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Personal Loan

Personal Loan Features & Benefits

There comes a time of emergency when one needs urgent cash. A personal loan would be the best option to get through the crisis. It protects people during crises and allows them to meet their long-term goals. It includes wedding plans, studies abroad, travel, etc. Before opting for a personal loan, one should be aware of its positive points. It will solve any doubts before applying for a loan. Read on to learn about personal loan features and benefits. [B-01] What is a Personal Loan? Personal loans are a savior during any brief money crisis. They are simple to get and accessible from almost all leading lenders. Whether organizing cash for a wedding, buying a car, or going on a family trip, a personal loan may help people with urgent money. Paying back the EMIs is simple, and they have plenty of time to do so. Many websites allow people to apply for personal loans online. People no longer need to visit banks and stand in long lines. A few clicks on a smartphone or laptop are more than enough. All these personal loan benefits help in getting a loan quickly and make it very popular. Features of a Personal Loan Flexibility of use There is no binding usage in a personal loan. One can use it as and when needed from the time of payout. Banks and NBFCs provide open-ended and closed-ended loans. It means closed funds are used only for the purpose it is taken. Open-ended loans can be used as per the user’s needs. Close-ended loans are car loans, home loans, study loans, etc. A personal loan can be used for medical expenses, college tuition fees, wedding expenses, repaying multiple loans, etc. It’s not like a car or home loan. This financial resource can be used for any necessity without limitations. It’s an easy way to get out of the money crunch. Easy payout Getting the personal loan pre-approved is usually instant. One should meet all the criteria when applying for an urgent loan. It will be a plus if the credit score is good. The usual time for loan payout is within 24 hours, or 72 hours at most. The time frame also depends on the lenders. This feature of a personal loan makes it the best bet in an emergency. Moreover, being an account holder in a bank will give the users an edge for online approval. Hassle-free payments Personal loans give an easy way to repay the amount. EMIs, post-dated cheques, bank online transfers, etc, are some of the few methods of paying back. When applying for a personal loan, it is vital to know the payback format. The payback is usually done in equal monthly payments. These are decided before getting the loan. Nowadays, banks prefer monthly payments on a set date. One thing to pay attention to here is that EMIs should be pocket friendly. Otherwise, it will be a needless burden on the finances. If the user chooses a longer payback tenure, the EMIs will be lower, and vice versa. Low loan interest rate Before applying for a loan, the primary concern is the interest rate. The interest rates of personal loans are pretty low in terms of other loans. These attractive rates of interest raise the demand for personal loans. This perk enables fixed EMI for the whole period. Bankers are pushing to bring down the personal loan rate to attract users. It might be the best time to apply for a personal loan for any major cash outflow. Income tax perks The cherry on top feature of a personal loan is the TDS that can be claimed while using the amount. Users can use this amount for building a home or for higher studies. As per the legal books, the benefits can be up to Rs. 2 lakh. The tax benefits call for proper paperwork that shows where and how the money is used. Benefits of a Personal Loan Instant approval Personal loans come with many perks. One such benefit is instant approval. Instant here means the approval process takes 24 hours. As compared to other loans, it is way too fast a process. A home loan takes four weeks to process. That’s the reason personal loans are opted for in such large numbers. No security needed The fact that loans are provided without security is one of the main reasons more people choose them in this nation. People do not need to provide security, assets, or guarantors to be approved for an unsecured loan. It is not the case with secured loans taken out for vital purchases. The capacity to pay back the loan within the allotted time is the sole factor considered when granting a loan. Adaptable It is the best benefit of a personal loan to be highly versatile. Be it to buy a luxury good, for a family trip, or for home renovation, the user is not stuck to one cause of usage. This particular personal loan benefit makes it all the more famous amongst the borrowers. Credit score merit To be in good standing with both lenders and CIBIL, one needs to have a good repayment history. If the credit score is low, there are chances of rejection of the loan. The credit score rises akin to the user’s payment habits. Never forget to take out a loan that is within your ability to repay. One missed EMI, and the credit score falls. Maintaining a good credit score can be stressful at times. But it is one of the most important features of a personal loan. Nominal paperwork Users are required to present minimum paperwork while applying for a loan. Lenders only require three IDs: address proof, a PAN card, and photo proof. All these can be scanned and submitted online. Not only this, but the process to apply has also become very simple. For ease of use, online applications are now accepted by banks and NBFCs. This unique personal loan feature has made it easy for many rural people to apply. [B-02] Wrapping-up In today’s scenario, personal loans have very high demand. The above listed are a few of the many benefits of personal loans. There is a loan available for every wish and dream. What’s important is to study the pros and cons of personal loans. One must be thorough with all the knowledge of the loan and go ahead. For further details and assistance, visit Piramal Finance.
08-11-2023
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Home Loan

What Is Home Loan Eligibility Calculator?

If you’re thinking of buying a home, you’d be wondering if you’re eligible for a home loan. You’ll want to take a look at the Home Loan Eligibility Calculator. This quick tool can help you find the best possible loan for your needs based on your income, debt-to-income ratio, and other factors. Moreover, a loan eligibility calculator can provide estimates of your monthly EMIs and the total cost of your new home. So, why not give it a try? You may be surprised at just how helpful it can be. Let us see how this Home Loan Eligibility Calculator can help you more. What is the Home Loan Eligibility Calculator? If you are buying a home, the Home Loan Eligibility Calculator can quickly assess the amount of money you qualify for borrowing. The calculator takes into account factors such as your annual income, debts, and down payment. By entering this information, the calculator can provide you with an estimate of the maximum loan amount that you could apply for. With this tool, you will then have a clear idea of the amount of money you would need to withdraw from your savings and manage for monthly EMIs. Getting your numbers right is the first step towards financial clarity. The home loan eligibility calculator can also help you compare different lenders and find the best home loan options around your eligibility criteria. This can be helpful when comparing different loans or trying to determine how much you can afford to borrow. When using a Home Loan Calculator, it is important to remember that the estimate is just that—an estimate. Your actual monthly payment may be higher or lower than the estimate, depending on factors such as: • closing costs, • escrow fees, and • your lender’s terms. However, this information will help you weigh your options and make wise decisions. You will be able to better determine and control your financial situation. As a result, the home loan, which could have strained your current finances, might be significantly reduced or controlled. Home Loan Eligibility Calculator Features The tool offers you a variety of features. The three key features are: 1. The Loan Amount is the total amount of money that you will borrow from the lender. 2. The Interest Rate is the percentage of the loan that you will need to pay back in addition to the principal amount. 3. The Loan-to-Value Ratio is the portion of the loan collateralized by your home equity. Once you have entered this information, the Home Loan Calculator will provide you with an estimate of your monthly EMI. This calculation is based on current market conditions and is subject to change. Nevertheless, it is a valuable tool that can help you budget for your new home purchase. Simple Process A Loan Eligibility Calculator is a user-friendly tool that can help you determine your eligibility for your specific loan profile. Simply enter your current income, monthly expenses, and other relevant information. The calculator will generate an estimate of how much debt you may need to take to afford your desired purchase. The process is simple and quick and leaves very little scope for errors. Free and Easily Accessible It is free to use and easy to access, so there’s no reason not to take advantage of it. Does it not ask you to make any payments to assess the loan amount you will be eligible for? Home Loan Eligibility Calculator Benefits Here are some of the many benefits of using a Home Loan Eligibility Calculator: • It helps you to see how much your monthly repayments will be. This means you can budget accordingly and make sure you can afford the loan. • It shows you how much interest you will pay over the duration of the loan. This can help you to compare different loans and look for the best deal possible. • It helps you understand how much of your loan will be upfront and how much will be due each month. This is crucial information to have when making financial decisions. • A Home Loan Eligibility Calculator is a quick and easy way to get an estimate of your monthly repayments. This can save you time and hassle when shopping around for a home loan. • A Loan Eligibility Calculator also helps you verify the repayment schedule your lender might provide you for the home loan. This way, you can ensure proper conduction. However, remember that the calculator doesn’t calculate the additional cost your lender might charge. • Using a Home Loan Calculator, you can see which bank has the most affordable monthly EMIs. You’ll also be able to compare offers from different lenders side-by-side and determine if it’s worth going through with a purchase! [B-02] Parting Words Nowadays, with all these features and benefits that are made available for you in advance online, it’s quite easy to calculate your financial requirements and eligibility. What would your next ten years look like once you take this home loan? You might be able to picture it in a much clearer sense. Perhaps, once you use the calculator, you will be able to narrow down your options and make better decisions related to your home loan. Use them wisely, and don’t take a loan of more money than what is required just because the numbers look good. If you need help with home loan finances, you can always get help from experts at Piramal Finance. They can guide you on a complete home loan journey.
08-11-2023
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Other

Repo Rates: How It Affects The Interest Rate?

The Reserve Bank of India, or RBI, uses the repo rate as a tool to maintain liquidity in the market and manage cash flow. The Monetary Policy Committee (MPC) makes bimonthly changes to the repo rate, depending on economic conditions. These changes are made to combat inflation, induce cash flow, and increase investment. During the pandemic, the RBI slashed the repo rates, to help get the economy back on track. There has been a recent hike in August, and the monthly EMI for the general public is set to rise. Several banks have already increased their borrowing rates, while others are set to do so with the recent hike in repo rates by the RBI. [B-01] What is the repo rate? Financial institutions pay the RBI a certain interest when they borrow money. They do so by selling securities such as treasury bills. This is like how people who want to borrow money from commercial financial institutions or banks have to pay a certain interest rate or put up collateral. Commercial banks also need funds for lending purposes. Besides taking deposits from the general public, they can also borrow from central banks. For commercial banks, the collateral is treasury bills sold to the RBI, and the interest rate is known as the repo rate. The repo rate not only helps central banks with credit availability but is also an effective tool for the RBI to tackle inflation. If inflation is high, the RBI increases the repo rate to discourage banks from borrowing credit, which, in turn, reduces liquidity in the economy. The repo rate is also reduced when inflation is low, to encourage banks to borrow more credit. This leads to a market supply hike, triggering fresh investment activity. What is the reverse repo rate? Commercial Banks also charge interest from the RBI to lend credit to the banking regulator. The reverse repo rate is used to control inflation levels by the RBI to absorb liquidity from the system. It is done by increasing interest rates to encourage commercial banks to lend money to the RBI, further depleting the excess liquidity from the system. In this way, banks are not left with a lot of money at hand. Bank rate vs. repo rate Commercial and central banks use repo rates to determine borrowing and lending activities. The repo rate and bank rate are the lending rates at which central banks lend funds to commercial banks. While both rates are used as tools to control the cash flow, there is a significant difference between them, and one should not be mistaken for the other. While the repo rate is charged for repurchasing securities sold by the commercial banks to the central banks, the bank rate is charged by the central bank to commercial banks against loans. Collateral, such as securities, bonds, and agreements, is only involved in charging repo rates and not bank rates. The repo rate is relatively lower than bank rates. The bank rate caters to the long-term financial requirements of commercial banks, unlike the repo rate, which focuses on short-term financial needs. How does the repo rate affect interest rates? The repo rate paid by the bank to central banks and the interest rates paid by borrowers to commercial banks are directly proportional. Since the banks pass on the increasing cost of repo rates to the borrowers to cover the gap in expenses, the interest rates on multiple loans will also increase. In simpler words, an increase in repo rate means an increase in interest rates. How does a change in repo rates impact home loan EMI? When the RBI increases its lending rate, home loan interest rates also go up. Even a small rate hike will impact borrowers as it makes home loans expensive. Home loans, vehicle loans, education loans, personal loans, business loans, credit cards, and mortgages, all affected by the rise in repo rates. Moreover, when borrowing cost is increased, people are discouraged from spending unnecessarily on goods and services, thereby reducing market demand. This also disrupts the supply and demand chain across industries. Other impacts of repo rates The RBI’s short-term hike on commercial banks has unintentionally harmed the country’s economic growth. hikes in repo rates are necessary to combat inflation, economic growth is slowed by a fall in demand. When goods and services become more expensive, people are less likely to buy them. One positive effect of repo rates is that consumers with savings and fixed deposits may find a hike in repo rates beneficial. Money supply and investment in the market will also be slowed when borrowing money becomes more expensive. The real estate sector is more affected than any sector by repo rates. You can make a balance inquiry to understand the EMI hike for your borrowings. How does the repo rate affect the Indian economy? While India is on the path to overcoming the economic setback caused by the COVID-19 pandemic, the Indian government predicts that it will take at least 12 years to revive the economy. Low-interest rates are doubtful and unexpected, only to be announced after 12 years. [B-02] Current repo rates On 30th September 2022, the Monetary Policy Committee raised the repo rate by 50 basis points. This increased the current repo rate to 5.90% and is the fourth hike in five months. Commercial banks that pushed interest rates to 6.6% will now push them to 8.5%. Borrowers without room to extend their loan tenure will observe a hike in EMI by15%. However, new borrowers need not expect an increase in rates, as banks can revise their spreads and charge lower rates in the future. The bottom line is you must know how repo rates affect interest rates charged by banks. This is particularly important if you are considering getting a home loan. Visit Piramal Finance to understand more about home loans and get financial assistance from professionals.
08-11-2023
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FD

How to Calculate FD Interest Rate Online?

There are many ways in which people save money. Most people nowadays have a savings or current account in a bank. The aim is to save money and earn interest so that you can live comfortably in the future. But savings and current accounts do not give a lot of interest on your money. This is why people tend to open fixed deposit accounts. This type of account carries a higher rate of interest. To make sure you’re choosing the right fixed deposit, you must use an FD calculator. Before we dive into how an FD interest calculator works, you should learn more about what an FD is and why people open a fixed deposit. [B-01] What is an FD (Fixed Deposit)? A fixed deposit is a financial instrument similar to a savings account or current account. It is provided by banks and NBFCs (non-banking financial companies) to their customers. A fixed deposit account is a type of investment that helps you save money and earn more interest on your money than regular savings or current accounts. The length of time a fixed deposit holds your money varies depending on the provider.You can choose the right fixed deposit for your goals based on this and the rate of interest it offers. You can use the FD calculator formula given below to make the best decision for yourself. FD Interest Calculator Choosing the right FD can be a headache. To make things simple, you can use an online FD interest calculator. You can also use the formula given below to calculate different options yourself. Formula to calculate FD Total amount earned = P + (P x R x T/100) In the formula above, P = The principal amount that you deposit when an FD is created. R = The rate of interest T = The tenure/the duration of the fixed deposit If you want to calculate compound interest on your FD, then use the following formula: Total amount earned = P + P{(1 + i/100)T-1} In the formula above, P = The principal amount that you deposit when an FD is created. i = The rate of interest per period T = The tenure/the duration of the fixed deposit Why Do People Open Fixed Deposits? Here are some of the main reasons people create a fixed deposit. Better rate of interestIn general, most savings and current accounts only give anywhere from 4–5% interest. This is not a lot of money that can be earned from your savings. A fixed deposit, on the other hand, provides a higher interest rate, ranging anywhere from 6–15% in general. Guaranteed ReturnsMost forms of investment are extremely volatile. They may or may not give you returns or dividends as promised. But a fixed deposit guarantees that you get the amount based on the rate of interest and tenure period as promised when you first open the account. Flexible TenureA fixed deposit must be held from the start to the end without withdrawing any money to get the rate of interest that was promised. But the aspect of flexibility comes in as you get to choose the period for which you want to hold the fixed deposit. Many institutions offer fixed deposits for durations as short as 7 days and as long as 10 years. Loans against an FDA great thing about an FD is that if you are in urgent need of money, you can take a loan against it rather than breaking the fixed deposit prematurely. This allows you to continue holding onto your money while still addressing emergency needs. Higher ROIThe longer you hold money in a fixed deposit, the more you earn. This happens because the interest that you earn on the principal amount compounds each year. This gives you a higher return on your investment as compared to a savings account and many other types of investments that are volatile. Factors to Consider When Choosing the Right Fixed Deposit To choose the perfect fixed deposit for yourself, you should consider the factors listed below and then use an FD calculator to make the best decision. Rate of InterestThe rate of interest is a major factor when choosing a fixed deposit. The higher the rate of interest is, the better it is. If the institution you choose is offering an interest rate on a fixed deposit that is much higher than its competitors’, do your research and try to find out why this is the case. Frequency of CompoundingThe second factor you should remember when choosing a fixed deposit is how often it provides interest on the amount you have deposited. One FD may pay interest once a year, while another may pay interest twice a year, once every six months.For example, let’s say you invested Rs. 100 in 2 different fixed deposits:FD-A has an interest rate of 8%, a tenure of 1 year, and provides interest only once a year.FD-B has an interest rate of 6%, a tenure of 1 year, and provides interest twice a year.At the end of one year, FD-A will give you Rs. 108.And at the end of one year, FD-B will give you Rs. 112.36.So even though FD-A had a higher rate of interest, FD-B gave a better return because it had a higher frequency of compounding. Credit RatingYou should make sure that the institution with which you are creating your FD has an “AAA” credit rating. This will ensure that your money is safe in the right hands. Terms of WithdrawalYou should always check the terms of withdrawal from an FD. In cases of emergencies, how fast you can withdraw your money and the penalty you pay are part of the premature withdrawal conditions. Some institutions may charge a lower rate of interest as a penalty for premature withdrawal. Trusted Brand NameAlongside a AAA credit rating, you should always choose a well-established brand name that has been operating for years to ensure the safety of your money and the best returns. [B-02] Piramal Group is one of India’s leading companies and has been operating since 1980. With over 1 million customers across the country and 40+ years of experience, you can find some of the best financial services atPiramal Finance.
08-11-2023
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Banking

All You Need To Know About Bank Balance Enquiry Process

In the digital age, technological improvements have resulted in a variety of procedures that took time and effort to do a simple activity. Financial and banking transactions, for example, can be completed without visiting a bank. With the click of a button, you can transfer money, check balance enquiry, deposit money, and perform other similar tasks. With so many transactions every day, it’s important to maintain track of your bank balance. A habit of balance enquiry keeps you alert about possible fraud immediately. [B-01] Balance Enquiry Methods Your account balance can be checked in a variety of ways. The methods listed below are some of the most commonly used for quickly checking the balance: Online Login Are you seeking a quick way to check the balance of your bank account? To begin, go to the bank’s official website and provide the necessary information. For the majority of mobile apps, look for options such as “Account Login” or “Account Access.” If you are a first-time user of the official bank website or banking app, you must first register yourself by selecting “The First-Time User.” Complete the following steps to register: Enter your bank account number, registered email address, registered cell phone number, debit/credit card number, and CVV code. Please submit the form. An OTP (one-time password) will be generated. After entering the OTP sent to your mobile number, enter the new username and password. The online account has been created. To check your balance, enter your official login and password. Apart from checking bank balances online, one can also transfer money between banks, pay bills, and so on. Balance Enquiry Text Messages Another handy way to check your balance is by SMS. When creating a new account, select the option for SMS notifications when filling out the bank account form. You will be notified of balance changes and the amount debited or credited for each transaction. Other details, such as usernames and passwords, are not necessary. You can visit a bank branch, request an SMS option, and then fill out a form to receive updates. You can also use the Balance Check Number to get your account details. All you have to do is text your registered mobile number to the bank’s number. You will also receive frequent balance updates if you choose this option. Utilize an ATM ATMs can also be used to check bank balance enquiry. Visit any ATM and follow the procedures below: Insert the card and enter the 4-digit pin Choose the option of ‘balance inquiry’ Your account balance would appear on the screen The approach is essentially the same for most ATMs. You should use your bank’s ATM because using another ATM may result in paying some extra charges. Contact the Bank If you don’t feel comfortable with the other methods, you can call the bank to check your balance. However, unlike the other choices, you can only check your bank balance at any time if the bank has a computerized system. This is because machines now do the majority of the work. You’ll be asked for details such as your bank account number, and they’ll immediately tell you your bank balance amount. Setting Up Notifications If you don’t want to get regular updates on the bank balance, you can ask the bank to send you an alert if your account balance is low. If you make a substantial withdrawal or have a low amount, your bank will swiftly tell you about the balance inquiry. When you set up such notifications, you may adjust the amount and other characteristics of them. Engaging a Teller in Conversation If nothing else works, you can call the bank and speak with a bank executive. It differs from the other option described above (contact the bank). When you speak with a bank executive, you actually speak with a person as opposed to automated calls. Every bank provides a phone number where you can speak with a bank executive. However, access to tellers is becoming increasingly restricted. Because the majority of banks have moved to online processes. Unified Payments Interface (UPI) App Checking your bank account balance with UPI is quick and simple. Follow the steps below to check your bank balance query over UPI for the first time. Install the official banking UPI app on your device. Check that the mobile device running UPI software has a registered mobile phone sim card with enough balance to send an SMS. When you activate the app, it will ask for your bank name and registered mobile number if your phone allows dual SIM. The registration process has started. To authenticate your phone number, the app will send you an SMS. Following verification, the UPI will ask you to create a UPI pin (not an ATM card pin) and will issue you with a UPI ID. Choose four digits password. Your registration process is now concluded. Dialing Missed Call When a consumer makes a missed call with their registered mobile number, banks send them a balance update. Only a registered mobile phone number is necessary to get an update through SMS. Make sure that your phone number is registered with the bank so that you can receive balance updates. To make a missed call or get an SMS, the number must be functioning. [B-02] Conclusion With all the modern facilities available now, Balance Enquiry has become an easy job. You can check your account balance with a click. Instead of visiting a bank and standing in a queue for long, you can now open an online application to get most of your tasks done. Check the official website of Piramal Finance to understand how balance enquiry works and how you can get a hold of your bank account. You will get many informative articles to read on their website and a chance to explore the wide range of products and services they deal in.
08-11-2023
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Banking

Difference Between Net Banking And Corporate Banking

Want to know some of the differences between net banking and corporate banking? Well, you must have come across these options while carrying out online payments and transactions. You might have doubted if they are the same. Well, this article will help you navigate through both of these options. Read on to know what net banking is, what corporate banking is and what features make them different from each other. [B-01] Net banking and its features Net banking is an online banking system that allows you to carry out both financial and non-financial banking services through the internet. For that very purpose, net banking is also referred to as Internet banking, which you use on a daily basis. It helps you make your transactions within seconds, allows you to keep records of your transactions, etc. If you have a bank account and wish to use the services of net banking, then you have to make a registration. After you have registered, you are now allowed to use all the services without any problems. Exclusive features of net banking Here are some of the exclusive features of net banking or Internet banking: Quick access to banking services This is a striking feature of using net banking services. You get very quick access to all your banking services, both financial and non-financial. You can carry out transactions, process payments, cover up bills, take out your bank statements, etc. Different IDs and passwords for different users Every customer who has a bank account happens to have a different ID and a different password. Simplicity Internet banking services are smooth, and everything is available in its simplest form. It is so simple that you can avail yourself of their services within seconds. Updating options If you have been using net banking for quite a while, you have probably noticed that you can update your passwords, some general information, etc. For loans and insurance You can use these services to even apply for a loan in case you need emergency funds. Using net banking, you can apply for health insurance, bike insurance, and car insurance. Striking benefits of net banking The following are some unique advantages of using net banking: Available 24*7 You can use all the net banking services at any time of the day because they are available all the time. Since it is available 24*7, this is often better than visiting banks during holidays or strikes. Faster transactions You may have noticed that online transactions via net banking are extremely fast. You only have to log in using your credentials, enter the amount, and verify it using your password. Tracking down your transaction history You can easily track down all your previous transactions using net banking. This is also very helpful at times when you don’t have original copies of bank statements. Secure and encrypted In terms of security, net banking is very secure, as it is backed up by your ID and password and followed by your mobile-generated OTP. Also, net banking options can only be accessed using your mobile device, which increases security. Convenient You can use net banking services from anywhere based on your comfort, which is not available in the offline mode. Corporate banking and its features? Corporate banking is an online system where banks provide financial services to corporates, commercial companies, etc. This includes services like credit management, asset management, etc. Commercial companies and institutions use corporate banking because it helps them meet their business objectives. In return, banks also provide some benefits to these companies to maintain a good relationship. Corporate banking is widely used as it offers cash management and asset management. It is also used for payment processing and creating business strategies for corporation firms. Striking benefits of corporate banking? Low-interest costs As mentioned earlier, the interest costs are much lower for companies, and that is why they opt for corporate banking services. Operational convenience Convenience is high for commercial companies and business institutions, as corporate banking helps them manage their cash positions and control different branches of the business. Regular updates and better accounting Corporate firms also get detailed information and updates on all their daily or weekly transactions. This service helps companies keep track of everything and keeps them updated about their monetary transactions. Difference between corporate banking and net banking The basic difference is that net banking is used by individuals for regular, day-to-day transactions, while corporate banking is used by commercial firms for business purposes. Net banking deals with customers, tracking their history, and managing their finances. On the other hand, corporate banking helps corporate customers manage their credit and assets. [B-02] Wrapping up In recent years, there has been a rise in the number of retail customers and corporate customers simultaneously. Both net banking and corporate banking have started to provide better services and meet all the needs of their customers. Both of these services are secure, fast, convenient, and user-friendly. If you like reading similar articles and blogs, you must visit Piramal Finance. They share knowledge about topics, ranging from personal loans and financing to investments and SIPs.
08-11-2023
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Personal Loan

Personal Loan Eligibility Calculator: Check Eligibility Online

One may need loans for many reasons. Many banking firms can assist them. Each lender has its own criteria for the types of people to whom they extend their services. These factors affect one’s personal loan eligibility. One can now check their eligibility using an online personal loan eligibility calculator. They can simply access their pros and work on their cons to improve their chances of getting a loan. In this article, one will look at all the factors and what one can do to improve their chances of getting a loan. [B-01] What is a Personal Loan Eligibility Calculator? The personal loan eligibility calculator helps one find the highest personal loan amount one is eligible for; it is also known as a personal loan checker or personal loan limit calculator. Simple information like the desired tenure, net monthly income (in Rs.), and monthly costs (in Rs.) must be entered (in months). A person can determine how much money he can get after entering all the information into the personal loan eligibility calculator. Many lenders use various methods to check loan eligibility. Personal loan eligibility is decided based on the person’s fixed monthly income status. Some lenders use the FOIR (Fixed Obligations to Income Ratio) method to figure out who can get a personal loan and what the terms of the rebate are. The formula for checking a lender’s eligibility through FOIR is: FOIR = (Total Existing Obligations/Net Monthly Salary) x 100 People can also check EMI amounts using this method. The Net Monthly income (NMI) method is another great way to check a person’s eligibility. Lenders use a multiplier based on the person’s net monthly income to determine the highest loan amount. NMI allows one to get up to 30 times their net monthly income. How Does an Online Personal Loan Eligibility Calculator Work? It is very simple to use the online personal loan eligibility calculator. One only needs to type in the data given below: Months of Tenure: One should choose a number from the list. Qualification: The person should choose their job qualification. It includes Company Secretary (CS), Chartered Accountant (CA), doctor, etc. Net Monthly Salary: A minimum net monthly salary of Rs. 20,000 is needed. Fixed Monthly Funds: This involves any other EMIs one may be carrying and the basic monthly living costs. The person should enter these values into the personal loan eligibility calculator. They can see how much they can get this way. Factors That Affect Personal Loan Eligibility The factors affecting personal loan eligibility are given below: Credit Rating One of the most vital factors affecting personal loan eligibility is the credit score. If a person has a credit score of 700 or higher, they will be regarded as more financially stable. They will find it easier to get a personal loan. As a result, banks and NBFCs choose to provide loans to people with good credit. If one has a good credit score, they can also benefit from many interest rate deals and special offers. So, it is always advised to keep the credit score as close to 900 as possible. Employer Reputation One of the many factors that may impact personal loan eligibility is the employer’s reputation. Many banks give personal loans to self-employed and salaried people. But, people with a stable income may get a lower interest rate than self-employed people. Usually, government workers are chosen first, followed by reputable corporations and MNCs. For salaried people, if they have more work experience and have been good workers for their company, they can get a referral from their company. It will make their personal loan much easier to get. Age Age is one of the most vital factors in deciding whether a person is eligible for a personal loan. One’s monetary stability is determined by their age. They will not be able to take a personal loan if they are too young or too old. Many banks have a set of criteria for people who wish to avail themselves of a personal loan. If the person is over the age of 60, they are no longer eligible for a personal loan. Personal loans are usually available to people aged 21 to 60. Income A person’s income is the most crucial factor in deciding their personal loan eligibility. When a person takes out a loan, they must be financially stable enough to pay back the loan amount plus interest. A personal loan will not be given if they do not have a stable source of income. Payback Period Most banks give personal loans to those who have an EMI ratio between 50% and 55%. Also, the loan amount cannot be greater than 50% of the person’s yearly income. Benefits of the Personal Loan Eligibility Calculator There are many benefits to loan eligibility calculators. These are given below: One Can Avoid Loan Rejection If the personal loan eligibility calculator shows that the person is not eligible for a specific loan amount, they can work on ways to boost their monetary status. They can lower the chance that their loan request will be denied in this way. Save Time and Energy With the help of a personal loan eligibility checker, one can check in less than a minute whether they meet the criteria for a personal loan from a single lender or from many lenders. So, it saves people time and energy. Quick and Accurate Results It only takes a few clicks to determine a person’s eligibility for a personal loan using a calculator. It automates the calculation, fulfills it in a matter of minutes, and gives a precise estimate of the amount of the loan. Accessibility and Usability Even if one lacks much financial background, one can still use the eligibility calculator. They are accessible and available online. [B-02] Conclusion The best way to figure out a person’s loan eligibility is to use a personal loan eligibility calculator. The person will find the monthly EMI, total interest costs, and total rebate amount. Many factors affect the eligibility of a person wishing to avail themselves of a loan. But, once the person has considered all of the factors that go into defining how reliable they are from a lender’s point of view, they can work to boost their chances. This service is provided by many lending firms, including banks and NBFCs. All one has to do is find the best match for their needs. One can visit Piramal Finance for more details related to a personal loan eligibility calculator. They can also explore their products and services.
08-11-2023
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Other

Step By Step Process For How To Generate New Atm Pin

Account users may generate an ATM PIN by visiting the particular bank’s ATM. For PIN generation, they may use their registered mobile number, internet banking, or mobile banking services. This procedure makes it easy for every account holder to generate the ATM PIN. Also, account holders may get a debit card at the moment of account opening. But they must also know how to generate the ATM PIN. So the process of debit card generation is easy. But do you know that you must take precautions during the entire process? This blog will explain various techniques for generating an ATM pin. [B-01] What Is ATM PIN? An ATM PIN or Personal Identification Number refers to a 4-digit code. So this code is unique to every bank account holder. This code ensures the security of every transaction you undertake. It could be cash withdrawals, POS transactions, or online transactions. Furthermore, the transaction is only complete when you enter the correct pin. So this reduces the possibility of fraudulent transactions. How To Generate Debit Card ATM PIN? Below we will list various methods to generate an ATM PIN generation. So users may opt for any of these methods as per their accessibility and convenience. Note that the mentioned process and procedures may vary from bank to bank. Let’s check the steps for ATM PIN Generate: ATM PIN Generation Through ATM Machine So you need to visit the ATM kiosk of your bank to set up your card’s PIN using an ATM Machine. Next, insert your card into the ATM and choose “Generate PIN.” If the bank has provided you with a temporary PIN, you will need it to set up the PIN on your ATM card. If not, you will use the OTP to authenticate to initiate the process and generate ATM. To authenticate your request to create an ATM card PIN, certain banks may need you to provide your bank account and registered mobile number. After verification, you may continue to enter and submit your four-digit card PIN. ATM PIN Generation Through SMS You can follow these steps if you are thinking about generating an ATM Pin through SMS. Type the text in your bank’s required format and forward it to the bank’s SMS service number. Once the request has been received, you will be given a temporary OTP active for a few hours. Then, you will need to take the following steps: Locate the bank ATM closest to you. Put your debit card into the ATM Select “Generate PIN” for pin generation Enter the temporary PIN received Select “Confirm” Input your four-digit PIN and then re-enter it. Select “Submit” to verify your PIN. ATM PIN Generation Through Netbanking Log in to the bank’s online banking site Browse to the “Debit Card” part of the site. Then, choose any option that indicates “generate PIN” or “create a PIN.” Once you select this option, the site will provide activation instructions for your debit card. Follow the online activation procedures for your debit card. ATM PIN Generation Through the Mobile App You may generate your ATM card PIN using your mobile banking application. Here are the procedures that you need to take: Use the bank’s mobile app to log in. Select the account you want to generate a PIN for your ATM card. From “ATM Card Services,” choose “Generate PIN.” Input the four-digit PIN code and confirm it. Use the OTP issued to your registered mobile number to validate. After authentication, you can now use this pin to conduct transactions effortlessly. ATM PIN Generation Through The Customer Care To create a PIN via customer service, you must contact the customer service number for your bank and receive an OTP for PIN creation on your card. You will need to provide specific information, like your account number, card number, etc. So once all the information has been verified, you will get an OTP active for a few hours. Next, follow these steps: Visit the bank ATM closest to you. Insert your debit card into the ATM Select “Generate PIN” Input the received OTP Select “Confirm” Input your four-digit PIN and then re-enter it. Select “Submit” to verify your PIN. Note A Few Things Banks provide OTP to the user’s registered cellphone number to authenticate and activate the debit card. Never discuss or click on spammy links to activate or change/create your debit card PIN with anybody other than the bank. Points To Consider While Generating ATM PIN Keep these things in mind whenever creating a PIN for a debit card: Do not click on odd links or websites that ask you to update or generate your debit card PIN. Never disclose your PIN for your debit card to anybody. Prevent using your birthdate, mobile number, or other sensitive data as your password. Safeguard your PIN when using your debit card at a POS. Always transact with your debit card on authorised sites that require you to enter your PIN. Never reveal your debit card PIN via telephone, email, or text. Banks never request banking credentials or other personal details over email, text, or telephone. Always handle your debit card with caution. Maintain a routine of updating the PIN of your debit card after PIN Generation. Always Keep Your ATM PIN Confidential Because the PIN gives you (or anybody who knows it) access to your funds, it is crucial to keep the pin confidential. Protect it and avoid writing it on the backside of your ATM or debit card. Also, some individuals use a single PIN for all their cards, phones, etc. This is not a wise decision. Develop and implement a particular logic for various PINs. When you use the same PIN for every transaction, you are putting too much of your financial data at risk. Never reveal the PIN to anybody who calls and pretends to be a bank employee. [B-02] Conclusion For ATM PIN generation, you may follow the above instructions. Nevertheless, before activating your debit card, understand the PIN-generating procedure and keep other factors in mind. Stay aware and avoid falling into any fraudulent transactions. For more information, get in touch with Piramal Finance.
08-11-2023
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Personal Loan

How Much Personal Loan Can I Get on My Salary?

The higher your salary, the more money you can get as a personal loan. Ideally, you should be eligible to get an amount that is 30 times your monthly salary. However, there are a few other factors, such as your credit score, the tenure of loan you prefer, and your Debt-to-Income ratio, that the lenders consider before approving your loan. [B-01] Personal Loan Eligibility Criteria Since personal loans are unsecured loans, most banks and financial institutions have set a limit of 25 lakhs against them. However, there are certain conditions that you have to meet to get a personal loan: You need to be an employee of a public or private company that satisfies the basic minimum turnover condition Your age should be between 21 and 60 years You should be drawing a salary of at least Rs. 25,000 if you are a resident of Mumbai or Delhi. In other parts of India, the minimum salary for a personal loan is Rs. 20,000. You should have worked in the current company for at least 18 months If you are a self-employed individual, you should have been in business for at least 5 years. Your loan will be gauged based on your profit after deducting tax. Methods of Calculating Personal Loan Companies choose various methods to calculate the amount of personal loan for salaried people. Here are some of the standard methods used: The Multiplier Method This is a simple and common method for calculating personal loan amounts. In this method, the net monthly income of an applicant is multiplied by a fixed number. This can range anywhere between 10 and 24, depending on the applicant’s monthly income and the lender’s discretion. For instance, if you are drawing a monthly salary of Rs. 40,000, you can get a personal loan of Rs. 9,600,000 (40000 X 24), provided you don’t have any financial burden. The maximum loan amount that you can get through this method is 15 times your net monthly income. The EMI / NMI Ratio Method In this method, the proportion of income that goes into paying EMIs determines the personal loan amount. You can be eligible for a personal loan if your EMI/NMI ratio is between 50 and 55 per cent. To increase this loan amount you may want to extend your tenure or go for a lower interest rate. Documents Required for Personal Loan Personal loan for salaried people involves minimal papers and is free of hassles. You will only need to submit: Your salary slips for the past three months Your bank account statements for the last six months Your KYC documents such as your Aadhar Card, PAN Card, and Driving License Interest Rate for Personal Loan The interest rate calculated for personal loans varies from lender to lender. The interest depends on the borrower’s credit score, their monthly salary, the company they are working for, and their financial duties. The interest rate on personal loans is generally higher than those on home or auto loans. However, here are a few things you can do, to get a personal loan at a lower interest rate: Improve your Credit Score A credit score of 750 and above is usually considered a good credit score when it comes to getting a personal loan at a lower interest. To improve your credit score, you should start clearing your debts and dues and make sure you don’t use more than 30 per cent of your credit limit. You should also make it a point to check for any errors in your credit report routinely and get them resolved. Try increasing your credit limit, if possible, and keep a healthy mix of secured and unsecured loans. If you are a guarantee or co-signer for any other loan account, make sure it is repaid on time. Pay Your Bills on Time Clearing off your bills and credit card debts within time is crucial to get a personal loan at a lower rate of interest. If you are paying EMIs for any existing debts, make sure you pay them on time. If you have a good EMI repayment history, you have better chances of qualifying for other loans, in future. Also, you will be in a good position to work out better interest rates. Compare Lenders and Grab Seasonal Offers There are many online financial marketplaces where you can compare the interest rates offered by different lenders, before deciding on a particular loan to apply for. You can discuss it with your existing lender for a better interest rate, considering your pre-existing relationship. Some banks offer attractive personal loan schemes during the festive season. It might make sense to check these out if you can wait until such times. Identify the Method Used to Calculate the Interest Interest rates on personal loans differ depending on the method that your lender uses to calculate the total amount of interest payable. For instance, in a flat interest rate method, you will be paying the same amount of interest throughout the tenure of your loan. In a reducing interest rate method, the interest amount that you pay reduces month after month. This is because the interest is calculated on the full loan amount in case of a flat interest rate. In the case of a reducing interest rate method, the interest is calculated on the remaining principal amount. So, if you avail of a personal loan at a flat interest rate, you may end up paying more interest than what you would pay for a personal loan with a reduced interest rate. [B-02] The Bottom Line It may not be too difficult to get a personal loan if you are working in a good company and are drawing a high salary. However, it is always wiser to know the various aspects of the loan, such as the interest rate, the tenure, the loan amount, the processing fee, and prepayment charges if any, before you apply for one. Try Piramal Finance if you are looking for a personal loan at a lower interest rate.
08-11-2023
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