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Personal Loan

Fixed vs. Reducing Balance Loan EMIs in 2022

Home loans in India have become very affordable today thanks to the growth of both public and private sector banks, non-banking financial institutions (NBFIs), cooperative banks, and other financial institutions. According to the website www.livemint.com, the strong monsoon of 2022 has given a strong push to the demand for home loans in 2022, especially in Tier 2 and Tier 3 cities. A news report on business television also stated that home loans in 2022 rose to over Rs. 18 thousand crores, a 16% growth over the previous year. It is thus clear that post-pandemic, the appetite for home loans shown by Indian consumers in 2022 is growing at a fast rate. [B-01] Types of home loans in India There are two types of home loans that you can apply for: Fixed balance loans Reducing balance loans In this blog, we will show you how to get the maximum benefit out of your home loan by deciding on the type of repayment structure (called “Equated Monthly Instalments – EMIs“) that you should choose. Equated Monthly Instalments (EMIs) You have purchased your dream home by taking a home loan, which you need to repay with interest. You have to pay back a fixed amount every month for the duration of the loan period, which is calculated in “number of years.” This monthly repayment is called an “Equated Monthly Instalment” or EMI. Types of EMIs When you select your loan, you are presented with two repayment options: A fixed interest rate EMI A reducing interest rate EMI You should know the difference between these two types of EMIs to make the best decision for your home loan requirements. What is a Fixed Interest Rate EMI? In a fixed interest rate EMI, the rate of interest is the same for the entire loan period (called the “tenure”). The interest for the entire tenure is calculated at the start of the loan period. What is a Reducing Interest Rate EMI? In an EMI with a reducing interest rate, the interest amount is variable, depending on the principal amount that is outstanding based on the current interest rate. How do you calculate your EMI under both options? You can determine the EMIs payable under both options by using the following formulas: Fixed Interest Rate EMI Interest to be paid = (Loan principal amount x total duration in years of the loan x interest rate per annum) / total instalments Let us assume that you have taken a loan of Rs. 1,00,000 for one year at a 12% rate of interest Under the Fixed Interest Rate EMI method, the interest is calculated on the principal amount. The interest amount – Rs. 12,000 – is added to the principal amount, giving a total loan value of Rs 1,12,000. This amount is divided by the total number of instalments Thus, the EMI payable is Rs 1,12,000 / 12 = Rs 9,333.33 Reducing Interest Rate EMI Interest to be paid on each instalment = The remaining loan amount x the interest rate that is applicable for each instalment In our example, under the Reducing Interest Rate EMI, the interest is calculated on the total amount outstanding at the beginning of each month. As the total amount decreases, the EMI also decreases accordingly. In this example, the total interest amount is Rs. 6,619, and you need to repay a total of Rs. 1,06,619 after 12 months. Therefore, your EMI will be Rs. 1,06,619 / 12 = Rs. 8,885. As you can see, the EMI and total loan repayment are lower under the Reducing Interest Rate method. What factors affect EMI calculations? According to the Economic Times, the EMI on your home loan depends on the following three factors: The loan amount: the total amount that you have borrowed The interest rate: the rate at which interest is charged on the amount that you have borrowed The duration of the loan: the time frame in which you have to repay the entire loan (principal + interest). This is mutually agreed upon between you as the borrower and the lender [B-02] Pros and Cons of Fixed vs. Reducing Balance Loans in 2022 Here are the important pros and cons of both EMI types that you should keep in mind when deciding which will work better for your home loan repayment: Fixed Interest Rate loans The biggest advantage is that the monthly amount to be paid does not change throughout the loan period. This helps you better plan your monthly budget The interest rate is also fixed and does not fluctuate up or down with changes in interest rates announced by your bank However, the same benefit of a fixed interest rate can also be a disadvantage because you could pay a higher rate of interest even if your bank reduces its interest rate. While the interest rate could be lower in Fixed Interest Rate loans, the EMI amount that you pay will also be higher. Reducing Balance Rate loans Under this method, you pay a lower interest rate over time because it is calculated on the principal amount that has to be repaid. Thus, the interest on your loan will gradually reduce. However, the interest rate in this method is more complicated The EMI amount that you pay is also not a fixed amount for the entire loan duration, and this could lead to complications in your annual budgeting or financial planning. [B-01] Conclusion Home loans are a necessary and convenient way of financing your house purchase. Regular instalments, known as Equated Monthly Instalments, or EMIs, are the way in which you pay back your loan, over a fixed period of time. However, you must decide on the best method of EMI payment—whether Fixed Interest Rate EMIs or Reducing Balance Rate EMIs. This decision should be made as per your home loan requirements, and you must always consult your financial advisor to make an informed decision. Visit https://www.piramalfinance.com/ to learn more about how to choose the best EMI method to repay your home loan easily and conveniently, without breaking your savings or finances.

08-11-2023

Guide

What Is Compound Annual Growth Rate

The compound annual growth rate is the rate of return on investments for a specific period. CAGR is the best way to calculate the accurate rise and fall in investment as it finds the rate of return and helps in the comparison of multiple stocks. With CAGR, a person can see which stock did the best in the market index and even judge the best way to invest. You can compare overall investment and year-end investment growth. But it must be noted that it does not reflect the risks of investments. [B-01] Purpose and Meaning of CAGR The main purpose is to define the profit earned from investment. The compound annual growth rate helps one make a sound financial decision. It tells you the growing distance between the whole year and the year-end investment. However, the right investment provides a profit at the end of the year. The compound annual growth rate is better for smooth results. How to Calculate Compound Annual Growth Rate Anyone can calculate the compound annual growth rate using the formula below: CAGR = [(EV/BV) 1/N – 1) X 100 Where: EV stands for ending value RV stands for beginning value n stands for the number of years You can follow these instructions for CAGR calculation: Calculate the ending value with the starting value Divide the result by the number of years Subtract the result from 1 Multiply the result by 100 to convert it into a percentage Examples of Compound Annual Growth Rate The example is based on assumptions. Let’s assume the investment is $10,000 in a portfolio with the below-mentioned returns: From 01 January 2017 to 01 January 2018, the portfolio grew by $3,000. That is a 30% growth in one year ($10,000 to $13,000). On January 1, 2019, the portfolio was raised to $14,000 (a 7.69% rise in one year). On January 1, 2020, the portfolio was raised to $19,000 (a 35.69% rise in one year). You can see the low growth rate in 2018-19. But it rose in 2019–2020 using compound annual growth rates. The overall CAGR is 28.86% and can be calculated using this formula: CAGR = ($19000/$10000)1/3-1 X 100 = 23.86% This compound annual growth rate can help in future decisions. Any investor can compare shares or bonds and can assess rises and falls. For example, if one share is rising and another is falling, the investor can use the compound annual growth rate and smooth the movement. They may invest or choose to take the risk. Here is another example: Mr. A bought 55 shares in January 2018 at $1,100 per share. The total investment is $60,500. After 3 years, in January 2021, the current price per share will be $3,200. Now the investment is $176,000. The calculation using the formula is: Starting amount = $60,500 Ending amount = $176,000 Number of years = 3 CAGR = [(176000/60500)^(1/3)-1 = 35.69 This is how to calculate CAGR on investment. Additional Uses of the Compound Annual Growth Rate These are some of the additional uses of the compound annual growth rate: CAGR can calculate the return on single investments. CAGR can smooth the return in an inconsistent growth period and help in steadying growth. CAGR can predict changes and save the investor’s money with the right calculations. Track Performance With CAGR Compound annual growth rates can track performance. You can use the formula with the starting and ending investment amounts and the number of years to get the result in percentage form. For example, a five-year period of supermarket sales shares using CAGR is 1.82%. But customer satisfaction is -0.55%. In this way, the compound annual growth rate can show the highs and lows of a company. Detect Strengths and Weaknesses Using CAGR You can calculate the CAGR of other companies, compare them, and predict their rate of return. This practice will help you find the strengths and weaknesses of a competitor. You can raise your returns with positive measures, provide the best services to customers, raise your share value, and help you earn extra returns on your investment. How Do Investors Use CAGR The investor uses the compound annual growth rate to assess returns. The formula calculates past and present returns and helps predict future gains and losses. The calculation can turn a complex history into a simple percentage. It helps with comparison and improves decision-making. Here is an example: Suppose an investor needs $55,000. He gave me $15,000 to invest for the best returns. So, how much is the rate of return to turn $15,000 into $55,000? Investors will use this formula to find the answer. CAGR = [(55000/15000) – 1 x 100 = 5.66% The investor has used the formula to find the returns. Now, the investor is free to compare and invest. What Is a Good Compound Annual Growth Rate Every investor uses a different context for CAGR calculations. Mostly they use two factors: opportunity cost and risk in the investment, and these two factors are important for good returns on investment. For example, a company’s industry rate is 30%, but its CAGR is 35%. But another company’s industry rate is 10%, and the compound annual growth rate is higher. In general, a higher CAGR brings higher returns on investment. The CAGR may go into negative numbers, and this indicates a loss in investment. [B-02] Conclusion The compound annual growth rate helps assess return earnings over investments and helps in the return calculation for a specific period. It can compare past and present performance and also help predict future rises and falls to save investors from losses. The compound annual growth rate might not be 100% accurate but it does provide an idea of investment decisions. You can reverse the formula and get your desired results as well. For more information on the meaning of CAGR, visit Piramal Finance for similar articles and more information and guidance.

08-11-2023

Personal Loan

Personal Loan For Low CIBIL Score And How To Improve Credit Score

A personal loan is the best way to meet unexpected financial needs. When you apply for one, the CIBIL score is the first thing a lender checks. Acquiring a personal loan for a low CIBIL score can be challenging. But this is not impossible. You would be required to make some changes to get the loan. But the best option is to improve your credit score. This will open opportunities for you to take loans in the future easily. Read through this guide and get all your answers quickly. [B-01] Understanding CIBIL Score CIBIL score is a measure of your creditworthiness. Credit Information Bureau (India) Ltd is an institution that calculates credit scores. It is a credit rating agency authorised by RBI. The CIBIL score rangess from 300-900. A score above 700 is considered daily good for a loan. Any score below 500 can lead to the rejection of the loan request. A personal loan for a low CIBIL score is not easy to acquire. The following points are included in calculating credit score: Payment history for 30%. Credit exposure for 25% Credit type and duration for 25% Other factors like an active loan and number of queries for 20%. Top reasons for low credit score The CIBIL score comprises four things. A delay in fulfilling any of these can cause a low credit score. The top factors are: Poor payment record for the existing credits. It can be delayed repayment of loan EMIs or credit card instalment. Frequently paying partial EMIs is a reason for low credit scores. Submitting multiple applications for new loans and credit cards can have a negative impact too. Rejection of a credit application increases the chances of a low credit score. A high credit utilisation ratio causes low credit scores. A poor mix of credit choices also lowers the credit score. A low credit score can result from an error in credit calculation. Factors considered for a personal loan A personal loan is an unsecured loan. You can use it to meet multiple financial needs. This loan is one with quick processing and disbursal. The factors that impact personal loan approval are: Your income CIBIL score Employment history History of previous loan repayment Relationship with the bank Amount required Age Debt-to-income ratio But a personal loan for a low CIBIL score is usually rejected. Lenders avoid this due to the risk of non-repayment. But there are some tips through which personal loan for low CIBIL score holders is possible. Tips to get a personal loan for a low CIBIL score If you want a personal loan for a low CIBIL score, here are a few tips: Go for a smaller amount A small personal loan for a low CIBIL score is the first solution. A lender will consider you a risk if you apply for a high amount with a low credit score. But if you reduce the number of applications, the chances of approval increase. Most of the time, the lender communicates the amount it can approve. You can consider the same and apply for a lower personal loan for a low CIBIL score. Apply with a guarantor You can apply for a joint loan. Getting a co-applicant to acquire a personal loan for a low CIBIL score is a great solution. The lender will consider the details of both applicants. This will offer you an opportunity to get a high-value loan too. Also, the co-applicant will share the responsibility of repayment. This will help you to improve your credit score as well. Present proof of income to support repayment A big concern with lenders is the repayment of loans. If you apply for a personal loan for a low CIBIL score, the risk of non-repayment is high. The solution is to present an income source to support your repayment schedule. You can share the details with proof if there is an increase in income. This will increase the approval probability. Check for errors in the credit report There might be errors in the credit report. You can spot those errors and raise a query with CIBIL. Reporting such errors can help you to increase your credit score. Ensure that you have the necessary information on your report when you apply for a personal loan for a low CIBIL score. Check with another lender Sometimes, banks might not approve a personal loan for low CIBIL scores, but other financial institutions will. You can go for NBFC or private finance and get your loan. There might be a change in interest rate. But the chances of approval are high. Tips to improve CIBIL score If you are facing issues with applying for a personal loan for a low CIBIL score, you can try to increase the same. Some of the tips that you can use to improve your CIBIL score are: Check your Credit Report Start with checking your credit score. See if you can rectify any errors. Ensure to get the error is rectified at the earliest. Pay outstanding bills Make sure that you pay off all your credit bills on time. You should make sure that there are no lapses in EMI payment. Credit use An important factor that can improve credit scores is improving credit use. You should use only 30% of the credit available to you. Overuse of credit impacts your score. Maintaining credit use can help in improving scores. Use old cards or accounts You should avoid closing your old cards and accounts. Since you are already using these cards for a long time, it’s better to keep them used. This will help you build a good credit history. Have proper credit max If you wish to apply for a personal loan for low CIBIL score, you should have a proper credit mix. A proper weightage and mix of different credit options will help improve your credit score. Limit the number of hard inquiries Multiple credit applications lead to hard inquiries. The higher number of hard inquiries will increase the risk of low credit scores. It will reflect that you are dependent on debt more than income. Avoiding many hard inquiries quickly will help improve your credit score. Consolidate your debts If you have multiple debts, consolidate them. You can pay it off by using a personal loan. Keeping limited debts in your portfolio is always a wise decision to make. [B-02] Conclusion A personal loan with low CIBIL score is hard but not impossible. You can still take the loan you need with proper planning and time. You should always look for alternatives or solutions in such cases. The best is always to improve the CIBIL score. Simple tips can easily improve your credit score. Building a good credit habit is indeed the key to your problem. Maintain a good credit mix and avoid overspending to start with. This will improve your credit score. Also, you can visit Piramal Finance to apply for a personal loan for low CIBIL score. It’s a quick, simple, and efficient process that will save you time and offer you the funds needed.

08-11-2023

Credit Score

Does a Gold Loan Increase a Credit Score Fast?

Gold loans have become quite a rage in India over the last few years. The country’s burgeoning gold industry has increased demand for loans against the asset. It has resulted in banks offering several such loans, which individuals, as well as businesses, can avail of. In this article, you will find out whether a gold loan can help improve your credit score and the other benefits of taking a loan with gold as collateral. [B-01] What is a Gold Loan? A gold loan is a loan wherein the borrower sells gold to the lender and receives a loan against the same. The borrower provides gold on a pledge, and the lender exchanges the loan. It is one of the oldest types of collateral, which is why gold has been used as currency for so long. The gold loan has become popular again due to the increasing demand for bullion in the country and the low interest rates on offer by banks. How Does a Gold Loan Work? The gold loan works on the principle of pawnbroking. It means that the lender takes possession of the gold and holds it as security for the loan. The borrower is responsible for paying interest on the loan amount. This interest is charged as per the prevailing interest rate of the lender. The borrower pays interest on the loan amount plus the principal amount of the gold. Gold loans are popular again because of the increasing demand for gold in the country. Can Gold Loan Improve Credit Score Fast? If you’re looking to improve your credit score fast, a gold loan might be your best option. A gold loan is a small, short-term loan that uses gold as collateral. It means that the lender has access to your gold, and if you fail to repay the loan, they can sell it at auction. Because a gold loan is a short-term loan, it’s good for improving your credit score. It is because short-term loans are usually considered less risky than longer-term loans. And, given that a gold loan is a low-risk commitment, it is a viable option to improve your credit score. It would help if you had good credit to get a gold loan – meaning your credit score should be above 650. It would help if you also had enough gold to collateralize the loan. And finally, you need to agree to pay the loan back within a set period. Because a gold loan is considered a low-risk loan, you won’t have to worry about high-interest rates or other penalties. What is a Credit Score? A credit score is a numerical rating assigned to an individual or a business by a credit report provider. A credit score is a reference that lenders use to decide whether to accept a loan request. A credit score is a three-digit number between 300 and 850. The higher the score, the higher the chances of getting a loan. The credit score is calculated based on the following factors: Payment history: How much have you paid on loans in the past? Credit utilisation: How much of your total credit limit have you used? Length of credit history: How long have you been taking credit? Payment speed: How quickly are you repaying your existing loans? Credit mix: How many different types of credit do you have? How to Improve Credit Score with Loan? A good credit score is essential for anyone looking to borrow or take out a credit card. Fortunately, there are several ways to improve your credit score. Here are four tips: Pay your bills on time: This is the most important step; if you can’t pay your bills on time, your credit score will suffer. Make sure to pay all your bills on time each month, and keep track of how much you’re borrowing each month so you know where you stand. Keep your credit reports clean: If any accounts have been cancelled or closed, update your credit report as soon as possible. It will help improve your score because it shows that you’re taking responsibility for your actions. Use a credit card responsibly: Don’t use your credit card to buy things you can’t afford; this will damage your CIBIL score. Instead, use it to buy things you can afford and pay off the balance in full each month. Get a gold loan: A gold loan is a type of loan that has low interest rates and a limited prepayment penalty. It is a good option if you want to quickly improve your credit score. Many Benefits of Gold Loan There are various advantages to taking a gold loan. Some of them are given below: A secure transaction – Gold has been used as a currency for thousands of years. It has therefore been considered a secure investment for a long time. Therefore, using gold as security for a loan is a secure choice. When you take a gold loan, you already have an asset you can sell in case you’re unable to pay off the loan. Easy access to money– A gold loan is akin to an equity investment in terms of ease of access. The process of getting a gold loan is relatively faster. It takes less time than a personal loan. It is so because you’re keeping gold worth the entire value of the loan with the bank. Relatively low-interest rates – Banks’ low interest rates make gold loans quite attractive. Banks usually allow interest rates between 5% and 9% per annum. In comparison, most personal loans come with an interest rate of around 10% or above. Loan repayment flexibility – The loan term is usually between 6 months and a few years. Unlike other types of loans, gold loans can be repaid in installments. Why Is Gold Loan in Demand Right Now? The demand for gold in the country is increasing due to the high inflation rate in the Indian economy. People are therefore buying gold as a store of value. This gold loan demand is also boosted by the strong Indian rupee, which makes gold loans even more attractive. Moreover, the falling prices of crude oil have led to a decrease in the price of gold. This has made gold loans even more attractive. The high inflation rate, low crude oil prices, and increasing demand for gold loans have led to a spike in the price of both gold and the Indian rupee. [B-02] Conclusion Gold loans are one of the oldest forms of collateral. They work on the principle of pawnbroking, and the borrower pledges gold as security for the loan. The lender advances the loan in exchange for the gold. Given that gold loans are often taken for short durations, they can easily improve your credit score. At the same time, it is also a safer way when compared to a personal loan. With gold as collateral, there are limited risks involved for both the borrower and the lender. If you have any questions about gold loans or credit scores, you can read the detailed blogs available on the Piramal Finance website for detailed answers.

08-11-2023

Everything You Need to Know About the EMI Network Card in 2022

With so many things on the market, it’s more tempting than ever to buy, but it’s also easier than ever to spend more than you should. There are some of the best appliances, gadgets, and household items on the market, but they are often very expensive. But we don’t let the high prices stop us from buying the things, especially since we have options like cost-effective EMIs to spread out the payments. It’s easy to buy on EMI, and it’s even easier when there’s no interest to pay on the EMI. Many online and offline stores in India, like Flipkart, Amazon, Vijay Sales, Chroma, and others, accept the new EMI Network Card. You can choose no-cost EMIs when you use an EMI Network Card, which means you won’t have to pay too much out of your pocket. The cost of the purchase can be spread out over many months with small payments, giving you more money to invest or spend on other things. [B-01] The Convenience of Making Purchases Online The ability to purchase online at any hour of the day or night, avoid the hassle of struggling through crowds, and save time are three of the many benefits that make online shopping pleasant. The EMI Network Card might be an excellent choice for a financial instrument if you are interested in purchasing the most up-to-date consumer goods, furnishings, or appliances, among other things. You can make interest-free monthly payments on a wide range of different items if you use this card. The EMI Store provides several advantageous features, such as no initial payment required, no interest charged, cash back, and free delivery right to your home. The Network Card is accepted at the checkout of thousands of online stores all around the globe. Buying Things at the Shop is an Easy and Uncomplicated Process Although it is now easier than ever to shop online, there are still certain things, like sofas and appliances, that are better off being bought in person. By using the EMI Network Card at partner stores like Chroma, Reliance Digital, Vijay Sales, and many more, you will have the opportunity to get the most recent and cutting-edge products in easy monthly installments (EMI). You may be eligible to get interest-free payments with this card, in addition to a variety of savings and cash-back options. You may discover a wide variety of lifestyle partner businesses in a variety of locations, which is convenient if you’re looking to do some shopping quickly and at a reasonable cost. Spend Up to 4 Lakh Rupees If you are in the market for a new washing machine or a television with a large screen for your living room, you should be aware that these purchases could put a significant dent in your monthly budget. It allows you to spend up to Rs. 4 lakh, which enables you to get the most recent technological devices into your house. If you have been putting off purchasing a new piece of fitness equipment or air conditioner because of your monthly budget, now is the time to make the purchase and save money without feeling guilty about it. Lengthy Lease Terms, With No Late Fees or Other Penalties Making purchases on no-cost EMIs for a wide variety of goods, including electronics, can be made easy and cost-effective with the use of this card. When you get your card, you’ll have the option to tailor the payback period (which can be as long as 24 months) to your specific requirements. After the initial monthly installment has been paid, there are no additional costs associated with paying off the loan early. Online Registrations Made Simple The card was designed to be compatible with contactless payment systems, making its usage speedy, uncomplicated, and risk-free, not just in physical but also in virtual retail establishments. To apply for the card, all you need to do is make three simple clicks. The whole procedure may be completed digitally and quickly. Your membership card will be sent to you as soon as the membership fee has been paid and the required “Know Your Customer” documentation has been submitted. Make Use of it Both Online and Offline The EMI Network Card, much like other debit and credit cards, can be used to make purchases in-store or online, just like any other debit or credit card. Whether you prefer to shop in person or online, you can use this EMI card to make purchases at your preferred retailer. Simply providing the salesperson with your card information to pay with EMI is required whenever you make a purchase in a physical store. You can choose the EMI option when you are purchasing from an online store that accepts the EMI Network Card. After doing so, you will be able to choose how long you want to take to pay back the purchase, enter any other pertinent information, and then complete the transaction. It is even simpler if you submit your application online. If you are interested in applying, please check out our website or download our mobile app. As soon as you begin the application process, several questions concerning yourself and your background will need to be answered. Some of these are the fundamentals, such as significant documents and pertinent financial information. In addition, a fee of 530 must be paid in order to register. After the application process, you will be informed as to whether or not you have been accepted to receive an EMI Network Card. [B-02] Conclusion With an EMI Network Card in your wallet, you won’t have to make a lump-sum payment for expensive purchases like electronics and household appliances since you can spread out the cost over many months. If you can satisfy the few straightforward conditions, achieving this objective should not present too much of a challenge for you. Get the best EMI Network card with Piramal Finance.

08-11-2023

Personal Loan

Need Instant Funds? Opt For a Top-Up Loan

Do you want to know about top-up loans? Want to know about an instant loan? Why are top-up loans so important? Many individuals in today’s society want to purchase their own house one day. People who want to buy their own homes may make that happen with a top-up loan. However, to qualify for these loans, borrowers must first invest significant time and effort in locating the ideal place and organising their finances. After meeting the initial conditions for purchasing a property, a prospective buyer must make equal monthly payments on the principal amount of the mortgage loan (EMI). Even if a person already has a mortgage on their property, they will want more funds at some point. Many banks and credit unions allow current clients to refinance into larger mortgages during these difficult economic times. This top-up loan saves you from needing cash immediately in a pinch. If you’ve already applied for a home loan but want more funds, you should check your possibilities for a rapid top-up. [B-01] What exactly does it imply when someone claims they are receiving a “Top-Up Loan on a Home Loan,” and why would they be able to do so? A second mortgage is an additional debt taken out on top of the first mortgage. It is also known as a top-up loan. It may, for example, be used to expand an existing company, pay for unforeseen medical expenditures, take a much-needed vacation, pay for more education, and so on. You could put the money to good use. You may, for example, pay off this additional money by increasing your EMI significantly. Because so many banks provide appealing features with their instant loan, applying for a top-up housing loan may greatly benefit you. In the following paragraphs, I’ll go through several of these advantages in further detail. The Advantages of Obtaining a Home Loan Quickly Overly Long Payment Intervals The time it takes to repay a top-up loan is sometimes much longer than it takes to repay a personal or company loan. If you already have a house loan, you can get another with a shorter or longer term than the one you are now paying off. Because your EMIs will be lower if you have a longer time to pay off your loan, you will feel less anxious about it. Additional time to repay your loan will help you manage your money more effectively. In addition to the mortgage, the term of this second loan will always be at most 15 years. Fall in Interest Rates Mortgages are secured top-up loans with a lower interest rate than other loans. So, even if you pick the quick top-up option for your home loan, you can be certain that the interest rate on the additional funds will stay reasonable. It’s conceivable that the new sum will be quite similar to what you’re now paying. Cycle Times That Move Very Quickly One of the most appealing aspects of a mortgage top-up loan is the ease with which it can be paid off. Many banks and credit unions may allow customers to apply for a second loan after their initial loan request has been granted. Instant funds loans do not require a lot of additional documentation from those seeking them. Borrowers often get home loan advances within a few days after applying. More Loan Money Is Owed If you have made on-time EMI payments and have already paid off a significant portion of the loan’s principal, you may be eligible for a larger top-up loan. The lending organisation will consider your current credit score and history before choosing to provide you with an additional loan. Taxpayers Will Benefit from Tax Rebates and Incentives. The interest paid on an extra home loan used to pay for the acquisition of the main dwelling, the construction of a second home, the rehabilitation or repair of an existing primary property, or any of these items, may be deductible under Sections 24B and 80C. This happens if you pay for your property with a home equity conversion mortgage. Consult a financial adviser to learn more about these instant funds. Conditions Must be Completed so You Can Immediately Borrow Extra money on Your Mortgage. You can only apply for a top-up loan if you already have a bank account. If you are more than a year late on your EMI payments, the bank will only approve your application for a home loan top-up, and you will be able to get more funds for your mortgage. Use the instant fund’s eligibility calculator to determine if you are eligible for a house loan. The money will be transferred to the borrower as soon as the firm providing the top-up loan determines that all conditions have been met. How to Get a Quick Mortgage Loan A Step-by-Step Guide to Top-Up You should already be aware that you must be pre-approved for a home loan before applying for a rapid house loan top-up. Your bank may be able to provide you with an additional top-up loan, and you will not have to complete much more paperwork for this loan. A top-up loan allows existing clients to swiftly raise the principal amount of their home loans as long as they meet banks’ housing requirements. Housing makes these loans available to existing customers who fit the criteria and don’t mind a little paperwork. Another advantage is how simple it is to get your money. [B-02] Conclusion When more funds are required, but the borrower already has a house loan, the instant house loan top-up is an excellent option. Money may be spent in a variety of ways. This loan features a maturity date as well as a monthly payment schedule. This implies that the borrower may repay the loan in full at any time before the maturity date. Instant loans and instant funds offer a fast, simple, and trouble-free home loan top-up option. As a result, it is an excellent choice for any unexpected or urgent financial needs. For your best financial education, visit Piramal Finance.

08-11-2023

Personal Loan

Compare the current personal loan interest rates and fees

Most of the time, public sector banks offer the lowest interest rates on personal loans. Each lender’s current personal loan interest rates will be different. Top lenders list current personal loan interest rates starting at 10.49% p.a. It depends on the applicant’s credit history, monthly income, employment history, and other factors. You should look at the different lenders’ loan interest rates to find the most suitable loan offer. [B-01] Personal Loan Interest Rate Influences A borrower’s current personal loan interest rate from a bank or NBFC will depend a lot on the following important factors: Monthly Income The interest rate affects your EMI. The borrower’s net monthly income decides whether they will get a lower interest rate. Your employment status When compared to the interest rates, salaried people get low-interest rates. People who own their businesses are thought to have riskier credit profiles than those who work for MNCs on a salary. Companies in the private sector, or PSUs, The business you work for also affects the interest rate a bank or NBFC would give you on a loan. Banks offer lower interest rates to people who work for the top companies in the country. In other words, your chances of getting a loan with a lower interest rate are better if you work for a well-known or older company. Large Indian private sector companies like Infosys, Wipro, HCL, Tata Consultancy, Tata Motors, other Tata group companies, Reliance Group companies, Birla Member firms, and so on, as well as MNCs like Microsoft, Google, and so on, offer their employees better interest rates than these two smaller businesses. Several banks offer better interest rates to people who work for PSU. Your credit score or CIBIL Your CIBIL score is a big part of how much interest a bank gives you. With a higher CIBIL score, you are more likely to get a current personal loan interest rate with a lower interest rate. A CIBIL score of at least 700 is needed to get a personal loan. Payroll bank account Some lenders, like HDFC Bank, ICICI Bank, Axis Bank, and others, charge higher interest rates on personal loans to people with salary accounts because they know how those people use their bank accounts. Other elements The interest rate on your loan is also affected by the bank’s financing costs and how it generally runs. Personal Loan Interest Rates from Piramal Finance Interest rates at Piramal start are 12.99%. When you get a personal loan from Piramal Finance, there are no foreclosure fees. You don’t have to pay a fee for paying it off early. Less paperwork is needed, and the whole process is simple and quick. Personal Loan Interest Rates from HDFC Bank HDFC Bank is one of the biggest private lenders in the country. It has some of the lowest interest rates for personal loans. To manage a personal loan, HDFC Bank needs several papers. They have a quick process from loan approval to loan disbursement. HDFC enables easy to apply for a personal loan both offline and online. The most you can borrow from HDFC Bank is Rs. 50.00 LaKhs. The rates of interest range from 10.99% to 20.7%. Interest Rate on Personal Loans from ICICI Bank ICICI Bank is the largest private-sector bank in India. It is one of the biggest lenders of personal loans. Its interest rates on personal loans are very low. ICICI Bank makes applying for a personal loan easy and gives the money out quickly. ICICI Bank doesn’t need property, jewellery, or any other fixed or moveable item as security or a guarantor. The interest rate on a personal loan from ICICI Bank will always be 10.99%, no matter how long the loan is. Interest Rate on a Personal Loan from SBI SBI offers personal loans with floating or variable interest rates. SBI balances the loan every day and is paid back every month. The interest rate on an SBI personal loan is reset every year after the loan is approved. SBI has the power to change the interest rate on loans. Because of this, it could shorten or lengthen the length of the loan or raise or lower the EMI. For a personal loan, interest is charged at the then-current 2-year MCLR on a daily-decreasing balance with monthly breaks on the loan’s disbursement date. The current personal loan interest rate is set for the duration of the loan. Interest Rate on a Personal Loan from Axis Bank Axis Bank offers personal loans with options that are easy to use, such as very low-interest rates. The current personal loan interest rate at Axis Bank depends on the borrower’s employment situation. At an interest rate of 11.99%, the lowest amount you can borrow is Rs. 50,000, and the most you can borrow is Rs. 15 lacs. The loan application, documentation, and payment processes at Axis Bank are all very simple. Axis Bank does not charge any foreclosure fees on its loan. Rate of Interest on a Personal Loan from Yes Bank Yes Bank offers personal loans for any reason, such as a medical problem, a trip to the Americas, or a home improvement. Current personal loan interest rates from Yes Bank are very low, and the application process is quick, easy, and requires few documents. Yes Bank gives personal loans to people who work for a company and those who run their businesses. It gives doctors who are in practice a special interest rate. Yes Bank’s maximum personal loan amount is Rs. 25 lacs, and their maximum loan term is 5 years. [B-02] Conclusion Imagine that you want to get a personal loan. In that case, it’s a good idea to compare the current personal loan interest rate on a chart that lets you compare processing fees, lower or higher loan amounts, the length of the loan, foreclosure fees, part-payment fees, and many other personal loan features. By comparing offers from banks and non-bank financial companies (NBFCs) and other lenders, you can get a general idea of the different kinds of offers on the market. This will help you negotiate with banks or get a personal loan with a lower interest rate. If you want more details on the current personal loan interest rate then you must visit Piramal Finance now.

08-11-2023

Personal Loan

Festive Makeover For Home With A Personal Loan

Redecorating your house is fun. But you need funds to do the same. In such cases, a personal loan is a great option. Personal loans during festive loan offers can provide you with multiple benefits. It can offer you better interest and quick disbursal. Many people borrow personal loans based on their needs. People use personal loans for home renovation or even celebrations. The reason is the quick approval of the personal loan and a low-interest rate. Read through this article and learn more offer about festive offer loans. [B-01] Reasons To Go for Personal Loan Festive Loan Offers For A Home Makeover The cost of home renovation increases during festivals. There are various expenses that you are needed to focus on. From managing the cost of home painting to buying house decor, home renovation can burn a hole in your pocket. In addition to the costs of restoring your home, there are a few other charges. It can be the personal expenditure price or planning a party. This is one of the reasons to opt for festive loan offers. These personal loan offers are designed to meet your immediate funding needs. Such loans are unsecured. The interest rate may be a bit high, but disbursal is quick. Some financial institutions also offer online personal loan facilities. You can check the festive loan offers and apply online. This saves time and helps you to get quick funds. The top reasons to apply for a personal loan for a home makeover are: Quick approval The festive loan offers are usually based on your credit history and relationship. Owing to a good relationship, you might get this offer. Also, sometimes additional perks are offered to attract a substantial number of new customers. Convenient and fewer charges Some lenders might reimburse loan processing fees. As a result, the borrower may receive a personal loan with a reduced interest rate. These conveniences are only available during the holiday season. If you want to save money on your home interior loan, you should take advantage of them while they are available. No collateral needed A personal loan is unsecured. There is no need to submit collateral or security. You can process the loan with simple documentation. It just needs a day or two for disbursal post-approval. To meet your increased budget The budget during festivals is usually high. The expenses are more, and you need more funds to meet them. It is why to go for festive loan offers on a personal loan. The fund that you receive can be used for multiple purposes. It can be used for a house makeover, festival planning, and much more. Allows better planning for renovation Personal loans are more accessible during the holiday season. Due to festive loan offers and attractive interest rates, it is a great time to go for a home makeover. This is true even for persons who are hesitant to obtain loans. You can purchase anything you wish with this personal loan. This helps you to plan your renovation in a better manner. Easy repayment option Personal loans with festive loan offers can extend up to 5 years. This makes EMI manageable. Also, most lenders do not charge any foreclosure or prepayment fees. This decision can help you go for home renovation without the risk of financial burden. Which Is Better: A Personal Loan Or A Home Renovation Loan? You might get festive loan offers for both personal and home renovation loans. But the question arises as to which one is the best. In the end, the funds from the loan will be used for home makeovers only. Here are some points that can help you make a decision: A personal loan gets approved quicker than a home renovation loan. Personal loans have simple eligibility criteria. Home renovation loan eligibility criteria are comparatively stringent. You can complete the personal loan process online. You will most likely be required to visit the branch for a home renovation loan. A personal loan requires no collateral, whereas a home renovation loan is backed by collateral. Comparing all the points, getting a personal loan is better. The festive loan offers on a personal loan can offer benefits in the interest rate and processing fees. Additionally, there is no risk of collateral being kept with the bank. So, going for a personal loan is a better choice. Benefits Of Personal Loan Here are some benefits of applying for a personal loan: A personal loan allows you to use the funds for any purpose. It is much less complicated and time-consuming. Anyone can apply for a Personal Loan online by visiting the lender’s website. The application process is simple. You can complete the application in minutes. The documentation needed for personal loans is very basic. There is no need for any collateral. The festive loan offers on a personal loan can offer better rates and low processing fees. Tips To Use Personal Loan For A Home Makeover Once you have applied for a personal loan, there are plenty of ways to use it. The festive loan offers you an opportunity to redecorate your house using a personal loan. Here are some tips: Start with the entrance of your house. Give a complete makeover to your kitchen. It’s time to go for a modular one. Add a unique feel to your interiors. Change the wall colour and furniture to go for a new decor style. Adding lights to brighten up the festival can be a great idea. You can go for upgrading your home appliances. Changing the garden’s look is also an option. [B-02] Summing Up Everyone wants their home to be clean, decluttered, and ready at least a few weeks before the festivities begin. With the festive loan offers, it can offer you great benefits for a home makeover. Not only that, you can use the excess fund to pay other debts, if any. You can visit Piramal Finance and read more about festive loan offers on personal loans.

08-11-2023

Cards

Top 5 Benefits of Using a Visa Credit Card

There are numerous credit cards on the market, and it has become hard to know where to start! Visa credit cards are the most popular option available on the market. If you’re looking to switch or open a new credit card, there are many reasons why Visa can be an excellent choice. They offer various advantages over other cards. Here are five compelling reasons that highlight why it’s essential to use a Visa credit card instead of its competitors. [B-01] 1. A Visa Credit Card Offers Worldwide Acceptance. A credit card is an easy way to pay for the things you buy. There are many different types of cards, but the most common one you will find is a Visa credit card. Visa credit cards offer worldwide acceptance. It means you can be anywhere in the world and might be dealing in any currency, yet as long as your purchase is processed with your visa card, it will be accepted. Visa credit cards are accepted worldwide and are accepted at over 38 million locations, including restaurants, grocery stores, gas stations, casinos, and ATMs, in more than 200 countries. It also gives you 24/7 access to emergency cash worldwide by withdrawing funds from ATMs. In addition, when using your Visa credit card, customer care service is always there for you, both online and by phone. 2. Visa Credit Cards are Convenient and Easy to Use. Visa credit cards are convenient and easy to use. They can be used in most places that accept credit cards, even internationally. There is no need to carry cash or get stuck somewhere without the ability to pay. If you lose your card, you have to call customer service, and they will cancel it. A visa credit card is convenient as it eliminates the hassle associated with payment, like queuing up in lines. It makes transactions easier by having a PIN and security features like the check and balance feature, which is offered by most banks using internet banking systems, thus making transactions simple and safe. Visa credit cards also offer 24/7 fraud protection when you report unusual activity on your account. When checking out, look for the contactless symbol, tap your Visa credit card, and collect your receipt for a fast, easy, and secure checkout. Your transactions will be faster than ever with just one touch of your finger. Additionally, Visa comes with promotional offers like no fees for international purchases and ATM withdrawals worldwide. It implies that there is more money left in your wallet to spend how you want. Click on 7 Benefits of Using a Visa® Credit Card (macu.com) for more information. 3. Visa Credit Cards Offer Safety and Security. Visa credit cards offer safety and security for the cardholder and the merchant. They are accepted worldwide and backed by an international financial institution, so you can make transactions without worrying about fraud or chargebacks. You can quickly access your funds through an ATM or by transferring money from your account to another bank. The design of Visa credit cards is also very convenient because it’s easy to swipe the card at any store or restaurant, eliminating the need for cash or checks. Most importantly, Visa gives you a 100% refund on all fraudulent charges if you report them within 60 days. Unlike other credit cards, this one has no hidden fees and no annual fee. There’s even an EMV chip that provides added protection against counterfeiting. And when you use your Visa credit card responsibly, you’ll receive promotional offers that can save you more money in everyday life. Click on Credit Card Benefits: What Are the Benefits of Credit Cards? | HDFC Bank for more details. 4. Visa Credit Cards Can Help You Build Your Credit History. Visa credit cards can help you build your credit history. Each time you make a purchase, it adds to the amount you owe on your card. The goal is to pay off your balance due every month to avoid paying interest and late fees. That way, you’ll build an excellent credit history if you consistently pay your balance in full and on time. That can help you receive better interest rates when you decide to get a mortgage or loan. A good credit score can also make your life easier in ways that only come from having excellent credit. Credit scores are generated by organizations like CIBIL based on how prompt you have been in repaying your credit cards on time. In the future, having a good credit score will make it easier for you to obtain credit cards and loans. 5. Visa Credit Cards Let You Set Recurring Payments and Earn Rewards You should use a Visa credit card because it lets you set recurring payments. That way, you can pay your monthly bills on time and in full. It can be helpful for people who need to budget their money. Plus, you can set up automatic billing for extra safety so that the card takes money out of your checking account every month. Further, a Visa credit card lets you earn rewards on almost anything you buy. Most cards give cash-back rewards, which means your money can go towards paying off purchases or funding your checking account when it’s time to pay bills. Some Visa cards even let you choose what reward level you want, whether cash back or points. There are also some with no fee, so if you’re interested in earning rewards without worrying about an annual fee, those can work for you too. [B-02] Conclusion If you’re not using a Visa credit card, it’s time to switch. Not only does it offer all the benefits mentioned above, but these cards can also be used globally for online shopping, giving you more options than other cards. Plus, there are many different types of Visa cards to choose from, so you’re guaranteed to find one that suits your needs and lifestyle. Visa credit cards will make your life easy, comfortable, and secure. For more information about a Visa credit card and owning one, visit Piramal Finance.

08-11-2023