What are Short-Term Loans and Long-Term Loans?

A loan can help you address your immediate and long-term personal and business financial needs. Learning about different loan durations and how they affect financial planning can help you make the right decision. So, what are short-term loans and long-term loans?

Short-term and long-term loans are two borrowing options that differ mainly in repayment periods. Short-term loans are meant to be repaid relatively quickly, typically within a year or less. On the other hand, long-term loans have a more extended repayment period, usually beyond a year and sometimes extending to several years.

Short-term loans are temporary when you need money quickly to cover a small expense or an instant loan for a low salary. Long-term loans are commonly used for significant investments, like buying a house, starting a business, or funding a large project. They come with a much more extended repayment period.

The borrower is expected to repay the short-term loan, along with any interest or fees, in a short period, usually within a few months. Long-term loans are like a steady, long-haul commitment where you pay back a smaller portion over a much extended period.

How do Short-Term and Long-Term Loan Interest Rates Differ?

Be it any loan, the borrower has to pay interest, which is the extra amount of money paid back on top of the original loan amount. So, before selecting any loan type, it is essential to understand how do short-term and long-term loan interest rates differ and which is easier on the pockets.

Short-Term Loan Interest Rates: The interest rates for short-term loans are often higher. It's like paying a little extra fee for the convenience of getting money quickly and for a brief period.

Long-Term Loan Interest Rates: The interest rates for long-term loans are usually lower than short-term loans because you're borrowing a more significant amount and paying it back over a more extended period. It's a "discount" for committing to a more extended repayment plan.

What Are the Requirements for Short-Term and Long-Term Loans?

Short-term and long-term loans have different credit and documentation requirements. Assembling these documents in advance can help you quickly access a loan and have a seamless experience. Let’s learn about the documents you need for your short-term or long-term loan.

Short-Term Loans:

Valid ID: Lenders often ask for identification, like a driver's license, to verify your identity.

Income Proof: Lenders may request proof of a steady income to ensure you can repay the loan within the short term.

Bank Account: You should have an active bank account to deposit the loan amount and withdraw repayments.

Application Form: You must complete a simple form with your personal and financial information.

Age Requirement: You must be 18 to qualify for a short-term loan.

Credit Score: Some short-term loans may require a good credit score, while others may be accessible to individuals with lower credit scores.

Long-Term Loans:

Valid ID: You'll need identification, such as a driver's license, to confirm your identity.

Age Requirement: You must typically be 18 years old for long-term loans.

Credit Score: Long-term loans, especially for significant amounts like mortgages, require a good credit score.

Stable Income: Lenders want assurance that you have a steady income to make long-term payments. Employment history and pay receipts might be required.

Employment History: A steady employment history can strengthen your application, showing lenders that you have a reliable source of income.

Debt-to-Income Ratio: Lenders may assess your debt compared to your income to ensure you can manage additional debt.

Down Payment (for some loans): When it comes to big-ticket items like a home, you might need a down payment to secure a long-term loan.

You can now choose the correct loan type based on your financial needs. It is easy to avail 

of the same due to trustable platforms like mPokket. Apply for an instant loan online with the help of mPokket. Download the mPokket online loan app and register by following simple steps. You can instantly apply for short-term loans and use the funds for your financial needs.  

‍

What Is an Instant Personal Loan?

An instant personal loan is a type of unsecured loan that provides individuals with quick access to funds for various personal expenses. In today's fast-paced world, financial needs can arise suddenly, often requiring quick solutions. These loans have become a go-to option for many individuals facing unexpected expenses or seeking financial flexibility. An instant cash loan offers a convenient way to access funds without the lengthy processes associated with traditional loans.

The quick-processing loans are used to pay out for any personal requirements like medical bills, debt consolidation, home renovations or education expenses in the form of instant loans for students. The key advantage of these loans is speed. Applicants can often receive the requested funds within hours or a few business days. The application process is streamlined, with minimal documentation requirements and online applications.

However, the convenience of instant personal loans comes with a word of caution. These loans often come with higher interest rates than traditional ones, so it is crucial to use these loans responsibly and only for genuine emergencies or planned expenses.

How to Get an Instant Personal Loan?

Getting an instant personal loan is relatively straightforward due to the convenience of online lending platforms. The below process explains how to get an instant personal loan.

Start by researching different lenders to find the best interest rates and the terms that suit your needs. Verify the lender's eligibility criteria, such as age, income, credit score, and documentation requirements. Complete the online application form, providing the necessary personal and financial information. Upload required documents, which typically include ID proof, address proof, income proof, and bank statements. Once your application is submitted, the lender assesses your eligibility and creditworthiness, and if approved, you'll receive the funds swiftly.

Ensure you borrow responsibly, considering your repayment capacity to avoid financial challenges.

Pros and Cons of Instant Personal Loans

Instant personal loans offer both advantages and disadvantages to borrowers. Below are a few pros and cons of instant personal loans.

Pros:

Quick Access to Funds: One of the most essential benefits of instant personal loans is the rapid access to funds. These loans are designed for urgent financial needs, and borrowers can often receive the requested amount within hours or a few business days.

Convenience: The online application process for instant loans is streamlined and hassle-free, eliminating extensive paperwork for quick disbursal. This convenience makes instant personal loans an attractive option for those who require fast cash.

No Collateral Required: Instant personal loans are unsecured, which means borrowers are not required to provide collateral, such as their property or assets, to secure the loan, which reduces the risk of losing valuable assets in case of default.

Versatility: Borrowers can use the funds for various personal purposes, including medical emergencies, debt consolidation, home repairs, education expenses, or any unexpected financial shortfall.

Cons:

Higher Interest Rates: Instant short-term loans often come with a higher rate of interest as compared to traditional loans, increasing the overall cost of borrowing. Easy access to funds may tempt borrowers to accumulate debt without careful planning. Borrowers need to be cautious about the interest they have to pay.

Shorter Repayment Period: These loans typically have shorter repayment terms, leading to higher monthly payments, which may strain borrowers' finances who struggle with repayment schedules.

Limited Loan Amounts: Due to the quick approval process, loan amounts may be smaller than what borrowers require for more considerable expenses, limiting their utility.

Risk of Accumulating Debt: The ease of access to funds can tempt borrowers to accumulate debt without careful financial planning. Irresponsible borrowing can lead to a cycle of debt that becomes challenging to break.

Instant personal loans can be a valuable financial tool, providing rapid access to funds when needed. Still, borrowers must exercise caution, budget wisely, and choose reputable lenders to ensure the loans remain a helpful resource without becoming a financial burden.

mPokket instant loan app can be your saviour in offering quick credit with just a tap! All you need to do is download the mPokket online loan app and register by uploading a few documents. mPokket’s instant loan for students and professionals will be credited straight to your bank account within 10 minutes.

‍

A credit score is an important factor that lenders consider before giving you personal loans or credit cards.

‍

But what is a credit score? A credit score is a report card showing your financial behaviour. The three-digit number of your credit score reflects your money-borrowing and repaying performance.

‍

Lenders use it to decide whether to give you a loan or credit card and what interest rate to offer. If you want to increase your credit score, a personal loan can be a smart move. Let us find out how and why using a personal loan can help build credit.

Why using a Personal Loan can help Build Credit?

Personal loans can be an important tool to improve your credit score. Why?

‍

Firstly, because these loans are structured and have fixed repayment terms, you will have a set number of monthly payments. Consistently making on-time payments demonstrates your responsible financial behaviour to credit bureaus, positively impacting your credit score.

‍

Another aspect that makes personal loans attractive is it improves your credit mix, i.e. the different types of credit accounts you have. A credit mix shows you can manage personal loans and credit cards responsibly. It's one of the factors that affect your credit score, so having a good mix can help your creditworthiness.

How to Build Credit using a Personal Loan?

Now that we have established why personal loans are a good choice for building credit let us dive further into how to build credit using a personal loan.

‍

Check your credit report: Start by checking your credit report and score. This initial step will help you understand where you stand and identify any errors holding your score back.

‍

Get a Personal Loan: Borrow money from a bank or a lender to build credit.

‍

Make Payments On Time: Pay that money back in smaller amounts over time. It's super important to always pay on time.

‍

Watch Your Credit Score Grow: As you keep making on-time payments, you're building a good credit history. The more points (or good history) you have, the better your credit score becomes.

‍

Always borrow what you need and can afford to pay back, and never miss a payment. Building credit with a personal loan is a slow and steady process, but it can open doors to more financial opportunities in the future.

Alternative Ways to Build Credit

While personal loans are a valuable tool for improving your credit score, there are other options also. If you are looking for alternative ways to build credit, here are a few points to consider.

‍

Use Credit Responsibly: Get a credit card or loan. Make small purchases and pay them off on time.

‍

Pay Bills on Time: Always pay bills, like rent and utilities, on schedule.

‍

Credit Builder Loan: Consider a small loan to help you build credit.

‍

Authorised User: You can benefit from other users' credit scores if they add you as an authorised user on their credit card.

‍

Monitor Your Credit: Monitor your credit report to spot and fix errors.

‍

Low Balances: Keep credit card balances low relative to your credit limit.

‍

Credit loan app and instant loans are designed for those with limited credit histories and offer easy loans. While they might have higher interest rates, these options can help you build credit if managed responsibly.

‍

Improving your credit score with an instant loan online is a viable and effective strategy. The structured nature of personal loans, the credit mix they offer, and their potential to save you money on high-interest debt make them a strong choice.

‍

However, it is essential to approach personal loans responsibly, make timely payments, and understand the terms to reap the full benefits. If personal loans aren't the right fit, consider alternative methods to build or rebuild your credit.

‍

Whether you choose personal loans or other options, building and maintaining good credit through mPokket is a wise financial move that can open doors to better borrowing opportunities in the future.

Unexpected financial challenges can arise anytime, from sudden medical bills to urgent home repairs. When facing these emergencies, having access to fast and reliable funds is crucial. Even for those who diligently put aside money into a contingency fund, sometimes it isn’t enough.

That’s where an emergency personal loan comes into play. Before diving deep into the discussion, let us first find out what an emergency loan is. These specially designed instruments can aid when you need funds on short notice.

Read on to learn more about what to consider before taking out an emergency loan and how to apply for one.

What is an Emergency Loan?

Emergency loan is a term that describes short-term loans typically used for emergencies, making the funds available to you very quickly. These are instant cash provided to you when there is not enough in your emergency savings.

It is a type of unsecured personal loan that can fund unexpected situations. It is usually disbursed on the same day or within a few days after approval. You can apply for emergency loans online by completing a form and uploading relevant documents.

Personal and instant cash loans fall in the category of emergency loans. As with any loan, it is essential to understand the details, terms, and conditions before borrowing.

What to Consider Before taking out an Emergency Loan?

A loan can impact many things, so it should not be taken lightly. Making an informed decision before applying for an instant cash loan is essential. Here is a compiled list of things to consider before applying for a personal loan.

Assess the Emergency: Understanding the specifics of your situation will help you make informed decisions regarding the loan amount, terms, and repayment.

Explore Options: An instant personal loan can be used in times of emergency, and funds can be used for any purpose you wish.

Check Credit Score: You must check your credit score before applying for a loan. A good credit score will mean a low interest rate on your loan.

Gather Necessary Documentation: Standard documents include proof of identity, proof of income, bank statements, and employment verification.

Apply for the Loan: Provide accurate information about your financial situation, like your income, expenses, and the reason for applying for the loan.

Compare Offers: Pay attention to interest rates, loan terms, duration, monthly payment amounts, and fees (e.g., processing fees, penalties, etc.)

Read Agreement: Review the loan agreement carefully, including all terms and conditions. It’s crucial to be fully aware of the terms to avoid any surprises down the road.

Receive the Funds: Your bank account will disburse the loan once the application is accepted.

Create a Repayment Plan: Establish a budget that includes your monthly loan payments and ensure you can meet them consistently.

How to Apply for an Emergency Loan?

Applying for an emergency loan is simple and can help you get quick financial assistance. 

Compare Lenders: Compare interest rates, repayment time, funding time, features, and credit score requirements of various lenders.

Lender’s Reputation: Deal with trustworthy and reputable lenders by reading customer reviews and checking lenders’ ratings.

Get Prequalified: Prequalify to avoid a hard credit pull on a loan application.

Fill out the application: Provide basic information about your income and employment details.

Always choose reputable lenders and be cautious of potential scams. Ask questions before proceeding if you need clarification on any terms or conditions. Emergency loans can be a helpful resource in challenging times, so make informed decisions to manage your finances effectively. Every individual has a unique financial situation, so the terms of each emergency loan will also be different. It would be best if you researched to find the best loan for your situation.

To get a loan for an emergency or any easy cash loan, you can consider pocket for all your instant loan requirement. We offer cash, easy, quick, and short-term loans. Download the app and register by uploading the required documents. You can borrow instant personal loans based on your credit score and repayment history. We credit the amount straight to your bank or UPI account!

‍

When it comes to managing your finances and covering unexpected expenses, two standard options are personal loans and credit cards. A personal loan is a fund you can borrow from banks to use for a variety of purposes. Whereas credit cards are like your financial backup, always ready for action. They offer a revolving line of credit, letting you swipe for purchases and pay later.

‍

However, with excellent spending power comes great responsibility. Understanding the key differences between personal loans and credit cards can help you make a well-researched decision. Let us know the world of personal loans and credit cards and explore the best choice for your needs.

Key Differences Between Personal Loans and Credit Cards

Personal loans and credit cards differ in several significant ways. A personal loan is a lump sum of money from a bank, credit union, or an online lender, while a credit card provides a revolving credit line that lets you make purchases up to a certain amount.

‍

Interest Rates: Personal loans usually offer lower interest rates than most credit cards. With a fixed interest rate, your monthly payments are predictable, making it easier to budget for loan repayment. On the other hand, credit cards often have higher variable interest rates, which can increase your debt quickly if you carry a balance.

‍

Loan Term: Personal loans come with fixed loan terms, ranging from one to seven years. This structure allows you to plan your repayment over a specific period. Credit cards have no fixed term but require minimum monthly payments, making it easy to carry a balance for an extended period.

‍

Credit Limit: Credit cards are set based on your creditworthiness and the issuer's decision. You can continue using your card up to this limit if you make timely payments. Personal loans, however, provide you with a one-time lump sum, and you can only borrow more if you apply for another loan.

Which Is Best? Personal Loan vs Credit Card

Whether you should take a personal loan or a credit card can be decided based on your financial needs and goals. Do personal loans affect your credit score? Yes, they do. Let us understand how these personal loans and credit cards work better first.

‍

Personal Loan: A personal loan is an excellent choice when you have a specific financial goal, such as consolidating high-interest debt, funding a home improvement project, or covering medical expenses. The fixed interest rate and predictable monthly payments make it easier to budget your expenses, and you will have a clear repayment timeline. Personal loans can be beneficial for situations that require a more considerable amount of money, such as taking a loan for emergencies in Delhi.

‍

Credit Card: Credit cards are more suitable for day-to-day expenses, providing flexibility and convenience. They are also valuable for building or rebuilding your credit history. Using a credit card smartly and responsibly can help boost your credit score. However, paying your bills timely is crucial to avoid high-interest debt. Credit cards are a great choice when you need a credit line for smaller purchases and everyday spending, making them an excellent credit line app.

‍

So, before pondering on the question, which is best? Personal Loan vs. Credit Card: evaluate your financial situation, considering factors like loan amount, repayment terms, and spending habits, to determine which option aligns best with your specific financial goals.

Do Personal Loans Affect Your Credit Score?

If you are wondering if personal loans affect your credit score, then yes, personal loans can impact your credit score. When lenders review the credit before approving your loan, the score may decrease for some time. However, your score can improve if you make timely payments on your loan. This is because responsible loan management demonstrates your ability to handle debt effectively.

‍

Personal loans can positively influence your credit score, a significant part of your credit mix. Credit scoring models appreciate a diverse credit portfolio, including instalment loans (like personal loans) and revolving credit (hello, credit cards) as a sign of responsible financial management.

On the other hand, credit cards play their part in the credit score symphony. The utilisation rate, or the ratio of your credit card balances to the credit limit, comes into the spotlight here, influencing your credit score. Ultimately, the decision between a personal loan and a credit card hinges on your financial objectives. If navigating the credit card realm differs from your current goal, mPokket steps in with swift cash loans to bolster your credit profile. It's an optimal choice if a credit card is outside your immediate plans. Whether seeking a personal loan in Delhi or a loan for emergency and handling an unexpected financial curveball, understanding the distinctions between personal loans and credit cards empowers you to make informed financial decisions.

Personal loans can be a financial lifeline when you need money for various reasons. You can use a personal loan for almost anything, like paying for a wedding, consolidating debt, or covering medical bills. They are typically unsecured, meaning you do not have to offer any assets, like your car or home, as collateral.

‍

However, like any financial tool, personal loans come with their own set of pros and cons. Let us break down these aspects by understanding: What are Personal Loans, and how do they work?

‍

Once you are well acquainted with the details of these financial instruments, you will be able to make informed decisions that align with your financial goals and circumstances.

What are Personal Loans and How Do They Work?

Personal loans are financial assistance a bank or any money lending organisation offers. You pay it back in monthly instalments, including interest. It's a way to get cash when needed, but understand the terms before borrowing. Here's how they work:

‍

A personal loan works by borrowing money from a bank or lender, which you repay over time with interest. When you apply for a loan, the lender reviews your application and checks your credit score. If approved, you receive a lump sum.

‍

You need to pay back the loan in fixed monthly instalments. These instalments will include both the amount you borrowed and the interest, which is like a fee for borrowing the money. The interest rate determines how much extra you pay for the loan. 

‍

When you repay the loan on time, it can improve your credit score. However, missing the payments can also damage your credit score. Some lenders might charge fees, like an origination fee when you first get the loan or late payment fees if you miss payments.

Advantages of Personal Loans

A Personal Loan is a great boon when you need money without hassle. It is convenient because you can repay it over pocket-friendly instalments and get a quick disbursal with little or no paperwork.

‍

Some key advantages of Personal Loans are a quick approval process with minimum documentation, no need for any collateral and its fixed interest rate irrespective of the duration. These loans can be used for any purpose and have pocket-friendly repayment options. 

Weighing the Pros and Cons of Personal Loans

As with any loan, you should know the advantages and disadvantages. So, weighing the pros and cons of Personal Loans is essential to staying secure. Here’s what you need to know before signing on the dotted line.

Pros of Personal Loans

‍

Offers Versatility: Personal loans can be used for virtually anything, from consolidating debt and starting a small business to funding a wedding.

‍

Build Credit: Paying back on time every month will positively impact your credit score.

‍

No Collateral Needed: Most personal loans are unsecured and will not require collateral, making them a favourable alternative to forms of secured financing.

‍

Pay Over Time: Personal loan interest rates remain fixed irrespective of repayment tenure. Your only responsibility is to pay the loan on time.

‍

Quick Decisions: Unsecured personal loans are easy for application and approval.

‍

Manageable Payments: Payment terms for personal loans are usually flexible. You can choose a tenure that allows you to optimise your monthly instalments according to your needs.

Cons of Personal Loans

While personal loans offer many advantages over other types of borrowing, it is also essential to understand the drawbacks of a personal loan.

‍

Interest Charges: Depending on your credit score and the lender, your interest rate could be anywhere from 6% to 36%.

‍

Potential Fee: Some lenders may charge origination fees, late payment fees or prepayment penalties if you don’t pay on time.

‍

Unnecessary Debt: Taking out a personal loan can lead to a more significant amount of debt. 

‍

Higher Payments: Personal loans can have a higher fixed monthly payment than credit cards.

‍

Financial Risks: Missing a loan instalment or making late payments can damage your credit score in several ways.

‍

Personal loans are helpful for many purposes, allowing you to pay off significant expenses over time. However, you want to be conscientious when considering a personal loan to avoid risking your long-term financial well-being.

You can quickly obtain an instant cash loan or personal loan in Delhi or anywhere in India from mPokket. Download the mPokket app, register by uploading a few documents, and borrow an instant short-term loan of up to Rs. 50,000! mPokket instant loans are credited straight to your bank account within 10 minutes. With mPokket, we offer cash, easy, quick, and short-term loans.

Obtaining loans wasn't always as easy as it is today. In the olden days, obtaining a loan was quite an arduous process and people were often left with no option to turn to shady loan sharks to get some much-needed credit.

But that's in the past now. Getting a loan today is much more streamlined and simpler, and there are competitive plans that make you spoilt for choice when you want to borrow money.

There are times when an unexpected expense might crop up and we don't have the money to cover it. In those cases, an instant loan is a huge help. You can apply for them online and are processed and disbursed very quickly with minimal hassle.

We have already looked at the different types of instant loans and here, we'll be looking at features, benefits and important points to note about them.

Benefits of instant loans

Instant Disbursal: Today's instant loan disbursals are so quick that the money is almost in your bank by the time you can yell, “Show me the money!” When you need funding immediately, applying for an instant personal loan will get the funds disbursed to your account within minutes.

Paperless process: When applying for a personal loan, you need to submit the necessary paperwork before your loan request is processed. However, with an instant personal loan online, all the paperwork is virtual, and uploaded online. And once you're a pre-approved customer, that step too is done away with.

Collateral, or lack of it: Being an unsecured personal loan, there's no need to submit any collateral when you apply for an instant personal loan.

Flexible tenures: Most personal loan services these days offer flexible tenures for repayment, letting you can choose a tenure that suits you best. Of course, it'll still be subject to the lender's maximum loan repayment term.

Low processing time: When it comes to instant personal loans, the processing time is considerably lower than for regular loans.

Flexible amount: You can go for any loan amount of your choosing, provided it's within the minimum and maximum amount specified by the lender.

Attractive interest rates: With a good credit score, chances are that you'll get the loan at an highly affordable interest rate, thus lowering the overall cost of the loan.

‘What is the best instant loan?' - How to compare

It's important that you compare the loans offered by different lenders. Here are a some things you should consider when comparing instant personal loans:

Interest rate: The interest rate can affect the total cost of the loan. So, make sure you check the interest rate before applying.

Default penalty: Should you not repay the EMIs as per schedule, you may be charged with a penalty. It's important that you compare these default charges by different lenders.

Flexibile repayment: Go for an instant personal loan that offers repayment flexibility and allows you to make pre-payments or part-payment.

Processing fee: If you are charged a high processing fee, you will need to pay more for your loan.

Minimum and maximum amounts: Be sure to take the minimum and maximum loan amount offered into consideration. It shouldn't be less than what you need, after all.

Whether you're a student or salaried professional, when it comes to instant loans, you cannot go wrong Thanks to the mPokket instant loan app, a dose of quick credit is just a tap away! You can easily obtain an instant student loan or salaried loan from mPokket. Simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and instant loans for salaried are both credited straight to your bank account within 10 minutes.with mPokket. We offer instant cash loan, quick loan, and short term loans online.

When you take a loan, do you automatically assume that the bank which is offering the lowest interest rate is the best choice? But the fact is, there are other charges or fees which you need to pay too, and after factoring them in your loan cost, you get the annual percentage rate, or APR.

Here, we'll be going into some detail about APR:

What is APR?

The actual yearly cost of your loan for any given tenure is your APR. It totals your interest fees along with any other charges levied by the lender, such as processing fees, insurance costs, among other things.

APR is calculated in percentage and it may be the same as or higher than the interest rate charged on loan.

How to Calculate APR?

Here's the formula that you can use as an APR calculator:

APR= [{(Fees + Interest)/ Principal}/ n]*365*100

The n represents the tenure of the loan in the number of days.

What are the benefits of APR?

• Since APR is a sum total of various fees that are associated with the loan you have taken, it is an important tool which will give you clarity about your actual loan cost.
• With the help of the annual percentage rate, you can make out which is the actual cheap loan provider.
• APR is a standard calculation which is applicable for various types of bank charges. Therefore, you can apply it for any bank loan offer.

What's the importance of calculating APR when applying for personal loan?

Naturally, you desire a low interest rate when you apply for a personal loan. Consequently, you'll be most drawn to the banks which offer you the lowest rate. However, as we've now learnt, you'll only know of the actual lending cost after you're done calculating the APR.

That's why you need to be aware of the many small but significant charges levied by the banks on their personal loan and only then come to a decision. Also, note that annual percentage rate doesn't work for floating interest rate. It's only meant for fixed interest loans such as a personal loan.

How to decrease APR of ongoing loan?

• Depending on whether you manage to acquire goodwill by paying your instalments on time, the bank might consider your request to reduce the annual percentage rate.
• Make a habit of paying bills on time and never miss your EMIs and credit card dues. You will soon get a good credit score, which will help you out as banks often make considerations for borrowers who have healthy credit scores.
• Your remaining loan can be transferred to another bank which offers a lower interest rate. As always, be sure to calculate APR beforehand.
• Take another loan from a different bank at a lower APR. You can repay your existing loan in full with that amount.

Always remember that the banks will not bother to inform you about APR and it's something you need to figure out on your own. This is commonplace in most financial institutes, unfortunately. Fortunately, with increased awareness thanks to the internet, more and more people are developing awareness about the importance of APR.

At mPokket, our mission is to use world class technology, transparent communication and quick decision-making to enable today's youth to attain financial independence. So, if your plans are ever put on hold in need of a loan, a dose of quick credit is just a tap away, thanks to the mPokket instant loan app!

You can easily obtain an instant student loan or salaried loan from mPokket. Simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and instant loans for salaried are both credited straight to your bank account within 10 minutes.

You might also like: Tips to improve your loan approval chances

Loan repayment is the act of paying back previously borrowed money, such as personal loans, home loans or education loans. This repayment includes both the principle and interest. Not repaying for long period will result in bad debt and being called a delinquent by the authorities.

Sometimes, being able to change the mode of repayment of a loan could prove convenient toward repaying loans. To that end, we look at some ways to change the mode of repayment for a loan:

What are the Different Modes of Loan Repayment

Standing Instruction: In this mode, you give the lender (where you are already a customer with a savings account ) permission to access your account to withdraw the EMI owed to them by you automatically.

This method involves no hassle or procedure each month. You can also specify on which date the lender can withdraw the EMI. You need to keep your account funded to make sure the EMI payment is not missed when the bank tries to withdraw the EMI. This way you will not miss any payments.

Post Dated Cheques: This involves giving post dated cheques equalling the loan tenure to the lender, which they will submit to the bank on the date specified on the cheque. This is not available in all areas. It is also like SI but a more traditional way where the cheque has to be physically sent to the borrower's bank instead of the funds withdrawn electronically.

Electronic Clearing Service: ECS is based on the same principle as SI where you'll give the lender bank access to take the EMI from your account. The lender bank will then give the signed consent form and cancelled cheques to your banker, who will approve the transaction of EMI from your account. ECS can be used if you don't have an account with your lender bank.

How to Change Your Mode of Loan Repayment?

You have to begin by reaching out to the nearest bank branch and filling up a request form. Here's the process to be followed for SI, ECS and cheques:

Standing Instructions

1. Request a form for swapping repayment instructions.
2. Three security cheques favouring ‘Lender Bank with Loan Account No.' The cheques should be undated and filled with a value equal to the sum of three EMIs.
3. In case a bearer submits the request on your behalf, a bearer authorization along with KYC documents of the bearer, such as ID and signature proof (PAN Card, Aadhar Card, Driving License or Passport Copy) will also need to be provided.

Electronic Clearing Service

1. Request form for swap of repayment instructions.
2. Security cheques favouring ‘Lender Bank with Loan Account No.'
3. ECS mandate duly filled and verified by your banker.
4. Swap Charges of Rs.500/- favouring ‘Lender Bank with Loan Account No.'
5. In case a bearer submits the request on your behalf, a bearer authorization along with KYC documents (self-attested copy and original for validation) of the bearer such as ID and signature proof (PAN Card, Aadhar Card, Driving License or Passport Copy) will also need to be provided.

Post Dated Cheques

(Only allowed if the location is non-ECS)

1. Request form for swap of repayment instructions
2. Revised post dated cheques in favour of ‘Lender Bank with Loan Account No.' for the balance EMIs.
3. Swap charges of Rs. 500/- favouring ‘Lender Bank with Loan Account No.
4. In case a bearer submits the request on your behalf, a bearer authorization along with KYC documents (self-attested copy and original for validation) of the bearer, such as ID and signature proof (PAN Card, Aadhar Card, Driving License or Passport Copy) will also need to be provided.

When you take loans using the mPokket instant loan app, be it an education loan, a service loan, or a salary advance loan, timely repayments improve your CIBIL score, which will help you be eligible for larger loans and even improve your employment prospects.

That's why, If you are seeking an instant short term loan or salaried loan and wondering where to turn for some quick credit, simply Simply download the mPokket online loan app, register by uploading a handful of documents, and post the online loan approval, borrow instant personal loans of up to Rs. 50,000. mPokket instant loans for students online and instant loans for salaried are both credited straight to your bank account.

You might also like: What you need to know about income sources exempt from income tax

With stock trading so accessible and so with so many different options among stocks to buy today, nearly everyone from college students to working professionals are trying their hand at the share market. And why not? If you have a pulse of the Indian stock market, know what you're doing and make wise, well-informed decisions, you could stand to benefit.

However, just as properly timed decisions to buy or sell stocks will pay off for you, ill-timed decisions could end up costing you.

With that in mind, here are six things to remember before selling your stocks:

Lower Trading Volume

When you find that a stock is unexpectedly trading at a lower volume than before, it might be a sign of trouble. Stock liquidity - a measure of how quickly a stock can be bought or sold – is a crucial factor if you're wanting to sell stocks that are not performing well. If you're unable to sell your stock for a lack of buyers, you should have to hold on to it and hope the company can get through the rough patch it's going through.

Reduced Dividends

If you see companies cutting back on dividends, or even getting rid of them entirely, it's time to take a hard look into their internal workings. You should be checking the monthly and quarterly performance of the companies that issue your stocks.

Pay extra close attention if a company cuts dividends as it could hint at a more serious event at play. Perhaps, it's a sign of cashflow trouble or other changes or issues that could affect the stock value.

Financial Ratios

It's great if one of your stocks had a good return, but always stay alert and look for any signs that it might start to decline. There are many such signs and they can often be found in the form of financial ratios.

The health of a company which issues the stock can be measured through a fundamental analysis, which is a close audit of financial statements. Those who know the market well use financial ratios to obtain insights and predict how a company will fare in a given timeframe.

However, since companies keep their financial details closely guarded, the figures used to compose the ratios can be difficult to obtain.

Target Prices

Traders set a floor on a share price so that should it drop below a certain level, they sell it to maintain a profit. You can also set an upper limit that would trigger your sale.

This is because you might be afraid that the stock will have a hard time supporting a market price above a certain level, and that any bad tidings could send the share price into a nose dive. Setting limits on when to sell and when to buy ahead of time can help control your apprehension.

Over time, this practice could end up benefiting you, with higher profits, as you'll be less likely to sell too soon or give in to panic-selling.

Selling Strategies

Make a habit of consider the bigger picture when you consider selling your stocks. If you have a feel for the market, about things which could affect stock value, you'll have a better grasp of the need to take timely action.

Hold on to some of your holdings

Should you have good profit in a stock, consider selling only a portion of your shares. Reinvest the profits into other stocks that are doing well, and let the others be as they are. This way, you'll spread the risk over a wider range of assets while still profiting. If the stocks you keep begin to plummet, you can always sell them and hopefully come away with some profit.

As stated earlier in our ‘6 things to keep in mind for achieving financial freedom' blog, wise share market investment is one of the keys to financial freedom, and it's never to early to start. When you need to buy some stocks, you can always turn to the mPokket instant loan app to get some quick credit.

If you are seeking an instant cash loan or quick student loans and wondering where to turn, simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket loans for students and loans for salaried are both credited straight to your bank account within 10 minutes.

Also read: What are the different types of Instant Loans?

2020 saw a virus bring the whole world to a standstill. And just when it seemed like the worst was over, the second wave of the COVID-19 pandemic came out of nowhere and wreaked havoc across the nation.

Nearly four lakh people died and many of them were their family's breadwinners. Reportedly, half of those who died were aged below 60 years.

It all goes to underscore the importance of having a sound financial back-up plan in the form of a life insurance policy to protect your family financially in your absence.

With so many families left to fend for themselves owing to the loss of the sole income-earning member, a life insurance policy in such situations can come to the rescue as it can help the family to overcome financial difficulties, if not the emotional setback.

Why is life insurance important?

Life Insurance is a financial cover for a contingency linked with human life, such as death. While a value cannot be ascribed to a human life, a monetary sum could be determined based on the loss of income in future years. Since there is loss of income to the household when human life is lost, the payout from a life insurance plan can provide comfort in such times by compensating for the lost income.

Life insurance is a means towards ensuring that your immediate family has some financial support to fall back on in the event of your untimely demise. It could be to repay debt like a home loan or achieve financial goals like children's higher education or old-age care for parents or spouse.

How much insurance cover do I need?

There's no perfect formula. Consider your present lifestyle and future needs while arriving at a figure. In case the sum assured is not carefully evaluated based on the future needs of the family, the insurance proceeds may exhaust sooner than you know.

The concept of life insurance is that if something unfortunate happens to the policy holder, his/her family can continue leading a comfortable life. That is possible only if the payout under the insurance policy is enough to compensate for the lost income due to the death of the policyholder for a reasonable number of years.

Which insurance policy is right for me?

There are various types of life insurance plans available in the market but most popular among them are Term Insurance Plans and Unit Linked Insurance Plans (ULIPs).

Term Life Insurance

In a term life insurance plan, the policyholder pays premium to the insurance company to get coverage against death. In case of the policyholder's demise within the policy period, the insurance company pays the sum assured to the nominees.

Term insurance is one of the preferred life insurance product as it provides a significantly large cover at affordable premiums.

Unit Linked Insurance Plans

ULIP or Unit Linked Insurance Plan is a type of life insurance policy, which offers you the benefits of market-linked wealth creation and life insurance coverage. They are amongst one of the preferred choices for securing one's long-term life goals.

As a policyholder, you have the opportunity to invest in a number of market-linked ULIP funds depending on their risk profile and investment horizon. At the same time, you get to enjoy the benefits of life insurance cover. Through the investment component, you can invest in equity, debt funds or a combination of both.

Both term insurance and ULIP plans come with tax benefits at the time of investment as well as at the time of maturity, as per the Income Tax Act 1961, subject to specified conditions.

Insurance is, by and large, a useful tool to have at your disposal. Life throws unexpected curve balls at us when we least expect, and it's good to have the means to tackle those situations in some capacity, at least.

Similarly, at mPokket, we realize that despite your prudent financial planning, from time to time, you might face a financial emergency of some form. During those trying times, you'll need a trusted friend by your side, someone who will not just provide moral support but will help you out financially as well.

mPokket is one of the best instant loan apps in India when you need some quick credit. You can easily obtain an instant student loan or salaried loan. Simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and loans for salaried are both credited straight to your bank account within 10 minutes.

You might also like: 5 things to keep in mind for achieving financial freedom

As a student who's on the verge of entering the working life or even a seasoned young professional, it's never too early or too late to learn how to recover from financial setbacks, such as poor credit scores.

We realize it might be difficult to maintain a good credit score during your college life. But it's worth trying for, since it can open up a lot of opportunities as you lay down the foundations for your career and future.

After all, a credit score could be the deciding factor behind buying a car, home or even paying rent. With more money-lending services being made available to students, it's led to increased cognizance about CIBIL scores among students.

If you wish to start fixing your credit score, here are some suggestions:

Revolving debt over instalment debt

Put simply, revolving debt is what you incur when you're in the habit of using a credit card. Prioritize paying off your credit card bills over say, student loan instalments or rent bills, as the interest on your credit card bill can pile up much faster. To maintain a good credit score, your credit card utilization should be 30 percent (or lower) of your total limit as well.

So if you ever find yourself spending over this limit, make sure to cut down on your expenses until you've reached the 30 percent mark. However, sometimes your essential expenses may incur more than this limit which brings us to our next point.

Go for your own credit card

As long as you're a beneficiary of an account belonging to a family member with a good credit score, it shouldn't be too difficult to obtain a credit card. Once you do, however, make sure your credit card is not abused always exercise caution when using it.

Try for a higher credit limit

Being eligible for a higher credit limit depends on whether you pay your credit card bills regularly. As time passes on, your credit score will improve as long as you've been making your payments duly as well as if you've been maintaining your credit card spending under the limit of 30 percent.

If you apply for a higher credit limit on your credit card, your score is likely to improve as it will be easier to stick to the 30 percent rule. That said, if you're already struggling to make your existing credit card payments, a larger credit limit may not be the best choice.

Pay rent with your credit card

The more positive payments you have on your credit card, the better your credit score will get. Paying off your rent with your credit card will add a positive payment on your credit history as long as you duly pay it off yourself when the amount is reflected on your credit card bill. This amount should be paid off before the billing period of your credit card though as rent paid with your credit card can accrue interest as well which will reflect poorly on your credit score. We should also mention that this option may not always be available as some landlords may not be comfortable with accepting credit cards as a mode of payment.

Review your credit score regularly

As per the law, every individual is allowed to get one free credit report from one of the three major credit companies every year. Make it a habit to check your credit report at every opportunity as errors on these documents are more common than you think. Most errors that have been reported to these credit bureaus are usually pertaining to incorrect information such as a misspelt name, wrong birth date or sometimes even being accidentally declared as deceased. Imagine trying to apply for a loan if your credit file says that you're dead; that's just a headache no one wants to deal with.

At mPokket, we exist to provide financial independence to youth and empower them with the means to be economically self-reliant.

So of you are seeking some quick credit by way of an instant student loan or salaried loan and wondering where to turn, simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket loans for working students and loans for salaried are credited straight to your bank account within 10 minutes.

You might also like: 5 common credit card mistakes and how to avoid them