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Personal Loan

Top 10 Important Documents Required for a Personal Loan

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

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

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

The Most Important Benefits of a Personal Loan EMI Calculator

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

Complete Guide on How to Calculate Personal Loan Interest Rate

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

3 Easy Steps to Get Instant Personal Loan

A personal loan is the kind of fiscal help you seek when you need money for personal reasons. Its substantial defining trait is that you may use it for your own needs without placing any limits on the end-user. Home loans, auto loans, school loans, agricultural loans, equipment loans, and other loans are available. However, the final use of the borrowed sum limits these loans. On the other hand, a personal loan is not subject to this limit. You may use loan money for several goals. It includes wedding costs, vacations, house repairs, further education, etc. You may also seek a personal loan to pay off some of your high-cost debts, such as credit card payments. Personal loans are the most sought-after item on the market due to their flexibility in end-use and rapid access. What Exactly is an Instant Personal Loan? An instant personal loan is a debt a bank grants within a short period. This debt can be approved and disbursed without the time-consuming step of going to the lender for many days and giving piles of paperwork. Instead, if you already have a relationship with the bank, you may seek this instant loan online via the bank’s website or internet banking profile. You can get a quick loan and get it paid back quickly, often within hours of the day you ask for the loan. How Can You Get an Instant Personal Loan in India? Get an instant personal loan in three simple steps. Check to see whether you are qualified. You must check your loan eligibility. The criteria are usually: Be a paid employee or self-employed person Your age should be between 21 and 60 Have a CIBIL score of a minimum of 600 points to get a personal loan quickly An instant personal loan eligibility calculator will help you determine your loan eligibility. You can also check the highest loan sums, personal loan rate of interest, and loan payback terms. Start the loan request procedure You may now start the loan request process. Go to the bank’s website for the instant loan area. When you click the button, a fresh page with an online application will appear. You must complete the online application, including basic information such as your name, residence, contact details, net monthly salary, etc. Submit the paperwork and wait for approval After completing the application, you must send digital copies of your paperwork to KYC. You will have to provide a scanned copy of the PAN card and any other government-issued ID and address verification papers. You must also provide the most recent bank records or wage slips as income and credit score evidence. Add these papers to your online form, submit it, and pay the one-time loan application cost. The bank will check your form; if approved, you will receive a personal loan promptly. How Can You Boost Personal Loan Eligibility? You may increase personal loan eligibility with a few easy steps: Inspect your credit score frequently. It will help you get a feel for your credit situation. Attempt to raise your credit rating. That is feasible if you make on-time payments on your EMIs and credit card bills. By calling the credit agency, you may have any inaccuracies or incorrect items on your credit report fixed. Make an effort to reduce the “income-to-debt ratio.” Close those long-term debts that are draining your monthly cash flow. If you have any spare cash, put it to good use by repaying these debts. You are more likely to be selected for a personal loan if you have less debt. Submit all papers requested by the lender. Make a list of the papers you’ll need before filing a request. It is essential for a quicker process. Provide a co-applicant who is also employed. The debtor has a greater repayment capability when their wages are included in the application. Rejection rates are lower, and you may be able to borrow more money. Avoid frequent work shifts. Several job changes will hurt your application. Even if you have valid reasons for it, the lender may take a different approach when reviewing your loan application. What Are the Advantages of Taking Out a Personal Loan? Quick Approval and Payout: Personal loans are approved and completed within hours. You may apply with a single tap on the bank’s site. Most banks approve your loan within 24 hours, sending the money directly into your account. This enables you to respond to emergencies quickly. Very Little Documentation Personal loans are often approved depending on your income. As a result, lenders only need a few documents for loan processing. In addition, if you are already a client, you may be eligible for a personal loan with no paperwork. Duration of Repayment Personal loans are neither short-term nor long-term. You may repay your loan over a reasonable period of up to 60 months, enabling adequate cash flow planning each month. Transparent Lending Procedure The personal loan application process is quite transparent. Fees and other costs are clearly stated ahead of time. This is so that you may make an informed decision. Furthermore, many lenders provide online account access to your loan account. It allows you to monitor your loan account from anywhere at any time. [B-02] Conclusion You may apply for a personal loan now that you know how to get one quickly to cover emergency or leisure costs. Banks normally give swift loan disbursements, and you will get quick cash in your savings account. Loan approval and disbursement occur within hours for pre-approved loan clients. You may repay the debt in EMIs over terms of up to 5 years.
08-11-2023
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Personal Loan

What is a Personal Loan? Personal Loan meaning and definition

A personal loan refers to a lumpsum amount of money you can borrow for any purpose. Most banks, credit unions, and online lenders offer personal loans. Personal loans are available with minimal documentation, with or without any collateral or security. However, you will have to repay it over a particular period and interest specified by the lender. The repayment is usually made in the form of Equated Monthly Instalments (EMIs). The amount you have to pay as EMI depends on your loan amount, the rate of interest approved, and the tenure of the loan. In addition, you may even have to pay some fees towards the processing of your loan. [B-01] Purpose Behind Personal Loan Some loans like home loans, car loans, or student loans are available only to fund specific expenses. However, you can use personal loans for any purpose. Some of these include: Moving expenses Consolidation of debts Medical Treatment Wedding expenses Vacation Costs Home Renovations Funeral Costs Any other unexpected expenses Nevertheless, a few lenders may restrict the usage of such personal loans by not letting you pay for education or any other specific purpose. Personal Loan vs Personal Line of Credit Unlike a personal loan, a personal line of credit does not offer you a lump sum amount. It is more like a credit card. There is a certain credit limit that will be approved for your loan. You can borrow whenever you require money but within this limit. However, as you borrow money, the available credit limit will keep reducing, unless you start making your payments. Also, a personal line of credit does not come with a fixed end date like a personal loan. The line will be open and available till your account is intact with your lender. Types of Personal Loans Secured Personal Loans – You will have to offer collateral against the amount that you borrow for this type of personal loan. It could be a certificate of deposit (CD), a savings account, an FD or even a physical asset, like a car or house that the lender can use to satisfy your debt, in case you default. Unsecured Personal Loans – These loans do not require any collateral or security. However, these are available only to qualified borrowers who do not pose a risk of defaulting on the lenders. These loans come with a higher interest rate when compared to secured personal loans. How a Personal Loan Works The first step in getting a personal loan is to apply with the lender. This lender could be a bank, a credit union, or even an online lending company. Find the loan application, fill it out, and submit it with the required documents. The lender will consider your personal loan application and decide whether to approve or reject it. They will check your documents and eligibility for the loan. If your details like employment history, income, credit score, etc are up to their preference, your application will be approved. Once the loan application is approved, the lender will share the loan terms with you. If you agree, the lender will finalize your loan paperwork. After that, the lender will transfer the specified loan amount into your account. In certain cases, you might receive a check. You can use this amount as per your requirements. You have to repay the loan as per the terms mentioned in your loan agreement. If you default, you might end up damaging your credit score. In the case of a secured personal loan, you might lose your collateral. The lender can even sue you for debt collection. Personal Loan Interest Before applying for a personal loan, it is important to understand how much it will cost. A lot depends upon the agreed interest rate during the approval of your loan application. Personal loan interest could be a flat interest rate or a decreasing interest rate according to your selection. With a flat interest rate, you will be paying the same EMI amount throughout your loan term. The interest here will be calculated on the total loan amount. However, in case of a decreasing interest rate, the interest will be calculated only on the outstanding loan amount. So, once you make your monthly payment, that amount will be deducted from the outstanding loan amount. Then, the interest will be calculated on the remaining amount. There are several factors a lender would consider before finalizing the interest rate. Some of these include: Income – The higher your income, the lower the risk that you will pose to your lender. Hence the lender will offer you a lower interest rate. Applicants with lower annual incomes cannot expect to get loans at such low-interest rates. Debt-To-Income Ratio – If you are repaying other debts, your lender will calculate how much of your income goes into paying these debts. They will finalize your interest rate depending on the calculation. The lower this percentage, the lower the interest rate you can expect on your personal loan. Credit Score – A decent credit score is a must to qualify for a personal loan, especially if you have opted for an unsecured loan. To get a low-interest rate, you must have a credit score of at least 750. Age – Age is another factor your lender may consider before deciding on your interest rate. If you are nearing retirement, you may not get a low interest rate. The other factors include the nature of your employment, the organization you work for, and the kind of relationship you have with the lender. [B-02] The Bottom Line Now that you have understood Personal Loan Meaning and how personal loan interest is calculated, it is time to search for personal loans. You can try the website of Piramal Finance to get a quick personal loan with minimal documentation. Make sure you understand all the repayment terms before signing the agreement.
08-11-2023
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Personal Loan

All You Need to Know About Personal Loan Interest Rates

Looking forward to gathering more information about personal loans? Want to know everything about personal loans, personal loan rates and their benefits? Eager to buy your dream house or take your family on a vacation but don’t know how to apply for a personal loan? If you answered yes to all of these questions, then buckle up to learn more. We are going to learn everything about personal loans and the rate of interest, eligibility, application prospects, and some of the benefits associated with them. [B-01] What exactly is a personal loan and what is it applied for? A personal loan, like every other form of loan, is a scheme in which you borrow a specific amount of money from the lender, and in return, the lender charges you an interest rate. It is an unsecured form of loan where you have to pay the borrowed money in small installments in a set period of time. You don’t have to show collateral or security funds to the banks to get a personal loan. It gives you a lump sum of money to cover your needs, like paying off your debts, buying a car, or paying for your child’s foreign trip, and you pay that off eventually. Personal loan rates have been very low in recent times, and more and more people are giving them a try. What are some of the benefits of applying for a personal loan in India? There are many benefits to going for a personal loan: Quick approval: If you apply for a personal loan right now, you will almost certainly be approved within two days. Especially, if you have a good credit score, you might even get it sanctioned within 24 hours. No collateral: Unlike other loans, you don’t need any collateral or security deposit to get a personal loan. You can apply for it without putting any of your properties at stake. Low personal loan rates: In most cities in India, personal loan rates are quite low. So this ensures that you can easily pay off your debts according to your convenience. Easily payable: Banks charge a very low rate of interest in the form of EMIs so that you can get away with it. High flexibility: There is a high degree of flexibility that banks provide you, especially to help you repay the borrowed money. You are usually given 5 years of repayment time, in installments. What are the recent personal loan rates in India? The rate of interest varies from place to place, bank to bank, and depends more on the individual who is going to apply. According to recent statistics, most banks in India charge a comparatively low rate of interest. The personal loan rates in India start at 8.5% interest and go up to 35% interest. In many cities like Mumbai, Hyderabad, Nashik, etc., banks charge between 9 percent and 20 percent interest on average. However, banks also provide certain offers at different times to their customers, which you should keep an eye on. You should know about personal loans and rates of interest in detail before you opt for them. If you have a healthy credit score, it will be easier for you to get handsome offers and low-interest rates. A credit score of 750 or more, will get you a very good offer from the bank. What is the eligibility to apply for a personal loan? These are the minimum requirements to apply for a personal loan in India: AGE LIMIT: You should belong to the age group of 21 to 65 years old to be able to apply for a personal loan. This might vary in numbers; sometimes the upper limit might be 60 years only. INCOME: You should be earning a monthly income of a minimum of 25,000 rupees if you are employed by an institution. In case you are a business person or you are self-employed, your annual income should be at least 5 lakhs. WORK EXPERIENCE: You should have work experience ranging from one to three years if you are a salaried individual and from two to four years if you are self-employed. CREDIT SCORE: A credit score of 750 or more is ideal for getting a good personal loan rate in India. A good credit score will help you land a better deal, and your loan will be approved very quickly. How do I get a decent personal loan rate interest? You should focus on improving your credit score because you know a good credit score means a good personal loan rate. You should compare all the interest rates of different banks and then make an informed decision before applying. You should keep an eye on offers so that if banks provide you with some really good deals, you don’t miss out. You should make sure that your loan history is ideal for you to get a good interest rate from the banks. Another good way to get decent personal loan rates is to negotiate with your banks. This might seem ineffective initially when you talk to bank officials, but it works well. [B-02] Concluding There isn’t an exact number on the personal loan rates that banks charge you. But a range of 10 percent to 20 percent is average, and if you have a good credit score, then everything becomes easier for you. Talk to your advisor, and bank executives and assess the dos and don’ts before you decide to apply for a loan. Use a personal loan interest calculator to check different values and see what suits you the most. Piramal Finance helps you out with all the things that are related to personal loans and personal loans and rates of interest. Make sure you visit their page, see their services, and go through their engaging content regarding this.
08-11-2023
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Personal Loan

Everything You Need To Know About Balance Transfer In A Personal Loan

The procedure of moving your outstanding personal loan amount is known as a personal loan balance transfer. This can be done from one bank or Non-Banking Financial Company (NBFC) to another. Earlier, this process was only used to transfer the outstanding debt on your credit card to another issuer. However, it is now applicable to personal loans, home loans, and other types of loans as well. [B-01] Balance transfer personal loan When should you think about getting a balance transfer personal loan? Here is the list: You have high EMIs A reduced interest rate reduces the interest on your EMI amount, lowering the entire EMI value. You wish to increase the amount of your existing loan If you need spare funds and have a strong credit score, you can get them by renewing your loan. You are unhappy with your present lender You can move to a new one that offers better conditions, such as no processing costs and no prepayment penalties. You wish to raise your credit score You can move your debt to get better terms and repay it sooner and more efficiently. As a result, your credit score will increase. Reasons to consider a balance transfer personal loan Here are the reasons to consider a balance transfer personal loan: For a reduced interest rate This is one of the benefits of the transfer option for a personal loan amount. It lowers the interest rate, reducing the lender’s interest burden through cheaper EMIs. In most cases, the new lender will provide a reduced interest rate on the loan transfer. To see how this works, consider the following example: Assume you already have a personal loan with a Rs. 2 lakh balance and a 12% interest rate.The payback period is one year. This brings the EMI to Rs.2000. If you want to transfer this remaining balance to another supplier, you will receive a cheaper interest rate. This lowers your total payback amount. The borrower saves a huge amount of money this way. You have the opportunity to increase your credit score By choosing a balance transfer and returning the personal loan faster, you have a way to strengthen your credit score. For appealing features and tweaks The new lender may provide bigger discounts and perks for your loan. This includes no processing costs, no prepayment penalties, and so on. Choose a bank with superior service Lack of better service is one of the reasons why borrowers transfer to a new lender. A balance transfer allows users to exchange accounts with a bank that provides superior customer service. You can acquire a loan increase on your current loan You should have a solid credit history and a good payment history. If so, the new lender may offer to top up your existing personal loan while you transfer the amount to them. As a perk of the balance transfer, some lenders may offer to lengthen the time you have to pay off your current balance. Loan supplementation Most banks provide top-up loans in addition to personal loan balance transfers. These have highly competitive prices and a significant rate of interest. Eligibility Criteria The eligibility for a personal loan balance transfer is the same as for a personal loan and varies by lender. However, the vital points that most creditors are looking for are as follows: Should already have a personal loan with a bank/NBFC The minimum balance transfer amount should be Rs. 50,000. Should have a clean payback record on a current personal loan over the past 12 months. 1 or more loans or lines of credit in good standing Points to remember before getting a balance transfer personal loan Consider the following factors before you get a personal loan: Determine the actual monetary gain you will receive When you receive an offer, determine the actual benefit of the balance transfer. This will help you assess whether the balance transfer is worthwhile. Examine all of the terms and conditions carefully Take your time going through all of the details and terms of the new lender’s package. Review the fine print to make sure you know what you’re getting into. Consider the following costs You may be compelled to pay processing fees and foreclosure fees with the previous lender. It is advisable to learn about these fees. Do this before proceeding with the balance transfer to determine whether or not the transfer is beneficial. Learn about the extra perks that are available To entice you, the new lender may make many offers. Examine these offers attentively to see whether they truly meet your needs. Then proceed with the balance transfer. Many times, we will buy a product based on its supplementary offerings and then not use any of them. To avoid this, inquire about the terms and circumstances of the offers. Statement of conclusion Borrowers can profit from a balance transfer service by lowering their total interest expense and saving money in the long run. The process of transferring a personal loan amount may be completed soon, with minimal paperwork. Borrowers would find it simpler to pay back the loan sooner as the burden of the interest rate decreased. Their income level also improved over time. A personal loan balance transfer may be profitable if it is carried out after a thorough check and evaluation of the balance transfer offer. [B-02] Conclusion Personal loans are simple to obtain unless your lender begins charging extra interest rates. When this happens, you may want to explore a personal loan balance transfer and switching to a new lender. You may benefit from selecting the most favourable interest rates and terms. With the help of a personal loan balance transfer, you could always get better interest rates and services. To maintain a good credit history, make timely payments on personal loans.Read more Piramal Finance blogs to gain more information!
08-11-2023
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Personal Loan

Benefits and Tips for Using a Personal Loan Prepayment Calculator

Personal loans are by far the most popular form of credit, whether it’s for a vacation, a festival celebration, the acquisition of new technology, or a wedding. They are reliable, can be used for many different things, are easy to get, and don’t need any kind of security. Despite how simple it is to use, it is one of the more costly options. Due to the high-interest rates and the difficulty of making EMIs, many people who have personal loans are thinking about paying them off early or having their loans taken away. The personal loan prepayment calculator is usually a good idea for borrowers. But, they need to do a thorough cost-benefit analysis to make sure they are making an informed choice. [B-01] What do you mean by loan prepayment? A loan is a duty for the borrower, whether it’s a house, a credit card, or a car. Borrowers are expected to pay back the amount they borrowed plus interest over a set amount of time. The monthly payment made by the borrower is also known as the Equated Monthly Instalment (EMI). If the EMIs are paid on time every month, the loan balance will be paid off in full at the end of the loan’s term. Prepayments and advance payments are, nonetheless, a possibility for debtors. Saving money on interest is the driving force behind these prepayments. You can use a personal loan prepayment calculator to make a secure choice. Benefits of the Personal Loan Prepayment Calculator The perks of using a personal loan prepayment calculator are as follows: Easily become debt-free You can save some money and deposit it as a prepayment of the loan’s principal to live a stress-free life free of debt. When you pay off a personal loan early, a portion of the principal will be waived, which lowers your EMI costs. Reduce the demand Personal loans can be prepaid without having to make the whole payment at once. You can also partially prepay your loan balance. Even if you aren’t able to save any money on interest, the amount of debt you have will be on the lower side. The amount of unpaid principal is also reduced when you prepay a loan. As a result, the EMIs will be lower than the current interest rate. Reduce Your Interest Costs At the start of your tenure, you must have enough money to repay the entire loan amount. A one-year lock-in term is common among banks. It implies that you will have a year to repay the debt, in full or in part. But, after the year is through, you can prepay the remaining loan and save a significant sum of money. How Does a Prepayment Calculator for Personal Loans Work? A personal loan EMI calculator that lets you make prepayments helps keep the EMI requirements up to date. The prepayment personal loan calculator needs you to put in the loan amount, how long you want to borrow the money, and the interest rate. The personal loan prepayment calculator will need the loan amount, EMIs paid to date, the prepayment amount, interest rate, and length of your loan if you are already making payments on a personal loan. Using a personal loan EMI calculator with a prepayment option, you can figure out how much money you will save on the EMIs. How Do I Use a Prepayment Calculator for a Personal Loan? With the help of the process listed below, you can use the personal loan prepayment calculator: Step 1: To set the loan amount, move the slider to “Loan Amount.” Step 2: Use the “Tenure” slider to select the loan tenure in months or years Step 3: Next, set the desired interest rate for your loan using the “Rate of Interest” slider. Step 4: Select the “Part Payment Amount” using the slider. Step 5: You can choose the payment months or years, using the calculator’s final and last slider. The EMI and the revised tenure will be shown by the personal loan prepayment calculator. Why is there a price for prepayment? When compared to the cost of lending, the cost of borrowing money from the bank is lower. The bank will receive the difference in the amount after lending it as profit for the duration of the loan. If the borrower plans to pay off the loan balance before the maturity date, the bank won’t get the interest rate it would have gotten if the borrower had kept paying back the loan until it was paid off. Most banks charge a fee to the borrower who pays back their loan early to make up for the lost income. The prepayment fee will vary from one bank to the next and depend on how long the personal loan has been outstanding. The interest rate that banks usually charge is between 4% and 5% of the loan balance. Some banks decide not to charge a prepayment fee after 3 years have passed, while others give a reduction after the due date has passed. [B-02] The bottom line Now, borrowers like to pay off their loans early as it lowers their interest payments and their overall loan balance. On the other hand, it can be tough to pay off a loan early as you might have to pay fees, and your cash flow will go down. If a borrower does not have much money, they may be able to refinance their personal loan to a lender with a lower interest rate. Piramal Finance is the place to go if you need guidance on how to go about getting yourself the maximum personal loan amount. To read more such articles, visit Piramal Finance right now!
08-11-2023
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