SherArtha Loan Services
SherArtha facilitates the process of securing home and MSME loans from banks and NBFCs. We streamline the paperwork, ensuring a hassle-free experience, and strive to secure the best interest rates available in the financial market for you.
What is Loan
A loan represents borrowed credit from an NBFC or bank, with a commitment to repay within a predetermined period at a specified interest rate. The approval or denial of the loan application depends on the applicant’s creditworthiness. Secured loans typically carry a lower interest rate compared to unsecured loans.
Poins to be consider while taking loan
Principal: This is the original amount of money that is being borrowed.
Loan Term: Whithin certain number of years the borrower has to repay the loan.
Interest Rate: The interest rate, expressed as a percentage, is the amount charged by the lender to the borrower on the principal amount annually. For instance, a home loan may have an interest rate of 9%, while a personal loan could carry a rate of 12%.
Loan Payments: The borrower is required to make monthly or quarterly payments to the lender, in accordance with the agreed-upon terms, based on factors such as the loan amount, tenure, and interest rate.
Secured vs. Unsecured Loan
In a secured loan, the borrower provides an asset, such as a home, mortgage, car, or land, as collateral. In the event of default or non-repayment, the lender has the right to seize the asset. Conversely, an unsecured loan, like a credit card or personal loan, is issued without requiring collateral, relying on paperwork and creditworthiness for approval.
Secured Loan are as below
Home Loan: Within the realm of home-related loans, various categories exist, such as Land Purchase Loan, Home Construction Loan, Home Loan Balance Transfer, and Top-Up Loan for Home Renovation.
Loan against Property: In the current scenario, a commonly sought-after loan allows individuals to pledge residential, commercial, or industrial properties to access funds for their diverse requirements.
Loan against Insurance policy: Policyholders have the option to secure a loan against their endowment or money-back insurance policy, with the insurance company determining the surrender value at the time of loan issuance. It’s important to note that Unit Link Plans and other short-term policies do not permit loans against the insurance policy.
Loan against Mutual funds and Shares: Shareholders have the opportunity to obtain short-term loans against their mutual funds and shares. The application process involves approaching a broker, and in accordance with the broker’s policy, they typically issue loans ranging from 60% to 70% of the pledged shares’ value.
Unsecured Loan
Personal Loan and Business Loan
A Personal Loan is an unsecured form of credit extended based on an individual’s financial history or income tax returns (ITR). The loan amount can be utilized according to the borrower’s specific needs.
A Business Loan is granted based on the financial health of the business and fulfillment of necessary paperwork. Banks or NBFCs provide these loans to support business expansion or cover daily operational expenses.
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