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Mutual Funds

What Is SIP and How to Use SIP Calculator?

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

08-11-2023

Other

What Are The Reasons To Write A Cancelled Cheque

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

08-11-2023

Personal Loan

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

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

08-11-2023

Banking

Complete Guide To Check Your Bank Account Balance On Your Phone

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

08-11-2023

Personal Loan

How To Get An Instant Personal Loan Online In India

The way you bank these days is quickly changing. The process is becoming less paper-intensive and more timely. With the ever-increasing need for instant cash for medical crises, acquiring a vital asset, wedding or trip expenditures, automobile or house repair bills, or any unforeseen incident, the demand for rapid online loans is also expanding. Due to the fast application process and rapid processing period, an online instant personal loan is becoming more popular. [B-01] What is an Instant Personal Loan? Instant personal loans are unsecured loans made available by many banks and NBFCs with rapid approval, payout, and little to no paperwork. These loans are granted quickly without any collateral. Many lenders provide instant personal loans online in current times. Depending on your credit history, lenders often provide pre-approved loans to a specific group of current clients. As these loans are pre-approved, many lenders may provide them without additional paperwork. Features of an Online Instant Personal Loan Here are the features of an online instant personal loan: No Collateral Required These personal loans are unsecured. Thus, if you apply for an instant loan, you won’t need to provide any security. Quick Payment Applying for an instant loan is advised if you want money faster. Once your form is accepted, the cash will be sent to your account within no time. Quick Process Instant loans process far faster than traditional loans by a considerable margin. Flexible Loan Terms You are often given a flexible loan term when you apply for an instant loan. So long as you stay within the maximum loan payback time set by the lender, you may pick a payback period that suits your needs. Papers Needed for an Instant Personal Loan Online Application The papers required to apply for an instant personal loan online are listed below. Identity Proof: You must provide an Aadhar card, PAN card, driving license, or passport as proof. Address Proof: This includes utility bills such as energy, water, phone, or your passport. Photo Proof: A passport-size photo of you. Salary Slips: The most recent pay stubs from your workplace are necessary. Bank Statements: You must produce salary credited bank statements. Eligibility Requirements For an Online Instant Personal Loan You must fulfil the lender’s eligibility needs to get your loan form accepted. The following are the standard qualifying rules for applying for an instant loan: Credit Rating: To be eligible for an instant loan with a low rate, you must have a decent credit score. A credit rating of at least 750 is needed. Age All borrowers must fulfil the lender’s age limits. The age restrictions may differ depending on whether you are a paid employee or a self-employed person. Check the age criteria of banks/money firms that provide instant loans. Occupation Summary Most lenders provide instant personal loans to both salaried and self-employed people. How to Apply For An Instant Personal Loan Online Determine your eligibility and choose a personal loan plan Fill out a few simple pieces of data to see whether you qualify for fast loans and a credit line. A credit line is the maximum amount of money you may borrow from a lender. You may pick the loan amount after you have received your credit line to pick your loan plan and choose the optimal combination of loan lengths and EMIs. Upload your KYC papers You must attach a few papers to complete your KYC and have your loan approved. You must also sign the loan agreement and a NACH form to activate the EMI auto deduction. NACH, which stands for National Automated Clearing House, is a centralized web-based payment system for bulk money deals controlled and monitored by the Reserve Bank of India (RBI). The NACH form guarantees that you stay caught up on your EMI payments. The best part is that the whole thing is paperless. After uploading all the needed papers, you will get approval within two hours. Complete the process After the loan is confirmed and the application process is completed, the funds will be sent instantly to your bank account. Tips Before Taking An Instant Personal Loan Online Before you apply for an instant personal loan online, you should compare the loans provided by many lenders. When analyzing instant loans, you should keep an eye on the following factors: Processing Fee Most money firms and banks often charge users a one-time service fee. You will have to pay extra for your loan if you are charged a hefty processing fee. Default Penalty The lender may impose a default penalty if you do not pay your EMIs on time. As a result, it is vital to compare the default costs imposed by many lenders. Rate of Interest The interest rate imposed by a lender might impact the total cost of the loan. As a result, before going to a specific lender, check the rate at which the loan is given. Pay Back Flexibility Choosing an instant loan allows you to make or before or part payments towards your loan balance. This is particularly if you want to pay it off before the end of the loan’s term. Loan Amount When comparing instant loan offers from many lenders, analyze the amount given. For example, if you want an instant personal loan online for Rs. 15 lakhs, you should only look at lenders that enable users to borrow up to Rs. 15 lakh. [B-02] Conclusion The banking industry has seen many developments in recent years. This includes an instant loan. This loan represents a vital change. Since the beginning of banking, applying for a personal loan has been a laborious process filled with worry, strain, and time waste. For these reasons, it was critical to establish a new kind of loan tool that would be simpler for people to obtain.

08-11-2023

Personal Loan

How to Calculate Personal Loan EMI in Excel

More and more individuals are turning to personal loans as a primary source of credit. People get these types of loans to cover unexpected expenses. They can be either short-term or medium-term. Personal loans are available without requiring collateral, but this will depend on your creditworthiness, earnings, age, and other variables. Personal loans offer attractive interest rates to borrowers. Plus, you can complete the paperwork procedure online for speedy loan disbursement. So, without further ado, let’s jump right into it! [B-01] How to Calculate Loan EMI Using Excel Once you are familiar with the formula, determining your EMI payments in Excel is quite simple. In addition, you can use free tools like EMI calculators present on the websites of most lending banks. In these, you can enter essential details like the loan balance, the rate of interest, and the time to repay the loan and immediately get the EMI amount you need to pay. Calculating your personal loan EMI using Microsoft Excel is very simple. For this, Excel offers a handy formula: PMT (rate, nper, pv, [fv], [type]). PMT is short for “payment,” and the value it generates is the monthly instalment payment on a loan. This function requires the following parameters: rate – The loan’s annual percentage rate of interest nper – The number of loan payments pv = current loan balance or outstanding loan amount fv – The money you hope to have on hand once you complete the final payment or its future worth. Its default value is the loan amount that remains unpaid after you’ve repaid all the loans. For this function to work, rate and nper must be of the same units. For example, to calculate monthly EMI, use the monthly interest rate rather than the yearly one. Take a look to see what we mean: Think about you’re taking out a loan of 20 lakh rupees at an interest rate of 12 percent per year for 25 years. If paid back in three equal quarterly payments: Rate = 12%/4 per quarter Npr = 25X4 EMI calculation in excel will be: = PMT(12%/4, 25*4, 20,00,000) How to Calculate Personal Loan EMI Using Mathematical Formula? No worries if you don’t have Microsoft Excel. You can still determine the EMI using a calculator or basic arithmetic skills. The formula often used to determine the EMI amount is: EMI = [P x R x (1+R)^N] /[(1+R)^N-1] In this equation, P is the debt principle R is the rate of interest each year N represents the number of payments during the life of the loan. For the EMI formula to work as expected, the rate units and EMI period must be identical, as they are in the PMT formula. So, suppose the interest rate payable is 10% per year, and you need to figure out your EMI. In that case, you would put [10/(12X100)] into the calculation for R. The PMT function derives its output from the same underlying computation as the EMI. Hence, the two are interchangeable. Remember that these figures assume a fixed interest rate throughout the loan’s term. Also, the results don’t account for any costs other than the principal amount and interest. How to Calculate Personal Loan EMI Using Online Calculators? Most financial institutions and banking organizations calculate personal loan EMI using a formula. You can also use a Personal Loan EMI Calculator to estimate your EMI. Your EMI will depend on the total amount you borrow, length of time, and interest rate. 3 Facts You Should Know About Personal Loan EMI Calculation 1. Your EMI payment factors in interest accrued on that principal. You’re doing two things when you pay your EMI: repaying the principal and the interest. You repay the loan over the loan’s term by making equal monthly payments, or EMIs. Suppose you first begin making EMI repayments. Then, the amount you send toward interest is more than the amount you give toward the principal. In contrast, your EMIs will go more toward repaying the loan’s principle than interest. 2. Make sure the monthly EMI payment doesn’t exceed 40% of your take-home pay. Suppose you’re considering taking out a loan. Whether a car loan or a home loan, your monthly EMI payments shouldn’t exceed 40% of your gross monthly income. That’s because most individuals only have a certain amount of money to pay bills. Whether you’re an entrepreneur or an employee, your money is always subject to market risk. Thus, it is advisable to play it safe and ensure that your EMI expenses are at most 40% of your earnings. 3. Your interest rate will fluctuate based on several variables. The interest rate charged on your personal loan is a major component in determining your EMI. Income, credit score, loan amount, and age, all play a role in determining the interest rate. But, variables like your credit history influence the sum. Loan and credit card payments, both old and new, impact your credit score. Lenders see customers with a history of making timely payments on loans and bills as low risk. Hence, they offer such customers more favourable terms on personal loans. [B-02] Conclusion Be clever when figuring out your personal loan EMI. You can do this by considering how this will affect your spending plans. Consistent expenses will significantly impact your ability to repay your loan. Did you love this article? Follow our blog for more investing, personal finance, and banking tips!

08-11-2023

Other

Beginners Guide To Generate New ATM Pin

Account holders can easily get a new ATM PIN from most banks today. All you need to do is to go to the bank’s ATM. Then, you can easily get your pin using a registered cellphone number. You can also do it through the net banking portal or mobile banking services. This process is useful for every account holder to create an ATM PIN and change it when necessary. When a person opens an account, they might acquire a debit card and an ATM PIN. [B-01] About ATM PIN An ATM PIN is just a 4-digit number necessary to make transactions at an ATM. Banks initially give this PIN to ATM card users, but they should change it and keep it secret. You can alter and make a new PIN for your ATM card whenever and as often as you want. PIN stands for “Personal Identification Number.” Each ATM card has its PIN. This new ATM PIN code makes sure that the transactions are being done by the card owners and are, therefore, real. Various uses of ATM PIN Most of us think we only need a new ATM PIN to do financial things like get cash, swipe a card, etc. But your PIN can also be used to prove who you are. The PIN can be used in many ways, whether you are accessing an ATM or the internet. For instance, you could use the PIN to stop a check from being paid or block an account. You can also change your address, phone number, or email address, or order a new chequebook. You can use your PIN to prove who you are in all of these situations. The PIN is an additional layer of security to verify your identity. Your card could be in the hands of anyone, but only you must recognise the PIN that goes with it. Making a new ATM PIN for an ATM Card When a bank gives someone a new ATM card, they give them an ATM PIN that they can use to log in. They tell the owner of the cards to make a new ATM PIN that only they know. This ensures that the ATM card used to get cash or do other online transactions is safe. One can get an ATM PIN in several ways, such as via SMS, online banking, or ATM. In general, there are two ways to get an ATM PIN. One way is to get a paper mailer, and the other is to get a Green PIN. Green PIN lets you set up your ATM through SMS and online banking. How to create a new ATM PIN at a Bank’s ATM? Go to the closest ATM of the bank where the person has an account. Enter the ATM card into the ATM and choose “Change PIN” or “Generate ATM PIN.” There are three ways to verify an account holder’s identity, depending on the bank: Account holders might be asked to input the temporary ATM PIN. The bank provided them with this PIN when they created an account or sent it later. Account holders also can confirm using OTP authentication. The OTP goes to the registered phone number. Input the OTP just at the ATM to modify the PIN or make a new one. Account holders may need to input their mobile number and account details to generate a PIN. Once the account holder’s request is confirmed, he or she can set the new ATM PIN as needed. How to produce a new ATM PIN through Net Banking? Account holders can use the net banking platform to create the Green PIN. For this service to be offered, the debit card’s account holder must have internet banking. Obey these steps to create the new ATM PIN by using the net banking portal: Use the password and username given to get into the online banking website. Select the account that the account holder wants the ATM PIN to be made for. Then click the “ATM Card Services” option. Click “Generate New ATM”. Type in the preferred ATM PIN. After that, an OTP will be texted to the registered phone number for verification. Once a request is verified, the account owner can use their new ATM PIN. Account holders can also use mobile banking to create an ATM PIN. Other ways to create a new ATM PIN There are other ways that every account holder can get a new ATM PIN: Call the customer service number of a bank where an account holder has an account. You can acquire the ATM PIN by texting the specified code (for SMS Banking). Account holders can also go to the nearest bank to ask for an ATM PIN. What’s the utility of an ATM PIN? ATM PINs are 4-digit codes unique to each cardholder’s ATM or debit card. It ensures that all cash withdrawals, POS, and online transactions are safe. The transaction is finished only after the cardholder inputs the correct PIN. This makes it less likely that a fraudulent transaction will happen. [B-02] Conclusion After the bank offers you an ATM card or interim PIN, make a new ATM PIN. This makes it safer because you are the only one who knows your new PIN. You must update your PIN periodically for security, so if someone discovers it, they can’t use your ATM card. You can only get cash out of an ATM or buy something online if you input the right PIN. If multiple wrong attempts exist, the card could be stopped for 24 hours to stop fraud. Even if the card is misplaced, no one can use the ATM without the PIN. But if you lose the card, you should block it right away. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Personal Loan

Tips To Reduce Personal Loan Interest Rate Effectively

You may often wonder how to minimise a personal loan interest rate as a borrower. A low-rate personal loan is the most efficient way to meet your current money needs. The loan may help you meet your money needs for your child’s wedding or a well-deserved trip. The borrowed money has no usage limits as long as it was borrowed for a reasonable and legal reason. But repaying these loans may be difficult for your budget if the rates are excessive. Some tactics may reduce the personal loan interest rate and the amount of money you must return. [B-01] What exactly are Personal Loans? A personal loan is borrowed at a fixed rate and repaid over a certain time. These loans are unsecured. Thus, no security or assets are required. Use the loan proceeds to meet your urgent money needs, whatever these may be. Yet, obtaining a loan is a fantastic solution to all your money needs. A personal loan is likely one of the most vital duties. You must alter your budget to repay it on time, even without paying a lump sum. Yet, if you want a loan, make an effort to get one with the lowest personal loan interest rate available. Simple strategies for Reducing Personal Loan Interest Rates Here are the tips to reduce a personal loan’s interest rate: High CIBIL Score The CIBIL score evaluates a buyer’s trust and is vital in reducing a personal loan interest rate. A high score indicates your ability to pay back the loan on time and the low chance of default. Lenders often reduce rates when buyers show a strong CIBIL score. A good score is 750 or above. This shows responsible credit behaviour and your ability to manage money. Making Timely Debt Repayments Pay your monthly obligations, including your credit card balance, in full. The other debts you have should likewise be repaid promptly. Then, you might get better terms on loans in the future. You will have a better chance of negotiating reduced personal loan interest rates and conditions with the lender if you have a solid EMI repayment history. Employee Reputation As was already indicated, lending firms prefer to provide loans to users who work for the state or federal government or PSUs. Better terms may also be negotiable for reputable firms, MNCs, and similar entities’ staff members. Lenders anticipate that you will have a reliable source of income, respectable employment, and a plan to guarantee that you will pay back the loan when due. Good Debt/Equity Ratio The capacity of a debtor to repay the debt relative to the total gross earnings is known as the debt-to-income ratio. You may get the ratio by dividing your total EMIs by your salary. A low rate may be obtained by showing the lender you have control over the finances by having a favourable ratio. Loan Amount Reducing the loan rates may be achieved by taking out a loan for a lower sum. As the sum is modest, the lender is certain that the loan will be returned on time, which lowers the likelihood of default. Relations with the Lender You can get a loan with a cheap personal loan interest rate and better service conditions if you have a good relationship with the lender. Your positive credit behaviour, too, allows the lender to believe that you offer less of a risk than if you were a new client. Check the Interest Calculation Process Despite the lender providing you with a lower personal loan interest rate, you can pay more interest throughout the loan. This is so that different lenders may calculate rates differently. The rate that is offered on a loan may be fixed or fluctuating. A floating rate is subject to monthly adjustment, but a fixed rate means a set lending rate for the time of your loan. Typically, the rate is 1 to 2 percentage points higher than the variable rate. While a fixed rate does not change throughout repayment, the variable rate does base here on benchmark rates set by NBFC. A Shorter Term While you can choose a longer loan term, going with a short loan term might help you pay less interest overall. As a result, the effective rate on the principal amount will be lower. Also, in a global lending market, lenders may be eager to grant loans with low rates since they know that short-term loans have a lower default rate. Interest Rate Comparison Not all lenders will provide loans with high rates. Check several banking firms’ personal loan interest rates before requesting a loan. Do your research and ask them for different offers. This will help you decide which lender would provide you with the best personal loan interest rate. Good Loan Repayment History You may get a low-interest loan by making prompt paybacks and paying your EMIs on time with no defaults. A solid payback record gives the lender trust and might help lower rates. Choose Offers or Better Deals Try to connect with top lenders on the market as you compare them. This can help determine any unique offers lenders may be willing to provide. Also, most lenders advertise special deals and discounts during the holiday season. Enrol for these emails or SMSs and keep an eye out for them. [B-02] Conclusion A loan is one of the most crucial choices a person takes in life since it is fraught with danger. As a result, it is advised that a person do good research before deciding on a lender. You can assess and choose an affordable personal loan interest rate with the variables above. Unsecured loans, such as personal loans, often have higher rates than secured loans. These tips will help you receive the best rates when applying for a loan. Even though a one percentage point reduction in rates seems small, it may result in savings in the long term. If you want to learn more about loans, visit the Piramal Finance website for more related blogs. 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08-11-2023

Personal Loan

Flexi loan vs Term Loan: Which One Should You Take For Travel

Your ability to predict travel costs will determine whether you choose a Flexi loan vs a term loan. Ganesh and his family are looking forward to their yearly trip to Kerala at the end of the year. They are eager to enjoy a festive Christmas and a prosperous New Year in God’s Own Country. The duration of the trip, the schedule, the activities, etc., have all been decided. The only decision would be whether to use a fintech flexi loan vs a term loan from a bank to pay for the holiday. It’s a problem that several individuals experience. [B-01] Describe a Term Loan. The period and EMI of a term loan are both fixed. Your bank account receives a lump sum disbursement of the total loan amount. Regardless of how the loan is used, interest is accrued on the total amount. Both the capital and the interest are included in the EMI. Understanding Secured Loans As you can see, this loan is described as secure. The word “secured” is of English origin. The term “secured loan” refers to a loan that is safe because the word “secured” signifies “secure.” But for whom is it safe? Such a loan is secure for those offering loans being banks or NBFCs. A loan is when a bank or NBFC is promised a piece of property worth the loan amount before granting it. When a secured loan customer cannot pay back the loan for any reason, the lending bank or NBFC business recovers the loaned funds by transferring the mortgaged real estate secured to it. The unique feature of secured loans is that they have a longer term. Thus, you will pay the secured amount over a longer period. A secured loan is typically a mortgage, auto, jewellery, or other loan secured by real estate. A mortgage does not secure a secured loan. This kind of loan is a great choice for small and medium-sized business owners. Thus, no property is mortgaged to obtain such a loan. Only the activity of a bank account or Form 16 of the ITR of a financial year file is used to get loans without pledging. Business loans or personal loans make up the majority of unsecured loans. Small business owners can benefit from a business loan without mortgaging anything because they do not have enough property to boost their operations. A person can use a business loan to develop their business as needed without having to put anything up as collateral. What is a Flexi Loan? In a flexi loan, a bank, NBFC, or fintech imposes a predetermined cap (say Rs 1 lakh). The sanctioned limit functions similarly to an overdraft or credit line. Flexi loans are also called overdrafts. The Flexi loan is a financial facility offered based on the customer’s bank account history. The borrower may utilise any amount from an authorised credit line (loan account). The amount taken or used is subject to a monthly interest fee for the borrower. Let’s say Ganesh obtains a flexi loan from a fintech company for Rs 1 lakh with a 1-year term and an 11% annual interest rate. The interest-only EMI for the loan comes to Rs 917 per month when he withdraws the full amount. Please know that you will not include the major component in the EMI. After the loan term, typically one year, he will be required to pay back the remaining principal. Based on the quantity of money available, he may also choose to make a partial prepayment or a complete payback of the outstanding principal at any time during the year. Flexi loan vs term loan comparison In the last part, we discussed the characteristics of a Flexi loan vs a term loan. Let’s now evaluate both of them. Obtaining a term loan on the road You will get a lump sum payment of a specified amount from a term loan into your bank account. The length of the loan and the EMI are set. Since the loan institution will reveal the payback schedule, you could plan your EMI repayment. Prepayment charges are possible. Travelling while using a flexi loan A Flexi loan will give you access to a credit line with a predetermined sanctioned maximum. You may withdraw as much as you want from the authorised sum anytime and as often as you like. Only the amount and duration used will be subject to interest payments. There are no fees associated with partial or full principal prepayments. Choose a term loan over a flexible loan. The term loan has a set repayment period, and the EMI is fixed during that time. Therefore, you can opt for a term loan if you know the trip’s precise cost and would rather pay a fixed EMI each month. With a flexi loan, you can deduct any amount from the sanctioned limit as often as possible. Only the amount that is withdrawn will be subject to interest. Payment terms are also adaptable. Therefore, choosing a flexible loan makes more sense when you don’t know the cost of your holiday and if you wish to return the loan amount whenever you have extra cash. Which Loan—Flexi loan vs term loan—is Preferable? Flexi loan vs term loan is covered in detail in this article. As per their different terms, both loans are better. Flexi loans are a better choice for people who deal with money frequently. A secured term loan is preferable for people who need to purchase a home or a vehicle. [B-02] Conclusion You can pick a Flexi loan vs a term loan depending on how well you know the exact cost of your trip. Your decision will also depend on whether you wish to pay back the loan in lump sums or as and when you have extra cash. After deciding on the loan kind, it’s time to appreciate your trip fully. Make sure you bring back lifetime-lasting, joyful experiences. If you want more detailed information regarding Flexi loan vs term loan, you must visit Piramal Finance now.

08-11-2023