Money transfer service mango people

Loans

The Mango People – Loans for Every Need

What is a Loan ?

Money borrowed from one or more individual or from a financial institution for our personal needs or any other emergencies are called as loans. These are given for certain period with a charge of interest rate on the principle amount borrowed.

Loans can be further divided into :

  1. Secured loan
  2. Unsecured loan

What is a secured loan ?

Secured loan can be defined as a loan given against some asset as a security, the loan amount borrowed depends on the asset value which is given as security. Secured loan can be of various types like ,

  1. Mortgage loan
  2. Gold loan
  3. Car loan or motor loan
  4. Loan against property
  5. Loan against stock
  6. Loan against business
  7. Loan against shares and mutual funds
  8. Loan against bank deposits

What is a unsecured loan ?

Unsecured loan are the ones which are given on the basic of individual or entities credit score , the amount of loan which can be borrowed depends on the person / companies credit rating. some of the unsecured loans are

  1. Personal loan
  2. Educational loan
  3. Wedding loan
  4. Holiday Loan
  5. Home renovation loan
  6. Emergency loan
  7. Over draft loan

what are the important terms you should know before taking a loan?

Principle : This is the orginal amount of money borrowed by the borrower.

Loan term : The amount of time, the borrower take to repay the loan.

Rate of interest : % of charge given on the principle amount, this is calculated on yearly basis, the interest rate can be fixed or floating, depending on the loan conditions.

EMI/ loan repayment : Equated monthly installment, an amount which you have to repay to the loaner on monthly basis. This amount is consist of principle + interest amount.

How is my loan eligibility is calculated ?

Your loan eligibility is calculated on your income and debt ratio and your credit score . Most of the banks see if you have a steady flow of income from a reputed company or a business. Banks also verify your debt history, weather your are good at paying loans.

How is my interest rate calculated ?

Your loan interest in calculated on many factors

  1. Credit score
  2. Employment
  3. Loan amount
  4. Loan tenure
  5. Security
  6. Choice of your bank

How is my loan amount calculated ?

Your loan amount is calculated on your repaying capability. Banks make sure that the total EMI should not be more than 50% of your take home salary( for employed customer ) or profit and loss statement ( for business owners ).

What are the key documents required to apply for a loan ?

  1. Income proof ( Salary payment advice or income tax receipts )
  2. Address proof
  3. Identity proof ( Example , social security number )

What are the tips to get a easy loan ?

  1. Maintain a bank account with a proof of income.
  2. Have a good credit score by paying all your loans on proper time.
  3. Maintain all asset documents update.
  4. File your income tax returns.

By maintaining all these, you will be able to apply loans from a bank or financial institutions, which prevents you borrowing money from loan sharks , who charges exorbitant interest rates.