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Personal Loan

Advantages and Disadvantages of Wedding Personal Loan You Need to Know

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

08-11-2023

Personal Loan

How Low Cibil Score Can Cause Rejection Of Personal Loan?

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

08-11-2023

Home Loan

Hidden Factors of a Home Loan EMI Calculator

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

08-11-2023

Personal Loan

How Personal Loan Get Verified: Complete Process At Piramal Finance

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

08-11-2023

Personal Loan

How Much Personal Loan Can Individuals Avail on a Salary of Rs. 15000?

Are you looking for a loan to meet urgent financial requirements? Do banks keep denying the application citing your low salary? If yes, you should try applying for a personal loan. Personal loans are a boon for people who earn a modest salary. So, even if you make Rs. 15,000 monthly, you are eligible for a personal loan. Many banks and financial institutions grant a loan of up to Rs. 1,50,000 to individuals in this salary range. Moreover, they have simplified the qualifying criteria for the ease of low-income borrowers. Keep reading as we outline all the essentials, including characteristics, eligibility, factors, and tips for you in this post. [B-01] Features of personal loan on Rs. 15,000 Salary Here are the top characteristics of a personal loan. Small cash loans – People belonging to the low-income group can apply for a quick small cash loan. The banks authorise these loans under their rapid loan application system. The loan can range from Rs. 50,000 to Rs. 1,50,000. These loans also come with easy repayment terms and conditions. So, with an income of Rs. 15,000, you can easily repay your modest low-interest instalments within time. Collateral-free – Instant personal loans don’t need collateral or a guarantor. These loans are great for generating quick capital in times of urgency. Since the loan amount is also smaller, you can easily manage the instalments from your Rs.15000 salary. Security – Banks and other financial institutions offer a secure platform for customers seeking personal loans. In addition, the online application and processing system have enhanced the convenience of the applicants. However, you must upload your details and minimum wage proofs to start the process. Paperless documentation – Online KYC verification and salary check-in can save you time considerably. However, you need to submit your bank statements or salary slips in-person to the bank. Personal loan eligibility for 15,000 income Please understand that the personal loan eligibility criteria differ from bank to bank. However, here are some common qualifying conditions that all borrowers must fulfil. Evidence of your nationality. A valid income proof. It can be either your salary slips or bank statements for the past six months. Your age proofs. Ideally, an applicant should be in the age group of 21 to 58 years. Applicants can be self-employed or business owners as well. Applicant, if working, should be employed in the public or private service industry. It would help if you also met all the credit score eligibility of the bank. This criterion can also vary from lender to lender. Make sure you enquire about it in advance. Documents required for a personal loan on 15,000 income Submitting the right documents can fasten the loan approval process. It also increases your chances of getting the loan approved on the first attempt. So, here is the list of documents that you should have in hand before applying for a personal loan. You have to provide your KYC information for personal identification. Besides this, you also need to submit your address proofs. A passport, Driving License, or Aadhar Card can serve the purpose here. Bank statements or pay slips of the last six months to verify your current salary and capacity to repay the personal loan. Many leading banks offer risk-free personal loans with a repayment tenure of 1 to 2 years. Get in touch with your bank to know more about it. Factors that impact personal loan eligibility Here are the top factors that can influence a borrower’s loan eligibility: Monthly income – One of the biggest factors that can make or break the situation is the borrower’s monthly income. Please understand that an income above 15,000 does not alone ensure a loan approval. An individual’s debt-to-income also heavily influences it. Credit score – What is a credit score? Well, it is a three-digit code between 300 and 900. It indicates the borrower’s trustworthiness. This score is determined after analysing the previous loan instalments, bill payouts, credit card payments, and other factors. Banks consider a credit score of 700 or more good and reliable. Age – Lastly, the applicant’s age also plays a vital role in personal loan approval. Usually, personal loans are granted to borrowers in the age group of 23 to 60 years. Tips to improve personal loan eligibility Here are some tips to improve your eligibility for a personal loan: Maintain a high credit score – A credit score of 700 and above significantly increases your chances of getting a faster loan approval at lower interest rates. A good credit score also doubles your access to other personal loan offers rolled out by lenders. Make sure you keep paying your debts on time to maintain a good credit score. Add a co-applicant – Adding a family member, like parents, children, or spouse, can also help improve your eligibility for a personal loan. However, not all banks offer this facility to their customers. But if you find one, you should try co-borrowing your loan. The banks will consider both applicants’ repayment capacities and credit scores in this system. Avoid job changes – Banks also consider your employment history while evaluating your loan eligibility. Frequent job switches can raise a question about your stability and reliability. Such practices indicate career instability. They can pose a credit risk for the banks. Therefore, you should avoid frequent job changes if you want to improve your eligibility for a personal loan. Avoid multiple loan applications – Banks sometimes conduct hard inquiries to determine the creditworthiness of personal loan applicants. If you have made multiple credit applications quickly, it can reduce your credit score by a few points. All these things can make you come out as a credit-hungry borrower. Therefore, many banks consider it a solid reason to reject the loan application. So, check all the loan terms and conditions online before placing an enquiry in the bank. [B-02] Wrapping up! In the nutshell, people making Rs.15,000 monthly are also eligible for a personal loan. It would be best if you connected with a reliable brand like Piramal Finance to get a faster personal loan at the best interest rates. Connect with your nearest branch to know everything about it.

08-11-2023

Guide

Top schemes of government for MSME you need to know

MSMEs are considered to be the backbone of the Indian economy. The MSME sector is approximately one-third of the country’s GDP (Gross Domestic Product). According to government data, it employs 11 crores of Indians. It also contributes to nearly half of the country’s manufacturing output. For this reason, the government of India runs many schemes to help the MSME sector thrive. If you are someones who runs an MSME, or works in one, this is for you. Take a look at government schemes for MSME which help in skill development or provide financial aid. In this article, we are going to take a look at 10 such government schemes for MSME. [B-01] Top 10 Government Schemes For MSME 1. Prime Minister Employment Generation Programme (PMEGP) The PMEGP scheme provides financial assistance for self-employment. Its goal is to create sustainable employment opportunities. The unemployed youth and traditional artisans in rural and urban areas of India can benefit from this scheme. If you qualify under this scheme, the government will provide subsidized loans to you. The government will also provide EDP training, awareness camps, etc. to you. 2. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE) Under this scheme, you, as an entrepreneur, can get a loan of up to INR 2 crores without any third-party guarantee or collateral. This is meant to motivate first-generation entrepreneurs to create self-employment opportunities. 3. Micro & Small Enterprises Cluster Development Programme (MSE– CDP) This scheme leverages common facility centers to create better infrastructure for clusters of MSMEs. It addresses advancement in green technology and promotes sustainability. It provides financial assistance of up to INR 15 crores for infrastructural development. 4. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) This scheme is trying to set up traditional artisans and industries into clusters. In the long run, this is supposed to help them self-sustain. A financial support system of up to INR 5 crores has been set up in place for this scheme. If you are one such organization, you can use this money to upgrade to modern machinery, buy raw materials, and even digitize your business. Furthermore, an additional INR 25 lakh is provided for training purposes. 5. Entrepreneurship and Skill Development Programme (ESDP) Scheme This skill will help you in capacity building for your MSME. It is particularly designed to help minority communities such as SC/STs, women, the differently abled, ex-servicepersons, those living below the poverty line, etc. It is one of the few schemes that apply to agro-based industries as well. If you run an agro-based MSME or one that deals with food processing, etc. this scheme can help you. 6. Assistance to Training Institutions (ATI) Scheme This scheme helps build training institutes that will further empower you to improve your MSMEs. These institutes provide training for skill development for people that work in the MSME sector. The programs are designed by the MSME ministry. Financial assistance of up to INR 300 lakhs is also a part of this scheme. 7. Procurement and Marketing Support (PMS) scheme If you find it difficult to market your products, this scheme is for you. It aims to improve the marketability of MSMEs. Under this scheme, MSMEs participate in international fairs, trade fairs, exhibitions, etc. Thus, they can take their products directly to consumers and increase their business. 8. International Cooperation (IC) Scheme This scheme is similar to the last one, but it’s mainly aimed at improving exports. It will help you participate in trade fairs, expos, etc. abroad. Thus, you can market your product outside of India. By competing with organizations worldwide, you will also learn about newer technologies and processes. This will help you advance the workings of your own MSME. 9. ZED Certification Scheme ZED stands for Zero Defect & Zero Effect. This is one of those government schemes for MSMEs that looks at the bigger picture. Zero defect here means your MSME will manufacture quality products. Zero effect here means it will do so without damaging the environment. An individual or organization that earns this certification will be awarded many benefits including a joining bonus and subsidies. This scheme aims to take the Make in India initiative forward sustainably. 10. Lean Manufacturing Competitiveness for MSMEs Lean manufacturing techniques include better productivity, good management systems, reducing waste, and maintaining continuous improvement. This scheme uses the application of these techniques to encourage competitiveness between MSMEs. You may also have to compete with others to qualify for one of these government schemes for MSME. 11. MSME – Innovative (Incubation, IPR and Design) This scheme aims to promote innovation. It does so by developing better designs for marketing and production. It helps you commercialize your product while maintaining your intellectual rights over them. It is one of those government schemes for MSME that connects academia to industries, thus pushing for innovation. It encourages students and funds their projects. The scheme subsidizes patenting innovation and makes the entire process smoother overall. 12. Digital MSME This scheme will help you adapt to the new digital age. It encourages you to adopt new digital tools and processes. The adoption of new digital technologies often helps reduce costs and improve efficiency. This scheme provides access to new software. It helps in the automation of processes involved. [B-02] Conclusion The Government of India is betting large on the MSME sector. To ensure it succeeds, there are many more government schemes for MSMEs that are currently active. In this article, you have been introduced to the top 12 run by the central government. However, many state government schemes for MSMEs are also there which you can leverage. If you do not qualify as an MSME but still require financial assistance, a personal loan may be the best option for you. Piramal Finance is one such organization that can help you acquire such a loan. To further learn about the process, please visit the personal loan section on their website.

08-11-2023

Personal Loan

Home Loan and Personal Loan Eligibility Calculator

It’s always a dream for every Indian to buy and move into their own home. In the era of ever-increasing prices of real estate, home loan EMIs come as a saviour as they allow you to fulfil your dream of owning a home. One of the major factors that one should always consider is the monthly home loan EMI amount. It is so because you will be paying a fixed monthly EMI for several years, and it’s vital to know how well it fits into your budget. Before finalizing your dream home, it’s always a good practice to conduct a thorough research about different home loan EMI plans. This research will allow you to know the exact EMI amount you will be paying. The monthly EMI amount differs for everyone as it’s dependent on several factors including interest rate, loan amount, loan tenure, etc. [B-01] This is where home loan calculators come into play, as they make EMI calculations a really simple affair. In this article, we are going to tell you everything you need to know about home loan calculators so that you don’t have to worry about the same. So let’s start. What is a Home Loan Calculator? A home loan calculator is a simple yet really useful tool that calculates the monthly EMI you will be paying when you are opting for a home loan. All you need to do is enter the loan amount, loan tenure, and the EMI rate. Once you have entered the details, the home loan calculator would calculate the monthly EMI you will have to pay along with the total interest rate you will be paying throughout your loan period. Factors Affecting a Home Loan EMI The final home loan EMI takes into account several factors including: Loan Amount The loan amount is the sum of money you are borrowing from the lender that allows you to purchase your dream home. For example, if you are planning to purchase a home that costs you about 1 Cr, and you have made a down payment of Rs. 20 lakhs, then your loan amount will stand at Rs. 80 lakhs. Interest rate The interest rate is the rate at which the lender is lending you a fixed sum of money. Housing loan generally carries an interest rate of 8 to 13%, and it varies from lender to lender. Furthermore, the interest rate is divided into two categories: floating interest rate, and fixed interest rate. If you opt for a floating interest rate, the EMI amount changes over the years as you pay your monthly EMIs. On the other hand, if you have borrowed the sum of money at a fixed interest rate, your monthly EMI amount will remain the same throughout your loan tenure. Loan Tenure Loan Tenure refers to the time you will take to repay the loan. The longer the loan tenure, the lesser will be your monthly EMIs and the more interest amount on the home loan. These are the top three factors that a home loan calculator considers, and it gives you the final EMI amount after taking these factors into account. How do Home Loan Calculators Work? Home loan calculators calculate your monthly EMI by using a simple formula: Monthly EMI = [P x R x (1 + R)^N] / [(1 + R)^N – 1] Here, P= Principal Amount or Loan Amount R= Interest rate charged by the lender on the loan amount N= Tenure of the home loan in months. (for 5 years, N= 60 months) Let’s say your loan amount is 80 lakh rupees, at an interest rate of 9%, and your loan tenure is 20 years. In this case, your monthly home loan EMI will be about Rs. 72,000, and you will be paying a total interest amounting to nearly Rs. 93 lakhs, and the original loan amount of Rs. 80 lakhs. So at the end of 20 years, you will have paid a total of Rs. 1.72 crores. Let’s say that you want to pay off this loan in 15 years. In this case, your monthly home loan EMI is about Rs. 81,000, and the total interest amount paid stands at about Rs. 66 lakhs. So, at the end of 15 years, you will have paid a total of Rs. 1.46 crores. It’s evident that if you can keep the loan tenure short, you might be able to save a lot of money in terms of interest amount. In the above case, shortening your loan tenure by 5 years increases your monthly EMI by 9,000 but it saves you Rs. 27 lakhs in interest paid. This is why home loan calculators are of great importance for anyone who is planning to take a home loan. These home loan calculators can be used to compare loan offers, and know the monthly EMI you will have to pay with every one of them. You can make the final decision of opting for a home loan lender that serves your needs the best. Why Should You Use a Home Loan Calculator? There are several reasons why you should always use a home loan calculator before finalizing a home loan. Allows You To Plan Your Loan Repayment Home loan calculators not only tell you the monthly EMI you will be paying, but they also tell you the overall interest amount you will be paying. If you have a fixed budget for monthly EMIs in mind, you can shuffle between loan tenures to find a monthly EMI amount that fits well in your budget. Simple and Convenient Home loan calculators are a simple, easy & convenient tool to use, and they provide you with accurate information regarding your home loan payments. Additionally, they also reduce the room for human errors during calculations. Helps in Comparing Loan Offers When you are looking for a home loan, you will consider different lenders & offers. Each offer will affect your monthly EMIs differently, and these home loan calculators will help you compare these offers without any difficulties. [B-02] Final Thoughts If you are planning to take a home loan, you should always use home loan calculators before finalizing any offer. Home loan providers like Piramal Finance have a free-to-use home loan calculator on their website, and you can use them as many times as you want.

08-11-2023

Personal Loan

Importance of personal loan in medical emergency you must know

Medical emergencies are most often unexpected, and they come without any warning. It is very little you can do to be prepared for such emergencies. These emergencies are often costly, as you might be paying a lot for the treatment. Medical treatment costs often include hospital bills, doctor’s fees, and more. Although having health insurance might help, you might still have to take care of certain things on your own. If you find yourself in a similar situation, you might have to take a major chunk out of your savings or borrow the money from banks or your known ones. Taking a personal loan for a medical emergency might be a viable solution, and this is what we will discuss in this article. [B-01] Personal Loan for Medical Emergency If you are short on funds, taking a personal loan for a medical emergency might greatly help you. First, a personal loan for a medical emergency will not force you to spend all your savings in one go. You can pay the loan in small instalments over time. A personal loan for a medical emergency can be available in a few minutes, provided you have a strong credit score and suitable credentials. This might come as a lifesaver in some instances. It’s because hospitals might refuse to start the treatment until you pay the total amount in advance. Furthermore, these days, personal loans are available for medical emergencies and are issued mostly by NBFCs and financial institutions. The interest rate for these personal loans for a medical emergency can vary. Benefits of Taking a Personal Loan for Medical Emergency There are numerous reasons why taking a personal loan for a medical emergency can be beneficial. Instant Fund Transfer Once your loan is approved, the funds are immediately transferred to your bank account. The process of applying for a personal loan for medical emergencies is fairly simple. Most applications are approved within a few hours, provided you have the necessary documents & a good credit score. No Collateral Requirements In most cases, availing of a personal loan does not ask you to submit any collateral. It’s a major reason why taking a personal loan in case of a medical emergency helps many people. No mandatory collateral requirement makes taking a personal loan highly convenient. The process is even simpler if you opt for a personal loan from a financial institution. Piramal Finance offers instant approval & attractive offers for their customers. Flexible Repayment Options Another major advantage of taking a personal loan for a medical emergency is its flexible repayment options. The loan tenure ranges from 12 to 60 months, and you can use EMI calculators to calculate your monthly EMI payments. This feature would help you manage your finances better as you’ll know how much you would need to pay monthly. This flexibility offered by personal loans allows you to manage your finances much better without forcing you to spend a major chunk out of your savings fund. Can be Spent on Different Kinds of Treatments You can spend the money as per your requirements, and this is where a personal loan might prove to be better than health insurance. Health insurance sometimes only covers particular diseases and limited medical treatments. If your medical emergency falls out of the areas they cover, you might not receive health insurance benefits. 5. Multi-Purpose Personal Loan for Medical Purposes There are a lot of financial institutions that provide different loans for different medical purposes. You can get specialized loans for dental procedures, cosmetic surgeries, travel expenses related to medical treatment and more. How to Select a Personal Loan for Medical Emergency? One of the major reasons why taking a personal loan for a medical emergency is such a viable option is because hundreds of lenders can loan you the money. However, the terms and conditions of each lender differ, which is why you must compare them against each other so that you can pick a plan that best suits your needs. Here are some of the factors that you should always consider when selecting a personal loan for medical emergencies: Compare the Interest Rate You must compare the interest rate charged by different load providers. It is so because personal loans are unsecured, and the interest rates can range from 8% to up to 35%. If you are not comparing the interest rates, you might pay more even when there’s a cheaper alternative available. Know the Repayment Clause It’s always essential to go through the terms and conditions of a personal loan before finalising it, especially the repayment clause. The loan should be flexible in terms of repayment, and it should not be a financial burden for you in times to come. Most loan providers allow you to convert your loan into EMIs, and you might also have the option of a lump sum payment. Compare the Charges Whenever you take a personal loan, there might be some fees that you must pay. These charges often include processing fees, prepayment charges, and more. You should always compare these charges as they might significantly add up to the loan amount. Online Convenience In a medical emergency, it might not be feasible for you to leave your loved ones and travel to process your loan application. The personal loan provider should always provide an online payment processing portal, and the entire application process must take place online. [B-02] Final Thoughts One can never be sure when one might face a medical emergency, so having an emergency fund is necessary. However, with the ever-rising prices in the healthcare industry, one might have to look for alternative ways to arrange funds, or they might end up blowing their entire savings. This is where a personal loan for medical emergencies is useful, as it prevents you from exhausting your savings and lets you take a loan at your convenience and affordability. Financial institutions like Piramal Finance provide you with the facility of availing of personal loans for medical emergencies at affordable interest rates and flexible repayment plans for ease and comfort.

08-11-2023

Personal Loan

How to manage personal loan EMI payments sincerely?

Personal loans are a great way to raise funds when you have a requirement for urgent capital. It is an unsecured form of finance where you need not offer any security. A personal loan is raised for various reasons such as a wedding, a vacation, medical bills, house repairs, and more. Personal Loans are in huge demand for the past few years as it is a great legal way to raise funds with minimal paperwork. You can use the money as you want but must pay your personal loan EMI on time every month. Personal loans are different from other loans such as car loans, and home loans. These other loans are used for a specific reason whereas a personal loan can be used for any reason. It is also different from a personal credit line as the funds are provided in a lump sum whereas the line of credit works as a credit card. When you apply for a personal loan there is always an end date, however, the line of credit doesn’t have any. [B-01] Tips to ensure you manage your loan repayments It is extremely easy to apply for a personal loan but can be tough to keep up with your personal loan EMI. You may give your time and energy in planning to apply for your loan but not much time in thinking about how you’re going to repay it. So here are a few tips to ensure you manage your loans and give timely repayments to the bank. Reminders You should put reminders on your phone so that you don’t miss the date of your repayments every month and timely pay the personal loan EMI. These phone reminders would help you in saving up for the loan payment throughout the month. Even if you don’t have sufficient funds in your account you can arrange it from somewhere before the deadline of your Personal Loan EMI payment approaches. Check your repayment capability This step should be followed before applying for the loan as you should check if you can pay off the loan or not. Ensure that you understand the terms of the repayment structure, flexibility of repayment, and personal loan interest rate. It would lead to calculating the Personal Loan EMI amount for the total tenure and help you in planning your monthly budget. CIBIL score Maintaining a good CIBIL score is of the utmost importance. It lets the lender determine a borrower’s creditworthiness. It shows in three digits and is proof of your past credit history. If your score is 700 and higher then it is considered a good CIBIL score. It assures your integrity and builds trust between the lender and you. The lender might also let you extend your payment date or tenure considering your CIBIL score. Choose a longer tenure By selecting a longer duration, the amount of your Personal Loan EMI reduces significantly. This would also relieve some stress and anxiety as it lets go of some of the financial burdens. Prepare a monthly budget Creating a monthly budget would help you in managing your expenses and savings altogether. When you create a monthly budget it helps you determine if you can afford the Personal Loan EMI or not. Your monthly payments shouldn’t be more than half your monthly income. Budgeting also helps you in cutting back some of the costs and saves money. Save money If you wish to pay your personal loan EMI timely, then you must start saving money. This will ensure you have enough savings in your bank account. You can save money in any form, may it be stocks, bonds, or any fixed assets that you can sell easily. The loan amount should be as per your requirement Before accepting the loan terms you should ensure that the loan amount should be as per your need. You may think to apply for a loan amount that is higher than what you need, based on your high credit. But this would lead to the repayment payment being higher. How can you reduce your monthly payments? There are various ways you can reduce your Personal Loan EMI and your financial burden: Choose a co-applicant A co-applicant is someone who decides to apply for a loan with you. If you add a co-applicant who has a decent credit score and a stable income it can help you reduce your personal loan EMI. It can be a family member, a close relative, or a friend. Repayment Tenure If you choose a longer repayment duration then your EMI would be low. As the loan tenure increases personal loan EMI reduces. But before you opt for this option, do remember that choosing the longer duration would lead to a higher interest cost. This would help in relieving your financial burden as well. Low-Interest Rate Search for loan plans that offer low-interest rates. Interest is the major factor that determines your monthly payment. You can talk to your lender and negotiate for a low-interest rate. If you have a good credit score they might agree to it. Before accepting the loan terms, make sure about the interest rate. [B-02] The Bottom Line Lastly, you should remember to carefully analyze your financial needs before agreeing to the loan terms. You should choose the right interest rate, loan amount, and lender and budget your financials accordingly to make things easier. These tips would allow you to make smarter and more informed decisions when applying for a loan. By doing so you will pay lower EMIs and finish off the loan quickly. There are several digital EMI calculators available to ease your decision-making process. With just a few steps you can check your loan repayment amount and interest. For the best offers, check out personal loans from Piramal Finance.

08-11-2023