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Mutual Funds

Complete Guide on How to Calculate SIP in Excel

Looking for a way to invest in mutual funds or any monthly investment option? Want unique features like Rupee Cost Averaging and a reduction in risks? Want to know about something that compares to lump sum investing in mutual funds or stocks? SIP Calculator will help you to calculate the returns from mutual fund investments. In this article, we learn about mutual funds SIP, benefits and ways to calculate SIP in excel. [B-01] What are Mutual Funds SIP? You can choose SIP to invest regularly. One approach to investing regularly in mutual funds(MF) or other options is through a systematic investment plan or SIP. For brevity and clarity, this essay will treat SIPs as mutual fund investments. You can use the SIP method to invest in stocks and shares of corporations. As such, let’s examine the value of SIP and why you should begin using it. Let’s look at some numbers before we get into the meat of the case for SIP investing. The total monthly SIP receipts were INR 43.921 crores in 2016–17 and are projected to reach INR 1,00,800 crore by the end of the upcoming fiscal year (2021–22). That’s an increase of almost 100% in less than five years. Additionally, as of January 2022, there were 5.05 billion SIP accounts in India used for investing in mutual funds. So, why do Indians seem so keen on SIP mutual funds? This is because of the benefits of SIPs over traditional investing methods, such as rupee cost averaging and lower overall risk compared to making a single large investment in a stock or mutual fund all at once. Benefits of SIP: Rupee Cost Averaging: This concept is equivalent to dollar cost averaging, but let’s consider it in Indian rupees for now. Since a SIP invests in MF on a predetermined schedule, it allows you to buy fewer units of mutual funds when the market is doing well (and thus when their prices are high) and more units of mutual funds when the market is doing poorly (and (price goes down). Lowering risk: Your SIPs allow you to invest regularly despite market fluctuations, which helps to maintain a more stable investment value than would be possible with a lump sum investment in which the full amount would be invested all at once following a slight decline in the market. For SIP, this means less danger. Mental Strength: Unlike with a lump sum investment, you won’t need a sizable amount of cash to get started with a systematic investment plan. A small percentage of the total cost is paid upfront, but the long-term advantages more than justify the initial investment. Achieving goals: “Slow and steady wins the race” is a cliche you’re probably familiar with. It’s not about how fast you go but about how patiently and persistently you finish the race. A SIP is a great way to save money for the future and reach your goals more quickly. How to calculate SIP in an Excel sheet? Now you know the difference between a systematic investment plan (SIP) and a net asset value (NAV) in a mutual fund. Let’s now study ways to calculate SIP returns in Excel. To reiterate, figuring out a SIP and keeping tabs on your investments is a breeze in Excel. Step 1: I will use a mutual fund I’ve been following for a year to demonstrate how I would track the NAV. The monthly SIP investment amount we’ll use as an example is Rs. 5,000. Step 2: To use the units SIP calculation formula: Units = Amount / NAV, to determine how many units will be issued for each monthly investment. Similarly, we determine the monthly SIP calculated payments. Step 3: We sell our MF units (redeem funds) based on the recent NAV of the mutual fund. The amount earned from selling all units is calculated as follows: Total Amount = Total Units * Most Recent NAV. When does SIP get matured? It’s worth noting that you have complete liquidity over your units when you invest in a mutual fund through a SIP. As of yet, we have no established SIP expiration date. You are not required to maintain your SIP investments for a minimum of one year or a maximum of five years. You can trade whenever it suits you. But, depending on the mutual fund you choose, you might not be able to sell too soon because of fees or minimum holding periods, which we call exit rules or criteria. The phrase “0.1% charged for units redeemed in less than a year” describes one set of rules for early withdrawal. For example, you buy some units first. Now due to any reason, you sell them within a year. You need to pay 0.1% of the profits after selling them. Each month’s SIP allocation will have a 1-year duration with its departure conditions. With such exit rules in place, however, you can withdraw the funds within a year for the price of 0.1% of your total profits of a year (if you’re okay with that). Units of mutual funds are subject to a 5% redemption fee upon request or sale, although this fee is waived if you choose to hold them for above a year. [B-02] Summing-up: This article intends to do just that: examine the SIP Calculator in great detail. You should carefully consider whether or not an investment is the best choice for frequent, long-term use. The SIP Calculator will help you determine how much money you should invest in various stocks or mutual funds with a particular sum of money. Before investing, it is also important to be aware of the other side. Investment Reliable does not offer financial advice, but we provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also, visit Piramal Finance, which has more in-depth, educational, financial-related articles.

08-11-2023

Personal Loan

Everything You Need to Know About Small Personal Loan Online

In recent years, a growing number of people have turned to personal loans as a method of financing expenditures. They pay for it in 12 equal monthly instalments (EMIs). Personal loans can be put to a variety of uses, including buying a home or automobile, providing financial help for a child’s college education, or covering medical expenses. A pile of bills you didn’t expect? Not able to stock up on food until you get paid? Simply visit a personal loan agency like Piramal Finance to apply for a small personal loan. If you are in urgent need of help but do not have a lot of money to put toward the repayment of a loan, you may want to get a small loan, which is a form of an unsecured personal loan. Because these loans are for relatively modest sums, the terms are often for a shorter period. If you need a modest loan and have decent credit, many lenders will allow you to select how long you have to pay the loan back, giving you more flexibility in your situation. [B-01] How does a personal loan for a small sum help? The majority of people resort to getting smaller loans to cover their more manageable out-of-pocket costs, including but not limited to: Home expenses Latest gadgets Medical expenditures Bills that were not expected Small loan varieties available in India Payday loans A payday loan is a short-term, unsecured loan that is often taken out for 1 month and paid back in full, with interest, when the borrower gets their next paycheck. When looking for a payday loan, the interest rate you end up paying may be different from one lender to the next. Small personal loan Most personal loans have longer terms for paying them back (anything from 2 months to 5 years). If this is the case, you can change the amount of time you have to pay back the loan. The interest rates on payday loans are very high, while the rates on small personal loans are usually much lower. Line of credit loan A line of credit loan is also called revolving credit. This is a type of short-term, unsecured loan in which a lender gives you a credit line for a certain amount. If you need money, you can borrow as much as you want from this line of credit and pay it back each month with interest. You can take out as many small loans as you need with this line of credit, up to your credit limit. Interest is figured out based on how much you borrowed and not on your total credit limit. Perks of a small personal loan Getting a personal loan can be useful in many different kinds of circumstances. There are many advantages to obtaining a personal loan with a low-interest rate, including the following: People are turning to small online loans because they make it possible for them to obtain funds at interest rates that are far lower than those offered by traditional lending institutions like banks and credit unions. When you borrow a small amount of money through a personal loan, you can get the money you need without worrying as much about the interest rate. Since they are unsecured loans, the majority of Indian lenders make it simple to obtain approval for a modest loan. Once you’ve chosen a lender, you can apply for a loan online through their website, as long as you meet all of their requirements. When asking for a small loan online, one of the most beneficial aspects is the fact that the majority of online lenders offer flexible repayment terms. It is possible to adjust the term of the loan so that it is suitable for your financial situation. For a personal loan, unlike with other kinds of loans, you won’t have to put up an asset as collateral to get the money you need. Things to keep in mind before applying for a small personal loan Keep your credit history in good standing Analyse the difference between the various market interest rates Assess all costs When deciding how much of a loan is appropriate for you, you should think about your needs Examine how well you can afford to pay back the loan Stay away from deals that seem too good to be true Why should you choose Piramal Finance for small personal loans? Discover the actual ease of a personal loan from Piramal Finance, with no fees for foreclosure. Our loan is the one-stop shop for all your financial needs, whether they be for a vacation, the purchase of a dream gadget, the payment of school tuition, or the financing of a dream wedding. If you need help with any part of the application process, our team of seasoned advisors is here to help. We’ve introduced Piramal Suvidha EMI to help you pay off your loan in monthly instalments. In contrast to similar products, this one allows you to split your monthly payments in half and make them on the 16th and 1st of every month. Since the loan is being repaid in smaller chunks, the monthly payments will be easier to handle. A selection of highlights from our wide variety of personal loans It is possible to foreclose on the property or prepay it without incurring any penalties A financial aid package that ranges from Rs. 10 lakh to Rs. 1 crore Minimum paperwork Monthly payments that are both affordable and timely There is a choice of payment terms, ranging from 12 months up to 60 months Making use of many incomes to boost one’s chances of being approved for a loan [B-02] Conclusion You could run out of cash at any time and need help right away. In this situation, the best way to get the money you need is to fill out a small personal loan application. Personal loans that don’t need collateral are easy to get and don’t take long to get approved.

08-11-2023

Personal Loan

How salaried persons can avail of personal loans?

As we go through life, we are faced with many situations and expenditures which may not be manageable with a monthly paycheck or savings. For those situations, whether it be for medical purposes, marriage, starting a new business, or financing education, we need extra help. Taking loans for specific purposes such as a Home Loan, or a Car Loan may limit the purposes for which they can be used, and require additional collateral with fixed tenure and high rates of interest. It may also take a longer time for the application to be processed. To avoid hassles while borrowing, applying for personal loans become your best bet. [B-01] What are personal loans? Personal loans are loans which can be used to cover personal unspecified expenses and can be borrowed from banks and online lenders. Many sources of these loans offer different rates of interest and terms of repayment. Personal loans are also unsecured loans, which means that you do not need to offer collateral. Therefore the specific aspect makes it easier to apply for personal loans than for other types. Applying for a personal loan as a salaried person While it is easier to get a personal loan because there is no requirement for collateral, as well as the quick processing time, there are still some factors that are essential for successfully availing it. Employment history and income are very important criteria. Applying for a personal loan as a salaried worker is therefore much more favourable for you. You can apply and avail of the personal loan because you can show proof of your income and qualify for the loan amount. Most lenders will also offer you loan repayment installations based on your salary, such that the EMI is not more than half of your monthly income, and you also have flexibility in choosing the tenure of your loan. How to apply for a personal loan The process of applying for personal loans has been made very easy due to digitization. Now, instead of making a trip to the bank for your application process, you can directly apply for your loans from the comfort of your home as well. While the process may differ from lender to lender, most banks have the option of applying for a personal loan on their respective websites. You will most likely have to first check your eligibility, and then fill out a form and upload the required documents. If approved, it may not even take more than 24 hours for the loaned amount to show up in your bank account. Through this easy technique, you can avoid the hassle of physically going to the bank. Requirements for a personal loan application While the documents required can be different for different lenders, some of the main documents that have to be present along with the application form are: Proof of income in the form of salary slips, bank account statements, employment certificates, proof of residence; and identification in the form of PAN, and/or Aadhaar cards. Important things to keep in mind Credit score: Other factors also affect your eligibility for securing personal loans such as your credit score or your CIBIL score which is a value that indicates your ability to repay loans on time. The higher your credit score, the better your chances of successfully applying for a personal loan. While some lenders require a CIBIl score of 600 plus, others may be more flexible. Prepayment of Loan: It is important to remember that if you pay the loaned amount before the agreed-upon term, some lenders can charge some amount of penalty as foreclosure fees. However, this is not the case for all lenders, e.g. Piramal Finance has 0% prepayment charges. Minimum Salary Eligibility: Another important criterion for applying for a personal loan is the minimum amount of salary which differs from lender to lender. Most often, the amount varies from Rs. 15,000 to 30,000 for salaried professionals. Therefore you need to meet the minimum criteria while applying for personal loans as a salaried person. Age Eligibility: While personal loans can be for innumerable and unspecified reasons, a minimum age has been set for qualifying for personal loans. The minimum age for applying for a personal loan can vary from 18 for some lenders to 21 for others, and under 68 years of age. Employment History: For some lenders, you also need to have 6 months to a year of working at your current work to apply for a personal loan. The more years of work history, the more favourable your chances. [B-02] Fraudulent websites: Because personal loans are loans that are often available through multiple channels, some that are online and easy to apply for, you can come across fraudulent websites, and finance forums that offer loans at very low-interest rates to dupe you for your money. Therefore, it is important to remain alert while searching for the best offers to apply for a personal loan. Always take your time to research whether the site is legitimate or not because your savings matter. To get further information from a trusted source, you can check out Piramal Finance for further clarity. Their easy application process and hassle-free approach are highly recommended.

08-11-2023

Personal Loan

What Is Personal Loan Transfer: Everything You Need To Know

What’s the first thing that comes to mind when you hear the phrase “personal loan transfer“? If you’re like most people, your thoughts go to the money borrowed. Although it is a concept not known to many, personal loan transfers are helpful for those under huge debt. How can you apply for a personal loan transfer? Many factors need to be kept in mind when it comes to personal loan transfer, which we will explore in this article. We will also look at how personal loan transfer works in India. [B-01] What is a Personal Loan Transfer? Personal loan transfer involves the transfer of loan balance from one lender to another. It is undertaken when the borrower chooses not to pay the outstanding loan balance or has been denied a fresh loan, and no alternatives are available. Individuals who are unable to repay the full balance of their personal loan will often require a personal loan transfer. If they have met the conditions of repayment, as per the original lender’s terms, it is possible to get an instant approval personal loan faster. If the borrower has applied for a new personal loan but was denied due to the existing outstanding balance on their account with the same lender, they can request a private loan transfer. The first step in this process is contacting customer service representatives at both lenders and ensuring that both parties agree to transfer the outstanding balance from one bank account to another. It may take anywhere between 10-15 days to know the status of your personal loan transfer application. How do Personal Loan Transfers Work in India? Below is a step-by-step guide on how to apply for a personal loan transfer in India: Personal loan transfers help you transfer the entire balance of your personal loan from one bank to another. All you need is your account number and IFSC code for both banks, which you can find on your latest bank statement. The entire process takes up to 10 working days. If you’re unsure of the amount owed to each bank, speak with their representatives before making a transfer. Otherwise, the interest rate levied on the outstanding loan balance can become expensive. Once everything has been sorted out, the bank will contact the lenders involved, so that they stop debiting any payments from your account. Your outstanding debt will be transferred, and you’ll only owe what’s left over, to the new lender. It is worth noting that this process does not affect your credit score and has no impact on your eligibility for other loans or lines of credit. However, some administrative fees might be involved, depending on where you live in India. What are the Benefits of Personal Loan Transfers in India? Here are some advantages of personal loan transfers: Personal loan transfers are a way to change your lender without closing out your existing loan and starting afresh with a new lender. When you transfer a personal loan, all of your original loan terms and conditions remain unchanged. The same interest rate, as on the original loan amount will apply, and your schedule for monthly payments won’t change. You’ll be able to retain the same loan amount and interest rate without starting from scratch with a new lender. A personal loan transfer is usually free of charge, making it a viable option for people with high outstanding debt. You’ll be able to understand whether or not your new lender offers more favourable terms before anything else changes. If you’re interested in transferring your personal loan, you’ll need to contact your current lender about getting a transfer. The process for transferring a loan can vary depending on who your lender is and what type of loan you have. An important point to remember is that personal loan transfers won’t affect your monthly payment schedule or anything else related to your loan. If you’re going through a personal financial crisis, such as an unexpected job loss or medical emergency, discuss it with your lender immediately. They should be able to assist you in such cases. Lenders want their customers to be happy, which they will be if lenders help them with paying off debt during difficult times. What are the Risks Associated With Personal Loan Transfers in India? Despite its benefits, personal loan transfer has certain risks: When you transfer your loan balance between lenders, you are paying off the new loan using the amount from your original loan. As a result, this can either make it more difficult or impossible to repay your old debt. Another risk is that if you don’t qualify for a new loan, you might have to pay interest on both loans for an extended period. This can prove to be expensive, since you are now repaying two loans at the same time, increasing your debt. If your latest credit score isn’t as high as required, you might not get approved for a new loan. If any of these situations occur and you can’t repay the new debt by its due date, you may incur late fees and penalties from the lender. [B-02] Final Takeaway If you are in a position where your debt is high, you may want to consider a personal loan transfer. Remember that your goal is not to get out of debt; the goal is to alleviate the stress and pressure that comes with undertaking loans. To get an instant approval personal loan, visit Piramal Finance for more information.

08-11-2023

Calculator

Importance of EMI Calculator in Getting a Personal Loan Online

A personal loan is a fiscal product that has lately gained success due to its unsecured nature. It implies that you do not have to present or commit any assets as collateral to get a personal loan. The great feature is that the money lent may be utilised for nearly anything. Personal loans are paid quickly, generally within one or two business days after approval. Many have begun to utilise internet calculators rather than manually calculating EMIs. Many banks offer a free calculator on their internet portals. The personal loan EMI calculator equation is now accessible online. [B-01] The Importance of a Personal Loan EMI Calculator Aids in the Planning of Your Budget Once you’ve got all of the data on the monthly repayment sum, planning your other expenses and savings becomes a lot simpler. When you grasp the formula for a personal loan EMI calculator online, you may also plot out all your existing or future debts and get an idea of how much you owe in EMIs. Knowing your financial status ahead of time is usually a smart idea. Loan Term You may use EMI calculators to pick the best loan tenure plan. If you pay a large volume of EMIs to decrease your loan’s interest rate, the loan’s term will be extended, and vice versa. You may alter the loan amount & number of EMIs to get the most cost-effective loan term. You may also play with various debt sums and terms to get the cosiest choice. Assured Good Credit Rating Knowing your income reports in advance always will help you keep a decent credit score. If you are aware of all your EMIs in advance, the odds of missing a loan payment are small. This is vital since avoiding a low credit rating is important. However, before the calculator can present you with a value, you must first input your credit rating. If it’s awful, you’ll have to pay higher interest rates. In this event, boost your credit rating. Rates of Interest The first item to consider when seeking a 2 lakh personal loan is the interest rate. The interest rate varies based on the loan term and the EMI. The calculator makes your task much simpler by letting you pick and try out various numbers until you find the best price. Eligibility and Precision Based on the info you supply, the calculator will assess if you are suitable for the loan. The method utilised in the calculator varies based on the loan. You may be unaware that different equations are used to compute various types of loans. As an outcome, you won’t have to bother about manually computing it or verifying if the proper formula was used. As a result, all of the estimates are correct. Accessibility As they are available online, EMI calculators are simple to use. Adjusting the calculator to your needs and checking various interest rates & tenure choices to find your plan renders the process quite engaging. How Does a Personal Loan EMI Calculator Assist You in Selecting the Best Loan? It may be hard to compare the many loans offered on the market, so it is helpful to have someone you can rely on to help you go through all of the facts and figure out how much each debt would cost you. A personal loan EMI calculator is perhaps the simplest way to assess many personal loan offers and pick the loan that best meets your needs. Employing the personal loan EMI calculator online allows you to compare different loans simply and rapidly. It aids in calculating your EMI with the various lenders. When looking to apply for a loan, consider how much you want to loan, how long you need to loan for and at what interest rate. All you need to do is enter the loan sum, interest rate and duration. You may try out various mixes and combinations of all three elements to find which combo best meets your unique financial demands. Once you’ve found this combination, you may look at the various offers and pick the bank that gives you the best loan. What Factors Influence Personal Loan EMI? Lenders evaluate a range of factors when deciding whether to grant a 2 lakh personal loan to a client. Some of the critical elements are as follows: History of Credit Your credit score is among the first things a bank will look at. You should have no trouble getting a 2 lakh personal loan if you have a good credit score. The lender will also look at your repayment history. Any existing debt might cause your credit score to fall. This has a big impact on the loan request. As a result, to get a loan easily, you must keep a strong credit history. Sum of the Loan Banks take into account the loan sum you want to take. If you ask for a lesser loan sum, the bank may grant your loan fast. However, if you seek a larger loan, the lender may want you to commit assets. Income Surplus While your salary is vital, the money left over after paying EMIs is also vital. After EMI payments, you may acquire loan approval swiftly if you have big excess cash. Yet, the chance of default is higher if your excess income is modest. This may have an impact on your debt request and may result in loan refusal. As a result, you should analyse your monthly excess before asking for a loan. Goal of the Loan The loan aim is why you wish to get a 2 lakh personal loan. The bank needs to know why you wish to get a personal loan. They also need to know the aim of your loan to evaluate risk and decide on lending terms. If you need debt for a low-risk reason, securing one may be simple. Yet, if you request debt for a high-risk reason, the lender will analyse you more closely. [B-02] Wrapping Up So, stop worrying about “how is EMI computed for a personal loan?” Taking up a 2 lakh personal loan to cover all of your costs, whether for shopping, vacation, or school, is now much easier. You no longer have to be concerned about your budget thanks to quick pay-out and no prepayment costs. To stay on the safe side, use an EMI calculator to have a smooth loan duration! When you utilise a personal loan EMI calculator online, you may obtain an idea of how much you have to repay each month throughout your term. This is quite useful since debtors may see how the loan will affect their budget and lifestyle. For more related information, visit Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

What is the Eligibility for a Personal Loan, and how is it Calculated?

People use personal loans to fulfil short-term financial needs. They include sudden medical expenses, weddings, vacations, furniture purchases, or car repairs. In some cases, people use it for daily expenses. Generally, a personal loan should be repaid within 2-3 years. It has a higher interest rate than other loans such as education, home loans, etc. The eligibility criteria for personal loans differ from other types of loans and depend on the lender’s discretion. Read on to learn about the eligibility criteria for a personal loan and how it is calculated. [B-01] How Much Personal Loan Can I Borrow in India? Getting a personal loan in India is a good idea if you know the process and eligibility. These key factors will help you arrive at an estimate of how much you can borrow. A Personal Loan amount approval typically ranges from 15-20% of your annual income. It includes your monthly income, expenses, debt obligations, and savings. The limit can be doubled in salaried individuals who have no other obligations (especially with a large retirement account). Bankers evaluate your creditworthiness to see how much they can lend. What is the Eligibility for Personal Loan in India? For personal loans in India, one needs to submit many documents to be submitted and adhere to strict guidelines. Some factors to qualify for a personal loan are: Credit Score: A good credit score affects your application for a personal loan in India. A credit score in the range of 700-740 is seen as a good one. Check Personal Loan Eligibility Criteria of Top Banks/NBFCs online for more details. Monthly Income: Most lenders require professionals to earn at least 60% of their annual salary through their salary. Lenders prefer those with a salary of at least Rs 15,000 perWhat is the Eligibility for Personal Loan in India? month. Most lenders need self-employed individuals to earn more than Rs. 2 lakh as gross annual income. Some lenders do not publicly declare their minimum salary or monthly income criteria for offering personal loans. Age Requirements for Personal Loans in India: To qualify for a personal loan, you must be at least 18 years of age and have an active bank account in India. Most lenders require people to be at least 21 years old to qualify for unsecured credit cards. So, you are unlikely to get financing loan benefits before 21. You need identity proofs, such as Aadhar, PAN, etc. Please include a photo of yourself. No Pending EMIS to Get a Personal Loan: To check if you qualify for a personal loan and how much it can cost you, you must know your eligibility and how much interest might be charged. Personal loans don’t consider existing debts. So, any pending EMI or medical payments and credit card bills are not seen as part of the net monthly income. So, you may find that lending institutions do not want to accept your application if you already have numerous outstanding loans being repaid over time. Employment Status: A key criterion to get a loan is your employment status. It includes factors such as: The reputation of the company you work in: Banks tend to prefer borrowers who work in major corporations or government organizations. Total work experience in the company: A loan is more likely to be approved if the organization has employed you for at least one year. A minimum of 2 years in your company is also a benefit for company owners. Personal Loan Offers depend on the Relationship with the Lender If your relationship with your lender does not reflect well upon you, it could change the terms of your loan offer. For instance, lenders might grant a higher interest rate or provide a shorter loan period if they don’t know you well. In contrast, you may get competitive rates from lenders who know and work with you. So, find out how every lender assesses interest rates, and choose well. Consider your credit score, current debt, and income before you sign a contract. How is Personal Loan Eligibility Calculated in India? If you apply for a personal loan, you should use the Lender’s PL calculator. Lenders may use a couple of methods to determine if borrowers meet all the criteria given. Debt-to-Income Ratio: The debt-to-income ratio should not exceed 50%. It is calculated by multiplying your monthly EMI payments by your monthly earnings. Monthly Income Method: It is common for lenders to check a borrower’s eligibility based on the net monthly income of the borrower. An income of 25,000 per month would qualify you for a loan of about seven lakhs. Multiplier Method: A simple formula is used in this method. Loan Eligibility = (Your Salary) x (a number from 9 to 18) Banks provide an x% interest rate based on your credit profile, where x ranges from 9 to 18. FOIR (Fixed Obligation to Income Ratio): Using this method, banks figure out how much you earn in a month. They see how much you make in fixed payments per month or even per day and then subtract this figure from your total monthly income. The formula for calculating FOIR is: FOIR = (Sum of Existing Obligations/Net Take Home Monthly Salary) * 100 Refer to PersonalLoan (piramalfinance.com) for an in-depth offer for personal loans. What Are the Interest Rates on Personal Loans in India? Interest rates on personal loans in India usually have a fixed interest rate. So, you won’t have to pay an elevated interest rate if you only borrow money for a year. The interest rates on these loans can be anywhere from 12% to 24%, with shorter-term loans with low-interest rates. At the moment, the current Central Bank Lending Rate is 10%. Many factors affect the cost of borrowing money, such as: The size of the principal amount you borrow; Whether you repay your Loan over one or three years; And whether you repay it in whole or make partial payments during that period. There may be an add-on cost or a processing fee if you borrow more than ₹25 lakhs. [B-02] Conclusion The eligibility for a personal loan depends on factors such as income, employment status, credit history, debt-to-income ratio, etc. The lending company evaluates these factors to check if you are eligible for a certain amount. For more clarity about personal loan eligibility and the different criteria for calculation, visit https://www.piramalfinance.com/personal-loan.

08-11-2023

Other

All Things Pension

One of the most commonly heard worlds in the organized working sector is pension. But as much as it is heard, the less it is understood in all its depth. Read on to learn various things about pensions and get a much-needed introduction to the pension calculator all of you have been looking for. [B-01] What is the Employee Pension Scheme? Employee Pension Scheme (EPS), provided by the Employee Provident Fund Organization (EPFO) was introduced in the 1990s to help the employees of the organized sector by making it more socially secure. The scheme comes with multiple benefits which can be availed by adhering to some prerequisites. As for pension, it is a fund into which an amount of money is accumulated during an employee’s year of service and is given to the employees when they retire to help them through their retirement period with the help of recurring payments. Who is eligible? To avail benefits of the Employee Pension Scheme, you will have to meet some criteria: You must be a member of the Employee Provident Fund Organization You are at least 58 years of age You have completed at least 10 years of active service along with 10 years of contribution to the Employee Pension Scheme How does the EPS work? The employees and employers contribute 12% of the employee’s basic salary and the Dearness Allowance (DA). The employer’s contribution can be divided into two parts: EPS contribution: 8.33% EPF contribution: 3.67% Reduced pension Over and above the eligibility criteria there are also some ways in which you can get your pension in a roundabout manner: You can withdraw your pension from the fund starting at age the of 50 but it will be at a lower rate than general You can defer your pension for about 2 years, i.e. start your pension withdrawal from 60 and get an additional 4% hike on your pension How to calculate pension in EPF? Your pension is directly related to your years of service and pensionable salary. You may now wonder what exactly is a pensionable salary. Pensionable salary is the average of the monthly income you received in the last 12 months of your service before retirement. There is a straightforward formula to calculate pension: Pension= Average salary * Pensionable Service / 70 Note: Here the pensionable years of service start from November 15, 1995. For anyone who started working before this has to adhere to a different formula. What is a pension calculator A basic pension calculator gives an estimated value of what your pension would be by filling out the following details: Date of birth Retirement age Type of retirement (Superannuation or Voluntary) Total qualifying years of service Sum of last 10 months’ payment (Basic pay + Practising allowance) Last month’s payment (Basic pay + Practising allowance) A shuffle or combination of these details can help you calculate your pension. Common mistakes made during pension calculation Not everything is flawless, especially with procedures that involve multiple variables and calculations. Some of the common mistakes that can be made while calculating pension are: Not including the entire compensation: It is very important to jot down all your sources of earning money as well as all the overtime hours you put in because all that money is to be counted while calculating pension. Putting in the incorrect interest rate: The amount that you receive as your pension depends on the performance of today. It won’t always be easy to determine the correct rate at which the fund will grow and could lead to using an incorrect value while understanding what your pension could be. Your employer hasn’t contributed: There might come a situation where your employer doesn’t contribute to your fund. This could be because of multiple reasons, one of them being the company suffering from a cash crunch. Types of pension This elaborate pension scheme doesn’t just provide for the employees in the organized sector but it tends to various other aspects of an employee’s life. Let’s see what other types of pensions are there: Widow pension plan – Under this plan, the widow or widower will receive the pension amount until he/she dies or he/she remarries. In case a person has more than one widow/widower the amount will be given to the eldest one. Orphan pension plan – Children are eligible for this pension plan only when both, the member of EPS and their spouse die. This pension goes as high as 75% of the widow pension plan and only two children are eligible for the same. Child pension plan – Under this plan, the children of the member of the EPS are eligible for up to 25% of the pension of the widow pension plan but only until he/she turns 25. This plan too is extended to only 2 children, oldest to youngest. Check your pension amount There is a very simple procedure to check your pension status. The steps are as follows: Open www.epfindia.gov.in and log in You will find Online Service there, click on Pensioner Portal You will then be taken to the ‘Welcome to Pensioner’s Portal’ Locate ‘Know Your pension Status’ there on the right-hand side Fill in the necessary details and click on ‘Get Status’ [B-02] Conclusion Making sure your future is safe and secure should be your top priority, especially if you have a family to look after. The government has very elaborate schemes to help you make your life easier and your future is taken care of. With multiple tools out there, it could get a little confusing as to what to rely on. But one place where you can get all finance-related information in the most detailed yet simplified manner is Piramal Finance.

08-11-2023

Personal Loan

Best Tips to Repay the Personal Loan Faster

The desire to be debt-free and stress-free might be a challenge for many. Being debt-free is a financial goal for most individuals who have debts to repay. And to do so, those drowning in debt must turn to different personal loan repayment methods, such as cutting down on essential lifestyle costs. Is this the only method to handle debt? No, not always. There are many ways to handle debt, so one does not have to make many financial compromises. Here are some easy strategies to pay off debts faster. [B-01] Papers Needed to Apply for a Personal Loan Pre-closure In the event of a personal loan pre-closure, a lender and a borrower must exchange a few papers. People should make sure they have all this paperwork as evidence that they have returned the debt. Papers required by the lender: KYC documentation All loan documents Bank records showing all EMI payouts made to date Statement of Prepayment Papers to be obtained from the lender: Pre-closing payments received An NOC (No Objection Certificate) is needed to end the instant personal loan Certificate of personal loan closure Certificate of payment due Tips To Repay Personal Loans Faster There are multiple methods to handle debt, so people don’t have to make too many fiscal choices. Here are some easy ways to apply for personal loan repayment quickly. Consolidation of Debts Paying many debts at once might be hard to manage. Combine all of the debts into a single payment to avoid falling behind. For example, Shankar has a personal loan, a vehicle loan and past-due payments. Combining them into a single loan and paying the loan sum each month at a single set rate would help him. A personal loan to consolidate debts will result in cheaper costs. Consider the Amount Owed Begin by reviewing all debts, including credit card balances and house loans. Note each item, including the amount owing, the rate, and the needed minimum payment. Knowing how much a person owes can help them pick the best debt-reduction approach for the case. Examine the Income The other method for paying off a loan quicker is checking the income. Make a budget for monthly income and spending, and decide how they will contribute to debt repayment. Don’t depend exclusively on credit cards in the budget. Many online personal finance tools and calculators are available to assist in creating a monthly budget. People may also discover many ways to boost debt payments and cut down on unneeded spending. Payment via Savings First, focus on the finances by reviewing the credit card balances, outstanding payments, and obligations. People may schedule their debt needs by factoring in their monthly savings and expenses. Reduce any needless spending and keep the funds above a certain level. People may use many apps to keep track of their monthly costs. A few of these apps could even assist them in better managing their money so they do not keep slipping into debt. Round Up the Amount for Loan Payment One more method for repaying an instant personal loan quicker is to add up the total payment if you have room in your budget. Rounding up the loan payment is the most simple and effective way to pay off debt faster. After a few months, the extra payment will become normal, and the extra funds will be progressively deducted from the principal amount. Assume Shankar has a monthly payment of Rs. 22500.27 and rounds it up to a fair Rs. 25,000. That extra payment he makes each month is subtracted from the principal and might save him a lot of money in the long run. Use the Variable Salary to Pay Off a Portion of the Debt If people get variable compensation in the form of rewards and bonuses, they may also use that money to pay down a portion of the personal loan. Such payments are generally proportional in quantity and may help them slowly lower the loan burden. Examine & Pay Off Debts Before making any fund choice, people must assess what they currently have and how they will make it work. The same is valid for debt repayment. Make a list of all the obligations and decide which are lengthy and which are short-term ones. An instant personal loan, for example, might be seen as a short-term commitment, but a house loan can be viewed as a long-term commitment. As a result, it makes sense to pay off the debt first. One more way to look at it is to first pay off loans with higher rates. Reduced Debt Tenure The ideal time to reduce the debt is soon after a rise in income. If it’s a bonus, use the money wisely to return a lump sum, if feasible, to reduce the overall term. A shorter stay, even if by only a few months, might provide welcome relief. Select the tenure smartly. Avoid selecting a lengthy tenure that will cost more money or a short tenure that will put people under a lot of pressure. Loan Transfer to a Bank with a Lower Rate A loan transfer is a good option to keep in mind. If one locates a lender with a cheaper rate than the present lender, they can move their credit to that bank. This may allow them to reduce the total amount owed faster. It is vital to study and do proper research before selecting a lender to ensure that this choice is sensible. Choose and act properly to relieve oneself of the outstanding balance and high rates. [B-02] Conclusion People may use the ways above to pay off their personal loans quicker than they now know how. Paying off an instant personal loan within the specified time frame improves the credit score and boosts loan eligibility the next time they need one. Check the pre-payment terms, and hurry to pay off the loan. This ensures that users will be free of debt as soon as possible. Visit Piramal Finance to learn more about how to apply for a personal loan and explore the different products and services.

08-11-2023

Personal Loan

How to Finance Home Renovation Using a Personal Loan

Home renovation loans are available to people who want to fix or improve their homes. This includes putting down new floors, painting, tiling, upgrading, remodeling, repairing, improving, adding on, etc. As a type of personal or home loan, many banks, NBFCs, and HFCs (Housing Finance Companies) offer home renovation loans. One can also get a personal loan to fix up, improve, or add on to their home. Personal loans have no restrictions on how they can be used. People with a home loan can also apply for top-up home loans. These are different loans that can be used to make home improvements. Note that personal loans for home improvement are unsecured. In contrast, home and top-up loans are given in exchange for a mortgage on the property that is to be improved. [B-01] Why Apply for a Home Renovation Loan? A personal loan is an unsecured loan that does not need any assets or collateral for approval. It’s easy to get money for different things, and the borrower can pay it back based on the terms and conditions. Since the borrower doesn’t have anything to put up as collateral, the lender will look at the credit score, credit history, and income to decide before approving the loan. On the other hand, personal loans have a higher interest rate than secured ones because they are not based on a fixed rate but on the borrower’s ability to repay the loan. The average annual percentage rate starts at 12% per year and can go as high as 28% per year. It is best for someone to renovate the house. Here are some of the reasons mentioned below why someone has to go for a personal loan to renovate a home. No Restrictions When applying for a personal loan, knowing if the money can be used for something other than what was planned is essential. For example, if someone gets a car loan, the money can only be used to buy the car, not for a trip. On the other hand, a borrower can use a personal loan for anything they want. The money from a personal loan can be spent on anything the borrower wants, as long as it doesn’t break the law. Someone could use that money to pay for their child’s college, wedding expenses, a significant home improvement project, a luxury item, more investments with the hope of making money, and so on. Easy Process Personal loans are short-term loans that can help someone get the cash they need quickly and easily. The process for the approval of a loan could take anywhere from 10 minutes to 7 days, depending on the lender and the borrower’s credit history. Other loans require an evaluation of a financial instrument and a long process. Both of these take time and can slow down the process of getting a loan. Select Flexible Repayment Terms If someone works as a salaried employee and wants a personal loan, they should be able to get one with low interest rates. Personal loans let the borrower pay EMIs that are easy to handle, and they can choose a long tenor to spread out their payments over a more extended period. This helps them pay without any burden. Lenders usually give borrowers 60 months to repay the loan, so borrowers have plenty of time to make regular payments. When making a budget, use an EMI calculator to determine how much money they need to send monthly for a personal loan. Get Tax Benefits Section 24 of the Income Tax Act lets people deduct up to Rs. 1.5 lakh in interest paid on top-up loans for home improvements. This includes the tax break and interest paid on the mortgage. Flexi Facility This unique option, which some lenders offer, makes it even easier to pay back loans. People can borrow as much as they need for home improvements and only pay interest on the amount they use. This lets the borrower pay for things as they come up. Also, they can prepay without being charged extra if they have extra money. Borrowers can also choose to pay only the interest as the EMI for the first year of paying off the loan. This helps track the money better and lowers the monthly payments. How to Apply for a House Renovation Loan The application process for personal loans is easy. One can borrow up to Rs. 25,000,000. However, a personal loan can be used for anything from replacing old tiles to fixing the ceiling. Borrowers can do whatever they want with the approved loan amount, like paying it off early. Before applying for a personal loan, one should figure out how much money one needs. This way, they will be able to borrow the amount they need. First, fill out the required information. This includes the borrower’s work history, salary, company name, address proof, and bank statement. The second step is to choose a lending partner by choosing a bank with lower interest rates, processing fees, and other facilities. Next, enter the loan amount and length of the EMI. Lastly, once the loan is approved, the bank will deposit the money into the borrower’s account. [B-02] Conclusion A home renovation loan is more challenging for banks or NBFCs. Home loans require a lot of paperwork and collateral for approval. Hence, a personal loan for home renovation is the best option. People should research personal loans properly before applying. Saving money for home renovations requires a lot of time. If someone wants to renovate their home quickly, they can go for a personal loan. It is easy to get, and people can opt for easy monthly installments. Piramal Finance is one of India’s largest financial institutions. It funds people in all sectors, like wholesale and retail. If someone gets a personal loan from Piramal, it will help them with immediate money needs. Someone can use a Piramal personal loan to pay off school fees or buy a gift for someone’s wedding, and the borrower won’t have to worry about prepayment or foreclosure fees.

08-11-2023