollars in red, teetering on the brink of confirmed payment defaults, threatening to bog down the Chinese economy and the global one at large, with experts terming this as China’s very own Lehman moment

According to reports, founder Xu Jiayin borrowed heavily over time to build this now-crumbling empire. Out of the 310 billion dollars outstanding debt the company had amassed, the largest for any publicly traded real estate company in the world, almost 37 billion dollars was due shortly, massively exceeding the company’s total cash balances of just about 13 billion dollars.

Now, with almost 800 unfinished residential projects, millions of partially invested home buyers, and unpaid suppliers, Evergrande is perhaps quickly becoming a study in ineffective debt management.

Availing Loans

At the outset, personal instant loans are a supremely convenient option to meet your immediate financial requirements and desires. And since there is no requirement of collateral as well, they are easier to avail, but beware! 

Unsecured as they are in nature, extremely high-interest rates tow these loans. Hence, here is your 5-point guide to look out for before applying for these loans, so that you don’t sign up for a financial nightmare! 

  • Ensure the authenticity of the platform and process 

Make sure that the platform you’re borrowing from has RBI authorization, licenses and is registered as an NBFC, bank, or as an organization partnering with the two. Lack of display of the license number prominently on the website is a red flag, and however lucrative the interest rates might seem on such sites, it’s best to steer clear from such platforms.

Per Charlie Lee, Founder, and CEO, True Balance, “There are innumerable illegal instant loan applications, but that doesn’t take away from the fact that there are enough and more lending platforms that are licensed by the RBI and authorized to lend credit safely and securely. Consumers need to, however, ensure to check a platform is government authorized and recognized. The company must also have a registered office in India. The entity should have a functional website. Most importantly, borrowers need to check for necessary compliance such as licenses, investments, and the transparency of the processes, which is typically shared on the company’s website.”

Another red flag to look out for is the disbursal of loans without carrying out KYC. To maintain transparency and credibility, all major lending platforms run an online check to validate and authenticate your identity via Aadhar.

  • Take only when urgent, and only when you need

With lending platforms disbursing loan money in a matter of minutes, the temptation to give into borrowing a higher amount can be immense. But remember that a higher amount comes with higher interest repayments, which means you will need additional funds over the coming months to pay back the EMIs.Consider your financial situation during the loan repayment tenure to ensure you are on the safe side. As per personal finance strategist Nema Chhaya Buch, borrow only when it is urgent. 

“The loan amount, ideally, should not be very high, with due consideration given to the interest rate charged. Check for important details like your credit history, repayment tenure, your financial position during that period, loan agreement details, and more”, she elaborates. 

  • Consider any alternative loan avenues and all hidden charges

Before applying for a personal loan, consider other alternatives like loans against FDs, gold, or shares. Since these loans have an asset as collateral, the interest rates will be generally lower, meaning you will be saved from the hefty interest payment amounts that usually comes along with personal loans.

In the case of gold, for instance, Ankur Gupta, co-founder, Ruptok Fintech, envisions immense digital disruption potential in the Rs 4 lakh crore and growing gold loan segment, given that a major part of this sector is unorganized and there is an immediate demand for quick solutions to take online this conventional yet favored avenue of availing loans, which was only exacerbated by the deteriorating economic conditions during the pandemic. 

In addition, read through the loan agreement carefully, so that you are not entrapped in paying heavy hidden charges like prepayment fees or late submission charges. Comb through the loan document carefully so that you don’t end up paying more than required. 

  • Have a Plan B, in case

What happens in case you default on a payment or payments like Evergrande? Granted, the quantum will not be as large, but the consequences will just be as adverse for your financial health, including a lower credit score, rising financial stress, and a reduced chance that you will be easily granted a loan in the future when needed since such defaults indicate your unreliability as a customer. Have a solid plan and some additional corpus ready so that you can comfortably pay off your loans and not negatively impact your credit score. 

Avoid multiple loan applications at once for a better credit history

Applying for multiple loans at the same time shows immense financial stress and hence, can put a red flag against your name in the books of lenders. And every time your application is reviewed and your credit report is checked, your score falls. Hence, plan your application in such a way that it meets the lender’s criteria in the first go, negating the need to assess your reports over and over. 

Internet Explorer Channel Network
News Related


China pulls Boston Celtics NBA games after player calls Xi Jinping "brutal dictator": report

Chinese President Xi Jinping was called a “brutal dictator” by a Boston Celtics player. China has pulled the online streaming of Boston Celtics NBA games after one of its players ... Read more »

Zee argues holding EGM is illegal, board cannot approve it

ZEEL | Representative image A day after the Bombay High Court ordered Zee Entertainment to hold extraordinary general meeting (EGM), the media company has argued that the board cannot give ... Read more »

Resuming India operations after a decade, Qantas to launch Delhi-Sydney flight in December

Alan Joyce, Chief Executive Officer of Qantas (File image) Australian airline Qantas will start a non-stop flight between Delhi and Sydney, three times a week, from December 6. The frequency ... Read more »

Google Play Store commission cut does not address the issues of Indian startups: ADIF

Source: AP US tech major Google’s move to slash the commission to 15 percent while welcome, has not addressed the larger issue of allowing other payment choices for the developer ... Read more »

TVS Motor loses production of 25,000 Apache bikes amid chip shortages 

TVS Motor Company suffered a production loss of 25,000 units of its premium Apache range of motorcycles in the September quarter because of a semiconductor shortage that has squeezed the ... Read more »

Longest losing streak on record for retail sales as consumer confidence slumps to lockdown level

Retail sales volumes took a surprise dip last month to achieve their longest losing streak on record, according to official figures released as a measure of consumer confidence showed a ... Read more »

Biocon consolidated net profit dips 18% to Rs 138 crore in Q2

Biotechnology major Biocon on Friday said its consolidated net profit declined by 18 per cent to Rs 138 crore for the second quarter ended September 30. The Bengaluru-based company had ... Read more »

FIIs consistently increase their holding in these 5 stocks, surge over 150% in 2021 so far

In 2021 so far, the foreign institutional investors (FIIs) have invested a net of around Rs 66,024 crore in the Indian equities. They were net buyers in 8 out of 10 months ... Read more »

25% of mid-career professionals in digital skills programme secure jobs before completing it

SINGAPORE – A six-month programme to help mid-career professionals with no digital-related background to take up business technology roles has seen an average of one in four participants securing jobs ... Read more »

China removes broadcasts of NBA games after player called for Tibetan independence

China has removed broadcasts of NBA games after a player called for Tibetan independence. © Associated Press Boston Celtics’ Enes Kanter called for Tibetan independence Boston Celtics player Enes Kanter ... Read more »

Renault says chip shortage will lower production more than forecast

French carmaker Renault said on Friday its production losses in 2021 because of a global semiconductor chip shortage would be far larger than previously forecast, but maintained its profit outlook ... Read more »

How to usher payment revolution for millions without a smartphone

The heart of India doesn’t beat to the tunes of a glitzy edgy smartphone. Away from the world of an instant dopamine hit, Instagram hashtags and Snapchat filters, the true ... Read more »

Enkei Wheels Standalone September 2021 Net Sales at Rs 119.23 crore, up 57.24% Y-o-Y

Reported Standalone quarterly numbers for Enkei Wheels (India) are: Net Sales at Rs 119.23 crore in September 2021 up 57.24% from Rs. 75.83 crore in September 2020. Quarterly Net Profit ... Read more »

21st Cen Mgt Consolidated September 2021 Net Sales at Rs 192.55 crore, up 300960% Y-o-Y

Reported Consolidated quarterly numbers for 21st Century Management are: Net Sales at Rs 192.55 crore in September 2021 up 300960% from Rs. 0.06 crore in September 2020. Quarterly Net Profit ... Read more »

21st Cen Mgt Standalone September 2021 Net Sales at Rs 0.66 crore, up 55% Y-o-Y

Reported Standalone quarterly numbers for 21st Century Management are: Net Sales at Rs 0.66 crore in September 2021 up 55% from Rs. 1.48 crore in September 2020. Quarterly Net Loss ... Read more »

Rajneesh Karnatak takes over as Union Bank of India Executive Director

Next on the list of lenders offering lowest interest rate on education loans is, expectedly, another public sector giant. Union Bank’s interest rates start at 6.8 percent, with the EMI ... Read more »

New Zealand Rural Land Company buys six South Island dairy farms for $61.4 million

NZX-listed New Zealand Rural Land Company has bought six dairy farms in Maniototo for $61.4 million. NZRL announced to the market this afternoon that it had entered into a unconditional ... Read more »

Maharashtra reopening: Imagicaa, one of India's biggest theme parks, expects to reach pre-COVID-19 levels by FY23

After a long hiatus, theme parks in Maharashtra will reopen after the state government allowed amusement parks to restart operations from October 22. One of India’s biggest theme parks, Imagicaa, ... Read more »

Five infrastructure mutual funds that delivered 97-118% returns in the last one year

In the massive market rally from March 2020, infrastructure stocks have been major beneficiaries and participants. Naturally, mutual funds that invest exclusively in such stocks have delivered spectacular returns. The ... Read more »

Tesla warns drivers flagged for "improper usage" of dropping full self-driving feature, Elon Musk confirms

File image: Elon Musk Billionaire Elon Musk has confirmed that Tesla will send just one warning to drivers who do not use its advanced driver assist system responsibly before removing ... Read more »

Nifty may move in 18,450-18,000 range over short term until cycle turns upside

Representative Image Ashish Kyal, Founder & CEO at Waves Strategy Advisors Nifty tops can be captured by understanding a simple cyclical behaviour and time concept. So far, we have focused ... Read more »

Why mutual funds are making a dash for electric vehicles with new scheme launches

Newer theme-based mutual funds (MFs) have been hitting the stands in recent times. Electric vehicles seem to be the flavor the season, as more Indian auto-makers launch electric vehicles (EV). ... Read more »

Denied first, paid later: How an insurer made a motorbike's engine capacity the moot point in an accident claim settlement

Consider this: you use your bike to commute regularly and buy a personal accident policy to protect your family’s financial future in case of your death while riding the two-wheeler. ... Read more »

China Evergrande makes payment before deadline, official media says

Troubled property giant China Evergrande made an interest payment to foreign bondholders one day before a deadline that threatened to put the company into default, an official newspaper reported Friday. ... Read more »

ITI Pharma & Healthcare fund NFO review: Should you invest in it?

ITI Pharma and Healthcare Fund (IPHF) is the latest new scheme to be rolled out. This is the sixth mutual fund (MF) focused on the healthcare and pharmaceuticals sector to ... Read more »

Gold Prices Today: Yellow metal likely to remain volatile amid rising festival demand

Gold inched higher in the morning trade in the Indian market and was poised for a second weekly gain on October 22, as a softer dollar provided some respite against ... Read more »

Savers given chance to put their money towards government green projects - but experts say returns are 'paltry'

A green government bond will fund plans such as zero-emission buses but its 0.65% annual rate of return falls well short of savings deals available elsewhere and will look even flimsier if interest rates go up. Read more »

Evergrande financial crisis | Struggling Chinese developer makes bond payment: Report

Image: Reuters Evergrande, the troubled Chinese developer whose struggle to avoid a multibillion-dollar debt default has rattled global financial markets wired $83.5 million on October 22 to make an overdue ... Read more »

Median price of 5-room HDB resale flats in Queenstown now $926,000 in record year for market

Resale prices rose 2.9 per cent in July-September from the previous three months. SINGAPORE – HDB resale prices hit a record-high in the third quarter and saw the fastest nine-month ... Read more »

Who should pay the world's climate debt?

New research suggests that developed countries should pay almost double the amount proposed under the Paris Agreement to offset their historical emissions. Read more »

Asian Paints after Q2 earnings: Should you buy, sell, or hold the share?

Despite an impressive growth in revenue, a sharp fall in profits because of higher raw material costs, has kept investors worried about their holdings in Asian Paints. Asian Paints on October 21 ... Read more »

Nissan ex-chair Carlos Ghosn set on restoring reputation

Carlos Ghosn, the former auto industry superstar whose career screeched to a halt with his arrest three years ago, isn’t about to settle into quiet retirement. The former head of ... Read more »

RIL Q2 Preview: Double-digit growth likely in earnings parameters, driven by retail, digital segments

Billionaire Mukesh Ambani-owned Reliance Industries is expected to clock double-digit growth in key earnings parameters for the September quarter on a year-on-year basis, driven by the retail and digital segments. ... Read more »

Curfew to end in 17 tourist provinces Prelude to reopening to vaccinated foreigners on Nov 1

The road outside the Grand Palace in Bangkok has been almost empty of traffic at night since curfew was announced, to control the spread of Covid-19. (Photo: Pornprom Satrabhaya) The ... Read more »

Government to consider PME task force recommendations for workplace fairness

The remarks were made in response to nine proposals put out by a PME task force led by NTUC and SNEF. SINGAPORE – Proposals from the labour movement and employer’s ... Read more »

Buy USDINR; target of : 75.15 : ICICI Direct

ICICI Direct’s currency report on USDINR US dollar rose by 0.24% yesterday amid upbeat economic data from US and surge in US treasury yields. US unemployment claims fell to a ... Read more »

Asian markets swing but Evergrande payment report provides boost

Markets in Asia fluctuated Friday following a record-breaking lead from Wall Street, while a report that troubled developer China Evergrande had paid interest on an overdue bond a day before ... Read more »

Top cryptocurrency news on October 22: Major developments in Bitcoin, cryptos and regulations

Cryptocurrency (Representative image) [content][quote]Market Buzz[/quote][title]Bitcoin trading above Rs 48 lakh[/title][circularimage][/circularimage][body]Cryptocurrencies traded mostly in the red so far on October 22. The global crypto market cap stood at $2.58 trillion, 1.51 percent down over the last day. ... Read more »

Asia tech shares jump, China property stocks rally as Evergrande makes payment

Cyclical stocks dragged amid worries that central bankers will need to tighten monetary policy into slowing growth. TOKYO (REUTERS) – Tech stocks climbed in Asia on Friday (Oct 22) following ... Read more »

COP26 | If not net-zero, then what?

(Image: Shutterstock) On October 30, world leaders will gather at Glasgow, Scotland for the 26th UN Climate Change Conference of the Parties (COP26). The summit that was postponed last year ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic