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Personal Loan

What Is Small Personal Loan And What Are The Requirements For It?

The little pleasures of daily life are the ones that make us the happiest. Whether it’s buying the latest electronics, taking that long-awaited vacation, paying for your wedding, renovating your home, etc. Are you looking for a loan that covers all such immediate financial needs? Do not burden your savings or rely on others, consider taking a small personal loan. Read on to learn about what a small personal loan is and who qualifies for it. [B-01] What is a small personal loan? Small personal loans are often known as “short-term loans.” A small personal loan is an unsecured loan that meets urgent needs. You can use a small personal loan for a variety of things. It is easy to apply online because of the simple application process, hassle-free personal loan requirements, and quick approvals. These loans come with quite benevolent terms and conditions for borrowers. Small Personal Loans Are For Whom? Both salaried workers and self-employed people can apply for a small personal loan. Additionally, first-time borrowers can avail of them too. You may use the money to cover both your personal and professional financial needs. Even business owners and entrepreneurs can get a small personal loan. They can use it to cover their needs for operating capital. Features of small personal loans Key characteristics of small personal loans include the following: Quick access to money. Affordable interest rates. Quick approval. Flexible choices for repayment. Complete transparency in the borrowing process. Paperless approval. Quick disbursals. No collateral. Use of a Small Personal Loan The use of a small personal loan includes Paying for your essential needs. Obtaining the necessary cash flow for the firm. Covering costs associated with medical emergencies. Travelling. Paying for funeral costs. The cost of moving expenditures. Buying a bike or scooter. Purchasing a gift for family members. Completing a training course. Remodelling your property. Paying for wedding costs. Credit card debt repayment. Small Personal Loan: Duration, Minimum, and Maximum Amount. A small personal loan’s borrowing amount varies from lender to lender. On average, the borrowing amount of a small personal loan varies between Rs. 10,000 and Rs. 2 lakh. Each lender has a different loan repayment term. Most give a term of three months to two years. Few lenders now provide small personal loans with 15-day repayment terms. Piramal Finance offers personal loans up to 10 lakh with easy repayment tenure starting at 1 year and extending up to 5 years. Thanks to the fintech industry’s rapid rise, customers may now get instant loans at fair terms. They no longer have to bear the high-interest rates imposed by private moneylenders. Small personal loans from Moneylenders vs. Registered lenders. The key distinctions between the two are Interest rates: When lending money to customers, private moneylenders charge a high-interest rate. However, registered lenders provide lower rates of interest due to a huge customer base and fair market conditions. Loan amount: A registered lender will do your tight background checks. The checks include your credit history, income, and ability to repay. You will only get the loan if you pass all the checks. Local moneylenders do not perform tight eligibility checks. It makes it easy for you to get caught in a debt cycle. Credit score: A small personal loan from a local moneylender is a private transaction. That’s why it has no impact on your credit history. If you get a small personal loan from a registered lender, this will affect your credit history. Your credit score will rise if you make on-time payments and avoid defaulting. Terms and conditions: A registered lender will have terms and conditions. The T&C includes interest rates, repayment schedules, etc.But, a loan from a private moneylender lacks legal protection. That’s why the lender is free to raise the interest rate on your loan. Personal Loan Requirements At Piramal Finance. Eligibility Criteria. Salaried individuals working in the following areas may apply.: Government Institution MNCs or related companies Partnership Firms Proprietorship concern Private sector Public sector Age Requirements. 21 years to 60 years Income Terms. A monthly salary of Rs. 25,000 or more. Work Experience Condition. At least six months of experience in the present organization. Documents. The documents necessary to get a small personal loan are: PAN Card (Mandatory) Identity Proof (any one of the below) Passport Driving License Aadhaar Voter’s Identity Card Address Proof (any one of the below ) Registered Leave and Lease Agreement. Passport Driving License Aadhaar Card Voter’s Card Telephone/Electricity Bill etc.( shorter than 3 months old) Income Proof Latest 1 month’s salary slips. Bank statements not more than three months old. [B-02] Bottomline A small personal loan is the best answer to fulfill small and urgent financial needs. It is a popular loan among people because it is easy to get and requires no collateral. The small personal loan requirements are very straightforward. A person with an income as low as Rs. 10,000 can also avail of this loan. Always prefer borrowing a small personal loan from a registered lender. As they offer lower interest rates and easier repayment terms than moneylenders. Apply online or call 1800 266 644 to get an instant small personal loan.
08-11-2023
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Personal Loan

All you need to know about current personal loan interest rates this month

What is a personal loan? A personal loan is a sum of money that you can borrow for many purposes. For example, you may utilize a personal loan to restructure debt, pay for house repairs, or arrange your ideal wedding. Personal loans are available through banks, credit unions, and online lenders. Borrowed funds must be returned over time, generally with interest. Personal loans may also be subject to fees from some lenders. Personal loans are funds that may be used to meet a variety of personal costs. These loans might be secured, which means you must provide security to obtain money, or unsecured, which means no collateral is required. [B-01] Interest rates of personal loans Several banks in India provide the greatest personal loans to their consumers, and you can apply for them either online or offline. However, before you apply for a personal loan, you should compare the interest rates given by various institutions, which range from 7.90% p.a. to 49% p.a. Evaluate the top 5 banks’ newest “personal loan interest rates” and “processing fees” and apply immediately. 1. HDFC Bank Personal loan interest rate – 10.5%-21% p.a. Processing charges – equal to or less than 2.50% 2. IndusInd Bank Personal loan interest rate – 10.49%-31.5% p.a. Processing charges – equal to or more than 3% 3. Tata Capital Personal loan interest rate – equal to or more than 10.99% p.a. Processing charges – equal to or less than 2.75% 4. Bank of India Personal loan interest rate – 10.35%-12.35% p.a. Processing charges – equal to or less than 2% 5. Central Bank of India Personal loan interest rate – equal to or more than 9.85% p.a. Processing charges – equal to or less than 1% How can you get the lowest interest rate? Before taking a personal loan, here are some points to assist you to get the best interest rate: Boost Your Credit Rating: A good credit score demonstrates your creditworthiness. Banks and commercial organizations provide the cheapest personal loan rates to candidates with good credit. As a result, before seeking a personal loan, you should verify your credit rating. If your CIBIL score is less than 750, you should increase it before taking a loan. When your CIBIL score is above 750, you are more likely to get a low-interest personal loan. Constantly Check for Offers: Banks and other lenders sometimes offer special lending rates during holidays and other occasions. If you make a loan application while a similar offer is active, you can be offered a cheaper interest rate. Bargain with the Creditor: If you are a current client of a bank or have a strong connection with the lending institution, you may be able to negotiate a lower interest rate. It is best to make a formal request to the loan servicer while doing so. Avoid Missed Loan Payments: Your credit rating is directly linked to your borrowing abilities. Thus, it is affected if you fail to repay your loan or credit card balance. Before fixing personal loan interest rates, lends often consider your payback history. People who have paid their credit card dues and EMIs on time always are the ones who receive a reduced interest rate. Examine Interest Rates: When applying for a personal loan with a certain bank, assess the personal loan interest rates offered by several NBFCs and banks. This will help you get a loan with a low-interest rate. What affects personal loan interest rates? Income: When setting the interest rate, lenders consider your income. People with a high salary are seen as less risk to the bank. Thus, they may be offered a lower interest rate. Those with lesser income, however, will have to pay a higher rate. Age: Your age can also affect the interest rate given by the lender. Those approaching retirements are likely to face a higher interest rate. Employer: If you work for a renowned company, the bank is likely to offer you a lower interest rate. Employment Type: Depending on whether an applicant is self-employed or salaried, lending companies may offer various interest rates. Connection with the Lender: Existing clients who have a strong relationship with the lender may be offered a cheaper interest rate when applying for a personal loan. This is at the bank’s will. Not all current clients will be awarded a favourable interest rate. Which interest rate can be the lowest? Suppose you take a personal loan with a fixed rate of interest. Your interest is fixed on the whole loan amount throughout the loan. Instead, if you withdraw a loan with a dropping balance interest rate, the interest is calculated only on the outstanding balance. This is significantly lesser than a fixed interest rate. What should you remember about personal loan interest rates? There are a few more points to note when taking a personal loan with a low rate of interest. Processing Fee: Lenders charge a one-time processing fee, which increases the interest rate. Thus, although you have a low-interest rate, you should calculate the processing fees imposed by various lenders. Pre-Closure Fees: Some banks charge a pre-closure fee if you settle the unpaid loan balance before the end of the loan term. Check to see if your chosen bank charges a pre-closure fee. Other Charges: While the lender may charge you a slightly higher interest rate, if the processing fee, pre-payment fee, loan cancellation charges, stamp duty charges, swap charges, and so on are low, you may be able to save on the overall cost of the loan. [B-02] Conclusion With the help of this article, you shall be able to get the cheapest personal loan interest rates. For more information, check out the blogs by Piramal Finance!
08-11-2023
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Personal Loan

What is the need for improving a personal loan application?

You might have always had a dream to buy a fancy house, a luxurious car or get rid of your debt in a single attempt. But, as fascinating as it may sound, it is difficult to have a lump sum without filling out a personal loan application. A personal loan can provide you with the kickstart you want to cover up your ends. In this article, you will know everything about personal loans, why you should be focusing on a personal loan application, how to apply for it and how to improve your application. [B-01] What is a personal loan and what purpose does it solve? A personal loan is an unsecured form of loan where you borrow money from a lender in return for repayment at a specific interest rate. It helps you meet your needs and repay that through small instalments over a set period of time. To get these types of loans, you neither have to keep any collateral nor a security form which means there is nothing at stake. There is quick approval, quick money disbursal and very little paperwork. When talking about purposes, the purposes for which you can take a personal loan: For your expenses, you can fill out a personal loan application. You should not worry because the banks do not intervene in how you spend this money. You can use this money to pay medical bills, renovate your house, or even plan a trip abroad. You also can use this money to invest in your business venture and take your business idea to the next level. It can also be used for education purposes, paying student debts, making a downpayment, etc. Why should you fill out a personal loan application in the first place? A personal loan has numerous benefits, It has high flexibility which means you will get a good amount of time, usually 12 months to 60 months to pay it off. It is quickly approved, mostly within two days and if you have a good credit score, you can get your money within a day. Banks can even extend their loan amount to 40 lakhs which is a huge amount for you. So, the finance can go to the higher end which will benefit you from all angles. After you fill out your personal loan application and if it gets approved, money will be transferred within a few hours to your bank account. Banks often charge a low rate of interest which is another big advantage. The starting interest rate is 8.5 percent which is a very good number. It is very convenient to pay off your borrowed money because of EMIs and extended tenure of repayment. This will give you enough time to collect your interest and pay hr on time. What is the eligibility to fill out a personal loan application form? These are the minimum eligibility criteria: You should have completed at least 21 years of age to be eligible to fill out a personal loan application. Similarly, you must be less than 65 years old to be able to apply for a personal loan. Your income should be at least 25 thousand rupees per month if you are a jobholder. In case, you are self-employed, your salary should be 5 lakhs rupees per annum. You should at least have a work experience of about one to three years if you are a jobholder and two to four years if you are a business person. You should have a good credit score and a good credit history to fill out a personal loan application form. A credit score of 750 or more is ideal in your case. How to make your personal loan application better? The best thing to do is to clear off your previous debts on time. This is a good start towards building a good relationship with the bank and ensuring that you are regular at repaying. The second thing to do is to improve your credit score to 750 so that banks can quickly approve your personal loan application. You can even aim for a higher credit score to settle for a good deal. In addition, you can create a clean track record of debt-clearing to increase your ties with the bank and help you get your loan easily. It has been highly evident that individuals who had a better credit history and a good credit score, ended up with better interest rates. [B-02] Summing it up Interest rates play a major role in deciding which bank you should look for when filling out your personal loan application. While the starting interest rate is 8.5 percent, some banks charge much higher. You have to make an informed decision by talking to your bank executives and financial advisors. To keep yourself updated with your EMI payment and interest rates, start using a Personal loan EMI calculator. It is a simple, user-friendly, handy, online device that gives you estimates of your loan status. You just have to put your principal loan amount, rate of interest and tenure of repayment and the tool calculates and shows you the result in no time. If you like reading these types of articles, blogs and write-ups that talk about personal loans, finance and investment, then visit Piramal Finance. They have similar content and services which you should have a look at.
08-11-2023
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Personal Loan

What are pre-approved personal loans: Everything you need to know

Have a good credit history, clean bank records, and a good repayment frequency? Then, you would be glad to know that you might be a potential individual for a pre-approved personal loan. Like a personal loan, you can borrow money and pay it back at a higher interest rate. However, a pre-approved personal loan is quite different in other terms. This article focuses on everything about pre-approved personal loans. First, we discuss a pre-approved loan, its features, eligibility, and how to apply. [B-01] What exactly is a pre-approved personal loan? A pre-approved personal loan is a type of short-term credit that banks offer you in advance because of your good bank track record. You might be a decent candidate if you pay off your instalments on time, have a good credit score, and repay your old dues. It helps you cover up your ends and pay the returns in EMI. It is a way through which banks promote their loan-providing scheme by giving loans to their good customers. Banks try to offer this scheme to their customers who have a proven track record, and they are sure that these customers can pay it off. Even the best personal loan schemes don’t have the extra benefits that pre-approved loans provide. What are the exclusive features of a pre-approved personal loan? Here are some exclusive features of a pre-approved personal loan: No paperwork Since banks offer you this deal from their side, they know your complete history. So, they don’t ask for any paperwork while handing you the loan. Immediate processing The processing is immediate and is often sanctioned in less than a day. Since there isn’t any paperwork, processing your loan will take very little time. Quick approval In terms of approval time, it is even faster than the best personal loan. It doesn’t even take a day for your loan to be approved and processed. What are the benefits of applying for a pre-approved personal loan? High flexibility You are given the option to tailor your tenure of repayment. For example, most banks provide you with 12 months to 60 months to repay the loan in small instalments. Instant processing You get the money in your hands within some hours without any delay because banks know your potential. No documentation Since banks have allowed you to apply for a pre-approved personal loan from their side, they don’t need any further documents. No paperwork Similarly, since banks know your credit history and track record, they don’t need any paperwork, either. Low-interest rates As it is not your call, banks will provide you with a lower interest rate and even cut that into small instalments throughout a set period. High convenience In a pre-approved personal loan, you don’t experience any hassle, so you are convenient enough to take the loan and pay it off quickly. Since the bank’s scheme promotes their loan system, they tend to reduce the interest rate so you can quickly repay. Special discounts Banks will provide you with special discounts if you have an excellent credit score and good loan history. For example, you might get passed by the application cost or get the loan at a reduced interest rate. What is the eligibility to apply for a pre-approved personal loan? There are a few requirements to be able to apply for a pre-approved personal loan. Banks already know your potential. They have allowed you to take it up in the first place. Banks would consider a good track record as the most crucial eligibility bar. If you are still waiting to receive a notification from the bank and are eager to know whether you fit into the eligibility, contact your bank. Then, visit your bank’s official website, log in to your account, and check if you have qualified for it. How to apply for a pre-approved personal loan online? Here is how you should apply for it online: Visit the bank’s official page where you have decided to get your personal loan. Log in to your bank account by adding your account credentials. See the “offer” section and see if you qualify for the minimum eligibility to apply for a pre-approved personal loan. Now submit an online application by entering your basic details, which you can get from the SMS, branch office, or mobile application. Choose the loan amount you feel is right for you and the period you will take to repay the loan. The bank will verify your application and sanction the loan in less than a day. This process is quicker if you already have an invitation from the bank. This invitation can be received through an SMS or an email on your device. [B-02] Summing up A pre-approved personal loan can open doors for you to finance a marriage, buy a home or pay off your debts. It is an effective way to undergo significant transactions at a time. You can use a pre-approved personal loan calculator to calculate the interest rates at different intervals. This will help you keep an eye on the updates of your loan and help you get your estimates. If you like reading similar articles, you should visit Piramal Finance‘s official page. They have highly engaging content regarding pre-approved personal loans, investments, and all financial-related schemes.
08-11-2023
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Personal Loan

Complete Guide on Personal Loan Prepayment Calculator

When you acquire a personal loan from a bank or credit union, you might have the option to pay it off earlier than the term of the loan. This indicates that you can pay off the loan’s principal as well as any interest that has accrued before the end of the loan’s term. To exercise this option, you must have already made a few payments toward the personal loan. Find out if the bank offers personal loans that can be paid off early and if there is a penalty for doing so before making a final decision. When you make a prepayment on a personal loan, you pay back all or part of the loan before the due date. Customers can save substantially if they repay their loans ahead of schedule. You can determine the impact that making early payments will have on your balance by using a personal loan prepayment calculator. [B-01] How does a prepayment calculator help you with your loan? There are two ways to pay off a personal loan early: in full or in part. A personal loan prepayment calculator is a web-based tool that can help you figure out the EMIs you’ll have to pay each month on your loan balance. It figures out your exact EMI by taking into account your loan amount, interest rate, the amount of your partial payment, and the length of your loan. You can also use this calculator to figure out things like: Discounts on monthly interest payments Prepare for pay reductions and promotions Calculating EMIs by hand may be difficult and time-consuming. But by using an online loan prepayment calculator, you can get off to a good start. Prepayment calculator for personal loans In the middle of a worldwide epidemic, borrowers need to pay off any personal debts as soon as possible. Personal loans are great for buying big things and handling financial emergencies, but the borrower should do everything possible to pay off as much of the principal as soon as possible. Since the future is hard to predict, it makes no sense to lose the money in interest. When a loan is paid off, the borrower can ask the bank that gave them the loan to close their loan account. After putting in the necessary information, the personal loan prepayment calculator from the lending institution would give the closing cost. How Do I Use the Prepayment Calculator for a Personal Loan? This article provides a comprehensive guide on how to get a personal loan and make early loan payments with a calculator. Here’s how you can use the personal loan prepayment calculator to calculate how much you pay and the amount you save on prepayment. Enter the amount that you would like to borrow as the first step. After that, the length of the loan can be specified in either months or years. The next step is to key in the desired yearly percentage rate. Right now, you are responsible for the initial portion of the down payment. Enter the remaining number of months on your payment. Enter your prepayment amount After entering all of the information shown above, you will be presented with an accurate estimate of the amount you will save on your loan. The loan prepayment calculator will provide you with the updated payback plan as well in case of partial prepayment. What are the upsides of prepaying a personal loan? Consider the following benefits of debt repayment: Reduced Amount Paid in Interest To begin, you can make a complete pre-payment on the loan balance at any moment during the period of the loan. If you follow this course of action, you may be able to reduce the amount of money you spend on interest payments. The repayment period for a personal loan is typically one calendar year. After that, you will be able to settle any outstanding obligations by paying the total amount due. If you pay off your loan before the conclusion of the loan’s term, the total amount of interest that you will pay will be lower. Reduced EMIs If the amount of money you have available is less than the total amount of the principal that is still owed on the loan, you are eligible to make a partial prepayment on the loan. You can make multiple partial prepayments to reduce your EMIs as well as your interest rate. If there are fees associated with paying off a personal loan early, then even a small amount paid toward the principal will not make a significant difference. Better Credit Score Your credit score will improve even if you prepay your loan. Even a partial prepayment will increase your credit score. A good credit score is important for getting loans in the future. People should try to borrow as little money as possible and pay it back as quickly as they can for better financial health. So, whenever you get a chunk of money you can spare, put it towards the prepayment of your ongoing loan. [B-02] Conclusion You should now have a good idea about using the loan prepayment calculator and how it works. Paying off a personal loan early has long-term benefits that go beyond lowering the total amount of interest you have to pay and reducing your debt. It can be hard to figure out these EMIs by hand, but if you use an online calculator, you can do it in no time. If you do it regularly, you can use this method to keep track of your money and plan for the future. Visit Piramal Finance if you are considering a personal loan and want to know more about the EMIs that will be due.
08-11-2023
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Personal Loan

What Could be the EMI for a 5 Lakh Personal Loan?

Need to pay some bills right away that you didn’t expect? Want to go on that trip you’ve been planning for a while? Or are you just thinking about making some changes to your home? You can borrow five lakhs on your own. You can get a personal loan online for up to 5 lakh and use the money however you want. With the Personal Loan EMI Calculator, you can also figure out how much you’ll have to pay monthly for a personal loan. You should meet the specific requirements for eligibility before applying for a personal loan online. [B-01] ₹5 Lakh Personal Loan Eligibility Criteria You must fulfil the requirements listed below to apply for a personal loan online of Rs. 5 lakh: You must be self-employed or a salaried professional employed by a reputable public or private organisation. Note that the minimum income requirements can vary based on your area. You must make a minimum of 25,000 each month. You must have at least two to three years of business and work experience. At least 21 years of age is required. How Do I Apply for Personal Loan Online? You can apply for a personal loan online of Rs. 5 lakh by doing the following: Step 1: Go to the “Apply Now” section of the personal loan page and give your contact information and some basic information about yourself. Step 2: Choose the lending company and the loan amount you want. Please remember that the most you can get will depend on whether or not you qualify. Step 3: You must send in the application form and all the necessary paperwork to be checked. Your loan amount will be credited to your bank account once you apply for a personal loan online that has been approved and your supporting documentation has been examined. How to Calculate EMI Amounts? With the personal loan EMI calculator, you can quickly and accurately figure out how much your EMIs will be for different loan terms. At an annual interest rate of 11.99%, the EMI for an Rs. 5 lakh personal loan is Rs. 44,442 for a one-year loan term, Rs. 23,534 for a two-year loan term, Rs. 16,605 for a three-year loan term, Rs. 13,164 for a four-year loan term, and Rs. 11,120 for a five-year loan term. Personal Loan Up to 25 Lakh Rupees Let’s say you meet all the qualifications and have all the paperwork you need for a personal loan. It gives out loans to individuals for up to Rs. 25 lakhs. So, if you need money for your child’s college education, a wedding, a new business, or urgent medical care, a personal loan is the best way to pay for it. Flexible Repayment Terms and Affordable Interest Rates Competitive interest rates for personal loans begin at 11.99%. You can also choose how long you want to take to pay back your Rs. 5 lakh personal loan, anywhere from 12 to 60 months. It makes sure that you make every payment during this time by giving you manageable EMIs. Before making a formal loan request, you can choose how much you want to pay each month. Rapid approval of personal loans Check your eligibility conveniently. Calculator for personal loan eligibility Enter your information when you apply online Send all the required documentation and wait for clearance. Applying for a personal loan online takes 24 to 72 hours. Your Rs. 5 lakh personal loan will be transferred to your chosen bank account as soon as permission is received. Documents Needed for a Personal Loan of ₹ 5 Lakh To be approved to apply for a personal loan online of ₹5 lakh, you must produce the following paperwork: Two photos of the size of a passport You can use a driver’s licence, a recent phone bill, a passport, or a voter identification card to prove your address. Identity proof includes Aadhar cards, PAN cards, passports, and voter ID cards. For salaried workers, three months’ worth of bank statements. If you work for yourself, you must bring a copy of your business licence and registration certificate. Personal Loan EMI Calculator’s Advantages Here are some benefits of applying for a personal loan online with an EMI calculator. Pick a flexible loan term Compare your monthly loan payments (EMIs) for different loan terms to figure out which is best for your finances. Choose a shorter term if you are willing to pay more EMI and want to pay off your loan faster. On the other hand, you can always choose a longer term. Check the repayment plan. The personal loan EMI calculator also breaks down your plan to repay the loan. By doing this, you can figure out how much of the loan’s principal and how much interest will still need to be paid. Check EMI info Using an EMI calculator, you can check the schedule the bank gives you for making payments. You can also use a calculator to figure out how much you have to pay upfront for the processing fee. Time saver Using a calculator, you can calculate EMI in under a minute. Also, EMI calculators are very easy to use and are always right. [B-02] Conclusion The 5 lakh personal loan EMI depends on how much you borrow, how long, and how much interest the bank charges. It is best to choose a personal loan EMI that fits your budget or the amount of money you make compared to what you spend. On the Piramal Finance website, you can read more blogs about what the EMI could be for a 5 lakh personal loan. Please also look at the things they sell and the services they provide. Now that you know everything you need, you should read the information above carefully to understand it better.
08-11-2023
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Personal Loan

Top 10 Important Documents Required for a Personal Loan

Personal loans are unsecured loans used to cover personal financial needs. These may include medical costs, holidays, education, weddings, and so on. Personal loan documents vary depending on whether applicants are salaried or self-employed. About Personal Loan A personal loan does not need collateral and is available with little paperwork. This loan can be used to meet any valid financial need. You must return it in line with the terms agreed upon with the bank. Typically, this might range from a few months to several years. [B-01] Benefits of a Personal Loan Finance Personal loans’ approval procedure is rapid. This is how it is different from other sorts of loans. Other types of loans include home loans or gold loans, which require more paperwork. Several financial institutions provide personal loan digital services. If the lender is sure you can pay back the loan, the money is sent to you within a few hours. Another key feature of a personal loan is that lenders allow you to pick your loan term. Personal loans often have terms ranging from 1 to 5 years. You may choose the loan period based on your repayment ability. You should choose a shorter loan term to save money on interest. This would even allow you to repay the debt faster. Documents Needed for Personal Loan Finance 1. FOR SALARIED EMPLOYEES Proof of identity (any one of the following): PAN Card Passport Aadhaar Card Voter’s ID Driver’s License Proof of address (any one of the following): Telephone or electricity bill Passport Aadhaar Card Driver’s License Ration Card Proof of income: Salary slips for the past 3 months Bank statements Proof of taxes paid: Form 16 IT Returns for the past 2 years Proof of ownership of the residence (any one of the following): Documents of property Utility bills, i.e., the electricity bill Bills of maintenance charges Job continuity proof (any one of the following): Certificate of current employment Appointment letter for current job Certificate of job experience Passport-sized color photographs are also needed. 2. FOR SELF-EMPLOYED APPLICANTS Personal loan documents needed by employed individuals and self-employed applicants are the same. It is only different with proof of employment and proof of income. Proof of the existence of business: Proof of business registration Registration license for business GST registration slip Proof of income: IT returns of the past 2 years Tax audit report The balance sheet of business Profit and loss accounts Bank passbook for the past year Essential Personal Loan Documents Some of the crucial personal loan documents you must submit include: Proof of income Proof of residency Certified copies of your diplomas and licenses (for self-employed applicants only) Other Eligibility Criteria for Personal Loan Finance Personal loans are available to the following individuals: The staff of private limited firms and public sector entities Employees between the ages of 21 and 60 People who have worked for at least 2 years, and at least 1 year with the present employer A monthly net income that is at least Rs. 25,000 How Much Can You Borrow Under Personal Loan Finance? The maximum amount you may borrow is determined by your income level, and career. The lender’s valuation of your proposal also determines your loan amount. In general, lenders approve loans based on their calculations. This way, the EMI does not exceed 40%–50% of your salary. Also, lenders assess if you have any outstanding debts when computing the loan amount. If you operate a business or work for yourself, the lender will base the loan amount on the profits recorded in your profit and loss account. If you are a salaried employee, the amount will be determined by your salary and other duties. Joint Personal Loan Finance There is a huge benefit to registering for a personal loan with a co-borrower. It is true that lenders will take both applicants’ income into account when fixing the loan amount. This implies you can apply for a larger loan. However, make sure your co-borrower does not have a poor credit record. If so, the lender may reject your loan application. Things to Remember Before Applying for Personal Loan Finance Personal loan interest rates are often higher than those paid for other forms of loans. This is because personal loans are unsecured loans. The interest rate on a personal loan might range from 10.99% to 22% per annum. A variety of criteria are considered when setting the interest rate on a personal loan. Some of these include the loan’s term, the borrower’s credit rating, and the ability to repay. A personal loan‘s payback period might range from 1 year to 5 years. Your credit score is an important factor in the acceptance of a personal loan. This is also known as a CIBIL score. To be qualified for a personal loan, most banks need you to have a credit score of 750 or above. When a bank or financial institution is unsure about a borrower’s ability to repay a personal loan, it is common for them to need a guarantor. If you sign up to act as a guarantor for a loan, you agree to be liable for paying personal loan EMI payments if the debtor is unable to do so. However, remember this before accepting to be a guarantor for a loan: late payments by the borrower have a negative influence on your credit score. [B-02] Conclusion Personal loans are the answer if you want to support a few expenditures with flexible repayment choices. To get more information, read more Piramal Finance blogs!
08-11-2023
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Personal Loan

The Most Important Benefits of a Personal Loan EMI Calculator

One of the most effective ways to decide whether or not you should take out a personal loan is by using an EMI calculator. EMI stands for equated monthly instalment, and by using an EMI calculator to determine how much money you would be paying monthly, you can determine if taking out the loan would be feasible. Here are some benefits of using an EMI calculator when choosing your personal loan needs and how you plan on paying it back. [B-01] A Personal Loan EMI Calculator Helps You Create A Monthly Budget When you’re taking out a personal loan, you’ll want to create a monthly budget so that you know how much money you’ll have available to use each month. It makes it easier to ensure that your expenses align with your income. However, this can be difficult if you don’t know the monthly payments on the loan. That’s where an EMI calculator comes in handy. The EMI calculator is an invaluable tool for people looking to take out a personal loan because it lets them see how much their monthly payments will be depending on their interest rate and the length of the loan term. For more information, click on the 5 Advantages of Using a Personal Loan EMI Calculator (fullertonindia.com). A Personal Loan EMI Calculator Helps You Understand the Total Cost of the Loan A personal loan is often the most flexible and popular way for individuals to get funds to help pay for big-ticket items or other unexpected expenses. But it’s important to understand that taking out a loan will come with certain costs in the form of interest rates and monthly payments. A personal loan EMI calculator can help you calculate these costs, giving you an idea of your total cost after making monthly payments on the loan. A personal loan EMI calculator inputs variables like interest rate, total amount borrowed, and the months you plan to make monthly payments. After this information is inputted, the calculator estimates your monthly payment and how much total interest you’ll end up paying on the loan. Read The Importance and Benefits of Using a Personal Loan EMI Calculator – (onebythefive.com) for more information. A Personal Loan EMI Calculator Helps You Choose the Right Loan Amount A personal loan EMI calculator can help you make the best decision when choosing the right loan amount. With one of these calculators, figuring out how much you can spend per month is easy. All you need is your desired monthly payment, the rate of interest on your loan, and the length of your loan term. The calculator will then provide an amortisation table that breaks down how much money is being paid back each month and how much is left for other things. A Personal Loan EMI Calculator Helps You Choose the Right Loan Tenure When looking for the best personal loan, there are numerous factors to consider. But one critical factor is tenure. It determines how much interest you’ll have to pay and is an important consideration. A personal loan EMI calculator can help you choose a suitable tenure. It helps by telling you how much your repayments will be, based on your total loan amount, interest rate, and term. This way, you can choose the most affordable one for your budget without worrying about whether it will be more expensive in the long run because of higher monthly repayments. A Personal Loan EMI Calculator Helps You Compare Different Loans There are so many loans available to consumers that it can be challenging to know which is best for you. One way to compare different loans is using a personal loan EMI calculator. This calculator helps you compare how much money you’ll have at the end of your loan term if you take out two different loans and make regular monthly payments. It also takes fees into account, making it easy to see which loan will be more beneficial in the long run. A Personal Loan EMI Calculator has an Easy-to-use Interface One of the benefits of personal loan EMI calculators is their easy-to-use interface. It is so simple to use and understand that even those unfamiliar with financial terms can benefit from it. You will not be required to complete complex calculations to get your monthly repayment amount. You have to enter the amount, rate of interest, and duration of the loan, and the calculator will do all the calculations for you. A Personal Loan EMI Calculator Enables You to have Better Control Over Factors Affecting EMI Getting a personal loan can be a good option for some people. But it’s essential to understand the advantages and disadvantages before you sign on the dotted line. One factor that may affect your decision is the monthly payment you need to make for the loan. Some loans come with fixed rates, while others have variable rates that fluctuate with inflation or other economic factors. The only way to determine which repayment plan would be best for you is by using an EMI calculator. This personalised tool will calculate both the monthly payment and total interest you’ll pay during your loan tenure based on variables like interest rate, term length, and other costs associated with borrowing money. [B-02] Conclusion A personal loan EMI calculator is essential for anyone who wishes to calculate their EMIs before applying for a personal loan. With the help of an online calculator, you can quickly determine your monthly instalment and the total amount you have to pay. This process not only ensures that you can keep track of your payments but also helps you stay on budget regarding how much money you owe. To gain first-hand experience with a personal loan calculator, visit PersonalLoan (piramalfinance.com).
08-11-2023
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Personal Loan

Complete Guide on How to Calculate Personal Loan Interest Rate

Do you need a calculator to estimate your monthly payments to better budget? The monthly personal loan payment depends on the loan amount, interest rate, and tenure. But do you know how to calculate it? The personal loan interest rate calculator helps you calculate the returns from the monthly loan payments. In this article, we will discuss the Personal Loan Interest Rate in 2022. [B-01] What is a Personal Loan Interest Rate Calculator? A personal loan is a form of borrowing that does not require collateral. It has several potential uses. You can pay for unexpected expenses, a wedding, or making house repairs or improvements. After obtaining a personal loan, you will have to make monthly payments. It is known as Equated Monthly Instalments or EMI. This EMI amount will be applied to the principal and interest throughout the loan’s repayment term. What Are the Factors Affecting Personal Loans? The following three variables influence the monthly payments of a personal loan. The loan’s principal, denoted by P. The amount of the personal loan is directly correlated to the amount of the corresponding monthly payment. When you borrow more money, your payments will reflect that. The monthly interest rate, denoted by R. The percentage by which the lenders add interest to the initial principal amount is known as the ‘relevant interest rate’. The EMIs go up when the interest rate goes up, and vice versa. Loan terms, denoted by N. The time frame is inversely proportional to the EMI amount. The EMIs decrease with a longer term and increase with a shorter one. In the next few paragraphs, we will be covering the following topics. Personal Loan Interest Rate calculators. Personal loan calculation formulas. The methods for determining EMI. How Do I Use a Personal Loan Interest Rate Calculator Online? To determine the monthly payments required to settle a personal loan, borrowers can use an online loan calculator. A borrower can use a free personal loan calculator to enter their desired loan amount, loan term, and interest rate. The calculator takes this information to determine the interest due, the EMI, and the loan balance. However, one should have a fundamental understanding of the EMI of a personal loan before using this tool. How Do I Determine My Monthly Instalment on a Personal Loan? The formula for calculating your personal loan’s monthly instalment is as follows. P x R x (1+R) / N = EMI. / [(1+R) N-1]. The formula for calculating a personal loan includes three variables P, R, and N. They make up the EMIs. P represents the interest paid on the principal. R represents the annual percentage rate. N represents the amount of time a loan is in effect. To better grasp the above formula, please refer to the following example. Let’s say the principal or amount borrowed is INR 10,000. The yearly interest rate is 10.5%. The interest rate is computed monthly using the given formula. Therefore, R = annual interest rate x 12 / 100. The interest rate here is 10.5% per annum. Therefore R = 10.5 x 12 / 100 = 0.00875. The estimated monthly cost of the personal loan interest rate is INR 13,493. Therefore, you must make 120 monthly payments of INR13,493 to repay the loan completely. A total payment of INR 13,493 x 120 is INR 16,19,160. Therefore, interest on the purchased debt totals INR 16,19,160. Advantages of Personal Loan Interest Rate Calculator Now we will look at some advantages of using a Personal Loan Interest Rate calculator. The EMIs can be managed within the monthly budget. A Personal Loan Interest Rate calculator can help a borrower determine their exact monthly payment obligation. This allows customers to plan out their monthly budget for the loan duration. They can thus ensure that the EMIs are readily covered. Thistoolhelps you experiment with different loan amounts, interest rates, and repayment periods. This facilitates the borrower’s ability to choose an appropriate loan amount. They can ensure they are not negatively impacting their current financial situation or way of life. Keeping a good credit score Before taking a personal loan, borrowers should figure out how much they can pay each month. This will be an additional aid in their timely loan repayment. Their EMI instalments will be made on time. As a result, the credit scores will be high. Faster and more precise findings The complex calculations are done quickly and accurately by the Personal Loan Interest Rate calculator. When EMI is calculated by hand, mistakes are possible. But, using this tool eliminates the possibility of such mistakes, leading to reliable outcomes. Accessible and easy to use You can easily find and use a Personal Loan Interest Rate calculator on the internet. You can easily calculate the monthly payments. Just enter the loan’s principal amount, term, and interest rate. This means that consumers can quickly figure out their monthly payments anytime. Determining your budget with the help of a Personal Loan Interest Rate calculator. After that, you should learn the necessary steps to obtain your finances. [B-02] Conclusion Whether an investment is the best choice for you should be determined carefully. We provide unbiased information and evaluations on trading, investing, and finance. Visit Piramal Finance for more in-depth finance-related articles.
08-11-2023
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