The world we live in is growing constantly, and with it, the need for financial institutions to evolve along with it. The EMI revolution has been gaining momentum in the recent past as it provides easy ways to finance big-ticket purchases. Thanks to the EMI model, people who cannot afford to pay the full cost upfront can buy big-ticket items with ease, and pay for them over time. EMI, or Equated Monthly Installments, is a method of repaying loans that allows you to break down the amount borrowed into smaller, more manageable payments that you make every month over the course of several months, or even years.
The EMI model has been a game-changer in the consumer finance industry, particularly the loan market in India. As a result, more financial institutions have been making EMI’s available to their customers, especially Bajaj Finance. Bajaj Finance, one of the leading non-banking financial companies in India, offers a range of loans, including consumer loans. A consumer loan is a loan taken out for the purchase of a consumer good, such as an appliance, a car, or a house.
However, when it comes to loans, one of the most important factors is credit rating. Credit rating is a measure of how creditworthy an individual or a company is. It is used by lenders to determine the risk of default by a borrower. There are different types of credit ratings that lenders use, and each rating system evaluates the creditworthiness of a borrower in a slightly different way. These credit rating systems are evaluated on the borrower's income, credit history, and a few other factors.
The most widely recognized types of credit rating are Equifax, TransUnion, and Experian. In India, credit rating agencies like CIBIL, Equifax, and Experian are used to evaluate the creditworthiness of borrowers. Financial institutions use the credit score of an individual to determine the interest rates applicable to them, the amount of credit that can be provided to them, and their eligibility for loans.
If you’re looking to take out a consumer loan, having a good credit rating is critical. Your credit rating determines the interest rates you qualify for, as well as the amount you can borrow and how quickly it can be disbursed. So, if you have a low credit score, you might not be eligible for the loan you want, or you might have to pay higher interest rates.
In the past, taking out a loan in India was a cumbersome process. Borrowers needed to fill out lengthy forms, and getting approval from lenders was often challenging. But with EMI’s gaining popularity, the process has become more streamlined. Now, borrowers can get pre-approved loans and even apply for one online. Plus, Bajaj’s online platform has made it even easier to apply and get the money disbursed quickly.
With the EMI revolution, more people in India, even those without high credit scores, can enjoy financial inclusion and access to funding, making it easier to make significant purchases without sacrificing their financial stability. You can also make the most of the options available online and apply for loans through hassle-free online methods, making it timely and efficient.
In conclusion, EMI’s have undoubtedly revolutionized the way people buy and pay for things, especially big-ticket purchases. This rapidly-evolving finance tool is making it easier for consumers to break down the cost of a purchase into installments, allowing them to finance things that were otherwise unaffordable. And with financial institutions like Bajaj making it easier to access loans, the EMI revolution is only going to become more popular, giving even more people in India the means to realize their aspirations and dreams. By keeping your credit score in good shape and choosing the right type of loan, this financing solution will open doors to a more secure financial future, offering safe and convenient ways to finance new ventures, meet growing needs and resolve any financial troubles.