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Personal Loan

Personal Loan Prepayment Calculator Benefits and Steps to Use

The value of EMI is fixed at the time of buying. It is paid every month. This is to ease the burden on the borrower. You can, however, pay off loans ahead of schedule. This is a prepayment of loans. We can also call it “payment in advance.” People use this to pay on time. It can be useful in many ways. Its amount can be calculated using a personal loan prepayment calculator. Let’s discuss this in detail. When people pay EMI, they pay interest. There is a fixed interest to be paid. It has to give every month with EMI. But sometimes, people want to ease the problems. If they have lump sum money, they can use it. It can be used to repay the loan amount. It can reduce the total amount. In turn, it reduces interest. So, the prepayment of loans minimises the burden on people. The amount for prepayment is calculated before paying. It is done by using a personal loan prepayment calculator. It is effortless to use. [B-01] Steps To Use A Personal Loan Prepayment Calculator Using the personal loan prepayment calculator is easy. Follow these simple steps: Enter the principal loan amount. Enter the current rate of interest. Mention the original term of the loan. Verify the number of EMIs paid. You will see the amount that is due. Enter the prepayment amount. Click OK. The screen will display the amount paid. It will also mention the amount left. The period and EMI will change. The new period and EMI will be visible on the screen. In the prepayment of loans, different cases can arise. These includes Case 1: Full prepayment This is for the people who want to pay the amount completely. It includes paying every penny left. It is called foreclosure. You can do it if you become eligible to pay the entire amount. It saves you from interest. This method saves a lot of money. But it requires paying a lump sum all at once. A specific amount is paid in this. That amount is called the foreclosure amount. Case 2: Partial prepayment once It means paying a partial lump sum at once. It shortens the repayment period by lowering the principal amount. And less interest to be paid. This amount can be calculated using a personal loan prepayment calculator. It is effortless to use. Fill in all the blanks. Get a new loan period and EMI. The EMI can also be varied. This helps people in many ways. It can reduce the burden of EMI as the remaining balance is reduced. Case 3: Partial monthly prepayment It means paying in advance every month. It also reduces the overall period of the loan. This amount can also be calculated using a prepayment calculator. The user can decide the extra amount to be paid. All the values are to be put in the prepayment calculator. A new EMI is generated. It is user-friendly and easy to use. People can use it if they want to increase their monthly repayment. This helps them pay off loans on time. Above, we discussed three cases regarding repayment. The amount for all three is differently calculated. A personal loan prepayment calculator can easily calculate it. This calculator is beneficial and easy to use. Anyone can easily use it for calculations. The only work to be done is to input the correct values. All analyses are carried out by the calculator. There is no chance of error. Piramal Finance offers ZERO charges on Personal Loan Pre Payment. Benefits Of Using A Personal Loan Prepayment Calculator There are many benefits to using a personal loan prepayment calculator. Some of these are: Easy to Use: This calculator is easy to use. No special knowledge is required. Anyone with little financial knowledge can easily use it. Also, no special work is to be done. The only task at hand is to assign values. Even a kid can operate it. It is readily available online. There is no need for offline work. No Errors: The calculations on this calculator have no errors. Since it is software, there is no chance of error in the calculations. This can make your work easy. It can provide you with error-free results. This can also help with proper planning. This can help people save time. Lesser Interest: Prepaying loans has a lot of benefits. Reduced interest tops the list. The prepayment of the amount reduces the principal amount. This, in turn, reduces interest. It saves money. Interest is a burden on people. Prepaying loans can reduce it. Interest adds up to increase the principal amount. The amount to be paid back is much more than the loan taken. It is paid in EMI, but it’s still tricky. However, prepaying reduces the burden. A personal loan prepayment calculator can calculate this amount. It also shows detailed values for interest and period. Hence, it is advantageous. Time Management: The personal loan prepayment calculator can help manage time. Prepaying loans reduces the overall period. This requires planning. You can be free of debt easily. You can calculate the prepayment amount according to your comfort. It is an easy process. It does not require offline work. You can do it yourself. In turn, this saves a lot of time. Also, when you are free from debt early, you can focus on other things. Practical Approach to Life: This can give someone a practical approach to life. A definite amount can motivate you to save money. You can plan for the future. Keeping in mind the occasions, the prepayment amount can be changed. You can make partial prepayments. [B-02] CONCLUSION Using a personal loan prepayment calculator is very easy. Prepaying your loans also has a lot of benefits. It is easy and friendly. This can reduce the burden on people and help them understand time management.

08-11-2023

Personal Loan

What Are the Steps to Calculating a Car Loan?

The cost of borrowing money to buy a car is referred to as auto loan interest or Car Loan interest. The lender will base its interest rate on your credit score, debt-to-income ratio, and other factors. To create your budget, you should know your interest rate and how much money goes toward your monthly loan balance. Car Loan EMI includes the principal and interest payments on your car loan. The amount, rate of interest, and period primarily determine the EMI. The longer the period, the lower the EMI, but you will pay more interest to your lender. [B-01] What Do Auto Loan Calculation Formulas Include? The key factors in the calculator for a car loan are the interest rate, loan size, and loan term. A larger loan will result in a higher monthly payment. A smaller loan will result in lower payments. Higher interest rates result in higher monthly payments than lower interest rates. A loan with a shorter term will have a higher monthly payment than a loan with a longer term. When looking for the right loan for your monthly budget, you can adjust these three factors to find the best balance for your needs. Car Loan EMI Calculation Methods You can calculate the EMIs on your car loan in two ways: online or manually. Method 1: Using an Online EMI Calculator for Car Loans Visit the lending institution’s car loan EMI calculator page. The monthly EMI you must pay will be displayed instantly after entering the information mentioned above. Method number 2: Use a manual EMI Calculator for Car Loans This is the formula for a calculator for a car loan: E = [(1 + R) N – 1] [(P x R x (1+ R) N)] where E denotes Equated Monthly Instalment, P is the principal loan amount, R is the interest rate, and N the number of months These three variables are changeable. This means that the EMI value will change whenever one of the three variables is changed. The following are the five advantages of using an EMI calculator for a car loan : Simple to use Quick results It saves time and energy that would have been spent on manual calculations. It assists you in determining how much your car loan EMI will be. Advantages of a Car Loan Flexibility in choosing a tenure Car loans are available for terms of up to seven years. This gives you the freedom to plan your finances and the convenience of choosing the tenure of your choice. Secured Loan Because a car loan is a secured loan, you are not required to mortgage your existing assets (secured against the car itself). Meaning until the loan is fully repaid, the lending institution or bank has a lien on the asset, giving it the authority to seize the asset and recover the debt by selling the vehicle. Loan Payment Options You can pay with post-dated checks or by auto-debit. Your EMI will be deducted automatically from your bank account. This will be when you use the auto-debit feature. Conclusion A car loan is a type of credit product offered by banks and other lenders. It allows you to finance the purchase of a car with a low down payment. The loan can be repaid in EMIs over time at an agreed-upon interest rate. Before applying for a loan, the car loan EMI must be calculated. A car loan calculator can assist you in calculating the EMI and interest payable on a financed vehicle. India is now the world’s fourth-largest market for four-wheelers. The figure demonstrates how car demand has risen over time. Many people desire a personal car, but the cost impedes purchase. A car loan can help you pay a low down payment and easily get your dream car. The remaining balance can be paid monthly at an agreed-upon interest rate. Dive into Piramal Finance articles for more such finance-related subjects here: [B-02] FAQs What If I Can’t Pay My Car Loan EMI? When taking out a loan, make sure you can repay it. Failure to do so will result in substantial fines from the lender. Your credit score will also suffer as a result. Suppose you are unable to repay the loan due to unforeseeable circumstances. In that case, you must notify the lender as soon as possible so options such as moratoria or a longer repayment period can be considered. What Is The Required Down Payment On A Car? Generally, the minimum down payment for a car loan is 10% of the car’s on-road price. This is because most lenders offer 90%, if not 100%, of the vehicle’s on-road price. However, if you make a substantial down payment, you will require a lower loan amount. Your monthly EMIs and interest rate will also be low. What factors influence your car loan EMI? Loan amount Interest rate Loan tenure Rest period once a month What exactly is EMI? The Equated Monthly Instalment (or EMI) is made up of the loan principal and interest. As a result, the EMI equals the principal amount plus the interest paid on the car loan. The EMI is usually fixed for the entire loan term and is repaid.

08-11-2023

Personal Loan

Great Festive Loan Offers to Make your Diwali Memorable

Diwali is one of the most important festivals in India. It is known as the “festival of lights.” It is celebrated all over the country. The Diwali celebration is nothing less than extravagant. As Diwali approaches, there are many offers from banks, nonbanking financial companies, and housing financing companies, such as the festive loan offers. October is undoubtedly the month of festivals. People start celebrating from the onset of the month. As people start spending, buying things, hosting parties, etc., banks look forward to the adequate capitalisation of this spending spree. Festive loan offers enable customers to increase their spending power. Festive loan offers are given at lower interest rates and for a smaller amount, generally capped at 50,000 rupees. One can check out various financial institutions and loan apps to see which offer is best for them. Also, it’s advised not to go overboard with these plans, as debts will remain longer than the festivals. Festival loans are a very different kind of loan. These loans are new in the market. Lenders are giving out this kind of festival loan to celebrate festivals. These types of personal loans can help one prepare for different festivities, host parties, etc. Festival loans are an excellent way to raise funds for festivals and parties. [B-01] The festive season’s offers can be divided into several categories. Discounts and cashbacks Cashbacks and discounts are put in place to make the original price of a product more affordable. These lower the proportion of the initial cost. Customers who want to buy white home and kitchen essentials, electronic appliances, and furniture can use these offers to get the advantages offered through discounts and cash back. Many different lenders offer such deals with credit cards and debit cards. These festive loan offers are generally available throughout the year. The discount amount may fluctuate according to seasonal festivals. Customers can also get such discounts on “buy now, pay later” services. Spend-based offers These festive loan offers are generally for customers using debit and credit cards. These offers are generally given to customers to encourage them to spend a particular amount at a specific time. The customer will get more cashback offers, gift cards, vouchers, and rewards by paying at that time. Spending that time can also give the customer complimentary access to a premium privilege and many more offers. The customer can get many more benefits with these festive loan offers. Let’s talk about the several ways to use the festive loan offers. Home Renovation The most common Diwali custom is to renovate one’s home. Everybody starts decorating their home and making it look nice. Decorating and renovating a house will need a good amount of money. Festive loan offers will provide the customer with some quick funds. These funds will help the customer renovate their home easily and quickly. If the customer wants, they can apply for an easy personal loan from a bank during the festive season. This will be very beneficial for the customer. Painting the house It is a very familiar thing that during Diwali, people start painting their homes. By painting the homes, they try to give the house a new and clean look. Painting walls is expensive nowadays. If the customer wants personalised paint for their house, it may cost more. This is why many customers postpone painting their homes. In this case, personal or festive loan offers can help customers by providing them with some quick cash during the festive season. A personal loan gets disbursed very quickly, within days or even a few hours. Flying back home It is an essential custom to be at home with family and friends during Diwali and the festive season. If someone works in the IT industry or some other profession far away from home, coming back home during festivals is nothing less than a big deal. Taking a flight back home will be the quickest option. But the flight tickets are way too costly, especially during Diwali and the festive season. The customer can apply for a personal loan for this. Festive loan offers will help the customer save money. Gifts and presents Gifting presents to family, friends, and loved ones is a must for Diwali or any festive season. There is a massive list of gifts that one has to give others. Some gifts may be dresses, accessories, dry fruits, sweets, etc. One might have to get the close ones better gifts than these, like jewellery and ornaments made of gold or diamonds. It is well known that these gifts are expensive. If the family is significant, then the amount spent will be higher. A personal or festive loan offer can provide the customer with instant and quick cash. This money will instantly refill the bank account. It will help with uninterrupted shopping for loved ones. One does not need to worry about the money spent on gifts during the festive season. [B-02] Conclusion To wrap up this whole article, a personal loan is an easy way to carry out all the expenses of the holiday season. Diwali is a significant festival in this country. A personal loan will help the customer raise some quick funds this season. The festive loan offers are easy to avail, convenient, and quick. The EMI comes with a long tenure, so the amount of payback is smaller. For further information about personal loans, financing, and holiday loan offers, Piramal Finance will be a great help.

08-11-2023

Personal Loan

5 Simple Ways to Repay Your Personal Loans Quickly

Everybody wants to live a stress-free life. Nobody wants to bear unnecessary tension, especially in finances. Most people in our society belong to the middle class. They face more financial problems than others like payment of school fees, dissatisfaction with salary, regular cost-cutting due to little money, etc. Such issues are typical and do not pose a significant threat to livelihood. However, some things have become universal problems in the day-to-day life of people. An example is personal loan repayment. This article introduces personal loans, their pros and cons, and ways to repay them quickly. [B-01] What are Personal Loans? A personal loan is a certain sum of money that a person borrows for his personal use. For example, education loans, home loans, etc. The borrower can return or repay the amount at a fixed rate. A particular interest rate allows the lender to recover the principal and the borrower’s extra amount. That additional sum is called interest. Personal loan repayment is generally not entitled to any mortgages. This means that the borrowers can avail the sum without any collaterals like properties or houses. This makes such loans risk-free. It usually takes about 1-7 business days to approve a personal loan after documents are submitted. There are numerous ways to repay them, such as EMI (Instalments) Full payment In simpler words, personal loan repayment is relatively easier than a consumer loan. Advantages of Personal Loan Prepayment There are various benefits of personal loans, such as It helps improve the borrower’s CIBIL score: This improves the financial reputation of the borrower, making it easier for him to avail of another loan afterwards. It is processed without collateral security: The borrower is not required to keep anything on the mortgage to repay the personal loan. Approval is quick and hassle-free: The process is quick and simple. It requires minimum document submission: Basic documents such as identity proof, address proof, bank statements, and documents related to salary need to be submitted. No limit on the amount: A person can avail of up to 35 lacs in personal loan. Disadvantages No matter how attractive it is, personal loan repayment has some cons. A few of them are listed below: There are high-interest rates: Rates keep getting high if debts are not paid on time. Borrower faces sabotage to his/her credit image: This is the opposite of a good CIBIL score. It reduces one’s chance of getting another loan from banks or financial institutions. Fear of penalty by the lender: The lender can recover a debt by legal means if the borrower is unable to repay the personal loan. Leads to stress and anxiety: Unnecessary debts interfere with day-to-day life. This leads to mental health issues such as stress and depression. How to repay your loans? Every problem has a solution, just like this one. Remember, it is not difficult to achieve this target if one knows the correct and quick ways of personal loans repayment. Please find the easy ways to solve this problem below. Mutual funds These are the best way to repay your debts if the loan amount has reached its peak. This can be done seldom, but it is beneficial to the borrower. Investment in mutual funds is useless if one does not take their help for personal loan repayment. One can sell liquid assets such as gold or money market funds to recover from unnecessary debt. Mutual funds come to the rescue when one has no choice. However, please note that this method is only for emergencies. Mutual funds themselves come with a lot of risks. So try to think twice before availing of a personal loan. One should ensure whether one can repay as personal loan repayment is quite tough. Savings Savings is the most secure way of repaying personal loans. These help people who have no prior investments. Make sure you save a particular sum of money from your monthly income to repay your loan. Take help of debt-consolidation It is the practice in which one takes a new loan to repay his/her existing loans. It is a great way to reduce the burden of over-debt. This method comes in helps if one has multiple debts to repay. Collect all your loans together, such as home loans and so on, and combine them into one single loan. This single loan can be paid at the end of every month at a fixed interest rate. Talk to the lender There are some loans one cannot avoid. Such loans are essential for life activities such as education loans. The tenure for such loans is generally higher as compared to the other ones. This, in turn, increases the interest rate too. Therefore, one should try to convince the lender to decrease the repayment tenure. This is not a difficult task as institutions generally fulfil the request of people with high CIBIL scores. One could repay the amount quickly if the tenure is less. A loan with a higher interest rate is crucial If an individual borrows a sum at a higher interest rate, that particular loan becomes a priority. All other loans should then be kept aside. Focus on that particular sum. Try to repay the instalments as quickly as possible. Ignore other loans for a while. This will enhance the quick payment of that debt. [B-02] Conclusion One should avoid taking unnecessary loans to save oneself from debt burden in the future. Keep in mind to only avail of essential loans such as education loans, home loans, and so on. Follow the above guidelines to recover from unnecessary debts quickly. Also, please visit Piramal Finance to avail of loan facilities or read more blogs like this.

08-11-2023

Personal Loan

Popular personal loan myths you should ignore

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

08-11-2023

Personal Loan

How To Get A Personal Loan For Students In India

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

08-11-2023

Business Loan

Collateral Free Business Loan for Traders

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

08-11-2023

Personal Loan

Top 15 Personal Loan Finance Companies in India 2022

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

08-11-2023

Personal Loan

Should You Opt for a Personal Loan for Home Renovation?

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

08-11-2023