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Personal Loan

Lending to People with Salaries Under 15,000: Low Salary Personal Loans

Money lending has always been a risky practice. Formal and informal money lenders look at a person’s ability to pay back the loan. This is why people with higher salaries receive loans more easily. The lenders believe in their ability to pay back the borrowed amount. But what if someone’s income is not very high? Does this mean they would never be eligible for loans? Contrary to popular belief, people with low salaries can secure personal loans. The loans are known as Low Salary Personal Loans. Let’s find out more about them. [B-01] What is a Low Salary Personal Loan? Personal loans are unsecured loans. You can get a loan without keeping collateral. They are easy to apply for and readily available. However, one needs to show a stable source of income as proof. Proof of income and the salary amount must meet the eligibility criteria set by the lender. However, if your income is quite low, you can still receive a personal loan. In such cases, lenders give low-salary personal loans. These are given to individuals whose monthly income is quite low or is less than INR 10,000. If an individual’s salary is less than the limit prescribed by the lender, then they can apply for low-income personal loans. Is there a minimum eligibility criteria for a personal loan? Yes. The criteria may be different for each lender. Those who wish to apply for a personal loan must read the eligibility criteria carefully. What is the basis for the minimum eligibility criteria? When applying for a personal loan, the minimum eligibility criteria include age (21–60 years), work experience of at least one to two years, and having worked at your current company for at least 6 months. In addition, your credit score and monthly salary slips must be shown. For people living in Mumbai and Delhi, the minimum salary must be INR 25,000 per month. For those living in other cities in India, a salary of INR 20,000 per month is good enough to get a personal loan. Those who are self-employed or freelancers are also required to submit an annual profit statement after tax. This varied across industries and professions. What are the eligibility criteria to get a low-salary personal loan? The eligibility criteria are not very demanding. The applicant must be at least 18 years old. There must be proof of a stable source of income. It doesn’t matter if your salary is less. You must be an Indian citizen. You must not be older than 58 years at the time of application. What are the documents required for a low-salary personal loan? Like all personal loan applications, low-salary personal loans also require document verification. To apply for a low-salary personal loan, you’ll need to present the listed documents. Proof of address Proof of identity Proof of income You may show your Aadhar card, voter ID card, PAN card, passport, utility bills, driver’s license, and last three months’ salary slips to the lender while applying for the loan. What can you do if you don’t have a salary slip? In such a situation, the applicant can produce bank account statements, Form 16, etc. It is also advised to apply for a personal loan with another individual who has a higher income. Some banks or lenders may also give you the option of an asset-backed loan where you pledge collateral. In case you fail to repay the loan amount, the asset, or collateral, can be used to recover the money. But keep in mind, the instances of loaning money to people without salary slips is low. If the lender decides to give you a loan based on other criteria, the interest rate will be quite high. How are interest rates applied to low-salary personal loans? An important thing to research is the interest charged by a lender. Many lenders have different interest rates. These are also determined by the person’s credit score and income. Other factors that determine the interest rate include the educational qualifications of the applicant, the personal loan amount, the nature of employment, and a list of fixed monthly obligations that would also include the loan amount. There is a thumb rule that states that if the risk is low, the interest rate will also be low. Therefore, when applying for a low-salary personal loan, ensure that your credit score is good or at least above 600. The ideal credit score is 750–900. You must also ensure that your income is enough to cover all of your fixed monthly obligations. Is it possible to apply for low-income personal loans online? Yes. Many lenders and banks disburse low-salary personal loans if the applicant meets the eligibility criteria. But before applying to any of them, study their requirements and terms and conditions carefully. [B-02] Conclusion Giving personal loans to people whose salary is less than the required monthly income amount can seem like a risk. However, if the applicant has a good credit score, a stable source of income, and proof that they won’t default on repayments, the chances of securing low-salary personal loans are high. Interest rates can vary from lender to lender. Finally, fill out the application forms carefully. If the application is rejected, the chances of your credit score being negatively impacted are high. It may seem daunting, but with the right guidance, securing a low-income personal loan is easy. To learn more about personal loans, visit the Piramal Finance website.

08-11-2023

Personal Loan

Debt Consolidation Loan – Consolidate the Debt with Personal Loan

High-rate debt may be pretty distressing. It may hurt the money and even the immediate and long-term financial goals. If one has a lot of high-cost debt, rising EMIs and rates may force one to dive into savings and drain them. However, other options might help. Obtaining a low-cost personal loan as a debt consolidation loan can be a good choice. There are many reasons why a personal loan may be a good option for debt consolidation. But before that, let’s discuss debt consolidation loans. [B-01] What is a debt consolidation loan? The debt consolidation loan combines many smaller loans into a single loan. After consolidating debt, the person must make one monthly payment instead of many. It may help to manage the finances and get better loan conditions, such as a cheaper rate or EMI sum. Why take out a personal loan to consolidate debt? Debt has a nasty way of compounding itself. Personal loans for debt consolidation combine many balances or debts into a single monthly payment. Here are a few points why one might think of taking out a personal loan to consolidate debts: Get a hefty sanction without putting up any asset A personal loan allows one to combine the debt without worrying about finding an asset and its status. One may be sure of receiving the cash one wants without worrying about pawning anything of value since lenders provide larger ticket amounts. Some give consolidation loans up to Rs. 25 lakhs. Pay off the new loan at a low rate Unpaid debt often results in increased fees and rates. Combined, this drives up the year-on-year cost of the loans as one persists in paying interest. If paying off the present debt is complex, the added fees would worsen that case. Using a personal loan to consolidate the debt may reduce late fees and high debt rates. One only has to make one more affordable loan payback. Put all of the money on a single EMI each month One can combine the many debt payments into a single EMI when one consolidates debt with a personal loan. They may manage their money with ease. They can also set up budgets so that the income is directed toward paying off one EMI once a month since there are fewer payment dates and EMIs for one to remember. Helps with a lengthy tenure to lower EMIs One saves money by paying only EMIs and may also ease the monthly money stress by selecting a lengthy tenure. With tenures varying from 12 to 60 months, lenders can be aggressive with payback or ease the urgent burden on the budget. The shortest tenure one can afford is often the best choice since it reduces interest payments. Pay in parts with a little more cost Make paybacks to lower the total cost of the loan when the financial situation improves and one has more money available. When one prepays, they reduce a part of the principal ahead of the scheduled due date. Factors to keep in mind when getting a debt consolidation loan Taking out a personal loan as a debt consolidation loan is a great option. This is especially true if many paybacks are becoming a problem. Here are a few things to keep in mind before taking out a personal loan for consolidation of loan: Current Debt Term Check the time of the existing debts before taking out a personal loan to combine them. Suppose one can return all the bills within a few weeks to a year. In that case, one should avoid taking out a personal loan for express debt consolidation. Credit Score One key part affecting the rate a lender charges is the credit score. A person will be charged a low rate if they have a decent credit score. One might incur a high rate if they have a poor credit score. Getting a personal loan for loan consolidation is a smart choice if the rate is low. Given this, before applying for a personal loan, be sure to check your credit score. Go ahead with the form only if one is sure they have a strong credit score. Lender Eligibility Criterion One must fulfil the lender’s criteria to get a loan. As a result, checking the lender terms is best when applying for a loan. Lenders might have needs regarding monthly income, working experience, age, etc. Before applying for the loan, be sure to fulfil these needs. Check Rates & Other Fees Personal loan rates may be as low as 10.99% per year to as high as 24% per annum, if not higher. As a result, it is strongly advised to check the rates many lenders offer before picking which bank or financial firm to apply to. Pay Back Time People may choose a loan payback time from one to five years. One will be merging the debts and repaying the loan amount throughout this time. They should check the repayment ability and choose an appropriate loan payback tenure. Will the consolidation of loans with a personal loan impact the CIBIL score? Checking the EMI payments might be complex if one has many obligations. One may be penalised if one fails to pay even one of the EMIs by the due date given by the lender. Furthermore, skipping the EMI payment may impact the CIBIL score, making it harder to get finances in the future. To prevent such problems, try taking out a personal loan and combining the obligations with the loan amount. This will ease the paybacks since one will only need to pay one EMI constantly. It will lower the likelihood of skipping EMI payments. Paying the monthly EMI on time, as required by the lender, can assist one in maintaining a decent CIBIL score. [B-02] Conclusion Loans are no longer limited to big expenses such as property purchases or supporting children’s education. Many clients take out loans to cover their living costs and pay for small-ticket items such as consumer durables. Increased credit availability also attracts individuals, particularly those with low credit, to take out many loans at higher rates. Due to the increased EMI load, they have little left for emergency money or other financial goals. In such a scenario, the easiest way out is to combine the many debts by taking out a personal loan with a lower rate and, ideally, a long term. Furthermore, the consolidation of loans into a single loan would save the burden of keeping track of many EMIs, due dates, etc. Check out Piramal Finance for more related blogs on debt consolidation loans and explore their products and services.

08-11-2023

Personal Loan

Personal Loan For Doctors In India – Loan Up to Rs. 50 Lakh

Is one thinking of expanding the clinic for some time? Then the wait is over! They may turn the clinic into a “big name” with all patient services. Fulfill all of their dreams without the block known as a “money crisis” holding them back! Many lenders have noticed this urgent need for health doctors and have developed personal loans for doctors. Because of these loans, doctors may not have to worry about money and may be able to freely move up in their careers. This article will explain what a personal loan for a doctor entails. This piece will also educate folks on how to get an instant loan for doctors geared toward aspiring health doctors. [B-01] What Exactly is a Personal Loan for Doctors? Instant loans for doctors, or “doctor loans,” as they are more generally known, are loans made available to health students. A loan of this kind is intended to assist doctors in realizing their aspirations, such as building clinics. Get an instant loan for doctors if they need to build up a new X-ray lab, buy costly tools, or start a repair to the current clinic. Features of Personal Loans for Doctors Competitive rates No security is needed Paperwork is limited Loans of up to Rs. 50 lakh are available, based on repayment capabilities Loan terms range from one to eight years It can be used for any reason, including meeting emergency money needs Many lenders provide rapid approvals Perks of Personal Loans for Doctors A doctor’s loan provides a lot of perks. A few of the notable ones are listed below: Specialised offer Doctor loans differ from other loans because they are tailored to health aspirants’ needs and wants. Low rates of interest Doctor loans typically have low rates ranging from 14 to 16% annually. By using this option, doctors may increase the scope of their firm and upgrade the facilities system. Increased loan amounts A doctor’s loan considers the fact that practicing medicine is a costly endeavor in any country. The study background is one of the first items lenders consider when they ask for a doctor’s loan. If they complete the MBBS, a standard sum is granted. Yet, if they possess specialized expertise and have years of experience in the sector, a larger loan sum will be accepted for them. Less Paper needed Medicine is a complex field to work in. Doctors have very little to no free time for other jobs. To process and approve a doctor’s loan, they simply need to provide the minimum amount of paperwork. So, they could quickly ask for the loan and get it approved as soon as possible. No use limits An instant loan for doctors enables people to achieve all these goals, whether they wish to buy a house, buy some land, remodel a house or premises, or lease a retail property. As the money isn’t used for unlawful acts, there are no terms on how it may be spent. Eligibility is also not determined by the loan’s purpose. Lender-approval is not based on the loan’s intended use. It is up to them whether they want to use some money for home repairs and save the balance for a sudden expense or trip. No collateral is needed The house or other asset they buy is pledged as security when they take out a mortgage loan. Personal loans for doctors do not need this. One of the loan’s huge perks is that it is unsecured. Why is that relevant? The loan cannot be obtained without providing any security. As a result, they may get a loan without taking on debt from the house or other capital tools, such as savings bonds, stocks, or other deposits. Since a banking firm will look at the CIBIL score while checking the form, it is the only data they need. So, before applying, check the credit score. Rapid approvals Time management is crucial when they want to grow their practice as doctors. That is why doctors’ loans have among the industry’s shortest turnaround times. The loan request will often be granted in five days or fewer. The money will be sent directly into the account after all the paperwork is completed. Eligibility of a Personal Loan for Doctors Applicant Profile Indian identity Job Working at a public or private clinic or hospital as advisors, doctors, or other experts Age People must be between the ages of 21 and 70. Credit score needs Doctors with credit ratings of 750 or higher have more chances of being approved for a personal loan for doctors. Income The required minimum net annual salary is Rs. 5 lakh. Exercise Vintage Minimum two years of work after gaining skills. The candidate must live at their current address for at least two years without moving. Papers Needed for a Personal Loan for Professionals Properly completed form and two passport-size photos Identity paperwork includes a passport, voter ID, PAN card, etc. (Ration card, utility bills, rental agreement, passport, bank statement, or passbook) as proof of residence. Age Verification (PAN Card, Passport, or other proof from an authority). Evidence of income. Form 26 AS, ITR, or Form 16 for self-employed experts In the case of a salaried doctor, pay stubs Bank passbook and proof. Evidence of employment Proof of most recent degree and proof of health registration. Evidence of signature. How to Get a Personal Loan for a Doctor? To register for a personal loan for doctors, go to the bank’s branch or its official website. Offline Loan Form for Doctor Loan Request a loan form from the local bank office. Fill out the form with your personal and professional data. Submit the form with all required paperwork and passport-size pictures. Doctor Loan Online Application Process Log in to the account on the official bank website. Choose “Doctor Loan” from the loan type and press the “Apply” button. Fill out the online form and submit the needed paperwork. After that, click “submit.” [B-02] Conclusion When people see a doctor, they receive the finest care possible. The best tools, gear, support staff, etc., would be needed for the doctor to do the same, and all of these things need vital funding. He might get a personal or business loan to pay for new tools or systems, but doctors can use an ideal money tool. This is the doctor’s loan. Health doctors may get this customized, no-asset loan from banks at a competitive rate. The loan may be used for firm and personal reasons since its final purpose is not specified. Personal loans for professionals have become a vital resource for health experts with firm aspirations. When compared to health coverage plans, they are far better choices. Several rules are involved when processing health insurance claims, vitally slowing the money’s release. Yet, as doctor loans are just personal loans, money may be acquired quickly and without fuss. Piramal Finance has many blogs for folks to help them get the best loan. Give the blogs a read and check out the other services they offer.

08-11-2023

Education

10 Rules of Thumb for Financial Planning and Well-being

Regarding financial planning and investment, various areas require attention and financial allocation. It could be having enough money to retire comfortably, owning the home of your dreams, or touring the country on a luxury motorcycle. Wouldn’t it be beneficial if someone provided you with the best financial planning advice? Or can someone help you make the best financial choices at the right time? Here are the small steps you would need to take to lead a life of economic prosperity. [B-01] 10 rules to follow for financial planning and well-being At each stage of the financial and investment planning process, take care to lay out the goals, expenses, and income based on risk tolerance. Here is a list of ten general financial rules of thumb to help you make the best financial decisions at the appropriate time: Ensure that your EMIs don’t exceed 40% of your take-home pay. Ensure that the total amount of EMI you pay monthly is at most 40% of your net earnings. They are commonly referred to as “debt-to-income ratios.” Once you request a loan, lenders will ask you about your current debts. It will determine whether approving a new loan fulfils the debt-to-income ratio. It would ensure that only 40% of your income is used to pay off debt. And you will be able to retain enough money to cover your expenses. Limit your education loan debt to no more than your anticipated first-year salary. It may seem out of the ordinary for many of us to pursue our preferred course at a reputable institution. However, they might be worthwhile because they provide a wealth of information and exposure. Given the numerous education loan programmes that banks offer, it is not uncommon to see a student take out a loan for their education. To keep things simple, only borrow money that won’t be more than your anticipated salary in the first year of employment. If you already work and want to take a break to go to college, keep your loan amount at the same level as your annual salary. Ensure your desired home price falls within 1-2 times your annual income. Many of us share the common dream of owning a home, and eventually, that dream will come true. However, when the time comes, be careful not to take on more debt than you can manage. A smart investment is the one you need. Make sure the value of the home you purchase with a mortgage is at least two to three times your family’s annual income. While at it, consider the different real estate prices and home loan regulations. It might be possible to request a much higher loan amount. Before you proceed with the loan request, consider any unfavourable events that could burden your family severely. Keep your retirement savings at least 20 times your annual gross income. Planning for retirement and accumulating funds for your post-retirement lifestyle must be among your financial objectives. Even though retirement may seem far off, it is advisable to start planning early. It is so that the corpus has sufficient time to develop. A great investment strategy is needed for this. Additionally, to account for inflation, build a corpus that is at least 20 times your gross annual income when you plan to retire. Learn how to use the “Rule of 72.” The “Rule of 72” states how to calculate the number of years an investment product will take to double its profit. For this, you must divide 72 by the yearly return on the investment. Try it out for yourself. Make sure your return is strong enough to offset inflation as well. The greater the return you earn, the less chance there is for your investment to double. With this in mind, we also want to caution you against investing in products you do not fully comprehend. If unsure of the investment product, research it or seek professional assistance. Have adequate life insurance coverage. Are you and your family’s primary source of income? If so, you have a great deal of responsibility. It would help if you carried term life insurance equal to approximately 10–15 times your annual income and liabilities to meet these obligations. Making a compromise now could cost you a lot of money later. Understand the importance of savings. Set aside some for savings from a portion of your monthly income. You can start with 5% and work up to a higher percentage, perhaps even 25% or 30% of your income. Your savings must rise as your goals become more important as you age. Remember that it doesn’t just mean keeping money in a bank account when we talk about redemption. It also means investing in high-yielding financial products. Emergency Funds Ensure that you have sufficient emergency funds before you begin investing. As a rule, keep a minimum of six months’ worth of expenses in a combination of short-term or liquid funds and savings accounts. It will assist in surviving financial crises like loss of employment or a medical issue that requires immediate cash. On-road costs for a car should not exceed half of the annual income. If you’re considering getting a car loan, it’s ideal if the car’s on-road cost is at most 50% of your annual income. Follow the 20-4-10 rule, which states that 20% of the purchase price should go toward the down payment, that the chosen car loan term should not exceed four years, and that the EMI should not exceed 10% of your annual gross income. Put off buying a car if you still need to get the 20% down payment required for a loan. Investing each month to reach retirement objectives. You can achieve a simple lifestyle and retirement at 60. It can be a reality by simply setting aside 10% of your income. If you want to retire early, save 20% of your income. You can also opt for an online investment to achieve the goal. [B-02] Conclusion The thumb rules above should be considered when making financial plans. They can provide a strong foundation for long-term wealth accumulation. Your financial advisor can help you hone your strategy. If you still need to plan, think about the financial goals that working with an advisor can help you achieve. Remember to do extensive research before making any investment. Look at similar blogs on investments on Piramal Finance’s website. You can also look at the various products and services they offer.

08-11-2023

Tax Savings

Best Income Tax Saving Options 2022

It is vital to grasp the tax slabs to see how much you may save on taxes. Taxpayers are split into income tax slabs based on their yearly income as per the new income tax rules. Thus, if you are seeking a means to save on taxes, you may either invest your money in stocks and insurance or keep it aside for the future. You may also use the various permits to save money on taxes. Some tax-saving tips are given below. [B-01] Income tax savings options as per the new income tax rules Equity-Linked Savings Schemes (ELSS) Equity-Linked Savings Schemes (ELSS) are broad mutual funds. The new income tax rules allow for a tax deduction of up to Rs. 1.5 lakhs per year for Section 80C investments. You may earn returns in two ways: through dividends or growth. ELSS is an equity-based plan that invests 65% of its assets in shares. Dividends from these plans are not taxable. This means it is tax-free for both dividend-paying and long-term users. Yet, given their returns are dependent on stock prices, it is urged that you spread your assets among various ELSS. Long-Term Capital Gains on Long-Term Asset Sales Long-term capital profits from the sale of long-term financial assets. The tax has been levied on sales of stock shares and equity-linked mutual funds. It is treated as a long-term asset if you have owned it for three or more years. Section 10(38) is used to exclude any capital gains from the sale of such an item as per the new income tax rules. Yet, the current budget states that long-term capital gains are taxed as of April 1, 2018. But it isn’t all bad news. Current traders have been granted an exemption for capital gains made up to January 31, 2018. For example, suppose you bought a share in 2017 and sold it in July 2018 for a cost of Rs. 125. If your stock was worth Rs. 111 on January 31, 2018, you won’t be taxed on the Rs. 10 in capital gains. Income from Farming The Indian Revenue Tax Act exempts all agricultural income from taxation according to the new income tax rules. This is done in a bid to boost the agricultural sector. Farmland leases, profits from goods, and income from farmhouses are all tax-free. Public Provident Fund To avoid taxes, the government has created PPF Accounts under Section 80C as per new income tax rules. PPF investment gains are tax-free. The rate of interest on PPFs changes quarterly. For instance, if you are in the top tax bracket (30.9%), you will get a tax refund of 11.28%, saving you a major sum of money. You may create a PPF account at an approved post office or banking outlet. This is open to all, including minors. It is perfect for you if you choose low-risk investing and do not wish to deal with unstable mutual funds or stocks. Education Loans The tax paid on debts for higher education, whether for oneself, one’s wife, or one’s kids, is tax-free under Section 80E. There is no limit on this sum as per new income tax rules. Only the sum of interest paid is taxed, not the capital. Scholarships for Higher Education Scholarships or prizes given to students are exempt from taxation under Section 10(16) of the Income Tax Act. There is no cap on the amount, and the full payment is used for the scholarship. Donations of Time You may claim tax deductions for charitable offerings or philanthropic activities. Donations to the National Relief Fund are also deductible under Section 80G. Depending on the cause of the donation, certain donations are tax-exempt at 100%, while others are tax-exempt at up to 50%. Deductions may only be made for cash or check payments. Mortgage Loans A house loan displays how to save taxes in India five times over. There are three methods to save money on taxes by using house loans. You will save a lot of money as a result of this. Section 80C deductions permit you to reduce the debt repaid within the current fiscal year. The maximum deduction is Rs. 1,50,000. Section 24 permits you to deduct any interest paid on your house loan up to Rs. 2,00,000. First-time buyers may receive a grant of up to Rs. 50,000 under Section 80EE. You may even get another home loan if you live in the house where you got your first one. The tax deduction for a second home loan is infinite. Income from Savings AccountsSavings account interest up to a limit of Rs. 10,000 may be taken as a deduction under Section 80TTA. It is not completely tax-free since anything above Rs. 10,000 is considered taxable. It is declared on your ITR as other sources of income and is ultimately deducted in line with Section 80TTA. Standard Insurance The insurance plan has a set investment duration and a guaranteed sum. These are either whole-life insurance or money-back guarantees. The premiums are tax-deductible under Section 80C, but the plan’s value is tax-free upon death or maturity. However, it is vital to show that they are rigid and the rates of return are poor. How should you budget for tax savings this year? It would be best if you managed your taxes for the whole year, considering the new income tax rules. Yet, most tax planning occurs during the investment phase. You may pick tax-advantaged assets with EEE (exempt, exempt, exempt) status when investing: Investment in insurance plans qualifies for a tax break. The interest earned in the programme is tax-free. The maturity value (including any withdrawals) is tax-free. In this manner, you won’t have to develop a separate tax strategy once you’ve completed your goal and asset plan as per the new income tax rules. Your purchases must always be prompted by long-term financial goals rather than the short-term urge to save taxes. It would be best if you maximised your tax savings while staying within the parameters of your goal-based investing. [B-02] Conclusion There are several other methods for saving taxes in India as per the new income tax rules. Amounts given in marriage or inherited via a will are tax-free. Acquiring medical insurance benefits qualifies you, your spouse, and your kid for a tax deduction. Business persons may deduct travel and meal costs using the methods listed above. Salary taxpayers may save tax by using trip expenses and dwelling rent credits. If you want to learn more about income tax saving, visit Piramal Finance for similar blogs and explore their products and services.

08-11-2023

Credit Score

What is the Difference Between Equifax Credit Score Versus CIBIL Score

The Reserve Bank of India authorises specialised financial firms known as Credit Information Companies (CICs). They are also known as credit bureaus. These firms collect and preserve data linked to the credit behaviour of individuals and businesses in India. Credit bureaus like Equifax and CIBIL collect information from banks and lenders all over the country. These credit bureaus are two of the four official sources of credit information in India. Equifax credit scores and CIBIL credit scores are used by most banks to assess your ability to get a loan or credit card. The borrower’s credit score is based on the interest rate, loan amount, and length of time the borrower has to pay back the loan. If you’ve ever tried to get a loan or credit card, you know how important a good credit score and history are. A good credit score will help you get a loan from a bank or financial institution. [B-01] What Is The Equifax Credit Score? The Equifax credit score is a three-digit number that can range anywhere between 300 and 900. Its calculation is based on information from credit providers like banks and other financial institutions. A high credit score shows a possible lender that the person is reliable when it comes to paying back debts. The borrower’s loan application could be approved or denied based on their Equifax credit score. What Is The CIBIL Score? The CIBIL score is a three-digit number ranging between 300 and 900 that sums up your credit history and rating. As the number gets closer to 900, a person’s creditworthiness increases. When you apply for a loan, one of the first things a bank or lender looks at is your CIBIL score. If your CIBIL score is below 300, then the bank may not even look at the application. On the other hand, if your CIBIL score is more than 750, the bank or lender will do more research and look at other factors to decide whether to approve your loan. The bank that gives out loans or credit cards is the only one with the power to give you a loan or credit card. CIBIL has nothing to do with that. It only assesses your ability to repay the debt on time. Why Is Your Credit Score Important? Credit scores and reports are among some of the essential parameters used by financial institutions to assess your capability to repay a loan or debt. Let’s understand why your credit score is so important. Your Equifax credit score is a quick way to find out if you have been good with debt in the past. A lender will look at your credit report and score before giving you a loan or credit card. Your score is also used to determine the type of loans you can avail of and the interest rates on those loans if you are deemed creditworthy. Having a low credit score is not the end of the world. If your credit isn’t too bad, you may still be able to get a loan. But you should know that the terms associated with your loan or credit card may be much stricter. Maintaining a high credit score is essential as you build your credit history. Banks and other financial institutions use credit reports to find out if the borrower can pay their debt on time. Equifax or CIBIL — Which Score Is Required? Ideally, you’d need a credit report from one of the two bureaus. This can be either CIBIL or Equifax. Getting messages from both is the best way to gain a complete view of your credit history. Credit scores from CIBIL and Equifax can range anywhere from 300 to 900. Since the criteria used by each agency to determine a customer’s creditworthiness can vary significantly, a customer’s credit score may be slightly different on each report. Equifax Credit Score Versus CIBIL Credit Score The widespread belief that your credit score is the same no matter where you apply is one of the biggest myths. Since each credit reporting agency uses a unique scoring algorithm and methodology, it is not unusual for a consumer’s credit score to vary. To better distinguish between the credit scores of each agency, let’s take a look at the differences. Component of comparisonEquifax Credit ScoreCIBIL Credit ScoreCredit score range300-900.If you have a score of 750 or higher, you are eligible to get a loan, whereas a score of 300 or lower indicates a bad credit score.300-900. In the CIBIL scoring system, a score of 750 or more is outstanding, while a score closer to the low end of the scale is not perfect.Time taken to receive score1 day via email, and 7 days via post7 days via post or through email in 1 dayPayment methodDemand Draft (DD) only All payment methods are acceptedDispute resolutionYou can download the dispute form from the website and fill it up. After sending it, a response usually takes 7-14 working days. If there is a problem with your CIBIL report, then you can take it up with their team. They will resolve it as soon as possible. [B-02] Conclusion Professional borrowers are the ones who stand to gain the most from the credit arrangement. They know their current credit standing and the actions necessary to qualify for a loan. If you have a complete picture of your financial situation, you can better manage your credit score and make sound financial choices. Both Equifax and CIBIL offer guidance on how to improve your credit score. The Equifax credit score and CIBIL credit score are important parameters to get a loan. Visit Piramal Finance for similar blogs and take a look at the various financial services they offer. Their services include home finance, structured debt, senior secured debt, construction finance, business and personal loans, and flexible lease rental discounting.

08-11-2023

Personal Loan

How To Choose The Right Personal Loan Lender

Personal loans are often the easiest option to get money quickly. You also get a lot of leeway in how you spend the money lent to you. The interest rate is also lower than that of credit cards and other widely used methods of borrowing money. A personal loan can be a great choice when you need quick access to cash. Since you do not have to put up any collateral to get this unsecured loan, it is easy to get them approved and funded. Personal loans may be approved instantly, and, with some lenders, the sanction may be in place in as little as 24 hours. [B-01] 10 Things to Consider While Choosing a Personal Loan Lender When you want to take out a personal loan, do so only with a lender you know you can count on. At times, you may find that some loan offers have very low interest rates. But if you look closely at the tiny print, you will find that extra fees like a processing charge or high prepayment penalty are levied before the loan’s maturity. This article gives you some tips on choosing the right lender from so many personal loan companies out there. You must keep in mind a few crucial things while selecting a personal loan lender: Check your financial situationPersonal loan companies offer a wide range of services to meet individual needs. Some companies only want to lend to people with good credit and steady incomes, while some other lenders may still give loans to people with low credit scores. These loans are given at higher interest rates.Even if some lenders have the lowest interest rates, they might not give you a personal loan. So, first, you should look at your credit score and finances to find the right lender for yourself. Explore the marketPersonal loans are offered by banks and online lenders, among other finance lenders. So, you should look around for the best rates and terms before picking your personal loan financer. Consult with multiple loan givers and compare ratesPersonal loan interest rates and repayment conditions vary from one financial institution to another. Getting a personal loan quotation today is very easy all thanks to the internet, so do some comparative window shopping. This raises your chances of finding the cheapest loan choice. Analyse different lenders based on interest ratesWhen looking for the best personal loan option, the interest rate is a crucial factor to consider. This decides whether or not you can afford the loan.Your credit record and ability to make monthly payments are two factors that the lender will use to calculate your interest rate on a personal loan. A higher score denotes a more reliable person for paying back the loan. But, if your score is low, your request can be rejected.To check if a loan is within your financial reach, all you need is an EMI calculator. With this calculator, you can check the best loan option based on your monthly budget and the total interest you will pay throughout the loan. Check for the lowest and highest loan amountsIt is vital to pick a lender that can lend you the most amount at the lowest rate based on your financial ability and needs. If you do proper research, you might find personal loan companies that lend larger loan amounts with no security or collateral. Find a lender with easy eligibility criteriaIf you want the best personal loan available, you should always search for a personal loan lender with easy-to-meet needs. This makes it more convenient for you to get money and speeds up the process of checking and getting approval. Check the lender’s credibility and worthChecking if a personal loan lender is worth your trust is just as crucial as them checking your trustworthiness for repayment. Before applying for a personal loan, it is a good idea to do some research online and look at things like customer feedback, lending policies, and total expenses. Always go with a brand that has a solid image and goodwill in the industry. Ask about any extra costs and feesYou must make sure that apart from the interest rate, you also look into any fees and hidden charges. These could be expensive, depending on the lender. You might end up going over budget without realising it at first.So, avoid making a decision solely based on a low rate of interest. Any other processing fees, failure charges, penalty charges, and security charges should also be considered and calculated. Ensure flexibility in repaymentMake sure your repayment period is flexible if you want to have the smoothest loan experience. This enables you to spread out your EMIs over time, so you can repay the loan as per your ability. This also lowers the chances of default. Ask for application processing time A loan approval process is usually completed in no time. Pick a lender that will not add extra time and hassle by making you fill out plenty of paperwork. Ideally, a lender should approve a personal loan within 72 hours of receiving your documents. You can rest assured that following these tips will help you get the best personal loan that aids your finances. [B-02] The Bottom Line A personal loan gives a person many perks and can be put toward a wide range of expenses. Selecting a renowned financer with a good market reputation as a personal loan lender is vital. This ensures that the loan does not turn into a financial nightmare. Visit Piramal Finance for your financial needs and questions.

08-11-2023

Electronics

5 Best Affordable Air Conditioners on EMI to Beat The Heat

In a country like India, where the weather is hot and humid for 8–9 months of the year, air conditioners are a basic need to escape the warmth. Air conditioners come in a variety of price ranges and sizes. There are two main varieties: window AC and split AC. Split ACs are becoming more popular since they look great and take up less room than window air conditioners. People prefer split ACs over window ACs because of their noiseless function, attractive look, and many other benefits. Always examine your budget and study the costs of several items in the same category before deciding on the type and brand of the air conditioner. [B-01] The 5 Best Air Conditioners You Should Buy Voltas 1.5 Tons 3 Star BEE Rating Inverter Split AC White Using this Voltas 1.5 ton AC, you may update your house. You can boost the degree of comfort in your living room or bedroom. It has a vast cooling system of 5,100 watts, making it perfect for houses in humid or hot climates. The special sleep mode enables you to sleep in peace all night by maintaining ideal levels. Blue Star 5w18gbti 1.5 Ton 5 Star Inverter Window AC This fine window AC of 1.5 tons is a unit that offers good power and longevity while being affordable. The Blue Star 1.5 Ton Inverter Window AC provides steady cooling. It also has a strong dryer to aid in moisture removal from the air. Rest easy knowing that its high-speed blower provides quick cooling at lower noise levels when needed. Windmill Air Conditioner When it comes to air conditioners for smart homes, this Windmill AC Smart Home 8300 BTU AC is a good choice. A sleek, auto-dimming LED screen offers a sleek style. You can simply manage the device with the provided remote or your voice by using Amazon Alexa or Google Assistant. By using its app, you can handle your AC from anywhere without having to be right next to it. The AC covers a decent 350 square feet and blows air at a 45° angle for better coverage. It is also very energy-efficient due to the use of upgraded R-32 refrigerants. The device comes pre-assembled, so remove it from the package and follow the instructions in the user manual before putting it anywhere you like. It also has a 30-day return period with no questions asked. GE AHEC05AC The GE AHEC05AC is a low-cost device that uses 5,000 BTUs to chill rooms up to 150 sq. ft. It’s a window-mounted device with a fixed frame and an EZ Mount assembly kit for simple setup. Despite its tiny size, it gets to pack 10 various temperature choices into one device. The variable thermostat controls dual cooling levels with two fan speeds, and the addition of 2-way louvres guarantees cold air is properly spread wherever the device is placed. It is also quiet, making it perfect for use in a bed or dorm room. Once it is time to clean, the filter is simple to remove and may be cleaned for future use. Much better, a one-year replacement service is provided. Midea U MAW08V1QWT Midea U MAW08V1QWT is a great mid-range device with Wi-Fi ability for your smart home for easy access. This is a unit that is easy to set up in just three stages. Due to Midea’s complete DC inverter technology, the unit is strong enough to push cold air up to twenty feet once mounted. As a result, the device can easily handle bigger spaces. This U-shaped AC has a far quieter sound that may go as low as 42 dB. This AC form also allows you to open and shut your windows while the device is in place. This is so you don’t lose the vital use of that one window in your house or workplace. A one-year warranty is also offered. Some Key Aspects to Consider When Buying an Air Conditioner In the heat, it is very hard to stay inside without a proper cooling system. Staying indoors with a strong AC is the best way to beat the heat. Yet, it is always a good thing to be alert to some specific traits and technical details in advance. These are the vital needs of every model. Some specific things to consider while buying air conditioners are: What is the wattage of that AC? The overall power demand varies per model. Several external factors may affect power use. The power usage in watts will differ based on the size of the space, the number of gates, the chance of air leaks, the frequency of maintenance, and the cooling output. An AC’s cooling power is mostly governed by its cooling ability. The cooling ability of the air conditioner is the overall level of cooling given by it. If you live in a hot and humid climate, you must always get a large air conditioner to get the best cooling. In India, electronic devices are rated using the BEE (Bureau of Energy Efficiency) star rating. This ranking is based on the power efficiency of every air conditioner. The device is scored from one to five stars based on some calculations. An item with a larger number of stars costs more than an item with one or two stars. Even though a high-star item costs more, you must pick it since it will save you cash on your power bill and in the long run as well. [B-02] Conclusion There are many kinds of air conditioners on the market now. However, the two most common are window ACs and split ACs. Window air conditioners come in a variety of sizes but are either placed in a window or inside the wall. This makes them a potentially intrusive feature of your space. A split AC, in contrast, is self-contained and may be shifted from one spot to another since it is not attached to a single point. So, you should pick the AC as per your budget and the space in the room. Take a look at similar blogs on the best air conditioners on Piramal Finance’s website. You can also take a look at the various products and services they offer.

08-11-2023

Home Loan

3 Simple Steps For Effective Home Loan Management

The most significant financial choice that most individuals want to make is buying property. Given that owning a home is expensive, many people choose to borrow money for it. A home loan from a bank or mortgage lender is a good option. Housing loans are secured loans obtained by pledging the property as collateral to the lender. They offer high-value financing with low house loan interest rates. Furthermore, they also have long repayment terms. They are repaid through EMIs. Following repayment, the borrower receives possession of the property. [B-01] 3 Simple Home Loan Management Practices Opt for home loans with lower interest rates As a borrower, choose housing loans that are available at affordable interest rates. This is the first step to consider before opting for a home loan. It will help you pay your EMIs in the future. Interest rates tend to fluctuate. So, thoroughly research low house loan interest rates before finding a suitable loan option. Enhance your EMIs Once you avail yourself of a home loan, you should keep a constant monetary check on the EMIs. Hence, it is recommended that your monthly repayments be increased. Home loans offer huge financial support to the borrower. However, repayment of such a heavy amount in a short period can be made possible by increasing your EMIs. This routine monthly practice will prove quite effective and helpful in the long run. For your convenience, you should use a loan calculator. Assess your monthly expenditures and enhance your EMI accordingly. Opt for the partial repayment option Getting a loan cleared is the primary concern of most borrowers. The best way to achieve this objective is by opting for partial repayments. This will cut a significant chunk of your loan repayment amount. Besides, this practice also ensures a cut on excessive interest payments. As a borrower, EMI enhancement and partial repayment are potential practices that lower the burden of your loan. What Is the Importance of Home Loans? Everyone wishes to enjoy the security of their home, and getting a home loan can help them get it. Obtaining a house loan comes with many benefits, including: Tax Benefits The government provides tax advantages on mortgage loans. Under Section 80C and Section 24B, individuals are eligible for tax refunds of 1.5 lakh rupees and 2 lakh rupees, respectively. Newly built residences are not eligible. Reduced Rates of Interest Housing loans are available with fixed as well as adjustable interest rates. They also have lengthy terms. If house loan interest rates are floating, you will enjoy declining ROIs. Enhanced Assets Property investment is a rising asset class. By taking out a mortgage, you can buy a home today that will increase in value tomorrow. The business of buying residential houses will keep prospering. This is due to India’s young population and a growing desire to own a home. Stay Liquid Preserving or investing your liquid assets is recommended if you have access to them. As life is erratic, it frequently throws our plans into a loop. You can experience a liquidity crisis in the future if you use up all your available cash to buy your favourite house in one go. Home loans enable you to maintain liquidity while only paying a small chunk of your salary or savings through EMIs. Rent Relief If you do not want to move frequently and waste money on rent, applying for home loans to purchase a home is the best alternative. It gives you the freedom to decorate your home and live your life as you wish while also providing enough space for each family member. Refinancing Facility Home loans allow borrowers to transfer a particular loan to another institution or lender to avail themselves of a feasible return on investment. Unsatisfaction with your current home loan ROI or the institution's representatives should motivate you to make a shift. This shift should offer lower rates of interest and good service. Selecting a Low House Loan Interest Rate Opting for a low interest rate is one factor to consider when applying for a home loan. You can borrow money from lenders to pay for a home at a predetermined interest rate. When you begin repaying the loan, you also have to pay the interest. Usually, there are two types of house loan interest rates: Fixed interest rate Simply put, a fixed interest rate is one that the bank or lender decides will not change during the loan. You get the advantage of knowing your loan repayment amount before you sign the loan agreement. Throughout the term, your home loan EMI will also not change. Floating interest rates A floating interest rate changes in response to market developments. The rate would increase or decrease depending on how the market is performing. Your interest payment may increase or decrease if the interest rate is variable. As a result, your EMIs will also rise or fall. Lenders have different interest rates that consider competitive factors, ranging from 6.5% to 13% p.a. You may calculate the interest using an EMI calculator. You only have to enter the loan amount, loan payback period, and interest rate there. Once the details are filled out, you receive a complete overview of the loan, including the amount due. [B-02] Conclusion Buying a house is a huge step. It can cause stress, but it also provides a great sense of achievement. Given the skyrocketing real estate prices, it is challenging for an average person to buy a home purely out of savings. On the contrary, home loans enable you to buy your dream home and provide other benefits. These loans have low interest rates. This makes them a central part of investment portfolios. They also aid in claiming an income tax deduction of up to Rs. 1.5 lakh for the entire interest paid on the home loan. Piramal Finance has various other blogs on home loans that you must check out. You may also take a closer look at their various financial services and products.

08-11-2023