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Personal Loan

What Factors Decide Your Personal Loan Eligibility

Personal loans are unsecured credit that you may get from NBFCs. You can also obtain it from other financial organizations. Organizations give these loans based on different factors. These will include: the borrower’s income level capacity for repayment occupation credit history. You can meet the requirements by securing loans from various financial institutions. But the lenders will set specific eligibility criteria for a personal loan. It will help them decide if they can get a personal loan. [B-01] Considerations that Go Into a Personal Loan Eligibility Check Your eligibility for a personal loan depends on some important factors. Here are some of them: Age Age is the most critical factor in determining your eligibility for a personal loan. The lender will consider your age when you apply for the loan. It provides proof of your financial stability and earnings history. When you are in your early twenties, you may be earning less. But, over time, it will increase as you grow older. In the same way, your earning potential may decrease once again if you are older than sixty. Salaried people between the ages of 21 and 55 are likely to get personal credit. Money Received Every Month Your lender will check to see whether you make a good amount of money monthly. With this, they will infer if you can repay the loan within the given time. Your capacity to repay debts depends on your level of income. It is an important factor in your overall financial profile. The terms of the minimum loans vary from lender to lender. The lender will check your home and business books to understand your income. Your credibility increases when you pay loans on time. And, when you pay on time, your credit score soars. Credit Rating and History As stated before, personal loans are unsecured. So they do not need collateral or asset support. Hence, lenders rely on credit ratings. These ratings will let them know if they should provide credit to you. These scores also determine eligibility for a personal loan. Your credit score reflects the patterns of your initial EMI payments. As a result, you must focus on making the EMI payments on time. Any delay with regular payments will make you a defaulter. This has an impact on the approval process for your loan. Prior Professional Experience Freshmen have lower credibility than working people. This is due to financial stability. Thus, you should apply for a loan after working for more than a year or two. This helps show your financial stability to repay loans. Generally, the lenders will see if you have been earning for more than 5 years. Thus, if you require loans for your newly set-up business, you should have three years of work experience. In contrast, business owners need at least five years of experience working in the industry. Tenure Tenure, or period, holds an important place when it comes to repaying loans. This also determines your eligibility for a personal loan. You must choose a shorter repayment term when applying for a personal loan. Shorter terms give you more chances to repay the loan. This will increase the likelihood of approving your application at the best interest rates. Also, you must choose the loan amount based on your capacity for repayment. That means if you have eligibility for a personal loan of Rs. 2 lakh, you may use an EMI calculator to check your monthly payments. You must input the loan amount, interest rate, and duration into the fields. Documents Required For A Personal Loan When you apply for a personal loan, you will need to provide these documents: Proof of one’s identity: This includes a PAN card, passport, Aadhaar card, voter ID card, and driving licence Evidence of address: It includes a voter ID card, Aadhaar, and a driving licence Statement from the bank covering the last three months Employment identification Paychecks from the most recent three months The Benefits of Obtaining a Personal Loan With the Correct Eligibility for a Personal Loan Here is a list of the benefits if you are eligible for a personal loan and take one. Fast Approval The application procedure for a personal loan often takes less time than a mortgage loan. The approval process is completed in a few days when someone applies for a loan and has a good credit score. Unrestricted by Collateral You do not have to provide collateral. All that is necessary is for you to have the documents and a good credit score. Versatility The personal loan amount may be helpful for various purposes. It may be used to travel, buy a machine, or receive medical treatment. Some other things include making improvements to the home, getting married, paying for children’s education, and many other things. Increases One’s Credit Score Increasing your credit score with this method is an excellent choice. Your credit score will improve once you make payments on the EMIs within the allotted time frame. Easy to Obtain Anyone who has a credit history that is at least adequate and a credit score around 750 is an ideal candidate for receiving a personal loan. Minimal Documentation The amount of paperwork required for a personal loan is often relatively small. Nevertheless, the kind of papers necessary here must be authentic. [B-02] Conclusion A personal loan might assist you in meeting your financial obligations without requiring you to provide collateral. Checking your eligibility for personal loan requirements is something you need to do before deciding to get a personal loan. Multiple lenders provide personal loans nowadays. They check personal loan eligibility and give borrowers a wide range of products from which to choose. Choose wisely, however, so that you may get the most outstanding personal loan possible. It will make paying off your debts simpler and less stressful. Piramal Finance is one of the best personal loan and financing options if you are looking for one. Get in touch with the team and check your eligibility for a personal loan today!

08-11-2023

Personal Loan

Can Two Personal Loans Be Taken Out at the Same Time?

The short answer is yes. You can take out two personal loans at the same time. Taking out two personal loans can be tricky, but it’s not impossible. Most people take personal loans for big buys, debt merging, emergency costs, etc. In such cases, one can’t avoid taking out a second loan. Personal loans are repaid with fixed monthly payments. The lender will disburse the whole amount in one go to the applicant’s bank account once the loan application is cleared. Taking out a second loan can be tricky. So, before you check eligibility for a personal loan, do a detailed study. This article highlights everything you need to keep in mind when applying for a second personal loan. [B-01] Things to keep in mind while applying for two personal loans Repayment capacity Calculate your repayment capacity before applying for a second personal loan. You need to check if you are earning enough to pay the loans. Lenders could find it difficult to trust you if the majority of your income is allocated to paying EMIs. This is because having a high EMI-to-income ratio means you can default more easily. Have a repayment plan while applying for a second loan; this ensures you do not default. Interest rate Banks and lending institutions will offer a higher interest rate for a second loan as they see it as a risk. Because you already have an initial loan, there are chances of your becoming a defaulter. Before applying for a loan, it’s a good idea to check your CIBIL score to see if it will hurt the interest rate. Debt-to-income ratio The debt-to-income ratio (DTI) is a crucial factor that lenders consider when approving a personal loan. The ratio reflects the percentage of the customer’s income used towards debt repayment. A high DTI shows that a large percentage of income is used for debt repayment, whereas a lower DTI shows that a lower percentage of income is used for debt repayment. While approving personal loans, banks look at the DTI of the customer. So, one should ensure that DTI is low, especially when applying for multiple loans. Debt cycle If one is not careful, one may find themselves in a debt cycle due to applying for multiple loans. At first, it might seem like a good option to take out a second personal loan to cover an expense, but this can turn into a cycle. Therefore, you should seriously consider whether you need a second loan when you already have one. On-time repayment It is hard to keep track of all the payments when you have multiple loans. One might end up missing a deadline, which can cause problems. There will be a penalty, and it will affect the CIBIL score. So, when applying for multiple loans, set up automatic payments from the bank. CIBIL score An applicant’s credit score is cross-checked before sanctioning a personal loan. Most lenders approve a loan only if the score is above 750. In the case of multiple loans, the CIBIL scores can decrease as the credit companies see the person as a future defaulter and a risk to financial institutions. So, check eligibility for a loan only after checking your CIBIL score. You should conduct regular checks on your CIBIL score. It will help you plan your future payments. For example, an outstanding amount can affect the credit score. Therefore, you should try to pay it on time, which will ensure it does not affect your CIBIL score in the long run. Tracking your CIBIL score is important if you have multiple loans or use many credit cards. Preclosure One of the ways to manage multiple loans is by trying to pay one loan early. Preclosing a loan that has a higher interest rate can help manage debt. It will not only help you save money, but it will also improve your credit score. Preclosure can help you manage multiple loans and ensure you do not default. Documentation Financial institutions might ask for additional documentation if you apply for multiple loans. It is to make sure that you can repay the loans that you have applied for. Providing the right documentation is necessary if you wish to avail yourself of multiple loans. Alternatives to personal loans Personal loans are a long-term commitment and can get expensive if not well planned. So, here are some alternatives to personal loans that will help: The first question to ask is: Can you delay this expense? Try saving up for it. Choose a loan only if you need it immediately, if you cannot delay the expense, or if you cannot save money for it. Create a payment plan that will not affect the CIBIL score. Keep your repayment capacity in mind, so you do not end up in a debt cycle in the long run. Apply for a personal loan with a co-applicant. Co-application improves your chances of getting approved. The financial institution might look at the co-applicant’s credit score and approve the loan. It is because a joint application will reduce the risk for the institution as the co-applicant will become liable to pay for the loan if you cannot. If you desperately need a loan and there are no other options, you may have to provide collateral with the loan. [B-02] Conclusion Multiple loans can get expensive and difficult to manage. However, they can be availed of if needed. Many institutions offer multiple loans, but your eligibility for them will be determined based on your credit history, income, and other factors. Instead of coming to a general conclusion about loans, talk to an expert. For more information on banking, finance, and personal loans, check out Piramal Finance.

08-11-2023

Personal Loan

Savings Account Personal Loans: How To Get Them

Savings account personal loans are a popular option for consumers who need a small sum of money but don’t want to take on the risk of a credit card or other unsecured loan. If you’re wondering how to get savings to pay for personal loans, here’s what you need to know: [B-01] Choose a bank you already have an account with If you already have an account with a bank, then you are in luck. You have a better understanding of the terms and conditions of the loan. You can ask questions about the loan process. Thus, it will be easier for you to apply when you already have an account with the bank. When choosing a bank, make sure that they offer savings accounts personal loans. They should also be able to give you details. It will include: how much money they will lend, their interest rates, the fees associated with these loans. Once again, we recommend staying away from payday lenders. They generally charge much higher interest rates than banks! Ask about the minimum requirements for applying for a personal loan You’ll need a good credit score, a steady income, and a bank account. If your bank account is not with the same institution where you’re applying for the loan, you may be required to provide documentation of your income. This can include pay stubs and employer verification. You may also be asked to show that you have cash reserves in an amount equal to several months’ worth of payments on your loan. Verify your information at the time of application At the time of application, you’ll need to verify your information. This will help the lender ensure that you’re who you say you are and that all your data is correct. In addition to verifying your identity, they will also want to verify the following: Employment details (your employer’s name and address) Income details (salary or wages paid by the employer) Residency details (where do you live?) They might also ask for more information from a credit reporting agency like Equifax or Experian. Understand the interest rate you will be paying on your loan An interest rate is the amount you pay in interest to borrow money. It is expressed as an annual percentage rate (APR), which is how much it costs you over time to borrow money. The APR is calculated by taking the total finance charge (including fees, if any) and dividing it by the amount of credit extended, or multiplying it by 100, and then rounding up or down to two decimal places. The finance charge includes additional charges that may be added to your balance, such as annual fees and default charges. The only way you can avoid paying these extra charges is if you can make all your payments on time without missing even one! Steps to Get Savings Account Personal Loans Getting a personal savings account loan is easy and quick if you do it online! First, you need to find a lender offering personal savings account loans. Many lenders provide this type of loan, so it shouldn’t be hard for you. You can look at the options available and choose one that best suits your situation. Second, you need to apply for the loan online by filling out the lender’s application form with all your required personal information (such as contact details, income source, etc.). This step should take less than five minutes! Third, once you’ve sent in your request, the lender will look at all the information you’ve given them and decide whether or not they can approve it based on things like your credit score, how much money you make, etc. This could take up to 24 hours. If approved, congratulations! Soon after approval, they will send over the funds via check, which should be deposited immediately into the bank account(s) specified during the application process. Find out if there are any additional fees You can also ask your lender what fees they charge so that you can be prepared. The fees usually include the following: Late payments and overpayments: These are sometimes charged when you miss a payment or make a payment that exceeds the agreed amount. Other miscellaneous fees: These may include late processing fees and early repayment fees (ERF). It’s essential to be prepared when getting a loan It’s essential to be prepared when getting a loan. You should check your credit score before applying for a loan so that you understand the interest rate you can afford. If you don’t know your credit score, speak with someone at the financial institution where you keep an account who can help figure it out for you. You should also know how much money you can afford to pay back on this personal loan. This is important because if there are other debt obligations on top of this one, it might not be feasible for them all to be paid off at once. Finally, find out about the interest rate that will accompany this personal loan and make sure it’s reasonable for the kind of financial situation you’re in (or plan on being in). [B-02] Conclusion Getting a personal loan can be daunting, especially if you are new to the process. So Piramal Finance is here to help you. There are many different options available, so it’s important to know what each entails before deciding. A personal savings account loan is an alternative way of getting money when traditional lenders won’t approve your application or offer rates that are too high for your budget. This type of financing offers low rates and flexible payment terms so customers can pay off their balance over time without worrying about interest charges piling up on top!

08-11-2023

Personal Loan

Personal Loan Part Prepayment Charges and Foreclosure Fees

You might decide to pay out the outstanding principal in full or in part to pay off your personal loan a little bit sooner. The latter is known as a part prepayment because you only pay a portion of the loan balance. Personal loan foreclosure fees will be assessed if the debt is fully repaid. On the other side, if you only pay a portion of your personal loan, you will be charged prepayment penalties. [B-01] Personal Loan Prepayment Procedure Now that you have a better understanding of personal loan prepayment, let’s examine the general process that must be followed. If you’ve decided to foreclose on your debt, take the foreclosure fees into account. If you are making a partial prepayment, take a similar look at the prepayment penalty. For this, you might make use of a personal loan prepayment calculator. Next, speak with your bank’s nearest branch to go over the prepayment. You can submit a request online as well. Make sure you have access to the necessary documentation. Once your request has been received, a representative may get in touch with you to discuss any foreclosure fees or penalties and take payment. Benefits of Personal Loan Prepayment Faster debt relief It’s time to pay back the loan you took out to cover a few important costs. Your personal loan, however, could potentially result in severe financial trouble if it is not managed carefully. Your monthly savings are also reduced by the EMIs on personal loans. For this reason, if you have any additional money coming in, it is frequently advised that you prepay your personal loan in full. You might have to pay a small prepayment charge when you pay off your loan early. However, the prepayment fee is undoubtedly a minor thing to pay in that regard, given that prepayment might help you become debt-free well before the conclusion of the loan payback term. Not to mention, you won’t have to worry about your money being depleted by loan EMIs. Prepayment reduces the amount of interest paid The lock-in term is one of the most crucial factors to think about when it comes to loan prepayment. This refers to the time frame in which the lender forbids the borrower from making any prepayments, in whole or in part, towards the loan balance. Try prepaying your debt, either totally or partially, after the lock-in period is over and you have some spare money. You will save a lot of money by doing this and also end up avoiding paying interest on the amount you borrowed. Remember the prepayment fee that comes with loan prepayments; it would still be a good deal to pay it, considering the amount of loan interest you would avoid paying. Partially prepaying your debts can reduce them The topic of partial prepayment on a personal loan is discussed here in the context of the previous points. All it can do is make your debt load lighter. You lessen your debt load when you partially prepay the amount of your outstanding loan. This also reduces the amount of interest that is payable on the entire amount that is still owed. If you do want to prepay your debt, aim to do so in the first few years of the loan term. Improve your credit score Your debt load is eliminated or reduced all at once when you prepay your loan, either entirely or partially. Outstanding loans have a direct impact on your credit score, so this helps to raise it. Your credit score automatically increases when the outstanding loan balance is lowered or paid off in full with partial or full prepayment, increasing your chances of obtaining another loan. Personal loan foreclosure charges As we just explained, you might need to get ready for a related charge, whether you are partially prepaying your loan or foreclosing it. When looking at it from the bank’s perspective, the cost of borrowing is higher than the cost of lending. After lending you the money, the financial institution makes money off the difference between the two sums for the duration of the loan. There is a possible loss of income for them if you prepay the debt or foreclose on it. To make up for it, they impose a price or penalty on you, which is known as foreclosure charges. So, should you make a prepayment on your personal loan? The interest rate, the type of loan, the duration, and the prepayment fees are just a few of the variables that will affect the answer to this question. Financial institutions that have minimal prepayment costs should not be taken advantage of. Always choose the one that is most inexpensive by comparing your interest rate to the prepayment penalties on the personal loan. Prepayment Fees Charged By Banks When compared to the cost of lending, a bank’s cost of borrowing money is lower. The bank retains the difference in the amount after lending the money for the duration of the loan. The rate of interest that the bank would normally earn during the additional time decreases if the consumer chooses prepayment. Some banks impose prepayment fees to make up for the loss of prospective revenue. Bank prepayment fees differ significantly from one bank to another. Depending on the bank a customer borrows from, there may be a variety of restrictions, but generally speaking, the interest rate is between 4% and 5% on the outstanding loan amount. Additionally, prepayment penalties can vary, based on the loan term that has been fulfilled. Some banks may offer no prepayment fees after 3 years, while others may offer cheaper rates after a set amount of time. [B-02] Wrapping Up Existing borrowers may find it appealing to prepay their personal loans because it lessens their overall repayment load and interest charges. Prepayment fees, if the lender levies them, and a decrease in liquidity, however, may act as a disadvantage. By switching their personal loan to lenders with cheaper personal loan interest rates, borrowers with limited liquidity can lessen their repayment burden and interest expense. For more articles on personal loan prepayment, personal loan foreclosure charges, and foreclosure fees, log onto Piramal Finance.

08-11-2023

Personal Loan

How Can I Apply for a 5 Lakh Personal Loan?

A personal loan is an unsecured loan that you can take out to help pay for any expenses. This kind of loan is an excellent option if you need extra cash to pay bills, invest in your business, or buy something important like a vehicle or home renovation. A personal loan works much like other types of loans—you apply for the money through your bank, credit union, or online lender and then repay the amount at regular intervals over time. A personal loan is a great way to get money quickly and easily. [B-01] How much can you borrow? The maximum amount you can borrow depends on your income and the loan’s tenure. You should check the lender’s website to find out how much they are willing to lend, as it varies between lenders. Also, your credit score should be a minimum of 600, and you should be between the ages of 21 and 60. Who can apply for a personal loan? You can apply for a personal loan if you are a salaried employee or self-employed and have a good credit score. Here are some eligibility criteria: At least 18 years old. Have valid ID proof. Must have a regular source of income (salary) from your employer or business proof that shows a profit in the last two years. The best part about applying for a personal loan is that they are quick and simple to obtain. You can apply online, by phone, or through the mail. The process usually takes only a few minutes, and you’ll know whether you’re approved within a few hours or several days. You’ll receive confirmation of your funds via email or text message if they’re approved. Documents required to apply for a personal loan You need to fill out an application form. You also need to provide documents to prove your identity and financial status. The following documents are required: Your name, address, phone number, and email address. The name of your employer and its address. Your annual and monthly income, as well as the source of this income. If you’re self-employed, include tax returns or other documentation showing your income history and current business status. Your PAN card (Permanent Account Number) Your Aadhaar card (Unique Identification Card) Driving license, ration card or passport as proof of residence address. The steps involved in a personal loan application process There are a few steps or procedures that you will have to go through in the process of applying for a personal loan. And here’s a rundown of those steps: Apply for the loan on the best platform Once you have decided to apply for a loan, it is time to find out which lender offers the best interest rates and charges. It would be best if you chose a lender that offers competitive rates and charges. Check their interest rates and fees, reputation, customer service quality, and website for information about their products and services. If you are unsure about the company or lender, you are dealing with. It is best to check if they are regulated by any government agency, such as the RBI or SEBI. Another thing you need to remember while seeking a loan is that lenders will offer you a loan based on your credit score. If your credit score is good, the lenders will approve your application, and you will get an instant personal loan without asking too many questions. However, if you do not have an excellent or good credit score, you may face some difficulties getting approved for personal loans. Fill up the loan application form After choosing a lender, you must fill out an application form with all the relevant personal and financial details. The lender will use this information to assess your eligibility for the loan. Personal details include your name, address, phone number, and email ID. Financial information includes income sources (salary), employment status (full-time or part-time), etc. Details of the loan you wish to apply for are also provided in this section of their website. Select the loan amount and the repayment tenor The amount and tenure of your loan should be appropriate for your needs. For example, if you need a higher loan amount than your standard monthly expenses, then it’s likely that you’ll have trouble repaying the loan on time. Similarly, if you choose a repayment term that doesn’t align with your cash flow cycle or financial planning goals, then again, there is a chance of not repaying within the stipulated period. Submit the required documents Once you have applied for a personal loan with your desired bank, the next step is to submit the required documents. The documents you must submit will vary based on your circumstances and requirements. But generally, include the ones that we mentioned earlier in this article. Wait for verification The verification process is a standard practice in the loan sector. It can take up to 3 days to complete, and it helps determine if you are eligible for the loan amount you’ve applied for. Verification checks if your income is enough to pay off your loan comfortably. This ensures that there are no other loans against your name in any other banks. Wait for the loan amount to be disbursed in your account Once you have submitted all the documents and gotten your loan approved, wait for a few hours. The entire process will take some time. Once the money is disbursed into your account, you can withdraw it and make payments using any mode of payment that suits you best. [B-02] Conclusion You can now apply for a Rs. 5 lakh personal loan and get the amount in your bank account. Remember, there are many other factors that you should keep in mind before applying for such a loan. So, find out all about them on Piramal Finance, and then getstartedg on your application form!

08-11-2023

Personal Loan

Personal Loan In Nagpur. Check Eligibility & Apply Online

Maybe you are in need of some money to help you get back on your feet or maybe you want to buy something nice for yourself, whatever the case may be, banks have got your back. All you have to do is get a personal loan approved under your name and that’s it. You can use this fund to do whatever you want to do. Getting the loan approved can be quite easy if you are eligible, but are you? How can you tell, and which criteria decide your eligibility status? Let’s find out the eligibility criteria and apply for a personal loan in Nagpur. [B-01] Check Eligibility For Personal Loan in Nagpur If you want to clear your personal loan eligibility check, you must meet the following criteria. You have to be an employee of private limited companies or public sector undertakings, whether that’s under the central government, state, or local bodies. You have to be within the age group of 21 and 60 years of age. If you are indeed a working employee, you have to be working with the same employer for a minimum of 1 year. You must be earning a minimum salary of 25,000 per month. Personal Loan Eligible Amount Check Various online personal loan eligibility calculators are designed specifically for personal loan eligibility checks. You can search for a personal loan eligibility calculator online or just check out the eligibility calculator of your bank. Here are steps on how to use eligibility calculators. The calculator will ask you to enter the city you live in. You will have to enter your date of birth and the monthly salary or income that you earn from your employer. Calculate your monthly expenses, such as rent, bills, and daily expenses, and enter the figure on the calculator. You will also have to mention the name of the firm where you work. Once you enter all the details, the website will show you if you are eligible for the personal loan. Features of a Personal Loan in Nagpur Check the features of a personal loan in Nagpur: Receive funds within a minute or two if you already have an account at the same bank. In case, you don’t have an account, then you will receive the said loan amount in 4-7 working days. The procedure for applying for a personal loan in Nagpur has been simplified. You may also get the opportunity to apply for a loan insurance security in case of accidental death. Interest Rates And Charges The personal loan interest rates and charges vary from bank to bank, so be sure to check the interest rates and charges of the bank you will be applying for a loan. Here are some of the general interest rates and charges when it comes to personal loans. Fee Amount To Be Paid Rack Interest Rate Salaried – 10% to 21% Processing fee / Loan Processing Charges Up to Rs 4999/- Stamp Duty & Any Other Charges Varies from bank to bank How To Apply For a Personal Loan in Nagpur? Applying for a personal loan in Nagpur is easier than ever now, thanks to the simplified process and helpful bank staff who will help you out with any queries that you may have. Ask your bank that you want to apply for a personal loan, and they will hand over a form that you will have to fill up. The bank staff will also ask some questions about why you are looking for a loan, the amount of the loan required, what you do for a living, and so on. Answer all the questions and hand over the filled form. The bank staff will also ask for some documents to verify the details that are entered in the form. You will have to submit copies of your identity document, address proof, PAN, employment slips, etc. If you are eligible for the said loan, your loan will be approved. You will receive the loan amount almost immediately if you already have an account at that bank. If you don’t, you will have to wait for 4-7 working days. You can either visit the nearest branch of your bank to do that, but if case you don’t want to go, you can apply for a personal loan in Nagpur online as well. To apply for a personal loan in Nagpur online, search for the bank’s website. Go to that website and look for a personal loan tab. Now, fill out the online application with all the requisite details such as your date of birth, the amount of loan, where you work, and so on. After that, you will be asked to upload some documents required for personal loan, including identity documents, address proof, PAN, employment slips, etc. After submission, the bank’s system will verify the details. Click on the “Submit form” button now, and wait for the loan application approval. [B-02] Bottom Line If you are looking to apply for a personal loan in Nagpur then conduct thorough research analysing which bank offers the loan at the better interest rate. You can also visit the website of Piramal Finance to get a better idea of personal loans. They have uploaded informative articles on various topics. These might prove to be beneficial for you. Scroll through their website and read about various products and services they deal in.

08-11-2023

Personal Loan

Should I Take A Personal Loan To Fund My Startup

As a budding entrepreneur, it’s important to consider all funding options before jumping into the startup world. Starting your own business can be exciting, but it also requires you to make all sorts of large financial decisions upfront. Many entrepreneurs fund their ventures with personal loans, which can seem like an easy way to raise money quickly. However, if you don’t do your homework first, this can backfire, especially if you cannot pay the loan back. Before deciding on getting a personal loan to fund your startup, consider this article first. Here we discuss all the pros and cons of getting a personal loan. [B-01] What is an Instant Personal Loan? An instant personal loan is when you borrow money from an individual or a bank and then repay that loan with agreed-upon monthly payments. When you apply for a personal loan, the lender will review your credit history before deciding whether or not to approve the loan. These loans are also referred to as “unsecured” because they are not backed by collateral (such as property). Instant personal loans typically carry higher interest rates than other types, such as mortgages or student loans. If you’ve had trouble getting approved for these other types of loans, a personal loan may be worth considering. The Pros of Getting a Personal Loan to Fund Your Startup If you’re looking for a way to fund your startup, taking out an instant personal loan might be your best option. Here are five reasons why it might work well. Check if you have startup loan eligibility: You don’t need perfect credit: Finding a business lender willing to work with a new company can be difficult. Getting approved for an instant personal loan is much easier, as the lender looks at your monthly income and CIBIL score. With a personal loan, the only thing that matters is your ability to repay and make monthly payments on time. It can be cheaper than going through a bank or lender. The interest rate on most instant personal loans is pretty low. No collateral is required: You won’t have any trouble paying back what you borrow because there’s usually no collateral needed. Short-term commitment: If you’re looking for money you can repay in less than 5 years, instant personal loans are usually your best bet. Get the funds quickly: If you are looking for business financing, note that SBA loans are popular. But on the other hand, instant personal loans can usually be granted much more quickly. Thus, if you need money immediately, you may consider an instant personal loan to get the funds you need. The Cons of Getting a Personal Loan to Fund Your Startup Getting an instant personal loan could be an option if you’re looking for a quick way to fund your startup and don’t want the hassle of applying for bank loans. However, some cons come with this decision. Risk on your credit score: An instant personal loan can affect your credit score because it’s an unsecured form of debt. The risk of your credit score dropping if you do not make payments on your personal loan is real when taking a personal loan. Credit approval can be more difficult if you have a low score and a history of late payments. Limited borrowing: Getting a personal loan means borrowing money from one person instead of many. So it will be much harder to borrow as much money as you need to get your startup up and running. The personal loan only depends on your salary or credit score. Interest rates depend on CIBIL score: When you take out a personal loan, your interest rate also varies depending on what CIBIL score you have. Higher CIBIL scores mean lower interest rates, while lower CIBIL scores mean higher interest rates. Things to Consider While Getting a Personal Loan to Fund Your Business The five things you should consider before getting a personal loan to fund your startup: Identify the risk/reward characteristics: Before taking out a personal loan for business financing, be well aware of what you stand to gain and what you stand to lose if your idea fails to meet any of those factors. The liquidity of your startup: How quickly will you be able to repay the loan if it doesn’t work out? How long will it take for your income-producing ventures to start generating revenue? You can leverage debt instruments with proper education and application to jump-start your new business. Ability to repay: Before taking a personal loan to fund your startup, you need to determine how much cash flow you have coming in monthly. Also, you can identify how much money is going out each month. Plan for repaying yourself: When taking out a personal loan to fund your startup, make sure you plan to pay back both the lender and yourself. Make sure there is a definite plan, so you don’t fall into more debt than needed. [B-02] Conclusion In conclusion, A personal loan can be a good way to fund your startup, and it can be tempting to take out a personal loan to get the ball rolling quickly. You’ll want to pay off that loan as soon as possible. But this may not be the best choice for your business in the long run. There are many factors that you should consider before taking out a loan. When deciding whether or not to get a personal loan, it is important to know your credit score and debt load. You also need to know the interest rates and other costs associated with the loans. Additionally, if you do not meet the repayment terms, it could adversely affect your credit score. You can check out the Piramal Finance website if you want the best personal loan to fund your startups. Get in touch to get additional information.

08-11-2023

Personal Loan

Finding a Personal Loan EMI Calculator Online?

If you have been thinking about taking a personal loan to consolidate your debts, you might wonder how to make the monthly payments on the loan. In order to know how much money you’ll need each month, it’s important to calculate what your personal loan EMI will look like by using an EMI calculator that can estimate this amount for you quickly and easily. Here are some tips on where to look for such calculators online so that you can get the full picture of how much financial assistance you’ll need from your lender. [B-01] Calculate Personal Loan EMI – What Does it Mean? EMI is short for equated monthly instalments and is the fixed monthly payment made by the borrower to repay outstanding debt. The monthly instalments are calculated based on the debt’s principal amount, interest rate, and tenure. If you are looking for a personal loan, it’s always good to know your monthly payments. That means you should calculate your personal loan EMI. A good rule of thumb is to only borrow what you can afford to repay from your next paycheck. That way, you won’t end up sinking into debt and losing control of your money. If you’re going to borrow money, always do the math first! You’ll need an estimate of how much money you’ll make each month (your take-home pay) and how much you’ll spend on living expenses (rent or mortgage, utilities, groceries). How to Calculate Personal Loan EMI? The easiest way to calculate a personal loan EMI is to multiply the principal amount by the interest rate and divide this number by 12. This will give you your monthly installment. For example, if you borrow Rs. 1,00,000 at an interest rate of 10%, your monthly instalments will be Rs. 12,500 (Rs. 100000*10/100). The number of monthly payments is determined by the loan’s term. The total amount payable would be the principal amount. Plus, all of the accrued interest from when you borrowed it until it’s paid back in full. What Factors to Consider to Calculate Personal Loan EMI? Here are a few things you need to know while calculating personal loan EMI. Amount of Loan: The loan amount increases in direct proportion to the EMI due. The lender will calculate the maximum amount of the loan you are qualified for based on your capacity to repay it. They will also check your standing with the bank and other factors. Interest Rate: The bank will choose the interest rate for your loan based on several factors, such as your ability to repay, credit history, income, etc. Tenure of Loan: The loan tenure you choose has an inverse effect on the EMI. As the tenure is extended, the EMI decreases. But if you take out a loan for a longer period, you may have to pay more interest. The normal range of credit periods lies between 12 and 84 months. Where Can I Find the Personal Loan EMI Calculator Online? Most banks offer free calculators on their websites, which will give you an idea of your monthly payments. So go ahead and do the math! Here is the list of some of the banks with their personal loan EMIs: BankLoan TenureLowest EMI Per LakhUnion Bank of India5 yearsRs.2,071SCB5 yearsRs.2,199SBI7 yearsRs.1,640Kotak Mahindra5 yearsRs.2,162Karnataka Bank5 yearsRs.2,224IOB5 yearsRs.2,164HDFC Bank5 yearsRs.2,149CitiBank5 yearsRs.2,124Axis Bank5 yearsRs.2,224 What Are the Benefits of Using a Personal Loan EMI Calculator? If you are looking for a personal loan, using a personal loan interest rate calculator has very interesting benefits. Read here Better decision-making: Using an EMI calculator will help you determine how much money you’ll need for your monthly repayments so you know if the personal loan is worth it. The more information you input into the calculation, the more accurate it will be. And so it is easy for you to decide whether to take a loan or not. Helps to make a monthly budget: When you calculate personal loan EMI, you will also know how long it will take for the interest on your loan to exceed the original amount of your credit card debt. With this in mind, you can decide whether or not to go ahead with taking out a personal loan. Also, determine whether that would be financially beneficial for you. Easy to use: Most EMI calculators are free to use and easy to understand, meaning that even those without a strong financial background should be able to calculate their monthly payments correctly. Time-saving: One advantage of using an EMI calculator is that it saves time by giving accurate and instant results. Suppose you have to figure out what’s best for yourself anyway. Personal Loan Emi Calculator Online can assist you with the correct rates. So you don’t have to stand in line at the bank. Accurate Result: It’s really up to you whether you should calculate a personal loan EMI and whether it is worth your time; after all, every person’s situation is different. However, it does seem like most people find that these calculators give them accurate and helpful results. [B-02] Conclusion As you know, compared to personal loan offers, it’s important to know the interest rates and whether you can afford to pay them back over time. Loan calculators can help with this, but they aren’t as easy to find as they used to be—particularly when it comes to personal loans. We’ve compiled some of the most useful and reliable personal loan calculators from around the web. You can visit the Piramal Finance website to calculate your personal loan EMI online. Here, you can apply for a personal loan in just a few steps.

08-11-2023

Personal Loan

Avail Personal Loan With Minimum Documentation Online

A personal loan is issued by financial institutions (banks or non-banking finance companies) to individuals. It can be used for things such as medical bills, car repairs, weddings and travel, home renovation, or education. All the banks need a few documents and eligibility criteria to approve the personal loan. The minimal documentation required while availing of a personal loan makes it one of the most sought-after loans online today. It can be seen as an alternative to traditional bank loans or credit cards. These require more paperwork to get approved. If you are looking for personal loans with minimum documentation needs, here’s what you should keep in mind before you take the next step. [B-01] What is a personal loan? A personal loan is a type of unsecured loan. It helps with personal expenses. It is not similar to a car loan or home mortgage. These are secured by a car or home, respectively. But with a personal loan, you don’t have to put up any collateral. The lender will check your reliability. They will approve or deny the application based on that. Lenders will also look at your income, debt-to-income ratio, and other factors. After this, they will approve the application. It’s important that you submit all the required documentation when applying for a personal loan. So there are no delays in getting your money once you’ve been approved. What are the basic eligibility criteria for a personal loan? Below is a list of common documents: Proof of identification with photo and signature (passport, driver’s license) Income proof or work status (pay slip, employment contract). You can be a salaried person or a self-employed person Proof of residence (rental agreement, utility bill) How to avail of a personal loan with minimum documentation? There are 3 things you need to keep in mind to avail personal loan with minimum documentation. Must have a good CIBIL score If you have a high credit score, generally 750 or higher, you stand to benefit from lower interest rates. For personal loans, lenders will check your credit scores. High credit scores also enable you to receive pre-approved personal loan offers. You get this from lenders with whom you have an existing relationship. Consider paying off any balances on your credit cards. Repay any outstanding debt before applying for a loan. This will help boost your credit score. Thus, it will result in a better interest rate on your loan. Maintain good relationships with lenders Individuals who want to get a personal loan without documentation should approach banks and other institutions. From here, they can get a loan and loan facilities. These institutions may not require additional documents. Also, depending on your credit history, these lenders may already have pre-approved offers for you. For instance, your bank/NBFC might have checked several things. For instance, it could be your transaction patterns, deposits (recurring deposits, fixed deposits, etc.), and investments. They will do it while evaluating your personal loan eligibility. Get a loan from a digital financial platform You can get a loan from a digital financial platform if you are in urgent need of cash. You can also take it if you don’t meet the requirements for pre-approved loans with your existing banks. You need to approach lenders offering end-to-end digital loan processing. Many lenders now offer this service online. They process requests for personal loans without you leaving home. They are, therefore, able to process loan requests in a much shorter time. Who can avail of a personal loan with minimum documents? You need to have basic KYC information. This includes: loan repayment history income details address proof Aadhar number PAN As long as the lender has these details, they offer personal loans with minimum documents to you. As a result, existing customers do not need to submit too many documents. Customers don’t have to bring hard copies of the required documents to many banks and NBFCs. This is from applying for the loan to getting it in the account. So, if you are looking for a ‘paperless’ personal loan, you can get it from them. Such lenders approve personal loan applications very quickly. They will simply check the documents uploaded during the application process. Selected customers can also get pre-approved or pre-qualified for personal loans from their lenders. This can be for new-to-credit customers. Pre-verified credit profiles allow lenders to make loans in no time. It begins when the loan application is received without any fresh documentation. Tips to improve getting a chance to approve a personal loan CIBIL Score: An important factor that lenders consider is your credit score. A high credit score makes getting a personal loan easier. If you have a low score, you should check your credit report to see if there are any errors. Notify CIBIL if you find any simple errors. These may have adverse effects on your score. Debt-to-income ratio: Having a healthy debt-to-income ratio is helpful. It means balancing your income and debts when applying for personal loans. To increase your chances of getting a loan, you should consider selling liquid assets. For instance, you can increase your income by investing in stocks or working part-time. You should limit your borrowing: If you need a specific amount, make sure you calculate it first and only apply for that amount. Income: It is important to select the right lender. This will be based on the credit score and income criteria that each lender has. Pick a lender that meets your eligibility criteria. Apply accordingly when looking for personal loans. If you apply to several lenders, each will obtain your complete credit report. This will lower your credit score each time. [B-02] Conclusion In conclusion, getting a personal loan online with the minimum documents is very easy. As you know, a personal loan is a type of unsecured loan. You can use it to meet your expenses or repay some debts with ease. The approval of a personal loan with minimum documentation mostly depends on your credit history, reliability, and CIBIL score. That’s because this type of credit is unsecured. In many cases, lenders offer personal loans quickly and with little documentation required. They only need proof of address and identity. Check out our website, Piramal Finance, to learn more about personal loans. Find the minimal documents needed and connect with us for further details.

08-11-2023