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How To Calculate Returns of Mutual Fund SIPs Using MS Excel

The full form of a SIP is a systematic investment plan. It helps you invest small amounts regularly at fixed intervals. This makes it very easy for people to invest. Just decide on the right amount from your salary and keep it aside. It is very good for long-term investments. You can decide the time. It could be a week, a month, or a quarter of a year. We can use the mutual fund SIP calculator for complex calculations. [B-01] How to calculate SIP using MS Excel? Before this, let’s understand the term “NAV.” Its full form is “net asset value.” It means the cost of a single unit in a mutual fund. For example, the cost of one pen is 10 rupees. The cost of three pens is 30 rupees. So the cost of a single unit is NAV. It can vary with mutual funds. It is very important to understand NAV before investing. Mutual Fund SIP Calculator The following is the process for calculating SIP returns in MS Excel: Decide on the fixed SIP amount. Decide on the period. Note down the NAV values for that period. Calculate the number of units. Calculate the total amount based on units. Detailed explanation and formula: Take three columns in Excel. In the first one, mention the time intervals. Write NAV values in the second one. Write the decided value of SIP in the third one. Use the following formula to calculate the number of units: Formula: (no. Of units)=Amount/NAV. Add all the units of every month. Note its value. Calculate the total amount using the formula: Formula (Total amount)=Total no. of units × Latest NAV values. The last step is to calculate the profit earned. The formula used to calculate the profit earned is Formula (profit earned)= Maturity amount – Total amount. Now, let’s understand the maturity amount: It simply means “future value.” It is the amount to be received based on the time interval. Your funds are in your hands. You decide to keep or sell them. You can sell them any time you want. However, there are exit criteria linked to the sale of some funds. Some funds cannot be sold before the deadline. You will also get charged under the exit criteria. It’s almost 0.1% of the amount. This is a negligible amount of your profits. You can make decisions related to time. Or according to your comfort. Doing some research before buying and selling is a good option. How to calculate the maturity amount or future value (in MS Excel): We can use formulas in Excel to calculate the maturity amount. This is a very easy process. For calculations, we don’t have NAV values for the future. It is not possible to have exact NAV values for the future. But we calculate the expected NAV values. This step is needed for further processing. This value is termed “yearly expected returns.” Steps to calculate Open a spreadsheet in MS Excel. Write the number of months in one column. Mention expected yearly returns in the second column. Write the value of NAV for the first month. Keep track of the expected annual returns. Calculate the next month’s NAV value using the yearly expected return. Calculate the current month’s NAV value. The formula to calculate the current month’s NAV value is [(Yearly expected return / 12 × NAV of last month / 100) + NAV value for the previous month] Use the above-given formula in Excel. All the formulas in Excel are written in the formula tab only. It is user-friendly software. Using the above formula, calculate all the NAV values for the remaining months. Calculate all the NAV values for the remaining months using the above formula. The formula to calculate the number of units is: Number of units = Amount / NAV Add units for each month. Note the sum of the units. After getting all the values above, we need to calculate the maturity amount. The formula used to calculate the maturity amount (mutual fund SIP calculator) is: Formula (Maturity Amount) = Total number of units × Latest values of NAV Hence, we get the maturity amount. Now, the profits for the year can be easily calculated. The formula to calculate the profit is:Maturity amount (Future Value) – Total amount which was investedBy following the above steps, we can easily figure out the returns of a mutual fund SIP with MS Excel. Benefits of SIP Little investment: The SIP requires very little investment. It is there for long-term investments. This makes it open for everybody. The user is free to decide the time interval as well. It has a user-friendly interface. People can invest a small amount of their monthly salary. This can benefit them in multiple ways. It can even open new doors for them. This introduces people to a new world of finance. A mutual fund SIP calculator can be very helpful for this. It helps to calculate the correct amount to be invested. Simple to use: Calculating the returns of mutual funds SIP is very simple. There is no need for a financial background. Anyone with basic knowledge of MS Excel can use it to calculate the returns on SIPs. All of the steps for calculating mutual fund SIP returns using MS Excel are detailed above in the blog. Enables Cost Averaging: One of the most important benefits of SIP is that it enables cost averaging. You can buy units based on the NAV value. If the NAV value is high, buy less. If the NAV value is less, buy more. This helps in proper planning. It is also useful because you can make changes. Everything here is in your own hands. Achieving goals: It is very useful for people who have knowledge but don’t have a lump sum to invest. They can invest small amounts at regular intervals. This adds up to a great profit. Good investments can surely help in achieving long-term goals. [B-02] Conclusion In the end, investing is useful. The returns of mutual fund investments can be easily calculated. This is done in MS Excel. It is an easy process. It can motivate the youth to learn, grow, and invest. For more information, visit Piramal Finance.
08-11-2023
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Tips & Advice

Top 10 Facts & Benefits of Recurring Deposits in India

A Recurring Deposit (RD) account has always been popular. It has retained its popularity despite many new-age schemes. It is similar to FD but does not demand a lump sum amount for deposition. As the name suggests, recurring deposit involves depositing money annually for a determined period. Later, people can benefit from the interest earned. It is popular for the convenience with which people can invest. RD is especially preferred by people not ready to face the consequences of being an irregular investor. There are many benefits of RD, and a few are listed below to make a future investor understand its value. [B-01] What makes an RD differ from FD? The recurring deposit has a lot of common features with the fixed deposit. The key difference is that FD involves a huge investment upfront, and the interest will be gained over time. Whereas in RD, the investor has the advantage of initiating the investment with a small amount and can increase the amount by month at their convenience. The interest profit will be high in FD as the money invested is huge. But this edge for FD recognizes the numerous benefits of RD. How to create an RD account? The procedure is the same as the other mutual fund investment options. Reach out to the nearby bank. Fill out a recurring depositing account opening form. Submit the details with an added cheque for the first instalment. Before opening an account, decide the interest rate, the instalment’s tenure, and the amount. Carry all the relevant proof of details requested by the bank. The RD account can also be opened via a post office at one’s convenience. How does RD benefit an investor? As an investor, anyone will try to have control over their money. This is much more possible with recurring deposits than with other high-risk investment policies. First things first, starting the investment with very low money is probable. The initial amount may vary with the choice of bank. This lets people from all financial backgrounds start their investment journey. Since there is low to no loss, it encourages newbie investors who are sceptical about taking the first step. The investor can also determine the investment duration depending on their goal. The assurance in return is what makes this scheme better than other schemes. So, an investor can strategize a plan and achieve their goalkeeping the benefits of RD in mind. What makes the RD stand out? High-Interest value: The recurring deposit has a high investment return value compared to the mutual fund SIPs. This is because SIPs, other mutual funds and stocks are highly prone to risk and market volatility. The interest rate for an RD is fixed at the beginning of the investment; thus, returns cannot fluctuate. Low risk: One of the noticeable benefits of RD is it involves low risk. It is perceived as a safe form of investing money. It is not subjected to any variation in the share or stock market. Flexibility: The amount involved in an RD is flexible to the investor’s convenience. They can increase or decrease the money intended to invest at any specific period, and this will not have any legal or fineable backlash. Easy payment: There is no obligation when it comes to investing in an RD. It does not demand in-person investment nor rules to be followed for how money is transferred. It can be transferred from either a savings or a current account without breaking a sweat. Achievable short-term goals: Recurring deposits are the go-to investment scheme to attain any short-term goal. It is flexible for both long-term and small-term goals, unlike certain mutual funds where the profit earned via interest is visible only after a decade. This crucial benefit of RD is what makes it famous among the common people. Minimal initial investment: The initial investment can go as low as Rs.100 in some banks. This low minimal investment invites a large number of investors across all ages despite a poor financial situation. Similarly, the minimum tenure starts from 6 months to one year. Thus, one need not fret about their future financial situation. Makes saving easy: With all the above-mentioned points, even the worst spendthrift could be persuaded into saving money. Knowing the money is secured yet yielding a profit in the form of an interest rate is a good enough reason to save the money. Online mode of investment: The only difficulty ever faced by the public with RD or any other form of investment for decades is the long-standing queue in every bank. This is now the case with the prevailing digital advancements. Money can be invested anytime, anywhere, using the online facilities of the banks. The wide age range for investors: RD breaks the stereotype posed by other schemes of investing only after a certain age. In recurring deposits, the minimum age goes down to as low as 10. Kids can open an account with the support of parents or guardians. And adults over 18 are free to open a recurring deposit account jointly or on their own. A key benefit of RD is availing of loans: The option to apply for a loan against your RD account makes it an irresistible way of investment. This is possible after an RD account is activated and receives 12 months of active investment. Later, the loan can also be paid in instalments depending on the convenience of the person. This is considered one of the notable benefits of RD. [B-02] Conclusion: Recurring Deposit is one of the most loved forms of investment among the public. Upon reading the above article on the advantages of an RD, one can move forward to initiate their investing journey. It is the low-risk mode for an individual to acquaint themselves with the field of investment before starting high-risk investments.
08-11-2023
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What Is A Personal Line Of Credit? Pros And Cons

Personal lines of credit (PLOCs) are continuous, unsecured accounts with changing interest rates. A personal line of credit offers quick access to cash for both personal and professional needs. Up to a certain amount, it allows you access to money. A flexible loan from a bank or other finance company is known as a line of credit. A line of credit is a set amount of money that you can access as needed and repay quickly or over a particular length of time. It is similar to a credit card that offers you a set amount of money that you can use when, if, and how you like. The client may raise the credit limit at any time during the life of a personal line of credit facility depending on their credit profile and spending habits. [B-01] What Is The Eligibility? To be eligible for a personal line of credit, one must have a credit score of at least 690 and a good credit history. More important is a proven track record of revenue and job documentation. Your options are limited because many financial organisations that offer personal lines of credit demand that you open a checking account with them and/or submit an application through a local branch. The following needs are crucial for a personal line of credit: Payment background: A track record of on-time payments shows that you are a trustworthy borrower. Credit score: Your credit score, which is decided by credit agencies, is a reflection of your financial standing and ability to repay bills. Financial situation: Your ability to repay debts is shown by your net worth, cash on hand, and debt-to-income ratio, among other financial indicators. How Can One Repay? Repayment Process Because there are so many different repayment plans available, receivers should be aware of the particular conditions of their loans. Repayment methods are available, but they can come with difficult conditions. Below, we’ve listed a few uncommon repayment methods: Draw and payback times: Personal lines of credit may occasionally have distinct pull and payback times. The user may get cash during this draw time. They must pay the money back throughout the repayment term in equal instalments. Bubble pay-outs: A personal line of credit could have a requirement that the entire balance is paid at the end of the term. If balloon payments are employed and the debtor isn’t able to pay the money back the whole amount, refinancing may also be required. Loaners terms: On occasion, banks will provide a collect credit facility, which works exactly like a regular credit source but gives the loaner the option to demand his money back. Pros Of Personal Line Of Credit Why is it used? Let us find out its benefits. The following are the good elements of personal lines of credit: Quick financial access- One has the power to ask for money from a personal line of credit at any time. The loaner decides the access to the borrowing capacity online, through a mobile app, or at a bank branch. Security- Few banks can give the liberty to use PLOC as a protection form on certain accounts. If you regularly give checks or are scared of emptying the finances, this could provide you with security. Lower interest rates- A personal line of credit often offer lower rates of interest. This is very low compared to credit cards. Still, the interest rate seen in PLOC will fluctuate depending on the loaner and the credit history you’ve stated. Greater Options- You can withdraw any amount, up to the size of your credit limit. Cost-Effectiveness- You just have to pay interest on the amount you borrow; it is not charged on the authorised credit limit. Strong Credit Limit- Depending on your credit history and your needs, you may be accepted for a larger credit limit, allowing you the ability to manage your debt however you see fit. The emergency helper-The best option for an emergency is to use a personal credit line, which is available around the clock. When dealing with a medical emergency or any other issue that necessitates financial commitment, this feature proves to be wonderful. Collateral isn’t needed- A PLOC doesn’t need any collateral. Comparatively, the 1home line uses collateral of your house’s value as security. So, if you don’t have a property or vehicle, taking this personal line of credit will be beneficial to you. Cons Of Personal Line Of Credit With every right, there are a few wrongs. Let’s see what are some major cons and negatives of PLOC. The cons are- Higher rates: A HELOC is much more secure as the home will be used as collateral to secure the debt. A PLOC, however, is not deemed secure because it doesn’t ask for collateral. This implies a higher interest range. One cannot deduct the interest paid from the tariff because it is not tax deductible. This raises the price of starting your line of credit. With bad credit history, it can be challenging to qualify because there is no collateral needed for a PLOC. The lender should trust you to give the money back. This means that if your credit history is bad, they won’t be able to provide you with a personal line of credit. Endless Cycle: Because the credit account is revolving, it is simple to keep getting cash out and lose track of repayments. Costs of Closing and Upkeep: Some banks and finance companies may charge a fee to close a credit line, and others may charge a fee to maintain an open credit line. [B-02] Today’s Learning Before using the credit line, make a repayment plan. Make sure you have enough money coming in each month to pay back the loan. The best approach to check your affordability is to use an EMI method to calculate your monthly bills. A personal line of credit can be issued for any amount you need and used regularly, working similarly to a credit card. This method of taking loans has several benefits, including easy access to cash and more reasonable prices than credit cards. If you decide to get a personal line of credit, research platforms like Piramal Finance to get the best conditions and interest rates for your situation.
08-11-2023
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Tax Savings

Can you get tax exemptions on Personal loans?

Personal loans are those loans that you can seek to fulfil your needs. These needs could be buying a house or a car, planning a wedding or vacation, investing in a business and several others. One can obtain a personal loan by reaching out to a nearby bank. But before you proceed with a personal loan, you must learn about every possible personal loan tax benefit available. First, the lender will check the eligibility criteria such as nationality, age, salary, job sector, and job status. Then the lender will proceed to refer the papers like employee ID card, Aadhar or PAN card, salary statement for the past 3 months and bank statement for the past 3 months. The loan amount may vary based on the city in which one resides and the monthly salary. The loan offered by each bank may also differ. These personal loans will tend to have a high-interest rate since they are unsecured. The ease with which you can acquire a personal loan may raise the question of taxation. Since it is not a part of your income, it is exempt from tax filing. There is no defined personal loan tax benefit, but taxes are exempt in most cases. [B-01] What are personal loans? Personal loans are loans taken to meet a person’s necessities or interests. There is no narrow spectrum only when a person is eligible for personal loans. It could be for investing in a business, stocks and shares, meeting marriage expenses, debt consolidation and several other needs. A personal loan is different from credit cards in that a lump sum of money is offered at once. How to get personal loans? Many lenders now offer personal loans online. Here are some of the steps that you can follow to get a personal loan: Initially, check for the eligibility criteria. Determine the monthly instalments Gather the essential documents as demanded by the bank Approach either the bank in person or via online mode. Consult the site or manager for anything one should be aware of before applying for a loan, like the interest rate or if the loan is taxable. Personal loans are not taxable, so keep an eye out for the tax implications. Apply for the loan. Why are personal loans called unsecured loans? They are called unsecured loans. Generally, a loan requires pledging collateral to secure the loan amount. This is not applicable when you seek a personal loan. There is no need for collateral to safeguard a lender if the borrower fails to repay the loan. Hence personal loans are considered unsecured loans. Is a joint personal loan a possibility? Yes. One can apply for a joint personal loan with a partner. This partner holds an equal responsibility to repay the loan as the borrower. Joint individual loan sanctions involve screening the documents of both parties and not just the original borrower. It is important to note that the co-applicant credit score and other features can affect the loan amount available. Are personal loans tax-free? Personal loans are generally tax-free as they are not your income but an obligation. As they will not be added to your income, there is no need to pay any taxes on the same. What are all the features of a personal loan? Here are some of the key aspects of a personal loan that you must be aware of: Comparatively fewer papers are needed to handle the application process. Collaterals are not needed to qualify for a personal loan. Personal loan tax benefits can be availed. There are fewer limits on how the money should be used, making it a flexible loan for the needy. Money can be repaid in any possible manner owing to your needs. You can easily qualify for this loan and it won’t be a time-consuming process. By repaying personal loans on time, you can increase your credit score. Ways to save tax for a personal loan. Personal loans are not related to your income. So they are not taxable as long as the loan is acquired from a credible bank. If not, it should be a part of your tax filing. However, based on how the money is used, the interest paid will be deducted. Personal loans used for the right reasons will be exempted from tax. Medical expenses: A sudden medical emergency is a valid reason to seek a medical loan. Buying or building a home: This is a very common reason for personal loan applications. People trying to build, buy or renovate their homes can apply for personal loans to support their monetary needs. This is a common personal loan tax benefit. Note that the loan money should not be used in real estate or renting a house. Business growth: Money can be borrowed from the bank to initiate a business or to develop an ongoing business. This is another classic scenario of applying for personal loans. Investing in a business increases the liability, thus reducing the overall tax payable for the business. To buy assets: Assets like jewellery, non-residential building property, shares, stocks, and cars are considered a valuable use of money obtained via personal loans. These assets tend to increase in value over time. Thus, one can avail of tax benefits though there are no tax benefits posed for personal loans. [B-02] Conclusion Personal loans are one of the popular loans that are meant for the benefit of persons who are in urgent need of money. So, people should make better use of it to support their needs during urgent times. However, it is to be stressed again that personal loans are non-taxable in general. If you want the best personal loan deals and offers, visit Piramal Finance. They also have many articles and blogs to help with your finance skills.
08-11-2023
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Personal Loan

Everything You Need to Know About Personal Loan Tenures

When you borrow from a lender, you promise to repay the amount over some time. The time you pay off the rent is called your loan tenure. For example, if you take a large home loan, the repayment cycle may run for a decade or two. The borrower can’t pay more than a certain amount every month. Every borrower can pay only a fraction of their income as EMI for a loan. When you take out a personal loan for the long term, you lock yourself into that lender’s financial services for the next several years or decades. However, long tenures can also have many advantages, including smaller EMIs. Thus, tenure is something that you would like to consider carefully before making a decision. Keep reading to learn more about personal loan tenure and the various factors affecting it. [B-01] What is a Personal Loan Tenure? Personal loan tenure is the length of time most lenders require you to repay your loan. In most cases, you must pay back the loan for a certain period, and you can repay it in one of two ways: Fixed rate: The lender sets the interest rate for the loan so that it will remain the same for the entire loan period. In other words, at the end of the loan, you will have to pay back the same amount you borrowed plus interest. Adjustable Rate: This rate varies based on the market rates and is fixed for the first few years, but then it increases yearly by a specific amount. It can benefit people who don’t want to make principal payments on their loans and would like to pay them back over a longer period. However, you may want to pay back the loan after a while, so you will have to pay interest on top of the original amount. How Personal Loan Tenure Work When you take out a personal loan, the lender lends you money and collects interest on your loan. That part is so clear to most. But there is little awareness when it comes to the part where the applicant has to decide on the personal loan tenure. Yes, an applicant has a say in how long the repayment of the loan will run for. However, it also depends on the paying capacity of the applicant. The bank looks at the paying capacity before deciding the tenure of the loan. The formula used for determining tenure is complicated. But it can be said that the lender considers a fraction of your disposable income when working out the tenure. Say, for example, one earns Rs 25,000 per month. In this case, the EMI paying capacity will be limited to the early single digits. It is because the applicant will have other expenses as well. Therefore, how much you earn has a bearing on your loan tenure. Factors Affecting Personal Loan Tenure Here are the four things that have a bearing on personal loan tenure. 1) Amount of loan If the amount you borrowed from the lender is large and your paying capacity is modest, you will have no option but to take a long-term loan. Depending on the amount, it will spread the EMIs or equated monthly instalments of your loan over decades and make repayment easier for you. However, this has certain disadvantages. For example, you will end up paying more interest than if it was a short-term loan. Given that the principal amount will be repaid over a long period, you will continue paying the interest. In such cases, applicants must choose the variable interest rate model to benefit from the decrease in interest rates of loans over a long period. Therefore, you can choose a longer tenure if you have financial constraints and limited repayment bandwidth. But if you have the means to pay relatively quickly, you must take that option. It will save you money and allow you to take a second loan sooner. That way, you can consider making new investments too. 2) Interest rate A fixed-rate loan may sound like a good idea, but it may be inadvisable for most people. It is so because even though interest rates may be high initially, they may eventually decrease. If you choose a fixed-interest model, you will have to continue paying a high-interest rate throughout the tenure of the loan. You will have to pay a lot more money in the form of interest. It will be in addition to the amount that you originally borrowed. On the other hand, a variable loan rate is usually lower at the beginning but may increase over time. In such cases, you will end up paying more money. Therefore, you must look at the interest rate trend. It would help you decide which of these options you want to choose. It can make quite a difference to your repayment plan. 3) Earning As stated briefly, the amount you earn will determine your loan tenure. If your earnings are low, the lender would want you to take a long-term loan. It will eliminate the possibility of default, given the EMIs will be small and easy to pay. If you have a large income, you can also avail of a short-term loan as you have the paying capacity to service your EMIs on time every month. 4) Age You’re more likely to receive a long-term payment option if you’re young. However, if you are nearing retirement, things will be different. The bank would point out that your source of regular income is likely to end with your retirement. With no regular income, paying EMIs can become tricky. Therefore, banks are unwilling to give long-term loans to those nearing retirement and offer them to the young instead. [B-02] Conclusion If you are taking a personal loan, you must consider a short payment tenure. It will ensure that you don’t pay more than necessary as interest. However, these loans are also available with a long-term plan. You can repay them over a long period. The length of the loan will determine how much you will have to pay back. You can either choose to pay it off quickly. Or you can make the tenure long with an adjustable rate. But the best option is looking at lenders with flexible loan programs. You can consider reaching out to Piramal Finance for such options. As a leading financial institution, they have designed some of the most borrower-friendly loan programs in the industry.
08-11-2023
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Personal Loan

Calculate EMI on Home, Car and Personal Loans

India’s credit market has been rising steadily. Among credit industries, India is the 4th largest in the entire world. The CAGR in this sector has been pegged at over 11% in the last few years. Short credits form most such advances as credit cards and personal loans. A person should keep the EMI in mind while applying for such loans. This would help them to have a better plan for the future as well as now. On the internet these days, many EMI calculators are available. One can use it for personal loan EMI calculation as well as home loans, car loans and many more. [B-01] What is meant by an EMI? A financial agreement between the borrower and the lender is known as a loan. The EMI is the monthly payment that a person makes to repay the loan. The concept is simple. The lender gives a certain amount to the borrower, and in return, the person repays the amount with a particular interest charged on it. One can easily calculate the EMIs using a Personal Loan EMI Calculator. It lets the person have a proper plan and also budget for the same. It has been seen almost everyone needs to take a loan of some sort in their lives. In fact, in today’s time, a loan is an essential part of one’s life. These days loans can be of many kinds, but three primary factors are the same for all cases: the actual amount, the rate of interest and tenure. What is the use of an EMI loan calculator? The EMI repays both the total amount and the interest charged. The EMI calculator can be used to know the monthly instalments. The user needs to put the details of the total amount, rate of interest and tenure, and in no time, the EMI gets calculated. The process is straightforward and valuable at the same time. One can get the 24*7 service of an online EMI calculator. When talking of loans, the very first thing that pops up in our minds is the EMI. It is an abbreviation for Equated Monthly Instalments. Every month there is a particular date by which the EMI needs to be paid. The no. of instalments being produced is also the same as the tenure of the given loan. Due to EMI, the financial pressure is less on the borrower. This method is more suitable as repaying a large chunk of money can be challenging. EMI allows a large group of people to be able to live their dreams. With the help of a Personal Loan EMI Calculator, one can plan their future budget accordingly. One has the flexibility to choose the tenure and monthly repayment amount. EMI is dedicated towards both accrued instalments and the total amount. In the initial stage, front loading takes place. It means a significant part of the instalment is directed towards the interest. In the later part, the majority is directed towards the total amount. How can the EMI for a loan be calculated? The critical factors of any loan are principal, tenure and rate of interest. These factors can vary depending on the loan provider. Hence, before going for any loan, it is advised to study the personal loan EMI thoroughly. There are mainly three ways to calculate the EMI: Calculation of EMI with the Help of manual mathematical formula: EMI = [P x R x (1+R) ^N]/[(1+R) ^ (N-1)]; where, EMI = Equated Monthly Instalment. P = total amount. R = rate of interest. (Monthly rate) N = Period or tenure. (In months) EMI can be manually calculated. But it is better to go for digital methods. If done manually, then the chances of mistakes would increase. The manual process is time taking and prone to errors. This formula is universal. Calculation of EMI with the Help of Excel: Personal loan EMI can be calculated with the help of Excel. The PMT function is used for this calculation. In Excel for EMI calculation, the following syntax is used: PMT (rate, nper, PV). The above variables mean: Rate = rate of interest. Nper = the total number of payments made. Pv = total amount. Calculation of EMI with the help of the EMI online calculator: EMI calculator is a finance calculator. It is available online and helps to calculate the EMI. It also helps to compare the different loans for many tenures. Many kinds of EMI calculators are now available in the market: Car loan. Home loan. Personal loan. Loan against property (LAP). Education loan. Gold loan. Why is using a loan EMI calculator applicable? One gets an accurate estimation of their monthly payments. This helps them to plan their future finance better. For more chances of one’s loan being approved, the debt-to-income ratio needs to be below 50%. If using a Personal Loan EMI Calculator, then one can save a lot of time. The online method is way quicker than the manual method. The results can be relied upon as it is accurate. Chances of miscalculation are eliminated. It is definite, depending on the different kinds of loans. [B-02] Conclusion In today’s world, where loans have become so essential, EMIs are an integral part of those loans. The EMI must be calculated so that the monthly budget can be planned in a better way. A personal loan EMI calculator is an essential tool that makes this task easier. If you are looking for a great deal on your personal loan, then “Piramal Finance” is a good personal loan/financing option for buyers. They also have many articles and blogs on a range of finance topics that will improve your skills and knowledge of finance.
08-11-2023
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Personal Loan

Celebrate Festive Season With Piramal Finance Personal Loan

Festive seasons are the most-anticipated times of the year. Indian homes often have parties. This means there will be chances to buy big things like a new house, a car, gold jewellery, etc. Taking out a personal loan during the festive season is the best way to stick to a budget. Online personal loans are a great idea because they don’t require a lot of paperwork to get approved. Also, the money goes into your account after you get approved. It gives you the freedom to spend. With Piramal Finance’s Personal Loan, you may fulfil your dear ones’ desires this festive period. [B-01] Dreams You Can Fulfil with Piramal Finance’s Personal Loan A festival means celebration, joy, and getting together. It’s also the time of year when you gift your loved ones to make their celebrations fun. But it can be expensive to get the best gifts for everyone in the family. What if you don’t have enough money? Would you let a lack of money ruin the joy and excitement of the holidays? Not. A personal loan can save your day. Decorations The festival is the best time to redecorate and prepare the house for parties. People paint and fix up their homes at this time. With the help of a personal loan, it’s easy to fix up the inside of your home, paint the walls, and buy new furniture to replace your old stuff. The festival season is full of deals and discounts, including the best deals on interest rates. Getting a personal loan for home decor during the festival makes sense. Buying Gold You can’t wait for Dhanteras. Every person loves gold. You could buy gold for your beloved one. With the help of a personal loan, you can buy gold and brings happiness to your partner. Electronics Purchase When you went to the mall last, did you stop to look at a brand-new gaming laptop? Or do you love your friend’s new DSLR camera? Now is the time if you haven’t bought these things yet because you don’t have enough money. With the help of personal loan festival offers, start checking off your list of must-have electronics and gadgets. Buying a Vehicle You’ve been planning to buy a car for a while, right? If the answer is yes, now is the best time to do it. Almost every car company offers big deals during festive seasons to get people to buy their cars. So, what’s holding you back from buying your dream car? Funds? Don’t worry. Get a personal loan and drive your dream car home from the festival. Vacation What is the best time to pack your bags and go on a trip? Most of the time, the answer will be during the festival. With the party atmosphere, days of celebration, and back-to-back holiday is a great way to spend time with your family and relax. Taking advantage of personal loan festival offers allows you to go to your favourite place without worrying about your tight budget. Why Getting a Personal Loan for Festival is a Good Idea? There are numerous reasons to get a personal loan for the festivals, but here are a few: 1. High loan amount With a personal loan, you can get up to INR 10 lakhs. This makes the festive season more exciting and enjoyable. Also, by utilising a personal loan, you can bear multiple costs you and your family will have during the holiday season. 2. Flexibility When you receive a personal loan, you can use the money to buy whatever you want during the festive season. Whether it’s Karvachauth or Durga Puja, you can give more gifts and do more to celebrate. 3. Low-Interest Rates Interest rates are low during the festive season. It is one of the main reasons why personal loans perform great during this time. Personal loans can have interest rates as low as 12.99%* per year, which can be paid off with liveable EMIs. 4. Easy to apply Financial institutions are switching to digital, which makes it easy for people to get personal loans online. Also, you don’t have to go to a branch or call a financial institution to apply for and send in papers for a personal loan. The entire procedure can be completed online. Once approved and your documents have been checked, the money is sent to your account immediately. 5. No Collateral Personal loans are unsecured, so you don’t need to pledge anything over the holidays. It could be hard to survive the festive season and pay for everything. But all of this has become simple and easy with a personal loan. Few Points to Note Before Taking A Personal Loan from Piramal Finance Before getting a personal loan for festivals, remember a few things. Don’t just decide on the spot to get a personal loan during the festive season. Before applying for a loan, you should consider the following things. Check to see if you deserve credit. Check your credit report to see any EMI skips, loan settlements, or multiple hard inquiries. If that’s the case, try to get any bad marks off your credit report before you accept the festive season loan offer. Determine your debt-to-income ratio. You can figure it out by dividing your monthly gross income by the total amount of your monthly EMIs. If the number is more than 50, you should try to pay off some debts first to get this number down. Personal loans do not need collateral. The interest rates for them are higher than those for secured loans. If you are on a tight budget, don’t use this loan product to buy things on the spur of the moment during the festive season. It will only make your money problems worse. Always prepare a backup plan for paying back your debt because your credit score will go down if you can’t pay your loan EMI because you don’t have enough money. [B-02] Conclusion During the festive period, a personal loan from Piramal Finance can be a big help. Come to us if you want things to go smoothly and without trouble. The processing fee is small, and the personal loan calculator can help determine whether you can get a loan. Once you know you’re eligible, you can apply for a personal loan online by sending in the necessary paperwork. You can repay the loan in 60 months at 12.99%* each year. Getting a personal loan during the festivals lets you enjoy yourself without worrying about money. Let your joy grow and grow during the holiday season! If you need any other information regarding personal loans and their application process, visit Piramal Finance.
08-11-2023
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Personal Loan

Can A New Employee Get Personal Loan?

When you’re a new employee, you start receiving a paycheck for the first time in your life. That’s the first time you think about taking out a personal loan for employee to purchase your dream car, go on a much-awaited vacation, or take care of some long-pending expenses. However, this euphoria about receiving an influx of money is the only thing that comes easy—acquiring loans has gotten more competitive and harder than before. Fortunately, one doesn’t have to be a financial wizard or stay up until midnight to find ways around the challenging lending conditions. In this blog post, you’ll read about the factors determining if you qualify for a loan and how you can manage your expectations so that you don’t end up in debt. Can a new employee get a loan? Anyone who works can get a personal loan for employee. The only condition is that they must have a good credit score/financial history and the right documentation. That being said, the conditions determining loan approval are slightly different depending on your current situation. It is especially true for newly employed people who have yet to establish the credit history that those older than them have as proof of good financial conduct. To understand this, let’s look at the factors determining whether you qualify for a loan. [B-01] How to qualify for a personal loan for employee To be eligible for a personal loan for employee, one must have a stable source of income and valid proof of identity. If you have a job, either new or old, producing documents in support of these requirements would not be tough. Aadhaar, a driving license, a passport, or any other government-issued photo ID can be used as proof of identity when applying for a personal loan for employee. For proof of income, you will have to supply your salary slip along with your application for the loan. Banks are more inclined to approve loan applications from individuals with a regular income as they are unlikely to default on their repayment. Both of these things are easy to provide to the lender when you’re a new worker looking to take out a personal loan for employee. While these factors are important for virtually any loan, they are even more relevant for a car loan or other vehicle funding. For one, you need a reliable source of income. Using your savings or a home equity loan as collateral is no longer acceptable. Therefore, you need to have a steady and reliable source of income. What is considered to be a good income source depends a lot on the situation you are in. For example, if you are currently self-employed, your income will greatly affect your loan approval. One also needs a high credit score to be able to get a personal loan for employee. Having a good credit score is not just a matter of luck. Every credit report is compiled based on an individual’s financial history. Therefore, if you have a poor credit score, you can easily improve it by making good financial decisions. One advisable decision would be to get a loan. If you lose the loan or fail to make the payment, at least your credit score will go down. Therefore, a good credit score will help you get a loan and increase your borrowing capacity in the future. Importance of a good credit score when seeking a personal loan for employee This is the most important thing that will determine if you get approved for a loan or not. Your current credit score is the number that lenders see when you apply for a loan. Although this number might look silly to you, you must take note of it. There might be more than one factor that will determine your credit score. The three main factors that lenders use to determine your credit score are payment history, the amount owed (or the amount you owe), and how long you have paid them (or how long you have paid off your debts). It is important to note that your credit score will change depending on the information you provide. Therefore, you should be careful while filling out your application for a personal loan for employee. How to pay back the loan when you’re newly employed? If you’re a new employee just starting at your job, you have limited financial resources to pay off the loan that you are taking. Here are some tips to ensure that you pay the EMIs on time. One, take a small loan. Don’t try to maximise the loan amount. Instead, try to reduce it as much as possible so that the EMIs you must pay are minimal. Small EMIs are easy to manage when you have other commitments, like rent, to manage. Two, pay the EMI as soon as you receive your monthly salary. Doing this will help you keep a check on your expenses. Moreover, having paid the EMI at the beginning of the month, you will have a measure of how much you can spend through the month without falling short on other commitments, such as rent and utilities. Three, when taking a loan, check if there is a repayment moratorium. If your lender has such a scheme, you must take advantage of it, as this could give you a year or two, depending on the plan, to create a reserve that you can dip into when you start paying the EMIs at a later date. Four, pay off the loan early if you can. Doing this would free you up to take on other commitments—investing in stocks, for example. You may have to pay a small fine when paying off your loan before the tenure, but this would be far less than the money you would save in terms of interest that you will not have to pay. Five, ensure that you’ve read the terms and conditions presented to you by the lender. In many cases, you can negotiate better terms. For example, you can spread the EMIs over a longer period to ensure you have more time to pay off the loan. [B-02] Summing Up You’re eligible to seek a personal loan for employee when you start working. Given that you have a source of regular income, you can take out a loan and pay the EMIs on time. However, before you jump into it, read about the different factors that will help you determine if you can qualify for a loan and how you can manage the loan so that you don’t end up in debt or have a bad credit score because of it. Moreover, when taking a loan as a young professional, you must ensure that you’ve found the lender most suited to your needs. For instance, young individuals can consider Piramal Finance, known for its flexible loan options and relaxed eligibility rules.
08-11-2023
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Personal Loan

Top benefits of using an EMI calculator for your loans

People usually buy things in instalments that they need to pay off monthly. This applies to personal loans as well. Using an EMI calculator can help you in many ways. Let’s discuss some of them. When we buy something in instalments, we have to pay interest. This interest is based on the period. It can be easily calculated. Using an EMI calculator can tell you whether taking out a loan is a good idea. It tells you the amount to be paid every month. The monthly payment is calculated using an EMI calculator. [B-01] Benefits Decide according to your income. You can compare your earnings and spending. Take a look at the period. Decide on all the important things. Keep in mind your budget. Plan everything. Write everything. Make a report. Learn about interest. Calculate the instalment according to your needs. This is very helpful for people. It allows them to organise everything. It helps them pay according to their capabilities. This type of planning can further help them in the future. Plan for the unexpected. The earnings and spending are not equal for the whole year. People spend more during festivals. Some have marriages ahead. Sometimes, you need to pay the doctors. The schools charge more in some months. This should be taken into account while calculating. It is possible by using an EMI calculator. You have to plan to keep everything in mind. No decision should be taken in a hurry. All this should be planned before taking the loans. This will give healthy results. Choosing the best Using an EMI calculator will help you choose the best product. You can compare. You have the freedom to keep a check on the budget. You can take a look at the reviews. Decide the period based on comparisons. Make a report. Then choose the best option. This choice should be made keeping a few things in mind. This includes the budget, additional expenses, disasters, and future events. Very easy to use. An EMI calculator is available online. It is very easy to use. It is available in offline stores, too. Anybody with a little bit of knowledge of finance can use it. It is even available on websites. So you don’t need to buy an actual one. So many options are available for relief. It just requires proper knowledge. Even kids learn these types of calculations in school. No Errors. Doing calculations on paper can have errors. Using an EMI calculator is the best option. There’s no chance of error when you use it. It can provide the best results possible. Improve CIBIL score. You can decide on the EMI based on your budget. Hence, you can pay it on time. When you plan everything, you can do everything on time. This can help increase the credit score. No check bounce will occur if everything is planned. Save money. There’s no need to hire somebody to calculate. There is no need to maintain long records of budgets. Plan everything yourself. Cut out extra expenses. Maintain records for everything. This will motivate you to save more money. Choose your EMI with your comfort in mind. Keep a record of the period. This is possible from the comfort of your home. There’s no need to travel. This, in turn, saves money. Thinking practically. Using an EMI calculator is very easy. But the results are very helpful. When you study your expenses, a lot of things get revealed. This leads to practical thinking. It helps you understand the budget. It helps you learn more about finance. It displays your financial condition. It helps you think about the future. It makes you aware of potential dangers. It motivates you to save money. It stops you from buying stuff you don’t need. It stops you from taking a loan that is difficult to pay off. Life values. Using the EMI calculator has no practical value. But the process behind it does. It lands you in the world you are running from. Nobody plans a budget. Buying a house seems easier. But paying off debts is difficult. This planning will bring you out of the world of dreams. You will be exposed to reality. You will learn to save. You will learn what your parents did. The things you experience are not forgettable. This will help you understand the sacrifices. This will motivate you to think about the future. Spread knowledge. Teach the kids about finance. Calculating EMIs can teach you about taking decisions. It seems like something small, but it requires deep knowledge of the budget. It requires planning. When the kids see your plan, they can also learn to plan. Like you plan your budget. Teach them to plan their homework. Introduce them to the world of planning. This will surely help them in the future. In short: You will start saving money. You will value your parents. You will learn the power of planning. You will learn to organise. You will be able to differentiate between right and wrong. You will think about the future. You will stop copying rich people. You will have a wide vision. You will learn the power of time. You will be able to make decisions.Hence, the research behind your EMIs will teach you a lot. [B-02] Conclusion The EMI calculator surely helps you calculate EMIs. But the process behind it teaches a lot. It helps with having an organised life. It helps to balance everything. You become your own master. The deciding factor lies with you. You have the power to make choices. You are exposed to future outcomes. You become responsible for your fate. It also helps you plan. Planning is very important in life. And in finance, it has unimaginable benefits. You can save yourself from debt. Have a good credit score with a very easy approach. Hence, using an EMI calculator can teach you a lot. It’s just a matter of perspective. Some learn human values even through machines. And some are so blind to their own decisions. For more informative pieces, visit Primal Finance.
08-11-2023
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