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Personal Loan

How Personal Loan Is Benefited In Medical Emergency?

The economic impact of COVID-19 was felt by people from all sections of the society. The working class suffered the most, with lost livelihoods and medical bills piling. The global pandemic has taught us a valuable lesson — to be prepared for medical emergencies. Many of you may have health insurance coverage either individually opted for or covered by your employer. This leads to a few questions: Do you need a medical personal loan if you have health insurance? Can a personal loan be used to cover medical expenses? The answer to both questions is a yes. Let us understand how a personal loan can significantly help during medical emergencies. [B-01] Medical Personal Loan or Health Insurance? Many salaried individuals and those with other sources of income have health insurance coverage. A health insurance policy offers an extensive range that covers treatment costs in India and abroad. In addition, one can also claim a tax deduction under Section 80D of the Income Tax Act of 1961. However, some treatments and charges are not covered by health insurance. Also, there are many situations where you might need to make a quick visit to the hospital. Often, such expenditure forces people to dig into their savings despite health insurance coverage. So you might have saved some money through a tax deduction, but you may end up using it to support the additional costs. In such cases, a medical personal loan can offer huge financial relief. Top Benefits of a Personal Loan in Medical Emergencies A medical personal loan can help you pay for medical costs that your insurance won’t cover. For example, if your health insurance covers a hospital stay for a maximum of 5 days, you can opt for a personal loan to support the additional costs. Your health insurance may not cover some treatments and surgeries. For example, pre-existing illnesses and cosmetic surgeries might not be included in your health insurance. Instead of exhausting your savings, a medical loan could help you manage such situations better. Hospitals that don’t offer cashless facilities might make you spend from your pocket or disturb your savings. For example, if someone elderly in your family shows severe symptoms, there is no time to reach a network hospital far from your home. You may have to pay a huge amount for emergency admission to the nearest hospital. A personal loan for medical purposes usually has fast disbursal. If you are eligible for a medical personal loan, such expenses can be taken care of easily. Many non-medical and diagnostic tests might require you to pay from your pocket. For instance, the costs of scans and blood tests might have to be individually taken care of. Instead of using money from your savings, which you may have reserved for something else, you can opt for a medical personal loan to take care of such miscellaneous costs. Coming back to the COVID-19 pandemic, many patients who recovered have had to spend a huge amount of money on alternative therapies and health supplements during their recovery. A medical personal loan may have helped them leave their savings undisturbed and continue their road to recovery. Advantages of a Personal Loan During Medical Emergencies Easy application and disbursal You can apply for a loan online through the bank’s official website. The application process is as quick and easy as the loan disbursal. Applicants with a good record often receive money on the same day, sometimes within hours. This is a great relief during a medical crisis when every moment is critical. Limited paperwork Like other personal loans, a medical loan also requires limited documentation. Usually, applicants only need to submit their KYC (Know Your Customer) documents, bank statements, and salary slips. Collateral not required Because a medical personal loan is an unsecured loan, you don’t need any collateral. However, your lender will review your application to ensure you can repay the loan. Flexible repayment One of the most significant benefits of a personal loan is that the applicants can choose to repay in two to six years. The flexible repayment helps them decide whether they would like to pay off the loan in 12 months or 60 months, depending on their existing debts and expenses. Savings and investments undisturbed You may have an emergency fund for unforeseen situations in life. However, it is not fair that the money from that account is repeatedly used to take care of medical emergencies. Also, pausing investments to divert extra cash or savings for medical purposes would not benefit you in the long run. Therefore, a medical personal loan is the best option, as it lets you save and take care of a medical crisis. [B-02] Conclusion Life surprises us in many ways, and sometimes the surprises are unpleasant. A medical emergency can be overwhelming and financially exhausting. A family member’s sudden illness, a freak accident, a child getting injured while playing, or even regular care for the sick and elderly are some situations where you must think about how a medical personal loan would benefit you. Many individuals keep loans as the last resort and first exhaust all avenues, including asking for help from family and friends. However, a personal loan, such as the Mahindra Finance personal loan, puts you in control of everything. A personal loan is easy to get if you are an eligible applicant and allows flexible repayment. In addition, it will enable you to approach medical crises armed with funds and a little relief about not having to exhaust savings on additional costs. You can check more informative blogs on Piramal Finance and explore their products and services.
08-11-2023
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Personal Loan

Why Do People Opt for Online Personal Loans?

A home loan can be the best investment you ever make. It’ll come in handy when you start planning your retirement. However, many people have to face certain issues when it comes to buying a house, even though they meet all the requirements as per the given rules and regulations. In this case, they have no option but to opt for online personal loans with their requirements & terms by taking the help of various types of such loans. The number of people opting for personal home loans has increased drastically year on year, and the number of banks that offer these loans has also been increasing considerably. This makes it a rather complicated process to find the right bank or finance company. Let’s look at some of the popular reasons why people opt for these loans so that you can make a better decision as to your next bank or lender. [B-01] Safety One of the main advantages of an online personal home loan is that it is safe to use. You can easily access your account from anywhere and from any device, like a laptop or mobile phone, which makes it a great option for people who travel a lot. You don’t have to worry about losing access to your money because all transactions are done through the internet, so there are no chances of getting trapped in any kind of fraud. Another advantage is that you can check whether or not you have enough funds left to pay off overdue dues before making another payment; this way, you’ll be able to make sure that there won’t be any issues while paying back loans with ease! Convenience These days, people prefer to get their financial needs sorted out online because it is far easier than going through an offline process. Online personal loans have made things much easier for borrowers in terms of convenience. They can apply for these loans anytime they want and at any place, they feel comfortable doing so. This makes it easy for them to track the status of their loan and how much money they need, as well as when they will be able to pay back what is due after the completion of the repayment period (normally 12 months). Such loans are ideal for borrowers who can’t afford to pay back their loans in one go. These loans are also suitable for those who don’t have a credit history and want to improve it. You may not be able to get immediate approval from your bank or any financial institution that issues personal loans, but online lenders offer speedy processing of applications. Speed Online personal home loans are usually faster than the traditional method. Many online services can help you get approved for a home loan without visiting the bank or waiting in line. No need to visit the branch You do not need to go to the branch to submit your documents, fill out forms, and physically sign documents, nor do you need to wait in long lines at bank offices.Instead, all these can be done from home using the internet banking facility provided by most banks these days, which makes things easy for people who do not want to go out of their homes every time they want something done! Privacy You can apply for an online personal home loan without any intervention from third parties. This means that you will not have to visit the bank’s office to process your loan application or undergo a credit check. Also, there are no delays in processing your loan application, and you don’t have to give out sensitive information like your Social Security Number (SSN), date of birth, etc., which banks usually ask for when they process paper-based applications. You have complete control over how much information about yourself should be shared with prospective lenders and other financial institutions, such as insurance companies or brokerage firms, who may partner with them on certain products or services sold through their website(s). You can also choose to share some but not all parts, depending on the best type of transaction for each scenario! Flexible terms An online personal home loan offers competitive rates and flexible terms. Most banks or lending institutions offer their customers a choice between fixed and variable interest rate loans, which means that you can choose the one that best suits your financial requirements at any given point in time. You can also choose the term of your loan depending on how long you plan to stay in your home. If you want to refinance or buy a new property, then an adjustable-rate mortgage (ARM) would be more suitable than a fixed-rate mortgage (FRM). In addition to that, you can complete the whole application process on your own time, which means that it doesn’t matter if you have a busy schedule with many commitments. Lower rates of interest As a personal loan, your interest rate is lower than that of other types of loans because it’s not secured against collateral. The lender may be willing to give you a lower rate because they don’t need to worry about repossessing your property or getting paid back if you default on payments. However, this doesn’t mean that you can borrow as much money as possible. Personal loans are still loans, and they will have to be repaid with interest. Availing of a personal loan through a bank or NBFC’s online platform can save you both time and money. The key is to keep all the documents ready so that you can visit the website and fill out the application form within a few minutes. Aside from this, online home loans also give you full privacy without any outside interference. [B-02] Conclusion Today, there are many online platforms where one can apply for a personal loan without any intervention from third parties. These include companies like Piramal Finance. The key is to keep all the documents ready so that you can visit the website and fill out the application form within a few minutes. Do visit their website and explore their products and services. https://www.piramalfinance.com/personal-loan
08-11-2023
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Personal Loan

How an Instant Personal Loan Helps You in an Emergency

Believe it or not, one is always aware of the uncertainty attached to life. Financial crises can occur at any time. On the other hand, personal loans can help people in difficult situations. With benefits such as reduced control, zero fraud, flexible repayment tenure, and easy access, one can get their work done quickly and without stress. People still favor traditional loan repayment methods such as borrowing, selling property, or breaking fixed deposits to make ends meet. So, helping oneself in crisis has become simple without giving up anything. Instant personal loans can help you through bad times. The banking system is rapidly changing to meet the needs of the public. You can apply for such loans from the comfort of your own home. [B-01] Benefits Approved quickly: In the event of an emergency, instant personal loans are approved quickly. This works best in the people’s favor. Though it varies from company to company, minimal paperwork is usually required. Reachable interest rates: Because the market is filled with competition, interest rates are low. As a result, you won’t have to pay a high interest rate on a loan. There are no security deposits required: One of the fascinating reasons for choosing an instant personal loan is that people are not required to deposit their property as security. Loans are easily approved without a guarantee. As a result, nothing is at stake. No fixed loan scale: It is fixed as per the person’s income and ability to pay. However, there is yet to be a definite range for the maximum amount of loan that can be taken. As a result, you can go for loans that suit your needs. Zero fraud: The RBI and many other banks keep an eye out for the evils that lenders can commit. There is a basic set of rules that companies must follow to avoid cheating. No restrictions: Instant loans are here to help you in times of need, and there are no unnecessary restrictions stopping customers from taking advantage of the loans offered. Computerize: The use of digital transaction modes is a boon to the modern world. People can get their loans approved without standing in long lines. Customers can get money in minutes. You are no longer required to run around different branches. Search online for agreeable options and select what best suits your needs. Flexible repayment options: It is only possible to pay part of the amount at once. As a result, you can set the EMI term as per your desire. But it should be noted that the longer the tenure, the greater the net interest outgo. It saves time and energy: The process is simple, takes little time, and is approved quickly. People can invest this time in being with their loved ones. Dhani Personal Loan Dhani Loans and Services, a subsidiary of Dhani Services Limited and formerly known as Indiabulls Consumer Finance Limited, has launched the Dhani Loans and Services Personal Loan, which is available for application online. Dhani was created to make your personal loan needs easier. For more details, call Dhani personal loan customer service at 0124-6555-555. Personal Loan Instant Personal loan instant could be used in the following situations: Sudden medical situations: While health insurance acts as a boon, skyrocketing hospital costs can sometimes be costly. This is one of the most common reasons why an emergency loan is required in the first place. Paying off debts: Credit card or other loan interest rates can strain the budget or income, making it impossible to pay off debts in the time allotted. During a time of crisis, an instant personal loan can be a lifeline. Higher education or foreign education: Educational costs can sometimes appear out of reach in India or abroad. They can easily apply for instant loans and get approved for them without having to give up school or work. The banking system is rapidly evolving to meet the diverse needs of the public. One can apply for such loans very easily, with no physical labor involved. Although obtaining an emergency loan is now very simple, you must still have the required knowledge of all such loans to make a sound decision and avoid any future problems or risks of any kind. Ways to get an instant personal loan online 1. The first step is to select the best personal loan apps. 2. Get the app from your phone’s Play Store. 3. Sign up with your social media profile and get started. 4. Enter the amount of the loan and the amount of the loan. 5. Upload the necessary documents to the app. 6. You can use the app to check the status of your instant loans. Personal loans Instant are used to pay for immediate expenses. People can contact lenders who offer quick loans to avoid waiting several days for their loan to be paid. However, receivers must always consider what payment terms the lenders expect. [B-02] Conclusion Always remember that Personal Loan Instant is available to assist you in unavoidable situations. However, one must be thorough with the loan terms and compare them to those of other banks before making a sound decision. Consider factors such as fees, interest rates, penalties for late EMI payments, loan tenure, etc. Please do not choose a personal loan from any lender simply because they offer low EMIs. Use a personal loan EMI calculator to determine how much you will be paying for the loan. Accidents are unexpected, and people are prone to panic in stressful situations. A personal loan instant is an unsecured loan given to an individual for a short- to medium-term period. They offer affordable, and low-interest rates to help you raise funds quickly. For more information, please visit Piramal Finance’s official website.
08-11-2023
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Personal Loan

Top 10 Pros and Cons of a Personal Loan

Personal loans are the best way to meet your financial needs. They can be used for any purpose, from consolidating debt or investing in property to buying a car or home. They are also an excellent tool for building and improving your credit scores. Here are some of the advantages of getting a personal loan. [B-01] Flexibility Personal loans come with a lot of flexibility in terms of the repayment schedule and payment intervals. Choose the one that suits your needs perfectly! You can use it to pay off your debts, buy a new car, or home, or even for holidays. You can repay the loan anytime you want, with few limitations on when you have to pay back the money. Affordable The interest rates on personal loans are also very low compared to other types of loans. This means that they are affordable as well! A better option for short-term needs Personal loans are a good option if you want to borrow money for short-term needs. You can use them for any purpose, and the interest rates are usually lower than those of other types of loans, such as credit cards or car loans. Interest rates are fixed for a certain period The personal loan interest rate is fixed for a certain period and is not dependent on your credit score. Fixed interest rates are good for borrowers as they know how much they will be paying in interest. It is not possible to predict the future, so fixed interest rates are more beneficial than variable interest rates. Longer tenures for repayment Instead of paying off your loan in one shot, as other loans do, this kind of credit can be used as an investment option. You can take advantage of low-interest rates and long maturities (the amount payable over time). You can use it to buy a house or any other major expenditure, and you won’t have to pay back the money immediately. Less documentation & easier to avail You can get a personal loan without any documentation, guarantor, or collateral. The entire process is quite hassle-free. No limitation on utilizing the money You can use the money for any purpose, as long as it does not violate any law. If you need funds that are not tied to your credit card or bank account, a personal loan is the best option for you. No asset or collateral is required Personal loans are unsecured, meaning you don’t have to pledge any collateral for them. This makes the application process easier and faster than for other types of loans. Improves credit score Personal loans can improve your credit score. When you take a personal loan, it reduces your debt-to-income ratio. This helps you get a loan in the future by improving your credit history. No stress on guarantors Loans are quite stressful for many guarantors, especially if the loan amount is large. The best thing about personal loans is that they are available to people without a guarantor. Personal loans are a popular way to get the money you need to make ends meet. But there are some cons to consider before you sign on the dotted line. Here are the top ten cons of personal loans. Penal interest Penal interest is charged when you are late in making payments. This means that the lender can charge a higher amount of interest than normal, but it’s not illegal for them to do so. Hidden charges Hidden charges are often included in the rate of interest. They are not apparent at the time of application and can be difficult to detect. Some examples include application fees, late payment surcharges, etc. Processing fee The processing fee is a non-refundable fee that you will be charged by the lender to process your application. This means that if you don’t receive approval for the loan, they’ll keep the money. Origination fee The origination fee is a fee charged by the lender to process your application. This fee will usually be a percentage of the loan amount and may not be disclosed upfront. But, it will be added to the total loan amount. Some lenders also charge an additional interest rate when you apply for your loan, so this can add up pretty quickly. Late Payment fee You will be charged a late payment fee if you are late on your loan. Prepayment fee The pre-payment fee is the charge you pay when you repay your loan early. This can vary by lender, but it’s usually a percentage of the remaining balance. It will be added to your statement. Rollover fee Roll Over fee is the charge that is levied by the lender for converting the loan into another one. This fee is charged when you extend the loan tenure beyond its original term. Collateral pledge is required The collateral pledge is a security deposit that you pay to the lender. The lender then holds it as collateral for your loan. The fee for this service can be anywhere from 1% to 5% of the total amount of your loan. If you fail to repay your loan on time or at all, they can sell off your property (or other assets) at any time after taking ownership of them—and they’ll likely do so without warning! No flexibility in the repayment structure You may also find that your bank doesn’t offer flexible payment options like interest-only or even principal-only loans do. If they do, they charge extra fees for doing so! This means that if you want to be able to pay off your balance early without penalty, then don’t take a personal loan. Personal loans can be bad for you in the long run They can be good for you in the short run, and sometimes they even help you out of a financial situation that would otherwise become much worse. However, they tend to have a high-interest rate and may not be suitable for everyone who wants a loan. [B-02] Conclusion Personal loans have both merits and demerits. Consider everything carefully before taking a personal loan. If you have any questions, please don’t hesitate to reach out to us at https://www.piramalfinance.com/personal-loan.
08-11-2023
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Personal Loan

Beginner’s Guide on How to Apply for a Personal Loan

Personal loans are popular among Indian bank customers. This is because they provide fast access to money to cover urgent requirements. A personal loan is money borrowed from a lender for almost any reason, such as repaying debt, financing a sizable purchase like a car or boat, or covering a significant expense like a wedding or vacation. Online lenders, regional banks, and credit unions all offer loans, and the money is given to the borrower all at once. Once you get the money, you must keep paying the loan until it’s all paid off. It is easy to get money. Many lenders issue loans in a couple of seconds. This blog will discuss a few points you should consider when applying for a personal loan for the first time. [B-01] Points to Keep in Mind When You Apply for a Personal Loan Check Costs and Fees Personal loans are subject to several fees, including management fees, foreclosure expenses, etc. You can be prepared to pay such charges later if you search for them in the loan agreement or on the lender’s webpage. Review the Foreclosure Guidelines Lenders typically charge foreclosure costs. They do this by returning a property purchased with borrowed funds since the funds were not repaid as agreed. Before you apply for a personal loan, you should carefully read the foreclosure rules to find out how long you have to pay off the loan and how much it will cost. Do Not Consider 0% EMI Plans Lenders always have something savvy up their sleeves. One such trick is the 0% EMI plan. It leads you to assume you are receiving the loan for free and only need to return the amount borrowed. The higher processing fees associated with all these plans indicate that you’ll be paying further towards such costs. Think About Your Current Debts Consider your current debt when you apply for a personal loan. Consider your debt-to-income ratio to determine if you will truly have enough money to repay the loan you want. You can apply for a personal loan if your debt-to-income ratio is under 30%. If it is greater, you should consider other borrowing choices. Choose the Best Lender Selecting the best lender requires extensive study and comparison. This is because many banks and non-banking financial companies offer personal loans at competitive rates. Lenders continue to bombard consumers with texts and calls providing loans and other financial services. It’s vital to avoid responding to such calls and texts. If you’re interested in applying for a personal loan, consider your possibilities online and make a well-informed choice. How to Get a Personal Loan? Understand Your Credit Score Your chances of being authorized to apply for a personal loan with the optimal rates and terms will increase if your credit score is higher. If the credit score is low, check your credit reports for inaccuracies and take action to increase it before applying. Reduce Your Debt (If You Can) You may also be eligible for a loan with favored conditions if you have a lower debt-to-income ratio. If yours is high—say, 45% or higher—paying off some debt or boosting your income will be beneficial. Obtain Estimates from Various Lenders Get loan estimates from a few lenders once your funds are in order. Compare loan amounts, loan terms, annual percentage rates, and the standing of lenders. Prequalification is a service provided by some lenders that lets you estimate your loan conditions without negatively impacting your credit. Send Paperwork to Your Lender You must apply for a personal loan and provide numerous financial details once you have chosen a lender. This could consist of pay stubs or bank statements. Be prepared to provide proof of your ability to make payments if you don’t have a job. Unemployment benefits are one alternative source of income that some lenders will accept. Obtain the Funds If the lender approves your loan application, they will pay you the money within a few business days. After that, you can put the money to use. You can protect your credit and avoid late fees if you set up payment reminders or automatic payments. Paperwork Required to Apply for a Personal Loan Here is a list of documents and information that must be provided when you apply for a personal loan: PAN Card Bank Account Number IFSC Code Age Proof Address Proof Employment Details Proof of Income Bank Statements Make sure all documents are current and accurate. When you apply for a personal loan, your documents must be real to reduce the likelihood of the loan being denied. Genuine information can expedite the procedure without requiring multiple checks. Your loan will be approved, and the loan money will be credited to your bank account once the information has been reviewed and verified. The amount borrowed must be repaid in EMIs. [B-02] Wrapping Up Personal loans are a smart option if you have a stable income and a good credit score. You can apply online for a personal loan from the comfort of your home. The process is simple. You can also apply any time you want, and most lenders offer customer support if you need. You can repay the loan with affordable EMIs split over 3—24 months. This prevents you from running out of money when you need it the most. Although qualifying for a personal loan is quick and easy, you must abide by a few key guidelines. It clears up any vagueness and guarantees a smooth borrowing process. Additionally, you might be able to adjust your tactics to make a wise decision. It is vital to do proper research. Choose a lender that best fits your needs and understands them. This will prove to be helpful in the long run. You can visit Piramal Finance for more blogs related to how to apply for a personal loan. They also offer a wide range of products and services. You may take a look at those as well.
08-11-2023
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Education

5 Myths about Fixed Deposits That You Thought Were True

SIPs, liquid, balanced, debt funds, tax-free bonds, PPF, EPF, and other alternative assets may be popular. But some say nothing is as safe and easy as a fixed deposit. It’s a common choice when it’s time to write down investments at the end of a fiscal year. But all this certainty and ease of life come at a price! By reading this article, you’ll learn the truth about some of the most common myths about fixed deposits and the interest they earn. Read on to learn more about investing in FD so you can use what you learn the next time you want to buy one. [B-01] What does a fixed deposit mean? Fixed deposits are one of the most common ways to invest in FDs. Even though SIPs, liquid, balanced, and debt funds, stock picking, tax-free bonds, and other investment strategies get a lot of attention, the truth is that nothing beats the security and ease of a fixed deposit. Fixed deposits should be part of your portfolio, even though they don’t give you the best returns and aren’t tax-friendly. If you know of another investment strategy other than investing in FD that is as simple, safe, liquid, free of monitoring, and risk-free, please let us know. Because there isn’t any. The trade-off is less tax efficiency and much lower returns, but in many cases, returns may not be the only thing that affects your investment decisions. If you are starting to feel better than many fixed deposits mainly sitting unused in your bank accounts can now be justified, you can give a word of caution. On your fixed deposit, you are getting interested. Taxes can also be taken out by the bank (TDS). But you could owe more taxes. And if you still need to pay those bills, you could be in danger. Yes, when you file your income tax returns, you must figure out how much more tax you have to pay because of the interest on your fixed deposit and bear it. This could be in addition to any TDS the banks may have thought about. If you have been ignoring that, you should also know that not knowing the law is not a good reason to get out of trouble. If you correctly handle your bank’s fixed deposit interest, you could avoid getting into a lot of trouble with the tax man. 5 Myths about Fixed Deposits TDS (tax deducted at source) Fixed deposits are taxed, which is true, but only some have to pay taxes. Yes, you did read it right. Interest from a fixed deposit is added to a person’s total income under “income from other sources.” So, if you earn more than Rs. 10,000 in interest in a financial year, your TDS will be 10%. If a company’s deposits earn Rs. 5,000 in interest in a fiscal year, TDS is taken out of those deposits. People who are too young, stay at home with their kids, are very old, or have no or very little money could avoid TDS. Forms 15G or 15H must be turned in to avoid TDS. If you are over 60 and don’t have a job, you won’t lose any money to taxes, and you might even get a higher return on your FD. FD Provides Tax Benefits If you’re interested in investing in FD, you need to know that not all of it saves you money on taxes. Section 80C of the Income Tax Act says that only certain deposits can get tax breaks. For example, you must lock up your money for at least five years to get tax breaks. The deposits also can’t be taken out or used during this time. Fixed Deposits That Receive Regular Interest Payments There are two kinds of fixed deposits: one where you get interest payments at regular intervals and the other where you get the full amount (the principal plus bank interest) when the account matures. The second option gives you more benefits. How? That’s the magic of adding things up. The bank always multiplies and adds up the interest it pays on a cumulative deposit. Cash Crunch is an Early Withdrawal Most banks let you take money out of your fixed deposits in parts if you need to get money out for an emergency. At the same time, the balance that has yet to be paid off keeps earning interest. Investing in FD in the Name of a Family Member Giving money to a spouse or child is not taxed. When investing in FD, however, the product is added to the giver’s income and taxed correctly. Therefore, keep in mind that the interest on any fixed deposits you make in a family member’s name will be taxed as part of your income. So it’s best to stay away from it. How do bank fixed deposits work? Most people think wrongly that fixed deposits can only be made at public or private banks. You can talk to some well-known businesses and NBFCs that offer fixed deposits to regular customers. The downside is that interest rates at these institutions are likely to be higher than those at banks. On the other hand, you might not get appealing benefits from these institutions, like the ability to change the length of your fixed deposit, access to your account online, or insurance coverage. [B-02] Conclusion Fixed deposits and investing in FD should be part of your portfolio, even though they don’t give you the best returns and aren’t the best way to save on taxes. This investment choice is easy to understand, comes with a guarantee, is always available, doesn’t need to be tracked, and has no risk. Even though fixed deposits and the interest they pay may seem simple, there are a lot of misconceptions about them. You can visit Piramal Finance to learn more about these and make a good choice.
08-11-2023
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Personal Loan

How Government Employees Can Apply for Personal Loans in 2025

Government employees, whether central, state, PSU, railways, defence, education, healthcare, or local bodies, are often seen as low-risk borrowers because of stable income and predictable service benefits. That stability can translate into faster approvals and better terms. Still, approval isn’t automatic. Lenders assess your overall profile before deciding the loan amount, interest rate, and tenure. This guide explains eligibility, documents, the step-by-step process, and practical tips to maximise your chances in 2025. Why government employees often qualify easily Stable salary and job continuity: Regular credit of salary reduces perceived risk. Predictable benefits: Pension, gratuity, and leave encashment (where applicable) strengthen the profile. Clear documentation trail: Employee ID, salary slips, and Form 16 make verification simple. Important: Stability helps but lenders still check your credit score, income, existing EMIs, and years remaining until retirement. Eligibility snapshot (2025) Exact criteria vary by lender, but most look for: Age: Typically, 21-60 years at loan maturity Employment type: Central/state government, defence/paramilitary, PSU, government-aided institutions, etc. Work experience: Usually 1–3 years in service (more is better); for probationers, some lenders may wait for confirmation. Minimum income: Commonly ₹15,000–₹25,000 net monthly (varies by city/tier) Credit score: 750+ is ideal for quicker approvals and better rates. Debt-to-income (DTI) ratio: Total EMIs ideally within 60–65% of your monthly income Years to retirement: Lenders prefer the tenure to fit comfortably within your earning years; if the loan runs close to retirement, you may be offered a shorter tenure or asked for proof of pension/retirement corpus. Documents you should keep ready Having your paperwork in order speeds up approval: KYC: Aadhaar, PAN, recent passport-size photo Address proof: Aadhaar, voter ID, passport, utility bill (current address especially important if you’ve been transferred) Employment proof: Government/PSU ID card, appointment/confirmation letter or service certificate Income proof: Last 3–6 months’ salary slips and bank statements showing salary credits; Form 16/latest ITR (if asked) Other (if applicable): Pension order for superannuation-near cases, NOC if the lender needs any employer confirmation (not always required), and any ongoing loan statements. Step-by-step: How to apply in 2025 The process is largely digital now, especially with leading NBFCs. Check eligibility onlineUse the online eligibility tool. Enter age, employer category, net income, and existing EMIs. This gives a quick go/no-go and an estimated amount. Estimate your EMIBefore you apply, ensure the EMI fits your monthly budget. You can always use the Personal Loan EMI Calculator for better planning. Fill the online applicationProvide personal details, employment information, and loan preferences (amount, tenure). Upload documentsKYC, employment proof, salary slips, and bank statements. Ensure the bank statement shows regular salary credits. Verification & credit assessmentThe lender checks your credit score, employer category, DTI ratio, and documents. They may call you or your HR for simple verification. Loan offer & e-agreementIf approved, you’ll get a sanction letter with the loan amount, interest rate, tenure, EMI, processing fee, and prepayment/foreclosure terms. Review carefully before e-signing. DisbursalFunds are transferred to your bank accountoften within 24–48 hours after final approval. How interest rates generally work Fixed vs. floating: Personal loans are usually fixed-rate, so your EMI doesn’t change over the tenure. What influences your rate? 1. Credit score and repayment history 2. Employer category (central/state, PSU, confirmed service) 3. Net take-home salary and DTI ratio 4. Tenure and loan amount NBFC vs. bank experience: NBFCs often offer faster processing and flexible documentation; banks may have stricter internal checks. Choose what suits your timeline and profile. Note: Piramal Finance offers personal loans starting *at 11.9% p.a.**, with flexible tenures and quick, digital processing suited to government employees who value speed and transparency. Tips to strengthen your application Aim for a 750+ credit score.Pay bills on time, keep credit card utilisation under 30%, and avoid multiple hard inquiries in a short span. Right-size your loan amoun.tKeep EMIs within 60–65% of your monthly income (including existing EMIs). If needed, lower the loan amount or extend the tenure slightly. Choose tenure wiselyIf you’re close to retirement, consider a shorter tenure to finish the loan comfortably within your service period. Consider a co-applicantA spouse with stable income (especially another government employee) can improve eligibility and may unlock a better rate. Keep records cleanEnsure salary credits, allowances, and any deductions are clearly reflected in bank statements. Update KYC with your current posting address. Avoid back-to-back applicationsToo many loan/credit card applications in a short period can reduce your score and lead to rejections. Check total cost, not just the rate.Ask for the APR, which includes interest and fees (processing, documentation, etc.). Understand prepayment/foreclosure rules. Special scenarios for government employees Frequent transfers: Keep your address proofs updated; consider e-KYC and DigiLocker for quick document access. Probationers: Some lenders may wait for service confirmation; others may consider proof of continuation and strong income. Approaching retirement: If tenure extends close to superannuation, lenders might reduce the tenure or ask for proof of pension/retirement corpus. Defence/paramilitary: Keep your service ID and posting documentation handy; if you’re in a high-mobility role, ensure communication details remain current. Common mistakes to avoid Applying to many lenders at once (multiple hard pulls hurt your score) Over-borrowing and stretching your DTI beyond 65% Ignoring fees while comparing offers (processing fee, insurance, etc.) Not reading the prepayment/foreclosure terms. Missing EMIs after disbursal (this damages credit and can trigger penalties) Why consider Piramal Finance Competitive starting rate: 11.9%* p.a. (subject to eligibility) Fast, digital application & verification Flexible tenures (typically 12–60 months) Simple documentation suited to government employees Transparent charges and helpful customer support The bottom line For government employees in 2025, personal loans are straightforward if you prepare well: maintain a strong credit score, keep your DTI healthy, choose a sensible tenure, and organise your documents. Estimate your EMI before applying, compare the APR, and pick a lender that balances speed, flexibility, and transparency.
08-11-2023
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Personal Loan

What is a personal loan, and what are its benefits?

A personal loan refers to money obtained from a lender that can be used for almost any reason. This includes debt repayment and financing a substantial purchase such as a car or a boat. You may also use it to pay for the expenses of a major occasion, such as a wedding or a vacation. Loans are available from internet lenders, local banks, and credit unions, with cash supplied in a flat amount. Once you get the funds, you must keep making payments until the loan is entirely repaid. One of the most significant advantages of personal loans over credit cards is that they possess a set interest rate and repayment duration. [B-01] What is a personal loan? A personal loan is a specific amount of money that you can borrow for many purposes. Usually, personal loans are unsecured. This means you won’t have to put up any collateral to get the money. For example, you may utilise a personal loan to restructure debt, pay for home improvements, 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. What are the benefits of a personal loan? 1. Quick Approval A personal loan takes far less time to process than a home loan. Home loans might take 3–4 weeks. As a result, they are your best choice. Personal loans can be used to satisfy your immediate cash or payment requirements. Keep your credit history solid (CIBIL score of 750+). If so, lenders will have no trouble accepting your personal loan application. 2. Minimal paperwork and accessibility One of the most significant benefits of applying for personal loans is the lack of paperwork requirements. Not only that, but the application procedure is designed with the customer’s convenience in mind. These loans may be obtained online in minutes. Amounts range from Rs. 5,000 to Rs. 5,00,000. Payback terms extend up to 60 months. 3. Enhances credit score Do you have a poor credit score or are you new to credit? If yes, taking out modest personal loans is a wonderful method to improve your score. Also, you have to be careful to return them on time When you pay your EMIs on time and at the agreed-upon interest rate, your credit score will go up. However, you must obtain a loan balance that falls within your repayment capacity. If not, skipping EMI payments might harm your credit score. 4. Versatility A personal loan will be useful regardless of the use case, whether it is for an iPhone purchase, a Swiss vacation, or a house renovation. Also, unlike loans for houses or cars, a single loan can be used for more than one thing. One of the reasons personal loans are so attractive now is because of their flexibility. 5. There isn’t any need for a collateral Personal loans are unsecured, which means they do not require collateral to be obtained. This is why personal loans are easier to obtain than other types of loans such as house loans, vehicle loans, and so on. However, as a consumer, you should be aware that unsecured loans are risky for lenders, so interest rates are often higher to reduce the risk and are typically 1.33% or more each month. What should you remember before taking a personal loan? Now that you’ve learned about some of the advantages of personal loans, here are a few tips to help you pick the ideal loan for you: Check that the amount available is within your ability to repay. Before taking out a loan, be sure you understand all of the terms and circumstances. Personal Loan Interest Rate Calculator from reputable fin-tech businesses or bank sites and select the best alternative for you. What are the different types of personal loans? Unsecured personal loans: The majority of personal loans are unsecured, which means you do not need to put up any collateral to qualify. With an unsecured personal loan, you’ll get a lump sum of money and then return it with fixed monthly instalments over a certain period. Credit-builder loans: Credit-builder loans do not provide you with a line of credit. These loans are put into a lender-controlled savings account, and you make the payments on your account for the length of the loan. Lenders submit your payments to credit bureaus during this time to assist you in creating a history of appropriate credit utilization. At the end of the term of the loan, you will get your complete payment. This payment shall be after all loan costs are subtracted. Secured personal loans: Secured personal loans necessitate that you put down collateral to qualify. You could be able to employ other assets as security instead of cash, such as a house, a boat, or a car. If you fall behind with the payments, the creditor may be allowed to confiscate such assets. Specialized lenders: Some service-oriented businesses provide personal loans to their customers to help them fund their products or services. For example, a home improvement company may provide financing when you purchase a new appliance. These loans are usually easy, but they may not always provide the best rates and conditions. [B-02] Conclusion Personal loans are among the most popular types of loans available today. We’ve only discussed 5 of the various benefits of personal loans. There are many more that contribute to their popularity. Not only are rates of interest reasonable, but the paperwork requirements are simple, and loans of up to Rs. 5 lakhs are available. Simply go to the Piramal Finance website for more information and make sensible economic decisions now!
08-11-2023
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Personal Loan

How to Personal Loan Application Status Online

While technology is evolving like never before, banks and NBFCs have also shifted most of their services to online portals. All thanks to this shift, they now have quicker and simpler ways to solve their customers’ issues. This helps save time and effort for both the banks and the customers. Now, you can apply for a personal loan online and even check its status with the click of a button. Have you applied for a personal loan and visited the bank now and then to know its status? It is now easier to track your loan application status in less than 5 minutes through your mobile phone without making frequent visits to the bank. Learn how you can check your loan status online with the help of this article. [B-01] What is a personal loan? A personal loan is an amount borrowed from a lender at a certain interest rate to meet certain urgent expenses, such as a child’s education or the purchase of a car, or a sudden tragedy, such as any medical emergency for which you need urgent funds. Personal loans are given by commercial banks and non-banking financial institutions (NBFC) to help one meet their personal financial needs. Since you do not have to pledge your assets against a personal loan, it is an unsecured loan. Personal loans are also easier to apply for than other types of loans and take less time to complete because there are fewer steps involved. Features of a personal loan: Source of emergency funds: A personal loan is a good source of urgent funds because it requires fewer documents and is quicker to get. Simple to obtain: Personal loans are also easy to apply for and take less time since there is not much documentation involved. No collateral is required: When taking a personal loan, you will not be asked to pledge your assets against it as collateral. Interest rates: As it is a collateral-free loan, interest rates are also higher. Loan amount: The loan amount is quite small compared to company or business loans since they do not have any land or assets pledged that could fix the loan amount. Eligibility: To qualify for a personal loan, you must have a good credit score. How can you check the status of your loan online? Most banks and other lenders have started giving their customers e-banking services. Tracking your loan status online is now easy and hassle-free, saving you the time and effort of travelling to the bank. Once you are done with your loan application and the KYC checks that the bank conducts, you are given your loan ID and other details. And after all documents and procedures are in place, you can check your loan status using the bank’s and NBFC’s official websites. Many banks often have different ways of offering this facility. While few banks use just a mobile number and an OTP (one-time password) sent to it to log in to their customer portal, other banks might ask for a reference number, PAN card number, or other such details. Once you enter the details asked and they match correctly, you will be taken to your account, which you can use to check the loan status and retrieve other related data from here. You might be asked any or all of the following data while trying to access your account: Reference Number PAN Card Date of Birth Mobile Number Portals for your help: Net Banking Mobile Number or Toll-Free Number Customer Service executives via chat or call both Mobile Application Website How is the online banking facility useful? It is a quick and easy way to access your loan status. It is an easy way to rectify any errors in the application you gave to the bank. It does not charge you any fee for using your account and checking your data. It gives all the data you may need about any service the bank provides aside from loans. Tips to follow for safe banking online With the rise in cyber crimes and fraud, it is crucial to be alert while using any e-banking service, such as checking your loan status. Follow these tips and be safe. If you want to use your bank account on an online bank portal, use private Internet. Avoid using internet cafes or “cyber booths” for net banking. No bank or NBFC would call you and ask for any data about your account, Beware of any such traps. In any case, do not share any bank details like your ATM pin, account number, Aadhar card number, or OTP sent to your mobile number. Also, read the advice from the Central Bank of India: The Guidelines of the RBI on Internet Banking. [B-02] In conclusion: In today’s era, everything is going online, including banking services, making it more convenient, user-friendly, and time-saving for you. If you have applied for a personal loan and wish to know its status, whether approved, rejected, or on hold, you no longer have to visit the bank, wait for your turn, and seek the banker’s advice. You can access your loan approval status using your lender’s website or app. This will help you save yourself time and effort. If needed, take help from wise people you trust or the bank or NBFC, who are always ready to help their customers in every possible way. Piramal Finance has made all your loan and bank-related data just a click away. Also, we strive to make your online banking experience a safe and secure one. We know everything you want to know! Read more about other finance-related topics and make yourself aware of all the related articles on our website. Visit Piramal Finance and explore the finance world on your mobile phone right now!
08-11-2023
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