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Personal Loan

What is a Personal Loan and what are its Types?

The meaning of a personal loan is the amount of money that banks will lend to you, so that you can meet your expenses. It is also called a consumer loan that you can use to meet your pressing financial needs. You can take a personal loan to repay a debt or celebrate your daughter’s wedding. Alternatively, you could use it for home renovations. Apart from banks, online lenders and financial institutions also offer personal loans. You must repay the loan amount within the timeframe set by the lender plus interest. [B-01] You can take such a loan in the following situations: § Moving house expenses § Medical bills § Holiday expenses § Emergencies, among many others Key Features of a Personal Loan The features of a personal loan are as follows: § It is an unsecured loan, so it does not require collateral. § The loan is based on your income level, credit history, employment track record, repayment ability, and profession. § The bank can process the loan quickly. § You can obtain a loan from your bank or any non-banking financial institution. § Your loan amount will be with you within 48 hours of application. § You can get a personal loan at an attractive interest rate. If you are an existing customer with a good CIBIL score, the bank will also add some benefits to your loan. § The loan tenure ranges from 1 year to 5 years, with easy options to repay in EMIs. Types of Personal Loans You can have many reasons to apply for a personal loan. The meaning of a personal loan is quite simple: You could be planning to renovate your home, host a wedding or reconcile a debt. This type of loan helps you when you don’t have immediate liquidity. Personal loans are of the following types: Education loan Students can obtain secured education loans or unsecured personal loans to fund their tuition, hostel fees, and other academic expenses.In the context of a student’s life, this is the meaning of a personal loan. Generally, a personal loan of Rs. 20 lakhs is given, which the student must repay in 5 or 6 years. Wedding loan If it’s wedding time in your family and you’re short of funds, you will surely understand thesignificance or meaning of a personal loan. Every parent wants to host a lavish wedding for their son or daughter. To make this possible, parents take out large personal loans. These loans have a maximum loan amount of Rs. 25 lakhs and must be repaid within 3 months to 6 years. If your need is smaller, go in for a Rs 10 lakh personal loan EMI. Festival loan Everyone wants to be a part of grand festival celebrations, whether it be Holi, Dussehra, Diwali, Eid, or Christmas. Perhaps, your savings aren’t enough to fuel your expenses at this time. Don’t worry. With banks and other lenders ready to give you a festival loan not exceeding Rs. 50,000, you can have a grand celebration. Medical emergency loan The most unexpected emergencies are those that relate to your health. They appear out of nowhere and catch you completely off guard. The severity of your condition plus the cost of medical treatment in hospitals can drain your coffers very soon. Now is the time to truly comprehend the meaning of a personal loan. This can take the form of a medical emergency loan. If you meet the eligibility standards of the bank and have a good CIBIL score, you can get a personal loan for up to Rs. 25 lakhs to repay within 6 years. Debt consolidation loan If you’re trying to repay a loan but cannot meet the lender’s expectations, it might be a good idea to take a personal loan to finish paying your debt. Once you fully understand the meaning of a personal loan, you can take one. Usually, you can get a personal loan whose interest rates hover between 10% and 15% p.a. So, you can pay it comfortably within the stipulated period. Travel loan A holiday for the entire family abroad does sound like an expensive proposition. But if you’ve promised them this holiday, you’ll have to live up to it. Sure, it’s an expensive holiday, but you can plan your trip with a personal loan. Often, if you avail yourself of a travel loan, your lender will throw in complimentary travel insurance. The maximum loan amount a bank will give you is Rs. 40 lakhs, which you must repay in 6 years. Home renovation loan What if you need money urgently for home repairs? Speak to your bank for a home renovation loan. This personal loan will help you tide over your home repair expenses. You can expect no more than Rs. 40 lakhs for it. Your tenure for repayment cannot exceed 3 years. [B-02] Conclusion We hope you found this article on understanding the meaning of a personal loan helpful and informative. Whether you want to consolidate debt, make a large purchase, or be prepared for an unexpected expense, you’ll always find a personal loan to suit your needs. However, remember to compare offers from several lenders to get the best interest rates and terms for your loan. For expert advice in personal finance, consider getting in touch with Piramal Finance. You’ll get the best advice on personal loans, and you can also see their range of products.

08-11-2023

Personal Loan

Complete Guide on How to Manage Your Personal Loan EMI

Unexpected expenses often occur, such as when paying for a wedding, buying a car, or dealing with a medical emergency. You can benefit from a personal loan to cover these sudden costs. Getting a personal top-up loan is easy and may have many perks. But sometimes, more money is needed than may be obtained via a personal loan. You may rely on a top-up loan of this kind to provide you with more funds when you are a pre-approved client who has already received a personal loan. The EMI payments on personal loans may hamper your money planning and budget. Take into account the following advice for managing personal loan EMI payments to prevent this: [B-01] Strategies for Managing Personal Loan EMI Payments Find out whether you need a loan by doing some research Research might be helpful. It will inform you of all the calculated rates before selecting the bank or lending firm from which you will borrow money. And also, rather than taking an excessively large sum, you should only borrow the amount you will earn. Additional loans will increase your EMI burden, straining your duty. Analyse your plan and skills When you are in dire need of cash, you often take out loans. Before deciding the amount you’ll ask for a personal loan, this must be a troubling aspect. Almost all major banks and lending firms provide a personal loan EMI calculator that allows you to calculate the rates and the total amount needed. Increased loan sum needs to be increased in EMI payments. Also, It would help if you were assured that you could repay the borrowed money and plan clever methods. Before applying for a personal loan, use an EMI calculator Using a personal loan EMI calculator to know your EMI is a very smart move. This will help you later by clearly explaining how much the clients will have to pay the banks or lenders each month. If the predicted EMI amount proves too much, you may use the personal loan EMI calculator to lower the loan amount and avoid taking out a bigger loan. Check your ability to repay Knowing your loan repayment ability is the first step to EMI payments. Ensure you fully know the personal loan’s rate and the flexible payback options the loan firm offers. For the duration of the loan term, this information could help with EMI calculation and budget management. There are numerous EMI calculators for personal loans accessible online. These online calculators make it easy to know the EMIs that clients will be responsible for paying on their loans. Making wiser money choices for debt payback may be aided by this. These online tools mean assessing their capacity to make EMI payments during the loan. Choose a longer loan term The relationship between your personal loan EMI and loan term payment is inverse. When the loan duration is longer, the EMI is lower, and vice versa. If you want to prevent your EMIs from becoming a money hardship in the future, you might pick a longer loan term when applying for your loan. Doing this may greatly reduce your EMI payment and manage your monthly budget more effectively. Paying your personal loan EMI on time is essential. A missing EMI payment might lower the person’s credit score. The lender may find it more challenging to get future loans. The lender may also be forced to return certain late fees or penalties based on the terms of the contract with the private loan provider. As a lender, it is advised that you keep an eye on the tips above to manage your personal loan EMI better. Put your EMI payments first Prioritise paying the EMI on the scheduled day and time. Make sure you fulfil the dates for making these EMI instalments. Delaying the payment may harm your credit payment history and cost you more in fees and fines. And also, missing the payback and the EMI may incur higher fees and harm your credit and mortgage score. Be mindful of dates and create reminders to save you from jeopardising your history of on-time payments and saving you from unwanted cases. Strive to keep a good credit score Credit scores range from 300 to 900. However, most banks and lenders favour approving loans for clients with scores of at least 700—750. High credit increases your chance of accepting your loan form and allows you to bargain for cheaper rates. It may be good since it encourages honesty and respect for you. For example, a menu remodification and EMI date extension may be possible if you are still experiencing money troubles, thanks to your history, credit score, and skilful bargaining with your bank or lender. Emphasise conserving money Your EMI payments were rigid and necessary for several reasons. You must thus put aside a fair amount for savings. You would be surprised at how handy this money is. For example, this amount you have saved can be helpful if you need to increase your cash reserves for your EMI payment. This amount from your savings may be used to pay for urgent medical care or treatment for a family member without placing you under stress or pushing you into deeper debt. [B-02] Conclusion Personal loan EMI tracking is easier than you would think. Being extra careful with this payback responsibility could be useful. Additionally, it is urged that until the payback process is complete, the debtors cut down on any possible unnecessary or questionably extravagant expenditure. Your credit score and image would likely be permanently harmed by any tolerance and delay on your part, which might result in many more future money assistance requests being turned down. For the latest news on personal loans, daily blogs, and articles, follow Piramal Finance.

08-11-2023

Personal Loan

Top 5 Perks of a Pre-Approved Personal Loan

A personal loan is a basic, short-term loan that may be used for any purpose. Because it is an unsecured loan, no security will be needed. People may apply for a personal loan to pay urgent personal costs, such as a medical crisis or a sudden job loss, or to support a wedding or higher education. A pre-approved personal loan has many perks, including fairly easy paperwork, the absence of collateral, and no limits on how the money is used. However, it comes with a high rate, so it is best to have a decent credit rating before applying. [B-01] What is a Pre-Approved Personal Loan? Banks usually offer pre-approved personal loans to people with a good record of repaying their debts. It is given at cheaper rates. Some lenders may pre-approve a loan for a consumer who has no credit records based on factors such as income and savings records. It is often a limited-time promotion. The pre-approved personal loan has many perks. These loans get sanctioned in a few days. You can check with your lender to see if you are eligible for a pre-approved loan offer, or you can go into your net banking account to see if you are. Keep in mind that your ultimate approval relies on your credit record and your lender’s lending standards. Features of a Pre-approved Personal Loan Quick loan payments If you are already a bank client, the pre-approved debt will be sent to your account in a few days. Minimum paperwork needed Instant loans are simple to obtain; the process is termed simple because loan approval does not necessitate extensive papers. There is no need for assets Users with pre-approved personal loans need to provide security or assets to obtain instant loans. Variable loan amounts Each person’s pre-approved loan amount is unique. The loan amount is determined by factors such as the user’s credit history and repayment record. Fees Lenders charge users fees before and after the disbursement of pre-approved loans, such as service charges, secure fees, outstation collection charges, EMI bounce charges, penal interest, foreclosure charges, and so on. The conditions and terms of the relevant fees vary depending on the lender. Perks of a Pre-Approved Personal Loan Bear in mind that pre-approval is only a sign of your loan eligibility. Despite being “pre-approved,” the loan request may be denied if you do not fulfill all eligibility rules during the verification process. A pre-approved personal loan has several perks, such as: Quick or instant funds Being eligible for pre-approved loans provides a safety net when you require instant funding to fulfill your debt duty. If the verification process is successful, the loan will be approved and disbursed in just a few minutes on the same day. You may apply for the loan for any personal reason. Minimum paperwork required The existing user qualified for pre-approved loans does not need to provide papers because the bank already has your KYC, lender, and other income details in the system. Certain money firms also provide new users with loans. In such cases, bank details, the last three months’ salary slips, a PAN card, and proof of residency (Aadhaar card, driving license, passport, etc.) are required. Flexible loan terms You can select loan payment terms that work best for you. It is usually between 12 and 60 months. To avoid loan default, consider your perks when selecting the loan tenure. Improved money planning When you look for a personal loan by yourself, you may need to know your loan eligibility, and if you are not eligible, your application could be rejected. But a pre-approved personal loan allows you to better plan your finances because you know exactly how much funding you are eligible for. Negotiating power With pre-approved debts, the bank comes to you with its product instead of you going to the bank and asking for something. This gives you more power to negotiate with your banker to reduce the rate or boost the tenure at your leisure. This advantage is lost if you apply for a loan online because there is no human factor. Should You Take Out the Pre-Approval Loan? Accept such offers only if you realize how and where to put the money. Giving credit for borrowing is not a good idea. You must repay the amount plus interest. A pre-approved personal loan could be low-hanging fruit if you’ve planned ahead of time and are already looking for a loan. Before accepting the loan request, it is vital to check if the loan amount offered is adequate for your needs. Check the borrowing terms, rate, and other applicable fees. A pre-approved personal loan is only available for a limited time. As a result, make your choice as soon as possible. Accept the pre-approved credit offer with low rates and other perks if you need the funds and can smoothly repay it. Before knowing the pre-approved loan, choose the most suitable repayment term and ensure users get the same deal as you were shown. [B-02] Conclusion A pre-approved personal loan is a short-term loan for a select group of users. No assets or security are required, and no paperwork is required. To be eligible for an instant loan, you must have a good credit score and a track record of repayment. Although the rewards of pre-approved loans are numerous, taking a line of credit if you do not need it is pointless. Only go into debt if you truly need the money. Besides, there may be better choices than a pre-approved personal loan for your situation. You could choose a credit line instead, where you’ll get final approval and not pay any interest until you use the money from your allowed limits. If you must borrow money, make sure you only borrow what you need, not what the lender is willing to give you. To apply for a personal loan, check out Piramal Finance and explore the products and services.

08-11-2023

Personal Loan

How Can Customer Care Employees Avail of Personal Loans?

When you have a big expense, whether it was planned or not, a personal loan can feel like a blessing. In reality, they are unsecured loans that borrowers get from lenders. People get personal loans to pay for things like unexpected medical bills, vacations, home repairs, and paying off debt. Everyone can get a personal loan rate of interest, and they have a lot of choices. Anyone can apply for a personal loan, which requires little paperwork. People who work for themselves or own businesses can also get personal loans. Most of the time, these loans are paid off in 12 to 60 months or 1 to 5 years. The loan’s terms change based on the borrower’s background and needs. [B-01] Features of a Personal Loan Rate of Interest Salaried applicants can get an instant personal loan rate of interest as low as 11%. Personal loan rates of interest for salaried borrowers are not based on how the money will be used. The service fee usually ranges from 2% to 4%. The loan can range from 12 months to 60 months, and the maximum loan amount is Rs 30 lakh. Advantages of a Personal Loan Rate of Interest No Collateral No collateral or mortgage is required if you apply for a personal loan because it is an interest-free loan. It is one of the major advantages of a personal loan rate of interest. Simple Criteria for Eligibility Banks and NBFCs prefer salaried clients. Personal loans are easy to get for Indian people who work for private or public companies. Easy EMIs For salaried borrowers, paying back a personal loan takes between 12 and 60 months. You can change the terms of your loan. EMI Calculator One of the many benefits of personal loans is that you can figure out your EMI by using an online EMI calculator. You can change the settings and check your EMI as frequently as you want. How Does Customer Care Apply for the Personal Loan Rate of Interest? Let’s start by reviewing the requirements for personal loan customer care. Lenders have different requirements, but most are basic and standard. Age At the time of loan application, the borrower must be at least 22 years old, and even at loan maturity, they may be at most 58 years old. Income The borrower must earn at least Rs. 20,000 per month. Nationality The borrower’s citizenship should be Indian. Credit Rating For the borrower to be able to get good interest rates and terms, their CIBIL score should be high, usually above 750. How to Apply? You can get a personal loan in one of three basic ways, which are: Commercial Banks Since almost everyone has a bank account, most people know how to apply for a personal loan, which is the most common way. Most of these institutions follow a set process for giving out loans, which includes a strict way to pay back the money, paperwork, and regular contracts. Co-operative Banks Even though they have a much smaller customer base than commercial banks, rural people like these institutions more. Since they aren’t trying to make money, these banks have lower interest rates and more flexible ways to repay loans. Qualification Criteria for Personal Loans Before you apply for a personal loan online, you should know the different things that affect your eligibility. These have the following parts: Credit history Your credit history and credit score are the two most important things that determine whether or not you can get a personal loan. This will determine the length of the loan, the interest rate, and how much you can borrow in total. Geographical area Your neighborhood has a big impact on whether or not you can get a personal loan. Existing credit If you pay off other loans, it could hurt your chances of getting a new one. Housing scenario If you own your home, you have a better chance of getting the loan you want. This is because renting limits what you can do with your money, which makes it harder to get a personal loan. Income The amount of money a person can borrow is proportional to their income. So, your income affects whether or not you can get a personal loan. Organisation Whether or not you can get a personal loan will also depend on the business you work for. If you work for a reputable company with a good name in the market, you can be sure that your job will be safe. They should pay down their current debt, use credit cards and loans as little as possible, pay their monthly payments on time and correctly, and make themselves more available for personal loans. Things to Keep in Mind Personal loans are a great way to pay for important costs when used carefully. Before asking for a loan, you should always consider how you will pay it back. Getting a loan is a big decision that needs to be well thought out. If you pay back your loans on time and in full, your credit score will go up. This will make you a great candidate for getting another loan. If you don’t, your credit score will decrease, and lenders will think less of you. This will make it harder for you to get loans in the future. So, you consider all of your options before you apply for a personal loan. [B-02] Conclusion You can easily meet a range of financial needs with the help of a personal loan. Unexpectedly large expenses may deplete your funds. Choosing a personal loan might be very beneficial in these circumstances. Applying for a personal loan is frequently done for various reasons, such as paying for a special event, building a home, fixing a car, etc. A personal loan rate of interest can also help you cover any gap encountered when buying a car or property, in circumstances of unforeseen medical expenses, or for your children’s higher education, among other things. The quickest and easiest approach to getting the money you need to fulfill all of your future ambitions is to apply for a personal loan. You can visit Piramal Finance for more blogs related to how customer care employees avail of personal loans. Take a look at the products and services they offer as well.

08-11-2023

Mutual Funds

How does a Mutual Fund Returns Calculator Work On a Current Investment Plan?

A mutual fund pools small amounts of money from several investors. The funds are invested in various asset classes, such as equities and bonds. On behalf of the investors, an asset management company (AMC) makes these investments. Mutual funds are seen as a risk-free investment that gives investors a chance to expand. Anyone wishing to diversify their portfolios may find mutual funds to be a beneficial investment. Find out if investing in mutual funds is the correct choice for you. [B-01] Mutual Fund Categories The five different types of mutual funds are: Stock Funds Stock funds primarily invest in stocks or equities. Depending on the size of the companies they invest in, equity funds can be small, mid, or large-cap. Their investment strategy identifies other types of stocks, such as value, income-focused, or aggressive growth. Another way to assess equity funds is by checking if they invest in private or foreign stocks. Money Market Funds The money market’s short-term debt instruments, like treasury bills, are safe and risk-free. While the investment is guaranteed, investors do not make a large profit. The return on money-market funds is slightly higher than the earnings in a standard checking or savings account. However, it is lower than a formal certificate of deposit (CD). Bond Funds A type of investment business (mutual fund, ETF, closed-end fund, or unit investment trust (UIT)) that invests primarily in bonds or other debt instruments is referred to as a “bond fund” or an “income fund.” Government bonds, corporate bonds, and other debt instruments fall under this umbrella. You can buy or sell shares of a bond fund every day. Bond funds also allow you to invest more money at any time and automatically reinvest income dividends. Most bond funds provide consistent monthly income, though the amount may change depending on the state of the market. You can buy or sell shares of a bond fund every day. Bond funds also give you the flexibility to invest more money at any time and automatically reinvest income dividends. Most bond funds provide consistent monthly income, though the amount may change depending on the state of the market. Index Funds Index funds invest in stocks that track a primary market index, such as the Standard & Poor’s 500 or the Dow Jones Industrial Average (DJIA). These funds are frequently designed with budget-conscious investors in mind. This method requires less research from analysts and advisors, resulting in lower costs being passed on to shareholders. Target Date Funds Target-date funds aim to increase investor returns by a set date. The funds are common ground to make a profit in the initial periods by focusing on risky shares. Then, as the goal date comes closer, one starts to move toward safer choices to hold onto their profits. Liquid Funds: Regarded as the most secure variety of mutual funds, liquid funds invest in liquid instruments with brief maturities, usually less than 91 days. They offer nearly no risk and 1% to 2% better earnings than savings accounts. Mutual Fund Fee A mutual fund may charge its shareholders yearly operational costs. The expense ratio means the annual proportion of yearly fund operating fees, typically from 1% to 3% of the funds under administration. The transaction cost of an investment fund is estimated by adding the consulting or management charge and subtracting expenses. A Mutual Fund Return calculator is a useful monetary tool that helps investors calculate the profits from mutual fund investments. You can invest in mutual funds either once or twice a month. You can choose the frequency during or after starting the investment. How does a Mutual Fund Return Calculator work? A Mutual Fund Return calculator is a useful financial tool that helps investors calculate the profits from mutual fund investments. A SIP, or systematic investment plan, is one way to invest in mutual funds. A person makes a small monthly investment in set targets in a SIP. Keep in mind that these funds’ net asset values (NAV) fluctuate monthly. A similar sum of money can be used to purchase different units in other months. Pros of Investing in Mutual Funds Here are the benefits of investing in mutual funds: Convenience: One prospect for mutual funds is diversity. A good mix of investments and assets within a portfolio reduces risk. Simple Access: Mutual funds are highly liquid investments due to the ease with which they can be traded and purchased when trying to trade on major stock exchanges. Mutual funds are the most workable – and occasionally the only – way for independent investors to invest in different asset classes, such as global stock markets or exotic commodity markets. Varieties: A mutual fund is a collection of funds from several individuals used for buying stocks, bonds, or other securities. Diversification of investments is possible with mutual funds. A mutual fund doesn’t only buy one stock or bond; it invests in various asset classes. Although there are numerous mutual fund varieties, most fall into one of four broad groups: stock funds, money market funds, bond funds, and target-date funds. Skilled Management: An experienced investment manager expertly conducts research before trading. A small investor can hire a full-time manager to initiate and manage investments for a low cost. Investors can benefit from professional help at a low cost. Since mutual funds have a low start budget, anyone can invest. [B-02] The bottom line A collection of stocks, bonds, or other securities constitutes a mutual fund. Small-scale or small investors have access to these different assets. Generally, they are managed by mutual funds. There are various categories of mutual funds. These describe the types of securities, investing goals, and return types they invest in. Employer-sponsored retirement investing programs typically use mutual funds. Using the Mutual Fund Return Calculator makes the process easier. It helps in knowledge and removes the chance of human error.

08-11-2023

Personal Loan

How To Check Your Eligibility For Personal Loans

Banks and other financial institutions issue personal loans. These loans offer you a fixed amount of money at a fixed interest rate for a set period. Are you wondering if you can apply for a personal loan? Check your eligibility for personal loans first! Eligibility for personal loans depends on the bank. However, some factors are common for all lenders. Examples of these are your credit score, income, and other factors indicating if you can repay the loan on time. Before moving ahead with your loan application process, check your eligibility for personal loans. You can do this in a lot of ways. The methods include researching different banks’ eligibility criteria online or visiting your nearest branch. You can also use a free personal loan eligibility calculator online. [B-01] What Is a Personal Loan? Financial institutions offer a range of loans, including personal loans, to people meeting a set of criteria. A personal loan is unsecured. This means you do need collateral or security to secure the amount. You can use personal loans for various purposes, including paying for medical procedures, weddings, and other large expenses. You can apply for the loan online or in person at the bank. The approval process is quick; it takes just a few hours for the bank to credit the money. Key Features of Personal Loans These are the features of personal loans that you should be familiar with before you make an application: ● Less documentation ● Quick approval and immediate disbursement ● Loans ranging from Rs. 1 lakh to Rs. 10 lakh ● Repayments in EMIs ● Flexible repayment terms ranging from 12 to 60 months ● Income pooling for increased loan eligibility Eligibility For Personal Loans You can find out your eligibility for personal loans in the following ways: Visit the bank’s website. On the site, look for the eligibility requirements. Go to the nearest branch offering loans. There, you can talk to bank personnel about the eligibility for personal loans. You can also clear all your doubts with their help. Usually, to apply for a personal loan, you must: Be an Indian citizen Be a salaried individual Be aged between 21 to 60. Have a minimum salary of Rs. 15,000 per month Have a CIBIL score of at least 750 How to Use Eligibility Calculators Online Check your eligibility for personal loans by entering these details into a free online personal loan eligibility calculator: Location Age Employer Monthly income Monthly expenses Based on these, the calculator will indicate your eligibility. Documents Required To Be Eligible For Personal Loans You need these documents to be eligible for the best personal loan offers: Identity Proof Documents: PAN card, driving license, Aadhaar card, voter ID, etc. Address Proof Documents: Passport, utility bills, driving license, Aadhaar card, etc. Income Proof Documents: Documents stating your recent earnings, like salary slips or bank statements for the last 3 months You need a co-applicant while applying for increased eligibility. Your parents, spouse, or adult children can be co-applicants. They will also have to provide the same documents. How To Apply For Personal Loans After confirming your eligibility for personal loans, look for the best personal loan offers. Review the terms and conditions of the loans, such as the interest rate and tenure, before applying. This process will help you zero in on a lender. After choosing a lender, visit the bank’s official website. Go to the personal loans section. Enter all the information needed, upload the supporting documents, and submit. If you are applying in person, you must fill out a hard copy of the application form. Along with that, you need to share photocopies of the documents required. After submitting the form, the bank will start processing your application. The bank will process the loan without delay if all your details are satisfactory. After that, the loan amount will be in your bank account within a few days. [B-02] Conclusion It is crucial to check your eligibility for personal loans before applying for a loan. Usually, people visit a bank in person or check the bank’s website for this information. However, you can also use a personal loan eligibility calculator online. This makes the process a lot easier and more accessible for you. After confirming your eligibility, search for the best personal loan offers. Finally, gather all your application documents and apply for a personal loan. Enjoyed reading this? For more such articles, visit Piramal Finance today!

08-11-2023

Personal Loan

How can I get a low-interest rate on a personal loan?

Personal loans can be used for anything. You are free to put this loan towards anything you like, be it an unexpected medical bill, the cost of your wedding, remodelling of your home, payment for your ideal vacation, or anything else. Most of the time, a personal loan’s interest rate is higher than any other loan’s. However, if you need money quickly and a personal loan is the best alternative, consider getting one. After receiving your application for a loan, many financial institutions will either deny your request or grant it with conditions. Some financial institutions, such as banks and lending organizations, provide pre-approved loan proposals. If you’re planning to get a low-interest personal loan and want to save money by getting a low-interest rate, here are some tried-and-true ways. [B-01] Tips for getting lower interest rates on personal loans Always try to keep a good credit score When determining your loan size, interest rate, and processing fees, your credit score is one of the most critical factors. The best way to keep or raise your credit score is to make regular payments on your debt. It is recommended that your credit score be higher than 750. Suppose your credit score is higher than 750. In that case, you can be ready for a personal loan at a rate of interest that is more favourable. There are a lot of additional things you can do to keep or increase your credit score. The following are some examples of them: Always make your payments on time. Make sure the balance on your credit card isn’t too high. Reduce the number of new credit card and loan applications you submit. Ensure that your credit usage ratio is accurate. Get latest updates by E-mail. Pick your bank with caution Every lender is different. Their risk assessment method, interest rate, and loan specifics vary slightly. Therefore, to choose the most suitable lender for your needs, you will need to conduct careful research. You can do this by using the website of a loan provider. These platforms provide an overview of all the characteristics and offers of each lender’s products on a single page for your convenience. If you decide to go the digital route, include it in GST (Goods and Services Tax). The way you apply for a loan can also change the interest rates you get. A Personal Loan with a low-interest rate may be more attainable through an online solution since it eliminates the need for intermediaries. In contrast, using an offline solution may strengthen your negotiating skills. Employment history Your employment history is also a significant factor in how much your personal loan interest rate will be. If you can keep a steady job over time, this will reflect well on your credit score. The interest rate applied to your personal loan is determined by a few factors besides your employment history. These factors include your ability to repay the loan, income, and profile. Employer’s reputation One of the most critical variables in determining the interest rate applied to personal loans is the reliability of an employer. One of the best ways to receive a low-interest personal loan is to secure gainful employment with a big, well-known corporation. The company can provide consistent job security and stable pay. Keep an eye out for deals during the holiday and seasonal seasons. When looking for a Personal Loan online, you should always check for discounts that may be offered during the holidays. During the holiday season, banks usually advertise appealing promotions offering low-interest personal loans below the norm. It will ultimately allow you to cut down on the money you need to repay your long-term loan. History of payments Repayment history is critical if you want to obtain a low-interest personal loan. Make on-time payments toward the balance of your credit card. Make your loan’s EMI payments on time. Suppose you have a solid track record of making repayments. In that case, you will have a fantastic opportunity to negotiate the interest rate with the lender. Check how interest is calculated Before you apply for a personal loan, you need to ensure that you have a solid understanding of how interest is computed by lenders. Understanding how interest is calculated with the help of a personal loan eligibility calculator is essential because some lenders offer loans with a flat interest rate based on the total loan amount. In contrast, others offer reduced rates based on the outstanding principal amount. Knowing a lender’s interest calculation process might help you save a lot of money by avoiding interest payments that are too high for the situation. Good monthly income It may seem unjust, but the amount of your monthly income is also a significant factor in determining the interest rate on personal loans. Your monthly payment should be rather substantial if you want a decent personal loan deal. Make sure the Lender has a good reputation Before making a final choice, it is essential to investigate the financial institution’s reputation. Choose the financial institution with a stellar reputation in the market and is known for the satisfaction it provides to customers in addition to providing other services. Relationship with the bank When applying for a personal loan, your relationship with the bank is another factor that will be heavily considered. Suppose you are a dedicated financial institution customer and conduct all of your business with the same lender or bank. In that case, a financial institution may provide you with a low-interest personal loan. Choose a shorter term, if you can The most excellent time a personal loan can be repaid is typically sixty months. If your finances are flexible enough, going for a shorter period is the better option. Repaying a personal loan over a shorter period will not only help you get a lower interest rate. Still, it will also save you a lot of funds in the long run. [B-02] Conclusion Taking out a loan is a huge step because it involves a lot of uncertainty. Because of this, it is strongly advised to conduct sufficient research before choosing a loan or a lender. You will be able to examine several personal loan options and select one with a reasonable interest rate and monthly payment by using the tips discussed above. Before you take out a personal loan, ensure that you really need it and that only a personal loan will do. Obtaining a low-interest personal loan is equally important as getting a decent plan from a reputable financial institution. Being aware of your credit behaviour. Managing your funds in a well-planned manner will give you much-needed support at the appropriate time.

08-11-2023

Other

Everything you need to know about Jeevan Umang Calculator

Having insurance is one of the most important responsibilities of every earning professional. It helps in getting tax exemptions on the overall income. Insurance assures you financial support under any condition. The Life Insurance Corporation of India offers the best insurance policies and plans for your needs. Jeevan Umang is one such policy. It helps you get insurance and income protection for your loved ones in your absence. It offers excellent income protection and covers any emergency. When getting insurance, you need an estimate of its premium and benefits. This is where the Jeevan Umang calculator comes into play. It helps you find out the premium based on the policy assured and several other parameters. It’s almost like asking a virtual assistant for the details and premium of a policy. It does away with the need for an agent. You can use Jeevan Umang or Sukanya calculator with ease. Before that, you must learn how this new income protection plan by LIC. Here are the details and benefits of using the Jeevan Umang Calculator. [B-01] Why should you choose LIC’s Jeevan Umang plan? Before using the Jeevan Umang Sukanya calculator, you should know the benefits of its insurance plan. The premium-payment terms of the policy are convenient. You will get a grace period to pay the premium before it lapses. You can take loans with the help of the Jeevan Umang policy and get easy approval on them. Jeevan Umang has standalone death benefits. Its sum assured and premium does not depend on any other benefit. It also doesn’t consider shared relationships like rider connected or rider optimizer. Opt for multiple rider benefits in the Jeevan Umang or Sukanya calculator to extend the sum assured and claim the plan’s cover. This will help you get more benefits under standalone benefits at a nominal premium. The death benefit is payable in periodic instalments, not as a one-time lump sum payment. Your nominee or second policyholder can claim the insurance money. Instalment payment makes for better fund usage. Another significance of the plan is the availability of both monthly income and lumpsum payment on maturity. You will get payment in monthly cycles from the end of the premium payment term until the maturity date. If the policy assured dies before the maturity date, you would get the lump sum amount as per Jeevan Umang Sukanya calculator. You will also enjoy the general reversionary bonus with the Jeevan Umang plan. Apart from this, a final additional bonus is sometimes applied to the plan. But for the latter one, you must talk to your agent about the bonus payments. Thanks to the policy coverage term of 100 years, it is one of the most secure life insurance plans. You can also get a rebate on the sum assured between INR 10 lakhs and INR 24.75 lakhs. Usually, the insurer provides a reimbursement of 1.75% on the base value of the sum assured. Based on this, you can check the premium and maturity value with Jeevan Umang or Sukanya calculator. How to use the Jeevan Umang calculator? The Jeevan Umang Sukanya calculator helps you understand the breakdown of insurance policy premiums. After all, you have to pay them based on your chosen standalone and rider benefits. In addition, many other attributes affect premiums. You have to pick the maximum insurance claim. Using the Sukanya calculator, you can change the inputs and see how the premium gets affected. You can pick the correct benefit and premium frequency based on your budget and needs. Features of LIC Jeevan Umang Calculator The following are the features of the Jeevan Umang calculator: You can enter different values for the sum assured premium frequency and policy term. Apart from this, you can put in the policy an assured age and gender. There are four options for the premium frequency: monthly, quarterly, half-yearly, and annually. You can select any of these from the dropdown list. You can access the calculator from the official site of LIC. It shows the accurate value of the premium based on the inputs you give. You can check the quotation details using this calculator. There is no role of third-party agents in this. So you don’t have to worry about paying a commission fee to the agents. How to use the Jeevan Umang calculator to find the premium? Using the Jeevan Umang policy calculator is as simple as using the Sukanya calculator. To help you use it smoothly, we have listed the steps for calculating the premium. Visit the official site of LIC. Select the Premium Calculator from the options. Enter your details in the Sukanya calculator. The mandatory fields are your first and last name, date of birth, mobile number, country code, gender, and email. Once done, click on the Next option at the bottom of the screen. Check the box for Jeevan Umang Plan. Scroll down to click on the Coverage button. You can enter the minimum sum assured of INR 2,00,000 or more and the premium paying term. LIC offers four options for the premium payable term- 15 years, 20 years, 25 years, and 30 years. Once done, click next to find the premiums. You can see the original premium and the premium with tax. The taxed premium is payable at an 8% interest rate. Your premium will rise if you choose Accidental Benefit as the rider plan. The screen of the Sukanya calculator will show you the premiums for all four payable frequencies. This information will help you choose an affordable plan. The monthly premium payable is less than the annual premium. [B-02] Conclusion In this article, we have walked you through the details of the Jeevan Umang Sukanya calculator. To know more about Sukanya and Jeevan Umang policies, maturity benefits, and eligibility, go through the online materials at Piramal Finance.

08-11-2023

GST

Learn How To Calculate GST And Find Out What Are Its Benefits

Are you worried about calculating goods and services tax (GST)? The GST calculator will help you to calculate the returns from your long-term and short-term investments. GST is a nationwide sales tax levied by the Indian government. Considering that the GST Calculator can get solutions to your investing-related issues, read every word on this page thoroughly. Here, we are going to discuss what GST is, what its benefits are, and how to calculate GST. [B-01] What is GST? The GST is used as the basis for the collection of indirect taxes throughout India. While calculating GST, tax rates vary depending on the nature of the goods or services. While luxury items have higher interest, items considered ‘necessities’ are assigned lower rates. What is the purpose of a GST calculator? After a few years of working under the GST, most businesses have mastered maintaining a record of their goods and services. This speeds up GST calculations, creates GST-compliant invoices, and eases business operations in general. There are, however, several situations in which a business person may be presented with either a sum devoid of GST or an amount including GST. In today’s fast-paced world, knowing how to calculate GST-exclusive and GST-inclusive costs swiftly is essential for making timely sales and purchase decisions. A GST calculator has proven effective in such situations. With the correct formula, one can make their own GST calculator in Excel. However, knowing the GST rates is the first step in using a GST calculator. How GST is calculated The GST regime’s unified tax structure makes it easier for taxpayers to keep track of the various taxes imposed on a wide range of products and services. To compute GST accurately, the taxpayer must be aware of the GST rate that applies to various categories. Taxes on GST might be paid at various rates, ranging from 5% to 28%. Using an example, we can explain how GST is calculated: If the GST rate applicable to a sale is 18% and the selling price of the good or service is Rs. 1,000, then the final price, including GST, would be Rs. 1,000 + (1,000 X (18/100)) = Rs. 1,000 + 180 = Rs. 1,180. GST calculation formula The formula for GST calculation is as follows: Add GST: GST Amount = (Original Cost x GST%)/100 Net Price = Original Cost + GST Amount Remove GST: GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}] Net Price = Original Cost – GST Amount. Example: Let’s assume that a product is sold for ₹ 2,000. 12% GST is levied on the product. The product’s final price would be ₹ 2,000 + 12% of ₹ 2,000, which is ₹ 2,000 + ₹ 240 = ₹ 2,240. Benefits of GST Easy compliance The GST Calculator aids in complying with the GST regime in India since it is based on a solid and comprehensive information technology system. To make compliance simple and clear, all taxpayer services, including registrations, returns, payments, etc., will be made available to taxpayers online. Uniformity of tax rates and structures The GST will make doing business more secure and straightforward by creating uniform indirect tax rates and structures across the nation. In other words, the GST would do away with the tax consequences of where a business chooses to base its operations within the nation. Removal of cascading Creating a system of seamless tax credits throughout the value chain and across state lines helps reduce tax cascades. This process also lowers the actual costs for enterprises. High competitiveness As transaction costs are reduced, trade and industry become more competitive. To increase India’s manufacturing sector’s competitiveness, the World Bank recommends several reforms, the most important of which are the introduction of the GST and the elimination of the inter-state tax. Gain to manufacturers and exporters With the Central Sales Tax (CST) being phased out and the rest of the central and state taxes being rolled into the GST, local producers and exporters benefit. That’s good news for Indian exports since it will make Indian products and services more competitive abroad. If tax rates and filing requirements were the same throughout the country, it would also help lower compliance costs. Simple and easy procedure The GST is replacing several indirect taxes previously levied at both the federal and state levels. GST would be easier to manage with a good IT infrastructure than any other central- or state-level indirect tax that came before it. Better leakage control The GST will lead to increased tax compliance due to tighter controls on leakage and improved IT infrastructure. There is a built-in mechanism in the architecture of GST that would incentivise tax compliance by traders due to the seamless transfer of input tax credit from one level to another in the value-addition chain. Increased revenue efficiency Efficiency in government tax collection should improve as a result of the GST, leading to more money coming in without spending any more time or money collecting it. [B-02] Summing up The purpose of this article is to give a comprehensive examination of the GST calculator. The government levied the GST and calculated the total sale value of goods and services. Whether a GST calculator is the best choice for you should be determined carefully after carrying out thorough research. If you enjoyed reading this, visit Piramal Finance for more such articles on finance.

08-11-2023