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Many fintech, digital lenders turn extra cautious in economic slowdown Getting a personal loan online to tide over the current financial crisis could prove to be a tad difficult as many fintech digital lenders are turning extra cautious, especially towards new borrowers. Firms point out that while demand for personal loans has gone down in the current lockdown, the extended moratorium on term loans till August 31 is also making them more prudent in their policies. Demand-supply side issues According to Gaurav Chopra, Founder and CEO of IndiaLends and President, Digital Lending Association of India, there are issues on both demand and supply sides since the Covid-19 pandemic broke out. “Lenders are concerned about the ability of people to repay loans. A major part of lending used to happen through physical means for banks but that has dried up. The six-month moratorium has also put a question mark on how far borrowers will be able to repay. Also, many NBFCs have not been...

Covid-19 will lead to an increase in default of loans taken from banks and non-banking financial companies. Both corporate and individual defaults are expected to increase in the months to come. However, these bad loans will not start piling immediately. Mint explains why. Why are bad loans expected to go up? As Stephanie Kelton writes in The Deficit Myth, “Spending is the lifeblood of capitalism. Without it, businesses would have no customers, no sales revenue, and no profits to keep them afloat.” Consumer spending has collapsed over the last few months due to the pandemic. Though lately there have been some signs of revival, it will take a while before spending comes anywhere near the pre-covid level. This will mean that many businesses will start running out of cash pretty soon if they have not already. A company that starts running out of cash will not be in a position to repay its loans and, thus, will ultimately default. Where do individuals fit in this scenario? A ...

Since personal loans come with higher borrowing limits than credit cards and predictable repayment schedules, they are often a smart way to cover life’s big expenses. However, in particular, opting for a low-interest personal loan will give you access to the money you need at the lowest cost to you. To that end, below are five steps you can take to ensure you’re offered the lowest interest rate possible when you apply for a loan. Read them over to learn more about how to make your money work for you. Shop and compare offers​ Not every personal loan is created equal. In fact, every lender will likely offer you a unique interest rate and fee structure. That why it’s absolutely crucial to shop around for a loan before deciding ultimately deciding where to apply. Doing your homework can save you a lot of money in the long run. If you’re looking for an easy way to compare your available personal loan options, Credible can help you do so from the comfort of your own home. Whe...

More than half of all young adults who attend college in the United States take on at least some debt when completing their education, according to the Federal Reserve. Student loans are the most common loan type, owed by 93 percent of borrowers who have an outstanding loan balance. Student loans can be used for tuition, room and board and other costs of attending school — but they can become a burden to repay after graduation. If you’re considering borrowing for school, there are a few key factors to consider. You’ll always want to compare financial aid offers when selecting a college so you don’t need to take on more debt than necessary. You should also exhaust eligibility for federal loans before borrowing from any private lenders as federal loans offer better protections, more flexible repayment plans, and options for loan forgiveness that aren’t available with private student loans. Because federal aid often doesn’t cover the full cost of tuition, many borrowers need pri...