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What are the benefits of a professional loan for engineers?

A professional loan is a loan that is taken by Doctors, Engineers, and CA who want to expand their business or start their practice.

A professional loan helps an individual to flourish their business without worrying about their finances.

Multiple banks offer professional loans some of which are IDFC first bank, HDFC bank, Axis bank, etc.

The benefits of a professional loan are;

1. Loan amount up to 50 lakhs.

2. No collateral requirement.

3. Flexible repayment time.

4. High loan amount.

5. Fast approval.

A professional loan can help upgrade your business at an early stage.

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Which bank has a low-interest rate for gold loans?

The interest rate of banks offered on gold loans can be as low as 7% to a maximum of 13%.

The interest rate may differ depending on the loan procedures and loan tenure.

These are the Banks that offer low-interest rates gold loans,

Bank of Maharashtra:- 7.70% per annum.

Punjab and Sind Bank:- 7% per annum.

Punjab National Bank:-7.25% per annum.

Union Bank of India:- 7% per annum.

Canara Bank:- 7.30% per annum.

The above-mentioned interest rates are for a certain amount of loan.

The CBIL score is not checked at the time of getting the loan, but if you fail to repay the loan, the gold is auctioned off. It affects your CIBIL negatively.

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Who is eligible for a gold loan?

Different banks have different age criteria for getting a gold loan but the average of which is 17 years to 70 years.

Some banks offer gold loans at an old age but it will require a co-applicant.

The eligibility for a gold loan is quite simple if you want a gold loan, you need to have enough gold ornaments.

To get a gold loan, you need an identity and address proof, passport, Driving license, Voter’s ID Card, Aadhaar Card, and PAN Card.

The gold articles submitted to avail of a gold loan is that it needs to be pure and should be a minimum of 17 carats.

A salaried person, businessman, housemaker, or senior citizen is eligible to get a gold loan.

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Is a gold loan a good option?

Gold loan if taken for a short time gold loan is useful, but if taken for a long time it can be a loss-making deal. 

The interest rate on a gold loan is much less than compared with other loans.

A gold loan provides excess to early loan approval.

Banks are willing to provide gold loans because, in gold loans, they get physical collateral for giving out loans.

The processing fees charged on a gold loan are zero or almost negligible.

When you apply for a personal loan, home loan, etc the credit history is checked, but in the case of gold loans, banks provide loans without looking at credit history. You can get a gold loan without even having income proof.

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How do I get a gold loan?

A gold loan is generally taken for vacation, medical expenses, or other emergency use.

To get a Gold loan from the bank, you just have to go to the bank and keep your gold as collateral, submit an identity proof and get the paperwork done.

A gold loan is a secured loan that gets easy approval from banks.

The interest rate on a gold loan is lower when compared to other loans.

You can get a gold loan from both NBFC and a bank. Although an NBFC interest rate on the gold loan can be higher compared to a bank.

To get the gold loan you just need to have your identity proof and address proof which can be a driving license, pan card, or passport get the purity of gold checked before taking it to the bank.

Once your documents are approved loan amount is disbursed into the account.

The age limit of getting a gold loan is from 18 years to 70 years.

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What is the definition of a gold loan?

A gold loan is a type of loan taken by keeping the gold articles as collateral with the bank. A gold loan comes under the category of a secured loan.

A gold loan is generally taken for medical expenses, vacations, or emergency money requirements.

A gold loan gets easy approval from a bank as a loan is given by keeping gold as collateral for money. If there is an application for a gold loan processing and documentation fees charged on it are zero.

If a gold loan is applied for the construction of a building, you can get a tax exemption on that.

Several banks in India offer attractive lower interest rates on gold loans.

The tenure of a gold loan can be from a minimum of 3 months to a maximum of 48 months.

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Should I use my home loan to pay the car loan?

Many people nowadays pay off their car loans by using their home loans.

A person can obtain both a car loan and a home loan if he/she can pay back both of them.

Why is a car loan paid before a home loan? The reason for this is the difference in interest rate.

The car loan interest rate of different banks ranges begins from 7% and goes up to 16% which is much higher when compared with the home loan interest rate, which starts from 6% and goes up to 12%.

It is better to pay off the car loan with a home loan because then you have to pay the interest loan of the home loan which is lower than a car loan.

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If I have a credit card and I surrender the card to the bank after clearing the bills, will my credit score fall?

If a credit card is closed after clearing the credit bill, it will still affect the credit score. A credit score is made by proper repayments by the credit card holder. And payments that are made on time develop a good repayment history which boosts your credit score.  

Once you close your credit card, all the payment history and the credits earned till date will be lost. And the credit score will fall.

Let us look at it this way if you have two credit cards and the credit use on each card is 1 lakh combined, which makes it 2 lakh and you bought an AC for Rs. 50,000, so you used 25% of the total limit. But when you close one card the overall use falls on the other card, which is 50% of the card utilized which makes it unhealthy and credit score is affected negatively.

What you can do is keep the card with yourself without using it, so the credit points and payment history will play a key role in boosting CIBIL.

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Why is reverse repo rate lower than the repo rate?

The Repo rate is the interest rate RBI charges on money borrowed by commercial banks. Repo rate helps RBI in controlling inflation.

The reverse repo rate is the interest rate on which RBI borrows money from banks. The reverse repo rate helps the RBI control the supply of money.

The reverse repo rate will always be lower than the repo rate because RBI cannot pay higher interest on deposits than charging interest on loans.

The Repo rate is higher than the reverse repo rate because it helps RBI with proper cash flow to banks. A rise in repo rate directly banks as they increase the interest rate which makes borrowing costlier. An increase in the repo rate makes the savings more attractive.

The current repo rate of RBI is 4.90%.

During high inflation in the economy, the RBI increases the reverse repo. It encourages the banks to lend more funds to the RBI to earn higher returns on excess funds.

The current reverse repo rate of RBI is 3.35%.

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Can we have the same benefits with secured and unsecured credit cards to increase the CIBIL score in India?

A secured credit card is given to a person by the lender by taking a fixed amount as collateral in exchange for providing him with credit card service.

An unsecured credit card is given to a person who has a stable income source. To obtain this card you do not have to provide collateral to the lender.

An unsecured credit card gets easy approval as it shows that you are capable of repaying the lender.

The benefit of a secured credit card is that if you have a bad credit history, you can avail of this card to rebuild your credit history. You can repay the credit bills on time and your credit score is boosted in no time.

The benefit of an unsecured card is that you do not have to put any fixed deposit in the bank to avail of this card. Your credit card spending is calculated based on your eligibility to repay the loan.

Yes, we have the same benefits with secured and unsecured credit cards to increase the CIBIL score in India. Just pay back the credit bill on time and don't overspend on the card.

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Should you choose NBFCs or banks for a personal loan?

NBFC is a non-banking financial corporation, which provides financial services and banking facilities to people. NBFCs work under the rules and regulations laid down under the companies act of 1956.

The difference between a bank and NBFC is that a bank's interest rate is regulated by the RBI, while NBFC's interest rate depends on the cost of funds, margin, risk premium, etc.

Choosing between an NBFC and a bank is a tricky business as an NBFC provides several advantages over a bank as NBFC offers fast loan approval and also NBFC does not depend on the CIBIL score they use artificial intelligence, social media quotient, and machine language to decide a person's credit worthiness.

Top NFBC in India are;

TATA capital

Mahindra finance

IIFL finance

HDB financial services

Aditya Birla capital

An NBFC can be an investment company, loan company, housing finance company, or housing finance company.

Generally, an NBFC personal loan is taken for vacation, medical emergency, etc. Taking a loan from NBFC is easy and also they provide a competitive interest rate than banks. The terms and regulations for an NBFC are more flexible when compared with banks.

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What kind of car loan can I get with an 800 credit score?

Lowest interest car loan, yes you heard it right with a credit score of 800 you can get a car loan with the lowest interest rate.

The CIBIL score is the number describing a person's repayment history. A CIBIL is measured from 300 to 900. A score below 500 is considered poor and insufficient for loan approval, While a score above 750 is an excellent score and gets easy loan approval. 

While taking a car loan, people with good CIBIL sometimes pay high-interest rates, because of the absence of knowledge of CIBIL and its benefit.

With a CIBIL score of 800, you can get a car loan with,

Zero interest rate.

Low processing fees.

Easy approval for the loan.

Attractive offers.

To check your CIBIL score you can visit the website www.myscore.cibil.com to create your account and get your CIBIL.

Stay connected to get more knowledgeable updates on CIBIL.

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How do I check a credit card history?

In today's world, credit cards are vital in day-to-day life. A long time back, credit cards were considered things to be used only by the rich, as the middle-class people were unaware of their use.

But as the world flourished, people came to know about its use.

Credit cards are a payment method in which you can buy a thing and pay for it afterward. You will receive the report of your use at the end of the month.

It is good to check the report as anything unauthorized can be reported.

You can check your credit card report via online banking, or you will get a monthly detail of your credit card transaction. This report will contain your,

1.List of transactions domestic or international.

2.Transaction dates.

3.Dues pending on card to avoid late payment fee.

4.The credit limit of how much can you use and how much of it is left on the card.

5.How many reward points are present on the account.

6.Summary of how much you have paid to the bank, and how much due is pending.

7.The list of items bought through credit card.

It is necessary to check your credit card bill, as this will save you from bad debt. Credit card bills if repaid on time will help you in the long run. And seeing any unusual activity on the credit card like a purchase should be directly reported to the bank. A card report also helps you understand if you are overspending more than usual.