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Benefits of Getting a Tractor Loan from an NBFC

Posted on by TVS Credit

Agriculture is a significant part of India’s economy. At the same time, tractors are the backbone of the nation’s modern economy. However, buying a tractor is a big investment for farmers and farm owners. It is difficult for many farmers to collect the necessary funds to buy one. This is where Tractor Loans from NBFCs come into play.

Non-Banking Financial Companies (NBFCs) have become a popular choice for farmers and small business owners looking for affordable Tractor Loans. NBFCs offer more flexible and farmer-friendly financing solutions. They understand the seasonal nature of agricultural income and provide customised loan options.

What Are NBFCs and How Do They Differ from Other Financial Institutions?

NBFCs are financial institutions that provide loans and other financial services but do not hold a banking license. TVS Credit is one such NBFC that provides specialised tractor financing options in India, making them a preferred choice for farmers.

NBFCs are regulated by the Reserve Bank of India (RBI) but do not accept public deposits. They function independently and are known for their customer-centric approach. NBFCs cater to specific market segments, such as farmers, agri-business owners, and rural entrepreneurs.

NBFCs rely on innovative lending models that reduce dependence on traditional credit scores. Instead, they evaluate loan eligibility based on practical financial indicators such as land ownership, agricultural produce, and overall repayment capability. This makes them more accessible to individuals who may not qualify for a bank loan due to a lack of formal proof of income or credit history.

NBFCs also tend to have a more localised presence, with representatives who visit rural areas to assist with documentation and loan approvals. This hands-on approach helps bridge the financial gap between organised lending institutions and the rural economy, ensuring that farmers can avail themselves of timely financial support without unnecessary delays.

Key Benefits of Getting a Tractor Loan from an NBFC

1. Flexible Eligibility Criteria: TMany farmers do not have a regular income or a strong credit history. One of the major benefits of Tractor Loans from NBFCs is that they offer loans with easier eligibility norms, making it possible for more farmers to buy tractors. This inclusivity ensures that even small-scale farmers can upgrade their agricultural machinery.

2. Quick Loan Processing: Time is vital during sowing and harvesting seasons. NBFCs process loans faster. Tractor Loans from NBFCs get approval within a few days. This ensures farmers get their tractors on time. This quick approval helps farmers avoid delays in farm operations and maximise their yield potential.

3. Customised EMI Options: Farmers have seasonal earnings, and NBFCs understand this. They offer repayment options like:

– Quarterly or half-yearly EMIs instead of monthly payments, reducing financial burden during lean periods.

– Balloon payments, where EMIs are initially lower and increase later when income improves, allowing better financial planning.

– Flexible loan tenure, making repayments easier and ensuring financial stability for farmers.

4. Affordable Interest Rates: NBFCs like TVS Credit offer affordable New Tractor Loans at competitive rates compared to other NBFCS. While RBI determines bank interest rates, NBFCs follow distinct guidelines for setting their interest rates, which can vary within a range of 8% to 20%. These rates are influenced by several factors, including the borrower’s credit profile, loan tenure, repayment capacity, type of tractor, and market conditions. Affordable interest rates reduce the overall payment burden, making it easier for farmers to manage their finances.

5. Strong Rural Presence: Many NBFCs, including TVS Credit, operate in rural areas, ensuring farmers get the financial help they need. Their branches and agents provide doorstep services, making the loan process hassle-free. This extensive rural network ensures farmers in remote areas can access the best financial solutions without travelling long distances.

6. Up to 90%* Financing: TVS Credit offers up to 90%* financing on Tractor Loans, allowing you to own a new tractor with advanced features without straining your budget. This high loan-to-value financing makes it easier for farmers to invest in the right equipment while maintaining financial flexibility.

7. Additional Financial Support: Some financiers like TVS Credit, also provide additional financial services, such as Used Tractor Loans, insurance, Farm Equipment Loans, and refinancing options. Once you take Tractor Loans from them, it becomes easier to avail of other loans without any additional procedure. This added support helps farmers secure their investments and upgrade equipment as needed.

Comparison: NBFC vs Bank for Tractor Loans

Feature NBFC Bank
Eligibility Flexible, even for no credit history Strict, requires credit score
Processing Time Fast (a few days) Slow (weeks)
Documentation Minimal Extensive
EMI Options Customised for farmers Fixed monthly EMIs
Interest Rates Not decided by the Central Bank Fixed by RBI
Rural Outreach Strong, with local branches Limited

Steps to Apply for a Tractor Loan from an NBFC

Applying for a tractor loan with NBFCs like TVS Credit is easy and simple. Here is how you can proceed:

1. Check Eligibility:

– Nationality: Indian

– Age: 18 to 65 years* (Agri background) and 21 to 65 years* (Commercial background)

– Occupation: Farmers, Agri-Business owners, land owners, and individuals with commercial backgrounds.

– Status of employment: Active

– Employment stability: Minimum 1 year

2. Required Documents:

Type Document
KYC Documents Copy of Voter’s ID/Driving Licence/Aadhaar Card/PAN Card/Passport
Address Proof Copy of Ration Card/Passport/Electricity Bill
Income Proof To support repayment of the Loan
Asset Documents Land Ownership or any other assets

3. Steps to apply:

– Select Your Vehicle: Decide the tractor for which you want to avail the loan.

– Submit the required details: Upload the necessary documents and get your loan approved.

– Loan Sanction: TVS Credit processes applications promptly. You will get a call from the sales executive to get your loan disbursed without any delay.

Good to Know

Before or after taking a tractor loan from an NBFC, here are some important points to keep in mind:

  • Hidden Charges: Always check for processing fees, prepayment penalties, and late payment charges before signing the loan agreement. At TVS Credit, we offer New Tractor Loans without any hidden charges which makes it transparent and easy to apply.
  • Government Subsidies: The government provides various subsidies and schemes to help farmers with tractor financing. Check if you qualify for any assistance to reduce your loan burden.
  • Insurance Coverage: Consider insuring your tractor to protect against unforeseen damages, theft, or natural calamities.
  • Seasonal repayment Options: If your income is seasonal, discuss customised EMI plans with the lender to ensure smoother repayment.
  • Maintaining a Good Credit Record: Timely repayment of your tractor loan improves your creditworthiness, helping you secure better financial products in the future.

Choosing the best NBFCs for Tractor Loans has many benefits. With easy eligibility, quick approvals, and flexible repayment options, NBFCs make tractor ownership simple for farmers. We offer tailored financial solutions, ensuring that every farmer can access modern machinery without financial stress.

If you are looking for an affordable Tractor Loans, explore the options available at TVS Credit and fulfill all your farming needs without any hassle.

Two-Wheeler NOC (No Objection Certificate) and Its Importance

Posted on by TVS Credit

The freedom of the open road on your own Two-Wheeler is a cherished milestone for many in India.

However, the journey to true ownership doesn’t conclude with the final Two-Wheeler Loan payment. Securing a Two-Wheeler No Objection Certificate (NOC) marks a crucial step towards complete independence and peace of mind on your rides.

In this blog, you will explore the importance of a NOC for bikes, and how it ties back to your loan.

What is an NOC (No Objection Certificate)?

An NOC for a Bike Loan is a legal document that confirms full repayment of the loan amount with no pending charges, hence it is also referred to as a No Dues Certificate.

Once this document is received, you will legally be relieved of the debt as it acts as proof of the fulfilment of your financial commitments regarding the Bike Loan.

Importance of NOC for Bike Loans

NOC of bike is crucial for individuals who have availed Bike Loans. It means the lender has no claim over your vehicle and won’t object if you decide to sell or transfer ownership.

In case of NOC of Bike Loan, it is either issued by the bank or an NBFC (Non-Banking Financial Company like TVS Credit

NOC for bike is essential for the following reasons:

  • Ownership Transfer: If you plan to sell your Two-Wheeler, the NOC ensures a hassle-free transfer of ownership to the buyer, assuring that the vehicle is free from any existing loans or liabilities.
  • RTO (Regional Transport Office) Process: After purchasing a Two-Wheeler through a loan, the vehicle’s registration remains in the lender’s name until the loan is cleared. The NOC for the bike is required to start the process of transferring the vehicle’s registration to the new owner.
  • Insurance Claim: In case of accidents or damage to your Two-Wheeler, your insurance claim may be affected if the vehicle’s ownership details have not been updated. The NOC ensures a smooth insurance claim settlement.
  • Legal Compliance: It is a legal requirement to update the ownership details of a vehicle with the Regional Transport Office (RTO) after loan repayment to avoid legal complications when transferring or selling the vehicle.

Additionally, the NOC is necessary if you want to remove or cancel the hypothecation of the bike from the registration certificate, or if you want to transfer the registration of your bike to a different RTO or state. According to the guidelines outlined in the Motor Vehicle Act, obtaining a NOC is mandatory for inter-state bike transfers or if you want to seek a new registration mark. Learn how to apply for the NOC below.

Steps to Obtaining Online NOC for Bike

You can apply for an online NOC in two ways.

If you have availed a Bike Loan through your bank or an NBFC, the process is quite straightforward.

1. Login to the your net banking or NBFC account.

2. Check for the NOC section and download the NOC.

3.If you are facing any issues, visit the bank branch for assistance.

At TVS Credit we offer a seamless process for obtaining NOC through the TVS Credit Saathi App and the TVS Credit website. Check the link for more: https://www.tvscredit.com/faq/what-is-the-procedure-to-get-noc/

After submitting your request, you will receive a confirmation with a reference number to track your query status.

Application for a NOC is now possible through an online portal ‘Parivahan’ under the Ministry of Road Transport and Highways. However, this is not yet enabled for all states.

Steps for obtaining NOC through RTO

You can apply for NOC directly through the RTO, follow these steps:

  • Contact the concerned officials for the CMV 28 form and fill in the required details.
  • Make a payment of ₹100, submit the filled form along with the necessary documents.
  • The RTO will verify and issue the NOC after confirming no outstanding dues or legal issues regarding your vehicle.

The Two-Wheeler Loan NOC plays a crucial role in securing ownership of your bike post-loan repayment. It signifies the complete clearance of not only does it signify the full clearance of your Bike Loan and ensures a smooth process for transferring ownership, as well as legal compliance. Whether you plan to sell your vehicle or update its ownership details, obtaining a Two-Wheeler Loan NOC is essential for a worry-free, legally sound experience. Choose us, TVS Credit, to breeze through this process today!

FAQs –

  1. Why is a NOC important for bikes?

It signifies the successful repayment of the Bike Loan and streamlines the procedure of ownership transfer and affirms legal compliance.

  1. Why is a NOC needed for loan?

Following loan closure, a NOC needs to be submitted to CIBIL to keep credit history up to date. In case you want to apply for any further loans, the CIBIL report should confirm the absence of any outstanding loans.

  1. What is a NOC certificate for a bike?

The Two-Wheeler NOC certificate for bike is a legal document stating that the issuing agency/bank has no objections to the details on the certificate.

  1. How long is NOC valid for a bike?

The NOC is valid for 6 months from the date of issue. Hence, it is important to finish the re-registration process at the RTO within this period.

Everything you need to know about Zero Down Payment Bike Loans

Posted on by TVS Credit

Looking for a bike loan but worried about the upfront charges? 100% financing is now possible! TVS Credit’s zero down payment Bike Loan allows you to own your desired Two Wheeler without any upfront cost*.

This blog will explore all you need to know about zero down payment Bike Loans. It will help you navigate the process, whether you’re buying for the first time or looking to upgrade.

What is Down Payment?

Down payment refers to the initial sum a buyer pays out of pocket when buying a Two Wheeler. The buyer makes this payment at the time of purchase, and it represents a percentage of the vehicle’s total cost. A Two Wheeler Loan covers the remaining balance. So, if you get 95% financing for your two wheeler, then you will have to pay the remaining 5% as down payment at the time of your bike purchase.

What is Zero Down Payment Two Wheeler Loan?

Banks and financial companies offer Two Wheeler Loans to aid the purchase of bikes and scooters. Most of the time, these loans cover up to 95%* of the vehicle’s on-road price.

A zero down payment Two Wheeler Loan allows the buyer to purchase their desired vehicle without any upfront deposit or payment. Such a loan, enables immediate ownership with no hidden or additional costs, except a nominal processing fee, which the lender will charge when you apply for the bike loan.

How does it differ from conventional bike loans?

A zero down payment loan isn’t like your typical bike loan. With this option, you don’t have to put any money down at first. The Two Wheeler Loan offered by TVS Credit covers 100%* of the vehicle’s on-road price depending on the borrower’s profile.

Now you can visit the bike dealership or showroom and buy the bike of your choice without any issues with a zero down payment loan.

Advantages of Zero Down Payment Bike Loan

Compared to conventional methods of financing, taking a zero down payment Bike Loan has many perks and advantages such as:

  • 100% funding: The NBFC/Bank covers the full cost of the bike
  • Convenient EMI: You can repay the loan through affordable regular monthly instalments
  • No hidden charges: There are no hidden or additional charges other than nominal processing charges at the time of Two Wheeler Loan application
  • Minimal documentation: Quicker processing with minimal, hassle-free online documentation

 

Is there any difference in total interest paid on a zero down payment loan vs a conventional bike loan with a down payment?

When you’re opting for zero down payment loans over conventional bike loans, keep in mind that you may have to pay more interest in total over your loan tenure.

While making the decision, consider how much the loan will cost throughout the period to make the best choice based on your repayment capacity.

Tips for getting the best deal

When you’re looking to get a bike loan, don’t just focus on the lowest interest rate. To get the best deal on a zero down payment Bike Loan, keep the following in mind:

  • Leverage existing lender relationship: Having an existing relationship with your lender makes it easier to verify your creditworthiness. It also increases your chances to get better interest rates.
  • Market comparison: Conduct a thorough study on Loan-to-Value (LTV) ratio, interest rates, processing fees, and total costs from different lenders.
  • Look for special deals: Sales during certain times of the year, such as festive seasons and special occasions can give you perks such as free insurance, lower fees, and better loan-to-value ratio.

Who is eligible for a Zero Down Payment Loan?

While the eligibility criteria may vary depending on the lender, here are some common eligibility requirements:

  • Your age should be between 18-65, if you are below 21 years of age, you can apply for the loan with a guarantor
  • You should be an Indian citizen
  • Your CIBIL score/credit score should preferably be higher than 750
  • Salaried applicants must have a total work experience of at least 1 year
  • If self-employed, you should have proof of stable income (ITR with computation of Income)

 

Factor Zero Down Payment Two Wheeler Loan Conventional Two Wheeler Loan
Down Payment No upfront payment Requires a minimum amount as down payment, which might vary based on borrower’s profile
Interest Rates Overall higher interest rate due to increased risk for the lender Generally lower interest rate due to partial payment lowering the risk for the lender. Know more about Two Wheeler loan interest rate at TVS Credit
Loan Amount Coverage 100%* on-road price of the bike is covered Up to 95%* of the vehicle’s on-road price is covered
Cash Flow Your cash flow remains unaffected owing to the upfront payment by the lender Affects your cashflow and finances as big amount of money goes into the down payment of the loan

A zero down payment loan can be advantageous if you prefer to maintain good cashflow and want to manage payments better without an upfront cost.

Make your choice mindfully based on your financial situation, preference and convenience. One option to consider is TVS Credit, which offers zero-down payment bike loans based on your profile and provides a quick loan with no difficulty. So don’t wait any longer and Apply for a Two Wheeler Loan with TVS Credit now!

FAQs –

  1. Can I take loan without down payment?

Yes, you can secure a loan with no initial payment required in some cases. A zero down payment Bike Loan allows the lender to finance the full cost of your bike. This means you can purchase your desired Two Wheeler without needing to make any upfront payment.

  1. What is the minimum down payment for a bike loan?

Bike down payments typically vary between 10% and 30% of the bike’s value. Many buyers opt for this lower initial payment to benefit from reduced EMI (Equated Monthly Instalments) and ease their financial obligations in the long run.

  1. Is down payment compulsory?

A down payment is not mandatory for Two Wheeler Loans in some cases. TVS Credit offers various plans with loan terms of up to 60 months and competitive interest rates. For details on our current two-wheeler financing options, please visit our Two-Wheeler Loan product page.

  1. Why is zero down payment bad?

Zero down payment loans may come with drawbacks such as higher interest rates, extended loan tenures, and additional fees. These factors can increase the overall cost of the loan, so it’s important to weigh these against the benefit of not making an upfront payment.

 

Disclaimer: While we ensure the information, products and services we offer through our website and associate platforms are accurate, there may be unintended inaccuracies and/or typographical errors in the content. The information on this site and related websites is for general informational purpose and in case of any inconsistencies, the details mentioned in the product/service document will take precedence. Readers(audience) and subscribers are encouraged to seek professional advice and go through the product/service documents to make an informed decision before availing of a product or service.

*Terms & Conditions Apply  – wherever applicable.

Mobile Loans at zero down payment- Benefits, eligibility & process

Posted on by TVS Credit

Introduction to Mobile Loan with Zero Down Payment

Staying updated with the digital world requires nothing but a smartphone. Be it fashion, food, health or politics, everything is just a click away.

However, if you are worried about the high costs of buying a smartphone, taking a zero down payment Mobile Loan from a bank or an NBFC such as TVS Credit can be a reliable option.

Mobile Loan is a financial aid to buy a smartphone without any upfront payment and pay later as instalments over a period of time. This approach significantly resolves the financial constraints of many potential buyers and gives them the opportunity to own a smartphone of their choice. Know about the benefits, eligibility criteria, and step-by-step process for obtaining mobile finance with zero down payment through this blog.

Benefits of zero down payment Mobile Finance

There are several benefits of choosing a Mobile Loan instead of a save-and-buy method. Some of the benefits have been listed below:

  • Easy accessibility: You can easily own the trendiest smartphone on the spot without the need to save to make a lump sum payment, especially if you urgently need a new phone
  • Easy budget planning: With pre-decided monthly EMIs you can evenly spread out the cost in smaller portions and manage your budget more effectively
  • Immediate upgrades: Zero down payment mobile phone loans help you stay connected with the rapidly changing technology and new launches without waiting until you have saved enough money
  • Improve credit score: Timely repaying the mobile loan can improve your credit score and make it easy in the long run to obtain future loans.

Eligibility criteria for zero down payment Mobile Loan

The eligibility criteria might vary depending on the NBFC. However, some of the common factors include the following age, credit score, and employment status:

  • Age: The minimum age requirement is 18 years by most of the lenders
  • Credit Score: Better the credit score, higher the chances of getting your loan approved
  • Employment Status: Having a stable source of income is necessary to reflect your repayment ability

Documents required for zero down payment Mobile Loan

For processing a loan request, NBFCs generally require a few basic documents as proof for verifying the details. Some of the documents required to apply for a zero down payment Phone Loan include the following:

  • Identity proof: Any government-approved identity proof such as an Aadhar card or voter ID or passport or driving license
  • Address proof: Any document establishing proof of residence such as recent electricity bills or rental agreement will be required at the time of documentation
  • Income proof: You will be asked to provide recent salary slips or bank statements or tax returns to show your ability to repay the loan

Step-by-step process

From choosing a lender and filling out the application form to getting your loan approved, there are a few steps that you need to follow to apply for a Mobile Loan. Check them out below:

  • Make a choice: Firstly, explore the smartphone options available in the market and select the phone you want to buy
  • Select a lender: Shortlist the most trusted finance providers and compare their interest rates, repayment plans, and other terms & conditions. Choose a lender that matches your expectations
  • Proceed to apply: You can apply for zero down payment Mobile Loan by simply filling out the application form with the necessary details and submitting it to the finance provider either online or offline

Overview of the approval process

  • Application review: Once the provider receives your application, all your details will be reviewed including your income, identity, and credit history
  • Approval notification: If your application gets approved, you will be notified about further details such as interest rate, EMI amount, and loan tenure
  • Submit documents: To take your application a step further, you will be asked to submit the supporting documents to finalise the approval process

How the repayment works?

  • EMI schedule: Buy phone on EMI wherein a monthly schedule of a particular amount is fixed, after which EMIs are debited automatically from your bank account on a decided date every month
  • Interest rate: There are interest rates and, in some cases, additional charges that may apply
  • Prepayment Options: If you wish to pay off the loan early, check for any penalties on pre payments if any, and the benefits of early payment.

Tips for choosing the right finance provider

When choosing a loan provider, there are a few things you must keep in mind. Know such tips before you select a lender:

  • Evaluate every deal: Compare interest rate, repayment tenure, and any additional charges of various trusted lenders and select the one that offers the best deal in all aspects to meet your needs
  • Know the terms: Carefully check the terms and conditions of the loan agreement and learn in detail about all the possibilities such as penalties for missed payments or benefits of early payments if any
  • Consider the reviews: Check out the reviews and ratings of customer reviews about the finance provider to know about the reliability of their services and trustworthiness in the market
  • Check for payment flexibility: Choose a provider that offers good flexibility in repaying the instalments and provides excellent customer support

Zero down payment Mobile Loan is a reliable option for those who are planning to buy a smartphone without the pressure of upfront payments. Remember to compare the offers and check all details carefully before proceeding. Also check out TVS Credit Mobile Loan with exciting offers and competitive terms. Find a plan that meets your requirements and enjoy the convenience of accessing the latest mobile phone at ease.

 

Disclaimer: While we ensure the information, products and services we offer through our website and associate platforms are accurate, there may be unintended inaccuracies and/or typographical errors in the content. The information on this site and related websites is for general informational purpose and in case of any inconsistencies, the details mentioned in the product/service document will take precedence. Readers(audience) and subscribers are encouraged to seek professional advice and go through the product/service documents to make an informed decision before availing of a product or service.

*Terms & Conditions Apply  – wherever applicable.

Personal Loan Balance Transfer: How to transfer your Personal Loan to another Bank/NBFC

Posted on by TVS Credit

Personal Loans can be a financial lifesaver as it offers quick disbursal of funds in terms of urgent needs from medical emergencies to home renovations. However high interest rates can sometimes be overwhelming.

With a Personal Loan Balance Transfer, borrowers can transfer their existing Personal Loan to another bank or Non-Banking Financial Ccompany such as TVS Credit and enjoy better terms.

Let’s navigate through the process of Balance Transfer Loan.

Online Personal Loans

What is a Balance Transfer Loan?

A Balance Transfer is basically a method whereby a borrower moves or transfers the existing loan amount from the current lender to another lender who is offering better terms and conditions including a lower interest rate.

This financial tool helps the borrower to relieve from the money related troubles by decreasing the monthly EMI amounts and makes the loan repaying repayment procedure easier. By getting the loan at a lower rate of interest, the borrower can easily reduce the total interest outgo during the loan period and save a lot of money.

Moreover, the new lender also provides (if needed) flexible terms and conditions like higher loan tenure or flexible EMI options which the borrower can choose as per his financial requirements and preferences. This helps the borrower to overcome financial crunch that helps in improving his financial habits and debt recovery ratio.

What is a Personal Loan Balance Transfer?

Transferring the remaining balance of a Personal Loan from one lender to another, also known as a Personal Loan Balance Transfer, can be a pretty practical financial move. When you make this transfer, it’s usually because the new lender offers lower interest rates. This means you can lower your monthly payments, which makes it easier to handle your loan repayments.

But it gets even better!

By switching lenders, you end up paying less in interest overall throughout the life of the loan. And that can really take the pressure off your wallet and make it simpler to manage your monthly budget. Plus, it’s a great way to save some extra cash in the long run. So, if you’re looking to reduce your debt in a more effective way, a Personal Loan Balance Transfer might just be the answer you’ve been searching for.

What is a Personal Loan Balance Transfer?

Benefits of a Personal Loan Balance Transfer

A Personal Loan Balance Transfer offers several key benefits to borrowers-

  • Low interest rates: The biggest advantage is having a chance of a reduced interest rate, which saves you a lot of money over the term.
  • Lower EMI: When the interest rate goes down, monthly EMIs decrease thereby reducing financial pressure on borrowers
  • Better terms: Borrowers can avail better and different terms like increased repayment flexibility or an elongated tenure
  • Top-up loans: On opting this facility, some lenders offer borrowers above existing loan amount giving them extra funds if necessary
  • Credit score improvement: One can improve their credit score over time by paying lower EMI’s consistently

Visit our page to know more about our TVS Credit Personal Loans and the benefits associated with it..

Eligibility criteria for a Personal Loan Balance Transfer

One must meet these criteria before applying for a Personal Loan Balance Transfer:

  • Good credit score: Lenders prefer borrowers with credit scores above 700 most of the times
  • Stable income: Proof of income needs to be constant so that the person can pay back their loan
  • Completing a minimum loan tenure: The lender often asks for EMI repayments over 12 months on the borrower’s existing loan to qualify

Documents Required for a Personal Loan Balance Transfer

It is advised to have the following documents handy before applying for such a loan –

  • Identity Proof: Aadhar card, PAN card, passport etc.
  • Address Proof: Utility bills, rental agreement etc.
  • Income Proof: Salary slips, bank statements, income tax returns etc.
  • Existing Loan Documents: Sanction letter, repayment track record and loan statement from the current lender are required.

How Does a Personal Loan Balance Transfer Work?

How Does a Personal Loan Balance Transfer Work?

These steps are involved in Personal Loan Balance Transfer process:

  • Research and compare: Start by researching different lenders comparing interest rates, fees and terms
  • Eligibility check: Make sure you satisfy the eligibility requirements of the newly identified lender
  • Application: Apply for a balance transfer by submission of required documents
  • Approval: Once you receive an approval from the new lender, they will pay off your old outstanding amount to your existing bank
  • New loan agreement: This is followed by renewal with new lender you selected

Now that you are aware of the different aspects and features of Personal Loan Balance Transfer, let’s answer a few frequently asked questions to give you a better understanding.

FAQs –

Is Personal Loan Balance Transfer a good idea?

Yes, if you are able to get a lower rate of interest, pay less EMI or able to get better terms.

Can we transfer Personal Loan from one bank to another?

Yes, Personal Loans can be transferred from one bank to another bank or NBFC which offers better terms.

Does balance transfer affect credit score?

No, balance transfer doesn’t affect credit score. However, loan enquiry from various lenders may affect your credit score temporarily.

What are the drawbacks of balance transfer?

Processing fee, prepayment penalty, if any, from existing lender and may not get better terms are some of the things to look out for.

What will be EMI, if I transfer the personal loan?

New EMI will be dependent upon the interest rate and loan tenure offered by the new lender. Ideally, it should be less than the existing EMI if the rate of interest is lowered.

Does Personal Loan need any collateral?

No, Personal Loan is an Unsecured Loan and does not need any collateral.

How many days will it take to get my Personal Loan approved?

It totally depends on the lender, at TVS Credit, it usually takes less than a day to get the loan processed, depending upon the verification process.

Can repayment tenure change in Personal Loan Balance Transfer?

Yes, it may be extended or reduced depending upon the new lender’s terms and conditions. This facility offers flexibility in repaying the loan.

What are the interest rates if I transfer the Personal Loan?

The rate of interest in the case of balance transfer varies from lender to lender and depends on your credit score, loan amount, and loan tenure. It usually ranges between 10% to 20% per annum.

Personal Loan balance transfer is a great financial strategy if utilized in a correct manner. If you are transferring your existing loan to a lender who offers better loan terms, then you can reduce your monthly outflow, lessen the interest outgo, and get better loan conditions. Therefore, before going ahead with a balance transfer loan, research well, compare the terms and conditions and check whether you are eligible or not.

Download the TVS Saathi app today, to check your eligibility and process loan faster and hassle-free.

How to get instant Personal Loan without documents

Posted on by TVS Credit

Looking for a personal loan, but worried you don’t have the required documentation?

We have good news for you! In this blog we will delve into the methods and strategies to obtain an instant personal loan without documents

Introduction to Personal Loans

Personal loans are classified as unsecured loans, that are secured without the need for a mortgage or collateral. Such loans benefit those who want to opt for quick loans to meet their needs with minimal documentation.

If you have a high credit score and wish to avail of a personal loan without documents, you can secure a loan from TVS Credit online without the hassle of elaborate paperwork.

Understanding Instant Personal Loans Without Documentation

Understanding the need for Minimal Documentation

Applying for a Personal Loan used to be a tedious process requiring extensive documentation, deterring prospective borrowers.

The digital revolution has led to a shift in this system making way for data driven, user friendly processes to determine a potential borrower’s creditworthiness.

Today, getting a pre-approved Ppersonal Lloan without documents has become a simple and straightforward process, thus providing an efficient user experience to cater to modern financial needs.

Lenders offering loans with Minimal Documentation

Since loans fall under the unsecured form of credit, loan approval largely depends on factors such as credit history, creditworthiness and CIBIL score to approve no documentation Personal Loans.

Once this is in order, lenders like banks and NBFCs like TVS Credit offer an instant Personal Loan without documents easily and only require you to submit minimal documents such as ID and address proof.

Types of loans with Minimal Documentation

Unsecured loans such as Personal Loans typically involve minimal documentation.

These loans can help you fund expenses for various needs such as wedding/engagement, medical bills, education related expenses etc.

You can apply for a Personal Loan without documents and income proof. There are many benefits to applying for a personal loan without any documents, one of them being simple and straightforward and the application process.

Application Process for Minimal Documentation Loans

Applying for an instant Personal Loan without documents with TVS Credit can be done in a few easy steps.

  1. Download the TVS Credit Saathi App and sign up with your mobile number
  2. Update your KYC details to verify your profile and check your eligibility
  3. Complete a V-KYC (Video KYC) process after detailing your desired loan amount and tenure
  4. Verify your bank details and complete the E-mandate process for instant loan disbursal

Tips for a Successful Application

If you want to apply for a personal loan without documents, your chances of loan approval will be higher if you have a pre-existing relationship with your financial institution of choice. It becomes easier for your loan provider to assess your creditworthiness, your eligibility for a loan and your capacity to repay the loan.

For similar reasons, it is advisable to make sure your credit card bills, and any outstanding dues are cleared in time so that you can maintain a high credit score.

Here are some tips to help you apply for a personal loan without documents:

  • High credit score A CIBIL score higher than 700 is perceived as an indicator by lenders that you will clear your loan within the specified time frame. You can improve your credit score by –

-> Repaying dues on time as outstanding loans can affect your credit score

-> Avoiding default on EMIs or credit card bills

  • Improve your lender relationship Apply for the loan through a financial institution you have precedent with. Your history can expedite the approval process.
  • Debt to Income ratio Maintaining a debt-to-income ratio below 50% acts as proof of financial credibility, reassuring the financial institution of your repayment capacity.
  • Consider a Co-applicant Applying for the loan along with a Co-applicant can aid your case and raise your chances of loan approval.

Tips for Successful Online Personal Loan Applications

Advantages of Loans with Minimal Documentation

Getting a Personal Loan with TVS Credit offers many benefits such as

  • Instant Approval Download the TVS Credit Saathi app to get quick loan approval and funds transferred to your bank account on the same day
  • Flexible loan amount and tenure Choose easy EMI options and flexi repayment tenures of 6-60 months on loan amounts between ₹50,000 to ₹5,00,000
  • 100% paperless process The entire loan application and disbursal process is app based, and requires no paperwork
  • Zero documentation Only basic details such as PAN number, Aadhar number and address proof are required to avail the personal loan
  • Quick and easy application Provide a few basic details and verify them to get the loan amount credited to your bank account hassle-free
  • Personalised assistance TVS Credit’s digital assistant TIA is accessible at every step of the way to ensure a seamless experience

Now do away with the inconvenience of excessive paperwork to get funds to meet your personal needs. You can apply any time, from the comfort of your home, using your preferred mobile device to get the loan amount required credited to your bank account instantly. Skip the wait to meet your financial needs with TVS Credit, download the TVS Credit Saathi App from Play Store or the App store enjoy instant Loan Approvals.

FAQs –

  1. Can I get personal loan without any documents?

You can get an instant personal loan through the TVS Credit Saathi App even without documents*.

  1. How to get a personal loan with minimum documentation?

Get a personal loan using TVS Credit Saathi App by submitting only basic documentation like PAN number, Aadhar number and address proof.

  1. What is a paperless loan?

A Personal Loan application process that does not require the physical submission of documentation is known as paperless loan. It is a convenient, easy and fast process for borrowers since digital data driven processes are used for loan approval and verification, streamlining the process

  1. Can I get a personal loan without submitting my PAN card?

Certain select customers can avail of personal loans through TVS Credit without submitting any documents such as PAN Card, income proof etc.

Marriage Loan Guide: Benefits of Personal Loan for Wedding

Posted on by TVS Credit

Getting married is an important occasion, filled with joy and excitement, although it can sometimes come with significant costs and mental strain.

Many couples turn to Marriage Loans to simplify the process and preserve their financial independence. In this blog, let’s explore the details of Marriage Loans, including eligibility criteria and the application process, providing valuable insights to help you transform your dream wedding into a beautiful reality.

What is a Marriage Loan?

Marriage Loan, also known as a Wedding Loan, is borrowed money from a bank or a financial institution specifically for funding wedding expenses. It is an Unsecured Personal Loan product offered by authorized lenders such as a bank or Non-Bank Financial Companies like TVS Credit to meet wedding needs and expenses. The loan is structured with the objective of financing pre-wedding expenses where the cash outflow is considered more frequently.

Marriage Loan Eligibility Criteria

The eligibility criteria to qualify for a Wedding Loan includes:

  • Minimum age requirement (usually 21 to 60 years)
  • Salaried or self-employed with a steady income
  • Good credit score (usually 700 or above)
  • Employment stability and a consistent income

Benefits of a Marriage Loan

  • Quick approval: Marriage or Shaadi Loans offer fast approval, providing funds with quick approvals.
  • Flexibility: Use the loan amount to cover various wedding expenses, including venue reservations, catering, decorations, attire, and more.
  • No collateral: Marriage Loans are unsecured, thus do not require any collateral.
  • Fixed Marriage Loan interest rates: Enjoy fixed Marriage Loan interest rates, allowing for better financial planning.

 

Benefits of a Marriage Loan

Wedding Loans vs. other financing options

Let’s compare Marriage Loans with other common financing options for weddings:

Credit Cards: While using credit cards, you can buy things with your money as well as pay bills conveniently. Credit cards may come with higher interest rates compared to Wedding Loans.

Additionally, if the payment is delayed there is a risk of higher interest charges. For different reasons, credit cards might not be an effective solution to acquire larger expenses for a wedding.

Traditional loans: The traditional Wedding Loans, such as bank loans or loans from financial institutions, require an extensive application process, including documentation and credit checks while with TVS Credit we offer easy paperwork and other functionalities, such as quick loan approval and immediate funds. Credit cards offer a seamless way for you to spend with ease and traditional loans offer a structured financing. Marriage Loans are often preferred for their flexibility, accessibility, and lower interest rates compared to other financing options. With the help of TVS Credit Saathi App, you can relax at home and enjoy your time without worrying about the approval process for your Wedding Loan!

Steps to Make Your Dream Wedding a Reality with our Online Personal Loans

Steps to make your dream wedding a reality

Take control of your wedding finances to transform your dream wedding into a reality without added stress or financial worries. Explore these key steps to have a smooth and efficient wedding planning experience.

  1. Set a budget: Stay on the sure side by creating a budget and be smart about your spending. It is important to keep your finances under control while planning for your big day. Start by budgeting and list out all wedding expenses, including the venue, catering, decorations, attire, and more. Having a detailed plan will ensure that you are aware of all costs and can avoid unexpected expenses in various areas.
  2. Compare loan offers: As you are in the process of applying for a Marriage Loan, it is essential to consider other loan offers you have. Analyse interest rates, loan durations, fees, and repayment options to find the best deal that fits your financial situation. When choosing a provider, make sure that their fees and loan terms are affordable for you and offer flexibility in repayment. You can even inquire about benefits for early loan repayment, which can help reduce interest costs and make repayment easier.
  3. Plan in advance: The best practice is to secure the loan well in advance of the wedding day. Start the loan application process early to avoid the last-minute rush and ensure all required documents are ready. Act now to secure the loan cover when needed, especially for vendor deposits and other initial payments.

Planning ahead helps in dealing with contract-related issues smoothly. Remember, whether it’s a quick Marriage Loan approval, flexibility in fund usage, or fixed interest rates, Marriage Loans provide the financial support you need without the stress of collateral requirements. This convenient credit solution is tailored to your needs, offering comfortable finance for your dream wedding. Always consider your income and comfort level with repayment to choose a loan that fits your budget and financial requirements.

FAQs –

  1. Who is eligible for a Marriage Loan?

The individuals eligible for the Marriage Loan are those who meet the age, income, and credit score requirements that are set by the credit institutions.

  1. Is a Marriage Loan good?

It is good when the support of these loans do not have any issues. Such loans enable you to handle the expenses for the wedding more effectively and act as a saving route from any kind of irresponsible funds handling.

  1. What are the documents required for a Wedding Loan?

Important documents like Aadhar Card, PAN Card and Address Proof will suffice the requirement for a loan.

  1. How to apply for a Marriage Loan?

You can initiate the process by visiting the official website if a store visit isn’t feasible for you. Another convenient option is to download the TVS Credit Saathi App and follow the application procedure by submitting the required documents and information.

  1. What is the difference between a Personal Loan and a Marriage Loan?

A Personal Loan is a flexible financial tool designed for multi-purpose, while a Marriage Loan is specifically tailored to finance wedding expenses such as venue, catering, and apparel. Wedding Loans offer unique terms and competitive rates specifically aimed at meeting the financial needs of weddings.

 

 

 

Two-Wheeler Loan and Interest Rates 2024

Posted on by TVS Credit

If you are planning to purchase a two-wheeler, it is important to consider factors such as Two-Wheeler Loan interest rates, EMI, and more, before hitting the road. Read ahead for valuable insights to make an informed decision!

What are Two-Wheeler Loan Interest Rates?

One of the major considerations you need to take when applying for a Two Wheeler Loan is the interest rate. This is all important as it determines the EMI amount and the impact on your monthly budget.

The interest rate’s calculation is dependent on your credit history. Your EMI will include the principal amount of the Loan along with the interest rate.

Many banks and Non-Banking Financial Companies (NBFCs) such as TVS Credit provide Two Wheeler Loans, allowing people to fulfil their dream of purchasing it.

Under Two-Wheeler interest rates, you can also select on what suits you the best.

Types of Two-Wheeler Loan Interest Rates

Depending on the lender, two wheeler or Bike Loan interest rates can be either a variable one or a fixed rate of interest.

In such a case, the choice between a fixed rate and a variable rate relies on the level of risk that comes with each.

Fixed interest rate tends to be higher than variable rates. However, fixed rates are not subject to change irrespective of changes in market conditions.

For instance, if you opt for a fixed rate of 13% p.a., it will stay constant throughout your Loan’s duration.

On the flip side, variable interest rates vary depending on market rates. Rates tied to the Marginal Cost of funds-based Lending Rate (MCLR) change each time the Reserve Bank of India changes the repo rate.

This leads to an increase or decrease in the rates with time. However, variable interest rates are typically lower than fixed rates.

After finalising a bike interest rate, the next step in applying for a Bike Loan is to understand the eligibility criteria for doing so, which includes documentation.

Documents Required to Apply for a Bike Loan

Documentation required to apply for a bike or Two Wheeler Loan varies depending on whether you are a salaried or self-employed individual.

  • KYC documents

    such as Photographs, Identity proof (Passport/PAN card/Driver’s License/Voter ID/Aadhar Card), Address and Age proof, remain constant.

  • Last 3 month’s salary slips/Form 16/Latest ITR

    is valid for salaried individuals whereas self-employed individuals must submit their latest Income Tax Return (ITR)

  • Employment/Offer Letter

    or TDS Certificate must be submitted for Salaried and Self-Employed persons respectively.

  • Last 3 month’s Bank Statement

    must also be submitted by both categories.

Click here for more information regarding the required documents:

Tips to Lower Down your Bike Loan Interest Rate

When applying for a 2-wheeler loan, you should aim to avail one at the lowest possible rate. Here are a few tips that can assist with this.

  • Brush up your Credit Score:

    As your credit score plays an essential part in deciding the interest rate you are presented with, try to clear up your credit history first. If you lack good credit, take measures to improve it before you try to qualify for a Loan.

  • Check on your Debt-to-Income Ratio:

    Try to improve your current debt status as this shows you what part of your current income goes toward the repayment of loans and credit card bills.

Attempt to clear your existing Loans and bring down this ratio. The lower your ratio, the more are your chances of getting good interest rates.

  • Negotiate with your Lender:

    In some cases, negotiating with your chosen lender can help you get better rates. This applies especially in situations where you might not fulfil all the eligibility criteria.

For example, in case you don’t have sufficient income, but are expecting a salary hike shortly, submitting relevant proof of this can help you avail good interest rates.

Other factors affecting your Two-Wheeler Loan Interest Rates

  • Credit Score:

    One of the most crucial factors that determine your interest rate. If your credit score is more than 700, you may qualify for lower interest rates. Having poor credit scores may lead to high-interest rates or sometimes even rejection of the Loan applicant.

  • Income Level:

    Banks and lenders may have a minimum income requirement for Loan approval. If you have a lower income than the criteria, you may be offered higher rates of interest.

  • Place of Work:

    Your place of employment or the organisation you work for, can influence the interest rate you are given. Employment in a reputed company increases your chances of holding a stable job and drawing a stable income generally translating into lower interest rates.

  • Nature of Employment:

    Different interest rates are levied by lenders depending on whether you are self-employed or salaried.

  • Age:

    Age can be all important in deciding on your interest rate. For example, if you are nearing retirement, your loan interests may be hiked up due to reduced capacity to repay the Loan.

  • Existing Relationship with the Lender:

    A pre-existing relationship with the Loan provider, may aid you in getting a better rate of interest and Loan terms.

Breaking down FAQs:

1. How to calculate Two Wheeler Loan EMI?

Typically, Loan EMI calculators require the following inputs: Loan Amount, Interest Rate and Repayment Tenure.

2. What is the maximum tenure of a Two Wheeler Loan?

Loan terms generally range from a minimum of 12 to a maximum of 60 months

3. How does credit score impact Two Wheeler Loan interest rates?

Having low credit scores can lead to higher interest rates.

4. How to apply for a Bike Loan?

There are various ways to apply for a Bike Loan including online, through a dealership etc.

Click here to apply: or download the TVS Credit Saathi app to know more.

5. What is the minimum amount for a Bike Loan down payment?

A Two-Wheeler Loan can be applied with zero down payment.

 

Bring Home an Air Conditioner this Summer – Benefits of Buying AC on EMI

Posted on by TVS Credit

With summer season in full swing, it is the need of the hour to cool down. The best way to beat the heat during this sweltering summer is to cool down your home with an air conditioner. While a lot of us would want to purchase an AC to stave off the heat, we would prefer not to pay the money upfront, one solution for this would be to pay in easy instalments and buy the AC on EMI.

In this blog post, we will delve into the benefits of purchasing an AC on EMI and how it can enable you to enjoy a cooler environment without straining your finances!

Buy an AC on EMI: The Optimal Approach for Your Needs

When you want to finance your AC, you can opt to go for EMIs on a Credit Card or buy AC on EMI without a Credit card by availing a Consumer Durable Loan.

Credit Cards may not be a viable option for everyone; however, anyone can apply for a Consumer Durable Loan, regardless of one’s credit history.

Banks and NBFCs like ours, TVS Credit, offer Consumer Durable Loans at minimum interest rates.

With us, you can avail up to 100% finance via our zero down payment Loans. This applies even for first-time borrowers without a credit history.

Click here to know more:

Steps to Buy AC on EMI:

AC finance processes are now very user-friendly, with clearly laid down steps for the consumer’s easy access.

Let us break this down in detail below:

    • Create a checklist of requirements:

      Start by recognising your cooling requirements. This can entail zeroing in on the AC type such as Split AC, Window AC, Inverter, or non-inverter AC etc. as well as capacity depending on the space, energy efficiency (star rating) etc.

    • Pick an AC model:

      Once you have a clear picture of your needs, narrow your choices down to AC models that fit them. Analyse the features, price range, customer satisfaction ratings, etc. to make an informed decision.

    • Choose your Financial Institution:

      To execute your EMI plan, you must pick a financial institution. Weigh the EMI plans, interest rates, tenure, and terms and conditions of the loan provided by various lenders before arriving at a conclusion.

      TVS Credit can prove to be a solid choice as you can pay your EMIs with no additional charges on Loan amounts ranging from ₹10,000 to ₹1.5 lakhs* and flexible repayments spread across 6 to 24 months*.

    • Qualify for EMI:

      Once you have an AC model and the financial institution in mind, apply for EMI. Depending on the lender, this requires you to fill out an online application form linked to the lender’s website or apply in person to qualify for the EMI.

    • Get your documents in order:

      Certain documents will be needed by the institution for verification purposes. This includes ID proof (Aadhaar card, PAN card, Driver’s license etc.), proof of residence (Rental agreement, Utility bills etc.), and Income proof (Bank statements, Salary slips, etc.)

    • Await application results:

      Financial Institutions will review your application after you hand in the application form and the required documents. The approval process waiting time might range from a few hours to a few days.

    • Make the AC purchase:

      After your EMI application is reviewed and receives approval, the funds requested to purchase the chosen AC model are either directly transferred to the retailer or reimbursed, depending on the lender’s process.

    • Make the EMI payments:

      You can now proceed to clear the EMI amounts per the agreed-upon schedule. Mostly this is a fixed amount that is due to be paid each month, allowing for effective fiscal management..

Benefits of buying an AC on EMI:

Benefits of buying an AC on EMI:

      • Purchase of AC in instalments:

        Pocket-friendly monthly instalments can help you avoid the strain on your finances caused by shelling out a lump sum upfront.

      • No cost EMI:

        You can pay your monthly instalments without incurring any additional charges

      • Zero Down payment:

        As all expenses are covered for the consumer durable product you wish to purchase; you need not wait any longer to own your desired appliance

      • Minimal documentation:

        You can now get a Consumer Durable Loan online with minimal documentation and processing with TVS Credit

      • First-time borrowers’ eligibility:

        Financial support is offered even to first-time borrowers with no credit history

Purchasing AC on EMI, Without Credit Card’s Limitations

You can overcome credit card limitations, as in case, you meet the eligibility criteria for a consumer durable loan, you can pay EMI without the need for a credit card.

However, customers who have a credit card may be able to apply for higher loan limits.

In the light of skyrocketing temperatures, buying an AC on EMI can prove to be a comforting solution. AC on EMI is a financially conscious purchase strategy that can help you tackle the heat without lengthy wait times. If you want to estimate the EMI amount as per your budget, you can use our AC EMI Calculator .

With TVS Credit, owning your dream home appliance is made easier than ever! It is an efficient way to finance your AC purchase with our Consumer Durable Loan. The minimal documentation process and round-the-clock approval make financial solutions instantly feasible even for first-time borrowers.

 

Secured or Unsecured Personal Loans: Your Ultimate Guide

Posted on by TVS Credit

When it comes to money matters, getting the right loan is important for your financial success.

You have two main choices for Loans: Secured Personal Loan and an Unsecured Personal Loan

Secured Loans require collaterals, such as property or assets, to guarantee the loan amount. In contrast, Unsecured Loans do not require any collaterals, instead, they rely on your credit or repayment history and income source, for approval. Both have advantages and disadvantages, so knowing and understanding the differences is important.

First you should carefully consider your credit history, financial stability, borrowing needs, and risk tolerance to decide whether to go for a Secured or Unsecured Personal Loan. These factors will help you select the most suitable loan.

Read more as we explore both types of Personal Loans and get ready to boost your confidence in managing your money!

Differences Between Secured Personal Loans and Unsecured Personal Loans

What is an Unsecured Personal Loan?

An Unsecured Personal Loan is a type of loan where you don’t have to offer any valuable assets like your house or car, as a guarantee. Unsecured Personal Loan lenders evaluate your credit, income levels, and your ability to repay the balance. Your credit and cashflows will help you get the Unsecured Loan.

A Personal Loan can be used for almost any purpose like debt consolidation, home improvement, unexpected expenses, travelling expenses and many more, without much hassle.

Check out our TVS Credit Saathi App or website, and apply for our instant Personal Loans without the need for collaterals. This convenient option allows you to secure a Loan of your desired amount anytime, anywhere. Whether you need funds for a medical emergency, home renovation project, or educational expenses, Personal Loans offered by us, can provide the financial support you require without the hassle of pledging any collateral.

Exploring Unsecured Personal Loans: What you need to know:

Pros:

  • No collateral required: You do not have to pledge your assets for the loan
  • Quick approval process: Unsecured Personal Loans have quicker approvals since there is no need for collateral evaluation
  • Versatile use: Funds from Personal Loans can be used for a wide range of purposes, giving the borrowers flexibility

Cons:

  • Higher interest rates: Unsecured Personal Loans typically have higher interest rates than Secured Personal Loans since lenders anticipate more risk
  • Limited borrowing amounts: Without collateral, lenders may limit the amount borrowers can take
  • Stricter eligibility criteria: Borrowers need a strong credit history and steady income to qualify for Unsecured Personal Loans

 

What is a Secured Personal Loan?

A Secured Personal Loan is a type of loan that requires a valuable asset, such as a home, car, or deposit, to be pledged. This asset is called a collateral. If the borrower is unable to repay the Loan, under any circumstances, the lender can collect the collateral. For example, if you get a Car Loan, and can’t keep up with the payments, the lender can seize on your car. Thus, Secured Personal Loans are less risky for lenders because they have something to rely on if you can’t pay.

Understanding Secured Personal Loans

Pros:

  • Lower interest rates: Secured Personal Loans usually come with lower interest rates compared to Unsecured Personal Loans since lenders have collateral to reduce risk
  • Higher borrowing amounts: Borrowers with collateral may qualify for a higher Loan amount than they could with Unsecured Loans
  • Easier approval for borrowers new to credit: Secured Personal Loans may be easier to obtain for borrowers with less-than-perfect credit score since collateral reduces the lender’s risk

Cons:

  • Risk of asset loss: If the person who borrowed the money can’t pay it back, they might lose whatever they put up as security for the Loan
  • Longer approval process: Secured Personal Loans may have a more extended approval process due to collateral evaluation and verification
  • Limited use of funds: Secured Personal Loans are typically designated for specific purposes, such as purchasing a home or car, limiting their use

 

Confused About the Difference Between a Secured Personal Loan and an Unsecured Personal Loan?

Still, confused about the difference between a Secured Personal Loan and an Unsecured Personal Loan? Read along:

When choosing between a Secured and Unsecured Personal Loan, it is important to consider:

  • Your financial situation
  • What do you need to borrow for
  • How much risk are you willing to take

Unsecured Personal Loans are flexible and can be approved quickly, but they usually come with higher interest rates and strict rules for those who can obtain them. On the other hand, Secured Personal Loans have lower interest rates and allow you to borrow more, but there is a chance you could lose something valuable if you can’t pay it back.

In the end, the right choice depends on what is best for you. If you have a great credit score and need a Loan for something specific, an Unsecured Loan might be the best option. If you have assets you can put up as collateral and want lower rates, a Secured Loan could be the way to go. Now, download our TVS Credit Saathi App in just a few minutes with flexible Loan repayment options, and tenures, and enjoy a seamless, 100% paperless process.

FAQs

Is it better to get a Secured or Unsecured Personal Loan?

The choice between a Secured and Unsecured Personal Loan is based on your financial situation, borrowing needs, and risk capacity. Determine the factors such as interest rates, Loan amount, and eligibility criteria when deciding.

Why does an Unsecured Personal Loan have a higher interest rate?

Unsecured Personal Loans usually have higher interest rates compared to Secured Personal Loans because lenders see them as riskier. Since there is no collateral involved, lenders charge more interest, to cover the risk if the borrower is unable to repay the Loan amount.

 

 

Disclaimer : While we strive to update our information, products, and services, there may be occasional errors or delays. The content is for general reference, and the relevant product/service documents will take precedence in case of discrepancies. Please seek professional advice and review the relevant documents and terms before making decisions.

 

 

New Car vs Used Car Loans: Which is a better option?

Posted on by TVS Credit

Considering purchasing a car? The decision between going for a Used Car vs New Car Loan isn’t just about the car; it could shape or disrupt your financial journey.

Opting for a high-end pre-owned vehicle at a lower price will offer your a number of advantages. Not only does it provide access to the luxurious models at a fraction of the cost, but buying a used car also provides you with benefits like lower depreciation rates, reduced insurance premiums, and potentially lower registration fees.

Our expert and dedicated executives are here to assist you throughout your journey, right from selecting the right dealer, ensuring a seamless, and, to a satisfying purchasing experience. Opting to buy a used car not only helps you save money at the beginning but also helps you stay financially secure and worry-free in the long run.

Let us break down the basics to help you effectively compare your car loan options.

Why does it matter?

While your choice between buying a new car vs used car loan, holds the key to your financial peace, each option has its own perks, and understanding the differences will guide you to the perfect fit for your wallet and

Below is a comparison of used car loans vs new car loans for your understanding:

Feature New Car Loan Used Car Loan
Interest Rate Generally higher Often lower
Loan Duration Typically shorter (due to higher Loan amounts) May be longer (due to lower Loan amounts)
Down Payment Generally higher Generally lower
Risk Factor Higher (newer cars depreciate faster) Lower (used cars have already depreciated)

What are Used Car Loans?

A Used Car Loan allows you to purchase a pre-owned vehicle without draining your savings. It covers the cost of the car, letting you pay in monthly instalments spread across 1 to 5 years.

Key Features of a Used Car Loan:

When considering financing for a used car purchase, you need to understand the key features of a Used Car Loan. These Loans offer a range of advantageous features aimed at simplifying and making the purchase of a new vehicle more affordable. With a focus on flexibility, affordability, and peace of mind throughout the Loan process, Used Car Loans aim to make it easier for you to secure financing for your desired vehicle.

Let us now explore and understand some of the essential aspects of Used Car Loans that make them an attractive option for budget-conscious buyers like yourself.

  1. Higher Interest Rates: Due to depreciation, Used Car Loans often have slightly higher interest rates than new car loans. However, borrowers with good credit history can still avail Loans at competitive rates from us..
  2. Shorter Loan Terms: Used Car Loans usually come with shorter repayment periods, ranging from 1 to 5 years. We offer a tenure of up to 5 years. You should keep in mind that, opting for shorter terms can lead to reduced overall interest costs and faster vehicle ownership.
  3. Lower Loan Amounts: While some lenders might offer lesser funds for used cars due to their lower market value, we ensure secured funding of up to 95% of your used car’s value.

Also Read – 4-step guide to buy a used car in India

Pros of a Used Car Loan over New Car Loan:

  • Used Car Loans offer affordable options, reducing upfront expenses
  • Used cars experience less value decline compared to new ones, saving your money
  • Insuring a used car is cheaper, providing ongoing savings
  • Drive away right after loan approval, enjoying immediate use of the vehicle
  • There is no registration cost for a used car, no lifetime tax, only, the name transfer cost is applicable* (Revised)

Cons of a Used Car Loan:

  • Used Car Loans often have higher rates due to perceived risk
  • Repayment periods may be shorter, leading to higher monthly payments
  • While lesser depreciation is there than new cars, used cars still depreciate, impacting its resale value

What are New Car Loans?

If the idea of hitting the road in a gleaming new car gets you excited, a new car loan is the perfect move. The interest rates for these loans range from 9% p.a onwards. You can choose between fixed and floating interest rates. With a fixed rate, your monthly payments remain the same. But with a floating interest rate, your payments may change based on market trends.

Key features of a New Car Loan:

Let us explore the key aspects of New Car Loans:

  1. Competitive Interest Rates: New Car Loans typically have lower interest rates compared to Used Car Loans. This is because new cars have a higher resale value, reducing the lender’s risk. Despite used cars being cheaper, lower interest rates can result in lower overall interest costs and monthly payments.
  2. Extended Loan Durations: New Car Loans often come with extended repayment periods, typically spanning from 1 to 7 years, stretching out the repayment timeline helps distribute the car’s cost over a longer period, resulting in lower monthly payments. However, it is important to note that opting for longer loan terms inevitably leads to a higher overall interest payment.
  3. Higher Loan Amounts: New cars generally hold higher market value, allowing you to get a larger Loan amount. This aspect minimises the need for a higher down payment.

When considering any Loan, we should know its pros and cons:

Pros of a New Car Loan:

  • New vehicles typically come equipped with the latest safety features, ensuring better driver and passenger safety
  • Loan allows you to spread the cost of the car over time, making it more manageable to fit into your monthly budget.

New car might come with warranties that covers maintenance and repairs to an extent, reducing the chance of unexpected expenses

Cons of a New Car Loan:

  • Rapid depreciation leading to significant loss in resale value
  • Higher initial cost compared to used cars
  • Higher insurance premiums due to higher value

Answering the most important question: Should I buy a new or used car?

  1. Budget and Affordability: Determine your monthly payments by assessing your budget. Used cars often offer a more budget-friendly option, allowing you to align your financial goals and make an informed decision between a new car and an older model.
  2. Impact of Depreciation: Calculate the impact of depreciation on your investment. New cars undergo higher value decline in their early years, whereas used cars have already experienced a major part of this depreciation, potentially offering better value for your money over time.
  3. Vehicle Condition and Reliability: Thoroughly inspect the condition and maintenance history when buying a used car. This step ensures reliability and helps you assess potential maintenance costs, providing a clear picture of the vehicle’s overall value.
  4. Insurance and Warranty: Consider the financial aspects of ownership, including insurance premiums and warranty coverage. While new cars may come with higher insurance costs, they also offer comprehensive warranties. Used cars, on the other hand, might have lower insurance premiums, but you need to account for potential repair costs without extensive warranty coverage.
  5. Personal Preferences: Factor in your personal preferences when deciding between a new and used car. If you prioritise the latest features, technology, and aesthetics, a new car loan may be appealing. However, if affordability and value for money are crucial, a Used Car Loan presents a compelling alternative with a well-maintained pre-owned vehicle.

Also Read – Know everything about used car loans

New Car vs Used Car Loans: Finding the Best Option

When comparing New Car and Used Car Loans, the latter often proves to be the better choice. Old car loans offer affordability and value for money, with reduced upfront expenses and less depreciation compared to new vehicles. Additionally, insuring a used car is typically more economical, leading to ongoing savings. Therefore, opting for a Used Car Loan can provide significant financial benefits and practicality for your next car purchase.

Also Read – Buying a used car on a loan? Here are 6 things you must know

FAQs –

  1. Why is the used car loan interest rate high?

The interest rate for Used Car Loans tends to be higher due to the perceived risk associated with used vehicles, leading lenders to impose a slightly higher rates.

  1. Which car is the best, new or old?

When considering a new car, you get the latest technology, but they often depreciate rapidly in value. On the other hand, opting for a used car allows you to enjoy the amenities within a constrained budget. Ultimately, the decision depends on your personal preference and financial considerations.

  1. Can I get a Loan on the full value of a second-hand car?

Typically, lenders might request a down payment for Used Car Loans, even if it doesn’t cover the entire vehicle cost.

However, we provide financing of up to 100% of the car valuation, depending on factors like a good credit score, the vehicle’s condition, etc.

  1. How can I get a low-interest loan for a used car?

To secure a low-interest loan for a used car, maintain a good credit score, make a substantial down payment, opt for a shorter loan term, and look for the best offers! For personalised assistance, visit us for an expert guidance and tailored financing solutions.

 

Cost-Saving Tips for Buying Used Commercial Vehicles

Posted on by TVS Credit

Getting a commercial vehicle for a business involves careful consideration as it keeps the business up and running!

In this article, we will look at important factors when deciding on buying a pre-owned commercial vehicle.

Tips for purchasing used commercial vehicle:

When buying a used commercial vehicle,

Determine the requirements of your business:

Keep the type of cargo or passengers, travel distance, and your other unique needs in mind, to compare among your options.

Trust and transparency:

Purchase from sellers who are transparent about the truck’s history, condition, and paperwork.

Physical Condition of the truck:

Age, engine condition, body condition, and so on. Keep in mind, good maintenance history of the old vehicle means, a strong foundation for your new journey with the truck and also a good mileage.

Draw up a budget:

When buying a second-hand commercial vehicle a very important aspect is funds. Banks and NBFCs (Non-Banking Financial Companies) like ours, fund the purchase of pre-owned commercial vehicles. This includes covering the purchase costs, as well as additional costs like insurance, maintenance costs, fuel, and financing charges.

Research financing options:

Before getting a Used Commercial Vehicle Loan, lease, or financing it with any other means, you have to evaluate the interest rate, Loan conditions, and down payment costs.

Financing for a commercial vehicle:

It has become a common practise to use commercial vehicle finance when purchasing company-owned cars or larger commercial vehicles.

Broadly, there are three types of commercial vehicle finance:

  • Hire Purchase
  • Finances Lease
  • Contract Purchase

Hire purchase:

Under a hire purchase agreement, you pay a fixed rate of interest for the whole tenure and benefit from fixed monthly payments which helps keeping your budgeting simple.

You get to select the amount of deposit you wish to pay, typically a minimum of 5% up to 50% of the vehicle’s purchase pricing. The balance amount, together with the interest, is repaid over an agreed period. The terms can vary from 1 to any number of months, but 12 and 48 month agreements tends to be the most common.

VAT is paid initially and it can be claimed back on your first VAT return after purchase.

Finance Lease:

Under Finance Lease, the vehicle is hired for you by the finance company and remains in the ownership of the finance company throughout the term of the agreement. Monthly payments are fixed for the duration of the contract. Because you do not take ownership of the vehicle at the start of the contract, it has a very different treatment for tax purposes.

VAT is payable on the monthly rentals rather than in full at the beginning of the contract. Contract lengths tend to be either 12, 24, or 36 months. At the end of the agreement, the vehicle is owned by the finance company.

Contract hire:

Contract Hire, sometimes known as an Operating Lease, is much like commercial vehicle leasing.

Contract hire has more restrictions in the terms and conditions, than a finance lease, but can be used for a wider range of assets, including company owned vehicles. In this case, the vehicle is hired for an agreed period, usually between 12 and 60 months, and a rental is paid based on a pre-agreed mileage limit.

Our Used Commercial Vehicle Loans:

Balance Transfer (Secured Loan Offering):

You can save more by transferring your high-cost commercial vehicle loans to us. We provide affordable secured loans for your commercial vehicle with a number of benefits.

Personal Loans for existing customers:

Along with Used Commercial Vehicle Loans, you can also get the best offers on our Personal Loans. Avail up to Rs. 1.5 lakhs without any additional documentation and collaterals.

Key Features and Benefits of our Used Commercial Vehicle Loans:

  • Low interest rate
  • Loans for up to 15-year-old assets
  • Faster Turn Around Time (TAT) with minimum documentation
  • Quick Loan approval
  • Refinance for your existing vehicle

Buying a used truck can be a major investment for businesses in various industries, so selecting pre-owned commercial vehicles can offer substantial cost savings. Therefore, it is important to think about the key factors before making such a decision.

Quality check before buying an old commercial vehicle:

When you go about buying a used commercial vehicle, a very important thing to take note of is the reputation of the seller, whether they have credibility dealing with the sales of second-hand commercial vehicles, if they offer used vehicle warranties, and for what period. Without knowing the seller’s history, it is hard to determine the authenticity of your purchase, especially of an old commercial vehicle.

Vehicle History and Maintenance Records:

A very important factor in question is the vehicle’s history and maintenance records. Get an extensive vehicle history report from TVS Credit today, to check the previous ownership, accidents, repairs, and mileage. Check the maintenance records to determine if the truck has undergone regular servicing and if any major repairs have taken place.

Mechanical Condition and Inspection:

A mechanical inspection should be done to know the current condition of the used commercial vehicle. Take help of a qualified mechanic or technician to check the engine, transmission, suspension, brakes, electrical systems, and other vital components.

Usage and Mileage:

Make note of the vehicle’s usage and mileage to estimate its remaining lifespan and potential repair costs. Excessive wear and tear, high mileage, and demanding applications may indicate a higher risk of mechanical problems.

Fuel Efficiency:

For commercial vehicle operators, assess the fuel efficiency of the used truck by researching its make, model, and engine specifications. Consider factors such as aerodynamics, engine technology, and emissions standards to determine the truck’s potential fuel consumption. Opting for a more fuel-efficient truck can provide long-term savings and minimise environmental impact.

Insurance and Warranty:

Securing reliable insurance is as important as buying a used commercial vehicle. When buying a used truck, having the insurance papers in order is paramount as they travel all over the country and undergo many inspections as a result.

Verification of RTO-related details such as fitness certificate and tax payment information can be conducted via the Vahaan website with our executive’s assistance.

Also Read: How Used Commercial Vehicle Loan helps your business?

When you already found a good investment opportunity in terms of a Used Commercial Vehicle, financing it with us is quick and easy giving you a smooth journey towards acquiring it. Our products and services are available as per your needs!

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