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Personal Loan

The basics of personal loans and how they work for beginners

Personal loans from banks, credit unions, and online lenders are available for a wide range of uses. With personal loans, you can pay a certain amount back over a specified time while earning interest. Your credit score, income, and other factors will affect your interest rate. Obtaining beginner business loans may be challenging for many small business owners. To apply, you and your small business must meet many requirements. But don’t worry – you may still use a personal loan if you can’t now get a business loan. [B-01] What Are Personal Loans for Beginners? A personal loan is an unsecured loan. You may use a personal loan to pay for medical, school, career, and personal costs. Personal loans differ from other forms of loans due to their unsecured nature. This suggests that clients often lack personal security when applying for a loan. As a result, personal loans are risky for lenders since they cannot be reimbursed if you default. After doing a full background check and credit check, lenders will view this as another factor when assessing your credit risk. This credit check is a credit inquiry and will appear on your credit report. The more credit inquiries you make, the lower your credit score. What Are the Benefits of a Personal Loan? While many users utilise personal loans to pay off or reduce existing debt, there are many other ways they may help you. Here, we’ve covered some such benefits for your use. Benefits of Personal Loans: Quick approval procedures may not always need a bank Set interest rates and payments Several different monetary quantities Less expensive than credit card interest rates Things to Keep In Mind Prior To Applying for a Loan We also want the best for you. To assist you in making selections, the following loan information is provided: Credit score: Before applying for a loan, try to obtain a credit score of at least 700. Lenders and banks will want to review your credit history, which records your payment patterns and past-due balances. Interest rates: Research the interest rates for any loans you consider applying for. In contrast to unsecured loans, secured loans often offer lower interest rates but also demand collateral. The interest rate you pay may also vary depending on the bank you choose and your qualifying profile. Payment due dates: Select loans with payback terms that fit your budget. If you don’t make your payments on time, your bank may impose processing fees and penalties. Compare loans: Compare loans to ensure that the EMI, interest rate, and term you choose are in your favour. How to get Beginner business loans Verify if a personal loan is appropriate for your company An option for a beginner business loan is a personal loan. It doesn’t follow that doing so is always the best option. So it is clear why business owners need business loans. Compared to personal loans, business loans often feature longer loan terms, cheaper interest rates, and more significant loan amounts. Company loans also are ideal for a range of business needs, such as purchasing equipment, hiring staff, and other requirements for working cash. Personal loans are meant for, well, personal needs. Think about smaller needs, house renovations, and debt reduction. Personal loans often have smaller loan amounts and shorter terms because of these criteria and the typical client’s needs. They often also have a higher APR (annual percentage rate). Check your borrower eligibility Finding out whether you qualify for a personal loan comes after you decide you want one. For that, you’ll need some numbers. All personal and beginner business loan lenders assess applications based on client criteria. A personal lender will likely consider the following factors: Credit rating Credit report Income Collateral A personal loan provider A personal lender has to possess a few traits. The first step is to find a personal lender that is OK with you using a loan for your business. Many lenders claim that you may sometimes use a personal loan for business expenses. Since you want to go by their terms of usage, make sure your lender is OK with you funding your business. If you’re looking for a reliable place to start, we suggest Piramal Finance. You should be able to use the loan for your business – so make sure you check for details when you apply. Request a personal loan Since most lenders want to make the formation process as simple as possible, you can often start a loan application online. A few supporting documents must be sent with your loan application. Once again, your lender will choose the precise requirements. But don’t be surprised if you’re asked to show tax returns, proof of income, or other papers. Once you submit it, the lender will check your loan request. You should likely get a loan offer. Create a strategy for future funding As mentioned in step one, personal loans are a better source of finance for most businesses. As a result, creating a plan to be qualified for better financing options in the future. Find measures to enhance your company’s credit needs as well. Again, some factors will be simple: the more skill your firm has, the more likely it is to be approved for a beginner business loan. Yet, certain issues will be more challenging: Sales growth will raise your business’s financing eligibility. It would help if you also focused on organising your budget, so you have a lot of cash flow. You may also take steps to raise your company’s credit rating (by taking out a business credit card). [B-02] Conclusion A personal loan is a kind of instalment loan, which means you borrow money and then pay it back over a certain time while accruing interest. Unlike personal beginner business loans, true business loans often have longer terms, smaller loan amounts, and higher rates. Yet, some business owners may find it easier to get personal loans since personal lenders are more concerned with your qualifications than your firm’s. To know more about personal loans and beginner business loans follow Piramal Finance.
08-11-2023
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Personal Loan

Top 10 Reasons to Avail a Personal Loan This Year

Personal loans are a great way to get instant money. You may need this money for a major purchase or to pay off urgent expenses like medical bills. Here are the top 10 reasons that make personal loans stand out from all types of loans. [B-01] Top 10 Reasons to Avail a Personal Loan This Year 1. Hassle-Free Documentation One of the major benefits of personal loans is the less amount of paperwork. All required documentation is done in a digital format if you submit your application online. You can attach the necessary files to your application form and submit them simultaneously. The process does not include any paper at any point. Also, some financers offer a service to collect your documents right from your doorstep. As part of the application process, banks and other lenders will ask you to provide documents like your ID proof, address proof, bank account details, pay stubs, and tax returns. 2. Quick Disbursement The funding of a house loan takes roughly three to four weeks to complete. On the other hand, a personal loan is processed within 24-72 hours. So, the best way to meet pressing demands for cash or payments is by taking out personal loans. To get your loan promptly disbursed, you will need to have a strong credit score and be able to prove that you match the eligibility criteria. 3. No Need for Collateral Personal loans are unsecured loans, so you do not need to use any asset as collateral. In the case of default or nonpayment of obligations, you will not lose an asset. Because of this, anyone with a stable income and credit history can qualify for a personal loan. 4. Versatility Personal loans are your best option whenever you need to borrow money for whatever reason. There are no restrictions placed on the end-use of the loan amount by the lenders. That is, without a doubt, one of the most useful aspects of availing of a personal loan. You can put the money you borrow toward arranging your ideal trip, paying off other types of debt, buying high-end gadgets and accessories, or throwing a flamboyant wedding. You can also use personal loans to pay your bills in a medical emergency. 5. Help with Debt Consolidation Paying off debt is another major use to which you can put your personal loan amount. You can use this amount to pay off other debts, such as secured loans or high interest credit cards. In addition, personal loans have lower interest rates than credit cards. So, you can repay the high-interest debt with a low-interest financial product. 6. Credit Building If you are just starting to build your credit or your credit score is poor, getting a personal loan might be a great way to help with both. Since personal loans are available at feasible interest rates, you can take as much or as little time as you need to repay them. When you make your EMI payments on time, it shows on your credit report as stable payment history. A loan may be a good option, but only if you know that you can afford to make the monthly payments. If the loan’s monthly instalment is too much for you to bear and you fail to make even one EMI, you will end up decreasing your credit score. 7. Flexible Tenure The borrower-friendly repayment options of a personal loan are a major selling point. The loan tenure ranges from 12 months to 7 years. This way, you can select a term that suits your budget and needs. Generally speaking, the EMI will be less if the loan term is longer. So, you can tailor your monthly expenses to your precise needs by selecting the right loan term. 8. Attractive Interest Rates The interest rates for personal loans are more reasonable than most other types of loans. So, you may get manageable monthly instalments. In most cases, the interest rate remains constant. As a result, you will not have to worry about your monthly payments fluctuating with the interest rate throughout the loan tenure. 9. Tax Reduction Personal loans may qualify for tax breaks under Section 24B of the Income Tax Act of 1961. For instance, if the money is used for residential purposes like repairs, rebuilding, or down payments, you can claim a return of up to ₹2 lacs for the interest paid on the loan during that fiscal year. More terms and conditions may apply depending on your specific situation. 10. Better Alternative to Payday Loans Instead of taking out a payday loan when you need money, consider applying for a personal loan. The interest on payday loans is higher than that on a personal loan. Also, payday loans often have short repayment periods of two weeks or less. The repayment is due on the borrower’s next payday. Often, borrowers struggle to meet the repayment deadline because of the speed with which the loan gets processed. Instead of paying the loan, borrowers refinance them, adding more interest. Thus, the resulting sum of interest is even higher. [B-02] Conclusion A personal loan can be used for anything. But you must repay the loan at some point, so keep that in mind. Borrowing money for personal reasons comes with the extra cost of paying interest. Want a quick personal loan of up to ₹10 lacs? Apply for a personal loan with Piramal Finance now! Or need some financial advice and assistance to plan your finances well? Check out their other financial articles, products, and services.
08-11-2023
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Personal Loan

What Is a Flexible Loan and What Are Its Benefits?

A flexible loan is a type of personal loan with a set credit limit. Depending on your credit history, the lender will give you a credit line or an overdraft facility as a pre-approved cash limit. The interest rate on a flexible loan is charged only on the amount that you have borrowed or used, not on the total approved amount. You can pay back the loan amount whenever you want. But you have to pay off the interest each month. You can also pay off the loan early if you have extra cash. Anyone with a job or a stable source of income can take out a flexible loan to use the money for any financial need. [B-01] Benefits of Flexible Loan A flexible loan is better than a personal loan or any other type of loan in several ways. All-Time Availability of FundsYou can get a flexible loan to help you get out of any financial emergency that needs urgent cash. Once you have established a flexible loan limit, you can withdraw funds in as many instalments as possible. Option to Pay AheadIf you have additional funds, you can repay this loan early. The standard payout process is also easy because you only borrow what you require and can pay it back quickly. Use a flexible loan calculator to figure out how much your loan will cost you with interest. Moderate Interest RateFlexible loans have low interest rates. Also, the rate only applies to the amount you take out, not the total loan limit your lender gives you. Many Chances to WithdrawUnlike a regular loan where you get the whole amount at once, a flexible loan allows many chances to make withdrawals. You can take out more money once you pay back the previous withdrawal amount. Eligibility Criteria: Salaried Applicants Nationality: Indian citizen or residing in an Indian city Age: Approximately 21-67 years CIBIL Score: 750+ Employment: Private, public, or MNC employee Minimum Salary: Depends on where you live Eligibility Criteria: Self-Employed Applicants Nationality: Indian Age: Approximately 24-70 years CIBIL Score: 685+ Business Continuation: Minimum 3 years These are the standard criteria for a flexible loan application. The specifics might change according to the lender. So, you must check your eligibility against your lender’s criteria before applying. Documents Required If you want to get a flexible loan for the first time, you must keep some documents ready. Because it is an unsecured loan, you do not need to turn in many documents. You can look at the lender’s website or ask a representative for the documents you will need. Here is what most lenders ask for: Income ProofSalaried workers must show their pay stubs from the last 3-6 months. Identity ProofEither a PAN card, Aadhaar card, or passport. Business ProofGST registration and document filing, Certificate of Practice, Shop Act license, Memorandum of Agreement and Articles of Agreement, Partnership Deed. Address ProofEither a voter’s card, Aadhaar card, driving license, electricity bill, or passport. Bank Account StatementSelf-employed people must show a bank account statement from the last 6 months or income tax returns. Process Of Application Step 1: Go to the bank or the lender’s website. Step 2: Click on the link ‘Flexible Personal Loan’. Most likely, this option will be under the ‘Products’ tab on your lender’s website. Step 3: Click on the ‘Apply Now’ button. Step 4: Fill out the application form with all the necessary details. Step 5: Upload all of the required documents. To get a flexible loan, you can also go to the nearest branch of your bank or lender and submit an offline application. Difference Between a Flexible Loan And a Regular Personal Loan A flexible loan might be a smarter choice over a traditional personal loan because of the following reasons: Financial Planning In conventional loans, the loan amount is paid out all at once. You can spend as much money as you wish to right away. On the other hand, with a flexible loan, you cannot borrow more than a certain amount. It guarantees that you borrow only the amount you need, hence not spending away a sum greater than your need. This helps you practice financial discipline. Flexible Repayment A personal loan has a set length of time, with a fixed number and amount of EMIs. For a flexible loan, the payout is more flexible. You only pay back the amount that you borrow. For some installations, you can also choose to only pay the interest, not the principal. You can lower the interest by making prepayments. In the end, flexible loans save money. Feasible Interest Rates Personal loans do have some benefits, but flexible personal loans are easier to use. A lot of lenders offer flexible loans at reasonable interest rates. With a personal loan, there is a fixed interest, and it is added to the whole loan amount. With a flexible loan, you only pay interest on the borrowed sum, not the whole approved amount. Unique Offers Your lender will make your flexible loan offer unique by considering your credit score, salary, and other criteria. The interest rates are reasonably low for people with good credit and high or steady salaries. [B-02] Conclusion When money is tight, flexible loans can come to your rescue. With the benefits and easy terms of such loans, you can plan your finances well and keep yourself debt-free. Make sure you look at the interest rates charged by different lenders and compare them. If you want to get a loan approved quickly without much hassle and paperwork, visit Piramal Finance. It is a great financing option for everyone. Read their articles on other such financial topics and check out their products and services.
08-11-2023
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Home Loan

Want to Take a Joint Home Loan with a spouse?

Buying a home is a significant milestone. One should be aware of many things. Many banks and NBFCs provide home loans. The interest rates are low and attractive. A partner can join in a home loan. You should pick the right home loan wisely. The right choice can save money and reduce debt. Everything you need to know about a joint home loan. A joint home loan is a collaborative loan designed for purchasing a house together. Both people share the payment responsibilities equally. The co-borrower can be a spouse, a family member, a sibling, or any close relative. Lenders tend to approve joint home loans more frequently than solo ones. You can take a joint loan in joint names. These joint loans will provide a higher amount of money. Also, customers should go for a joint loan if they want to save taxes. The tax savings are much higher in the case of joint loans than in the case of an individual name loan. Benefits of a joint home loan Applying for a joint home loan with a close relative, such as a mother, sister, daughter, or spouse, has great benefits. The registration fee for these joint loans tends to be quite affordable. In some States, property registration fees go down when two people own the property together. People find it easier to use legal procedures, and they have made them simpler. Succession and other issues happen less often when a husband and wife apply for a home loan together. Banks and NBFCs offer loans that combine the income of both parties when applying for a joint home loan. The loan amount sanctioned by the bank or NBFC will be much higher in standard loans than in individual cases. Home loan amounts tend to be larger since the combined repayment ability of both parties is greater. With multiple individuals available to repay the loan, the loan amount rises according to the co-applicant's earnings. Additionally, the reputation of the organization where they work significantly influences the loan terms. The EMI repayment in the case of a joint home loan is also more manageable. Both parties must use the joint account to make it. This keeps track of the repayment and equal contribution made for the loan. If the applicant fails to make the payment, there's no need for concern. The co-applicant shares equal responsibility for covering the EMI. If one applicant cannot pay, the price goes to the other. Then, the other person must pay the rest of the monthly installments. Why Take A Joint Home Loan With Spouse? A home loan is a major financial commitment. It is one of the biggest loans one may take in one's lifetime. With new developments on the rise, housing costs have also surged. Real estate prices are at an all-time high. The better the city, the higher the price of homes. That's why a joint home loan with a spouse is a smart way to arrange funds for buying a house. Whether it's a joint home loan with a wife or a joint home loan with a husband, it can offer many benefits. A regular home loan provides the required amount to purchase a house. These loans offer a substantial sum. When both partners take the repayment jointly, they can share it. This helps reduce the burden on a single individual. Sometimes, a regular loan may not be sufficient. The lender may reject the loan if the applicant's income is too low. In these cases, choosing a joint home loan with your wife or husband is the best way to get approval and buy a home. Conditions and eligibility criteria for a joint home loan A joint home loan can only be taken with close relatives. A friend or a business partner will not work. Both parties should have close relationships like siblings, spouses, children, or parents. A joint home loan cannot be taken with a random person. The co-applicant needs to be an earner, too. The loan amount and the tax savings will be higher. The joint applicant can be a salaried, self-employed businessman, or any other professional worker. A maximum of 6 people can jointly apply for a joint home loan, and a minimum of 2. You can access tax incentives only once you finish the construction. If the builders still construct the property, the tax benefits will commence after occupancy. Even if only one party is at fault, a disagreement or unsuccessful loan repayment will affect both parties. The combined mortgage can be settled using the shared account of both parties. Alternatively, the EMI can be split proportionally between them for repayment. [B-02] Conclusion To sum up, a joint home loan is the easiest way to get a lot of money if you want to buy a home. The interest will be less, and the repayment process will be accessible for a joint loan. It will give higher eligibility for the finance scheme and provide tax breaks.
08-11-2023
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Know More

Best Car Insurance Companies in India 2022

Car insurance helps you in reducing financial bonds. They may arise as a result of a dire event. Car insurance companies provide a policy that protects you and your vehicle. They protect your vehicles against various damages and risks. The risks may result in financial losses. A car insurance policy is also a contract. An insurance firm and the car owner issue it. The car insurance company protects against various damages or financial losses. [B-01] Why Is It Important to Select the Best Insurance Companies? You want nothing but the best for yourself and your family. The same is true when it comes to picking an insurance company. You can find out what is best for your family by doing ample research. When you compare various insurers, you can make sound decisions. You get an in-depth view of many aspects of the company. To make sure they meet your needs. The research will pay off. You will know you and your loved ones are safe and secure, allowing you to relax. Best Car Insurance Companies in India 2022 National Insurance Company Ltd. (NIC): It is the best vehicle insurance company in India. Kolkata is the headquarters of this insurance company. The state owns a general insurance company. This firm was set up in 1972. It is now one of the most reliable and trusted providers of car insurance. This company serves the South Asian community. It is at the top of the list, you may choose this company for your auto insurance. ICICI Lombard Motor Insurance: This is a well-known company founded in 2001. It is one of India’s most well-known and renowned vehicle insurance firms. This car insurance company works with ICICI Bank, India’s second-largest bank. The insurance claim process is simple and quick. A variety of add-on scopes are there on its auto insurance policy. You can also register or renew your coverage online. Bajaj Allianz General Insurance: Bajaj Allianz General Insurance Company is fourth on the top auto insurance companies list. This was founded in 2001. It has its headquarters in Pune, India. You can select from many reputable and good auto insurance policies. It is also a reputable firm from which you can get a lot of data. The policyholder may receive a high level of service. The vehicle should be checked at the given workshops. Reliance General Insurance Company (H3) : It gives its customers the best insurance service. This car insurance company offers low-cost auto insurance to drivers. This firm also insures motorcycles. You can buy insurance by using a variety of payment methods. If your car is on the road, you may be able to collect your money. There are no added fees charged to the insurance holder. United India car insurance: The United India Insurance Company was created on February 18, 1938. On the Asian continent, this is one of the most well-known insurance firms. Download the app to ensure that your insurance policy is resumed on time. It operates in several Indian states and offers 24-hour customer service. There are options for quick insurance scope and cashless claims. Oriental Insurance Company Limited (OIC): Oriental Insurance Company Ltd., headquartered in Delhi. It is India’s best public-sector insurance company. This is a well-known vehicle insurance firm in India. You can renew or buy new plans from anywhere. You can do it at any time with the help of a customer service representative. You will always receive great insurance claim treatment. It has the best track record in this field. Kotak Mahindra Car Insurance: It is apportioned by Kotak General Insurance, which is part of the Kotak Mahindra Group. It is owned by Kotak Mahindra Bank, one of India’s most popular private-sector banks. IFFCO Tokyo General Insurance Co. Ltd.: It is a Japanese general insurance company. The car insurance company offers a one-of-a-kind Value Auto Coverage Insurance policy. It includes a variety of extra benefits. As a result, the policy acts as an add-on to your car insurance policy at very low premiums. [B-02] Conclusion Along with your new car, remember to look for the best car insurance provider. People who are not concerned about auto insurance are no longer among us. Everyone now looks for auto insurance after buying a car. People who don’t care or choose the wrong vehicle insurance provider face a slew of issues. Car insurance guards your vehicle at all times. If you are in an accident or lose your car, you can file a claim with your car insurance company for repayment. It is always a welcome relief.
08-11-2023
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Personal Loan

Reasons to Opt for a Personal Loan to Finance your Big-Ticket

Every second person nowadays has one or more basic financial needs. These needs range from medical to educational. Unfortunately, not everyone is financially strong enough to meet these needs. Here’s where an unsecured personal loan comes to the rescue. Most people in India belong to the lower and middle classes. They cannot afford to send their children to expensive colleges or universities because of their financial situation. Such people are unlikely to be able to keep any collateral or mortgage their jewellery or homes. Unsecured loans for personal use help them in such a hustle. [B-01] All about personal loans A personal loan is simply an unsecured loan to meet big or small financial needs. Such loans are unsecured and accessible. It means that no collateral is required to obtain such loans. They are easy to obtain. But their repayment can be quite challenging. This is usually because a personal loan or time loan comes with a higher interest rate too. Most people are compelled to use their entire savings to repay them. However, every loan facility has huge benefits, too, just like this one. Let’s quickly take a look at them. Why should one consider opting for personal loans? Education: Opting for a personal loan can help finance higher education. Most students in India aspire to study abroad. But they do not have the resources to fulfil this dream. Again, obtaining other loans may require a lot of paperwork. Some families can’t even afford to mortgage anything. That’s where a time loan, direct loan, or personal loan comes in handy. It is the best way to finance higher education for students. 2. Medical crisis: Medical emergencies do not ask for permission. People may encounter accidents or other health-related issues. Usually, hospital bills are very high. Everybody cannot bear treatment charges, medicine bills, ventilator and ICU charges, and so on. But no one can ignore them too. A personal loan is the ultimate solution to this problem. It takes no time to process. It is also the best way to save someone’s life. 3. Takes lesser time to sanction: Loans usually get sanctioned within 1 business day to 1 week. Also, they require a minimum number of documents to be submitted. A personal loan is less complicated and more convenient to obtain than other types of loans. Nobody wants to wait for days and months to get his loan approved! This is what makes such loans so beneficial. 4. Simple eligibility criteria: People aged 21-67 can easily avail of these loans. One does need to be an Indian resident to avail of them. However, one must have a minimum CIBIL score of 750 to avail of a personal loan. One should also work for an MNC (Transnational Corporation) or a private or public company. Possessing a good credit reputation would be ideal. 5. Purchasing necessities such as cell phones: Most people buy appliances like mobile phones, fridges, and desktops on EMI or in instalments. Most families prefer to go for expensive products despite having less money. Where would the money come from? The answer is personal loans. One can avail loans to buy the necessities of life too. The repayment would be done in instalments. This becomes an additional advantage. 6. Can be managed under the debt-consolidation scheme: Debt consolidation is the process of conglomerating or merging several loans to give birth to a new loan. The interest rate is fixed monthly. It generally gets lower on this loan. This saves the borrower from paying the EMIs on multiple debts. This process is generally employed when the loan’s interest rate has increased. 7. Wedding financing: Personal loans help manage big and small weddings. It is often seen that fathers spend a lot on the studies of their children and other household chores. This comes as a financial burden because marriage is also an essential concern in India. Again, personal loans come as saviours. This loan covers everything from the wedding to the reception. Quick approval is also a plus. 8. Enjoying a vacation: Unsecured loans can be obtained to enjoy dream holidays too. From the Maldives to Mauritius, these loans have a solution for everything. What is a personal loan not for? Investment-related activities are a big no-no Buying properties like land. In such a case, one can opt for construction loans For establishing businesses or startups Paying tuition fees Managing basic livelihood Issues with personal loans Personal loans have some issues, too, such as Higher interest rates: Most unsecured loans are disbursed at very high speeds. These also increase if the tenure is long. This can be harmful to the credit scores of the borrowers if they are unable to repay. Damage to the credit image: One may face serious sabotage to their credit image if they do not repay their loans quickly. Thus, it is essential to apply at own risk. A penalty by the lender: Lenders may impose serious penalties or give threats if the terms are not met. Unnecessary debt: Unsecured loans add to one’s debts. These can lead to stress and anxiety. If the amount is high, there is a chance one needs to pay off the debts with all their savings. [B-02] Conclusion One should try personal loans if one belongs to a lower-income family. It has many benefits. The most important is its quick disbursal. However, it has some potential risks, too. One should keep these in mind before applying. Also, visit Piramal Finance to read more blogs like this or to avail of financial help.
08-11-2023
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Banking

What Type of Bank Account is Good for Your Money?

You are introduced to the banking world when you want to start saving. You tend to opt for the safest choice to keep your hard-earned money. The Indian banking system is one of the finely operated machines. This article will provide insight into different types of bank accounts that serve different needs. Put your money wisely in your account. Wise decisions that are made once can give long-term benefits. In this way, you can get the most out of your bank. Smart decisions can reap a good Interest rate and minimum charges. You can also track your money easily. [B-01] Types of Bank Accounts and their Pros and Cons There are mainly 5 types of bank accounts. Out of these, you can choose the best one that suits your needs. Along with the types of bank accounts, pros and cons are given. Read on to find out more about the bank account. Types of Bank Accounts to Keep Your Money Savings Accounts Checking Accounts Money market Accounts Certificates of deposit (CDs) Retirement Accounts Savings Accounts Customers can save up for large purchases or emergencies with this sort of savings account. Your savings will gradually increase as time passes. This will be due to the interest you’ll earn on them. The first type of bank account most people get is a savings account. A child can learn to save by opening an account with a parent. A savings account is a great way to save money aside from your regular checking account so that you can use it for long-term financial objectives or in case of an unexpected expense. ProsConsUseful as either a first bank account for a child or teen or as savings account for an adult who needs a safe location to keep the money they might otherwise spend frivolously.A typical savings account’s interest rate is lower than that of money market accounts and certificates of deposits. Checking Accounts Everyday transactions are made with a checking account. Features such as a debit card for making purchases and withdrawals from ATMs, and the ability to write checks, are the main draws of this type of bank account. You can do things like pay bills and deposit money into the account. Online bill pays using checking accounts is a convenient option offered by most banks today. This type of bank account is vital for controlling your monthly cash flow. It is also the greatest place to keep money for short-term use. ProsCons Anyone who needs a location to deposit a paycheck or cash or make payments, anyone who keeps a reasonably small balance, and anyone who likes the ease of using a debit card.Checking accounts can be costly and inconvenient due to their lack of interest and the costs and limitations associated with them, such as monthly maintenance fees and minimum balance requirements. Money Market Accounts An individual can have the best of both worlds with a money market account. It gives both savings and a checking facility. Useful for both short- and long-term goals, they allow for a limited number of check withdrawals per month and earn interest at a rate that is higher than that of savings or checking accounts. You can earn more interest and have the convenience of writing checks with one of these bank accounts, which is ideal if you prefer to have a large sum in your checking account. Pros ConsThis account is for those who maintain sizable sums in their accounts. The customer seeking greater interest rates will benefit.The money market requires you to maintain a higher balance as compared to other bank account types.The withdrawal limit is set to six per month. Certificates of Deposit (CDs) For a specified period, a certificate of deposit (CD) acts as an interest-bearing savings account. The tenure can be 3- 5 years. It offers higher interest rates than the other options. You’ll need to leave your money in the CD until its maturity date or face a penalty. If you are saving for a specific purpose, then this is the best type of bank account. ProsConsFunds that don’t require immediate spending. Although longer-term CDs generate greater interest, shorter-term CDs are still an option.There is a downside in that there is a penalty to withdraw money before the term is over. A loss of earnings or even the initial deposit could result from this penalty. Savings Account for Old Age These are, as the name implies, savings vehicles for later in life. Individual retirement accounts (IRAs) are offered by major banks. Some even offer 401(k)s and other corporate old-age plans for smaller firms. Investing your retirement savings in the stock market will give you higher returns. 401(k) plans and individual retirement accounts (IRAs) are the finest types of bank accounts for saving for retirement. ProsConsThose who wish to put money aside for the future will benefit. Having a retirement account can make saving money easier (by reducing your tax bill) and may increase your savings in the long run.There are always strings associated with tax breaks. Learn the terms of your account by reading the agreement and talking to your banker (including rules for eligibility) [B-02] Conclusion You must always remember that you are not limited to a single type of bank account while selecting. Customers may open any type of bank account that suits their needs. Bank/NBFCs have updated their systems so that you can log in to your accounts from anywhere at any time. Nowadays, you don’t need to visit a bank to make deposits or take out money. All thanks to facilities like mobile and net banking, you can do banking online. To get further details on banking and finance, visit the Piramal Finance website .
08-11-2023
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Personal Loan

What Is A Flexi-Personal Loan And How Does It Work? 

Are you facing a financial crunch? Looking for an instant loan? Flexi-personal loans might be the solution. Flexi-personal loans, also known as flexible loans are meant for those with urgent money needs. Compared to a personal loan, these loans usually have lower rates of interest. Flexible loans also don’t require a very high credit score. Most lending institutions don’t offer flexible loans due to the high risk involved. However, there are a few lenders that offer them as an added service. Read on to learn more about how Flexi-personal loans work. [B-01] What Is A Flexi-Personal Loan? A Flexi-personal loan or a flexible loan is a type of loan that can be obtained at a short notice. Today, many lenders provide users with pre-approved cash limits based on their credit scores. You can withdraw cash at any time within the prescribed limit. Financial emergencies usually come without warning. In such cases, money is required urgently. Hence, there is little time to fill out application forms, submit paperwork, and talk to lenders. In such cases, a flexible loan can be of great assistance. Today, most lenders provide pre-approved cash limits to their customers. Based on your past transactions, banks evaluate your risk and offer you a fixed cash limit. You can withdraw the cash anytime as per your needs. How Does A Flexi-Personal Loan Work? With a flexible loan, you can borrow money on a month-to-month basis. Unlike traditional loans, you can repay a Flexi-personal loan anytime before maturity. There is no penalty for early repayment. However, there are certain things to keep in mind while applying for a flexible loan. You must be financially stable and have a good credit score. The amount of Flexi-personal loan you can avail of largely depends on your credit score. The interest rate on a flexible loan depends on two factors, the amount you borrow and the loan duration. The best part about a Flexi-personal loan is that the interest is charged only on the amount you use. Therefore, you can withdraw the loan in various trenches and avoid paying interest on the entire amount. Advantages Of A Flexible Loan Here are the benefits of a flexible loan: Flexible Terms: You can get a Flexi-personal loan until the loan’s maturity date, making it ideal for short-term funding. You can also get a lower rate of interest with a Flexi-personal loan. Does Not Require a High Credit Score: Compared to traditional loans, a Flexi-personal loan does not require a very high credit score. The lender will offer flexible loans based on your past financial history and the ability to repay. Easier to Obtain: Less paperwork is required to get a Flexi-personal loan than a traditional loan. Moreover, such Flexi-personal loans can be obtained over the phone, especially if the amount involved is small. Faster Funding: After applying, you can get money for a Flexi-personal loan within a day or two. Some lenders may also approve your loan immediately after the KYC is complete. It is very useful if you need money at short notice. However, the application processing time depends on your lender. No Asset Valuation: A Flexi-personal loan doesn’t require you to pledge your assets or value them as collateral. It is ideal for those who want to borrow money without showing their assets. No Income Verification: You don’t need to provide your income details or salary information when applying for a Flexi-personal loan. It is ideal for those in a financial crunch and who need quick cash. Things To Keep In Mind While Applying For A Flexible Loan A Flexi-personal loan is perfect for those who need short-term cash to tide over an emergency. However, you must keep a few things in mind before applying for a Flexi-personal loan: Be Financially Stable: You need to be financially stable and have a high credit score to get a Flexi-personal loan. Only Small Amounts: When it comes to a Flexi-personal loan, you can avail of only a small amount. This is because it requires minimal documentation. Also, the application process is short and quick. The lender does not wish to increase its risk. As a result, only small amounts are given as Flexi-personal loans. For large needs, one must consider traditional personal loans. Service Charges Involved: Borrowers may need to pay high service charges when availing of Flexi-personal loans. It is charged as a one-time fee by the lender or as a monthly amount during repayment. Documents Needed For A Flexi-Personal Loan Here are the documents required for a Flexi-personal loan: ID Card: Aadhaar/Driving license/Voter ID or any other government-issued photo identity card. PAN: The PAN card is your registration number with the income tax authorities. Additional Documents: In some cases, lenders may need additional documents during the KYC process. If you’re seeking a Flexi-personal loan online, you may also need to verify your phone number through a one-time password to confirm your identity. [B-02] Final Thoughts A Flexi-personal loan, as the name suggests, has flexible terms and conditions. It is ideal for those who need cash urgently. Unlike other loans, Flexible loans require minimal documentation and are processed quickly. To read more about Flexi-loans and related topics, head to the Piramal Finance website.
08-11-2023
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COVID-19

Myth vs Facts – RBI’s Covid-19 Moratorium

At the time of the Covid-19 virus, many people’s jobs were at risk. Many even lost their jobs. It’s been 2 years, but some of us have still not recovered from the loss. This loss can be in the form of money or life. During the peak time of Covid-19, paying off the monthly loans for cars and houses was difficult. And also the monthly instalments for other items. The Moratorium relieved many people as they had time to pay off their loans. The source of income for many people was affected at that time. [B-01] Concerning the credit facilities, the customers were given two options for the Moratorium facility- Opt-in The customers whose income was affected during the virus could choose this option. It could allow them to make delayed payments within the Moratorium period defined by RBI. Opt-out The customers whose income was unaffected even at the time of the virus could choose this option. These customers were requested to make all their payments on time. There was a myth that opting for a Moratorium was a good choice. People thought that delaying payments was a better option in those times. But indirectly, delaying payments was not helpful. It was increasing your interest as well as the principal amount. This, in turn, would lead to an increase in interest. So, if your income was not affected at the time of the virus, then the better option was to pay off all your loans and credits on time. This could save you from additional interest. Opting for a Moratorium was a choice for people The option of Moratorium was a choice for people. All the commercial, primary, and non-banking financial institutions were included. They had to allow the customers to take benefit from this facility. The customers could also increase or decrease the credit card limit as per their wish. The period of the Moratorium would also not affect the credit score if you pay off all the debts on time. Many people understood the benefits and correctly used that time. ■ Another myth that revolved in people’s minds was that a Moratorium is a kind of a break. They thought that they could delay payments as per their choice. But the fact was that delaying payments would lead to additional interest. Many people understood this at that time. ■ The Moratorium was offered for 3 months. It was not there to save you from the interest. On the other hand, it increased the loan amount. This happened because the amount was getting added to the principal amount. This amount was to be paid in the future. Hence, along with delaying payments, you were increasing the loan amount. However, if you did not opt for a Moratorium, you could maintain the perfect cash flow. But we cannot ignore the fact that it was needed for some people. The people whose income was affected opted in. So many people lost their jobs. They did not have any other source of income. This made it impossible for them to pay off loans during the lockdown. So it even proved to be helpful for some people. RBI had presented well-organized planning for this purpose. A proper resolution framework was developed. It divided the customers into two groups. This helped in further organization. First was the individual who has taken loans. The second group had small businesses. Easy payment options were given to them. Proper measures were taken to benefit everybody. The period and all the other things were decided based on the income sources. The maximum period for the Moratorium was decided to be 2 years. This period was from the date of putting the resolution into effect. Everything was planned to ease the difficulties of people. The financial institutes were advised to keep a proper record of everything. This would help them to change the given period. This was done to ease the difficulties of the customers. However, there were some conditions to increase or decrease the period of the Moratorium. This was according to the framework proposed by RBI. All the instructions are mentioned in it. Also, the financial institutes were allowed to take decisions. This allowed them to work according to their own rules and regulations. This was done to satisfy the financial institutes with their own rules. Hence, the framework was really helpful for everyone. The financial institutes had to prepare a report every 3 months. This report was required to include the financial statements of the borrowers. It also had to describe the period for each payment. This could make everything easier and clearer. The best thing was that the financial institutes had to present it yearly. By this, they could have enough time to look into matters. The credit score was to be structured again. This was to be done under the new rules at the time of Covid-19. This was also to be done according to the framework. All the accounts were also to be made again. This would provide some relief to the customers as well as to the financial institutes. You still needed to pay the loans even if you opt for more time under the Moratorium. It provided some comfort related to time, but the amount was still to be paid. [B-02] Conclusion In the end, the period under Moratorium was helpful. But the amount for interest was added to the principal loan amount. So many people who lost their job took benefit from it. After all, it was there to ease the problems of people. Also, a framework was prepared for the financial institutes. This made everything more clear to everyone. The people who took a Moratorium to save themselves from paying instalments for a few months suffered a lot. On the other hand, the people who planned everything benefited from it. Visit Piramal Finance to know more.
08-11-2023
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