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Home Loan

Important Things You Should Know About a Mortgage Loan in 2022

When money is critical, it may take a lot of effort to obtain. A homeowner’s ability to quickly and inexpensively get the required funds by mortgaging their house is a major benefit in such a situation. The most attractive feature of a mortgage loan against property is that, unlike many other types of loans, you may qualify for one with very low-interest rates without giving up any house ownership in exchange. Everything you need to know about home mortgages is right here. [B-01] What is a Mortage Loan? Mortgage loans are simply loans that are backed by the equity in a person’s home. You might have a title dispute over a loan against property such as your house or commercial property. Mortgages may be acquired from traditional banks as well as non-banking lending companies. The lender will provide the principal sum plus interest. Monthly payments make it easier to repay the debt. Your collateral stays in the lender’s possession while you pay off the loan. Therefore, the lender has a legal claim to the property throughout the term of the loan and may repossess it and sell it at auction if the borrower does not return the debt. Like any other kind of financial instrument, it’s important to fully grasp the inner workings of a mortgage loan to avoid any unwelcome surprises down the road. Before you sign anything, please review the following important information. Five Important Things to Know About Mortage Loan in 2022 Variables That Affect Eligibility Requirements The Equated Monthly Installment (EMI) may be a starting point in determining whether you qualify for a loan. Traditional financial institutions often limit monthly payments to no more than 40–50% of a borrower’s gross income. In this case, we disregard any reimbursements or allowances. Additional debts, such as a loan against property, may further restrict your eligibility. Institutions may be sensitive about the number of people who rely on you financially. An increased reliance ratio indicates. Loan Type You are well aware of the options available to you in terms of mortgage loans, including both fixed-rate and adjustable-rate mortgages. A loan against property with a fixed interest rate is one whose interest rate will not change in response to market conditions. This is an interest rate that is one to two and a half percentage points higher than the cost of a variable-rate mortgage. Meanwhile, the interest rates on floating-rate loans fluctuate with the market. Loan Interest Rates for Various Mortgages There is the option of a fixed or variable interest rate for your home loan. Let’s see how the two concepts compare and contrast. As the name suggests, a fixed interest rate does not change at all during the loan’s duration. You can lock in a lower interest rate for the duration of a loan if you borrow for a shorter period. If you’re looking for a mortgage loan against property with a longer term, you may need more time to lock in a fixed interest rate. Interest rates that fluctuate with market conditions are called “floating.” The interest rate cannot be predicted, but you can get a ballpark estimate on the lender’s website. This rate is adjusted regularly by shifts in the Marginal Cost of Funds based Lending Rate (MCLR). Negotiate the Rate No matter what you decide to do, remember that you can negotiate the interest rate. The bank would have the upper hand in any negotiation, but you have some leverage as well, especially if you’ve been a customer for a long time. Your credit report shows a perfect record of on-time payments, right? Put it to use in bargaining for better terms and a larger loan. You’ll have more leverage with lenders when your credit score is good. Longer Tenure Leads to Costlier Loans The RBI has always maintained a hawkish monetary policy, which has resulted in longer lending periods and higher borrowing prices. Banks have also raised their adjustable mortgage rates in reaction to the hike in base rates. This will result in a higher monthly payment for the borrower. Most borrowers who get this notice of increase then request that the term of their loan against property be adjusted (extended) so that they may make smaller monthly payments. Switching Lenders Even though you have a loan with a bank now, it doesn’t mean you have to keep it there forever. If the necessity arises or you get a significantly better offer from another lender, you can switch lenders at any time. Most financial institutions no longer apply prepayment penalties on loans with adjustable rates. Therefore, the processing fee is the sole additional cost. Features of a Mortgage Loan Let’s look at the fundamentals of a mortgage loan against property now that we know what it is and how much interest it costs. There is a wide variety of property types, including real estate, that lenders will not accept. Lenders will often approve fully constructed assets, such as residences and stores. Freehold means the owner has the full legal right to transfer ownership, and marketable value means the property may be sold. Mortgage loans are considered secured loans because the lender gives you the loan amount in exchange for the use of your property as security. It’s possible to get a mortgage loan with a repayment period of up to 30 years, with payments spread out into more manageable EMIs. A mortgage loan against property may be tailored to your specific requirements. Benefits of a Mortgage Loan One way to use a home equity loan is to pay for a necessary medical procedure. Company expansion and financing kids’ college tuition; funding a kid’s wedding expenses Mortgage perks for renovating your property Now that we’ve covered what a mortgage loan is and how it works, let’s look at some of the benefits. Legally, you will remain the property owner even if you use the loan money to pay for anything you need. Mortgage loans are popular because lenders feel safer with them than with other types of unsecured loans. Home loans often have far more reasonable interest rates than individual loans. The conditions of repayment are negotiable. [B-02] Conclusion The process of obtaining a mortgage loan against property is more straightforward in theory than in practice. The time it takes to get a loan authorized might be substantial, even if it seems like all banks are eager to offer. A reputed institution like Pirimal Finance will be able to assist you if you want to learn more about a mortgage loan and how it works. Do not hesitate to visit them.

08-11-2023

Tips & Advice

Mandatory Documents For Car Insurance Claim Process

Whenever one thinks of claiming car insurance, a lot of questions come to mind. What are the documents required for a car accident claim? What are the steps to making a car insurance claim? What are the details required to fill out a motor insurance claim? Any automobile insurance coverage needs to include a claim procedure. A vehicle insurance claim is essentially a request made by a policyholder to their auto insurance provider for payment of the insured’s monetary loss. When the insured’s car is stolen, is involved in an accident, or suffers damage, a car insurance claim may be made. The insured’s stated value listed in the policy serves as the foundation for an automobile insurance claim. However, you must submit a few documents to make a claim. Continue reading to learn more about the paperwork needed to file an automobile insurance claim. [B-01] Documents Required for the Car Insurance Claim Process When filing an automobile file car insurance claim you must have a few documents on hand. A list of the required paperwork is provided below: Details of your automobile insurance coverage must be kept in hard copy or electronic form because it is unquestionably one of the fundamental criteria. Information on the insured vehicle: This comprises information about the car, like its licence plate number. To file a car insurance claim with any insurer, you must have an RC, or automobile registration certificate. Driver’s licence information is required in this section. The likelihood of your auto car insurance claims being denied increases if the driving licence is discovered to be fake. FIR: You must file an FIR if you want to file an insurance claim for your car after it has been stolen or involved in an accident. Payment receipts: Cashless claims and reimbursement claims are the two categories of auto insurance claims. If you choose to submit reimbursement claims, you must provide genuine receipts to be compensated for your expenses. With a cashless system, however, the relevant insurance directly settles and pays your invoices. Vehicle inspection address: When you file a claim with your auto insurance after an accident, you must include the address where the surveyor inspected the damaged vehicle. Tax Receipt: When filing an automobile insurance claim, you must also provide the insurer with a tax receipt. How Can Rejected Car Insurance Claims Be Eliminated? There is a good chance that your car insurance claim will be rejected. This is due to several factors, including the following: If you submit a driving licence that is invalid or expired, your car insurance claim may be denied. Place Of Accident: Since auto insurance is only valid within Indian territory, keep in mind that any accidents that happen while driving abroad will not be covered by your auto insurance provider. Renewing: If you don’t renew your auto insurance on time, your claim will be void when you go to file it. As a result, make sure to renew your auto insurance policy on time. Transfer of Insurance Policy: If you buy a used car, make sure the insurance policy and registration document are transferred into your name. The insurance company will not accept any claims if this is not done at the scene of the accident. Aim to complete this transfer within 14 days of the purchase. Claim Types and Documents Required Third-Party Claim Third-party claims are made to obtain coverage for third-party obligations. You must notify your insurance provider and the nearest police station if your car has damaged someone else’s life or their vehicle. If you are a victim, you must gather all the details about the car that injured you as well as the owner’s contact information. You must inform the police and your insurer about the accident in this situation as well. Own injury claim When your vehicle is harmed in an accident, damage claims are made. Whenever feasible, try to report the occurrence to the police and your insurance company. A surveyor will be dispatched by the insurer to evaluate the damage to your car. Don’t take the automobile away from the scene of the collision until then. Your insurance will pay the repair costs directly to the garage if you choose the cashless option at a network garage. If not, you will need to file a reimbursement claim with your insurer and provide them with the necessary paperwork for a car claim. Crime Claim If your insured vehicle is stolen, you may file a theft claim. In this case, you must first report the theft to the police, the RTO, and your insurer. Prepare the necessary claim documentation in advance before filing a theft claim. Additionally, if requested, give the insurance company the lost car’s keys. [B-02] Summing-up: The goal is to tell you what mandatory documents are required for an insurance claim. If your car is in an accident, having auto insurance can help in certain circumstances. You can make a car insurance claim to receive the policy benefits in return for the premium you paid to insure your vehicle. A claim can help you seek compensation, whether you have damaged your car or harmed someone else’s property or person. The necessary third-party insurance aids in providing coverage for any harm you may cause to a third party or their property, while the comprehensive insurance provides coverage for both you and the other party’s vehicle. In any event, by following the steps below and the documentation process, you can submit a file car insurance claim. Also visit Piramal Finance for more in-depth, educational articles.

08-11-2023

Personal Loan

A Detailed Guide on Paperless Personal Loans In India

Financial services have changed a lot in the past few years. Instead of waiting days for their banking needs to be met, Most clients today want quick and easy answers. This is possible now. Digital financial industry focus on building a cashless infrastructure. The government is already starting to make the economy digital. Many lenders now provide paperless personal loans. This is because we live in a digital age. Many companies provide personal loans and help clients with their immediate financial needs. Many experts say they will not use paper where consumer credit is going. [B-01] How to Apply for Paperless Personal Loan? Today, it’s easy for financial institutions to accept and check digital papers of applications. A branch office is no longer a place where customers can fill out loan applications offline. They could get permission for this from anywhere. Go to the official website of the lender. Fill out the online application with information about yourself. Send digital copies of all the paperwork that needs to be done. The bank will check the papers to make sure they are real. The loan money is sent to the customer’s bank account if the paperwork is okay. Necessary Documents A paperless personal loan is easy and quick to apply. To get the loan amount, the borrower has to give the business a lot of paperwork. These documents are needed to show that the person applying for the loan is a real person who can repay the loan. Applicants must upload these documents digitally, which makes it possible for the company to check them. Digital signatures have made it possible for customers to sign documents now. It makes the process go without paper. Here are some of the documents that need to be filled out for paperless personal loans: Proof of who you are (PAN, Voter ID, Aadhar, etc.) Address proof (Aadhar, Passport, Voter ID, utility bill, etc.) Financial statements: (digital copies of most recent financial statements retrieved from a net banking account) Salary slips (Paystub digital copies obtained from the employer) You can scan these papers and send them in via the application site if you have copies of them on paper. The business will get these papers and keep them in a safe place. During processing, the lender will look at these papers to ensure they are legal. Benefits of Paperless Personal Loans There are some good things about getting a personal loan without papers. Here are just a few of the most important ones: Minimal Papers Customers don’t have to go to the branch office anymore. They can send paper copies of their applications since the process is done on a computer. This way, you don’t have to fill out many forms, which can be a pain. When you don’t use paper to apply for a personal loan, you might not have to deal with all the extra problems with paperwork. Quick Payment There are now many more personal loans because the business world has become more digital. The loan money will be sent out immediately when the company verifies these papers. You can also get loans that have already been approved if you have an account at the bank. Environmental Benefits This is one of the most important reasons many businesses want to get rid of paper. Since the process has become digital, banks may save a lot of paper and use a more friendly approach. This way, you can reduce your carbon footprint and help the environment. Low Operational Costs By going digital, lenders can lower their total costs. This method makes it possible to eliminate all printing and paper costs. The money saved by using this method could be given to clients. High Security Most experts in the field say. Keeping paper files is a lot less safe than doing things without paper. Before, there was always a chance that important paper records would get lost. This could be removed if the application is. And the processes for checking are done digitally. Things to Consider Before Applying for Paperless Personal Loan Keep your credit score up Your credit score shows how trustworthy you are based on how you’ve paid bills in the past. Try to pay your bills as quickly as you can. Before you try to get a loan, pay off any debts you still owe. Your credit score will go up because of this. Getting a loan would help if you had a good credit score (750 or more). Compare the Lenders Check out the interest rates and requirements for getting a loan before you apply for one. And other details about all the Personal Loan options you can choose from. This is the best way to ensure you get the best loan possible with as low an interest rate. Count All Expenses Check the costs of your loan, such as the interest rate and processing fees. Also, before agreeing, check for things like prepayment and more. Know Your Capacity to Repay Before you take out a loan, make sure you can pay it back. Make sure your salary is enough to cover the monthly EMI payments. For a few years without making your finances too tight. Loans Without Paperwork Using Mobile Applications Now, many lenders give loans to customers through mobile apps. This lets them reach a wide range of customers and meet their needs. Customers might get something out of this plan. By managing their loan accounts with their cell phones. Using these tools to help. They can track their debt and when to pay it back. [B-02] Conclusion Lenders and borrowers can benefit from paperless personal loans because of the use of tech. Personal loans have changed a lot in recent years. Whether in terms of price or how quickly they pay out. By getting rid of the hard-to-do paper filing process, you can save a lot of time and still get the loan money. Most of the largest banks in the country offer pre-approved loans to their customers. Pre-approved loans don’t need proof because the lender already knows the borrower’s profile. In India, many people already use Piramal Finance to get loans without paperwork. They will keep getting more and more popular in the years to come.

08-11-2023

Home Loan

Why You Should Get A Loan Against Property in Mumbai

Loans are one of the best ways to achieve your dreams. Out of many, loans against properties are the ones that have seemed lucrative in recent times. It can help you get the money you need to invest in your venture or cover your personal needs. Do you also want a property loan in a place like Mumbai? Keep reading to learn more about these kinds of loans. To obtain this loan, you must pledge your property. We will find out various factors, benefits, and downsides of a loan against property in this article. This article is dedicated to the loans against properties, their features, benefits, and the reasons to go for them in Mumbai. [B-01] What is the correct description of a loan against property? As mentioned, A loan against property is a loan you take from a lender by pledging your assets. You use a property as a medium of guarantee between you and the lender to make sure you repay your loan. The lender keeps your property unless you completely repay your loan. This property could be your house, a flat, or even a piece of land that has a market value. The lender charges you a rate of interest on the principal amount for a set period in return. You must repay your loan within this time limit through monthly instalments, as directed by your lender. In India, there are several banks and private financiers that provide you with property loans at different interest rates. The correct market value of your property determines your loan amount, interest rate, and repayment tenure. Mumbai: As the location for a loan against property. Popularly known as the “dream city” of the country, Mumbai stands as a huge source of revenue generation. It adds approximately $600 billion to the country’s overall revenue, which is daunting. Being the hub of entertainment, cinema, fashion, and trade, its contribution to the GDP is about 6.2%. With that level of economic activity, it might seem quite tough to get a loan against property in Mumbai. But with the correct know-how and the right approach, you can easily crack this nut and get a property loan. What are the benefits of having a loan against property in Mumbai? There are several benefits to availing of a loan against Mumbai property, some of which are listed below. Attractive interest rates: Interest rates on loans against property in Mumbai are quite low, so you can easily pay off your debt in small, easily repayable instalments. In Mumbai, the rate of interest starts at 9.50% per annum, which is an ideal number. The interest rates also depend on your credentials, like your credit score, loan history, etc., and your bank’s offers. Disbursal within 3 business days: Once all your documents are verified and you get the bank’s approval, you will get your property loan amount within 3 business days. This process can even be faster, provided your bank gets done with the verification process as quickly as possible. Huge value funding: Depending on your credentials and eligibility, the loan amount is decided by your banks. You can get as high as 5 crore rupees, or even more if the bank finds you the perfect candidate for this loan. Convenient tenure of repayment: The tenure of repayment in many cases for a loan against property is high so that you can conveniently repay your loan amount through instalments. The tenure can often be stretched to 20 years or even 30 years, depending upon the maximum limit of the bank. Low EMI per lakh: For every lakh, the EMI amount is low for property loans in Mumbai, which stands as a huge advantage for you. The lowest EMI per lakh for 30 years starts from 750 rupees onwards for a loan against property in Mumbai. For instance, the State Bank of India charges INR 812 for every lakh, HDFC charges INR 769 for every lakh, PNB charges INR 787 per lakh, and Axis Bank charges INR 870 for every lakh. Similarly, many more banks charge similar rates for a loan against property in Mumbai. Visit all the websites and compare all the options to find the best fit for you. No prepayment or foreclosure charges: If you want to prepay your instalments, your bank will not charge you any penalty. Also, if you want to close your loan accounts before the maturity period, in that case, your bank won’t charge you any extra fees. What are the eligibility requirements and documents needed to apply for a loan against property in Mumbai? For eligibility: You must fall into the age range of 25 to 70 years and either be a salaried or self-employed individual. You should have a work experience of about one year and a credit score of 750 or more to avail of a property loan in Mumbai. Documents: You must show your ID proof, address proof, and a copy of your property documents. You should have your latest salary slip (for salaried individuals), bank statements (last 3 months), and IT returns (for salaried individuals) as well. [B-02] Conclusion: In many cases, a loan against property is an ideal choice, especially if you want to invest that money in growing your business. However, sometimes, for personal uses like purchasing a house or a flat, you can also do so. You can use property loan calculators and compare different interest rates before deciding on the best option. If you loved reading this article and you want to read more about property loans, personal loans, and different investment schemes, you can prefer to visit Piramal Finance.

08-11-2023

Home Loan

Loan Against Property to Buy a New House or Flat

Buying a new house near a city is still a dream for many people. With the increasing market price of flats everywhere, people rush to own houses. But sometimes, without any financial help or a loan, this dream remains a dream. A loan can help you fulfil your dream of owning your own house. And out of many loan options, a loan against property could be the right fit for you. Instead of using a house loan, you can use this loan to buy a new house. Have you also wanted to apply for a loan against property for a long time? Do you want to know how to use it to buy your own house? Want to find out about the interest rates, tenure, and offers that come with it? Well, then read on! In this article, you will learn about the loan against property, its features and benefits, and how to use it to buy your own house. [B-01] What is a loan against a property, and why is it applied? A loan against property, as the name suggests, is financial aid that you receive from a lender by keeping your property as collateral. The lender uses this property as a guarantee to make sure you repay your debt. In return, the lender charges you a rate of interest for a specific period within which you are bound to pay the loan. As soon as you clear all your dues and get the green card from your lender, your property is no longer collateral and completely belongs to you. However, if you can’t pay your debt, the lender has every right to keep your collateral. Mortgage loans are a good option for borrowers with no security money or shares to pledge. In India, several banks provide these loans at reduced interest rates with multiple offers. What are the benefits of using a loan against property to buy a new house? There are several benefits to using a loan against property to buy a new house: High loan amount: If you want a lump sum to buy a new house, a loan against property can be the right fit. In many cases, banks allow up to 65% of the total value of your property. This is huge, especially for you to buy a new house. This one is a viable option with ongoing market prices, where property rates are touching the sky. In addition, if the market value of the property you are pledging is high, then the mortgage loan amount will also be high. Eye-catching interest rates: Banks charge a low-interest rate to borrowers to help them easily pay off their instalments. The interest rate on loans against properties depends on your credentials and what your bank offers. However, the interest rate range is between 8% per year and 25% per year. You will likely get a handsome offer if you have a good credit score and a good loan history. Fast disbursal: The disbursal period on most mortgage loans is between one and three days. If your bank doesn’t require bulky paperwork and unnecessary processing and verification, your disbursal period will be shortened to a great extent. And if your bank allows for online processing, the amount will be disbursed in less than that amount of time. A long period of repayment: Since your property is pledged and the loan amount is quite high, banks give you a very reasonable amount of time to repay your loan. The repayment tenure is subjective and mostly depends on your bank, but it can be stretched up to 20 years in many cases. Minimum extra charges: Charges like your processing fee, statutory bills, stamp duty, etc., are often zero or minimal on loan against property. Banks also do not charge you extra fees or penalties in most cases. The whole process remains transparent so that you can exercise at your convenience. Should you use a loan against property to buy a new house instead of a home loan? In most cases, you should use a home loan to buy a house instead of a loan against property. Home loans are specially designed to help you buy your own house. On the contrary, a loan against property is used to pledge assets to get funds to invest in your business. Furthermore, home loans give twin tax benefits and other perks you won’t get from a loan against property. In a home loan, you can claim the benefit for principal repayment under Section 80(c), but not in the loan against property. However, if you can’t avail of a home loan for any given reason, you might prefer a loan against property. Only in this case can you prefer to pledge your assets to get yourself a loan. You also have to keep in mind the downsides that you will be facing, if any. [B-02] Summing it up: A home loan is ideal for buying or constructing a house, but in some cases, for technical reasons, you can opt for a loan against property. The demerit is that you can’t avail yourself of the perks you would be getting from a home loan. You should contact your bank and talk to your advisor before making such a decision. If you have come this far, you are probably hooked on topics like these. If yes, visit Piramal Finance to learn more about home loans, personal finance, investment schemes, etc.

08-11-2023

Personal Loan

Is 700 a Good CIBIL Score to Avail Personal Loan?

When you contact a bank or financial firm for a personal loan, they first check your credit score. Your credit score, also known as your CIBIL score, is your credit record that covers the line of debt you have, your capacity to repay, and so on. The CIBIL score for a personal loan is a number that shows how careful you are with debt, such as credit card bills and loans. This score defines your credibility. It assists lenders in determining how much money a lender may give you and at what interest rate. Banks may refuse loan applications if the credit score is poor, or demand a higher interest rate. While having a strong CIBIL score for personal loans is the greatest indicator, you may still get a personal loan if your credit score is between 600 and 700. [B-01] What Role Does The Credit Score Play in Personal Loans? Credit bureaus generate the credit score as part of the overall credit report. The credit score reflects past credit card data, such as loan repayment habits, loans taken, defaults, etc. This assists lenders in evaluating the borrower’s credit and monetary ability to repay future loans, sparing them from dangerous debtors who may default. As a result, the credit rating is a vital piece of the recent budget. A good credit score ensures a lender of your creditworthiness and financial prudence. On the other hand, a low credit score makes a lender concerned about your ability to repay bills on time, placing you in the high-risk category. This might result in your loan being denied. What is The Perfect CIBIL score For a Personal Loan? The CIBIL score for personal loans is a widely accepted sign of your fiscal status. It’s a numerical analysis of your financial status. It provides lenders with specific factors to judge how you handled previous loans and if you can repay the debt if the personal loan is granted to you. A credit score is deemed great if it is between 750 and 900, with 900 being the highest possible number. A good credit score entitles the borrower to a greater loan amount, better interest rates, reduced EMIs, a longer loan period, and so on. A credit score of 550 to 749 is considered good, implying that you still pose a certain degree of risk to the lender. Yet, if other eligibility criteria are fulfilled, you may still be granted a personal loan. A credit score of 300 to 549 is deemed low and will result in the denial of your loan request. CIBIL Score for Personal LoansCredit Worthiness<300Very bad300 – 549Bad550 – 749Good750 – 900Excellent Factors That Affect Your CIBIL Score For a Personal Loan Outstanding Debt Always be sure to pay off any outstanding bills. Unpaid debts hurt your credit score. Even if the sum is modest, paying off any outstanding debts is best. Irresponsible Payment Behavior Every month, paying your credit card bills and loan EMIs on time is critical. A 30-day delay may drop your score by 100 points, according to a CIBIL investigation. If you have many credit cards and loans, it is a good idea to set up reminders to prevent missing or postponing payments. Any missing or late payments reflect adversely on your credit score and indicate that you are inconsistent in repaying your credit. Applying For Multiple Loans & Other Forms of Credit Lenders will want to examine your creditworthiness when you request a loan, and they will do so by retrieving your credit report. This is known as a hard inquiry. If you submit several applications, numerous credit queries will take place at the same time. These are reported and hurt your score, making you seem credit-hungry. If the loan application was recently denied, it is best not to seek credit from another lender right away. It is preferable to enhance your CIBIL score before reapplying. Paying Only The Least Amount Due If you consistently pay just the minimum amount required, you may be in debt. Rolling over debt and merely paying the minimal amount results in interest rising on your amount owed. As a result, it is recommended that you pay the credit card payments in full. It also displays bad repayment habits. High Credit Utilization Ratio This is the amount of credit used for the available credit limit. Experts suggest you should not use more than 30% of the credit limit. If you have spent more than half of your credit limit, it may hurt your credit score. Lenders will raise an eyebrow if you have a large credit exposure since it signals you are more likely to fail to get a personal loan. 5 Things That Can Help Improve Your CIBIL Score for Personal Loan Bank Account A healthy bank account shows a person’s ability to repay a loan. This enhances the likelihood of a loan being granted. A Good Source of Income A steady salary shows your ability to repay the loan. Even if you have a poor CIBIL score, this has a positive impact on your loan request. Guarantor If you have a poor CIBIL score, having a guarantor with a strong CIBIL score can boost your chances of acquiring a personal loan. Reduce The Loan Amount If you do not have the minimum CIBIL score for a personal loan, you may be able to secure a loan for a lower amount and at a higher interest rate. Recurring Payments Paying off pending debts, taxes, and bills on schedule can help improve your CIBIL score for personal loans. It could take some time, but it would still help. [B-02] Conclusion When it comes to maintaining a strong CIBIL score for personal loans, there are no shortcuts. However, if your rating falls between 600 to 700 and you desperately need money, you may still get a personal loan from many lenders. Before applying for a personal loan, carefully review the qualifying terms, interest rate, and other expenses. Read the loan contract thoroughly to make an informed decision. A loan may quickly become a burden. As a result, always pick the proper lender, compare rates, and pay your EMIs on time. People with average credit ratings have many options for personal loans in today’s market, yet, the only way to enhance your score is to repay your EMIs and finish your loan on time regularly. To learn more about the CIBIL score for personal loans, visit Piramal Finance. You may also explore their products and services.

08-11-2023

Personal Loan

5 Ways to Get the Best Personal Loan Interest Rate in India

A personal loan is a kind of credit that can be used for a variety of things. This loan may be useful to you whether you wish to plan a trip, have unpaid bills, or suffer from a fiscal or health emergency. Another perk is that this credit is unsecured. As a result, you may obtain it without putting up any safety. You may contact several financial firms available for an instant personal loan. Yet, before asking for a personal loan, you must examine a few key factors that will help you get the lowest personal loan interest rate. When applying for a bank loan, compare lending rates or other factors. In a hard situation, a low rate will greatly decrease your EMIs. This post will guide you on how to get a low personal loan interest rate easily. [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. Obtaining a personal 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. Factors Influencing Personal Loan Interest Rates Many lenders have developed guidelines for personal loan interest rates. Lenders base the interest rate offers on those guidelines. The following factors influence personal loan interest rates: Your Earnings Your income dictates the loan interest. Many lenders will believe you can make timely loan payments if you have a great salary and a steady income stream. You will benefit from lower rates and an easy personal loan if you make this impression. Loan Amount Your required loan amount is the most vital factor for the personal loan interest rate. The loan value given to you is set by your income and the sector in which you work. Repayment Period The duration of the line of credit directly affects the interest rate. The tried-to-offer rates would then reduce as the tenure lengthened. Potential for Repayment The capacity of the person to repay the loan is key in assessing interest rates. Many lenders believe you will repay the loan on time if you have no other debt obligations. Relation with the Lender Existing banks or firms may be granted a lower interest rate when asking for a personal loan if they strongly link with the loan provider. This is the bank’s option, and not all current clients will be given a positive interest rate. Rating of Credit Your credit score influences how much you can finance and your interest rate. As a result, interest rates can be much lower if you possess a credit score of at least 750 and no defaults. How to Get the Lowest Personal Loan Rate? Here are the 5 ways to get the best personal loan interest rate: Have a good credit rating A score of 700 or more is typically regarded to be a good score. A strong credit score helps your capacity to get new credit and allows you to get the loan amount with desired payback term at cost-effective rates. People with better credit scores are more likely to get a reduced personal loan rate on spending. A good credit score reflects groups give conduct and greater credit ratings. You can keep your credit score high by paying bills on time, preserving your credit record under 30%, having a diverse credit mix, avoiding combined loan enquiry with multiple lenders, which tends to increase the number of hard queries on your credit file, and so on. Check the rates given by various lenders If you fulfil many banks’ bank loan eligibility rules, you could always visit an online money market and evaluate the various offers. This might assist you in getting the best bargain. Good existing banking link Solid current contact with a lender may help you acquire a personal loan interest rate and better terms of service. This occurs because the lender is aware of your results add behaviour, and there is less risk in lending to an existing client. Examine the method of calculating the rate It is usually a good idea to check the method a lender uses to compute the rate charged on personal loans. Loans are often given at a lower rate, but you may wind up paying a greater interest sum at the end of the loan term. Lenders provide loans at either a fixed or decreasing rate if a fixed rate is paid on the whole loan principle during the life of the loan. In contrast, the declining balance method calculates personal loan interest rates solely on the existing principle. As a result, taking out a personal loan with a falling rate may cost you less than taking out a loan with a fixed rate, and vice versa. Have a solid job history Having a lengthy and stable job history might improve your loan options and help you receive a cheaper rate on your bank loan. Lenders often demand clients have a two-year total job history, including a year with the company. Employees of reputable public and commercial firms, federal or state authorities, and so on are often given personal loans with more ideal terms and lower rates. This is because these people have steady jobs and incomes, making them less likely to fail on loans. [B-02] Conclusion While taking a personal loan, the rate is a vital factor in assessing whether or not the loan meets your money needs. The rate charged by the financial firm is affected by many factors that have been covered. A low-interest rate raises the loan’s value by making repayment easy. At the same time, choosing which lender is best for a personal loan is vital. Keep in mind the things such as EMI, processing costs, application procedure, and so on when selecting a personal loan for you. Hope the tips discussed above will help you get a personal loan at the lowest rate. To learn more about the lowest personal loan interest rates, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Personal Loan

Emergency Loan: Get a Personal Loan for Urgent Needs

Quickly and easily pay unexpected costs like auto repairs or medical bills with an emergency loan, a short-term, low-cost unsecured loan. There are several emergency loans, including personal loans, credit card cash advances, and payday loans. A short-term loan could be an option if you do not have the necessary funds. But before you apply, you should educate yourself on emergency loans and eligibility criteria and carefully consider your options. This article highlights everything you need to know about emergency loans. [B-01] What are the types of emergency loans? A short-term loan used only for sudden expenses is known as an emergency loan. Here are a few types of loans that could be considered emergency loans: 1. Personal loans A personal loan is an unsecured loan that provides you with a lump sum. You do not need to provide any security against the loan. Over the length of the repayment term, you will pay EMIs. Personal loans, in contrast to many other sorts of emergency loans, have tenure starting from 6 months to many years. A personal loan can be helpful in many different situations. You can use the money for any expense. 2. Credit cards Credit cards are widely used for instant, direct payments. These are used to make purchases at stores. Credit cards are used to provide cash advances. That is, you pay with cash you do not have. Instead, you pay this borrowed amount at the end of a certain period (usually 30-45 days). You will receive a statement at the end of 30-45 days that highlights all your expenses. 3. Cash advance loans Cash advance emergency loans are short-term loans with a short payback period. The lenders of these loans are ready to work with people with low credit scores. In exchange, you have to provide security until you return the borrowed amount. Payday lenders provide quick cash advances. However, these have higher interest rates. How do you get an emergency loan? Before getting an emergency loan, decide what type of loan you need. You might want an emergency loan depending on your current expenses. Many lenders provide loans to borrowers with good and bad credit scores Your credit history and the amount of money you want will determine the interest rates and other costs. Many times these loans are approved swiftly. Here’s how to get an emergency loan from a personal loan lender: 1. Submit the proper paperwork. Submit the right paperwork with your application. You have to submit ID proof, bank statements, salary slips, and other documents. Keep the document in a file to make them easy to search. 2. Conduct a proper market study. Before selecting a lender, check the lender’s credibility. Here are the things you should look at: Find out how the lender is perceived by reading testimonials from current and former borrowers. Understand their market position. Compare the interest rate given by this lender and that in the market. Understand whether they provide a flexible payback period. 3. Submit your application. For an emergency loan, the application is approved quickly. It can be given within 24-48 hours. Lenders quickly disburse money into your accounts. Points to note before applying for an emergency loan There is no single standard for payday and other emergency loans. It is necessary to make a choice only after analysing markets and lenders. Below are a few points to consider before opting for an emergency loan. 1. Your credibility will be checked. Most lenders will look at your credit report. It will help them decide whether or not to offer you a short-term loan. Obtaining a loan will not be difficult if you have a high credit score. Do not worry too much if your credit score is poor. There are some lenders prepared to work with customers who have low scores. You can also offer collateral. 2. The payback period should be the focus. The payback period is the time you get to repay an emergency loan. It could be a few months to 7 years. When the repayment period is more, EMIs will be lower, but the interest will be greater. Therefore, consider all options before selecting the payback period. 3. Select a feasible rate of interest. When calculating the cost of your loan, the interest rate is the most crucial factor to consider. Most people want a low-interest-rate loan. You may be offered a high-interest-rate loan if your credit score is low. However, you can lower the interest rate by selecting a shorter tenure and smaller loan amount. 4. Consider the affordability of the loan. Check whether you can afford the EMIs for the loan before signing the agreement. Evaluate your total income and expenses to see whether you can afford the EMI. If you think the EMI is too high, you can opt for a loan with a longer tenure. You might also opt for a loan of a lower amount that has smaller EMIs. 5. Consider the charges beforehand. Emergency loans are also subject to charges. For example, you may be charged processing fees, prepayment charges, loan foreclosure fees and other charges. These may vary from 1% to 5% of the loan amount (or higher). Therefore, look through the additional charges section before signing the contract. [B-02] Conclusion The term emergency loan refers to any loan that can cover sudden expenses. Emergency loans have flexible repayment periods, interest rates and charges. Therefore, you should always consider all terms of the emergency loan before agreeing. Emergency loans are a type of personal loan with quick disbursal. You can reach out to an expert to understand more about emergency loans. For further details on emergency personal loans, visit Piramal Finance now.

08-11-2023

Cards

How to Make Credit Card Bill Payments Offline

The credit card is one of the most helpful financial instruments in today’s environment. While banks provide a broad range of credit cards to meet your demands, they also offer many credit card bill payment methods so that you can easily pay your credit card bill. With the growth of the internet and digital banking, various methods for paying credit card bills online exist. But what if you wish to make your payment offline? This blog will discuss how you can pay your credit card bill offline. [B-01] Offline Options for Credit Card Bill Payment The following are some of the offline options for paying credit card bills: Customer Support Service Various credit card issuers/banks enable their users to pay their credit card bills by calling customer service. Users must, however, have a savings or current account at the bank that issued their credit card. If so, proceed as follows: Call your bank’s customer service hotline (available on the bank’s official website). The IVR would walk you through the credit card bill payment procedure while protecting your credit card information. It is good to note that not all lenders provide this service to users. So it’s best to check this before going with the payment. ATM You may pay your credit card bill from an ATM if you have a savings account and a debit card with the same bank. The steps are as follows: Go to the ATM or the bank with your credit card. Put in your credit card. After entering the PIN, select ‘Services’, ‘Bill Payment’, and ‘Credit Card Bill Payment’. Enter your credit card’s 16-digit number. You may now see the whole bill and the minimum amount owed. Choose the amount you want to pay. Your credit card bill will be paid when you hit the confirm button. Over-the-Counter You may pay your credit card bill by walking to the local branch of the credit card provider. All you have to do is contact a bank official and follow the instructions below: Fill out the cash deposit sheet with the credit card information and bill amount. Submit the slip and cash to the counter, and your payment will be completed. Cheque or Demand Draft (DD) Settling your credit card balance with a cheque is the most simple offline payment option. The steps are as follows: Make your cheque payable to the firm that issued your credit card, then include your 16-digit card number. You may use any bank’s cheque or the bank to which your credit card is linked. The bank name does not need to be specified if you use the same cheque. You can pay later by writing a post-dated check. It is suggested that you put your phone number on the back of the cheque. Drop the cheque at any of the bank’s cheque drop sites or mail it to the bank whose credit card you have. A different bank’s cheque may take up to three working days to clear. As a result, it is critical to drop it off long before the due date to ensure the payment is made on time. Note that the cheque may be refused if inaccurate data is entered or the sign does not match. This failure to make the payment on the due date leads to late fines. Certain banks may levy a fee for cheque payments if the credit card amount is minor. Things to Keep in Mind When Making Credit Card Bill Payments Monitor your billing cycle Paying your bills on time is the most important component of avoiding financial difficulty. Missing the credit card bill payment deadline might result in hefty interest charges of up to 30%. Furthermore, your credit score will be affected. Whether you’re a new credit card user or not, check your billing cycle frequently to keep up with any changes. Most banks and non-banking financial firms allow you 28 days to pay your debts. Pay off the minimum debt amount Pay the minimum on your credit card account if you cannot pay the whole amount. This will help safeguard your interests. You will also have a few additional days to arrange the necessary funds. If you have many credit cards, start with paying the one with the highest interest rate. The greater your debt is, the higher your interest rate will be. Don’t be concerned if you have paid more than what is needed Mistakes happen, but financial mistakes may sting the hardest. Don’t be concerned if you misunderstood the bill amount or paid more than what was required. The extra amount will be deducted from your future invoices. It won’t go to waste, but make note of it and keep track of the difference in the next bill. You may contact the credit card issuer’s customer service if there are any issues. Make reading your bill statements a habit Even while transactions with credit cards are automated, they are not error-free. You must review your credit card account statements before making payments. It will also assist you in determining if a retailer has reimbursed you after retracting a transaction. [B-02] Conclusion Many individuals depend on credit cards to purchase items because using credit cards has become popular in recent years. Credit cards also give financial protection and many features and incentives that tempt customers. Having credit cards, however, is only advantageous if you pay your credit card payments on a timely basis. The sum spent in a billing period should be paid well before the due date, or a lower amount must be paid. If you don’t, you may end up in debt due to extra charges. While there are various choices for paying your credit card online, banks also provide options for paying your credit card account offline. This is helpful for folks who are new to internet banking. One method of paying your credit card bill offline is cash at the closest bank branch of your credit card issuer, for which you must pay a processing charge. Yet, there are other options that this piece just covered. To learn more about credit card bill payments, visit Piramal Finance and explore the products and services.

08-11-2023