December 2018


5 Ways for Employee of Proprietorship Company to Get a Personal Loan

In the case of an emergency, the best way to arrange for money is via a Personal Loan that can be given over all the other alternative options, such as one’s own savings or taking help from acquaintances fails to meet the requirement.

It turns into a challenge to secure finance if someone works in a proprietor firm. The reason behind this is that the lender has to check the credibility of the company that the applicant works for. In the case of a proprietorship company, ownership is held by one person; hence it does involve risks such as sustainability and turnover. These risks always exist in the case of a proprietorship company. An example is that if anything unfortunate were to happen to the proprietor, then the entire business could come to a standstill and there would be uncertainty in the job of employees. As the company could shut down or all the workers may not have gotten their salary and so on. It is in such cases, that any employee who gets a Personal Loan, the repayment shall become difficult due to the lack of income.

In choosing a bank for your Personal Loan, you need to compare the rates offered by these banks. This is to guide you in making the best and right choice. Carry out a research on the Personal Loan interest rates of these banks and picks the one that suits you. Apart from the loan charges, you also need to consider the processing fees, insurance premium, prepayment, and foreclosure. All these should be done so as to be sure you are making the right decision about your Personal Loan application.

Banks and other financial institutions provide several Types of Personal loans, which you could avail by keeping securities as collateral with the lender. This article lists such types of different financing options.

5 Ways for Employee of Proprietorship Company to Get Personal Loan are given below:

  1. Against fixed deposit:In the eventuality that the borrower has a Fixed Deposit (FD) account with the bank, then they can get a Personal Loan against this FD. The Personal Loan that is sanctioned by the bank is also at a lower interest rate. Additionally, the loan that is sanctioned against a fixed deposit also requires minimal documentation. In this type of a Personal Loan, where the guarantee is an FD along with the bank itself, the bank shall not be checking the employer’s credibility. The above-mentioned type of loan is secured only because the FD is pledged with the bank. The applicant shall get a loan amount which is almost 80% – 90% of the FD amount.
  2. High income:There is a greater chance of approval for a Personal Loan for Proprietorship Company, if the applicant works in a proprietor run company but draws a more than sufficient salary per month. If their income is higher than the required value by the ender, their loan requests are approved quickly. Also, if the company in consideration has been into business for a long period of time and if it has been profitable as well, then too the chances of getting a Personal Loan increase considerably. The salary slip and the bank statement shall be required by the lender to help in proving the individual’s income.
  3. Against securities:Employees who hail from proprietorship firms could also get a Personal Loan by keeping gold, keeping mutual funds, keeping LIC policy, or by keeping ETF, and savings bonds as a security with the bank. With each financer, the calculation of the loan amount varies. While a few may have a cap on the amount there are others that may lend money in accordance with the market value of the pledged security.
  4. Private money lenders:This particular option is part of this list, and does find mention. However, it must be avoided as far as possible as the private money lenders take control of your assets which include all forms of property such as gold, land deeds or any other form of assets until the entire loan amount is repaid.

In addition to this, there have been cases of fraudulent activities undertaken by these lenders as well. Most of these cases involve the forging of documents in order to take control of your assets. Some of the other disadvantages of taking a Personal Loan from such private money lenders are that the interest rate which is charged by them is extremely high while the recovery process employed by them is very bad. These risks and downfalls also come with a few benefits which include no credit history check, flexi-repayment option, quick disbursal of money, and so on.

  1. Peer lenders:In the eventuality that all of the above solutions fail then an individual who works at a proprietorship company can apply for a Personal Loan at peer to peer online loan marketplaces. Here the applicant gets the option to choose the investors or in other words, basically money lenders and while the applicant makes a choice, he or she can bargain at the same time for best interest rates. Despite every P2P lending company having its own eligibility criteria, the applicant does end up having vast options to choose a lender from. This is also known as PTPL, as these marketplaces are a safe method of getting a Personal Loan and the charges are extremely less in comparison to the banks.

So as seen in the points that were discussed above, there were multiple options for an employee of a proprietor owned company to ensure that he or she Gets Personal Loan for Proprietorship Company. An important point for all those whose loan applications have been approved or those who are in the middle of repaying the loan must remember to payback all the EMIs on time and it is this which shall entirely help in getting a good CIBIL score. This means that there should be no bounced cheques, insufficient balance, or anything of the sort, as a good CIBIL score is extremely important.

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Work hard to find the proper trading strategy

When you remain conscious about the proper trading business, it will grow exponentially. This is also true for any other profession which relates to earning money. Even when you are doing a non-profitable work, this kind of tendency will help the traders to maintain the proper quality. Today we’re going to talk about that and try to make the best statement to the traders who do not have enough concentration on their trading business. In the following, we are going to talk about some necessary things. Traders will be able to ask themselves about this criteria. They are actually the terms necessary for a proper trading business. After we are done with this article, we can assure you that many traders will start improving their business properly. You have to follow this article’s topics first though. So, do that and make changes to your business accordingly.

Concentrate on money management

The trading profession is a business and like any other, this one does relate to money. So, we can say that the capital in the trading business is very much vulnerable and anyone can lose money in this business. There is no worry about it as the traders can easily alter the condition of their business by creating a proper trading design with right money management. The start will be with your account. Remember to keep the minimal investment into your trading account as possible. This is because that will be able to control your aggression with the trading approaches. If it possible for you, keep some backup for emergency purposes. That will decrease the capital in your business even more. Also, don’t ever forget about the proper trading risks smaller amounts.

Learn to use the demo accounts

Demo accounts are considered as blessings for the new UK traders. People don’t really understand why they should learn CFD trading by using the demo accounts. There is no reason to risk your real money when you can learn all the details of the market by using the virtual dollar. Consider it as your learning field. Try to develop a simple trading system based on support and resistance level. Unless you can make consistent profit in the demo accounts for three consecutive months, never trade with real money.

Focus on the proper trading process

From the proper risk management, we can move onto the proper trading process. It is also necessary for the traders to choose the right path for their trading business with the timeframe. Because it can help with making routines for the business. This one will make the traders regular in this business and keep them active. Then the proper trading method will also help with the relaxation into the trader’s mind. Yes, there is no more tension than the money issues for the trades. The problem of business for the traders will accelerate the trader’s headaches a lot. When traders are able to combine proper money management with the perfect trading frequency, their business will run almost automatically.

Learn about the proper trading edge

Like any other things for the traders, the trading edge is very much important. It controls all the plans and strategies about trading. When the traders will be able to manage their business with a profound one, the returns will be coming out good. But many traders in the beginning stage will have no proper trading edge to implement. There is no other way for them to make their own ones. This may make the traders a little bit worried about the business. But the work is actually very less stressful and easier than you may imagine. First, the traders will have to learn about market analysis and then they will be able to prepare their edges. For those who need practical experience in order to learn about the trading process, there is a demo trading feature in every platform available.

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