Guide To Understanding Personal Loans - Personal Loan - Tata Capital

Personal LOAN

9 Features of a Personal Loan that make it popular

Jul 13, 2018

Life is full of surprises. All the planning in the world will not save you from the trials that life can throw at you. Instead of putting your goals on hold or pushing your financial responsibilities aside, it’s much better to tackle these challenges head on.

We’ve all been there. The need for immediate cash is a common problem. Whether it’s a medical emergency or an unplanned wedding, a personal loan is the perfect way to tackle the financial milestones in your life. Although this traditional option is often overlooked, it comes with some unbeatable advantages, which we shall discuss in this article.

But first, what is a personal loan?

A type of unsecured loan, a personal loan is granted to an individual by a bank or a non-banking financial company (NBFC) to meet a range of personal needs. Here are the main benefits of opting for a personal loan:

1. Flexibility of use – A significant advantage of a personal loan is its flexible nature. Unlike a car or home loan, this financial resource can be used for any necessity, without limitations. In other words, the amount you borrow can be used to finance a wedding, travel, education, medical expenses; purchase jewellery, electronic gadgets, etc. Put simply, it’s an easy way for you to get out of the immediate cash crunch you’re in.

2. Quick disbursal – Pre-approval is usually quick. Meeting the eligibility criteria is key when it comes to a quick handout of a personal loan. Having a good credit score is a definite advantage. The time for disbursal depends on the bank or lender but it’s generally within 24 hours; or 72 hours at most. This makes it your best bet in an emergency. You may even be eligible for instant online approval if you are an existing customer of the bank you’re applying to.

3. Fewer documents – To get an approval for a personal loan, only a limited number of documents are required. This makes it faster to process. With an online approval, you will be required to upload scanned documents for verification, after which you will be granted the loan within minutes. This makes it a truly hassle-free process and you can get out of the financial crisis you are in faster than you think.

4. Minimal paperwork – As with documents, the paperwork that needs to be completed is minimal. This adds to the swiftness of the procedure. If you have any queries, the customer care department of your home branch is there to assist you. They may even send an agent to your location to help with the paperwork.

5. No collateral needed – If you qualify and are eligible for a personal loan, you will not need to present any collateral. Thus your assets remain safe. If you do not own any assets, this is a definite advantage. Since it is unsecured, a personal loan is considered the best form of gaining urgent financial assistance. Get the initial steps sorted and you are good to go!

6. Pocket-friendly repayment – To repay your personal loan, you can opt for EMIs, instalments, post-dated cheques, online payment, etc. Typically, flexible tenures are available and you can choose one that suits you best. The longer the tenure, the lower the EMI, and vice versa.

7. Attractive interest rates – Personal loans come with attractive interest rates, which make them easily affordable by all. This ensures your EMI remains fixed for the entire tenure of your loan. So there’s no need to worry about ever-fluctuating interest rates that characterise other types of loans.

8. Online EMI calculator – Use Tata Capital online personal loan EMI calculator to decide what payback time span works best for you. Yes, in just three easy steps, you can figure out the amount of EMI you need to pay every month! A cumbersome process is now made exceedingly simple and you have everything in black-and-white right in front of you.

9. Tax benefits – An additional advantage of a personal loan is the tax deduction you can claim when you use this financial resource to pay for (say) renovation or construction of your house. The benefit amount can be up to Rs 2 lakh as per Section 24B. However, it is essential that you provide adequate documentation to show the utilisation of funds for the aforementioned purpose.

Tata Capital personal loan is an easy way out when you need money without too much of a hassle. It’s swift, customisable, and transparent – and offers competitive interest rates. Avail of a personal loan today and enjoy a host of unmatched benefits like never before!

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Top 10 Powerful Reasons for you to travel the World

Jul 09, 2018

Life in the 21st century seems to be about gadgets, fashion, and social media – all signs of the consumer-oriented society we now live in, and purported bringers of happiness.

But do they? Research from San Francisco State University and Cornell University found that satisfaction from buying stuff is short-lived, and life soon becomes all about chasing the ‘next big thing’. You’re much more likely to feel connected to somebody who’s also been to Peru, rather than someone who also happens to possess the latest iPhone. So stop buying things and start accumulating experiences.

If you need any more convincing, read on for a list of the many benefits of travelling the world.

1. Improve your social skills

One of the main benefits of travelling is that you learn how to communicate with all kinds of people. It may seem an alien concept today, but ‘real’ social networks do thrive. You’re likely to meet fellow travellers, many of whom love to share experiences and tips on places to go. These chance encounters could lead to lasting friendships with people from all over the world. You never know, that couple you met in Egypt last winter may well invite you to their destination wedding in Greece.

2. Feel like an adventurer

The world has never been as well connected as it is today, but there are places untapped by many. Poring over an atlas and creating a bucket list of places to visit can be exceedingly motivating. You now have something tangible to go after, and it forces you to think differently. Adventure requires novelty; so get moving. Daunting as it may seem, going on a weekend hike will make you feel different. And in retrospect, it’ll be a decision you won’t regret.

3. Discover amazing food

You may be the best cook this side of the Prime Meridian, and your paella a big hit with family and friends. But let’s not kid ourselves; eating local food in Spain is an entirely different experience. All the flavours seem, well, different! So enjoy something old, but try something new. And wouldn’t it be a real feather in your cap if you learned to cook something new? Or re-learn how to cook a favourite staple?

4. Improve your mental well being

From reducing stress to lowering your chances of developing heart disease, travel offers a temporary disconnect from routine and helps you appreciate people and things around you. For some folk, travel has a positive impact on their mental well-being, and a trip to foreign shores can be a catalyst to alleviating signs of depression and anxiety. And all the activity can only help.

5. Enhance your creativity

Stepping outside your comfort zone makes your mind more creative. There’s no better way to develop new neural connections and gain different perspectives than by exploring new places. Being exposed to different cultures, people, and food can bring about a shift in your own patterns, instilling a healthier outlook once you return home. A hard day at work suddenly won’t seem so bad when you reflect on memories you’ve brought back with you.

6. Broaden your horizons

You’ve got your daily routine down pat, you’re comfortable where you are, but that’s a minuscule part of the world. Meeting people from different cultures provides an education that’s impossible to get through studying, reading, or watching TV. So even if you didn’t enjoy your first attempt at scuba diving or the whisky trail, you’ll at least be able to relate to it when people talk about it. You never know, you may accidentally discover your new favourite food, passion, or hobby while at it! And perhaps spice up your daily routine once you’re home.

7. Boost your confidence

Being in an unfamiliar place will naturally strengthen your presence of mind. You’ll develop the ability to deal successfully with obstacles, such as tackling an unfamiliar language or figuring out a city’s subway system. This will help you grow and make you a more confident person. Becoming a well-rounded individual is of great help in social settings with a wider variety of people.

8. Create memories

Travelling with friends and family helps you build stronger bonds and make memories. Imagine someone who’s never eaten with chopsticks learning to do so while on a trip to China. It may seem an insignificant achievement to many, but it would have created a lasting memory for the person concerned.

9. Have fun!

No matter your age or profession, your inner child is bursting to get out and have fun. So go skydiving or snorkelling, or pilot a speedboat on a lake in Switzerland. Remember, travel is not about being shepherded from one place to another; it’s about breaking free.

10. Come home rejuvenated

Do you find yourself often reaching a point when the daily pressure seems overwhelming? That’s when you need to take a step back. Travelling is a natural way to unwind. You’ll return with renewed energy, a can-do attitude, a new set of mental filters, and ready to take on the next big project or challenge. Call it a life-reboot if you will.

Mark Twain said, “Twenty years from now, you will be more disappointed by the things you didn’t do than by the ones you did.” It may sound like a cliché, but travelling is an investment in your own well-being, and companies like Tata Capital have made it possible to go on a dream holiday at an affordable cost. Besides, travel loans give you an easy opportunity to experience life anew. So what are you waiting for?

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Why a NBFC is your best option for getting an Education Loan

Jun 27, 2018

Your personal guide to getting an Education Loan from a NBFC

Pink Floyd’s famous anthem “Another Brick in the Wall” starts with the lines: We don’t need no education. Back in the day, this song had a different purpose. While the all intended purpose is not to decipher the lyrics, the first lines of the song no longer holds true in the current scenario.

Education can take you places. It holds the key to a good career, which will help you lead a good life. Now, while there was a time most of people would be satisfied with a college degree, times have changed. Aspirants are looking for specialization, pursuing something that they would be excel at.

However, the cost of education has risen. Parents are already saving up for their children’s future so that they have some financial support when the time comes. However, what if you need to enroll in a good university now? Well, you cannot wait till your financial nest is ready as it maybe too late.

This is where education loans come in.

Education loans come as a boon to students and working professionals who seek to either go overseas to study or pursue higher education from reputed institutions within the country. While banks as their first primary lending institution get the first knock when it comes to education loans, students often find banks can be too formal, by the book, slow and restrictive in their approach in giving out a student loan. Non-banking financial companies or NBFCs have no such whims. They are far more friendly and seem to understand students' requirements much better. As important is it for a student to choose the right kind of education course, it is probably more important to get the right institution to borrow from. Here is an easy guide for students and parents.

Course flexibility

If you have a keen interest in learning baking from Le Cordon Bleu in Paris, what are the chances that your bank will help you with an education loan? Chances, in all honesty, are slim.

While banks offer education loans, course flexibility is an important feature of getting a student loan from an NBFC. Non-Banking Finance Companies are comparatively relaxed on the course types and offer education loans to a wide variety of courses across the globe. Along with product benefits, education loans from NBFCs are much more customer focussed. Tailor-made for your needs, an education loan from an NBFC like Tata Capital will typically have higher loan limits, flexible repayment options and most importantly very open to students eyeing new courses and degrees. The world around is changing, and not everybody gets or wants to become an engineer or a doctor. There may be a great hospitality course or a vocational course that will help you become a salon expert. Expect NBFCs to listen and understand your dreams in a much better way. NBFCs use their huge database and education loan skills to evaluate many courses based on their curriculum strengths, quality of coaching and placement-record. This helps them decide and disburse your personal loan for education in a quicker and easier manner.

Loan coverage

While a student loan is strictly for education purpose, the incidental expenses of studying can be a lot too. The tuition fees, travel expenses, laboratory/practical fees, exam fees, lodging fees, cost of books and equipment, library fees, caution deposit and all other related costs can make the cost of education high. It is only NBFCs who cover all these costs 100%. There is no negotiation and discussion about all these costs. When a hard-working student decides to take an education loan, NBFCs like Tata Capital go all out in helping them achieve their fullest potential. Amounts are given out quickly because your education cannot wait. In this way, NBFCs behave as the perfect financial parent of a student.

Loan procurement and disbursal time

Traditional lenders have more stringent rules and regulations. More often, they aim to offer loans for courses that promise job prospects for the borrower. NBFCs have a simple approach. They go by simple terms and loan procurement is much easier for offbeat courses. This means that getting a student loan for your dream course is much simpler with an NBFC. Students and parents do not like to be hassled and make multiple visits loan application. Hence, a simpler and easier loan procurement situation is always preferable. The processing or loan disbursal time is an important parameter too. While private banks approve loans faster when compared to public sector banks, the speed with which an education loan is given often depends on the nature of the relationship the student's family has with the bank. Non-Banking Finance Companies are faster in sanctioning loans irrespective of the type of course. Since most NBFCs are non-deposit taking, there is often no previous customer relationship. You can get loans disbursed within 72 hours.

Loan details

If your loan requirement is large, it is better to visit NBFCs like Tata Capital first. This is because NBFCs do not have a cap or limit on the loan amount sanctioned depending on any course. The structure of the student loan is only based on the requirement of the student and the type of course enrolled for. That's all that a good NBFC lender will look at. Also, NBFCs offers special services like pre-visa or pre-admission loan sanctions when required. Students and their parents can also ask NBFCs about fast-track loans, bridge loans, and even GRE score based loans if need be. With attractive interest rates as low as 11.49%, a personal loan for education is the ticket to fulfil your dreams.

The ever-increasing cost of education may be worrying parents who want their children to pursue good quality higher education. However, NBFCs offer an easier, faster, simpler and hassle-free way of financing education loan. Packed with features more than what banks have to offer, taking a student loan for pursuing an education course was never so easy and no dream out of reach.

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