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Business Loan

Different Ways In Which A Business Loan Can Help You Through Holidays

A commercial loan is the best way to ease your financial stress. Since holidays are the time for celebration, people love to meet their loved ones. But more importantly, they love spending on gifts for their friends and family. So, it is the perfect time for business owners to upgrade their inventory and resources. A commercial loan can help you ease your debts and provide you with enough funds to ramp up your business operations. Read on to find ways a business loan can benefit you this holiday season. [B-01] How Can A Commercial Loan Help You This Holiday Season? There are many ways a commercial loan can help your business during the festive season: To Market Your Brand A business needs marketing at all points. If you have a small business, a commercial loan can help you to expand your reach. Since there are so many ways to market your business, you can select multiple options for advertising. With a business loan, you can have competitive benefits and increased sales. Ensure to promote your business online and offline. The marketing strategy might differ from one business owner to the next. But the level of marketing in your business has a lot to do with its success. With a commercial loan, you can easily deal with such issues. Sometimes even large companies face a financial crunch when it comes to the liquidity of funds. A business loan can be a blessing in times of crisis. Equipment Upgrades Every business needs an upgrade from time to time. As you progress in your sales, the demand will increase. To keep up with the increase in sales, you must upgrade your tools and equipment. But affording such new machines and tools might be difficult for you. A business loan is the best way to buy upgrades without disrupting your business savings. As a business owner, you know the importance of emergency funds. In this way, the progress of your business will not stop, and you have enough savings in your business account. Getting a commercial loan to hire more staff will help you get the ROI you aim for. The plus point of the loan is that you can earn profits without multiple debts. But what happens when you lack production or have insufficient manpower? Ensure that your business does not go through such situations. Thus, commercial loans become very important for upgrading your resources. Clear Debts Many people use commercial loans to pay off their debts. This is feasible as the interest rates of commercial loans are lower. It is a great way to plan your business finances and start fresh. You owe much less on a commercial loan by clearing your multiple debts with a higher interest rate. With a business loan, you also get a longer repayment deadline. This will help you pay off your existing debts and help you reduce interest rates. You can also extend your repayment deadlines to avoid any penalties. After you have paid the debt, you are left with some extra funds to invest in a commercial loan. Refinancing helps your business in several ways. You can clear your current debts, invest more in resources, and improve your CIBIL score. A business loan can help you gain more working capital after clearing multiple debts. To Boost Working Capital Working capital is very important for any business. It should be well-planned whether you have a small or large business. When you clear all the funds you owe in debts, taxes, and account returns, the residual funds are your working capital. From this, you also have to pay your staff and invest a certain amount into the business. But with the festive season approaching, you might need more funds than usual. People tend to go all out shopping during holidays. If you have inadequate funds, the investment options for your business are very limited. You might be unable to buy new equipment or hire more staff for the festive season. This might cause poor management and low production for the holidays. As a result, you will have restricted revenue. A commercial loan will help you to boost your capital. You can have enough funds to invest and lay off any debts that cause financial stress. Increased Inventory The holiday season is a rush time for all business owners. With the festivities approaching, most businesses also offer great discounts. So people are generally on the lookout for stocking their yearly essentials. It is also the best time for getting loved ones their favourite things. You don’t want people to enter your store and find empty spaces. With the time crunch and limited funds, a commercial loan is the best option to increase your inventory. It is quick and does not require any collateral. Having a sufficient inventory will also help you secure good working capital to repay the commercial loan. [B-02] The Bottom Line The holidays are the busiest times for business owners. But it also comes with a lot of challenges. To overcome debt repayment, insufficient inventory, and other issues, a commercial loan can be helpful. Getting the best business loan that fits your needs is very important. You can ensure your business flourishes this festive season with the right commercial loan. To read more about business loans, check out the Piramal Finance website.

08-11-2023

Credit Score

Does Loan Settlement Ruin CIBIL Score?

Whenever you borrow a loan, it’s important to have a plan to repay it. However, sometimes people are unable to repay the loan on time. This can be due to business failure, high interest rates, sudden tragedies, etc. People may try to resort to loan settlement to solve the problem. However, contacting the lender or bank to settle a loan might be a blunder. It harms your CIBIL (Credit Information Bureau (India) Limited) score and prevents you from obtaining a loan for many years. Many people hurry to make extreme decisions without being aware of the consequences. A CIBIL score is essential to determining your financial status. It is largely dependent on your monetary behavior. This article will explain the drawbacks of loan settlement and why you shouldn’t choose it. [B-01] Meaning of Loan Settlement Also known as “debt relief,” this is a process of financial negotiation. The borrower tries to agree with the lenders to settle on a sum less than the entire amount. Typically, a “One-Time Settlement” offer is provided by the lenders. Eventually, both parties will reach a common ground on the debt owed. The loan’s status will be stated as “settled” in the credit report. The differential sum will be officially dismissed. Now the question arises: how does this harm CIBIL Score? How Does Loan Settlement Affect CIBIL Score? The biggest impact is on the prospects of obtaining loans in the future. The possibility of getting a favorable interest rate is tarnished. This is because loan settlement lowers the CIBIL score. Most borrowers are unaware of how loan settlements diminish their credit score. If you choose to pay off your debt, you should be aware that your CIBIL credit score may suffer as a result. Typically, a loan settlement can lower the CIBIL score by 80–100 points. That’s quite a lot of deduction. Therefore, your profile as a borrower will suffer a lot of damage. A settled debt’s status can be seen for up to 7 years on the CIBIL credit record. This is a long tenure. Therefore, if you apply for a loan during that period, you will probably not get the desired results. It’ll be unfortunate if someone in urgent need of revenue doesn’t avail of it. The banks and money lending companies will assess your CIBIL score. If it appears that you will be unable to repay the original amount, the bank may impose conditions on the loan. These include a higher rate of interest, a shorter tenure, collateral, etc. In the worst case, the bank can reject the loan application. What Are the Solutions Then? By now, you are aware of the drastic results of applying for a loan settlement. It’s natural for you to want a solution to the situation. We will consider two cases for this. Firstly, you’ll learn what can be better substituted for loan settlement. The other case will discuss ways to increase the CIBIL score if you have already applied for a loan settlement. How to Avoid Loan Settlement? Since applying for loan settlement should always be the last resort, here are the ideal substitutes: Try to sell some valuable assets to raise enough money. These can include gold, automobiles, jewelry, etc. Liquidate a sufficient part of your investment or portfolio. Request the bank or lender increase the tenure to meet your needs. Request the bank to reduce the rate of interest. Get an insurance policy on your loan amount before applying for it. If you cannot acquire sufficient cash to pay off the debt, it’ll be handled by the Insurance company. Thus, you can avoid payment defaults and prevent your credit record from reflecting them. Additionally, it will assist you in avoiding accepting the lender’s and bank’s offers to settle the loan. What to do to Increase the CIBIL Score if the Loan is Settled? If the loan settlement is done, you should take immediate steps to improve your financial status. Loan settlement will inevitably lead to a deduction in the CIBIL score. Therefore, a proper plan is needed to increase it again. The following steps will help you improve your credit profile: Make sure that all your previous dues (if any) are cleared. These are the biggest hindrances to maintaining a good CIBIL score. Discard the credit cards that you don’t use frequently. However, remember to keep your first one with you. It is not uncommon for unused credit cards to affect the financial status of an individual. Maintain an ideal Credit Utilisation Rate (CUR). This falls around 30% (0.3) or below. Your CUR is a part of the credit limit used against the amount granted. Make sure not to overuse the credit capability. Doing otherwise ruins your credit profile and decreases your CIBIL score. Seek help from a financial adviser. Piramal Finance will provide you with some of the most reliable ones. Do not apply for a new loan for a few months. [B-02] Conclusion You should always be cautious about borrowing the loan amount, depending on your financial capability. It is this mistake that often leads people into difficult situations. Always analyze the loan schemes offered by different banks and make your choice. If possible, get the required help from a financial advisor. Loan settlement has a negative impact on an individual’s financial situation. You need to realize just how important the CIBIL score is for your monetary requirements. Nearly every bank assesses it before considering granting you a loan. Tarnishing reduces the chances of getting a loan in the future. As a result, in the event of financial difficulties, keep loan settlement as a last resort. For more details, you can visit our website, Piramal Finance. We will be more than pleased to answer your queries.

08-11-2023

Personal Loan

Difference Between Two-Wheeler Loan and Car Loan

Owning a vehicle is a dream many people nurture. Having your own vehicle means that you can commute at your leisure and convenience. However, the cost of two-wheelers and cars is rising every year. Thanks to several loaning facilities available in the market, you can easily apply for a vehicle loan to realise your dream of buying a car. Once you decide to own a vehicle, you need to decide whether you want a two-wheeler or a four-wheeler. There are loan facilities available for both kinds of choices, but it is imperative to know what both of these choices entail in terms of a loan. Due to recent improvements, loan applications are now processed quickly and easily. You can choose from a variety of plans and options, especially when it comes to automobiles. The majority of applicants end up postponing their application procedure since they are ignorant of the difference between a two-wheeler and a car loan. To choose the one that is best for you, you should understand how they differ from one another. This article attempts to explain and highlight the main differences between a two-wheeler and a car loan. [B-01] Two-Wheeler Loans Versus Car Loans Compared to a car loan, a two-wheeler loan is very different. Even though both two-wheeler loans and car loans are classified as vehicle loans, the lender sees them as two different investments, thus there are some variances between the two. Bike prices are typically lower than car prices. Due to its affordability as a means of transportation and the rise in fuel prices, motorcycle use has increased among the general public. Additionally, COVID-19 and the rise in home delivery jobs have raised the demand for motorcycles and decreased default rates. Because of all these variables, getting a loan for a two-wheeler is easier than getting a loan for a car. How Do Two-Wheeler Loans Differ From Car Loans? Though both are vehicle loans, two-wheeler loans and car loans differ from each other in the following aspects: Compared to a car loan, a bike loan has distinct eligibility requirements. The repayment period of a bike loan is also shorter than that of a car loan. Though the interest rates are not fixed, the bike loan interest rate is different from the vehicle loan interest rate. It varies depending on the lender. Typically, a car loan is sanctioned for a significantly larger loan amount than a two-wheeler loan. These differences are further explained in a detailed manner below: Eligibility Criteria In comparison to a two-wheeler loan, a car loan has more stringent eligibility requirements. Your credit history, past repayment behaviour, history of prior loans, defaults, level of income stability, etc. will all be examined by the lender if you apply for a car loan. Nevertheless, it is simple to obtain a bike loan. You may easily apply for a bike loan because the procedure is straightforward. Repayment Tenure A bike loan has a shorter repayment period than a car loan. When compared to a car loan, which can last up to 5 years, a bike loan typically has a payback period of 2—3 years, though this can vary depending on the lender and be extended. The age of the vehicle at the time of purchase plus the loan’s term shouldn’t be greater than 10 years (in special cases, 12 years). Rate of interest A two-wheeler loan often carries a lower interest rate than a car loan. Despite this, there are several circumstances in which the interest rate for the bike loan may be higher. The same lender may charge varying interest rates for two-wheeler loans to various bike manufacturers. The financing rates on premium motorcycles are lower than those on regular vehicles. Two-wheelers loans have a different interest rate structure than car loans. Similarities Between Two-Wheeler and Bike Loans Loans for a motorcycle and a car are comparable. You can reasonably understand how to apply for a motorcycle loan, provided you have the right information about the various aspects of the loan process. Additionally, knowing the distinctions and parallels between loans for two-wheelers, cars, and even used cars will help you make the best choice. Automobile and bike loans have numerous differences, but they also have many similarities. For the most part, the same documents are needed for loan processing. Salary stubs, evidence of income, bank statements, proof of residency, identity proof, PAN cards, etc. are the primary documents needed. Both automobile and bike loans are secured loans. How to Get a Motorcycle Loan? After comparing the two types of loans—two-wheeler and four-wheeler—we can now look at the motorcycle loan application process. Of course, the loan application process is handled in a somewhat different way by each lender. The fundamental steps that must be taken to obtain a two-wheeler loan are similar. To learn more about how to apply for a motorcycle loan, read the following pointers: Complete the loan application with personal information and bike information. Determine your eligibility and the repayment period. Get your loan approved. Get your loan acceptance letter from the lender next. Go to the store where you want to buy your dream bike and buy it. [B-02] Summing it Up Car and bike loans differ, although they are nonetheless comparable in many ways. If you’re thinking about buying a bike, you should first look into the lenders who are providing the greatest interest rates on the market. Concerning loan tenure, interest rates change. So, make an effort to appropriately adapt the loan term for the bike. Purchasing a car has a similar process. Visit Piramal Finance’s website to know more about vehicle loans and other products and services offered by them.

08-11-2023

Personal Loan

Different ways to get Personal Loan without Income Proof

There are often emergency cases where people require a sizable amount of cash. It’s only natural that borrowers want the money hassle-free. The lender’s lengthy list of terms and conditions can be a bit bothersome. You’d like the loan approval process to be as simple as possible. A personal loan is not secured. You won’t have to go through the hassle of providing collateral to your lender for it. Even if you do not need to submit collateral, you must meet certain requirements to receive the loan. However, it’s not always possible for everyone to submit documents like Income proof. Fortunately, some lenders will grant you a personal loan even if you don’t submit such documents. We will now explain different ways to obtain a personal loan without income proof. [B-01] Various Strategies for the Objective: Set up a Favorable Professional Relationship with the Preferred Bank/Lender A strong link between you and the lender is one of the major aspects of achieving the goal. If you and the bank/lender are well acquainted with each other, it’s likely that the latter will grant your requirements. Here are steps to earn their trust: Remain faithful to that particular bank for all the monetary services. Paying all the dues and bills on time will increase your trustworthiness. Maintain a good credit utilization rate. Prefer a local bank since it’s beneficial for both sides. The bank will be much more inclined to be at your aid. Try to avail as many schemes as possible offered by the bank. Apply for the loan alongside a Guarantor/Co-Applicant An excellent alternative is to seek the aid of a trustworthy acquaintance. You must guarantee that the person acting as guarantor has a reliable credit score. A person with a steady income and a healthy credit history will make an ideal co-applicant. This is the most typical approach for people to apply for a personal loan without income proof. Although, if you fumble with the loan, it’ll be the guarantor’s responsibility to make the repayment. So it’s advisable to be cautious. Set up a Collateral You can put up collateral(such as a valuable asset) for the lender instead of income proof. This tends to be an ideal way to obtain a personal loan without income proof. The most popular form of collateral offered by applicants in India to obtain a fast loan without income proofs and CIBIL scores is Gold. This is largely due to the fluidity and profitability of gold. The number of individuals opting for this kind of quick loan increases every day. The collateral serves as security in the absence of the CIBIL score to reduce the lender’s risk of default. You can pledge any asset, such as real estate, a car that hasn’t already been pledged for another loan, gold, etc., depending on the circumstances. Build up a Good Credit Score Most lenders would consider you a creditworthy borrower if you have a high CIBIL( Credit Information Bureau (India) Limited) score. It proves that you are financially responsible. They will have any issues while granting you a Personal Loan in the absence of Income Proof. The ideal CIBIL score typically falls around 750. Apply for a Personal Loan with a High Rate of Interest If you are not able to supply your income proof or a good CIBIL score, this can be one of your main resorts. Certain banks or lenders will be willing to accept your requirements if you apply for the loan at a high-interest rate. It usually tends to work well for both parties in this case. Proper Ratio between Debt and Income You should always try to keep the debt-to-income ratio around 0.4 or less. This largely uplifts your profile as an able borrower. It shows that you will be able to make repayments timely. It also lowers the risk for banks to lend you a personal loan without income proof. Benefits of Applying for a Personal Loan without Income Proof: You are now aware of the different ways to apply for a personal loan without income proof. Here are some benefits of the above: It allows you to establish a healthier relationship with the bank or lender. It’ll help in the growth of local banks a great deal. Simple reimbursement with an adjustable tenure. You will be able to satisfy your urgent requirements in time. Lucidity and prompt payment. The interest rates offered benefit both parties. Procedure to Apply for Personal Loan We will now guide you through the entire procedure of applying for personal loans without income proof. Browse through the website of your desired bank or lending company. You can also download their applications, if available. Create an account or log in to an already existing one. Finish the KYC(Know Your Customer) procedure by submitting the necessary paperwork. Navigate to the personal loan section. Go through the terms and conditions. Enter the required loan amount. Seek the aid of an online assistant of the bank. Tell them your circumstances. (Depends on your situation) You can offer the collateral, accept the higher interest rates, or request a meeting with an official. You can also mention the reliable co-applicant. After the conditions are met, you will be granted the loan amount. We also advise you to visit the bank physically. For many people, the entire process is convenient offline too. [B-02] Conclusion With changing times, it has become easier to apply for a personal loan without income proof. The key to availing of the loan is to establish a good professional connection with the lenders. Always keep in mind to maintain a reliable profile. Be sure to repay your debts and loans punctually. sure to repay all the loans and debts timely to ensure your credibility. For more details, you can visit our website: Piramal Finance. We will be more than pleased to answer your queries.

08-11-2023

Personal Loan

Build Your Home Gym with a Piramal Finance Personal Loan

Going to the gym is something that everyone may want to do. But it may not be easy to do so. Whether you’ve worked all day and are fatigued, have children at home who you can’t leave alone, or despise working out in front of others, it’s simple to find reasons not to go to the gym. Exercising, on the other hand, provides several physical and mental advantages. If you don’t have time to go to the gym, you may want to consider purchasing gym equipment. This may vary from a few dumbbells in a room to a full-fledged gym setup. If you can’t afford to pay hundreds, if not thousands, of money for the initial setup of your home gym, Piramal Finance offers personal loans with top-notch benefits. [B-01] What Are The Advantages of Having a Home Gym? There are several advantages to having your gym, including the following: Saves Time You are no longer required to drive to and from an outside institution. Customisation You may have the precise equipment you want and use it in the way you want, without limitations. You may accommodate your personal tastes, be it loud music, television, or complete silence. Motivation When the gym is practically down the hall, you no longer have the excuse of “not enough time.” You may customise your room to create the most relaxing, welcoming home gym setting possible. You don’t have to shower at the gym or travel home in dirty workout clothes since your shower is also just down the hall. Free To Go Anytime You Wish There are no busy periods, closed days, or limits when it comes to exercising. You may proceed at your speed without being concerned about other people using your equipment or alternating sets with someone. No More Germs Hundreds of sweaty people touch the same piece of equipment as you in a commercial gym. With a home gym, only you will have access to your equipment. And, you may clean it as often as you like. How to Go About Constructing a Home Gym? Determine The Equipment Required Depending on your training needs, your gym might cost anywhere between a few hundred to a couple of lakhs. Make a list of the equipment you need. This may include a treadmill, dumbbell set, stationary cycle, training bench, rowing machine, and so on. Find The Best Offers If you hunt hard enough in this information-driven age, you can always discover the greatest discounts for any kind of item. Take some time to find and finalise the greatest bargains. You might wind up saving a lot of money. Create a Monthly Budget Making and adhering to a monthly budget is a question of monetary resources and effective personal finance management. When you have a large cost coming up for your home gym, you should tighten your belt and redraw your monthly budget. You will therefore generate some excess to manage your EMI and build your dream gym. Increase The Tenure Before applying for a personal loan for your home gym, it is a good idea to utilise a personal loan EMI calculator. It will determine the best term and EMI for you. Your EMI should be manageable and fit inside your monthly budget. It would be best if you chose the longest term available. After six months of loan servicing, you have the option to foreclose the loan with no prepayment penalty. Avoid Using a Credit Card Use a credit card only for scheduled large-ticket purchases. If you do not pay within the credit term, you will wind up paying more than 2.5% each month in interest. On an annual basis, this may amount to an astounding 36%. When it comes to funding scheduled costs, a personal loan is much superior. This is due to the cheaper interest rates. Request a Personal Loan Once you’ve decided on your gym equipment and the lender you want to work with, all you have to do is apply for a personal loan from Piramal finance. Applying for a personal loan is a breeze if you fulfil the qualifying conditions. You must be an Indian resident or citizen over the age of twenty and have a monthly net salary of at least Rs 30,000 to apply for a personal loan. Getting a Personal Loan From Piramal Finance All you have to do is submit an online application form and the necessary documents to Piramal Finance: PAN Card Proof of Residence: Aadhaar Card/Passport/Driving Licence Salary slips from the previous three months Last six months’ bank statements Piramal Finance will assess the application using certain lending standards. The loan will be authorised and paid within 24-36 hours if everything checks out. You may acquire a loan ranging from Rs 50,000 to Rs. 10,00,000 with terms ranging from six months to five years. The annual interest rate begins at 18%. You may choose your repayment arrangement depending on what works best for you. When applying, you have the option of selecting the longest tenure. After six months of EMI payments, you may prepay the loan in whole or part to minimise your interest payments. No prepayment penalty is charged after six months. You may use whatever you have left over to pay off the debt. A work bonus or raise in salary can also be used. Personal loans are a straightforward method to pay anticipated needs. They are less expensive than credit cards. There is no requirement for collateral, and the procedure is fairly speedy. You may get a personal loan to pay all the costs associated with establishing a home gym. [B-02] Conclusion Taking care of your health and fitness is a must in today’s busy and stressful world. If you believe that having your home gym would allow you to follow an exercise routine at your leisure, you should create one. This gives you the freedom to avoid crowds and work out when you want and at your own pace. If you want to learn more about how to apply for a personal loan online, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Home Loan

Complete Guide on How to get Home Loan in India

Whether or not to buy a home is one of the most important decisions a person can make. Because there are now affordable home loans, buying a home is possible. Home loans are a common way for people in India and around the world to get some of the money they need to buy a home, which requires a big investment. Before home loans are available, people must save for years and take out loans from unknown lenders when needed. But many things have improved in the sector because consumer tastes have changed and laws have become stricter. You can now get a home loan at one of the lowest rates in the industry with a lot of openness and trust. But it’s important to know how home loans work in India before you apply for one so you can make the best choice. [B-01] What is a Home Loan? A home loan is money that a person borrows from different banks or non-banking financial institutions (NBFI) to buy a piece of real estate. Send the application This is the first step in getting a loan for a house. At this point, you have to send in the loan application and some basic information. At this step, you need to know the following: Information about you, like your name, home address, phone number, etc. Information about income, like annual income Information for education Information about business and jobs Details about the property, like whether it is a home or a business. How the property is currently being paid for, and how much is expected to cost. At this point, lenders may want to know different things. Along with the information you provided as part of the application process, you must include supporting documents. Here are some of the documents that must be submitted: – Proof of employment Proof of education Details about a house Proof of identity Proof of income Age proof Proof of address Charges for Processing After the loan application has been sent in, it is important to pay the processing fee. Again, the processing fee could differ from one lender to the next. Home loan processing fees are usually between 0.25 and 1% of the loan amount. The processing fee is the amount the lender takes out of the borrower’s account to keep the loan account open. You could also add the agent’s commission to this amount. The processing fee is always something that can be talked about with the lender. Even if banks and NBFCs have a set formula for figuring out the processing fee, there is no point in asking them to lower it. Discuss with the lender At this point, the bank has reviewed the paperwork and has had a formal conversation with the borrower. Usually, it only takes 1-2 days of work if the paperwork is sent correctly. Some lenders require you to go to the branch to discuss the loan, the terms, and other details. Some lenders feel more comfortable asking these questions in person or learning more about the application. Wait for the documents verification It’s important to know that many people apply for home loans daily. To speed up the application process, it is important to submit paperwork in the right order. At this point, the lender checks the information the applicant gave. Most of the time, the lender checks the following documents: Information about jobs Employer qualifications The employer’s address. Get acceptance This is the most important step in the process of getting a mortgage. It is when the lender decides whether or not to give you the loan you asked for. This is called the application for a loan to be approved or sanctioned. Before giving the loan, the lender carefully looks at the following parts of the application: Age and qualifications of the applicant Details about the job or business of the applicant Information about the person How much money the applicant earns The ability to pay back the loan at the interest rate set by the lender. The lender confirms the most it can lend based on an analysis of the application that uses the earlier criteria. In some cases, the lender will set conditions the applicant must meet before the loan can be paid out. Get the letter of the sanction After looking at the paperwork that backs up the application, the lender is supposed to send a “sanction letter.” In a certified offer letter, the lender usually tells you the following: The most money a lender will let you borrow. The interest rate is used to figure out how much of a loan to give Interest rates can be fixed, or they can change. The duration of the loan’s availability. EMI is a monthly payment from the borrower to the lender. Finish the loan contract. The contract is finally registered when all the technical tests are done, and the lender is happy with the property on which the loan is being given. The lender’s lawyer must finish the paperwork and stamp it correctly. Sign agreements Both sides need to sign the papers now that everything is in order. Most of the time, the paperwork is signed first by the lender at the stage before. When the candidate signs and applies, they must include checks for the period that both parties have agreed on. After this step, the original documents for the property are sent to the lender. This is done after the loan agreement is made to protect the lender. [B-02] Conclusion The first step in getting a home loan is looking for the best banks or financial institutions. Also, you need to know a lot about the different terms to compare different institutions to find the best home loan programmes. You can stay on the right track if you know what’s coming up, like home loan interest rates, types of interest rates, processing fees, how to figure out interest rates, loan duration, and EMIs. To buy a house successfully, you need to know how to apply for a home loan and have a strong plan for paying it back. If you want more information, you should go directly to Piramal finance.

08-11-2023

Home Loan

Complete Guide: How Can You Apply for Rural Housing Loan Online?

Making your dream home a reality is not simple. Housing loans can help you achieve this dream. There are various rural housing loans available at very nominal interest rates, and these loans have many perks. Before applying for a housing loan, you need to understand all the details of the loan. This article will provide you with every detail you need to know when applying for a rural housing loan. [B-01] How does a rural housing loan help? Home purchases in rural and semi-urban areas can be financed by rural housing loans. Rural housing loans assist people in purchasing or building a home because of finances. The loan can be repaid over a period of up to 25 years. You have to pay a nominal interest rate of 11.00% per annum. What are the pros of a rural housing loan? There is no charge or a very low charge to process the loan application. Some lenders will also provide insurance coverage for the property at no extra cost. The payback schedule is better than that of other loans, making the loan more affordable for many. Most lenders do not charge any penalty for the early closure of a rural housing loan. This is beneficial if you receive a large profit from your business. What are the interest rates for rural housing loans in 2022? Loan LimitInterestA loan of up to 35 lakhs11.00 % p.a. (starting limit)A loan of between 35 and 70 lakhs 11.00 % p.a. (starting limit) Know that the interest rates for loans more than ₹70 lakh are different. How do you use a rural housing loan? It can be used to acquire a home that is under construction, already completed, or for sale in rural and semi-urban locations. It can be used to expand an existing house or property by constructing additional rooms or buildings. It can be used for many home improvements, including new interior and exterior plaster, flooring, paint, etc. It can be used to build property on urban and rural residential lots, whether owned outright or leased. What are the eligibility criteria for a rural home loan? The eligibility criteria for a rural home are as follows. You should be 21 years old or older. You should have a stable source of income. If you apply with a co-applicant (i.e., a parent, spouse, friend, or child), you should provide their income proof. You need an NREGA job card. You need to provide a National Population Register letter with your name and photo. Your CIBIL score will also be checked when applying. Farmers, business owners, independent contractors, salaried workers, and professionals can apply for the loan. What documents do you need to provide for a rural housing loan? You can select an identity proof from the list given below. Applicant’s passport Election proof card UIDAI card (Aadhar) Permanent Account Number (PAN) Card You need to submit income proof as follows if you are employed. Election proof card Bank statements for the recent six months Salary slips for three months Latest IT returns Form 16 You have to submit income proof as follows if you are self-employed or a business owner. IT returns of the last two years CA Audited Financials Bank statements of 6 months (latest) You also have to provide the documents for the property. The following documents need to be attached. No Objection Certificate (NOC) from the society or the builder Allotment letter or stamped sale agreement Certificate of Possession What is the tenure of a housing loan? Loan amounts can vary from INR 5 lakh up to INR 75 lakh for 25 years. Income also determines the interest rate and payback period. What are the advantages of using a rural housing loan? It is a loan tailored specifically to the needs of farmers in the agricultural, horticultural, plantation, and dairy industries. It will help you acquire either a newly constructed or an existing residence in a rural or urban location. The loan can be used for residential buildings on rural and urban freehold or leasehold land. It can be used for interior and exterior painting, plastering, and tiling. It’s also handy for expanding a home by building new rooms. It can be used as a token when you purchase a residential plot in a rural area. It can also be used to make down payments for any renovation contractors. Many lenders do not ask for collateral. Agriculturists seeking rural housing finance are not required to submit federal income tax returns. Home loans allow you to save a great deal on tax returns. Under Sections 24, 80C of the Income Tax Act, you can claim 1.5 lakhs in tax deduction. It includes the principal amount, registration cost, and stamp duty charges of the housing loan. You can choose an EMI and pay off the loan based on your income and budget. Home loans are quite flexible, making the monthly instalments well within your reach. You can choose a repayment term of 25 years or longer. [B-02] Conclusion It is very important to have a place of your own. To help you with your dreams, banks and NBFCs are always ready to assist you with quick and easy loans. Housing loans are available at a very nominal fee. The easy process and quick availability will help you own your own home. These home loans are customized according to the needs of the applicant. Furthermore, these loans have tax benefits that you can claim when you file your income tax returns. These loans are accessible to all. However, application acceptance does depend on a few criteria. Piramal Finance provides housing loans at affordable interest rates. Visit the Piramal Finance website for more details.

08-11-2023

Education

How to Plan Finance for an Early Retirement?

In India, early retirement planning is not fashionable at present. Many individuals think retirement means being old. They think it is tough to plan finance and retirement with a stable income. But nowadays, youth are planning their retirement in their early 30s. The imbalance between lifestyle and workload is making people retire in their 50s. You can also plan finance in the right direction. It helps with a safe and early retirement. You can live a stress-free life with your family without worrying about money. Passive income generation is most important in retirement planning. Mutual funds and property can help you to plan finance. [B-01] Personal Financial Planning in Five Smart Steps for Retirement If early retirement is your goal, consider these small yet simple steps. These steps will help you save and generate money easily. Start planning early. You must start planning today if you’re considering retirement in your 40s. Plan finance at the right time to stay in the loop with opportunities. Don’t waste time like others by planning late and taking the wrong approach. You can explore the options available and choose wisely. Use expert financial advice and research, keeping your details in mind. Inflation is an important subject in calculating your corpus. Inflation reduces the money’s value with time. Include your family details and personal finance activities in the corpus calculation. Estimate your expenses and savings. Your savings amount in retirement planning must follow the 25-times rule. The rule says you must have 25 times more money than your annual spending when you stop working. For example, if you spend Rs. 1 lakh a year, you must have Rs. 25 lakh as your retirement money. This amount must be in your account when you stop working. Consider inflation and your risk tolerance when saving. It will help if you manage your expenses smartly. Follow the retirement corpus to make decisions. It will make you independent. You must follow this path to never run out of money. Adjust your current income. You can manage your current income easily. Make a smart budget plan for food, bills, transportation, and extra spending. You can eat at home, use public transport, and apply for subsidies to save money. Early retirement plans need 50% savings in income. It would help if you had multiple incomes to save more money. Maintain your credit score for low-interest loans if needed. It will help save taxes. Choose a long-term growth investment. Simply put, early retirement planning allows for less time to save and more time to spend wisely. It would help if you spent in a way that made your savings valuable. Consider investing in long-term investments as passive income in personal financial planning. Compare and invest for the best return with a great portfolio. Watch your approach to money and save as much as you can. Health Insurance Personal financial planning with health insurance is a great step toward early retirement. When you grow old, your body will need regular check-ups. The cost of routine checkups can be taxing at times. The premium amount for health insurance rises in the 40s and 50s. It would help if you bought health insurance at a young age. When you buy at a young age, it extends your cover. Compare and choose the best health insurance for the long term. You can assess the amount and save smartly for health. Healthy eating habits will also save you from extra expenses. You may include your point of view in planning. You should make an official list with expenses and income. It will give you a clear picture of retirement planning. Why Should You Plan Retirement at a Young Age? Early retirement may seem odd to some individuals. But it’s a great chance to learn about your future. The idea of retiring in your early 50s gives you financial freedom. Let’s check out why we should plan early retirement: The uncertain future may bring anything. As a result, saving money would be beneficial. Early retirement gives financial independence to individuals. Life expectancy has improved in India. So, after retirement, people survive for 10–20 more years. Retirement planning helps the individual survive. Expensive health care is becoming a burden for individuals. You can save on expenses and invest in your health. Health insurance and a healthy lifestyle are the best ways to stay fit. Retirement planning gives you self-confidence. Why Should You Choose Mutual Funds? Mutual funds are long-term investments in reputed company shares. Anyone can buy shares with investors for long-term returns and dividends over profit. You can buy the shares legally for retirement planning. However, make sure you get some financial advice from someone who knows about investing before you jump in. You may consider the following reasons for choosing mutual funds in your retirement planning: Tax Efficiency Long-term investments do not generate much tax. You can save on tax expenses by investing in high-return mutual funds. Effective for inflation Inflation is rising and increasing people’s living expenses. So, you must invest in funds that also increase with time. Growing mutual funds are best for inflationary situations. Easy on the pocket Mutual funds do not need big investments. A small EMI amount is more than enough. The monthly amount is between Rs 500 and Rs 1000. You should choose a fund with limited entry, exit, and management fees. Easy Liquidity It would help if you chose without lock-on period mutual funds. It helps you withdraw money whenever you want. You may invest in 3-5 year lock-in period mutual funds for liquidity. [B-02] Conclusion Early retirement is easy with smart planning and investments. It would help if you had more income than expenses. Check the steps given above for an idea. When you start early retirement personal financial planning, you get the chance to change. It helps you cherish your present and future. You may seek guidance from experts. Explore the best mutual funds for long-term investment plans. Compare and select the best with caution. Visit Piramal Finance for similar blogs and look at their products and services.

08-11-2023

Credit Score

Difference Between Credit Score and Cibil Score

If you’ve ever applied for a loan or credit card, you’ve likely come across the terms credit score and CIBIL score. Many people use them interchangeably, which often leads to confusion. So, is credit score and CIBIL score same? The answer is not exactly. While both relate to your creditworthiness, there are some important differences you should understand. Credit Score vs CIBIL Score What is Credit Score? A credit score is a three-digit number that reflects your creditworthiness. It is calculated based on your credit history, repayment behaviour, credit utilisation, and other factors. The score typically ranges between 300 and 900, with a higher score indicating better credit health. Multiple credit bureaus in India generate credit scores — such as CIBIL, Experian, Equifax, and CRIF High Mark. Hence, the term credit score is a general category that includes scores from any of these bureaus. What is CIBIL Score? A CIBIL score is a type of credit score generated by TransUnion CIBIL, one of the major credit bureaus in India. When people refer to the CIBIL score, they are specifically talking about the score given by TransUnion CIBIL based on your credit information report (CIR). So, while all CIBIL scores are credit scores, not all credit scores are CIBIL scores. Difference Between Credit Score and CIBIL Score Let’s break down the key differences in the table below: Feature Credit Score CIBIL Score Definition General term for your creditworthiness rating Specific credit score by TransUnion CIBIL Issued By Multiple bureaus (CIBIL, Equifax, Experian) Only by TransUnion CIBIL Score Range 300–900 (varies slightly by bureau) 300–900 Usage Used by all financial institutions Widely used and most recognized in India Data Source Based on credit report from the issuing bureau Based on Credit Information Report by CIBIL Uniqueness Can vary depending on the bureau Fixed calculation method by CIBIL Reputation in India All are valid, but may vary in weightage Most popular and trusted score in India Hence summarising the above table, credit report is a generic term that refers to your overall creditworthiness whereas CIBIL report is a specific credit score given by TransUnion CIBIL. Furthermore, classifying the difference as follows. Issued By Credit Score: Can be issued by any authorised credit bureau in India such as: CIBIL (TransUnion) Experian Equifax CRIF High Mark Each bureau may calculate the score slightly differently based on their own models. CIBIL Score: Is exclusively issued by TransUnion CIBIL. It is not a general term — it refers only to their calculation of your creditworthiness. Difference Between Score Range Both types of scores typically range from 300 to 900. Higher score = better credit health. While CIBIL and other bureaus use the same range, the actual score may differ slightly for the same individual due to different scoring algorithms. Credit Score Vs CIBIL Score Usage Credit Score: Used broadly by financial institutions and lenders. Depending on their preference, they might refer to the score from any bureau. CIBIL Score: Most commonly requested score in India. Many banks and NBFCs have long-standing partnerships with CIBIL, making it the go-to score for most evaluations. Difference Between the Data Source Credit Score: Based on the credit report maintained by the respective bureau. Each bureau pulls data from lenders, credit card companies, and financial institutions to build their report. CIBIL Score: Based on your Credit Information Report (CIR) maintained by TransUnion CIBIL, which is updated monthly with your credit activity from member institutions. Method of Calculation Credit Score: Since each bureau uses different scoring models, your score may vary from one bureau to another, even with the same data. CIBIL Score: Uses a specific and consistent algorithm by CIBIL, so there’s only one CIBIL score per person at a time. Reputation in India All bureau scores are valid and accepted, but some lenders may give preference to one over the others. CIBIL Score: Has the strongest brand recognition in India. It was India’s first credit bureau, and over the years, it has become the most trusted and widely accepted credit score. How Can I Check my CIBIL Score? You can check your CIBIL or credit score online for free from various platforms. Here's how: To check your CIBIL score: Visit Piramal Finance CIBIL score page. Enter your mobile number and captcha. Click on ‘Get Your Free Credit Report’. Verify the OTP sent on your mobile number. Enter your PAN card details and basic personal information. View your CIBIL score and report. To check your credit score from other bureaus: You can also check credit scores from other bureaus through Piramal Finance like: Experian India Equifax India CRIF FAQs What is a good CIBIL score? A CIBIL score of 750 or above is generally considered good. It improves your chances of getting loans approved at better interest rates. What is a good credit score? Just like the CIBIL score, a credit score of 750+ from any bureau is considered healthy and creditworthy by most financial institutions. What is considered while getting a loan – credit or CIBIL? Lenders consider both terms — but what matters is the credit report from a recognized bureau, most commonly CIBIL. Factors include: Repayment history Loan utilisation Credit mix Recent credit inquiries Length of credit history

08-11-2023