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Business Loan

All things you need to know about Secured vs Unsecured Business Loan

Personal loans were once the final resort for urgent financial problems. Despite the COVID-19 impact, it is now one of the consumer loan types in India that is expanding the quickest. Personal loans have not been significantly affected by the sluggish economy brought on by the pandemic, even though most credit categories have seen an increase. Except for personal loans, key credit divisions all experienced a moderating in credit growth, according to the Economic Survey 2019–20. A personal loan is frequently what saves people whose salaries were reduced and payments were postponed. According to the Reserve Bank of India (RBI), personal loans today account for 28% of total bank credit. There are two primary forms of personal loans that you may choose from when looking for financing: secured personal loans and unsecured personal loans. [B-01] Secured Business Loan To get a secured loan, you must give an asset that may serve as collateral to an insurance company. A secured personal loan is a loan that is secured by an asset for the amount you borrow. Your asset will no longer have a mortgage on it once you have paid back the complete loan amount, so you won’t have to worry about it anymore. Your asset is essentially retained by the bank up to the point at which your loan is not repaid. If you default on the payment, the lender may seize your asset. Features of a Secured Business Loan Interest rate: Since collateral has been pledged and there is little danger, interest rates are low. Accessibility: No Problem Term Length: Short to Long Loan size: The loan amount is fixed as per the value of the collateral and can be quite big. Processing period Verification procedures lengthen it Low chances of rejection, subject to lending requirements and the availability of assets to use as security for the loan. Types of Secured Loans in the Market Home loans are among the most popular bank lending products. The new home you are taking a loan for in this case is the security. Gold Loan: People who are in urgent need of cash can use their gold as security to get a bank loan that is about equal to 75% of the gold’s worth. Auto Loan: For many people, getting a car loan is the next logical step after paying off their house loan. Unsecured Loans Personal loans that are not backed by collateral are not insured. Compared to secured personal loans, the interest rates for these loans are often higher. For college loans, credit card debt repayment, etc., unsecured loans are used. Unsecured personal loans often have higher interest rates. Both the principal amount and the payback period may be less than they would be for a secured loan. Features of Unsecured Loans The perks of an unsecured personal loan are considerable. Since they are less risky than secured loans, you won’t have to worry about losing your assets. Since there are no assets to consider and process as security for an unsecured loan, it is easier. Its easy accessibility is one of its main benefits. However, you do need a solid credit history and score. Before applying for a loan, you may quickly and easily check this information online. Types of Unsecured Loans One of the most widely used types of unsecured loans is a credit card, which bills you once per month and charges interest on any unpaid amount. Personal Line of Credit: While credit cards and lines of credit are comparable, lines of credit often have much lower interest rates. They give a pre-approved credit limit that you are free to utilize in any way you see fit. Personal Loans: These loans are for your use and may be used for a variety of things, including education, travel, medical expenses, and phone bills. The loan amount depends on your credit history and can range from a few thousand rupees to several lakhs. Points to Consider before taking a Secured Loan or Unsecured Loan If your CIBIL score is good enough, as mentioned above, you can choose an unsecured loan. This implies that by limiting the number of unsecured loans you apply for, you should keep your hunger for them low. Even though unsecured loans are widely accessible, it is advisable to practice moderation. Your credit score will rise if you repay unsecured loans on time and with discipline. It is advisable to evaluate the amount of your loan debt. While applying for an unsecured loan, you should not promise collateral that is worth more than the bank requires. You can choose to pledge two or more minor assets that are equal to the amount of your loan. If you have enough liquid assets, collateral, and backup assets, you may apply for a secured loan because the interest rate will be cheaper. For instance, you can borrow money against a fixed deposit for a 1% to 2% premium to the interest rate on the FD. [B-02] For long-term loans, banks typically look for collateral. Banks give personal loans without asking for any security for short-term loans, which are defined as loans between six months and two years. Banks base their decision on your ability to repay the loan on your income. There may be pre-payment fees and personal loans have higher interest rates. Banks might easily grant unsecured loans to account customers with solid loan histories and CIBIL scores. To read more such articles, visit Piramal Finance right now!

08-11-2023

Personal Loan

Most Important Tips on Personal Loan EMI Management

You shouldn’t spend all your savings if you can get personal loans. These loans can be used for anything, from paying off a lot of debt to buying a car or getting medical care. Personal loans are popular with borrowers because they are easy to get, have few requirements, and don’t need any paperwork. The problem, however, begins when the EMI payment plan is about to start. The management of your personal loan EMIs can often break a person’s bank balance. People who take personal loans don’t understand much about personal loan tenure or how to space them out. This often results in a low balance or missing important loan repayment dates. This article explains everything you need to know about personal loans, personal loan tenure, and much more. [B-01] Check Your Savings Always verify how much you have saved up in the bank before you decide to take out a personal loan, and do this regardless of how long you want to keep the personal loan. Check to see that you have sufficient funds stashed away in your bank account. This is for the monthly interest payments that you will have to make. You may utilize a portion of the money from the personal loan to pay back the EMI on your car loan, but you have to have some savings of your own. You can make on-time payments of your EMIs if you have sufficient savings—at least half or three-quarters of the loan you have taken out. Your CIBIL score will suffer if you cannot keep up with your monthly installment payments, or EMIs. Because of this, getting another loan in the future will be much more difficult for you. When you get a personal loan, you should ensure you have enough money to pay it back. Use an EMI Calculator for Personal Loan Tenure Online, you may find a variety of different EMI calculators. In this section, all that is required of you is to input the loan amount you have taken out and the duration of the personal loan. After you give this information, you may or may not be asked to give more information to finish the process. When all the information has been entered, the system will determine the amount of EMI you must pay each month. You will be able to better prepare for your EMI payments with the assistance of this fantastic planning tool. With this approach, you can get an approximation of the total amount you will be responsible for paying toward your EMIs. This is an excellent method for keeping track of your savings, expenditures, and EMI payments, and it is recommended that you use it. Cut Down on the Use of Credit Cards Reduce your reliance on credit cards if you are already servicing a personal loan on your account. Wondering why? Do you know that if you make your payment on time for your credit card account, you won’t have to pay any interest? The issue is with the interest rates. If the situation is not handled correctly, the interest rates on even the finest credit cards may become significant. People often spend their credit cards above reasonable limits while acting as if they have no concerns in the world. This is what leads to financial hardship. When you have a personal loan repayment term that you need to finish, you do not wish to be in this situation. Reduce the amount you spend each month and prioritize paying off your debt. Your monthly EMI payments are your priority, above anything else. If you are in debt from a personal loan, you should work to reduce it rather than add to it. You want to get out of debt since getting further into debt is something no one wants to do. Get All Information About Your Personal Loan In Hindi You must have the necessary information before applying for a personal loan. The employees at the bank will walk you through everything in great detail and will be more than delighted to do so. Find out all you need to know about the loan you are applying for. If you don’t understand the language used at the bank, you could ask that they talk to you in Hindi. You must get all of the information you want about personal loans and personal loan tenure. You will be aware of the day on which payment is due, the amount of money that must be paid, and the repercussions of not making payment in this manner. Every person applying for a loan should be aware of this crucial information. Ask them for all the information regarding your personal loan in Hindi so that you can fully understand. Maintain Emergency Funds During Your Personal Loan Tenure When you are on your personal loan tenure period, it is advised to have emergency funds. These are to ensure you can pay back your EMIs on time. These emergency funds should be there alongside your savings. If you are in a situation such as job loss, low savings, etc., your emergency funds can come to the rescue. You are given a monthly EMI amount when you take a personal loan. The personal loan tenure period is also specified for repaying it. This is important to keep in mind. Have emergency funds that can help you pay back at least two EMIs so that you can work on your situation worry-free. [B-02] Conclusion Personal loans can be a lifesaver. But don’t drain all your savings while trying to pay them back within the personal loan tenure. Keep the EMI amount in mind, reduce expenses, and strategically plan your budget. You will have no issue paying back your EMIs on time. For more information about personal loan tenure, you can contact Piramal Finance.

08-11-2023

Personal Loan

Is It Good to Take a Personal Loan on a Credit Card?

Credit cards help you source cash easily for emergencies, trips, shopping, and paying for services. Using a credit card, you can buy products now and pay later. If you have taken a credit card personal loan from a personal loan provider you are expected to make timely payments. Personal loan providers could charge you extra interest and a late payment fee if you don’t pay your bills on time. Financing costs for credit cards can be pricey. If you only pay the interest, it forms a large chunk of your income. If you are struggling with credit card bills, here are a few options that could help. [B-01] Taking Cash to Take Care of Credit Card Obligations As you weigh your options, a low-interest credit card personal loan might seem like a good option. But, in addition to the cost of the loan and the time taken to repay, you should also take into account its terms and conditions. Before choosing a credit card, you should be aware of the bank’s payment terms and financing costs. Further, there are a few benefits to long-haul individual credits. Since the scheduled payments on a longer-term private loan are lower, salaried borrowers may be able to pay off the interest easily. If you can’t make big payments regularly, you might be better off with a personal loan with a longer tenure. You should choose personal loan providers that best fit your needs. Benefits of Taking a Personal Loan on a Credit Card Low Loan Fee Most of the time, the interest rates on advances are lower than those on MasterCards. In different situations, credit card personal loan VISA rates cover some of the costs of loan advances. Credit Union One of the biggest problems with salaried classes is that there is never enough time to figure out how to take care of all of your responsibilities. Also, stress and pressure at work can make it hard for people to remember things. If you have more than one credit card, it could be hard to keep track of when each payment is due and its amount. Without a well-thought-out plan, it will be hard to handle the responsibilities that come with each of these cards. In this way, You might be able to avoid all the problems if you put all of your personal loans on a credit card. By taking out an individual credit, you can pay off any other credit card personal loan and only worry about the individual advance. It will be easier to keep track of and manage your money if you only make one payment each month instead of multiple. Due Date At times, you keep making credit card payments, and it still feels like it will go on forever. When it comes to personal credit, on the other hand, you can choose fixed terms for the duration of the repayment period and look over all of the agreements, not just the loan cost. Now, you have a better repayment plan, without having to worry about the costs all the time. If you get a personal loan to pay off your credit card obligations, you should be aware of the number of regular payments you need to make to be debt-free by the due date. Credit Rating With financial assessment credits, you can raise your FICO score. When you take care of all of your bills as soon as possible, your FICO score will start to improve. This is because you have already paid off all of your advances and charged card fees. If you can’t make your credit card payments on time, you should choose a reasonable credit card personal loan so that you can still pay your monthly bills on time and maintain a good FICO score. Disservices of Taking Individual Credit to Take care of Mastercard Obligations Getting a personal loan to pay off your Mastercard bill isn’t as easy as it sounds. Your FICO score is low because you may have gotten a lot of credit in the past. This could make it hard for you to get a credit card personal loan on your own. If you get a private loan with a long repayment period, you will have to pay interest over a longer period. You might end up paying more than the Mastercard bills because the interest on the credit card charge will be added to the interest you pay on other debts. After transferring your charge to personal credit, you could also think about donating a part of your Mastercard charges to a charity. However, this may result in a decline in your FICO score. Overall, each credit card has to pay more. So, you should use your credit card for personal loans instead of getting rid of them. Using a program like CRED, which not just guides you in terms of due date reminders, but also pays you for making timely payments. Another strategy is to avoid debt altogether. Unless you need money immediately, keeping away from debt is generally considered ideal. [B-02] Conclusion It is best to pay your credit card bills on time, so as to avoid taking additional credit for paying off the balance. Even though there are benefits to credit card personal loans, they might not always be the best choice. Several personal loan providers can help you repay your credit card personal loan on time. You can visit Piramal Finance to find out more about their services.

08-11-2023

Personal Loan

How Does Car Loan EMI Calculator Works In India?

One of many loans people can obtain from a bank or a financial institution is a car loan. In today’s fast-paced world, owning a car or an automobile has become a necessity. Be it a new car or a used one, people are looking forward to buy vehicles more than ever before. Your budget is crucial in choosing the car you can buy, the down payment you can make, and the loan amount you need. The car loan can be repaid in a pre-arranged duration with manageable EMIs. Your credit score will suffer if you don’t pay back the loan on time, and the lender may seize the vehicle to make up for the loss. [B-01] What does an EMI calculator for Vehicle loans do? The vehicle loan EMI calculator is a powerful tool that will guide you in calculating the equated monthly payments you need to make to the bank during the term of the car loan. Before entering the bank, you are notified of the loan’s required amount, interest rate, and monthly payments for the car loan. This tool is a formula box with sliders for the loan amount, loan tenure, and interest rate. The vehicle loan EMI calculator will display the monthly repayment amount to the bank after you enter the data. How does the Vehicle Loan EMI calculator operate? With the aid of the following mathematical formula, you can establish the car loan EMI amount: EMI amount is calculated as [P x R x (1+R)N]/[(1+R)N-1] with P, R, and N acting as the variables. Additionally, this implies that the EMI value will alter each time one of the three variables is altered. Let’s go into greater detail about these three variables. “P” is an abbreviation for the principal amount. The initial loan amount that you received from the bank is what will be used to compute interest. “R” speaks for the interest rate that the bank has established. “N” is the total number of years allotted for loan payback. The period is measured in terms of the number of months because you must pay the EMIs every month. If you borrow Rs 10 lakh for a car at a 12% interest rate, the EMI will roughly be as follows: P = Rs 10 lakh, R = 12/100/12 (you must convert to months), N = 2 years or 24 months. EMI = [10,00,000 x 12/100/12 x (1+12/100/12)^24] / [(1+12/100/12)^24-1] EMI = Rs 47,073. Benefits of taking a Vehicle loan: There are many positives to leasing funds to buy a car, some of which are mentioned below: Can be repaid in simple EMIs – You can choose your own simple equivalent monthly installments (EMIs) for your auto loan repayment. These EMIs will depend on the repayment period you select as well as the interest rate the lender will charge. Your stress of having to make a large loan repayment payment all at once is lessened by using EMIs. Instead, you might make modest payments as you can afford to do so. No need to present collateral – When you apply for a car loan, the vehicle itself will serve as your only form of security. The vehicle will be held in the trust of the bank, and the lender will have the right to confiscate it in the event of any payment default. Excellent for establishing your credit history – If you borrow money for a car and pay it back on time, your credit rating will rise. Because lenders will know you can pay them back, they will be more likely to offer you favourable terms, such as lower interest rates or the elimination of processing fees. Better planning – By paying back your car vehicle loan through EMIs, you may better manage your finances because you will know how much you will be spending each month to cover the debt. Then you can make the necessary adjustments to your other costs. You can use the car loan interest rate calculator feature to determine the EMI amount. Offers additional advantages – These days, many banks will give you perks like free maintenance, free road tax, etc. when you take out a car loan. Factors Affecting Car Loan EMI The vehicle loan EMI calculator is determined by a variety of parameters. Since the principle sum, term, and interest rate all play a significant role in determining the EMI, any change in any of these factors may affect the EMI amount. The additional elements that influence EMI are: Employment Category (Salaried, Self- Employed Professional, or Businessman) Income brackets Age demographic Duration of the loan Vehicle (New or Used) Car financing programme The applicant for the car loan An active bank account The price of the vehicle you choose will also determine whether you qualify for a car loan or not. [B-02] Final Thoughts Nowadays, more and more Indians are choosing to buy a vehicle. As a result, banks in India are providing vehicle loans with affordable rates of interest. Gone are the days when you had to wait in long queues at banks to apply for a car loan. Today, applying for a car loan is simpler than ever and can be done from the luxury of your home, with just a few taps. To know more about car loans, check out the Piramal Finance website, and find out which one suits you best.

08-11-2023

Personal Loan

How You Can Calculate Personal Loan EMI

Personal loans are now among the most common types of loans available to people. These are unsecured loans. You can take these loans for a short or medium period of time to meet your financial needs. They are most commonly used to cover debt consolidation, vacations, and medical expenses, among other things. Personal loans are available without the need for collateral. But eligibility will be decided by your credit history, income, and age, among other things. Banks offer special personal loans for pension holders. These are also known as pension loans. To get personal loans for pension holders, you must follow the loan rules, including the age limit. The loan is available to government, military, and family pensioners up to the age of 76. There are no real limits to how you can use the money from a personal loan. People are usually given a flexible repayment period of up to 5 years. This is why people prefer personal loans to credit cards or other types of loans. [B-01] You can submit a quick online application to receive a personal loan of up to Rs. 25 lakhs. Personal loans have a repayment period of up to 60 months. To get an instant loan, you can benefit from fair interest rates and a hassle-free online application process. Calculating the personal loan EMI (Easy Monthly Installment) has a major impact on your ability to repay the loan. It is the first thing you should do if you plan to take out a personal loan. What is an EMI Calculator? You may use the EMI calculator to calculate the personal loan EMI. Loan factors such as the principal amount, term, and rate have to be added, and the EMI is calculated with ease. You can calculate the personal loan EMI of many types of loans. For example, to calculate the personal loan EMI of a loan, use a personal loan calculator. You can calculate your personal loan EMI in seconds. Many personal loan calculators are free. They can be used 24 hours a day, seven days a week. You may compare or calculate multiple personal loan EMIs as often as you want. What is the Use of The EMI Calculator? With an EMI calculator, you can learn the details given below: The amount of the EMI The total amount of interest taken on the loan The whole amount is taken (the total cost of the loan) You can modify the loan term or balance to get an EMI that you can afford. Process To Use an Online EMI Calculator There are many steps to calculate the personal loan EMI. These are as follows: Step 1: Visit any reliable website. Step 2: Click on the calculator tab to access the EMI calculator page. Step 3: Decide on the type of loan needed. This may be a house loan, a personal loan, a vehicle loan, and so on. Step 4: You must now provide the proper details. This includes the loan amount, principal, rate, and loan time. Step 5: After entering the details, the EMI calculator will show the payable EMI amount. Step 6: You may try other combinations to find the best fit EMI amount. Features of an EMI Calculator Graphical Representation With the graphical representation, you can find out how much principal and interest will be charged in each EMI. You will be shown a pie chart with these details on it. Repayment Schedule The repayment schedule gives data about how to pay back the loan. It enables you to plan the rest of your expenses correctly by letting you know how much you will have to spend each month. Three Things to Know About Personal Loan EMI Calculation The principal sum and interest are included in the EMI payment It’s crucial to realize that when you make your EMI payments, you are also paying the principal balance of the personal loan and the interest that is due on that balance. The monthly payments you make to pay back the loan over its term are known as EMIs. When you first start making EMI payments, you typically pay more towards interest than you do toward principal. But, as the loan’s term draws to a close, the EMI payments make a larger contribution to the principal than interest payments. Ensure that the EMI does not exceed 40% of the monthly income Market experts suggest that the EMI for any loan should not exceed 40% of the monthly income. This is due to the fairly fixed monthly income of people and other charges and financial burdens to consider. Also, if you are a self-employed business person, you can never predict your income. If you are a salaried person, you can never predict losing your job or getting a pay cut. As a result, it is vital to be on the safe side. You should ensure that your EMI payments do not exceed 40% of the monthly income. The interest rate will be affected by a number of factors The interest rate on the personal loan is the main factor that affects the amount of EMI you pay each month. Your interest rate is based on a number of factors. It includes the credit history, income, the amount taken, and age, among others. One of the most key factors that affect the amount is credit history. Your credit history is affected mainly by how you repay past or current loans and credit card bills. Lenders and banking institutions will offer higher personal loan interest rates to people they consider to be a low credit risk. For example, people who have paid back their previous loans on time. [B-02] Conclusion Loans are now a vital part of many people’s lives. They help us reach certain life goals. The most important term to keep in mind when it comes to loans is EMI. There are many EMI calculators that you can use to calculate personal loan EMI. This includes personal loan calculators, home loan calculators, and business loan calculators. They may be used to calculate the personal loan EMI of various types of loans. When you enter the needed data into an EMI calculator, it makes calculations based on the EMI calculation formula. Then, it provides the EMI you must pay monthly in seconds. You can visit the Piramal Finance website to calculate loan EMIs and explore their different products and services.

08-11-2023

Personal Loan

Best Personal Loan EMI calculator in India

Taking out a personal loan might sound easier, especially when your credit score is high and all the necessary income certificates are in place. However, if we consider realistic situations, one has to cover many hurdles and roadblocks before the loan application gets approved. Besides, the loan isn’t something you think about last night and get done by tomorrow afternoon. Yet, taking a loan without complete knowledge of its various attributes can be problematic. You have to work on getting all the documents for the personal loan and understand the aspects of paying monthly installments, interest rates, etc. Besides, if you take a secured loan, the asset you kept as collateral will get forfeited if you fail to pay the installments. This article will explain how a personal loan calculator can help solve most of your problems and guide you to make a well-informed decision. [B-01] What is a Personal Loan and Why Do You Need It? A personal loan is a type of credit you can take from any creditor or bank to fulfill any financial crunch or meet any personal goal. It is primarily divided into two types: secured and unsecured personal loans. If you opt for a secured loan, you need to keep something as collateral that will guarantee the creditor the repayment through the fortification of the asset in case the borrower fails to pay the installments after repeated notices. In contrast, an unsecured loan doesn’t ask for any collateral, but the interest rates are pretty high and also depend on your credit score and income proof. What is a Personal Loan Calculator? As the name suggests, a personal loan calculator is a simple piece of software that takes multiple inputs, like the principal amount, the number of repayment years or months, the type of personal loan, and so on. Then it returns a value for the EMI you have to pay monthly based on the interest rate and input details you gave. It’s almost like running an automatic instrument through software, where everything can be calculated easily. How a Personal Loan Calculator Can Help You Make a Well-informed Decision? There are multiple benefits to using an EMI calculator. So without further ado, let’s look at some of the benefits of using the loan calculator. You can easily know the monthly EMI to be paid for a certain principal amount you want for your personal loan. There is no need to wait for the concerned creditor to respond to your quote request. Using the loan calculator is quite easy. You won’t have to give confidential personal information like bank card details, ID proof, bank account details, credit card information, etc. So the tool is safe and secure to use. You don’t have to pay to use this tool. Most EMI calculator software programs come for free and allow people to calculate their EMI installments without extra charges. Another significant benefit of using personal loan calculators is that the software programs will let you check how the EMI varies according to your credit score, type of personal loan, repayment term, and several other attributes. So, you can choose the best personal loan based on how easy it is for you and how much you can afford to pay each month. Since these calculators are hassle-free, you won’t have to spend hours understanding how they work and using them to calculate the approximate number of installments per month. As you can make a proper decision with the values known, the loan application and approval process can be completed much faster. Which is the Best Personal Loan Calculator You Can Use? There are many personal EMI calculator tools online, so finding the best one is a cumbersome task. But unless and until you already have a plan in place, you won’t be able to choose the best tool and may even end up using software that never displays accurate results. So, to help you out of this dilemma, we have shared some insights about finding the best calculator for a personal loan. First things first, you need to understand that a calculator is a simple tool that takes the principal amount, the time, and the type of loan you want to take out. Once you give all the inputs, you click the search or calculate button, and the software runs a back-end program to display the results. Therefore, it’s crucial to check if the program is coded in a way to display the most accurate results or not. If there is no accuracy and precision in the loan EMI displayed on the screen, it can lead to problems later on. Creditors offer different types of personal loans. Secured and unsecured loans are the two major classifications, to begin with. The interest rate will be higher for unsecured loans than for secured loans. Similarly, an unsecured personal loan can be further classified into more categories. Therefore, the personal loan calculator must have a dropdown showing options for the different personal loan types. Another thing you must worry about is the calculator’s security. Sometimes, you have to input personal information like a birth date, name, email ID, and so on to use the tool. Doing so can jeopardize these information sets, mainly if any trustworthy regulatory authority does not supervise the device. That’s why you should always use a reliable and secure calculator. [B-02] Conclusion In this article, we have taken you through some of the most important details about a personal loan calculator. The software tool might vary from one platform to another, but it will have certain features that are common and required for giving an estimate about the EMIs, interest rates, and others. If you still have any problem understanding the role of a calculator or want to try the most accurate calculator, you can connect with the experts at Piramal Finance. They will help you understand the loan calculator’s use in detail and also guide you through the entire process.

08-11-2023

Personal Loan

Smart Ways to Get Minimum Interest Rates on Personal Loans

If you are in a financial bind, taking out a personal loan is a flexible way to meet your unique demands. They are often borrowed to cover emergency fund needs. Personal loans with low interest rates are the ideal solution to address your immediate financial requirements. A personal loan can help you finance everything from your child’s wedding to a vacation with your partner. However, obtaining a loan at the most competitive rate is critical. Lenders are developing several practical options for personal loans to make them more accessible to customers. A personal loan can be obtained either online or in person. But the vital point is how wisely and carefully you approach a lender for a personal loan. Finding the best rate is necessary when applying for a personal loan and choosing one that works best for your needs. Here are a few tips to help you discover the best interest rates on personal loans: [B-01] Maintain a good credit score You might want to become familiar with and continue to monitor your credit score if you are interested in obtaining a personal loan. This is because the terms of the loan you take out are determined, in part, by your credit score, which reflects your capacity to manage credit responsibly. A higher score indicates better credit. You will be eligible for a personal loan if you have a credit score of 700 or 750; as a general rule, the higher your score, the better off you will be. Lenders will decide on payback terms, the total amount of the loan, and the interest rate based on your credit score. You will have more leverage in the negotiation process with a higher score. Be consistent in employment A consistent, full-time job with demonstrated professional advancement is always preferred over a freelancer or contract worker. In addition, lenders consider steady work to be an assurance of monthly loan repayments. Therefore, before deciding on personal loan interest rates, they look at your career history and how long you’ve been at your current job. If you are a freelancer or contract worker, getting approved for a personal loan might take a lot of work. However, if your work history is strong and you have a good credit score, there’s no reason why you shouldn’t be able to secure a personal loan. If you have worked for over two years at the same company and have received a regular raise, the lenders will have no qualms about lending money to someone like you. Compare lenders to find the best deals When looking for personal loans in your area, you must get clarification on all the possibilities available. Because of this, you need to take some time to do some preliminary research and compare the interest rates and features of different products. Research can go a long way: it may assist you in finding the loan that has the features and interest rate that are most beneficial to you. Even though it will take some time to finish this task, you will realize at the end of the day that this was the best choice. Develop a positive relationship with your lender If you’re looking for a reasonable rate on a loan, it’s worth being an existing customer with the lender. A lender with whom you have a good relationship can help you get the best rates and loan offers. If you are an existing customer, the lender understands your credit history and will always want to keep you on the best terms. Therefore, when seeking low-interest loans, always strive to approach a lender with whom you have been a customer for a long time. Understand how the lender calculates interest Ensure that you have a solid understanding of your lender’s interest rate calculation process. Never select a personal loan solely based on the interest rate offered by the lender. Stick to your budget and consider all the relevant factors before applying for a personal loan. When determining the interest rate, various criteria are taken into consideration. These things to think about are the total amount of the loan, how long it will take to pay off, and any costs that come with getting credit. Keep an eye out for exceptional deals Maintaining a watchful eye for promotions is the most effective strategy to uncover a favorable deal for your bank account. The vast majority of large banks and other financial organizations run promotions regularly. During Diwali or other special occasions, such waivers or cashback incentives are frequently made available to customers. It will be easier to get a decent deal if you routinely check the official websites of the most important financial institutions, including banks and lending institutions. [B-02] Conclusion Before taking a personal loan, it is essential to understand the different elements that determine your interest rate. These factors include your credit score, income, employment history, and other financial obligations. If you meet these criteria, you may even be able to negotiate a reduced interest rate on your loan online with the bank. Choosing a personal loan is one of the most crucial decisions of your life because it is fraught with danger. As a result, it is advised that you conduct considerable research before deciding on a lender. You can compare and select an affordable personal loan with the help of this article. For extensive information and expert guidance, make your way to Piramal Finance.

08-11-2023

Personal Loan

Apply Personal Loan Online Vs Apply Personal Loan Offline

Adulthood comes with numerous responsibilities. One of the most challenging is the financial responsibilities one has to carry on their shoulders. Especially, when the loved ones are dependent, both emotionally and financially. Whether it is to pay for one’s child’s wedding, build a dream home, or cover necessary medical expenses, the future is lined up with expenses that monthly paycheques and savings alone cannot cover. There are times when one needs additional finance to meet these necessary expenses. This is where personal loans come in to save the day. It can be secured by banks or financial institutions. One can apply for a personal loan online and offline. It is also possible to avail personal loan on a credit card. This article talks about how to secure loans through these various modes. But before that, let’s brush up on the basics. [B-01] What are Personal Loans and How do They Work? Personal loans help one pay for personal expenses when the funds are limited or when one has planned to channel them differently. One borrows an amount of money and pays them at a certain date in the future. It carries a certain rate of interest, which is the cost of securing the loan. Some loans also require putting in some collateral. These are often called secure loans. In contrast, personal loans don’t need collateral. A personal loan is issued based on one’s credit behaviour, including the amount of credit one has availed in the past, how soon it was paid, and so on. Credit behaviour is determined by the credit score. It helps the lender ascertain if one will be a suitable candidate to secure loans and repay them on time. Other than that, income and employment history also come into play. How to Secure Personal Loans in India? One can apply for a personal loan online and offline. It is also possible to apply for a personal loan on a credit card as well. If one is confused about which approach to pick, we’ll help you decide. Benefits you Get When you Apply Personal Loan Online No Hassle of Visiting the Institution or Bank Branch It is not convenient to visit fund houses or banks to secure loans. Thankfully, long gone are the days when one had to go through the hassle of visiting banks and financial institutions to apply for personal loans. Now, this can be done right from the comfort of home. This option is ideal for an individual who cannot take out the time to secure loans the old-fashioned way and can apply for a personal loan online. Less Paper Trail Managing a hundred documents can be a hassle. However, when one applies for a personal loan online, one eliminates the obligation. Most banks and financial institutions now require to fill out digital forms or go through minimal offline document submission. If someone prefers that, securing a personal loan online can be the ideal choice. Time-Saving By choosing to apply for a personal loan online, one might save a lot of time. This is because the offline application might involve several formalities that can eat up a lot of time. For instance, it is very likely that most of the time, one might be called in again if the documents are not filled in properly, or if some mistakes have been made. Offline loan applications do require thorough verification, which can be time-consuming, Hence, it’s better to apply for a personal loan online if one has these reservations. Benefits When you Apply For A Loan Offline When one applies for a personal loan online, one will certainly reap some benefits. However, the offline application process does have its benefits too: Ideal for Someone Who’s Not Tech-Savvy Technology has certainly made lives easy, but it remains challenging for those who are not well-versed in technology. An offline personal loan application is much more convenient for them than the personal one. Personal Touch An offline personal loan application might give one the elaborate interaction they are looking for. In other words, an offline, face-to-face interaction would always have the upper hand for some individuals. They can get their doubts cleared, and understand the financial products and procedures much more efficiently than they would when they apply for a personal loan online. Ideal for Someone Who Has Better Access to the Loan Houses If someone lives near a bank or financial institution, then going for the offline mode of loan application is any day a sagacious choice. The option can be ideal for someone who finds commuting to the bank more convenient. One can also avail of a personal loan on a credit card through the bank. This can be a convenient option for those individuals who have an operational credit card. As all KYC documentation would already be completed and would not require to go through the same formalities again to get a personal loan. [B-02] Which is Better? There’s no clear winner here. It all depends on preference. If one is tech-savvy or doesn’t find time to go through the offline channel, it’s a wise decision to apply for a personal loan online. However, if someone prefers going the traditional way out of convenience, then filing a loan application offline is ideal. Whichever one chooses, ensure that one is availing a personal loan from prominent financial service companies like Piramal Finance. Piramal Finance is India’s leading financial company offering personal loans, housing loans, business loans, and other financial products catering to the needs of different individuals. Whatever the loan application needs are, Piramal finance is here to fulfill them efficiently.

08-11-2023

Personal Loan

Easiest Way to Get an Instant Personal Loan in India

When you go to a banking firm for a loan, it could take a lot of time to accept. This makes it difficult if you need money quickly. Also, since certain lenders have rigorous qualifying situations. So, you may only get part of the sum. When you have a short-term financial flow, applying for an urgent personal loan can keep your funds moving. Personal loans are granted quickly and with minimum paperwork. Many financial firms provide different types of personal loan options, so your funds may be issued within a few hours after applying. [B-01] How to Get an Instant Personal Loan? Choose a Lender or a Lending App To obtain a quick loan, first, select a lender. You can apply for a personal loan on many online apps. Some lenders charge greater interest rates. Find out all the options available and choose a lender who offers better loan terms. Select Your Loan Program After selecting an app, you will be shown several financing alternatives. The loan amount and payback terms must then be chosen. However, the amount of debt you choose is determined by your eligibility. It is important to note that your loan eligibility is determined by your CIBIL score, salary, and age. It is vital to maintain a strong credit score for improved loan eligibility. Keep Your Documents Ready Before endorsing your loan request, lenders will request many documents from you. You must provide proof of identity, which can be a PAN card. Note that the image on the PAN card must be of high quality. In case of a poor photo, your card gets denied. Some banks may ask you to submit a lawful Indian passport instead. Another document needed for rapid personal loan approval is proof of income. Salaried employees may submit bank records. Self-employed clients may also produce bank documents demonstrating their revenue for the past three months. When applying for a loan online, you must provide your home address. Many banks need utility bill documents that include your address. A valid driver’s license or your Indian passport can be used as proof of residence. How to Ensure the Success of Your Instant Personal Loan Request? Provide Correct Data Many banks enable you to apply for a loan online. Ensure that you enter the most precise and truthful facts to prevent rejection. To minimise losses, your lender must verify that the loans go to the right borrowers. Any incorrect details like your address make the approval process longer. Factual inaccuracies may also lead to loan requests being denied. Affordability Examine your costs and compare them to your monthly revenue to check your capacity. Once you know that, use the bank’s affordability calculators to estimate the amount and interest rate of the loan before you apply. Banks will lend you money if they feel you can repay it. Pay Down Any Due Debts Banks check your background when you apply to get an instant personal loan. Your bank is most concerned about unpaid debts. Resolve any major credit card debts or existing cash loans. They might cause your loan request to be rejected. Before your request is granted, all of your financial pledges and duties are examined. A High CIBIL Score Despite CIBIL scores varying from 300 to 900, a score over 750 is considered a strong suit. If your credit rating is less than 600, you may raise it by repaying your debts on time. If your rating is lower because of a mistake, notify the proper officials and request repairs. Having unused credit cards might also help your credit score. What Are the Various Types of Personal Loans Available in India? There are many types of personal loans available in India. They differ in interest rates and other details. Let’s have a look at some examples: Short-Term Personal Loan (STPL) The short-term personal loan, offered by several digital lenders, begins as low as Rs. 1000 and may be returned to the lender within a few days to months. This type of personal loan is paid to your account in a matter of hours and needs little to no paperwork. Supplementary Loan This type of personal loan is offered by the same bank from whom you previously got a personal loan. With a top-up loan, you may borrow extra money on your current loan and return it within the same term. However, the lender will only grant you this type of personal loan if you have been on time with your payments. Loan for a Vacation This type of personal loan is handy if you want to go on vacation. You can plan a trip and cover your travel expenses without using up your savings or shooting up your monthly budget. Credit cards might also help. But a holiday debt can make cash quickly accessible at a reasonable interest rate. Overdraft Loan Nobody knows what may happen tomorrow, but you should be prepared for the worst. This loan assures that you will not run out of funds and that you have enough money in your account in case of an emergency. This loan has a higher interest rate, and you only pay interest on the money you utilise. [B-02] Conclusion When you least expect it, financial issues will develop. Consider a personal loan if you need money quickly. Several lenders provide low-interest loans. Select a lender or money lending app that offers the lowest loan rates and no hidden fees. However, if you are still confused, you can visit Piramal Finance for more blogs on types of personal loans. You may take a look at the products and services they offer.

08-11-2023