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Easy Steps on How to Maintain a Good Credit Score

Your credit history shows how responsibly you have managed the borrowed money so far and if you have repaid your credit bills on time. The CIBIL authorities summarize your credit history in a three-digit number, which is known as a credit score. Your credit score shows your lenders how financially reliable you are. So, maintaining a high enough credit score is a necessity if you want to secure a low-interest loan in the future. Let’s see some easy methods you must follow to maintain a good credit score. [B-01] Avoid Late Payments Never missing a credit repayment is the best way to maintain a good credit score. When you miss paying one or more loan EMIs or forget to pay your credit card bills, it impacts your credit report negatively. And if you miss too many credit repayments, CIBIL authorities will mark you as financially unreliable, dropping your CIBIL score. To avoid late payments, you can use a banking or credit automation app that will automatically repay your EMIs and credit card bills from your main bank account. You can even set a calendar reminder so you never forget your credit repayment dates. Maintain a Good Credit Utilization Ratio The general rule of thumb is to always maintain your credit utilization ratio below 30% to avoid a drop in your credit score. It means that you should never spend more than 30% of the total credit limit on your credit card. Once your credit utilization ratio reaches the 30% mark, you should pay some of your credit card bills. It will not only help you maintain a good CIBIL score but will actually increase it. Review Your CIBIL Report Regularly Your CIBIL report directly influences your credit score. Therefore, if the CIBIL authorities make any mistake in reporting your credit activities, it can drastically lower your CIBIL score, even if it’s not your fault. That’s why keeping an eye on your CIBIL report is important. If you see any inconsistencies that might be affecting your CIBIL score negatively, you must report them to the CIBIL authorities immediately. The authority will investigate your case and adjust your credit score accordingly. Use Credit Mix Too many unsecured personal, business, or education loans can be one of the biggest reasons for the reduction of your credit score, even if you’re repaying the EMIs on time. As these loans don’t involve any collateral, availing of too many of them can be seen as a big financial risk or an irresponsible financial decision. To maintain a good CIBIL score, you mix your credit lines with secured loans like home or property loans, which will balance the weight of the unsecured loans. After all, as long as you meet your repayment obligations, a healthy mix of credit is considered beneficial. Never Exhaust the Credit Card Limit You should always avoid exhausting your credit card limit, as doing so too often can negatively influence your credit score. If you keep doing this for a long time, your credit score can experience a significant dip. After all, it means you’re exceeding the 30% credit utilization ratio too often. If there is no way to reduce the cost, you should request that your bank increase your credit limit. As long as you have a good credit and bill repayment history, the bank should accept your request and increase your card’s credit limit. This way, you can avoid exhausting your credit limit and maintain a good credit score. Don’t Cancel Your Old Credit Cards Do you want to cancel your current credit card and have a fresh start? Don’t do it. Canceling an old credit card is never a good decision, as it nullifies all the previous credit card records with the bank. It will negatively impact your overall credit score. You can avoid all this trouble by just not canceling your old credit card. Keep the credit card and renew it. If you want, you can even get a new credit card and use it along with your old one. It will help you maintain a good credit score. Check Your Co-signed Loans Did you ever cosign a loan agreement with another partner? If you did, you should keep checking your cosigned loan’s repayment status. Sometimes, the borrowers might be unable to repay their loan due to a sudden financial emergency or simply forget to repay the EMIs on time. As a co-borrower, these missed payments by other borrowers also reflect in your credit history, dropping your credit score. So, next time, keep an eye on your co-signed loans and take proper measures to maintain a good credit score. Try Availing of at least One Credit Product: If you have never bought any products on EMIs, never taken personal or business loans, or don’t even use a credit card, you will sadly have no credit history or credit score. And without a credit history, you will have difficulty securing a loan for a large amount of money. Even if you secure the loan, you will have to pay a higher interest rate as banks are taking a big risk by lending money to you, an individual with no credit score or financial history. So, try getting at least one credit product, like a secured credit card or a secured loan, to start building your credit history. This way, you can finally receive a credit score after a few months. However, you should repay your credits or EMIs on time to raise your credit score to 750 or more, which is considered a brilliant credit score. [B-02] Final Thoughts Maintaining a credit score of 750 or above is very important if you want to secure loans with low interest rates. Pay your credit card bills on time and maintain a good mix of credit lines. Keep your credit utilization rate below 30% and review your credit report regularly. If you have no credit history, you can apply for a personal loan from Piramal Finance to start building your credit history.
08-11-2023
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Home Loan

Here’s a list of Complete Eligibility Criteria For a Loan Against Your Property

Often one finds oneself in a problematic situation. A cash crunch or starting up a new business can put you in a tricky place. Even funding your children’s education can make you need funds. At times like these, you might want to get a loan. One of the most popular kinds of loans is a loan against property. In such a case, one takes a loan by keeping their property as collateral. Collateral here means security to the lender. It gives the lender a sense of protection. The property would remain as collateral until the whole loan is repaid. This makes taking and giving out loans easier and safer. [B-01] What is meant by Loan Against Property? In simple words, a loan against property means a loan secured by any property that comes under your ownership. You can then repay the loan in monthly instalments. These instalments are called EMIs (Equated Monthly Installments). The amount of EMIs is agreed upon for a fixed tenure. The rate of interest is also fixed when you enter the loan contract. The property given as collateral can be any house, land or commercial premises that you own. The value of your property determines the loan amount you can borrow. Where can Loan Against Property be Used? A loan against property can be used in a variety of situations. With such a loan you can take a loan of a big amount. The amount of the loan depends upon the value of your property. The major purposes you can take up such a loan are as follows: To fund higher education programs. Growth and expansion of business. Consolidation of high-interest debts. Renovation expenses of personal or commercial premises. To fund a wedding. To finance the medical expenses of a family member. What is the process for getting a Loan Against Property? After applying for a Loan Against Property, the lender will get your property assessed. This could be done directly by the lender. The lender might also get an expert valuer involved. The assessment involves many factors like age of property, location, condition, and ownership verification. The value arrived at could be different than the market value of your property. Also, the loan offered to you would not be for the whole amount of the valuation. Usually, lenders provide loans up to a certain percentage of the value of the property. This is called Loan-To-Value (LTV). This can be around 70-80% of the value. To illustrate, the value ascertained is Rs. 80 lakhs. The lender gives out an LTV of 75%. You get a loan of Rs. 60 lakhs. Advantages of a Loan Against Property There are several benefits derived from a loan against property. Especially if the loan is taken through a renowned brand like Piramal Finance. Some of them are stated below. Simple eligibility needs Minimal documentation needed Low loan rates Transparent processing with no additional fees Up to 15 years of additional tenure Quick sanctions and smooth processes What are the Eligibility Criteria for Loan Against Property? The usual loan against property eligibility criteria for a loan against property is given below: For a Salaried Employee Age Requirement Minimum Age: 21 years Maximum Age:A government employee – 70 yrs Others – 62 yrs Employment Type Individuals working in a: Government institution Public Sector Unit Private Firm Multi-National Companies Partnership firm / Limited Liability Partnership Organisations run by Trusts, NGOs or Society Documents Required Income Tax Returns for the last two financial years KYC Document Form 16 Last 6 months and salary slips of Bank Statements Documentation related to property is kept as collateral. For Self-Employed Age Required Minimum Age Requirement – 23 years Maximum Age Requirement – 70 years Type of Employment Professionals: Doctor, CA and Architect. Others: Self Employed Other than Professionals, Business Owners, Partnership Firms’ Partners and Promoter/Directors of private and public limited companies. Documents Required Income Tax Return of the last two years Financials audited by CA KYC Document Form 16 Last six months’ bank statements Documentation related to property is kept as collateral. Tricks to Keep Loan Against Property Interest Rates Low Now that you know the loan against property eligibility criteria, let’s focus on the loan against a property interest rate. You would aim to keep the loan against property interest rates as low as possible. For this you can use the following tricks: Reduce the Principal For unforeseen needs, you might want to borrow a little bit more money than you need. While doing so it is important to avoid going overboard. Larger interest rates may be the outcome of borrowing more money than you are qualified for. The lender may see your application as having a higher chance of default. So keep your loan amount low. Select the Appropriate Interest. Consider carefully whether to choose a fixed or floating interest rate for your loan. The secret to deciding between the two is to make the best predictions about loan rates in the future. Floating-interest loans have no prepayment fees. So you save more money when you choose to make prepayments. Make the Appropriate Property Pledges You want to obtain reduced interest rates and a greater chance of getting your loan approved. This can be done by pledging a high-value home in an expensive region. However, the lender would not provide you with favourable conditions if the property is old, poorly kept, or situated in an undesirable area. Verify Your Eligibility in Advance Making note of your lender’s loan against property eligibility needs will help you avoid application rejection. To ensure a smooth application process, learn about the loan against property paperwork needed after determining your eligibility and have them prepared. [B-02] The Bottom Line So what are you waiting for? Ready your documents. Evaluate your property. Get the best loans out there. To know more about the financial world and how to get the best loans, visit Piramal Finance. Piramal Finance is an Indian financial service. They provide all kinds of loans. They also provide answers to all your loan-related questions. Check out their website for all your finance needs.
08-11-2023
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Gold Loan

Can I Transfer A Gold Loan From My Current Bank To Another Bank?

India is well-known for its custom of handing down gold ornaments and jewellery from generation to generation. Therefore, using gold as security to get loans is the most practical borrowing option for the majority of the country’s population. However, individuals often request gold loans without first doing a thorough investigation. Therefore, they wind up with a gold loan business that does not provide them with the greatest possible bargain. If you are in a similar scenario, a gold loan transfer may save you money on EMIs while also getting you a better return for your gold. [B-01] What exactly is a gold loan? A gold loan, also called a LAG (loan against gold), is a type of secured loan taken from a creditor in return for gold goods. Lenders will usually provide you with a loan based on a percentage of the gold’s value. You can pay it back in monthly instalments and get your gold items back. Like similar secured loans, like a home or car loan, gold loans have no restrictions on how they can be used. So, if you need to pay for a marriage, a vacation, or your kids’ education, it is a terrific option to fulfil an unexpected financial need. Furthermore, several commercial and nationalised banks, as well as NBFCs, provide gold loans at low interest rates. What exactly is a gold loan transfer? When you do a gold loan transfer to the other bank from one bank, it is known as a gold loan transfer. Many consumers move their gold loans because they are dissatisfied with their current lender’s customer service or because the loan amount is less than the gold’s worth. One of the most frequent reasons consumers switch loan amounts is because their present lender charges high loan instalments. Although gold loans have a relatively short repayment time, high interest rates may result in a substantial amount to repay. This means that by simply shifting your money, you may be able to lower your gold loan instalments. When should you think about using a gold loan transfer service? When you need money to get yourself out of a financial problem. Money is easily available for business expansion, education, and other purposes. You’ve already obtained a gold loan and made various instalment payments. You would like a loan with minimal documentation that can be handled quickly. You need a gold loan with a lower interest rate than you currently have. What are the additional benefits of a gold loan transfer? The benefits of transferring a gold loan are: Interest rate cut Many lenders demand higher gold loan EMIs than their rivals. Borrowers may transfer their debts to a lender with a reduced interest rate, making the process of repaying a loan much simpler. Higher rate per gramme Financial institutions provide loans ranging from 75–90% of the gold loan value. Moving the loan to a supplier with a greater loan-to-value (LTV) ratio is an excellent choice if you’re obtaining a lesser value for your gold. Improved Terms A gold loan transfer provides the opportunity to get better loan conditions, such as flexible payback periods and no processing costs. Increased Security and Insurance Options Some borrowers may be unsatisfied with the security supplied by their existing lender for their gold. As a result, a gold loan transfer to the other bank that provides stronger protection, such as insurance policies, may be the best alternative for them. What exactly is the gold loan transfer procedure? To effectively transfer your gold loan sum, follow these steps: Step 1: To begin the gold loan transfer procedure, provide the new lender with your current pledge card. Step 2: After the specifics of the whole transfer procedure have been worked out, you will get a savings analysis report, which you must examine and then approve. Step 3: Complete the verification process after confirmation to finalise the personal gold loan transfer. Step 4: You will be provided with a detailed breakdown of how much in gold loan instalments you need to repay to the previous lender to start the gold transfer to the new lender. Step 5: After you pay the interest, your gold loan will be successfully transferred to the new lender. What gold loan transfer documents are required? Lenders often seek the following papers during gold loan transfers: Completed gold loan application form Identification documentation: It might be an Aadhar card, a PAN card, a passport, a driver’s license, or a voter identification card Proof of address, such as a utility bill, gas bill, most recent water bill, passport, and so on A signature verification Passport-sized photos Balance Transfer Fees for Gold Loans Charges for Transferring Fees Charges for a gold loan transfer to the other bank differ depending on the current and new lenders. These fees are as follows: 1. Pre-closure fees Pre-closure costs, also known as foreclosure charges, are payments made to your current lenders to compensate for the interest lost when you close your loan too early. Each bank has its own foreclosure threshold, which varies from 0% to 1%. 1. Processing Charges Processing fees range from 1% to 5% of the loan amount for banks and NBFCs. 2. Inspection Fees When a financial institution evaluates pledged collateral, it charges a fee. 3. Administrative Fees When you apply for a loan, the lender charges you a non-refundable fee that is applied to the loan amount. [B-02] Conclusion A gold loan transfer to the other bank from one bank could be a smart choice. The procedure is typically fast and easy, and the new loan will have a lower interest rate. Also, the borrower may make use of several real-value services as well as various repayment choices. Gold loans, in general, are useful when you want funds quickly. Not only should you comprehend such items to deal with future needs, but you should also be aware of impending new variations that are safer and efficiently cut the total interest load on the loan. To know more about such types of topics, visit Piramal Finance.
08-11-2023
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Business Loan

Business Loan for Entrepreneurs in India

In many cases, a firm’s profit needs a boost. When a firm finds financial aid at the right time, it may reach its full potential. Such aid is often needed, mainly when your firm is in its early stages or expanding. A business loan for Entrepreneurs is a great source of finance to help your business financially. Young entrepreneurs with unique ideas but little money might benefit from business loans. Entrepreneurs may apply for a business loan to cover their financial needs and then repay the lender. Let us now link you to this topic in more depth in the next part. [B-01] Perks of Business Loans for Entrepreneurs Business loans for entrepreneurs are used to describe loans required for expansion. Sometimes you might confuse yourself with the entrepreneur loan, but these are not the same. Here are the perks of business loans for entrepreneurs: Prompt payment When people request a business loan, banks realise they need the cash as quickly as feasible. As a result, banks provide quick firm financing. A small firm loan may be issued within three days. Your firm can expand without being hampered by a lack of cash. Minimum paperwork required To complete loan forms, banks demand a minimum amount of papers. You won’t have to complete a lot of paperwork to secure a loan from us. Firm financing papers may be submitted online or offline. This, however, depends on your lender. Competitive rates Your business loan rates remain low since financial firms are devoted to aiding small businesses in India. You may seek help with money without having to make hefty payments. Eligibility Criteria of a Business Loan For Entrepreneurs Self-employed persons, proprietors, private limited firms, and partnership firms engaged in manufacturing, trading, or providing services. Annual business revenue of at least Rs. 40 lakhs. People who have worked for the present firm for at least three years and have five years of firm experience. Those whose firm has been profitable over the last two years. The firm’s minimum annual income should be Rs. 1.5 lakhs per year. The applicant must be at least 21 years old when applying for the loan and no older than 65 years old when the loan matures. Papers Needed to Apply For a Business Loan: Firm or people PAN CardA photocopy of any of the following papers as evidence of identity Aadhaar Card Passport Voter ID card PAN Card Driver’s LicenseA photocopy of any of the following papers as evidence of address: Aadhaar Card Passport Voter ID card Driver’s License Bank statements from the last six months After CA Certified/Audited, provide the most recent ITR, income, balance sheet, and profit and loss account computations for the past two years. ITR or Trade license or Sales Tax Certificate as proof of continuation is required. Other required papers include the Sole Proprietorship Declaration and more. How to Obtain a Business Loan as an Entrepreneur? This section will walk you through the steps of obtaining a business loan: Define your loan needs The first and most vital stage is thoroughly defining your firm’s financing needs. It is essential to specify your needs since the bank or lender will base their judgement on whether you need a loan. By clarifying the need, you may guarantee that you are not overstating your requirements. Make a thorough business plan Following the identification of the necessity, the second vital aspect in obtaining a firm loan is developing a firm plan. By reviewing your business plan, lenders may better understand how you intend to spend and distribute the funds. It will also provide a rough idea of how you aim to build your firm. The lender will surely want to know it to guarantee that you can make the repayments on time since failing to do so would result in a loss for the lender. Make sure your strategy is concise yet thorough. You may include the following items in your plan: The reason for your firm’s existence. Use relevant data from your field. Your firm’s previous success. Future objectives for the firm. Prepare Papers When your firm plan is established, the following step is to prepare the papers. Paperwork is one of the most challenging parts of qualifying for a business loan since it entails many complex tax filings, money deals, and other legal processes. Another reason is that the process takes longer to complete since more money is involved, necessitating more papers. Other papers may be required depending on the lender. Yet, the following is a broad list of the papers required: PAN Card Income tax returns & GST returns Partnership Deed or Certificate of Incorporation Your firm account’s bank proof Money proof from the previous three years, including audited balance sheets, audit reports, profit and loss proofs, etc. Money projections for the future Contact the lender Visiting lenders/banks is the penultimate stage in the business loan form process. You can also choose an online business loan to make getting financing easier. To guarantee the best deals, compare the costs and perks of numerous lenders before making contact. Bank loans, for example, may have lower rates but need a longer time to repay. On the other hand, small cooperative banks provide greater lending rates while requiring fewer papers and proofs. Another important question to ask is about the security that lenders need. Finally, if you require a business loan from a lender, you should determine what extra fees and processing expenses are involved. [B-02] Conclusion Acquiring capital is vital for a firm’s growth and progress. Business loans are useful when a firm wants to borrow funds or expand its operations. They may also aid in preserving cash flow during tough times. Business loans help you stay financially secure in a volatile market. Consider all the perks and drawbacks of contacting each lender before deciding on which is best for you. If you want more information about personal loans, check out similar blogs on Piramal Finance and explore their products and services.
08-11-2023
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Calculator

Commercial Loan EMI Calculator – Calculate Your EMI

When you take a commercial loan from your bank or lending institution, you will need to understand the payment schedule. A commercial loan EMI calculator helps you calculate the monthly payments and interest on your loan. You can enter the amount of the loan and the annual interest rate. Then, it calculates your monthly payment, total interest, the total number of payments, etc. This helps you determine whether or not you can realistically afford the loan and enables you to plan your cash flow more effectively. [B-01] What is a loan? A loan is a sum of money you borrow from someone, typically a bank or lending institution. It must be repaid with interest over a predetermined period. Commercial loans provide easy access to capital and lower rates than other types of loans. What is an EMI? An EMI is an acronym for “Equated Monthly Instalment.” When you take a loan, you will have to pay back the borrowed money plus interest on the debt. The total amount is broken down into monthly instalments throughout the repayment period. The more money you borrow, the higher your monthly instalment will be. If you’re not careful and need to understand how much it will cost in terms of interest, it could be a lot more expensive than you originally thought. A commercial loan EMI calculator comes in handy to understand what your monthly instalment might look like based on your yearly income and the type of loan. Factors affecting commercial loan EMIs A large commercial loan can be daunting to handle. To calculate your monthly payments, it is important to understand the various factors that will affect the EMI (equivalent monthly instalments). Principal amount: The principal amount of the loan determines how much you have to pay back every month. If you choose a higher interest rate with a smaller principal amount, your EMIs will also be lower. Interest rate: The interest rate applicable to your commercial property loan would depend on various factors, including your eligibility and credit history. Different banks may offer different interest rates, making it necessary to find one with an EMI that suits your budget and requirements. Duration of the loan: The duration of a commercial property loan would depend on various factors, like your repayment plan and budget. If you want to pay off your commercial property loan in a shorter period, you can choose a home loan with a short tenure. However, keep in mind that it will result in higher EMIs. Alternatively, if you want a long-term repayment plan, opt for long-term loans. Also, make a down payment and take out a mortgage for only part of its value. Monthly or annual rest period: There are two types of rest periods: monthly and annual. The interest is calculated accordingly, leading to decreased EMI payments over time. It depends on how often the interest is compounded. However, with the annual rest period, your monthly payments are capitalized at the end of each year. Fixed instalment/interest percentage: Another thing to consider when calculating your EMI for a commercial property loan is whether you want fixed or variable instalments. Also, consider if you want a fixed or floating interest rate. The floating interest varies according to fluctuations in the market index and the cost of borrowing. Commercial loan EMI calculator A commercial loan EMI calculator is a tool that can help you determine how much you need to pay each month. The calculation is based on the amount of money borrowed and the interest rate. It’s important to consider that this doesn’t include other fees, such as application and processing fees, which your lender may charge. The commercial loan EMI calculator will ask for information about some things like: your monthly income, the duration of your repayment period, the amount of money you’re borrowing, and the interest rate. The calculator works on the mathematical formula (EMI= PR (1+R)^D /((1+R)^D-1)) where P stands for Principal or amount borrowed, D is the duration in months of your repayment period, R represents the annual interest rate, and EMI is the Equated Monthly Instalment. An example of this would be if a businessman took out a loan of INR 4,50,000 for a tenure of 36 months, at 16% interest, their EMI would be INR 15,821. How does a commercial loan EMI calculator work? Select the loan amount, interest rate, and tenure from the drop-down menus and click on “calculate.” The commercial loan EMI calculator will show you the details of your repayment schedule, including EMIs, principal paid, and total interest paid. You can also see a graphical representation of your monthly repayments using the slider bars below the repayment schedule table. Benefits of a Commercial Loan EMI Calculator A commercial loan is used to purchase a business or other assets. This commercial loan EMI calculator helps you calculate your monthly payments. Some of the benefits of a commercial loan EMI calculator are: The ability to easily calculate your monthly payments. It includes a large range of values, which allows for different scenarios such as a lower down payment and a longer repayment period. Calculates total interest paid throughout the loan. Allows people without access to a computer to figure out their monthly payments. Provides information on rates, term lengths, and annual percentage rates (APRs). [B-02] Conclusion The commercial loan EMI calculator is a great tool if you’re interested in learning more about your EMI payments. It can also be used by banks and lenders, such as when they want to determine how much interest they will receive on an investment. Or commercial property investors can use it to know their monthly rental expenses before taking on the project. The math involved with determining your monthly payment may seem daunting at first glance, but a commercial loan EMI calculator makes it easy. For more information, head over to Piramal Finance.
08-11-2023
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Personal Loan

Can I Use Personal Loan for Business Purposes?

There are different kinds of loans, but this article will mostly focus on business and personal loans. Both loans are unique and can be used for different things, but personal loans are often used for business. Due to this, it is important to know if this is a good idea or not. If it’s a good idea, when is it right to use a personal loan for your business? A bank gives out personal loans to people for a range of purposes. They are often used to make home improvements or pay off debts. A bank or other financial institution can also give you a business loan. These loans are usually for a more specific part of your business. [B-01] About Personal Loan As the name suggests, a personal loan is made to people who need money for various reasons. Personal loans give borrowers the freedom to spend money on anything they want. From buying a new gadget to getting married, you can use it almost everywhere. Most of the time, these loans have short terms and high interest rates. Most personal loans do not require collateral, which is one reason they are so popular. About Business Loan There are many different kinds of business loans. Short-term loans, lines of credit, financing for equipment, and merchant cash advances, to name a few. Business loans have a specific goal and are usually given to help a business grow, run better, or get bigger. The loan’s amount, length of time, and terms and conditions are set based on the borrower’s profile. The reason for the loan is also very crucial. The interest rate is usually competitive, but you usually have to put something up as security. Business vs. Personal Loan: Picking the Best Whether or not to use a personal loan for business depends on several factors and should be carefully examined. If you need money for your business, it’s best to get a business loan, but you can also look into a personal loan in the following situations: Small Requirement A personal loan might be a good option if the quantity of cash needed is small. Apply for a personal loan, and getting the money is usually easy. You don’t need as much paperwork as you would for a business loan. You can get a personal loan if you only need a few lakh rupees. Time frame and payments If you need a loan to cover a short-term cash shortage, it might make sense to get a personal loan. There are business loans for this kind of thing. The fact that a personal loan is easier to get makes it more appealing. One can also get a personal loan for their business if they are sure they can pay back the loan within the time limit. They can even pay it off early. The interest rate on a personal loan will always be high. So, it makes sense to pay it back as soon as possible. The collateral factor Personal loans are unsecured. One of the best things about them is that you usually don’t need collateral to get one. On the other hand, most business loans are secured. It means you have to put up something as collateral. If you don’t have collateral or don’t want to provide it, a personal loan is a great way to get money. The patience factor It takes patience for a business loan to be issued and for money to get to your account. For most business loans, a lot of paperwork must be turned in. The business’s books of accounts and a business plan are some examples. It takes a while to get the paperwork together and then get the loan approved. If you need money right away and can’t wait, you can get a personal loan within a few days. Getting a business or personal loan depends on how quickly you need the money. When no alternatives remain Lastly, if there are no other ways to get a loan, a personal loan could be the only option. On the other hand, a personal loan depends on the borrower’s credit history. If you currently have other loans, you might or might not be allowed to get a personal loan. It depends on how much money you make. Why is a decent CIBIL score important? Most of the time, getting money to start a business is like climbing an impossible hill. In this case, you can use your credit score to your advantage. You can get a personal loan for your business. Your credit score is important because it lets you get a good interest rate. It shows that you’ll be able to pay back your loan. How to Fix the Problem of Having a Low CIBIL Score Do you worry that you won’t be able to pay your bills? Isn’t it true that this makes it difficult for lenders to say yes? Personal loans for people with bad credit are an option in this case. Just give the lender the right reason when you ask for money. Some places offer personal loans for people with bad credit, even with low credit scores. Although your business has no financial history or track record, there are easy ways to borrow money. If you don’t meet the requirements of banks or non-bank financial companies (NBFCs), you can use peer-to-peer lending platforms (PLPs). A few PLPs look at more than just the borrower’s credit score to decide if they should lend them money. [B-02] Conclusion Most of the time, people who want a personal loan can’t prove their business is creditworthy. When this happens, the lenders usually turn them down. If they applied for personal loans instead of business loans, their applications might be approved. When someone wants a personal loan, the creditor looks at their income and credit history. His firm needs to be looked at when deciding whether or not to give him a personal loan. Even though people can apply for a personal loan for any reason, the bank or lending partner must agree.
08-11-2023
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Home Loan

Calculate Home Loan Affordability with Online Calculator

Before starting the application process, you should figure out your housing loan eligibility. Knowing this will help you keep track of your money. It will also help you make sure that you can pay your instalments on time without breaking your budget. You can quickly decide your housing loan eligibility by using free online house loan EMI calculators. They are available on the websites of leading and reputable banks. Most of these calculators include checkboxes for various factors. These factors influence your housing loan eligibility. Age, gross monthly income, down payment, tenure, EMIs, interest rate and so on are all examples of these categories. [B-01] Advantages of Using a Housing Loan Eligibility Calculator Housing loan eligibility calculators have several benefits. Listed below are some of them: User-friendly The eligibility calculators are made to be easy to use so that as many people as possible can figure out if they can afford a home loan. You don’t need to be a financial expert to use the calculator; you can just go with your gut. You just need to fill in the boxes or move the sliders to give the calculator the information it needs, and it will give you the results. Free This is probably one of the best advantages of an online housing loan eligibility calculator. You don’t need to pay anything to use it. Also, if you need to, you use it as many times as you want. Needs minimum information The calculators don’t ask for much information. They only ask for specific information about your finances that will affect your ability to pay. Saves time Housing loan eligibility calculators help save a lot of time. This is because you don’t have to go to lenders to talk about loan rates and figure out if you can pay the loan and how much you can borrow. Instead, you can use online calculators to find these details from the comfort and privacy of your home. Helps with financial planning The calculator lets you know how much of a loan you will be able to get. It also informs you how much you can spend on a house based on your income and bills. Once you have these numbers, it will be easy to plan your budget and figure out what kind of assets you should try to buy. Offers customized results Each person’s financial situation is different. So, it’s obvious that everyone’s ability to pay will also be different. Each user also expects results that are relevant to them. This is clearly what the calculator does. It asks users for information and then gives them results based on that information. Factors That Affect Your Housing Loan Eligibility There is a reason why housing loan eligibility calculators ask for your financial information. It’s because all of those things affect your ability to pay. These factors are given below: Your monthly income If your monthly income is high, it will be easy for you to pay it. This is because someone with a higher income would be more likely to be able to pay back the loan each month. Down payment As a down payment, a borrower usually has to pay 20% of the property’s cost. The lending institution pays the remaining 80%. But if you can come up with a bigger down payment, you could get a bigger loan. It will also make it easier for you to pay your debts. Existing EMIs If you already have EMIs, it will make it harder for you to pay for things. It’s because your current EMIs make it harder for you to pay off the home loan every month. A person’s ability to pay depends on more than just these factors. The calculator doesn’t take these things into account, but they are important for getting a home loan. In the end, they affect your ability to pay, so it’s important to know about them. Your current age Age plays a big role in how much of a home loan you can get. Younger people have a better chance of getting bigger home loans because they have more time to pay back the loan. For older people, it’s the other way around. Similarly, it also affects who can afford one. If you’re young and financially stable, you’ll be able to afford more than someone older. CIBIL score Before giving you a home loan, every lending institution looks at your CIBIL score. If your score is low, you might not even get the loan you want. Due to this, it can be said that your ability to pay is directly related to your CIBIL score. If your CIBIL score is higher, you will be able to afford more. Availability of security Lenders see collateral as safety for their investment. Hence, it always makes it easier to get a home loan. In fact, your chances of getting a loan may be higher if you have collateral but a low CIBIL score. How to Use An Housing Loan Eligibility Calculator The steps below show how easy it is for people to use an online housing loan eligibility calculator. Step 1 Add your date of birth and where you live in the calculator’s empty fields. Step 2 The next step is to give the home loan eligibility calculator values for some parameters. These things are: Net monthly salary Length of time to pay back a loan Other monthly sources of income EMIs on any existing loans and other bills Step 3 The next step is to look at all of the eligibility requirements set by different lenders. This will help you choose a lender who can give you a good deal on a home loan and spread out your monthly payments over a good length of time. [B-02] Conclusion Your housing loan eligibility decides whether or not you are eligible to borrow a home loan. When you apply for a home loan, your lending institution performs a housing loan eligibility check. They assess your financial situation, creditworthiness, and repayment capacity based on your records, credit score, and financial history. You have a better chance of getting a home loan if you make a good impression on the lender. As a result, before applying for a housing loan, it is vital to know the eligibility criteria. For more blogs like this, you can visit Piramal Finance and explore their products and services.
08-11-2023
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Different Types Of Travel Insurance Plans In India

Travelling is a very important aspect of life. Be it for leisure or work, commuting is a must in our daily lives. Going from one place to another can be costly and comes with a lot of dangers. To protect your loved ones and your belongings, taking travel insurance plans is a must. [B-01] What is travel insurance? Travel insurance is a form of insurance that you can take before your travel. It is designed to cover the costs and losses which you may occur while travelling. Travel insurance plans cover flight cancellations, accidents, or delays among several other factors. The above highlights the importance of having a travel insurance plan. Choosing the best travel insurance suited to your needs is also equally important. This article will break down the travel insurance plans that are present in India. Travel Insurance plans in India Domestic Travel Insurance These types of travel insurance plans typically cover the following: loss of luggage loss of travel tickets flight delay/cancellation theft of valuables Illness Permanent disability Death Legal aid third-party damages incurred while travelling To be eligible, the travel must be within the legal border of India. You should also be between 18-65 years of age to meet the eligibility criteria. Overseas Travel Insurance Overseas Travel insurance forms part of the travel insurance plans available in India. You should opt for this when travelling outside of India. It ensures you are prepared for any problems that come with visiting a new country. Insurance involves: Medical cover Life cover Cover for stolen or lost baggage Hijack risk cover Loss of travel documents Cashless hospitalisation Senior Citizen Travel Insurance Senior Citizens tend to need extra care when it comes to travel. Senior Citizen Travel Insurance plans make it easier for them to be fulfilled. They usually cover: Cashless hospitalisation Medical expenditure for existing illnesses Dental treatment Baggage loss Flight delay or cancellation Single or Multi-trip Insurance Another type of travel insurance you could choose from is single or multi-trip insurance. Both these travel insurance plans cover the stated below mishaps: Medical and non-medical emergencies Theft Delay or cancellation in flight The single-trip option is suitable for you if you only travel occasionally. However, the multi-trip option is more geared toward businessmen and frequent flyers. Opting for this travel insurance plan saves the hassle of applying for travel insurance plans every time. This is provided in exchange for a small premium. Corporate Travel Insurance This type of travel insurance is typically targeted toward businessmen. It covers the following: Baggage loss Dental Expenses Legal expenses Medical Expenses Personal accident Medical Travel Insurance These travel insurance plans are specific to only covering health-related issues. If you opt for this type of insurance, you will only be covered for the following: Cashless hospitalisation Dental treatments Minor exertion Flu and other illnesses Luggage Insurance This insurance is a very specific one. It only covers mishaps that are related to your baggage. So, they only offer insurance on these: Loss of Baggage Luggage theft Damage to belongings in a suitcase due to fire or water Damage to luggage during strikes or riots This insurance allows you to solely take insurance on your baggage. Or you could take this to get ensure complete compensation if something happens to your baggage. Family Travel Insurance Holiday trips with the family are of frequent occurrence nowadays. Hence, you need to choose travel insurance plans which get your whole family insured under one insurance. This would reduce your finances while also saving you time. You don’t have to get a loan for each individual in your family. This type of insurance covers the following: Medical expenses Baggage loss Delay or cancellation of flights Death or permanent disability of one of your family members Pregnancy Travel Insurance If you are planning to travel while pregnant, it may be a good idea to consider pregnancy travel insurance. They provide extra coverage and care when it comes to maternity-related issues. They cover the following: Unforeseen pregnancy complications Medical expenses Cashless hospitalisation Choosing the best Travel Insurance The best travel insurance will be different for everyone. But, there are a few guidelines you can use to help decide which one is better suited for you. Affordability When it comes to picking a travel plan, the price of the insurance has its significance. Smaller premiums are convenient as you pay for them without much financial stress. Destination Another aspect to consider before picking travel insurance plans is the country/place you will be visiting. You need to gauge the medical costs, facilities, and laws of the latter. This makes it easier for you to decide. Purpose The purpose of your travel is also very important. For example, if you are going for leisure activities, a basic plan will be enough. For business, a multi-trip could be an option for you or a corporate travel plan. Age of traveler The age of the traveler also plays a massive role when deciding which plan to opt for. Elderly people can choose the Senior Citizen Travel Insurance. It provides cover for their existing illness if any. The price of coverage also varies depending on age. For example, if you are aged 20, the premium paid will be different compared to someone who is 40. There are several other aspects to consider before choosing the perfect travel insurance plan for you. You could also curate travel insurance to exactly meet your needs. [B-02] Conclusion As seen above, there are a plethora of travel insurance plans made available for you to choose from. Choosing the right one could need much research and time. Therefore, financial advisors such as Piramal Finances are highly sought after. They provide help and advice when it comes to managing your finances.
08-11-2023
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Best Saving Schemes that Give High Returns

Saving money is fundamental to everyone’s survival. Most people in India set money aside for emergencies. While putting away cash is always a good idea, it’s much better when you get rewarded for doing so. For saving money and earning a respectable return, savings plans are the best. Using savings plans can help you control your finances. Read this article to learn about the best saving schemes available. [B-01] Top 5 Best Saving Schemes that Give High Returns National Savings Certificate (NSC) Annual Rate of Interest: 6.8% Minimum investment: Rs. 100 Withdrawal: After maturity Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit Expiry/when to claim: 5 Years You can start saving with the NSC at any post office in India. The program was created by the Indian government to encourage citizens to save. NSCs offer fixed maturity terms of either five or ten years. Also, there is no highest deposit amount. You have to buy an NSC to participate in this plan. The initial investment should be Rs. 1000. Thereafter, investments can be as low as Rs. 100. After you invest, the interest will depend on the type of certificate purchased. Therefore, NSC is one of the best saving schemes available today. National Pension Scheme (NPS) Withdrawal: After maturity or after three years Minimum investment: Rs. 1000 per year Tax benefits: Up to Rs. 1.5 lakh as per Section 80CDD limit Expiry/when to claim: 5 Years The NPS is a savings plan to provide a regular stream of funds in your old age. It is one of the best saving schemes. Hence your salary is automatically deducted and invested in the plan. The primary goal of this plan is to give you peace of mind that you have some funds saved for retirement. Benefits such as health insurance and provident funds are part of the social safety net. You can also receive interest on your deposits. Senior Citizen Savings Scheme Annual Rate of Interest: 7.6% Minimum investment: Rs. 1000 Withdrawal: Annually Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit Expiry/when to claim: 5 Years For cautious investors, the SCSS savings plan is a solid choice. Individuals or couples can put up to Rs 15 lakh into the plan through a joint account. Investors must be over the age of 55 to invest in the scheme. Also, they must receive a government pension or take early retirement. A cash deposit or check can get you started. A cheque is acceptable when investing more than Rs 1 lakh The plan lasts for five years, but you can extend the term of this retirement plan by an additional three years. A 1.5% early withdrawal fee on the initial deposit will be deducted from the account balance if you close the account between the first and second year. Between the second and third year, a 1% penalty is deducted from the principal if you close the account. This will go towards a fee for early withdrawal. Individual investors can only have one extension. Fixed Deposits Annual Rate of Interest: Varies from bank to bank Minimum investment: Rs. 5000 Withdrawal: Depends on the bank Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit Expiry/when to claim: Depends on the period of the FDperiod When you put money into a fixed deposit, you commit to leaving it there for a certain amount of time. You will not be able to access this amount. This makes FDs one of the best saving schemes. Most FDs are tied to your checking account. Hence, you’ll have access to the money you’ve invested. Fixed Deposits vary from one bank to another. But, all have their advantages and potential drawbacks. Before deciding on one, you must know how they function to pick the one best suited to your needs. Fixed deposits are a great way to earn high interest on your savings. If you want your money to grow without incurring any unnecessary risks, a fixed deposit may be your best solution. Recurring Deposits Annual Rate of Interest: 2.5% to 8.50% Minimum investment: Rs. 10 Withdrawal: After maturity Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit Expiry/when to claim: 6 months to 10 years (depending on the bank) A recurring deposit is a regular payment automatically deducted from your account to an RD account. You can put money down for a longer time by using this method. The primary benefit of recurring deposits is the convenience of investing. A fixed sum of money gets deducted from your account at defined periods. This way, even if you do not have cash, you can still pay for things without worrying about wasting them. The other perk is that it encourages disciplined saving by removing the need to check the account balance or use the funds for anything else. For example, a Recurring Deposit can be opened at a bank with as little as Rs. 500, while at the post office, you can open it with as little as Rs.10. While interest rates on such deposits vary by bank, post offices throughout India offer a consistent 8.4% per annum. [B-02] Conclusion Putting money aside for the future is crucial. Short-term savings, even if only a few rupees each week will mount up to significant sums over time. Investing in some of the best saving schemes mentioned above will help you grow your wealth over time. You can also look at the best ELSS funds to understand how you can save on tax. These are only a few of the options available to you when it comes to planning for the future financially. Do you want to learn more about such investment options? Visit our website and become a master investor!
08-11-2023
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