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Personal Loan

How Long It Will Take To Process Personal Loan In India

A multipurpose loan like a Personal Loan is very useful when you have legitimate financial needs, such as paying for education, healthcare, a wedding, funding a vacation, consolidating debt, etc. In comparison to a home loan or any other type of loan, the application process for a personal loan is much simpler because there is no need for collateral and there is little paperwork to be submitted. Personal loans are also called instant personal loans in India because they are instantly processed and received by the borrower. Whereas the period can vary depending from person to person. Keeping in mind the factors affecting the amount and duration of it getting approved. We have discussed further, the time it takes and the factors affecting personal loans in India. [B-01] What is a personal loan? A personal loan, which is sometimes referred to as an instant loan or an instant personal loan, is a loan you can get from a financial platform or financial institution, such as a bank, at a set rate of interest to cover personal financial demands like a wedding, education, or any other emergency. Because borrowers are not required to offer any security or collateral in exchange for the money borrowed, personal loans are frequently referred to as unsecured loans. The borrower consents to pay a fixed rate of interest over a set period through EMIs. Steps involved in the application for a personal loan Step 1: Establish what you need. Decide why you require a personal loan and how much you require. Step 2 is to confirm loan eligibility. Step 3: Determine the monthly payments. Step 4: Go up to the bank. Step 5. Submit your documents. How long does it take to process a personal loan in India? Lender factors may affect whether a personal loan is approved. It’s now incredibly simple to apply for a loan thanks to digitization and the passing of the years. You can learn your eligibility in a matter of minutes, and the entire application procedure can be finished in under an hour. It may take 1 to 7 days after your application and supporting documents are received for your loan to be approved, and another few days for the funds to be disbursed. This period could change based on the type of lender you choose. Banks may take a few days to a few weeks to process your loan, whereas online direct lenders can do so much faster. Factors affecting the time of the personal loan in India Your request is evaluated based on the evidence of your income, age, credit score, and other factors; if your credit score is 700 or higher, you may be eligible for a loan sooner. When lenders request more details, the loan approval process occasionally takes longer. Verification takes a lot of time as well. Due to the absence of any form of collateral, a thorough verification procedure is necessary to determine whether the applicant is credit-worthy or not. As part of the documentation, you must submit information about your income, bank accounts, employment history, and address. If any of these documents don’t meet the requirements for approval, your loan may be delayed. Following are the few factors that affect the time and amount of personal loans in India: Base Credit score: Candidates with scores of 750 or above are thought to be more financially responsible and hence less likely to fail. As a result, banks and NBFCs favour providing personal loans to these individuals. For candidates for personal loans with better credit ratings, many lenders also charge reduced interest rates. However, some lenders also provide personal loans at higher interest rates to applicants with poorer credit ratings. As a result, candidates should regularly check their credit ratings and take the required actions to keep them as near 900 as feasible. Income: When you have a high income, it indicates that you are most likely to repay in the eyes of the bank/ financial institution. When it comes to salaried professionals the minimum salary requirement is between 15,000 to 25000 by lenders. When you are self-employed your annual income should be more than 2 lakh per annum to acquire a loan. Age: A personal loan is typically available to borrowers between the ages of 18 and 65 through most banks and NBFCs. According to retirees’ pension income, some public sector banks also provide personal loans to them. Employer Reputation: Creditors give personal loans to salaried applicants at cheaper interest rates because of their greater income stability as compared in comparison with self-employed candidates. The other factor that is commonly taken into consideration is the Repayment capacity of the borrower. Applicants for personal loans are often approved by banks and NBFCs if their EMI/NMI ratio is between 50% and 55%, however, this might vary among lenders Final words Taking on a personal loan can be very helpful in times of emergency. Though it is pretty easy and simple to apply for a personal loan in India, having all the information in hand before applying for help. Make sure you visit Piramal Finance to know more and get help with personal loans, business loans, housing loans, and other financial products for you with a very simple process. Visit our website today for a simple and seamless instant personal loan process. [B-02] FAQs How does the personal loan procedure work? All you need to apply for a personal loan in India is proof of identification, proof of address, and proof of income. You can select the duration based on your needs and the flexible payment terms. Is getting a personal loan a wise idea? If you have a reliable source of income and a high credit score, applying for a personal loan in India is a fantastic choice because you will be given a loan with a reasonable interest rate.

08-11-2023

Personal Loan

Benefits of applying for a personal loan this Christmas festival at Piramal Finance

Christmas is the time for celebrations with your loved ones. Money should not be the reason to deny joy to yourself, your friends, and your family. Instead, festivals are the best opportunity to get more for less. There are discounts everywhere. Yet, the purchases may be over your budget. If so, consider applying for a personal loan for Christmas at Piramal Finance. Has it been a long time since your last vacation? Is your home in need of renovation? Is the way to make this Christmas special unaffordable? Your dreams are possible. You can do what you desire this festive season. [B-01] What is a personal loan? A personal loan is a form of borrowing. It is easy to get and friendly to your needs. It is unsecured. The need for documentation is less. The processing is fast. There are various benefits to getting one. Let’s assess why you might want a personal loan for Christmas. The process is not difficult. The loans are not expensive. The system of repayment is flexible. Further, there is no need to furnish security, only documentation. Even more, you can begin your financial planning with a personal loan for Christmas. You can also build your necessary credit score. Getting a personal loan for Christmas is easy The documentation required is not excessive. So it would not take much time out of your day to get the required proof ready. All you need is your PAN Card along with proof of your address and income. You can also club your income with your spouse for the eligibility of getting larger loans. Your co-applicant needs the same documentation as well. You can get a personal loan for Christmas. Either alone or together with your spouse. It would be easy to do so either way. Personal loans are affordable There are no pre-payments. There is no foreclosure charge either. The interest rates start at an annual 12.99%. Other expenses in the process are as per norms under the law of India. Thus, applying for a personal loan for Christmas can be easy on your wallet in the long term. You can make this festival special in ways it has never been before. A personal loan does not mean getting less Personal loans don’t have to always be small amounts. Even if they can be. There is a comfortable range of finance you can access. It begins at INR 1,00,000 (Rupees One Lakh) and can go up to INR 1,000,000 (Rupees Ten Lakh). A personal loan for Christmas can ensure you can cover anything from shopping expenses to trips abroad. You do not need to disclose what the loan is for Festivals are expensive in unexpected ways. There is no need to justify. We understand that you may have many smaller expenses. Or you may have fewer larger expenses. Either way, there is freedom for you to do what you want to do. A personal loan for Christmas has no strings attached to your happiness. The process of applying is speedy As a result of the ease of this process, sanctioning of loans is quite fast. After the sanction, there is an immediate disbursal of the amount. This way, you can get a personal loan for Christmas with short notice for those last-minute expenses. You could get the amount beforehand to prepare yourself for the extra expenses. There is no hurry to pay the loan back Getting a personal loan for Christmas does not mean paying it back during the festive season. Similar to the range of amounts, there is a range for the repayment as well. It extends from twelve (12) months to sixty (60) months. The repayment process will not unnecessarily burden you. No need to set your property as collateral Personal loans do not need you to submit objects of value as security. You can rest assured that you won’t have to let go of anything you own for this money. Ensure that you can keep paying the loan back at your own pace. Unlike most other forms of debt, a personal loan for Christmas is different. You can relax without any fear hanging over your head. It would help with building your credit history These days credit is inescapable. Often, people such as you may be off guard. If you can pay the loan off in the time prescribed, it makes the process easier for your future loans. This could be the beginning of your journey with credit. Why not start with a celebration? A personal loan for Christmas is perfect to begin this journey. You should begin your financial planning today Finance seems hard. It is not though. Yet, the process of building up your financial system is long-term. You can begin with a personal loan for Christmas. With this, you will get your well-deserved celebration. It will also help you set up your future. The ease of a personal loan is unlike any other. It could be a stepping stone on your journey to understand finances. The repayment process is out of your own needs. You have the flexibility to take your time and understand what is going on. All this while building up a better understanding of the credit system. [B-02] Final thoughts A personal loan for Christmas may seem difficult. We have explained why that is far from the truth. Not only are the loans easy to get, but also not expensive. The process does not need you to go out of your way. Instead, you can feel comfortable with the process and build your credit score in the process. Your loved ones will be happy. I f you need any more help with your financial decisions, we are here only to help. We have other posts describing financial situations as well. You can seek more information on or apply for a personal loan for Christmas.

08-11-2023

Do FDs Give Compound Interest?

Fixed deposits are still popular because they are the safest investment option and provide a monthly flow of funds into your bank account. Below, we will explain why and how FDs are still a popular investment vehicle, as well as the advantages of making FD investments. [B-01] What is a fixed deposit? A fixed deposit is a straightforward investment that just needs a single deposit. You may put money in the bank’s core account for a predetermined amount of time (tenure). During this time, interest will accrue on the deposit. You will receive your money back along with interest. How can we receive interest on our fixed deposit each month? A fixed deposit is a sum of money that you put in a bank for a certain period in exchange for a predetermined interest rate. The method of interest payment is entirely up to you. There are two types of interest-receiving mechanisms. The cumulative option, in which interest is accumulated quarterly and paid upon FD or auto-renewed maturity, is one alternative. A non-cumulative option that pays interest on a monthly, quarterly, or maturity basis is another choice. Why are monthly interest-bearing fixed deposits so popular? Investors seeking steady monthly income in the form of FD interest have done well with FDs that pay interest monthly. It is popular among retirees and those who invest in it with the expectation of earning a constant pension. Even though the cumulative options have a slightly higher rate of interest, the main difference between monthly interest FDs and other FDs is that the investor may continue to get some interest on the FD corpus they have deposited every month. This gives them access to their money. With the help of an FD interest calculator, you can better understand the interest rates on both monthly interest FDs and other FDs so you can make an informed decision. Benefits of Monthly Interest and Fixed Deposits 1. Available for extended periods Many years are needed to get interest income; hence, some banks provide monthly interest FDs for terms of up to 10 years. 2. Credit scores With a monthly interest payment entering your account, you can have doubts regarding the FD’s quality. But for you to make an informed choice, these FDs have ratings from reputable credit rating companies. 3. Untimely withdrawals If you fulfil the conditions, you may be able to prematurely withdraw some of these deposits. You must remember that breaking your FD early might result in a fine. facility for overdrafts Does FD give compound interest? Yes. The interest that FD offers compounds. Simple interest and compound interest are the two formulas used to determine the interest on a fixed deposit. Depending on the deposit size and duration, banks may employ either option. What makes the two different from one another? Simple interest just refers to the interest on the principal sum. In the case of compound interest, interest is accrued on both the principle and the interest. When a fixed deposit matures, the principal and interest are often received together. Interest on FD is typically compounded. But the interest doesn’t get added to itself if the account holder chooses to get it every month or quarter and have it sent to their savings account. What exactly is an FD calculator? Using a fixed deposit calculator, an investor can get an idea of how much money they should expect to get back at the end of a certain period for a certain deposit amount at the right rate of interest. One can use an FD calculator to figure out how much interest one would get on a fixed deposit. The maturity amount is computed using the deposit amount, the FD interest rate, and the FD tenure. After the FD term, one receives the maturity amount. It is made up of all of the interest on the principle (deposit amount). The benefits of using the FD calculator Buying an FD is like making any other financial decision: you need to think about your budget and how it fits with your financial goals. The main goals of fixed deposits are assured profits and risk minimization. There is still a sizable risk if you invest inside the market (like in equity mutual funds). To a certain extent, your FD investments can assist in absorbing losses. You should be aware of how much to deposit into your FD account for this. And the Paisabazaar.com FD Calculator makes it simple to estimate this. Calculators for fixed deposits may also be used to compare the many FD plans that banks and other financial institutions have to offer. The optimal investment programme may be understood by looking at the tenure desired. Final words Keep in mind that there are different interest rates for different FD tenures when investing. It does not guarantee that you will receive the greatest interest rate if you select the longest tenure option. Using the compound interest calculation, you can look at the interest rate table, which is usually on the bank’s website, to find out which term will give you the highest interest rate. An extremely safe and profitable investment is an FD. Making your money work for you by making wise investments will pay you. Piramal Finance (www.piramalfinance.com) is an Indian financial services company that is making its foray into retail lending, which includes personal loans, business loans, housing loans, and other consumer-focused finance products. [B-02] FAQs FD interest compounds, right? The interest on a cumulative fixed deposit is accumulated either every quarter or every year, and it is accumulated until maturity. After the term, the principal amount and the interest are paid together. Each year’s interest is added to the principal amount. SBI offers compound interest on FDs, right? The FD has a ten-year contract. The appropriate interest rate is 5.4% annually as well. Additionally, the interest on the fixed deposit is compounded every three months. The FD formula may be used to determine the interest rate and maturity value for SBI FDs.

08-11-2023

Personal Loan

Things You Need To Know About Personal Loan Calculator

It is not an easy task to plan and manage your expenses. While keeping track of your daily income and expenses is easy, it takes a lot more effort to manage liabilities. A debt element requires careful planning in your finances. Each month, you need to repay a certain section of the debt. The headache of calculating your liability every month can be overwhelming. An easy way to manage your monthly expenses and liabilities is to use a personal loan calculator. Nowadays, you can find several calculators for personal loans online. To make use of one such tool, you will need to provide some basic details. Some of them are as follows: The amount of money that you want to borrow The time for which you need the loan The rate of interest that the lender will charge from you After filling in these details, the calculator will display various figures. These include the total interest paid, the total amount paid and the monthly repayment amount. [B-01] For this reason, using a personal loan calculator may seem to be the easiest solution. It will eliminate the need to perform extensive financial planning. Let us take a look at the top 10 things that you need to know about such calculators. What Do You Need To Know About Personal Loan Calculators? Did you know that a personal loan calculator is an extremely popular tool that helps you in your loan journey? Here are some of the most relevant facts about these tools which make them very important. Personal loan calculators are among the most accurate tools. They help you calculate the amount of EMI that you need to pay every month. By giving input on some values, you can estimate exactly what you will need to pay back on your loan every month. Interestingly, you can use these tools without much guidance. They are very easy to use and require very little knowledge. Even if you are a novice in the financial field, you can use this calculator to your benefit and get an estimate of the EMI. These calculators make use of elementary calculations. The formula to calculate EMI is as follows. EMI = [Principal x Rate of Interest x (1 + Rate of Interest)^ Loan Duration in Months] / [{(1+Rate of Interest)^Loan Duration in Months} – 1] A personal loan calculator does not require too many personal details. You can easily get an idea about the EMI owed by you. And you can do so without giving away too many of your details. What is amazing about a personal loan calculator is that you can find one on the website of every lender from whom you want to borrow. So, there is no need to run here and there in search of a reliable calculator. You can find one easily with the same bank from whom you are about to borrow. A personal loan calculator is also a great tool to check the rates of interest. In case you were not very clear about the interest that you had to pay, this tool will bring everything clearly into the picture. Some advanced calculators can also help you estimate other variables. These include service charges, taxes and more. A calculator such as this one will come in great use for you if you want to know some quick numbers in a short period. You can also access some calculators which are meant for specific loans. For example, you may find a calculator for an education loan on a lender’s website. These calculators will also account for moratorium periods. Using them, you will be able to get accurate results about plan repayment, interest and more. Based on the type of loan you have taken, a personal loan calculator can calculate EMIs in two ways. It could be either based on the fixed interest rate method or the reducing balance method. Manually, it would take a lot of time and effort to obtain the correct values. But, using a calculator makes it so much easier to get the right values. You can use a personal loan calculator to easily determine and track your monthly expenses for the interim of the loan. This will certainly help you efficiently manage your finances. How To Use A Personal Loan Calculator? It is very easy to use a personal loan calculator. Using one of these tools, you can get access to details like monthly payments, total interest payable, and more. The values will be based on the inputs that you enter in the calculator. The results obtained through this calculator are very helpful for several reasons. You can consider different options before selecting any one type of loan. You can assess different term durations or interest rates to check which scenario fits your better. The monthly repayment figure will tell you whether it is going to fit into your budget. The total interest value will give you an idea about the combined repayment that you will be giving to the lender. You can easily change values to obtain a different set of results in no time. [B-02] So, in these ways, a personal loan calculator is just the perfect tool to get the financial results that will help you make a decision. Almost everyone today makes use of one such tool to make estimates about the loan options available to them. You can visit Piramal Finance to check the available loan options and use their loan calculator. Also, find a stream of financial knowledge for your use on their website and blogs. You are sure to get access to a wide array of information about the loan on this platform. So, don’t wait. Get started with a personal loan calculator before taking your next loan.

08-11-2023

Personal Loan

Can We Negotiate A Lower Interest Rate On A Personal Loan?

Whether making any big-ticket purchases, people might be interested in taking a personal loan with low-interest rates. Depending on where they are borrowing from, they can negotiate the interest rate of such loans. This post is a guide including some tips on how to guarantee a lower interest rate. [B-01] Maintain a good credit score A borrower will have a greater chance of obtaining a personal loan with low-interest rates if they have a credit score of 750 or higher. One may do this gradually by paying all of their bills, loans, and other obligations on time each month. It can also be advantageous to keep their credit utilisation ratio under the 30 per cent cap. Additionally, keeping a good credit mix of both secured and unsecured loans, verifying the CIBIL Report for errors, and other actions will help achieve a personal loan with low-interest rates. Length of credit history Another two-part component that affects the borrower’s score is the length of their credit history. The first component is just how long one had credit access. The score will increase as one gains more loan management experience. The average age of the borrower’s loan accounts is covered in part two. It’s detrimental to one’s credit score if they often open and close credit card accounts. Long-term loan relationships are what lenders prefer to see on credit reports. Types of credit It’s one thing to know how to manage a credit card, but lenders also want to know how the borrower handles other kinds of debt. The credit score will benefit from having a greater variety of debts, such as mortgages, credit cards, auto loans, and a personal loan with a low-interest rate. Maintain a good repayment history The borrower must pay the entire amount due on the credit card each month rather than just the minimum payment to pay off the debts. Additionally, one ought to keep track of other loan and EMI instalments. One will stand a higher chance of convincing the lender to get a personal loan with low-interest rate if they have a solid track record of EMI repayment. Compare interest rates The borrower can compare and select the best alternative among numerous lenders by going to an online financial marketplace based on their needs and eligibility. One can also ask their existing lender if they have any promotions going on over the holiday season or if there is any way to get a personal loan with a lower interest rate. Check the interest calculation method Even though the lender offers the borrower a personal loan with low-interest rate, they might have to pay a higher interest amount when the loan term is up. This is because each lender uses a different formula to determine interest. They might be given a loan with a fixed interest rate, in which case the interest is calculated on the entire loan amount throughout the loan. Another option is a reduced interest rate, in which case the interest is calculated on the outstanding principal and the principal is gradually reduced by the EMIs. Credibility of employer People who work for reputable or global corporations are more likely to be offered favourable agreements. Because their employers are better able to guarantee a consistent job, the lenders determine that the borrower is more likely to have a reliable income to make loan payments on time. As a result, it will be simpler to obtain loans with reduced interest rates. Borrower’s employment history The borrower’s ability to create a good credit score, which somewhat affects interest rates, will be aided by having a decent job, keeping residence stability, and maintaining a good FOIR (Fixed Obligation to Income Ratio). FIOR is the criterion that lenders most frequently employ to assess a borrower’s loan eligibility. Few banks demand that they have a minimum two-year employment history, including at least one year with their present employer. Lending institutions see people favourably and provide them with a better chance of receiving loans with reduced interest rates if they work for state or federal government agencies. Offer collateral A secured personal loan is one technique to ensure a reduced interest rate. Personal loans that are not secured by an asset are not secured. If one chooses not to repay the loan, the lender will have nothing to sell to make up its losses. If one chooses to obtain a secured personal loan with low-interest rate, one must put up something of value as collateral, such as a car or the remaining value of a CD. The asset the borrower pledges as collateral may be taken back by the lender if they are unable to satisfy the monthly obligations. This lowers the risk for the lender, enabling them to set a lower interest rate. Debt burden The borrower’s credit score’s component measuring their debt load is divided into two components. The first is just how much money they owe overall. Their credit score will decline as their debt increases because lenders don’t want to give loans that will put the borrower in financial trouble. The second is the proportion between the borrower’s outstanding balance on all credit lines, including credit cards, and their combined credit limits. Better results come from a smaller ratio. Good existing relationship with the bank A personal loan with low-interest rate and with better terms of service may be easier to get if the borrower already has a good working connection with a bank or lender. This is because the bank or lender is aware of the borrower’s responsible credit behaviour and that there is often less risk involved than when lending to a new customer. [B-02] Wrapping up Before choosing a lender, one should constantly review the service terms provided by different lenders. Make sure to consider the loan length, fees, loan amount, and other factors in addition to the provided interest rate while making the choice. If one has taken out too many loans, one might not obtain a good offer. If the CIBIL score is less than 700, the application may potentially be refused. Maintaining a credit score makes one eligible for loans with lower interest rates. Visit Piramal Finance to learn more about products and services available on Personal Loans.

08-11-2023

Personal Loan

Advantages and Disadvantages of Wedding Personal Loan You Need to Know

The demand for a wedding personal loan increased by 40% in 2021. Even during the COVID-19 pandemic, the demand for wedding personal loans was on a rise. A person who is thinking about obtaining a personal loan for marriage wonders “Is it beneficial to take a wedding personal loan?” or “Is it a good idea to take a personal loan for marriage?”. We have tried to answer all these questions by explaining the advantages and disadvantages of a wedding personal loan. [B-01] What exactly is a wedding personal loan? What does it require? A personal loan for marriage is a type of personal loan. It is a financial product. It allows people to obtain the required funds for managing the expenses of a wedding. A wedding personal loan helps you to make the best possible wedding arrangements without worrying about the funds. Indians love to conduct grand weddings. So banks and other financial institutions operating in the country offer marriage loans. The basics of such personal loans are the same as any other personal loan. The applicant gets a sum of money that they need to repay in equated monthly instalments over a period. Various factors, such as the principal amount, rate of interest, and tenure are decided beforehand. Advantages and disadvantages of a wedding personal loan Just like every financial product, a personal loan for marriages also has its pros and cons. You should know about them if you are planning to get a wedding personal loan. Let us discuss all the advantages and disadvantages of a wedding personal loan that can enable you to make a better decision. Advantages of taking a personal loan for marriage 1) No requirement for collateral or security A wedding personal loan is an unsecured loan. You do not have to provide any of your possession as collateral to the bank. Many people willing to get a loan for marriage can’t provide collateral or security. Taking a wedding personal loan is beneficial for such people. 2) Reasonable interest rates and foreclosure charges Interest rate is one of the factors that become a cause of worry for a lot of people applying for a loan. The interest rates associated with a wedding personal loan are reasonable. Several banks and financial institutions offer personal loans for marriage. So, the rates are quite competitive. Thus, you can choose a lender that provides a loan at the lowest interest rate. The foreclosure charges are also reasonable. You can foreclose the loan if you feel that you have the required amount. It will help you to avoid paying EMIs for the rest of the loan tenure. 3) Desirable loan amount and tenure Weddings involve various expenses. They could be invitation cards, accommodation for guests, welcome gifts, venue for ceremonies, decoration, caterers, apparel, jewellery, photography, videography, music equipment, live performances, vehicles, chauffeurs, and cleaners. Even estimating the total cost can be overwhelming. You should always apply for an amount higher than anticipated. You can get a wedding personal loan for the desired amount depending on your credit score. Just like the amount, you also get flexibility in terms of tenure. You can choose the tenure that suits you. If you want to pay off the loan quickly and can pay high EMIs, you can choose a shorter duration. But if you can’t pay high EMIs, you can choose a longer duration. 4) Seamless application process and fast disbursal The application process to obtain a personal loan for marriage is simple. You can complete the process smoothly. Just go to the nearby branch of the bank or visit their website. Wedding personal loans usually involve minimal formalities. You just need to provide the required details and the necessary documents. Any financial institution takes very less time to approve an application for a wedding personal loan. You can get approval within a week. Once you get approval, the amount will be disbursed in 24-48 hours. 5) An opportunity to build CIBIL score Whenever you apply for a loan, your credit score is checked. You cannot build a credit score unless you take a loan. If you have never taken a loan before, taking a personal loan for your marriage gives you a chance to build your credit score. If you already have a credit score and your partner doesn’t, you can add them as co-applicant in the loan application. Disadvantages of taking a personal loan for marriage 1) Lower amount and higher interest than secured loans A wedding personal loan is an unsecured loan. So, the amount you might get would be less than the amount of any secured loan. The interest rate charged on the loan would be higher than the interest rate charged on any secured loan. 2) Requirement of an impressive CIBIL Score A personal loan for marriage is an unsecured loan. This fact is also considered when it comes to checking the CIBIL score. Unsecured loans are given based on trust and credibility. Therefore, the applicant must have a high CIBIL score. 3) Significant amount of research A wedding personal loan is a common financial product. You can come across numerous lenders who provide this loan. You need to conduct thorough research to find a lender who provides the maximum possible amount at the lowest interest rate. You should also consider various factors. These are flexibility in tenure, processing fees, approval and disbursal time, documentation, foreclosure charges, EMI bounce fees, and hidden charges while considering the lenders. 4) Planning the monthly budget Newly-wed couples have to face various expenses. These are honeymoons, parties, and return gifts. You must plan your monthly budget before availing of a wedding personal loan. You should make sure that you will be able to handle the financial obligations related to the loan after your marriage. 5) Emotional burden and mental stress A personal loan for marriage also causes financial, emotional and mental stress. It might be difficult for some newly-wed couples to handle the stress amidst the responsibilities that occur after marriage. [B-02] Conclusion A wedding personal loan is useful to pay for wedding-related expenses. But you should acquire the required knowledge and show due diligence while applying for a loan. You need to choose the lender carefully. For example, Piramal Finance is a reputed financial services company. It offers different types of loans including wedding personal loans.

08-11-2023

Personal Loan

How Low Cibil Score Can Cause Rejection Of Personal Loan?

Are you planning to apply for a loan anytime soon? Well, then you must check your CIBIL score because a good CIBIL score is essential for you to get your loan approved. It is one of the most important criteria when it comes to personal loans. If you have a decent CIBIL score, there is a high chance that your loan will get approved. However, if you have a low CIBIL score, it will be difficult for you to get your personal loan approved. But what exactly is the CIBIL score? CIBIL is one of India’s top credit bureaus authorised by RBI. The CIBIL database contains all of your previous credit data. This score varies from 300 to 900 and is a three-digit numerical summary of your credit history, rating and report. Before granting your personal loan, the lender will review your credit score. Ideally, your score should be 750+ to get easy approval for your personal loan. You can check your CIBIL score on the official CIBIL website. In this article, you will learn how a low CIBIL score can cause your personal loan to get rejected. [B-01] Poor Discipline Let’s say, you approach a lender or a bank for a personal loan. The first thing that is of utmost importance to them is if you’ll be able to pay back the loan you are taking from them. There is only one possible way to do that. It is through your CIBIL score. If you have a low score it will showcase your reputation as someone who doesn’t pay their bills on time. Thus, this will lessen your credibility and trustworthiness in front of the lender or bank. There is a high chance of them thinking that you might miss out on EMI payments just like you do with your credit card bills. Hence, your personal loan has a huge possibility of getting rejected. Default Behaviour A low CIBIL score can be due to a variety of reasons. One of them is when you apply for a lot of credit cards or loans within a short period of time. Your score gets impacted by all these applications of yours. You can come across as someone hungry for credit. Thus, your credit score will probably suffer as a result. In such a scenario, you’re being shown as someone who likes taking a lot of credit, it’ll become much more difficult for the bank to grant you your personal loan. Since you’re taking much more debt than you can handle, you are likely to default in future. Thus, no lender or bank will be able to grant you the loan. Errors In Your CIBIL Report A lot of times CIBIL score gets affected due to an error in the credit report. Inaccurate statements of pending instalments, wrong reporting of active loans and long-due credit card bills can cause a severe negative impact on your CIBIL report. These could be mistakes made by your bank, NBFCs or some other reasons as well. Ideally, you should review your credit report regularly and file a CIBIL dispute case to get any errors fixed as soon as possible. In case you don’t check your CIBIL report checked daily, it can cause various problems for you. Let’s assume, some error has occurred in your final CIBIL report and you don’t get it fixed. The lender or the bank will be going by this CIBIL report only to understand your creditworthiness. Although it might not be your fault, you’ll be having a bad CIBIL report due to the errors. Finally, it will lead to your personal bank loan getting rejected for no good reason. Therefore, practice the habit of checking your CIBIL report. No Credit History It may sound a little complex but it’s true. If you do not have a credit history, it’ll become highly difficult for you to get your personal loan approved because in such a case, your credit score is likely to be zero or it’ll show no credit history. Additionally, if you only recently began using credit, then you will be having a very poor score. Therefore, you won’t be able to get a personal loan on terms that are suitable for you. Unfortunately, banks require your CIBIL score to understand your financial situation. Thus, if you plan on applying for a personal loan, it is better to build a good credit score in your name. You can apply for a secured credit card to start building your credit score. Moreover, you can get a secondary joint card with a person who has excellent credit, such as one of your parents. This is a great method to take advantage of their high score while simultaneously beginning to establish your decent credit history. How to Improve CIBIL Score? A few ways through which you can improve your CIBIL score are listed below: Don’t just pay the minimum amount due at the end of the month. Instead, try paying the entire bill. Always pay credit card bills on time. Try not to use more than 30% of your entire credit card limit. Keep checking your credit reports from time to time. Avoid using multiple credit cards in a short period of time.These basic rules should be kept in mind while using credit cards. [B-02] Conclusion No doubt, your CIBIL score is of huge importance when it comes to applying for personal loans. We hope the information provided above helped you understand the reasons why a low CIBIL score can lead to your personal loan getting rejected. It is wise to practice financially healthy habits to improve your score. If you want to learn more about finances and personal loans, check out Piramal Finance. They have a lot of useful and informational blogs that can help you make a good decision regarding your personal finances. Moreover, you can also apply for a personal loan on their website.

08-11-2023

Home Loan

Hidden Factors of a Home Loan EMI Calculator

Home loan EMIs are a long-term commitment, making them a crucial factor in home buying. Paying down mortgage debt is done in equal monthly instalments or EMIs. Before applying for a mortgage loan, it’s essential to figure out how much your monthly EMI would be. The monthly payment for a house loan may be determined with the help of a reliable home loan EMI calculator. Then, you can be sure that it won’t significantly impact your budget. [B-01] What factors have the most significant influence on the EMI of a home loan? Loan amount: The amount you borrow from the bank to put down on the house is known as the “loan amount.” Interest Rate: The interest rate refers to the percentage of the loan amount your lender will earn each year. Tenure: The loan’s “tenure” indicates the number of years that it was taken out for. Once you know these things, you can use the home loan EMI calculator to figure out how much your monthly payment will be. The calculator will also show you the annual amortisation schedule, which shows how the amounts to be paid back are split between the interest and the principal, and their balances over the loan tenure. How to calculate home loan EMI? The bank uses loan amount, interest rate, and loan term to determine your home loan EMI if you are approved for a mortgage. A house loan’s EMI is determined by dividing the total amount owed (principal plus interest) throughout the loan’s term by the number of months the loan was taken out. It is the amount of your equated monthly instalment. Many factors, including the interest rate and loan term, will influence your home loan EMI. As a result, it’s crucial to keep abreast of the most current pricing structures and policies on the market. You can utilise a home loan EMI calculator to understand what your home loan instalments could look like. By doing so, you may choose the best loan deal and term for your needs. The calculation for the monthly payment on a home loan is as follows: E= [P x R x (1+R)^N]/[(1+R)^N-1] E: Equated Monthly Instalment (EMI) P: Loan Amount/Principal R: Monthly Interest rate. (Payments of interest are made monthly by simply dividing the yearly interest rate by 12.) N: Length of the loan throughout months Say you have INR 50 lakh and want to buy a house. The bank has offered you a home loan for INR 40 lakh with an annual interest rate of 10.5% for 240 months or 20 years. If you use a home loan EMI calculator or the above formula to figure out your EMI, it will be INR 39,935 per month. Suppose the annual percentage rate (APR) on your house loan is 11%. Your EMI will then be INR 41,288 per month. The interest rate affects how much interest you have to pay each month. This in turn affects how much your EMI is. In the same way, if you choose to pay off your loan in 10 years instead of 20 years and the interest rate is 10.5 per cent, your monthly EMI will be INR 53,974. Because you will pay off the loan in less time, the amount you pay back each month will be higher. Why should you use a calculator for your monthly mortgage payments? A mortgage payment calculator is not a simple tool. Complex math calculations that must be done by hand can take hours and be boring for many of us. Figuring out your home loan EMI can be much easier if you use an online home loan EMI calculator. Facilitates Long-Term Preparation: You may use this information to determine how much money you need to set aside each month to pay your mortgage. Using this method, you can better manage your finances and keep up with your payments. Transparent EMI amortisation schedule: With this calculator, you can see exactly how much of the EMI goes to the principal. You can calculate the exact interest amount. Helpful for loan management: If you have extra money and want to pay off your loan early, the home loan EMI calculator will tell you how it will help you save money on your monthly payments, save time, and save money on interest. The calculator is readily accessible: The home loan EMI calculator is free to use, which makes it easy and convenient to figure out how much your home loan EMI is and when it’s due. Efficient, quick, and accurate: Piramal Finance Home loan EMI calculator is easy to use and gives very accurate results. This is unlike manual calculations, which could be wrong because of human error. To evaluate loan deals: You can use this calculator to compare loan offers from different banks. It will help you figure out the total amount (Principal Amount and Interest Amount) that needs to be paid back throughout the loan. This can help you decide which loan offer is best for you. Helps choose an appropriate term: A home loan EMI calculator can assist you in determining the best home loan term. This is because it lets you see the monthly EMI amount for different loan terms to make a well-informed decision. [B-02] Choose Piramal Finance for accurate EMI home loan calculations With the help of the Piramal Finance home loan EMI calculator, it’s easy to figure out your home loan EMI. The mortgage interest calculator will help you make an accurate decision about financing a home purchase. The EMI calculator can also help you make monthly plans for your money. Mortgage payments can be made monthly basis with a low-interest rate and an extended payment period. Most people’s biggest concern about house loans is the monthly EMI payments. An EMI calculator helps you budget more precisely by breaking down your monthly EMI payments into their parts, regardless of the loan’s interest rate or length of the term. To get the best house loan best suited to you, use our home loan EMI calculator to figure out what each lender is offering.

08-11-2023

Personal Loan

How Personal Loan Get Verified: Complete Process At Piramal Finance

In India, Personal Loan is one of the most popular ways to get money. It is an unsecured loan, which means you don’t have to put up anything as security to get it. Piramal Finance’s verification process for personal loans is set up in a way that makes the whole process easy for eligible applicants. Whether you apply for a personal loan online or in person at one of our branches, the steps below will ensure you get your money quickly. [B-01] Step By Step Process of Getting Personal Loan Verified Take a look at the five steps that are usually followed to verify a personal loan: Step 1: Loan Application The person who wants money must ask the lender for a personal loan. You can apply online for loans from many lenders today. You will be given an application ID after you send in the loan application form. You can check on the status of the application using this application ID. Step 2: Online Decisions Many lenders will tell you right away if they can consider your application based on your location, age, CIBIL score, etc. Piramal Finance makes this kind of decision within a few minutes of receiving an online application. Note that this step could take a few days if you want to apply for a loan in person. Step 3: Documents Collection When the person sends in the loan application, the bank starts asking the person for documents. The lender could send someone to get the papers or ask the person to bring them in person to the office. For a personal loan, you will usually need the following documents: Passport size photograph A passport, driving license, voter ID card, government id card PAN cards, or Aadhar cards, are all kinds of identification. Statements of accounts: most recent payslip with salary data. Tax returns from the last 2 years Account bank data, most recent power bill, latest mobile bill. Monetary statements or bank passbooks with data from the last six months. Step 4: Verification of Documents Once the lender has all the necessary documents, they send them to the verification department to start the process. Most lenders have a dedicated team that handles their verifications. Online verification Most government documents, like PAN cards, Aadhaar cards, and passports, are checked online through their online portals. Offline Verification The verification team goes to the person’s house to ensure that the address is correct. The team could go to the person’s workplace to see if the person does work there. The verification team may also ask about your salary or how long you’ve worked for that company. The verification department puts together all the information from the verification system. It sends it to the personal loan agent in charge of that account. The loan will be processed if the lender is happy with the verification process results. If the lender isn’t happy with the verification process results, the loan request will be turned down. But the lender will tell the person why it was turned down so he can fix any mistakes he made. Step 5: Loan Disbursal This is the last step in the process of verifying a personal loan. To get this closer to being finished, the loan agreement is written. This is done after you agree to the loan’s duration and the interest rate on the personal loan the lender gives you. The time it takes to pay back a loan is usually between 12 and 60 months. This agreement has all the important information, like the amount of the loan, how long it takes to pay it back, the interest rate, any fees or charges, and the terms & conditions of the personal loan. Before signing the agreement, it is a good idea to carefully read the terms and conditions. After you and the lender both sign the agreement, the personal loan is usually given to the person within 2-3 days of service. When you get a loan from Piramal Finance, the money goes straight into your bank account within 30 minutes. Whether or not you will receive a personal loan depends on your credit. You can check this by looking at your pay stubs, your tax returns, and your CIBIL score. If your credit score is at least 750, it will be easier to get a loan quickly. Things To Keep in Mind When You Apply for a Personal Loan There are many things you should consider while applying for a personal loan. These are given below: Check Costs & Fees Personal loans are subject to several fees. This includes management fees, foreclosure expenses, etc. You can be prepared to pay such charges later if you search for them in the loan agreement or on the lender’s webpage. Review The Foreclosure Guidelines Lenders usually charge foreclosure costs. They do this by returning a property purchased with borrowed funds since the funds were not repaid as agreed. You should carefully check the foreclosure guidelines to decide how long you have to settle the loan and the costs involved before you apply for a personal loan. Think About Your Current Debts Consider your current debt when you apply for a personal loan. Consider your debt-to-income ratio to decide if you will truly have enough money to repay the loan you want. You can apply for a personal loan if your debt-to-income ratio is under 30%. If it is greater, you should consider other borrowing choices. [B-02] Conclusion When you apply for a personal loan, you get a lot of freedom to handle your finances well and pay for any unexpected costs easily. If you intend to apply for a personal loan, have all your documents ready. This will speed up the verification process of personal loans. For similar blogs like this, you can visit the Piramal Finance website and explore their products and services.

08-11-2023