More articles for you

Your one stop place for everything related to finance and lending

Other

Pros and Cons of PPF in India

Looking for an ideal way to accumulate long-term savings? Want a steady return, regular and highly safe long-term investment option? Interest Calculator India PPF will assist you in calculating investment returns. It is very flexible, with a lock-in of 15 years. They have tax benefits. It has a higher rate of interest. What is PPF? The Public Provident Fund (PPF) account is one of the most popular ways to save and invest for the long term because it is stable, makes money, and helps you save money on taxes. In 1968, under the Ministry of Finance, the National Savings Institute began offering the PPF to people. Since then, it has become an instrument for generating income for investors. PPF is used by savers to get income. An individual saver will likely favor PPF due to its best interest rates and tax treatment. It’s no surprise that the PPF is so well-liked among investors: it’s among the most secure investment options available. The Indian government protects your money in the fund. PPF beats out many other investment options due to the government-set interest rate, which is updated quarterly. PPF returns are not taxable, and neither are your initial contributions if you make them under Section 80C of the Income Tax Act (ITA). One should learn the ins and outs of the Public Provident Fund (PPF) before putting money into it. Pros of PPF The most secure route for investing The fact that the government is behind a public provident fund is its biggest perk. That’s good news because it implies your principal is safe and won’t be at risk of depreciation. Your initial outlay could be less secure in alternative asset classes like stocks. Long-term investments have a lower risk of loss, but many investors still seek a risk-free, government-backed alternative. Guaranteed PPF return PPF Rates of interest are adjusted quarterly, and the current rate is readily available to everyone. Knowing that your money is secure and earning a guaranteed interest rate can be very reassuring and allow you to get a good night’s rest. Not only that but the returns are compounded annually. Tax benefits When it comes to taxation, the Personal Pension Fund (PPF) is an EEE investment (exempt, exempt, exempt). Investments of up to Rs. 1.5 lakh per year are eligible for tax breaks under Section 80C of the Income Tax Act. Neither the principal nor the interest will be taxed when the bond is redeemed. Investment choices in the PPF Set up a recurring transfer from your savings to your public provident fund account. Doing so will make it easy for you to invest regularly without having to make any major moves as the fiscal year winds down. In addition, you can invest as little or as much as you like by using the lump sum option. Government protection This investment option is the safest possible because the government backs it. Flexible Provides some leeway. An initial investment of 500 Indian rupees (Rs.) is possible. You can pay the investment all at once or in installments. Minor benefits Under the supervision of an adult, a juvenile can open one in his or her name. Under certain circumstances, you may withdraw a portion of your PPF savings. Extend maturity benefit Improve the longevity bonus. When the initial fifteen years are up, account holders can add an additional five years. It is fine with us as long as they are happy doing so. Cons of PPF The level of the accumulated corpus may not be very high While the PPF has a guaranteed interest rate, the accumulated corpus may be lower than it would be with an equity investment or savings plan such as the Equity Linked Savings Plan. Equity mutual funds have historically outperformed other asset classes. Equity mutual funds are a good bet if you are comfortable with uncertainty and would like a larger nest egg. High lock-in period The 15-year commitment period for a provident fund is significantly longer than that of other investment vehicles. Therefore, it is not as liquid as mutual funds or other investment options that do not have a lock-in period. In addition, the lock-in period for an equity-linked savings scheme (ELSS), a tax-saving mutual fund, is the shortest at only three years. Upper limit A maximum of Rs. 1.5 lakh can be contributed to a PPF account annually. Beyond that threshold, your investment will not produce a return. Alternative investment strategies are not capped. Minimal tax benefit Annual minimum deposits are subject to a cap. The annual rate is $30,000 (or 1.5). .A deposit of more than Rs. 1.5 lakhs will be taxed. Poor rate of return Its rate of return is lower than that of other options like the National Pension System (NPS), mutual funds, etc. The interest rate on the offer will not change for a specified duration. Inflation is a significant threat since it can quickly eat away at its value. [B-02] Summing-up: The goal of this article is to look at the Interest Calculator PPF in detail. Whether an investment is the best choice for you or not should be determined carefully by yourself. Before investing, it is also important to be aware of the pros and cons of PPF in India. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance.

08-11-2023

Personal Loan

Common Myths About Personal Loans

A personal loan is a type of credit used to pay for anything. A personal loan lets people get a lump sum of cash to pay for unexpected costs. People can apply for a personal loan online in less than 10 minutes. Personal loans are available from a wide range of online lenders. We must send the necessary paperwork online to get a personal loan. You can usually get a loan that fits your needs and situation. [B-01] The Meaning of Personal Loans A personal loan is a type of loan that can be used for anything. It is not limited to paying off debt. Personal loans are a type of revolving credit that can give you a lot of money. Most personal loans have a date by which the money must be paid back. In short, a personal loan will be approved if someone pays their bills on time. Types of Personal Loans Secured Secured personal loans require the person taking out the loan to purchase some collateral. A car or boat can be used as collateral for a personal loan. A savings account or certificate of deposit can also be used. If a person doesn’t pay back their loan, the lender can legally take the security deposit they put up as collateral when they took out the loan. Unsecured When someone gets an unsecured loan, they don’t have to put anything up as collateral. Banks offer personal loans with and without collateral. Unsecured loans have slightly higher interest rates than secured loans. However, it all depends on the bank. Personal Loans and its Myths When one borrows money for the first time, one might feel nervous. This is because they must pay high-interest rates or put up valuable things as security. Here are some common myths people tend to believe about personal loans. Loan application and approval are time-consuming. People often don’t apply for personal loans because they think it will take a long time to be approved. This used to be true most of the time. However, things have changed. Getting a loan from start to finish in 24 hours or less is possible. To apply, all one needs is a mobile device and a few minutes to fill out an online form and upload supporting documents. Not for those with a low credit score Before approving a personal loan, lenders also look at things like age, income, the authenticity of documents, the ratio of fixed expenses to income, etc. Credit standards and requirements vary from bank to bank. Banks will assess a person’s credit score and ability to repay the loan on time. One can only get one loan at a time. People who want to borrow money often think they can’t get another loan while paying off an old one. However, it is not true in the case of getting another personal loan, provided one fulfills the eligibility criteria of the lending financial institution. If someone wants to apply for a personal loan, it doesn’t matter if they already have a loan to repay. The lender will look at their income, cash flow, and other debts when deciding if they can pay back the loan. You need collateral for an unsecured personal loan. Unlike other types of loans, unsecured personal loans don’t have to be backed by an asset. People often need clarification about the difference between loans with and without collateral. Personal property is used as security in a secured loan, like a mortgage or a car loan. If you don’t repay a car loan, the lender can take the vehicle back as security for the debt. If you don’t pay your mortgage on time, the bank might take your home and sell it to get the money back. On the other hand, unsecured personal loans don’t require you to put anything up as collateral. Remember that the interest rate on an unsecured loan is often higher because the lender has nothing to lose if you don’t pay it back. Personal loans have high interest rates. People think personal loans usually have very high interest rates because the borrower doesn’t have to put anything up as collateral. However, the interest rate may vary from bank to bank. Nowadays, the interest charged by the bank for personal loans is minimal. It is easy for someone to apply for a personal loan online instead of using credit cards. There’s no prepayment option. People often think that if they get personal loan, they will be able to pay back the money after the loan term is over. Personal loans usually have shorter terms than business or government loans, but they can still be paid off early. Traditional banks may charge a small fee for paying off a loan early. Still, most online lenders today require borrowers to make EMI payments for at least the minimum loan term. The loan can be paid off early without a fee (often within three to six months) when the minimum time has passed. [B-02] Conclusion There are many ways in which personal loans can be helpful. Personal loans can be a great choice if they are used well. They are a great alternative to credit cards because they can be used for almost any expense. Further, the borrower doesn’t have to put up any collateral, and the interest rate is much lower. A borrower can have a fixed monthly payment with a personal loan. Piramal Finance is one of India’s largest financial institutions. One can easily apply for a loan at Piramal Finance and, once approved, use the received amount to meet his requirements. Piramal Finance’s flexible ways to pay back the loan and quick customer service make it easier to get a personal loan without much thought.

08-11-2023

Personal Loan

How can you Do your financial planning with an online personal loan EMI calculator?

Want to know how to plan your finances but don’t know how to do it? Have a personal loan but are unable to keep records and manage estimates? Want to know how to use an online personal loan EMI calculator? If your answer is yes, then you are on the right track. In this article, we will discuss personal loans, interest on personal loans, the benefits of applying for a personal loan, a personal loan calculator, and how to use a personal loan EMI calculator for finance planning. [B-01] What is a personal loan and what are its best sources A personal loan is an unsecured mode of loan where banks charge a certain amount of interest on the money they give you as a form of a loan. Here, you borrow money from a bank for a specific period to meet your needs, and in return, you pay it off in small instalments. Interest on a personal loan is low in most cases, so it is convenient for you to repay. These types of loans do not require collateral or security funds and the processing time is also less. They are mostly taken for covering personal expenses like financing a big marriage, family trips, higher education, etc. There are two sources that you should prefer to opt for a personal loan. Banks Banks are the most popular and preferable sources. Banks charge very low interest on personal loans, which is why they are preferable. Banks also give you a reasonable amount of time to repay, which is about 12 months to 60 months. Private financiers You can also apply to corporate financiers and companies for personal loans. However, they might charge a slightly higher rate of interest than what banks charge you. In addition, some private financiers might not provide you with a good amount of time to repay your loan. Some of them also have a “hidden interest” to levy a higher interest on personal loans. Make sure you check their ratings before going to them for a loan. Benefits of applying for a personal loan The benefits of applying for a personal loan are as follows: Low rate of interest Banks often charge you a low rate of interest on your loan, so that you can easily get rid of your debt. Quick approval If you apply for a personal loan today, you will likely get the approval within the next 2 days. In case you have a good credit score, you are more likely to get it approved even within a day. No need for collateral Unlike other forms of loans where there is a requirement for collateral, you don’t need one in a personal loan. Banks neither ask for collateral nor a security deposit at the time of filling out your application. Payable Since the interest on personal loans is lower, and you get a decent amount of time to repay your loan, it becomes very convenient for you to deposit your EMIs. High flexibility There is high flexibility both on the interest rate of the loan and the repayment period. You have the tailoring option, which helps in adapting everything according to your convenience. What is a personal loan EMI calculator So, you might have successfully opted for a personal loan, but you still have the burden of managing your finances. For that purpose, a tool is used, which is the online personal loan EMI calculator. This helps you find your EMIs, interest rates, principal loan amount, etc. A personal loan calculator is an online, user-friendly tool that helps you calculate your monthly EMIs. It only needs the principal amount that you have borrowed from the bank, the interest on the personal loan and the period. How to use an online personal loan EMI calculator You need to follow the below-mentioned steps to use a personal loan EMI calculator: Enter the principal amount of the loan in the bar. Now, enter the interest on the personal loan that banks have charged you. Enter the tenure of repayment, within which you have to repay the loan. Now simply click on the “Calculate” option, and will you have your EMI amount right in front of you in no time. Use an online personal loan EMI calculator to plan your finances The most appealing advantage of the online personal loan EMI calculator is that it helps you manage your finances. It gives estimates about your interest and maintains track of your instalments. Try to use the calculator to calculate your interest and instalments before applying for a personal loan. Put different loan amounts, interest rates and periods to get different values and compare. Comparing different values will help you decide what is best for you. It would be better if you keep a record of your interest on a personal loan. This will help you curb your expenses and adopt wise monetary choices. [B-02] Conclusion In India, the starting interest rate on a personal loan is 8.5% and goes up to 35%. So, to get a better deal, you should focus on improving a good credit score and maintaining good track history. Use an online personal loan EMI calculator to note down estimates and make decisions accordingly. Well, do you like reading similar types of content? Then, you must visit Piramal Finance to read engaging content on topics like personal loans, finance, investments, SIPs, etc.

08-11-2023

Personal Loan

Top Reasons Why Personal Loan Demand is Increasing

Most personal loans are short-term loans that don’t last longer than 60 months. You can choose how long the loan will last. Most lenders also have specific terms that make it easier to pay them off early. If anyone is short on cash and going through tough times, they can instantly get a personal loan. The best thing about it is that you can use it for anything, unlike loans for cars or houses. These are the major reasons why, post-pandemic, most people are opting for personal loans. Interest rates on loans can be as high as 35%. It is determined by the credit’s risk and other similar factors. Let us have a look at the top reasons why personal loans are in high demand. [B-01] What is a Personal Loan? Personal loans are given to self-employed or salary-based people. These loans don’t need any security. A personal loan has a yearly interest rate between 11% and 28%. The money lender and credit score are important factors to consider when you apply for personal loan. These loans have different lending terms ranging from 1 year to 5 years. The use of a personal loan is not restricted or predetermined. You can use it as per your legitimate needs. Reasons for the Increase in Demand for Personal Loans Usage as per requirement Banks 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 has no end-use limits. You can use the disbursed amount for any authentic purpose. This loan can be used for : Medical expenses: to pay medical bills College tuition fees: higher studies abroad or within the nation Marriage expenses: pre- and post-wedding expenses Repay multiple loans by merging all the debts and paying them For a vacation or to buy a gadget Low Loan Interest Rate Following the COVID-19 pandemic, the global economy has been badly affected. There’s no cash flow, and economic activity has dropped to zero. The good news here is that personal loan interest rates are lower than before. Bankers are pushing to bring down the personal loan rate to attract applicants. It might be the best time to apply for personal loan to meet the immediate cash need. Simple Application Process It is very easy to apply for a personal loan. Due to the impact of the coronavirus, many users have started applying online. This trend has continued. It has lowered the use of paper and increased social distance. Banks are also supportive of applying for a personal loan online. To apply, users must visit the lender’s website, fill out the loan form, and upload the required documents. Easily Available When you apply for a loan, you first check the disbursal time. The faster the disbursal, the higher the demand for that loan. The same is the case with personal loans. They are highly favored in times of emergency. Personal loans have a turnaround time of 24 hours. It is one of the main reasons for the increased demand for personal loans. Hassle-free Payable EMIs When applying for a personal loan, it is vital to know the payment 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. For instant personal loans, the main focus is laying out easily payable EMIs. The main reason for easy EMIs is the low interest rate. The lower the rate of interest, the lower the payable amount. It is considered very important, so personal loans are mostly in demand. How Does a Personal Loan Help Pay Multi-Debt? Multi-debt payment means that you have multiple debts to be paid. For this payment, the user applies for an instant personal loan and uses that amount to pay all their dues. They bring together all the debts and pay them back in equal monthly payments. This reduces the amount of EMIs and thus the burden. In today’s scenario, one out of every hundred people is trapped in bad debt. In such urgent times, personal loans are helpful. What is the Purpose of Applying for Personal Loans? In recent years, Indians have opted for unsecured loans more than secured ones. Due to no collateral being required, borrowers opt for personal loans to cover many of their expenses. They also increase their discretionary expenditure on new cars, electronics, home decor, etc. Despite the rise in interest rates, recent data shows fewer bad debts. Personal loan borrowers felt the pressure of high interest rates and opted for short-term loans from non-banking firms. Because of the low interest rates and quick processing, those in need of immediate funds are turning to quick cash loans. The banks’ use of various forms of financing has also contributed to this. The major factors for the rise in demand for personal loans are the rise in online borrowing, KYC updates, and technology updates in digital lending. As per the data for the quarter starting in July 2022, there has been an upward shift in demand for personal loans. A growth of 18.8%, equal to Rs. 30 lakhs, has been noted by the end of July 2021. [B-02] Final Word The reasons above can attract any person to apply for a personal loan when needed. Personal loans are making it easier to fulfill many urgent needs. Recent data shows that there has been a rise in users opting for personal loans. Moreover, any person who meets the basic eligibility criteria can go ahead and apply for such a loan. No other loan has such a hassle-free, easy, and quick process. Moreover, there is no limit on the usage of the loan amount, which makes it preferable for users. Due to all these reasons, a personal loan has become one of the most popular loans, and its demand is growing daily. For similar blogs on instant personal loans and other topics, visit Piramal Finance. You may also take a look at the products and services they offer.

08-11-2023

Personal Loan

Is It Safe to Apply for a Personal Loan Online?

The needs and wants of people are increasing every day. To finance costly needs or even desires, one can take a loan. These days, applying for a loan has become quite simple. One can do the process of application both online and offline. The concept of online loans is straightforward. A potential borrower can apply for the loan without having to go directly to the bank or financial agency. One needs to fulfil the criteria and prepare the documents required for a personal loan. This process allows the application to get prequalified by many lenders. The borrower also does not have to face credit enquiry, adversely affecting their credit score. They can also avail of a few relaxations if they choose to apply for the loan online. [B-01] Pros and Cons of Online Loans Pros One can easily compare loans. Unlike the conventional method of comparing loans, the online method is relatively easy. The terms of loans offered by various lenders can be compared fast. It allows one to have the most relevant loan term at a reasonable rate. Loans are sorted depending on the desired amount and financial suitability of the borrower. When applying for a personal loan online, one can use an EMI calculator to see how much their monthly EMI would be. The application process is hassle-free. The entire process of paperwork is eliminated in the online loan application. One needs to fill out the form digitally. Documents required for a personal loan or any other loan can be uploaded online. This facility allows a person to do the entire process at their convenient time and place. It is both time-saving and environmentally friendly as it does not use paper. Managing and finding data digitally is relatively simple rather to manually. Hence, the online procedure helps the lenders too. Coming to a decision can be easy. The wait time is longer if a person decides to go for the traditional method. Once a person applies for the loan, they must wait a few days before the bank or the lender gets back to them. Hence, they know their eligibility late and must keep waiting to get the loan approved. If a person applies for a personal loan online, the wait time is less. When the application for the loan is received, the eligibility check is done immediately. The applicant gets to see whether their file will be forwarded further. The process of approval is faster. The entire loan application process is digitalized. One must fill out the application and upload the documents required for a personal loan. The disbursement is also quicker. The process is so short that the applicant can receive their money the same day or the next business day after completing the application. Cons Some lenders might be a bit difficult to trust. Online lenders often require a physical presence for the borrower. Also, there are plenty of cases of people getting scammed while trying to get loans online. People wonder how genuine a lender is. Before applying for a personal loan, it is always advisable to do proper research. It is wise to have detailed information about a lender before making a deal. There might be hidden terms and conditions. When the application is filled out online, the documents required for a personal loan are also uploaded digitally. Sometimes, lenders impose hidden terms and conditions on unsuspecting borrowers. It is the duty of the person applying for a loan to read the fine print of the legal documents before signing them. Many people miss this part while applying for a loan online. Later, when they learn about hidden terms and charges, it becomes a problem for them. How to find a good and trustworthy lender? The RBI can tell if a lender is legit. Asking friends and family about trustworthy agencies is a good idea. If in doubt, one can always do a bit of research on the lender online. Which behaviour by the lender should be considered suspicious? A lender will never pressure a person to apply for a loan. There is a difference between healthy advertisements and pressurizing potential borrowers. A reliable lender will put up their information on their website. If one does not, it is best to avoid them. The lender asks one to apply for the loan and guarantees approval, although the credit score of the borrower is not too good. They will demand an upfront payment to be made by the person. The lender reaches out to a person via calls, texts, emails, or unusual methods. The lender continues to reach out to the person even after they have declined the offer. [B-02] Conclusion This article has discussed the points to consider when someone decides to get a loan online. Applying for a personal loan online is easy. If a person has completed the process of filling out the form and uploading the documents, they will not have to wait to get the loan amount. Their verification and approval of online loan applications are quick. Piramal Finance is a good option if you are looking for a trustworthy financial agency. You can also visit their blog page to read more such informational posts.

08-11-2023

Personal Loan

What Are the Important Rules to Follow When Taking a Personal Loan?

Personal loans can be taken for almost everything. If a person is willing to take a loan to finance their dreams, then this loan is their best option. People do indeed have dreams. However, these dreams come with a price tag. And to fulfil them, one at a time, you need to apply for loans. Availing of this loan has been made simple. There are banks and other financial institutions that offer the facility to avail of this loan. They have the facility both online and offline. It is really important to be able to find the best bank for a personal loan yourself. One must, however, adhere to a number of rules. One needs to keep reading this article to learn about such rules. [B-01] Knowing who is a credible lender: Currently, there are numerous lenders available on the market. There are banks, as well as many financial agencies. It is very easy for borrowers to get attracted to such agencies. It is so because they have many attractive offers. Choosing the best bank for a personal loan can be quite tricky. This is why one must conduct thorough research before committing to such loan offers. One must be aware of loan scams. Borrowing only that amount that is needed: A person can be granted a loan for a huge amount. There can be an urge to borrow the entire amount. However, one must control their urge to borrow more. A person should never forget that they must finally repay the entire amount plus the interest. Repaying is always the tough part. There is also a thumb rule. It is advised that one’s loan repayment amount should not be more than 40% of one’s monthly income. The rate of interest must be carefully checked: For a person, the interest rate is an important factor. It is a deciding factor on which they might select or reject an agency. There are many luring offers available at the rate of interest. The flat rate that is usually advertised can be quite misleading. Several hidden charges might be there that are not mentioned. This will surely increase the rate of interest. When the interest is calculated on the reduced balance, the actual is quite low. Such things can be avoided by using an EMI calculator. Keeping the tenure of the loan as short as possible: A long tenure can seem attractive. It means that the EMI is lower. However, they fail to do the long: term calculation. If a person carefully plans their finances, they will be aware that if they choose to return the money over a longer period of time, they will be spending more. This is the reason why it is advised to keep the tenure short. Having a clear plan about the payment details: There are various aspects of payments that need to be understood. If I need a personal loan, then I will be careful to check all the details thoroughly. There can be situations where a person might feel that they can repay the loan before the tenure. There are chances for that; however, if a person plans to do so, they need to pay a fee. It is known as foreclosure charges. It is recommended that you select a lender with a low fee for this. Some lenders also do not allow the option of repayment before a certain number of EMIs have been given. Find out about the various hidden charges: Personal loans come with a number of additional fees. After doing good research, it is important to find the best bank for a personal loan. Charges like processing fees, service fees, insurance charges, and many more are applied to one’s loan. The lender deducts all this amount from the loan amount and then transfers it to the customer’s account. Even the final EMI that is payable contains extra charges added to it. One can use the EMI calculator to better plan how these extra charges will be levied. If there is an EMI bounce, a certain penalty charge is to be paid. The penalty charges are also applied when a person cancels their loan request after it has been approved. One must try to be regular with their repayment: A credit score is determined by payment patterns. If the payment pattern is fine, one will have a good credit score. Credit history is also recorded with the help of repayment patterns. This enables a person to get a loan easily and get a better interest rate. This is why paying back the EMI before the due date is preferred. Usage of the loan amount: Certain personal loans specify the purpose for which the loan amount can be used. If I need a personal loan, I would thoroughly research beforehand. A rule document for loans will be provided that contains all such information. One must not start another personal loan without closing one: If a person decides to apply for a new loan without closing their existing one, it will leave a bad impression. The bureaus consider that person to be credit hungry. The credit score also gets negatively affected if a person has multiple debts. [B-02] Conclusion In this article, we have discussed the different rules for a personal loan. If a person plans to apply for this loan, they must keep the required rules in mind. A personal loan is a great option if someone needs to finance their big-budget dreams. If I need a personal loan, I would like to do a great deal of research before applying. If a person is looking for a good financial agency, then “Piramal Finance” is a good personal loan/financing option for buyers. They also have great blogs that one can read.

08-11-2023

Personal Loan

How To Identify the Best Personal Loan Offers for you?

Personal loans are loans that do not require collateral. They are easy to get, you can avail them from banks and they have a reasonable interest rate. This article will look at five simple ways to get a Personal Loan. Personal loan offers are the greatest option when you find yourself in a financial problem and need fast cash. If you have a strong credit history, you can get approved for a loan or credit card and start using it immediately. Personal Loans are easy to find and get from well-known lenders, even from the comfort of your home. Here’s how to find the best personal loan offers if you want to get one: Let’s see what the best Personal Loans ROI can do for you: [B-01] Rates of interest The personal loan ROI is the first thing you should consider when taking out a Personal Loan. The personal loan with the lowest rates of interest is best for you. Visiting a reputable bank is better than local money lenders because the rates they charge are likely to be high. There are also differences in interest rates charged between the banks. Thus, you should look around at several financial institutions and see what interest rates they offer. This is easy to do on the internet. One thing to keep in mind is that banks provide varying interest rates to various customers depending on things like the steadiness of their income. Interest rates are important because even small differences in percentages can add up to a lot of extra money over time. No collateral All personal loan offers are without collateral. For your loan, you don’t have to put up anything as security. If you need money but don’t want to risk losing possessions by pledging them, this could be the solution. On the other hand, secured loans are ones where you put up property as collateral and have the benefit of a low rate of interest. Also, you don’t have to worry about having bad credit. If that isn’t possible, Personal Loans are the best choice. Minimal documentation: The best personal loan offers might be the ones that are easiest to get. For example, if you need cash quickly, the last thing you want to do is fill out a lot of forms and submit a lot of paperwork. Well, you don’t have to do that anymore because of the internet. You can now fill out a loan application from the ease of your own home. A loan from your bank could be the best personal loan. They will already know everything about you and your finances, so they won’t have to do too much checking. And now that you can bank online, that money could be in your account in no time. Tenure How to decide on the best personal loan? The length of the loan is one of the most important things you need to think about. From your point of view, the best loan is one that fits your time needs, whether you need it for a few months or a few years. How much you pay in EMI (equal monthly instalments) will depend on how long the loan is for. With a longer term, your EMIs will be lower, but you will pay more in interest. Choose a bank that lets you change the terms of your loan. Amount lent The ideal personal loan is the one that fits your needs. Thus, You shouldn’t waste your time applying for a loan at a bank if they are not giving you the exact amount you need. Processing charges The total cost of your loan is equal to the sum of the interest rate and the processing fee. You should think about both things before making a decision. Before you apply for a personal loan, the first thing you should do is figure out how much you need to borrow. For personal loans, the maximum loan amount is the same as the amount given to the borrower, which is usually up to Rs 25 lakh. But the amount would be different depending on several things. But it’s enough to cover your big expenses, like medical emergencies, home repairs, a family trip, and other things. Easy requirements You must meet certain requirements to be eligible for a personal loan offer. To get a Personal Loan, you need to meet the following requirements: A person from India Salary person with a steady monthly income of more than Rs 30,000 Have a good credit score Open a savings account at any Indian bank. Choose terms that suit you Most personal loans have flexible terms. Choose a lender that lets you choose the length of the loan and the EMIs based on how much money you have. Look for personal loan offers that are of tenure that fully meet your requirements as both long and short-term loans have their own pros and cons. It’s totally on your plans and suitability. Don’t apply for loans from more than one place. Your credit score can be affected if you apply for loans from many different places. Most of the time, banks look at the borrower’s credit history. Your chances of getting a personal loan will go down if you get more than one loan application. Ensure that at least 30 days pass before starting a new application. [B-02] Conclusion When you look at personal loan offers, keep these things in mind. A personal loan is the best way to end your money problems. You also don’t have to put up anything as security for the loan. If you need money quickly, you can get one at Piramal Finance. Visit our website to learn more!

08-11-2023

Complete Guide On How Interest Is Calculated In RD

Investments have become common. Most people are now aware of different types of investment options. These include fixed deposits, SIPs, mutual funds, stocks, etc. One of these is known as recurring deposits. The calculation of interest rates on recurring deposits is quite different. There is a special RD interest calculator that makes it easy to calculate interest rates on recurring deposits. This article will act as a complete guide to how interest rates are calculated for Recurring deposits. [B-01] What is a Recurring Deposit (RD)? A recurring deposit is a unique solution offered by Indian banks. It is known as “RD” in short. A recurring deposit is like a fixed deposit in many ways. It allows users to regularly deposit money and get a satisfactory return on it. Why do people prefer Recurring Deposits? RDs offer flexibility and ease of investment. People can deposit money regularly, and the interest rate is easy to calculate. It is a simpler way of building up savings through monthly deposits. This allows people to achieve their financial goals over time. A recurring deposit ensures stable returns. Plus, the interest rates on the RD remain the same until the term is completed. Who prefers Recurring Deposits? People who wish to invest small amounts prefer RDs. Who can apply for Recurring Deposit accounts? Anyone, even minors, can open RD accounts if they have identity proof. Minors would require a guardian to go along with them. However, any individual, institution, or commercial enterprise can open a recurring deposit account. What are the documents required for opening a Recurring Deposit account? You will need an application form, passport-size photographs, identity proof, address proof, and KYC documents. What are the returns on Recurring Deposits? Each financial institution or bank offers varied interest rates on RD. It depends on their policies. But the rates are competitive. So, you can be sure that you will get the best return on RD. However, average interest rates are around 6% to 7% in all banks. Another factor that determines interest rates is the applicant’s age. Senior citizens enjoy a higher interest rate on RDs. You can calculate the RD interest rate by using the RD calculator. What is the tenure of a Recurring Deposit? Anywhere from 6 months to 10 years. What are the benefits of a Recurring Deposit? A recurring deposit is a good and safe way to invest money. Naturally, it comes with many benefits: You can invest as little as you want when investing in RD. As there is no suitable amount, almost everyone can invest in RDs. But the minimum amount is set by the bank or NBFC. The good part is that the investment can be as low as 10 rupees per month! The tenure of investment is 6 months to 10 years. The returns are better if you invest for the long term. However, premature withdrawal of funds is not allowed. You can only get your funds when the tenure is completed. The interest rate in RDs is as high as in FDs. But RDs offer higher interest rates as compared to savings accounts. This is an incentive for investors. Although you need to make regular investments in RDs, you can choose the frequency of deposits. This means that you can invest money monthly, quarterly, half-yearly, or annually. What are the things you must keep in mind before applying for RD? You must check the tenure for each type of RD investment. The tenure for short-term RD, medium-term RD, and long-term RD varies. Choose one that suits your needs. Although the interest rates on RDs are competitive, compare the rates offered by each bank. Some may offer slightly higher interest rates. Most importantly, understand the premature withdrawal conditions. You cannot withdraw funds from RD before the tenure ends. However, banks charge a penalty fee and let you withdraw money before the tenure ends. Before investing, choose a bank that gives high-interest rates and charges lesser penalty fees. What are the different types of RD available? There is no one-size-fits-all approach for RDs. They offer customised options for different investors. These include: RDs for senior citizens have higher interest rates. This allows their investment to multiply faster even in the absence of an income. RDs for NRIs (non-resident Indians) allow them to invest money per month through an NRE or NRO RD account. RD accounts for minors are opened with the help of a guardian. This account functions like normal RD accounts. Deposits need to be made regularly. However, the interest rates may be slightly higher in these accounts. What are the Benefits of RD investment? If you can see, RD is a risk-free and ideal investment option. By investing in RD, you can fulfil your short-term and long-term financial goals. You also become a disciplined investor. And finally, despite the market conditions, interest in RDs will never decrease. How to calculate the interest rate in RD? Calculation of interest rates or returns in RDs happens using the RD calculator. The calculations are complicated and RD calculators are preferred. How to use the RD interest calculator? Enter the amount you plan on investing. Enter the tenure of your investment. Click on the calculate button and get the result. The formula for calculating RD interest rates is this: M=P*(1+R/N)^Nt Where M= maturity amount, P= amount invested periodically, R= interest rate on RD, t= tenure of RD, and N= compounding frequency. [B-02] Conclusion RDs are a wonderful way to invest money and meet your financial goals. The calculation of RDs is made simple using the RD interest calculator. This helps investors make an informed decision about the amount they have to invest. To learn more about RDs and the RD calculator, visit the Piramal Finance website.

08-11-2023

Personal Loan

How Do Personal Loan Schemes for Retired Pensioners Work in India?

Whether you are prepared or not, financial needs can arise at any time. In such cases, personal loans can be greatly useful because they are typically unsecured. They are also not tied to a specific purpose. Although personal loans are easy to get for those with a stable income, older adults and retirees may have difficulty getting them. As pensioners lack a steady source of income, loan lenders view them as high-risk people. The good news is that many Indian lenders have realised the financial needs of senior citizens. They have thus come forward to offer personal loans for pensioners. You should also know how to calculate personal loan interest for your benefit. [B-01] What is a Personal Loan for Pensioners? Personal loans for pensioners are loans given to people over the age of 60. There is no major difference between personal loans for young people and personal loans for seniors. But, they differ in terms of the needs and the rate of interest charged by banks. The most critical thing for senior citizens is that they have a pension. Some lenders refuse to give loans to senior citizens who do not have a stable source of income. If you have a pension, you may be able to apply for a loan in this case. Process to Apply for a Pensioners’ Loan The steps for applying for a personal loan for pensioners are as follows: You should select a lender and go to its official website. Then, you should visit the ‘Loans’ section and choose ‘Personal Loan’ from the list of options. You should put your information and upload any documents needed. After that, verification will take place. Your request will be approved quickly and the funds will be deposited into your account within a few hours after the entity verifies the information provided. Documents Needed to Apply for a Personal Loan for Pensioners If you are a senior citizen, lenders may request extra information before approving your loan. If you want to apply for this type of loan, you should have the proper documents ready in case the lender needs them: Proof of a regular pension Proof of funds received from children working locally or abroad Proof of income if available Identity Card Proof Given that every lender has a different set of needs, these might not be the only documents that you need to prepare. You must remember to deeply enquire about the needs if you want to know what the specific lender needs in terms of qualifications. Personal Loan Eligibility for Pensioners When it comes to being qualified for a personal loan, there are some things to keep in mind. The eligibility needs for applying for personal loans for young people and senior citizens are similar. But if you keep the things in mind when making an application for a senior citizen personal loan, your loan will be accepted: Each bank has a different age limit for pension loans. But pensioners can apply for personal loans for pensioners up to the age of 76. The senior citizen must be Indian. The senior citizen cannot be older than 76. If you are applying for a loan, the monthly pension must be less than Rs 15,000. Your credit score should be greater than 750. Features of Personal Loans for Pensioners Purpose: The loan can be used to fulfil any family duties or financial needs. Processing Fees: Defense pensioners are not subject to processing fees. If not, nominal fees are charged. The processing fees are 0.50% of the loan amount plus tax, with a minimum of Rs. 500 plus tax. There are no extra hidden fees involved in processing the loan. Loan Limit: A minimum of Rs. 25,000 loans are approved. The maximum depends on the type of pension and your age. Regular pensioners, family pensioners, and defence pensioners get loans at different rates. The loans can be approved up to Rs. 14 lakhs. Repayment: The loan must be paid back through standing orders. It debits the pension account on the given date with the amount of the EMI. Margin: The pension loan has no set margin. Guarantor: The spouse who qualifies for the family pension must act as a guarantor. If the spouse is not present, any other family member can serve as a guarantor. Interest Rate: The interest rate on the pension loan is at the bank’s discretion. It varies based on the person’s loan amount request, repayment terms, etc. Does One Need Collateral? Collateral refers to the security you give the lender so that the loan application will be approved quickly. If you are unable to make your loan payments, the collateral will act as a backup option. The collateral serves as the lender’s means of loan security. The lender has the right to take the collateral. They can use the money to pay off any loans they were unable to make. Both the lender and the borrower benefit from having collateral. In this situation, you will be needed to make the debt payments to recover the pledged collateral. It will speed up the application process if you don’t have a pension. If you can offer something as security for the loan, the chances of being approved are higher. What If One Doesn’t Have Collateral? If you do not have collateral, your application is likely to be rejected. If you are not able to offer collateral or have no pension, some lenders demand a guarantor. To speed up the approval of the loans, you can ask your children or other family members to serve as guarantors. Benefits of Personal Loans for Pensioners The primary benefit of personal loans for pensioners is that the person has instant access to funds. If you need money right away and meet all of the requirements, your application can be approved quickly. Second, lenders are more lenient toward senior citizens who qualify for personal loans. For example, if you currently get a pension, you can use it to secure approval from the lender. Third, unlike large loans such as car loans, business loans, and home loans, personal loans are easier to apply for. It’s similar to a salary loan, but the funds you can get are larger. Finally, personal loans are simpler to pay back. You will be given payment options for the loan. It includes a payment schedule and method. [B-02] Conclusion Personal loans for pensioners allow retired seniors to easily manage money crises. You should check the lender’s terms and conditions. You should use personal loan eligibility calculators and EMI calculators to measure the total value of your loan. You can visit the Piramal Finance website to get more details related to personal loans for pensioners. You can also explore their products and services.

08-11-2023