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Financial Products You Can Sell Through Andromeda Loans

financial products

Andromeda Loans, as the name suggests, is primarily a loan distribution company. Thus, various types of loans, including personal loans, home loans, loans against property, business loans and so on, are the financial products you can sell the most as our partner. However, we also dabble in insurance and credit cards rather successfully, what with being spread across 100+ cities, and having 1000+ branches and 3000+ employees. We also have an excellent distribution network of over 25,000 partners, which you can join by signing up here!

In this blog ost, we are going to look at each of these financial products in more detail.

The Types Of Loans You Can Sell With Andromeda Explained

Availing a loan is a great way to help your customers finance their expensive necessities, like starting their new business, buying a home, paying for higher education and so on. It can even help one buy a car, or plan an expensive vacation. You just have to know which loans will help them achieve their goals, since there are different types of loans that each have their own purposes. These loan types are explained below:

1. Personal Loans

Personal loans are usually given as fixed lump-sums with fixed annual interest rates, and fixed monthly payments. They are often unsecured loans, which means only borrowers with a good credit score and history can avail loans at reasonable interest rates. However, some lenders do offer secured personal loans, in which one must put up collateral to avail the loan.

Personal loans can be used for nearly anything, from financing that vacation, to buying a new TV set, to paying credit card and other bills. They come with tenures of anywhere between two to five years and the loan amount is usually limited to a few hundred thousands at most.

To apply for a personal loan, applicants need ID proof, proof of income, and possibly proof of assets worth at least the loan amount, especially if applying for a secured personal loan.

2. Business Loans

Business loans are loans that let entrepreneurs gain capital to either start a new business or expand an existing one. The funds can be used for anything related to business, from buying equipment, to purchasing inventory, to paying employee salaries.

Such loans often require collateralusually the business owner’s personal assetsand are granted only after a formal business plan has been submitted for review, particularly if borrowers are using the money to start a new business. If they already have a business, the duration of its existence, their business credit score, cash flow, working capital, and debt-to-equity ratio will all be considered before the business loan application is processed and approved.

3. Loans Against Property

Loans against property or LAPs are secured loans that are obtained by providing commercial or residential property as collateral. With LAPs, applicants can receive upto 70% of the value of the property as their loan amount, once documentation is approved. Moreover, one will probably even be able to repay it rather leisurely, since LAPs tend to have long repayment tenures. Thus, essentially, LAPs are a popular type of mortgage loan available in India.

As with all loans, the borrower’s credit history and score will determine their interest rate. Therefore, the higher the credit score, the lower the interest rate. However, since this is a secured loan, one can still avail of it even with a low credit score. Your customer will just have a higher interest rate on the loan since they would be considered a high-risk borrower with a low credit score.

Additionally, since LAPs usually offer high loan amounts with long tenures, they are often taken out for larger expenses like home renovations, business expansions, or investments. They can also be used to consolidate one’s debt into a single loan, which will improve financial stability.

4. Home Loans

Home loans or mortgages are essentially a type of loan used to buy or maintain a home, land, or other pieces of real estate, typically secured against the property itself. The application and disbursement of home loans is a rather long and time-consuming process, though things have become easier with the internet. Apart from that, borrowers have to meet several requirements, including a minimum credit score, proper documentation, a good employment record, and so on, to even apply for a home loan.

Home loans tend to have longer tenures and can be repaid in installments divided between principal and interest. Additionally, home loans come in various types as well, including but not limited to conventional home loans, fixed-rate loans, adjustable-rate mortgages, and jumbo loans. To choose the best option for your customer, you will need to educate them about the various types of home loans..

Other Financial Products You Can Sell Through Andromeda

Andromeda Loans also offers credit cards and various types of insurance among our financial products list. Let’s look at these two in detail:

Credit Cards

Credit cards allow applicants to access a line of credit that is set up by the issuer of the card. Thus, using a credit card is like taking a small personal loan for whatever it is that they are purchasing using the credit card. One will then have to repay that loan in full, either at the end of the month without interest or over a longer period with interest. Remember, the interest rates on credit cards can be quite high, especially if one continuously defaults on payments.

On the other hand, credit cards often come with great rewards that help applicants earn back some of the money spent if they meet certain conditions. They are also a great way to build credit through good financial habits and improve one’s credit score if necessary.

Insurance

Insurance is essentially a contract, usually in the form of a policy, that allows an individual or entity to pay an insurance company in exchange for financial protection or reimbursement of losses that may occur due to the covered event. There are various types of insurance policies that each cover a different event.

For example there is general insurance, which helps cover more than one asset. Therefore, a single policy could cover your customer’s home, car, and more. Life insurance, meanwhile, is coverage against the policyholder’s death. Thus, it provides their family and dependents income in the case of death. Health insurance, on the other hand, is meant to cover the expenses to improve one’s health, usually hospital expenses.

To conclude, Andromeda Loans is primarily a loan distribution company, and offers many different types of loans among our financial products. However, we also offer insurance and credit cards from our lending partners, who include many major players in the finance world. Look them up here!