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Personal Loan

What Could be the EMI for a 10 lakh Personal Loan?

Individuals can easily obtain a small personal loan online of up to Rs. 10 lakhs (or possibly up to Rs. 50 lakhs, depending on other requirements) from well-known banks and NBFCs. Many elements influence the lender’s loan sanctioning decision, and it is best to be informed of the eligibility requirements, the application process, the EMI amount, and the term in advance so that the loan amount is disbursed quickly and without complications. Small personal loans online are available from banks and NBFCs in amounts ranging from Rs 10,000 to Rs 40 lakh. Your chances of obtaining a loan for Rs. 10 lakh depend largely on your monthly income, existing loan repayment commitments, and EMI/NMI ratio, which is the percentage of your net monthly income that is used to pay off both your current EMIs and the EMI of the new loan. It is crucial to remember that lenders typically prefer to grant small personal loans online to applicants with an EMI/NMI ratio of up to 50–55 percent. Your credit rating, profession, and employer profile are additional factors that affect loan approval. But what is a personal loan? [B-01] What is a Personal Loan? You will be given an unsecured personal loan by financial institutions based on your employment history, profession, income level, ability to repay the loan, and credit history. A personal loan, which is also called a consumer loan, can help you pay for anything you need right away.Points to Note Before Applying for a Small Personal Loan Online of Rs 10 Lakh When we talk about personal loans and when you request a small personal loan online with a high-interest rate, the lender, whether a bank or an NBFC, will closely examine the eligibility conditions. Let us take a look at it. Credit Score: Lenders look at your credit score and history when you apply for any type of credit. If your credit score from CIBIL or any other credit bureau is less than 750, your loan application for a small Personal Loan online of Rs 10 lakh is likely to be rejected. Income: Because an Rs. 10 lakh small personal loan online has a significant EMI obligation, you must have a substantial salary and appropriate disposable income, which must be reflected in your bank statement(s). Employment: Particularly if you’re looking for a sizable, small Personal Loan online, your employment stability and employer’s reputation are crucial. Reputable companies like MNCs or PSUs are preferred by banks and NBFCs since they reduce their credit risk. Your employment history is also taken into account, so if you have recently started your professional career or have an inconsistent job history, lenders are likely to reject your loan application. Debt obligations: Lenders consider the amount of debt you currently have and if there is enough room for you to take out a new loan and repay it properly. The Fixed Obligation to Income Ratio (FOIR), measures this repayment capability. An existing high FOIR can reduce your chances of getting your loan application accepted for a small Personal Loan online of Rs 10 lakh. Small Personal Loan Online Interest Rates Because the EMIs on a personal loan of Rs 10 lakh are so high, you should look at all the offers from banks and NBFCs and choose the best and most appropriate one to lower the interest cost. Interest Rates on Loans Provided by Various Indian Banks and NBFCs Banks/NBFCsInterest Rates(p.a.)HDFC Bank11.00% onwardsSBI10.55%-15.05%ICICI Bank10.75% onwardsAxis Bank10.49% onwardsKotak Mahindra Bank10.99% onwardsIndusInd Bank10.49% onwardsIDFC First Bank10.49% onwardsBajaj Finserv13.00% onwardsTata Capital10.99% onwards For a personal loan of Rs. 10 lakh with a term of 1 to 5 years, the EMI is Loan Amount (Rs)Tenure (years)Interest Rate (p.a.)EMI (Rs)10 lakhs111%88,38210 lakhs211%46,60810 lakhs311%32,73910 lakhs411%25,84610 lakhs511%21,742 Features of a Personal Loan Most banks and NBFCs provide personal loan interest rates starting at 10.25% p.a. and upwards. Personal loans at lower interest rates may be available from several PSU banks. Loan terms are typically up to 5 years, although certain lenders may extend them to 7 years. Processing fees typically vary from 2% to 4%. Some lenders reduce processing fees during holiday promotions. The loan amount can only be used to cover personal needs, not for speculative purposes. Eligibility for a Personal Loan of Rs 10 Lakh Nationality: Indian Age: 21 years (loan application) and 67 years (loan maturity) 15,000 rupees per month is the minimum income People who are self-employed or who work for private limited companies or public sector undertakings and have at least one year of work experience can get the loan amount In order to qualify for a personal loan of Rs 10 lakh at lower interest rates, applicants must have a CIBIL score of 750 or higher Documents Required for Personal Loan PAN card ID proof Signature proof Address proof ITR/Form 16 Bank statements for the past six months Last 3 months’ salary slips For Self-employed ITR for the previous two years, as well as the previous two years’ balance sheet, P&L account, and income calculation. Form 26 AS, TDS certificate (Form 16A), or Income Tax Challan for income tax declared. Business Proof [B-02] Conclusion Individuals can now easily obtain a personal loan of up to Rs. 10 lakhs. This is a facility and service offered by banks and non-bank financial companies. The term in advance, i.e., the loan amount, is disbursed quickly and without complications. Piramal Finance is an excellent financing solution for customers looking for low-interest personal loans. Visit Piramal Finance’s website to learn more about its offerings and services.

08-11-2023

Personal Loan

What Are The Personal Loan Offers In Festival At Piramal Finance

With the festive season already here and most of us looking forward to a lot of fun and frolic, it is an apt time to consider your financial needs. However, juggling finances and planning lavish celebrations for loved ones can be difficult for many people. We all want to make the most of this year’s festivities, but sometimes it can be hard to afford everything on our wish lists. Whether it is a vacation or just a weekend getaway, you need to plan ahead. A personal loan offers a chance to meet your short-term financial needs without relying on credit cards or overdrafts. It can help you meet expenses like medical bills, wedding costs, travel plans, home renovation costs, etc., without worrying about repayment deadlines or penalties for late payments. [B-01] Enhance Your Festive Joy with Personal Loan Offers Festivals like Diwali, Durga Puja, and Christmas are around the corner, and many people have begun planning their finances. To enjoy the festivities with zero stress, look for some personal loan offers that meet your needs. Personal loans are one of the best options if you need an easy-to-pay, maximum personal loan amount. No Collateral for a Personal Loan A personal loan is an unsecured loan that you can use for any purpose. If you have an excellent credit score, you may be able to borrow a Rs 2 lakh personal loan to Rs 10 lakh. This means that you can apply for a personal loan if you do not own any assets like land, property, or gold jewellery. Lenders only require your proof of income and a few other documents. Personal loans are one of the most flexible types of loans available today. Your income alone is enough to secure a personal loan from your bank or other financiers. Upgrade your lifestyle with the maximum personal loan amount. You can improve your lifestyle by spending more money if you have more money. Whether you want to throw a party or buy gifts for your friends and family, with a personal loan, you can live the festive life of your dreams. You can even revamp the interior of your home or buy jewellery to match the festive mood and invest in gold. Personal loans at Piramal Finance Piramal Finance Personal Loan is a great choice for you because it offers flexible and easy payment options with low interest rates. The personal loan offers at Piramal Finance are a very lucrative option because the company gives you the freedom to choose your repayment period. This means that you can pay off your loan whenever you want. With personal loan offers from Piramal Finance, you will also enjoy an easy application process. You can apply for your loan by visiting their website or calling them. What are the personal loan offers during the festive season? Piramal Finance has some amazing features for its personal loan offers that will make this festive season memorable for years to come. Minimum Documentation: You get a quick and hassle-free documentation process to get the maximum personal loan amount on your application. You only need to submit your ID proof, residence proof, salary slip, and bank statement. Fast Approval: The company offers fast approval, so you do not have to wait for your loan. The process is simple, and everything is done online. You can apply for your loan any time of the day or night and get approval within a few minutes. Quick Disbursement: Your loan will be sanctioned and disbursed within 48 hours. This means that you can get the money credited to your account within two days after applying for it. Low Interest Rates: Piramal Finance offers low interest rates, so you do not have to worry about taking out an unaffordable maximum personal loan amount. You can repay the amount in a few years without putting a dent in your savings. Customer Support: The company offers 24×7 customer support through phone and email. You can contact them at any time of day or night if you have any questions or concerns about your online loan application. Zero Pre-Payment Charge: Piramal Finance does not charge you any fee for the prepayment of your loan. This means that you can pay off the entire loan before its tenure if you wish to do so. No Hidden Charges: The company offers transparent and fair interest rates and does not charge any hidden fees or penalties. Increased Loan Amount: You can ask for the maximum personal loan amount. They will review your application, and if they deem it fit, they will sanction a loan amount even higher than what you requested! Tailor-Made Loans: The company adds a personal touch to understand the needs of every customer. So, they provide you with loans that are tailored for you. Depending on your requirements, you can obtain a personal loan ranging from Rs 2 lakh to Rs 10 lakh. Flexibility in Repayment: You can repay your loan whenever you want, at your convenience. This means that you are not forced to pay off the entire loan within a certain period. [B-02] How to Apply for a Personal Loan at Piramal Finance You can apply for these personal loan offers from Piramal Finance by filling out an online application form on their website. You need to provide details about your age, employment status, and income, as well as the amount of loan you need. If you want to get a personal loan from Piramal Finance, visit their website or contact the nearest branch. To avoid the hassle of filling out online forms, call their number, and the executive will be at your doorstep to answer your queries and complete your application. This festive season, find yourself a personal loan offer from Piramal Finance. It offers flexible and easy payment options, so you can manage your finances effortlessly.

08-11-2023

Personal Loan

Transform Your Personal Loan Into A Flexi Hybrid Loan

A “Hybrid Flexi Personal Loan” is a good choice in place of standard personal loans. Hybrid flexi loans are now offered by various banks, giving customers several perks. For example, a large loan amount, simple qualifying criteria, and digital loan management are all available to customers. Read on to learn about Flexi hybrid loans and how to convert a personal loan into yours. The need for quick financial help can occur at any time. Sadly, not all of us have access to available funds to use in such a crisis. Like many others, you might feel the burden to use credit to cover unexpected costs. Lenders give the Flexi-personal loan to help borrowers weather the storm. A Flexi personal loan is a type of personal loan is a brand-new loan for which the lending banks set a maximum credit line. Once a person gets the loan, he is free to use the funds how he sees fit. [B-01] Why you should convert your Personal Loan into a Hybrid Flexi Loan You will enjoy several perks if you change your term loan into a hybrid Flexi loan. These features are: Set a Limit to Withdraw Funds A Flexi loan provides the borrower with a pre-determined credit line. The loan amount is a fixed figure. The client uses the money he withdraws from his limit to cover his basic living expenses. Quick Approval With Minimal Effort Because of the online application process of a hybrid Flexi loan, the applicants do not have to visit the branch of any bank or lender or put in much manual effort. All you have to do is fill out the form and attach some paperwork. After verification, the funds will be transferred at once. It saves you time, effort, and energy. The EMIs can be reduced by as much as 45% A person’s EMIs will always be the interest portion of his loan. These loans can reduce your monthly payment as you pay interest only on the money you borrow. Further, you can prepay the loan when you like without paying any penalties. Interest Only On The Money Used With a Flexi Hybrid Loan, you only pay interest on the money you will take out. Since you won’t have to pay interest on any funds that aren’t being used, you will have a great deal of leeway and savings at your disposal. Flexible Repayment Process The ease of the loan’s terms is a significant factor in what sets it apart. It is an easy option for paying back a loan. With a Flexi hybrid loan, you may choose from various repayment options. For example, if a client just wants to pay the interest on the first EMI and then the principal at a later date, then this option is also available. You Can Make Prepayments A hybrid Flexi loan allows the borrower to pay off the loan early by submitting a single lump sum payment to the lending company. How to Change Your Personal Loan into a Hybrid Flexi Loan If you already have a personal loan, you can transform it into a Flexi hybrid loan with the same interest rate. In addition, you can enjoy perks like interest-only EMIs for the first portion of the duration, withdrawals, and partial prepayments up to your loan limit. To exchange your current term loan for a Flexi Hybrid Loan with a principal amount equal to the amount you owe, you have to make the switch. The bank or loan lender will immediately pay off your existing loan and begin charging you interest on your new Flexi hybrid loan. Now, you might wonder if any additional costs are involved when switching from a standard personal loan to a Flexi hybrid loan. Well, you only have to pay the loan conversion processing fees and stamp duties, if any. You must keep in mind the following key points when changing your loan into a Flexi hybrid loan. Your Flexi hybrid loan’s annual interest rate will be identical to your current personal loan. Your new loan amount will include the principal on your existing loan plus the loan conversion charge and stamp duty. Within the allowed withdrawal limit and partial payments, you may process as many withdrawals as you will like at no additional charge. How To Get a Flexi Hybrid Loan You may get a Flexi Hybrid Loan quickly and easily online. The application process is given below. Step 1: Give us information about yourself, including your contact info, financial situation, and current job. Step 2: Specify the desired loan duration and loan amount. Step 3: Submit the paperwork needed to verify your application. Step 4: The funds will be paid into your bank account within 30 minutes of application approval. [B-02] The Bottom Line By now, we hope you understood what a Flexi hybrid loan is and why you would want to change your personal loan into you. A personal loan or a hybrid Flexi loan can give you cash quickly and easily. You are free to choose the loan that best suits your needs, income, and other personal reasons. To better manage money, it is vital to have a thorough awareness of all the types of personal loans available. If you need more information or help, you can contact us at Piramal Finance. We at Piramal Finance are always ready to help you with any financial dealings. To read more such informative articles about finance & loans and find solutions to all your money-related issues, visit Piramal Finance now!

08-11-2023

Personal Loan

Apply Online For A Personal Loan In Chennai At Low Interest Rates

Chennai is a city that is famous for education and career growth. The city has a high literacy rate and a wide variety of viable occupations. Chennai is a popular place for students seeking higher education since it is home to some of India’s top universities. Those who want to apply for a personal loan in Chennai have multiple options of personal loans with low interest rates and the option to apply online. This article explores what you need to apply for a personal loan in Chennai. [B-01] Apply For a Personal Loan in Chennai You can apply for a personal loan in Chennai at banks or NBFCs if you require dependable financial support for your various needs. Personal loans are unsecured loans, that is, they are not secured by any collateral. If unsecured options are not enough, personal loans can also be secured by shares of stock, gold or a home mortgage. You can choose a lender based on your needs and your ability to make repayments. A personal loan in Chennai can be obtained from banks for any amount between a few thousand to Rs. 20,00,000 with no collateral. Customers can get personal loans depending on factors like their annual salary, credit history and other factors. Who Can Apply For a Personal Loan in Chennai People who want to apply for a personal loan in Chennai must meet the following requirements: The minimum age should be 21 years. The maximum age is 70 years. The applicant must be an Indian citizen or resident The applicant’s credit score must be at least 750 to have a good chance of getting a personal loan in Chennai with less interest. The applicant should be salaried or self-employed to apply for a personal loan. Documents Required To Apply For a Personal Loan in Chennai The documents required for a personal loan in Chennai are: PAN card Proof of identification such as an Aadhaar card, passport, driving licence or voter’s ID Proof of address such as a passport, Aadhaar card, driving licence, voter’s ID or utility bills Proof of income such as pay slips and bank statements Photos of the applicant and co-applicant in passport size How To Get a Low Interest Rate Personal Loan in Chennai Most people who need a loan in Chennai approach a bank with whom they already have a salary account. This is because less paperwork is required and the process takes less time. But people have many options to apply for a personal loan and can approach other banks and NBFCs that give loans. For people who want to apply for a personal loan in Chennai, a loan with a low rate of interest starting from just 10.91% is an option. These personal loans have easy payment terms. People can choose an EMI option that ranges from 3 months to 24 months. The interest rate that is applied to a loan EMI is fixed as per the term length that is selected. You can reduce your interest rate and monthly payments by decreasing the length of your loan term. Here are some important aspects to carefully consider and review before you apply for a personal loan in Chennai to make sure that you get the best possible interest rate: Credit Report: Before you apply for a personal loan, it is crucial that your credit rating is as high as possible. A personal loan with a low interest rate is more easily available for people with better credit scores. A loan application with a credit score of around 750 is considered strong. Make a Deposit: A lower interest rate can be secured by making a larger deposit. A larger down payment, greater than 20% of the loan amount, will almost always result in a lower interest rate being given. Debt-To-Income Ratio: Your debt-to-income ratio is one of the most vital factors that determine whether or not you are approved for a loan and what interest rate you will be charged. You can check your debt-to-income ratio by comparing your monthly take-home pay to your total debt. Negotiate: Even though most borrowers accept the interest rate that is given by the bank, it is vital to negotiate for a lower rate whenever possible. It is easier to negotiate as a consumer taking out a loan from a bank that also processes your other payments. How To Apply For a Personal Loan in Chennai If you want to apply for a personal loan in Chennai, you can easily fill out an online application on the bank’s website. Most banks have made this option available since it follows a simple procedure and is less time-consuming. Once you have done your research and have decided on a lender, you can visit their official website and fill out a simple application form. It can take anywhere from a few minutes to around three to four days to have your loan approved. These are the steps to follow: Step 1: Go to the bank’s official personal loan application webpage. Step 2: Fill out the requested details. Step 3: Upload any supporting documentation that is requested. Step 4: If your loan is approved, you will receive the requested funds in your account. [B-02] Conclusion Many young people come to Chennai for academic and professional pursuits, and the city also attracts its fair share of career professionals looking for more growth. Oftentimes, people will need to apply for a personal loan in Chennai to meet their various financial needs. The personal loan application process is simple and people can take steps to ensure their personal loan is approved by following the suggestions mentioned in this article, such as maintaining a good credit score, paying their bills on time and conducting thorough research on the best personal loan and lender for their specific needs. If this article was helpful, visit Piramal Finance to read more articles and receive relevant financial guidance and information on how to apply for a personal loan!

08-11-2023

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

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