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Personal Loan

How Can a Personal Loan Help You Relocate to a New City?

Moving from one place to another can be just as stressful as it is costly. If someone is moving to a new city, they will need some extra money to pay for transportation, furniture for the new house, or even the security deposit. When moving to a new city, an instant personal loan can help people pay for these extra costs. This article will discuss how to apply for a personal loan and its pros and cons. The article will also discuss the alternatives to personal loans. With a personal loan, one can pay for all the transportation costs, hire people to help load and unload goods, and pay for a temporary place to live until the new home is ready. [B-01] Pros and Cons of an Instant Personal Loan As the name suggests, personal loans are used to pay for personal needs. But a person shouldn’t get a loan if he can’t pay back the monthly interest. If the person doesn’t pay his monthly bills, it will hurt his credit score. Let’s look at the pros and cons of instant personal loans. Pros of an Instant Personal Loan Quick and easy access to funds Some lenders put the money into a person’s bank account the same day or the next day after a loan is approved. It makes it easy to access money. Flexible loan terms The best thing about an instant personal loan is that a person has from 12 to 84 months to pay it back. Long-term loans mean the person has to pay more interest until the loan is paid off. No collateral is required A person doesn’t have to put up collateral when applying for an instant personal loan, and he can get the loan quickly. Fixed interest rates Fixed interest rates make instant personal loans even more popular and helpful. The same payment will have to be made until the loan is paid off. To pay for medical emergencies A personal loan can help a person with medical emergencies if he moves to a new place. Cons of Instant Personal Loans Long-term debts As mentioned above, the loan repayment duration ranges from 12 to 84 months, leaving clients in long-term debt. High rates of interest Interest rates can go up over time. How to Apply for a Personal Loan? Try to find a lender Use Google. One can find a lot of lenders online and should read their terms and conditions, minimum credit score requirements, and fees carefully. Contact several lenders Talk to different lenders to find the best terms and conditions. Also, ensure that the lender gives the person the lowest possible interest rate on the loan. Calculate the relocation budget When moving to a new city or place, a person doesn’t always need to take out a big loan. He should figure out what he needs and know what he wants. Personal Loan Alternative Some people want to avoid the high cost of instant personal loans, so they look for alternatives to fulfil their needs. So let’s look at alternatives to an instant personal loan. Family loans: They are considered the best way to avoid interest or pay little interest when overseeing expenses. Savings: Some people use their savings to cover expenses rather than applying for a personal loan. Payday alternative loans: if the credit score is low and the person is not eligible to get a suitable personal loan, he can consider payday loans. These loans are designed to help them avoid high-interest loans and last 12 months. Risks of Using a Personal Loan Loans always come with many risks. Some risks of taking a personal loan are given below: Not having enough money to pay your instalment The most significant risk of opting for a personal loan is that you won’t be able to pay back what you owe to your lender. You could face severe financial consequences if you can’t afford the monthly loan payment and the debt on your loan. Taking on excessive debt If you take out a personal loan and agree to make monthly payments, this debt may prevent you from achieving other goals you may have. This is because you will no longer be able to save, as you will be paying off your debt with your income. [B-02] Conclusion Getting an instant personal loan can make moving to a new city easier. But be careful before you take the loan. Keep in mind the extra costs and how you will pay the instalments. Moving to a new place is hard, but personal loans can make it easier. To know more, visit the Piramal Finance website and explore their products and services.

08-11-2023

Personal Loan

Personal Loan: How It Makes Your Gifting Easy This Diwali

The festive season of the year has arrived and so has the gifting season. Diwali is a festival that honours prosperity as well as the triumph of virtue over evil. Many people use the festival as an excuse to buy furniture, electronics, or even a car they have been saving for. People mostly spend a lot of money on home décor, apparel, and jewellery, but the long-term effects could be difficult to manage. Taking a personal loan could make your Diwali expenses a lot easier than you could think. [B-01] How can a personal loan make your Diwali gifting easy? Instead of using all your money on festive expenses, you can get a quick personal loan to cover both major and minor expenses. Diwali might be called the biggest shopping day of the year. Apart from vacations and home decor, people invest a lot of money in clothing, gifts, and home furnishings. Such regular and large monthly spending can drain your savings at times. To deal with such a rise in expenses, you might need some more money. Getting a personal loan is a very easy and quick solution to huge festive expenses. Here are a few good reasons why and how to take a personal loan this Diwali season: 1. Personal loans do not need any security It is the holiday season and the last thing you need is to secure a loan by putting up collateral and passing through a bunch of hoops. You do not have to put up any collateral or property as security for these loans because they are not secured. Instead, all you have to do is fill out an application for the exact amount of money you need. Your application will be reviewed, solely based on your credit history. It makes it easier for people of all economic backgrounds to get loans to pay for their Diwali gifting. Now that you have a personal loan, you can shop until you drop without worry. 2. Personal loans serve a variety of needs Personal loans are very flexible in terms of use, i.e., they are not limited to a certain goal like a vehicle or home loan. Here, once you have the money in hand, you can use it any way you like. A personal loan can be used for everything from home improvements to the purchase of jewellery, appliances, and electronics. Huge expenses can put a strain on savings during festival seasons – and this loan can be of big help. 3. You can apply for a personal loan online Diwali isn’t a one-night festival but a whole week of festivities, one might say. Post-Diwali night, several festivities and rituals are held, and it can be difficult to get to the bank for the loan process. If you are thinking about how to take a personal loan during busy Diwali days, we have got you covered. Applying for a personal loan online helps you take care of the extra cash you need while sitting at home. Your application will be processed in a matter of minutes as it is done digitally. Instead of spending time rushing around trying to get your loan sanctioned, you can spend it with your family and enjoy the festivities. 4. Personal loans offer simple eligibility criteria Personal loans are readily available, thanks to digital India. Lenders expect the basic eligibility criteria to be met, making it far simpler to have instant access to funds. Most loan providers will check your age, annual income, credit history, and job status before they come to a final decision. 5. Nearly zero paperwork As an added perk, applying for a personal loan online needs no paperwork at all and allows you to enjoy the joyous festival of Diwali. Your loan application will be taken care of after the authorities get your Aadhaar card and PAN. The maximum sanction amount is determined based on your income and CIBIL score, as well as the lender’s qualifying criteria. There are online tools you can use to check how much of a personal loan you will be granted. 6. Quick loan approval Applying for a personal loan online assures that you may get the money quickly. So, the time it takes to have a loan approval ranges from one day to the next. 7. You can set flexible repayment terms A personal loan offers you flexible repayment time. You can pay back the personal loan without feeling burdened by the terms. You can get this loan with easy repayment tenures. The best part is the payback terms as per the choice of the loanee. In this way, you can plan for your Diwali gifting costs and enjoy flexible repayment. [B-02] The bottom line Personal loans are a great way to cover the costs of Diwali gifting because you can apply for them online, may be used for a variety of purposes, are approved and disbursed quickly, and do not need collateral. Getting a personal loan for Diwali can free you from worrying about money while you enjoy this time of the year with your loved ones. But, it is vital to pay back your loan on time. Piramal Finance is your one-stop shop for all your queries related to personal loans, credit cards, and even Diwali loans!

08-11-2023

Personal Loan

Personal Loan vs Business Loan

A loan is one of the most important services provided by banks. Loans make it possible for you to pay for various necessities in life. When you apply for a loan, banks will authorise the loan following assessment and will charge an interest on the amount. You are required to pay the amount back in equal monthly instalments over a specified time. Loans are available in many forms. Business loans and personal loans are two of the most prevalent forms of loans taken by individuals. What is the difference between Business loans and personal loans? Let us investigate. [B-01] What Is a Personal Loan? A personal loan is an unsecured loan that can be used for anything. You will not have to provide any collateral to receive the loan. This is the best option for immediate financial assistance. A personal loan will help you cope with financial emergencies without the hassles of procuring a regular business loan. Perks of Personal Loans No End-use RestrictionsYou are free to use the loan in any way you see fit. You may utilise the borrowed cash to pay for a dream trip, upgrade the home to a smart home, or cover health costs. High Loan AmountYou can avail of a personal loan of up to Rs. 50 lakhs. Your unique credit profile will determine the upper limit for the loan. Easy PaperworkPeople will only need a few documents to apply for a personal loan. This includes an Aadhaar card, PAN card, proof of current residence, and proof of monthly income. Flexible Loan Payback TermsPeople may repay the loan balance over 12 to 60 months. However, the maximum loan payback time accessible to them will be known by their eligibility. What Is a Business Loan? A business loan is a secured loan that can be used only for business reasons. A business loan may be used for many purposes. This includes financing startups and paying salaries. Growing the current firm infrastructure and other objectives may also require finances. Applications for business loans go through high scrutiny. The process also involves a lot of paperwork and guarantees. Perks of Business Loans Usage Flexibility Banks and non-banking financial companies (NBFCs) have no say in how the firm is operated. Their only interest is in the credibility of the firm availing the loan. A business loan is an ideal choice for maintaining complete control over how the amount is spent. Low RatesMost lenders provide fair rates on business loans compared with other forms of loans. The reason is fierce rivalry among lenders for attracting users. Availability of Various Lending ChoicesMost lenders will provide a variety of business loans to cater to the varying demands of firms. Hence a wide variety of lending choices are available in the market for business loans. Simple and convenientGetting a business loan involves contacting a lender and discussing the chances of getting funding. It is an easier and faster option than looking for investors and convincing them. Key Differences: Personal Loans vs Business Loans ParticularsPersonal LoanBusiness LoanRules for EligibilityNeeds loan payment records, age, credit score, and monthly income.Needs details such as the age of the firm, future goals, and projected profits.PaperworkA personal loan does not require too much paperwork.Procuring a business loan requires lengthy paperwork.UseThis loan may be used for many purposes.Business loans are used for furthering business needs and growth.Need for AssetsNo security is needed.A valuable asset is required as security for a business loan.PaybackPersonal loans are intended to be paid back in a short time frame.Business loans may be paid back over an extended time frame.Rates of InterestPersonal loans are unsecured. This leads to a high rate of interest. Interest rates are lower than personal loans since business loans need asset filing.Payment Time Once a personal loan is approved, the loan amount is normally transferred to the account within three days.A huge amount of due diligence is needed before clearing a loan request. The allowed amount takes longer to reach the loan account. Which Loan is Easier to Obtain? Personal loans can be easily procured if you have a strong credit history and a regular source of income. People seeking a personal loan must have a good debt/income ratio. Personal loans may be obtained without the use of collateral. However, if your credit rating is low, loans with leverage are better options. Credit is the main factor for approval in business financing. Lenders may request personal and business credit ratings. Lenders may also need year-on-year income and years in the sector. Popularity of Personal & Business Loans in India India is regarded as one of the best hubs for new firms. It now ranks third in the world for start-ups. Indians are joining the start-up scene in large numbers, owing to their advanced skills. Indians are also investing in properties and vehicles. They are also looking for loans to meet their personal needs. This has led to the market being swamped with both business and personal lending options. [B-02] Conclusion Your needs define the choice between personal and business loans. Both have various pros and cons. The basic purpose of borrowing money is to meet your needs while avoiding losses. Do you wish to jump-start your business or cover the expenses of your firm? A business loan may work for you. Business loans have lower interest rates and offer tax perks. Do you need money immediately to cover your expenses? A personal loan may be the best option. Personal loans are easy to procure and are approved immediately. You can decide the type of loan that is suitable for you, based on your needs. The amount required, interest rates, and the time frame for repaying the loan are other important considerations. Piramal Finance can help you find the best options based on your needs. You can also check out the other services they offer.

08-11-2023

Personal Loan

Tips to Manage Your Personal Loan EMI Payments

Personal loans are more important today than ever before. You can easily avail a personal loan to satisfy your long-term or short-term fiscal demands. Personal loans will help you fulfill your dreams, such as vacations and destination weddings. Once you receive the loan, it is important to repay it as planned. This is important to meet your financial goals. [B-01] Tips to Manage Personal Loan EMI Here are a few tips to help you handle your personal loan equated monthly installment (EMI) payments smoothly. 1. Make a monthly plan Start by making lifestyle changes to ensure that your monthly income can cover your loan EMIs. If you are married, you can sit down with your partner and prepare a list of your monthly salaries and expenditures. You can decide which costs can be reduced. You can also explore options for additional revenues if required. After reducing your expenses, you can keep aside enough money to pay off your personal loan EMI. 2. Set up recurring payment alert You may inadvertently skip the EMIs owing to your busy schedule. To prevent this, you can create an alert and pay the EMI 2–3 days before the due date. An even better choice is to set up recurring personal loan EMI payments from your bank account. As a result, the funds will be regularly deducted from your bank account on the set date without any input from you. 3. Restructure or consolidate your loans Check the amount and terms of your loan when seeking one. If you find it hard to pay your EMIs, discuss it with your bank. You can ask for options to alter the terms of the loan or extend the duration of the loan. Another option is to merge your old debts into one personal loan. This will prevent you from having to recall various EMI deadlines. It will also prevent large debts. 4. Assess the following options for loan prepayment You don’t have to be burdened with EMIs until the end of the loan term. You can look at options for prepayment when possible. A gift or a raise at work may leave you with additional money that can be used for the prepayment of the loan. You can find out the fines for prepayment, if any. Another option is to talk to your bank about raising your monthly personal loan EMI. This will allow you to pay off your loans faster and lower the total interest rate. 5. Prepayment of the loan You may have picked the longest loan term based on your ability to repay. This will keep your EMIs low. You can also use personal loan EMI calculators online. After you have paid the EMI for 6 months, you may prepay the debt in whole or in part with no extra fees. Even a partial prepayment may greatly reduce your EMI. Any future income inflow, such as a bonus or pay rise, can be used to lower the loan amount. This will help you handle the debt wisely and stress-free. 6. Make a reserve fund As soon as you start earning, create a reserve fund to see you through a rainy day. It is important to be prepared for unplanned events and emergencies. As a rule, refrain from spending all your money. Whatever changes in your life, your personal loan EMI payments will stay. They will be due every month. As a result, it is important to save every month while you can. This reserve fund will see you through the bad times. 7. Keep a good credit record The importance of a high credit score cannot be overstated. Reneging or delaying EMIs has a negative impact on the credit record and reduces the chances of getting a loan when you need it. Hence, it is essential to handle your personal loans carefully and repay them regularly. You can calculate your personal loan EMIs using personal loan EMI calculators online. 8. Raise the EMI amount if possible Many NBFCs provide flexible payment terms that you can use when required. If you get a pay raise or additional money, you can use the extra money to pay off your loans rapidly. Ask your bank to increase your EMI so that you can pay off the loan faster and become debt-free. On the other hand, if you face any issues with your EMIs, you can ask the bank to increase the number of EMIs to make it easier for you to pay. 9. Pay off high-interest loans first Make a list of your debts based on their interest rates. A home or personal loan will likely offer lower interest rates and tax savings. In addition, the value of a home may rise with time. Credit card loans and personal loans often have slightly higher interest rates. It is a great idea to pay these first before going on to the easier ones. 10. Make a distinct fund for EMIs Set up a distinct fund for personal loan EMIs. This will enable prompt payments even during difficult times. You can create another savings account for this. This account should only be used to make EMI payments. Ensure that this account has enough money to handle your loan and payments easily and efficiently. [B-02] Final Word Unsecured private loans are a good choice to fill a short-term fiscal gap or deal with an unplanned need or situation. You must be more diligent and engaged in your monthly budget plan. You should also strive to close the debt as soon as possible. Ensure that your personal loan EMIs are paid on time. Late payments may result in late fees and, worse, can harm your credit score, making it harder to get a loan in the future. Visit Piramal Finance for more information about how you can pay your EMIs with ease. You can also learn how to get a personal line of credit. Learn how to manage your finances with Piramal Finance.

08-11-2023

Personal Loan

How Banks Offer Low-Interest Rate On Personal Loans

Someone planning to buy the dream car that they always wanted? Or do they want to fund their international trip to some cool places? But, are a little bit short on cash in handy to spend the immediate expenses. Here, comes a personal loan with low interest to save the day. That is what one needs for quick cash in hand. And this way of loan is quite popular among the masses as well, as it does not need them to give any collateral, which makes personal loans, unsecured loans. And that is why banks charge high-interest rates on immediate personal loans. In this article, we will discuss how banks offer them personal loans with low interest and how one can avail of the same. [B-01] Personal Loan: What Is It? So, let us begin with knowing what personal loans are. Personal loans are unsecured loans that are cost-effective options with lower interest rates and can be used for emergency cases such as paying for education, marriages, renovations, etc. Personal loans are the perfect alternative to home and car loans which need collateral and credit cards since they carry a lesser amount of interest. Personal loans always should be taken knowing their needs and how much time one would need to repay the personal loan. Perks Of Taking Personal Loans With No Interest No Collateral needed There is no need for a person’s assets to be taken as security and keep them locked up. An immediate personal loan does not need them to pledge any collateral to the lender, unlike secured loans like car loans and home loans. They can use the loan in any way they want to and there would be no effects on their assets. Choosing Ways To Use the Loan Any need, which will also include paying for travel, and college expenses, can be met with a personal loan. In a personal loan, one has the choice to spend the money wherever they see fit. One can easily get a loan if the lender qualifies them for the same. Instant Clearance Of Loan An immediate personal loan is granted quickly when compared to other loans. All a person needs to do is fulfil the basic criteria set by the bank, and they can get a personal loan within a few hours to a few days. A personal loan can help if they need money for any reason. Perfect For short term Personal loans are for shorter terms. It can be taken from a few weeks to many years. To make sure that one can repay the loan and also that their salary can meet the daily expenses, one needs to select the loan tenure. How do Banks Offer Personal Loans With Low Interest? By now, it should be clear what personal loans with low interest mean. Coming up next, it is vital to look at the factors that affect personal loan interest rates given by banks before learning how to get the lowest interest rates. Let us now see how banks can give out loans at such low-interest rates. Here is all that one needs to know about the factors that will help the bank in deciding whether to grant them the loan or not: Good Credit Score The three-digit range of a credit score is 300 to 900. It shows if the borrower is worth the trust in terms of the loan. A score above 750 is taken as a good one and helps in getting an immediate personal loan with a low-interest rate. Their credit score is used by banks to check their credit history, debts, and chances of timely loan payback. If they have taken out a loan and repaid it on time in the past, the bank will view them as low-risk people for a loan. Consistency in job An applicant with a regular full-time job who has shown growth or success in their career is always given an edge more than a freelancer or a person with a contract job. Steady work is seen as a surety for making monthly loan payments by banks. Before they choose a personal loan with low-interest rates, the banks also check their career history and the time they have been at their current job. Debt-to-income ratio This debt-to-income ratio tells the banks whether the loanee will be able to pay off their loan and cover other expenses, such as their day-to-day household expenses, at the same time. To acquire the best personal loan with low-interest rates, it is best to maintain a debt-to-income ratio under 50%. Lending institutions look favourably on a 30–40% ratio. [B-02] The Bottom Line We hope that by the end of this article, the readers have a good idea of how banks offer personal loans to common people at low-interest rates. While getting an immediate personal loan might be a difficult task, they can make sure to get one by maintaining a good credit score, looking out for offers from the lending institution, comparing the rates of interest, and at last negotiating for a lower interest rate with the lender. If they are still unsure how banks can offer them personal loans with low interest and need to apply for one, they can contact Piramal Finance for further help, wherein they can guide them step by step through the whole process.

08-11-2023

Personal Loan

The Pro Guide about Personal Loan Disbursement

Are you considering taking a personal loan? A personal loan can help you in many ways. It does not require assets and heavy documentation. You may have heard that it is quick compared to other loans. A personal loan will come in handy in emergencies. However, you must learn as much as possible about how personal loans are paid out. What is the process for availing of a personal loan? How long will it take for the loan to be paid out by the lender? Read on to learn more about the personal loan disbursement process. [B-01] What Is Personal Loan Disbursement? It is the process by which nonbank financial companies (NBFCs) or banks send the loan amount to the borrower’s bank account. When you receive this amount in your bank account, you can use it for anything you require. After you have submitted the loan application, you will receive the money in 7 to 10 business days. The number of days taken for loan disbursement may vary based on the lender and how long it takes them to do their due diligence. Applying for a Personal Loan The first step is to fill out a loan application online through a bank, NBFC, or branch office. Fill out the loan application form with the information required. You will need to provide proof of identity, bills, and income tax returns (ITRs) along with your loan application. The banks or NBFC may ask for more proof depending on their rules and regulations. Documents Required for Personal Loan You must submit document proofs and the application form. All the paperwork will be verified and updated. The following is a list that serves as a general guide. The documentation requirements may vary from lender to lender: Identification proof Proof of address Income evidence Bank details Financial Statement (ITR) Two passport-size photos Approval of Personal Loan The lender will start the approval process once the loan application and other paperwork have been submitted. The lender may take some time to approve the loan. Any errors or discrepancies in the form or documents will delay the process. Proper documentation will help the lender process the loan faster. Amount of Personal Loan Approved The approved amount may not be the same as the loan amount. The amount disbursed will depend on the lender’s assessment. The money will only be disbursed if all the paperwork is completed satisfactorily. The following variables will affect the amount distributed: The type of loan Processor charge Advance payments, if any Service charges. Factors Affecting Personal Loan Disbursement Earnings All lenders have their own rules about how much a borrower should be earning. These rules help them figure out if they can pay their equated monthly instalments (EMIs). Most lenders want you to make at least Rs 15,000 per month. Lenders may also look at how much money you have in your account after paying your EMI. They will approve the loan only if there is enough money left in your account. Age The potential earnings increases with age. Individuals close to retirement may not be considered for loans as their earning potential reduces after retirement. Helpful Factors for Personal Loan Disbursement CIBIL Score The Credit Information Bureau of India Limited’s (CIBIL’s) score or credit score determines whether you can get a personal loan. Check your CIBIL score before applying for a loan. The credit score helps the lender determine if the applicant can repay the debt. The score also shows how the financial position of the applicant. You can get a personal loan with favourable terms and conditions if your credit score is at least 750. If you have a good credit score, it will be easier for you to get a personal loan. It also helps you get a higher loan amount. Rate of Interest (RoI) Many lenders may offer low and appealing interest rates. Even though the offer may seem appealing, there may be hidden charges or conditions you are not aware of. You may end up paying more because the lender may have strict requirements. Before applying for a personal loan, you must check your RoI carefully. It is also important to compare the interest rates of different lenders. Most of the time, loan interest rates calculated by lowering the balance are considered the best option. Calculations of EMI It is essential to figure out the EMI before getting a loan. Understanding this will make it easier to determine if you can repay your loan easily. It is essential to know how these EMIs are calculated. If you don’t want to pay more than you have to, you can choose from options like no-cost EMI and advanced EMI. Fees for origination Some lenders charge fees at the start of a personal loan. The origination fee is a set amount that must be paid after the loan application has been sent to the lender or after it has been looked over. How Is a Personal Loan Cancelled after Being Disbursed? Once the money has been sent to your account, the personal loan can not be cancelled. The agreement binds before the money is sent to the account. This is the reason it cannot be cancelled. After the money has been disbursed, foreclosure is the only way to get rid of some debt. This can be done a year after on-time EMI payments. However, you are free to turn it down after the lender has made a loan offer based on risk profiling. [B-02] Conclusion Personal loans are easy to get. However, you need to do thorough research and choose the best option. Before applying for a loan, you must read the terms of several lenders carefully. It is also important to check out the financial institution and the lender. With Piramal Fininace’s easy, short-form online personal loan application process, you can apply and get a personal loan quickly. To get started, submit the information and loan criteria. Visit the Piramal Finance website to learn to manage your finances efficiently.

08-11-2023

Personal Loan

5 Personal Finance Lessons to Teach Your Kids

Every parent wants the best for their child. The process begins with building strong foundations so that they can lead a fulfilling and happy life. The fundamental values that every parent teaches their children are being responsible, disciplined, careful, and kind. Nowhere do we teach them anything about personal finance or personal financial planning! Money is something we need to lead a secure life. Still, we tend to ignore talking with kids about this crucial part of one’s life. Undoubtedly, being careful, responsible, and disciplined are essential traits parents want their children to have. It is equally important to teach children the basics of personal finance. Observing what others do helps children learn. That’s social learning. In the traditional classroom, kids are taught science and math. Personal financial planning, however, is rarely taught in regular classes or the general curriculum. [B-01] It is essential to teach kids about money right from childhood because of its real-world importance. Your child can acquire a proper understanding of the importance of money at an early age by being taught financial literacy. This article focuses on the top 5 timeless personal finance lessons you should teach your child. Let’s begin. Be mindful of your expenses It is crucial to distinguish between wants and needs. Your children will learn how to make smart financial decisions by understanding this difference. It is difficult for children to understand that they do not need to buy a new video game or a costly pair of shoes. You have to be disciplined to resist immediate gratification. As it is challenging to deny children small joys, you may want to offer trade-offs instead—like buying the fancy pencil box would mean a smaller color pencil set—and let them choose what they would like to have more of. Children will learn that they may not always need what they want through regular interventions and explanations. In due course, this will help them become rational spenders. It is essential, however, that they learn this lesson, which will make a significant difference in their lives. It’s important to question every purchase and find a balance between what you want and what you need. Educating our children about the value of money will help them make better financial decisions today and in the future. Don’t compare wealth Parents should always tell their children that no matter how well they are doing, there will always be someone who has more than they do. When trying to compete with your neighbor or a friend, you are most likely to spend more than you can afford. People are oversharing everything on social media, affecting their financial habits. It is essential to teach your children that keeping up with their peers or social media stars could set them back in the long run if they give into FOMO (fear of missing out). Prioritise investing over spending They understand that investing before spending is the next step once our children understand how to live below their means. Show your child the value and rewards of saving money, whether they earn their first allowance or start their first job. Do you remember the excitement of watching our piggy bank fill with coins or our bank account grow to save up for something we wanted? Once your children have begun to understand the value of money, take them to the next level by showing them how money can grow when managed well. Here you can explain how investments differ from savings and how they work. By introducing children to such ideas at an early age, they can become more aware of managing their money and understand the importance of investing. You can start by discussing with them how money grows in simple financial products like fixed deposits. A child who spends before investing will only reach long-term financial goals, such as saving for a bike, a first car, college tuition, or a home. Hence, every parent should teach their kids this golden rule of personal finance. Stay away from bad-debt Your children may need some debt, like mortgages and student loans, but you should teach them how to manage debt and avoid “bad debt” for depreciating assets such as cars or smartphones. Otherwise, they might keep paying for something long after its useful life has passed. If children take on debt, they should keep spending under control with a clearly defined budget. Whenever possible, pay off your credit cards in full each month. If possible, aim to pay off student loans early and the mortgage within 15 years. The value of money decreases As a child reaches the age of 14–15, they should be taught about the loss in value of money over time. This is a crucial lesson in personal finance planning. You might have been able to give examples of how much things cost you on a daily basis when you were their age.You can compare the cost of a pencil from 30 years ago with what it costs now, for example. Show them illustrations showing how much a pencil costs Re.1 The cost back then and now is Rs. 5, which is a five-fold price increase. As a result, children may also become curious about past prices. Through such discussions, they would learn how money loses value year after year, making things costlier. [B-02] Conclusion Parents can set their children up for a bright financial future by making saving a routine. Developing healthy habits at a young age makes children more likely to have fewer financial difficulties as adults than those who don’t have such a background. Remember, personal finances and financial planning play an essential role in a family’s economic well-being. Children who are taught the basics of finances will certainly behave better in the future. When your children make financial decisions on their own, you will not always be there to guide them. In such situations, a child’s learning from an early age will be beneficial and give them a sense of confidence and empowerment. You can also visit Piramal Finance for more.

08-11-2023

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Things You Need to Know Before Applying for a Flexi Personal Loan

Unexpected monetary emergencies are something that all of us are familiar with, and we all know that they may appear out of nowhere. If you are not well prepared to deal with it, then it might cause a major hole in your financial resources. Any of us can fall victim to it. Not everyone is ready to deal with such situations, and the majority of the time, you will be required to use credit to meet the expenses associated with the emergency. The fact that some financial institutions and banks will give you a personal loan despite your difficult circumstances is a positive thing. A Flexi Personal loan is a type of personal loan that is different from standard personal loans. The amount of the loan is made available to you in the form of a personal line of credit, as opposed to the standard personal loan. [B-01] What is a Flexi Personal Loan? A Flexi Personal loan gives the borrower the ability to get their hands on funds in a hurry. It comes with a credit limit that has already been approved for you, which you are free to use for whatever, whenever you feel the need. What kinds of benefits does the Flexi Personal Loan offer? You can apply for Flexi Personal loans online from the comfort of your own home, and the money will be in your bank account after you apply. You can use the loan for any legal purpose, such as a wedding, party, home improvement, furniture, etc. The loan’s interest rate varies from lender to lender and depends on things like the loan amount, the borrower’s credit score, how long the loan is for, etc. Since Flexi loans are unsecured, the borrower does not have to put up any collateral or security. Loans can be paid back whenever the borrower wants. Even though you have to pay the interest rates every month. Since the lenders don’t charge any fees for these loans, the people who take them out can pay them back whenever they want. Flexi Personal loans have fixed EMIs because the interest rate is fixed. This makes it easy for the borrower to pay back the loan. How does the Flexi Personal Loan work? Flexi Personal Loans work in a way that is very similar to how an overdraft facility works. The customers will get a credit line that has already been approved by the lenders. Also, the pre-approved limit is different for each borrower and depends on things like their ability to pay back the loan, their credit score, their income, where they live, and so on. If you need money right away, you can get a Flexi Personal loan and have the money put into your bank account without having to do any extra paperwork or go through any procedures. Interest fees are only charged on the amount that was used. For example, if you have a Flexi Loan with a maximum limit of INR 5 Lakhs but only take out INR 3 Lakhs, you will only be charged interest on the INR 3 Lakhs you still owe on the loan. What are the Things You Need to Know Before Applying for Flexi Personal Loan? Trustworthiness of the Lender: Before you apply for a loan, you should find out if the lender is reliable enough. Since the process can now be done online, there have been a lot of scams and fraudulent activities. So, you should do some research first, then compare lenders based on things like interest rates, reviews, benefits, etc., and then choose a lender. Interest Rate: When applying for a Flexi loan, the interest rate is one of the most important things to look at. This is because the interest rate on Flexi loans is high. Most of the time, it’s between 12% p.a. to 28% p.a. If you have to pay back your loan over 4-5 years, you find yourself paying a lot more than the original loan amount. Apply only if necessary: Don’t try to get a Flexi loan if you don’t have to. If you buy the loan because you’re tempted by something, it will be extremely difficult to repay it. Apply for a Flexi personal loan only if you need the money and don’t have any other way to get it. Other Charges Since lenders don’t charge prepayment fees, you’ll have to pay several other fees, such as processing fees, late payment fees, etc., that you should think about before taking out a loan. What are the Eligibility Criteria to be followed while applying for a Flexi Personal Loan? Here are the eligibility criteria that need to be followed for a Flexi Personal loan. You should be an Indian citizen living in one of the places where the lender offers the Flexi Personal Loan You should be between the ages of 21 and 58. You should have a monthly income of at least INR 15,000. A minimum of one year of work experience is required. At the very least, you should stay with the same employer for six months. To qualify, you must be a salaried employee of a multinational corporation, a public sector or a private sector company. What are the various documents required? For salaried workers, you’ll need the following documents. Proof of Identity: AADHAR Card, PAN Card, Driver’s License, or Passport Proof of Address: Passport, electricity bill, water bill Proof of Income: Bank statement for the past six months (salaried) Work Experience Employment: Certificate for 1-year experience [B-02] Final Thoughts If you need money quickly, the best thing to do is apply for a Flexi Personal loan. A flexi personal loan can be helpful in several situations, like paying for a wedding or making home renovations. If you’ve read this whole article, you should have a good idea of what you need to know before applying for a Flexi Personal Loan. If you have questions or don’t know where to start, you should talk to a financial expert like Piramal Finance to get loan options that fit your needs.

08-11-2023

Personal Loan

All You Need to Know About an Instant Personal Loan

A personal loan is becoming increasingly popular as a way to get cash when needed. Getting an instant personal loan can help a person pay for many things. Previously, personal loan request approval used to require a lot of paperwork, but as technology has improved, it’s now easier to get loans online. Most of the time, these loans are granted within hours or minutes after the papers are submitted. One can apply for a personal loan online from the comfort of their home by visiting the preferred lender’s website. [B-01] A Green Approach: Paperless Online Quick Personal Loans A lot has changed in recent years regarding how people use banking services. Instead of waiting for days, many people now prefer quicker and easier banking options. Digital markets in the finance sector have made this possible. The government is already doing its bit to transform the economy into a digitised one, focusing on cashless infrastructure. Paperless personal loans show that the business is evolving. People in the digital age are looking for a quick solution to their money woes. Instant personal loans provided by various lenders suit the needs of these people. They assist in meeting their short-term financial needs. How do Paperless Instant Personal Loans Work? With the rise of the Internet, it is now much easier for banks to receive and check data files from people. People no longer need to go to the branch and fill out a loan request form by hand. They can apply online and get approval if they need an instant personal loan. There are many cases where instant personal loans with no paperwork can be helpful: Support during a financial crisis During medical emergencies Paying for unplanned wedding expenses For sudden repair of house The Process to Get an Instant Personal Loan Many lenders, from banks to NBFCs, give instant personal loans to their clients. You can choose to apply here for instant personal loans. Due to digitalisation, you can avail of these services via their official websites. You will get some application forms asking for personal and professional details. After you submit it, it will go for verification for further processing. One can follow these simple steps to apply for a personal loan: If the person has decided to get a personal loan right away, they should go to the lender’s website. Look for the instant loan option. Fill it with correct information like home address, name, loan amount, and how much you earn. After this, a dialogue box will open. It asks you to upload relevant documents to support your personal information. This includes the last six months’ bank statement and ITR form. You should use an instant loan EMI calculator to determine how much the EMI will be and how much the loan will cost. After submitting documents and the online application form, you receive a call from the bank in a few hours. It is to confirm the loan needs and to get the person’s confirmation. The documents are further verified, including your CIBIL scores. This determines your eligibility criteria. The next call will provide information on the loan specifics, such as tenure, loan amount, interest rate, etc. The person must check these facts and sign the loan agreement form to indicate their interest in an instant personal loan. Once the person agrees to the loan factors like principal amount, tenure, and interest rate, the loan application gets approved. Usually, the total amount gets credited to your given bank account in the same business days. Features of an Instant Personal Loan Simple and quick approval The best thing about an instant personal loan is that the person can get it online. It’s easy to get approved and does not require much paperwork. Since an instant personal loan is processed online, it is granted faster than a regular personal loan. The person doesn’t have to go to the bank for loan approval due to digitalisation. Takes some minutes to apply In an emergency, filling out a 5-page application form is impossible. Banks are well aware of this need. So, they have made it easy to apply for an instant personal loan. They only need the person’s basic details. The person can then quickly and easily fill out the application form from home. Pre-approved loans The person can also get instant personal loans that a few lenders have already approved. Usually, borrowers have a pre-existing relationship with these lenders. This happens when you ask for personal loans from your own bank. You don’t need any paperwork. Since they already know their bank account details, these lenders can give pre-approved offers. These are based on what the person can afford to pay back. Once the pre-approved offer is accepted, your loan will get credited to your bank account on the same business day. Lowered cost By taking a digital approach, lenders can lower their total costs. This process can get rid of the cost of paper and printing. The person can benefit from the money saved by this method. High security When one applies for a loan, one always runs the risk of losing crucial paper documents. This can be taken care of by making the whole process online. When the bank gets a document, it will check to see if it is genuine. Once the paperwork is approved, the loan amount is sent to the person’s bank account. The person should carefully read the T&C of an instant personal loan agreement before signing it. They should also compare lenders to find the best rates and offers. [B-02] Conclusion Nowadays, one can obtain a personal loan by completing a simple online application. It is a multi-purpose loan and may be used for many reasons. Also, because this is an unsecured loan, the person does not need to provide collateral. One can get an instant personal loan if one needs a loan right away. It gives the person access to the money right away. It needs little or no paperwork, making it easy for all. For more information, visit the Piramal Finance website and explore their products and services.

08-11-2023