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Personal Loan

Popular personal loan myths you should ignore

Personal loans are very popular. They can be used for anything you want, such as financing a wedding, paying for college, dealing with medical emergencies, or paying off other debts. They are simple to get. The quick disbursement makes the entire process easy and painless. The popularity and advantages of instant personal loans are well known. However, some personal loan myths persist, and these common myths can be misleading. Read below for some common personal loan myths to avoid Personal loans are only used for personal reasons This common misconception causes people to avoid applying for personal loans. Most people believe personal loans are only for personal use because of their name. A personal loan can be used for almost any purpose, including medical emergencies, home renovations, child education, vacations, debt consolidation, and weddings. A low credit score equals loan denial Borrowers believe that a low credit score will result in their personal loan application being canceled. While your credit score is an important factor considered during personal loan eligibility evaluation, it is not the only criterion. Lenders also consider your income and loan repayment capacity. Only employees on a salary are eligible It’s a misconception that you can only apply for a personal loan if you have your pay stubs, offer letter, and company ID. Personal loans are available to self-employed people, private business owners, and NRIs. Indeed, some lending institutions make personal loans based on home rent income. You are ineligible due to a low credit score A low credit score reduces your eligibility for a personal loan. But it does not negate your chances of getting one. Some firms are willing to make loans to people with poor credit. If you take out a personal loan, you will also have a good chance of paying off your other debts. You improve your credit score when you repay your personal loan nicely and on time. The most expensive loans are personal loans This is one of the most common reasons people avoid taking out personal loans. A personal loan’s average interest rate (12%–16% per year) is lower than that of a credit card (2.5%–3% per month). Most people use their credit cards in an emergency. Now, it is simple to get a personal loan. When you need money, it is best to get a personal loan. You could also use seasonal offers and personal loan schemes. There are no tax breaks This is one of the most common Personal Loan Myths that prevent people from taking out a personal loan. Please keep in mind that a personal loan does not count as income. You can claim certain tax benefits when you use a personal loan for property construction or repair. You can also use the money for a down payment on a home and still claim tax benefits. The lengthy approval process You may have heard that applying for a personal loan entails a time-consuming application process. Also, there is extensive documentation, frequent bank visits, and so on. But this is a common misconception. On the other hand, personal loans can now be secured online, saving you time and effort. Quick personal loans are given by online lenders using cutting-edge technology. A personal loan requires the least amount of documentation. The lender sends a representative to your door to complete the documentation process. The loan is agreed upon in minutes; you can have it in your hands in less than three days. You can finish the entire procedure without leaving your house. Personal loans are only available from large banks or non-bank financial institutions. You've got it wrong if you believe personal loans are only available from top banks or NBFCs (non-banking financial companies). Smaller banks and other lending firms offer personal loans with lower interest rates. You cannot apply for a personal loan if you already have one. No rule says you can’t apply for a personal loan if you already have one. Lending firms check your repayment capacity when approving your loan. If various loans burden you, you can use the debt consolidation facility to combine many debts into one. Your personal loan application may be approved even if you have an existing loan as long as your repayment capacity is satisfactory to the lender. My loan is detrimental to my financial health Increasing your debt burden may not seem like a good idea if you already have many loans or are paying high interest rates. However, the notion that your financial stability fixes a personal loan is untrue. A personal loan can reduce your interest payment. Conclusion Personal loan myths already exist in our world. We cannot avoid them. But we can control how they are used. This means verifying before believing and moving forward after validating. If you want to apply for a personal loan but aren’t sure, contact the lending company; they’ll talk to you about it. Not a member of your family, a friend, or a co-worker. Clear your mind of any ambiguous thoughts. [B-02] FAQs Is it possible to close a personal loan in advance? Some banks have a 6-month to a 1-year lock-in period. While others allow you to pre-close your account even after the first EMI has been deducted. There may also be restrictions, such as using only your funds to pre-close a loan. Banks may provide free pre-closure or charge a fee. Please ask the bank’s loan advisor to clarify all these factors before signing the loan document. What loan terms do I have? The length would be fixed by your earnings and experience and could range from 12 to 60 months. Is it possible to track a loan application? Yes, you can choose this option. The facts will be shared via phone messages or emails, and it is also free.

08-11-2023

Personal Loan

How To Get A Personal Loan For Students In India

Let us first understand what a personal loan is. A personal loan is a type of loan that does not require any security or collateral. It has the minimum amount of documentation. A fixed duration is set to repay the loan. It is not a secured form of a loan. Payments have to be made every month. A personal loan for students is a great way to pay for the expensive education system. Everyone may not be capable of paying for a decent education. As a result, most individuals choose to take out a student loan to pay for their education. There are various reasons why you would not be qualified for student loans or how this might demand you to pay a fixed sum on your own, something you may not be able to do. In these situations, students may choose to take a loan rather than ask relatives or friends. [B-01] What is a student loan? Personal loan for students is a completely different setup than normal personal loans. An academic loan is given for a certain use and may only be applied toward the programme you specified while seeking the loan. It can cover every cost associated with studying during the program. The price of a PC, textbooks, travel expenses (whether you are studying overseas, for instance), entry fees, tuition costs, library expenses, etc. are just a few examples of what is typically covered. A certain portion of the overall price of a school must often be covered by you on your own. As the legal guardian is the principal petitioner, trainees without professional experience or earnings are capable of applying for such a bank loan for school. Points to check and keep in mind while applying There are a few points to keep in mind while applying for a personal loan for students. Some of them are: Determine the precise stipulation Knowing your needs before applying for a bank loan for college is essential. For tuition fees as well as other research expenses, you should be aware of the precise amount you require. Check your eligibility The following qualifications must be met to be eligible for a bank loan for education: You must be a citizen of India. In your prior board examinations, you ought to have received at least 50% of the possible points. The UGC, the state, or the AICTE should approve the institute. You shouldn’t have an open student loan account. Select the right lender To maximise your rewards, research multiple lenders based on several factors, such as interest rate, service charge, missed payment charges, additional charges, ease of loan application and repayment, customer ratings, etc., and pick the best provider. Estimate the EMI Unlike student loans, the EMI for personal loans begins right away. Therefore, make sure that either the student or the guardian can afford to pay back the sum of money you are choosing and that the regular instalments won’t put too much strain on your finances. Interest rate Interest on a personal loan for students ranges from 6% to 13% each year. Required documents To apply for a bank loan for school, students will need the following documents: ID Verification The Address Proof Income Evidence A duplicate of the letter of admission Mark sheet for classes 10, 12, and college Financial records over the last six months Letter of demand from the university The borrower signs the repayment plan Funding request form with the applicant’s signature Photographs Online methods to get a personal loan for students Digital bank loan applications are the easiest and fastest method. To complete the online registration for a bank loan, adhere to these paths: Browse the creditor’s official site once you’ve decided on one. Personal loans can be selected by going to the lending categories. Select “Register Now.” Complete the application with your information and send it. After the borrower evaluates your information, you will be contacted by phone or text. You must give the borrower the paperwork they need or make arrangements for your paperwork to be picked up. After the loan is approved, the money will be sent right away to the bank account that was chosen. If you are already a client of the borrower, the procedure will go even more quickly and simply because you may submit an application using banking services. Offline methods to get a personal loan for students These are some methods to apply for a personal loan for students offline. The following are the steps: Go to the government’s or NBFC’s closest location. The person from the institution or NBFC will walk you through the procedure. You must send the lender an online application for a bank loan that has been properly filled out and checked, along with other documents they need. When the loan is approved, the funds will be transferred to your designated bank account. [B-02] The key takeaways One can always select a bank loan for the study to provide your child with the educational opportunities they need but are lacking the cash for it. You won’t have to shoulder the entire cost of your education and other associated fees by using this type of credit. Numerous advantages of a bank loan for schooling include reasonable borrowing costs, adaptable loan payback terms, and higher options. These loans are simple to apply for and swiftly deposited into your bank, allowing the child to receive the high-quality education that they need. To prevent any unforeseen problems later, make sure you carefully read the policies and terms. Also, check loan contracts before applying for a personal loan for students. Piramal Finance is always there to help you with all of these. Complete guidance will be provided based on your needs. Get in touch with Piramal Finance to examine your finances and learn more about the loans you take out. Visit https://www.piramalfinance.com/ if you have any questions.

08-11-2023

Business Loan

Collateral Free Business Loan for Traders

Traders bridge the gap between the manufacturer and the consumer. You’ve come to the right place if you need urgent cash with no collateral. Many banks and NBFCs provide collateral-free loans. Due to a lack of adequate funds, you may feel obligated as a business owner to tap into your own personal funds. You could also try to find a business loan. But, the prospect of having to pledge collateral may cause you to hesitate. This leads us to an important question. What exactly is collateral, and how does one get a Collateral-Free Loan? A collateral is an asset given to a lender by a borrower to secure a loan. When a borrower fails to make a loan payment, the financial firms that issued the loan have the right to seize the collateral. This is to recover any sustained losses. A business loan is a type of financial product that is only used for business purposes. Business owners and self-employed professionals can apply. Along with MSMEs (Ministry of Micro, Small & Medium Enterprises), others can also apply for bank loans. The loan proceeds are used for business expansion. It can be like meeting working capital needs, increasing cash flow, etc. Working capital loans, term loans, cash credit, and letters of credit are available. Loans under government schemes and bank guarantees are also available from financial firms. Loans for businesses without collateral are collateral-free loans. These are business loans with no collateral. Collateral-free business loans are simple to secure and provide borrowers with limitless opportunities. They not only assist us in meeting our firm’s objectives but also in meeting the needs of our customers. The loan amount and repayment period may exceed the needs of the business. Banks offer interest rates based on financial stability. They also consider credit history, repayment ability, firm tenure, and other factors. Trader Loan Eligibility Criteria for Collateral Free Business Loan The following are the eligibility requirements for a Collateral Free Business Loan : The applicant must be self-employed and work in the trading industry. The applicant must have at least 5 years of business experience. The applicant must be an Indian national of at least 22. The applicant must have at least an annual revenue of Rs. 10 lakh. A CIBIL score of 750 or higher is important. Lenders’ credit score needs can differ. The applicant must have an annual income of 2 lakh. The person must have operated a profitable business for at least two years. Features and Benefits of Trader for Collateral-Free Business Loan The following are some of the features and benefits of firm loans for traders: Collateral-free: Traders' loans can be secured without collateral. This means borrowers do not have to go through a lengthy application process to get credit. However, traders should remember that these loans do not have security or collateral. Hence, the interest rate will be higher. Flexible repayment terms: Traders can repay their Collateral-Free Business Loan over 36 months, and some lending firms may allow traders to repay their debts over 60 months. Quick and Easy Process: One can apply for a Collateral Free Business Loan online through financial markets. This means that a trader can apply for a business loan quickly. Most traders need them on an urgent basis. Minimal paperwork: Collateral Free Business Loans for traders can be acquired with few records. Applicants must share their personal and professional data, adequate identity, and proof of income when applying. The applicant will only need to share a few facts. The process of applying for a trader loan will not take long. Quick Approval and Disbursement: The lender has verified the data submitted with the trader loan application. The funds will be deposited into the applicant’s account as soon as possible. Collateral Free Business Loan funds are disbursed within three days of approval. Conclusion Traders are important links between consumers and manufacturers of goods. Companies or individuals who buy and sell goods can qualify for a collateral-free business loan. Trade loans help a firm by funding trade throughout its trading cycle. It is a loan with no collateral. Collateral-free loans are unsecured, so you can repay your loan on time. It considers your current income, cash flows, and the firm’s viability. [B-02] FAQs What documents are needed for a Collateral Free Business loan? When applying for a business loan, the following documents must be there : KYC Documents Application form filled out and signed by the customer Relevant financial records Bank account statement for the previous six months PAN card Business Evidence How much money can you get through Collateral Free Business Loans? An unsecured business loan of up to 1 crore can be secured. How much time does it take to get a business loan? It usually takes 48 to 72 hours for a firm loan to be disbursed into your account. What is the least loan amount for a collateral-free loan? The Coverage of Collateral Free Loans (CGTMSE) aims to provide collateral-free loans up to Rs. 200 lakhs (up to Rs. 100 lakhs for retail and wholesale trade) to Micro and Small Enterprises as defined by the MSMED Act of 2006.

08-11-2023

Personal Loan

Top 15 Personal Loan Finance Companies in India 2022

A personal loan agreement is a financial transaction between a lender and a borrower. The loan amount, EMIs, and terms are determined during the loan approval process. No time is wasted on documentation. A personal loan is the best option in an emergency, especially if you have no other financial support and require funds quickly. [B-01] Top 15 Personal Loan Finance Companies in India 2022 HDFC Bank HDFC personal loans are one of the best options, with low-interest rates and flexible payment plans. The interest rate ranges from 10.50% to 21% p.a. The loan amount is limited to INR 15 lakh, with a maximum repayment period of 5 years. It is among the best Personal Loan Finance Companies. Overseas Indian Bank The Indian Overseas Bank provides loans to people with a steady source of income. The interest rate offered starts at 10.80% p.a. and goes up. The loan amount varies between INR 5,000 and INR 5 lakh. The loan has a maximum term of 5 years. Axis Bank Personal loans from Axis Bank are designed for salaried individuals, self-employed individuals, and professionals. The loan is simple to process, with simple documentation and quick approval. The interest rates range from 12% to 21% p.a. Loan amounts range between INR 50,000 and INR 15 lakh. The loan has a maximum term of five years. Money view Money View was founded in 2014, offering a paperless loan of up to 500,000 with EMIs ranging from 3 to 60 months. Money View may be a better option if you require cash quickly and cannot wait for your bank to approve it. It allows you to schedule EMIs for up to 60 months. 5) State Bank of India State Bank of India personal loans have some of the lowest interest rates in the country. Personal loans and pension loans from SBI Xpress Credit have interest rates ranging from 8% p.a. to 10.60% p.a. The loan amount is limited to INR 20 lakh, with a maximum repayment period of 7 years. IDBI Bank IDBI Bank personal loans have low-interest rates and can help you cover various personal and professional expenses. The processing fee is minimal, ranging from 1% to 2%. Loan amounts range between INR 25,000 and INR 5 lakh. The loan’s maximum term is 5 years. ICICI Bank Personal loans are available from ICICI Bank, with repayment terms ranging from 12 to 60 months. All of the loans available are geared toward the average Indian consumer. The annual interest rate ranges from 12% to 24%. Loan amounts range between INR 50,000 and INR 15 lakh. HSBC Bank HSBC Bank provides credit with four simple repayment options as well as competitive interest rates. There are also special discounts for existing customers. The annual interest rate ranges from 13% to 15%. Loan amounts range between INR 50,000 and INR 15 lakh. Punjab National Bank Punjab National Bank provides a personal loan with a low-interest rate to assist you in meeting your immediate financial needs. PNB charges interest rates ranging from 8.7% p.a. to 14.25% p.a. on loans ranging from Rs. 50,000 to Rs. 10 lakh. The maximum repayment period is 5 to 7 years. UCO Bank UCO Bank offers a personal loan programme that has been tailored to meet a variety of expenses and personal obligations. The loan’s interest rate is 13.5% per annum, and the maximum amount is INR 50,000 to INR 15 lakh. The maximum loan term is 12 years. 11. Mahindra Finance Despite being one of the top NBFCs (non-banking financial companies), Mahindra Finance has the least competitive figures on the market. The maximum loan amount is INR 3 lakh, and the maximum loan term is also short. TurboLoan by Cholamandalam Personal Loan Turboloan is a personal loan offered by Cholamandalam that is entirely digital and paperless. The interest rates are reasonable, and the benefits of same-day disbursement are. The maximum loan amount is only INR 3 lakh, with a maximum tenure of three years. 13. Canara Bank Canara Bank provides a personal budget loan as well as a personal loan for teachers. The teacher’s loan is ideal for those new to the teaching profession and currently unemployed. The maximum amount available is INR 3 lakh or six months’ gross salary, whichever is less. 14. Andhra Banking Corporation Andhra Bank is based in Hyderabad, Telangana, and provides comprehensive coverage for all personal expenses. The interest rates range from 15.75% per annum to 16% per annum. 15. Buddha Finance Buddha Finance is one of the fastest-growing Personal Loan Finance Companies, with loan processing times that are relatively quick and free loan advice. They have yet to significantly impact the mainstream market, however, because they are still relatively unknown in the field. Conclusion Consider the interest rate, the processing fee, and the lender’s prepayment penalty. It is the most cost-effective in the long run. Personal loan interest rates vary depending on your credit score. These simple steps will assist you in locating a loan that meets your requirements while remaining reasonably priced. People apply for personal loans for immediate gratification, putting themselves under stress by paying high EMIs. So, if you want to buy something that you can easily postpone, think twice before taking out a personal loan. Read on to learn more about finances at https://www.piramalfinance.com/ [B-02] FAQs Is it possible to get a personal loan on a part-time basis? Some banks, including Axis and Citibank, permit part payment. However, there may be limitations on how many times you can part-pay in a year. Again, before signing the loan document, please ask our or the bank’s loan advisor for clarification on these factors. Will I be able to obtain a debt consolidation loan? Various factors, such as credit score, repayment history, etc., determine a debt consolidation loan qualification. If you meet all the eligibility requirements, you will most likely be approved for a debt consolidation loan. Is it possible to assign a personal loan to another person? If the borrower has co-signers on the personal loan, that co-signer is equally liable for the repayments and everything else related to that specific loan. But, it is not possible to transfer a personal loan to someone else under any circumstances.

08-11-2023

Personal Loan

Should You Opt for a Personal Loan for Home Renovation?

Renovating a house is expensive. It can cause a minor setback in finance. If the house is in pieces, the setback can be significant. It’s time to fix the leaky ceiling, the broken windows, and the noisy doors. Unless one has made a budget and planned everything already, it will be difficult to fix everything. A Personal Loan for Home Renovation is helpful in these cases. A home improvement or renovation loan is a type of personal loan offered by banks to renovate a home. This loan does not need collateral. It puts no limit on how to use the money. Depending on the customer, they can use the loans however they want. It can be used to decorate the home during the festive season or renovate and fix it. Many customers prefer a Personal Loan for Home Renovation. This type of loan is easy to get. It does not require any collateral. The only eligibility criteria for this type of loan is that the customer should be a salaried applicant. Also, it is a personal loan, so it is quick, convenient, and approved within minutes. It can be availed with minimum documentation. [B-01] Why should one go for a Personal Loan for Home Renovation? The interest rates on these personal loans are significantly less. Many banks offer Personal loans with 0% interest on promotional offers. Hence, Personal loans are very cost friendly and affordable. Customers should only worry about the repayment in time. If not paid on time, the interest might increase, leading to a stressful financial situation. A personal loan for home renovation is one of the best options to go for if someone wants to renovate their home. It is convenient and readily available with minimum documentation. No restrictions on the use of the loan. The funds raised by the loan have no restrictions or limitations on using the money. These funds can also be used to buy white goods like washing machines, ac, television, and many more. The personal loan for the home renovation is collateral-free, so there is no need to risk assets to get the money. Lenders can offer to give up to Rs 25 lakhs when one is borrowing a home renovation loan. Immediate money for repairing works Personal loans generally very quickly deposit money in the customer’s account. One can obtain the cash within a day. This will help in managing immediate repairs. Water damage, sewer blockage, leaky ceiling, and electrical damages need close attention. These are also very costly to repair. A personal loan for home renovation will be a cost-friendly and quick solution to the problems. One can access a home renovation loan within a day. One can also apply for it online. Flexible repayment terms The eligibility criteria for a personal loan for home renovation are straightforward. If a person is a salaried employee, they can apply for it. These loans have low personal loan interest rates. This allows one to pay affordable EMIs. One gets an ample amount of time to spend in instalments. The tenor to make the repayment can be customised as per the customer. A lengthy tenor will make the repayment pocket friendly. The lender gives up to 60 months for the repayment of the loans. This fair amount of time is enough to repay the loans and be debt free. One can also use an online EMI calculator to plan the repayment process for the personal loan that they took. Everything to know about the Flexi Facility This is a new facility provided by specific lenders. This facility makes the repayment process much easier and more convenient. The flexible facility allows the customer to only pay interest on what they utilise. The customer can borrow any amount of money with this facility. During the first year of repayment, the customer can pay only the interest as the EMI. The Flexi facility also allows customers to prepay at no charge if they have a surplus fund. When a customer takes a personal loan for home renovation, they should be avail of the Flexi Facility. It helps the customer to manage their finances better. Alternatives of personal loan Personal loans can be attractive for customers but may not be their first choice. Here are some alternatives for a personal loan for home renovation that may help to renovate the home without a loan. Credit Cards Credit cards can be an option to raise funds for home renovation. Regular customers of a bank can negotiate with the bank to purchase a credit card with 0% APR on the purchase offer. A 0% APR can help the customer finance the home renovation without paying any interest. The only criterion is to pay off the money before the APR expires. If the APR expires, the customer must pay high interest on the remaining balance. Cash If someone is going to renovate their home, the best way to do it is with money. Cash comes with the advantage of not paying any interest later. One can remodel their home in phases if they have financial stretches. Cash is a direct way of paying. It helps the customer pay for what the customer needs at that moment. [B-02] Conclusion In conclusion, a personal loan for home renovation can be a helpful way to raise funds for renovating the house. It is quick, convenient, and easy to avail. If a customer wants to know more about personal loans and financing, then Piramal Finance is a good option for the customers.

08-11-2023

Other

What Are The Reasons To Write A Cancelled Cheque

Since most small and large financial transactions are now done digitally, writing cheques is near-obsolete. But you might still come across things called ‘cancelled cheques‘. From providing account information to proving that the account belongs in your name – they serve many purposes. A cancelled cheque is a regular cheque marked with two parallel lines. In most instances, the lines are drawn diagonally. The word ‘Cancelled’ or ‘Cancellation’ is written in capital letters in the space between them. Cancelling the cheque ensures that it can’t be misused. At the same time, a cancelled cheque contains details like the account number, the account holder’s name, and the IFSC code. With a cancelled cheque, the receiver can check your information efficiently. Further, a cancelled cheque prevents the chances of a payment from getting credited to the wrong account. So, read on as we learn more about cancelled cheques and why we need to write them. [B-01] 6 Reasons Why People Use Cancelled Cheques Opening a Demat Account A depository-cum-mutual fund account, or a Demat account, is a bank account that lets customers buy units and shares of different funds. It also allows customers to sell their units and shares at any time. Cancelled cheques are a great way to prove your identity and open an account. In this case, you must provide two cancelled cheques with your name on them. Withdrawal from the Employees’ Provident Fund The Employees’ Provident Fund is a type of social security that lets you build a retirement corpus. To withdraw from your EPF account, you need to show proof. These include your Aadhaar card, PAN card, and a cancelled cheque. The cancelled cheque shows which account you want the money to credit to. Remember that EPF funds can’t be withdrawn until the officials check the bank details. It protects your corpus against financial fraud. Starting EMIs EMI, ‘equated monthly instalment’ is a payment made to repay a loan over time. They are crucial to any transaction where a creditor lends money to a borrower. Similarly, when a borrower buys something on credit from a seller, they must provide cancelled cheques. For example, suppose you want to buy a high-priced electronic gadget. Different sellers will offer different EMI plans. No matter what you choose, you must show proof of your identity and credit score. One of these is a cheque that has been returned. It lets the bank or other financial organisation check your information. Electronic Clearance Service Electronic Clearance Service (ECS) is a system that lets you process and import clearance applications electronically. It is used to make payments like salary, pension dividends, interest, and so on. ECS is also used to collect payments in bulk, like for water taxes, electric bills, phone bills, etc. In short, it is a service that moves money from one bank account to another. Your bank will ask for a cancelled cheque when you set up ECS payments from your account. This cancelled cheque will show that you have a legitimate bank account. It will help verify the information you put on the ECS form about your bank, ensuring that the money goes to the right account. Buying a new Insurance Policy Buying a policy of insurance is a financial transaction. You pay periodic premiums to keep the policy active. At the same time, the insurer will provide coverage when a situation meets the policy guidelines. Hence, insurance service providers must have the correct information about your account. When you buy new insurance, the insurer asks for a cancelled cheque, among other proofs. It gives the insurance company information about your bank account. Loan processing after approval As a borrower, you’ve probably gone through the process of applying for a loan. You finally get the loan after weeks of filling out forms and waiting for your credit check to be done. You might feel happy and relieved that your loan is finally going through, but there is still another step to take after you sign the papers. This includes providing ID and address proof documents and a cancelled cheque. It indicates which account should the loan amount be deposited into. [B-02] Last Word In a world of financial crimes, a cancelled cheque has become one of the easiest ways to validate your account information and secure transactions. Giving someone a cancelled cheque is not risky because they can’t use it to get money. But the fact that you have a cheque shows that you have an active bank account. It ensures that your account information doesn’t get messed up in the process. But there are ways to make it easier for you to do these things. Check out the customer-friendly programmes Piramal Finance offers, so you don’t have to fill out too many forms.

08-11-2023

Personal Loan

Different Kind Of Fees And Charges Applied On Your Personal Loan You Must Know

We all know that when we take a loan, the lender will levy certain charges for sanctioning the credit. Different fees can be applied to your loan, and it’s important to understand them before you sign up for a loan. This blog post will describe the most common types of fees, so you’ll know what to expect. We’ll also provide some tips for avoiding or minimizing these costs. Read on to learn more! [B-01] Fees that are generally charged on personal loans When applying for a personal loan, you may be required to pay certain fees in addition to the interest rate. These fees can include the following: Application or processing fees: This is a fee charged by lenders simply for reviewing your application and helping you complete the paperwork required to apply for a loan. Some lenders may offer to waive this fee if you agree to sign up for automatic payment withdrawals from your bank account. Late payment or default fees: If you miss one of your scheduled payments on a personal loan or default on the entire loan balance, you may need to pay additional fees as part of the penalty. These late payments or default fees vary depending on the lender and may be assessed at a flat rate or a percentage of the entire loan amount. Prepayment penalties: Some loans may charge you a penalty if you choose to pay off the entire balance before your loan term expires, usually within the first few months of taking out the loan. These fees can vary depending on whether they are assessed as a flat fee or an interest rate on your outstanding loan balance. These fees are charged in addition to any interest that you accrue on your loan balance. Therefore it’s important to do some comparison shopping when looking for a personal loan so that you only have to pay what is necessary and avoid hidden charges from predatory lenders. When reviewing offers from different lenders, make sure to read the fine print carefully to understand exactly what you agree to before signing on the dotted line. How to avoid or reduce these fees on personal loans When taking out a personal loan, there are certain fees and costs that you should be aware of upfront. These can include application or origination fees, processing fees, and prepayment penalties. While most lenders will disclose these fees during the initial application process, it is still important to read the fine print carefully before signing on the dotted line. You’ll also want to shop around for loans with the lowest possible rates and fees to save as much money as possible over the life of your loan. Here are some tips for avoiding or reducing these fees on personal loans Compare various lenders’ offers and terms carefully before deciding. Don’t just consider interest rates when looking at loan offers—check out the fees each lender charges. Avoid prepayment penalties whenever possible. Many lenders will charge you additional fees if you try to pay off your loan early, but these can be avoided by selecting a lender who doesn’t impose them or negotiating with your current lender to waive them. Pay attention to when and how much the origination fee is applied to your loan balance. Some lenders apply this fee all at once, while others may spread it over several months or years. If you only have a small amount left on your loan, paying interest on extra fees can be an expensive proposition! Understand what constitutes a return payment and whether your lender charges fees for these. Some lenders charge a fee when they have to process a returned payment, while others do not, so it’s important to know each institution’s policies before you take out a loan. By being aware of and managing the various fees associated with personal loans, you can save money over the life of your loan and hopefully get more value from your funds overall. And remember—shop for the best possible rates and terms to maximize your savings! An example of how a personal loan works with associated fees Assuming you qualify for a personal loan, here’s an example of how it might work. You borrow INR 50,000 and agree to repay it over three years at 10% interest. In this case, your monthly payment would be INR 462 and you would pay a total of INR15,000 in interest over the life of the loan. Let’s say you will pay off your loan a little early, after two years instead of three. In this case, your lender may charge you a prepayment fee equal to 3% of the outstanding balance on your loan (INR 16000). So if you paid off your entire loan balance of INR 50000 today, you would owe a prepayment fee of INR 480, for a total of INR 50480 Personal loans typically have origination fees that range from 1% to 8% of the loan amount. So on our INR 50000 loan example, you could pay anywhere from INR 500 to INR 4000 in origination fees. Some lenders also charge late fees if you miss a payment, ranging from INR 2000 to INR 4000. Tips on how to get the best deal on your loan If you’re looking to take out a personal loan, there are a few things you can do to make sure you get the best deal possible. Here are a few tips: Shop around. Don’t just go with the first lender you find. Compare rates and terms from multiple lenders to ensure you’re getting the best deal. Know your credit score. The better your credit score, the lower the interest rate you’ll be able to qualify for. So it’s worth checking your credit score before you apply for a loan. Consider a secured loan. If you have collateral (such as a home or car), you may get a lower interest rate by taking out a secured loan. Ask about fees. Some lenders charge origination fees or prepayment penalties. Make sure you know what fees you’ll be responsible for before you agree to a loan. Compare APRs, not just interest rates. When comparing loans, compare the Annual Percentage Rate (APR) rather than the interest rate. The APR includes both the interest rate and any other fees that may be charged, so it’s a better representation of the true cost of the loan. Following these tips will help ensure that you get the best deal possible on your loan. [B-02] Conclusion It is essential to know all of the hidden charges and other miscellaneous charges that may apply if you are taking a loan. Piramal Finance has years of financial expertise in personal finance, investment, loans, etc. Connect with us today if you want to know more about this topic.

08-11-2023

Mutual Funds

What Is SIP and How to Use SIP Calculator?

When we organize our finances well, we can make our dreams a reality. Systematic Investment Plans (SIPs) are a great tool for establishing good money habits and amassing assets for the future. SIPs are a quick and easy way to start saving money and allow you to take baby steps toward constructing a large, well-organized corpus. This article will explain what “SIP” stands for, how it operates, and what advantages it offers. [B-01] What is SIP? A SIP stands for a Systematic Investment Plan. They are automatic monthly payments. We use them as a method of investing in mutual funds. You can set up a long-term investing strategy using SIPs to help you reach your financial goals. Choose a mutual fund plan, goal, and investment amount you want to make. The payments you make into your SIP get invested in a mutual fund portfolio. A financial institution manages that portfolio. Take the hypothetical case of someone who wants to invest Rs. 500 every month for five years. Setting up a SIP can make investing in a mutual fund easier. Which, in turn, will automatically deduct monthly payments. Likewise, you can choose how often to contribute. Typical SIP mutual fund subscription durations include weekly, quarterly, monthly, yearly, etc. How Does a SIP Work? There are a few fundamentals of SIP that you should understand before you set it up. A SIP investment goes through three distinct phases. These phases go from the first deposit through the final investment in a mutual fund plan. Picking a Mutual Fund Plan Picking a mutual fund plan to put your money into is the first step in setting up a systematic investing plan. Choose Your Investment Frequency The next step in starting a SIP is choosing how often you want to make investments. For investors who get a salary, the most typical option is a monthly payout schedule. You can also invest weekly, quarterly, semiannually, or annually. Start Your SIP With a Mutual Fund Plan Once you’ve selected a mutual fund, establishing your SIP couldn’t be easier. Simply go to your preferred mutual fund on a SIP platform and then click on the “invest” button. If this is your first time investing, in that case, enter your bank information and SIP contributions and complete your KYC. Automatic Debits and Unit Allotment Based on NAV After completing all the steps, funds will automatically be deducted from your account. That amount will be deducted monthly from your account on the specified date. Also, a computer program handles this procedure. You can create a regular schedule for automatic withdrawals from your bank account. When your account gets debited, your money will get invested as soon as possible. You will also get a NAV-calculated allocation of units as part of the confirmation. Unit allotments are subject to daily changes in the NAV. So, the amount you get for your contribution may fluctuate. What is a SIP Calculator? These days, SIPs in mutual funds are among the most common ways young people build wealth. SIP calculators help investors determine what their investment will be worth. A monthly SIP gives you a general estimate of the maturation amount. This maturity amount depends on the anticipated yearly return rate. It is helpful to use an online SIP calculator, which provides an estimate of the returns you can expect to receive at the end of the investing period. You can use this tool to estimate how much you’ll have gained and how much you’ll make from your monthly SIP investment. But, the SIP calculator doesn’t explain the departure load and expenditure ratio. Benefits of a SIP Calculator Now that we know what a SIP calculator is and how it works, let’s highlight its advantages: The projected returns that you’ll earn against the modest monthly investments can be quickly and easily calculated by using the calculator. As a result, long-term financial objectives can be factored into investing decisions. Other than the monthly investment amount, investment term, and return percentage, no other information is necessary. This means that the interface is simple to use. There is no cost associated with using the calculators since they are available online. How Can a SIP Calculator Help You? A SIP calculator splits the long-term value of the SIP into the principal and the expected rate of return. Hence, you can use a SIP calculator to know how your investments will rise based on certain factors. Calculators figure out the yield based on how long the investment is held, the return on capital, and the SIP payment. The SIP calculator lets you take inflation into account, along with your savings rate. To achieve this, you can calculate the actual rate of return on your investment. But use the desired real rate of return and the current inflation rate. How to Use a SIP Calculator? The usage of SIP calculators varies from calculator to calculator. But, using a SIP calculator is a piece of cake. You only need to put in the following: The monthly payments you’ll contribute towards the SIP The amount of time you wish to start a SIP for How much return do you expect? (%) Put in these values, and the calculator will do the rest! [B-02] Conclusion A SIP is a method of investing on a regular basis over time. The potential for long-term wealth accumulation via a SIP is strong. Plus, the plan’s ease of use makes it attractive. The magic of compounding and rupee cost averaging works in your favor. The Piramal Finance blog raises the level of investor consciousness, which in turn helps investors learn more about mutual funds. Contact us to learn more.

08-11-2023

Banking

Complete Guide To Check Your Bank Account Balance On Your Phone

The digital world has made it easy and convenient to do many banking and financial tasks on your phone. You can go to the bank to find out how much money is in your account. Many banks give customers more than one way to check their bank account balance. There are some popular ways to check your bank account balance on your phone. The most popular ways are – SMS notifications, email, push notifications, internet banking, and many others. Here, you know how to check your bank account balance without going to the branch. [B-01] Check your Bank Account balance online You can check your account balance anytime by going to the bank’s website on your phone and logging in. You can use this service by visiting the bank’s website and looking at your account information. Most of the time, look for something like “Login.” When you visit for the first time, click “Register” or “First-time user” to sign up. Online banking allows you to check your bank account balance at any time of the day or night. You can do several other banking tasks and transactions with such a facility. Use Mobile Apps to check your Bank Account balance You can easily check your bank account balance anywhere and anytime on your phone, tablet, or other devices. Most banks have apps or websites designed for mobile devices that let you confirm your account balance online. You can use banking apps for some banking and money-related tasks. Some banks sometimes let you use your phone to deposit checks. Use Text Messaging to check your Bank Account balance Setting-up text messaging with your bank is the fastest way to use your phone to see your bank account balance. Most banks give their account holders this choice. Once the bank gives you this service for your mobile number, you can ask for a quick balance update. You can receive this as a text message at any time. Once you turn on the automatic messages, you will get instant messages. You will receive them if there is a change to your account balance or a financial transaction. This service, which sends push notifications to the phone, is also called a message alert service. Use the UPI App to check your Bank Account balance A UPI app is the easiest and most effective way to check your bank account balance on your phone. You can get any UPI app from the App store or the Play store. Begin the registration process once you’ve got it on your phone. Enter the bank’s registered phone number and click “generate OTP.” Enter the One-Time Password (OTP) and sign in to the app. You need to write down the bank information. Once done, the UPI will automatically find the account linked to your mobile number. It will show you the last four digits of that account. Your new UPI ID will be made as soon as you confirm it. Once your identity has been confirmed, the UPI code you select will be activated. You can keep using the UPI app to check your balance and make financial transactions. Make a Missed Call to check your Bank Account balance A consumer can make a missed call from the registered phone number to the bank’s toll-free number. After that, the bank account balance updates are sent as text messages. You must do a few basic things to get updates on your missed call balance, as shown below. You must have a registered cell phone number to get a balance update through such a missed call. You will only get updates on your balance if the phone number is in the bank’s database. The number you registered should work to create a missed call and get an SMS. But your bank has to offer this service. Call Customer Service to check your Bank Account Balance If none of these work, you could call the bank to find out the balance. But unlike the other options, there are several restrictions. You cannot access your account balance at any time of day or night. You can only do this if the bank’s system is automated. Machines now do most things. You’ll be asked to give certain information, like your bank account number. After that, they’ll let you know your balance immediately. Advantages of Mobile Banking Accessibility At Any time and From Any Location You can do a lot of everyday banking tasks without going to a branch. One of the best things about online banking is that it gives you this freedom. You can deposit cheques, and pay the bills. You can transfer money from the privacy of your home, your workplace, or even a trusted friend’s home. Log on to Online Banking, and you can take care of many of your banking tasks with just a few clicks. Just keep in mind the importance of having a safe Wi-Fi network. Be very careful about banking on a network where you didn’t put in a password. Saves Time Mobile banking apps can help you deposit that check when you’re ready. Another advantage of mobile banking is that you can check your accounts anytime. You don’t have to wait in line; only log on and do it. On your own time. Easy-to-use You can use internet banking if you’ve visited a website before. Some features, such as alerts and Bill Pay, may require configuration. But everything else is easy once you’ve done that. Select which tabs hold your most-used financial tasks so you can conduct them with one click next time. [B-02] Conclusion There is a rise in digital technologies in the finance industry. Many jobs that used to take a lot of time have become easier. Before, if you wanted to do banking or check your bank account balance, you had to go to the nearest bank branch. Now, you can choose from several other options. You can do a lot of different banking tasks with just one click. From checking your bank account balance to transferring and depositing money etc. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023