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Personal Loan

How to Secure a Personal Loan without a Salary Slip in India?

A personal loan is an unsecured loan; that is, it doesn’t need much security or collateral. A personal loan requires minimal documentation. Due to the absence of collateral, creditors often request wage receipts or salary slips to validate the applicant’s income. But what if you don’t have a salary slip or a fixed salary? Not everyone is a permanent employee in India. As per studies, most people are exploring business and freelance opportunities. Many are pursuing higher studies or scouting for other jobs. The point is even those without a steady income can need a loan. A salaried individual can easily furnish their salary slip, but the task gets quite challenging for others. So, how can I get a personal loan without a salary slip? It is possible. The process is a little different, but securing an instant loan without a salary slip is quite simple. Read on to find out how to obtain a personal loan without a salary slip in India. [B-01] What is a personal loan? A personal loan is simply a loan offered without collateral or security. It requires less paperwork and is a quick process. People generally prefer personal loans because they can use the funds any way they like, for example, travelling, home renovating, or weddings. Personal loans are different from car loans or home loans. Salaried workers can obtain personal loans, especially if their income is steady. But business owners or self-employed individuals have to resort to other methods. However, many lending institutions willingly provide loans to people without a fixed income. But there are some factors you need to keep in mind. Take a look at what you need to know to secure a personal loan without a salary slip. Things needed for a personal loan without a salary slip 1. Proof of income If you don’t have a salaried job but are earning enough to support yourself and your family, you must produce proof of your source of income. Documents like bank account statements, ITR, or income proof are essential. These documents prove to the lender that you have a stable source of income. If you are seeking an instant loan without an account balance, you must optionally provide Form 16. Providing this documentation will enable you to receive an immediate personal loan clearance based on the bank’s processing timings. The lender wants to make sure that you will be able to pay back the loan. You do not need a salary slip as long as you have a stable alternate income source and can provide proof. 2. High CIBIL score The CIBIL score is the numerical representation of your credit history. If you pay your credit card dues and EMIs on time and have a good loan repayment history, chances are you also have a good CIBIL score. A good CIBIL score inspires confidence in the lender, which consequently authorizes your loan without requiring a salary slip. A high CIBIL score could also result in low-interest rates on personal loans without a salary slip. A good CIBIL score ranges between 600 and 900. It is recommended to aim for a score of 750 or higher. 3. Offer collateral Personal loans do not require collateral, security, or assets, but you are free to do so if you wish. If you are applying for a personal loan without a salary slip, you’ll face challenges in the bank or with any other lender. However, offering collateral will make a good impression on the bank. It shows that you are a professional and serious about obtaining the loan. Since it can be used to pay the loan itself, it inspires confidence in the lender. The collateral could be anything, such as a high-value investment, jewellery, property, or vehicle. However, confirm with the lender which types of assets or collateral are accepted. Offering collateral is an excellent way of securing a loan without a salary slip if the value of your assets exceeds that of the loan amount. 4. Co-applying with a salaried Individual Do you have a close friend or a family member with a fixed income and good history with the lender? If so, your chances of securing a personal loan without a salary slip increase. You can nominate someone as a co-applicant. The co-applicant will share the responsibility of repayment with you. The better the creditworthiness of the co-applicant, the better your chances of getting an instant loan. Applying with a salaried individual, such as a spouse or a parent, ensures you can apply for a personal loan without a salary slip. However, ensure you fully trust your co-applicant because they will have to pay the repayment EMIs if you miss the due date. 5. Relationship with the lender The relationship you have with the lender also makes a difference. While lenders are unlikely to give you a loan just because you know them, it can help you in other avenues. Therefore, if your relations with your lender are sour, it will complicate getting a personal loan without a salary slip. Good relations can help you avail of an instant loan without a salary slip. [B-02] Conclusion It all comes down to credibility when seeking a personal loan without a salary slip. The lender will not offer money to anyone. They need assurances that the borrower will repay the loan on time. So, even if you do not have a salary slip, if you possess an alternate source of income, good CIBIL scores, valuable assets, positive relations with the bank, or a co-applicant, you can secure a loan without a salary slip. If you liked this article on obtaining personal loans without salary slips. Check out Piramal Finance for more insightful blogs on banking information. And if you need a personal loan, you won’t get a better alternative than Piramal Finance.

08-11-2023

Personal Loan

Why Are More People Opting for Personal Loans after COVID-19?

Since COVID-19, personal loans have become more popular. People began taking out personal loans online to rebuild their finances. This is not the only reason, though. Banks also started giving out personal loans during this time because loan restrictions were eased. There are a few types of personal loans that you can take out. To get the best personal loan for yourself, you must understand which factors influence the application and how much they influence it. [B-01] Why Personal Loans Became Prevalent After COVID-19 A personal loan is also known as a consumer loan. Banks give this kind of loan to people who need it for several reasons, including investing in their businesses. COVID-19 caused financial instability in companies and in people’s lives. People lost their jobs when the pandemic was at its worst. Paying their basic utility bills had also become difficult. So, to ensure they had enough money to meet their needs, people began taking out personal loans online. In addition, banks were also under a lot of pressure to meet their targets. So, they began giving out loans with varying rates of interest. People chose to take out personal loans when interest rates went down. This brought the banks and the people onto the same page. Knowing what made personal loans so crucial during this crisis is essential. Factors for Choosing Personal Loans During COVID-19 People choose to get personal loans online for a few important reasons. Among these factors are the following: HealthDuring COVID-19, health problems became worse than ever before. The cost of medical care went up. Health insurance plans only pay for a certain amount and help with certain health issues. In such cases, people opted for personal loans because, with a personal loan, they could use the money for any personal needs. Business LossWhen the pandemic showed up, businesses went into crisis. Due to the lockdown, shops and factories had to shut down, and they lost a lot of money. Business owners chose to pay their other bills with personal loans because it was crucial for them to keep their businesses going. Employment COVID-19 did not only affect self-employed people. People also lost their jobs because of it. Because of the lockdown, it was harder for them to find new jobs. People who lost their jobs, which were their only stable source of income, turned to online personal loans to meet their needs. EducationWhile the professional community had been hit hard by the pandemic, students also faced tough times. Some students found it impossible to afford education because of the high tuition and living expenses. So, students or their parents also chose to apply for personal loans online to avoid dropping out and wasting a year or more. Benefits of Taking Out a Personal Loan The coronavirus pandemic has severely affected India’s GDP. A personal loan is the best option when the economy is down and companies continue to lay off their employees. Many lenders are providing funds to help with the financial and emotional strain brought on by the pandemic. Most of the time, these personal loans are given without the need for any collateral. There are many other unique benefits to taking out a personal loan online: Quick Processing:The processing time is minimal because personal loans are usually requested when a person is in urgent need of cash. Also, since these loans do not need collateral, the application process is quick and smooth. Variety of Offers:Each lender offers a unique selection of EMI plans and loan tenures for their online personal loan applications. Given the economic climate, interest rates are much lower than before. You can find a range of rates offered by various lenders in the market. Convenient:Most lenders now offer personal loans online. So, in addition to being quick, the process also consumes minimal time and energy. Also, online applications require no paperwork, reducing the hassle. Multi-Purpose:A personal loan can be used for anything. If a person has lost their job because of the pandemic, they can avail of a loan to pay for their basic needs until they find another source of income. A personal loan can also be helpful to small business owners. This form of financial aid might help get a company back on its feet if it has suffered losses during the pandemic. Because of the online nature of their courses, students need some additional funding to buy computers, tablets, and other necessities. A personal loan processed online can be used for all their needs, from covering fees and overdue loans to meeting sudden expenses. How to apply for personal loans? Here are the steps to follow to apply for a personal loan online: Visit your lender’s website. Create a new account or log in to an existing one to begin the application. Fill out the form with all your personal and professional details. Include details of your loan amount request based on your fiscal needs. Upload the documents (ID proof, address proof, bank statement, and payment slips) required to process your personal loan online. After the application has been submitted, the lender will review it. If your request is sanctioned, the loan amount is credited to your savings account within hours. Before applying for your personal loan online, you can use an EMI calculator to get a rough idea of the interest rate. A personal loan calculator makes it easier to understand how EMIs work. [B-02] Conclusion All over the world, the pandemic has caused severe issues. Both people and firms faced huge losses. Personal loans online have been a saviour for those affected by the pandemic. Anyone can get a personal loan from banks, online lenders, or credit unions. To learn more about personal loans, you can visit Piramal Finance. Make sure you also check out their other services and products.

08-11-2023

Personal Loan

Discover the Advantages of a Personal Loan

Are you planning to buy your dream car? Are you planning a royal wedding? Then you can take a personal loan to meet up on these expenses and other expenses too, so you can complete your bucket list without even providing collateral. Apart from risky motives, there are no final use restrictions. You can take out a personal loan for marriage ceremonies, education, trips, buying your dream home or car, medical emergencies, etc. Personal loans are a popular funding source due to their adaptability, lack of paperwork, and simpler processing than other varieties of loans. It typically comes with a smaller loan term of between one and five years. Therefore, there are many advantages to taking a personal loan. In this article, we will discover the benefits of personal loans. [B-01] Advantages of Personal Loan: People prefer personal loans for a reason, or many. There are multiple advantages to taking out a personal loan: Quick Approval and Disbursal: A personal loan can be obtained quickly by the borrower, usually within a day. You can get it quickly if you have a good credit score. Minimal Documentation: You do not need to provide many documents, unlike other loans. Also, you can submit the required documents online. Pocket Friendly Repayment: Payment terms are flexible, and you can pay in easy monthly instalments. You can pick a tenure that allows you to optimize payments and is best suited for your pocket. Multiple Payment Options: It is possible to either pay online or request post-dated cheques. Most lenders also allow the payment of just interest for the first few months. It will initially keep the burden of EMI minimal. No Restriction on End-Use: As mentioned earlier, you can use the loan amount for anything you like, like a vacation, home upgrades, expensive education, medical emergencies, etc. Lower Interest Rate: The rate of interest on personal loans is comparatively lower than that on credit cards. On July 20, 2022, the average interest rate for personal loans was 10.28%, compared to 16.80% for credit cards. With a good credit score, you can get a personal loan at an interest rate much lower than credit cards’. No collateral: You are not required to come up with any collateral for an unsecured instant personal loan. That means you don’t have to put up any assets as collateral, like a car or home, for an instant personal loan. However, if you are unable to repay the loan as agreed with the lender, you will face major financial and credit setbacks. But you will not lose your home or your car. If you are in any situation where you are short on cash, personal loans can serve as a good backup plan. However, you should not use it randomly. You must acquire a personal loan only to cover unpreventable expenditures or to make a long-term investment. Better credit score: If you are new to credit or have a low credit score, securing affordable personal loans and paying them back on time is a good way of building or strengthening your credit score. You must only borrow the amount that you can repay on time. Otherwise, it will adversely affect your credit score. Lenient Eligibility Criteria: Meeting the eligibility criteria for a personal loan is not so hard. You should be an Indian resident with a regular source of income. You should be between 25-60 years old at the time of loan maturity and have a good credit score. Substantial Loan Amount: Many lenders offer a substantial amount for a personal loan. Check with your lender about the loan limits they offer. Hassle-Free Process:The documentation process for a personal loan is hassle-free. Only a few documents are required, and you can easily complete the process online. Once your application is approved, you get the entire amount in your account within a day. Tax Benefits: If you take a personal loan you can also get additional tax benefits. When you use the personal loan funds to start your own small business, you can also claim tax deductions under Section 24(b) of the Income Tax Act of 1961. You will be able to claim a tax deduction of Rs. 2 lakhs per year for loan interest paid. To claim the tax deduction, you must demonstrate to the appropriate agencies that the loan amount is being utilized for that specific purpose. [B-02] Final thoughts We hope that you now understand the importance and benefits of taking personal loans for any purpose with only a few documents required and no collateral. Also, the interest rates are comparatively lower than those on credit card loans. However, keep in mind that it is your debt, so you must repay it on time; otherwise, you will face financial difficulties that may take years to resolve. Also, you should always review the terms and conditions before applying for a personal loan. Lastly, if you need help with your finances, you can always ask for help from experts like Piramal Finance. They will guide you on when and how to apply for an instant personal loan. They can even suggest whether a business loan or a personal loan would be more beneficial.

08-11-2023

Personal Loan

Step By Step Process to Calculate EMI for Personal Loan

EMI stands for equated monthly installment. It represents the monthly payment amount made towards your loan principal. This figure depends on the amount of money borrowed, the interest rate, and the tenure of repayment. Calculating your EMI can be an intimidating process. Thanks to technology, there are now many tools that can do it for you. Use our EMI calculator below to easily calculate EMI for personal loans as well as other parameters such as interest rate, loan amount, repayment period, and more! [B-01] How to Calculate EMI for Personal Loan? An EMI calculator is a tool that helps you understand the monthly cost of your loan. Simply plug in numbers like the interest rate and duration of the loan into the calculator. It will tell you how much you need to pay each month. This is known as an “equated monthly installment” or EMI. An EMI calculator can help you compare different personal loan rates in India, terms, and fees. It also lets you try out different situations, like switching from a variable-rate loan to a fixed-rate loan or changing the length of your loan. Things Needed While Using an EMI Calculator Although there may be a few more considerations, most Indian banks follow several guidelines that prospective borrowers can utilize when they apply for a personal loan. You can use the personal loan EMI calculator to compute EMI. With a little fiddling of numbers, you can find the correct EMI value, the lesser of which is generally better. Here are the numbers you need to calculate EMI for personal loan: #1 Principal Loan Amount The first thing you need is the principal amount of your personal loan. In other words, the amount of money that was borrowed in order to take out the personal loan. #2 Interest Rate on Your Personal Loan You need to know the interest rate charged by banks on personal loans. This can be found on your bank’s website, or you can call them and ask directly. If not, then search online and compare personal loan rates in India across different banks. #3 Loan Tenure Loan tenure refers to the time period over which you will repay your loan. Usually, it ranges from 3–10 years, but it can be as long as 20 years. To calculate EMI for personal loan manually, you need to enter all the numbers in the EMI calculator. The formula is as follows: EMI = P.r (1+r)n((1+r)n-1) Where EMI = equated monthly installment r = rate of interest P = Principal loan amount n = Tenure Different Methods to Calculate EMI for Personal Loans There are three different methods to calculate EMI for personal loan: Calculate EMI for Personal Loan Manually Step 1: You just need to know the principal loan amount, the interest rate at which you borrow money, and the tenure of the loan. Step 2: Enter all the values in the EMI formula. EMI = P.r (1+r)n((1+r)n-1) Step 3: Get the result. The final result is your EMI, which you need to pay on a monthly basis. Personal Loan EMI Calculation on MS-Excel to Calculate EMI for Personal Loan In MS Excel, there is a built-in function called PMT, which uses the same three variables but in a different notation. With little to no expertise in MS Excel, anyone can use this tool as there are only three variables (NPER, RATE, and PV). Here is the formula you need to input into Excel EMI = PMT (RATE, NPER, PV) Where R= interest rate NPER= number of periods PV= present value of your loan Using a Personal Loan EMI calculator It is one of the easiest ways to calculate EMI for personal loan. Step 1: Open the calculator. Step 2: Enter the required details, like the principal amount, rate of interest, and tenure. Step 3: Click on “calculate.” On the screen, the calculator will immediately show you how much EMI you need to pay on the personal loan, along with the interest rate. Let’s take two examples to understand this better: Example 1: As a salaried person, you borrow a loan from HDFC Bank. The loan you want to borrow is INR 100,000 for 3 years. The HDFC bank gives you this loan at an interest rate of 10%. So, calculate EMI for personal loan that you pay as follows Solution: Given, Principal loan amount: INR 1 lakh Tenure: 3 years Interest Rate: 10% Let’s put the value in the formula EMI = P.r (1+r)n((1+r)n-1) Hence, the monthly personal loan EMI is INR 32,267. Here, the total payable interest is INR 1,61,619. Example 2: Mr. Sharma wants to take a personal loan from SBI Bank for 5 years. The total amount he wants to borrow is 1 lakh rupees, and the interest rate on this loan is 12%. How much EMI does Mr. Sharma need to pay every month? Solution: Given, The principal amount is INR 1 lakh SBI gives personal loans at a 12% interest rate The loan amount’s tenure is 5 years Put all the values in the formula EMI = P.r (1+r)n((1+r)n-1) The EMI amount is INR 2,224 and the total interest value is INR 33,467. [B-02] The Bottom Line Estimating your monthly loan installments with a personal loan EMI calculator can help you assess the affordability of a loan. This gives you peace of mind before deciding to apply for one. The first thing to do to calculate EMI for personal loan is to use an EMI calculator. This will help you find out how much your loan installment will be, along with the principal amount and interest rate. To learn more about personal loans, you can check out the Piramal Finance website.

08-11-2023

Personal Loan

Personal Loan In Delhi NCR: Lesser EMI, Apply Now

Do you need money to start up your own business? Do you want to buy a house or take care of your family? Are you looking forward to getting financial security before settling down? If yes, then a personal loan is the right option for you. A personal loan gives you access to a sum of money that you can use as and when you need it. Furthermore, the loan offers several advantages over other funding options. It doesn’t need collateral; thus, there are no conditions or restrictions on who can apply for it. If you are looking for an easy way to get a personal loan, then you should reach out to Piramal Finance. We offer personal loans ideal for people who need money as a temporary financial backup. Also, our flexible personal loan policies and simple application process make us the ideal option for getting a loan. [B-01] Benefits of getting a Personal Loan from Piramal Finance Zero pre-payment and foreclosure charges Pre-payment fines and foreclosure charges on personal loans are two of the most common things borrowers see when they take out a personal loan. The main goal of pre-payment penalties is to discourage borrowers to pay off their debts in full before they are due, as most lenders will charge an interest rate penalty for every month that you don’t pay your debt. But, many people underestimate how much it costs to prevent foreclosure on their loan. Loan starting from Rs. 1 lakh to Rs. 10 lakhs it is also important to know whether the least amount you need to borrow is lower or higher than the amount you need to invest to qualify for the loan. At Piramal Finance you can get a loan of as least as an amount of Rs 1 lakh and most of Rs 10 Lakhs. Least documentation For a loan to get approved, it must have adequate information and documents. Without these, it cannot consider an appropriate form of financing for a project. But, it is possible at Piramal Finance to get loans with the least documentation. This makes the process very easy and less time taking. Quick sanction and instant disbursals A disbursal is a process by which money gets transferred from one person or entity to another. In this context, it refers to when you take money in and out as a personal loan for different purposes. Piramal Finance allows quick and easy loan disbursals. Pocket-friendly monthly EMIs The EMIs payment system is a smart and time-saving solution to your payment needs. But it can be stressful if the amount of EMI is a big part of your monthly income. Thus, Piramal Finance offers pocket-friendly EMIs on long-term loans to keep you stress-free. Flexible payment tenure starting from 12 to 60 months To keep the EMIs pocket-friendly, the EMI tenure for the personal loan is flexible. Flexible payment tenure starting from 12 to 60 months is what you get when you choose a personal loan with flexible payment terms. You can use the money whenever you need it, and there are no pre-payment penalties. The main benefit of choosing an easy payment plan is that it can help borrowers get back on their feet faster and manage their finances more easily. It’s ideal for those who are struggling to make ends meet and need some immediate short-term cash help. Clubbing of income for higher loan eligibility Piramal Finance allows borrowers to add one co-borrower. If you want to add a co-borrower, be sure that they have good credit. And, if you’re adding a co-borrower that is not related by blood, your lender may need some proof of their relationship with you. Lenders may also need you to show proof of income. Adding a co-borrower can increase your eligibility for a loan. Who can apply? If you are a salaried employee working under any government institution, private sector, public sector, MNSc or related companies, partnership firms, and any proprietorship concern, then you can apply for a personal loan. But, there are some other basic requirements too. Age The minimum age of the applicant must be 21 years. The maximum age of the applicant must be 60 at the time of maturity of any loan. Income The Application must be earning at least Rs. 25,000/- per month. Work Experience The Applicant must be working for a minimum of 6 months in the current organisation What are the Documents Required? Following are the documents required to submit to get the loan processed: A PAN Card An identity proof i.e., a passport, a driving license, an Aadhar card, or Voter’s identity card. Any address proof like registered leave or lease agreement, passport, driving license, Aadhar card, voter identity card, and utility bills like Telephone Bill /Electricity Bill etc. (not more than three months old) An income proof that should either include your Last month’s salary slips or your bank statements from the previous three months A Co-applicant. If clubbing of income you need for higher loan eligibility, then a co-applicant is mandatory. You can only make your Spouse a co-applicant. Also, all the above documents of the co-applicant will be required at the time of loan application as well. [B-02] Conclusion Piramal Finance offers a limited amount of personal loans to qualified individuals. Yet, unlike other financial institutions, we have several different loan options available for you to choose from, making it easier for you to get the loan that meets your needs. Regardless of your financial situation, we aim to make your life easier and help you get the best personal loan possible. You can contact us via email at customercare@piramal.in or call 1800 266 6444 for more help. Our team members are available to take your calls from 9 AM to 6 PM from Monday to Saturday.

08-11-2023

Personal Loan

Reasons for Rejection of Your Personal Loan Application

When you need funds urgently, you apply for personal loans. It could be used to pay for a wedding, a trip, higher education, or to repay debt. But not all personal loan applications are accepted. Rejection of personal loans is more common than you think. Here is a guide to help you understand the reasons for the rejection of personal loans. We will list the reasons for rejection and how to avoid it. Applying for a personal loan is easy. You need a few documents. As soon as the verification is completed, the loan amount is deposited in your account. It is a simple process. However, many applications are rejected. Why do you think it happens? Let’s take a look. [B-01] What Are the Reasons for Personal Loan Rejection? Here are some points you must keep in mind before you apply for a personal loan to keep it from getting rejected. Low Credit Score: Your credit score shows that you can be trusted with credit. It shows the lenders that you are capable of repaying that loan. If you have a low credit score, the chances of a personal loan rejection are higher. Low or Unsteady Income: Irregular or low income is another factor for loan rejection. When you apply for personal loans, your income determines your eligibility. If you don’t have a regular or sizeable income, your chances of defaulting are higher. You will not have the ability to repay the loan. So, your personal loan application is rejected if your income does not meet the criteria. Unstable Employment: Switching jobs often affects personal loan applications negatively. So does working for an unlisted or unregistered company. The lenders will reject your loan application if you quit jobs often or keep moving from one job to another. It shows your unreliability. Those with unsteady jobs, like freelancers, often face difficulty getting loans. High Debt or a few Enquiries/Applications for Loans: If you have already taken a few loans or have made multiple inquiries, it will negatively affect your loan application. Banks refute those who take out numerous loans. It shows they have huge debts they can’t manage. It’s likely they will default. If you have multiple loans, this can be another reason for the rejection of a personal loan. Also, if you keep making inquiries about loans, your credit score gets negatively affected. Incomplete or Incorrect Forms: Many times, individuals make errors while filling out forms. If there are discrepancies on the personal loan application, it will be difficult for banks to verify the information. Hence, they will reject your loan application. Falling Short of Eligibility Criteria: Sometimes, the borrowers don’t meet the eligibility criteria for the loan, which leads to the rejection of personal loans. Now that we know the reasons for the rejection of personal loans, let’s take a look at how you can overcome this problem. Ways to Prevent Personal Loan Rejection Yes, there are measures you can take to make sure your application doesn’t get rejected. Here are a few things to do beforehand. Do not take out multiple loans. Also, don’t keep enquiring about loans constantly. Borrowing more money from different lenders will only increase the chances of rejection. It will also give the impression that your financial health is terrible. Do not default on repayments. Make timely payments. When banks see your repayment history, they want to know if you’re reliable or not. Regular repayment is a good indicator that they can count on you for timely EMI payments. It will prevent the rejection of your personal loan application. If your credit utilization is low—under 30%—the chances of getting your personal loans approved are high. Maintain a good CIBIL score. A score between 750 and 900 is considered ideal. Fill out personal loan applications carefully and avoid mistakes. You don’t want your personal loan application rejected only because of a misspelling. Also, make sure you submit all required documents. Avoid switching jobs frequently and show a stable income. Research the lender you are about to approach about their eligibility criteria. Make sure you fit their loan criteria before submitting your application. Maintaining Your CIBIL Score CIBIL score plays a vital role in the loan process. If your CIBIL score is not high, chances are your loan application will be rejected. What can you do in that case? Apply for personal loans with another family member who has a high income and CIBIL score. Pay off your debts promptly. It will improve your credit score over a few months. If you are a freelancer, show multiple sources of income. Strengthen your case by showing quarterly sales or salary slips, contracts, etc. Showing income from other sources is proof that you can repay loans and improve your eligibility. If you switch jobs frequently, apply for a loan after you have successfully held a job for a few months. Lenders like to know you have a stable income source. It shows you can repay your debts. Go for lenders with simple eligibility criteria for personal loans, like low credit score requirements, and flexible repayment methods. [B-02] Conclusion There could be many reasons for your personal loans getting rejected. But you can avoid it by keeping the above-mentioned factors in mind. Meet the lenders and understand their eligibility criteria. Ask them what they look for in a loan application to approve it. If nothing works, collateral might help you get a personal loan. Lenders prefer secured loans as they guarantee recovery of their loan amount. To learn more about why personal loans get rejected, personal loan applications are rejected and how one can strengthen them, visit the Piramal Finance website.

08-11-2023

Personal Loan

What Are the Requirements to Apply for a Personal Loan in 2022

Personal loans are one of the easiest ways to get emergency funds. The best benefit of personal loans is the quick access they give to much-needed funds. Customers can get personal loans from financial institutions without providing any sort of security in exchange for the money they borrow. Personal loans can be tailored to meet the needs of a wide range of borrowers. Personal loans come in a variety of forms to help borrowers fulfill their budgetary needs. For every purpose, from paying for a child’s wedding or college tuition to making necessary home repairs or buying a big-ticket item, one can find a unique personal loan option to suit their needs. Among the most common uses for personal loans are to finance big life events like weddings, exotic vacations, home improvements, medical emergencies, and the purchase of large ticket items like cars or boats. If someone wants detailed information regarding obtaining a personal loan, this is the ideal place. Now is the time for our discussion. [B-01] Why is a Personal Loan a Great Financial Tool? A personal loan has various benefits and features that make it a great financial asset for us. It comes in handy in times of emergency, festive seasons, buying a car, or building a dream house. Given below are a few features of an unsecured personal loan. No Security Needed One advantage of obtaining a personal loan online is that they are usually unsecured. This means that a person won’t need to put up any collateral to get a loan. They can apply for a low-interest personal loan if they satisfy the qualifications, but doing so could raise their interest rate. Very Little Paperwork The process of verification and documentation has been simplified in the digital age. True, instant personal loans are approved quickly and require minimal paperwork. Quick and easy approval Getting accepted for a personal loan is a straightforward and quick process. It’s the best choice when money gets tight. The digitalization of the procedure has also sped up the verification process. No restriction on the use Unsecured Personal loans are multipurpose loans that can be used for anything, be it buying a car, traveling, paying festive bills, or dealing with financial emergencies. However, it can’t be used for any unlawful activity. Unlike a home loan that can be used only while buying or building a house or a car loan that can be used only for buying a car, a personal loan is not restricted when it comes to its use. Criteria for Approval of a Personal Loan Personal loan eligibility requirements can vary greatly depending on the lending institution. The basic requirements for qualifying for a personal loan include: For those who work for themselves, the age cap begins at 28 and rises to 65. The minimum age to practice medicine is set at 25, with no upper age limit for doctors. A person has to be an entrepreneur. Income standards are set by the loan companies. Some businesses and financial institutions are willing to lend money regardless of income level, while others would rather not take the risk. A person needs at least five years’ experience in business or self-employment. For physicians, that number of years of practice is 3. How Can You Get Approved for a Personal Loan Every person’s financial situation is different, so there is no universal formula for getting approved for a personal loan. There are, however, guidelines and suggestions that can boost the chances of approval of the loan. 1. Need a minimum of 670 on the credit report Keeping a credit score above 670 is going to help the application stand out. To get the best rates, a person needs a score of at least 720, but we recommend at least 750. 2. Monthly earnings that don’t fluctuate To get a loan one will have to show the minimum income to the lenders, which might vary widely; in fact, some have none at all. But one must show proof of a minimum amount of steady income that is enough to pay the monthly payments. 3. DTI less or equal to 36% Although there are lenders out there that will consider applicants with DTIs of up to 50%, one’s best bet is to keep it below 36%. Since each lender has its own minimum standards, it is in someone’s best interest to pre-qualify as often as possible and find out what criteria they need to meet. This way, a person can apply for loans with the knowledge that they are a good fit for their circumstances. How to Get an Unsecured Personal Loan A lot of the time, a person can apply for a personal loan requirement online, and they might hear back the same day. There are, however, steps that one needs to take before applying. Before starting the application process for a personal loan requirement, a person should think about the following: Consider a trip to the credit bureau. Improve credit by eliminating errors and reducing debt. Pick a borrowing amount that works. Get prequalified by multiple lenders so a person can compare rates. Put in a formal request for a loan. [B-02] Conclusion: Need a personal loan and want to work with a reliable lender? It provides personal loans right away with no paperwork required and rates and terms that are affordable. In addition to this, we promise rapid loan processing and disbursement. Visit Piramal Finance to learn more about personal loan requirements and how to secure one.

08-11-2023

Personal Loan

For Personal Loans, What Are The Maximum And Minimum Tenures

Are you in immediate need of money but don’t have the funds? All you need to do is apply for a personal loan to fulfill those needs. The best part about a personal loan is that you don’t have to keep anything as a security or collateral, unlike gold loans, where gold is pledged for the money. However, you must consider a few things with a personal loan, such as fees, interest rates, and most importantly, the minimum and maximum tenure of the loan by when you have to repay the loan. Therefore, when you apply for a personal loan, make sure you consider and check all the options given by the lender. No matter how lucrative, instant personal loans can cause serious problems if not given enough consideration. So, let us find out in detail what a personal loan is and the minimum and maximum tenure of personal loans. [B-01] What Is A Personal Loan? Personal loans come in handy when you don’t have any quick cash, and the need is urgent. The need for money should be huge. A personal loan is an example of an instalment credit, where you get money as a lump sum payment. These types of loans are for personal use. You can use it for medical expenses, education, international trip, wedding, etc. Thus, a personal loan is your best choice here. You can apply for a personal loan through hundreds of quick, simple loan choices available. You can apply for most of them in 10 minutes, all thanks to the growth of peer-to-peer and online lenders. But there is a catch here, depending on how quickly the lender receives and processes your documentation, the entire approval procedure of an instant personal loan could take up to one working week. Depending on the lender, personal loans usually range from 12 to 60 months. Lenders charge interest rates along with documentation or administrative fees. These fees are deducted from your loan amount once it is accepted. Moving ahead, we will look at the best tenure for repaying a personal loan. Tenure Of A Personal Loan The borrowers have preferences over the tenure of the loan payment. For example, if you have taken a huge loan, you will get more time to return the money, and the EMIs will also be less. But, you can also go for less loan amount with lesser loan repayment tenure. Of course, this will put a strain on your finances for some time, but you will be done with such a loan early. Let us now look at the minimum and maximum tenure of personal loans: Minimum tenure of Instant Personal LoanWhen you take a personal loan, you must start repaying the same within 30 days and in instalments. The lenders give you a time period of six months to 12 months to pay back the loan. After that, you can repay the same as per the loan amount you have taken from them. The minimum tenure usually differs a lot from lender to lender. If your income is high, you can quickly repay your loans. The maximum tenure of an Instant Personal Loan The maximum tenure of a personal loan is 42 months to 60 months, which is given by the lender. This tenure also differs as per the lender. The tenure of 42 months allows the borrower to return through lower EMIs, thus not putting any strain on your monthly budget and income. It is best suited for those people whose income is low and who have other financial duties. Choosing the correct tenure One of the most vital things in a personal loan is deciding the tenure period. Note that your monthly EMI payment will be reduced if the loan’s term is longer. Larger EMI costs are linked with shorter terms, but your loan will be paid off sooner. If you have a short-term money issue, your bank may extend the loan’s tenure, lowering your monthly EMI payments burden. But longer loan tenure results in higher interest payments, raising the cost of the principal amount borrowed. Your loan tenure should be decided by many factors, starting with the amount you desire to borrow. For example, choosing a long tenure is not a good idea if your loan amount is tiny, such as two times your monthly salary. A longer tenure is good if your loan amount is higher than 4 times your monthly income. Your monthly repayment amount will get low as a result, and you can also pre-close your loan for a small fee. But, if your salary is high and allows you to save enough, you can choose a shorter loan term and avoid accruing more interest over time. [B-02] The Bottom Line Now that you understood a personal loan’s minimum and maximum tenure, you will have an idea of the impact an instant personal loan repayment period can have on your money and income. Still, if you are unclear about choosing less tenure or more tenure to clear your loans, get in touch with Piramal Finance. Piramal finance, where the customer is god, would clarify all the concepts and help you in the process. To read more such articles, visit https://www.piramalfinance.com/ right now!

08-11-2023

Personal Loan

Use Our Online EMI Calculator to Calculate your Personal Loan EMIs

In India, taking loans has become quite common in society. This has increased because many lending institutions offer good offers, low interest rates, etc. And with various easy repayment options, people choose to take loans. They take out loans for many reasons. The list includes buying a house, starting a business, paying off credit card debts, dealing with medical emergencies, etc. With many loan options available, choosing the right one for your needs can be tough. A personal loan is an unsecured loan without collateral. However, you must understand the terms of this loan. Before signing the loan agreement, learn the interest rate, repayment tenure, and processing fees. This is where a personal loan calculator is helpful. This finance tool can help you plan and manage your loan repayment. When using a personal loan EMI calculator online, you can easily calculate the monthly EMI. In this blog, you will find out about personal loan calculators. You will learn how to use an EMI calculator online and the eligibility criteria. [B-01] What is a Personal Loan Calculator? You never know when an emergency might come up in your life. There are many times when you need to take out a personal loan. A secured loan doesn’t work in such situations, as it involves collateral or security. It can take weeks or months for approval. But you can get a personal loan from banks and NBFCs (Non-Banking Financial Companies) without pledging any property as collateral. In such cases, it is critical to be fully informed about EMIs. Study to know if you can afford to pay for them. This is where a personal loan calculator comes in handy. A personal loan EMI calculator allows you to estimate the monthly payments for your personal loan. You can calculate the total interest payable on the loan for the entire tenure. How Do You Use a Personal Loan Calculator Online? Using a personal loan calculator online is easy. All you have to do is fill in the following details: Loan amount Interest rate Repayment tenure After this, the calculator automatically calculates your monthly EMI. For example, if you choose a loan amount of INR 3 lakh, it has a 12% annual interest rate for a three-year term. The personal loan EMI calculator will show your monthly EMI. On the next page, you can see the total interest payable over the entire loan tenure. You can also change the variables and see how it affects your EMI. This helps you get affordable loans without disturbing your monthly budget. It eases your monthly repayment process. The steps to be followed to use our online personal loan EMI calculator are as follows: Visit our website and click on the ‘EMI calculator’ option. Enter the final loan amount you want to avail. Enter the applicable interest rate for the loan. It ranges from 10% to 20%. Select the repayment period from 12 months to 60 months. Click ‘calculate’ to get your monthly EMI and the total interest payable. How to Check Personal Loan Eligibility? Eligibility is a crucial factor in obtaining any loan. The lender will assess your eligibility based on your income, credit score, employment status, and repayment history. Below are the general eligibility criteria for availing of a personal loan: You should be between 21 and 60 years old. Your minimum monthly income should be at least INR 15,000. A good credit score (more than 700) is necessary. You can get personal loans at competitive interest rates. You should be employed consistently for at least six months. It shows a stable income record. This vouches for your ability to repay the loan amount. An online personal loan calculator helps you check your eligibility. Now, efficiently plan loan repayment. It’s important to avoid any default in payments. What Factors Influence Your Personal Loan EMI? When you use a personal loan calculator, three main factors will affect the EMI amount: Loan amount: The higher the loan amount taken, the higher your EMI will be. Interest rate: Higher interest rates will lead to a higher EMI amount. Duration to repay the loan: A longer length of time to pay back the loan means lower EMIs but more interest paid on the loan overall. Existing debt: If you already have other loans, your EMI amount may increase. It will be deducted from your total debt repayment capacity. Credit score: A good credit score can help you get a lower interest rate and, in turn, lower EMIs. On the other hand, a poor credit score can result in a higher interest rate and EMIs. Age and income: A higher income and a younger age can increase your eligibility for a loan and result in lower EMIs. Type of interest rate: The type of interest rate, whether fixed or floating, will also affect your EMI. A fixed interest rate means that the EMI stays the same over the life of the loan. A floating interest rate, on the other hand, means that the EMI can change over the life of the loan. Change in interest rate or loan tenure: This factor only applies if you have a floating interest rate. A change in the interest rate will affect your EMI, as will a change in loan tenure as the EMI is recalculated. It is important to carefully consider these factors before availing of a personal loan and to use an EMI calculator to plan for timely loan repayment. Use our online personal loan EMI calculator and apply for a loan now! Tips to Improve Personal Loan Eligibility A personal loan is easily accessible, provided applicants satisfy lenders’ personal loan eligibility standards. But there are specific steps you can take to enhance your chances of getting a personal loan: Maintain a good credit score by promptly repaying all your debts. Keep a stable job with a steady flow of income. Avoid multiple loan applications, as they may lower your credit score. Keep a healthy savings account balance, as it shows financial stability to lenders. Follow these steps carefully. You can easily improve your personal loan eligibility for attractive interest rates and repayment terms. [B-02] Conclusion An online EMI calculator helps determine your monthly instalments and the total interest payable on secured and personal loans. The steps involved in using the calculator are pretty simple and help you get an overview of your personal loan amount, interest rate, and tenure before finalizing the loan. To read more interesting blogs on managing personal finances, you can go through the blog section of our website. Visit the Piramal Finance website to explore loan options and other products and services.

08-11-2023