Compare the applicable interest rate against the advertised interest rate and other loan conditions with MyLoanCare
Update: March 25, 2021 10:51 AM STI
Gurgaon (Haryana) [India], March 25 (ANI / BusinessWire India): Everyone has seen the end-of-season “Up to 50% off” banners displayed outside malls. When a person walks in, they realize that most of the items are discounted, but not as high as the one shown. Invariably, the ones they really like are either cheap or no discounts.
When it comes to retail loans, lenders advertise loans based on ârates startingâ with an attractive rate with an asterisk âTerms and conditions applyâ. Some key questions the customer faces:
* What rate will apply to me?
* Am I eligible for the loan?
* What are the other terms and conditions?
* Will I be able to prepay or transfer the loan easily?
This is exactly where Loancare comes in “> MyLoanCare.in. Active portfolio management is a concept most Indian investors can identify with, but the same cannot be said for borrowers when it comes to management. of loans.
Today, EMIs account for one-third to two-thirds of the average household’s monthly expenses, making âactive loan managementâ an absolute must, especially when there are hundreds of âadvertised loan offersâ. “. Loan management begins actively before taking out a loan and continues even after taking out a loan. The process begins with researching and comparing loan offers from several banks on interest rates and all loan terms and conditions.
âApplicableâ Vs âAnnouncedâ Rate
Loancare “> MyLoanCare helps compare loans on the basis of the” applicable interest rate “as opposed to the advertised rate.
This online marketplace constantly searches for loan offers from all the major lenders in the market and feeds the detailed rates and terms into their database behind their algorithms. When a person checks a loan offer with them, the organization tells the borrower the âapplicableâ rate, which is the rate at which the borrower is likely to be eligible for the loan instead of the âadvertisedâ rate. “.
To put this in perspective, a bank advertising home loans starting at 6.65% may also charge rates of up to 11%. Likewise, a personal loan provider offering the lowest rate of 10.50 percent may also charge 24 percent on the loan depending on various factors such as client’s income, age, loan amount, loan term, credit rating, existing obligations, employer category, job stability and many more of these factors. In the case of a home loan, factors such as type of property, transaction, stage of construction, size, and other real estate variables also determine interest rates.
Advertisements and news portals, or even bank websites, rarely offer such detailed rate charts or comparisons instead of focusing only on the lowest offered rate.
What are the eligibility criteria?
Each lender has their own eligibility criteria and specifies several parameters including demographics, credit profile, income, and ownership (in the case of home loans). Even if a lender is in fact offering a loan at the advertised rate, what assurance is there that as a borrower they are actually eligible for a loan from that bank or lender? He / she may not be eligible for a loan from the lender who offers the lowest rate but end up applying for it. Eventually, the application is rejected, leaving them little time to apply elsewhere.
Here again, Loancare “> MyLoanCare’s systems have captured the science of whether a person meets one or more lender eligibility criteria. So when they share their profile with Loancare”> MyLoanCare.in, the system fails Not only gives them options, it filters out which ones they are unlikely to be eligible for and tells them the odds of their loan approval. This helps the borrower to decide which lender to apply with.
“CGU Apply” decoding
In addition, the selection of the loan should be based on the interest rate and fees such as processing fees, lock-in period before prepayment of a loan, foreclosure fees and other associated fees. Clients have to make several decisions such as fixed rate vs variable rate, PLR vs RLLR, EMI vs option of repayment in fine, benefit or not from an overdraft facility, optimal loan duration, have a co-applicant or not. The list of decision points is long, which can be confusing for a common borrower. No bank can ever give the borrower the backing needed to help them make the most favorable loan decision for obvious business reasons. This is where a market like Loancare “> MyLoanCare.in offers immense value to potential and existing borrowers.
Keep “Exit Option” open
Contrary to popular belief, loan management does not end with obtaining a loan by a borrower, but continues to be valid as a concept for existing borrowers. There is no reason for a borrower to be stuck with their existing loan when there are enough choices available to optimize their interest charges over the life of the loan. Borrowers should keep their option to exit the loan open, either by prepayment or by transferring the loan to a new lender to obtain a low rate loan or a supplemental loan.
Therefore, they have to take into account additional parameters when taking out a loan, which includes the lock-up period and the prepayment charge. Loancare “> MyLoanCare adapts borrowers to active loan management by including these parameters in comparison tools, automatically calculating savings potential and actively contacting existing borrowers with various possible savings opportunities at different stages.
The market as a concept is increasingly used by consumers for every item they buy, use or consume in everyday life, whether it is clothing, cell phones, cars or goods and even investments. With a similar concept and a significant value proposition in terms of dealing with a borrower’s different issues, the markets are also making rapid inroads into the lending segment and becoming advisers of choice for potential borrowers.
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