Category Archives: Personal Loan

In businesses, a letter of credit (LC) from a bank has great importance in building trust and continuing trading even when you are short on funds. This document is especially useful in international import and export transactions when partnering with a new seller.  Getting an LC from your bank gives the seller a proof of …

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Ever wondered what is accrued interest and why it’s important for your finances? Simply put, accrued interest is the interest that builds up on a loan, bond or investment over a specific time even before you pay or receive it.  Understanding it helps you:  Whether you’re taking a personal loan, buying a bond, or saving …

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If you’re planning to take a loan, it helps to know what is prime lending rate. This rate impacts how much interest you’ll pay on credit cards, home loans or business loans.  The prime lending rate meaning is simple. It’s the rate banks give to their most creditworthy customers. But it also sets the base …

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Knowing more about the differences in features of personal loans vs credit cards is important so you can choose the right one during times of need. To ensure you can meet and address your financial obligations, figuring out which of these supports your needs for quick and restrict-free usage is key. Read more below to …

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When you apply for a secured loan, the value of the collateral you provide determines the loan amount you can get, which is referred to as the loan-to-value (LTV) ratio. Simply put, it is the ratio of the value of the asset you put up as collateral and the amount you receive as a loan.  …

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Bridge loans are a type of financing option that, true to their name helps you bridge the gap between you and your goals. With advancements in fintech, getting loans for urgent requirements is now easier than ever. However, in some instances, you may face a delay and access to funds may take some time.  In …

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Amortised loans are one of the many repayment options offered by lenders. When you opt for a loan, one of the most important factors to consider is the EMI. It includes a portion of your interest and principal, which you need to repay on a fixed date every month. Any form of credit, where your …

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A loan underwriting is an important part of the loan process. It helps lenders get a clear picture of the creditworthiness of borrowers and their repayment ability. With the help of credit underwriting, lenders also determine the loan amount as well as other loan terms, including interest rate and tenure for an applicant. Typically, lenders …

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Credit review or appraisal is an essential part of your loan approval process. To understand why it is done, think from the lender’s point of view. Lending is associated with the risk of late repayment or non-payment. To minimise this risk, lenders conduct a review to ensure they offer financial assistance to trustworthy borrowers who …

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After closing the loan, acquiring a loan closure certificate or a No Objection Certificate (NOC) is essential. It helps prove that you have successfully repaid the loan. Keep in mind that your borrowing journey does not end when you repay. There are some legal formalities that you need to complete after successful repayment, too. One …

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