How to get Car Loan for CIBIL Defaulters

Getting a car loan when you have a history of defaulting on payments can be challenging, especially if your credit score (CIBIL score in India) has been affected. However, it’s not impossible. Here’s a guide on how to approach getting a car loan as a CIBIL defaulter from The Loan Details Team.

Assess Your Credit Situation

First of all, Start by obtaining a copy of your credit report from CIBIL or any other credit bureau. Review it thoroughly to understand the extent of the defaults and any other negative marks on your credit history.

Understand Lender Requirements

Different lenders have varying criteria for approving car loans. Some may be more lenient towards borrowers with past defaults than others. Research lenders who specialize in offering loans to individuals with poor credit scores or past defaults.

Improve Your Credit Score

While this may not yield immediate results, taking steps to improve your credit score can help you qualify for better loan terms in the future. Make timely payments on any existing loans or credit cards, reduce outstanding debt, and avoid taking on new debt.

Provide a Larger Down Payment

Offering a substantial down payment can demonstrate your commitment to the loan and reduce the risk for the lender. It also reduces the amount you need to borrow, which may increase your chances of approval.

Offer Collateral or Security

If possible, provide collateral or security for the loan. This could be in the form of another asset, such as property or a savings account, that the lender can use to recover their money in case of default.

Seek a Co-Signer

A co-signer with a good credit history can strengthen your loan application. The co-signer agrees to take responsibility for the loan if you default, providing assurance to the lender.

Consider Alternative Lenders

Explore options beyond traditional banks and credit unions. Some online lenders or specialized finance companies may be more willing to work with borrowers with past credit issues.

Be Realistic About Loan Terms

Understand that as a defaulter, you may not qualify for the most favorable loan terms, such as low-interest rates or long repayment periods. Be prepared to accept higher interest rates and shorter loan terms

Review and Compare Offers Carefully

Before accepting any loan offer, review the terms and conditions carefully. Compare offers from multiple lenders to ensure you’re getting the best possible deal given your circumstances.

Stay Committed to Financial Responsibility

  1. Once you secure a car loan, make timely payments and manage your finances responsibly to rebuild your credit over time.

Remember that getting a car loan as a CIBIL defaulter may require patience and persistence. It’s essential to demonstrate to lenders that you’re committed to improving your financial situation and can be trusted to repay the loan.

26
Jan, 2024

How to Get Education Loan Through Vidyalakshmi Portal

Vidyalakshmi Portal is a government initiative in India that facilitates students in applying for education loans and scholarships offered by various banks and government schemes. Here The Loan Details team are some key points about the Vidyalakshmi Portal

  1. Objective:
    • The Vidyalakshmi Portal was launched to provide a common platform for students to access information about various education loan schemes, submit loan applications, and apply for scholarships.
  2. Participating Banks and Schemes:
    • The portal integrates multiple banks and financial institutions that offer education loans. Students can explore and apply for loans from these institutions through a single platform. It also includes information about various government scholarships.
  3. Single Window System:
    • Vidyalakshmi serves as a single window system for students seeking financial assistance for higher education. It aims to simplify and streamline the application process for education loans and scholarships.
  4. User Registration:
    • Students need to register on the Vidyalakshmi Portal to create an account. Once registered, they can fill out a common education loan application form that is accepted by multiple banks.
  5. Document Submission:
    • The portal allows students to upload necessary documents required for loan processing directly. This helps in reducing the paperwork and expedites the application process.
  6. Loan Tracking:
    • Registered users can track the status of their loan applications through the portal. It provides transparency in the loan approval process, allowing students to stay informed about the progress of their applications.
  7. Interest Subsidy Schemes:
    • The Vidyalakshmi Portal may also provide information about interest subsidy schemes offered by the government to support students financially during their education.
  8. Mobile Application:
    • Vidyalakshmi has a mobile application that allows users to access the portal’s services on their smartphones.

Please note that there might have been updates or changes to the Vidyalakshmi Portal or its features since my last update in January 2022. For the most recent and detailed information, I recommend checking the official website of Vidyalakshmi or contacting relevant authorities involved in the initiative.

Things To Do When You Buy A Car On Loan

Buying a car on loan involves several steps. Here is a step-by-step guide to help you navigate the process:

1. Determine Your Budget:

  • Understand how much you can afford to spend on a car. Consider factors such as your income, monthly expenses, and other financial obligations.

2. Check Your Credit Score:

  • Obtain your credit score. A higher credit score may help you qualify for lower interest rates. If your credit score is low, consider improving it before applying for a loan.

3. Research Loan Options:

  • Explore loan options from various sources, including banks, credit unions, and online lenders. Compare interest rates, loan terms, and eligibility criteria.

4. Calculate Loan Amount and Down Payment:

  • Determine the total amount you need to borrow. Consider making a down payment to reduce the loan amount and lower monthly payments.

5. Pre-Approval:

  • Consider getting pre-approved for a car loan. Pre-approval provides an estimate of the loan amount you may qualify for and can be useful when negotiating with dealerships.

6. Research Cars:

  • Research different car models based on your preferences, needs, and budget. Consider factors like fuel efficiency, maintenance costs, and resale value.

7. Visit Dealerships:

  • Visit dealerships to test drive cars and gather information. Discuss financing options with the dealership, but be prepared to compare these with external loan offers.

8. Choose a Car:

  • Once you’ve selected a car, negotiate the price with the dealership. Be aware of additional costs such as taxes, registration fees, and insurance.

9. Complete the Loan Application:

  • If you haven’t pre-approved, complete the loan application with your chosen lender. Provide necessary documents, including proof of identity, income statements, and address proof.

10. Loan Approval:

  • The lender will review your application, credit history, and documentation. If approved, you’ll receive a loan offer with terms and conditions.
  • Carefully review the loan agreement, including interest rates, repayment terms, and any fees. Ensure you understand all terms before signing.
  • Once the loan is approved, the lender will disburse the funds to the dealership or seller. Complete the necessary paperwork to transfer ownership.
  • Arrange for car insurance before taking possession of the vehicle. Many lenders require comprehensive insurance coverage.
  • Make monthly loan payments on time. Consider setting up automatic payments to avoid late fees.
  • Keep up with regular car maintenance to ensure the vehicle’s longevity and protect your investment.
  • Making timely loan payments can positively impact your credit score. This, in turn, can help you secure better financing terms in the future.

Always remember to read the fine print, ask questions, and seek clarification on any terms you don’t understand. Each lender may have its own application process, so be sure to follow the specific instructions provided by your chosen financial institution. Additionally, stay informed about the latest interest rates and loan offerings to make the most informed decision.

How Many Types of Business Loans You Know

Business loans come in various forms, catering to different financial needs and situations of businesses. Here are some common types of business loans:

  1. Term Loans:
    • Term loans involve borrowing a lump sum amount for a specific term. Businesses repay the loan in regular installments, and the interest rate can be fixed or variable.
  2. Working Capital Loans:
    • Working capital loans provide funds to cover a business’s day-to-day operational expenses, such as salaries, inventory, and utility bills. These loans help maintain smooth business operations.
  3. Equipment Loans:
    • Equipment loans are used to finance the purchase of machinery, technology, vehicles, or other equipment essential for business operations. The equipment itself often serves as collateral.
  4. Commercial Real Estate Loans:
    • These loans are designed to help businesses purchase, refinance, or improve commercial properties. They may be secured by the property being financed.
  5. Invoice Financing (Accounts Receivable Financing):
    • Invoice financing allows businesses to borrow against their outstanding invoices. It provides immediate cash flow by advancing funds tied up in unpaid invoices.
  6. Business Lines of Credit:
    • A business line of credit offers a revolving credit limit that businesses can draw from as needed. It’s a flexible financing option for managing short-term cash flow needs.
  7. Merchant Cash Advances:
    • Merchant cash advances provide a lump sum upfront in exchange for a percentage of daily credit card sales. Repayments are made as a percentage of daily sales.
  8. SBA Loans (Small Business Administration Loans):
    • SBA loans are government-backed loans with favorable terms. They include various programs such as 7(a) loans, CDC/504 loans, and microloans, providing financial assistance to small businesses.
  9. Business Credit Cards:
    • Business credit cards are revolving credit lines that businesses can use for various expenses. They often come with rewards programs and benefits.
  10. Franchise Loans:
    • Franchise loans are tailored for businesses looking to buy a franchise. They may cover franchise fees, equipment, and other startup costs.
  11. Start-Up Loans:
    • Start-up loans provide capital for new businesses to cover initial expenses like equipment, marketing, and working capital.
  12. Bridge Loans:
    • Bridge loans offer short-term financing to cover immediate needs, often used during a transition or while waiting for long-term financing.
  13. Microloans:
    • Microloans are small loans typically provided by microfinance institutions to entrepreneurs, especially in developing economies, for small-scale businesses.
  14. Trade Finance:
    • Trade finance includes various financial instruments and products to facilitate international trade, such as letters of credit, export financing, and import financing.
  15. Consolidation Loans:
    • Consolidation loans help businesses consolidate multiple debts into a single loan with potentially lower interest rates and simplified repayment terms.
  16. Peer-to-Peer (P2P) Business Loans:
    • P2P lending platforms connect businesses with individual lenders, allowing them to borrow directly from investors.

Business owners should carefully evaluate their financial needs, terms, and repayment capabilities before choosing a specific type of business loan. Additionally, the terms and availability of these loans can vary based on factors such as the business’s creditworthiness, industry, and the lender’s policies

All About Pradhan Mantri Rozgar Yojana (PMRY)

Pradhan Mantri Rozgar Yojana (PMRY) was a government scheme in India aimed at promoting self-employment among educated unemployed youth. Please note that schemes and policies may be subject to updates, changes, or new iterations, and it’s advisable to check with official government sources for the latest information. Below are the key details about PMRY based on information available up to my last update:

Objective:

  • PMRY aimed to provide financial assistance to educated unemployed youth for setting up small enterprises or businesses, thereby creating self-employment opportunities.

Implementing Agencies:

  • The scheme was implemented by the District Industries Centers (DICs) in collaboration with other concerned agencies at the district level.

Financial Assistance:

  • PMRY provided financial assistance in the form of a subsidy and bank credit. The subsidy component was intended to supplement the bank credit and varied based on the nature of the project.

Eligibility Criteria:

  • Individuals in the age group of 18 to 35 years who were educated up to at least the 8th standard were eligible to apply.
  • The annual family income of the beneficiary was considered for determining eligibility.

Nature of Projects:

  • PMRY supported a wide range of economically viable and technically feasible projects in the manufacturing, service, and business sectors.

Subsidy Component:

  • The subsidy amount under PMRY was a certain percentage of the project cost, subject to a maximum limit. This subsidy was intended to encourage entrepreneurship and make it easier for beneficiaries to establish their businesses.

Bank Loan:

  • The financial assistance provided under PMRY included a bank loan component. The loan amount was determined based on the project cost and the contribution of the beneficiary.

Training Component:

  • To enhance the entrepreneurial skills of the beneficiaries, training was an integral part of PMRY. Candidates were required to undergo skill development training before setting up their enterprises.

Application Process:

  • Interested candidates could apply through the District Industries Centers (DICs) by submitting project proposals. These proposals were then scrutinized for technical and financial feasibility.

Monitoring and Implementation:

  • The implementation and monitoring of the scheme were carried out at the district level. Regular follow-ups were conducted to ensure the successful establishment and functioning of enterprises.

It’s important to note that the information provided here is based on the status of the scheme as of my last update in January 2022. Given that government policies and schemes may undergo changes, I recommend checking with official government sources or the Ministry of Micro, Small and Medium Enterprises (MSME) for the latest and most accurate information regarding the Pradhan Mantri Rozgar Yojana (PMRY).

All About Prime Minister’s Employment Generation Programme (PMEGP)

he Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy program initiated by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. Launched in 2008, PMEGP aims to generate employment opportunities in rural and urban areas by promoting entrepreneurship and the establishment of micro-enterprises and small businesses. The program provides financial support and skill development training to individuals interested in starting their own ventures.

Here are the key features and details about the Prime Minister’s Employment Generation Programme (PMEGP):

  1. Objective:
    • The primary objective of PMEGP is to create sustainable employment opportunities in both rural and urban areas by facilitating the establishment of new micro-enterprises and small businesses.
  2. Implementing Agencies:
    • PMEGP is implemented through the Khadi and Village Industries Commission (KVIC) at the national level, the State Khadi and Village Industries Boards (KVIBs) at the state level, and the District Industries Centers (DICs) at the district level.
  3. Categories of Loans:
    • PMEGP provides financial assistance in the form of a composite loan comprising both the term loan and the working capital for setting up new projects. The scheme classifies projects into three categories based on the cost of the project:
      • Manufacturing Sector: Up to Rs. 25 lakhs
      • Service Sector: Up to Rs. 10 lakhs
  4. Subsidy and Funding Pattern:
    • The funding pattern under PMEGP involves a subsidy component and a margin money contribution from the entrepreneur. The subsidy is provided at different rates for different categories and is linked to the cost of the project.
      • Urban Areas: General category – 15%, Special category (SC/ST/Women/Ex-Servicemen/PH) – 25%
      • Rural Areas: General category – 25%, Special category – 35%
  5. Eligibility Criteria:
    • Individuals above 18 years of age are eligible to apply. The scheme is open to all categories, but preference is given to women, SC/ST, OBC, minorities, ex-servicemen, and physically handicapped individuals.
  6. Skill Development Training:
    • Applicants are encouraged to undergo skill development training related to their chosen business activity. Training is usually provided by government-approved training institutions.
  7. Application Process:
    • Interested individuals can apply for PMEGP loans through online or offline modes. They can submit their project proposals to the respective District Industries Centers (DICs) or other designated agencies.
  8. Project Approval:
    • After scrutiny and verification, the project proposals are approved at the district level by the District Task Force Committee.
  9. Monitoring and Implementation:
    • The implementation and monitoring of PMEGP projects are done through the respective KVIBs and DICs. Regular monitoring is conducted to ensure the proper utilization of funds and the success of the enterprises.
  10. Repayment Period:
    • The repayment period for the composite loan is typically 3 to 7 years, depending on the nature of the project and the repayment capacity of the entrepreneur.
  11. Promotion of Khadi and Village Industries:
    • PMEGP also contributes to the promotion of traditional Khadi and Village Industries, aligning with the government’s focus on sustainable and rural development.

Entrepreneurs interested in availing benefits under the Prime Minister’s Employment Generation Programme should refer to the official PMEGP guidelines and contact the relevant implementing agencies for the most accurate and up-to-date information.

How Many Types of Loan You Can Get

Various types of loans are offered by banks, financial institutions, and other lending entities to cater to the diverse financial needs of individuals, businesses, and other entities. Here are some common types of loans available.

  1. Home Loans:
    • Home loans are provided for purchasing or constructing a residential property. They usually have a long repayment tenure.
  2. Personal Loans:
    • Personal loans are unsecured loans that can be used for various personal expenses such as medical bills, travel, education, or any other unforeseen expenses. They don’t require collateral.
  3. Car Loans:
    • Car loans are designed for purchasing new or used cars. The car itself serves as collateral for the loan.
  4. Education Loans:
    • Education loans are meant to finance the education expenses of individuals. They cover tuition fees, accommodation, books, and other related costs.
  5. Business Loans:
    • Business loans are provided to businesses for purposes such as working capital, expansion, purchasing equipment, or other business-related needs.
  6. Gold Loans:
    • Gold loans are secured loans where gold jewelry is pledged as collateral. They are a quick way to obtain funds with the gold acting as security.
  7. Loan Against Property (LAP):
    • Loan Against Property allows individuals to use their property (residential or commercial) as collateral to secure a loan for various purposes.
  8. Two-Wheeler Loans:
    • Two-wheeler loans are specific loans for purchasing motorcycles or scooters. The vehicle itself is used as collateral.
  9. Personal Overdraft:
    • Personal overdraft is a revolving credit facility linked to an individual’s savings account. It allows the account holder to withdraw more than the available balance, up to a certain limit.
  10. Credit Card Loans:
    • Credit cards often provide a revolving credit facility where cardholders can make purchases on credit. If the outstanding balance is not paid in full by the due date, interest is charged.
  11. Government-Sponsored Loans:
    • Various government schemes offer subsidized loans for specific purposes such as housing, agriculture, and small-scale industries.
  12. Microfinance Loans:
    • Microfinance institutions provide small loans to individuals, especially in rural areas, to support income-generating activities and entrepreneurship.
  13. Consumer Durable Loans:
    • These loans are designed for purchasing consumer durables like refrigerators, washing machines, etc.
  14. Professional Loans:
    • Professional loans are tailored for professionals such as doctors, lawyers, and chartered accountants to meet their specific financing needs.

All details on Credit-Linked Capital Subsidy Scheme

Credit Linked Capital Subsidy Scheme or CLCSS is meant for MSMEs. It has been introduced by the Ministry of Micro, Small and Medium Enterprises to boost production of small scale industries by providing them access to subsidised capital. Under this scheme, eligible enterprises can enjoy a capital subsidy of 15% on loan availed from a financial institution. 

Main Objective of Credit-Linked Capital Subsidy Scheme

he objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.

  1. Financial Support:
    • The scheme provides a subsidy linked to the credit availed for the purchase of eligible machinery and equipment.
  2. Eligibility:
    • Small-Scale Industries (SSI) and Small and Medium Enterprises (SMEs) are typically eligible for the CLCSS.
  3. Scope:
    • The scheme covers various sectors, and the list of eligible machinery and equipment is outlined by the government.
  4. Implementation:
    • Financial institutions and banks play a crucial role in implementing the scheme. They provide credit linked with the subsidy.
  5. Application Process:
    • Entrepreneurs or business owners interested in availing the benefits of CLCSS usually need to apply through the participating financial institutions.
  6. Subsidy Amount:
    • The subsidy is calculated as a percentage of the eligible investment in plant and machinery, subject to a maximum limit.
  7. Technology Upgradation:
    • The scheme encourages businesses to adopt new and improved technologies, thereby enhancing productivity and efficiency.
  8. National Small Industries Corporation (NSIC):
    • NSIC, a government agency, is often involved in the implementation and monitoring of the scheme.

It’s important to check the latest guidelines, eligibility criteria, and subsidy rates as they may have been updated or modified after my last knowledge update. For the most recent and accurate information, you should refer to the official government websites or contact relevant government departments or financial institutions

How To Get Instant Mobile Phone Loans with Zero Down Payment

Mobile Phone Loan is now just a click away. After reading this article you will be able to get instant mobile phone of your choice. You can get a loan through a bank, financial institution or even an app on your phone to buy mobile on EMI amount of your choice.

Reasons you need to get instant mobile phone Loan

  • You may need to update your old mobile
  • You want a high-end model that’s out of your budget
  • Lost your expensive mobile and can’t afford to replace it at this moment
  • Phone malfunctioned after being out of warranty
  • Your Online classes are easy on Mobile Phone
  • You wanted to gift a mobile phone to your friend or family but do not have enough money

Eligibility Criteria

Must be a full-time salaried employee with a minimum take-home salary of ₹ 20,000/month

OR

Must be a self-employed professional with an income of at least ₹ 20,000/month

Have Valid Adhar, Pan, Bank Account, KYC Document

Have Good CIBIL Score- Above 700

Where to Get the Instant Mobile Phone Loan

You just need to visit your nearest Shop where Mobile Phone in sold on Finance on EMI. You will easily get the Loan Approval from his choice of lenders. Otherwise You may also apply online with following lenders

  • Bajan Finance- Bajaj Mall
  • Hero Fincorp
  • Home Credit
  • Money View App
  • Zest Money
  • Money Tap App
  • All national Banks-Government and Private Both
  • Co-Operative Societies
  • Loan Pe Phone App

Moreover You may use your EMI Card, Debit Card, Credit Card to finance your Mobile Loan. It is done within few minutes.

How To Improve CIBIL Score Quickly

CIBIL Score or credit score is a numerical expression based on a level analysis of a person’s credit files, to represent the creditworthiness of an individual. It is primarily based on a credit report, information typically sourced from credit bureaus.

Your CIBIL score is an important factor that lenders look at while evaluating a loan application. Hence it’s important to understand how the score is calculated. While there is a proprietary algorithm that determines your CIBIL score, the most important elements of the score composition are based on an individual’s loan payment behavior.

What is the CIBIL score?

Your CIBIL score is a 3-digit numeric summary of your credit history, derived by using details found in the ‘Accounts’ and ‘Enquiries’ sections of your CIBIL report, including (but not restricted to) your loan accounts or credit cards, and their payment status, as well as outstanding amounts’ days past due. The score reflects your credit worthiness, based on your borrowing and repayment history, as shared by lenders.  Your CIBIL score ranges from 300 to 900 and the higher your score, better are your chances of getting a loan approved. In fact, 79 percent of loans are sanctioned to consumers with a CIBIL score greater than 750

How is the CIBIL score calculated?

There are four key factors that impact your CIBIL score:

  • Payment history: Making late payments or defaulting on your EMIs has a negative impact on your score.
  • Credit mix: Having a balanced mix between secured loans and unsecured loans is likely to have a positive impact.
  • Multiple enquiries: Too many loan enquiries may have a negative impact on your score as it indicates that your loan burden may go up in the future.
  • High credit utilisation: A high credit utilisation limit indicates a rising debt burden over time and may negatively impact your score

How can you work towards a high CIBIL score?

Your CIBIL score is based on your credit history and past payments, but it subsequently impacts your future access to credit. What you do today can help you build a stronger and healthier credit footprint. Here are a few quick tips to help you improve your score:

  • Always pay your dues on time. Late payments are viewed negatively by lenders.
  • Keep your balances low. Be prudent, do not use too much credit, and control your utilisation.
  • Maintain a healthy credit mix of secured (like home loan and auto loan) and unsecured loans (like personal loan and credit cards) — too many unsecured loans may be viewed negatively.
  • Apply for new credit in moderation. This shows that you are not continuously seeking excessive credit.
  • Monitor your co-signed, guaranteed and joint accounts monthly. Remember that you are held equally liable for missed payments in co-signed, guaranteed or jointly held accounts, and your joint holder’s (or the guaranteed individual’s) negligence could affect your ability to access credit when you need it.
  • Review your credit history frequently throughout the year. Monitor your CIBIL Score and Report regularly to avoid unpleasant surprises (like a rejected loan application). Checking your report regularly will also alert you to possible inaccuracies, if any. In case you spot any discrepancy, you can log a dispute on the CIBIL website or request the lender to report the correction to CIBIL.