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Personal Loan

5 Tips To Boost Your Chances Of Qualifying For A Personal Loan

Money is needed for both scheduled and unscheduled costs, like a wedding, renovations, college, a holiday, a medical emergency, or paying off debt. If you aren’t ready financially, the cost could wipe out your savings and hurt your finances in a big way. When this happens, personal loans can help. You must meet the eligibility requirements set by the lender to boost your chances for a personal loan. Personal loans don’t require collateral, so lenders impose clear eligibility requirements to make sure only the right people get the loan and to reduce the risk of lending. So, if you want a personal loan quickly and without any problems, check out these 5 ways to boost your chances for personal loan approval. [B-01] What’s Great About Personal Loans? One of the main reasons people choose personal loans is that they don’t have to put up any collateral. Personal loans also require much less paperwork than other types of loans because of no collateral requirement. Another big reason why people choose personal loans is that once they are approved, the borrower can use the money for whatever purpose they want. There are no rules or limits on how money from a personal loan can be used. A personal loan can be used for many things, like paying off old debts, making a down payment on a car or house, or paying off credit card bills. It can also be used to pay for a party or home renovation. 5 Ways to Boost Your Chances for Personal Loan Approval 1. Make sure you meet the lender’s requirements Read the lenders’ rules and regulations carefully to make sure you meet them. This includes things like age, income, job, and more. Use an online eligibility calculator to boost your chance for a personal loan and keep you from getting turned down. For your loan request to be accepted, you need to ask for the perfect amount. The perfect amount means that you should be eligible for it and able to repay it easily. Personal loan eligibility calculators can help you determine how much money you could potentially borrow depending on your income, debts, and other criteria before you even apply for a loan. 2. Maintain a high credit score and apply for one loan The next thing you can do is improve your credit score. When reviewing your loan application, lenders focus heavily on your credit score. Having a high credit score is one of the requirements for getting a personal loan. A score of 750 or higher is generally good. The less credit you have, the less likely it is that you’ll get a good deal on a loan. Reducing your debt-to-income and credit-utilization ratios, as well as making on-time payments on EMIs and credit card bills, are all great methods to build and keep a high credit score. When a borrower needs money quickly, they may apply for loans from more than one lender to raise their chances of being approved. This is not the best strategy, but it may give them optimism that some of the lenders may agree to work with them. Every time you apply for a loan, a hard inquiry is made on your credit report. Over time, this will lower your credit score. Since applying for multiple loans can hurt your credit score, you should wait at least 6 months before applying for another loan. If you don’t need the money immediately, wait until your credit score improves. This will boost your chances of getting a personal loan and also make it easier. 3. Add a co-borrower Most of the time, you can choose to have your partner apply with you. This is helpful especially if your credit history is not good enough. If your co-income applicant’s and credit score are good, adding them to the application will boost your chances of receiving a loan because it will increase your ability to pay back the loan and get you a personal loan at a low rate. 4. Carefully choose your lender Before you choose a lender, you should look into all of your options carefully. Even if you need money badly, don’t settle for the first lender you find. In recent years, there have been a lot of different financial companies entering the market with good loan terms. Check carefully to make sure you don’t miss out on the deals that are out there. When you choose the right lender, you can get longer long terms. With a longer loan term, your EMIs will be spread out over a longer period. This means the EMI amount will be less. It will help you make payments on time and keep you from defaulting. Doing this will help you save money and boost your chances of personal loan approval. 5. Provide the right information Make sure you fill out your loan application with the correct information for a quick and easy process. Incorrect information on your loan application can delay approval, so double-check everything. Also, have the documents you need ready before you apply to boost your chances for personal loan approval. Lenders care the most about your ability to timely repay a loan. So don’t forget to list any other ways you make money, like tenancy, dividend income, interest, and so on. It will boost your chances for personal loans. This will not only make it more likely that you will get a loan, but it could also make you eligible for a bigger loan. [B-02] Conclusion It’s crucial to select the right lender so that the whole process goes smoothly and without stress. This is right from applying for the loan to getting it approved and receiving the money. Following the tips mentioned in the blog will surely boost your chances for personal loan approval. Check out the official website of Piramal Finance to know how you can boost your chances for a personal loan. DO check the range of services and products they offer.

08-11-2023

How To?

How to Calculate Land Area or Plot Area

Across the country, depending on the state, different units are used to describe the size of the property. It is a good idea to know how to calculate land area. Knowledge about land ownership measurement units used in India is very important to do such calculations. In India, people often calculate land area in terms of acres, hectares, square yards (Gaj) and square meters. The unit sizes vary depending on what they’re called in each state. [B-01] How does India calculate land area? Using standard units, the land is measured. Small land or housing plots are typically measured in sq ft or square meters. Large pieces of land, like industrial or agricultural land, are usually measured in acres or hectares. In India, some of the units used locally for land measurement are the Guntha, Bigha, Gaj, Ground, and others. Most of the time, these units are used in hamlets where bidders still desire to evaluate land in old-fashioned ways. What is the distinction between a ground and a plot? A plot is any part of the land, no matter how big it is, while a ground represents an area of land that is 2,400 square feet. Land documents that show how the land is segmented into layouts usually include measurements in the ground or square feet. Here is a list of some of the most common ways to calculate the land area: Area Unit Unit Of Conversion 1 Square Centimetre0.00107639 square feet1 Square Foot (sq ft)144 sq in (1 foot is 12 inches)1 Square Kilometer (sq km)247.1 acres1 Square Inch0.0069444 square feet1 Square Mile640 acres or 259 hectares1 Square Meter (sq m)10.76391042 square feet1 Acre100.04 cents or 4840 square yards (standard land measurement unit)1 Square Yard (sq yd)9 square feet1 Bigha968 square yard1 Hectare2.49 acres or 10000 square meters approximately1 Killa4840 square yard1 Biswa151.25 square yard1 Kanal605 square yards or 5445 square feet. 1 Ghumaon4840 square yard1 Kattha600 square feet1 Chatak180 square feet What’s the distinction between a hectare and a square metre? One sq. m. is an area that fits inside a square having sides that are each 1 metre long. One square metre is 10.76 square feet, but one acre consists of 4,047 square metres. Most residential lots are measured in square feet, while farmland is usually evaluated in acres. On the contrary, a hectare is utilised for selling land, making plans, and farming. A hectare is the same as 10,000 square metres. How to calculate the land area of any property? The land is divided into housing plots when roads, schools, parks, marketplaces, hospitals, and other facilities are created. From the layout drawings, you can figure out how many plots there are and how big they are. The deed of sale for a resold property includes the property’s size. For a housing unit, the size is usually offered in square feet. But when it comes to agricultural land, the size of the property is measured in Hectares or Acres. To figure out how big a piece of land is, you ought to multiply its length by its width. Units used to calculate the land area: Northern India Units UsedConversion ValueName of States1 Bigha968 sq ydParts of Uttarakhand and Himachal Pradesh1 Bigha-Pucca3025 sq yd, 1 Pucca-Bigha=165 feet by 165 feetBihar and parts of Punjab, UP, and Haryana1 Biswa-Pucca151.25 sq ydUpper parts of UP, Haryana, PunjabBigha- Kachha (Kachha Bigha= 1/3 Pucca Bigha.)1008.33 sq ydSome parts of Haryana, Punjab, UP1 Biswa (Kaccha) (1/20 of Bigha Kaccha)50.417 sq ydLower parts of Haryana, Punjab, UP1 Biswa48.4 sq ydIn some parts of Uttarakhand, HP 1 Killa4840 sq yd (An Acre is also known as Killa)Areas of Punjab and Haryana1 Biswansi1/20 of Biswa. 1 Biswa= 20 BiswansisPunjab, Haryana, UP, Himachal Pradesh, and Uttarakhand1 Kanal5445 square feet. 8 Kanals= 1 AcrePunjab, Haryana, J and K and Himachal Pradesh1 Ghumaon4840 sq ydSome parts of Haryana, Himachal Pradesh, and Punjab Units used to calculate the land area: Southern India Units UsedConversion ValueName of States 1 Cent435.6 sq ftKerala, Tamil Nadu and Karnataka1 Ankanam72 square feet, 1 Acre=605 AnkanamsParts of Karnataka and Andhra Pradesh1 Guntha1089 sq ftKarnataka and Andhra Pradesh1 Ground2400 square feetAreas of Tamil Nadu1 Kuncham484 square yards,10 cents= 1 KunchamAndhra Pradesh People in Maharashtra use “Guntha” a lot, just like those in Andhra Pradesh and Karnataka. Units Used to Calculate Land Area: East India Units UsedConversion ValueName of the States 1 Decimal48.4 square yard, 1 Acre=100 decimalsWest Bengal1 Chatak180 sq ftWest Bengal1 Dhur3.6 square feetTripura1 Dhur68.0625 sq ftJharkhand and Bihar1 Kattha720 sqare feet, in Bengal 1 Bigha=20 KatthasBengal1 Kattha2880 sq ft, in Assam 1 Bigha = 5 KatthasAssam1 Lecha144 square feet, 1 Kattha=20 LechasAssam1 Kattha1361.25 sq ft, 1 Bigha (Bihar) has 20 KatthasBihar Units Used to Calculate Land Area: Western India Units UsedConversion ValueStates used in1 Bigha1936 sq ydAreas of Rajasthan and Gujarat1 Biswa96.8 sq ydLower areas of Rajasthan1 BighaPucca 3025 sq ydAreas of Rajasthan and Bihar1 BiswaPucca 151.25 square yardUpper areas of Rajasthan1 Biswansi1/20 Of Biswa, 1 Biswa = 20 BiswansisRajasthan Units Used to Calculate Land Area: Central India Units UsedConversion ValueName of the States 1 Kattha600 square feet, In Mp 1 Bigha= 20 KathasMadhya Pradesh1 Bigha1333.33 sq ydParts of Madhya Pradesh [B-02] Conclusion Before buying a piece of land, it’s important to know how big it is. In India, different states use different sizes of land to measure it. So, it helps to identify a comparable unit for the native term. It is useful for measuring land in the state where you want to buy land. An online tool to calculate land area helps you do this quickly and accurately. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Personal Loan

What Is An Acceptable Interest Rate For A Personal Loan?

Personal loans are highly helpful during financial emergencies. It is indeed one of the most common loans. The interest rate for personal loans ranges from 8-30% or sometimes even above. So, it is important to know the acceptable rate before applying. The interest rate on personal loans relies on several factors. Since the loan is unsecured, the interest rate is usually higher. Credit score, income, amount, repayment time, and tenure are the basis for interest rate calculation. This guide will help you to learn about the acceptable interest rate. This will help you to get a personal loan at a competitive rate. [B-01] Acceptable personal loan interest rate India’s average interest rate for personal loans is around 10.49% per annum. You will get a lower interest rate with the public sector banks. The rate offered by the private banks is usually high. But based on the credit score and financial status, the interest rate for personal loans will change. The acceptable interest rate on a personal loan ranges from 8-15% per annum. If you are offered a rate above this, you need to know the factors that might have impacted your interest rate. Types of interest rates for personal loans There are broadly two types of the interest rate applied by financial institutions: 1. Fixed or Flat Rate Of Interest Under this, the interest rate on personal loan is fixed and will be constant during the entire loan tenure. It is relatively higher than the variable rate of interest. The EMI is constant in this case. The entire tenure will remain the same. 2. Floating Interest Rate This is an interest rate that can change during the loan tenure. Any change in a bank’s lending rate or market volatility can change the interest rate. If the rate falls, it will reduce your EMI. The EMI will be high if the rate increases. Factors affecting interest rate on personal loan Various factors affect the interest rate on a personal loan. The top factors are as follows: Credit Score Your credit score is the most important factor in determining the interest rate. It defines your creditworthiness and repayment ability. A credit score above 750 is considered to be the best. It will help you get a low-interest rate for a personal loan. A low credit rate can lead to the rejection of your loan application. Your Income Your income plays an important role in deciding the interest rate for a personal loan. It decides the amount you can get. The higher the income is, the lower would be the interest rate. Higher income is a sign of timely and prompt repayment of the loan amount. Repayment History Apart from checking your credit score, lenders also check your repayment history. The check is usually conducted for the EMIs paid during the last 12 months. It is to check whether your repayment was timely or not. If repayment is on time, you could always ask for a lower interest rate on personal loan. Number Of Defaults Financial institutions also check your default rate before sanctioning a personal loan. The application is rejected in most cases if your default rate is high. Defaults are a sign of a financial issue, which makes repayment of the loan difficult. This makes you a risky candidate for loan disbursal. Debt-to-income (DTI) Ratio The DTI is the overall depictor of your repayment capability. It calculates the total amount of debt you have against your income. The higher the ratio, the lower your ability to repay the debt. A lower DTI ratio ensures that you have a surplus to pay off your existing debt. It increases your possibility of getting a new loan at a lower rate of interest. Relationship With Bank Applying for a personal loan becomes easier if you have a long relationship with the bank. Your financial history and creditworthiness are easily available with the bank. Also, there is a trust factor in the relationship. Based on this, you might get a lower rate of interest too. Your Employment Type The company for which you are working also plays a crucial role in your interest rate for the personal loan. The rate of interest will vary for permanent and contractual employees. Also, organisations with high stability will help lower the interest rate for employees working with them. Tips to get an Acceptable Interest Rate for a Personal Loan If you are looking for an acceptable interest rate for personal loan, here are some tips that can help you. Ensure to maintain a high credit score, preferably above 600. Compare personal loans offered by different lenders to find the best interest rate you can get. There are some seasonal offers where lenders offer you a lucrative interest rate for personal loans. Look for those offers. Discuss the fees or interest rate with your lender if you maintain a high credit score and long-term relationship. Look if you have a pre-approved offer on a personal loan. In that case, the interest rate on personal loans will be lower. Check the method of interest calculation used by the lender. Always confirm the additional charges, fees, and nominal annual percentage rate. This will be charged to your loan and added to the cost. If you still do not find an acceptable interest rate for personal loan, look for the red flags in your borrower profile. You should work on the red flags to remove them. This will increase your chances of getting a better interest rate for loans. [B-02] Conclusion A personal loan is an unsecured loan offered based on your documents and credit history. This loan is disbursed fastest and can support your financial needs. When comparing the interest rate on personal loans, look at all the factors to get the right estimation. There is no doubt that the acceptable interest rate for a personal loan ranges from 8-15% per annum. But this rate is based on numerous factors. If you have a good borrower profile but need a better interest rate, you should connect with other lenders to get a fair comparison. To learn more about the acceptable interest rate for personal loans, you can check Piramal Finance.

08-11-2023

Personal Loan

Calculate Personal Loan Prepayment or Foreclosure Amount with Piramal Finance

Calculator for Personal Loan Repayment If you don’t pay interest, you can enjoy your life without stress. Paying off the principal amount before the loan term ends is all it takes to calculate a personal loan. You can pay the principal off all at once or in parts. You can also use the Piramal Finance personal loan prepayment calculator to figure out the Installment, the prepayment rate of interest, and other important details. [B-01] Why using a personal loan prepayment calculator is a good idea? Using a personal loan prepayment calculator has the following benefits: Easy Ways to Pay Off Debt To live a worry-free life without debt, you could save some money and put it toward your loan’s principal. Calculating Personal Loan prepayment also helps keep EMI costs low because the principal amount goes down by a certain percentage. Pay less in interest You must have enough money to repay the loan within the first few months of your stay. Most banks and other financial institutions want a commitment of at least one year. It means you can’t pay back your debt in full or for a year. But after the year is up, you can pay off the remaining debt and save a lot of money. How do you use a calculator to pay off a personal loan early? A Calculate Personal Loan needs of EMI can be changed with the help of prepayment. The prepayment personal loan calculator needs to know the loan amount, how long the loan will be, and the interest rate. If you already have a personal loan, the personal loan prepayment calculator will ask you for the remaining loan amount, the number of payments you’ve made so far, the amount you want to pay off early, the interest rate, and the length of your loan. Using a personal loan EMI calculator that lets you pay off the loan early, you can figure out how much money you would save on monthly payments. What Does Loan Foreclosure Mean? With a loan, you can buy whatever you want – whether a car, a house, or just some consumer goods. Loans break up big expenses into smaller monthly payments, but the interest they charge makes the product more expensive than it would be otherwise. But your average income goes up when you get a raise or a promotion at work. With the extra money, you could get out of debt by foreclosing on your loan and saving the extra interest you would have had to pay if you paid it off in instalments. Debt foreclosure is when you pay off your loan in full and for good all at once instead of making smaller payments with interest every month. However, how do you Calculate Personal Loan amount you need to pay to foreclose your loan? In this case, a loan foreclosure calculator can be helpful. If the loans were not foreclosed, the banks would lose the interest they had already paid. Because of this, some banks charge you a certain interest rate (around 4%) if you pay off your loan early to avoid foreclosure. But if you want to avoid paying huge monthly interest, this is a small price. Based on a few facts about your loan, you can quickly Calculate Personal Loan Foreclosure Costs and get an idea of how much you’ll need to pay to get rid of it. Loan foreclosure calculators can help you figure out how much you’ll have to pay today to pay off your loan and how much interest you’ll save. How do you figure out how much the foreclosure will cost? You need to put the following into your: The loan term, in months or years, is how much money is still owed. The interest rate in question (per year) How many monthly payments have you made so far Several calculators may ask how many payments you made to determine the month of foreclosure. Any fees your bank charges for the foreclosure of the loan. It might be in the paperwork for your loan. Here are some things you can do to avoid losing your loan: These tips will help you prepare for and start the loan foreclosure process. You should call your bank: Contact your bank’s customer service. They will help you solve any problems and enter the right information into the Personal loan foreclosure calculators and other loan foreclosure calculators. Keep your KYC up to date and apply: After you use the foreclosure loan calculator to figure out how much you need to pay to get rid of the loan, go to your bank and fill out an application to start the process. Keep your PAN Card, Aadhaar Card, and loan paperwork handy if you need to send them with your application. Bring all of your papers: Don’t forget to bring the following papers with you as proof that you’ve paid off your loan: Letter from the bank saying that you have paid the loan in full. No dues certificate from the bank says you don’t have to pay anymore. Receipt for the last payment before closing. The end of a bank loan and the “no objection” certificate Don’t forget to cancel any standing orders or EMI repayment reminders that are already in place. Credit Scores: You can get lower interest rates, better card offers and perks, faster loan approval, and many other benefits if you have a good credit score. As you pay off the debt, your credit score will go up. If it doesn’t get updated, you should let the credit rating companies know so you can get the benefits of having a good credit score. Costs and calculations for a loan foreclosure: The paperwork for your loan is the key to making accurate calculations. Your loan paperwork, whether for a person or a house loan, has all the information you need to figure out home loan foreclosure costs or other penalties for foreclosure. Some financial companies only charge loan foreclosure fees if the loan is not paid back within the first few years. For example, some house loans don’t have pre-closure costs if the loan is paid off after five years of EMI payments. [B-02] Conclusion You won’t have to pay penalties for paying off your loan early or going into foreclosure until you’ve made at least one month’s payment. If you want to close your loan account, you need to pay 4% of the amount you still owe plus any taxes due as of the deadline for full prepayment. Calculate Personal Loan prepayment or Foreclosure Amount calculator from Piramal Finance gives you some benefits you can use in your monthly payments.

08-11-2023

Personal Loan

What Are The Factors That Can Affect The Terms Of Your Loan?

While there are many things business owners can consider when looking into loans for their companies, it’s important to understand the risks and pitfalls ahead of you. Many different types of loans are available to businesses, but lending amount under various types of loans is different. Understanding your loan options and how they could affect the terms is key to making the right decision for your company and its future growth. Read on to learn more about the eight major factors that can influence the terms of your loan. [B-01] The Amount You Need As Loan This factor has the most significant effect on the terms of your loan. You will likely default if your loan request isn’t backed by enough income to make payments. In some cases, this can lead to costly consequences. If you need more clarification on how much you need, your first step should be to see a loan officer. A loan officer can help determine the loan you’ll need for your business. When going to a loan officer, you’ll need a detailed understanding of your business and its projected growth. You’ll also want to have a solid plan of how to use the money you’re requesting and, more importantly, how you plan to pay off the equated monthly payments or EMIs after the end of the moratorium if any. Your Credit Score This is one of the most important factors to take into consideration when looking into loans for your company. Lenders use your credit score between 300 and 850 to determine your ability to repay a loan. Although it’s not likely your credit score will be 800, it’s still important to try to keep it as high as possible. A low credit score can significantly affect your ability to get a loan. One way to do this is to pay your bills on time and to keep your credit utilization as low as possible. There are various ways of doing this. For example, you must make it a point to be punctual with paying your existing EMIs. How Long Do You Need the Loan For The tenure of your loan will significantly affect the terms of your loan. A longer loan term means smaller EMIs while a shorter loan term means higher EMIs. You must check your paying capacity. If you’re taking a large loan and have low paying capacity, your EMIs will have to be stretched over a longer time. However, you will end up paying more interest on a longer loan term while if you cut short the repayment duration, you will substantially save on the interest. The Interest Rate The interest rate on the loan you take out will have the biggest impact on the terms of your loan. If the lender considers you a repayment risk, they will charge you a high rate of interest. Also, a lot will depend on whether you are choosing a fixed interest rate or a floating one. In a fixed interest rate loan, your rate of interest will remain constant regardless of whether they rise or decrease in future. However, a floating interest rate changes according to the changes in the market. The Lender’s Risk Concerns The lender’s risk concerns will significantly impact the terms of your loan. Many loans, including most business loans, come with collateral. Your lender may insist you use some of your assets as collateral to back the loan. If yours is a high-risk case, the bank you are seeking a loan from may impose tougher terms on you than on another person who has, for example, a better credit score or a good financial history with the bank. The Size of Your Business The size of your business will affect the terms of your loan. If you have a small business, you can get a business loan with a lower down payment or a longer repayment period. If you have a large business, the risk factor may force the bank to introduce tougher conditions for the loan. The Type of Loan You’re Looking For This factor will have the biggest impact on the terms of your loan. Loans will be categorized as commercial, SBA, bridge or other types of loans. Many types of commercial loans are available, but some may have better terms than others. For instance, a personal loan may have a completely different set of terms and conditions than a home loan. Understanding which loan type best suits your or your business needs is important. Co-signers and Collateral This is one of the factors that will have a significant impact on the terms of your loan. Co-signing a loan is when one person (the co-signer) is responsible for paying the loan if the borrower doesn’t make the payments. The introduction of a co-signer introduces an added guarantee of repayment. In such cases, lenders may offer relaxed terms and conditions. [B-02] Wrapping Up The factors that can affect the terms of your loan are endless and varied. It’s important to understand what these factors could mean for the terms of your loan before you even apply for one. By understanding these factors, you’ll be better equipped to make the best decision for your company. If you wish to take a loan at the most favourable terms, you must check out the flexible options provided by financial institutions like Piramal Finance.

08-11-2023

Personal Loan

Perfect Details On Personal Loans From Private Finance

Personal loans are one of the most acceptable and widely used forms. It is easily available. There are multiple uses for personal loans. It was previously offered by banks only. Today there is an option to take a personal loan from private finance. A personal loan from private finance comes with numerous questions. Knowing the benefits and eligibility criteria is important. Read through this guide to find answers to all your questions and plan accordingly. [B-01] What is private finance? Private finance providers are non-banking institutions. It performs all the monetary functions like a bank. It offers personal and other loans but is not a member of the banking or financial industry. It works in collaboration with NBFCs or banks. These follow all the guidelines stated by the government. The process of loan disbursal, followed by private finance, is comparatively quicker, and the eligibility criteria are also simpler. Also, these institutions provide loans to people with low credit scores. Hence, securing a personal loan from private finance is quicker and simpler. But there are various aspects to know before applying. Eligibility criteria for a personal loan from private finance Knowing the eligibility criteria for a personal loan from private finance is important. The criteria are very simple and straightforward. The things that would need are: 21 to 57 years is the required age. The minimum salary/income needed is INR 15000 PM. It may vary. Have a consistent income source. A minimum of 6 months of employment is a must. A good CIBIL score, usually above 600. Documents required for a personal loan from private finance The document required for personal loans from private finance is simple. The basic documents required are the same. The additional documents are based on your profile. The following documents for the personal loan from private finance are a must. The main set of documents you should submit is: 1. Identity Proof – Submit anyone from below: Passport Driving license Aadhar card Voter ID 2. Address Proof – Submit anyone from below: Passport Driving license Aadhar card Voter ID Registered Leave and Lease Agreement Utility bills like Telephone Bill / Electricity Bill. It should be at most 3 months old. 3. Latest passport-size photograph, as needed Additional documents for salaried You will be required to submit the income proof like: Latest or last 1 month’s salary slip Last 3 month’s bank statement Additional documents for self-employed If you are self-employed, you should submit the following documents: Balance sheet or P&L statement for the last 2 years. Income tax return for previous 2 years. Proof of business. Income tax challans. Conditions for co-applicant You can use a co-applicant if you wish to apply for a higher loan. The income will be clubbed for loan sanction. Co-applicant can be a spouse. All the documents mentioned above need to be submitted for co-applicant as well. Benefits of personal loan from private finance There are multiple benefits to personal loans from private finance. The top ones include: Fast processing You can get a personal loan from private finance with easy eligibility criteria. Approval takes around a day. It can be even sooner based on the case. This way, you can get your loan quickly to meet your needs. Online processing available Most private finance institutions offer online processing, and you can apply for a loan from their application and website. Once you submit all documents for personal loans from private finance online, your application process ends. Less strict credit score rules With a low credit score, you can still apply for a personal loan from private finance. You can still apply for the loan even if your credit score exceeds 500. The interest rate might be high, but the chances of approval are high too. Greater acceptability A personal loan from private finance is available for both salaried and self-employed. You can easily apply for a loan if you want to expand your small business. Competitive rates The interest rate changes by private finance start from 11% per annum. The rate will depend on their internal criteria, which makes their rates flexible. Quick disbursal A personal loan from private finance offers quick disbursal. Once the approval is received, the amount is usually disbursed within minutes. Is a personal loan from private finance safe? This is quite a common question when applying for a personal loan from private finance. The platforms follow the entire guidelines as followed by banks. At the same time, the process is comparatively simpler and quicker. Transparency is one of the biggest benefits of personal loans from private finance. Even though the rate is comparatively high for some, the processing is very fast. Yes, taking a personal loan from private finance is completely safe and legal. It is easy and quick. The online process saves your efforts, time, and money. The online process with no documentation and quick disbursal is a key reason to apply with private finance. Is a personal loan from private finance right for you? A personal loan from private finance is a great way to meet immediate financial needs. But you should know if you need a personal loan or not. To find out, follow the tips below: Apply for a personal loan when you have immediate financial need. When you are looking to pay off high debts. When there are necessary but unforeseen expenses. If you are willing for business expansion or renovation but need a low rate of interest loan. If you are looking to finance large but essential expenses. [B-02] Conclusion Financial need is one of the primary reasons to apply for a personal loan. There are multiple options to apply for a personal loan. Ultimately, the lender would need you to repay the loan you have taken. A personal loan from private finance is a good and safe option. It is available online, time-savvy, and quick. Also, the eligibility criteria and credit score needs are simpler for it. Compare the rates offered by multiple lenders to get the best deal. The best way to apply for a personal loan from private finance is to start checking your eligibility online. You can visit Piramal Finance to gain information on a personal loan. Also, you can connect with customer support and get a quote.

08-11-2023

Personal Loan

What are the Main Advantages of a Secured and Unsecured Loan?

Buying a big house in India is still a distant dream for many. Scores of people still dream of owning a car even after working for decades. More people brew innovative business ideas that are able to manifest them. A child’s education abroad (or in premier national institutes) is still expensive for middle-class parents. Countless instances such as the ones specified above remain in the realms of wishful thinking, plans, and dreams, never seeing the light of day. And if we are to find that one, almost obvious culprit, behind so many unfulfilled aspirations, then it has to be funds or cash. Funds seem to come in the way of dreams and living them in reality. But loans have come to the rescue since the birth of modern money, at times of financial uncertainty, shortage, and insufficiency. When it comes to loans, especially the high-ticket ones (car loans, home loans), you’ve got to decide between obtaining a secured, or unsecured loan. [B-01] Once you’re done choosing between them, the final steps involve checking your eligibility for the loan, gathering documents, filling out the forms, and finally applying for it. But what are secured and unsecured loans? Let’s check out the basics, advantages, and other things about secured and unsecured loans. What is a Secured loan? Loans or credits obtained from banks and other NBFCs are primarily of two types: secured and unsecured. Lenders offer secured loans in exchange for collateral security. It means you’re essentially pledging a certain thing as “collateral security” (in any form of an asset like land and buildings, gold, etc.) as the bank’s safety measures. If the borrower fails to pay the loan, the bank uses collateral security to recover the debt. Such loans often include mortgages and car loans. The bank files negative credit reports (also called NPAs or non-performing assets) if the borrower fails to pay the amount. This act by the bank affects the borrower’s credit score (CIBIL) and the overall image of the borrower, effectively preventing that person from borrowing loans in the future. The interest rate is lower for secured loans, and the borrowing limit is often high. What are Unsecured Loans? If secured loans require collateral to get sanctioned, then unsecured loans are just the opposite. Banks offer unsecured loans without collateral security. Your credit score and income must be high for an unsecured loan. High creditworthiness helps sanction unsecured loans easily. Unsecured loans are risky for both lenders and borrowers. If borrowers fail to repay the amount, then the lender can take legal action. However, lenders can’t take property automatically for recovery. In unsecured loans, the interest rate is high and the borrowing is restricted to smaller amounts. Characteristics of Secured and Unsecured Loans Both secured and unsecured loans have specific characteristics. They are as follows: SECURED LOAN CHARACTERISTICS For lenders: Less risk due to collateral security The lender technically owns the borrower’s collateral until the loan recovers The lender has the right to collateral for recovery of the loan amount A lender decides the loan amount Lenders can file positive/negative credit scores against the borrowers For borrowers: Collateral increases the risk High-borrowing limits Low-interest rates Long repayment time Poor people can easily apply UNSECURED LOAN CHARACTERISTICS For lenders: No collateral brings more risk Lenders can’t seize property by default to recover the loans Lenders can only take legal action Lenders set loan amounts and interest rates as per their wish For borrowers: Less risky Income and credit scores must be high High interest and fewer amounts Strict eligibility to pass Advantages of Secured and Unsecured Loan Banks offer secured and unsecured loans, which have a number of advantages. These advantages may benefit one but not the other. This is why it is advisable to carefully read and compare the characteristics before choosing between secured and unsecured loans: Secured loan advantages High loan amount accessibility In a secured loan, the borrowing amount is higher than in an unsecured loan. A large loan amount can solve many problems for the borrower. The collateral values 85-95% of the loan amount. You can apply for a higher loan amount with your valuable collateral security. The collateral security brings trust to the lender. If the borrower fails to pay, collateral security is there for recovery. Has low-interest rates The high-value collateral security gives lower interest rates to the borrower. The security brings relief to lenders in regard to recovery and hence allows them to charge less interest on the loan. A high credit score is optional for such loans. Income is also not a concern for a secured loan. Keep the legal papers updated if you’re applying for a loan with land as collateral. Updated documents help in the quick sanctioning of loans. It increases the credit score as well. Does not require a high credit score A high credit score is not an issue in the secured loan application. The income statement is also not necessary. Poor or middle-class people with low or mediocre incomes can apply with collateral. Helps build creditworthiness You can increase your credit score with a secured loan. All you need to do is pay the repayment amount (interest plus principal) on time. Timely repayment reflects a positive image of the borrower. The bank files a positive image and expands its credit score. A high credit score increases credibility for future business and personal loan eligibility. Gives longer tenure for repayment You can pay the repayment on time to increase the tenure. The bank may divide the amount into small intervals upon trusting the borrower with timely repayments. It is easy for the borrower to pay a small amount monthly. You can negotiate the debt repayment interval and amount with the bank. Unsecured loan advantages Fast disbursal Banks sanction unsecured loans quickly as they don’t need collateral. An unsecured loan eliminates the lengthy documents as it doesn’t need collateral. You can easily apply for a loan without collateral. Only a high credit score can get you a fast loan disbursal. Flexibility You can apply for an unsecured loan and choose a mode of repayment. Borrowers can pay the repayment amount once without penalties. You can draw the amount of your choice whenever you want. The bank charges interest on the amount only used at present. It gives access to the borrower to close the whole loan in 6 months. Does not pose assets risk If the borrower fails to repay on time, the asset will not be at risk when it comes to an unsecured loan. The lender can’t seize the collateral automatically. You can apply for more time and answer the lender legally. Helps manage cash flow Unsecured loans help with money in critical situations. It helps in the investment and purchase of assets in a growing business. Increases your credit score You should always pay the repayment amount on time. It helps increase the credit score through the bank. It builds your creditworthiness for the future. It makes you eligible for a high amount of loan approval for further needs. [B-02] Takeaways As you have just seen, there are various advantages to both secured and unsecured loans. Collateral security is the only difference between secured and unsecured loans. Middle-class borrowers can apply for a secured loan. This is because it needs no credit score or valuable collateral. People with high credit scores can easily get a secured loan. Read about the advantages and characteristics of secured and unsecured loans. For more insightful articles on financial topics, bookmark the Piramal Finance blog page for similar blogs.

08-11-2023

Personal Loan

Are There Any Advantages to Applying for a Personal Loan Online Instead of Offline?

Do you want to apply for a personal loan? But need clarification on the differences between applying for a personal loan online and an offline personal loan? Or do you need help with your best course of action? If you have any of these concerns, consider the advantages of both online and traditional loan choices before choosing. [B-01] What is a Personal Loan? A personal loan is an unsecured loan. It helps you in adverse cases. These can include going on a trip, buying a new electronic device, paying for your small business costs, making improvements to your home, or combining your debts. You can spend your money wherever and however you want, and the lender has no say. As personal loans are unsecured, you can apply without putting anything up as collateral. Top 5 Advantages of Applying for Personal Loan Online Quick & Easy Personal loans can help you save time and effort. You can apply for a personal loan online from your home. And you can get the money in a few hours or days. Personal loans can be used right away. You must fill out a loan application and show proof of identity. The lender looks at your credit history as well as your credit score. If the loan is approved, the lender puts the money into your bank account. The process is very simple and quick. There’s no need to go bank. This is also helpful when you need cash quickly. No Security Required Applying for personal loans that don’t require collateral could be up to Rs. 30 lakh. Most individuals can get personal loans. Personal loans let you borrow money without putting up much in return. No Limitations Applying for Personal Loan Online can be used for various financial needs. This is because they are flexible and easy to get. For example, you could use them to buy the newest phone or fix your house. A personal loan gives you money immediately to use for medical emergencies. When you apply for a personal loan, the lender doesn’t ask you why you want the money. So, you can use the money for more than one thing. For instance, you could use some of it to buy a new bike and use the rest to pay for your next trip. The choice is yours. The loan provider won’t get in the way. Minimal Paperwork Applying for Personal Loan Online requires minimal documentation. Your credit score and credit history mainly decide if you can get one. If your credit score is good, you can easily get a loan for a large amount. Getting a personal loan is much easier than getting a business or home loan. Hence, you can apply for a personal loan online and not worry about being turned down. Flexible Repayment Time Depending on your credit history and the loan amount, you may get a good interest rate on a personal loan. You have nothing to worry about if you have a steady income, a good financial situation, and a high credit score. You can get a low-interest rate loan. This makes it easy to fit into your budget. Some personal loans don’t charge any fees for paying early or not paying them back on time. So, the costs of the loan are cut down even more. The settlement terms are flexible. They can go up to 60 months. This gives you plenty of time to pay off your debt. It can be a good way to get money in an emergency or make your dreams come true without debt. Top 5 Advantages of Applying for Personal Loan Offline Better Support You get greater customer care and help than the small personal loan online funding. Branch executives have to follow a rigid code of behaviour. These experts walk you through each stage of the loan application procedure step-by-step. If you have any questions, they can assist you in finding answers right away. Door-to-door service Financial firms offer doorstep services. They send their executives to the client’s home or place of business to gather paperwork, sign loan applications, and ease client concerns. These executives visit clients as frequently as necessary. An offline emergency loan is thus your best choice if you are hesitant about presenting any papers or don’t understand the paperwork. Optimal Comparison An experienced executive team works with financial institutions. These executives quickly determine your needs. They then provide you with a table with a list of all of their financial goods after doing so. The interest rate for personal loans, fees related to personal loans, and other information are also included in the table. You may pick the loan package that best meets your requirements by just glancing at the table. Zero additional fees Most consumers believe that they must pay extra fees for in-person services at the branch while applying for a personal loan offline. This is not the case, however. For their offline services, financial institutions don’t charge the borrower any more money. The fees you pay go toward processing your loan and a few other required loan-related costs. No Credit Threat Long-term effects on your credit history might result from selecting a personal loan with the incorrect loan amount or term. However, you will have access to the guidance of knowledgeable financial executives when you apply offline by going to a financial institution’s branch or outlet. You will avoid a bad credit situation thanks to this. [B-02] Conclusion It comes down to convenience and understanding of personal loans. Both online and offline financing choices for personal loans have their benefits. The difference between the online and offline approaches is not much. You may choose any of them for rapid personal loan approval and disbursement based on your preferences. Some borrowers also question if they can trust internet loans. The truth is that if you apply for personal loans online with respected financial organisations, there is no reason for you to be worried. For everyone, Piramal Finance is a fantastic source of funding. Visit their website to learn more about the goods and services they provide.

08-11-2023

Personal Loan

How Can I Get an Immediate Loan Online?

Most people who need money quickly borrow it through personal loans, payday loans, cash advances online, banks, or credit organisations. However, be aware of cash-out choices that offer a short-term loan without any background check. Some lenders only want to take advantage of people with bad credit who are desperate. It’s always a difficult situation when you require money urgently. Even though there are many ways to get a loan, it is best to do a lot of research first. People with good credit often get the best rates and terms on loans. But don’t worry; just because you have a bad credit score and no money in the bank doesn’t mean you can’t get an immediate loan online. Even if you have bad credit, here are some of the best ways to get the money you need. [B-01] Options for an Immediate Loan Online An Installment Loan for Individuals This is an unsecured loan with monthly payments that lets people with bad credit borrow more money and pay it back over a longer period than payday lenders. Their interest rates have also gone down. A personal instalment loan is usually safer than a payday loan if you need cash for an emergency, to pay bills, or to consolidate other loan payments. Cash Advances on Credit Cards This choice is for people who already have a credit card. It’s just a way to get cash out of an ATM or move cash from your credit card to your checking account. This solution doesn’t require a high credit score or an online lender. Only a credit card is needed. But with this choice, there is no grace period, so interest starts to build up immediately. Also, if you choose this option, the interest rate may be higher than for regular credit card transactions. Getting money from a credit union These are much like banks, but the fees and interest rates are lower. This is because non-profits care more about giving their customers better goods and prices than making money. You might still need a good credit history to be approved for an immediate loan online. These are some of the best ways to get cash loans online when you need them fast. Choose a safer and cheaper personal loan to protect your money. What does Immediate Loan Online do? It might not be easy to borrow money quickly, especially when so many other options exist. How do you know which online lender or immediate loan online is best for you? It depends on what kind of loan you want and which ones you can get. You need to know how some of the most common solutions work before figuring out which ones are available. Read on to learn more about the most common types of personal loans, how they work, and what to expect if you apply. Personal Loan A personal loan, sometimes known as an instalment loan is a type of unsecured loan that individuals utilise to cover unexpected needs and repay over time. There are different types of these loans, but they all have one thing in common: you pay them back over time in monthly instalments, not all at once like a payday loan. Personal loans with payments are often given to people who may not have perfect credit. This is one reason people with bad credit often choose personal loans over loans from banking institutions or credit organisations. Many financial institutions will only give an immediate loan online to people with strong or good credit. However, if you’re already in a hurry and your credit isn’t perfect, you may still be able to get a few personal loans. They are easy to understand in how they work. You should begin by looking for a creditor you can trust. Creditors can be found in person or online. Before you want to apply: Read their reviews on the Internet. Talk to them and ask questions. Look up everything you can about their immediate loan online. This could save you time and money in the long run. If you’re sure you’ve chosen the right lender, it’s time to apply for a loan. Payday Advances Loan Payday loans, as previously stated, are short-term, costly means for consumers to take money to be paid again. Many of those who utilise it have less-than-ideal credit and can’t get an immediate loan online from regular lenders. But these loans are risky because they have high APRs and are due back quickly. Most payday loans must be paid back within two weeks or when the borrower gets their next paycheck. Some states let borrowers extend the two-week term for paying back payday loans. Make sure you know the rules and laws of your state. Even if the borrower has more than two weeks to repay the loan, it may still be hard. This is because the fees and interest rates are too high. Loans with Security A secured loan is another common way to get money quickly. All secured loans have one thing in common: that is collateral. This means you must give the lender something of value before you can borrow money. What that thing is will depend on what kind of loan you’re looking for. A few examples of secured loans are mortgages, car title loans, and loans from pawn shops. For each of these immediate loans online, the borrower must put up something of value as security. For an auto loan, the car itself is used as security. A mortgage is a loan that is backed by the home as collateral. If you don’t pay back your immediate loan online, the lender will eventually seize your collateral to compensate for the loss. [B-02] Conclusion There are many ways to get money if you need it, both online and in person. But getting approved and having good interest rates is much easier if you have a good credit score. If your score is low, work on getting better with money so you can raise it. It could take a while for your score to go up, but it will be worth it in the end. The most important thing to remember when shopping for a loan or other financial tool is to do a lot of research. Call the lender and ask questions, read reviews from other customers, and ensure you understand all the terms and conditions. You can find the right loan and lender for you if you do your research. Visit Piramal Finance to find out more about this sort of thing. Do not forget to explore the various products and services they offer.

08-11-2023