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Personal Loan

Personal Loan in Vijayawada – Check Eligibility & Apply Online

Andhra Pradesh is the third-largest state in the country. Vijayawada is in the middle of the state, between Hyderabad and Visakhapatnam. Krishna District is home to this town. Past names for the city include Bezawada. It is the second-busiest bus terminal in Asia and one of India’s busiest rail junctions. This city is the state commercial centre of transport, social and agriculture sectors. Many business owners and people in need are getting personal loans in this city. [B-01] Personal loans: what are they? A personal loan is a loan that you can get without the need for collateral or security. It needs a small amount of documentation and no collateral. Any financial need can be met with this loan. Your bank and you must agree on repayment terms for the amount you owe. Monthly payments are made over a period of months or years. Eligibility criteria for a Personal Loan in Vijayawada Personal loans in Vijayawada start at a rate of 10.25%. This loan is given by banks and non-banking financial companies. They go up to a high tenure of five years for personal loans. These loans offer a loan amount of up to Rs. 40 lakh. You may use it for any purpose except speculation. Some lenders also offer pre-approved instant personal loans. These loans are provided to current customers who meet the criteria. A personal loan in Vijayawada is available to: The loan is available to people with a monthly salary of Rs 15000. A personal loan is available to Indian residents between the ages of 21 and 70 A personal loan is for salaried employees Applicants who are working in private MNCs and are also self-employed can also apply Your chances of being approved for a loan are higher if your credit score is 750 or above. But, some lenders offer lower credit score personal loans at higher interest rates Personal Loan Documents Documents required for obtaining a personal loan in Vijayawada include: The KYC documents should have Aadhar cards, driver’s licenses, PAN cards, etc. You need a two-month salary slip as proof. At least six months of bank account statements. This includes a salary account for people who work for a company and a current account for people who work for themselves. Fees for a Personal Loan in Vijayawada Banks and non-banking organisations offer loans for a fee. The fee is between 1% and 5% of the loan amount given. You will have a penalty prepayment fee if you choose to close your loan before the end of the loan term. In most cases, you will not be able to close your loan before the 12-month period has expired. The charges for the loan depend on how many years have passed since the beginning. In the second year of a loan, these charges range from 4% to 2% of the pending loan amount. Low-Interest Personal Loans in Vijayawada A good credit score is vital for a low-interest loan. With a credit score of 750 or higher, you will be eligible for loan offers with lower interest rates. Also, you will be able to get better rates. Including your repayment history, your income, your debt-to-income ratio, and more How to Apply for a Personal Loan The following steps must be followed to go for a personal loan in Vijayawada: Visit the lender’s or bank’s website to learn more about them. You need to fill in the information on the form. Make sure you upload all the documents. Make sure that the loan has been approved before moving forward. If the loan gets approved, the credit will begin to apply to your account. It is time to begin repaying the loan under the repayment schedule. With a bad credit score, is it possible to get a personal loan in Vijayawada? It is possible to get a personal loan with bad credit. The cost of the loan will be high due to the high interest rate as well as the amount of the loan. It is always advised to increase your credit score. 750 or above is good to be able to get a personal loan at better terms and interest rates in the future. Personal loan EMI EMI is the term used to show the amount the borrower is told to pay for the loan each month as part of the loan term. It is checked by using the loan amount, the interest rate, and the term of the loan to find the monthly instalment. Pros of a Personal Loan in Vijayawada The following are some of the benefits of taking out a personal loan in Vijayawada: A lower monthly payment is easier to manage than a higher one. In the case of larger purchases or expenses, it may be necessary to borrow larger amounts to cover them. There is no need for collateral. It is easier to make predictable, stable payments with a fixed interest rate and long terms. Cons of a Personal Loan in Vijayawada The following are some of the cons of personal loans in Vijayawada: A rise in interest rates The interest will increase over a longer period The availability of loans is less [B-02] Conclusion To provide you with information about personal loans, we have explained the points above. There are some benefits to doing this. Not only will it help you locate what you are looking for, but it will also be good for you. A good financial company like Piramal Finance is a great place to start if you’re trying to find balance in your financial life.
08-11-2023
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Personal Loan

Can I take a Personal Loan for Home Renovation?

Buying a home is the first step towards independence. It also comes with a lot of responsibilities. A home needs constant upkeep. It will require painting and repairing fixtures and tiling, among others. You may be able to cover most of these expenses on your own. However, a substantial revamp may require more funds. Here’s the good news! You don’t have to put all your plans on hold. You can simply go to a bank and apply for a personal loan for home repairs. [B-01] What Is a House Renovation Loan? A house renovation loan may be used for home repair projects, such as improvements. This may involve painting the inside of the home or creating a modular kitchen. Personal loans may be used for undertaking non-financing repairs. These may include adding an extra room to an existing building, which increases the value of the home. Banks, non-banking financial companies (NBFCs) and mobile lending firms provide instant loans. They have higher approval rates and shorter payback terms. These loans may be used for various reasons. Should I Take a Home Improvement Loan? The decision to procure a house renovation loan depends on the loan amount and the interest rates. Before deciding on a personal loan, you need to consider these factors. Personal loan rates may vary from 10.50% at the lowest to 33% at the highest. While a limited house renovation loan might help deal with the need for funds, a high interest rate may be a dampener. One perk of home improvement loans is that they do not require security. You will not be asked to offer your property as security to procure the loan. Features of a Personal Loan for Home Repairs Adaptable tenure The term of a quick personal loan often ranges from one to five years. You may return the loan at your convenience. A large amount as a loan Loans of up to Rs. 25 Lakhs may be obtained for house repair. Rapid approval When you request a loan, the bank or financial institution will first check the paperwork. The bank will then approve the loan in a few minutes. The loan will be issued to the account as soon as it is authorised. Eligibility requirements You must meet the eligibility needs to qualify for a personal loan. You can request a loan for home improvement if you are a paid employee who meets the wage requirements for the loan. No assets are needed Personal loans do not require assets. Hence there is no threat of losing assets or securities if you are unable to repay the loan. Eligibility for Availing of a House Renovation Loan Age: To procure a personal loan, you must be aged between 18 years and 65 years. Type of resident: You must be an Indian resident or a non-resident Indian (NRI). You must have a permanent address or a rented residential address where you have lived for at least a year before applying. Employment: You may be salaried or self-employed. Credit Rating: You must have a trustworthy credit rating of 700 and above. Documents Needed for a House Renovation Loan Identification proof: PAN card, Aadhaar card, voter’s ID, driver’s licence, and passport. Address proof: Bills issued by the government such as electricity bills, ration cards, passports, Aadhaar cards, PAN cards, and voter’s IDs. Income proof: Wage slips for the last three months. Bank account records for the last twelve months for self-employed people. Proof of employment or business: Income tax returns (ITRs) for the last three years. How to Compare Home Improvement Loans Research banks and financial institutions for good interest rates. Comparing the rates will help you procure a house renovation loan with the lowest rates. Here are a few things to look for when comparing home repair loans. Annual Percentage Rates (APRs) APRs show the total amount of the loan, along with any fees levied by the lender. It could be the ideal place to begin if they belong to a credit union. Federal credit unions have a maximum APR of 18%. Loan Duration A long-term loan may have low instalments. However, you may have to pay a higher rate over the entire term compared with a short-term loan. Use a home repair loan calculator to analyse payments for loans for multiple durations. Option to Add a Co-Signer Some lenders may allow you to include another person on the loan form. Adding a person with a good credit score or higher wages may help lower the APR or borrow more money. How to Apply for a Personal Loan for Home Repairs The process for availing a personal loan is simple. You may borrow up to Rs. 25 lakhs. A home improvement loan may cover many house renovation needs like changing the floor tiles, painting the walls, changing the fixtures and repairing the ceiling, among other things. You may borrow cash as needed and repay it as soon as possible. The most important part of applying for a bank loan is defining the precise loan demand and amount. This will help you obtain the exact amount required. You may apply for a personal loan by following the steps below: Step 1: Begin by entering the personal and job info. Step 2: Choose the lending partner, loan amount, and time frame for repayment to obtain quick online approval. Step 3: After accepting the loan, you will immediately get the funds in your bank account. [B-02] Conclusion Home renovation funds are given to people who wish to renovate or improve their houses. This may involve carpeting, decorating, tiling, upgrading, rebuilding, repairing, and extending, among others. Personal loans may also be used to carry out house improvement or extension projects since personal loans have no restrictions on use. If you have an existing house loan, you can seek loans for home remodelling too. This will be provided in addition to the existing home loan. Home repairs may be expensive. However, you can still renovate your home with ease. A personal loan is a great choice if you don’t have the funds ready to finance a home renovation. Give your home a new look! This will improve the visual appeal of the property and increase its value. Check out Piramal Finance to learn how you can avail of a home improvement loan. You can also learn more about managing your finances.
08-11-2023
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Personal Loan

Mini Loan & Small Personal Loan: Complete Guide

A personal loan sounds like the best option if you have a financial emergency or a crunch in funds that needs to be filled. However, if you go the traditional route, you must apply for a loan with a minimum of INR 5 lakh to INR 10 lakh of the principal amount with the most popular and well-known creditors. When you do not require such a high amount, there is no point in paying interest on the principal amount. So, in such situations, you will have two options: either get a mini loan or a small personal loan. Many people find themselves in a spot when given these choices. This article discusses everything you should know about mini and small personal loans and helps you understand the most suitable and profitable loan, considering certain factors. [B-01] What is a mini loan, and how does it work? A mini loan is usually a payday loan or a small same-day loan that gets approved almost immediately. The principal amount is usually low, but it gets approved within 24 hours or takes only a couple of days. Since the loan gets approved faster, it doesn’t involve too much documentation, which is a relief for many. However, you must understand that many loans come with higher interest rates. You must take a risk to credit amounts ranging from INR 1 lakh to INR 5 lakh. Besides, you will not have to go through the gruesome process of documentation, verification, maintaining a good credit score, etc. So, if you have any problem that may risk your personal loan application, you can go for a mini loan. There are different types of mini loans, and their workings vary according to the type you choose. For example, when you choose the same mini loan, it will be granted instantly, but you have to pay it within a specific timeframe, like six months or a year. Sometimes, you can negotiate with the creditor to extend the repayment duration. However, if we consider a payday loan, you will get a credit based on your pay stub, and once you receive your salary or cheque, you have to repay the loan within 30 days. What is a small personal loan, and how does it work? From the name itself, you can understand that a small loan is almost like a personal loan but with a minimum principal amount. Most banks and top-rated creditors offer small personal loans nowadays because it helps mitigate financial debts, fill up the gaps in your finances, and so on. However, a personal loan needs several constraints to be fulfilled on your end if you want to increase the chances of loan approval. For example, you have to keep your CIBIL score high to get the loan approved without any hassle. In the same way, you must show proof of a steady flow of money into your bank account every month so that you can pay off the monthly payments without any late fees. The better your CIBIL score is or the more you can make your portfolio stronger with documentation, the greater your chances of having your loan application approved. Which one should you use to fulfil your needs? It isn’t easy to decide whether you should go with a mini or personal loan, especially when both offers seem lucrative and profitable. This is why we have drawn a parallel between the two types to help you understand which will be better for your circumstances. Chances of approval The first and foremost factor based on which you can judge the mini loan and the small personal loan is the chances of approval. When taking any credit, it’s essential to understand that it will be approved only when everything is on track. However, if not, there will be severe consequences, and your loan application will get rejected. Based on these, the chances of a loan application for a mini loan are much higher than those for a small personal loan because private and small-scale financiers usually offer many loans. In contrast, banks and public creditors grant small personal loans. Interest rate You also have to pay attention to the personal loan interest rate. No one wants to pay more than necessary or the minimum amount charged across the market. If your loan application doesn’t have a strong foundation or you fail to submit appropriate documents with a high credit score, you will end up paying a very high interest rate for your small personal loan. This is because you will neither be able to provide collateral for the loan nor will you be able to satisfy the creditors that you can pay the debt every month on time, so they will automatically charge a higher interest rate to mitigate the risks. But if we look at mini-loans, the interest is usually high, no matter what documents you send or what your credit score is. Documentation When you apply for a mini loan, you don’t have to submit much documentation. You only need your ID proof, address proof, and any income proof. Therefore, if you do not have the documentation done currently or there are some glitches with the papers, you can go for many loans because the creditor will grant you the principal amount without even looking at the documents you submitted with the loan form. However, when you opt for a small personal loan, you must approach a public creditor or a bank. As expected, they will request all necessary documentation, such as your ID and address proof, proof of income, credit history, transaction history, and so on. If these documents fail to satisfy the terms and conditions, your loan application will be rejected. So, judging by these factors, mini loans are the better option. [B-02] Conclusion Since now you have a clear idea about the differences between a mini loan and a small personal loan, you can easily decide which one you should go with based on your credit score, the availability of documents, the chances of approval, and so on. Get in touch with a professional so that you can understand the scope of a mini loan and a small personal loan in depth and then take the appropriate decision. Piramal Finance can help you with the consultation because they have experts in the field who have been working there for decades.
08-11-2023
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Personal Loan

Things They Should Know about Transferring Personal Loan Balance

A personal loan is an excellent solution to a variety of money problems. Now, most lenders in India give personal loans to applicants. Personal loans are among the most pricy types of loans, even though they may often save their life. Their interest rate is also very high when compared to other loan kinds. Due to a lack of money, Ankit chose to take out a personal loan. But after a few months, he felt that the monthly payments were hurting his finances. Ankit changed to a new lender as a result, who had a low rate of interest and paid off the balance with lesser EMIs. This is known as a loan balance transfer. It enables them to transfer loans from one lender to another in exchange for better loan conditions, such as low-interest rates. Moving the balance of their loan to another lender is known as a balance transfer. If the other lender is giving personal loans at a lower rate of interest than their current lender, it might help them save a huge amount of money. While low-interest rates are the main perk for a person to transfer lenders, they can also use this option if the other lender gives a longer repayment term, better services, or other perks. But, keep in mind that not every loanee will take perks from a balance transfer. In a few cases, keeping the loan with their current lender makes better sense. [B-01] When should one opt for a Personal Loan Balance Transfer They are making big EMI payments; a low-interest rate will cut the interest portion of their EMI payment, lowering their overall EMI payment. A personal loan EMI calculator may be used to calculate the new EMI figure and the amount of interest they will save over the loan’s term. They are not happy with their existing lender: If they are unhappy with the terms offered by their present lender, they may move to one that offers better terms, such as no processing costs and no prepayment fees. A person’s income level is not stable, so what they make now can be higher than what they made two years ago. A Balance transfer is a good tool that helps them to keep a check on their debt, make changes to it, and adjust it as per their need. If they wish to add more money to their current loan: If they need more funds and have a solid credit history, they may do so by refinancing their loan. Vital Steps to Consider Before They Avail a Personal Loan Balance Transfer One should look around for a good balance transfer process. A quick phone call to a bank’s help desk will give them a clear sense of the balance transfer plans and prices the bank offers. One more thing to keep in mind is that some banks charge a processing fee for balance transfers based on the principal amount. The funds can also be sent to their account, where they can then pay them back to the original bank from where they got the loan in the first place. This is one more way to do the balance transfer process. Eligibility Criteria Eligibility criteria need to be met by a person if they seek a loan transfer- They should fall between the age group of 21 to 60. They should earn at least 20,000 INR every month. They need to have a personal loan from some other bank. They must have paid at least 12 EMI. They should have at least a 12-month history of timely EMI payments The normal CIBIL score range is 600+. Documents needed for Personal Loan Balance Transfer If they are qualified, they must provide the following data for the personal loan balance transfer process: A duly completed application form Current passport-size photos, loan statements, and transfer data ID proofs such as a passport, Aadhaar card, or voter ID. Their PAN card copies Their age proofs include their driver’s license, voter ID, passport, or Aadhar card. Their address proofs, such as a lease deed or the most recent utility bill. Other paperwork for the self-employed: TAN card or GST number Balance sheet and profit and loss statements for the last three years Bank statements for the firm and the owner’s for the past six months Other paperwork for a salaried person: Salary slip for the last 3 months Bank statements for the past 6 months The Bottom Line The transfer of a current personal loan from one lender to another is known as a personal loan balance transfer. On personal loans, they can get cheaper interest rates and longer payback terms. For personal loans to be eligible for balance transfers, many banks have varying needs for the total amount still owing on those loans. Check the costs and fees for the transfer of the balance of a personal loan. If they are not okay with the terms given by their current, think about a balance transfer. Frequently Asked Questions Do I need to submit any collateral or security while applying for a balance transfer? No, they do not need to submit any collateral or security to apply for a balance transfer, as it is an unsecured loan and the same as a personal loan. [B-02] What is the fee that one has to pay for a balance transfer on their loan? Apart from the interest rate, other fees may include: Processing costs payable to the new bank Pre-payment fee to be paid to the old bank Stamp duty to be paid on loan agreements in some states
08-11-2023
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Personal Loan

Check & Apply Online for Personal Loan In Hubballi

Are you in need of funds urgently? For renovating your home or for a wedding in the family? Personal loans can help you fulfil your money requirements quickly. Read this article to learn everything you need about applying for a personal loan in Hubballi. [B-01] What is a personal loan? A personal loan is a type of loan you can take from banks or non-banking financial companies (NBFCs) to meet your personal needs. You can avail of personal loans for Rs. 50,000 up to Rs. 15 lakhs. Some of the common reasons to apply for a personal loan in Hubballi are: Home renovation or making a downpayment for a new house Buying electronic appliances like fridges, TV, washing machine, etc. Upgrading to the latest smartphone To meet expenses for weddings For medical emergencies like accidents, injuries, or severe diseases and ailments To fulfil education and higher education fees for yourself or your children. For vacation or other travelling purposes Investing in a new business idea Features and benefits of a personal loan? A personal loan is an unsecured loan. This means that you do not need any collateral like gold or property to obtain the loan amount. Unlike a home or car loan, a personal loan is not tied to any asset. Therefore, if you wish to avail of any personal loan in Hubballi, you don’t need to worry about your assets getting seized or going to auction if you default on the loan. You can use your loan amount for any purpose you like. There are virtually no restrictions for this type of loan. The interest rate for a personal loan in Hubbali can range anywhere from 7.9% to 49% p.a. The repayment tenure (time you can take to repay the loan) is anywhere between 12 and 60 months. Your lender may allow you to select the term based on your comfort. The loan can be repaid using flexible, pocket-friendly EMI (equated monthly instalment) options. If your application for a personal loan in Hubballi is approved, you will typically receive the amount within seven days. Transfer the amount to your account electronically or with an account payee cheque/draft. If you apply for a personal loan with a co-applicant (i.e. joint personal loan), you can get a higher loan. Eligibility criteria for a personal loan Typically, a personal loan is offered for salaried employees. However, some banks also allow business people and self-employed individuals to apply. The minimum age for obtaining a personal loan in Hubballi is 21 years. The maximum period is usually 60 years. Having a good credit score (780 and above) is essential. Banks and NBFCs will also check your income and current occupation while approving your application. Documents required for applying To apply for a personal loan in Hubballi, you will need the following documents: PAN Card One copy for identity Proof (Aadhar card, Driving licence, Voter Identity Card, Passport, etc.) One document for address Proof (Lease agreement, Passport, Aadhar Card, Telephone Bill, Electricity Bill, etc.) Proof of Income, i.e., bank statement and salary slips What is the maximum amount you can borrow? While applying for a personal loan in Hubballi, the following criteria may be used by your lender to find how much is the maximum amount you can borrow: Current income level: Lenders usually calculate that your EMI is less than 40-50% of your monthly income. Lenders will also consider if you have any other existing loans If you have a very high credit score (900 or above), lenders can help you increase the loan amount If you have any unpaid credit card bills or overdue EMIs, it will affect the maximum amount negatively. Tips to consider before applying for a personal loan in Hubballi: Besides the interest rate, banks also charge other fees for a personal loan like processing fees, documentation charges and cheque bounce fees. So consider these rates also before choosing a lender. If you have a very high credit score, you can negotiate to waive some of the charges or get a lower interest rate. It is not always best to go for the lowest EMI option. Low EMI means higher tenure for repayment. Therefore, you may end up paying more amount as interest in the long run. You can use a personal loan in Hubballi to consolidate all your other loans. Like any other loan, if you don’t pay your EMI on time, your lender can use settlements and recovery agents to ensure the loan is paid. If you default on a loan, your credit score will reduce. This will make it difficult for you to obtain a loan from any bank in the future. Some lenders may provide you with a balance transfer offer. What does this mean? If you already have a personal loan in one bank, you may be able to transfer it to another lender. You can do this if you get better interest rates. All you need to know about repaying of personal loan You can repay your EMI amount using pre-dated cheques or an automated electronic transfer system known as Electronic Clearing Services (ECS). If you want to repay your loan before the tenure is over, you may be charged a penalty fee for the same by your lender. These are known as foreclosure charges. You may be charged a fee if you want to partially pay off some of the principal amounts before your tenure is over. These are known as pre-payment charges. [B-02] Conclusion If you have an urgent need for money, taking a personal loan in Hubbali through Piramal Finance can help you ease your tensions. Piramal Finance offers personal loans with zero pre-payment and foreclosure charges. Plus, you can get quick sanction of loans with minimal documentation. Click here to read more about taking a personal loan in Hubballi.
08-11-2023
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Personal Loan

Pre-Closing the Personal is it a Good Idea?

Personal loans have some of the highest rates, excluding charges on credit card balances. Loans attract a premium because they are often unsecured, with rates ranging from 15% to more than 20%. On the other hand, a personal loan is standard in the nation since it helps those in urgent need of money. Loans, which are often used to purchase people’s durables, weddings, medical treatment, or even vacations, are provided by most banks, with minor gaps in fees. But, if a personal loan could be prepaid, people would get many perks. But first, let us define the “pre-closure of debts.” [B-01] What is Pre Closure of a Loan? The total pay of the debt in a single instalment before the due date is referred to as a pre-closure. As a result, rather than still paying many EMIs, people pay the debt amount all at once. This saves people a lot of interest and EMIs they would have had to pay over time. Before they decide on a loan, they must first get consent from the lender. In some instances, lenders may assess a pre-closure penalty to cover the lost interest rates the firm would have otherwise collected. Process Of Pre Closing Personal Loan Pre-closing a personal loan might not be a complex task. Some of the basic actions people may take when pre-closing a personal loan are as follows: Inform the lender that they want to pre-close on the debt. Submit a formal pre-closure form through email or in person at the local branch. Relevant papers, such as ID proof and loan documents, should also be submitted. Following submission, one would be asked to pay for the pre-closure of their personal loan account. The bank will send them an indication letter when the pre-closure has been completed. In a few days, they will get the final pre-closing papers. Perks of Pre-Closing Personal Loans Get out of debt faster People take out a loan to cover some vital bills – now, it’s crucial to pay them back. Yet, the loan might create financial hardship if not aptly handled. Bank loan EMIs could eat into monthly savings. This is why, if one has extra money, it is often suggested that one pay off the personal loan in full. They may be charged a prepaid fee as they repay the loan. Boost the credit score: People reduce their money load when they pay the total or partial loan. This improves their credit score since existing debts are closely related to their credit score. The credit score improves when the existing loan balance is lowered or paid off by a partial or complete pre-payment. This increases the chances of obtaining another loan. Pre-payment results in lower rate outflow: The holding period is one of the most vital things to keep in mind regarding loan pre-payment. This is when the lender doesn’t allow the client to make any instalments, whole or partial, towards the loan amount. Yet, after the holding period, when one has some spare cash, they can prepay the loan in whole or in parts. Debt can be reduced through partial pre-payments: Partial payments can reduce the debt load. When people pay off a portion of the debt loan balance, they reduce the debt load. This also reduces the amount of charge that is charged on the overall debt amount. But, if they want to pay off the debt early, they must aim to do it over the first few years. Is it Reasonable to Make Pre Payments on a Personal Loan? The lending rate is always lower than a user’s borrowing cost. The methods for online loans and offline loans are slightly different. When it comes to online loans, the amount owed is shown in the online account, and people will get an indication as soon as the dues are paid. A NOC (No Objection Certificate) and a loan closure certificate are the last papers vital to complete the pre-closing a personal loan. Yet, suppose users are applying for an offline loan. In that case, they must have all the papers vital for ID validation, such as official ID proof, loan account details, bank records showing the most recently cleared EMI, and a check or demand draft for the debt loan amount. The bank may need extra papers that they believe are vital for the process to be completed. Once all of the papers have been provided by the borrower and approved by the lender, the bank will issue a letter admitting the pre-closure, which must be obtained and kept for future transactions. When the process is finished, the bank would either post or mail a paper saying that the loan has been completed. For example, people may get a mortgage at a 15% rate, but the annual savings would not be over 9% to 10%. At about the same period, they must repay 15% of the rates on the debt loan balance. If people choose to repay, the loan balance may be returned, saving an additional 5% to 6% rates yearly. [B-02] Conclusion It is time to obtain fast money to satisfy that urgent financial demands, personal loans are often the first choice people consider. Personal loans are incredibly handy, particularly in an emergency, and their interest rates are often greater than any other kind of secured but unsecured loan. No matter how practical and easy asking for a house loan seems, there are always certain concerns about borrowing. When it comes to personal loans, borrowers’ most common concerns are about the service fees, interest rates, and other expenses that may be imposed. Other factors that make people sceptical include pre-closure and personal loan payments. Once the borrower has finished the pre-closure process, the lender will produce a credit report that reflects one’s financial state and stability. Lenders use this credit score to measure credit and set up loan conditions and terms. Following the pre-closure, lenders will be ordered to update the credit file to CIBIL, where all credit data and reports are kept. This is an essential step in completing the process. Visit Piramal Finance to learn more about personal loans and explore different products and services.
08-11-2023
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Personal Loan

What Is A Processing Fee For Personal Loans?

You may consider personal loans a great financial instrument to cover your costs. However, a personal loan has additional fees in addition to interest. In addition to processing costs, lenders impose several extra fees on the sum of personal loans. Before considering the Processing Fee for a Personal Loan is crucial. Therefore, before applying for a loan, whether offline or through a personal loan app, you must inquire with your lender about and take into account any fees that will be associated with it. Let’s explore the meaning of the processing fee for a personal loan and the justification for personal loan lenders charging it. [B-01] Introduction to Processing Fee For Personal Loan Lenders provide personal loans to borrowers to ensure they have enough money to pay their bills. However, the sanctioning and disbursement of the loan money into the borrower’s bank account involves several procedures, one of which is loan processing. In this phase, the lender processes the borrower’s loan application and examines their supporting documentation. In addition, processing a loan entails going through administrative procedures to establish a binding legal agreement between the borrower and the lender. An administrative fee for processing a borrower’s loan application and establishing a binding loan agreement is imposed by the lender on the borrower as compensation. A processing fee for personal loans typically amounts to 0.5% to 4% of the sanctioned amount and is based on the loan amount supplied by the lender to the borrower. Lenders must now legally add GST to the loan processing cost due to the adoption of the GST. Common Charges for Personal Loans Processing Fees A bank will spend money processing a loan that is connected to the administration. Typically, this amount ranges from 0.5% to 4%. There are variations in the processing costs for personal loans between banks. When applying for a personal loan, the borrower has two options: (I) pay the processing charge up front, or (II) have it subtracted from the loan amount when it is disbursed. Verification Charges Before approving the loan, a bank must be confident that you can repay it. They employ a third-party business to examine your credentials to do this. Your credit record and loan repayment history is examined. The expenses involved are an added cost that impacts the bank and must be paid for by the borrower. This outlay is thought of as a verification charge. GST For any additional services required during the loan application process or loan repayment period, the loan applicant must pay a small fee in the form of GST. Prepayment Penalty You pay interest on the Loan, which is how the banks make money. Your bank might suffer a loss if you pay off your debt earlier than the agreed-upon duration since you would be paying off your loan early. Your bank could charge a prepayment penalty on you to make up for this loss. Penalty on late payment of EMIs When a person takes a loan, they must pay it back in EMIs or equated monthly instalments. The borrower is in charge of ensuring that the EMIs are paid on schedule. If you fail to pay an EMI payment, you will be penalized. As a consequence, it is critical to plan your finances and loan conditions correctly, as well as to establish the EMI amount in advance. The Procedure of Charging Processing Fees Processing Fee For Personal Loans may be assessed in various ways by various lenders. For instance, online lenders follow the policy of subtracting the processing cost from the loan amount at the time of disbursement. Some other lenders cash your processing fee check after your loan is approved. The processing costs can thus be requested in advance or subtracted from the loan amount when the lender disburses it. Again, you should be on guard if the lender tries to cross-sell you any other products, such as insurance or a credit fitness report, as a condition of obtaining the loan. The best course of action is to compare your lenders’ fees to those of other lenders offering the same loan amount in the market. Eligibility for Personal Loans Age: You should be between the range of 21 and 45. Employment: When applying for a personal loan, you should have a full-time job in a private or public organization. Work experience: Additionally, you will need to have a minimum of six months of work experience. Tenure: This position should be retained for a minimum of three months. Income credit: Your bank account should be credited with your income. Paycheck: If you work and live in a Tier-I city, your monthly take-home pay should be at least Rs. 20,000. A Tier-II applicant’s take-home pay must be greater than Rs. 15,000 per month. Get a Personal Loan with Piramal Housing Finance You can analyze and compare personal loans from various lenders based on their fees and their effect on your finances when you take out the loan. Piramal Housing Finance is India’s top financial services provider and offers comprehensive and personalized personal loans to meet your funding needs. To calculate your repayment requirements, use the personal loan calculator. We have a group of knowledgeable advisers that can assist you throughout the full application procedure, assuring prompt approvals and quick disbursement into your account. Conclusion Even with these fees, a personal loan may be a valuable source of funding in times of need. Learn from Piramal Housing Finance how a personal loan might save you in the appropriate circumstances. If you are looking for more advice on personal loans, reach out to us today. [B-02] FAQs Does the processing cost come out of the loan amount? It is a one-time cost that is usually paid in advance. The processing fee is often only assessed following the approval of your application. Are processing charges allowed by law? Yes. The card brand or card product, but not both, can be used by merchants to impose different fees.
08-11-2023
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Personal Loan

Decoding the Four Pillars of Personal Finance

Money isn’t everything. But it’s vital to manage it to stay out of debt. One should maintain a budget and spend less than the budget since there is nothing known as “good debt”. The four personal finance pillars give people and couples a structure for handling their finances. All lifestyles, income levels, spending limits, credit card debts, and total wealth are compatible with this system. Income, expenditures, assets, and debts comprise personal finance‘s four pillars. The money foundations will be solid if all four pillars remain functioning properly. Let’s learn more about each of them in detail. [B-01] What is Personal Finance? Personal finance defines the control of money by a person. It is in terms of saving, spending, and investing to fulfill long-term and short-term goals. This is vital since it allows for the freedom and control of one’s lifestyle planning. To cover all issues, it contains themes such as budgeting, mortgages, tax planning, and so on. Personal finance is not a subject taught at school or that anybody can learn. It is something a person learns by experience and should learn from an early age to prevent future problems. Personal financial planning often refers to the whole sector that offers services to people and families, including financial advice. A person’s goals and desires, as well as a strategy to meet those needs within their budgetary limits, influence how they handle the issues listed above. They must become smart with money to make the most of their earnings and assets. Personal financial planning will enable them to discern between good and bad advice and make sound financial choices. The Four Pillars of Personal Finance Let us now look at the four pillars of personal finance. Assets When it comes to personal finance, assets are everything that can be converted into money. Houses, stocks, bonds, mutual funds, vehicles, and cash are all examples of assets. While they vary in liquidity (how long it takes to convert to cash), they all have money’s worth. Assets are one of the main inputs for net worth. When debt is subtracted from assets, net worth, or even the liquidation value of everything one possesses, it is left. Debts Debt refers to any amount owed to other parties. Perhaps one has credit card bills, a mortgage, or school loans, all of which have a monetary value. In other words, it would cost a specific amount to reduce them. Debt isn’t always a bad thing! Even more so when debt is used to build an asset, like a house, or to learn something new. When choosing debt as financing, people should always set an upper limit. The aim should be obvious: the assets must grow over time. Income Income is defined as all the money earned during a specific time. People have the option of paying monthly or annually. Though a monthly task is advised to manage cash flow, keeping track of revenue and spending can assist people in meeting short-term goals. Income is divided into two categories: Disposable income: the money that remains after paying the state’s taxes. It is used to cover daily expenses. Discretionary income: after paying for the basics, discretionary money is what remains. Expenses Expenses include all the money spent. This is self-explanatory for monthly costs such as transportation, food, rent, and bills. But don’t forget to include one-time costs like haircuts, vacations, car repairs, and gifts. Setting a budget and keeping track of all rupees spent will help you stay on track by providing an exact total of the spending. Four Basic Rules for Personal Finance Now that the four pillars of personal finance have been covered, let’s discuss the four rules to follow to attain freedom through personal financial planning. Spend less than what is earned This one may seem obvious, but one would be amazed at how many people overlook it. If one spends all that they earn each month, they will never be able to have freedom. Worse, one will constantly be in danger of financial difficulty. Any little hiccup, such as a dental crisis trip, might derail one and put them in more debt. Live within limits and set a nice budget, such as the 50/20/30 rule. It would help if one also looked for ways to boost revenue. Create a crisis fund The expense of living on less than one earns allows one to create a crisis fund. This crisis fund can help weather life’s storms, like losing a job, having the vehicle break down, or visiting the doctor, without relying on high-interest credit cards or loans, which will put one further in debt. Save at least three to six months’ worth of spending. Make debt payback a priority It’s not like all debts are bad, but how people handle them often leads to issues. Poor debt control, like late payments, will hurt a person’s credit record. This might have bad effects if one applies for more loans in the future. Debt may also be stressful since one is concerned about making payments and other expenses. The sooner one becomes free of debt; the less worried one will be. This will result in more scope because one will have to spend the money on tasks they like without worrying about interest payments. One should remain out of debt after being freed from the debt cycle. Clarify between wants and needs Desires are objects and services that are great to have but one could live without, such as luxury cars and watches. Needs are things one needs to live a healthy life, such as shelter, food, water, and healthcare. Combining these two ideas may cause monetary chaos. As a result, don’t trade safety for desires. [B-02] Conclusion Understanding money is not as difficult as people make it out to be. It is apparent and crucial. The path to money literacy begins with the basics, which one cannot neglect due to other fancy things. Try teaching these vital things to be free of debt. Pillars are an architectural system employed in the making of structures. These are used to provide a solid basis for the construction. The same is true for money. One cannot excel at personal finance until one grasps the basic aspects of it. For a promising future, the load of a good life lies on four pillars. For more related information and exciting blogs, visit Piramal Finance and explore their products and services.
08-11-2023
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Personal Loan

Should You Take a Personal Loan to Repay Your Home Loan?

Buying a home is one of the most essential and life-changing decisions for everyone. It is also one of the most significant financial and emotional investments. So, when someone buys their dream house, they may spend a little more than planned. Home loans are fantastic, but sometimes it is hard to make a down payment when unprepared. This is especially the case if one doesn’t want to break their assets or if the house value is too expensive. If someone is in a similar situation and is thinking about getting a personal loan for a down payment on a home loan, read this article to find out if it is a good idea. This article will examine the pros and cons of a personal loan to help people decide if they should use a personal loan to repay their home loan. [B-01] Pros of Taking a Personal Loan for Home Loan Quick access to money People know that getting a personal loan is quick and easy. The lender will send a confirmation once the borrower has completed the application and uploaded all the required documents. After checking the profile and documents, the lender will decide whether or not to grant the loan. And one significant benefit is that all the information about the loan application is sent through emails and/or texts. After submitting all the relevant paperwork, the lending process usually takes 2-7 days, based on the lender’s requirements. Once the money is approved, it can take another one or two days to get it. Before looking elsewhere, a borrower should find out if their current bank has personal loan options. Many banks now offer personal loans that have already been approved and qualified based on a person’s credit history and relationship with the bank. If one wants to apply for a personal loan online with one of these pre-approved offers, the money could reach their account in just a few minutes. Flexible repayment term A personal loan has a flexible repayment period of 1 to 5 years. The borrower can choose this based on his or her needs and preferences. In certain situations, the term can be extended up to 7 years. Also, some small-amount loans through fintech apps can be paid back in 6 to 24 months. Most of the time, though, they are small loans with high-interest rates. No collateral The best part about a personal loan is that one doesn’t have to put up assets as security as is required with a home loan, car loan, loan against property, etc. A guarantor is not required for a personal loan. No need to break invested funds One can sell their investments or borrow from friends or family when they do not have enough money. If they invested as part of a long-term plan for their money, it might not be a good idea to break it. In this case, a personal loan will help. The tax situation Paying back a personal loan does not give a person any tax breaks. But if one uses a personal loan to repay a home loan, they can deduct up to Rs. 2 lakhs per year in interest payments from their taxes. Cons of Taking a Personal Loan for Home Loan Processing charges Most banks and NBFCs charge a portion of the loan for processing. Most of the time, this fee is higher than the one charged for a secured loan. This means that the borrower gets less than what they asked for. A high rate of interest Personal loans tend to have higher interest rates than other types of loans. This is mostly because they are not secured by anything. The 12–20% annual interest rates are 2-3 percentage points more than typical loans. This could make it harder for people who do not have enough money to pay back their loans. Strict rules When it comes to who can get a personal loan, lenders follow very strict rules. Most banks and NBFCs will not even look at an application unless it meets a certain income level. In addition to the applicant’s income, their credit score is also looked at. A poor or average score could cause an application to be turned down. Payment rigidness Borrowers can choose their repayment period. But, most lenders will not let them change it later on. People cannot pay off their loan early or in parts. Instead, they have to pay the full amount. Also, not paying the EMIs on time could lead to legal action, making things harder. Should you Take a Personal Loan or Not? A personal loan has a lot of benefits and it may be tempting to use it to repay a home loan. But, it must be kept in mind that it is the most expensive loan, and one should consider all other options before choosing it. Most people are afraid of breaking their investment funds. Investments ensure a safe and sound future for oneself and their loved ones. If somebody does not want to compromise on their investments, it is in their best interest to choose a personal loan. They can search for the best personal loans and negotiate with their current lender or bank. [B-02] Conclusion Let’s say a person has not saved enough money for a down payment on a home loan. In that case, they might want to take a personal loan. But it must be remembered that a good rule of thumb for borrowing is that people should be able to pay at least 20% as a down payment on a new loan to make payments easier. To learn more about taking a personal loan or a home loan, visit Piramal Finance for information and guidance.
08-11-2023
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