Here are some stories of our customers with insights to help you make better financial decisions,
Karthik, the customer with a recent job and living alone!
When you work in the financial industry, everyday is an eye opener and a learning experience. You would think that having a salary upwards of 1lakh/month will be enough to get you a personal loan but this is not always the case. Banks/NBFCs have different criteria apart from salary and this was demonstrated in a recent case we encountered. This case study is for educational purposes only so we will not reveal the names of the exact person involved…so lets call him just Mister Karthik!!!
So Karthik was looking out for a loan to pay off some credit card debts he had incurred while buying new furniture and fittings which he had bought for his new house. Home renovation loans are quite prevalent in India today which is a better alternative to buying expensive items on a card. Anyway Karthik now wanted to avoid paying high credit card interest and convert it into a personal loan. We managed to put Karthik in touch with one of our partners which is an NBFC. We wanted to get him a Tata Capital personal loan as Karthik also wanted a part-payment facility which was available with Tata. We were confident of this going smoothly as Karthik earned over 1 lakh a month as net take home salary.
The unexpected issue we encountered was something neither us nor Karthik could anticipate. Karthik had his passport as his address proof which he had taken through a tatkal route many years ago. Since it was taken this way, and at that point in time, it did not resemble a normal passport even though it was stamped for travel to a foreign country. This necessitated the credit dept to ask for more documents including proof of work ex for 5 years which the customer did not have. The entire thing went into a tailspin and a case which was clean became complicated.
Cashkumar got all stakeholders on a single line and asked for the problem to be solved. The solution which was arrived at was to let Karthik produce which ever documents possible that were available to prove his work experience. Moreover a letter was to be produced from the HR of his current company that they had vetted him and his profile. Finally we validated that the travel document was genuine and had been stamped by a valid govt authority. This done, finally everything was found to be in place and then the loan was disbursed. Thankfully everything could be arranged to get Karthik a loan who left a happy customer pleased with Tata Capital for finding a solution.
Raghu, the highly leveraged customer
Raghu (name changed) was working with IBM for over 4 years. He had taken a loan back in 2014 where the interest rate for the personal loan was 13%. Due to a medical emergency in the family, he was looking for an additional personal loan at a better interest rate and also an option to move the existing loan to the new bank. Raghu tried in a couple of places for this loan but was declined due to the current high obligation; no bank was willing to give him a larger loan amount. A small loan would not help him meet the medical need at hand. This is when Raghu approached us for help.
We mapped his eligibility to a couple of banks where he had not approached before and spoke to the respective bank teams about the case. ICICI Bank was offering a personal loan at an interest rate of 10.99% in case of a balance transfer from another bank. However, ICICI too had a constraint on the loan amount that they would disburse. This is when we got into the fray and spoke to the credit and the sales team to understand alternatives to help Raghu. We proposed to get his wife in as a co-applicant but the challenge there was that she was already running a home loan as a co-applicant with her mother. The bank was not comfortable with this. We took this up to understand the repayment schedule and found that her mother was paying the full EMI for the home loan. This is when we approached ICICI Bank again asking them to reconsider the case since the entire home loan EMI was paid by Raghu’s mother-in-law. ICICI bank reconsidered the case and gave an approval for 18 lakhs including a balance transfer of the previous loan. This is how Raghu got a personal loan at a great interest rate in quick time.
Vinay, the guy who got the lowest interest rates for his personal loan
Have you ever wondered if the loan you get is at the best interest rate? This is what most of our customers wonder when they talk to us. So how do we ensure the best interest rates? Pretty simple, we work with most of the lending institutions to ensure that a customer gets the best interest rate for every personal loan that we disburse. We also ensure some aggressive interest rates for personal loans taken via the p2p lending network. So let us highlight a case of a customer who had an offer at 14% from a Bank and approached us post that. Let us call this customer Vinay. He had got a call from an offline bank agent who had proposed a loan from Bank A. The agent got a higher commission payout from Bank A and hence was pushing Vinay to take a loan from there. In fact, the agent insisted on the documents being processed immediately as the offer was for a limited time. The customer succumbed to the same and gave the documents. Fortunately, the customer got this hunch to check if there were better interest rates for his personal loan requirement.
That is when he applied on Cashkumar where the team got in touch with him in less than a few minutes of applying online. In course of the discussion, the team understood that Vinay had already applied to Bank A but could get a far better deal from HDFC bank as there was an offer on personal loan interest rates for the customer. We quickly got the HDFC team to pick up the documents and process the same. The loan was disbursed in 4 days of applying. The irony was the customer saved 1.5% interest and also got a loan much quicker than Bank A. While Bank A is a very reputed bank and offers good personal loan interest rates, in Vinay’s case HDFC bank was the clear winner. So please do always validate the best interest rates for personal loans with our team.
Suven, the customer who asked "Kithna deti hai!"
Do you guys remember that advertisement for a car which goes "Kithna deti hai" where an engineer is highlighting the amazing features of a space shuttle but the customer wants to know much mileage does the rocket give indicating the pragmatism of all Indians. This is the case in most of our purchases including a case where one wants to take a personal loan where interest rates are for us most important. This made it very evident that one inherent need of every individual is to get the maximum from each transaction. Let us tell you a case of Suven (name changed) who was working at CTS and had a need for a personal loan. He had approached the bank where he had a salary account and got an offer of a personal loan at an interest of 12.5%. He had decided to go ahead with this bank but this is when one of his friend's told Suven to check Cashkumar. On applying with us, he got an offer of 12.5% itself from Standard Chartered Bank. He did not seem keen on taking this as he already was getting the same interest rate for his personal loan. We had a quick chat with Standard Chartered bank and got the processing fee down to 0.5% and also gave him a zero pre-closure option after 12 months. The customer was very happy with this and grabbed this offer. In this case, the customer did not look at the fine print where he had the best personal loan interest rate offer but the processing fee and pre-closure options were not exciting. We are glad we could help Suven get a great deal.