More articles for you

Your one stop place for everything related to finance and lending

Home Loan

How Home Loan Prepayment Calculator Works In India

There is no doubt that a home is a lifetime investment for which decisions need to be properly made. A home of your own nowadays costs a fortune; therefore, it is a loan that one might need to depend on. You need to know that various financial institutions will loan you the money for the home you want to buy. Well, be that as it may, in the event you have taken a loan, you need to know about the Home Loan Eligibility Calculator, which will allow you to calculate the amount of interest you will have to pay. [B-01] Brief keynote on the home loan eligibility calculator You can be the one to concede that you are not a materialistic person, but buying a house is usually a decision that one makes, no matter which strata you belong to. A loan can be an easy option to get money and accomplish your dreams. A Home Loan Eligibility Calculator precisely helps you to understand whether you possess the basic financial status to get a loan with which you can buy a house or a flat. In that respect, you might need to know about home loan eligibility, defined as the processes used to assess your financial situation to determine whether you are eligible for home loans. Previously, people used to go to banks to speak with the person who deals with loans; however, now, in this age of digitisation, a Home Loan Eligibility Calculator does the same more swiftly and conveniently. How the home eligibility calculator works The applicant’s income is the most important factor in determining home loan eligibility.When someone applies for a home loan, the lender will analyse their financial situation by accessing the CTC, take-home salary, deductions, etc. The loan amount will be based on these factors. The home loan approval process is quite strict, as the lender will make sure that you can repay the loan amount plus interest without missing a beat. Home loans are designed to assist an individual in getting a house of their own. Not everyone can qualify for a home loan. There are certain eligibility criteria that the loan applicant must be aware of. Age happens to be one of the most important factors in calculating your loan amount. You need to know that most financial institutions limit the age when it comes to the matter of providing loans. Hence, if you are to use a quality Home Loan Eligibility Calculator, you will need to provide your age and proper age proof. Next comes the credit score, or the CIBIL score. The CIBIL score needs to be quite high when it comes to applying for home loans. In that respect, you will need to know that a CIBIL score is a 3-digit number that summarises your credit score. A CIBIL score is a number that you need to put in the Home Loan Eligibility Calculator while you are calculating your eligibility for home loans. Hence, it is suggested that you check your CIBIL score before you take any loan. There is also another thing, which is the stability of income. The source of income, whether or not you are salaried to own a business, is perhaps the biggest factor in the loaning process. If you are salaried, you might have to provide your company details, even your pay slip for the last 3 or 6 months, in the Home Loan Eligibility Calculator to learn about your eligibility status. The property’s details include age and location—all of which you must provide if you want to know your eligibility status. Why using a home loan prepayment calculator is essential? At times, it can be quite difficult to calculate the eligibility status of an individual. Keeping in mind the fact that certain human mistakes can always happen, using a Home Loan Prepayment Calculator will be imperative as there are certain inherent benefits to it. To avoid any hassle, it is essential to use this reliable calculator. You can better plan your financial situation before applying for a large loan. It is a fact that the majority of Home Loan Eligibility Calculators are free to use; hence, why not take advantage? You need to know that you must never bite off more than you can chew; obtaining knowledge about your limit might be helpful. A Home Loan Eligibility Calculator will precisely tell you about your financial situation and direct you in the right direction. [B-02] Final thoughts Being well-informed is imperative if you are considering applying for a loan for the house you have always dreamed of owning. In that case, a Home Loan Eligibility Calculator will be of immense help. If you want to do an accurate home loan prepayment calculation, consider Piramal Finance. Their home loan calculator is very precise and user-friendly. You can consult their experienced team and receive the best assistance available.

08-11-2023

Personal Loan

How Women Can Avail an Instant Personal Loan Scheme from the Government

Over the years, the Indian government has produced advantageous immediate personal loan plans to assist ambitious and eager women who do not lack finances to begin their activities. However, with the growing popularity and acceptability of digital loan platforms, loan approval for women has become simple. A personal loan for women is a valuable financial tool for supporting their goals and emergency needs. Ambitious women who want to grow their enterprises can benefit from a quick personal loan for women. Personal loans for women are also accessible at low personal loan interest rates, making the EMIs manageable. [B-01] 1. Mahila Samridhi Yojana The Mahila Samridhi Yojana is a loan scheme for poor women who belong to the lower strata of society and find it challenging to fulfill their financial goals. State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks offer this lending scheme to women who require funds to establish their businesses. The maximum number of women that can participate in the self-help group is 20. A woman can get a loan for a maximum of Rs. 60,000. Criteria for eligibility include: The woman’s annual household income should be fixed at Rs. 3 lakh. The woman must be from what the state and federal governments call a “backward class” and live on at least twice the poverty level. 2. Mudra Loan for Women The government established Mudra Loan for Women to provide financial assistance to ambitious female entrepreneurs. They are looking for a business, pan shop, a tuition center, etc. There are, however, different ways to apply for a mudra loan. They are: Shishu Loan: The maximum credit for new businesses is Rs. 50,000. Kishor Loan: This loan is intended for existing firms that want to strengthen their services. The loan amount ranges from Rs. 50,000 to Rs. 5 lakh. Tarun Loan: This loan is intended for well-established enterprises that want to expand their reach but lack funding; they can borrow up to Rs. 10 lakh for this reason. 3. Annapurna Scheme The Indian government gives loans of up to Rs. 50,000 to women who run businesses that serve food. The borrowed money could be used for things like buying cooking tools, a mixer and grinder, a hot case, tiffin boxes, a working table, and so on. After the loan is given, the lender does not have to pay the EMI for the first month. Once the loan is approved, it must be paid back over 36 months. The interest rate on a personal loan is based on the market rate and the bank in question. 4. Stree Shakti Yojana The Stree Shakti package is a one-of-a-kind program encouraging female entrepreneurship by giving financial incentives. This Stree Shakti scheme is only open to women who own most of the company. Another criterion is that these female entrepreneurs be enrolled in their local state agency’s Entrepreneurship Development Programme (EDP). In addition, this Stree Shakti scheme provides women with a 0.05 percent interest reduction on loans exceeding Rs. 2 lakh. 5. Dena Shakti Scheme The Dena Shakti Scheme provides loans of up to Rs. 20 lakh to women entrepreneurs working in agriculture, industry, microcredit, retail outlets, or other fields. The proposal also includes a 0.25 percent cut in interest rates. Under the microcredit category, women entrepreneurs can acquire a loan of up to Rs. 50,000. 6. Bhartiya Mahila Bank Business Loan The Bhartiya Mahila Bank (BMB) is a public sector bank that lends to women entrepreneurs for working capital, business expansion, or industrial companies up to Rs. 20 crore. The following plans are part of the Bharatiya Mahila Bank Business Loan Scheme: Shringaar: The BMB Shringaar loan is designed for self-employed women or stay-at-home moms who are establishing a business or have recurring business expenses. You are under no obligation to provide collateral security for the loan. Parvarish: The BMB Parvarish loan is designed for self-employed women or stay-at-home moms who want to start daycare businesses. The maximum loan amount under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGSTSM) program is Rs. 1 crore with no collateral security. Annapurna: Small food businesses that are between 18 and 60 years old and want to start up or grow can apply for this funding. Its components are similar to those of the Annapurna plan of the State Bank of Mysore, with the exception that no collateral security is required. 7. Mahila Udyam Nidhi Yojana Punjab National Bank and the Small Industries Development Bank of India offer the Mahila Udyam Nidhi Scheme (SIDBI). The scheme assists female entrepreneurs in establishing a new small-scale enterprise by providing loans of up to 10 lakh rupees to be repaid over ten years. Market rates determine the personal loan interest rate charged. 8. Orient Mahila Vikas Yojana Scheme The Oriental Bank of Commerce created the scheme, and women with a 51 percent share in the capital of a private firm can apply for a loan under the Orient Mahila Vikas Yojana. For loans ranging from Rs. 10 lakhs to Rs. 25 lakhs, collateral is necessary. The loan has a seven-year repayment period. This scheme also offers a personal loan interest rate reduction of up to 2%. 9. Cent Kalyani Scheme The Cent Kalyani Yojana can help new and existing enterprises, as well as self-employed women. Micro and small-sized businesses such as farming, cottage industries, agriculture, and retail commerce are eligible for this scheme. You are not required to present any collateral as security for this loan, nor are any guarantors required. Personal loan interest rates are determined by market rates. The loan’s maximum repayment period will be seven years. [B-02] 10. Udyogini Scheme Under the auspices of the Government of India, the Women Development Corporation has launched the Udyogini Scheme. This program encourages and motivates women entrepreneurs among the underprivileged by offering financial assistance to women. This program primarily assists and supports illiterate women living in rural and underserved areas.

08-11-2023

Personal Loan

Important Things You Should Know About Personal Loans for Student

As college costs rise each year, paying for higher education with cash may leave a large gap in the budget. Yet, exploring other educational choices due to fiscal limitations must never be a choice. Personal loans for students may help them grasp the education they need and reach their full potential. When you apply for a loan, you should be aware of a few vital facts about it. [B-01] What Are the Steps for Getting a Personal Loan for Students? Assess the Exact Need Before applying for a personal loan for students, it is critical to understand your requirements.As, apart from a student loan, the personal loan is a one-time debt, you should know the precise sum you need for fees and other study-related costs. This will allow you to borrow enough money to cover their study-related needs while preventing overborrowing and saving money on interest. Verify the Enrollment There may be a gap between the amount needed by a student and the amount you are entitled to. As a result, once you know what you need, you should examine their loan eligibility. Credit history, a CIBIL score for a personal loan, monthly income, previous loans, and other factors are used by lenders to assess loan eligibility. The credit score is a key factor in determining repayment ability. As personal loans are unsecured, banks will only issue you the loan if you have a decent to great credit score. Many sites provide online calculators to help you assess your loan eligibility. After you enter their banking information, it will compute the approximate loan sum you are entitled to. If you do not work or earn a major income, you must check the enrollment of your guardian or parent, who is the primary lender. Locate the Best Lender There are several choices for getting a loan since nearly all banks and NBFCs give personal loans. To reap the most benefits, assess several lenders on various aspects such as interest rate, processing cost, late payment costs, pre-closure fees, ease of applying for and repaying the loan, user reviews, etc., and pick the best lender. Assess the EMI You may calculate their monthly payment online based on the debt sum, loan duration, and bank interest rate. Unlike school loans, the EMI for a loan begins instantly. As a result, ensure that you or your parents or guardians can easily repay the debt sum you choose and that monthly payments will not cause financial stress. Contact the Lender It is time to ask for a loan after you have decided on the debt amount and lender. You may do so digitally from the comfort of your home, or you can go to the lender’s local branch. When applying, make sure guys understand all of the minor aspects of a personal loan, such as the terms and conditions, and that there are no extra charges or costs. Also, ensure that you have all of the relevant papers and data on hand. What are the Points to Consider When Obtaining a Personal Loan for Students? The personal loan has benefits and downsides; here are some things to think about before taking out a personal loan for students: Interest Rate The interest rate is the most vital selection element since personal loans have the best rate, which typically varies from 12% – 28% p.a. Education loans, on the other hand, have interest rates ranging from 6%–13% p.a. When the payback term of the loan is extended to 4-5 years, you end up paying much more than the principal sum. If the credit history is solid and the credit score is good, you should use it as a strength to get a lower interest rate with your bank. Asset The key benefit of personal loans for students is that they don’t need assets, which means you don’t have to commit any assets as you would with other secured loans, like a loan over property. As private loans are unsecured, the lack of assets raises the interest rate. Processing Charge Banks and financial firms will charge you a fee to handle your loan requests. This process cost, equal to the handling fee levied on a student loan, may vary from 1% to 3% of the debt sum. If you have been a client of the bank for a long time & have a strong CIBIL score for a personal loan, you may always bargain the processing charge. Prepayment Fees It is wise to part-pay and cancel the debts to avoid interest on future EMIs once you begin working or get enough funds. If you wish to part-pay and foreclose your loan, keep in mind that many banks and lending firms levy prepayment costs. The costs vary for each firm and often run from 2% – 5%, which makes a major impact, notably when the debts are big. How Do Students Apply Online for a Personal Loan? Asking for a personal loan digitally is the most time-saving and convenient method. To ask for the loan online, follow the steps below. When you have decided on a lender, go to their main site. Navigate to the loans section and pick Personal Loan. Select ‘Apply Now.’ Fill in your personal information and submit the form. The lender will review the data and contact you by phone or SMS. You must upload the required papers requested by the bank or arrange a paper pick-up. When authorized, the lender will deposit the loan funds into the designated bank account. If you already work with the lender, the process will be faster and easier because you can apply through online banking. How Do Students Apply for the Personal Loan Offline? Visit the bank or nearest NBFC branch. The bank or NBFC agent will walk students through the process. Students must fill out and sign a loan request form and give the lender any other paperwork they may need. The cash will be paid to the listed bank account after the loan is authorized. [B-02] Wrapping Up Education is getting more costly. A student loan is one option for filling the gap between education costs and savings. Yet, it may not be the best solution in all contexts. Student loans have tight eligibility rules and may only be used for certain reasons. Furthermore, these loans may compel you to co-pay a portion of their educational outlays. On the other hand, a personal loan for students is a much better option for supporting education in India or overseas. These loans are widely accessible and may be used to meet any costs that you think are needed. For more related information, visit Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

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

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

08-11-2023

Personal Loan

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

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

08-11-2023

Other

How To Calculate Gratuity Online In India?

The term “gratuity” refers to the additional payment that an employer provides to an employee in return for the employee’s labour. Nevertheless, the incentive is only offered to workers who have been employed by the firm for at least five years. The statute that addresses this is the Payment of Gratuity Act of 1972. The gratuity can be paid out earlier than the typical five years if an employee is rendered unable to work due to an accident or sickness. Your most recent salary and the total number of years you worked for the firm are the two most important factors when determining your gratuity amount. In India, one can use a Gratuity Calculator Online to know their Gratuity amount. [B-01] Gratuity in India An employer may sometimes provide a one-time payment to an employee as a gratuity. The money is provided to the worker as a token of gratitude for the job they have done for the company. Workers are provided with gratuities to assist them financially throughout their retirement years. The Payment of Gratuity Act of 1972 lays forth the regulations regarding the provision of tips and their receipt. A worker must fulfil a number of prerequisites to qualify for a gratuity under this Act. It is required that the individual have worked continuously for the firm for at least five years. You can find Gratuity Calculator India to know more. The qualifying period for gratuity begins before the 5-year milestone and continues for as long as the employee is alive or unable to work, whichever comes first. It is paid at the rate of 15 days’ wages for every completed year. The maximum amount that may be granted is Rs. 10 lakh. If there is anything left over, it will be considered a gift, also known as ex-gratia. Eligibility Criteria for Gratuity You should be eligible for a pension when you retire. You should have retired. You should have worked at the same company for five years straight. You die or become sick or hurt due to an accident or illness. How Gratuity is Calculated To put it another way, how exactly Gratuity calculator online works? You can use the Gratuity Calculator India to determine the appropriate amount of money. If you have worked for a company for at least five years and want to calculate your gratuity amount, use a gratuity calculator online. It is a useful method to estimate how much money you will get as gratuity when you leave the company. You will have to enter the most recent salary amount received and the total time of your employment at your current company. Within a few short moments, the calculator would come up with the total gratuity amount. Employees That Are Covered Under Payment Of Gratuity Act The first category includes all workers who are qualified to receive gratuities following the Payment of Gratuity Act and who do not fall into any other categories. The computation that follows is the one that is used to determine the gratuity for these employees: Gratuity = n*b*15/26 Where n = the tenure of service b = the last drawn salary plus dearness allowance If you have your most recent paycheck in hand, multiply that by 15 days and the number of years of service you’ve already put in. According to the Gratuity Act, this amount shouldn’t exceed Rs. 20 Lakhs. If it does, the excess will be considered as ex-gratia. Take, for example, the case of Ms Smith, who has been an employee of XYZ Pvt. Ltd. for the past ten years. According to the information on her most recent pay stub, she made a total of Rs. 40,000 with the dearness allowance. Her gratuity amount will be: 10 × 40,000 × 15/26 = Rs. 2,30,769 approximately The total amount of the gratuity she will receive will be 2,30,769 approximately after ten years of her service in the same company at a Rs. 40,000 salary. For Employees Not Covered Under the Gratuity Act It is essential to remember that the Gratuity Act does not prohibit employees from receiving gratuity even if they don’t fall under the provisions. Employers can provide gratuity even to those who are not covered under the Act. The formula to calculate gratuity for them is: G = n*b *15/30 Instead of 26 days, here 30 days are taken into account. Let’s still consider the above-mentioned example and assume Ms Smith is not covered under the Gratuity Act. We are considering the same parameters of her job which is ten years of employment at a salary of Rs. 40,000. In this case, her gratuity amount will be: 10 × 40,000 × 15/30 = Rs. 2,00,000 So, you see, with the same conditions of employment, you will still receive a gratuity, but lesser, if you are not covered under the Gratuity Act. You can use the gratuity calculator online for finding out your gratuity amount in both cases. [B-02] Conclusion Using a Gratuity Calculator Online will help you understand how much you will get upon leaving. This is vital information that can help you plan better for the future. This is something that every working individual should check out. To learn more about Gratuity Calculator, you can contact Piramal Finance.

08-11-2023

Personal Loan

What is the need for improving a personal loan application?

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

08-11-2023

Personal Loan

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

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

08-11-2023

Personal Loan

Complete Guide on Personal Loan Prepayment Calculator

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

08-11-2023