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Personal Loan

5 Dos & Don’ts For Getting a Personal Loan

Whatever the reason, a personal loan can provide instant access to cash. It is a type of loan that does not need any collateral to get approved. You can rely on personal loans for any purpose, be it an unexpected medical bill, tuition, or a family wedding. Here are some things you should and should not do while applying for a personal loan. These will give you a thorough comprehension of personal loans. Also, these dos and don’ts will give you considerations to take into account before applying. [B-01] Personal Loan Dos 1. Assess your reasons for taking a personal loan. You can choose from several different providers and terms when getting a loan. A personal loan can be anything from a small amount to a large sum. Thus, you should consider why you need it and ensure you fully grasp the above. This article will help you easily see the advantages of applying for a personal loan. But, before deciding on a loan type, weigh your options about interest and EMIs. Also, you must consider how much money you can afford to pay back. 2. Check eligibility. You can determine eligibility by consulting your credit records. You can also use a personal loan calculator. This will give you an idea of the range of personal loan offers you might expect to receive from lenders. The amount you get approved for depends on the lending institution and its policies. Yet, this should indicate how much money you could receive from a personal loan. 3. Check the cost of the loan. Interest rates are important. But they shouldn’t be the deciding factor when choosing a lender. Prepayment costs, processing fees, and other fees and penalties may also be applied. They can be applied once you have taken out the personal loan, so be sure to consider those as well. Thus, consider the total cost of the loan, including the interest and any associated fees. Also, consider things like the lender’s reputation and the quality of service you receive. 4. Consider interest rates. There’s not much complexity with this one. Getting an accurate picture of the market’s interest rate landscape is vital. Compare the rates offered by various lenders. A quick search will tell you the current interest rates offered by various lenders. You can also look at online resources that compile data on interest rates. You can combine this data from multiple sources into a single location. But interest rates alone shouldn’t be the deciding factor in choosing a lender. 5. Check your debt-to-income ratio. Evaluating your debt-to-income ratio before applying for a personal loan is important. Simply put, it’s the ratio of your monthly debt payments to your monthly gross income. Debt-to-income ratios above 40% might have a detrimental effect on your credit score. So it’s best to maintain yours below that threshold. It’s also wise to be sure you won’t have any trouble making regular payments after taking out a personal loan. If you take out a personal loan, you’ll need to budget extra money each month to cover the interest you’ll have to pay on top of your other bills. Thus, test this criterion to ensure you can pay your regular bills after getting the loan. Personal Loan Don’ts 1. Don’t ignore your credit score. Applying for a personal loan without checking your credit score can be costly. It is especially vital to consider your credit score if you want a personal loan with a favourable interest rate from the lender. You can incur a higher interest rate if you choose to disregard your credit score. 2. Don’t only opt for the lowest interest rate. Suppose you base your choice of lender just on the interest rate. In that case, you can miss out on other factors that could improve your loan experience. If you don’t choose your lender carefully, you could find yourself paying a lot in Hidden fees Prepayment fees Penalties Other expenses So, choose a lender that provides you with a comprehensive and cost-effective bundle. Do this after carefully considering all the other factors. 3. Don’t apply without assessing your requirements. It’s risky to apply for a personal loan without first determining if you’ll have an abundance of money or not enough. Thus, you risk failing to achieve your goals or overspending because of a surplus of finances. It’s best to take out a loan only for the amount necessary after thoroughly assessing those needs. 4. Don’t borrow from unrecognised lenders. It’s a bad idea to borrow money from somebody you have never heard of. Sometimes the urgency or scope of the need forces us to act hastily, and this can lead to errors with far-reaching consequences. Of course, borrowing money is a serious matter, so make sure you only do it from reputable sources and stay away from deals that sound too good to be true. 5. Don’t use the loan for non-essential spending. Know exactly why you need the money before applying for a loan. A personal loan allows you to use the funds in any way you like. But, it’s best to use the money for the purpose for which you borrowed it. It’s not wise to use the money from the loan on something unnecessary. It’s important to remember that you must pay back any money borrowed. That too, with interest, to the original lender. So it is best to keep your priorities straight and use the loan for necessary expenses only. [B-02] Conclusion A quick personal loan can help people get over unexpected financial hurdles. Yet, borrowers can get the most out of the credit option. They can do so if they pay attention to the dos and don’ts when filling out an application. Borrowers will incur extra costs if they are unaware of the proper procedures. Did you find this article helpful? Visit our blog for much more amazing content!
08-11-2023
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Guide

Home Loan Processing Fee 2022: Fees & charges on housing loans

Home loans are a great facilitator that helps you cover a wide range of requirements, starting from building a house to buying a house. Being one of the best ways to look for, home loans also provide some additional benefits like the flexibility to choose our loan type, tenure of repayment, and other EMI options. However, with so many good things come a bit of fees, charges, and penalties. In every type of loan, there is a considerable amount of fees and charges that are applied to them. Out of many charges that are applied on a housing loan, processing fees are the ones that account for a smaller fraction. This is charged by the lender one time for the entire loan period. Besides a processing charge, there are several other charges like prepayment charges, foreclosure charges, stamp duty charges, and various other types of penalties. Let’s find out all the fees and charges that are associated with a home loan. This article will help you skim through home loans, and the processing fees and other charges involved with them. [B-01] What is a Home Loan and What Purpose Does it Solve? As very much implied by the name itself, a home loan is a financial help that lets you buy or construct a house. Here, a lending institution goes through your documents and credentials carefully to know your repayment ability before sanctioning the loan. The lender, in return, charges a specific rate of interest on the loan amount which you have to repay within a tenure. You have the flexibility in choosing the housing loan type, the principal amount, and the tenure of repayment. Home loans are sanctioned for a longer period of time as compared to other types of loans. The period for a housing loan often ranges between 20 years to 30 years. Monthly EMI is adjusted likewise to help the borrower pay off the instalments conveniently. In India, you can take a home loan for a variety of purposes like buying a house, renovating a house, or even constructing one. Housing loans are secured in nature which means the lender keeps the house until you completely repay the loan. Now that you have known what a home loan is and what purpose it does solve, it’s time to know about the processing fee that comes with it. What is the Home Loan Processing fee that Lenders Charge? With many benefits that a home loan provides, it also comes with some extra charges and fees. Out of several charges that are applied to a home loan, processing fee is one of them. A processing fee is one of the most important and clear charges that the borrower has to carry out one time for the entire loan period. This charge is paid to the banks and the NBFCs to help them deal with your housing loan application form. You have to pay the amount to the financing institution upfront rather than expecting it to be deducted from your loan amount. It is even called an administrative loan by some lending institutions. This charge is only applied to you after your home loan application form is approved. The processing fees of most of the banks are about 1% to 2% of the total loan amount. However, it can go up to 6% in some banks. Since it is also a service charge, you have to pay GST as well. The GST that is charged on the processing fees in India is 18%. However, not every lender charges you a processing fee to cut your extra expenses. Some lenders waive this fee as a special offer to attract more customers. Besides that, these home loan charges are applied to different individuals based on their job profile and employment status. For instance, salaried persons are charged differently than self-employed professionals and self-employed non-professionals. What are the Other Charges and fees that are applied to Home Loans? Besides the processing fees, there are some other charges that are applied to home loans. Some of them are: Prepayment charges These charges are also known as foreclosure charges for preclosure charges. You have to pay this charge only if you pay your loan amount before the tenure gets completed. The amount that is charged for prepaying your loan varies between 2% to 6% of the outstanding loan amount. However, some lenders do not charge any prepayment fees to borrowers for a floating rate of interest. Stamping charges: If there is any legal document between you and your lender that has to be signed on the stamp paper for a home loan, then you have to pay the stamping fees. This charge doesn’t have a fixed number as it depends on the actual costs incurred. Legal fees: As very much implied from the name, legal fees are charged to the borrowers for covering all the legal expenses that are associated with the creation of home loan agreements. Besides these charges, there are several other charges that you have to pay during the entire process of home loan. They are income tax certificate charges, late payment fees, insurance, NOC or NDC charges, inspection fees, etc. [B-02] Summing it up A borrower has to bear several charges ranging from loan-related charges to legal and document-related charges. However, as a borrower, you should be aware of all these charges before applying for a home loan. Without the proper knowledge, these home loan charges might cause you trouble related to expenses if you aren’t prepared beforehand. You should talk to your financial advisor or a bank professional and do ample self-research before going for it. In case you want to know more about home loans, personal loans, car loans, education loans, etc. you should definitely look for it in Piramal Finance.
08-11-2023
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Tax Savings

Home Loan Tax Benefit 2022: Know The Income Tax Benefits on House Loan

The need for housing in India has increased in recent years and it can be done by home loan.Lower mortgage rates, the demand for better housing, government measures, consumers looking to enhance their level of life, and other factors might all contribute to this trend. The government launched a programme named “housing for everyone” in 2012, to complete by 2022. However, because of the extensive Covid-19 epidemic, this lofty target has yet to be met. [B-01] Home loan tax benefits and their importance Many look to the Union Budget yearly for more significant reforms and tax benefits. For as long as the government existed, it has been engaged in the real estate market. According to the Income Tax Act of 1961, consumers who take out housing loans are eligible for various tax credits and deductions. Last year, the government enacted further tax incentives for house loans and interest payments on home loans. These tax incentives will expire on March 31, 2022, but you may still take advantage of them until then. The Minister of Finance has proposed extending the deadline for housing loan tax incentives until March 31, 2024. Mortgages closing in 2022 will be eligible for these home loan tax benefits. The budget benefits the real estate business but also helps those looking to purchase a house. First-time homeowners may deduct mortgage interest. The home loan deduction will be available for interest and principal payments beginning in 2022. Mortgage interest may be deducted from taxable income under Sections 80C and 24(b) of the Income Tax Act. People who take out house loans are provided with tax advantages under Section 80C of the Internal Revenue Code. You may deduct Rs 1.5 lakh from your income tax in 2022 for a housing loan. This deduction may be made once a year from the portion of each mortgage payment that goes toward principal reduction (EMI). However, if the principal amount paid in a single year is less than Rs. 1.5 lakh, only cash payments may be deducted. All registration and stamp duty expenditures paid throughout a fiscal year may be repaid in one payment of the home loan. You may deduct these expenses from your taxable income under Section 80C, but you can only claim Rs. 1.5 lakh per year. According to Section 80C of the Income Tax Act, a home loan deduction may be claimed even if the house is still under construction. To qualify for this deduction, the property in issue must not be listed for sale until the end of the fifth fiscal year after the year it was purchased. If the taxpayer of the home loan sells the property during the first five years of ownership, any deductions claimed on the parcel before the sale are null and void. The amount deducted from the selling price is added to the taxpayer’s taxable income in the year of purchase. Section 24 of the Internal Revenue Code provides tax advantages for homeowners who get mortgages. According to Section 24 of the Internal Revenue Code, homeowners may deduct mortgage interest from their taxes. You may deduct up to two lakh rupees from your monthly taxes to pay off the interest on a housing loan for properties that are still being constructed. However, if the interest paid is less than two lakh rupees, just the interest paid may be deducted. Taxes paid to a municipal corporation by the owner in a particular year may be subtracted. This is true whether or not the deduction was divided into sections. Some homeowners may reduce their tax bill by taking advantage of the advantages available when they rent out their primary residence. The yearly net value of a home loan may be deducted from taxable income at a rate of 30%. A home’s “net yearly value” is the amount left over after paying state and local taxes. You may claim a 30% discount regardless of how much you spent. However, in addition to the standard deduction of 30%, homeowners may deduct mortgage interest as a home loan tax benefit. Non-profits and educational institutions and assets utilised in a trade or company are not eligible for the standard deduction since they have no yearly net worth. Before the Section 24 benefits may be utilised, the building on the land in issue must be completed. This pre-construction contribution is divided into five equal instalments of home loan and Section 24 states that all of them are tax-deductible once the structure is completed. However, these write-offs only apply to mortgages made on or after April 1, 1999. Section 80EE provides tax benefits for first-time homeowners. You may deduct up to Rs. 50,000 in interest each year under Section 80EE of the Internal Revenue Code, which provides tax advantages for house loans. This discount does not apply to residences valued at more than Rs. 45 lakhs. To qualify for this tax advantage, the mortgage amount on your property must be at least Rs. 35 lakhs. This price reduction applies to homes that are still under construction. This promotion validates mortgages closed between April 1, 2016, and March 31, 2017. The house must be the buyer’s first residence at the time the loan is granted. People who take out home loans are eligible for tax breaks. The Union Budget for 2019 contains Section 80EEA tax benefits to stimulate the construction of low-cost housing solutions by Article 80 of the Energy Efficiency and Conservation Act. Homeowners with modest incomes might benefit from an additional tax cut on mortgage interest. This home loan tax benefit is for first-time homeowners whose income falls inside the “affordable housing” level. If you match the conditions, you might earn up to Rs. 1.5 lakh in interest. You must fulfil the following qualifications to be eligible for Section 80EEA low-cost housing: A joint owner’s mortgage interest may be deducted in its whole. Each co-owner may remove their portion of the mortgage interest. They should be making EMI payments for the deduction to be most beneficial for housing loans. Both applicants are eligible for up to Rs. 2 lakh in home loan interest deductions under Section 24. (b). If the principal payments exceed Rs. 1.5 lakh, you may claim a tax deduction of up to Rs. 30,000 under Section 80C. Each applicant may deduct an additional Rs. 1.5 million from their taxable income if they were the first to purchase the property in issue and otherwise satisfy the Section 80EEA conditions. If both borrowers of home loans fulfil the requirements of Sections 24, 80C, and 80EEA, they will each be entitled to an Rs. 10 lakh (Rs. 5 lakhs) yearly tax advantage relating to their house loan. You must have a mortgage loan to qualify for this perk. [B-02] Summing up Many individuals want to possess their own house. Many financial institutions offer a variety of home loans that may help make this goal a reality by providing cheap interest rates, a simple application procedure, and tax incentives. You’ll realise whether a loan is feasible for you and if it will aid in advancing your company’s ambitions. Instead of doing the arithmetic by hand, let technology do it for you. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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Home Loan

Home Renovation Loan: Apply Mortgage Loan for Home Expansion

Want to find the best home renovation loan? Is it good to apply for a home renovation loan? What is the fastest way to get a home renovation loan? A mortgage loan may be used for anything linked to buying real estate, such as constructing a house, purchasing one that has already been constructed, or holding a reserve on an undeveloped property. Most of India’s leading banks provide these loans, commonly known as “home renovation loan.“ Furthermore, home-building loans are not the same as loans for purchasing a home or property. These three sorts of home renovation loan each have their own set of restrictions and criteria and distinct interest rates. There are also several loan repayment terms available. A construction loan is authorized and paid out somewhat differently than a conventional mortgage. [B-01] How would you define a construction loan? Someone who already owns land may get a mortgage to construct a home on it, whether they wish to do it themselves or hire a constructor. These loans are often referred to as “ mortgage loan.” A home renovation loan is when someone borrows money to purchase or construct a house for themselves or their family. This loan may be granted to you provided you put aside a particular percentage of your monthly income to repay it. Most house loans allow consumers to borrow up to 80% of the home’s worth. Section 80C of the Income Tax Act allows you to deduct mortgage interest from your income. Eligibility criteria Everyone wants to buy a home at some time in their life. You’ll need your own home if you want to have a family or operate a professional real estate firm. You can achieve your objective by obtaining a mortgage loan to purchase a house, build a house, or complete a building. Customers may get these loans from various financial organizations, including banks. These home renovation loan may be useful while preparing to settle into a permanent residence. However, you should be aware that construction and mortgage loans are not the same things. Anyone seeking a house loan must fulfill the following criteria: People here range in age from 18 to 65. You must be an Indian citizen, whether you reside in India or not, to be eligible (for NRI). There are both salaried employment and freelancing or contract labor. Excellent credit is defined as a credit score of 750 or better. Minimum monthly salary: 25,000 Indian rupees (about $360). The Required Paperwork You must prove ownership to the lender if you want a loan to build a house on your own land. These are needed with KYC and income proof for a home improvement loan. The owner may own the land outright or have received it from CIDCO or the Delhi Development Authority. A home renovation loan may be feasible if the lease is long and in good standing. Along with the deed, you must produce a certificate certifying the property is lien-free. Before starting construction with a home renovation loan, the gram panchayat must approve the house plans. A civil engineer or architect must also submit a verified cost estimate. If the lender is happy with your overall eligibility and cost estimate, they’ll issue you the loan on the standard terms and conditions. Spending money on extras The desired mortgage loan amount decides how much of the borrower’s money will be utilized to construct the home. This is standard procedure for every mortgage loan. If it applies, the cost of the newly purchased plot will be added to the overall cost of home renovation loan.This would only occur if the land were purchased lately. However, if you inherited the plot, received it as a gift, or purchased it a very, very long time ago, the value or cost of the plot will not be utilized to determine how much you must pay. This holds in all three of these cases. There are a few things to consider while looking for a home renovation loan To calculate the monthly payment, use the following formula: Home renovation loan applicants must agree to make equivalent monthly installments (EMIs), a series of monthly payments covering both the principal and interest on the loan. The most crucial thing is calculating how much EMI you must pay and comparing it to your income. This review might reveal whether or not the consumer can make loan payments with his existing earnings. Rate of Interest: You can acquire a loan for nearly anything, and the interest rates will vary. The interest rate rises as the home renovation loan period lengthen. The correct organization: You can get a home renovation loan from many places, like banks, credit unions, and other financial institutions. If a borrower wants their loan application approved, they should work with a company with a good name. How to Get a home renovation loan effortlessly? If you want a home renovation loan to construct a home on a property you own, you must confirm with the lender that you have the right to own the land. These are necessary for addition to “know your customer” (KYC) and evidence of income. How much can I borrow to construct my house? Some home-buying home renovation loan might cover up to 90% of the home’s worth. Can I receive a mortgage to construct a home before deciding on a location? If you’re still undecided about the property but want to apply for home renovation, it’s better to get pre-approved. Your income, credit score, and other variables determine this loan. They can apply for funds to construct a home if approved for the mortgage loan. [B-02] Conclusion A home renovation loan can be taken out by both current homeowners and new people. Most banks offer this as part of their services for home improvement or home loans. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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Other

How Can I Invest in Gold Online in India?

Gold is a highly coveted metal that everyone considers auspicious. This yellow metal has been there as a precious commodity for a very long time. Previously, gold was used as a medium of exchange for various expensive things. Even today, gold has not lost its worth at all. It is still considered one of the most precious metals on Earth. However, investing in gold has become a new trend in recent times. As gold has a high market price, people have started investing in gold stocks and gold ETFs to multiply their money. As the price of gold has always been on the higher side, it is always a wise move to process an investment. As Indians have been increasing investments in the digital form, this also reflects the financial literacy of the country. This article will help you navigate through gold investment, its features and benefits, and the things you need to know while investing in gold online. [B-01] What is a Gold Stock? Buying physical gold is not always possible for everyone, especially for the sake of investment. Hence, they have started investing in gold online. Gold Exchange Traded Funds (ETFs) are simple to invest in. It combines the simplicity of buying gold with the flexibility of stock investment. It has a lot of benefits starting from easy trading facilities to better outcomes. There are a few requisites that you need to invest in gold online, just like any other share. The primary requirement is to have a Demat account. A Demat account is similar to that a bank account but can only be used for online transactions related to trading and investment. Gold investment in India is highly rewarding. It has given an annual interest rate of about 9.6% over 40 years. As a result, more and more investors have started buying gold stocks. What are the Benefits of Investing in Gold Online? Investing in gold online has a number of benefits, especially since it is more prudential than investing in physical gold. Easily tradable: Physical gold has the major drawback of being unable to be traded easily. Most often, during crises, you would have to settle for lower prices for selling physical gold. However, gold in a digital form has higher liquidity and can be easily traded. Purity as a factor: When you buy gold, you buy them as jewellery. As gold has exceptional softness, pure 24 K gold cannot be used in making jewellery and they are mixed with other metals. But in the case of the digitalised form of gold, you get the price of pure 24K gold. No additional costs: While buying jewellery, you have to bear the additional costs like making charges, which account to be 3% to 25% of the total price of the gold. Whereas, for gold stocks, you don’t have to bear any such costs. So, now that we have cleared the purpose of investing in gold online and its benefits. Now, it’s time to focus on where and how to invest in gold. What is the best possible way to invest in gold online in India? There are three options that you should consider while investing in gold online. They are SBG(Sovereign Gold Bonds), ETF(Exchange Traded Funds), and MCX Gold Contracts. SBGs are provided by the Central Banking Authority under the supervision of RBI, where you can invest in as low as 1 gram of gold. ETFs are traded funds where 1 unit of ETF equals 1 gram of gold. You can also use MCX gold contracts for investing in gold under Multi Commodity Exchange. Now, the best ways to invest in gold online are listed below. Make sure that you have an active Demat account before you decide to invest in gold online. After you have opened your Demat account, you can start buying gold products from different recognised stock exchanges. You can also buy gold through mutual funds for gold ETFs and SBGs. Now, if you want to sell these gold stocks, you can sell them in the secondary market. In case you don’t want to sell them, you can hold onto them until the maturity period. There are multiple corporations and organisations that allow you to buy gold digitally, starting from Rs. 1. Before you start investing, your e-KYC must be completed, updated, and verified. In addition, you have a new option called the video KYC for updating your KYC details. You should be well aware of the risks that are involved in buying and selling gold digitally. You should be aware of the negative growth rates, market volatility, hidden charges, cyber thefts, etc. before jumping ship into this venture. Also, you should understand the nature of the market and be sure about your investment goals. If your understanding of the market is decent and your investment goals are clear and practical, you are bound to make a significant profit from investing in gold online. Gold investment has the benefit during unpredictable situations and improves portfolio diversity. [B-02] In conclusion As gold is a high-performing asset, it is important to know how it behaves in the digital form in the market. As it has outperformed most of the assets in 2022, investing in gold online has gained more trust from investors. In a pandemic like COVID, gold overcame the inflationary trends and ensured financial security for investors. So, with proper know-how and estimation of your risk appetite, investing in gold stocks can be proved to be a prudential investment. If you want to know more about SBGs, ETFs, equity investment, inflation, market volatility, etc. you should visit Piramal Finance.
08-11-2023
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Other

How Can I Create Multiple Sources Of Income In India?

To ensure financial security most people desire multiple sources of income. Secondary income sources need as much of your time or effort as your main source of income. Offering services that people are ready to pay for or investing in avenues that can grow over a period of time are two ways to create multiple sources of income. [B-01] Multiple sources of income in India Earning money from sources where you don’t have to work, such as rental homes or businesses, is known as passive income. Essentially, this is cash you may get without much “active” work. The main goal is to enjoy yourself while earning money through multiple sources of income. To create something that would enable you to earn money later on without doing more labour, you must spend some time or money initially. There are two different passive income streams in India. The Proven Approach Fixed-interest deposits: They help generate interest income. If you increase the principal amount, the interest income will also grow. Rental Income: In India, renting out a property is a great way to earn money. This will help with paying the mortgage and keeping the house in top shape. Dividends From Shares: Shareholders get dividend payments at regular times. It’s important to learn that the amount of money you get depends on the number of shares you own. Real Estate Investment Trusts: “REITs,” is a common name for them. For instance, you own REITs in a company that invests in developing an IT Park. The company also earns rental income from tenants. So, you will receive dividends equal to a portion of the rental income. This is a fantastic source of income. Mutual funds, bonds, futures, and options: Initially, this method doesn’t need a lot of work or resources. However, if you let the amount grow over time, it will start to earn interest for you. Modern Day Approach Creating multiple sources of income involves exploring new online regions through creative thinking. It is sometimes referred to as “online passive income” since it you generate it online. There are many creative ways to make money this way. The following are a few examples: YouTube Videos: Posting videos on your YouTube channel is a good way to make money. You should always publish new videos to stay ahead of the algorithm. This is a reliable source of income. Vlogs: Investing a lot of time, effort, and money in a blog or vlog is not funny. You must work hard for at least two years before you can create multiple sources of income. Online instruction, e-books, forum posts, and periodicals: It takes a lot of time and work to produce a podcast or online course that can be sold. Understanding the basics is crucial in this situation. Affiliate programmes and related projects: Affiliate marketing is a process where you are paid to promote some products or services. You can earn between 3% and 9% if someone clicks on the link and makes a purchase. This source of income is reliable. Internet advertising: Success in business on the internet is challenging. Instead, it ushers in a long and challenging journey. Acquiring the knowledge and skills necessary to make a living takes time and effort. Consequently, many people who want to start their businesses have found legitimate and effective ways to make passive income online. Benefits of Multiple Sources of Income Here are some benefits of having multiple income sources: – You stop focusing on how to provide for your basic needs when you make more money. You may stop looking for a new job if your passive income covers your daily costs. It is feasible to quicken the process of reaching goals. You can easily accomplish major goals like getting a house or car, starting a family, or others. You can work at your convenience, when and where you choose. Your intellect and dedication will influence how well you do financially. You now have more time to engage in your favourite pastimes while not working. You can earn passive income even while you’re not working. As a consequence, you have more time for leisure. You feel more secure when you have passive income, which improves your self-esteem. A safety net, such as passive income, may be helpful if a regular source of income suddenly disappears. Last but not least, your skills can develop to the point where they might be used to help others more effectively. Funding is necessary To make multiple sources of income, you must invest money upfront. Most of the avenues need you to invest some funds, such as buying stocks, bonds, or company shares. It would help if you initially spent a certain sum as then you have more chances to create multiple sources of income. The effect of market conditions Almost all surplus income is very dependent on the status of the market and economy. Both of them respond more to events beyond your control than the goals you set for yourself. For this reason, they are risky ways to make money. For instance, you cannot change the value of the stocks you have bought. Additionally, you need the legal ability to force someone to take up renting. Therefore, changes in the external market might affect multiple sources of income for you. [B-02] Summing up Now you know the benefits of multiple sources of income. Based on your preferences and level of risk-taking, you may choose the one that is best for you. Work toward your goal after deciding how much money you want to make in a certain amount of time. Be bold and choose the most practical way to earn more money. Visit Piramal Finance to gain new skills and knowledge to improve your chances of making money through multiple sources of income.
08-11-2023
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Personal Loan

Get a Instant Personal Loan in One Day – Quick Approval Process

A loan like a personal loan helps you achieve many financial goals and cover your personal needs without causing any financial burden. A personal loan can help you buy a new house, finance your child’s higher education loan, finance a marriage, or even pay your medical bills. It is a widely applied loan scheme that gives borrowers flexible tenures, low-interest rates, and better terms and conditions. With all that being said, a personal loan takes two to three days to be processed. This disbursal period happens to be one of the shortest disbursal periods as compared to all other types of loans. However, can you even fasten this period and cut it down to one day? Well, this article has an elaborate answer to this question. In this article, you will know about personal loans, their features and benefits, and the best way to have them within a single day. [B-01] Personal loan: meaning, significance, and purpose. As the name suggests, a personal loan is financial assistance that you consider applying for from a bank to meet your financial requirements. You borrow a loan amount from the lender by showing some minimum documents and clearing the eligibility criteria. The lender, in return, charges you a rate of interest which you have to pay within one year to five years. Since a personal loan is an unsecured form of loan, the lender doesn’t ask you to pledge any of your assets like properties or shares while availing of this loan. Likewise, you are not answerable to the lender regarding the reason for which you are applying for the loan. What are the features and benefits of applying for a personal loan? While applying for a personal loan is easy and convenient, you have to make sure that you were all aware of all its features and knowledge about the benefits of going for it. No collateral: As a personal loan is unsecured, you don’t need to show any collateral while applying for it. This is advantageous for those borrowers who don’t have a property or any equity to use as a guarantee to avail of this loan. Flexible tenure: Though the tenure of repayment of a personal loan is not as high as a home loan, you can still expect a tenure of about 12 months to 84 months. This repayment period depends on your credentials and the maximum limit that your bank allows. Low-interest rates: Despite being an unsecured loan, the rate of interest in a personal loan is low as compared to other unsecured forms of loan. In India, most banks charge interest rates somewhere between 8% per annum to 25% per annum. If you have a good credit score and a clear loan history, then there are high chances that you will settle for a lower interest rate. Quick approval: As there is a demand for minimum documentation and easy eligibility, you can get the approval within two to three days. As soon as you are approved by your lender, the loan amount gets disbursed into your loan account shortly. As personal loans are approved and disbursed just within a matter of two days, some borrowers even want to fasten the process and cut it down to one day. Is that possible in the case of a personal loan? How to get a personal loan in just a day? While it may sound astray to some readers, sometimes due to emergency conditions, a borrower might need instant finance. Also, fetching money from friends and relatives doesn’t seem a viable option. In that case, a personal loan instantly helps you out. But, before applying for it and expecting it to get disbursed within a day, you need to focus on the following things. Smart comparison of different offers: Despite being in a rush to manage finance anyway as soon as possible, you should not surpass the benefit of comparing different loan offers available to you. You should go through the flexibility in loan tenure, interest rates, flexibility in availing of the loan type, and the additional charges of the loan before applying for it. Focussing your credit score: If you want to get a personal loan instantly, you should make sure that you have a good credit score to pitch for it. In case you are confused about the ideal number, a credit score of 750 or more is considered ideal to avail of a personal loan. Creditworthiness: Your creditworthiness defines whether you are eligible to repay the loan on time or not. Lenders must be ensured about your creditworthiness to sanction you the loan amount within a day. To ensure creditworthiness, you have to ensure that your credit history is clean and your financial muscle can bear the instalments. Application and negotiation: While applying for a personal loan, you must make sure that you fill in all your details properly and submit all the desired documents, including income status, credit history, etc. In addition to that, you should be good with the negotiation part to convince the lender that there are no risks involved. Terms and Conditions: While it is important to get your loan quickly, it is also important to go through the terms and conditions properly. You should know if there are any extra charges like prepayment fees, foreclosure charges, stamp duty, etc. You should know what options, offers, and benefits you get from the lender side as well. [B-02] In conclusion As a personal loan instantly can be highly rewarding and help you fulfil your emergency needs, you shouldn’t prematurely overcome the benefit of going through all the details regarding the loan. You should improve your credit score, focus on your credit history, and ensure your lender that you are capable enough to repay the loan. In case you want to know more about personal loans, personal finance, government subsidies, and different investment schemes, you should visit Piramal Finance.
08-11-2023
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Personal Loan

How Can One Take A Home Loan And A Personal Loan Together?

Loans are the best possible way to meet your requirements without causing much financial distress. A loan helps you in buying a house, financing a wedding, funding higher education, or making a down payment. Different loans serve different purposes a home loan helps you buy a home, whereas a personal loan meets your personal needs. But a dilemma that might hit you is, “Can both of these loans be taken together?” The answer is “yes”, you can take a home loan and a personal loan together. There is no limit on how many loans can be availed simultaneously. You should avail of both these loans only when you need extra funds to meet your housing needs. However, there are certain things that you need to know before going for a double loan. This article will help you navigate through personal loans and home loans and the process of applying for them simultaneously. [B-01] What is a Personal Loan and what are its features? A personal loan, as its name implies, is a loan that you take on the behalf of covering your personal needs like financing a wedding, making a down payment, planning an abroad trip, etc. The lending institution allows you to borrow money with the promise that you have to repay it with an interest rate within a set period. Since a personal loan is an unsecured loan, you don’t have to pledge any of your assets to borrow the loan amount. However, there are certain other credentials like your loan history, and credit score that are taken into consideration. The lender gives you the amount without asking you for the reason for taking the loan. Some of the features of a personal loan are: It is collateral-free. You don’t have to use your assets as a guarantee to repay the loan. It has high flexibility which means you can use it for any purpose like medical emergency, travel, renovation, etc. It has a flexible tenure that ranges between 12 months to 84 months, which prevents you from facing financial stress. The loan amount is quickly disbursed within two days of applying for it. You can ask for a higher loan amount, ranging from 10 lakhs to 40 lakhs. Now that you know about personal loan and their features, it is time to know about home loan and their features. What is a Home Loan and what are its features? A home loan is a financial assistance that you borrow from a lender to buy a new house or a flat. The lender charges you with an interest rate on the principal amount which you have to repay in instalments within a set period. Home loans in India are taken for a variety of reasons like– home construction, home improvement, home extension, etc. There are certain features of a home loan that you need to know before going for it. When you apply for a home loan in a bank, the bank will go through all your property papers thoroughly. This process is known as due diligence of your property to prevent any type of scam. Banks charge a lower rate of interest on home loans compared to other types of loans. You can avail a lot of tax benefits by getting a home loan. Under section 80 C of the Income Tax Act, 1961, you can claim up to INR 1.5 lakhs on the principal amount. Under section 24(b), you can have INR 2 lakhs on interest repayments and several other benefits under sections 80EE, 80EEA, and 80C. How to take Home Loans and Personal Loans together? When a personal loan is mixed with a home loan, you can use it to focus on your interior or process a down payment on your loan amount. However, you have to make sure to the bank that you are capable enough to repay the loan. Here are some things that you need to know while applying for both in tandem. Focussing on your financial muscle: Though taking a home loan and a personal loan together is easy and possible, you have to make sure to the lender that you hold enough financial muscle to tackle the issue. This will build a sense of trust between you and the lender. Improving your credit score: For every loan out there, a good credit score always helps to settle for a fair deal. You need to improve your credit score to get better flexibility options at lower interest rates. According to statistics, 79% of the lenders got a loan with a credit score of about 750 or more. Opt for a joint option: If you borrow the loan with your immediate blood relative, be it your spouse or children, it enhances your ability to repay the loan. A co-borrower increases the eligibility of applying for the loan, and it poses a low risk towards the banks. Look for better terms and conditions: You must look for a personal loan that has better terms and conditions and at the same time, the lender allows you high flexibility. For instance, a “Flexi” option will help you repay the interest on the amount utilised instead of repaying the interest on the total amount. Keep your track record clean: In case you have pending loans, make sure that you clear all the dues and pay the instalments on time. During the time of applying for two loans simultaneously, you can use this as a document to show that you are capable of repaying on time. [B-02] Conclusion Both home loans and personal loans can be taken together to increase the house investment amount. It will help you gain extra leverage as well. Home loans and Personal loans can be obtained from various sources like Private Financiers, Public Banks, Private Banks, Housing Finance Corporations, etc. You will get about 80 percent to 90 percent of the house’s total price as your loan amount and the lender keeps the house until the loan is repaid. However, you must make sure that you have the desired capabilities to repay the loan. If you want to know more about home loans and personal loans, you can visit Piramal Finance.
08-11-2023
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Personal Loan

How can I use my personal loan amount to buy various things this Diwali? 

Diwali is a festival of lights, colour, joy, and happiness that knows no bounds. There is fun and frolic everywhere as this day is awaited every year. As soon as it nears, so will the list of expenses, including delicious cuisines, renovation, decoration, guests, and expensive gifts. Also, if you have a business, you might want to invest in buying raw materials, equipment, hiring employees, etc. To cover all those expenses without any financial assistance, you might face difficulty, especially if the cash flow is not optimum. And in such a scenario, a personal loan comes into play to help you out. You can apply for a personal loan to cover multiple expenses this Diwali and pay it off at a lower interest rate. You can utilise the money even to invest in your business to grow it and take it to another level. A personal loan in India comes with easy EMI options for a reasonable amount of time so that you can repay it conveniently. But is it worth it to apply for a personal loan this Diwali? Let’s find that out through this article. This article is solely dedicated to personal loans, the pros and cons of having a personal loan this Diwali, and how you should use it to gain maximum leverage. [B-01] Significance of taking a personal loan. A personal loan helps you meet your personal requirements, which can be anything like buying a house, making a down payment, financing a wedding, or even planning a trip with your family. It is an unsecured form of loan, which implies that you don’t have to pledge your assets or shares to get a loan. The lender gives you the loan amount and charges you a rate of interest. You have to pay this amount in smaller instalments within a set period. The best reason to fetch a personal loan is that you don’t have to state the reason to your lender about the loan. So, on a festival like Diwali, you can make the most out of this lump sum and buy various things. How should you use this loan amount? There are two broad reasons why you should go for a personal loan. They are: For business purposes. For personal reasons. For Business purposes: Taking a personal loan is a wise move if you want to take a loan to foster your business and invest in it. In case you need a constant flow of cash to supplement your inventory, or you want to advertise your products, a personal loan will help you out. For personal reasons: If you just want to take out a loan to buy expensive gifts, renovate your house, and celebrate Diwali, then you shouldn’t go for a hefty amount. Because, no matter how less the interest rates are, it is still a debt. You would dislike increasing your financial burden just for the sake of short-term pleasures. In case, you are out of funds and you desperately need money, apply for a low loan amount and choose the best interest rate. How to use a personal loan to buy various things this Diwali? There are some things that you should know before you seek to go for a personal loan this Diwali. Keeping an eye on your credit score. Before you go for a personal loan, keep an eye on your credit score. If you have a good credit score, you can use that as a plus point to get a better interest rate with flexible options. If your credit score is more than 750, you can use that amount to get a better deal from different banks and NBFCs. Use it consciously: After getting the loan sanctioned, try not to burn it out in one go. Save some money to use for the later period. In addition, if you blow all your money, you won’t be able to manage it during any sort of crisis. A simple financial shock might cause havoc. So, it is better to be conscious about your money and spend it wisely. Read all the conditions: Before you stumble upon getting a personal loan, make sure that you read all the terms and conditions associated with it. This includes knowing about the flexibility, the tenure, the interest rates, the prepayment and foreclosure charges, etc. You should ensure that you are well aware of everything regarding the credit system. Look for alternatives: It is always not wise to go for the conventional means to get a personal loan. You might have good ties with your bank, but you should also make sure that you look for other options available to you. There are plenty of online options that you can look for. For example, if your bank charges you an interest rate of 15% per annum, an online platform might give you a loan of 12% per annum. Preferring assets over liabilities: Buying an asset is going to give you returns in the future. Whereas liabilities won’t give you any rewards, but rather will add more financial stress. For instance, buying a car or a mobile phone if you already have one, is a liability. On the contrary, buying shares from the stock market or gold investment is an act towards buying assets. [B-02] Summing it up While a personal loan can cover all your requirements, it is important that you must be conscious about your spending. You must try to improve your credit score and go through the terms and conditions of the loan thoroughly. If you want to get a personal loan only to spend it on Diwali, make sure that the amount is not hefty, but rather is payable. If you want to get a loan for investing in your business, you can use that to gain leverage. In case you liked this article and want to read more on personal loans, you should prefer visiting Piramal Finance.
08-11-2023
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