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Personal Finance

Four Pillars Of Personal Finance And Why They Matter

Personal finance is a management system that deals with investing and saving. It can be done individually or for a family. It is a record of income, budget, and the amount of money spent. Some financial risks and their effects are a part of personal finance. Retirement plans are also included in personal finance. Personal finance is an essential part of handling your current financial demands as well as your upcoming finances. Getting a stronghold in personal finance is very important. It helps you make better decisions and take control of your hard-earned money. [B-01] The Four Pillars of Personal Finances The “4 pillars of personal finance” are the following: Asset: An asset is something useful that one owns. The ability of an investment to be quickly transformed into liquidity is what makes it valuable. Money in your checking account is a form of asset. Liquidity means readily available cash. An asset can be for a short or long period of time. One of the most reliable parts of finance is assets. The reason for this is that it is the sole element that provides you with solid financial assistance. Until you have more liabilities, your net worth increases as your assets do. Most assets increase in value over time on their own. Liabilities: Liability is a burden. It can be money you owe to someone or land that can’t be used anymore. Debt is the major form of liability. Many of us get stuck in debt because we don’t grasp the fundamentals of financial planning. All accounts payable are included in liabilities, which are the reverse of assets like student debts, bank cards, due bills, loans, and other debts. Additionally, the interest that has accumulated on all of these obligations will only be deemed a liability. Interest rates are seen as measures of the value of debt. The interest rate decreases as credit rating increases. All payables are included in debts, which are the accounting reverse of assets. Income: Income often corresponds to the sum of cash, assets, and other asset exchanges gained over a predetermined period in return for goods or services. There isn’t a single, accepted definition of “income.” Instead, the term is defined in light of the context in which it is used. All of a person’s financial output during a specific amount of time is referred to as “income.” Either monthly or annual calculations are possible. Even if a monthly computation is advised to manage the costs, tracking your earnings and expenses will enable you to meet short-term objectives. Income can be divided into two categories: first, spending power; and second, spare cash. Use this income sensibly and avoid making unnecessary purchases. Expenses: It refers to the cash flowing out. Expenses are any sums of money spent in a certain time frame that don’t result in any revenue. For our daily operations to run smoothly, expenses are required. It is vital to continuously keep a record of your monthly spending to prevent going over budget. You must keep track of spending so that you may compare the planned and real amounts. Keeping track of your monthly spending can be difficult. To minimise unforeseen costs, use your bank card responsibly. Utilize specials, deals, coupons, and other incentives when purchasing goods. To prevent your savings from running out, consider creating a fund for emergencies or unforeseen needs. Personal finance schemes Planning your finances is the first step toward security. Follow some of these methods to maintain your personal finance: Understand your money: One must know how the cash flow system works. Calculate your expenses and keep track of your salary. Make a good budget: See what works for you, and plan accordingly. It is important to set one’s own budget. It keeps you aware of where and how your money gets spent. Assign money to yourself: Save some money from your salary to pay for personal expenditures. This can be a medical bill, money for daily use, or even a vacation. Limit your debt: The more debt you have, the lower your credit score becomes. Keep a hold of it and try not to fall into a debt pit. Plan a wise strategy to avoid taking on debt. Debt is not an option you would ever want to opt for. Borrow wisely: Do not borrow a large sum of money from someone. Take only when you are certain you can pay. Taking on large loans will financially drain you. The higher your credit score, the higher your chances of getting loans from a reliable source. Credit history and a good score always keep your finances strong. Future planning: Retirement can be hectic if not planned early. One doesn’t want to end up with poor financial status. To avoid that, save money. Put in a fixed deposit, invest in some reliable source or get yourself a good insurance plan. [B-02] Conclusion Maintaining good personal finance can take you a long way. As we saw, it has four pillars. These are assets, liabilities, income, and expenses. As important as it is to collect assets, it is also important to get rid of liabilities. Debt is the last thing anyone wants in their life. Keep a good balance between your income and expenses. See how much you can save and exactly how much can be spent. A balance sheet won’t hurt anyone. In turn, it helps you move a straight path in finances. Plan your budget. Find new alternatives and see what works best for you. Try fixing your lifestyle to achieve that plan of yours. Get a grip and start achieving those targets. Personal finances should be regulated regularly to give your dream a chance. To learn more about personal finance, visit the website of Piramal Finance. Check out the products and services they offer and read the informational blog posted by them.
08-11-2023
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Home Loan

How Can A Housewife Get A Loan?

A housewife can get a loan if she does not have a steady income. You can look for a loan for a housewife against your assets by submitting securities such as gold, real estate, or fixed deposits in their name. These are secured loans, and they can be obtained without needing any proof of income. Some housewives may be able to earn a living while working from home. If they have the required income and a good credit history, they do not need to provide any security to obtain the loan. A housewife who worked in the past but quit for whatever reason may still have a credit score. On the other hand, a housewife with no prior work experience may not have much of a credit history to show. That does not preclude her from obtaining a personal loan. [B-01] Women’s Personal Loan Benefits The benefits of Loan For Housewives are: It is simple to obtain by adding a working co-borrower. There are no restrictions on how the borrowed funds may be used. Quick loan approval. There is no need to visit a bank – one can apply for it online. There is little documentation. There is no need for paperwork as documents can be submitted online. Repayment terms are flexible. No security is required. It can easily be obtained to start a business. Personal Loan Programs for Women Here are a few of the most popular personal loans for housewife programs that may be of assistance to you: Women’s Mudra Yojana This program was created specifically for women to help them start their businesses. Depending on your needs, you can obtain a loan of as little as 50,000 rupees and as much as 50,00,000 rupees through this scheme. You can apply for an unsecured loan of up to ten lakh rupees. If you want a larger loan for a housewife, you must pledge your asset as security to the lender. Because it is legal, you can get this loan from any bank, private or public. It is a government of India initiative. Udyogini Scheme Another government-initiated scheme that empowers women from rural and underdeveloped areas is the Udyogini scheme. This scheme allows for a loan of up to Rs. 3 lakhs. You do not, however, have to live in a rural or underdeveloped area to qualify for this loan for a housewife. Women from all over the country can easily obtain this loan. The biggest advantage of this loan is that the interest rate is extremely low, and the borrower’s annual income should be less than 45,000 rupees. Star Mahila Gold Loan Program One of the best schemes of loan for housewives is the Star Mahila Gold Loan Scheme. It is a tax-break program for female business owners and entrepreneurs. Before applying for this scheme, you should keep in mind that a woman must own at least 50% of the company’s share capital. This scheme requires no collateral or security, and you can obtain an unsecured loan of up to 5,00,000 (five lakh) rupees. The woman applying for the Star Mahila Gold Loan Scheme must be at least 18 years old and not older than 60 years old. How do Housewives get Personal Loans? Consider a secured loan. Secured loans are credits obtained against a lender’s assets. The lender will take possession of your asset until the loan is completely paid off. If the borrower fails to repay the loan, the lender will be authorised to sell the borrower’s assets to recoup the loan money. A housewife can easily obtain a personal loan if she owns any assets that can be used as collateral. Loan for Gold Gold is a metal that is present in almost every Indian woman. A loan for a housewife against a gold ornament can help a person make the best use of their gold ornament. Gold jewellery has the potential to get you a gold loan, which is much cheaper than unsecured personal loans. A gold loan is one of the most effective ways for women to obtain a personal loan. Conclusion Most housewives who want to start their businesses or brand face the challenge of raising capital. Now that housewives can apply for loans, this problem has a solution. Housewives can also apply for secured or unsecured loans and receive funds to start their businesses today. By approaching banks or utilising the government’s housewives’ empowerment schemes, it has become simple to apply for a loan for a housewife and assist them in achieving their dream of starting a business. Read on to learn more about finances at https://www.piramalfinance.com/ [B-02] FAQs Is it possible for a housewife to get a loan if she does not have a steady source of income? She absolutely can! Housewives can obtain housewife loans by depositing securities such as gold, real estate, or fixed deposits in their names. These are known as secured loans and are available without the need for income verification. What kind of guarantee should I provide?The security will be the house against which the loan for the housewife will be obtained, as well as any collateral provided by the customer. This is under their jurisdiction if banks want to accept any other security. Is the bank willing to convert a fixed interest rate to a variable rate?Yes, the bank provides the conversion. You can change the fixed lending rate to a variable at any time. You can also change a variable lending rate to a fixed rate. What is the maximum loan term?For salaried individuals, the loan tenure is 30 years or 65 years, whichever comes first. For other borrowers, the loan term is 20 years or 65 years, whichever comes first.
08-11-2023
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Banking

Difference Between Retail Banking and Corporate Banking

Both commercial and retail banking is a part of one business. The customer base for the two is different. They both offer banking services to people. Commercial banks cater to the needs of corporate customers. Retail banks provide service to retail customers. It can be found almost all banks have a separate division for retail and corporate. It can be challenging to decide which division to go for. One needs to know what are the differences between the two. This article has discussed in detail what is the difference between the two. Both the differences and similarities have been discussed here. [B-01] What Is Meant By Retail Banking? Retail banking is also called personal banking or consumer banking. They mainly provide their service to individuals. They do not cater to large businesses and industries. Mass-market banking, designed for the general public, is known as retail banking. Many services are provided for clients to manage their money. They have services like a savings account, loan and checking account. They also have services like financial advice and source for credit. Retail banks have a type called local community banking. They also include large-scale global corporate banks. As the world is modernizing, all the features banks offer are available digitally for their customers. What Are The Services Offered By Retail Banking? Retail banking offers many services and facilities to help customers manage their finances. But the level of service depends on some factors. The client’s income level is a factor. The client’s level of involvement with their bank is also a factor. There are many channels for distribution provided by these banks. They have many branches, online applications and websites. A few services that the banks offer are: Deposit account: This account means savings, checking, and many other accounts that help to store, deposit and manage the client’s money. Depending upon the account agreement, one can withdraw the deposited money. The fund can be withdrawn using checks, cards, and over-the-top withdrawal slip. Individual lending (secured): Secured individual lending is offered if an individual wants to buy a huge asset. A mortgage or loan against property on investment or residential property is an example of this loan. This, in turn, profits the retail banking service. It also helps to build a client base. Another good example of it is automobile financing. Individual lending (unsecured): This loan means student loan, credit card and personal loan. It is issued to individuals to facilitate their spending. No collateral or permission is needed as it is an unsecured loan. The terms can mostly be based on the credit score of the customer. If a person is willing to apply for this loan, they must ensure their credit score is high. The interest rate would depend on the terms of credit and can be high. Certificates of deposit: A CD or certificate of deposit is a savings account. There is a fixed tenure, rate of interest and date of withdrawal for this. Compared to other savings accounts, this one has a high-interest rate. The period usually ranges from 3 months up to 5 years. For a CD, there is mostly no need to make monthly payments. But for early withdrawal, some banks charge a penalty. Cash access: It simply refers to how the customer can access their cash. E.g., ATM. What Is Meant By A Commercial Bank? The other name for this is corporate banking. They provide services to institutions, corporates, businesses and, at times government. They offer deposit products and also in addition to them they offer some commercial services and products. The model of this banking service is to maximize revenue. As compared to retail banking, commercial banking has a low client base. But they are way more profitable as their clientele is way more affluent. What Are The Services Offered By Commercial Banks? All the services offered by them specifically cater to the needs of the corporates. Merchant services: It refers to loans and many other credit lines. It includes credit card processing, electronic check service and mobile payment solutions. This allows companies to accept and make payments. It is vital for online business. Global trade services: This service refers to trade finance, including global payment, letters of credit, financing and foreign exchange. It is used to streamline international commerce and trade. A third party is introduced, which eliminates supply and payment risk. Treasury management service: This service helps businesses to manage their assets like investments and cash. Fraud prevention, disbursement and fund collection are a part of this service. Lending services: Commercial banks offer many programs to lend money. It includes the working capital for real estate lending, equipment financing and business. Their short-term cash flow is secured and meets their capital needs long-term. Employee services: Corporations need to build a benefits plan for their employees. This service is for that purpose. What Are The Differences Between Retail Banking And Commercial Banking? Retail banking caters to individuals. Commercial baking, on the other hand, caters to corporates. Retail banking has customer-oriented programs. Commercial banks have services that are designed for cooperates. The services and products offered by the retail banks are standardised. On the other hand, commercial banks customize their services and products for their clients. [B-02] Conclusion Although there are many differences, we can still find some similarities between retail and commercial banking. Both banks offer debit and credit cards. They both have the facility of loans. Online services are provided by the two. So, in this article, it has been discussed in detail what are the difference we find between the two. One such thing is to do good research before opting for any service; if looking for financing options, then “Piramal Finance” is a good personal loan/financing option for buyers.
08-11-2023
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Personal Loan

Personal Loan for Pensioners – Eligibility, Document, Features

A young person with a solid salary might get a personal loan with ease and good terms in India. Yet, if you are above 65, you may find it harder. Retired people often struggle to keep up with debt paybacks due to a lack of constant income. As a result, most banks see them as a credit risk. They often issue loans with higher rates or even reject their request altogether. Yet, certain banks and financial firms provide loans to pensioners. To get credit, they must meet the criteria standards imposed by banks. This blog will go through the eligibility criteria, perks, features, papers needed, and application process for personal loans for pensioners. [B-01] What is a Personal Loan for Pensioners? A personal loan for retirees is made especially for those over 60 who get a constant pension. The loan is versatile and may be used to meet various money demands. It is a collateral-free loan. No asset is secured here. Yet, a third-party guarantee may be needed for the loan to be approved. Although there is no major difference between personal loans to young people and personal loans for pensioners, the criteria and rates offered by lenders vary. Features & Perks of Personal Loans for Pensioners Here are some aspects and perks of a loan for retirees: Competitive Rates: This loan is available from many banking firms at a low rate, enabling you to plan and manage your finances in an organised manner. Minimal Paperwork: You can avoid the extensive and time taking paperwork by submitting your ID proof, home proof, and income evidence (details of your pension). No Security Needed: Personal loans for pensioners are unsecured. As a result, you do not need to present any collateral or security to receive it. You may borrow against your pension. Instant Approval & Rapid Payment: Your loan will be approved within a few hours, and the cash will instantly be put into your bank account. Multi-Purpose: There are no criteria for getting this loan from financial firms. As a result, it is one of the fast and cheap loans for retirees that can be used for many goals, such as trips and debt paybacks. Paperwork Needed to Apply for a Personal Loan For Pensioners For the lender to approve the loan request, you must complete a form and submit it together with the needed papers. Among these papers are the following: Identity verification You need a copy of your Aadhaar card, passport and driving licence. Include your PAN card and other ID proofs. Proof of residency Gather a copy of your rental agreement, property paperwork, and utility bills. Even Aadhar Card, Voter ID Card, and driving licence would work for proof of residency. Proof of pension Bank records from the previous six months show that the pension has been credited to your account. Additional papers This gives a clear idea of the financial state of the borrower. Lenders may ask for additional papers based on different factors. Eligibility Criteria for a Personal Loan for Pensioners Pensioners may get online and offline loans from lenders. But, before applying, you must be informed of the qualifying conditions to prevent rejection. You need to be a citizen of India. The maximum age for applying for this loan is 76. You should have worked for the govt. Or the military. In the case of your death, the relative pensioner (person authorised to receive the pension after you) may also apply for a personal loan. Yet, he or she should not be older than 76 years. Vital Factors to Consider To Get a Personal Loan for Pensioners Source of income People who get a pension from Central, State, or any other government-recognised agency may apply for the loan. Income from a previously employed private firm or a withdrawal from a late spouse or family member is also included. Note that personal loan rates are lower than those of other types of financing, such as credit cards. So, this loan is preferable to collecting credit card debt if you have a steady pension. Unsecured loans Personal loans for pensioners do not need collateral, which means you do not have to guarantee your home or a plot of land at the time of application. This is a significant perk since no assets would be kept as collateral. Duration of payback The time to repay the principal and interest on such a loan is similar to that of a standard loan. It may range from 12 to 60 months. But, the real payback term varies depending on the criteria and plans of the lender. The applicant’s equity and credit history are other vital factors in establishing the payback duration. Using an online personal loan EMI calculator, you can know your EMI and the loan length. Interest rates Personal loans for pensioners have variable rates. These are decided by the applicant’s age, credit score, and the lending firm’s rules. How Can You Seek a Personal Loan for Pensioners in India? You may always receive this credit facility by going to any bank offering retirees personal loans. All you have to do is complete the application form and submit it with all the needed papers. After verifying your papers, the officials will approve your loan request within two working days. You may also go to the bank’s website, sign in, and fill out the form. Provide and upload all needed papers. The bank will authorise and approve the loan within a few hours or days. They initiate the process after verifying your paperwork and information. [B-02] Conclusion One of the government’s key aims is to provide financial stability for the aged. For this reason, many pension plans have been developed. Each month, the pension is deposited into the person’s bank account. But, this pension is insufficient to meet sudden costs or additional expenses. Hence, the pensioner may need to hunt for money elsewhere to deal with unplanned events. All bank has created a lending plan in response to the demands of the elderly. Personal loans for pensioners have reduced rates and no paybacks or processing costs. A personal loan for retirees enables you to access cash when needed. Also, because the loan is flexible, you may use the cash for personal purposes and return the loan in constant EMIs. To learn more about personal loans for pensioners, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Guide

What Are the Best Types of Debt Consolidation?

It is challenging to get out of debt. It is tough if there are many creditors. If a person is trying to juggle all such things, then debt consolidation is the right option. The meaning of debt consolidation is to combine many debts into one payment. There are many methods for this. This makes the finances of a person simple. One has peace of mind as they do not need to juggle many payments. This also helps to save up money in terms of interest. It helps to pay off debts faster. [B-01] How does debt consolidation work? Many forms of financing are used to pay off many liabilities and debts, and it is known as debt consolidation. It can be so that person is swaddled with many obligations. To ease the situation, a loan can be applied to consolidate the debts. It would result in a single liability, and the rest gets paid off. Then the payments are to be made on the latest debt till it gets paid. Many people like to choose their banks, credit card companies and credit unions for this purpose. It is an excellent way to start. It would be great if the person had a good relationship with the financing institution. If such an option turns down the application of a person, they can check out private financing companies for debt consolidation. Creditors have several interests in giving this benefit. Due to debt consolidation, the likelihood of collecting for debtors increases. The general public gets this service from banks or credit unions. But many private agencies and lenders are willing to offer this option. What is the difference between debt settlement and debt consolidation? It is essential to know that debt consolidation does not mean the original debt gets erased. It simply means that many loans get transferred to a different lender or kind of loan. There are many whose loan needs to be qualified. They can try for debt settlement. The purpose of debt settlement is to lessen the obligations rather than no. of creditors. A person can decide to work with a credit counselling service or debt-relief organization. The purpose of these organizations is not to create new loans. Instead, they try to negotiate the existing loan with the creditors. What are the different types of debt consolidation? Balance transfer credit card: This method of debt consolidation has a low or even zero interest rate for the initial 18 months. In this, the balances from a high-interest credit card are moved to a new one. The goal is to pay the balance before the end of the promotional APR period. Otherwise, one gets racked up in more interest than they started with. One needs a balance transfer card that has high accommodation for the balance being rolled over. It also needs to have a low APR (Annual Percentage Rate) to make it worthwhile. One can use an online calculator to see how much time one would need to repay the balance. HELOC: Home Equity Line of Credit: The difference between the appraised value of the home and how much a person owns on their mortgage is called home equity. For debt consolidation, a homeowner with a good credit score and equity can borrow some of the equity affordably. Many people use this credit to pay high-interest debt like credit cards. HELOC acts as a second mortgage. It means that an additional monthly payment gets added. It gives a credit line that lets one draw from a variable rate. This can be a good option if one has enough equity to be qualified. Loan for debt consolidation: If one gets qualified for a low-interest rate, then a loan for debt consolidation is a great option. One gets enough funds to cover their debts and a comfortable repayment term. This loan is an unsecured one. So, the rate and limit of borrowing depend on the person’s credit profile. One can use either the entire or a portion of the loan to repay the balance. So, a person needs to make only a few payments monthly. Instead, they need to make only one payment on that personal loan. Peer-to-peer (P2P) loan: This option of debt consolidation connects investors with borrowers. They offer them an unsecured loan. As this is an unsecured loan, the person’s credit history is quite important. It is needed for fees, borrowing limits and rates. The higher the credit score of a person, the more benefits they get. Plans for debt management: This debt consolidation option is for the ones who do not wish to apply for a loan or balance credit card transfer. This plan is an excellent alternative to bankruptcy. In this method, one needs to work with debt relief companies so that they can negotiate with the creditor. These companies draft a payoff plan. All accounts for a credit card are to be closed. The person makes a single payment every month to the agency, which in turn pays the creditor. The billing statements with be received for the creditor. So it is easy for one to track the refund process. [B-02] Conclusion So, there are many debt consolidation options available in the market. One should research which method would be the best for them. One must avoid subprime lenders who offer bad credit. Even if the credit score of a person is low, they should stick to traditional or trusted options for such matters. A person should always confirm that their lender is authorized. If looking for a trusted financial option, then “Piramal Finance” is a good personal loan/financing option for buyers.
08-11-2023
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Calculator

How prepayment charges are calculated?

People tend to get loan products or services from the bank. COVID-19 has caused a situation of abnormality in society, for which the banks have been trying to convince their customers to close their accounts. The clients would also want to get rid of the responsibility of the loan. When everything seems so uncertain, both the bank and the customers would wish for financial security. Many banks try to check the purpose for which the loan was needed by the customer. Usually, for early payment, a prepayment charge is levied. But during COVID-19, there were some relaxations on this rule. The option of early payment only exists during emergencies. In general, the bank has this option where the borrower can close the loan before the deadline. If a considerable amount is paid as prepayment, then it leads to a reduction in the total loan amount and also the EMI. [B-01] How can one calculate prepayment charges for a home loan? Home loan is opted for by many people. Both employed and unemployed take this loan. Banks and NBFC, i.e., Non-Banking Financial Companies, both offer the facility of prepayment for a home loan. In this, one can repay a portion of the total amount. It helps to reduce the total due amount. When one decides to make the prepayment, then either the EMI can be diminished, and tenure can be kept the same, or the Emi can stay the same, and the term would get reduced. One can use an online calculator to check the details and also the prepayment charges. Some details are to be mentioned in the calculator to get the desired result. Those are discussed below: The principal amount: The original amount that has been taken. It is the total amount that the lender gives to the client. The outstanding loan amount: The money one owes to the bank or the financial institution is known as the due loan amount. Remaining tenure: It refers to the total no. of EMIs that remains pending in the balance tenure. Part-payment amount: The portion of the amount due that one’s desires to pay off. There is a minimum amount required for this. The amount needs to be three times the amount of EMI. What is a home loan prepayment calculator? One can get many calculators online. They are offered by many 3rd party sources. The above-mentioned details would be needed by the website to calculate the result. Once the details are entered, the values or the result will be received in no time. Under what circumstances can the housing finance companies, i.e., HFCs, levy prepayment charges? If an individual avails dual rate home loan: in this type of loan, the interest rate is a fixed one for starting years. Later a floating charge can be applied. Under this loan, a bank or financial agency can levy charges. The interest rate of a fixed home loan from a housing finance company, i.e., HFC: In case one borrows some amount from another bank or HFC for repaying the loan, then the HFCs can levy a prepayment charge. The interest rate of a fixed home loan from a bank: If someone opts for a home loan at a fixed rate of interest. The bank can levy prepayment charges depending on the agreement of the loan. Non-individual borrower: HFCs or the banks has the right to levy prepayment charges for non-individual borrowers. Under what circumstances can the housing loan finance companies, i.e., HFCs, not levy prepayment charges? Dual-rate home loan that has a floating rate of interest: The dual-rate home loan gets shifted to a floating rate of interest. In that case, prepayment charges will not be levied. The prepayment gets made with one’s own money: If no money is borrowed from HFCs or banks and one uses their own money, then no charges are levied. If an individual avails home loan with a floating rate of interest: Home loan with floating rate of interest the lender cannot levy prepayment charges. This has been stated by RBI. What are the other kinds of loans in which prepayment is allowed? One can avail of the facility of prepayment for a business loan. An education loan is another loan that has the facility of prepayment. A person can also opt for the option of prepayment if they have taken a personal loan. Many other loans have this option of prepayment. What are some of the tips for calculating prepayment charges? It is always advised to go through the fine print thoroughly. It should be made clear what methodology is used by the lender to determine the prepayment charges. Depending on the interest rate, a fixed amount is usually levied. The appropriate principle needs to be determined. One must ask for the amortization table from the lender. It would help them to have an exact break-up of the payments. The lender can charge prepayment charges depending on the differential rate of interest method. One can calculate this by finding out the difference between the initial rate of interest and the new one. Calculating the charges manually can be difficult, and hence one can use an online calculator. [B-02] Conclusion Prepayment helps the borrower. This helps to either reduce the EMI or the tenure of the loan. This reduces the financial pressure on the person lending the money. But some banks or HFCs can levy prepayment charges. It is advised to check all the details of how the lender will charge this penalty before they opt for this option. If a person needs a financial chance, then “Piramal Finance” is a good personal loan/financing option for buyers.
08-11-2023
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Personal Loan

Four Ways To Manage Your Personal Loan, EMI 

Personal loans are instalment loans. Borrowers receive a one-time cash payment from a Personal Loan EMI. Customers repay that amount plus interest in regular, monthly instalments over the loan’s term. Loans are available from online lenders, local banks, and credit unions, and the funds are given in one lump sum. You must make payments until the debt is fully repaid once you receive the cash. Personal loans can be secured (needing collateral) or unsecured (needing no collateral). Personal loans are made in the form of a lump sum payment. The payment is deposited into your savings account. In most cases, you will be required to repay the loan over time and at a fixed interest rate. Depending on the lender, the repayment period can range from a year to ten years. [B-01] What is the definition of a Personal Loan? For example, a personal loan could be used to manage debt, pay for home improvements, or plan your dream wedding. Banks, credit unions, and online lenders can all provide personal loans. Personal loans may also incur fees from some lenders. Personal loans are short-term loans that can be used to cover various expenses. Personal loans EMI is available through banks, credit unions, and online lenders. Personal loans can vary greatly regarding interest rates, fees, loan amounts, and repayment terms. Ways to Manage Your Personal Loan EMI Borrow as per your repayment capacity. Getting carried away when deciding how much money to take out in a personal loan is easy. You may be tempted to take out a large loan to meet your financial goals at once. But doing so may land you in hot water. You may end up in financial trouble if you take on more debt than you can handle. Before taking out a personal loan, know about the EMI and interest rate. Then, using a Personal Loan EMI calculator, you can calculate your EMIs based on the loan amount, interest rate, and tenure. Make an informed decision about the length of your loan. Another critical step in organising your loan EMI instalments is to make a good decision about your loan tenure. The EMI you must pay is affected by the loan amount, term, and interest rate. As a result, you can select your loan amount and term to ensure that your EMIs are manageable while the lender fixes the interest rate based on your credit history. Personal Loan Emi are available from a variety of lenders with varying terms. If you choose a shorter period, your EMI will rise, and vice versa. The disadvantage of a longer term is that you will have to pay more interest while making lower monthly payments. If you need more monthly liquidity, you can choose a longer term. If you want debt-free as soon as possible, go for a shorter term with higher EMI payments. Decide on a loan term that is neither too long nor too short. Create a monthly budget that includes your EMI. Creating a monthly budget is critical. It will help you better organise your finances and make personal loan EMI repayments. Don’t forget to include your loan EMIs in your monthly budget, along with your other monthly expenses like grocery bills, electricity bills, school tuition fees, and house maintenance costs. Your monthly expenses should not exceed 70% of your monthly income, including personal loan EMIs. Choose the Best Loan Provider. Your lender’s interest rate will heavily influence your personal loan EMIs. Although you do not influence the interest rate offered by a particular lender, you can choose the lender with the lowest rate. As a result, your loan payments will be low. The lowest interest rate should not be your only consideration when choosing a loan. Other factors include processing fees, repayment options, personal loan eligibility needs, and late payment penalties. Conclusion Because market competition has increased, you can get attractive interest rate offers from many lenders even if your credit score is average. However, it is necessary to compare various lenders online about interest rates, processing fees, prepayment and part-payment charges, late payment fees, and other loan terms and select the one that provides the best value. It is critical to conduct research regularly, even after you have obtained the loan, to ensure that you are well informed and can take advantage of any better deal that arises. Read on to learn more about finances at: https://www.piramalfinance.com/ [B-02] FAQs Is it best to borrow money through a personal loan?There is no single best way to borrow money; instead, the best type of loan is determined by your objectives. Personal loan EMIs are ideal for short- to medium-term borrowing at lower rates than credit card rates, such as debt consolidation, emergencies, or home improvement. You would not use one to buy a car or a home. Is obtaining a personal loan difficult?Compared to home, auto, and other types of loans, personal loan EMI are simple to apply for and qualify for. As a result, they are useful for everything from minor home improvements to large purchases. You can use the money for almost anything, but it’s best to borrow only what you need and only for things that will improve your finances or make a big difference in your life. Personal loans are repaid in a variety of ways.Personal loan EMIs are in the form of a lump sum deposit into your bank account. Most loans need you to repay them over a set period at a set interest rate. Depending on the lender, the repayment period can range from a year to ten years.
08-11-2023
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How To?

How to Link Your Bank Account on PhonePe

PhonePe is a digital payment and finance tech company started in India. It is a safe and secure online money transaction application, and its demand is increasing daily among the public. This is because of the ease with which it can be used. The application helps transfer money to a vendor or a second person without much hassle, unlike bank transfers or credit and debit cards. All one has to do is type the amount to be paid, followed by the PIN of their account. This app helps with everyday transactions, paying bills, data cards, recharging money, DTH, etc.; this can be enabled by linking the Bank Account on PhonePe, which creates a Unified Payment Interface (UPI). More than one bank account can be linked for the sake of convenience. An additional recharge on your wallet is unnecessary, as all the money from the bank account will be directly transferred. [B-01] Is PhonePe secure? PhonePe is an end-to-end application needing no third party. This Vouch for the security and safety of the app. Also, the UPI generated is unique for every single bank account. Thus, it cannot be forged or duplicated without the user’s permission. Here is an easy guide on how to link the bank account to the PhonePe app: Download the app Play Store for android or Apple store, in case of an iPhone user. Open the app and verify the phone number Enter the required details such as name, email, and address. Set a password or activate a fingerprint for safety purposes. Go to My Money Page Select the bank with which the account is active. The app will fetch all the necessary details and initiates creating a PhonePe account. Feed all the necessary details as asked, such as the last sex digits of the ATM card and the expiry date. Now, an OTP will be sent to the registered mobile. Using this, a new UPI pin can be created Now, a successful Bank Account on PhonePe has been created. Can the account be revived upon forgetting the PIN? Yes, an account can be revived or restored by resetting a new PIN. The app will prompt the user to reset the password by tapping on the forgot password feature. An OTP will be sent via SMS or another enabled permission upon entering the registered mobile number. This OTP will be auto-fetched, and now one can set a new PIN. Does PhonePe allow investment options? Many investment applications have tie-ups with mobile wallets to unlock easy investment modes for users’ comfort. As a money transaction app, PhonePe allows funding and investing in mutual funds enabling the user to create a robust investment portfolio. Link the Bank account on PhonePe and proceed with the investment journey. Here is a list of funds one can invest using PhonePe Tax saving funds – It is the kind of fund where the money is collected from many investors and invested in an equity market Liquid funds – These funds are debt funds invested in assets such as certificates of deposit, government securities, treasury bills, etc., Equity funds – Also known as stock funds. Investing assets in different companies after going through the various objectives and finding the best option. Debt funds – These are also called bond funds. It is a mutual scheme where the investments are based on government and corporate bonds Super funds- These are long-term investments. Typically starts when an employee joins the work where a small part of their money will be allotted for super funds. Hybrid funds – These are the kind of funds where a mix of different funds is used to invest, hoping it reduces the risk involved. Gold and silver investment – By connecting the Bank Account on PhonePe, it is safe to invest in gold and silver. Does PhonePe allow multiple Bank account access? This user-friendly app allows users to link more than one account to smoothly send and receive money between two people or organisations. Open the app. Tap on the My Money page Click on the bank accounts under payment methods. Now, tap on ‘Add new bank account’ and proceed to fill in the requirements for another bank What is the Transaction limit for PhonePe? The app allows a maximum of Rs. 1 lakh per day. A user can make about 20 transactions per day. These transaction limits are enabled so that the user does not put themselves in fraud situations. What makes PhonePe stand out among other online transaction apps? This is one of the famous Indian digital wallets. The features are similar to other wallets but better than their rivals. It has fewer technical glitches, safe from cybercriminals, and the details provided by the customers are kept secure. By linking one’s Bank Account on PhonePe they are up for credible and trustworthy services. PhonePe has one standout feature in particular: transferring money between two bank accounts. And the app does not demand the card’s IFSC code, card details, etc.; this ease of use is to reach out the app to every Indian possible ranging from educated to uneducated. Key features of PhonePe: Safe and secure Easy to use by anyone Made paying bills and recharging your account considerably convenient Do not demand recharging the wallet Generous transaction limit Available in multiple Indian languages You can open numerous Bank Accounts on PhonePe. Popular among Indians of all classes indicating easy transactions. [B-02] Conclusion: The use of mobile wallets has become inevitable with every passing day. In such a case, linking one’s Bank Accounts on PhonePe and adopting this application is wise. The article covered everything there is to know about PhonePe but to get more views on the same, reference the links given below. Piramal finances offer more insights into how one can perform smooth day-to-day transactions using PhonePe.
08-11-2023
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Personal Loan

What is the formula for personal loan EMI? And how to do It.

EMI is short for equated monthly instalments. One needs to pay this monthly amount to the bank until their loan gets fully repaid. The money gets directed towards both the actual amount and the interest. Personal loan EMI or any other EMIs needs to be paid monthly. In the initial months, a more significant part of the amount is directed towards interest. Gradually towards the end, a higher portion of the EMI amount is used to repay the principal. The monthly EMI does not change, but the percentage of interest and principal will be adjusted accordingly. The article discusses how you can calculate loan EMI. [B-01] What formula is used to determine personal loan EMI? There is a need for a standardised formula that would be accepted everywhere. There is one such formula for calculating personal loan EMI. All online calculators use this formula to compute the result. You can use the same formula to calculate manually. The formula is: EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]. Where, 1. EMI = Equated monthly instalment 2. P = The principal amount 3. R = Rate of interest. 4. N = Tenure or period. This formula of personal loan EMI calculation is used to find the EMI for any loan amount. The formula is quite complicated. It can be challenging for people to do it manually. It is time-consuming and can be prone to errors. So, it is better to use an online calculator for the job. What results are overviewed in an EMI calculator? EMI: The EMI needs to be paid monthly to the creditor to pay off the loan. Break-up for the total amount needed to be paid: One gets to see the loan amount payable to the creditor. The total amount includes processing fees, interest rate, and principal. An amortization table is made available for users to have a holistic view of their repayment obligations. What are the features of an EMI calculator? Graphical representation: One gets to know how much their principal amount is and the rate of interest applicable on their loan. This information gets displayed in the form of a pie chart. Repayment table: This table has detailed illustrations of your loan repayment to help you understand how much you need to shell out each month, helping you plan your finance. What are the elements of the repayment table? Principal paid: A portion of the monthly payment is directed towards repayment of the principal amount. As the loan gradually matures, this portion keeps increasing every month. Interest paid: A portion of the monthly payment is directed towards the interest rate. This portion of the personal loan EMI keeps reducing as the loan matures. Total payable amount: It is the total amount that needs to be paid. It is the total sum of the interest and principal. The outstanding balance of a loan: The ending balance of a particular period is the total amount the one owes to the bank after every payment. This table has monthly and yearly data. So, one can look at the data needed accordingly. What are the factors affecting personal loan EMI? The loan amount: A higher principal translates to a higher EMI. The lender gets to decide the maximum amount you can borrow. They make the decision based on your relationship with the bank, repayment capacity and many other factors. Rate of interest: The higher the rate of interest for a loan, the higher the EMI will be. Here again, the bank or the lender gets to decide the rate. This, too, depends on a few factors, such as credit history, income, and repayment capacity. Tenure of the loan: A longer tenure means lower EMI. But if someone chooses a longer tenure, then they might have to pay extra interest. The tenure usually ranges from 12 to 84 months. How can a personal loan EMI calculator be used? Online EMI calculators are way more convenient than the manual method. The manual method is long and tedious and can give the wrong result due to miscalculation. On the other hand, the digital process is simple and generates results in a few seconds. It also gives the proper breakup of the amount and explains details with the help of tables and charts. You can very conveniently use a personal loan EMI calculator. The following details need to be entered on the online EMI calculator: The principal amount The loan tenure The rate of interest And in no time, you will be able to see the result. What are the benefits of a personal loan EMI calculator? You can compare loans with the digital calculator Much quicker than manual calculation You can choose different loan tenures and check the EMI for each. With a personal loan EMI calculator, you can check your repayment schedule. The repayment schedule that the bank offers can be verified using this calculator. [B-02] Conclusion It is always advised to take financial decisions after doing a lot of research. Taking a loan is a big financial step. A personal loan EMI calculator will help you compute and plan your monthly expenditure. Visit “Piramal Finance” to explore their financial offerings and to learn about a range of finance-related topics.
08-11-2023
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