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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

Know More

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

Personal Loan

What Is a Typical Personal Loan Amount And Repayment Tenure?

Personal loans are without a doubt the best choice for people who wish to cover any expenses without any limitations. But what most people do not know is that the length of the repayment period affects both the total amount of the personal loan and the EMIs that are calculated from that amount. Because of this, it is very important to understand the different ways that personal loans can be paid back. [B-01] What Are Personal Loans? Personal loans are a type of unsecured loan that banks and NBFCs give out based on the borrower’s job, employment history, income level, and credit score. In some places, a personal loan is also known as a consumer loan. You can use the personal loan money to pay for any expenses that come up suddenly. People get personal loans when they do not have enough funds to pay for an emergency or when they do not want to use all of their savings to pay for their immediate responsibilities. Features of a Personal Loan Digital ProcessSince the whole process is done online, there is no need for paperwork or direct contact between the people involved. Digitalisation has made the personal loan application process quick and easy. Flexible TenureYou can decide how long it will take for you to pay back the loan. The loan tenure can be anywhere between 6 and 60 months. Multi-PurposeA personal loan can be used to pay for a wide range of things, such as a wedding, a vacation, new furniture for your home, unexpected medical bills, and many more. No CollateralPersonal loans are unsecured loans, which means that you do not have to put up any property or asset to get approval. Minimum DocumentationMost of the time, you only need a few documents to get a personal loan. You will need things like ID proof, address proof, and bank statements. Instant DisbursalIf you are approved for a personal loan, the money will be credited to your bank account within the next 24 to 48 hours. What is a Typical Personal Loan Amount? Usually, you can get a personal loan from a bank or an NBFC for any amount between Rs 10,000 and Rs 40 lacs. But the amount depends mostly on your financial history and your ability to repay the sum. If you choose a longer loan period, you will have more time to pay it back. This means that your EMIs and other monthly financial obligations can be balanced well. So, if you want a big loan amount, which would come with a higher interest rate, then a longer loan period can help you get lower EMIs. What is a Repayment Tenure? The term ‘loan repayment tenure‘ means the total amount of time that passes while you make the EMI payments on your loan to pay off the whole loan amount. Personal Loan Maximum Tenure Each lender sets a different limit on how long you can take to repay a personal loan. This is done to make sure that borrowers can choose a repayment tenure that works best for their finances. Even though the average maximum term for a personal loan is 42 months, you are given a chance to pay back the loan with more manageable EMIs. If you have a low monthly income, choose a longer personal loan tenure. This way, you will not struggle while paying off the loan. Personal Loan Minimum Tenure The minimum loan tenure also varies from one lender to another. Some experienced and well-known lenders offer the shortest loan terms of three months, while other lenders offer the shortest loan term of ten to twelve months. Most personal loans with shorter terms have higher interest rates, which means that the EMIs are usually bigger. So, people with high salaries can pick a shorter tenure of three months. What are the Factors that Influence Personal Loan Tenure? Interest RatesPersonal loan interest rates directly influence the tenure of your personal loan. If your loan’s interest rate is higher than average, you should choose a longer loan term so that you can take your time to pay it back. Monthly IncomeSince you will have to pay your EMIs from your monthly income, it is in your best interest to choose your tenure carefully. If your income is low, choose a loan term that lasts longer. If your monthly income is high, choose a loan term that ends quickly. This will make it easier for you to pay off the loan based on your capacity. Bank OptionsWhen it comes to the debt-burden ratio (DBR), every financer has their own rules. There are times when a bank will not approve a shorter personal loan term because it will cause your EMIs to go up. This, in turn, will cause the DBR to go up. If the DBR does not meet the bank’s standards, you will not get a loan from that bank. Existing LiabilitiesYour current financial responsibilities affect your monthly income, which you will need to make personal loan payments. If you have a lot of debt from the past that you need to pay off, you should choose the longest loan term possible. [B-02] Conclusion Personal loans are the best option when you are short on time and need cash right away. Before choosing a repayment tenure, you should carefully consider all its pros and cons. When you choose the wrong repayment tenure, it can be hard on your finances and prove to be a burden for you. If you do not know where to start or have questions about personal loans, you should consult Piramal Finance and find loan options that suit your needs.

08-11-2023

Personal Loan

How to Get A Rs 50,000 Personal Loan Instantly

Life is an endless cycle of ups and downs, and financial emergencies make up a major part of gliding through life. You may think you are saving enough for a specific event in the future, such as your child’s higher education or marriage, but an unexpected urgency may force you to dip into your savings. However, you can consider an instant personal loan rather than spending a major portion of your savings on such urgent needs. An instant personal loan is a loan product that lenders such as banks and NBFCs offer to individuals to cover any personal expenses. These expenses can include covering the expenses of any urgent need such as medical emergency, home renovation, marriage etc. However, similar to other types of loans, lenders charge interest on the offered loan amount which the borrowers are legally liable to repay along with the principal within the loan tenure. But how much instant personal loan amount is ideal? [B-01] 50000 Personal Loan: An Ideal Instant Personal Loan When you apply for an instant personal loan, you have to choose how much you want to raise as the loan amount. The loan amount should be based on how much money you will need to cover the expenses of the urgent need at hand. If you are looking to fund a portion of the expense from your savings, you can raise the rest by applying for an instant personal loan. However, Rs 50,000 is an ideal loan amount that is not too less or not too much and comes with nominal interest rates and flexible EMIs for repayment. offer a a The 50000 personal loan comes with numerous features and benefits that make it an ideal choice for borrowers. 50000 Personal Loan: Benefits and Features If you have analysed your personal needs and know that you want to avail of an instant personal loan with Rs 50,000 as the loan amount, all you have to do is apply for a 50000 loan. However, if the expenses are personal, you can go for a 50000 personal loan. When you apply for a 50000 loan or 50000 personal loan, you get the following benefits: Immediate Capital: A 50000 personal loan is a specialised product that allows borrowers to avail of Rs 50,000 as the loan amount instantly. Such an instant personal loan comes with quick approval and disbursal where quality lenders approve the loan within sometime. No Collateral: When you apply for a 50000 personal loan, generally lenders do not require you to pledge an asset as collateral. It means that you can avail funds instantly, without owning any valuable asset which would be tied up with the lender. Flexible EMIs: A 50000 personal loan offers an effective repayment tenure that starts from 12 months and goes on to 60 months. The borrower can repay the instant personal loans through flexible EMIs stretched throughout the loan tenure. Such flexible EMIs ensure that the borrowers can repay the loan effectively without experiencing any financial burden. No End-Use Restrictions: One of the best features of a 50000 personal loan is its ability to offer the loan amount without any restrictions on the end use. When borrowers apply for a 50000 loan, they can spend the loan amount on any personal legal expenses. 50000 Personal Loan: Eligibility Since 50000 loans do not require an asset to be pledged as collateral, lenders have designed eligibility criteria to mitigate the chance of default. Here is the eligibility criterion to apply for a 50000 personal loan: Entities: Salaried individuals working under the following can apply: Government Institution Private Sector Public Sector MNCs or related companies Partnership Firms Proprietorship concern Age: The borrower must be between the ages of 21 and 60. Income: The borrower must earn a minimum of Rs 25,000 per month. Work Experience: The borrower must have a minimum working experience of 6 months in the current organisation. 50000 Personal Loan: Documents Required Here are the documents required to take an instant personal loan of Rs 50,000 through a 50000 personal loan: PAN Card (Compulsory) Identity Proof (any of the following): Passport Driving Licence Aadhaar Voter Identity Card Address Proof (any one of the following): Registered Leave and Lease Agreement Passport Driving Licence Aadhaar Card / Aadhar Acknowledgement Voter’s Identity Card Utility bills like Telephone Bills/Electricity Bills etc. (not more than three months old) Income Proof (all of the following): Latest 1 month’s salary slips Bank statements from the previous three months Steps to apply for a 50000 Personal Loan If you are an individual who has an urgent need to cover and wants to raise Rs 50,000 instantly, you can apply for the 50000 personal loan by following these steps: Step 1: Open the lender’s website and navigate to the “Personal Loan” page. Step 2: Click on the “Apply Online” button and enter your phone number. Step 3: Enter the OTP received on the phone number to open the application form. Step 4: Enter all the required personal and professional details. Step 5: Upload all the required documents and click on “Submit”. [B-02] Conclusion Instant personal loans have become an ideal product for individuals who want to raise immediate capital to cover the expenses of any unexpected urgency. However, it is common to need clarification about which 50000 personal loan product. Hence, it is important to know everything before making an informed decision. If you have any future queries, you can head over to Piramal Finance to cater to your personal expenditure needs.

08-11-2023

Personal Loan

What is Closing Procedure for a Personal Loan?

Most pre-closing personal loans are short-term loans that last 60 months. You can choose how long the loan will last. Most lenders also have specific terms that make it easier for you to pay them early. If anyone is short on cash and needs to get through tough times, a pre-closing personal loan is one of the best options. The best thing about it is that you can use it for anything, unlike loans for cars or houses. Interest rates on loans given right away can be anywhere from 11% to 35%. It depends on how risky the credit is and on other factors. You can close a loan if you want to take on less debt. The debt with the highest interest rate should be paid off first. Find out how to close personal loans early and the steps of pre-closing a personal loan. [B-01] What is Meant By a Personal Loan? A personal loan is a type of loan a person takes for personal needs, such as paying off debt or investing in a company. A personal loan is also known as a consumer loan. All personal loans include these three elements: Evidence of the debt, also known as a promissory note The loaned amount, also known as the principal Debts related to borrowing, also known as interest rates. Once the loan’s repayment terms are met, the promissory note is revoked. If agreed-upon loan payments are not made, the lender may file a lawsuit to recover its money. Mortgages for homes or cottages are included in consumer loans. However, personal loans are not a common term used to describe them. Documents Required for Pre-Closing Personal Loan You can find the loan account number on the loan statement. By logging in, you can access online banking and see loan statements. Identity documents include a passport, a PAN, and an Aadhaar card. The loan account statement and the letter approving the loan are also important documents. Get an exact quote of how much someone owes for “late plus charges.” Ask the loan officer about any fees for paying off the loan early. To pay off a loan early, you must take a cheque made out to the bank where you got the loan and cash it. How Much is the Pre-Closing Personal Loan Charge? For pre-closing, a personal loan means paying off debt before the end of the loan’s term. Some lenders charge a fee for pre-closing the personal loan. But sometimes, a pre-closing personal loan can help lower interest rates and debt loads. How to Close Personal Loan Early? The process for pre-closing personal loans must be understood. Most borrowers wish to pay off the loan before the defined duration. But, the pre-payment process for pre-closing personal loans may vary from one lender to another. Here are the steps for a pre-closing personal loan- You can contact your relationship manager through online banking to get the payment plan. You can use customer service to let the lender know that the loan has been paid off early. Before signing and sending the pre-closing personal loan form to the lender, carefully read the rules. If the documents are late or don’t have enough information, the lender will stop or cancel the early payment. You can pay with cash, a cheque, or a DD. After turning in all of the paperwork, a borrower will get a pre-closing quote. An authorised person can fill out the necessary paperwork. This can be done when you can’t go to the branch. You must give the authorised person a letter and proof of identification. When the loan is over, don’t forget to get the paperwork from the lender. It comes with the No Objection Certificate and the Loan Closure Certificate. Different Types of Personal Loan Closure There are a lot of ways of pre-closing a personal loan. It depends on what you want and how much money they have. Here are the main steps for pre-closing a personal loan early: Regular Personal Loan Closure The loan is paid off when you make all EMI payments up to the last EMI. The lender will give you a No Objection Certificate and a Loan Closure Certificate. If it fits the loan terms, you can pay the EMI for as long as possible. Personal Loan Pre-Payment Personal loans can be paid back in full or in part. Depending on the lender, pre-closing personal loan fees can be anywhere from 0% to 5% of the loan balance. Foreclosing a Personal Loan For the loan account to be paid off early, the debt must be paid off at once instead of in regular payments. A foreclosure can be started by either the buyer or the borrower. It is a legal way for a money lender to get back the rest of a loan given to someone else. Is Pre-Closing a Personal Loan a Good Option? In many situations, pre-closing the personal loan is a smart move: 1. Helpful in lowering the debt load You should choose the pre-closure of a personal loan based on your financial situation. If you are in a cycle of debt. Opt for a pre-closing personal loan if you want to come out from the debt cycle. Before choosing a personal loan, you must figure out how much money you will save and consider the fees and penalties for paying early. 2. Tracks the credit score The credit score is unaffected by pre-payment and partial repayment of loans. Credit units and money lenders treat it as a loan paid back within the predetermined tenure. But, if you need a sufficient credit score history, paying the bills on time for a more extended period may help preserve or improve the credit score. [B-02] Conclusion When you have sufficient money, pay your loans early. Salary workers often pay off personal loans before they close to get bonuses. Even though paying off a loan is a relief, banks and NBFCs charge up to 5% of the total amount owed for a pre-closing personal loan. It is not worth it if you want to repay the loan early. Before borrowing, plan its usage and payback. Private loans are worth looking into compared to other ways to get money. Look at what different lenders offer to compare the rates and terms of personal loans. See the fine print for details on costs and penalties. It is wise to research the process of pre-closing personal loans before applying for a loan. To learn more, visit the Piramal Finance website and explore their products and services.

08-11-2023