Loans for Telugu People in the U.S.
Despite America’s economy being one of the largest in the world, it can be tough to get a loan as an immigrant. Chances are you’ve heard rumors and you’re probably wondering if there are loans for Telugu people. The good news is, there are!
Below we take a look at a few tips on how to get a loan for Telugu people.
Who are Telugu People?
Telugu people are from India. Predominantly from the Indian states of Andhra Pradesh, Yanam and Telangana, Telugu is the third most spoken language in India.
Why is it Hard for Immigrants to Get Loans in the U.S.?
It’s no secret that getting a loan as an immigrant can be challenging. Here are a few reasons why this is the case.
Little or No Credit History
As you are not a U.S. resident, a lot of your financial dealings and credit history is probably in India. Most U.S. lenders don’t accept this information and this information also doesn’t form part of your credit score in the U.S.
This means many immigrants have a credit score that is far below the average general accepted credit score. Your need for a personal loan can also be so pressing, you might not have time to first build your credit score in the U.S. before you apply.
Lenders are not going to approve loans to people who might leave a country soon. Lenders find fault with a visa that expires before the payback period of a loan is completed. It makes sense to lenders that this poses a great risk seeing that there is the possibility that a visa may not be extended.
Can Telugu People in the U.S. Get Personal Loans?
Despite the challenges you might face as an immigrant, the good news is there are loans for Telugu people available. Most lenders will first consider your residency status before granting you a personal loan. Many lenders will also only lend money to U.S. citizens or permanent residents.
Fortunately, there are some lenders who will approve loans for Telugu people if a resident or citizen cosigner signs with you. If you don’t have a cosigner, it’s not the end of the world. There are lenders who don’t require a cosigner and who grant loans to immigrants and visa holders. Take a look below for more info.
5 Tips for Getting a Personal Loan as a Telugu Person
1. Check Your Credit
Most lenders will first consider your credit score and credit history to determine whether they will grant you a loan and what rate you’ll get. Some lenders also require a minimum credit score for borrowers to qualify. You should, therefore, know your credit score before you apply. This will help you know which loans to apply for and also what terms you can expect to be offered.
You might even want to take some time to build your credit score before applying for a loan. You can get one free credit report with each of the main credit bureaus (Experian, Equifax, Transunion). It might also be worth it to go through your report to check for any possible errors, as it could have a negative impact on your credit score. If there are any errors, make sure you dispute it and have it corrected!
2. Look at Different Lenders
Don’t just settle for the first lender you find. Do your research about the different lenders and the options they offer. Then, compare the different rates and terms they offer you specifically. Most lenders allow you to do a soft credit pull or pre-approval which means they can see the rate and terms they can offer you before doing a formal application.
This will enable you to properly compare the different lenders and offers so you can get the best possible rate and a loan that suits your needs.
3. Choose Your Lender Wisely
Once you’ve had the opportunity to compare lenders, you will be able to make an informed decision. It is important to choose a lender whose offer suits your personal circumstances. Don’t apply for a loan that requires a higher income or credit score than what you have. Apply for a lender whose flexibility and terms suit where you are at.
4. Understand Debt-to-Income Ratio
In most cases, your income plays a role in your loan application. This is because your income will determine your ability to repay your loan. Lenders, therefore, are more willing to offer you a loan if your income is high in relation to the loan amount you need.
To improve your debt to income ratio, make sure to declare your income before tax. Also, include all your other forms of income to boost your annual income. It is, however, important to be honest about your income. If you’re not, it may lead to criminal charges.
5. Don’t Borrow More than You Need
Apply for the loan you need, not the loan you want. Your loan should support your financial health. If you take out a too big a loan, you might find yourself in a sticky situation very soon. You can always return to the lender to apply for a loan increase if you need it.
Top 3 Lenders for Personal Loans for Telugu People
Stilt has a one of kind offer to customers like immigrants, non-residents and other visa-holders. Stilt requires no minimum credit score, social security number, green card or even a cosigner for a successful loan application. The requirements are simply a US bank account, proof of employment and proof of one of the required visas. Stilt has a wide variety of offers available.
- Loan terms of 6 months up to 2 years
- No credit score requirement
- No prepayment penalties, zero origination fees, and zero administration fees
- No need for a green card or social security number
- Cosigners are not required
LendingClub has quite a few requirements. They require a minimum credit history spanning 3 years with a minimum credit score of 600. On the upside, they have options available to change payment due and a 15 day grace period for late payments.
- Loan term of 3 to 5 years
- Loan amounts of $1,000 to $40,000
- Minimum credit score requirement of 600
- You can expect origination fees of up to 6%
- No prepayment penalties
- Late payment penalty of the greater of $15 or 5% of the late payment amount (but a grace period of 15 days is allowed)
- Cosigners are allowed
Wells Fargo has strict requirements in place. They have an interesting history of dealing with credit for immigrants. Many of their loans offers like interest rates and origination fees will be determined by your unique situation. The best route is to go to their website or local branch to assess your chance of success.
Wells Fargo offers:
- 12 to 36 months loan terms for loans under $5,000
- 12 to 60 months loan terms for loans more than $5,000
- They require US citizenship or permanent residency
- In some cases, a cosigner is required
Even though you might face a few obstacles applying for a loan as an immigrant, all hope is not lost. There are various loans for Telugu people available in the U.S. Make sure you apply our tips and do proper research. You’ll be able to get a loan in no time!