More articles for you

Your one stop place for everything related to finance and lending

Personal Loan

6 Reasons to Get an Instant Personal Loan From Piramal Finance This Diwali

As Diwali approaches, events and celebrations are just around the corner. Some of you might have had the chance to save for the special day in advance. But others might have some last-minute expenses to take care of. Personal loans can take care of such emergent costs and expenses. This way, you can manage all events smoothly. Getting a personal loan is a hassle-free process as it requires minimal paperwork. Also, there’s no trouble with assets or security. A loan from an authentic and reliable financial institution will go a long way in helping you manage your finances. There are thousands of lenders and banks on the market. This makes selecting the best option quite hard. This article will discuss the benefits of getting personal loans from Piramal Finance. So without further ado, let’s dive into the details. [B-01] Personal Loans: How to Identify The Best One For You? Personal loans are convenient and quicker to avail. But you must go through these tips before you select a lender. Compare interest rates When you go to a bank, they will try their best to make you believe they offer the lowest interest rates. No matter how much they try to convince you, it would be best if you did your research. For example, if a bank offers you a 14% interest rate, you might think this is a great deal for you. But, you must compare the interest charges with other available options in the market. Contact lending institutions for their offers. Also, check various rates on the official websites of banks or lenders. Otherwise, you can refer to credible financial sources for rate comparisons. Check loan charges or fees Getting the right rate for an instant loan is vital. But one must also check the other fees charged by the lender. Some of the standard fees or charges for personal loans are: Processing fees Penalties for a late payment Charges to cancel the loan Charges for a bounced cheque Delayed payment fees Service tax Generally, banks charge a processing fee of 1% to 3% on personal loans. Still, researching can help you find a lender that charges less than the standard market rate. Why Choose Piramal Finance to Get Personal Loans This Diwali Piramal Finance is one of the leading housing banking firms. Here are six great reasons why you should get personal loans from them. No Pre-Payment or Foreclosure Charges Pre-payment or foreclosure is a vital feature to look for. It is one of the best ways to get out of paying those extra charges with every installment. Sometimes you must pay an extra fee to prepay the entire loan sum. It might demotivate you to repay your loan before the term ends. So it is always better to opt for a financial institute that does not charge fees for repaying the loan early. This way, you can save all the money spent on interest charges and end your loan as soon as possible. Avail of Personal Loans Starting From Rs. 1 Lakh Most of you take out loans because of a crisis. Others might need them when someone wants to avoid giving an asset showcase to the bank or lender. Since these loans help relieve urgent expenses, it makes sense to borrow only what you need. Hence, you must get an instant personal loan of lower sums. You can ensure you are not getting into more debt than you should and can repay the loan on time, without any hassle. Minimal Paperwork Needed Piramal Finance requires minimal paperwork. It enables you to avail yourself of enough funds without spending time worrying about paperwork. This Diwali can be grand even without a salaried job or a profit-making business. And your Diwali celebrations do not have to wait. Provide identity and address proof for your personal loan. Once your papers are verified, you will have the entire loan sum. Instant Release of the Loan Sum Since Diwali is near, you might have plans to buy exclusive gifts for your loved ones. However, exclusivity in products comes at a high cost. The issue with purchasing one-of-a-kind gifts is that they can go out of stock at any time. Luckily, personal loans at Piramal Finance disburse quickly. Quick disbursals also help in vital times. For example, your loved one is battling accident injuries and needs quick treatment. Then, you need a banking firm that can give loans quickly. Flexible Repayment Tenure Understanding the repayment flexibility of your loan is vital. The time flexibility enables you to pay your loan in small sums. This is usually done in the form of EMIs. At Piramal Finance, personal loans have a tenure of 12 to 60 months. So, you can decide the repayment period of your loan as per your preferences. During the term of your loan, you can make the agreed-upon instalments with interest. Otherwise, repay the loan early according to your financial capacity. Combine Your Income to Avail of a Higher Loan sum You may need a hefty loan sum. But sometimes, more than one source of income is vital. You can then combine the many wage sources to avail yourself of a larger loan. Piramal gives you the perk of pooling wages from different sources. You can show the combined salary and opt for a higher loan sum. This perk can help you get enough funds for an investment opportunity. Also, you can even afford more vital costs, like buying a car this Diwali. [B-02] Conclusion Everyone has their way of celebrating Diwali. But one common thing is the joy of giving your loved ones something exclusive. Personal loans are the perfect choice for handling your costs this holiday season. Also, you will have ample funds without disturbing your finances. With Piramal Finance’s personal loans, you can get low rates. With the extra perk of time flexibility, you can decide how much time you need to clear your loan. There are several other perks that you can take advantage of. Piramal Finance has more personal loan blogs that you must look at. You may also take a look at the many financial products and services they offer.

08-11-2023

Business Loan

All You Need to Know about Different Types of Working Capital Loans in India and How to Apply for It

The cash that a company uses daily is known as working capital. It is the sum of money needed for a firm’s ongoing operations. A firm may not be able to work properly without working capital finance. So, firms may think about taking out loans to cover this need. Working capital loans are those that are taken out to fund a company’s daily operations. A working capital loan is only used to fund daily firm operations. It is not taken out to fund a firm’s growth. This shows that it pays for both the costs of existing capital and the costs of human resources. There are two kinds of loans: secured and unsecured. [B-01] Types of Working Capital Loans There are many types of working capital loans. These are given below: Short Term Loans The short-term loan has a fixed interest rate and payment plan. This loan is secured. You can also get this loan without any collateral. It will depend on the validity of your credit history and your relationship with the lender. Bank overdraft facility or credit line This is the working capital loan with the most flexibility. The lender gives the person access to use a specific amount. The person must take care not to spend more money than the amount of approved cash. Also, a person only pays interest on the amount taken not the approved amount. Trade Credit This working capital loan is funded by trade credit from current suppliers. When you make a big order from a supplier, they give you a trade credit. But, the supplier will only approve this loan after carefully checking your earnings and credit history. Accounts Receivables You can always apply for a working capital loan using your valid sales orders or account receivables. It is perfect if your firm is short on cash to meet a sales order. These loans are only secured if your firm has a good image and a history of making on-time debt payments. Equity funding through investors or personal funds This is the most productive working capital loan. You can get through home equity loans or expenses made by family members or friends. Start-up businesses or firms that lack a long credit history benefit the most. Invoice factoring In this arrangement, a company sells all or a portion of its late payments to a third party. The value used for this is less than the accounts’ initial value. Factoring service is the name of the third party. By buying the bills and getting money from the debtors, it offers funds. Letter of Credit A lender may sell a letter of credit to the buyer. The letter of credit will then be sent to the seller by the buyer. The lender will repay the seller for the order’s cost after the sender sends the order. The buyer then pays the bank the specified amount at the given time. Bank Guarantee It is a working capital loan without a fund basis. The seller or buyer gets a bank guarantee to cover the possible risk related to the failure to perform under a specific agreement. It could be anything, including cash or a promise to perform services. It can only be struck down by the holder if the other party fails to perform. The bank requests some security or levies a commission. Working Capital Ratio A working capital ratio is a number that is used to assess a company’s financial standing. To indicate that the company is doing well, the working capital ratio must ideally be between 1.2 and 2.0. When a company’s working capital ratio is 1.2, it means it has enough liquid assets to pay its debts and maintain day-to-day operations. Any ratio higher than 2.0 denotes poor capital investment on the part of the company. To calculate the working capital ratio, divide the current assets by the current liabilities, i.e. Working capital ratio = Current Assets / Current Liabilities Eligibility Criteria for Working Capital Loans The criteria differ from one lender to the other but some basic requirements for getting working capital finance are listed below: You must be at least 25 years old. You must have at least three years of business experience Information on the most recent income tax returns is needed The firm should not be blacklisted. Your company’s location should not be on a negative location list. Trusts, small businesses, and non-profit organisations are not eligible. You may also be asked to provide more data to prove your business. Documents Needed to Apply for a Working Capital Loan A working capital loan has minimal documentation requirements. For a list of the documents you should always have on hand, see the list below: Passport-size photo KYC records Relevant financial records Business proof The most recent bank statement Bank records for the previous 12 months Benefits of Working Capital Loans There are many benefits of working capital loans listed below: No need for any security You might be qualified for unsecured working capital loans if you have a high credit score. You don’t have to put your inventory, business or any other valuables to secure the loan. But, the loan must be paid back on time. Flexibility and Speed One of the great advantages of working capital loans is that qualified firms can easily get short-term loans. It includes inventory loans, bank lines of credit, accounts receivable and credit lines, in a shorter amount of time. The loans tend to be flexible with fair interest rates and paying-back plans. It helps firms to smooth out their cash flow during seasonal fluctuations. Using your wisdom when spending money Usually, there are few or no limits on the working capital loan. There is one thing that the lender demands. It is that you should use the money to boost sales or continue running your business as usual. [B-02] Conclusion A company’s lifeblood is its working capital. A strong working capital results in yearly market expansion. Any improper handling of working capital results in losses and the company’s decline. It might be caused by a staff member’s or a company’s lack of liquidity or attention. Its only solution is to get a working capital loan and pay ongoing costs. You can get a working capital loan to carry out regular business operations, not to expand your firm. In other words, it pays for the costs of both current capital and human resources. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Home Loan

All You Need to Know About Top-Up Loans in India

The principal amount of a loan is fixed when you submit your application. However, sometimes unexpected expenses can occur. And the loan may no longer be enough. In such cases, you often consider your options. Many take out an additional loan to pay for the increased expenses. However, is this the only option? You can also take out a top-up loan. This additional amount can supplement your expenses. Your eligibility is checked before receiving a top-up loan. Not all plans are eligible for top-up loans. This article discusses home loan eligibility and advantages and how to get a top-up loan. [B-01] What is a top-up loan? If you already have a home loan, you can apply for a top-up loan from the same bank or lender over the existing loan amount. This top-up loan gives you additional funds in the same plan. A top-up loan can be used to cover additional expenses for your home. Banks and financial institutions provide this service to existing clients. For example, you can request a top-up loan if you already have a home loan with a lender. You will only be eligible if you fulfil the home loan eligibility criteria. The tenure or interest rate of the original home loan will change once you purchase a top-up. These loans offer an excellent chance to overcome any financial barriers. However, to avail of these loans, you should check your eligibility. Home loan eligibility criteria Home loan eligibility conditions must be met when applying for a top-up loan. Home loan eligibility criteria used by most lenders are as follows: A top-up loan is only available to those who have a personal loan with the provider. The loan can be taken only after a defined period has passed and you have returned a part of the loan. Both these criteria are specific to the lender. You are eligible only if you have a good repayment history with no late instalments or missing EMI payments. You should also be able to repay your loans. This means you need to show your income is enough to pay back the additional EMI. You need a high CIBIL score (a CIBIL score of 650-750). The score shows your reliability. What documentation do you need to prove your eligibility? Because you already have a personal loan (connection) with the institution, you need little or no paperwork to get a top-up loan. Some lenders now offer pre-approved rapid top-up personal loans to current loan clients. However, you may need to give some documents to prove your home loan eligibility. Some will ask for documents to prove the following; Address and identity proof Income proof Property documents Proof of employment How can I get a top-up loan? The application process for a top-up loan varies between lenders. You can apply for a top-up loan if you have completed six months of loan repayment. However, some require you to pay 12 instalments before requesting a top-up. A key point to remember is you need to make payments on time. You have to complete and submit an application form for a top-up loan. You should submit salary receipts and the most recent financial records with the application. Once approved, the amount is credited into the account within 2-3 days. Benefits of a top-up loan There are no financial limits. A top-up loan amount can be used for any purpose relating to your current property. It can be used to purchase a parking place, repair the property, build furniture, or other personal expenses. The procedure is simple and fast. You will receive the amount within 2-3 days after verification is complete. Verification is a simple process because you are an existing customer. The interest rates are low. Top-up loans are a profitable option to obtain funds since they offer lower interest rates than personal loans. The interest rates vary from one lender to another. However, this is often between 11 and 13%. In contrast, a personal loan can have an interest rate of up to 22%. There is no mortgage. A current home loan client may apply for a top-up loan without providing extra assets to the lending company. What do you need to know before applying for a top-up loan? Top-up loans can be used for many reasons. They can be taken out on personal loans, home loans, education loans, and others. The home loan eligibility criteria for a top-up home loan are easy to meet. The application process is simpler if you are consistent in paying previous EMI. If you adhere to the home loan eligibility criteria, some lenders may offer you as much as INR 1 crore with a ten-year tenure. You can apply for top-up loans online. The process is simple and fast. The verification is also done online so you need not go anywhere. Loan terms differ from one lender to another. Read all documents thoroughly. Some lenders offer no-documentation top-up loans. You will have to check individually with the lender. [B-02] Conclusion As discussed, a top-up loan is an extra loan added to the current personal loan or a house loan. If you are paying your loan and have carefully paid your instalments, you may get a top-up loan. Most Indian lenders provide top-up loans at the same interest rate as your current loan, with simple paperwork and a fast approval procedure. It may be simpler to consolidate your debt by taking a top-up loan if you have multiple home loans. If you don’t know where to start, reach out to an expert. Piramal Finance provides competitive interest rates, longer loan terms, and round-the-clock customer service. Reach out to the experts now to understand your top-up home loan eligibility.

08-11-2023

Personal Loan

Get Personal Loan For Self Employed Without ITR

Loans serve a wide range of purposes, from helping you fund your business to financing a marriage. For funding a business venture, there are multiple options, like business loans, MSME loans, various government schemes, etc. Likewise, for covering personal needs, a personal loan is the most widely chosen option among people. It is an unsecured form of loan that doesn’t require any collateral or security deposit and can be sanctioned to an individual best on the credentials. Personal loans can only be given to salaried individuals and self-employed individuals. However, getting a personal loan for a self-employed person without an ITR is not at all an easy job. Not all banks provide this privilege to all borrowers, and even if some do, there are special things you should consider. Is it possible for a self-employed individual to get a personal loan without ITR? The objective answer to this question is yes, but to get an elaborate answer, you have to glance through the article. This article is all about the process through which a self-employed individual can get a personal loan without ITR. [B-01] Can a self-employed individual apply for a personal loan without ITR? Well, the answer is yes, but there are certain additional requirements that one needs to look after. But before that, you have to understand the importance of ITR in a personal loan. An ITR acts as income proof, showing your income earned and the tax you paid on it in a financial year. For getting any type of loan, an ITR is a mandatory document that needs to be completed. Since the inception of the personal loan, it has always been easy for salaried individuals to apply for a loan. For self-employed people, getting a personal loan has been comparatively difficult as they have to go through lengthy paperwork and provide additional documents while applying. Since self-employed persons do not have a regular income, lenders see it as a risk to lend money to these individuals. You cannot obtain the minimum eligibility for a personal loan without an ITR. However, there are still some ways that will help you settle for a good credit line even if you lack ITR. How can self-employed individuals get a personal loan? Here are some points to consider before taking out a personal loan without ITR. Looking for a secured loan: As a personal loan is an unsecured loan, it means that you don’t have to pledge any of your assets to get a loan, provided that you have an ITR. But lenders find it risky to give loans to self-employed individuals who don’t have an ITR. However, to increase their trust, you can opt for a secured loan, which means you keep an asset as collateral and use it as a means to get the loan. By pledging your assets (property, stocks, etc.), you minimise the risk of defaulting and owing the lenders. Showing another proof of income: Instead of showing your ITR to the bank, you can replace it with your bank statement, which will show your credits, rental income, parental income, income from investments, etc. These are good substitutes for the ITR, and your lender might not find it difficult to disburse the loan amount. Improving your credit score: Your credit score plays a significant role in determining your eligibility and credibility for the loan. A good credit score is always a plus because it helps you get a larger loan at a lower rate of interest. A credit score of 750 or more is considered idle for most loans. You can improve your credit score by paying your bills when they are due, keeping your credit card balance low, paying your EMIs regularly, etc. Negotiations: Negotiation plays a decent role in deciding whether the lender trusts you regarding the loan repayment or not. Good negotiation skills will not only help you get a personal loan without ITR but will also help you establish a good relationship with the lender. For example, if you have a long-standing relationship with your bank, you have a better chance of obtaining a personal loan even if you lack an ITR. Clearing your dues on time: A good track record of your previous debts is a good way to make the lender believe that you are going to repay on time. If you have unpaid debts from the past, you should pay them right away. You can use that as a document when applying for a personal loan. For instance, if you have a credit card, you can use it to pay your bills, and you can show that as a record while availing of a loan. What are some things to keep in mind while getting a personal loan without ITR? Apart from covering the above-mentioned requirements, you should keep some things in mind. Not every lender allows this. You might balance it out with some other substitute documents and eligibility, but an ITR still plays an important role in showing your repayment eligibility. So, not every lender will be willing to take that risk. You might not get additional benefits. Even if you are sanctioned for the personal loan, you still pose some risk to the lender. As a result, you might be prevented from receiving certain perks that other borrowers with ITR will receive. [B-02] In conclusion For getting a personal loan without ITR, you need some additional documents and other substitute documents in place of income proof. Besides that, you have to focus on increasing your CIBIL score, clearing your debt, and aiming for a clean track record to minimize the risk you pose to the lenders regarding the repayment of the loan. If all that doesn’t work, you can choose a secured option, where you use collateral to get a personal loan. A secured loan is a better option to go with as it also prevents you from paying a higher interest rate. If you have more queries regarding personal loans for self-employed and salaried individuals and you want to know more about them, you should opt for services from Piramal Finance.

08-11-2023

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