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Personal Loan

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

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

08-11-2023

Other

All Things Pension

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

08-11-2023

Personal Loan

Best Tips to Repay the Personal Loan Faster

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

08-11-2023

Personal Loan

How to Finance Home Renovation Using a Personal Loan

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

08-11-2023

Other

Pros and Cons of PPF in India

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

08-11-2023

Personal Loan

Common Myths About Personal Loans

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

08-11-2023

Personal Loan

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

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

08-11-2023

Personal Loan

Top Reasons Why Personal Loan Demand is Increasing

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

08-11-2023

Personal Loan

Is It Safe to Apply for a Personal Loan Online?

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

08-11-2023