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Personal Loan

Why Are People Opting For Personal Loans After the Pandemic Crisis?

The pandemic has affected lives in several ways. The economies of several strong countries were hard hit. Citizens faced a similar crunch. Many struggled financially to meet their basic needs. This was a period of turmoil in which everything changed, from an individual’s daily routine to the economic position of countries. The rise in instant personal loans was another change during this period. [B-01] Why is there an increase in the number of people opting for personal loans? The pandemic and lockdown affected the economy’s financial flow. Many people from various economic strata had to deal with financial issues. These occurred due to salary cuts, unemployment, and job losses. They left them unable to meet their day-to-day needs. Medical emergencies increased daily. It led to people spending a lot in the health sector. It was an attempt to save the lives of their loved ones. People began taking out instant personal loans to pay off debts. They used them for other emergencies in education, health, and other fields. The number of people who became dependent on personal loans increased. What are a personal loan and an instant personal loan? How are they beneficial? The purpose of instant personal loans is to help borrowers during tough financial times. There are two kinds of personal loans. They can be secured or unsecured. Secured personal loans are given in exchange for collateral. Unsecured personal loans are given without collateral. The rise in the number of people opting for personal loans reflects how beneficial they are. This loan can be used for emergencies without restrictions. It takes minimal time to process the loan. It has a low interest rate. EMI repayment options are available. The process of taking instant personal loans and paying them back is easy. Personal Loans and Procedures Online Process The online instant personal loan process is cost-effective. It makes the entire process of getting a loan easier at every stage. The application process is completed online. And the process of approval makes things easier for people. Secure The online process is secure. It is because financiers must follow privacy regulations. They take every step to protect their clients’ information. Easier Banks’ online portals give all the information on personal loans. It makes the process easier. No documentation is involved in the online application process. Only the online documentation procedure is covered. 24*7 Services One of the primary advantages is that one may apply for a personal loan anytime. It is because the lending service is available 24 hours a day, seven days a week. When compared to traditional lending procedures, the entire process is smooth. What are the eligibility criteria for getting a personal loan? For an instant personal loan application, the banks consider the following: your age, monthly salary, credit rating, credit report, and more. A person must be employed to get a personal loan. They should be between the ages of 21 and 65. The borrower must be an Indian citizen to obtain a loan from an Indian bank. The borrower’s income should fall between INR 25,000 and INR 35,000. A person can estimate the amount of EMI. They can use an Equated Monthly Installment (EMI) calculator. A personal loan calculator can be used to calculate the amount that must be repaid. How to calculate Personal Loan EMI? The formula for calculating personal loan EMI is as follows: Personal Loan EMI = [P x R x (1+R)^N]/[(1+R)^N-1] Here, EMI stands for Equated Monthly Instalment. P denotes the principal amount, and R is the monthly interest rate. And the loan repayment period (in months). EMI-calculating tools are available online. They can also be used for the same thing. What are the essential documents to get an instant personal loan? You will need the following documents: A passport-size colour photograph Personal Loan Application Form Photo Identity Proof Residence Address Proof Signature Proof A salary slip and income tax return form if the individual is employed A self-employed individual must submit business proof. They can also give clearance certificates, income tax challans, two-year income tax returns, and balance sheets How to apply for a personal loan? The application process for an instant personal loan is simple: Step 1 The initial step is to determine your eligibility. Step 2 Fill in your personal, financial, and professional information. Step 3 Then you have to select the loan amount and term that you require. This is needed to get an instant approval for the loan. And you can choose the EMIs to select your loan plan. Step 4 Upload the necessary documents, including KYC. Step 5 The funds will be deposited quickly into your account within 24 hours. This will be done once your application is accepted. How can one improve their chances of getting a personal loan? A good credit score helps you get approved for a personal loan. Rebalancing your debt and income is vital. This is because lenders check your debt-to-income ratio when you apply for personal loans. They want verification of your income. An applicant for a personal loan may choose a guarantor with a high credit score. Their primary goal is to ensure that you will pay back the loan. You can improve your chances of getting loans by minimising your borrowing. [B-02] Conclusion Instant personal loans have helped many people. Especially during the hardships of the pandemic. The online procedure has made the process more accessible. And instant personal loans provide financial support within minutes. One of the right steps in taking a personal loan is choosing the right lender. Piramal Finance offers you a chance to get answers to all your questions. You could use their EMI calculator on their website. It will help you calculate your EMI and understand it in detail. Read more about financial products on their website.
08-11-2023
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Electronics

All You Need to Know about Pros and Cons of Buying Laptop on EMI

In the modern world, new laptop prices are everywhere. Everyone looks for laptop EMI, whether in college or retired. Customers who use PCs for daily work are slowly switching to laptop EMI because it is fast and easy to carry around. No matter what a person needs, a laptop is now the best way to get a computer. Most laptop EMI is not inexpensive. Investing money is important, especially if you want the best-brand setup. Only a few people can get that much money for nothing. At this point, a laptop EMI could be helpful. Consumer durables, mostly home appliances like washing machines, air conditioners, laptops, and other tech, are often bought with loans these days. Banks don’t give out traditional loans for these things as they do for car loans, home loans, etc. NBFCs (Non-Banking Financial Companies) are another source of loans for consumers. Most dealers work directly with NBFCs, so customers don’t have to deal with NFBCs directly when they buy. [B-01] Advantages of Buying a Laptop EMI Convenient repayment You can pay the sum in small monthly instalments rather than the whole amount. You can choose the option that best suits your needs from those that range from 8 to 36 months for payback. No need to access your savings You are not required to have the extra cash if you are taking out a laptop EMI loan or purchasing a laptop EMI. You may easily handle the EMIs within your monthly expenses without using your resources. Instant acceptance Numerous loans for consumer goods have rapid approval. You only need your ID and address proof if you purchase it from a dealer. Zero percent interest The interest is added on if you go to a bank or NBFC right away for a durable consumer loan. It can be anywhere from 12% to 15%, depending on the amount, your CIBIL score, and the lender. If your appliance dealer offers an EMI option for your purchase, you may be able to get it for free as part of a promotion. Credit card companies will often split your payment into EMIs as part of a promotion or when the interest rate is low. Get the top deals Most online stores sell items at lower prices and offer more services that add value. Also, many online shops offer payment plans with 0% APR if you use a certain credit card. You can use this service and get something out of it. You can also get free home delivery and other perks when you shop online. If the product has a brand name, there is no risk because all warranties and other guarantees are the same offline. Cons While the no-cost EMI is undoubtedly helpful and enables you to buy things you want but haven’t been able to due to financial limitations, it has several disadvantages. Let’s look at it. EMI payments are more expensive than upfront payments. You may be required to pay a set, non-refundable processing fee for the EMI. GST on the interest that is due must be paid. You will still incur interest costs if you return the item and receive a refund. You can buy expensive services you don’t need but desire. Should You Go for No Cost EMI? Yes, free EMI is a great way to buy something if you’re sure you need it and can pay the EMI each month for the length of the term. You should only pay what you should if you weren’t sure about the purchase and were just thinking about it at the last minute. How Free EMI Operates? E-commerce sites in India, like Flipkart and Amazon India, offer interest-free EMI plans with a typical interest rate of 15%. Most e-commerce businesses now offer a discount equal to the amount of interest. Let’s think about a buyer who wants to spend Rs 30,000 on a laptop and a smartphone. If the customer chooses an EMI plan with no interest for three months and an interest rate of 15%, they will have to pay Rs 4,500 in interest. If the user wants to pay for the phone all at once, the price will now be Rs 25,500. They have to pay the whole amount, which is Rs 30,000, if they choose to pay in instalments. In this case, the interest payment goes to the bank, and the rest of the money goes to the store. The amount of interest is added to the price of things that haven’t been marked down. As we’ve already said, the smartphone you buy for Rs 30,000 with a 3-month interest-free EMI plan will also cost you Rs 34,500 over three months. But since the RBI put out a circular in 2013 about EMIs with no fees, this method is no longer used. The circular says that banks can’t offer free EMIs because “the interest part is often hidden and passed on to the customer as a processing fee.” [B-02] Conclusion You can pay off a loan over time by making equal monthly payments instead of one big payment (EMI). How much you pay back on a loan depends on several factors, such as the principal amount, the length of the loan, and the interest rate. Like any other financial system, buying a laptop in instalments has its pros and cons. You can visit the Piramal Finance website and explore their products and services.
08-11-2023
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Other

Which are the 7 things you should know about business financing?

Finance is an integral part of any business or enterprise, and without it, a business cannot move forward. Financing a business requires not only the money but the right skills and knowledge to execute it. Any business that is set up in the market requires raw materials, goods, organisation, etc., and there is no way to accomplish that without finance. In today’s article, we will discuss 7 things that you should know about business financing. [B-01] What is business financing and what are its types? Business financing, as the name suggests, is the utilisation of funds and credit to leverage assets, raw materials, etc. Without business financing, a business cannot exist for a long time; it requires regular funding to carry out all economic activities. To finance a business, you might not always need to put up your own resources; rather, you can ask investors to invest their money, and in return, they take some equity in your company. There are two main types of business financing options, and they are: EQUITY FINANCING: This is a very popular option that most businesses opt for. Here, you have to pitch investors on investing in your company, and in return, you give them shares in your business. For example, if an investor invests $1 million in your business and asks for 20% of the shares, that is called “equity financing.” DEBT FINANCING: This is also one of the preferable options for business financing to prevent giving shares to anyone. You borrow money from a lender and repay it with interest without giving up your stake in the company. Seven things you should know about business financing: You must have a clear vision: A vision is very necessary for a business to succeed, especially in a market where the competition is tough. You need to have a vision for your business that will help you gain more investors. That is the first key rule of business financing: having a vision. You should ask yourself, “Where do I see myself in the next 5 years?” If you have a promising goal to achieve in your business, you should start by setting tiny milestones and aiming to achieve them. To get more and more investors and compel them to invest with your passion for the business, you need to have a vision. Not only will it help you achieve your goals and fulfil your dreams, but it will also inculcate in you the power of envisioning. Focus on your market size: See how much wider and bigger your market is. See what kind of investors would be interested in your products and market structure. Suppose you have a vertical market. With the correct pitch, you can attract outside investors. Outside investors like to invest in vertical markets more than other forms of markets. Business financing is simply not about investing in raw materials; rather, it is also about choosing the right path at the right time. For angel investors, you might need to improve your market size, market structure, and share. Investing personal funds: Investors love passionate entrepreneurs who invest their resources to make the business successful. This is also a healthy aspect of business financing. You’ve got to make personal sacrifices and add your resources to your venture. This attracts investors to invest in your business because they are assured that you are very serious about your work. Value proposition: Before labelling the value of your product, you must understand one thing for sure. Your product is only designed for your customers, and to know what value your products or services hold, you have to know your customers. This is one of the important steps to financing a business. You should interact with your customers and know how your product is impacting their lives. Looking for alternatives: If you think of bringing in outside capital to broaden the scope of your business, it might help your company thrive. But the problem could be about controlling your business. You might compromise on the controlling aspect, and you might think of hiring outside CEOs and other members. Well, it is welcome to have an outside CEO because it will also bring outside expertise to your business, which is a good thing. Even companies like Google and eBay had outside CEOs, even if they were just startups. Upgrading technology and software: To do the best in your business, you need to upgrade your technological force and your software to beat the competition. In business financing, this investment is always considered wise. You also have to manage your funds effectively, taking care of other requirements like buying assets, raw materials, etc. Financing a business is not only about making choices, it is about making better choices. The art of negotiation: Negotiating is a skill that can turn the tables and bring in a huge amount of profit to your business. You have to put out your offer and ask for a “fair valuation” instead of an “optimum valuation.” Finding the right investors who will understand your motive, give you the correct guidance, and respect your decisions with a “fair evaluation” is the key. It is way better than having an investor who barely understands your requirements and motive with an “optimum evaluation.” [B-02] Summing it up: Apart from investing in your assets and goods, business financing is a very broad concept. It’s about making the right choices and letting investors in who can figure out what a fair price is and what you need. Financing a business is also about adding your interest, passion, and resources to it and making it worth it. Piramal Finance is an establishment that provides a wide range of services on all types of loans, like personal, housing, corporate, etc. It also tells you about financing, investments, SIPs, etc. If you like reading such content, you can go to their website, click on “blogs,” and go through their amazing write-ups.
08-11-2023
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Personal Loan

All the Pros and Cons You Need to Know of Taking Loan Against Stocks

You can always get a loan against stocks, but there are some things you should know before signing up. You can get loans to pay for things you need and things you want. Today, banks and non-bank financial companies (NBFCs) lend money to help people buy almost anything, from electronics to brand-new cars. When you ask for a loan, the lender will check your reputation, but if everything goes well, the money will be in your account soon. Except for loans for big amounts, almost all loans go through the same processes Loans against stocks work similarly as other home loans, but you need collateral to get approved. People who need money right away and people who want to buy can get loans from financial institutions. So, they don’t just give money to people who want to buy something. Banks offer small-dollar loans to customers without asking for collateral. These include credit cards and personal loans, such as small loans for credit counselling. In addition to loans that need a lot of security, banks are more and more willing to take investments in the stock market as collateral. [B-01] For short-term money needs, many financial institutions offer their clients loans against their assets. This group includes loans backed by stocks, government bonds, insurance policies, and other investments. These loans allow people to reach their goals without selling their holdings. A loan against shares is a great way to get money without giving up something of value. If you want to get a loan against stock or shares, here are some tips to help you understand the pros and cons. Pros: – No particular objective: The candidates can use the loans for anything they want. Like personal loans, the lenders do not ask what the loan will be used for before approving it. This means you can use the money to pay an unexpected medical bill, pay off old debt, or buy a house. There are no upfront fees: Lenders will give you a loan against stock for at least one year, which you can extend by making certain payments. Since the loan is short, the lender doesn’t have to punish the client for paying it off early. Reduced interest rates: You may have heard this phrase if you’ve recently been looking for a loan. Interest rates are an important part of any loan. It is a fee that the lender charges you every year for the loan. Unsecured loans have much higher interest rates than secured loans. Because of the promise of security, secured loans often have lower interest rates than other types. Ongoing Dividends and Returns When stocks are used as collateral for loans, you can keep making money from your holdings. The lender has no say over any payments, like dividends from preferred shares or interest income from debt. As long as you keep up with your payments, you can keep getting money back from your assets. With this extra money, you could save some for the future and pay off your EMIs. Cons:- The sale of stocks: Once the loan has been accepted, you have less say over your shares. This means that even if you find a good time to sell the shares, you won’t be able to do so because of the loan. After you have paid back the loan, you will fully control the stocks. Mortgage to value: This might be a huge surprise for people running for the first time. In response to your request for a loan against shares interest rate, the lender looks at the number of shares you have pledged and makes you an offer. Also, since lenders only give between 60% and 80% of the fund’s value, the amount that can be withdrawn from your account could be less than the stock’s value. List of businesses: When evaluating the person’s information, lenders typically pay particular attention to the company name where stocks are now being offered. It would turn down the loan documents if the company weren’t on the list of lenders. So, when applying, you must verify the list. Shares cannot be sold: If equity shares are used as collateral for a loan, shareholders may lose out if they can’t sell their shares at the right time. A sharp drop in the value of your shares could make your portfolio worth a lot less. The lender may then ask you to pay back some of the principal and lower the maximum amount of the loan based on the value of the shares. After you pay back the loan in full, you will have full control over all investments again. Loan Against Stock A loan against stocks is a loan that can be received quickly by using the stocks as collateral. By putting up your stocks as security, you can borrow up to Rs. 10 crores at low-interest rates. You can easily get the money you need by getting a loan against stocks. A stock is a general term for the ownership certificates of any company. Most stocks fall into two categories: common and popular. With common stocks, shareholders can vote on how the company should run. When people own preferred stocks, they have the right to get a certain number of dividends before other stockholders do. Documents and Eligibility Requirements for Loans against Stocks Nationality: Applying for a loan against securities is only open to Indian citizens. Age requirements: To be qualified to apply for a loan against assets, a person must be at least 18 years old. Necessary Documents: Individual consumers are asked to present their most recent passport-size photo, identity evidence, address proof, or document verification of securities. Lowest security value: Customers must have a low-security value of Rs. 4 lakh, be employed or self-employed, and have a steady source of income. You need a steady source of income and a security worth at least Rs. 4 lakh. You can apply for a loan against stocks online by giving the lender the information they need about your finances and yourself. Your interest rate will be based on the value of your security and the length of time you want to pay back the loan. [B-02] Conclusion Loans are a great way to pay for wants and needs. It’s easy to apply for a loan. After the lenders (banks) check your credit, the money will be in your account soon if everything goes well. This service is best for people who need a certain amount for a one-time expense. For more information, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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Banking

All You Need to Know about Bank NOC Letter: Its Sample and Format

Banks face many critical situations as they handle multiple responsibilities. A bank NOC letter is one document used for several purposes, such as obtaining services from another bank, short-term loan, long-term loan, etc. To understand the importance and usage of this document properly, we’ll go through different sections of this blog post and explore what a bank NOC letter entails, who can ask for it, and when to use it. So let’s get started! [B-01] What Is a Bank NOC Letter? When a bank gives a “No Objection Certificate” (or “NOC” for short), it means that they have no problems with the loan closing. Your lender will send you a NOC letter to inform you that you have finished paying back your loan. It removes your debt and any legal problems that come with it. On the other hand, if you wish to end any schemes or want to join other programmes, you will need to write a bank NOC letter to the bank’s officials. Importance of Bank NOC Letter NOC is mostly used to show a ‘no issues’ sign. It can be used as legal evidence. For example, once the housing loans are repaid, a NOC from any lending firm is the proof of payment. It will allow you to collect all the property’s legal documents. A bank NOC letter will also help eliminate a property’s lien. A lien on the property means banks or private lenders might sell your property until obligations are paid. Why Do Banks Ask for NOC? The most common reason banks ask their customers for a NOC letter is when they want to open a new account in another bank. When a customer wants to open a new account in another bank, the issuing bank will seek a NOC from the customer’s present bank. This is done as a precautionary measure to avoid any future dispute. When You Use a Bank NOC Letter? If you have an account in one bank and want to open another account in another bank with a new employer, then you may require a Bank NOC to avoid any issues. For example, if you have an account in XYZ bank and want to open an account in ABC bank, you might require a NOC from XYZ bank because it is highly unlikely that ABC bank will open an account if you have an active account at another bank. Apart from these, there are many other instances where you may require a NOC. Here is a list of a few instances: • You want to apply for a credit card or take a bank loan. • You want to open a joint account with a new partner. • You want to open a new account after your existing account gets closed. Format of Bank NOC Letter When applying for a NOC from a financial institution, you must use a formal letter format. Since this is an official letter, you must follow a few protocols. To better grasp the concept, please refer to the following format. 1. Address The address information comes first in your bank’s Notification of Change format. The format for a bank NOC letter requires always providing the receiver’s address, in this case, the Branch Manager. 2. Date In the Bank NOC format, the date will appear after your address. As this is an official letter, you must always provide the date. 3. Topic The topic will be a single sentence that explains why you’re writing the bank NOC letter. Do your best to hone in on the core of the matter, so the reader needs a quick scan to get the gist. 4. Salutation In a Bank NOC letter, greetings will be more formal. In the greeting section of your letter, you should begin with “Hello, sir” or “Respected sir.” 5. The Body The body of your Bank NOC letter is where you’ll explain the letter’s primary objective. Ensure the receiver gets all the relevant information by including your account number, contact number, complete name, and loan specifics. 6. Sign Off In a Bank NOC, your signature will begin with a statement like “Yours truly” or “faithfully,” and your complete name will follow. Sample of Bank NOC Letter Sample 1 To, The Branch Manager, XYZ Bank Rajib Pur Branch, Gangarampur Dakshin Dinaj Pur-733124 16 November 2022 Subject – Request letter for NOC Respected Madam/Sir, I’m Rana Roy, and I have an account at the Rajib Pur branch of XYZ bank. I’m writing to ask you for a NOC to approve my loan request. I have asked this bank for a loan of Rs. 1,000,000 to buy property. I’ve been your customer for the past 5 years, and I’d like you to give me a NOC so my loan can go through. Here are my contact details. Name – Rana Roy Account no. – 56XXXXXXXXX76 Address – Nayabaazar, Gangarampur, Dakshin Dinaj Pur, Pin: 733215 Contact no. – 982464225 I have provided all the required documents with this letter. Please consider my request. Sincerely, Rana Roy Sample 2 To, The Bank Manager ABC Bank Market Building branch Mahiboni Nagar, Kolkata-700312 Sub: Application for the closure of my loan Respected Sir, I have been continuing a savings account in your bank for 15 years. My account number is (mention your account number). I borrowed Rs. 10 lakhs from your bank to start my business. I was given an 8-year term and accepted all of the bank’s terms and conditions. Three years have passed, and I’ve paid Rs. 6 lakhs back, but I don’t want to continue the tenure. Now that my business is doing well, I’d like to shut it down by paying the remaining balance. I put down the money on January 31. Please give me a NOC certificate with all my information. Also, please send me a letter saying I permit my loan to be paid off. I will need this for future reference. Given my situation, I hope you’ll send me the NOC certificate as soon as possible. Thank you Yours faithfully, Raja Dey Contact: 756456414 Tips for Writing a Better NOC Letter Even if you know the important parts of a NOC, you still need to know how to write it well. Here are a few things to consider when writing a “No Objection Certificate”: • Keep the letter short and to the point. • Instead of using hard words, use simple language. • Ensure you write down all the important parts of a NOC format. • The tone of the bank NOC letter needs to be clear. • It should be written on a letterhead every time. [B-02] Conclusion A bank NOC letter is an important document that is required in several situations. Apart from these, a NOC can also provide information about the company’s or individual’s activities. A person or an entity issues a NOC letter to inform other parties that they do not have any objection to something.
08-11-2023
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Home Loan

Top 10 Benefits of a Property Loan in India You Need to Know

When you need instant money, loans are often one of the first things that come to mind. There are so many kinds of loans, like credit cards, mortgages, and lines of credit, that it may seem impossible to choose just one. However, due to rising demand for real estate, the property loan market is expected to grow to more than $850 billion by FY2026. A property loan is one of the best ways to get a secured loan if you are sure you can make your monthly payments on time and have a good credit history. The article highlights the top 10 benefits of property loans. [B-01] What is a property-against loan? A property-against loan is a type of secured loan you can apply for. When you use your property as collateral for the loan, the loan may be instantly approved. The credit amount can be the same as the property’s current value. So, the bank approves the loan. You can get a mortgage loan on your primary home or any other property. However, you must ensure the property’s title is in your name. Top 10 benefits of a property loan Easy and quick approval One of the best things about a property-against loan is the quick approval process. Getting a property loan is much easier than getting an unsecured personal loan. You should ensure there are no mortgages against the property before applying. You can use this property loan for anything, including medical bills, education, etc. Pocket-friendly A property-against loan or loan against property is a cheaper way to get the money you need. Many times, the interest rates on these loans are lower than those for others. Personal loans have interest rates between 12% and 25%, while property loans have interest rates between 12% and 15%. You can use the property as collateral to get a property-against loan. Mortgages can be taken out on primary homes, investment properties, rental properties, and undeveloped land. Loan repayment time A loan against property has a longer repayment time. These can be paid back over 15 years, while unsecured loans need to be paid back within five years. In this way, you have less financial stress. Pre-closure option Usually, there are no fees or penalties for pre-closing a property loan. Accounts for property loans can be closed if the full balance is paid off before the agreed-upon deadline. However, if the interest rate on your loan is fixed, you may have to pay a small fee to pay it off early. Top-up facilities When you get a property loan, you can request a top-up. You may get a second loan on an existing property-against loan. However, this depends on the property value and your repayment history. Minimal debt burden The monthly payments on a property loan are much lower than on a personal loan. These loans are less of a burden because the interest rate is lower, and you have more time to pay it back. When getting a property-against loan, a good credit score may lower the monthly payment. Flexible loan amount The amount you can borrow with a property-against loan is based on the market value of your property. Loans against property are approved for up to 70% of the property’s value. Tax benefits You also get tax benefits on the principal and the interest paid on property loans. Under Section 80C of the Income Tax of India 1971 Act, you can get a tax break of up to Rs 1.5 lakh per financial year. Under Section 24B of the Income Tax of India Act, you can deduct up to Rs. 2 lakh from the interest. Minimal documentation One of the other benefits of a loan against property is that you don’t need much paperwork to get the loan. Unlike other types of loans, a property-against loan only needs basic paperwork such as identity proof, proof of ownership, etc. Optimum use of the property You can get the most out of your property by getting a loan against a commercial shop. You can borrow money at a lower interest rate if you use a property. For a secured loan, a property’s market value is one of its most important things. The borrower can keep the property and still use it as collateral for a loan. Eligibility criteria for a property loan The requirements to get a property-against loan are not as strict. You have to be an Indian citizen. The minimum age is 21, and the maximum is 25 years old. You must be self-employed or salaried. Companies can also apply for a loan against property. You must have a certain net monthly/annual income (The income limit differs for salaried people, self-employed people, and firms or companies.) You must have worked for an employer, their practice, or their own business for at least a year. How do you apply for a property-against loan? The process to apply for property loans is easy and clear. Follow the steps below to finish your application successfully: Go to the official website of your lender to fill out the application form Choose your “Type of Job” and “Type of Loan” from the options given Fill out the basic details and complete property information. Upload the required documents and submit the form. [B-02] Conclusion Getting a property loan is easier than many people believe. If you plan to get a loan against a property, choose your lender and provide all the necessary documents with your application. Lenders make property loans available for both commercial and residential properties. However, you have to meet different conditions. If you are ready to take a property loan, consult an expert. You can visit the Piramal Finance website and explore personal loans and services.
08-11-2023
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Personal Loan

Go Paperless Personal Loan Without Documents

A personal loan is probably one of the best ways to borrow money to fulfil your dreams and aspirations without facing any financial distress. It can help you buy a house, finance the higher education of your children, or even cover your medical bills. The best thing is that you are not accountable to the lender regarding the reason for which you are applying for the loan. In today’s time, a personal loan can give you the financial leverage that you have always wanted. However, during a crisis, you might want the loan amount to be disbursed as soon as possible. And in that case, you might think of eliminating unnecessary paperwork, delays, formalities, and document submissions. But is it possible to get a personal loan paperless, without the documents? Read this article to find out. We will talk about personal loans, their features and eligibility, and the paperless process to apply for them. [B-01] Personal Loans: Meaning and Significance Personal loans are financial instruments that you borrow from lenders without putting up collateral. These loans are applied to meet various personal needs like financing a wedding, covering medical bills, making a trip to a destination, or even clearing a down payment. These loans are quite popular in India as they are highly flexible and have comparatively low rates of interest. In addition, you can get approved for a personal loan within a very short period of time. Because these loans do not require collateral, you do not have to pledge any of your assets, such as real estate, to obtain the loan amount. As a result, these loans are unsecured and easier to obtain as compared to other types of loans. The terms and conditions of the loan vary from bank to bank and depend on the individual’s credentials. What are the features and benefits of a personal loan? There are many features and benefits of a personal loan, and they are: Higher loan amount: The loan amount for a personal loan can go as high as 40 lakhs and in some cases even more than that depending on your credentials. Low rate of interest: Despite being an unsecured loan, the interest rate on a personal loan ranges from 10.5% to 24% per year. These numbers are highly variable and depend on the borrower’s credentials and the bank. Free from collateral: Personal loans do not require collateral to get approved; you can easily apply for them even if you don’t have a property or security deposit to use as a guarantee. Flexible tenure: The tenure of repayment of a personal loan is highly flexible, which gives you the advantage of having enough time to plan your finances. The period of repayment of a personal loan varies from 12 months to 84 months. Flexible terms and conditions: In addition to a flexible tenure, a personal loan has flexible terms and conditions as well. You have the freedom to choose the type of interest rate, the type of loan, the loan amount, etc. How to get a personal loan without any documents? To get a personal loan without any documents, you have to focus on the following things: Focusing on your loan history: Creditworthiness is a very important thing that the lender looks for in borrowers. You must make sure that you pay all your existing dues to make your loan history flawless. So, you have to pay your credit card bills and loan EMIs on time to ensure that you are loanworthy. You should also avoid defaulting on loans and delaying payments. Levelling up your credit score: Your credit score should be at least 750 to get a personal loan without documents. Your CIBIL score plays an important role in enhancing your eligibility for a personal loan. Any type of dues might affect your credit score, and the more it’s negatively affected, the chances of getting a loan without documents get lesser as well. Maintain a standard debt-to-income ratio: You should also focus on your debt-to-income ratio before applying for a paperless personal loan. Your debt-to-income ratio must be less than 50%. The lower your debt-to-income ratio, the better your ability to repay. Relationship with your lender: This is another important thing that you must consider while going for a personal loan without any documents. If your relationship with your lender is decent and you are a regular customer of the bank, your chances of getting the loan sanctioned within a short span without any documents will be easy. Approach for online mode: If you want your loan to be processed within a short period, you should opt for the online mode when applying for a personal loan rather than focusing on the offline mode. After COVID, many banks and NBFCs chose the online mode to give loans to people to decrease delays and help people during emergencies. So, you can prefer an online mode to fill out your application instead of choosing an offline mode. [B-02] Summing it up: Getting a personal loan without any documents is easy, but you need to make sure that you have enough eligibility to cover that. You should make sure to show the lender that you have the financial muscle to tackle the stress of repayment. In case of emergencies, banks and NBFCs disburse the loan amount to the borrowers immediately if they find them creditworthy.
08-11-2023
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Guide

Working Capital Turnover Ratio – Meaning & Definition

When you run a business, you need money for daily expenses. This is your working capital, i.e., the money you need to run the day-to-day functions. Without working capital, you cannot run your business smoothly. Obviously, you cannot wait for money from creditors to meet your working capital needs. Therefore, to tide over the shortage of money, many owners opt for a working capital loan from banks or NBFCs. This loan can help you pay for crucial expenses required to keep your venture going. You may or may not need to offer security to get a working capital loan, based on your profile and the amount needed. But how can you decide the amount of money you need as a working capital loan? The best way is to know your working capital turnover ratio (WCTR). Read on to learn more about WCTR and how it can be a basis for deciding whether to get a working capital loan. [B-01] Working Capital Turnover Ratio Definition WCTR is a vital ratio for every company. This ratio will help you know how well your business uses its working capital to drive growth and boost sales. This ratio will also help you learn about the relationship between the funds you use to pay for your company’s operations and the money your company earns to make a profit and keep the venture running. The key aspects of WCTR are: You can measure how well your enterprise can create sales for every rupee of working capital you invest. If your WCTR is high, then it means that your business has made huge sales. If your WCTR is too high, it can mean that you need to raise more capital to drive future growth. How to calculate the working capital turnover ratio You can use a very simple formula to know what your WCTR is. But first, you must understand two inputs: Average Working Capital: Average working capital is your current assets minus your current liabilities. Net annual sales: Net annual sales are the gross sales of your company minus allowances, discounts, and returns. Now, to find out your WCTR, you need to divide your net annual sales by your average working capital. Working Capital Turnover Ratio= Net Sales / (Total Assets – Total Liabilities) Definition of working capital turnover ratio Once you know your WCTR, it can help you learn many aspects of your venture. Some of the main things you must know are: If your WCTR is high, you are a good manager. You can use your assets and liabilities to grow sales. This means every rupee of working capital is helping you get a higher sales value. If your WCTR is low, you are selling many goods on credit. It also means that you are buying too much raw material with cash. This can lead to a lot of bad debt or too much inventory. To know the ideal ratio for your sector, comparing WCTR from many entities in the same line of work is better. You can also track how their WCTR is changing over time. But if your working capital is negative, your WCTR will also be in the red zone. Need for a Working Capital Loan A working capital loan is a business loan that banks and NBFCs offer to business owners. The main reason to opt for this loan is when your cash flow and reserves cannot take care of the daily needs of your venture. If you can create enough sales and cash flow to support the growth of your venture, then you may not need a working capital loan. However, if the current liabilities of your business are greater than your existing assets, you will need a working capital loan. Here are some key aspects of this loan: This loan can help you take care of your pressing needs and ensure that there is enough money to keep it running. This business loan is meant for the short-term financial needs of your venture and is not ideal for long-term planning. You can better focus on your long-term goals and pursue them when your short-term needs are taken care of. If you have a seasonal business, this loan can keep the work going during lean times. Features of a Working Capital Loan Here are some of the key features of a working capital loan that you must know before taking a decision: Nature: Based on the lender’s rules, you may or may not need to offer security to get this loan. Most lenders need security if the loan amount is above a given limit. Amount: If you do not want to give security, the maximum loan you can take will be around Rs. 10 lakhs. There is usually no upper limit if you are giving security, as the loan amount will depend on the value of the security. Tenure: The loan tenure can range from 12 months to 60 months. This period can change as per the rules of the lenders. Credit Score: Your CIBIL must be at least 680 to get a working capital loan. To get the best deals, your CIBIL should be 700+. Process: Most lenders offer online or doorstep services for this loan. Hence, it is very easy for you to finish the process. [B-02] If you want to grow your business but are short on cash to take care of daily needs, then you can opt for a working capital loan. It is a great option to meet your short-term needs. If you want the best deal on a working capital loan, then Piramal Finance can be the option you have been waiting for. They offer great deals on all business loans and are always there to support you. You can also contact their experts for guidance.
08-11-2023
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Banking

ATM Fraud: What It Is and the Different Types of ATM Fraud in India

As time has progressed, so has technology at an exceptional rate. It is no surprise that ATMs (Automated Teller Machines) are now mainstream in nearly every city/town. Whether it is on banking premises, in marketplaces, on regular streets, etc., you can often spot an ATM. With the advancement of automation, ATMs have undergone numerous changes. However, it is also a fact that ATM fraud and scams have become rather common as well. [B-01] What is ATM Fraud? Simply put, ATM fraud is a crime done through ATM machines. ATMs inevitably possess some or other vulnerability that scammers can exploit for themselves. Why do such people find ATM fraud an excellent means of unfair income? To understand the reason, we first need to analyze the components of an ATM very briefly. The computer analog system and a secure vault are the two primary components of an ATM machine. Thieves can get past the fringes of the safe with different kinds of lockpicks. As for operating system vulnerabilities, malicious software usually finds its way into the system through portable devices or when it is hacked during software updates. Access to the ATM’s operation system makes it simple for criminals to illegally draw out the user’s cash. More than a dozen types of malware exist today for ATM scams. Besides, the firewall protection for many ATMs is not up to scratch, increasing the possibility of cybercrimes. We shall now delve into the most common forms of ATM fraud. Types of ATM Fraud With immense progress in cyber networks and technical fields, digital crimes have also gained a great deal of momentum. ATM frauds, likewise, have also increased manifold. Criminals use various strategies to get access to ATMs and withdraw cash illegally from others’ accounts, be it physically or via technology. The most prominent types have been mentioned below. Card Shimming: This is the most common card swindle method used by con artists. It is a thin board that slips discreetly into a card reader. When you insert a card, it reads and stores data from the magnetic stripe without interfering with the usual card services of the bank. This way, the crooks acquire all the crucial data and create a version of your card that can be used in stores. Card Trapping: Fraudsters frequently find a way to install a device in the ATM Card Reader that prevents the card’s owner from withdrawing the card after the transaction has occurred. Scammers typically use hidden video cameras built into ATM faceplates to obtain PINs. They can then use the card left behind to withdraw the money from the ATM. Card Skimming: Skimming is an illegal practice in which a hidden device is inserted in the ATM and provides the ability to read details of the user’s card while the transaction is being made through the ATM. As a result, the criminal creates a duplicate card with his/her PIN code written on the magnetic strip. These cloned cards are used by criminals to withdraw cash whenever they wish. This is one of the most undetectable forms of ATM Fraud. Keyboard Jamming: Through certain means, fraudsters render particular keys on the ATM’s keyboard jammed to prevent the individual from withdrawing cash from the machine. As soon as the confused person leaves to fetch help, the person committing fraud enters the booth and withdraws the money since the user has already entered the necessary details. Phishing: This particular form of ATM fraud is committed when scammers craftily steal passwords, card numbers, and CVVs from cardholders. Elderly individuals and amateurs are their usual targets. The criminals make use of personal data to obtain access to accounts to which bank cards are linked, allowing them to withdraw the money at their will. SMS Fraud: In this type of ATM fraud, the fraudsters will send you an SMS saying your ATM card is blocked or has been used for suspicious activity, like an unauthorized withdrawal. To prevent it, they will ask you to enter your card details, like the card number, CVV, PIN, expiration dates, etc. Once you enter the details, those participating in this fraud will receive the details and use them online. This is one of the most common types of debut card frauds. Ways to Prevent ATM Frauds/Scams: Now that you are well acquainted with ATM fraud and its variants, it’s only understandable that you would also want to know just how to avoid such crimes. The following measures will be of great aid to you in preventing ATM scams from happening to you or your acquaintances. Do not use ATMs installed in lonely or sparsely populated regions. Before you put your card in the card reader, you should always look for any kind of suspicious device. The authorities should regularly have the ATM hardware and software monitored and updated. Do not reply to suspicious messages sent via SMS or email. A scammer is likely trying to gain access to your bank details. Be careful of any hidden cameras installed in the booth. Never disclose your card details, like the CVV, export dates, etc., to anyone, be it your closest colleague or relative. Avoid removing someone else’s card that has been inserted into the machine. The actual offender might frame you for the crime. If you sense people hanging around an ATM booth, it’s wise to avoid drawing cash from there. [B-02] Final Thoughts: It is common for people to use ATMs without being cautious enough, and they often become victims of ATM fraud. There is a necessity to spread awareness about this particular monetary crime among the public. Besides the general public, banks themselves should use the proper software to prevent these crimes from taking place. For more details on various types of debut card fauds and tips for avoiding them, consult the Piramal Finance website.
08-11-2023
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