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Personal Loan

Personal Loans For Low-income Individuals

Any established financial house provides an option for a personal loan, that persons can avail of. The eligibility depends on several factors including disposable income, employment status, etc. that will be discussed in this article in detail. However, the chief determining factor is the borrower’s capacity to pay the monthly EMIs. Hence, availing of personal loans for low-income may seem to be challenging. But if an individual meets the minimum requirements set by the bank, they can successfully borrow money from any financial establishment. This part of the article will discuss, in detail, what makes a person eligible for low salary personal loan. One has to keep in mind a person’s employment status is a top priority when processing a loan. If they have a high salary, the loan amount they can borrow is proportionately higher. [B-01] There is a lot of emphasis on their ability to repay the loan. So, even if a person comes from a low-income background, they need to have a stable source of income. They can be government, MNCs, private, or a public sector employee. Here are some other primary conditions one has to fulfil while applying for a personal loan for low-income earners. Eligibility criteria for a Low-Salary Personal Loan The nationality of the borrower should be Indian. Their age must be between 21-60 years. Work experience of one year is necessary (six months of mandatory work at the current organisation). The minimum credit score requirement is between 720-750. Hence, one has to pay off any dues on time to maintain a good credit score. Can Self-employed People apply for Low-salary Personal Loans? Self-employed persons can take a personal loan once they meet the bank’s minimum income criteria. The said amount varies from city to city. The rest of the requirement is the same as employed people. The bank may also require the person to produce financial documents as proof of steady income. What are the documents required to apply for a Low-salary Personal Loan? The necessary documents to apply for a personal loan for low-income individuals are as follows: Personal loan application form, with the necessary details filled in. Identity and age proof. A person can use their KYC documents (PAN Card, Aadhar Card, Voter ID Card, passport, or driving license.) to prove the same. Address proof. The mentioned KYC documents, plus the electricity/utility bill, can serve as address proof. For employed persons – latest salary slips, along with form 16. And for self-employed persons – their Income Tax returns. Additionally, self-employed persons need to submit their latest bank account statements. Recent passport-sized photographs. Signature proof. List of Financial Houses that provide Personal Loans for Low-income Individuals: State Bank of India (SBI Express Credit Personal Loan Plan) This scheme allows persons with an income of fifteen thousand rupees to apply for a personal loan. The maximum loan amount is twenty lakh rupees under this scheme. To apply for this loan, the person has to have a salary account at any State Bank branch. Borrowers can only apply for a second loan after a gap of one year. They can borrow only after the repayment of the first loan. HDFC Bank Personal Loan This scheme allows a person with a net income of twenty-five thousand to apply for a loan. It comes with a lucrative interest rate. The eligible applicants must be at least 21 years of age. They must also have two years of work experience. IDBI Bank Personal Loan People with a monthly income of fifteen thousand rupees can avail of this loan. Applicants need to hold a corporate salary account at the said bank. As with other banks, applicants need to be more than 21 years to apply for this loan. Current borrowers can apply for a second top-up plan. What are the conditions one needs to keep in mind before applying for a Personal Loan for Low-income Persons? Most private banks offer an interest rate of 10.25% and a payment window of 12 to 60 months. Before applying for a loan, a person always needs to consider the interest rate. Whether or not they can afford it. There are several other charges involved, apart from interest. For instance, bank levy a late payment fee, if a person fails to make their payment on time. Usually, the amount is 2 percent per month. Additionally, late charges also affect a person’s credit score. Apart from that, banks also charge processing fees. It can range anywhere between 0.25% to 3.03% of the loan amount. Know more about Low-salary Personal Loans at Piramal Finance Piramal Finance offers personal loan plans with zero foreclosure charges. We provide expert advice and assistance to guide every individual through the application process. Some benefits of applying for personal loans at Piramal include: No charges for repayment or foreclosure. Quick approval of the loan amount. Nominal EMI rates. Flexible repayment time window, from 12 to 60 months. Borrow any amount between one lakh to ten lakh. The company allows clubbing of income so that one can be eligible for a higher loan. What are the eligibility criteria for a loan application at Piramal Finance Limited? Apart from the above-mentioned criteria, there are certain exceptions and additional conditions that a person needs to satisfy before applying for a personal loan – Only salaried individuals can apply for a personal loan. Salaried individuals working for the following institutions can apply for the loan. The institutions are as follows: Government Institutions, Private and Public Sectors, Partnership Firms, MNCs, and Proprietorships. The minimum income requirement is twenty-five thousand. Interested applicants can get in touch with the relationship manager by following this link. What are the Interest Rates and Other Charges? The interest rates are 12.99% per annum. As mentioned, there will be no foreclosure or repayment charges. To find out details about the charges associated with the personal loan process, click here. [B-02] Conclusion At Piramal Finance, a person can easily apply online for a personal loan with a salary as low as fifteen thousand rupees: Click on the link. Select “How to Apply?” Follow the link and fill-up the form. Enter the name, mobile, e-mail, and other necessary details. Enter the exact loan amount that is needed. Submit the form, to get in touch with their relationship manager.
08-11-2023
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Home Loan

All The Consequences You Need to Know If You Missed Home Loan EMI for One Month

A home loan enables people to buy their dream house without worrying about finances. But because of the large amount and lengthy tenure (typically 30 years) of home loans, many people need help to keep up with their home loan EMI payments. Despite their best efforts, sudden events like joblessness or medical expenses may lead to delayed payments. In such cases, missing home EMI payments may show effects later in the month. [B-01] What Happens Home Loan EMI Payments Exceed the Due Date? Missing EMIs may lead to the following consequences on one’s loan terms and fiscal profile: Credit Score Reduction All the financial practices of a person have an effect on their credit record. So, missed EMIs are also reported in the credit record, lowering the credit score. If the borrower has added a guarantor or co-applicant to their home loan, the credit history of the guarantor will also be affected. Also, defaulting on the loan may reduce one’s credit rating by 50-70 points, which is a huge dip in credit score. As a result, one may be disqualified from receiving more credit. Despite the dip, if one’s credit rating remains above normal but their profile shows defaults, creditors will still see them as a risky applicant. If one misses a home loan EMI beyond three days of the due date, it is termed a small default. One can recover from it by taking quick corrective action, such as making sure that they pay off all the delayed EMIs on the following deadline. By doing so, they can ensure that they are not charged the missed fee by their financer. Penalties for Late Payment Missing an instalment also results in late charges, disciplinary action (in certain situations), and additional penalties based on the terms of the loan and the lender. The missed payment charges are usually around 1%-2% of the outstanding EMI amount. Although the fine amount may seem small, the aggregate amount of several missed home loan EMIs might be huge. Reduced Chances to Transfer Balance Missed instalments may lower one’s prospects of transferring their existing loan balance to a new lender with a reduced interest rate. Because of their low credit score and default history, the potential lender may see them as a high-risk applicant. Non-Performing Asset Label Lenders send debt repayment alerts until the first two payments are received. But if missed home loan EMIs are not cleared within three months after the last payment, lenders classify the loan as a non-performing asset. Then, the lender sends the borrower a notice outlining the property’s worth, and they sell it to collect the pending debts after two months. The auction date is usually set one month after the notice is sent, allowing the borrower a total of six months until their home is auctioned off. What Would You Have to Do When Your Home Loan Is Delayed? If one fails to pay their home loan EMIs, the penalty fee is added to the entire loan balance. This means that the loan sum grows over time. In such situations, one must follow some tips to ensure that they find the right solution: Check with the BankIf one cannot make their EMI payment on time, they should inform their bank as soon as possible. The lender might allow some extension for the home loan EMI if the borrower has a stable settlement history.Banks try to understand the cause of any delays by speaking with their borrowers. If the problem is real, the bank will help by making allowances for potential delays. Get Professional HelpOne can find some financial counselling services that are offered for free. They help by analysing the client’s situation and guiding them by providing choices. A counselling program may also help create a budget to find out how to repay loans. They help with contacting and communicating with the lender about payment delays. Make a BudgetEven without utilising counselling services, one can analyse their finances and develop a plan on their own. One may need outside help with repaying the loans for the short term, but planning their finances can have long-term benefits.One can begin by reviewing their financial records; this involves estimating costs and revenue sources. This helps find out areas where one can cut spending, freeing up money for home loan EMIs. One must also check their insurance policy to find out if it covers job loss. Many insurance companies offer coverage for home loan EMIs for three months after losing a job, but the job loss must result from dismissal or sickness. The policy does not consider removal due to unsatisfactory performance.As a general practice, one must prioritise home loan payments over premium purchases because any delays in the former might lead to them losing their home. [B-02] Conclusion Loans are usually easily available. But before applying for a loan, one must carefully evaluate their financial situation and the capacity to afford the repayment. Missing home loan EMIs has several drastic consequences. As a result, one must ensure that they pay their monthly EMIs on time. To learn more about home loans, visit Piramal Finance. Make sure to check out their other services and products that answer a range of fiscal needs.
08-11-2023
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Home Loan

All the Charges you Need to Know While Applying for Home Loan

Banks currently offer housing loans with an interest rate of 6.65% per year. This may be the best time to buy a home with a home loan. But it would be foolish for the borrower to choose the bank with the lowest interest rate on home loans. The borrower must plan for extra costs in his budget because banks can charge the borrower some of these fees at any time during the loan’s term if they need to. [B-01] Charging while applying for a housing loan Administrative charge for housing loans This is similar to the processing fee, but with a different price. Some banks charge a single processing fee. Some might divide it into separate processing or administration costs. The first is assessed before loan approval, and the second is assessed following loan approval. GST on a housing loan When you get a housing loan from a bank, they provide you with several “services”. These are subject to the Goods and Services Tax (GST) regime. GST is paid upon process costs, administrative fees, technological and legal assessment fees, etc. The loan value is not taxed. Fees for housing loan documentation The paperwork fee that lenders might charge for completing all the paperwork and enabling the electronic clearing service ranges from Rs 500 to Rs 2,000. (ECS). In addition, there is a cost for documentation. The borrower delivers the original selling documents to the bank following the sub-registration in the registrar’s office of the deed. This document will then be sent from the bank branch to a central place. You are responsible for keeping it safe throughout the loan. To complete this entire procedure, banks frequently engage outside assistance. This increases their costs. The person who borrows money is responsible for paying this fee. Charges for credit reports Your credit score will determine whether the bank approves your request for a housing loan. If you ask the bank for a copy of the credit report generated by the credit bureau to evaluate your chances of being approved for a loan, the bank might charge a fee. Fee for extending the term of a loan Consider the fact that you could afford the monthly EMI because you selected a 15-year payback period. If you need to extend the tenure because of a salary reduction or another financial hardship, the bank will charge a fee. If you shorten the tenure, the same applies. Late payment fee for EMI The borrower must send in EMI instalments on time. Failure to act promptly would result in default and financial penalties. Some banks may charge a set fee as a penalty, while others may charge a set percentage of the total amount of the past-due payment. Incidental fees for mortgage loans To cover the risks in the event of defaults, banks may also require the borrower to pay an incidental fee. It may impose incidental charges and expenditures to recoup the fees, charges, expenses, and other monies that may have been used in connection with recovering debts from a failing client. Fees for the account statement for a house loan You may move your mortgage to a new bank if you quickly learn that it provides superior services at a cheaper interest rate than your current lender. The new bank will initially review your repayment history to decide whether to approve your request for a house loan transfer. Find your local bank to obtain a written confirmation if you still need one. The bank charges a nominal fee for this service. Make copies of the original document and store them somewhere secure for future use as well as reference. Housing loan down payment This is the first time you’ve given money out of your pocket. When you apply for a home loan, you should be aware that the lender won’t give you the full worth of the home. If your property is worth Rs 80 lakh, you may be eligible for a loan of Rs 60 lakh or Rs 70 lakh. This is due to the LTV ratio (loan-to-value). All banks and NBFCs are required to abide by LTV ratios set by the RBI. You can make a question to banks and NBFCs. A mortgage loan could be evaluated using an EMI Calculator. The processing of home loan charges Nearly all lenders impose home loan charges. This is for completing your loan. Financial organisations assign varying values to processing costs. Some charge this fee for a fixed period. Some charge it as a percentage of the loan total, ranging from 0.5% to 1%. According to information that can be found online, the processing fee is 0.4% of the loan amount. The processing charge for an HDFC Home Loan is 0.5% of the loan amount, with a minimum of Rs 3,000 and a maximum of Rs 10,000, much like other loan kinds. Some lenders periodically waive this cost for home loans and other types of loans. Typically, this occurs over the holiday season. Other Charges There are further charges for a mortgage. This includes fines for making late payments, switching fees (charged if you move a loan to a different lender), overhead charges, and legal expenses. Many lenders give a list of fees borrowers and house buyers should pay whenever they apply for a loan. If the charge list is not immediately available, it is best to check with the lender and then get it. Additionally, annual service fees and expenditures for property inspections are charged by financial institutions. Although since you must pay these costs upfront, you may be able to negotiate a lower rate with the lenders. You collaborate with a financing agent as well. Consequently, you can also be required to pay for them. [B-02] Conclusion When you agree to a house loan, there are additional expenses on top of the equal monthly instalments (EMI). Between lenders, these costs will vary (banks, housing finance companies and non-banking finance companies). In addition, some lenders may bill fees differently, while others lump fees from various lenders together. These extra charges will raise the total cost of the loan. Therefore, it is imperative to be aware of them. To know more about these you can visit Piramal Finance and make an informed decision.
08-11-2023
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Home

5 Costs to Consider When Planning a Home Renovation

Setting a budget for a home renovation project may be hard, even if it’s your first time. The price of house renovations depends on what you’re doing, where you’re doing it, and whether you’re doing it yourself or hiring an expert. Other cost factors, such as the size of the space and the items you’ll be using, should be taken into account in your budget. Clients searching for funding to restore, repair, or enhance their property may apply for home renovation loans, often known as home repair loans. Both new and existing customers may apply for financing for home improvements. The major banks, non-banking financial institutions (NBFIs), and housing finance companies (HFCs) provide this credit as a unique offering under the more broad category of home loans or as a part of their standard home loan product. [B-01] What is a home renovation loan? A home renovation loan is one of the ways homeowners can get renovations done without putting a strain on their pockets. Mortgage loans for fixer-upper residences often come with a portion meant for home upgrades, primarily because renovations add to the core value of the house. Renovation loans are based on the estimated value of your home after the improvements. You are qualified for a raise based on the predicted increase in house value brought on by the suggested improvement, the loan amount, and the interest rate. When to Consider a Home Renovation Loan? Process an application for this financing if you’re interested in buying and remodelling a home. Personal loans and cash-out refinances are two more funding choices for home upgrades. If you want to use some of the equity in your house to fund a remodelling project, you may use cash-out refinancing. Home equity loans are yet another option for financing house repairs. One advantage of a home equity loan is that because each payment is paid to the loan’s principal, you would immediately start to rebuild your value. Benefits of a Loan for Home Renovation The cost of modifications, like installing or upgrading heating and cooling systems or remodelling your kitchen, may be covered through loans for home improvements. These changes may raise the property’s worth. Buyers may create more equity than they could otherwise when buying a move-in-ready home. With renovation refinancing, you may alter the terms of your existing loan and take advantage of low-interest rates. You may borrow more money at a cheaper interest rate without increasing your mortgage payment each month. Given the shortage of homes nationwide, remodelling is a better alternative than purchasing. Eligibility for Home Improvement Loans Citizens of India may be eligible for home renovation loans. NRIs may also get loans for house improvements from many lenders. Age: Home renovation loans are only available to new applicants or current borrowers who are 18 years of age or older. Lenders often demand that borrowers repay their home improvement loans by the time they turn 70. Anybody working on a salary or who owns a company may apply for a home renovation loan. Borrowers can also improve their chances of getting a house loan by choosing a longer loan term, adding co-borrowers, or providing an extra source of income. Credit Score: Borrowers with credit scores of 750 or above are more likely to get approved for a home renovation loan. For candidates with better credit ratings, lenders also offer home renovation loans with cheaper interest rates. 5 Things to Keep in Mind When Considering Home Renovation Costs Let’s go through the important considerations again when estimating the cost of your home repairs. Even if more things, like fixing problems you didn’t expect, will affect how much you spend in the end, you should still use these five criteria to make your budget. The scope of the work The cost of remodelling a half bath will be less than that of a full bath and less than that of remodelling the whole house. Also, if you want to knock down walls, alter the floor plan, or expand square footage, you’ll need to set aside more money. The first step in calculating the cost of home remodelling is defining the specific scope of the job. The cost of more projects, including kitchens and master baths, will always be higher. The dimensions of your room For obvious reasons, smaller areas often result in lower refurbishment expenditures. The more space you have to deal with, the higher your restoration budget will be. Depending on the size and where you live, you’ll need to budget anywhere from $10 to $60 per square foot. The state of the building The condition of the home is crucial. Renovation costs are almost always higher for older properties. The same is true of homes that previous owners neglected to maintain or of outdated, worn-out machinery. Before estimating the cost of home improvements on any property, a comprehensive inspection is required to find any conditional factors influencing your bottom line. The place you live Renovation costs grow in correlation to local real estate prices. Your remodelling budget will be affected by regional variances, with high-priced neighbourhoods often having 20% greater renovation costs than other places. Design and materials One of the key factors affecting the cost of home remodelling is how the space is used. It’s also one of the easiest to change if required. Your project’s budget should include a rough estimate of how much you’ll have to spend on cabinetry, flooring, and windows. If the cost of remodelling your house exceeds what you want (or can afford), look for alternate materials and design ideas to lower the cost. [B-02] Conclusion House remodelling is a difficult and expensive process. So having a lovely house could make you happy. You could be thinking about whether it would be better to purchase a new house or make changes to your present one now that you know the expenses involved. In certain cases, buying a new home is cheaper than remodelling an old one. A home renovation loan offers several benefits for revitalising your house. To learn more about these, you can visit Piramal Finance for more details.
08-11-2023
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Personal Loan

10 Best Instant Personal Loan Apps in India

A personal loan is a kind of urgent loan that you might use when you run out of money. Such debts have no end-use limits. Hence, the funds may be used for anything. This includes weddings, trips, and medical bills. It acts as a comfortable financial cover for you. Thus, the next time you need money, check out the following personal loan app options in the app store. [B-01] 10 Apps Best Suited for Personal Loans 1. Buddy Loan It is one of the finest fast loan apps for getting quick personal loans starting from Rs. 10,000 to Rs. 15,00,000, and you will not have to wait very long for approvals. The best part is that this system is known for approving requests quickly. So, you will not need to worry about running short of time. It is one of the best personal loan apps because there is no need to ship or scan papers to apply digitally. Also, they offer a variety of low-cost EMI choices that make loan payments simple and easy. As the paperwork has already been completed, getting a second loan is as simple as pressing a button. 2. Navi Navi is also an instant lending system that offers rates ranging from 9.99 % per year for terms up to six years and loan sums up to Rs. 20 lakhs. You may get a virtual personal loan with no processing costs using the Navi app to address financial crises, wedding costs, health bills, etc. The greatest part about this tool is that it reduces the need for paperwork since PAN and Aadhaar cards are used in the loan request procedure. The loan may be approved in less than ten minutes and deposited promptly into your bank account. This digital app provides easy, mildly priced, quick, and accessible banking services. 3. MoneyTap It is one of India’s quickest instant personal loan apps. MoneyTap makes it simple to get a quick loan. All you need to do is install the smartphone app. To begin, you must first install the app and enroll on the same site. After enrolling, you must complete the KYC paperwork and wait for approval. Following that, depending on your credit rating, you may get an instant loan of up to Rs. 5,00,000. You can use that amount to buy daily needs, delights, travel, and other items. The most significant part is that you won’t need to fill out a lot of paperwork or wait for a long amount of time. This makes MoneyTap one of the top personal loan apps in India. 4. Dhani Dhani, also known as the ‘Phone Se’ loan app, quickly transfers loan money to your bank account. You may apply for a private loan at any time and from any location. You may acquire a quick debt of up to Rs. 15 lakhs at a rate of interest of 12%. You may install the Dhani lending app for free, input your Aadhaar card number and desired loan sum, and the loan money will be sent to your account promptly. 5. India Lends It is among the most popular and premium lending portals for Indians. It offers many types of loans for various loan classes. India Lends assists you in getting the lowest interest rate from many banks and NBFCs. This makes it a common interest credit app. Aside from fast loans, you may also get gold loans with lower rates, property-backed debts, and so on. This personal loan app is also famous for offering credit cards, with over 40 different schemes and types to pick from. You may also assess your credit rating by simply submitting your PAN papers, which will allow you to pick your quick loan plan. This makes it, without a doubt, the financial services gold mine, with key data readily available on its platform. 6. NIRA NIRA is a fintech startup in India that gives credit lines to salaried workers. The personal loan given to you is in the form of a credit line with a credit limit ranging from Rs. 3,000 to Rs. 1 lakh. The debt term extends from three months to one year. Each withdrawal needs a minimum of Rs. 5,000. The interest rate charged on the loan sum is set by how much you take and when you return it. 7. Money View You may obtain an instant personal loan in as little as 2 hours with the Money View private loan app. A personal loan via Money View is 100% paperless, quick, simple, and flexible, whether you need it to modify your house, buy a costly vehicle, or pay wedding bills. Money View loans vary from Rs. 10,000 to Rs. 5 lakh. The payback term is adjustable, ranging from 3 months to five years. 8. mPokket In India, mPokket is a fast personal loan app for college students. This is based on the notion of student pocket money. When your loan application is accepted, the loan money is credited to your savings account or Paytm wallet. The first amount granted is Rs. 500, and your lending limit will rise over time if you use it responsibly. You have 1 to 3 months to repay your loan. 9. Home Credit Home Credit is a subsidiary of the global Home Credit Group, which works in 10 countries all across Asia and Europe. The India branch was formed in 2012 and now runs in over 60 locations across 15 states. Personal loans of up to Rs. 2 lakh are granted using this personal loan app, with payback terms varying from 9 months to 4 years. 10. Early Salary Early Salary, a Pune-based FinTech firm, is a personal loan app that makes it simple and quick to get rapid loans. The loan sum is limited to Rs. 2 lakhs, with interest rates starting at 2% per month. [B-02] Conclusion There are several personal loan apps in the finance industry. And, the number of fast cash loan choices has risen. This makes it simpler for you to get a loan quickly. Personal loan apps are enabling fast and affordable cash loans within India. Securing personal debt has never been easier. And, the prompt personal loan app installation process makes it even simpler. If you want to learn more about instant personal loans, visit Piramal Finance and explore their products and services.
08-11-2023
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Business Loan

Accelerate Your Revenue Growth With An MSME Business Loan

The term “MSME business loans” refers to secured loans made available by several lending organisations. These loans were made to help small businesses cover their credit-related business costs. MSME loans are the engine that drives economic growth. As a financial instrument, they help spread the country’s economic growth. MSME business loans give borrowers flexible options and short terms to repay the loan. Compared to conventional company loans, which require proof of a profitable business, those for MSMEs continue to be more flexible. Even if a business has good credit, it may still be eligible for a loan. [B-01] What is an MSME Business Loan? MSME business loans are unsecured loans for small businesses, startups, and women business owners. Some examples of these kinds of businesses are hardware stores, beauty salons, a restaurant, and a boutique. The only reason for MSME loans is to ensure these businesses can’t grow and expand because they need more money. MSME loans can be used for several different things. Borrowers can use these loans to buy goods, rent or buy commercial space, improve their business, and pay their employees. When is it a Good Idea to get an MSME Loan? Here are several situations where looking for a loan for a micro, small, or medium-sized enterprise could make sense: Buying property or land for a manufacturing plant Machinery and equipment Raw materials Payroll, expenses, and debts. You want to grow your business A small or medium-sized business can get a loan quickly and easily. Most lenders will give you the loan quickly if you have all the necessary paperwork and show you good credit. Many lenders can answer you in less than 24 hours, and the whole process is usually quick. Besides that, you can also check your account online. This makes it easy to find out about your loan. Why MSME Business Loans Are Important MSMEs play a big role in the supply chain. They account for about 40% of what India sells abroad. They also play a big role in creating jobs in the country. They hire 11 billion Indian people. More than half of India’s MSMEs are in rural areas, which is interesting. But MSMEs face many threats and challenges, even though they are an important part of India’s long-term growth. They need help to stay in business and grow. One of the most disturbing things they have to deal with is money. Most of them need help to get new tools and buildings. But this keeps them in their micro-cycle. A startup business loan can help small businesses face these challenges easily. MSME loans are the best way for most MSME businesses to get credit due to the following reasons: Accessibility MSME loans are simple to get. There are several ways for a small business to get an MSME loan. They can ask a public or private bank, a non-bank financial company (NBFC), or an authorised financial institution for an MSME loan. Since MSME loans are unsecured, lenders usually don’t ask for collateral or other security. If a company suddenly runs out of money, it could hurt its cash flow. A loan from MSME can help small businesses get cash when needed to keep their cash flow going. Small and medium-sized businesses can get MSME business loans quickly and with little paperwork. Keeping everything under control MSME loans enable small company owners to preserve full control of their companies. For example, if they try to get money from investors, they may have to give up some ownership of their business. MSME loans, on the other hand, are not the same. After giving MSME loans, lenders have no say in how the business is run. All they care about is that the money is paid back on time. Rates of interest Every penny matters when you are starting a business. The more money a business owner has, the more likely they will be able to take on risks and make a profit. MSME loans are made to help small business owners get the money they need by offering loans with low-interest rates. This way, they don’t have to worry about paying back a high-interest loan and can keep growing their business. How You Can Apply for an MSME Business Loan You can apply to the lender’s office for an MSME business loan. Or, you can fill out an online application. Here are the steps to get an MSME business loan in India: First, you must choose the company that will give you an MSME business loan. Then you’ll get an application form to fill out. Then you will need to give some basic information. This information includes your phone number, date of birth, and other details about you. For most MSME business loans, you have to fill out this information. The next step is to fill in information about your business and how much money it makes. You must give more information about your business than just your annual income. This will help the lender figure out if you qualify. The lender will also want to see your business’s PAN card and other documents. More questions will be asked about how your business works and how it is set up. Think about what you can do. The total loan amount will be set based on what you said above. This information includes your monthly payment, the interest rate, and other details. To finish your loan, choose a payment plan and offer from the finance company’s options. Once your loan application is approved, check the amount, the time you have to pay it back, and the information you need to give. After you are approved for the loan, the money will be sent to your bank account within a few days. [B-02] Conclusion India has a lot of resources. But for entrepreneurs to succeed, they need the right kind of help. MSME business loans can be a great way to help new small businesses in the country. These loans offer the opportunity to realise your dreams and show your full potential to the world. Piramal Finance has similar blogs about MSME business loans for aspiring entrepreneurs on its website. You can also take a look at the products and services they offer.
08-11-2023
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Home Loan

All the Important Factors you Wanted to Know About Loan Against Property

When we need money quickly, the first thing that comes to mind is getting a loan. We can get money immediately or meet our needs by getting a loan from a lender. But because there are so many loans, choosing the best one for our needs can take time and effort. Loans for things like homes, cars, businesses, etc., are meant to help you pay for those things, but they can’t help you in an emergency or if you have a pressing financial need. In these situations, you can apply for a loan that can be used for more than one thing, like a personal loan or a loan backed by your home. A loan against property is secured, while a loan for personal use is not. In this post, we’ll discuss the pros of taking out a loan against property and whether it’s a good idea. First, let’s talk about what a “loan against property” is. [B-01] What is Loan Secured by the Property? A loan against property is a secured loan. The lender gives you the money after keeping your property as collateral or security. This could be land, a rented home, or a business location. It’s important to point out that the borrower is still the legal owner of the property on which a mortgage loan is owed. It will only be used as collateral until the full loan amount is paid back. There are no rules about the usage of a loan against property. It is a great alternative to unsecured personal loans. You can use this for anything, like a medical emergency, higher college costs, or home improvements. Should you Decide on a Loan Secured by Property? When you apply for a loan against property, you have two options. You can choose between a personal loan or a loan secured by the property. Even though both have pros and cons, the second option may be better if you need a large amount of money. Benefits of Loan against Property No Ownership Transfer Even though you must put up an asset you own to get a LAP, the mortgaged asset does not change hands. Legally, your property is still yours, and the lender would only use it as security while you pay back your loan against the property. Low interest This is a clear benefit that puts LAP ahead of other choices. The interest rates on LAPs are lower than on personal and unsecured loans. Your EMIs may decrease because interest rates are decreasing, making your finances easier. Most LAP interest rates range from 8% to 15% per year and go down yearly. No limitations on usage Since LAPs are multipurpose loans, there are no limitations on how To use them. You can use a loan against property to fix up your house, pay for your child’s college, pay for a family trip, take care of an emergency medical situation, or even buy things online. Repay in a reasonable timeframe LAP lets you borrow a lot of money to repay your loan over time. LAPs usually last between 15 and 20 years, but it depends on the lender. You can choose how long your loan will last based on what you need and how much money you can pay back. Simple qualifying requirements and documentation LAPs often have basic requirements for who can get them and what they need to prove. Because they are secured loans, lenders don’t have to take on many risks when they give them out. On the other hand, personal and unsecured loans have strict requirements for who can get them and long verification processes. Factors to Take into Account When Applying for LAP Let’s discuss the things you must bear in mind when applying for it: The ratio of loan to value The loan-to-value ratio of your LAP will determine how much money you can borrow from a lender. It is also the ratio between the most you can borrow and the property value you want to use as collateral. Term of Loan and EMIs When choosing the length of a LAP loan, you need to be careful. If you choose a short term, your EMIs will go up, and you may need help to make payments on time every month. On the other hand, if you choose a longer term, you might have to pay a lot of interest. So, try to find a good balance between the length of the loan and the EMIs. Tax advantages for LAP Using a LAP to purchase or construct your home may be eligible for a tax reduction of up to Rs. 2 lakhs within Section 24 of the Income Tax Act of 1961. It may claim certain tax breaks against the interest portion of your LAP. Interest Rate Before requesting a loan against property, you should evaluate the LAP interest rates provided by different lenders. NBFCs typically provide cheaper interest rates than banking institutions. [B-02] Conclusion LAPs are different from unsecured loans because of these points. You can easily meet all of your financial needs with the help of a loan backed by property. So, it’s important to keep the LAP in mind when deciding. The lender could take your property if you don’t pay back your loan. Because of this, you should only get a loan backed by property if you are sure you can pay it back on time. If you want, a personal loan is a risk-free way to get money. You can visit the Piramal Finance website and explore their products and services.
08-11-2023
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FD

Advice & Tips for Corporate FDs

Investors have many options available to them. For us Indians, the fixed deposit (FD) has always been the first choice. An FD puts your money to work for you. It also makes sure of a return at maturity. Also, if you invest in corporate FDs, you’ll receive a bonus. Banks and NBFCs provide an investment chance which is called a fixed deposit. In this plan, your money will be secured for a set time with interest. Compared to a savings account, the return on an FD is higher. Read on to find out more about corporate FDs. [B-01] Corporate Fixed Deposit Some corporations and NBFCs, like banks, provide deposit plans. These plans are for long-term savings. Company FDs are another name for corporate fixed deposits. These firms provide fixed rates of return and terms to suit your needs. Financial stability is just one of the many benefits of establishing a business fixed deposit Corporate Fds typically have higher interest rates than conventional banks, resulting in greater rewards after the deposit term. Company FDs can be held for varying amounts of time, and interest can be paid at different intervals. There are special interest rates for the elderly. Corporate FDs can be used as collateral for loans. What are the Advantages of a Company FD? These days, many investors are depositing in company FDs. These are a way to boost their income. Those in need of consistent income can consider corporate FDs. In particular, the higher interest rates on such FDs can be highly beneficial. It also provides financial safety to retirees. Corporate FDs are becoming increasingly important. It boosts investing methods of many financial advisors’ clients. Most financial experts agree that corporate FDs should account for at least half of your loan portfolio. As per the reports, the stock market is unstable right now. But putting your money into corporate FDs will give you a sure return. It will help your money grow steadily. Interest earned on corporate FDs is subject to taxation at your applicable rate. If the interest earned on a corporate FD reaches Rs 5,000 in India, the corporation must withhold 7.5% as tax. Filling of form 15G or 15H saves from TDS. Points of Consideration while Investing in Corporate FDs Investments in Corporate FDs are dangerous The high rate of return offered by companies on FDs is enticing compared to the low rate of return. But they are risky and shouldn’t be relied upon as a financial base. Interest and principal payments are more likely to be missed on these loans than on those from banks. The company’s assets do not qualify as security in TDS. Take caution when calculating TDS. When your interest income from a corporate FD exceeds Rs 5,000, TDS is chunked out. However, in the case of a bank fixed deposit, TDS is withheld when your interest income exceeds Rs 10,000. Higher interest rate Company FDs (FDs) are a great investment opportunity. It is for those seeking a good interest rate. Interest rates on corporate FDs tend to be higher than those on bank FDs because of the higher risk associated with the former. Investigate the company’s history It will help if you use extreme caution because it is your own money that you are investing. Do not make any hasty decisions. Before putting your money into a company’s FD, do your homework. Get an analysis of the company’s profile. This information will help you determine if the company is safe enough to invest in. Withdrawal before Maturity There is a penalty for taking out your investment before the period. The same is the case with corporate FDs. After the deposit, the penalty can be levied after three months. It is best to know the penalty before investing. Features of Corporate/Company FDs Credit rating agencies, including CRISIL, ICRA, and CARE, have given Corporate FD high marks (AAA, for example). The rating helps investors decide whether or not to invest. They give creditworthy by indicating the likelihood of default on interest and principal payments. Depositors can select from many different interest options by NBFCs. Payout schedules vary from month to month, quarter to quarter, and semi-annually to annually. For an even greater rate of return, depositors might select the collected FD option. This option helps in the interest to be deposited. In this way, the depositor stands a better chance of profiting. A depositor may also request a withdrawal before the maturity date. Regarding public deposits, several HFCs and NBFCs impose a penalty rate of up to 2%. Some public deposits have a three-month lock-in term. During this time, the funds cannot be withdrawn. The highest interest rate on corporate FDs may also be offered. The max interest rate has a premium of 2%. Interest earned on FDs by corporations is subject to taxation at the rate given to the depositor. The deposit insurance plan provided by DICGC, an RBI subsidiary, does not apply to corporate FDs; they carry a higher level of risk. [B-02] Conclusion It’s common practice for investors to focus more on star ratings. Before investing, it is important to examine the company’s history and finances. The track record is generally positive if the loss was an isolated incident. This could be a great investment opportunity for FDs from corporations. Be mindful of the company’s goals. Always evaluate whether or not they will have a positive or negative effect. By sticking to this, you can raise your chances of success. For more details, visit the Piramal Finance website for more details on corporate FDs.
08-11-2023
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Personal Loan

5 Things to Know About Gold Loan Interest Rates

A gold loan is a secured loan that lets you use gold jewelry and coins as collateral. Based on the rules laid down by the Reserve Bank of India (RBI), a lender can give you up to 75% of the value of your gold. Since gold prices change every day, most lenders will figure out how much your gold is worth based on the market price of gold on that specific day. When prices are high, you may be able to get a higher loan amount against your gold jewelry at good prices. The interest rates on gold loans will directly affect how much you have to pay back. So, it is important to understand how gold loan interest rates are set and what you can do to get the lowest gold loan interest rate. [B-01] Interest Rates on Gold Loans Gold loan interest rates range from 7% to 18%. The main things that affect the interest rate are the size of the loan and the borrower’s monthly income. The gold loan interest rate will be higher if you borrow more money. The interest rate will be lower if you have a stable, high income. The value of the loan is directly linked to how much gold you have. The purity of the gold doesn’t make a big difference in the interest rate. Some NBFCs and banks charge a foreclosure fee of up to 2%, not including GST, if you repay the loan before the pre-scheduled repayment period of 3–6 months. They also charge a minimum processing fee of Rs. 500, or 0.5%–2% of the loan amount. Factors Affecting Gold Loan Interest Rates There are many factors that affect gold loan interest rates. These are the following: Loan amount Your lender will give you a gold loan based on the value of the gold you give them. The amount of the loan affects how much interest you pay. The interest rate goes up as the loan amount goes up. The typical loan-to-value ratio for lenders is 75%. This means that they will give you no more than 75% of the value of the gold you give them. The more you borrow from a lender, the more interest you have to pay back. Monthly pay Gold loans aren’t the same as other personal and business loans in terms of what the borrower needs to do. In terms of other loans, the lender will assess everything related to your credit score, your job, and your business plans. But to get a gold loan, you only have to meet a small number of requirements. One of the things your lender will look at is how much money you make every month. The more money you make, the more a lender will trust you. The lender is sure that you will pay back the loan, so they charge you the lowest gold loan interest rate. But if you make less money, the lender might charge you a higher rate of interest. External lending benchmark rates Your gold loan interest rate is based on the external benchmark that the lender’s interest rate is tied to. All loans approved by banks are linked to an external benchmark. When the Reserve Bank of India raised policy rates, the lender immediately raised interest rates. Still, when the Reserve Bank of India lowered interest rates, they didn’t change right away. The RBI asked the lenders to tie their interest rates to a benchmark from the outside world. That could be the yield on 10-year government bonds or the RBI repo rate. This rate will affect the interest rates on gold loans. The interest rate on gold loans will change every time the Reserve Bank of India changes its policy rates. Credit score Along with your monthly income, your credit score is one of the aspects your lender will consider when determining your credibility. This score will reflect your loan repayment habits. The higher your credit score, the more confident the lender will be. This also means that the lender will offer you a lower interest rate because there is no doubt that you will repay the loan and avoid default. How Do Gold Loans Interest Rates Affect Your Repayment Amount? Gold loan interest rates will directly affect how much you repay the loan, which is true for all loans, not just gold ones. The repayment amount will be less if you opt for lower interest rates. A gold loan offers you two extra ways to repay the loan besides the EMI, unlike other types of loans. These strategies include periodic interest payments and bullet repayment. However, the gold loan interest rates will have an impact on the repayment amount regardless of which option you choose. Consider a scenario where a person wants to choose a 2 lakh INR gold loan with a 12-month term. Let’s assume he takes out a gold loan with interest rates of 10% and 20%. A 10% annual interest rate would result in an EMI of INR 4,249 and an outlay of INR 54,965 for interest. On the other hand, if we use a 20% annual interest rate, the EMI will be INR 5,299, and the interest outlay will be INR 1,17,927. Therefore, if you choose a higher interest rate for a gold loan, you will have to pay an extra 1,000 per month as opposed to a lower interest rate of 10% annually. Similar to this, paying more interest means spending a lot more money. Therefore, choosing lower interest rates for your gold loan is advised. Maximum Value of a Gold Loan One of the most important factors is the loan-to-value ratio (LTV), which is set by the RBI and determines how much a borrower can borrow against the gold’s value. Banks can give out loans for up to 75% of what the market value of the gold ornaments is. For example, if the LTV is 75% and the value of the gold is INR 10,000, the most the customer can borrow is INR 7,500. [B-02] Conclusion Before you apply for a gold loan, one of the first things you should check is the interest rate. Most people get gold loans, even though they have high interest rates, because it’s a fast way to get money. You shouldn’t be in a hurry to get a loan with a high interest rate. If the interest rate is higher, you’ll have to pay more each month. Visit Piramal Finance for more information on gold loan applications, interest calculations, and much more.
08-11-2023
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