Getting a personal loan can be quick, but the process varies depending on the lender. Before you apply, be sure that your credit is in good standing and consider your other options.
Make sure that the monthly payment fits into your budget and plan for the future. Also, check if your lender reports to credit bureaus.
How it works
When you apply for a personal loan, the lender will ask about your income and credit history. They will also want to know how much you’re looking to borrow and what you’re going to use the money for. You will also need to provide personal information, such as your address and driver’s license number. Once you’ve filled out the application, the lender will usually give you a loan decision within a day or two. If you’re approved for the loan, the lender will deposit the funds into your bank account. Different lenders have different funding times, but most will get the lump sum to you within a few days.
Once you’ve got the money, you’ll need to pay back your loan EMIs. You can do this through a debit card, a Freecharge wallet, or via net banking. You can also set up autopay to make sure you never miss a payment. This will help keep your credit score healthy, and it may even qualify you for a lower interest rate.
SK Finance Ltd is an Indian non-banking financial company headquartered in Mumbai. It provides financing for new and used cars, personal loans, and small business loans. It is a medium-layer NBFC that primarily operates in rural and semi-urban areas. The company has over 28 years of experience in the used vehicle financing sector. It has a good understanding of its target market and strong brand recognition in the region.
The company has a good track record with controlled asset quality metrics. Its credit costs have been elevated due to the ongoing pandemic, but these have been adequately mitigated by higher provisioning. The company has also written back provisions in fiscal 2020 and 2021, which has helped it to maintain its credit cost profile.
CRISIL’s ratings are based on an evaluation of the rated entity’s past performance, business model, and prospects. This analysis is performed by qualified Ratings Teams comprising experienced analysts. The ratings are independent and do not represent the views of the entities’ Board of Directors or the Management Committee.
Benefits
SK Finance offers a range of personal loan options that can help you meet your financial goals. Its quick and easy application process means that you can get the funds you need quickly, and you can tailor your repayment plan to fit your budget. The company also offers competitive interest rates so that you can save money in the long run.
Personal loans are a great way to cover unexpected expenses or make significant purchases. However, it would be best if you always considered the risks before applying for a personal loan. For example, a personal loan can put a hard inquiry on your credit report and may impact your credit score. It is also essential to use the loan responsibly and pay on time. If you have poor credit, you can still qualify for a personal loan by getting a co-signer or by taking out a secured loan.
The robust business model and track record of the promoter and management team should stand SK Finance in good stead as it scales up and diversifies its portfolio at both the product and geographic levels. CRISIL has also taken into account the company’s consistent capitalization metrics, healthy internal accruals, and stable operating profit margins.
The company also maintains a robust liquidity position and has a strong funding profile with a high proportion of deposits and liquid assets. Moreover, it has an excellent track record of servicing its loan book, which reflects the company’s focus on customer service and risk-based solid underwriting practices.
Lastly, the company has an experienced management team that is well-versed in the automobile finance sector. This is expected to support the growth of its portfolio in both the used and new car segments in the near future.
In addition to offering a wide variety of vehicles, SK Finance also provides commercial vehicle loans to help businesses grow or expand. These loans are typically offered at low-interest rates and can be paid off in a few years. They are an excellent option for small businesses that need extra capital.
The company also has a mobile application that allows you to apply for a personal loan and check your status. You can also check your EMI, view and print documents, and submit scanned copies of necessary documentation. The app also allows you to give or deny consent for data collection, restrict disclosure to third parties, revoke previously granted permission, and delete personal data.
Fees
SK Finance personal loan fees vary by lender and are based on the borrower’s creditworthiness, as well as the amount of money borrowed. In addition to a credit score, lenders also consider income, job stability, and more to determine eligibility. These fees can add up to the total cost of a loan. To minimize the impact of these fees, make sure you shop around for the best personal loan rates and terms.
While these fees are necessary, they have less of an impact on the overall borrower experience than other factors, such as customer support and ethics. Consequently, we give these factors a lower weighting when evaluating loans. Moreover, we recommend that you read the terms and conditions carefully before applying for a loan. It’s essential to understand all the charges associated with your loan.
SK Finance is an NBFC with a vintage of 28 years in used vehicle financing, which gives it in-depth knowledge of its target segment. In addition, the company has diversified its borrowing portfolio and raised funds at competitive rates. SK’s capitalization metrics are vital, with an adjusted gearing ratio of 4.3 times and healthy internal accruals. The company has also put robust underwriting practices and risk management in place for its two business segments – Vehicle finance and MSME finance. In the case of vehicle finance, there are three layers of assessment for its asset-backed financing, while in the MSME sector, it assesses applications on a risk-based framework. This has helped SK maintain controlled asset quality metrics and supported the earnings profile.
Interest rates
The interest rate associated with a personal loan is one of the most important factors to consider when shopping for the best deal. It is based on your credit profile and the lender’s risk assessment, which may be determined by past lending behavior and current market conditions. It is also influenced by the Federal Reserve’s decisions on interest rates, which directly affect the prime rate that lenders use to determine their rates.
There are many different types of personal loans available, each with its interest rate and repayment terms. You can find the best rate by shopping around and comparing offers from several lenders. Some lenders allow you to estimate your rates without submitting a complete application, which is called prequalification. This process typically uses a soft inquiry, meaning it won’t affect your credit score.
It would help if you also chose a repayment term that balances affordable payments with low-interest costs. Most lenders offer repayment terms of two to seven years. If you choose a longer term, your monthly payments will be lower, but your total interest costs will be higher. You can also reduce your costs by choosing a secured personal loan, which requires collateral like a savings account or certificate of deposit.
A personal loan can help you finance a dream vacation, pay for an expensive medical procedure, or make home improvements. Regardless of your needs, it’s essential to manage the debt responsibly so that you can build a strong credit history and save money in the long run.
SK Finance Limited is a mid-layer NBFC that empowers dreams with vehicle loans and fuels ambitions with small business loans. The company operates in semi-urban and rural areas of India and has an AUM of over Rs. 8500 crore.
The company’s credit profile is supported by stable profitability metrics and sound capitalization metrics, with gearing under four times. In addition, the company has a solid track record of managing its asset quality and providing adequate coverage to its loan book.
SK Finance offers competitive loan products and transparent processes that make it easy for customers to get approved for the amount they need. The company also provides a variety of convenient payment options, including MobiKwik Zip Pay Later. This service is free to use and allows you to pay your EMIs through mobile apps.