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Personal Loan

What Happens to a Personal Loan if the Borrower Dies?

No one wants to borrow money to make ends meet. Nevertheless, due to unprecedented circumstances, many have to seek external help to fulfil their monetary requirements. While some have to borrow money to finance their education, others take out loans to repay their other loans. The number of people borrowing personal loans continues to increase because of their fast payments and easy procedures. But what happens to a personal loan after the death of a borrower? Personal loans are unsecured loans that are not lent based on collateral. An attractive CIBIL score is required to get a personal loan. Consequently, the question that hovers around is how banks get their money back when a borrower dies. This article answers these questions by expounding on essential details about the subject. Keep reading to learn more about personal loans and the death of a borrower. [B-01] Why do more and more people take out personal loans? Financial requirements are often urgent. Apart from the simplified payments, several other factors make personal loans popular among borrowers. Fast Processing: One of the major reasons why people opt for personal loans is fast money processing. Banks usually credit the money in the borrower’s account within 24 to 48 hours. Easy to Avail: Personal loans, unlike other loans, do not require a lot of documentation, which makes it easier for people to avail of them. One only has to submit documents like identity proof, ITR statements, address proof, and income proof. Competitive Interest Rates: Borrowing personal loans has become easier as various banks are now offering them. Many lenders provide them at attractive interest rates, giving borrowers a chance to apply for the lowest one. Simple Repayment Process: Personal loans are, furthermore, easy to repay, which makes them the favourite of many. The buyer can choose the repayment tenure from one year to five years based on comfort and ease. Multi-purpose: Unlike other loans, like home loans or car loans, personal loans do not restrict the borrower from using the money for a specific purpose. On the contrary, these loans can be used for any purpose. Many borrowers even use the loan money for debt consolidation. What happens to a personal loan upon the death of the borrower? Personal loans are unsecured. As a result, upon the unfortunate demise of the borrower, lenders cannot auction the belongings to recover the loan amount. Furthermore, in the case of an unsecured loan, family members could also not be asked to repay the money. However, there are several measures that a lender can take against a personal loan if the borrower has died: Sometimes, there is a co-applicant on the personal loan. If the borrower has died and the application has a co-signer, then the bank has the right to recover the loan amount from this co-signer. If the borrower had insurance before his demise, then the insurance company is responsible for the repayment of the personal loan. If the legal heir of the borrower willingly becomes the co-applicant and agrees to repay the loan, then the bank gets the amount back from the legal heir. However, banks cannot force the heir to repay the amount. If none of the above-mentioned methods works out in the banks’ favour, the lenders write off the amount to the NPA account. Repayment of the Personal Loan after the Death of the Borrower After the unfortunate death of the borrower, the family or the co-applicant of the borrower must know the necessary steps for the repayment of the loan. After the demise of the borrower, a family member or a co-signer needs to inform the bank about the death to avoid the loan repayment continuing on normal terms. Once informed, if you are a co-applicant, you will be responsible for the repayments. On the other hand, if you’re a family member, you can request the lender settle the amount. In the next step, the bank will check if the borrower has an insurance policy. In the case of a policy, the insurance company will be held liable to pay the amount back to the lender. If the borrower did not have any insurance, then the bank checks to see if the borrower left any assets or properties for its legal heir. If yes, the bank can file a suit to recover the amount of the loan. If the loan amount is still not completely repaid to the bank, then it proceeds to write off the loan to the NPA account. [B-02] Wrapping Up Death is inevitable and uncertain. However, when there is the death of a personal loan borrower, the loan repayment process changes. As personal loans are unsecured loans, banks cannot auction the person’s assets or property to get their money back. However, if there is a co-applicant, he or she can be held responsible for the repayment. In case of no co-signer, the insurance company bears the responsibility to pay back the amount. Nevertheless, if the borrower did not have an active insurance policy at the time of demise, then the bank ultimately writes off the loan in the NPA account. When buying a personal loan, reading the terms of the loan is indispensable to avoid any misunderstanding and unnecessary burden while paying off the amount. Personal loans can be messy at the death of the borrower; consequently, it is always better to choose a bank that is transparent about its terms and conditions. To read more such articles, visit the Piramal Finance website.
08-11-2023
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Personal Loan

How to Get a Personal Loan Easily in 2022?

Most of us plan our budgets carefully by keeping track of our income and expenses. But sometimes an unexpected expense might crop up and create chaos. Dealing with such a situation is difficult as you need to gather funds in a short time. Most people try to arrange funds by asking their family and friends. But there is no guarantee that you will be able to gather the required amount. Taking a personal loan is a better option in this situation. There are many banks and private lenders who are now offering personal loans to their customers. [B-01] The entire loan process gets completed within a couple of days. You do not need to show any collateral in the application process. Most loan applicants use their loan amount immediately. People usually apply for a personal loan when they have certain expenses, like Paying educational fees for their children. To pay for wedding expenses. For religious activities. To cover the cost of medical bills. To buy high-value items and electronics. Before you apply for personal loan, first check whether you are meeting the eligibility criteria or not. These criteria may slightly change from one bank to another. Some common eligibility criteria that you are expected to meet are Applicants must be Indian citizens over 21 years of age. They must have a steady source of individual income. They should be employed or self-employed. Should be able to provide proper income proof. Applicants must possess government-issued ID and address proofs. Documents needed for submission You need to submit a few documents with your loan application. The bank uses these documents for verification. Your income sources, spending habits, and debts are checked as part of the loan process. Some documents that you may need to submit to get a personal loan are listed below. Payslips or Income Tax Returns: A personal loan can only be taken by a person who has a steady source of income. Salaried employees need to submit their payslips for the past six months. Self-employed people can submit their income tax returns along with copies of their balance sheet and income statements. These copies need to be inspected by a chartered accountant before submission. Bank Statements: You may also need to submit your bank statements for the past 6 months. The bank will reimburse them for any undisclosed loans and EMIs. Address and ID Proof: You will need to submit documents as proof of your address and ID. Aadhar, passport, and voter ID are widely accepted by banks for address and ID proof. How to get your personal loan approved fast Most personal loans get processed within a day or two. But sometimes the process gets delayed. This happens when you do not follow the correct procedure while applying for a loan. Some common mistakes that people make when they apply for personal loan are submitting an incomplete loan application having unclear transactions submitting wrong documents Banks will not process loan applications that have such issues. Check your loan application carefully to avoid delays. You can also follow these tips to get your loan approved faster. Submit the correct documents – Keep all your documents ready before you start your application process. Verify your information and ensure that the copies are clear. Check online – Most major banks are now offering loan services online. You can apply for a personal loan and get the amount credited to your account within a few hours. Check your credit score – If you have a good credit score, your loan will get approved faster. Check your credit score on CIBIL to understand how much you are eligible to get. You can also improve your credit score to get a higher loan amount. Regular payment of EMIs and credit card bills will help to improve your score. Maintain proper bank balance – You may be asked to submit your bank transactions for the past six months. These statements are checked for hidden loans, or EMIs. Large deposits or sudden withdrawals are also looked into as part of the loan process. If there is any suspicious activity, then the bank will reject your application. You should be mindful of your financial activities when you apply for a loan. Choose your bank – It is not advisable to apply for a personal loan from more than one bank. When you apply for a loan at different banks, your intentions become uncertain. As a result, your loan application may be rejected. Avoid this risk by choosing which bank you want to take your loan from. Compare the interest rate and EMI at different banks before selecting the best one for yourself. Multiple applications – Some people apply for loans at different banks within a short time. They think that they can increase their chance of approval. But, this has a negative effect on their application status. Banks now have the resources to check where else you have applied for a loan. Multiple loan applications are seen as a sign of deceit and are rejected. Show all income sources – You should show transparency while submitting your income documents. Do not hide any financial information from your bank, as this may delay your loan processing. Always give the correct documents that show all your income sources. Agreement signing – The last step is the signing of the agreement. Your loan agreement will contain loan details like interest rates and EMIs. You should sign your loan agreement as soon as it is ready. You will receive your loan amount after signing your agreement.Some people delay signing the loan agreement to check for better options. But this will result in a delay in getting your money. [B-02] Conclusion Although you can take out a personal loan easily, there are a couple of things you need to consider. How much EMI can you afford, and what is the loan’s interest rate? It is a good idea to compare personal loan offers from various banks before you begin applying. To get expert advice, visit Piramal Finances at https://www.piramalfinance.com/personal-loan
08-11-2023
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Personal Loan

Should You Get A Personal Loan To Buy A Second-Hand Car

Sometimes it’s hard to get approved for a loan for a car. It may be challenging to get a car loan if the existing owner is still in possession of the vehicle because banks typically want to inspect and verify the vehicle before approving the loan. Or perhaps you’re still in the market for a car but haven’t made up your mind. You know how much you’ll need to spend on the vehicle you want. Getting a personal loan to go towards the down payment on a used automobile may be the most convenient and best choice. Once you’ve settled on purchasing a new or pre-owned vehicle, the next big question will likely be what financing you should apply for. You can get a personal loan or a loan for a car from a financial institution to pay for it. Select the loan that meets your needs in terms of convenience, affordability, and flexible credit requirements. Given these criteria, which of the two loans remains consistent? Continue reading to find out the same thing. [B-01] Considerations while taking a personal loan Rate of Interest: It determines the overall cost of the loan to the lender. Rates for unsecured personal loans typically range from 11% to 24% annually. Loan Amount: Personal loans can be funded up to the whole deal amount for those who qualify. Depending on the terms of your agreement with the seller, the total cost of the transaction could be the car’s current market value or some other amount. Credit Score: When you apply for a personal loan, the lender will check your credit history. A unique loan application is more likely to be denied if your credit score exceeds 700. A higher interest rate is expected in the event your loan is accepted. However, the requirements for a good credit score may be less stringent when getting a loan for a used car. Loan Disbursal: Faster disbursement is possible for personal loans instead of used cars. Banks often fund borrowers’ accounts for unsecured loans within two to four days. However, personal loans that have already been accepted can typically be distributed within hours of approval. Alternatively, a used car loan could take up to a week to process. Your chosen lender also affects the time it takes for your loan to be disbursed. Documentation Process: The paperwork process while opting for a personal loan for a car is amazingly seamless as compared to a used car loan. You can get a personal loan by submitting your KYC documents, while it may take a few more documents to get a used car loan. Loan Term: Most lenders allow for repayment over a maximum of five years; however, some go as high as seven. So, when you apply for a personal loan to pay for a used car, you can choose a loan term based on your ability to make the monthly payments, no matter how old or in good shape the car is. Quick Approval: Because personal loans are unsecured, getting approved for one is much simpler and faster than getting a car loan. Purchasing a used vehicle from a disorganised operator in the pre-owned auto market might add unnecessary complexity to the loan application process. The application procedure, approval time, and loan disbursement will all be quick and easy. Low-Interest Rates: Personal loans are available from several public-sector institutions at lower interest rates. However, the ultimate personal loan interest rates made available to candidates mainly depend on their credit rating, monthly income, employment status (if employed), and other factors. Banks Interest Rates (p.a.) Personal Loan SBI 10.30% -15.10% Axis Bank 10.75% onwards HDFC Bank 11.00% onwards ICICI Bank 10.75% onwards Bank of Baroda 10.20% – 17.55% Documentation Needed Personal loans will require very little paperwork; the most significant part is that you don’t have to send or upload anything to us. The whole authentication procedure can be completed in a web browser. To apply for a used car personal loan, you’ll need the following items: Completed and submitted the application form. Passport-size photo. Documentation proving one’s identity, such as a driver’s license, passport, or official government ID card. Documentation of residence, such as an Aadhaar card, voter card, passport, driver’s license, etc. Documentation of the monthly paycheck. Personal Loan For Car At first, a personal loan might seem better than a loan for a used car. But if you have a low credit score, your chances of getting a personal loan are much lower. The application process for a personal loan is straightforward and focused on the customer’s needs. Also, the personal loan EMI calculator helps you better organise your budget after you’ve used the eligibility calculator to determine that you qualify for a loan. [B-02] Conclusion Both personal loans and loans for cars have their pros and cons. Personal loans are an option if you want to borrow a larger sum at a reduced interest rate. This may also be effective if you want to buy a car from a friend or if the car is really old and thus doesn’t have particularly favourable interest rates for a used car loan. At Piramal Finance, we are always there to help you if you need help with personal loans while buying a car.
08-11-2023
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Personal Loan

What is a prepayment penalty?

Personal loans have seen a huge rise in recent days. More and more people are going for personal loans, especially after fintech companies appeared on the scene. The easy availability of funds and credit through these new-age finance companies has soared the personal loan market. You can now avail yourself of personal loans with just a few clicks. Further, the benefits that a personal loan carries make it a go-to funding option at any time. However, many people prefer to prepay such loans even though banks levy a prepayment penalty on personal loans. What is the prepayment penalty? Is prepayment beneficial? Let’s find out! [B-01] What is the prepayment of personal loan? Personal loans are short-duration loans. The tenure usually ranges from 1 year to 5 years. But many a time, people end up taking personal loans for a longer tenure than required. Once their purpose is fulfilled and they have sufficient funds available, they repay their loans in advance of the actual due date. This is known as the prepayment of a personal loan. Prepayments are of two types: Part- or partial-prepayment: Here, only a certain portion of the personal loan is prepaid. For instance, if the principal outstanding is Rs. 5,00,000 and you prepay Rs. 1,50,000, then it will be considered part of the prepayment of a personal loan. Full repayment: Here, the entire principal outstanding is repaid before the term of the loan expires. Continuing the above example, if the entire amount of Rs. 5,00,000 is repaid, then it will be considered a full prepayment. Whether prepayment and foreclosure are different You might have come across the term “foreclosure” as well. Prepayment and foreclosure are two different things. Prepayment is usually used to indicate partial repayment of a personal loan. But foreclosure occurs when the remaining loan amount is repaid in full. It is the legal term to denote the closing of the loan before the loan term expires. Full prepayment forms part of the foreclosure. Another way of foreclosing is when you transfer your loan from one bank to another. Borrowers usually transfer their loans from one bank to another because of lower interest rates, better terms, etc. In such a case, the second bank pays the outstanding balance to the original bank. The borrower will then repay his loan to the second bank. Benefits of prepayment Following are some of the key benefits of prepayment: Eliminates Debt: Prepaying your personal loan helps you eliminate your debt if you make a full prepayment. Even if you make a partial prepayment, your debt can be reduced to a great extent. Savings on Interest Cost: Personal loans carry a huge interest rate. Prepaying your personal loans can help you save a tonne on interest costs. Personal loan interest rates start at 12%–14% and can go as high as 18% per annum. Hardly any asset class provides that kind of return. As the saying goes, “each penny saved is a penny earned.” Prepaying your personal loans can help you save on such high-interest costs, which are equivalent to earning such high returns. Better Interest Rates: If you go for transferring your personal loans to another bank, then you can earn better interest rates and get better terms for your personal loans. This is the sole reason why many people go into foreclosure on their loans. Impact your Credit Score: Prepayment reflects positively on your credit report. If you prepay your personal loans, it can increase your credit score. Better Chances for Loans in the Future: If you prepay your loan, your outside liability gets reduced. Therefore, it opens the door for more credit access in the future. While availing of loans, your current debt obligations are considered. They might impact the amount of loan that you can borrow or the interest rate. You can avail of a higher loan amount in the future because of more disposable income in your hands. Prepayment Penalty on Personal Loans Prepayment penalty on personal loans varies among different banks. Most banks levy prepayment charges only for a specified period. Beyond that, there are no charges for prepayment. Furthermore, charges for partial repayment and full repayment may differ. Also, certain banks waive the prepayment penalty on personal loans if the loan is transferred to another bank. Usually, the prepayment charges range between 1% and 4% of the amount being prepaid or the principal amount outstanding. Should You Go For Personal Loan Prepayment? You need to consider various factors before opting for personal loan prepayment. These factors include the following: Prepayment Penalty: What is the prepayment penalty on personal loan that the bank is going to charge? You need to understand this before going for prepayment. Go through the sanction letter or loan documents to know the prepayment penalty. Principal Amount Outstanding: What is the principal amount outstanding? If it is only a nominal amount, prepayment will not provide much benefit. Current Interest Rate: What is the current interest rate that you are paying on your personal loan? You should consider prepayment if the interest rate is too high. Otherwise, you can consider investing the excess funds that you have. Tenure Remaining: What is the loan tenure remaining? Again, prepayment won’t be very beneficial if it’s only for a few months or a year. Mode of Prepayment: How are you going to prepay your loan? You might be considering transferring your loan to another bank. But you will have to pay processing fees and other charges. Opportunity Cost: The opportunity cost of not prepaying your loan is the investment opportunity that you missed. So, the interest you save through prepayment must be higher than the returns you could have earned from investments. [B-02] Conclusion The prepayment penalty on personal loan makes it important to carefully consider whether to prepay or not. Considering the above factors will help make the same decision. Visit Piramal Finance now for more useful information!
08-11-2023
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Personal Loan

FOIR: Meaning And Effect on Personal Loan Approval

Loan credit managers at financial institutions use different methods to determine loan eligibility and risk factors. In this way, FOIR is a valuable tool for lenders to assess the borrower’s ability to repay the loan and avoid default. The ratio also helps lenders understand applicants’ risk profiles and make better financial decisions. The fixed obligation to income ratio, also known as FOIR, is a metric used to determine your chances of getting a loan. The lower your FOIR, the more likely it is that you will be eligible. [B-01] What Makes FOIR a Vital Parameter? FOIR is also referred to as the Debt Service Coverage Ratio (DSCR). This is the ratio between your monthly income and your monthly debt payments, including all loans and credit card payments. A high FOIR means that you’ll have a harder time getting approved for a loan because it shows that you’re already spending more than you earn. A low FOIR means that you have room in your budget for new debt payments, which makes it easier for lenders to approve your application. What Are Fixed Obligations? Fixed obligations are the bills that you have to pay every month, like your rent or mortgage payment. It also includes debt like home loans, car payments, and credit card bills. Fixed obligations are the most important factors that lenders look at when deciding whether to approve or deny your loan application. If you have too many fixed expenses, it can mean that you won’t be able to afford other financial obligations, like making payments on any new debts you take out. How FOIR is Calculated? The fixed obligation to income ratio, or FOIR, is a measurement of your monthly expenses and income. It’s calculated by taking the total amount that you spend in a month and dividing it by your gross monthly income. While this seems simple enough, certain factors can skew your FOIR calculation and make it difficult to determine if you’ll be approved or not. The first of which is the nature of your expenses, such as mortgage payments, car payments, and credit card bills. Other fixed expenses like rent or utilities are all included in the calculation of FOIR. However, variable expenses like groceries and gas aren’t considered part of this calculation because they fluctuate with usage over time. Another important factor to consider when considering whether or not you’ll qualify for a personal loan is how much money is currently being paid toward debt. If these types of payments are keeping you from having enough money left over after paying the minimums on all debts combined, then it’s unlikely that any lender will approve a new loan. For example, if you make Rs. 50,000 per month and spend Rs. 40,000 on expenses like rent, groceries, and utilities (not including loan repayments), then your FOIR is 80%. This means that you don’t have enough money to cover all of your expenses and would likely be rejected for a loan if you applied now. Factors Affecting FOIR If you want to check whether or not you qualify for a personal loan based on this ratio, then some factors need to be taken into consideration: The first factor in a personal loan is how many dependents you have. The more earning members of your family you have, the better your chances are of getting a loan. The second factor is your current salary and other sources of income. All legitimate income can be combined to decrease FOIR and increase the loan amount. The third factor is whether or not you have any past dues on any previous loans. The fourth factor is whether or not there are any other liabilities on top of your current monthly expenses. The fifth factor is whether or not you have any assets that can be used as collateral for the loan. The sixth factor is your current employment status and how long it has been since you started working. The seventh thing to think about is whether or not you have a steady income that can be used to pay for your monthly bills. What are the ways to reduce your FOIR? There are many ways in which you can reduce your fixed obligation to income ratio. Use a co-applicant. You can consider taking a co-applicant with you to reduce your fixed obligation-to-income ratio. You can also consider applying for a personal loan with someone who has a good credit score and can help you reduce the amount of interest that will be charged on your loan. The co-applicant will be responsible for repaying the debt in case something happens to you. Maintain a Low Credit Utilisation Ratio. The best way to handle your credit is to keep your credit-to-debt ratio low. This means that you should only use about 30% of your available credit at any given time. If you have several cards, make sure that the total amount of money owed on all of them does not exceed this percentage. Your credit utilisation ratio is the amount of debt you have compared to your available credit line. If you use all of your available credit on monthly bills such as rent or mortgage payments, car loans, and student loans, you may be considered a high-risk borrower. Prompt Repayments Another important component of a good credit score is prompt repayment. This means that you should pay your bills on time and in full each month. If you have several credit cards, make sure that the total amount of money owed on all of them does not exceed this percentage. You should make timely payments on your credit card bills. If possible, try to set up automatic payments through your bank so that they are taken out of your account on the due date each month. This way, there is no chance of forgetting to make the payment. Avoid Taking Out Several Loans The best way to improve your credit score is to avoid taking out multiple loans at once. You will be given a credit score based on your history, and if you have recently taken out several loans, it will look like you are in financial trouble. [B-02] Conclusion If you follow these tips, you should be able to reduce your FOIR. It will take some time and effort on your part, but it is well worth the investment. For any help during the process, don’t hesitate to get in touch with the experts at Piramal Finance.
08-11-2023
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Personal Loan

Marriage Loan: Why Use A Personal Loan To Fund A Wedding

We all know that weddings are big events that come once in a lifetime. So, everyone wishes to have the style and glitz of a big, fat wedding. They want to make the wedding the most memorable ceremony of their lives. Most people aren’t afraid to spend a lot of money on a lavish wedding. This may cost those people more than they can afford. Also, the trend of candid photography and destination weddings has raised the bar to a different level. Hence, implying that your personal loan for wedding will help to bridge the gap between the present scenario and your dream wedding. A personal loan for wedding will make sure you avoid redeeming your investment or using your savings. Below, we will shed light on the reasons to help you know the importance of a personal loan for wedding. [B-01] Key Reasons to Choose a Personal Loan for Wedding Planning a wedding is a very time-intensive and hectic process. The stress doubles when you have a minimal budget. You want to avoid being in a situation where you face a financial crisis before the wedding. Only a personal loan for wedding can help you out of this situation at such a time. It can provide you with the required amount to take care of your dream wedding. A marriage loan is mainly a personal loan for wedding. You can opt for it to cover every expense related to the wedding. It is primarily a collateral-free loan, which implies that you do not need security against the disbursed amount. Also, the lender will have no say in how you intend to use the funds paid to you in the form of a wedding loan. However, let’s dive into why a personal loan for wedding is a good option to cover wedding expenses. Easy application process We are now living in a digital age. Everything is undergoing digitalization. So, you can easily apply for your personal loan for wedding with just a few clicks. You must provide essential information to your lender. This includes ID proof, name, address proof, salary slips, date of birth, or income tax returns. After that, the lenders will take care of all the paperwork while you start planning your wedding. Quick Funding You can take a personal loan for wedding to fund your wedding without any collateral. You do not go through a lengthy and time-consuming process with reputed lenders. You do not have to “become eligible” for a personal loan for wedding. The eligibility criteria for a personal loan for wedding are also simple. It only takes a few minutes to get approval on a wedding loan. It will be done in a few minutes, right after you submit your application online and get your documents verified. The loan amount is credited to your bank account within a day or two. Monthly Instalments If you somehow find a reliable lender, they will allow you to choose the monthly instalment option to repay your loan. It benefits newly-wed couples. That’s because it allows them to manage their finances. They will only be able to repay their loan once, soon after their marriage. Cover several expenses. The primary reason for taking a personal loan for marriage is that you can use the loan amount to fulfil any purpose, like a medical emergency, buying a car, financial crisis, etc. In the case of a wedding, you can cover all the expenses with the loan, which includes decoration, catering, venue, jewellery shopping, etc. Cover last-minute expenses. A wedding is generally a hassled affair that involves unforeseen expenses. Therefore, you need to be well prepared to handle those situations at your wedding. For instance, we always hire catering services and wedding venues for a certain period. But we may have to pay extra charges if the event extends beyond the specified time. This is a common thing to happen at a wedding, and a smooth marriage loan can handle it easily. Factors Affecting Your Eligibility For A Marriage Loan If you wish to borrow a personal loan or a wedding loan, you must know the eligibility criteria set by your lender. It is essential to read all the terms and conditions to ensure you meet the eligibility criteria. But below, we’ve listed the things that can make or break your chances of getting a wedding loan. CIBIL Score If you have an outstanding loan payment history and a good CIBIL score, you are more likely to become eligible for a marriage loan. If your CIBIL score is 750 or above, your application will be instantly approved. Employment Profile Your lender will verify your profile and your age, work experience, and job security to understand if you meet the eligibility criteria. All these factors will help the lender understand your financial situation and ensure you can repay your loan on time. Debt-to-Income Ratio Your lender will also check your monthly income (whether you are self-employed or a salaried employee). This is done to know if you can repay the loan on time. If you are a salaried employee, your monthly salary must be at least Rs. 25,000. Also, you should have at least 3 to 4 years of work experience. However, the lender will check your existing liabilities, like credit card debt, student loans, car loans, etc. This establishes a debt-to-income ratio. [B-02] Summing Up Availing yourself of a marriage loan is a logical option if you are short on money to cover your wedding expenses. Approaching a trustworthy lender for a hassle-free loan application process is essential. However, get a marriage loan from Piramal Finance and have your loan followed by an easy and quick process. They have a team of professional advisers who will guide you through the application process. This ensures speedy approval and fast disbursal in your bank account. You can get a high-value loan amount with zero foreclosure charges and prepayment.
08-11-2023
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Personal Loan

How To Check Pre-Approved Personal Loan Offers

A pre-approved personal loan is like an instant loan. Only a select few customers are eligible to avail of it. You can get a personal loan with minimum documentation. There is no need to furnish collateral for such a loan. If you have a good credit history, it is easy to get a personal loan. Many banks and non-banking financial institutions sanction pre-approved loan offers. This is done to build awareness among consumers and increase the sale of their loan products. In the case of personal or instant loans, they can be sanctioned quickly, within a day or two. The rate of interest on such loans can differ between banks. [B-01] How To Become Eligible For A Pre-Approved Loan? Banks send out pre-approved loan offers as a promotional exercise. It helps to increase the sale of their loan products. Here are some reasons why a bank may give you a pre-approved loan: You have a good credit score. It makes you a good customer for the bank. Banks may review your credit history with them. You may have a good balance and transaction rate. Again, this makes you a preferred customer for a pre-approved loan. You may have taken a loan from the bank. Also, you may have made quick and regular repayments. Bank may check your rates of income and expenses. Corresponding it with your credit history, they may find you worthy. There are many banks that offer pre-approved loans online. But every bank may give a different loan amount and rate of interest. You will also need to check their processing fee. The repayment tenure of such loans varies from 12 months to 60 months. Features Of Pre-Approved Loan Here are some of the most important features of a pre-approved personal loan. Quick disbursal: You can get the pre-approved loan in less time. If you are an existing customer of the bank, it is easier. Then, funds go directly to your account. Minimum documentation: Pre-approved loans are very hassle-free. They do not require extensive documentation. No security: You can get instant loans without any collateral or security. Different amounts: Banks offer pre-approved loans based on credit history and repayment records. Every individual may be granted different loan amounts. Repayment: Pre-approved loans can be repaid through EMI. If you have an account in the same bank, you can also avail of the auto-debit facility. Charges: You may have to pay certain fees to get a pre-approved personal loan. These include processing fees, EMI bounce charges, penal interest, foreclosure charges, and more. Benefits Of Pre-Approved Loans There are many benefits of a pre-approved personal loan. They make them an attractive option for many borrowers. You can meet your urgent financial needs with such a loan. Pre-approved loans online are sanctioned on the same day. So, you can use that amount for any purpose. A good credit history makes you eligible to get competitive interest rates. Choose your desired loan repayment period. This will help you avoid defaulting on loan repayments. You need not provide any documents if you are an existing customer of the bank. You can easily apply for the loan through a website or mobile app. It is a paperless process that can be completed online. The processing time of the loan is very swift. You can easily negotiate the terms of the loan with the bank. You may also be eligible to obtain special discounts. This could be in the form of lower interest rates, processing fee waivers, and more. Check Whether You Are Eligible To Get Pre-Approved Loan Offers The eligibility criteria for pre-approved loans online are very simple. You are eligible for such a loan if you have a good credit score. Most banks lend pre-approved loans only to existing customers. It is a plus point if you have a clean record of repaying your debts. Banks may consider your existing balance and income status to decide whether you are eligible for the loan. It is advisable to check with your bank whether you are eligible for such a loan. How To Apply For A Pre-Approved Loan? Here are a few steps to follow. They will help you apply for pre-approved loans online. Log in to your net banking account. Check if you are eligible for a pre-approved loan. Submit a loan application form. It is available online and offline. Choose the loan amount and repayment tenure. Bank will verify your request and sanction the acceptance letter. After this, you will get the loan amount in your bank. In some cases, NBFCs may ask for certain proofs. They may be salary slips, KYC details, and more. Is It A Good Idea To Get A Pre-Approved Loan? With a good credit history, you can get pre-approved loan offers from your bank. A good credit score can help you get a loan easily. Such loans may be available only for specified periods. So, check with your bank about the terms and conditions. To ensure that your application is not rejected, make sure you provide complete documents. Also, it is best to enquire about interest rates before taking the loan. You should also check the applicable fees to avoid any hassle later. Also, remember that only because the bank offers you a loan, you don’t have to take it. [B-02] Conclusion Taking a loan is an important financial decision. A pre-approved loan carries many benefits. Getting one such loan can be very advantageous for you. For the best advice on financial services, visit Piramal Finance. It is a premier entity offering multiple lending services. You can visit their website to get more information about all matters related to loans. You can even consult with them for the best personal loan options.
08-11-2023
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Personal Loan

Know 5 Reasons for Personal Loan Rejection

Are you short on cash and considering taking out a personal loan but are unsure about its approval and concerned that it will be denied? If this is the case, this blog is especially for you. Personal loans are among those that get easily approved, but certain reasons may lead to rejection. In this blog, we share 5 reasons to know about personal loan rejection. Knowing these 5 reasons, you can minimise the possibility of your personal loan rejection. Keep them in mind and follow the solutions given. So, here are 5 reasons for personal loan rejection: [B-01] 1. Credit score is lower than required When it comes to loans, credit scores are the most important. They are the first thing the banks or other lending institutions check while looking at the loan application. A credit score is a 3-digit number calculated to summarise the credit history of the person applying for the loan. It is used as an instrument to measure the creditworthiness of the person applying for the loan. A low or absent credit score increases the chances of personal loan rejection. Normally, a credit score of 700 or above is considered good for loan approval. You can get your free credit report online. What can be done? If your credit score is low, take steps to improve it before applying for loans. If you don’t have a credit score, ask your parents or siblings who do have a good credit score to become your guarantors. 2. No stable source of income If you do not have a steady source of income, obtaining a personal loan may be difficult. When it comes to loan repayment, banks and other financial institutions place a high value on financial stability. So, if you change jobs frequently or your income is unstable, it becomes very difficult to secure a personal loan. Freelancing gigs or a new business can provide unstable income options. No stable source of income is among the top 5 reasons for personal loan rejection. What can be done? If you do not have a stable source of income, you can secure a loan from the bank in which you have any kind of account, like a savings account, a fixed deposit, etc. Though there is no guarantee, there are still high chances that you will get a loan against them. 3. Insufficiency of income Another reason for personal loan rejection, similar to the above, is low or insufficient income for loan approval. Lenders think that you have a high chance of defaulting on the loan payment in the case of low or insufficient income. This makes them wary of approving loans for people with low incomes. For example, if your income is Rs. 20,000 and your EMI is Rs. 13000, there is a high chance that your loan will not get approved. The reason is that the lender will think that Rs. 7,000 might not be enough for your other expenses, and then you will default on the loan. You can check your loan eligibility through different eligibility calculations available online. What can be done? If your income is insufficient, you can take a loan against your investments, gold, etc. You can also take loans from NBFCs or other financial institutions. 4. Incomplete information or wrong documentation When you fill out an application for a personal loan, be very attentive to every little detail. Also, attach the correct and required documents only. Another major reason for personal loan rejection is insufficient information and incorrect documentation in the application. It is because incomplete or wrong information or documentation makes the identification of the person difficult. Banks or other financial institutions tend not to approve the loan without proper identification of the person asking for the loan. What can be done? Please first check that your documents are complete and proper. If there is any ambiguity or issue with the documents, correct them before applying for the loan. Also, do not make any mistakes while filling out the application for the loan. Be very careful about spelling and other information. 5. Existing Loans The last in the list of 5 reasons for personal loan rejection is already existing loans. If you already have several loans under your name or as a guarantor, it is a good reason for banks to reject your personal loan. Financial institutions have access to all your credit history, even if you take loans from different banks, NBFCs, or other financial institutions. So, it is also not possible to take loans from different institutions. What can be done? You need to first pay off your existing loans before applying for new ones. If you apply for a loan, you must first check for NBFCs that can give you a loan regardless of your existing loans. Their interest rates are usually higher when compared to the interest rates of banks. You can also check if there is the possibility of getting a loan against investments, gold, etc. [B-02] Conclusion We hope this post helped you understand 5 reasons for personal loan rejections. Knowing these reasons will make it easier to take steps to get your personal loan approved. Contact us if you need help getting a personal loan or applying for a loan. We at Piramal Finance are always there for any financial help or consultation you need. We have been offering different services for over 40 years and offer housing, business, and personal loans, among others. You can visit our website for more information.
08-11-2023
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Personal Loan

How To Check Piramal Finance Personal Loan Statement & Download E-Statement

Taking a personal loan is a big financial decision. If you have taken a personal loan, it is best to check the e-statement regularly. It will show a complete record of your loan transactions. Every bank provides a personal loan statement. It helps you verify the authenticity of every transaction. You can check various details in this statement. One of them is the loan amount disbursed to you. Another is the value of the repayments you have made. It is a summary of all the transactions relating to your loan. The process to complete a loan statement download is very easy. Piramal Finance offers a seamless way to access your loan statement. You can easily download it to check the details anytime you want. [B-01] Which Details Can You Check In Your Personal Loan Statement A personal loan statement helps check multiple details. If you want to know which one of them you can check out with Piramal Finance, then read on to find out more. You can check the details of the scheme that you have availed. The statement displays the loan amount that you have availed. aa It also dictates the repayment tenure chosen by you. You can check whether the interest rate on your loan is floating or fixed. The statement tells you the last date for payment of the next EMI. Plus, it also tells you the amount that is due. The loan statement download process shows a history of all the EMI payments that you have made in the past. If you miss out on any payment, it will show in the statement. Any penalties for late EMI payments will also be shown on the statement. Thus, after completing the loan statement download, you will be able to view every aspect of your loan. Ideally, you should check the e-statement regularly to detect any discrepancies early on. How Do You Check Your Personal Loan Statement? There are multiple ways to access and check your e-statement. Piramal Finance offers you the liberty to stay informed about the status of your loan. Check out some of the best ways to check your loan statement. Log In Portal You can visit the official website of Piramal Finance at the following link: https://staging.piramalfinance.com/customer-service/loan-statement. Here, you will be able to log in easily. Enter your loan ID or loan account number to gain access. You can navigate the website to check out their other offerings as well. After logging in, you will be able to check the complete details of your loan. You can also get the loan statement download option on the same page. It is best to check whether the details displayed here are correct. Mobile Application Piramal Finance offers its very own mobile app. All you need to do is download the app on your phone. You can use your credentials to log in to the app. The mobile application offers a separate section for viewing e-statements. In addition, you will also be able to view other details on the app. Email ID If nothing else works, you can send an email to the bank. Through this mail, you can request the details of the personal loan statement. Upon request, the bank will send the loan statement to your registered email ID. This facility is very useful in case you do not have access to the mobile application or the web portal. Reach Out To Customer Care You can reach out to the customer care executives at Piramal Finance. They will help you obtain the details of your e-statement. All you need to do is give them a call. The executives here will help you get the desired loan statement. Offline If online methods do not work for you, then you can access your loan statement offline. You can visit the nearest branch of Piramal Finance near you. Once you are here, they will help you with any details that you need. When you check your loan statement after downloading, make sure that it is complete. It should include the following details: Statement Number The loan statement will be mailed to you once a month. Each time, it will contain a statement number. This number will tell you about the series of statements. Rate of interest This is the current rate of interest applicable to your loan. The current EMI will be payable at this rate. If the rate changes, details of them will be mentioned in the statement. Account Summary This is a snapshot of your loan account. It will show all credit transactions. Plus, it will also show the amount of debt owed at the time of the statement. Details of Repayment This section will tell you about the number of monthly EMIs that remain to be paid. You can also check the details of the EMI that you have already paid. The balance of your loan will continue to come down as you continue to repay the EMIs. The remaining balance of the loan You can also check the balance of the loan that remains to be paid. As you continue to make payments towards EMI, this will fall. Other Information Information about any reversal redraws, etc., will be available in this section. [B-02] Conclusion Piramal Finance is a premier lending institution. If you have been looking for a hassle-free source of loans, then this is a good option for you. Get many benefits with your loan amount right here. Also, check out their website to understand every financial aspect of your loan. Over here, you can explore several loan options. Also, you will be able to connect with trained professionals. They will help you choose and get the best loan option that best suits your needs.
08-11-2023
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