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Home Loan

Applying for a Home Loan? Tackle These 6 Problems

Are you thinking of getting a home loan but do not understand the process? Was your application turned down for some reason? Or maybe you’re having trouble deciding on a home loan interest rate. Then this article is for you. In this article, we will discuss the problems you can face while applying for a home loan and the possible remedies. Buying a house is generally the hardest financial decision; housing loans are often the only way to support the dream of buying a new house. But unfortunately, the road to getting the loan isn’t always smooth, and the hurdles can end up eating away at your financial stability. [B-01] The Problems You Might Face: Here is a comprehensive list of issues you might face while applying for a home loan. Rejection of Application: Rejection at the very application stage is quite common with borrowers. It is mostly when your credentials do not match the eligibility criteria put forward by the lender. You can avoid going through this hassle only by double-checking the criteria set by the lender you are opting for so that you can avoid this rejection process. You can also apply to multiple institutions for a loan to improve your chances. Incomplete Documents: Another reason why your application can be rejected is if the documents you have provided are not appropriate or not verifiable. Only by providing appropriate documents per the lender’s needs can your loan be approved. Desired loan amount not sanctioned: One of the major problems that a home loan borrower might face is not getting the desired amount of a housing loan sanctioned by the lender. This might have multiple reasons: already ongoing loans, your low monthly income, poor financial history, the value of the property you were hoping to buy, your credit score, and so on.This kind of problem might also end up getting your home loan application rejected in the first place.When your credit profile is weak, the lender will not have high confidence in you. Thus, you will not get your desired loan amount. You can increase your chances of getting the desired amount of loan by providing complete, verifiable information to your lender.You can also apply for the home loan with a co-applicant who will act as a backup repayment source for the borrower. It will ultimately improve your chances of getting your desired loan amount sanctioned. Problems with interest rate: The interest rate a lender offers for the loan depends on various factors, such as: your credit score, your job profile, monthly income, loan duration, the value of the property you are opting for lending rate, and so on.The lending rate is the most important determining factor for house loan interest rates. It is the minimum rate a bank can lend at.Another dilemma with the interest rate is often the type of interest rate you are opting for. A floating interest rate is ideal when you are expecting interest rates to drop in the future. However, if the interest rates are predicted to increase soon, then it is ideal to opt for a fixed house loan interest rate. You can also mix fixed interest rates with floating interest rates to give yourself more options.Processing fee: A loan processing fee is an amount valued at 0.25% to 1% of the loan amount. In most cases, it is non-refundable even if your loan is not sanctioned. Read the terms of the loan documents carefully so that you can account for the amount of the processing fee deducted. Also, check if the bank refunds your processing fee. If they do, get it legally documented so that you can get it refunded safely.A discrepancy in the valuation of property: A common problem that any borrower faces while getting a home loan is the discrepancy in the valuation of the property. Each lending institution has its own financial experts who analyse the property value based on their parameters. Based on these parameters, they determine the property value, which may be less than your expectations, and thus the loan amount sanctioned.Property valuation depends on a series of factors, such as the age of the property, construction quality, location, history, etc. To avoid these problems, you must have an updated property valuation report from the property owner or a bank-approved evaluator and apply for the loan accordingly. Your application will not only have a better chance of being accepted, but your lender will also be more likely to give you the loan amount you want. Problems with down payment: Suppose you want to get a loan of INR 50 lakhs sanctioned. You may need to save INR 5-10 lakhs as a down payment. Most lenders sanction up to 80% of the property value as a housing loan, and the remaining amount has to be put down as a down payment. This down payment is substantial, which can be stressful for a borrower.If you are unable to make the down payment, your home loan application might be rejected. The only way to tackle this problem is to have the down payment money ready beforehand and a steady source to pay off the upcoming EMIs. You should also read the terms and conditions to get a proper idea of the down payment you need to make. [B-02] Final Thoughts Buying a house is generally the most important financial decision you will make, and thus, you should have a proper idea of the above-stated problems before even applying for the loan. Visit the Piramal Finance website to use our services or learn more about home loans and other important financial ideas.

08-11-2023

Personal Loan

Indian Market’s Rapid Movement to Personal Loans Online

When a person borrows money from banks, online lenders, credit unions, etc. for personal reasons, it is considered a personal loan. Personal loans can cover several expenses. It has to be repaid over time with some interest (and maybe a fee, too, if applicable). It is also considered an instalment debt, providing a lump sum of funding. [B-01] Possible uses of personal loans Wedding plans Vacation Moving settlements Getting the house interiors done Unexpected expenses, such as funerals Expensive purchases, etc. Types of personal loans Secured personal loans: This requires some type of collateral or security for borrowing money. Unsecured Personal Loans: This does not require any type of collateral or security for borrowing money. Most banks, online lenders, and credit unions offer both of these personal loans. The difference between a personal loan and a personal line of credit A personal loan directly gives you money to be used in any way you wish. Still, in the case of a personal line of credit, the functionality is more like that of a credit card or bonus points: you get credits that can be spent by you, and they reduce with each use and can be recharged by putting money on them. Online personal loans Slowly and steadily, India is whetting its appetite for digitalisation in the banking sector. Digitalization in online lending and loan systems is in its evolving phase in India now, and online personal loans are a crucial part of this transformation. In recent years, a high proportion of lending has taken place online. Reasons for this rapid movement of personal loans online include: Highly competitive lending market and the environment: there is a rise in demand for personal loans or any other lending facility in general. Not everyone has sufficient time to go to an actual bank or lender to get the formalities done. Hence, banks, lenders, and credit unions are now providing online provisions for their customers to apply for personal loans. If these lenders do not come up with these online alternatives, customers won’t hesitate to replace them. The digital life: from placing a pizza order to applying for universities abroad, everything is now digital. Millennials are dependent on digital mode for literally everything, so why not for personal loans? Money lenders and their customers both value time and convenience. Digitalisation just makes it easier for these needs to be met. With the recent pandemic, which led to the elimination of personal contacts, online loans caught a good amount of momentum because of that as well. Flexibility in EMIs and repayments: Banks in India convert high-value transactions into flexible and suitable EMIs on their banking systems. Customers are drawn to online personal loans because of their flexible repayment options. Attractive Interest Rates: One of the strong strategies used by online money lending franchises is offering great interest rates, low fees, and bigger benefits to attract more new customers and keep the old ones loyal. Online banks, lenders, and credit unions provide many facilities that make customers go to them immediately. Online credit scoring system: A credit score is something that the credit bureau in your country calculates considering factors like repayments, credit history, etc. An online personal loan lets a person be entitled to a good credit score, a good loan amount, fewer interest rates, a choice of the period in which you want to repay the loan, and some other benefits the individual can enjoy. This is a good criterion for grabbing more and more customers. Easy Approvals: People get quick and easy approval on their loans in online mode. Quick Disbursal: Online platforms provide quick disbursals. You are eligible to go ahead with the rest of the steps of your online loan process in a couple of minutes. Minimal Documentation: The best part about digitalisation is that it eliminates all the paperwork and work that can be very easily done with minimal documentation requirements, making it super convenient. Association of Online Lending Portals: Many online portals offer customer service by partnering with a website or brand so that customers can buy directly from their portal and then get attractive monthly payments (EMIs). These are a few of the reasons why people in India are moving quickly toward online banking and online personal loans. How to Apply for a Personal Loan Online Step 1- Download or log in to the online app or platform from where you are ready to take a personal loan. Step 2- Opt for a personal online loan Step 3- Read the eligibility criteria carefully Step 4- Proceed with the steps if you are eligible Step 5- Upload the required documents and fill in the important details Step 6- Verify your identity using the suggested method by the online merchant Step 7- Disbursal of the online loan in a short period, with the amount being transferred to your account. Dos and Don’ts While Applying for a Personal Loan Online DOs Go through the eligibility criteria. Make sure the website you are using to apply for a personal loan online is real. Pay attention to any additional or hidden charges or fees. Make sure to make a comparison between different banks, lenders, etc. Look for benefits, interest rates, etc. DON’Ts Don’t forget to check your credit score and the amount. Don’t fall for too-good-to-be-true offers online. They could be fraudulent. Don’t miss out on knowledge; do your research before applying. Don’t just proceed with the application without calculating for yourself. [B-02] As the Indian economy is proceeding to be a world leader in different sectors, we have seen growth in the banking and BFSI sectors. People are taking advantage of the low cost and easy availability of credit. There are several market leaders and experts such as Piramal Finances, and you would find more information and guidance for finance and Personal banking related topics at https://www.piramalfinance.com/personal-loan

08-11-2023

Bonds

Benefits of Investing in RBI Bonds

What Are RBI Bonds? On July 1, 2020, the government of India announced a new scheme called the Floating Rate Savings Bond. This scheme is taxable and open to the residents of the country and HUF or Hindu Undivided Family. What exactly is this Floating Rates Savings Bond? It is a debt instrument issued by the government whose rate of return fluctuates from time to time. As mentioned by the RBI, the interest rates would be reset every six months. The bond has no monetary ceiling. The first set was made available on January 1, 2021. The bonds were issued in electronic form. One could apply for the bonds via a physical or electronic medium. [B-01] Features of FRSB: The income derived from the scheme is taxable Issue price: Rs. 100 Minimum amount to be invested is Rs. 1000, with no monetary ceiling The maturity of the bond is 7 years from the date of issuance The bonds cannot be traded in the secondary market Bonds are issued in Demat (Bond Ledger Account) only The purchase of these bonds is available through designated branches of the State Bank of India, Nationalized Banks, IDBI Bank, Axis Bank, HDFC Bank, and ICICI Bank The ownership is non-transferable (except in the case of the death of the original holder, in which case the ownership gets transferred to the nominee) These bonds cannot be used as collateral for loans How much is the interest rate? The interest rate is floating. This means that the bond does not guarantee a fixed interest rate for the entire maturity period of the investment. It keeps changing. The interest rate when the scheme was introduced was 7.15%. The interest is payable semi-annually, i.e., one payment on 1st January and the other on 1st July. The interest rate is reset every six months. The interest cannot be paid on a cumulative basis. The interest rate on these bonds is linked to the National Savings Certificate. This means that any fluctuation in the NSC rate will have a direct impact on the FRSB. The interest will be taxed, and TDS will also apply to income earned on interest. What are the benefits of investing in RBI bonds? The following are the benefits availed while investing in RBI bonds: One of the biggest benefits of investing in RBI bonds is security. It is a government-backed scheme, so there is no credit risk involved. The investment has high credit quality. You do not have to worry about the safety of your money. As compared to other schemes like Fixed Deposits or post office schemes, the interest rate is quite high. This ensures better returns. There is no monetary ceiling. This means you can invest whatever amount you feel okay with. This is a good thing for those conservative investors who want to invest huge sums but are concerned about safety or risk. If you have a fixed source of income, this investment is a haven for you. Even though the lock-in period is long, it serves as a long-term investment. This investment is very safe for senior citizens as it is credit-safe and the rate of interest is high. Those who have surplus liquidity at hand can safely put away the amount in this scheme and earn interest. The bonds cannot be traded on secondary markets. So it ensures a sense of stability. These bonds cannot be used as collateral against any loans. This further ensures their safety. As a long-term investment, the amount gets locked. So it is therefore the best option for those wanting to securely put money away for goals like their children’s higher education, marriage, retirement, etc. Drawbacks: The following are the drawbacks of investing in this scheme: There is no liquidity The amount gets locked in for a significant duration. Seven years may seem like quite a long time for some people. In addition, if one needs to withdraw the money in an emergency, they must pay a penalty for doing so before the maturity date. The floating interest rate depends on the RBI’s policies. [B-02] Conclusion: If you are someone who wants to safely put aside some amount for long-term investment but is scared of the risks that investments like mutual funds or stock markets offer, this is the best scheme to invest in. It is the best option for those seeking safe and risk-free investments, with good returns and credit quality. To know more, connect with the financial experts at Piramal Finance.

08-11-2023

Personal Loan

Benefits of Personal Loan In Higher Education

Higher education can be costly, especially if you go to a university abroad. But it’s also a chance to do something that can teach you a lot and help your career in a big way. If you aren’t sure how you’ll pay for higher education in a foreign country, a higher education loan could be the answer. You can get an education loan or a personal loan. Personal loans are unsecured. This means that you don’t have to put up any security or collateral. They are simpler to get. The terms for paying them back are also more flexible. Also, getting a personal loan for education has several tax advantages. [B-01] What are personal loans for education? Personal loans for education are a type of credit that a bank offers. You can use the money you borrow for anything you want. A personal loan for education can help you pay for things like tuition, housing, and other school-related costs, as well as things like food, travel, and other non-school-related costs. These personal loans for higher education are not backed by any assets. It means that if you want to borrow money from a bank, you don’t have to put up gold, property, or other valuables as collateral. On the other hand, you might have to pay more in interest on higher education loans. Personal loans for higher education are easy to apply for, take little time, and require little paperwork. Once your application has been approved, the money will be sent to the bank account you have chosen. Benefits of a personal loan for education There are some factors you should know before getting a personal loan for your higher education. Credit score for personal loans CIBIL gives each person a credit score based on how good of a credit risk they are. If you have a good credit score, it will be easier for you to get a loan. Before giving you a loan, lenders always look at your credit score. For a personal loan, all you need is a credit score of 750 or higher. Half the work is done with this score. When you get a personal loan, you don’t have to give a lot of complicated information about your finances. Use for any purpose As already said, unlike an education loan, a personal loan for education can be used for anything. If you take out an education loan, the money will be sent directly to the bank account that your school or college has set up. But if you take out a personal loan, the money will go straight into your bank account. So, you can take a personal loan to pay for any type of expense, such as living costs, housing costs, and so on. On the other hand, you can only use an education loan to pay for school or college. This is the main advantage of a personal loan for education over an education loan, although there are tax benefits for student loans. No need for security Personal loans don’t need the person to put up property or jewellery as security. These loans don’t require any collateral. The fact that these loans are not secured means that the borrower has to pay a higher interest rate. But it makes getting these loans less stressful. Also, you don’t have to own expensive things to get a personal loan. Compared to other types of loans, there are fewer restrictions on who can get one of these loans. A high amount of loan A personal loan can be as much as Rs. 30 lakh (varies by lender). This amount of money will be sufficient to pay for high-quality education in India. You might have enough money to pay for things other than college or school. Personal loans are a great choice for students because they can borrow a lot of money without putting anything up as collateral. The high loan amount also gives you the freedom to choose a sum you’re comfortable with. Due to increased loan limits, you can borrow the money you need. Flexible tenures Personal loans can be paid off in about 60 months, depending on the lender (or 5 years). When you apply for a loan, you can choose how long you want it to last. The loan term is flexible. So you can choose whether to pay less in interest or more each month, depending on your needs. If you have a loan with a longer term, you will pay more interest in total. On the other hand, if the loan term is shorter, the monthly costs will be higher. Quick disbursal No one can wait to get into college or school. After getting accepted, you have a short time to pay the necessary fees for the year. Personal loans can help because they can be paid out quickly. The whole process of applying for a loan can be done online. After you apply, the lender will easily verify your application to make sure everything is in order. If everything is in order, the loan will be approved within a few days of the date you applied. Once the loan is approved, the money will be in your authorised account within 24 hours. Minimal documentation Lenders know that getting a loan should be easy for the person who needs it. So, they only ask for the documents they need to make things easier for the borrower. Personal loans are unsecured loans, so the paperwork needed is simple. Most of the time, you will only need the following documents: Proof of identity Proof of address Proof of income Proof of employment [B-02] Conclusion When thinking about how to pay for your child’s education, a personal loan for education might be the best choice. These loans are designed to be easy and convenient. Since the loan doesn’t require collateral, the borrower doesn’t have to worry. Even though you don’t get the tax break that comes with an education loan, there are many other benefits to getting a personal loan instead of an education loan. For more blogs like this, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Other

Why Gold Investment Is A Smart Investment

The goal of investing is to increase the value of the money invested. The returns received from investing act as a source of income and can be used to meet all your financial needs. However, the mode of investment you choose is very important. Your financial investments can take different forms: mutual funds, unit-linked investment plans, endowment plans, stocks, bonds, and more. You may have some reservations about investing in gold. This article will give a detailed account of the things you need to know before choosing gold investments. [B-01] The Benefits of Gold Investments Gold investment has been one of the most preferred modes of investment for a long time. It is an ideal investment option because it provides protection against inflation and has little correlation with other types of assets. Beats inflation Escaping from inflation is not possible. However, gold is the only option that helps beat inflation and keeps its value. The reason is that the value of gold increases as our cost of living increases. People often choose gold loans as it helps them to take credit that ensures a guaranteed loan amount; also, because its value keeps going up. Investment portfolio diversification It is necessary as it helps balance the risk. The gold value is inversely proportional to that of other traditional investment options. So, it acts as a buffer against the volatility of markets. Market forces: supply and demand Since gold is a precious natural resource, there will always be a demand for it. Therefore, gold investment is an excellent option for you to consider. The liquid nature of gold The liquid nature of gold makes you rely on it, even in pressing times. In case of an emergency, you can sell it because of its constant demand. Balances currency devaluation Since financial markets are uncertain, currencies lose their value. However, in the case of gold, this is not the case. Gold investors are free from the problem of currency devaluation. The currency would generally become weaker, while gold would strengthen. A unique example of the same is gold loans. Useful even in the worst of times You can rely on gold because it survives both financial and geopolitical uncertainties. The value and demand of gold never decline. It always stays constant and does not deteriorate with time. Best returns Gold always provides the best returns. It is best to be relied on, even in the worst of times. Unlike stock markets and real estate investments, gold rates will not fall dramatically. Thus, it protects your investment in the long run and helps you get good returns. No effort is required for maintenance. Unlike investing in properties, buying gold requires no maintenance. You can easily buy and store it without any extra effort. Can be passed on to coming generations The value of gold never changes, even after decades, and can be passed on to future generations. Thus, gold investment is an excellent option for you to consider. Various Forms of Gold Investment Direct investment in physical gold The traditional way of investing is simply by buying physical gold directly. But the negative aspect is that there are chances of theft as well as storage issues. The positive is that you can sell it in the future at a higher price. Gold exchange-traded funds (ETFs) They are not material like physical gold but paper representations. It is similar to direct investment, and investors can buy proportionate shares of a collective vault. Mutual funds in gold It is another method that liberates investors from the duty of buying and storing physical gold. Here, the investors invest not in gold but in gold mining companies. Schemes For easy purchases of gold, jewellers offer various schemes. These vary from one jeweller to another. According to this scheme, investors should invest a specific amount for a particular period to generate a certain amount to buy gold. The digital form of gold It is an investment option that is becoming increasingly popular. It works like a digital payment option where investors can buy or sell through fintech platforms. Investment in sovereign gold bonds It is an investment option reserved by the Reserve Bank of India, where investors can buy the bonds in digital, physical, or dematerialised format. These bonds are securities that you can trade in the form of gold. Gold loans People often prefer taking out gold loans. These involve keeping their gold possession at the credit giver’s possession and taking a value against it. As gold prices keep going up, it is one of the best forms of loan. Gold loans are simple to obtain. We cannot predict the emergencies that might come. So, prior preparations are necessary. Hence, it is always better to go for gold investment. You can depend on gold investment because it is easy to liquidate it in the market. Nowadays, many financial institutions provide gold loans. In most cases, you can get the loan within a day, depending on the overall value of the gold. You will get the gold back without any damages after the gold loan is cleared. Taxation of Gold Investments Every investor should know about taxation on returns. The tax differs according to the mode in which you choose to invest in gold. Digital gold: If you own it for less than 36 months, it is non-taxable. However, gaining returns for a long time can result in a 20% tax with a surcharge and a 4% cess. Taxation on physical gold: In the case of short-term capital gains, your tax is in accordance with your applicable income tax slab rate. Long term, you must bear 20% of your returns. A 4% cess is also present in the transactions. Gold ETFs and mutual funds: Gold investment through these modes requires a 20% tax with a 4% cess in the long run. In the short run, tax is calculated based on your slab rate. Things To Keep In Mind Before Gold Investment Do thorough research before investing in gold because the price depends on market forces like supply and demand. If you plan to buy physical gold, do the necessary things for its safety and security. The price of gold can sometimes move directly to the stock markets. Therefore, it is vital to ensure that the portfolio is immune to every adversity. [B-02] Summing up You can read more about goal loans, investment strategies, and other parameters on Piramal Finance’s personal loan page to understand more about this unique form of investment and explore their products and services.

08-11-2023

Personal Loan

Why Use An EMI Calculator Before Taking Out A Personal Loan?

Personal loans are very popular among people with urgent money needs. Since there is no need for collateral and it takes only a few hours to process, you can use personal loans for all kinds of expenses. Only a few papers must be given for this loan, as most lenders offer you the choice to apply online. Also, you do not need to pay any lump sum amount and must pay only the EMIs. Though, it is vital that before you apply, you must use an EMI calculator for personal loan. It is a free tool that you can get online, but it is very useful. You do not need to provide any personal information to use it. Hence, the entire process is highly secure. Using a personal loan eligibility calculator will allow you to know the EMIs you must pay before you decide on the amount you want to take out as a personal loan. Read on to learn why you must use an EMI calculator for personal loan. [B-01] What is a personal loan eligibility calculator? An EMI calculator for personal loan is a very useful financial tool you can get for free online. You can access this tool on a website or as a mobile app. Like a home loan EMI calculator, this tool allows you to learn how much EMI you need to pay monthly during the loan tenure to repay the amount. It usually asks for details such as the value of the loan, duration, and interest rate. With a personal loan eligibility calculator, you can see the EMI amount, total interest, and principal paid. Some apps will also offer you the option to get a loan schedule to understand the repayments better. Hence, you can know the EMIs you need to pay and plan your finances accordingly. How to Use a Personal Loan Eligibility Calculator It is very easy to use a personal loan eligibility calculator. This free tool is available on many sites or mobile apps. Here are the steps to follow for using an EMI calculator for a personal loan: Search for ‘EMI calculator for personal loan’ to access websites offering this tool. You can also visit the app store on your smartphone and download an app. Open the link or app, and you will be able to see the EMI calculator on your screen. Enter details like loan amount, tenure, and interest rate. Check the details once more, and then click on the submit button. You will now see all the key details of the personal loan, such as the EMI, total interest, total principal, and total amount paid. Some apps will also let you see a payment schedule to help you better know your EMI value. You can use this tool for various lenders and learn about the best offer. Why Use An EMI Calculator For Personal Loan? You can avail many benefits by using an EMI calculator for personal loan. Here are some of the perks that you can get from this tool: Free to use: You must use a personal loan eligibility calculator before you take out any loan. It is a free tool that is present on many websites or mobile apps. As you do not have to pay anything, it is ideal to compare various loan offers with this tool before you apply for a personal loan. Quick: If you try and calculate the EMI on personal loans manually, it will take many hours. Also, there is always a chance of an error, as you need to know about the EMIs for the entire duration of the loan. But these issues will not bother you if you use an EMI calculator. This tool will finish the process in a few seconds and display the results on your screen. There is no chance of an error with an EMI calculator for personal loan. Easy and Simple: You do not need any special skills to use this tool. It is very easy and simple because you only have to enter basic information like loan amount, tenure, and interest rate. It will take care of everything else and show the results on your screen in a few seconds. This helps you decide which loan offer to accept. Discreet: There is no need to provide personal information like your name, income, age, or contact number to use a personal loan eligibility calculator. Hence, your profile will not be known to anyone, and you will not get any spam emails, calls, or texts. You can also use it on various sites or apps to see if the results are correct. [B-02] Final Takeaway Now that you know all about the benefits of using an EMI calculator for personal loan, you must get hold of an app or a website that offers this tool. It would be best to use this tool to compare multiple lenders and their offers to make a better decision. If you want the best offers on your loan, visit the Piramal Finance website. They offer a host of other loans to help you meet your needs.

08-11-2023

Personal Loan

Best Advantages Of Applying For Personal Loan Online

The old saying that life is full of surprises is not nonsense. Life can be unpredictable and toss you a curveball at any time. Though it’s preferable to expect such problems in advance, this isn’t always possible. However, unanticipated costs can occur at any time. Hence, paying for them is not always possible if you also have to meet other, more vital obligations. Not only that, but unplanned costs can arise at any time, not only in times of crisis. A cash shortage can make it difficult to fulfil sudden desires, such as buying a commodity. A personal loan can help with any of these situations and more besides. Personal loans are the best and can help you meet various monetary issues. In this article, we will discuss the benefits of applying for a personal loan online. [B-01] What is a personal loan? Personal loans are unsecured forms of credit that you can use for any purpose. You don’t need to incur any expenses to qualify for a personal loan. You can use a house loan to finance a home, a car loan to finance a vehicle, and a student loan to cover educational fees. Still, you can put a personal loan toward anything you see fit. These include vacations, gadget purchases, debt reduction, house improvements, and small business funding. The lender cannot control where and how you spend the money. Furthermore, since personal loans are unsecured, no collateral is required to apply. Getting a personal loan online has many advantages. 5 advantages of applying for a personal loan online They provide helpful interest rates and extended terms for payment. Suppose you have a good credit history and borrow a modest amount. In that case, you may qualify for a low-interest rate on a personal loan. Plus, you have little to fear if you are financially secure and have an excellent credit score. Due to the low interest rate you can get, it won’t be hard to fit the loan into your budget. Omitting this step is helpful to get the money you need in a pinch or pursue your goals without taking on excessive debt. They don’t need any security or collateral. When seeking a loan, you may need to provide collateral. It is an asset of value that you can use to reassure the lender that you will repay it. The lender can rest easy with this guarantee. The creditor might sell the collateral to recoup their losses if you do not repay the loan. Collateral is used in many sorts of loans to offset the associated risk. One of the best things about getting a loan online is that you don’t have to put up any collateral. You can receive a personal loan online without putting up any collateral for a large sum, up to Rs 30 lakh. Personal loans are available for most people. Therefore, lenders waive off all collateral requirements. Offering a capital asset as collateral to a lender might be challenging. This is true for the younger generations. You might not have a lot of money or assets while you’re young. But this need not interfere with your ability to meet your financial obligations. A personal loan can provide you with a large sum of money with little collateral. Hence, we allow you to take care of your financial demands. They are instant and trouble-free. One can save a lot of time and trouble by applying for a personal loan. You can apply for a personal loan online from the comfort of your own home. Moreover, you will receive the money within a few hours to a few days. Nowadays, borrowers can get a personal loan almost instantly. You must provide documents verifying your identity and residence to apply for a loan. The lender will check these and your credit score to ensure their accuracy. If your loan gets approved, the lender will put the funds into your account. Getting things done is a breeze and takes very little time. This eliminates the need for repeated back-and-forth travel. The speedy services provided by lenders help borrowers. They allow borrowers to focus on other aspects of their lives. That, too, while still having easy access to the finances they need. A personal loan removes the problem of standing in lines. There is no need for you to be there in person. This feature is a lifesaver when you’re in a bind and need cash quickly. They are simple to get when desired. The paperwork for a personal loan is very light. Approval is determined solely by your credit rating and payment history. With a high credit score, you can easily borrow a large sum of money. A personal loan is far easier to get than a business loan, which requires extensive paperwork. Moreover, it also requires an investigation into your company’s finances and prospects. Thus, you can apply for a personal loan online and get it approved easily. They have a wide range of applications. Individuals can borrow up to Rs. 30 lakh with a personal loan. Hence, this type of financing is flexible enough to meet a wide range of budgetary needs. You may use them to get a new phone or fix your house. Due to their rapid funding, you can also use them for urgent healthcare expenses. Personal loans’ adaptability and ease of usage make them suitable for various situations. Furthermore, personal loan applications do not need disclosure of the loan’s intended use. That means you can divide the funds however you see fit. For example, you could use some of it toward tuition for a new language. And use the rest to fund your upcoming vacation. The decision is up to you without any input from the lending company. [B-02] Conclusion A personal loan is among the best options currently available for immediate funding. That’s because online loans like personal loans offer many benefits. But no matter the urgency, you can use a personal loan whenever possible. When you apply for a personal loan online, you make comparing loan offers and picking the right one easy. An EMI calculator is an online perk that helps you make informed loan decisions. You can do all this without leaving your house or workplace.

08-11-2023

Guide

Gold ETF vs Sovereign Gold Bond vs Physical Gold

Are you planning to buy gold? Do you have trouble finding something in which to invest? You are confused between gold ETFs, sovereign gold bonds, and physical gold? So now, in this article, you will get all the information about what gold ETFs are. What are sovereign gold bonds? Whatical gold? and the difference between a gold ETF, a sovereign gold bond, and physical gold that you should know. [B-01] What are gold ETFs? Gold ETFs track US gold prices. These passive funds track gold prices by buying a basket of bullion. Like other gold ETFs, investors can buy through a Demat account. One gold ETF is worth one gram. The Bombay Stock Exchange and the National Stock Exchange trade exchange-traded funds (ETFs) like this. Gold exchange-traded funds (gold ETFs) are the only way to profit from gold’s market spread. Gold exchange-traded funds (Gold ETFs) let investors sell their shares at the domestic gold price. What are sovereign gold bonds? Gold bonds issued by a sovereign nation. As a liquid investment option, sovereign gold bonds can replace the need to buy real gold. Bonds are a type of debt security that pays their holders interest and promises to return the principal when the bond matures. The Reserve Bank of India (RBI) is responsible for issuing Indian government sovereign gold bonds (SGB). Investors must pay the issue price in cash and may request a cash redemption of their bonds at maturity. Interest is paid regularly, and investors are repaid based on the bond’s value and the price of gold at the time of repayment. Sovereign gold bonds can be purchased in increments of one gram up to four kilos. Sovereign gold bonds also have a maturity of 8 years and pay interest at a rate of 2.50% per year, compounded every six months. What is physical gold? Physically buying gold has always been the best way to get the metal, whether you want it for yourself or as an investment. Physical gold is the underlying asset for both physical gold exchange-traded funds and sovereign gold bonds in India. This sets the price of gold in the country. As the price of gold gradually climbs over time, investors around the world view it as a valuable asset that may be used as a hedge against the risk of loss in other investments. A big benefit of owning physical gold is that you can get a gold loan with low interest rates. Lenders can successfully take out gold loans with physical gold pledges as collateral. The loan amount and interest rate for a gold loan are both determined by the total value of the gold pledged as collateral. Lenders will store the borrowers’ gold in a secure location during the loan term and return it to them after the loan is paid in full. The most direct way to get gold is through physical gold. Bullion is the name for large amounts of gold, which can be made into bars or coins. Gold bullion is worth more because of how much there is and how pure it is than because of its face value. Even if a gold coin has a face value, its value on the market is based on how much fine gold it contains. Gold ETF vs. sovereign gold bond vs. physical gold Unlike sovereign gold bonds, which may be purchased and sold around the clock, exchange-traded gold ETFs and SGB are only available for investment between the hours of 9 a.m. and 3:30 p.m. Because of this, liquidity is the key distinction. SGBs have a 5-year lock-in term and a significant transaction cost if sold before maturity. In contrast, sovereign gold bonds are not subject to any such lock-in and might be sold the very next day if desired. In exchange for Sovereign Gold Bonds, you receive the equivalent monetary value of gold stored in a secure facility. In contrast to SGBs, sovereign gold bonds come with insurance that covers the entire value of the investment. Besides the one-time GST charge of 3%, there are no further fees associated with purchasing sovereign gold bonds. The annual expenses of a gold ETF are typically between 0.5 and 1%. Contrary to gold ETFs and SGB, purchasing digital gold does not necessitate a Demat account. The purity and security of physical gold in its original form are often questioned. The lack of oversight is a weakness of sovereign gold bonds. Investors in exchange-traded gold funds and gold mutual funds are exposed to market volatility. There is a small possibility of default on sovereign gold bonds due to a change in government policy. Gold in its various forms (physical, digital, gold ETF, and mutual fund), is the most liquid investment option because it can be bought and sold at any time. However, sovereign gold bonds are locked up for five years and are consequently less liquid. [B-02] Summing-up The purpose of this article is to give a comprehensive examination of the differences between gold ETF, sovereign gold bonds, and physical gold. You’ll need to be a financial whiz if you want to pay off your loan without going broke. Borrow only what you know you can afford to repay and work hard to pay off your mortgage and other debts as soon as possible. Your other major financial goals should not have to take a back seat if you use your own money to buy gold, and you should have enough cash left over after making the down payment. Visit Piramal Finance for even more in-depth, educational articles about money.

08-11-2023

Home Loan

6 Reasons Why Home Loans are Good for Women

Many people would rather own their own home than rent one. This transformation is possible through various money-lending institutions, like banks. A home loan, called a mortgage, is a sum obtained by an individual. It can be repaid over time in convenient monthly instalments. A home loan application contains the eligibility criteria and interest rates. It also includes down payments and associated EMIs. With the rise in real estate prices, home loans for women can help them realize their dream of purchasing a home. The rising cost of real estate has increased the number of home loan applications. [B-01] Various Types of Home Loans New advancements in the financial sector have led to evolving trends in the housing loan domain. A major advancement in this sphere includes the evolution of the different kinds of housing loans. Here are some popular home loan options that you can consider: Basic Mortgage This is the most common type of loan that permits you to borrow money from the lender to buy a property of your choice. After making the transaction, you can then pay back the loan to the lender in equal monthly payments. The lender may approve a home loan for up to 80%–90% of the cost of the property. Loan for Home Construction Another type of home loan available in recent times is the loan for home construction. You should consider this home loan option if you already own land and want to build your dream home. A home construction loan gets disbursed in installments. It depends on the construction progress. In contrast, in a standard home loan, the lender makes a lump sum payment of the loan amount. This type of loan has an approved amount determined by the estimated cost of the project. Home Improvement Loan A home expansion or improvement loan is one of the most popular kinds of house loans. A home expansion loan can be helpful if you currently own a house but wish to add a room or a floor to it. An existing home can get renovated with a home improvement or renovation loan. Millions of rupees might get spent on a home addition or refurbishment. These loans ensure that you will be able to grow or improve even if you need to save more money. Six Reasons Why Availing of a Home Loan Application is Viable For Women Lower interest rates Lenders believe that women are more trustworthy borrowers than men. They give women unique interest rates on house loans. The main aim is to encourage them to invest in various assets. This makes borrowing money and paying back the principal very affordable for them. The subsidized rate may be 0.05 to 0.1% lower, but it would affect the EMI amount. Specific and simple eligibility criteria Women can obtain a home loan ranging from Rs. 30 lakh to Rs. 3.5 crore to purchase the home of their dreams. To entice female borrowers, more and more lenders are tightening their restrictions. The specific eligibility requirements make it simpler to apply for a house loan. Any woman between the ages of 23 and 58 with at least three years of work experience can apply for a mortgage. This flexibility in age criteria should motivate more women to opt for a housing loan. Extension of repayment terms in home loan applications Given that a home loan can be repaid over up to 25 years, this allows customers to repay the amount via cheaper EMIs. Additionally, there are no fees associated with partial prepayments or foreclosures. This is a major relief for women who are seeking a home loan. Tax breaks and reduced stamp duty The stamp duty assessed is 1% to 2% less for real estate registered in a woman’s name than for a male borrower. With tax deductions, a woman borrower can save a sizable sum. On interest repayment, an amount between Rs. 1.5 and Rs. 2 lakhs can be saved. Loan benefits from being a co-borrower Women co-borrowers are also eligible to apply for loans. While borrowers have a greater and better likelihood of getting loans if they have a high income, the participation of a co-borrower can help equalize the burden of loan repayment. Benefits of different housing loan schemes Co-ownership is necessary under the Pradhan Mantri Awas Yojana (PMAY) house loan program. The PMAY program also provides an interest subsidy of up to Rs. 2.67 lakh. It gives preference to applicants who are women. People from disadvantaged groups and Low-Income Groups (LIGs) who want property ownership can also enjoy the benefits of this scheme. Widowed or single women can gain a lot by applying under the PMAY program. Prerequisites for Women’s Home Loan Applications If they meet the eligibility standards, women between the ages of 23 and 58 can apply for a home loan. Before beginning the home loan application process, you should speak with the lender. This is because the eligibility criteria can differ between lenders. A salaried employee or self-employed person Yearly income as per the lender’s terms and conditions A credit score of 700 or higher A rented home where the applicant has lived for at least a year Documents Required for Women’s Home Loan Applications The following is the list of required documentation for women’s home loan applications: Identity Proof: PAN, Aadhar, driver’s license, passport, voter ID, etc. Address Verification: Aadhar Card, Ration Card, or Recent Utility Bill is required Income Documents: W-2s, bank statements, and ITRs Two passport-size photos The paperwork listed above must be sent with the completed home loan application. The procedure of approving a home loan application and disbursement can take up to 7 days. [B-02] Conclusion Home loans for women are currently in demand due to their versatility and many other benefits. For instance, female borrowers have much lower default rates. As a result, lenders give female applicants for home loans priority. Moreover, home loan applications will get approved with more significant sums. By availing of the offerings of various financial firms, it is now possible for women to own their homes. Together, these characteristics make home financing more convenient and affordable for women. Check out Piramal Finance for similar blogs that can help you clear any doubts about home loan applications. You may also take a look at the products and services they offer.

08-11-2023