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Business Loan

How Can You Get Secured Business Loans Quickly In India?

If you are planning a new business venture or are already a business owner, you may find yourself in a situation in which you need access to finances. This could include capital to start a business or finances to help your business grow, especially in an unexpected financial crisis. Regardless of the situation, you need to be prepared for unforeseen circumstances. Being prepared with enough finances helps your business to survive, grow and compete effectively. There are usually two ways to get access to finances for your business. You can generate internal funds or look for business loans from external sources such as banks and financial institutions. Since internal funding is not ideal for long-term projects, external funding is considered the best option. A secured business loan is also known as collateralized credit and this type of loan requires a commercial or residential property, a piece of land or a movable object as collateral. The value of the mortgaged asset becomes the deciding factor of a secured business loan. [B-01] What Is a Secured Business Loan? Before learning how to get a secured business loan quickly, it is important to understand all the aspects of this type of business loan. This type of business loan is a scheme that financial institutions provide over tangible assets. Since lenders offer good interest rates for this type of business loan, it is cost-effective, less risky, highly secure and has a longer repayment tenure. Types of Secured Business Loans There are two types of secured business loans: Secured by Collateral: This type of business loan is taken against security in the form of property (owned by the business), vehicles, equipment and more as collateral. Secured by Personal Guarantee: This type of business loan is taken against assets that are owned by the individual, not the business. Features Of Secured Business Loans These are the multiple features of secured business loans: You can use a secured business loan for many purposes including business expansion, purchasing office space or land, enhancing inventory, consolidating debt and more. Secured business loans provide a low rate of interest compared to unsecured loans. Secured business loans may also provide tax benefits, in some cases. Depending on your business need and repayment capacity, you can apply for a secured business loan for a large sum of money. Debt repayment for secured business loans is longer than for unsecured business loans. How To Get a Secured Business Loan Quickly in India You can get a secured business loan in India effortlessly. However, you need to consider some factors to ensure the process is smooth and quick, including: Business Plan A business plan plays a very crucial role in getting a business loan quickly. A business plan is where you state your business goals, the purpose of the loan and its uses to help the lender analyse your need for a loan. Eligibility After the business plan has been prepared, it is essential to check if you are eligible to apply for a secured business loan. The eligibility criteria for secured business loans include: Businesses with limited liability, proprietorship companies and partnership companies. An excellent credit score and a good payback history. Between 21 and 70 years of age. All documents that are related to show adequate cash flow. All documents that are related to the assets being offered as security. Loan Amount Every secured business loan you take acts as a liability to your business. Therefore, opting for an appropriate business loan amount saves you from unnecessary financial burdens and chances of default. Value of Collateral Before applying for a secured business loan, be sure to check the value of the collateral with the lender. Lenders usually approve a secured business loan that is 70-80% of the collateral’s value. Moreover, although loans are offered based on cash flow, debt metrics and your requirements, the market valuation of the security plays a crucial role. Lenders usually grant loans on the loan-to-value ratio and the loan differs based on the property you are pledging for. It is highest for residential house properties and lowest for commercial properties and manufacturing units. Repayment Capacity You have to repay the loan amount borrowed plus the interest charged on the amount. When you negotiate the loan with the lender, ensure that you include a clause on partial or full prepayment of loans. You can use additional cash flow from higher sales to repay the loan, which will mitigate both debt and interest costs for the business. Documents Required For Secured Business Loans Lenders usually look for a clear and marketable title to the security offered for the business loan. They make sure that you are eligible to offer the property for mortgage. So, once you are eligible to get a secured business loan, you need to prepare the financial and personal information documents which should include: IT returns of the last two years (with competition) or CA-audited financials Form 16 KYC documents (such as an Aadhaar card, voter’s ID, passport, etc.) Last six months’ bank statements Documentation concerning the property offered as collateral which should include: Co-applications like spouses or blood relatives Co-owners of the property Names of partners, directors or shareholders Once you have prepared your documentation, you can apply either online or in person in just a few easy steps with your bank or other financial institution who you will be borrowing the loan amount from. Once your documents are verified, the loan amount will be sent to your bank account. [B-02] Conclusion A secured business loan against assets like property or even fixed deposits can help you acquire a low rate of interest, secure a high loan amount and build a good credit score. These loans also help you quickly when you are in financial need for your business. Based on your assets, you may consider applying for secured business loans with collateral or a personal guarantee. To find out more information about how to apply for secured business loans, visit Piramal Finance and read more informative articles on finances for your business.
08-11-2023
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Other

How Does The EMI Break Up Into Principal And Interest?

Do you know the interest and principal of your home loan‘s EMI principal and interest breakup? Do you know how each EMI is split between paying off the principal value and interest? It is essential to know how your EMI breakup calculator is set up. This helps you decide whether or not to repay your loan early, which loan term to choose, along with other things. In this blog, you will learn how your loan principal and interest amount can be calculated from your EMI. You will also learn the different methods of using an EMI calculator. [B-01] Home Loan EMI Calculator When you pay your EMIs, some of it goes towards interest, and the rest goes toward paying off the loan. Each month, you pay down your loan a little bit, and your home loan principal and interest breakup reduces subsequently. You can use the EMI breakup calculator to find the amount due each month. The interest on the loan payment will be higher than the principal part, and the rate at which it decreases will also be lower. Using an EMI breakup calculator is the best way to calculate your monthly loan payments. Let us learn how. How Is EMI Calculated? The principal amount along with the interest rate change with time. The amount of interest is higher in the beginning and gets smaller as time goes on. The EMI breakup calculator is figured out by looking at interest rates, the loan amount, and how long it will take to pay off. Prepayment Of A Loan With A Long Term Many people choose loans with terms of 15 to 20 years. This is because they think that their salaries will go up in the next 4 to 6 years, allowing them to pay off the loan early. In such cases, they pay most of the interest on the loan for the initial few years and not much of the principal. For example, if you take out a loan for Rs. 30 lakhs for 20 years at 10% p.a. and pay it off in 5 years, you will still owe Rs. 27 lakhs, even though you’ve already paid Rs. 17 lakhs in EMIs. The prepayment penalty would be charged on top of that. So, if you take out a long-term loan with the idea that you’ll pay it off quickly, you should think again. This makes sense once your house’s value has gone up and you can earn a good profit. If you take out short-term loans, because they are for a shorter amount of time, a bigger part of your home loan EMI principal and interest breakup. This means you can plan to pay off the loan early if you want to. Using A Calculator To Compute The Loan Interest And Principal Here is how to compute your home loan principal and interest breakup manually. All you need is a pen, paper, and a calculator. Use this formula to figure out your EMI: EMI = P x [R x (1+R)^n]/[{(1+R)^n}-1] Where: P = Principal loan amount R = Periodic interest rate n = Number of months for making payments Once you have calculated the EMI, you can use the following formula to calculate the principal with interest for a given month: Interest component = P x R Using Excel To Calculate The Principal From The EMI Use Excel or Google Sheets and type the following formula to find the amount of principal and interest from your monthly EMI: To calculate the principal for a certain month= PPMT (I,x,n,-p). To calculate the interest type =IPMT (I,x,n,-p). You can also figure out your EMI by= PMT (I,n,-p) (I,n,-p) Where, I= the interest rate each month. x= month number e.g., the 1st month, the 10th month, etc. n= the length of the loan in months. p= the amount you owe. Here is an example to help you understand this concept better. Let’s assume the principal is Rs. 10 lakhs. If your annual interest rate is 12% p.a., the monthly rate is 1%. If the loan will be paid back in 20 years, or 240 months, the EMI will be: =PMT(0.01,240,-1000000), which is Rs. 11,011. The principal amount for the 10th month is =PPMT(0.01, 10, 240, -1000000), which comes to Rs. 1106. The interest amount will be=IPMT(0.01, 10, 240, -1000000), which is Rs. 9905. [B-02] Summing Up By now, you should have a good idea of what loan amortisation is and how home loan EMI principal and interest breakup work. Using an EMI breakup calculator is the best choice to calculate the amount. In this article, it was assumed that the loan was on a “Monthly Reducing Balance.” It is very important to know how your monthly payment is split between paying interest and the loan’s principal value. The points discussed in the article may help you. Choose your decision wisely. There are two ways for calculating your home loan EMI principal and interest payment. You can either use a manual EMI breakup calculator or Excel and keep track of your payments. To learn more about the EMI calculator, visit Piramal Finance and read similar blogs.
08-11-2023
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Stocks Markets

How Does The Share Market Work In India?

When a person hears the words ‘stock market‘, their mind may picture Wall Street in New York. However, the stock market is not confined to one particular location. It is a global phenomenon that has consequences for investors everywhere. India’s stock market is the world’s largest and most liquid stock exchange. The stock market is divided into two segments: capital markets and secondary markets. Capital markets are for listing new stocks, while secondary markets are for trading existing stocks. This article will briefly explain how the Indian stock exchange operates. To help you make a well-informed choice, this article will also cover some potential pitfalls of buying stock. [B-01] What are Trading Stocks? The stock market is a major financial hub. It facilitates the buying and selling of a company’s shares at a predetermined price. To own a portion of a firm is to invest in its shares. Investors put money into a corporation when they purchase shares and withdraw it when they sell shares. The stock market capitalisation of a firm is its overall worth, as measured by the value of all its outstanding shares. Share prices rise and fall according to the demand for and supply of the asset being traded. When there is high demand for a certain stock, its price rises. An increase in a stock’s price is expected if demand exceeds supply. If more shares are available than buyers, the price will go down. Stock Market Pricing The band system is a predetermined pricing structure for the share market in India and is the method by which stock prices are determined. The same normally works according to supply and demand. Investors acquire stock in a firm hoping to make money on the fluctuations in the stock price. A stock’s price rises when demand increases for it. Conversely, when supply exceeds demand, prices drop. To better comprehend the stock market‘s pricing mechanism, consider the following: In the simplest terms, the share market is where companies sell shares to the public. This allows people to invest in these companies and get a piece of their future profit potential. The share price reflects how much the company is worth on the open market and will vary depending on supply and demand. A high demand for shares means that investors are eager to buy them, and a low demand means fewer buyers, which could lead to a lower price. Shares can also be traded on platforms like the Bombay Stock Exchange (BSE) or the National Stock Exchange of India Limited (NSE), allowing investors to buy and sell shares quickly and easily without going through an intermediary such as a broker or dealer. Finally, it is important to remember that no two markets are ever identical, so what works in one country may not work in another. It is therefore important to research your specific investment before making any decisions. Indian Stock Market Investment Steps To get you started on investment, here are 5 steps: Step 1: Analyze your investment objectives carefully. You must ensure that the stock you are considering investing in will serve your long-term financial goals. Step 2: Consider your risk tolerance. It is important to understand how much risk you are willing to take when investing in the Indian stock market. With so many potential scams and risky investments on the market, it is important to do your research before deciding. Step 3: Obtain professional advice. It is always a good idea to consult an independent financial advisor before making investment decisions. They can help and guide you through the entire process and ensure you get the most out of your money. Step 4: Look for quality stocks. When investing in the Indian stock market, make sure you are selecting quality companies that have strong fundamentals. Look for companies with positive earnings growth, low debt levels and a healthy balance sheet. Step 5: Stay disciplined. One of an investor’s biggest mistakes when investing in the Indian stock market is being too aggressive too quickly. Taking on too much risk can quickly result in losses, so it is important to stick to a gradual investment strategy if possible. Types of Indian Stockbrokers There are several types of stockbrokers in India: Full-service brokers offer comprehensive services such as margin trading, day trading, foreign exchange services and mutual fund investments. NBFC-based brokers are essentially platforms that connect investors with participating NBFCs. They offer lower costs than full-service brokers but lack support for margin trading and other advanced services. Online brokerages are a recent development in the Indian markets and offer a simplified investing experience compared to traditional brokerages. Key Concepts Here are 4 important concepts you need to know about the share market in India: Stock: A stock is an ownership interest in a company or enterprise. It may be traded on a stock market which is a marketplace where stocks and other securities are bought and sold. The value of a stock depends on the company’s financial condition, its prospects and the actions of its shareholders (owners of the stock). Shareholders: A shareholder is an individual or organisation with an ownership interest in a company. A shareholder may hold shares directly or through one or more beneficial owners. Shareholders have two primary goals: to maximise their return on investment (ROI) and to protect their rights. Investment: Investment is the purchase of equity in a company, which may bear risks such as loss of money if the company fails. The purpose of investment is to generate capital gains or losses over time, which can be used to increase one’s wealth and/or pay taxes. Financial statements: Financial statements show whether a company is healthy and solvent by revealing its assets, liabilities, expenses, profits and cash flow. Financial statements also provide information about how much money shareholders have left after paying taxes, dividends and other payments to holders of common stock (the main class of shares), which helps gauge overall investor sentiment about the company. [B-02] Conclusion Understanding how the share market in India works can be challenging at first, but understanding will be easy with little effort. The share market works in India as it does in other countries, i.e., the investor buys and sells shares of a company through the exchange, which creates liquidity for the stocks. This liquidity then drives the prices up and down. To read more information on trading in India’s stock markets, you can read more helpful articles like this one by visiting Piramal Finance and receiving guidance on getting started on your investments.
08-11-2023
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Tax

How Much Tax is Paid on Bond Investment?

Taxable bonds are great investments. They’re relatively low-risk, provide income in the form of interest, and offer a guaranteed return when you purchase them. But what happens if you sell the bond before it matures? When deciding how much of their portfolio to invest in bonds, traders consider several things, including coupon payments, lock-in periods, etc. However, tax on bonds is the single most crucial consideration when buying these financial instruments. Before making a bond investment, it’s important to understand the potential benefits and tax implications, as these factors vary depending on the bond’s composition and the length of time it will be held. [B-01] Taxation of Bonds There are two methods for bondholders to profit from their investments: interest and appreciation in value. Unless otherwise stated, bond interest is usually taxed. If a bond were tax-exempt or eligible for capital gains exclusion, its name would reflect that. Taxable Bond Taxable bonds are debt securities whose yield to the investor is taxed at either the state or federal level. When deciding between a taxable bond and a tax-exempt bond, investors should consider their after-tax income. The interest charged on a corporate bond is taxable, as are any capital gains or losses realized from selling the bond early, and any original issue discount received is also taxable. A corporate bond’s overall tax liability is the sum of its constituent parts’ individual tax liabilities. Interest: Income earned from a company bond is taxable at federal and state levels. Generally speaking, this tax rate applies to a typical corporate bond. Capital Gains: Capital gains taxes are less common than interest taxes since an investor can only realize capital gains on a corporate bond by selling the bond before maturity. Until the bond reaches maturity, any gain from selling it is considered capital gain and must be taxed at the investor’s regular income tax rate. Issue Discount: It is not uncommon for bonds to be issued at a price well below their face value. The tax liability associated with the original issue discount resulting from the purchase of a zero coupon bond is the amount by which the offer price exceeds the bond’s par value. Regular Taxable Bonds The word “tax” in these bonds should give you a clue about their status. These bonds offer the opportunity for both capital gains and interest. When an investment matures, the investor reaps capital gains. Capital gains are the profit made from selling an asset, such as a bond, over and above the initial investment. Any profit from selling these bonds can be classified as either long-term or short-term. If you hold listed bonds for longer than a year, you will receive LTCG on your realized returns. Investors who sell bonds after holding them for less than a year pocket short-term capital gains. Both short-term and long-term capital gains are subject to taxation; however, the former is taxed at 10 per cent without indexation. Any profits made from the sale of unlisted bonds after a holding period of more than three years are considered long-term capital gains. With no adjustments for inflation, the tax rate is 20%. Gains from investments held for less than 36 months are subject to taxation as short-term capital gains at the individual’s marginal tax rate. Tax-Free Bonds These bonds are issued by governments and public-sector organizations (PSUs) to fund many important initiatives. Highways, trains, ports, urban and rural development, etc., are all funded thanks to tax-free bonds issued by the government. The interest earned on these investments is tax-free for the investor. However, depending on how long you keep onto the bonds before they mature or are sold. The income you receive from them will be treated as either a long-term capital gain or a short-term capital loss. Features Of Tax-Free Bonds These bonds accrue interest once yearly at a rate set by the federal government. None of the interest you earn will be subject to taxes. Government bonds that don’t incur taxes are typically purchased for a very long time horizon. You can choose a bond maturity of 10, 15, or 20 years according to your preferences. These bonds are highly liquid, meaning they can be bought and sold at any moment at the current market price. However, under the IT Act, you will be required to pay taxes on any gain from selling these bonds. Bonds can be held either physically or digitally. You can make a direct transaction or use your Demat account to purchase. Tax-Saving Bonds The government’s tax-saving bond program is a fantastic resource for those looking to set money aside for future tax obligations. The Income Tax Act recognizes them as unique papers that may be used to reduce a taxpayer’s taxable income. This bond is subject to a 5-year lock-in requirement. Anyone who owns a piece of real estate, a building, or another long-term capital asset can invest in these bonds and reduce their taxable income. The money they get from selling these things can be put into 54EC bonds. An investor in these bonds will pay no long-term capital gains tax. However, the 6-month waiting period between the sale and the investment is non-negotiable if you want to take advantage of this tax benefit. There is the potential for capital gains for investors. Long-term capital gains are taxed differently than short-term ones. The government also provides annual deductions for investments of up to Rs. 20,000. This amount exceeds the Rs. 1.5 lakh limit u/s 80C allows for tax savings. NHAI, REC, and PFC can issue 54EC bonds. Zero-Coupon Bonds When you purchase a bond, you will get regular interest payments or coupons at regular intervals. When issued, zero-coupon bonds are typically sold at a steep discount because of their lack of interest payments. When the investment matures, the investor will receive the full face value. [B-02] Conclusion Bonds are a safer investment option because of their consistent and predictable yields. Before jumping in, investors should research how different bonds are taxed and how the laws might change. We hope you have an improved grasp of RBI Taxable Bonds techniques for your financial goals. The article has provided a detailed preview of how various taxable bonds are taxed. Read more at Piramal.
08-11-2023
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Personal Loan

Easy Tips to Choose The Right Personal Loan Tenure

Are you having trouble paying your bills and needing access to funds immediately to get out of a financial crisis? Plan to ask a family member for a favour? Don’t! To meet the need, you can opt for a personal loan, which will cost you the least amount of interest. But before you apply for a personal loan, you should know a few things, and personal loan tenure is one of them. Since interest is paid on the principal balance, the time it takes to pay back a personal loan is a key factor in figuring out the interest. It also affects your monthly payments. The shorter the personal loan tenure, the higher the monthly payments, and vice versa. Read on to learn how to wisely choose a personal loan tenure to get the most out of it. Before going any further, let’s define personal loan tenure in simple terms. [B-01] Meaning of personal loan tenure For someone who has never taken out a personal loan before, it’s important to know how they work. One of the most important parts is the personal loan tenure. So, what is the personal loan tenure? It is when you must pay back the loan to the lender. EMIs are paid on a set date every month and are used to pay back the loan. A lender can give you a loan for a long or short time. But in the end, it is up to you to decide how long it will last. The shortest personal loan tenure is 6 months, and the longest is 60 months. Importance of the Correct Personal Loan Tenure Choosing the correct tenure saves you money. It makes your monthly instalment payments manageable and doesn’t strain your budget. Here are some of the other good things about it: It enables you to establish a favorable credit score. This makes getting good loan rates easier. Lenders may use this information to evaluate how well you repay debt. 6 easy steps to choose the correct personal loan tenure Monitor your monthly budget and spending. One of the most important things to consider when choosing a personal loan tenure is how much it will cost each month. All you have to do is write down what you spend each month and subtract that amount from what you earn each month. Now, look at how much money you will have left and how much you will need to save for future costs. The amount left over is what you’ll pay each month as your EMI. Choose an EMI that fits easily into your budget, and never take on more than you can handle. Understanding with examples Let’s assume Rekha wants to apply for a personal loan. She makes Rs. 40,000 a month. Her expenditures each month come to Rs. 20,000. So, after saving, the best monthly payment will be between Rs. 5,000 and Rs. 10,000. Pay attention to future possibilities. Whether you have a job or run your own business, there comes a time when you can get a raise or grow your business. So, if you expect your salary to go up shortly, you will have more room to pay the higher EMI amount. This way, you’ll not only pay off the debt faster, but you’ll also save a lot of money on interest costs. Understanding with examples Let’s extend the above example. Rebecca received a promotion of Rs. 10,000. Now, she earns Rs. 60,000 a month and still spends Rs. 28,000. Now, it won’t be hard for her to pay an EMI of up to Rs. 20,000. This will reduce the personal loan tenure to a certain number of months and lower the interest rate. Consider your current liabilities. When you have other financial obligations, taking those into account can also help you choose the right personal loan tenure. Most of the time, you must consider other loans, credit card payments, rent, school costs, and others. Make sure you pick a term that lets you meet all your obligations without too much trouble. Use spreadsheets and the right formulas to get a clear picture of what needs to be done. Loan Amount How long you have to repay a personal loan depends greatly on how much you want to borrow. If you want to borrow a small amount, like 2-3 times your monthly earnings, you should aim for a shorter personal loan tenure. This is because a longer term will cost you more in interest. Also, if you want to finance a large amount of money that is 6–8 times your earnings, you should choose a longer term. Choosing a short personal loan tenure puts pressure on your finances and could lead to a mistake, which is even riskier. Determine interest rates. Personal loan interest rates depend on your credit score, which also affects whether or not you can get a personal loan. Aside from your credit score, the time you choose to repay the loan also affects the interest rate. Most of the time, interest rates are lower for loans with shorter terms and higher for loans with longer terms. If you’re given a lower interest rate depending on your credit score, choose a shorter term to save on interest. If you have a low credit score, choose a longer term since a shorter personal loan tenure with more interest would hurt your budget. By choosing a longer term, you can also enhance your credit score, which will help you get loans in the future. Use an EMI calculator. If you still can’t decide on personal loan tenure, you can use an EMI calculator. A simple, free online calculator can help determine how long the loan will last and how much the EMI will be. Change the loan term and EMI formula to get the best monthly payment. With the help of a personal loan EMI calculator, you can figure out how much you will pay in interest and how much you will pay overall (interest plus principal). You can also combine different loan terms with the recommended loan amount to find the personal loan tenure that works best for you. [B-02] Wrapping Up Personal loans are the simplest type of loan. They are also easier to get approved for than other types of loans. But before deciding on a personal loan tenure, you should weigh the pros and cons of each. You must also read the loan terms carefully. No matter what repayment term you choose, stick to the due dates to avoid any extra trouble. If you want to know more about choosing the right personal loan tenure, visit Piramal Finance for more blogs like this.
08-11-2023
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Personal Finance

How personal loan helps you in a medical emergency: All you need to know

A medical emergency could happen at any time and any place. People belonging to middle-class families may not be able to get treatment if they don’t have access to free healthcare, especially for serious or life-threatening illnesses that require hospitalization. This is especially true for diseases like cancer and heart disease. This is where personal loans play an important role. Nearly 30% of Indians do not have health insurance. During a medical crisis, people often find that they do not have enough money to pay their medical bills. In this situation, a personal loan could be very helpful. A personal loan, which is unsecured credit and can be given immediately without any paperwork, can be used to pay for anything, even an unexpected medical bill. The applicant can fill out a personal loan application online. They can do that if it is easier for you to send all your proof documents by email. Once all the supporting documents and other information have been reviewed, the loan money can be put into the applicant’s bank account. Depending on the borrower’s money, the personal loans may be paid back in monthly instalments. [B-01] Eligibility Employees who get paid by public organisations and Limited Liability Companies (LLCs) (including central, state and local bodies) To be eligible for a personal loan, the applicant must be between 21 and 60 years old. The applicant must have worked in their current position for at least two years. Those who are self-employed must prove that they make at least (may vary with location) Rs 15,000 every month. The bank may ask for their tax returns and bank statements to confirm that they have a steady income. Documents Photos of identity documents like a passport, driver’s licence or Aadhaar card. A photocopy of a government-issued photo ID card like a passport, voter card, driver’s licence or Aadhaar card. Report from a financial company for the last three months (Passbook for previous six months) The applicant needs recent Form 16 Proof of end Use, two recent pay stubs, or a valid wage certificate. How to get a personal loan to pay for medical bills? If you apply for a personal loan with us, you won’t have to borrow money from friends and family to pay for unplanned medical costs. If you need to borrow money for a medical emergency, Piramal Finance can help. The loan request is reviewed as soon as possible and the loan is given to you. The first and most important step in getting a personal loan is figuring out what you need the money for. This way, you can only borrow what you need. To get a personal loan from Piramal Finance to pay for unplanned medical costs, follow these steps: Tell us a little about yourself, for example, what you do for a living and how much money you make every month. Tell us how much money you want to borrow and for how long, and you’ll get a decision from us right away. Give our agents the information they need to contact you. If your application is approved, the loan money will be sent to your account the next business day. Your CIBIL score may show if you have good credit risk and have repaid loans on time. If your CIBIL Score is good, your loan application will likely be approved quickly and with a fair interest rate for your loans. Why would you take personal loans in case of a medical emergency? A personal loan can be used for anything the borrower wants, including paying for immediate medical needs (like hospital bills), ongoing medical care (like prescription drugs and physical therapy), and any travel needed for medical treatment. A personal loan is a great way to pay medical bills for more than one reason. Payments are made quickly, and approval is easy If the paperwork is done right, a personal loan may be quickly approved and the borrower may find it easy to get the money. When a borrower contacts a reputable lender about getting a personal loan EMI to cover an unexpected medical expense, the lender will provide the loan as quickly as possible so that the patient can get the best treatment quickly. You will get the best possible medical care. You can use the money from a personal loan for anything, like medical care for yourself or a family member. With the help of a personal loan, you or a family member can get expensive medical care and medicines. Personal loan is a safe option A personal loan without collateral may be your best option if you do not have many valuable things to use as security. It may be difficult for some to find and pledge collateral if they are at the hospital taking care of a sick family member. Lenders decide whether to give a personal loan for a medical emergency based on the borrower’s credit history and CIBIL score. These things show how careful the borrower has been with money. Easy documentation When a family member is sick, the last thing someone would want to do is fill out a lot of paperwork. To start with, you do not have to complete much paperwork for a personal loan. This is one way that this type of loan is better than others. Customers must provide the standard “Know Your Customers” (KYC) documents, such as their CIBIL Score, proof of residency, bank account information, Aadhaar or PAN cards, and proof of income or company revenue. If the application process can be done online, the borrower may not even have to meet with the lender. Conserves reserves to guarantee financial stability Most Indians belonging to the middle class do not have enough savings and can only plan for the future with the money they have in the present. A patient who is required to pay expensive medical bills can end up in a financial crisis. A personal loan can be paid back with a person’s regular monthly income. So the person can save money. The borrower may keep more money than the loan amount to pay for medical costs. Keep your long-term financial plan in mind A big medical bill can quickly throw off a person’s financial plan because they may need to take money out of their regular investments, like systematic investment plans and insurance premiums. After getting a personal loan, it may become easier for them to reach their financial goals and keep track of their money. Multiple ways of repaying If borrowers have trouble paying back their loans, they may be able to change their repayment terms to lower their monthly payments. In this case, the borrower can repay the principal and interest of the personal loan at once or over a longer period. This makes it easier for them to keep track of their cash flow. If possible, one can also download a personal loan app to check all details of their loan. Conclusion A personal loan can help you pay for unexpectedly high medical bills. In such a case, a trusted lender like Piramal Finance can approve the loan quickly. Piramal Finance helps people who need a low-interest personal loan for medical reasons. They have an easy online application process. People often need money quickly to pay a medical bill. Thus, Piramal Finance approves these loans as quickly as possible so that the borrower, who may be worried about their health or that of a loved one, can get treated soon.
08-11-2023
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Personal Loan

Do’s & Don’ts of Repaying Your Personal Loan Early

Are you in a hurry to repay your personal loan? Being debt free can be financially liberating for you. However, rushing into repaying the personal loan should not boost your stress. Personal loans are an easy and good way to solve any financial crisis. Due to the ease of availing funds, several people jump on the chance of getting one. But investing a massive amount to clear a personal loan can cause trouble. Especially, if you have more than one debt. Some debts you might have are student loans, credit cards, and home loans. Read on to explore the dos and don’ts of repaying your personal loan early. [B-01] Things You Should Do When Repaying Your Personal Loan Early Personal loans are hassle-free when compared to other options. But if you are repaying your personal loan before the loan tenure ends, consider these aspects for better financial management: Plan Your Finances Have you planned the extra finances required for repaying your personal loan in one go? Clearing the entire loan amount will require ample funds to ensure your other expenses are manageable. For example, you must have sufficient funds to manage your daily expenses and additional debt repayments. If you get a big paycheck every month, things might be different for you. But if you plan to use your savings to repay the personal loan, you must ensure enough funds after paying the entire loan amount. Avoiding the extra interest changes might excite you. Yet you need to save enough for any urgent needs. You can avoid increasing your debts this way. Talk to Your Lender Talking to your lender and informing them that you plan to repay the personal loan early will help avoid surprises. Some lenders might not allow you to repay your personal loan early. In addition, some even have additional charges for prepayment. Read the terms and rules of the personal loan before making a decision. Knowing the policies will help you know more about the contract you signed with the lender. Suppose your lender is charging an additional cost for repaying the personal loan amount early. In that case, you can replan your budget. Always know the exact loan amount you have to pay the lender. The best way to learn about your repayment options is by contacting the lender. Prepare a Budget Before repaying your personal loan, prepare a budget. Depending on your needs, you can opt for quarterly, monthly or annual funding. Plan a budget according to your monthly expenses. Your daily expenses, like groceries, housing bills, rent, etc., should be fine if you decide to repay your loan early. The bare essentials you cannot live without, like shelter, food and security, must be given priority when you plan your pre-payment. In addition, you also need to save money for any other debts you may have. While repaying your personal loan early, you must make sure other debt payments are completed on time. If not, this may harm your credit score. Maintaining a good credit score is vital to avail of beneficial loan offers in the future. Mistakes to Avoid While Repaying Your Personal Loan Avoiding the following mistakes is crucial to secure your financial future: Do Not Use Your Retirement Fund For Debt Repayment Your retirement fund is the security net for your old age. Remember that as you get old, you will need more assistance, like personal care to ensure your safety. In addition, retirement life can surprise you with urgent medical expenses or bills. But not having a steady source of income might restrict you from taking up a personal loan even if you qualify for one. Generally, lenders and banks do not offer personal loans to people over 50. This is because senior citizens might not be able to pay the loan. This can cause losses to the lender or bank. Therefore, do not make the mistake of spending your retirement funds because you are in a hurry to become debt-free. Plan your expenses wisely and only opt for prepayment when you have enough savings or a good income source. Avoid Repaying Your Personal Loan Towards The End Commonly, there are two reasons for repaying your personal loan early. First, you want to spend on something other than the heavy interest rates. The other one is you want to become debt free as soon as possible. But clearing the entire personal loan amount towards the end might be a mistake. Suppose you want to save the extra money spent on the interest rate. In that case, you must repay the entire amount at the beginning or earlier. Paying the remaining amount towards the end will not help you save any amount on the interest. Instead, if you have only a few payments left, ensure to pay them in instalments and be consistent. Repaying your personal loan EMIs on time or prepaying the entire amount will help improve your credit score and avail additional benefits from the lender. Do Not Overthink Paying the entire personal loan amount will have several benefits if you’re doing it early on. If you have calculated your net income and have enough savings set aside, feel free to take this step. Overthinking about repaying your personal loan will only cause delay. Before you know it, you will end your loan tenure with a few repayments. After that, there is no point in rushing your personal loan as it will not improve your credit score. Every time you delay your decision to pay the loan, you will spend extra money on the interest. Once you have planned your finances well and talked to your lender, go for the early repayment without any hesitation. [B-02] Conclusion Now that you have all the necessary pointers about repaying your personal loan early, you can make a well-informed decision. Conducting proper research before repaying your personal loan is necessary. It is always better to talk to your lender before repaying your personal. This way, you can avoid any additional charges. Besides, your lender can advise you on what is best for your situation. To learn more about repaying personal loans, visit the Piramal Finance website today. You may also explore their products and services to take care of your money needs.
08-11-2023
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Personal Loan

Types of Loans, Eligibility, Documents and Benefits

The expansion of the finance market and improvements in technology have made it easy and digital to get a loan. You don’t even have to go to the bank branch these days to get a loan. You can use the Internet to apply for all types of loans from the comfort of your office or home. After you send in your paperwork, the loan is approved and put into your account within a few days. Read on to learn more about the different types of loans that are available for you to choose from. [B-01] Types of loans There are many types of loans. Secured and unsecured are two categories of loans. Based on these categories, types of loans include home, auto, gold, and personal loans. Home Loans Home loans are well-known types of loans used to purchase a home. Home loans are secured loans, and the legal papers of the home are bought to serve as security or collateral. Most home loans are given for 20 or 25 years. A home loan can last no longer than 30 years. When you apply for a home loan, you can get a tax break on the interest you pay on the loan. Also, a home loan has the lowest interest rate of all bank loans. The interest rate on a home loan ranges from 7% to 14%. Loans for Education These types of loans cover the costs of going to college. If you already have the skills for a degree but don’t have the money to get it, adding it to your CV could help you get a good job. Personal Loans These types of loans can be used for multiple purposes. Personal loans can be used for many things, like weddings, home repairs, trips, medical emergencies, etc. Personal loans have higher interest rates than loans that are backed by a security. In India, weddings are big events, and many people take out loans to prepare for their weddings. The interest rate is between 10% and 20% p.a. Auto Loans These types of loans can be used to buy a car, a two-wheeler, or a commercial vehicle for personal use. Most of the time, these are for a maximum of five years. And they have a higher rate of interest than a home loan. The interest rate on a car loan starts at 7% p.a. and varies across lenders. Consumer durables loans Durable consumer loans are used to buy things like electrical appliances, air conditioners, and coolers that will last a long time. Most lenders offer these loans at 0% interest, which makes them easier to repay. Gold Loans It is a loan that is backed up by gold. Gold loans can be used for anything, like a medical emergency, a wedding, or the start of a business. Most gold loans have interest rates between 10% and 26%. Working Capital Loan It’s a loan that doesn’t require collateral and is used to meet everyday business needs. Most of the time, these are short-term loans that can take up to a year to pay back. Working capital loans typically come with a higher interest rate than term loans. Loan for a set amount of time A loan is given for a set amount of time and has a fixed EMI. This financing is necessary when investing in a long-term asset or expanding into a commercial space. The interest rate may be fixed or change over time, depending on what the lender and borrower agree to. Eligibility for Common Types of Loans How do you find out if you can get a loan? The requirements for qualification change depending on the types of loans you hope to obtain. You can use the criteria listed below to see if you are eligible: Credit score above 750. Age between 21 and 60, Assets to use as collateral include fixed deposits, insurance policies, real estate that can’t be moved, bonds, gold, and so on. Having a good relationship with your bank or lender. History of payments. Monthly salary of more than Rs. 15,000 to Rs. 25,000. How Can I Get a Loan? Today, getting a loan is easy and doesn’t take much time. All you have to do is follow the steps below: – Choose the lender you want to get the loan from based on what you’ve learned. Also, make sure you meet the requirements. To apply for the loan, you can go to the lender’s branch or website. Gather all the paperwork and proof you need to apply for the loan and send it in. The bank or lender will let you know the status of your loan application within a certain amount of time. Have a plan for how you’ll spend the money and how you’ll pay it back before you commit to a loan. Think through the benefits and drawbacks of each option you’re considering. Get quotes from different banks and lenders, and compare interest rates and loan terms. Before deciding, you should also consider the fees and penalties. You can talk to an expert or a friend to determine which loan is best for you. Banks have experts who can help you choose a loan that fits your needs. Loan payments should be made on time because missing payments will hurt your credit rating and make it harder for you to get loans in the future. The only way to make a good choice is to do research and think things through. A loan can help you get started on your journey or make your dreams come true, but it can do the opposite if you don’t pay it back. So, choose wisely! Advantages of a Loan A loan can be used for many different things. With the help of a loan, you can pay for anything, from a house to education. Interest rates are set based on the repo rate set by the RBI. Instead of putting up security, you can also use a guarantee from a third party. Most of the time, the loan is paid back in EMIs spread out over the length of the loan. You can choose the repayment time at your convenience. You can easily get various types of loans online these days. [B-02] Conclusion To summarise, there are numerous bank loan options to suit a variety of situations. Even so, there’s no harm in taking out a loan if you need money for something unexpected. But before you take out a loan, you need to make sure you can pay it back on time. If you don’t, you could hurt your credit score. Check out the Piramal Finance blog section for more information regarding loans and other financial tools.
08-11-2023
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Personal Loan

Document List to Get Paperless Online Personal Loan

Personal loans are unprotected loans by nature. It implies that as a borrower, you are not needed to pledge any assets as collateral for the loan. So, how do NBFCs issue loans in the absence of collateral? They ask for various papers that are needed during the lending process. Personal loan paperwork is what they’re called. Every lender has a list of online personal loan documents that must be given when applying for a loan. [B-01] What Exactly is a Paperless Loan? A paperless loan takes place between a lender and a borrower online. Since it is done online, this form of loan is simpler and faster to handle. No extra time or effort is spent on paperwork processes. You may apply for paperless loans online by visiting the bank’s website. Some banks also offer online calculators that give an idea of data like EMI, net outflow, etc. What Exactly Are Personal Loan Documents? Asking for a loan is no longer a time-consuming process. Gone are the days when you had to file a loan request and then wait for a response from the lender before starting to prepare loan documents. You may now use a personal loan app to apply for fast and easy loans. All you need is a set of papers that must be submitted to the app. These are the terms of your personal loan. The papers will validate your identification, place of residence, job status, and income. What Are The Documents Needed For a Paperless Online Personal Loan? Paperless personal loans are easy and quick to apply for. However, to get the loan money, you need to provide some papers to the firm. These papers state that the applicant is a bona fide borrower capable of repaying the loan amount. This is vital. You must provide digital copies of these papers and allow the lender to verify them. With the e-sign feature, you may sign the papers digitally. This further contributes towards making the process paperless. The following papers are needed for paperless online personal loans: Identity verification (PAN Card, Voter ID, Aadhar Card, etc.) Address verification (Aadhar Card, Passport, Voter ID, utility bill, etc.) Bank records (digital copies of the most recent bank statements obtained via one’s bank account) Salary statements (Online copies of payslips received from the employer) If you have only physical copies of these papers, scan and submit them online. These papers will be collected by the firm and stored on a secure server. Eligibility for a Paperless Personal Loan Online Everyone has access to and may get online paperless loans. However, several basic qualifying terms must be met to get a paperless personal loan online. You must be an Indian citizen to be eligible for an online paperless loan. You must be at least 21 years old to get a paperless loan. To register, you must have a valid PAN Card. Proof of your current address is also needed. You can submit utility bills (electricity, water, telephone), a rent agreement, a bank passbook, or a domicile certificate for this. For proof of identity, you can submit a scanned copy of your Aadhar Card, driving licence, passport, Voter ID, PAN Card, etc. Photos of papers are needed to complete a mandated KYC procedure. You must have a source of income. You must report your income. However, online lenders do not demand proof of source of income. Your source of income will guarantee that you can repay your loan. It is difficult for those who do not have a steady source of income to get a quick paperless loan. Benefits of Paperless Online Personal Loans Apart from being easily accessible, the paperless loan offers other benefits. It can assist you in any moment of crisis. With a few taps on your mobile phone, you may acquire a fast paperless online personal loan. It’s a simple process that doesn’t need any proof of salary. There is no need to go anywhere. There is no need to produce any physical paperwork or documents. Higher approval rates when compared to conventional loans. The decision regarding your paperless loan request is made in less than a minute. You will not have to wait long to learn the status of your request. Both borrowers and the environment benefit from paperless online personal loans. It lowers the carbon impact by conserving paper. Paperless online loans decrease the amount of time taken in the loan request and approval process. Getting an internet loan is more secure than obtaining a physical loan. Your paperwork and data are safer online. How Can You Get Lower Personal Loan Interest Rates? When applying for a personal loan online, there are a few things to keep in mind to assist you in getting a lower interest rate. Among these are the following: Enhance Your Credit Score A good credit score indicates a person’s creditworthiness. Lenders will offer you a cheaper interest rate if you have a good credit score. So, verify your credit score before applying for a personal loan online. Do Not Miss Repayments When you fail to make credit card or loan payments, your credit score suffers. Before settling on an interest rate for an online personal loan, lenders often analyse your repayment history. If you have made on-time payments earlier, you are more likely to incur a reduced interest rate. Keep An Eye Out For Special Offers During holidays, banks usually provide special interest rates. If you apply for a loan while such offers are open, you may be given a cheaper interest rate. It is important to stay aware of any such offers as they only last for a limited period. [B-02] Conclusion A paperless and fast loan may give you cash right now. You may get money anytime, and anywhere. The money will be deposited immediately into your bank account. It is secure to utilise online paperless personal loan programmes. They guarantee the safety of your data. Online personal loans are available at daily interest rates. You must pay interest on the cash only on the day it is used. After that, you may refund it whenever you choose and save on the interest. If you want to know more about online personal loans, visit Piramal Finance. You may also explore their products and services.
08-11-2023
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