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Personal Loan

Tips to Improve Your Chances Of Getting A Personal Loan

Personal loans are one of the most popular types of loans in India. It is the option that many seek out the most in times of financial crisis. Personal loans are often the only way for working professionals in India to get the money they need. You can use these loans for paying off debt, a mortgage, a medical emergency, a vacation, and other capital needs. Personal loans are the best option if you are looking to get credit without providing any security. It requires less paperwork and is easier to apply. So, if you are planning to apply for a personal loan, this article is for you. [B-01] What is a Personal Loan? Personal loans are kind of unsecured loans. They are offered with little documentation and without the need for collateral or guarantee. You can use the money from this loan to meet your financial needs. However, you must meet the eligibility requirements to obtain a personal loan. You can also use a personal loan eligibility calculator to check if you are qualified for it or not. Eligibility for Personal Loans The personal loan eligibility requirements differ from one lender to another. However, the following are the standard eligibility criteria for a personal loan in India: Applicants for personal loans must be between the age of 21 and 60. You should be an Indian citizen. You should have a minimum of 12 months of work experience. You should be employed at your current company for more than six months. Your monthly income should be at least Rs. 25,000. How to Improve the Chances of Getting a Personal Loan? The last thing you want when applying for a personal loan is for the lender to reject your application. To overcome that, there are several ways you can boost your chances of getting a personal loan approved. Here are some tips you want to take to improve your chances of getting approved for a personal loan when you apply. Make Sure You Prequalify for a Personal Loan Prequalification is an important thing to look for because it lets you look into your loan options without affecting your credit score. A soft credit enquiry, as opposed to a hard credit enquiry, won’t affect your credit score. It’s an efficient approach for evaluating various lenders before applying. Even though each lender has its own rules, many of them look at the following things when deciding whether or not to give you a loan: Credit score Credit history Existing numbers on credit cards Employment of credit Income Education and work experience Have a Good Credit/CIBIL Score Your chances of getting a personal loan and its interest rate depend on your credit, or CIBIL score. You may find it more convenient to get loans if you have a good or exceptional credit score. Your chances may be lower if you have a weak or low credit score. Make sure you review your credit record. There can be mistakes that need to be fixed before you apply for a personal loan. Increase Your Income Your lender will consider your debt-to-income ratio before giving you personal loan approval. The maximum loan amount offered rises along with your income. People with higher income levels are less risky than people with lower incomes. You will be able to repay the loan easily as your income rises. Include all of your sources of income, like dividends, business profits, and other income, to increase the chances that your loan will be approved. The risk posed to lenders decreases as income increases. Do Not Apply for Multiple Loans People typically apply for personal loans with several banks and NBFCs when they need money urgently. It is done to enhance the chances of receiving a loan as quickly as possible. However, your lender can see these multiple loan applications through a hard enquiry of your credit history. When you have too many hard enquiries open at once, your credit score goes down. Likely, the lenders won’t approve your loan in such a case. Also, sending out multiple loan applications could get you turned down more than once, affecting your credit score. Set a Loan Amount You Can Repay Easily A loan application will be rejected if you request a credit limit larger than what you can repay. Since there is no requirement for security with a personal loan, you should consider your sources of income. Apply only for an amount that you can comfortably repay. Since you will only be paying interest for a limited period, a shorter loan term can save you more money. However, taking out a loan for a shorter period will require you to make larger monthly payments. So you must consider this while determining the loan term that is best for you. Apply With a Cosigner or Joint Applicant What if you don’t have the credit or income record required to apply for a personal loan? You can ask someone with a high income or better credit score to cosign or jointly apply for a personal loan. The majority of lenders for personal loans accept cosigners and take their qualifications into account when determining whether to issue a loan. You and the cosigner or joint applicant will both apply for the loan and be equally responsible for paying it back. Also, cosigned loans are less risky for lenders because there are more people the lender can try to get payments from. [B-02] Conclusion You can improve your chances of getting a loan by being aware of the points mentioned in this blog. Consider your loan application from the lender’s perspective. Make changes and improvements if you find any factors that could reduce your chances of being approved for a loan. Moreover, research and apply only for the personal loan that suits you best. And visit our website to read more such blogs on loans and personal finances. You can also check out the housing and personal loan sections if you plan to get one.

08-11-2023

Personal Loan

Different Types of Personal Loans Offered In India 2022

Loans satisfy the desire for quick cash when the sources to earn are restricted. It often becomes difficult to save money from monthly salaries due to varied expenses. Prices are rising at an alarming rate. So, meeting short-term financial investments becomes difficult. But they are important as well. Now, where do you go for money when you need it immediately? Several personal loan types come in various forms. Moreover, they are a good option for those who manage their finances and respond to unexpected financial needs. This will help you if you can return the loan on time and in a disciplined way. Taking out loans is not a terrible habit. [B-01] Loan Options Available to Individuals in India Many personal loan types offer the most practical financial insurance. They help you in times of crisis. They reduce pressure on your immediate cash flow. Also, they give you the freedom to repay the loan when it is most convenient. You may desire more money for a better life. At that time, you can find several personal loan types available from financial institutions, including banks, non-banking financial organisations, and private money lenders. But, if loans are increasing too rapidly, you should make sure that you select a reliable source. It will not compromise your ability to repay your obligations. This article summarises the many personal loan types and what to expect from them. Personal Loan Types that Have Been Pre-approved If you need cash quickly, find a reliable lender. They should encourage responsible borrowing on the part of their customers. It is best to go for any pre-approved personal loan type rather than credit cards. You can borrow a larger sum while paying a lower interest rate. Also, if your CIBIL score is high, you may qualify for various personal loan types. You also pay less in interest. These types of personal loans allow the borrower to get a total loan without having to mortgage assets. Still, the cost of these loans may be relatively high. Many business owners consider this a temporary measure for generating capital. It helps them satisfy their immediate financial obligations. You need not visit your bank to repay the loans. The bank will deduct the EMI from your bank account every month until the loan’s maturity. These are short-term loans with different conditions for repayment. Medical Loan A medical loan is also a personal loan type. It is a financial safety net in any medical emergency. This includes hospitalisation, medication, surgery, or other expensive medical care. Like other personal loans, this loan does not need security. As a result, the interest rates are relatively high. One can ensure repayments by making extended monthly payments tied to the borrower’s bank account. This loan will be a saviour for you during great difficulty. Travel loan The holidays provide a welcome escape from the humdrum of everyday life. However, there are times when a lack of funds makes enjoyment impossible. Why not consider obtaining a loan for your trip? Travel loans are personal loan types that may assist you in paying vacation-related costs. These include transportation, lodging, meals, other incidentals, and activities like sightseeing. The loan is then used for many purposes, like travelling, incurring the cost of renovation, and others. Because of the high interest rate, paying close attention to the specifics of this form of personal loan is essential. It is a loan with quick approval that has a better credit score than credit cards. Wedding loan The costs associated with weddings may quickly add up. You want to make a special moment for you or your children to remember forever. You may want financial assistance in the form of a marriage loan to cover all the expenses. Personal loans in the form of marriage loans are among the best kinds available for organising one’s perfect wedding. A wedding loan may cover any expense, from purchasing jewellery to organising an extravagant celebration. In India, the conditions for obtaining a personal loan for marriage are the same as those for obtaining any other personal loan. When applying for this loan, the lowest age range is between 21 and 23. The maximum age range is between 58 and 65 years old. The loan amount is contingent on a required minimum quantity of net income. Taking out a personal loan to pay for a wedding might also be helpful for large weddings. Debt consolidation loan A debt consolidation personal loan type is a simple approach to paying off bills that you may have forgotten about. It gathers debts incurred through medical care, travel, the construction of homes, credit cards, and other types of outstanding loans together. A single, consolidated amount is determined to be repaid. This type of personal loan keeps you from having to pay a lot in EMIs. These include any of them that might hurt your CIBIL score. [B-02] Conclusion Personal loans provide a beguiling variety of possibilities to choose from, which might delight you. You are strongly encouraged to apply for personal loans, as you can avail of them without any hassle. If you need money but don’t have anything of value to use as collateral, don’t worry; you can still qualify for one of these loans. Based on the varied usage of personal loans in India, you have a variety of types of personal loans. Piramal Finance is the way to go if you want an excellent personal loan-providing option.

08-11-2023

Personal Loan

Personal Loans for Dental Treatment

Are you someone who is delaying your dental treatment or your loved ones’ just because of its high cost? You are afraid that it will dig a deep hole in your pocket. We’ve got you. Gone are the days when dental treatments were considered among the cheapest health expenses. In present times, it is as costly as any other health expense. As the consumption of junk and sugary foods is at an all-time high, the same goes for dental problems and the cost of treating those problems. We have a perfect solution for this, personal loans for dental treatment. Yes, you might not have heard it before, but nowadays, many banks and other financial institutions offer personal loans, especially for dental treatments. In this article, we will share detailed information about personal loans for dental treatment that you might need. For example, what are they, how do you get them, why do you need them, and so on.Keep reading for all these details. [B-01] What is a Personal Loan for Dental Treatment? A personal loan for dental treatment, or “dental loan,” is a loan that is specially sanctioned for the treatment of dental problems only. It is usually an unsecured loan, meaning no collateral is needed to avail it. In this case, the interest rate might be a little higher. Need for a Personal Loan for Dental Treatment One may need a personal loan for dental treatment for various reasons, such as: Dental treatments have become very costly, especially in metro areas. Some dental treatments like root canals and dental implants can even cost lakhs. Not everyone can afford them with one-time payments. A lot of health insurance policies do not cover dental treatments. Insurance, especially for dental treatments, is also very limited. Increase in dental health problems, which require more dentist visits. In case of emergencies, many institutions offer advance-salary dental loans, which can be paid once your salary is credited. So, you do not need to request money from relatives or friends. Eligibility Criteria to Get a Personal Loan for Dental Treatment The eligibility criteria are almost the same as for a normal personal loan. Here is the list: You are a resident of India. You are not a minor, which means you are at least 18 years old. A person with a regular salary or a self-employed You have a good credit score. You have all the required documents, like a PAN card, address proof, bank statements for the last 3–6 months, and a salary slip or other income proof. How to Choose a Personal Loan for Dental Treatment While choosing a personal loan for dental treatment, remember the following points. You can give importance to any of the points according to your priorities. The interest rate charged by different financial institutions varies. For some people, the interest rate is the most important pillar. The time taken for the disbursal of the loan: some institutions may charge lower interest rates but take more time for loan disbursal. If it is an emergency, instant approval and quick disbursal are the best choices. The complexity of the application process: some people might prefer a less complex application process even if it means a slightly higher interest rate. The amount of time for the repayment of the loan. Dependency of loan approval on credit scores: people with low credit scores will choose loans with a low dependency on credit scores. How to Apply for a Personal Loan for Dental Treatment You can apply for a personal loan for dental treatment by following the steps below. First, check your credit scores. You can check your credit scores online at various websites. Then, check your loan eligibility and get prequalified if possible. You can use online eligibility calculators for this. Next, compare different lenders and their terms and conditions. Choose the lender according to your needs and requirements. Collect the required documents that you are going to need. Lastly, apply and fill out the application carefully. After the loan has been approved, you will receive your funds and can begin your dental treatment. Credit Card or Personal Loan for Dental Treatment It becomes confusing for many people whether to take out a personal loan for dental treatment or simply use a credit card. You can make this decision while keeping these points in mind. The main thing to consider while choosing between these options is the loan’s interest rate. You should choose the one with a lower interest rate. The next thing to check is the monthly payment. Check if it is a fixed amount or a varying amount. You should have a fixed monthly payment. You should also keep in mind all the other expenses charged to the credit card and the limit of the credit card. Keep in mind not to max out your credit card. If you already have many expenses on your credit card, it’s better to choose a personal loan for dental treatment. What Is the Difference Between a Personal Loan for Dental Treatment and a Regular Personal Loan? The only difference between a personal loan for dental treatment and a normal personal loan is that there is no specific purpose when it comes to a normal personal loan. While you can use a personal loan for any purpose, you can use a personal loan for dental treatment only. [B-02] Can the Loan Be Repaid Before the End of its Tenor? Yes, you can repay the loan before the term ends.You can repay it after approximately 6 months, and there will be no extra charges. Dental problems are not smaller problems anymore that you can ignore. They are the same as other health problems and require the same attention; personal dental treatment loans make that easier. After reading this blog, we hope you are clear about all the information about personal loans for dental treatment. If you need more information about this or want to consult about any other financial issue, consider contacting a good institution like Piramal Finance. With more than 40 years of experience, we are here to help you get loans, financial consultation, etc. We also offer free credit score reports and loan eligibility calculators. Visit our website to learn more.

08-11-2023

Personal Loan

When Should You Apply for A Personal Loan?

When you need money for a large purchase or an unexpected expense, you may consider a personal loan. It is a type of instalment loan, which means you borrow a set amount of money and pay it back, plus interest and fees, over a period of time. There are many situations where a personal loan makes sense. For example, you may want to consolidate debt, pay for a wedding or home improvement project, or cover medical or emergency expenses. Before you apply for personal loans, it is important to understand the basics. This includes knowing how personal loans work, the diverse types of loans available, and what to consider before you apply. Once you have done your research, you may be ready to apply for personal loans. This article will provide an overview of when it makes sense to apply for personal loans and how to get started. [B-01] What is a personal loan? A personal loan is a type of loan that is typically used for personal expenses, such as medical bills, home improvement projects, or debt consolidation. Personal loans are usually unsecured, which means they are not backed by collateral like a home or car. Personal loans are a popular choice because they usually have lower interest rates than credit cards. Personal loans are typically repaid in monthly instalments over a set period, usually two to five years. The repayment schedule and interest rate are usually fixed, which means they will not change over the life of the loan. When you apply for a personal loan, the lender will review your credit history and income to determine if you are eligible for the loan and how much you can borrow. When to apply for a personal loan? If you are considering a personal loan, it is important to understand when to apply for one. Personal loans can be a wonderful way to consolidate debt, finance a large purchase, or cover unexpected expenses. But before you apply for a personal loan, it is important to understand the terms and conditions of the loan as well as your financial situation. Here are a few things to consider before you apply for a personal loan: Do you need the loan for a specific purpose? Personal loans can be used for a variety of purposes, but it is important to have a clear plan for how you will use the loan before you apply. This will help you determine the loan amount you need and the repayment schedule that is right for you. What is your credit score? Your credit score is one of the main factors lenders will consider when considering your loan application. If you have a good credit score, you are more likely to be approved for a loan and to get a lower interest rate. Can you afford the loan payments? Personal loan payments are typically fixed, which means you will need to budget for the same payment each month. Before you apply for a loan, make sure you can afford the payments. How long do you need the loan? Personal loans typically have terms of three to five years. The longer the loan, the lower the monthly payments, but the more you will pay in interest. What are the fees and interest rates? Personal loan interest rates and fees can vary depending on the lender and the loan terms. Be sure to compare offers from multiple lenders to get the best deal. When you are ready to apply for a personal loan, be sure to compare offers from multiple lenders to get the best deal. Reasons to Apply for a Personal Loan There are many reasons to apply for a personal loan. Some of these reasons include: To consolidate debt: If you have multiple debts with high interest rates, you may want to consolidate these debts into one personal loan with a lower interest rate. This can save you money on interest charges and make it easier to repay your debt. To make a large purchase: If you need to make a large purchase, such as a new car or a new appliance, you may want to finance this purchase with a personal loan. To cover unexpected expenses: If you have unexpected expenses, such as medical bills or home repairs, you may need to finance these expenses with a personal loan. To improve your credit score: If you make timely payments on a personal loan, this can help improve your credit score. To get a lower interest rate: If you have a good credit score, you may be able to get a personal loan with a lower interest rate than you would get with a credit card or other type of loan. This can save you money on interest charges. To avoid using a credit card: If you are trying to avoid using a credit card, you may want to use a personal loan instead. This can help you avoid debt and improve your financial situation. To get a fixed interest rate: If you are concerned about rising interest rates, you may want to get a personal loan with a fixed interest rate. This can help you budget for your loan payments and avoid unexpected increases in your payments. To get a shorter loan term: If you want to pay off your loan more quickly, you may want to get a personal loan with a shorter loan term. This can help you save money on interest charges and pay off your loan faster. To get a lower monthly payment: If you have a tight budget, you may want to get a personal loan with a lower monthly payment. This can help you make your loan payments and still have money left over for other expenses. To get a tax deduction: If you itemise your taxes, you may be able to deduct the interest you pay on a personal loan. This can save you money on your taxes. There are many reasons to apply for a personal loan. These are just some of the reasons that you may want to consider a personal loan. [B-02] Conclusion If you need quick cash and have exhausted all other options, a personal loan may be the right choice for you. A personal loan can be a fantastic way to finance a large purchase or consolidate debt. But before you apply for a personal loan, it is important to understand the terms and conditions of the loan as well as your financial situation. By doing your research and understanding the loan process, you can make sure that a personal loan from Piramal Finance is the right choice for you.

08-11-2023

Personal Loan

How to Get a Personal Loan Without Documents?

A personal loan is an unsecured loan and does not need any collateral. You can take a personal loan without documents for various purposes including education, emergency expenses, and any other requirements. And you can repay it in a short period of one year to five years. The repayment option in such a loan is flexible. Borrowers also get benefits based on their credit history. We have discussed here what it takes to get an instant loan without documents. You may have questions about the process, benefits, and eligibility criteria. So read on for the answers. [B-01] Benefits of getting a personal loan without documents Borrowers may wonder about the benefits of an urgent cash loan without documents. So, here are some of them. Hassle-free documentation You need to submit documents online while applying for a personal loan. So you need less documentation for the online application. The documents you need to have are as follows: Proof of age Residential proof Proof of stable income Credit history Bank account information The documentation helps lenders to verify that the information you provided is correct. No collateral for an urgent cash loan without documents As you know that a personal cash loan is an unsecured loan. Here, you do not need to give any collateral as security to get the loan in the event of default payments. Due to this, personal loans are accessible to a person with a good credit history. You will get a cash loan for every need. All you have to ensure is to meet the eligibility rules. No restriction on the usage of personal loan You can use a home loan for constructing or buying a home only. But you have complete freedom to use personal loans for anything. You can get an urgent cash loan without documents. And you can use it for any need or activity. There is no restriction on where you spend it as long as it is legal. Efficiency A personal loan is the best option when you are looking for an instant loan without documents. It involves technology making the process smooth and quick. The steps to get an instant cash loan, from approvals to disbursement, is online. This online process saves you time going to the bank and submitting the document. It increases the speed and saves time with fewer people involved in the process. Safety of personal information Borrowers may have concerns about the safety of their personal information. And it is valid because various digital frauds often take place worldwide. Hence digital lending platforms go through strict security testing. Also, banks must make sure of mutual safety. So the personal and financial information submitted by the applicant is safe. The lenders do everything to protect the data since it is the priority of every customer. Eligibility Criteria Various banks have their eligible criteria. But standard eligibility criteria need to follow by all financial institutions. They are as follows. The salary of the borrower should be Rs 25,000 and above. Your credit score should be 750 and above. It indicates you are a responsible borrower. When it is more than 800 plus, the borrowers have more chance of approval. Borrowers should have work experience of 1 to 3 years and above. The borrower should be in employment for at least 2 to 5 years. The annual gross income should be at least five lakhs for a self-employed person. How to get a personal loan without documents? Build and maintain a high credit score You should have a credit score of 750 when applying for a personal loan. It is because the lender pays money without security. And they believe that the borrower will repay it. Their trust is the result of your credit score. Having a higher credit score means more chances of approval from the lender. Have a good relationship with a lender Create a good relationship with the lender. It can help you get an instant loan without documents at a low-interest rate. Show them a good repayment history and use their small loan offers. Furthermore, relying on one bank for financial needs is good for getting a loan. You make it easy to assess your history by doing so. Thus you can get quick cash loans whenever required. Keep a low debt-to-income ratio Keep the debt-to-income ratio under 50%. A higher debt ratio may mean your financial condition is not strong. Pay all dues on time if you have a credit card. It has an impact on your eligibility to get a personal loan. Further, you may need to clear the debt with other lenders to improve the chances of approval. Dues cleared on time indicates that the borrower’s financial stability is good. And you can pay back the loan amount. Reasons for application rejection There are many reasons for the rejection of a personal loan without documents. But the most common are as follows. When your credit score is less than 750. When you apply at many places for loans, it makes you appear as a credit-hungry person to credit bureaus. As a result, the loan approval chance decreased. When a bank perceives your employment status as unstable. Ignoring the criterion set by the bank. Providing incorrect information to the bank leads to rejection. Take care of your credit score and provide correct information to the lender. It will increase the chances of approval. [B-02] Conclusion Getting a personal loan without documents can be easy. But you have to take care of several aspects. Maintain a high credit score and clear the dues on time. Also, a good relationship with the lender plays a significant role. Further, fulfil standard eligibility criteria. And finally, meet the bank requirements when you are applying for a personal loan. You are more likely to get a hassle-free loan when everything is right. We hope that the information provided in this article will be helpful. Please visit the Piramal Finance website for more details on a personal loan.

08-11-2023

Personal Loan

Unseen Factors That Affect Your Personal Loan Interest Rate

Personal loans have been a resort to financial troubles for many. Multi-purpose loans help people accomplish a variety of monetary needs. From financing a vacation to debt consolidation, these loans, with their accessible financing options, are the choice for many borrowers. As these loans are not secured and do not involve any collateral, the personal loan rate of interest is usually higher than that of the secured loans. The personal loan interest ranges from 10% to 28% and differs from borrower to borrower. Several unseen factors affect the interest rates, which many loan buyers do not know. If you want to get a personal loan, you should compare and contrast the personal loan rates that banks offer you based on your qualifications. Furthermore, one must know about the factors affecting the loan rates in detail to make an informed decision. Read the complete article to understand your personal loan rates. [B-01] Credit Score Since personal loans are unsecured loans, your credit score plays a pivotal role in deciding if a lender will offer you the loan and at what interest rate. A CIBIL score signifies how you have performed with your previous loans. Timely payments against your loans help improve your CIBIL score. A CIBIL score of 750 or higher is considered strong and allows you to get loans easily. Furthermore, the higher the score, the lower the interest rate. Income Your income also hugely determines the personal loan interest that might be offered to you. Understanding the income factor is simple. The risk of providing loans to borrowers with higher incomes is lower than the risk of offering them to people with lower incomes. As a result, the personal loan rates for borrowers with higher incomes are lower than those offered to borrowers with lower incomes. Job Security Your source of income also impacts the personal loan rate you get. Anyone, who is self-employed, a business owner, or salaried can apply for a personal loan. Nevertheless, the interest rate depends on the security of the job. For example, borrowers working in government or private sector jobs can get better rates than self-employed people because of the job security and the lower risk involved in lending. Repayments and Defaults Your repayments are analyzed before going forward with your application and offering you the loan. If you have been regular and timely with the payments of your previous loans, then you can get a personal loan at a low rate of interest. However, if your lender notices any defaults in your previous loan repayments, then your loan application might be rejected, or you might be offered the money at a high rate of interest. Lender-Borrower Relationship Having bank accounts and fixed deposits with banks creates a positive interpersonal relationship with your lender. If you are borrowing the loan from the same bank with whom you have an account, then there are chances that you can get better personal loan rates here. Banks offer personal interests with lower rates to their loyal customers. Debt-to-Income Ratio The debt-to-income ratio is your debt payments divided by your total income. Suppose, you have a high-paying job. However, the majority of your income goes toward paying your previous debts. In such a case, your net monthly income is affected by the repayments continuing under your name. Consequently, a higher debt-to-income ratio signifies higher risk for lenders, which makes them charge a high-interest rate on your personal loan. Loan Repayment Tenure Personal loan repayment terms are flexible, allowing borrowers to choose the tenure based on their comfort. Borrowers with a repayment tenure of 1-3 years get a lower interest rate. On the other hand, those with a stretched tenure of 3-5 years have to pay back the amount at higher personal loan rates. Employer Reputation The place where you work can also have an impact on your interest rate. If you are working at a reputed company that is more secure, then you might be offered a lower personal loan interest rate. On the contrary, if you are working in an unstable organization, like a start-up, then your interest rate can be higher. Things to consider before applying for a personal loan Several reasons can affect your personal loan rate. However, apart from competitive interest rates, you should also consider other factors before buying a personal loan. Compare and contrast the requirements that different banks offer you to buy a personal loan. Avoid banks that make it hard to get a loan. Instead, choose one that gives you easy money with less paperwork. From the disbursal of the money to the repayment of the loan amount, loans can get messy. Consequently, it is advisable to choose a bank that has a reputed name in the market and offers you a good customer experience. It is also indispensable to consider how responsive your bank is. Before borrowing a personal loan, ensure that your bank is not charging any hidden fees, as this will impact your repayment amount hugely. Opt for a lender that is transparent with its terms and conditions. Personal loans are mostly required urgently. Before filling out an application to your lender, you must also confirm the duration of the fund’s transfer. While some banks can disburse the money within 24 hours, others can take up to 7 days. [B-02] Conclusion Although most of us know how our credit score can affect a personal loan’s rate of interest, other factors also determine your personal loan rate. Your high income, impressive employer’s reputation, and secure job can help you get a lower personal loan rate. On the contrary, a poor CIBIL score, a long repayment tenure, and defaults can lead to the rejection of your application or a higher interest rate. To read more such articles, visit the Piramal Finance website!

08-11-2023

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

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

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