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Personal Loan

Questions To Ask Before You Take Out A Personal Loan

A personal loan may be the way to go if you’re in a bind and can’t come up with the cash immediately. You can use a personal loan for anything. Plus, the application process is simple. As a result, people widely use personal loans. Personal loans can be helpful, but only if the borrower understands them well. This is crucial so that you can avoid any unwelcome shocks. Reviewing the fine print of every agreement might be time-consuming. Still, it’s a necessary step toward a secure financial future. [B-01] 8 Questions to Ask Before You Take Out a Personal Loan How much of a loan should I take out? The lender sets the ceiling on the loan amount. Each lender has its own minimum and maximum loan amounts. And it establishes this limit purely based on your creditworthiness. So the amount of money you need to borrow is up to you. Suppose you need to take out a loan to pay for your upcoming vacation. In that case, you can consider starting a high-interest savings account to help you reach your goals. A personal loan is the best option if you need money for debt consolidation or to cover sudden costs. You mustn’t borrow more money than you need. So, keep the personal loan amount you’ve asked low. If your credit line is higher than you need, timely loan payments could cost you more. Add your current bills and future expenses together to get the optimal loan amount. What’s my credit score? Personal loans are unsecured debts, as you might already know. This means you won’t need to put up any collateral to secure the loan. Thus, a high credit score is necessary to get a loan from a financial institution. If you want to apply for a personal loan, it is imperative that you first find out your creditworthiness. For example, a poor credit score can result in the rejection of your loan application. Or, it can also lead to a much higher interest rate on a personal loan. Hence, improving your score is important. Is it safe to borrow money from that lender? There was a time when people could only get loans from banks and their physical locations. People borrowed money from banks without hesitation. Online loan apps that provide personal loans have simplified obtaining a loan. But there are a lot of loan lending apps out there, and you need to be aware of them to avoid them. Obtaining a loan from any respectable online personal loan app is an option. Still, before you do so, you should verify the app’s legitimacy. What extra fees might I expect to pay if I apply for a personal loan? Several personal loan lenders charge foreclosure and prepayment penalties. Also, there may be a cost associated with prepayment or a charge for transferring the amount of your current loan to a new lender. There are fees associated with personal loans that can add up to a significant amount. Processing and service fees and insurance premiums are a few examples of these costs. Before committing, be sure you know what the lender will charge you. A fee may be levied if you pay late or have a check bounce. Does the lender have clear instructions for eligibility? If you’re in the market for a personal loan, it’s important to ensure you qualify. One of the first things a borrower must do before applying for a loan is to ensure their eligibility. Age, employment, monthly income, etc. are only a few criteria used to determine eligibility. The required minimum monthly income is significantly higher in major urban areas. Your pay slips and Know Your Customer paperwork is on the list of necessities. You need to find a lender with precise requirements you can easily grasp. Is it convenient for you to make the EMI payments every month? One of the most important numbers to remember when applying for a personal loan is the EMI. The principal, the interest rate, and the number of payments all influence the EMI. To determine an affordable EMI amount, use an EMI loan calculator. To get a feel for how these three variables might affect your EMI, you can adjust them individually. Cut the size of the loan if at all possible. Do interest rates conform to market norms? Examining the rates offered by several online lending companies is a wise move. The interest rate is the most important factor in deciding whether you can repay your loan. The interest rate determines the interest you’ll be paying on a personal loan. Remember that you can drastically lower the interest rate on a loan if your credit score is high enough. Can you pay back the loan whenever it’s convenient for you? If you’re looking for a personal loan, you should check to see if the lender allows you some leeway in the EMI amount. Also, check to see if there’s leeway in the method you use to repay the loan. Getting a short-term loan never comes without the responsibility of paying it back. Having a strict repayment arrangement, however, can make repayment more challenging. To avoid default, choose a term that is manageable for your budget. The standard repayment schedule from most lenders is between 1 and 5 years. You should be able to pay off your loan faster if you can increase your EMI or prepay the entire balance. Also, you should be able to pay via various methods. For example, a web browser, mobile app, wire transfer, UPI, debit or credit card, etc. [B-02] Conclusion It’s up to the borrower to decide whether to apply for a personal loan. Still, there are situations in which doing so can be extremely useful. To get the most out of a personal loan, you must be familiar with its stipulations. Lending decisions can have long-lasting consequences. Hence, it’s important to be sure you have all the information you need before you make any commitments. Did you find this guide valuable? Visit our blog for more content related to personal finance, investing, and more!
08-11-2023
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Credit Score

Does Pre-Closure Affect Credit Score?

Personal loans are one of the most useful tools for overcoming monetary hurdles. These loans are common because they do not require collateral from their applicants. Borrowers often choose to pre-close their loans to relieve themselves of responsibility. Additionally, many people do this when thinking about getting another loan. But they don’t want to pay the payments on two loans. If you’ve ever been through a pre-closure, you know how devastating it can be to your credit score. Also, getting approved for new credit or loans will be difficult for years to come. We have discussed the effects of a pre-closure on your credit score below. [B-01] What is a pre-closure? When you pay off a loan before the end of the term, the process is called pre-closing. Borrowers often resort to pre-closure to finally be free of their EMIs. You can reduce the interest the borrower owes if the loan is pre-closed. Lenders let borrowers pre-close loans anywhere from 6–12 months after approval. It’s important to remember that there could be a pre-closure fine. And you will have to pay it if you want to pay off the loan before the conclusion of the agreed-upon term. Impact of pre-closure on credit score Paying on time each month is beneficial for your credit score. Hence, paying off your loan early should have the same effect. But no, this is not how things function. There is a significant difference between paying off a loan and paying off credit card debt, or EMIs. Lenders consider the loan paid in full. They also consider the loan removed from your reports after you’ve made all the payments. Yet, credit rating agencies use your total balance across all accounts. They use these criteria when determining your credit score. Credit ratings are affected more by how well you manage open accounts. They are less affected by the early closure of inactive accounts. Having open accounts can reveal your current and prior financial struggles. Personal loans don’t have a huge effect on your credit score. Yet, making payments on closed loans on time and consistently is a big factor in your credit history. Remember that the same reasoning does not apply to paying a credit card balance. An open credit card account is one that you’re still actively using. Thus, your credit score will not be affected if the balance is paid in full and remains untouched. When Is the Right Time to Pre-close? There are times when it makes more sense to prepay a personal loan. We’ll examine the following cases: Initial stages of the loan’s term You can significantly reduce the interest you would have paid on a loan. You have to pay it off early. Remember that most loan providers won’t let you prepay your loan within the first 6 to 12 months. In addition, there could be a fine for defaulting on a mortgage, even if you are authorised. Think carefully about the costs and benefits of pre-closure before taking any action. If your credit report and score are strong If you have good credit, pre-closing on a personal loan will not affect your credit score. Further, it will convey a message to potential future lenders. Finally, it will show that you have the financial discipline to make timely payments on your debts. When Should You Not Pre-Close Your Personal Loan? When establishing a credit history and rating If this is your first loan, paying it back on time will help you establish a good payment history. Timely repayment is a crucial factor in determining your credit score. When the cost of the prepayment penalty exceeds the amount you will save You won’t save a tonne of money by foreclosing on a loan. And that’s especially true if you’re already toward the end of the repayment period. You must also cover the prepayment penalty costs. Before deciding whether to prepay your debt, it’s important to weigh the pros and cons. Advantages of Pre-Closing a Personal Loan If you are able to pay off your personal loan early, you can get the following benefits: Quick Process A prepayment cancels your loan immediately. It is better than gradually decreasing it through regular EMI payments over time. There is no longer any need to make interest-only payments each month. Because of this, you can pay off the loan more quickly. Low-Interest Outflow You can reduce interest costs while prepaying a personal loan. It works both ways, in part or in full. It is usually better to absorb the prepayment fees than to pay the total interest on a personal loan. No Prepayment Fees Fees vary from one lender to the next. Yet, personal loans with a fluctuating interest rate are safe. They don’t incur any extra pre-closure fees, as per RBI regulations. You can save on interest and avoid prepayment penalties by paying off your loan early. But, pre-closure fees are your responsibility if you’ve chosen fixed interest rates. Increased Creditworthiness How quickly you pay off your bills directly impacts your credit rating. Suppose, you are currently making EMI payments on a loan and feel the need for a loan soon. In this case, your credit score may suffer as a result. In contrast, paying off a personal loan early can positively affect your credit score. It will make you more likely to get approved for future loans. Things to Consider Before Your Prepay Debt-to-income ratio If you have a high debt-to-income (DTI) ratio, paying off your personal loans early may help. This is good news if you want another loan soon after paying off your current one. Your loan approval odds improve as your DTI goes down. A prepayment is an option if you first borrowed the money for an unexpected expense. But, you are now in a position to repay the loan. Savings Paying off your loan early can help you avoid interest penalties. But, using all your funds can be dangerous. You will negatively impact your ability to deal with sudden financial setbacks. Yet, you should only consider prepayment if you have a significant amount left. You must have enough money left after you’ve covered all other expenses. But, prepaying a personal loan when financial resources are low is not recommended. [B-02] Conclusion If you have an outstanding personal loan, think carefully before foreclosing on it. The decision to foreclose on a loan depends on the borrower’s financial situation. Hence, weigh the benefits and drawbacks, and make an informed decision. If you want to improve your credit score, pre-close your loan. As a result, your credit rating and history will improve. Keep in mind that prepayment is typically penalised heavily for unsecured loans. Instead of pre-closing a loan, you can make other investments with the available funds. Are you looking for an instant personal loan? Apply for a quick personal loan with Piramal Finance and get up to Rs 10 lakh!
08-11-2023
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Personal Loan

Know All Frequently Asked Questions for Personal Loans

Is there an urgent need for money on your part? If this describes you, a personal loan from a bank or NBFC may be in your near future. Personal loans are available from banks and financial organisations for several reasons. These include weddings, medical treatment, travel expenditures, house improvements, school fees, etc. A low-interest personal loan shouldn’t be hard to come by if you have a high credit score. Still, before opting for a personal loan, it’s important to do some homework. We have answered some of the most frequently asked questions below: [B-01] 11 Most Frequently Asked Questions for Personal Loans What is a personal loan? Personal loans are short-term loans made to individuals. They are given without regard to credit history or collateral. Tangible assets like a house, boat, or vehicle do not back an unsecured loan. Like other loans, these are repaid over time. They are repaid through EMI at a fixed interest rate. Interest rates for personal loans are cheaper than those on credit cards. That’s because of the fixed payback term and if the borrower has an excellent credit history. What Are Personal Loans Used For? You can put a personal loan toward anything like: Consolidating debt to make major purchases Repairs to the house or car Paying off high-interest credit card bills Starting a business Funding a medical emergency Combining high-interest credit card debt is by far the most typical use of a personal loan. Compared to credit cards, personal loans have lower interest rates. Also, they needly one fixed payment per month, and allow you to save money on interest during the loan’s term. Am I Eligible For A Personal Loan? Your ability to get a personal loan depends on: Their credit score Income Debts Ability to repay the loan each month While requirements vary per lender, a good credit score is often anywhere from 700 to 750 or above. Will getting prequalified for a personal loan affect my credit score? Most of the time, a prequalification inquiry won’t appear on your credit report. Instead, shopping for the best deal on a personal loan is important. It’s important to compare, just like you would when searching for a mortgage provider. Most loan companies will send you offers after running a “soft” credit search. This way, you may check out the rates and terms of other lenders without compromising your credit. What documents are needed for a personal loan? Lenders ask for ID proof and proof of income to reduce the risk of lending money to a potential borrower. Whenever proof of something is required, you may have to provide the following: Identity documentation, such as a driver’s licence or other government-issued photo ID A copy of your most recent pay slip or banking statement showing proof of employment A recent utility bill or loan statement would suffice as proof of residence What is a secured personal loan? When you take out a personal loan, chances are it won’t be secured by anything tangible, like your house or car. When you apply for a personal loan, lenders will look at several factors. For example, they’ll look at your credit score and income to determine how likely you are to get approved. Suppose your credit score and monthly income aren’t quite up to snuff. In that case, you can still qualify for a personal loan by taking out a secured loan. Sometimes, you can secure a more favourable interest rate or a bigger loan amount. That’s when you put up collateral in exchange for a personal loan. Is there a prepayment penalty for a personal loan? The term of your personal loan is the time you’ll be required to make payments. Knowing if your lender has a prepayment penalty if you want to pay off your loan early is crucial. Your lender will choose the specifics. Why is my personal loan interest rate higher than my home or car loan interest rate? Home and car loans are examples of secured loans because a real asset backs them. Hence, you risk having the asset repossessed if you default on the necessary payments. When you apply for an unsecured personal loan, you don’t have to put up any collateral. Instead, lenders will take the risk of your repayment based on your promise. Thus, the interest rate on an unsecured loan will be higher than on a secured loan. That’s because the lender is taking on more risk by making the loan. Yet, weigh the loan’s cost against that of other funding sources, such as your home’s equity. Borrowing against equity can sometimes result in a far higher rate of return. How Much Can I Borrow from a Bank? It depends on a lot of things how much you can borrow from a bank. Ideally, a salary worker’s EMI payment wouldn’t be more than 30% of their monthly income. The lender will also consider existing loans with EMI payments. For self-employed people, lenders will give loans based on their business’s income. Lenders will consider the individual’s total debts, not just the ones listed above. The maximum loan amount is also subject to the lender’s policies and restrictions. How Can I Reduce the EMI Payable for a Personal Loan? When your credit score exceeds 750, you may qualify for a lower EMI on your personal loan. Your ability to negotiate a lower interest rate or other reductions depends on you. It depends on the quality of your relationship with the lender. Is it possible to prepay a personal loan? There are loan providers who, depending on their policies, will allow you to prepay the debt. A prepayment penalty is possible. It is also important to confirm with your lender whether they permit prepayment. [B-02] Conclusion Read through these frequently asked questions about personal loans. After reading, you should know better what to expect if you apply for one. The most crucial consideration is not taking on more debt than you can comfortably repay. You’ll be ready to begin the application once you’ve got an EMI amount within your budget and you’ve verified that you meet all the necessary requirements. You can get a personal loan of up to Rs 10 lakh by going to Piramal Finance today.
08-11-2023
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Personal Loan

5 Ways to Manage Your Personal Loan EMI Payments

A personal loan can be your financial savior when you need cash urgently. A personal is an unsecured loan. You are not required to give any assets as security. The loan may also be used for any purpose, such as paying medical costs, remodeling your home, or funding a big event. Its application form requires very little paperwork. While it is fairly simple for most people to get a loan, paying the EMI can be a chore. Most people are so busy with their daily lives that planning to pay back a personal loan becomes the least of their concerns. This is not a sound financial tactic. Any late personal loan EMI payments might impact your next financial plan. This can also ruin your budget. To avoid this, read the tips listed in this blog to manage your personal loan EMI payments better. [B-01] What Exactly is a Personal Loan? Before getting directly into tips for managing personal loan EMI payments, let us see what a personal loan exactly is. Personal loans are unsecured loans offered by banks based on job history, ability to repay, income level, and credit history. These loans, also known as consumer loans, are multi-purpose loans. They may be used to cover any of your urgent requirements. Unlike a credit or debit card, a personal loan offers users a one-time cash payment. Borrowers then pay back the loan amount plus the interest rate in regular monthly payments (EMIs) during the loan’s term. Due to the advent of online lenders, dozens of quick and simple loan choices are available. It mostly takes less than 10 to 15 minutes to apply online. However, the approval process might take up to one business week, depending on how quickly the lender receives and processes your papers. Other costs, such as an origination or admin charge, may apply to these loans. Once approved, this is taken from your loan balance or as an early payback penalty if you pay off the loan before the end of the term. Perks of Obtaining a Personal Loan Other loans, such as a home loan or a gold loan, need more paperwork. But personal loans require just a few. The approval procedure is rapid. With several money firms or banks providing online services for loans, funds are disbursed within a few hours. This is the case if the lender is confident in your payback ability. Another perk of personal loans is that lenders allow you to pick your loan tenure. These loans often have terms ranging from one to five years. You can also choose the loan period based on your ability to repay. You should choose a shorter loan term to save money on interest and repay the debt quicker. Tips for Managing Personal Loan EMI Payments Here are some tips to follow to manage personal loan EMI payments: Never miss an EMI Never missing an EMI is one of the best tips to follow to manage personal loan EMI payments. You must pay your EMIs on time. If you pay by cheque, try to deposit it on a certain day each month. Make a note of it on your phone. If cash is taken directly from your bank account, ensure that your account has a sufficient balance so that the EMI is deducted on time. A strong credit score might help you get credit lines at a lower interest rate. A low-interest rate means a lower monthly EMI. Personal loan defaults or missed payments may result in fines. Boost your expense planning If you currently have debts and ask for a personal loan, first figure out how much you will be paying as EMIs for all of your loans. These expenses should not exceed 50% of your gross pay. After paying all EMIs, you must have enough left over from your wage to cover your daily needs and other monthly personal costs. This tip for managing personal loan EMI payments will work as a savior for you. Use a personal loan EMI calculator The role of an EMI calculator could be overstated. The loan amount is often established by expected spending or demands, and the lender sets the rate. But the loan’s duration is an element you have complete control over. Changing the loan’s duration might affect the monthly EMI. If you have a low income and expenses to meet, you are better off selecting a longer tenure. This will lower your monthly expenses without hurting your wallet or limiting your lifestyle. Make a contingency fund As soon as you begin earning money, you should start putting money away for a rainy day or sudden events. As a general rule, you should only spend some of your earnings. Take the example of a family crisis, a health issue, or a sudden job layoff. You will need finances to tide you over while you look for your next job. Yet, the personal loan EMI payments will continue. They will be due each month. As a result, it’s critical to save money every month that you can in order to get through difficult times. Prepay your loan You may choose the longest loan term available at the time of application based on your payback abilities. This will help keep your EMIs low. After you’ve made personal loan EMI payments for six months, you may prepay the amount in whole or in part with no extra fees. Even a partial prepayment may greatly reduce the EMI. Any future financial inflow, such as a bonus or salary increase, may be used to pay off the loan. This will ensure that you handle the debt carefully and with less stress. [B-02] Conclusion Unsecured personal loans can help you get through a relatively brief cash crunch or encounter unexpected financial needs. But use this as a chance to control spending and concentrate on your monthly savings plan. Additionally, you should take proactive steps to close the personal loan as soon as possible. With these simple tips, you are sure to manage your finances well. Your personal loan EMI payments will not be a burden anymore. You can read relevant blogs on Piramal Finance and grow your personal finance knowledge. They also offer a wide range of products and services for you to benefit from.
08-11-2023
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Personal Loan

How Much Personal Loan Can I Get On My Family’s Gross Income?

Personal loans are a good option for many people. But, how much you can borrow depends on how much money your family makes in a year. A personal loan is a short-term loan that is used to pay for expenses that come up suddenly. If you need a lot of money but don’t have proof of income, your spouse might be able to help. If you only apply under your own name, you can’t add or replace your own income with your spouse’s. But if your spouse agrees to be a “co-borrower” on a loan, you can tell the lender how much money they make. [B-01] What is a Personal Loan? A personal loan is a type of credit that lets you borrow money from a bank or other financial institution. The lender will give you the money based on your needs and how you plan to pay it back. This facility can be used for anything, like buying a car or house, paying off debts, investing in stocks and bonds, etc. Different Types of Personal Loans Unsecured Personal Loan Personal loans that don’t require collateral are the most common. An unsecured personal loan gives you a lump sum, which you pay back in EMIs. Secured Personal Loan A higher loan amount usually means that you will need to put up something as collateral. You might be able to use something besides money as collateral. If you don’t pay on time, the lender might be able to take those assets you provided as collateral. These assets may comprise a piece of property including land, home etc. Besides, other items of financial value may also be used as collateral. Specialized lenders: Certain kinds of lenders can also offer personal loans. Such loans are usually of a small amount. Although easy to acquire, these loans are unsecured and are fraught with risks of interest variability. Using The Income of Your Spouse Your partner can be a co-borrower on the loan if they have good credit and a stable income. Co-borrowers can improve your approval chances and offer more favourable terms and interest rates. What is a Co-Borrower? Co-borrower is a person who applies for a loan with another borrower and shares the risk. In these instances, both borrowers are responsible for repayment. They typically share ownership of the property or other collateral used to secure the loan. A co-borrower can help you present a higher total income than you can on your own. This arrangement is advantageous for those who share assets or finances. In case your spouse agrees to be a co-borrower, your income and credit history will be considered. This will boost your likelihood of approval and make you eligible for a larger loan. It may also provide reduced interest rates, terms, or both. Late or missed payments could negatively impact both of your credit scores. Eligibility Criteria for a Personal Loan The eligibility criterion for taking a personal loan depends on the following factors: Applicant’s Age: A person should be between the ages of 22 and 58. Applicant’s Income: An income of at least Rs. 20,000 per month is required. Work Experience: One year of work experience is required. Importance of The CIBIL Score for Personal Loans The three-digit CIBIL score is a summary of your credit history, credit report, and credit rating. It is a key sign of how good your credit is. This number can be anywhere from 300 to 900, and it shows how likely you are to pay back a loan on time. Minimum CIBIL Score Required For a Personal Loan: The CIBIL score is a way to rate how good your credit is. Different lenders have different minimum credit scores for personal loans. Most lenders think you have good credit if you have a credit score of 670 or higher. Documents Required for a Personal Loan The documents required to get a personal loan are as follows: Identity Proof: This includes a passport-size photograph and PAN card showing you as the borrower. Address Proof: This can be in the form of an electricity bill, gas bill, property tax receipt, etc. Income Proof: You may have to furnish your bank statement or credit card statement with monthly income details from the last three months or four years’ total income details (from all sources such as salary/income from self-employment). The lender’s rigorous inquiry could have an impact on your credit score. Depending on the complexity of your application, your personal loans could be authorized between one to 10 business days. Different Methods to Compute a Personal Loan Amount Multiplier Method Financial institutions and banks use this method to decide who can get a personal loan. When the company pays its employees more and has a better reputation, the multiplier goes up. This means that you have a better chance of getting a loan with a lower interest rate and a bigger loan amount. Here is an example of the personal loan amount Shanaya could get with a salary of Rs. 30,000. If she doesn’t have any other EMIs, she can multiply her monthly income by 27 to get the maximum loan amount. So, she would be eligible for a loan amount of Rs 8,10,000. The amount to be repaid shall depend on the prevailing interest rates offered by the financial institution. FOIR Method FOIR is an abbreviation for Fixed Obligations To Income Ratio. This method lets the lender check your repayment capacity. It makes an assessment of your already existing EMIs and other financial obligations that you fulfil on a monthly basis. Those monthly deductions are subtracted from your income, and your FOIR is calculated. The formula for the same is given as under: FOIR = [All the monthly financial obligations/Monthly Salary] x 100 The evaluation of FOIR gives lenders an idea about the new EMIs to be set up for future loans. If the EMI exceeds the financial capability of the person, then the loan is rejected. Otherwise, it is acceptable. What is The Maximum Personal Loan Amount You Can Get Based On Your Income? The table given below gives a tentative loan amount for which you are eligible corresponding to the different income slabs. SalaryLoan Amount ExpectedRs. 20,000Rs. 5.40 LakhsRs. 30,000Rs. 8.10 LakhsRs. 40,000Rs. 10.80 LakhsRs. 50,000Rs. 13.50 LakhsRs. 60,000Rs. 16.20 Lakhs [B-02] Conclusion Personal loans are a great way to get finances under control. They also come with many perks. Borrowers can apply without worrying about how much their score has dropped over time or if they have any other issues with their finances. If you are applying for a loan, it is important to carefully evaluate your requirements. If you’re looking for a personal loan in India, check out related blogs on Piramal Finance for more information.
08-11-2023
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Personal Loan

Best Personal Loan Tips You Must Follow in 2022

Personal loans are one of the most often used types of loans. One key reason for their appeal is because, unlike other loans, banks do not prohibit or limit the end-use of money granted by such debts. This means you may use them for anything you want. The most typical use is to pay costs such as a long-overdue trip and family events such as a marriage or birthday event. These are also frequently used for down payments on a home or a vehicle and for house repairs or interior decor. Asking for a personal loan is rather simple, yet there are some things you should be aware of before doing so. So, here are a few helpful personal loan tips to remember while seeking a personal loan. [B-01] Top 10 Personal Loan Tips You Should Know Do Careful Research Before Applying When you decide to take out debt, you may find data that could be helpful to you. This might be from odd financial websites or blogs. Yet, reading the small print before applying for and receiving funds is a vital personal loan tip. As a result, before taking out a personal loan, you must do your homework so that you understand the procedure, fees, and so on. Rather than getting caught off guard, do extensive research on the lender from whom you want to obtain a personal loan. Compare the conditions and terms of the major lenders. Doing sufficient research is a personal loan tip you must follow diligently. Determine if a Loan is Required It’s simple to apply for a loan. However, before you do, consider why you need a personal loan. Make a checklist to help you assess your reasoning. This is a key personal loan tip to follow. If you need money but are scared to spend your assets, a personal loan may be the solution. Verify Your Credit Score A solid credit score is key to getting a personal loan. A credit score, also known as the CIBIL score, is a 3-digit number given to you following an analysis of your banking records. A credit score is seen as proof of solvency. A vital personal loan tip is always to check your credit score before submitting your loan request. It will help you to get an idea of whether your request will be granted or denied. Remember that your credit rating shows how much debt and money you have borrowed. If, as a potential borrower, you have not taken out a loan from the bank and it is still included in your credit rating, you must notify the bank and credit agency. A CIBIL score of 750 or more is deemed good. If you’re a first-time borrower, make sure your credit report includes NA (Not Applicable) / NH (No History) so your request doesn’t get rejected. Verify Your Qualification Before applying for a personal loan, verify with the lender to see whether you qualify. This is particularly in terms of your salary and work. Income is among the most vital factors lenders consider when accepting a personal loan. It is because income indicates if you can repay the loan. Request Advance Payment Many lenders enable you to pay off your debts early, with certain fees. When choosing a lender for a loan, be sure to inquire about loan repayment options. A loan can save you a lot of money on the high interest rate you would otherwise need to pay. Advance payment of your debts is a personal loan tip you must try to follow. Avoid Taking Out Several Loans Another crucial personal loan tip is to refrain from taking out too many loans. Taking out too many loans gives the lender the idea that you are not able to repay your previous debts and are not a reliable client. Determine The Length of Debt The loan duration is the time during which you repay it. Choose a payback period that does not place an undue financial strain on your budget. You may use a loan EMI calculator to experiment with different variants and combos to discover the right tenure. Inquire About Any Extra Costs When disbursing a personal loan, almost every lender imposes processing costs, paperwork fees, and other expenses. Some banks also demand prepayment fees if you want to pay off your loan before the specified term. Understanding the extra charges that the lender may impose on you is vital. Affordability of Repayment After you get a loan, you must repay the lender. This is done via monthly payments called an EMI. You can figure out how much it will cost by using a personal loan EMI calculator. Once you’ve determined the amount, review your monthly and annual financial plans to see whether you can return the loan on time. If not, it may be a bad idea to take out a loan at that time. 10. Wait Six Months Before Reapplying If the bank refused your loan request, it is advised to wait for a minimum of 6 months before applying for another loan. Always remember this personal loan tip. If your loan request was refused due to a low credit rating, strive to raise it in the next six months by generating late payments. If your loan request is rejected, approaching other lenders becomes pointless. This is because they will also reject your request. Multiple denials might lead to a decline in your credit score, which is never good. [B-02] Conclusion Whether you’ve concluded that a personal loan is the best choice, crunch the figures to see if you can manage to go into debt. Before you register, check your credit rating to see where you stand. The better your score, the greater your chances of acceptance and getting a reduced rate. Furthermore, look into your loan alternatives. Compare rates, terms, and fees from other lenders to get the best offer for your specific financial circumstances. Gather the necessary papers and file a personal loan request online or in person after you’ve chosen the lender that best meets your lending demands. If you want more helpful personal loan tips, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Personal Loan

Why Piramal Finance Is A Good Choice For Personal Loans

A personal loan is a type of loan which can be used for many different things. For instance, you could use a personal loan to repay your debt, fix up your house, or plan your dream marriage. You have to pay back the loan amount you borrow over time usually with interest. Personal loans may also have fees. A personal loan is similar to most other loans. You apply for a loan, send in the paperwork, check your creditworthiness, and then hope to get a loan. When it’s processed, the money will be paid to your bank account, and you can use it however you want. [B-01] When Should You Take Out a Personal Loan from Piramal Finance? Here are a few of the most common reasons to take out a personal loan from Piramal Finance: Fund a Purchase Funding a buy is determined by whether it is a desire or a necessity. If you’re planning to take out a loan anyhow, acquiring a personal loan and paying the vendor in cash may be a better bargain than financing via the seller. Yet, never decide on funding on the spur of the moment. Ask the vendor for a discount and contrast it to what you might get with a personal loan from Piramal Finance. Then you can pick which is the best option. A Marriage or a Large Ceremony Any major event, like a wedding, counts if you end up placing all related expenses on your bank card and are unable to pay them off in a month. If your loan has a cheaper rate of interest than your credit card, you might save a lot of money on interest. Debt Reduction If you owe cash on credit cards with higher interest rates, you may repay it with a personal loan that has a reduced rate of interest. You can pay off debt quicker since less of each monthly payment goes toward interest rates. Crises There are instances when lending is the only choice. For instance, a personal loan can make sense if you have medical bills or need safe transportation to keep on working. Factors to Consider for a Personal Loan from Piramal Finance Here are some things to think about before getting a personal loan from Piramal Finance: Personal Loan Interest Rates When you take out a personal loan from Piramal Finance, the interest rate is one of the most vital deciding aspects. The interest rate is determined by several aspects, including your age, stable income, the total count of years of work encounter, credit score, established EMIs (if any), ability to repay, as well as loan tenure, among others. The interest expense defines your EMI and has an impact on your budget and long-term fiscal well-being. Loan Duration A personal loan from Piramal Finance typically has a maximum term of 5 years. However, the shorter the duration of a personal loan, the better it is. A longer duration may decrease your EMIs, rendering repayments more affordable, but a shorter tenure (say, 2 to 3 years) raises your EMI. You will pay a greater interest rate on the personal loan. Other Charges Piramal Finance imposes 4% in processing fees and other expenses in addition to interest rates when you take out a personal loan. The process cost is a one-time cost levied as a percentage of the personal loan sum based on a minimum sum. Flexibility in Repayment Apart from the above-explained key factors, check whether Piramal Finance allows you to return your loan sooner and how much this will cost you. This flexibility might help you pay off the debt sooner and give you respite during difficult times. However, it is vital to practise fiscal stability to return the personal loan on time and keep your financial health in the black at all times. Piramal Finance offers 12 to 60 months of flexible repayment terms. Customer Service Pick Piramal Finance as its customer service meets your high standards. Customer service is a key method of ensuring that you are happy with the services provided by Piramal Finance. Piramal Finance has specialised customer care teams that help consumers that contact them. The customer support team’s tasks include connecting with you by phone, fax, email, and mail to give solutions to your problems and react to your inquiries. Terms and Conditions To make an educated decision, read the terms and conditions thoroughly. This will prevent problems later on and provide a trouble-free experience. Piramal Finance’s Personal Loan Benefits No Restrictions on End Usage The first and most vital advantage of a personal loan from Piramal Finance is that it may be utilised for any reason, unlike a house loan. There are no restrictions on how you may use the personal loan. Rapid Payment If you match the qualifying standards and have a strong credit score, you may acquire a personal loan from Piramal Finance in 72 hours. Piramal Finance provides digital approval of personal loans to current clients. No Collateral Needed You are not required to prepare any collateral as the loan is unprotected. As a result, getting it is simple via Piramal Finance. Offers the Ability to Pick the Loan Tenure A personal loan has a maximum term of up to 7 years. Piramal Finance gives you the freedom to pick the term that works best for you. Longer tenure equals lower EMI, and vice versa. As a result, after calculating the EMI, you may decide on tenure. To calculate the EMI, you can use their EMI Calculator. Low Interest Rates Piramal Finance provides inexpensive personal loan rates on a declining basis, making it among the most popular lenders for personal loans. Piramal Finance now offers personal loans at a base rate starting from 12.99% per year. [B-02] Conclusion Getting the right personal loan in India may be a tough and complicated task. On the contrary, Piramal Finance gives a broad choice of loans, such as personal loans, making it much simpler for you to get funds quickly. You may calculate your monthly EMI payments using Piramal Finance’s EMI calculator. If you want to know more about personal loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Personal Loan

Essential Things to Consider Before Taking a Personal Loan

A personal loan is one of the best financial aids for most issues. Personal loans are the easier fix to resolve any business or personal expenses. But before applying, you need to learn about the essentials of a personal loan. Consider your credit score and interest rates before taking a personal loan. Many people rush into getting a loan and end up inviting more financial trouble. But most problems usually occur due to a lack of financial planning. Ensure you consider all the vital factors before taking a personal loan. This blog will discuss all the essential points to consider before taking a personal loan. Let’s dive into the details! [B-01] Vital Questions To Ask Yourself Before Taking a Personal Loan Personal loans are a quick solution to any financial emergency. But you must have accurate answers to these questions before making any decisions. What is The Reason Behind Taking a Personal Loan? There are several reasons to take a personal loan. You can select the best possible option as per your reason. For example, suppose you have a medical emergency. In that case, the loan’s repayment tenure might differ compared to that of a planned expense. It is vital to think before taking a personal loan. Determining the reason will ensure you do not add up your debts and repayments. It will also help you save more money for future savings and expenses. Are You Eligible to Qualify For a Personal Loan? Personal loans are one of the most accessible loans to avail. But not everyone can avail of a personal loan. Personal loans have procedures, documents, and paperwork that needs to be verified. So before applying, you must check the essential criteria. Once you know the eligibility criteria, you can check if you qualify for the personal loan. This involves planning your finances to create a worthy profile for a personal loan. Can You Afford The Interest Rate? A crucial question to ask yourself is whether you can afford the interest rate of a personal loan. There are several banks and lenders in the market. Doing enough research will get you the best possible interest rate. It is always better to stick to a budget. Sticking to a fixed budget for the interest rate on a personal loan is vital. Besides, finding a lower interest rate will save a lot of money that can be used better. Key Factors While Taking a Personal Loan Here are some vital aspects to consider while applying for a personal loan. These points are essential to improve your eligibility for a personal loan. Maintain Your Credit Score A good credit score is crucial for the approval of any loan. Every lender checks your credit score when you apply for a personal loan. They do this to determine your credibility and whether you are worth lending to. The average CIBIL score ranges anywhere from 300-900. To ensure your loan application stands out, you must maintain a credit score of at least 850 or above. A good credit score has other perks as well. For example, availing of lower interest rates than the standard market price. It also gives you the benefit of negotiating fees and other charges for the personal loan. To maintain an excellent credit score, you must check your finances. Ensure to make repayments of any debts on time. Check Prepayment Flexibility Choosing a lender that provides prepayment flexibility can be quite beneficial. Prepayment of any loan is when you pay the entire loan amount before your loan tenure ends. It helps avoid extra interest charges. But only some banks or lenders provide prepayment flexibility to borrowers. So, finding a lender that allows you to repay the personal loan before the tenure ends is vital. Sometimes lenders have extra costs for the prepayment of a personal loan. Having terms like these on your loan will only result in unnecessary expenses. Try finding a lender with no such terms that still let you pay off your loan in advance. Saving extra money allows you to keep the surplus to secure your finances. Some lenders even offer zero costs on the prepayment of a personal loan. Try to make the right decision to save as much as possible. Determine All Extra Charges A personal loan’s interest rates and prepayment flexibility are important factors. But you must also check other charges. This includes the expenses like paperwork expenses, administration charges, verification fees, GST, penalties for foreclosure, prepayment and defaults on personal loan EMI payments. Comparing the extra charges of lenders in the market will ensure you choose the best option. Every lender has a diverse price range for the extra costs of a loan. You can save money by paying only the necessary amount in extra fees. Always compare costs to find the best deals. Depending on the credibility of the lender, these charges can change. Hence, a personal loan from a reputable financial firm is advised. Consider Your Repayment Capacity The wise thing to do when borrowing a personal loan is to prepare beforehand. Personal loans do not require any collateral or security in most cases. But you need to ensure that your earnings are enough to repay the entire loan without compromising your assets. The reason why people opt for a personal loan is they get repayment flexibility. You can use the personal loan calculator to evaluate your monthly EMI. Calculating the EMI will give you an estimated amount you need to pay with interest for the loan. Besides, you need to take a look at other financial activities as well. Check all your exit sign repayment and debts to eliminate any financial stress. Adding up your repayment will only create more financial pressure. Checking all the aspects before taking a personal loan is vital. Otherwise, you might just end up creating financial confusion. This can make the personal loan a hassle rather than a solution. [B-02] Conclusion A personal loan can benefit you in desperate times. But it is best to be well informed when it comes to a personal loan. You might end up inviting more trouble. Conduct proper research and consider different borrowing options to solve your financial crisis. Besides, a personal loan requires proper financial planning. Be cautious and take your time. Despite urgent expenses, making a wise and informed decision is vital. Considering all the factors before applying for a personal loan benefits you. This article helped you learn about the basics of a personal loan. For more valuable insights on personal finance, head to the Piramal Finance website today!
08-11-2023
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Personal Loan

How to Get The Lowest Personal Loan Interest Rate

When taking a personal loan, the interest rate is one of the most important factors to consider. A lower interest rate means you pay less money over time, making your loan more affordable. However, lenders decide the rate based on different factors like your credit score, income, and repayment history. By understanding how interest rates work and taking the right steps, you can get the best possible deal. In this guide, we will explore the ways to secure the best personal loan interest rate. When it comes to personal loans, picking the right plan is vital. Piramal Finance provides you with a variety of packages. Employ their online calculator to get the best personal loan with the lowest interest rate for your budget. [B-01] Best Way to Get a Lowest Interest Rate Personal Loan Here are some tips and tricks that will help you get a personal loan at the lowest interest rate possible from Piramal finance. Boost Your Credit Rating. Your credit score shows how credit-worthy you are. With a high credit score, you will receive the best deals on your debts in terms of the interest rate charged, loan fees, etc. So, before asking for a loan from Piramal Finance, you should always monitor your credit score. Prevent Skipping Repayments. Your credit score may suffer if you don’t make a loan or credit card payment on time. Before deciding the interest rate for a loan, Piramal Finance typically considers your history of timely repayments. A personal loan with lower interest rate will likely be offered to those who have a history of making timely EMI and credit card payments. Employer. Many lenders base the interest rates on the employer account of the loan seeker. Salaried people pay lower rates than self-employed people because the income is more predictable. State and PSU workers receive lower rates than salaried people because of their higher job safety. The next group of users for loans are those who work for MNCs and other reputable firms. These groups are thought to have a higher chance of surviving recessions than other listed firms. Keep an Eye Out for Offers. During festivals, Piramal Finance typically provides special borrowing costs. Make the best of this opportunity. While such a promotion is active, you might be given a personal loan with a lower interest rate. Compare Lowest Interest Rates for Personal Loans. Try comparing the borrowing costs charged by Piramal Finance before requesting a personal loan. This will help you get a personal loan easily at a reasonable interest rate. Talk to Piramal Finance About The Loan. If you are an existing client/customer of Piramal Finance or have a good relation with them, you can bargain to get an easy personal loan with the lowest rate. It is advised to send the loan provider a formal, written request when doing this. Interest Rate of a Personal Loan The interest rate on your loan is defined by three factors: the loan sum, the loan term, and the rate of interest. Personal loan rates differ from person to person. The sum you pay monthly will also be decided by the term of the personal loan. The shorter term will result in bigger payouts, whereas a longer one will result in lesser payments. With a shorter loan term, your overall interest payments will be cheaper. A longer-term means larger interest payments. Advantages of Using a Piramal Finance Personal Loan Quick Approval. Get digital approval in minutes with minimum paperwork. Go to the site, input your data, and upload your papers. Borrow in Parts. You may borrow any sum from Rs. 3,000 to your credit limit as and when you want it. You don’t pay interest on funds you don’t utilise. Save Money On Interest. As interest is paid only on the sum utilised and not on the total allowed limits, you may save a lot of money on interest when compared to typical personal loans. Piramal Finance’s interest rates start as low as 12.99% per annum. Adjustable Repayments. You may set your payback plan. Pick flexible EMI choices of 2-36 months and make payments when best for you. Manage Loans, Repayments, & Fund Transfers Through Their Website. Everything you want is at your fingertips. Manage your account from the comfort of your home with Piramal Finance’s website. Factors Influencing Personal Loan Rates Piramal Finance has developed guidelines for a low-interest rate personal loan. They base their interest rate offers on those guidelines. The following factors influence Piramal Finance’s personal loan rates: Loan Amount. The most vital factor Piramal Finance considers is your required loan amount. The loan value given to you is set by your income and the sector in which you work. Repayment Period. The duration of the line of credit directly affects the interest rate. The tried-to-offer rates would then reduce as the tenure lengthened. Borrower’s Earnings. The loan interest is dictated by your income. If you have a great salary and a steady income stream, Piramal Finance will ensure that you can make timely loan payments. You will benefit from lower rates and an easy personal loan if you make this impression. Potential for Repayment. The capacity of the person to repay the loan is key in assessing interest rates. Piramal Finance believes that you will repay the loan on time if you have no other debt obligations. Rating of Credit Your credit score influences how much you can finance and the rate of interest. As a result, if you possess a credit score of least 750 and no defaults, interest rates can be much lower. [B-02] Conclusion Personal loan rates are determined using the declining balance approach. Your monthly interest burden will be decided by the main sum left after prior repayments. With each payment, the amount left reduces, as does your interest load. You may calculate your monthly EMI payments using Piramal Finance’s EMI calculator. If you want to know more about the lowest personal loan interest rates, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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