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Personal Loan

Top Reasons to Take Small Personal Loans This Festive Season

People believe the festival season is the best time to start new projects and make investments. It is a happy period that welcomes health and prosperity, which is why the market sees an increase in demand for a range of goods and services. Also, holiday bonuses and tempting business offers mean that people have more money to spend. Since there is a lot of buying involved—for yourself, your loved ones, or your home—the holiday season can be a little taxing on the wallet for some people. However, small personal loan apps and loan agencies that lend money for consumer durables offer many festive deals at this time of year. Several tempting offers are available to assist you in budgeting for the holidays. In addition, several companies offer small personal loans and loans for consumer durables without charging any processing fees. Here are some crucial reasons why taking a small personal loan is a good idea: [B-01] 1. A Lower Rate During the holiday season, many financial institutions (FIs and NBFCs) provide promotional interest rate discounts to win over new consumers. However, the small personal loan interest rate is often between 10% and 24% per annum, which is quite expensive. You can negotiate a reasonable interest rate with your personal loan agency if your credit history and score are both solid. However, remember that most lenders lower their rates by just 0.25% to 0.50%, which helps if you borrow a large quantity of money for a long time. 2. Reduced Processing Fee A typical lender fee ranges from 1–3% of the loan’s principal. To get more customers, they come up with different ways to cut the cost of processing. Depending on the lender, the processing charge for a small personal loan might range from 0-50% of the loan amount. 3. Negative Collateral A personal loan’s main benefit is that you don’t have to purchase any collateral to get one. Unlike with a secured loan, you won’t need to put up any collateral to get this one. However, personal loans are typically unsecured; thus, borrowers must pay a higher interest rate. 4. Immediately Available Processing times for unsecured personal loans are much shorter because you don’t have to put up collateral or fill out as much paperwork. As a result, a small personal loan can be processed and disbursed in as little as two business days. But there’s more: some customers (those with an established banking account and a stellar credit history with the lender) can access fast personal loans in just a few minutes. 5. Raises Credit Rating Getting an unsecured loan and paying it back on time can help you establish credit and raise your credit score. Getting a loan is an excellent option, but only if you have substantial financial discipline and reliable income to pay it off. In other words, if you have approval for a loan of Rs. 1 crore but should only borrow up to Rs. 30 lakhs, you should borrow no more than Rs. 30 lakhs. Equally important is ensuring you have the correct balance between secured and unsecured debt. If you want to lower your credit score, you should not have any secured loans. Consider these factors before applying for a festive loan The two primary considerations when taking out a holiday loan are: 1. It’s not a good idea to get too enthused about one ‘great’ personal loan offer and ignore other alternatives just because it stands out. Instead, shop for the best deal and interest rate you can find throughout the holiday season, whether at a bank, a loan app, or a personal loan agency. In addition, you should focus on more than just promotional rates and reductions, i.e., the total cost of the loan itself. For example, in most cases, even a 1.5% drop in the interest rate is better than a 100% drop in the processing fee. 2. Unfortunately, financial obligations last much longer than celebrations do. After getting a loan, you’ll need to start making monthly payments, or EMIs. Since EMI payments will add to your regular expenses, you should plan to avoid unpleasant financial surprises. Planning to apply for a small personal loan? Remember these things: There are a few things to watch out for if you want a personal loan over the holidays: 1. Make sure you meet the prerequisites It would be best to research the prerequisites for a small personal loan before applying. If you apply for a personal loan without meeting the requirements, your application could be delayed or even denied. Besides keeping you from getting a personal loan, it could lower your CIBIL score. 2. Maintain an excellent credit rating You can quickly get a small personal loan from a person or company with a CIBIL score of 750 or higher. If your credit score is high, it shows that you can afford to make your monthly loan payments based on your income and present standard of living. 3. Try not to take out loans too frequently It’s easy to let yourself get swept away by tempting deals while you’re in the holiday spirit, but doing so can have disastrous consequences. Things can quickly get out of hand when we take on more debt than we need to satisfy our whims. You could end up in hot water if you borrow too much money, so limit borrowing to emergencies only. 4. Choose the best financial organisation Once you’ve settled on a personal loan, it’s time to start looking for a bank or other financial organization that will provide you with favorable terms. People with regular jobs or who work for themselves can choose from a wide range of personal loan agencies, all of which have attractive promotions. But, again, make an informed choice with practical comparisons. [B-02] Conclusion With instant personal loans, you don’t have to worry about how to pay for a special event when you don’t have a big savings account. When looking for a fast personal loan, banks offer various types of loans that satisfy your needs, which you should consider. If you meet the criteria, you can get a quick, small personal loan of up to Rs. 5,000,000. Want to learn more? Get in touch with experts at Piramal Finance.
08-11-2023
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Personal Loan

Pre-Approved Loan – Check Pre-Approved Personal Loan Offer for You!

It’s quite often that people get notified of being eligible for a personal loan through calls or messages. More often than not, most of us receive an email congratulating us and telling us that getting a pre-approved loan in our name is just a few steps away. But have you ever wondered how it happens? While many of us know what a pre-approved personal loan is in detail, many people still don’t fully understand what a pre-approved personal loan is, who qualifies for one, how it works, and what to do if one needs one. Let’s answer such questions to help everyone decide on the best pre-approved loan offers! [B-01] Pre-Approved Personal Loan – What is it? A pre-approved personal loan is an unsecured loan made available to borrowers with decent credit scores and attractive debt-to-income ratios. Since they already have all the client’s information, banks and NBFCs tend to offer loans to their existing clients. But a pre-approved loan typically has a maximum loan amount, which is determined by our income and creditworthiness. If someone receives this offer, then it implies that a favorable evaluation of their creditworthiness has been done. If one applies for a loan within the offer period, it will probably be accepted without a hitch and occasionally even immediately. Many banks and non-banking financial institutions (NBFIs) in India offer the pre-approved loan facility to increase sales of their loan products, help clients with urgent financial needs, and speed up loan disbursement. So, What Are the Features of a Pre-Approved Loan? Now that we understand what a pre-approved loan is, let’s understand its features. Quick Loan Disbursal: The pre-approved loan will be disbursed immediately to an account in a short period if that person is a current client of the bank or NBFC. Minimal Documentation: Instant loans are simple to obtain; the procedure is seen as hassle-free because there is less need for extensive documents to approve a loan. Quick Processing: The processing time is minimal because one has already met the requirements for the loan. The loan could be approved and disbursed in a day after the necessary information has been checked. No Collateral or Security Required: Customers for pre-approved loans do not need to offer any security or collateral to receive immediate loans. Repayment Flexibility: Pre-approved loans are required to be paid with Equated Monthly Instalments (EMIs). Customers who already have an account with the bank (lender) can also choose to pay their EMIs automatically through this method. The typical repayment period ranges from 12 to 60 months. Lower Interest Rates: These loans are provided to individuals who have excellent credit histories and a record of on-time payments. Therefore, they are provided at competitive interest rates that are typically lower than those of standard personal loans. But how would one know if they are eligible for a pre-approved loan? For that, it is crucial to know about the eligibility. What Are the Eligibility Criteria for Availing Pre-Approved Personal Loans? When a potential borrower’s age and creditworthiness qualify for a loan, lenders frequently provide pre-approved loans to that borrower. For instance, the bank will be aware of his income and cash flow if they have a salary account with them. Most lenders ask for the following eligibility criteria: Credit Score: If someone’s credit is good, the bank may have already pre-approved him or her for a personal loan. Credit Information Bureau India Limited (CIBIL) determines the three-digit score, called the CIBIL score. A credit score might range from 350 to 900 depending on how one handles credit and payments. Any score over 750 indicates that one is a trustworthy and sincere borrower. Transaction History: After evaluating the transaction history, the bank can notify the customer of the bank balance and transaction rates and make him or her an offer for a pre-approved loan. Previous Loans: If someone has previously taken out loans and made the payments on time, their bank might pre-approve them for one. It’s also crucial to make on-time credit card payments. Even if they don’t have a credit history or payback history, pre-approved loans may be available since they have a substantial amount of funds in their bank account and a genuine income source. Now that we all have a good understanding of what a pre-approved loan is, let’s look at the pre-approved loan offers offered by different banks and institutions to make an informed decision. Pre-approved Loan Offers by Banks and NBFIs Pre-approved personal loans are offered to customers with robust credit profiles. Hence, they typically have lower interest rates. However, the interest rates may differ from one lender to another and depend on applicant-based parameters such as the applicant’s income, credit score, and more. Comparing the personal loan interest rates provided by top banks and NBFCs would give a good idea of the pre-approved personal loan interest rates offered by those lenders. Let’s take a look. Banks/NBFCsInterest Rates (p.a.)Repayment TenureState Bank of India (SBI)9.60% onwardsUp to 84 monthsBank of Baroda (BOB)10.20% onwardsUp to 60 monthsPunjab National Bank (PNB)8.90% onwardsUp to 84 monthsAxis Bank10.99% onwardsUp to 60 monthsHDFC Bank11.00% onwardsUp to 60 monthsICICI Bank10.75% onwardsUp to 60 monthsKotak Mahindra Bank10.99% onwardsUp to 60 monthsAditya Birla Capital14% onwardsUp to 36 monthsBajaj FinServ13% onwardsUp to 84 monthsIndusInd Bank10.49% onwardsUp to 60 monthsIDFC Bank10.49% onwardsUp to 60 monthsTata Capital10.99% onwardsUp to 72 months [B-02] Final Words: A pre-approved personal loan from a bank can help someone obtain money at low-interest rates while requiring no collateral. If a customer has strong credit and is already a bank customer, they can acquire a pre-approved loan quickly and with no paperwork. However, it doesn’t mean a customer necessarily has to accept the loan the bank is providing. One should only go into debt if one requires the money. Even if one is willing to accept the offer, it is still important to make sure they have taken a loan for the amount they need, not just what the bank is willing to offer. If still in doubt regarding a pre-approved loan, consult a financial expert like Piramal Finance for customized loan solutions and make the best decision for the future.
08-11-2023
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FD

Pros and Cons of Investing in FD: All You Need to Know

Looking for an ideal way to kickstart your investment portfolio? Want a risk-free and easy-to-find higher rate of return on your investment? Fixed deposit interest calculators will help you calculate the returns from your FD investments. Do read this article carefully to understand the pros and cons of a fixed deposit and the FD Interest Calculator in detail. [B-01] What is Fixed Deposit? A Fixed Deposit account allows you to invest a sizable sum of money at a set interest rate for a specified time frame. This is a great way to save since, at the end of the term, you get the lump sum plus interest. The interest you get on a Fixed Deposit account varies from bank to bank. The shortest term for a Fixed Deposit is 7–14 days, and the longest term is 10 years. Due to this, a Fixed Deposit is also known as a term deposit. When you open a Fixed Deposit account at a certain interest rate, that rate is guaranteed; it will never change, even if the market rate of interest does. If you like, you can show your interest either at the end of the term or at regular intervals. The funds are not available for withdrawal before the maturity date. If you miss the deadline, you’ll have to pay a penalty. You should learn the ins and outs of Fixed Deposit before putting your money into it. Both the upsides and the downsides of investing are explained here. What is the FD Calculator? When you make a fixed deposit, you get a certain rate of interest. Interest adds to your principal amount, growing your savings. Manually calculating the interest can be difficult. The FD Interest calculator makes calculating interest and maturity easy. The FD interest calculator estimates how much interest you’ll earn on a fixed deposit over time. After annual compounding, an online FD calculator determines the final payout. Pros Financially secure deposits are a good place to put your money. Investing money in a Fixed Deposit is a wonderful strategy that does not involve any risk. Stable investment Investments such as stock dividends, bond interest, and mutual fund return investments in FDs are significantly safer because their returns are not tied to the market. Guaranteed returns are only one reason why FDs are a good option for people who don’t have a lot of money to invest. Borrowing Against a Fixed Deposit Instead of paying a penalty for prematurely withdrawing from your Fixed Deposit (FD), you can get a loan against it to help you out of a tight spot financially. Up to 75% of the total value of the FDs can be borrowed. Variable Interest Rate Distributions In FDs, you can decide the amount you want to fix to save and accordingly select the interest rates. Payout options include yearly, monthly, and upon maturity. For the elderly, FDs offer special rates of interest. Fixed deposit interest calculators can be used to determine how often you’ll get paid. Guaranteed and Risk-free Investment Returns The FDs are not tied to market fluctuations. Therefore, they are a rather safe option. In this way, your investments will generate a profit. Moreover, the interest rate on an FD is guaranteed to be the same for the duration of the investment, increasing the benefit. The FD Calculator is the best option to understand your return. Tax Saving Fixed Deposit Fixed Deposits are one of the various investment options allowed by Section 80C of the Income Tax Act. It allows them to deduct Rs 1.5 lakh from their taxable income. There is a 5-year commitment requirement for tax-saving FDs. Deposit Guarantees If a bank (excluding NBFCs) is placed under moratorium owing to an unusual stoppage of activity, account holders can now obtain up to Rs 5 lakh in maximum insurance within 90 days. Benefits from Taxes for the Elderly There is a Rs. 50,000 annual cap on the amount of interest a senior citizen can receive from a Fixed Deposit before that interest is taxed. Deposits made by the elderly also earn a greater interest rate. Cons It is important to keep in mind that FDs come with several potential drawbacks. Below is an explanation of the drawbacks associated with FDs. Poor Return However, as compared to other short-term market-linked investments, FD returns are poor despite being guaranteed. The FD Calculator is the best option to understand your return and then make a decision. Low Liquidity A penalty will be incurred if you cash out your FD before it matures. When you cash out an FD, you can also receive a reduction in interest on the entire investment. Tax Return Expenses You will have to pay taxes on any gains made from your FD. There will be a 10% tax taken from your interest income if it is more than Rs. 10,000. For retirees, this bare-bones payment is now Rs. 50,000. If you want to maximize the tax benefits of your FD investments, you should prioritize tax-saving FDs. When opening a joint account, remember that only the primary account holder will be entitled to the tax benefits given by Section 80C of the Income Tax Act of 1961. Failing to Prevent Inflation Fixed-rate deposits (FDs) earn the same amount of interest for the whole duration of the deposit. They are static and cannot be changed. If the inflation rate is 6% and the interest rate on your FD is 5%, then you are likely losing money on your FD investment. Penalty on Premature Termination Fees A pre-closure penalty may be imposed if you withdraw funds before the end of the term. Any accrued interest may be taken from your withdrawal total before crediting the principal amount. Constant Rate of Interest When you open a Fixed Deposit account, you lock in an interest rate for the duration of your deposit. Thus, even if interest rates go up, you will not be able to reap the rewards as your interest rates are already fixed. [B-02] Conclusion The purpose of this article is to give a comprehensive examination of the pros and cons of FD investment. We have also tried to explain the FD interest calculators. Whether an investment is the best choice for you or not should be determined carefully by yourself. Before investing, it is also important to be aware of the pros and cons of FD. Visit the official website of Piramal Finance to understand the FDs in detail. Do explore their products and services and read the blogs posted by them.
08-11-2023
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Personal Loan

Higher Education Loan: Apply for Personal Loan for Higher Education Online

In recent times, the cost of higher education has been rising. Parents are turning to personal loans for education to meet these costs. An education loan can help meet the expenses of higher studies. But if a student does not meet the eligibility criteria, then a personal loan is a better option. Many banks offer personal loans for educational purposes. It is better to take personal loans for students. Any member of the family can take the loan for educational purposes. There is a difference between a personal loan and an education loan. The latter carries a lower rate of interest. Also, one can get tax advantages on an education loan. Also, the principal borrower gets enough time to repay the debt. But in the case of a personal loan, the loan repayment begins the very first month after the borrower receives the money. But there are many benefits to a personal loan for education. [B-01] Benefits of a Personal Loan for Students Who Want to Pursue Higher Education For students who want to pursue higher education, a personal loan holds many benefits. Let’s take a look at some of them. There is no restriction on the use of the funds. A personal loan for education can be used for any educational purpose. So, if someone takes a personal loan for education, they can use the funds for educational expenses, housing costs, tuition fees, and more. One can get quick approval for the loan. Very few documents are needed for the approval of the loan. One can take a personal loan to cover the entire cost of education. In contrast, a student loan requires that they contribute a significant portion of the total cost of education. So, personal loans for students are far more convenient. Since personal loans are unsecured loans, one does not need to pledge any assets to secure the debt. Many banks and NBFCs are willing to offer personal loans for education for a term varying from 12 to 60 months. So, it is easy to choose a tenure that is convenient for the borrower. One will be able to receive the disbursed amount in their account quickly. Following these advantages, personal loans for students are highly preferable. Documents Required for Personal Loans Many lenders offer personal education loans based on minimum documentation. If someone is applying for one such loan, then they will have to furnish the following documents. Bank account statement for the last three to six months. Proof of address: This includes telephone bills or electricity bills. They can also furnish a voter ID, Aadhar card, driving license, or passport for the same. Proof of identity: This includes a passport, driving license, and Aadhar card. Proof of age: This includes their birth certificate or education certificate. The most recent salary slips. Or, they can also furnish the latest return of income tax. Other than these documents, the bank or lender may require several other documents. It is best to inquire with them about the documents that the borrower needs to furnish. Eligibility Criteria for Personal Loan for Students Anyone can apply for a personal loan for educational purposes. It is different from an education loan. If someone needs a personal loan for education, they should start by checking their eligibility. They should be Indian nationals. Their age should be between 21 to 67 years. They should have a good credit history. A credit score above 750 is considered good. They should be employed by a public, private, or MNC organization. They should be earning a minimum of INR 25,000. The amount may vary depending on where they stay. Process to Apply Online for Personal Loan for Education The bank will verify all the applicant’s details. A borrower can avail a personal loan from the bank only after they are satisfied with their credentials. After the due process is complete, the funds will be disbursed directly to their bank account. Many banks now offer an online facility to apply for personal loans for students. However, many banks do not. So, they will need to check which service their bank offers. Here are a few basic steps to applying for a personal loan online. The first step is to choose a lender. Every bank or NBFC offers a different type of service. Look around for the best deal based on the borrower’s requirements. The bank may offer online or offline services. Depending on that, fill out an application form. The borrower will need to provide several details on this form. Based on this, the bank will decide if it will give them a loan. After filling out the application form, the borrower will need to provide their documents. These include income proofs, address proofs, identity proofs, and more. The documents and application will be verified by the bank. Only after they satisfy the bank’s requirements, their loan be approved. When the lender approves the loan, it will reflect in the bank account. To know more about a personal education loan, one must consult their lender. [B-02] Conclusion Personal loans for education are a clear win. One can easily apply for a personal loan for education. It will help them meet the expenses of higher studies. It is a useful option for those who want to go outside India for their studies. In that case, the expenses are numerous. A personal loan can help meet most of them. If someone wants to understand anything about personal loans for education, then visit Piramal Finance. It is a premier hub for all financial knowledge. They can even check their lending offerings. It is the best place to look for the best loan options. This way, they can find one that is most suitable for them.
08-11-2023
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RD

What is an RD Calculator and How to Use It?

Deciding whether to invest in recurring deposits (RD) or not? Afraid of the potential risks of a market crash? Want to invest but lack the correct knowledge about investments? Want to know how to calculate your interest using an RD calculator? Well, to get all these answers regarding RD calculators and investments, stick with this article. This article will discuss RD, its features and benefits. RD interest calculator, how to use it, why to use it, and how it works. [B-01] What does RD mean? Well, RD is an investment option where you deposit money regularly at a given interest rate for a set period of time in return for interest. It is a very popular scheme often opted for by investors, senior citizens, and even teenagers. A recurrent deposit is very similar to a fixed deposit, but the only significant difference is the investment frequency. In an FD, you invest only once for a fixed period of time, and you get your return at the end of your maturity. In a recurrent deposit, on the other hand, you invest on a monthly basis until the end of your investment period and get a return. Sometimes, there is a problematic factor associated with recurring deposits. RDs are subject to a TDS of 10% (tax deducted at source), which means 10% of your earned interest will be deducted as a form of tax. What are the benefits of investing in RD? Investing in RD could be a very profitable option, as it gives you high-interest returns. Here are some of the benefits: High rate of interest Unlike a fixed deposit or a public provident fund, the rate of interest on a recurrent deposit is quite high. You can use an RD interest calculator to estimate the interest you get from your investment. Minimal lock-in period RD comes with a very short lock-in period, which is about a month to 3 months. That means just after this period, you can withdraw money whenever you want without affecting the interest. However, if you choose to withdraw money within the lock-in period, then you will not get any interest. Multiple accounts There is no restriction on how many RD accounts one person can open. You can open multiple RD accounts to meet your financial goals, which is a huge advantage. Helps you in saving It makes you more conscious regarding financial aspects as you start saving more often to invest in an RD account rather than wasting that money. Flexible investment You do not have to invest a huge amount of money every month; rather, you can invest as little as Rs 100 every month. Hassle-free You don’t need to worry much while opening your RD account because there isn’t much to be processed. Especially if you have a savings account, opening an RD account will be a walk in the park. To manage all these investment updates, you need to use an RD calculator to find your interest rates. What is an RD calculator? It is a tool to calculate the interest amount on the money that you invest in your RD account periodically. It is an AI-powered model that is programmed for such calculations. A recurring deposit, as the name suggests, is repeating in nature, which means you have to invest a certain amount continuously. To keep track of all these updates, you need an RD interest calculator to help you out with your estimates. How to use an RD calculator? An RD calculator is based on a simple formula, F = P*(1+R/N)^Nt Where F is your future interest amount, P is your principal amount, which you keep investing every month, R is your interest rate, and n is the compounding frequency, which is usually 4 because compounding frequency is calculated quarterly. Let us take an example to understand the RD formula better. Suppose, you invest Rs 2,500 every month at an interest rate of 6.5 percent for 5 years. Using the above formula, your interest amount will be equal to Rs 1,77,481. Now, the formula might seem a bit difficult, which is why you should use a ready-made RD interest calculator to find your future interest. Here are the steps to using an RD interest calculator: Enter the principal amount in the bar, which you invest on a monthly basis. Enter the rate of interest in the required bar of the RD interest calculator. Enter the time period up to which you will be investing your money. Click on the ‘Calculate’ option with the numbers that are already submitted, and you will have your results in front of you. Why should you use an RD interest calculator? Frankly, the reasons to use an RD calculator are many: It helps you plan your investment future and make it better over time. It gives you clarity on what to expect from the amount of money that you regularly invest. An RD investment calculator is a very convenient tool and is user-friendly as well. It saves you a lot of time, which you can now use to make informed decisions regarding your future investment. It gives you error-free and accurate results as it is generated by AI software. [B-02] Conclusion To invest and grow in a competitive financial world is no easy task, and to track the progress of your RD account, you have to use an RD interest calculator. This will keep you updated about market dynamics and the nature of returns. If you are interested in reading more articles like these, you should check out Piramal Finance. They have many informative articles regarding finance, personal loans, SIPs, mutual funds, fixed deposits, RDs, and many more.
08-11-2023
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FD

How To Calculate FD Interest Rate In A Few Easy Steps

Made a fixed deposit (FD) but don’t know how to find the interest rate? Want to find the yearly, quarterly, or monthly interest using an FD interest rates calculator? Well, this is the right place for you to get all your doubts cleared regarding FDs and how to calculate their interest rates. In this article, we will shed light on an FD calculator, how to use a fixed deposit interest calculator, and the FD formula to calculate the interest rate. [B-01] What is a fixed deposit and what are its different types? A fixed deposit or FD, is a scheme provided by banks where you put money to get a reasonable rate of interest. Your money grows over time at a given interest rate. You get the total amount at the end of your maturity period. It is a very safe option where interest rates are good with no market-related risks. The interest rate does not change by any clashes in the market, and you get your guaranteed returns at maturity. There are four broad kinds of fixed deposits: Cumulative fixed deposit: In this type of fixed deposit, when you invest your money, your interest gets compounded. You can use an FD interest rates calculator to calculate and analyse your maturity amount. Non-cumulative fixed deposit: In this type of fixed deposit, when you invest your money, you get a fixed interest rate, and you can also withdraw that money on a monthly, quarterly, half-yearly or yearly basis. This can be called your monthly interest, quarterly interest, half-yearly interest, or yearly interest. Standard fixed deposit: This is the basic form of FD, where you invest money for a period of 7 to 10 years at a fixed interest rate. Corporate fixed deposit: The money you deposit in non-banking financial companies or NBFCs is called a corporate FD. You should check the company’s credit rating and seek expert advice to make sure your deposits are secure. What are the benefits of investing your money in fixed deposits? You get assured returns even if there are market fluctuations or any crisis. You get reasonable interest rates, which is a significant advantage. You get additional tax benefits by investing in a fixed deposit. In terms of safety and security, you will be assured that your money is in a safe place. It acts as a security fund in most cases and is also useful if you ever want to go in for a loan. What is an FD interest rates calculator? An FD interest rates calculator is a handy, easy-to-use online tool that helps you calculate the maturity amount that you are going to receive if you invest your money at a given interest rate for a set period of time. It also helps you in deciding which bank you should go in for, according to different interest rates, how much money you should invest in and the tenure. What are the advantages of using an FD interest rates calculator? Some of the exclusive advantages of using an FD interest calculator are: Accurate results: An FD interest rates calculator is an AI-generated software, so the results it provides are accurate and specific. Error-free outcomes: FD calculators, unlike manual calculations, have no chance of making any kind of mistake while calculating your figures. Saves a lot of time: Since it is software, it does the calculations in less than a second, which saves a lot of your valuable time. How to use an FD interest rates calculator? Here is a step-by-step guide to let you know the correct way to use FD calculators. To calculate yearly, half-yearly, quarterly, or monthly interest rates, you have to: Select the amount you want to invest in the FD scheme. Select the tenure (monthly, quarterly, half-yearly, or yearly) according to your preference. Select the interest rate that you have decided on for your fixed deposit. Click on the ‘Calculate’ option and you will have your results in a second! You can recalculate to make sure that everything is correct and that you haven’t mistakenly put incorrect values. How is fixed deposit interest calculated? To calculate fixed deposit interest, there are two methods that are widely used: Simple interest This is an easy method to find your interest rate. The interest rate is always pre-fixed over a defined period of time. The formula for simple Interest, SI, is: SI = P×R×T/100 Where P is your principal amount, R is your rate of interest, and T is your time period. For example, if you invest Rs 5000 rupees at an interest rate of 10 percent for a period of 5 years, then your interest is equal to Rs 2500 and the total amount is 7500 rupees. This method is mostly not preferable as it does not give you any handsome returns. Compound interest This is the most widely used method and, in fact, the formula used here is also considered the universal FD formula. A = P (1+r/n) ^ (n * t) Where A is the maturity amount, P is the principal amount, R is the rate of interest, n is the number of compounding frequencies, and t is the time period. For example, if you invest Rs 5,000 at an interest rate of 10 percent for a period of 10 years, then your total interest would be Rs 7968.71 and your maturity amount would be Rs 12,968.71. [B-02] Conclusion An FD interest rates calculator is a very useful tool to help you find the right amount of money to invest. Different banks and NBFCs provide variable interest rates. Make sure you talk to the bank officials, your advisors, and the people who have been investing in FD and then make an informed decision. Piramal Finance has some highly engaging blogs and articles regarding fixed deposits. Make sure you visit their website to get some valuable content.
08-11-2023
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Mutual Funds

SIP Calculator: A Complete Guide for Beginners in 2022

Investment has been the buzzword of recent times and everyone is into investing now. Among various investment offers, mutual funds have stood out to be a good option for many people. But, investing in mutual funds is no easy game. Don’t worry even if you are a beginner because every expert was once a beginner. In this article, we will throw some light on what is an SIP and an SIP calculator, how they work and how to use them to reap the benefits. [B-01] What is SIP? A systematic investment plan or SIP is a disciplined way to choose wise investment options and increase your interest amount. Using SIP, you can invest in mutual funds more effectively and you can build good wealth for the future. It is a solid approach to managing your funds by regularly investing them while avoiding the risks. It works on two principles: Rupee cost averagingThis means you keep investing a specific amount of money for a set period at regular intervals without being affected by the market. This is an interesting approach where you get low units when the market rises and you get high units when the market falls. The main advantage of rupee cost averaging is that you are out of risk and you acquire the investment at a low average cost. CompoundingThis means if you keep putting money at intervals for a fixed period, you will receive exponential output as your return. To understand this better let us take an interesting example:Suppose a 20-year-old boy starts putting in 500 rupees every month for 30-odd years. Let us calculate this by using a SIP investment calculator. So, because of the compounding effect, he will accumulate 4.17 lakh rupees as his total interest amount. What are the benefits of SIP? There are many benefits of SIP: Risk-free investment:With a systematic investment plan, you can avoid potential risks while investing in mutual funds. Financial discipline:You start making better financial decisions after using SIP. You avoid unnecessary expenses and save that money for the future. High flexibility:SIPs are highly flexible which means you can invest according to your wish and not according to pre-fixed rules. High returns:In comparison to any other investment options, this one gives you more benefits and rapidly increases your wealth over time. Emergency provision:In case you urgently need money, you can withdraw some money without any loss. What is a SIP calculator? A SIP calculator is a simple online tool that helps you calculate the total amount of money you receive at the end of your investment period. It gives you an estimate of your mutual fund investment by using your interest rate, the months of investment and your principal amount. It is a very useful instrument to help you out with multiple calculations and fast results. You can use a SIP investment calculator more frequently to know the market updates. Why should you use a SIP calculator? Here are the reasons why you should use a SIP calculator: It gives you the correct value of the estimates you have made over some time. It helps you plan your future investments and this ensures that you make an informed decision. You can find the best investment options that suit you by using a SIP investment calculator. So, it will help you not only with the calculation but also help you to choose the best for yourself. It saves a lot of your valuable time by calculating your return amount in no time and is user-friendly as well. It gives you precise results, which is why you should start using a SIP calculator before you invest your money in mutual funds. How does the SIP calculator work? It simply works on a mathematical formula, F=P x {[(1 + r)n – 1] ÷ r} x (1 + r) where “F” stands for the future value of the investment. “P” is the principal amount that you invest monthly throughout the investment period. “r” is your expected rate of return every month and “n” is the number of contributions you make throughout. To understand the working of a SIP investment calculator more clearly, you have to get it through an example which goes like this: If a man spends 7,000 rupees every month at an interest rate of 12% for 10 years, then he will accumulate 16,26,374 rupees at the end of his investment period. A SIP calculator is already programmed using the above-mentioned formula so that you don’t have to worry about putting the formula in every time. You just have to fill out the numbers and the results are in front of you in less than a second. Here are the steps to know how to use a SIP investment calculator: Open the application or visit the website of your choice which has the best SIP calculator. First, enter your principal amount which you are investing every month. Second, add the rate of interest in the requisite bar of the SIP calculator. Third, now select the period, which is the number of years for which you would be investing. Select the type of SIP investment you would like to go through. Now finally, click on the “calculate” option of the SIP investment calculator and you have your result right in front of you. Now keep trying different values to get a clear picture of how much you should be investing, at what interest rate and for how long. [B-02] Summing-up: SIP calculators are programmed by artificial intelligence so they are quite dependable. You should spin them quite often, especially if you are a regular investor. For beginners, a SIP investment calculator can provide details about the market dynamics and help them decide on their investment journey. To know more about SIP and learn about personal finance, visit the page of Piramal Finance. They have much more exciting content on SIP, mutual funds, personal loans and other investment options.
08-11-2023
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Personal Loan

Get The Detailed Information About Current Personal Loan Interest Rates

Personal loans can be used to cover a range of costs, including home improvements, child care, emergency medical care, a family wedding, and travel. Personal loans don’t require collateral and have easy repayment terms. However, each bank has its requirements that must be met to be eligible for a personal loan. Repayment capability and CIBIL score are the two key factors that determine eligibility for personal loans. Personal loans have some of the highest interest rates. Therefore, it would be wise to borrow from a lender with relatively lower rates and shorter terms (The higher the tenure, the higher the interest outgo). Banks also give customers with outstanding credit scores the lowest interest rates. For instance, the interest on personal loans from IDBI Bank range from 8.15% to 14%; they have a term of 12–60 months and are available for amounts between Rs 25,000 and Rs 5 lakh. Rates for personal loans from the State Bank of India (SBI) range from 9.6% to 15.65%; terms range from 6 to 72 months, and loan amounts range from Rs 25,000 to Rs 20 lakh. [B-01] Personal Loan: Unsecured Loan A personal loan, in some cases, is also taken as an unsecured loan because no collateral is required. Because there are no restrictions on how personal loans can be used, they are very common. Because a personal loan offers an advance without security, a personal loan application often involves checking the borrower’s need for money, their eligibility for the loan, and their capacity to pay the loan back on time. As a result, to be considered for a personal loan, applicants must normally be employed individuals who can produce proof of their identity and work. Personal loan processing fees Based on the loan amount, a processing fee for personal loans is determined. If they apply for a loan for INR 1 lakh, for example, and the processing cost is 2.5%, the processing fee will be INR 2500 + GST. The rate of interest on a personal loan, processing fees, and pre-closure costs are calculated When one applies for personal loans, one will need to pay a processing charge. Other fees would be determined by the service requests they make regarding the loan. The pre-closure fee is assessed on the loan balance that is still owing as of the foreclosure date. On the other side, the processing charge is based on the loan amount they are approved for. Banks Provide Interest Rates and Lending Amounts for Personal Loans The Economic Times Intelligence Group (ETIG) is the source of all the information provided below as of May 19, 2022. AU Small Finance Bank offers personal loans in the amount of up to 7.5 lakhs with a tenure of up to 60 months. The rate of interest ranging is from 12%-22%. Axis Bank offers personal loans of up to 15 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12%-21%. Bank Of India offers personal loans of up to 10 lakhs with a tenure of up to 36 – 60 months. The rate of interest is ranging from 10.75%- 12.75%. Canara Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12.40% – 13.90%. Central Bank Of India offers personal loans up to 10 lakhs with a tenure of up to 48 Months. The rate of interest is ranging from 9.85% – 10.05%. HDFC Bank offers personal loans of up to 15 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 10.50% – 21.00%. Indian Overseas Bank offers personal loans of up to 5 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.00% – 11.00%. ICICI Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.25% – 19.00%. Karur Vysya Bank offers personal loans up to 10 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 9.40% – 19.00%. Punjab National Bank offers personal loans of up to 10 lakhs with a tenure of up to 60 months. Credit Card Personal Loan A credit card personal loan is a kind of loan provided against a credit card. It is a speedy and practical way to borrow money, which may be particularly useful in times of financial crisis. Although processing fees and other fees are also applicable, the interest rate on a loan against a credit card is typically higher than that on a personal loan. One type of loan offered on the basis of their credit card is a personal loan. It is a quick and efficient method of borrowing money, which could be especially helpful during economic downturns. The interest rate on a credit card personal loan is often higher than the interest rate on personal loans, even though processing fees and other expenses may also be relevant. [B-02] Conclusion Thus, when one tries to avail of a credit card personal loan or a simple personal loan, one must ensure that they have maintained a good CIBIL score and be aware of the processing fees, pre-closure costs etc. so that they can make an informed decision. Lastly, to figure out which bank’s personal loan interest rate is best suited to their needs, they can consult Piramal Finance, where their experts will guide them throughout their journey of availing of a personal loan.
08-11-2023
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Personal Loan

Travel Loan: Holiday Loans, Apply Personal Loan for Travel

When you travel, it not only relaxes your body but also your mind. It does not matter if you are tired of your busy work routine or want to spend time with loved ones; going on a trip is always a great feeling. But there might be a shortage of funds when you plan to travel. So, what can you do in such a situation? Using your savings may not be the best option, but it is suggested that you take out a travel loan. Many banks and NBFCs offer holiday loans, also known as personal loan for travel. A travel loan enables you to go on a trip as and when you want. There is no need to give security for this loan, and you may use the money as you like. As you need to pay the EMIs to repay a travel loan, there is no stress on your finances. Also, you can get the loan amount in your bank within a few hours; you can easily plan a last-minute trip. Read on to learn how to apply for a personal loan for travel and what benefits you can get from it. [B-01] Features of a Travel Loan A holiday loan, famous as a personal loan for travel, is a popular loan in modern times. People of all ages opt for this loan when they are short on funds but have to go on a trip. It can be a honeymoon, a family trip, or a leisure holiday; this travel loan can be used for all your travel needs. Here are some of the key features of a travel loan: Loan Amount: You can apply for a personal loan for travel for amounts starting from Rs. 1 lakh and going up to Rs. 10 lakhs. Such high-value loans can easily pay for an overseas holiday as well. You can choose any amount in this range based on your eligibility. Loan Tenure: Like every other personal loan, a loan for travel can be repaid in EMIs over a period of time. Loan tenure for holiday loans can be between 12 and 60 months. You can select any loan term based on the EMI amount you can afford. Interest Rate: There is no need to offer a security for this loan, and the interest rates start as low as 12.99%. With such great perks, opting for a travel loan can be a good choice if you are short on funds or want more flexibility in terms of money when you travel. Online Process: Most banks and NBFCs offer an online interface to apply for a personal loan for travel. You need to visit the website or download the mobile app of the lender to complete the process, which will take only a few minutes. Quick Approval: Holiday loans come with a quick approval process where the lenders can process the application in a few hours. The money is sent to your bank quickly, making this loan a good choice in urgent situations. Paper Work: You need not submit too many papers to qualify for this loan. Only some basic papers are needed to complete the process. If you apply online, you can upload scanned copies of the papers. Eligibility for a Personal Loan for Travel To be eligible for a travel loan, you need to meet all the rules given by the bank or NBFC. Some of the key aspects that you must fulfill are: Age: You must be older than 21 but younger than 60 to apply for holiday loans. Income: You must get a salary of at least Rs. 25,000 every month in your bank. Work Type: You must work as a private or public company employee. Work-Ex: You must have a work-ex of at least one year. Out of this last six months must be with the present employer. Paperwork: You need to provide documents like an Aadhar card, a PAN card, a voter ID, a bank statement, etc. to the lender. Credit Score: You must have a CIBIL score of 750 or more to be eligible for a personal loan for travel. Apply Personal Loan for Travel You must apply for a travel loan online, as this method is very quick and easy to complete. Before you start, scan the documents and save them on the system. Offline methods are very slow and not efficient. Here are the steps you must follow to apply for a personal loan for travel online: Visit the official site of the bank or NBFC. You may also get the mobile app and install it to apply for a travel loan. On the home page, look for the link for ‘Personal Loans’ and click on it. Here, you can select the option for a travel loan or a personal loan for travel. After you click on it, a new screen will open on your device. Here you must enter every detail that the lender needs. This can include your name, age, date of birth, PAN number, income, loan amount, loan tenure, etc. You may also need to upload scanned copies of some papers. Verify the details again, and then click on the submit button. You will receive a reference number via email or phone. You can use it to track the loan status. If your profile meets the travel loan eligibility, then the lender’s representative will contact you. You might need to provide some more papers to process the loan. Once complete, you will need to sign a loan agreement. Then the money will reach your bank in a few hours. [B-02] Conclusion Holiday loans offer great benefits when you wish to travel but are short on funds. You need to opt for the best lender to make the most of this loan. Select the travel loan wisely and keep your budget in mind, to avoid any issues in the future. Piramal Finance will help you decide on the best loan for travel. Visit their website to read informative blogs and explore their products and services.
08-11-2023
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