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Personal Loan

How To Use Fixed Deposits To Get A Car Loan

Fixed deposits (FDs) are a popular way to invest money. Although mutual funds and other investment options provide higher returns, fixed deposits (FDs) remain in demand. In addition to guaranteed profits, FDs provide investors with significant liquidity. Did you know that you can use your fixed deposit to get a car loan for a reduced interest rate? Many financial institutions in India accept fixed deposits as collateral for car loans made by non-bank financial companies (NBFCs). Most people would consider this unconventional vehicle financing approach an overdraft. [B-01] Loan Against Fixed Deposit to Buy a Car No assets to pledge as security? You may quickly apply for a car loan against FD by using your fixed deposit as collateral. It is often known as an overdraft facility than a traditional loan. Car loan applications with a predetermined down payment are processed quickly. It is allowed for banks to lend 90% of the value of the FD for vehicle loans. It is vital that the loan may be secured without having to sacrifice your fixed deposit or interest earnings. How to Apply for a Car Loan Using a Fixed Deposit? An FD is an easy and practical choice for auto finance. It gets approved faster with less paperwork involved. The FD may still be utilized to get a car loan, and as a bonus, you can keep earning interest on the money invested. Here are the steps you need to do to get a car loan using a fixed deposit as collateral: Visit your preferred bank branch or NBFC. The financial institution can be the same one where your fixed deposit account was opened, or it can be different. Apply for a loan to get an overdraft on your fixed deposit. Hand over your fixed deposit receipts to the lender. The lender will recognize the fixed deposit as collateral and credit the funds to your bank account. Documents Required for a Car Loan Against FD A car loan against a predetermined down payment requires little documentation. This is because you already have a bank account with the lender. Since the documentation process for the fixed deposit is already complete, the paperwork is straightforward. The following documents must accompany your car loan application: Completed application form Payments you received from the lender once the fixed deposit was returned Legal Agreement Features of a Car Loan Against a Fixed Deposit Here are some important points about taking a car loan against your fixed deposit: You may get a car loan for up to 90% of your fixed deposit value. The lender determines the maximum amount that can be borrowed. These loans often have interest rates ranging between 2% to 3% more than the rate you earn on your fixed deposit. For instance, if your fixed deposit yields 8%, the car loan interest rate can be between 10% and 11% annually. No origination fees are associated with a car loan issued against a fixed deposit. However, there are some additional costs, such as pre-closing fees and stamp duty charges. You can choose the period for repaying your loan. However, it should be, at most, the term of your fixed deposit. For example, if the length of your fixed deposit is five years, you can choose a loan repayment term between one and five years. Benefits of Using a Car Loan Against FD There are several positives associated with securing auto finance against a fixed deposit: The interest rate is cheaper compared to conventional vehicle loans. A car loan may be repaid over a period that is totally up to the borrower. It’s important to remember that the duration can be, at most, the duration of your fixed deposit. The application procedure for a car loan against FD is quick and easy. It requires less documentation and may thus be approved faster. You may get car loans to help you purchase a vehicle without draining your resources. Your fixed deposit will continue to earn interest even if you take a loan against it. Auto Loans vs Fixed-rate Deposit Rates for Interest When you apply for a car loan using a fixed deposit as collateral, the bank treats it the same as a demand loan or overdraft. Such loans often have an interest rate of just 2-3% more than the interest earned on the FD. The interest rate is much lower than those charged on an ordinary car loan. On average, a car loan interest rate ranges from 9% to 12% per annum, or even higher. Funding for a Term Deposit Most Indian banks will lend you somewhere from 70% to 90% of the fixed deposit amount. However, this varies between lenders. The likelihood of getting a car loan from a financial institution increases if you have a strong credit history and credit score. The Structure of a Loan and Repayment Terms Loan terms always match the duration of the corresponding fixed-rate investment. The car loan term may be lower than the fixed deposit maturity, but it can only be for a while. If you had a term deposit with a five-year term, you can get a loan with a period of anything from one to five years. However, the tenure must be at most five years. [B-02] The Bottom Line A fixed deposit benefits you in many ways. It’s a safe method to put money to work, with guaranteed returns and tax benefits. You can also use your fixed deposit as collateral for a loan, such as a car loan. To learn more about using fixed deposits to get a loan, you can read related blogs on the Piramal Finance website.
08-11-2023
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Guide

Top reasons you must know forgetting a low PF pension

A provident fund is an aid for employees working in the private and government section. The working of a provident fund (PF) is simple. You have to pay 10% of your income every month to the fund. Additionally, your employer will also contribute the same amount to the fund. Therefore, 20% of the basic salary is added to the PF account monthly. The money can then be used at the time of retirement. Once the money is accumulated in the account and you have retired, you can withdraw the money as a lump sum payment or as small recurring payments. If you withdraw the amount as periodic payments, they are called a PF pension. Every employee is given a unique account number (UAN). It is a universal number for the PF account. If you change your job, you can provide your employer with your UAN number, and the PF contribution will be deposited in the same account. Therefore, at the time of requirement, you need not close multiple accounts. [B-01] How does the PF pension work? You must understand how PF pension works. You can receive a PF pension every month after retirement. Note that you cannot withdraw any money from this account when you are employed. However, partial withdrawal from your account is permitted for emergencies. In such situations, the withdrawal limit is calculated based on your situation. However, in general cases, you will get a PF pension monthly. The pension you can withdraw from the PF account after retirement depends on when you joined the service. If you have contributed to the PF account before 2014, the calculation will be on prorate basis, and if you have made contributions after 2014, the regulation calculation will be followed. The formula for calculating PF pension is as follows: Pension = (average or pensionable salary x total number of years of contribution)/70 For example, if you contributed for five years and nine months till 2014 with a pensionable salary of rs. 5000, your pension will be calculated as follows: (5000X6)/70 = Rs. 428.57 On the other hand, after 2014, the pensionable salary is Rs. 15,000, and you have contributed for twelve years and four months. In this case, the pension will be as follows: (15,000×12)/70 = Rs. 2571.43 Therefore, the total pension you will receive from your PF account every month is Rs. 3000. Here, the pensionable amount until 2014 is Rs. 5000 and the number of years of contribution is six years since we consider the prorate basis calculation. On the other hand, for contributions after 2014, the pensionable salary is Rs. 15,000, and the total contribution duration to the PF fund is 12 years. What is a low PF pension? Employees can withdraw a minimum and maximum amount from their PF account after retirement. The minimum amount you can draw is Rs 1000 per month. A low PF pension means withdrawing a lower amount from the PF fund every month instead of a higher amount. Although you can withdraw the pension in a lump sum instead of monthly payments, monthly payments are much more beneficial and easier to handle. Besides, you can easily withdraw a low PF pension for early retirement, ensuring you have enough funds in your PF account after you turn 60. What are the benefits of getting a low PF pension? Getting a low PF pension has many benefits. But, people are unaware of these. Therefore, they either opt for a higher pension or open other pension savings accounts. Here are some of the benefits of getting a low PF pension amount. 1. You will have funds for a longer duration. First and foremost, you can save more by withdrawing a low PF pension from your PF account. Let’s consider an example. You have Rs 50,000 in your PF account. The minimum withdrawal is Rs. 1,000, and the maximum withdrawal limit is Rs. 7,500. Therefore, you can use the fund for 6 ½ to 50 months, depending on how much you withdraw. This is because when you receive Rs. 1,000, that is, the minimum amount, the total amount will last for 50 months. Therefore, you can choose a low PF pension. You can use the money for a longer duration. 2. You get tax benefits on a PF pension. Another significant benefit of withdrawing a low PF pension is tax exemption. Tax exemption has a maximum limit of Rs 3 lakhs. Usually, when you remove a large PF pension amount or a lump sum amount, you have to pay taxes according to Section 16 of the Income Tax Act. As a result, the money you are left with is much less than you expected. On the contrary, when you withdraw a low PF pension, the taxation amount will also reduce. 3. It can help your nominees. According to the EPS and EPF rules, your child or widow can withdraw the pension after your death. If you opt for a low PF pension, the amount left in the PF account can benefit your nominees. This will allow them to take care of immediate expenses or household expenses after your death. They can further adjust the PF pension according to their requirement. [B-02] Conclusion PF is a beneficial tool introduced by the Indian government for employees. Contributions to a PF account are compulsory for both the employer and the employee. With these benefits of a low PF pension, you can now go through the EPS scheme details to understand more about PF contribution if you want to read more similar articles, visit Piramal Finance. Piramal Finance provides information on personal finance, business finance, retirement, investment, and many other financial categories.
08-11-2023
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Business Loan

Best and useful tips of SME loan for young entrepreneurs

A successful entrepreneur must invest some money before he can start earning income. One entrepreneur’s source of funding might be different from another’s. Some people can borrow money from their relatives, close friends, or relatives. However, others may want to consider banks or NBFCs that may be able to lend them money.In case you are a young entrepreneur who is looking to get SME loans, keep reading to find some useful tips that would make your job easier. [B-01] What is an SME Loan? SME loans are loans designed to meet the financial needs of Small and Medium Enterprises (SMEs). Small and Medium Enterprises Loans are commercial loans that are only given to small and medium businesses. These loans are typically collateral-free and are specifically designed to meet the needs and requirements of SMEs. If you are looking for small business loans, the lender will look at your past business operations. If your current business has been operating for at least 2-3 years and you have been in the industry for at least 5 years then it would be an easy sanction. In case you have better business management experience then you can also avail of lower interest rates on your loan. The terms and conditions of these loans may vary according to the lender. 10 Tips for Young Entrepreneurs to get SME Loans: Starting a business and being an entrepreneur is challenging, especially for young people. The difficulties that start-ups face include expanding the business, reaching out to the market, assembling the ideal team, and fending off competitors. Young entrepreneurs require financial assistance to realize their ideas and turn them into profitable ventures. Funding is essential for any business to survive and deal with daily challenges. To meet their financial needs, one of their options is to obtain an SME loan. Here are a few useful tips that young entrepreneurs may use while taking a loan. Identify the purpose: Before applying for a loan, consider how the funds will be used for your business. Planning out the costs and the timing of financing should be done carefully. In most cases, lenders provide working capital loans to cover a variety of business requirements, including regular operating costs. Maintain your CBIL score: Your CIBIL score is crucial to determine your capacity to repay. When evaluating your loan application, some lenders will even look at your own credit score. To improve your CIBIL score you can pay off your current debt on time and avoid using all your credit. Look for unsecured loans: SME loans are generally not secured by real estate or any other assets. Therefore, you are not required to provide any security for the loan to get approved. This is because their goal is to assist small businesses in increasing their output. Documentation: It’s important to take note of all the documents needed to submit to the lender for a loan application. The required papers for a typical loan application process fall into categories such as KYC, Aadhar, PAN, and license. Restrict loan requirements: The most effective advice for repaying your loan is to cap your requirements. People naturally tend to borrow more money when taking out a loan. Hence, it is essential that you repay the loan quickly and with interest. You should borrow money that is absolutely necessary. Compare types of loans: Before submitting an application for an SME loan, you should always thoroughly research the requirements. You can also look into the government’s SME loan programs, such as the PMMY and PMS. Choose the type of loan based on your ability to repay. Before making any commitments, consult an accountant. Check eligibility requirements: Entrepreneurs must check their loan eligibility before making any application. This will protect your credibility from being damaged by too many loan inquiries in a short period of time. Even if the loan is approved, the applicant’s credit score might be negatively impacted by a series of credit inquiries.Numerous factors, such as the number of loan accounts, late or defaulted EMI payments, financial history, and regularity of spending have an impact on credit scores. Have a plan: Repayment is an important stage of a loan cycle. It is essential to develop and follow a repayment plan. Having a clear understanding of ongoing expenses will keep your business finances in place. Be ready with a bank statement: A bank statement is necessary to confirm that the applicant is entitled to profits. The lender will also receive confirmation of the applicant’s income via a bank statement. This makes it simpler for them to determine the loan amount and term based on the applicant’s income. Maintain good relationships: If you are successful in obtaining a loan from any lender, you should keep in touch with them. Your lender’s assistance and guidance may be required in the future. Maintaining a good relationship with your lender may also allow you to receive additional loan benefits. [B-02] The bottom line Money is the most important factor for any business, whether it is a start-up or a large multinational corporation. Typically, start-ups go through several rounds of funding, with each level securing enough money to advance to the next. However, the majority of startups continue to operate with inadequate funding. This is why so many young entrepreneurs seek an SME loan. You can make the loan process much easier for young entrepreneurs by following the tips above. If in doubt, consider consulting an institution like Piramal Finance. Check out the SME loans that they offer. Their experts can help you know the eligibility criteria, and loan requirements, give you repayment options, and help you choose the most suited loan type for your business.
08-11-2023
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How To?

How to take your First Step towards Fitness and Wellness

Health, fitness and well-being are the true engines of happiness. The modern concept of health and wellness encompasses more than just physical health. It emphasises the integration of one’s mental, physical, and emotional well-being. Given the overwhelming body of research documenting the exponential growth of obesity among mankind and the diseases and problems it causes, the importance of fitness and well-being can no longer be ignored. The global wellness industry is gaining momentum as more and more people realise the need for a holistic approach to health. [B-01] To maintain fitness, remember the following tips Your every action impacts more than one physical component. The effect on the body and the mind is similar to that of a wave. This connection makes a comprehensive approach to exercise and fitness, and well-being vital. Make health a priority A survey found that 76% of workers experienced difficulties or hardships directly from their fitness and well-being. Exercising regularly has numerous positive effects, as shown by studies. However, progress may take time. It is crucial to engage in physical activity consistently. If you want to maintain your health, you won’t just “find” the time for it; you’ll have to “make” it. To kick things off, you may purchase top-tier fitness equipment, sign up for a gym membership, or engage in activities like cycling in the great outdoors. The list of benefits from maintaining an exercise routine is long and includes fewer negative effects on fitness and well-being. Seven hours of exercise each week reduces the risk of premature death by 40%. Be Mindful Of What You Eat Due to our hectic lifestyles, we often resort to “junk food” or “rapid meals.” But do you realise the toll it has on your body? About 6,78,000 fatalities annually in the United States may be attributed to poor nutrition and obesity-related diseases, including heart disease and Type 2 diabetes. A nutritious diet leads to a healthy lifestyle, allowing people to take full advantage of life. Since food directly affects the body, mind, and spirit, it’s critical to make good eating a habit. The risks of obesity-related diseases, including cancer, arthritis, and diabetes, may be controlled by sticking to a healthy weight maintenance plan. Using an air fryer is a fantastic method for reducing oil use. Prioritise Your Health. Roughly 80% of the population suffers from at least one health problem. Finding harmony between one’s physical, emotional, and mental wellness fitness is essential for realising one’s full potential and living a more satisfying life. A decline in your physical health mirrors a decline in your mental health. Similarly, if your physical condition is deteriorating, your mood will suffer. The correlation between happiness and physical fitness is clearly shown here. Therefore, physical fitness must focus on real fitness and well-being. As many as 100 million neurons line the stomach, earning it the nickname “second brain.” The gut makes most of the body’s serotonin (95%) and dopamine (50%). A disruption or imbalance of these hormones and the GI flora may contribute to depression, stress, and other mental health issues. However, improving one’s mental health could be possible by increasing one’s dietary intake and re-establishing a healthy gut flora balance. Invest in an air and water filter and treat yourself to regular massages and spa days to create a more relaxing environment at home. A makeover may transform a person’s outlook on life if they can reclaim their self-esteem. Before now, it was taboo to talk about things like hair transplants and plastic surgery in public. As more individuals learn about the positive impacts of these treatments, they rise in popularity and become more accessible financially. Consider them without hesitating. Positive emotions and an attractive appearance are crucial to one’s happiness. Buy Yourself A Home Workout Equipment Due to your busy job and social schedule, you may miss the gym for a workout. But if you want to get in shape for good fitness and well-being, you can build a home gym, stop making excuses, and start seeing results. A recent survey found that inactive gym memberships outnumber redundant ones. It’s very common for people to give excuses for not going to the gym, such as a lack of time, a lack of a convenient gym, a lack of gym buddies, or any other problems. Rather, you should consider getting a home gym. In addition to their usefulness, home gyms are cost-effective. A hefty initial investment cost may discourage you from proceeding, but consider it an investment for the future. There are several advantages to working out in the comfort of your home, such as saving time and money, maintaining privacy, and avoiding distractions. Have you considered the possibility that you may not need any more convincing? Learn the compelling case for starting a home gym right now. Many exercise tools are available today, but picking the right one may be a challenge. When selecting exercise tools, you should think about the following: Objective Your fitness and well-being objective should guide your choice of equipment. Buying a treadmill for your house may be a good idea if you want to shed some pounds. Similarly, you must invest in an exercise cycle if you want to increase your stamina and core strength. If you want to get the most out of your workouts, the apparatus you use should reflect that. Space: Think about where you will install a treadmill or exercise bike in your house before you rush out to get one. Before making a purchase, take measurements of the area where the exercise machine should be kept and compare them to the product’s dimensions. Organise your exercise at home and do it without any fuss. Cost: Don’t buy into the illusion that buying expensive gym equipment will make you exercise every day. Estimate how much you can spend on your exercise equipment. The investment in higher-quality training equipment will pay for itself over time, but it is costly. As long as you keep up with routine maintenance, you won’t have to think about replacing it for years. [B-02] Conclusion Once you know what kind of exercise machine would best suit your needs, you may compare pricing and features online before making a final decision. Give the workout equipment a test run to see whether it meets your needs in terms of comfort. But don’t allow the cost of a workout machine to stop you from getting in shape. Many companies offer an EMI plan for exercise equipment so that you may get in shape even if you can’t afford to pay for it all at once. To help you achieve your fitness and well-being objectives, EMI may be used to purchase workout equipment. Visit Piramal Finance for more information on effective EMI schemes.
08-11-2023
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Personal Loan

How can you apply for an instant personal loan online at Piramal Finance?

What is a personal loan? A customer can borrow a personal loan from a creditor for almost any reason, such as to repay a debt or finance a big purchase. Once you get the funds, you have to keep paying the loan until it’s all paid off. One of their main advantages is that personal loans have a set rate of interest and payback schedule compared to credit cards. However, obtaining personal loans from banks or offline lenders may be time-consuming and risky. Offline lenders often charge increased rates of interest and levy high default charges. Piramal Finance is your one-stop solution to all these problems. We not only sanction quick personal loans but also value our clients’ transparency. The application process, terms and eligibility criteria are simple and explained below. [B-01] Eligibility to apply for a personal loan: We are now offering personal loans to earning individuals. You can apply for a loan whether you work in the government or private sector. People employed in multinational companies or having businesses are also eligible. However, they need to have at least 6 months of work experience in the present firm. The loan amount sanctioned will range from 1 to 10 lakhs. The interest rate starts from 12.99% annually, and all you would need is a basic monthly salary of Rs. 20,000–25,000. The repayment period ranges from 1 to 5 years. The required age to get a personal loan is between 21 and 60 years. Clients do not have to pay a single penny from their pockets to apply for a personal loan. They are not obligated to make any payments throughout the loan application process either. All charges and costs will be subtracted from the total sum of money given. The charges include stamp duty, processing costs, documentation expenses, and the applicable GST. We appreciate our customer’s clarity, and any extra charges applicable will be mentioned in detail. Let’s look at the documents needed! Applying for a personal loan in Piramal Finance is quick and easy. You do not have to go through burdensome paperwork or wait in a queue to borrow money. All that is needed are as follows: Pan card Latest photograph Any identity proof. (Like Adhaar card, Voter ID card, Passport, or driving license.) An Address proof. (Like Adhaar card, Voter card, Passport, driving license, or electricity bill.) Income proof that includes the latest pay slip and the last three months’ bank statements. Apply from anywhere, at any time! All you would need to apply for a personal loan with us is a smartphone or laptop and an internet connection. You do not even need to have net banking for the application. Complete these three steps to obtain a personal loan immediately: 1. Tap on the “Apply Now” box after entering your contact information in the section below. 2. Fill out the application by providing the necessary information as mentioned below. a. The amount of loan required. b. One-time password. c. Your full name. d. Choose the Piramal Finance location that is closest to you. e. Choose your line of work. f. Choose the range of your monthly salary. 3. A consultant from our company will contact you at the earliest to finish your application. Once you finish providing the details, your application will be sent for internal assessment. After that, the approved sum of money is notified to the client. Upon receiving confirmation from the client on the approved amount, we immediately start the disbursal process. It takes about 2–3 days for the loan balance to reflect in the client’s bank account. Would you need collaterals? The answer is No! Piramal Finance offers personal loans that are free of security. This sum is only sanctioned if the client qualifies for it in credit terms. Can you have co-applicants? Yes! To increase the chances of getting a loan, sometimes combining income is needed. Here. a co-application is required. The only person who can apply as a co-applicant is the spouse. The co-applicant also needs to submit the aforementioned documents while applying for the loan. What happens when you miss a repayment? The default charges are as low as 24% annually or 2% monthly on a missed EMI. Let’s look at an example: A quote for an Rs. 5 lakh personal loan. The EMI to be paid monthly on the loan amount of 5 lakh would be Rs. 11,377. This is when the interest rate is fixed at 12.99% annually. We consider the following to assess the level of risk from each borrower: The consumer’s background and market reputation. Their use of internal credit is also noted. If the loan qualifies for bank funding, the kind of facility, and refinancing options. The loan’s fundamental characteristics—loan to asset value— are also important. The duration of the partnership and the client’s past repayment history. Customers’ overall return and possibility for growth. The ability of a client to pay back according to cash flow. The type and value of primary or secondary collateral. Assets that are being funded will be used as collateral for a loan. Interest and a possible failure of the linked business. Regulatory requirements, if any. Any additional variables that might apply in a given situation. The requested loan’s term, amount, and repayment plan. [B-02] Depending on how a number of the mentioned factors are combined, different customers may pay a varying interest rate for a similar period. Applying for a personal loan at Piramal Finance is 100% secure and is trusted by lakhs of customers. The flexible EMI and loan repayment terms are among the company’s best offers. Moreover, the hassle-free application process and quick sanctions attract several clients. Think no more and choose Piramal Finance to get your personal loan approved in no time!
08-11-2023
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Banking

Pros and Cons of Net Banking You Need to Know

Fintech has changed the banking industry completely. It has led to the creation of various tools that have helped people easily access their banking services. One of these tools is net banking. Every major banking institution has invested in this tool. This is because it makes banking simple and easy for you. It exceeds every benefit a traditional brick-and-mortar bank has to offer you. It also saves you the hassle of going to the bank for every little service you want. Banks noticed this issue and introduced net banking to their customers. It makes it easier, simplified and accessible for people. [B-01] What is net banking? People’s use of different banking services has changed as a result of net banking. Making payments and transferring money has become easier because of internet banking. You can easily use financial and non-financial services from net banking. People prefer using Internet banking. It is because it eliminates the need to physically visit a financial institution. You can quickly access different financial services using net banking. These include money transfers, applying for FDs and RDs, transaction history, and more. It offers instant access to all banking services. These include keeping a check on your account balance and transaction history, paying bills, and transferring funds. It is one of the main features of net banking. You possess a unique ID and password to protect your account. So it is safe to use for people. Through net banking, you can update or disable your debit/credit cards. You can also apply for a loan or insurance plan. It has different features that benefit people in their everyday life. Net banking has its pros and cons like every other tool. Benefits of using net banking Easy accessibility of banking services The use of your banking services is made simple and easy to use through Internet Banking. You can use these at any time and from any place. It is a useful tool that can be used anywhere, 24/7. Sending money is simpler. This is because it is secure compared to sending a registered check. You can also easily apply for a personal loan with less paperwork. It is a convenient banking tool to use. A more efficient and simple internet experience It offers a simple yet secure online experience. You can manage all of your accounts at your fingertips as they are constantly in your control. From a single secure website, you can check your transaction history, loans, and account balance. Booking paymentsYou may open a recurring deposit account quickly and easily. According to your comfort and choices, select the deposit type, amount, and investment term. The wide options of add-on servicesA wide range of other services is offered by Net Banking. These include buying or selling mutual funds, getting insurance, and applying for various loans. You can also set up automatic payments for a mix of recurrent costs using your Net banking account. You can receive monthly payments from vendors. It helps you manage your cash flow and account transactions. This is because it is less expensive to run a net banking service than a traditional bank. Cons of using net banking Some security concerns have been raised There were cases where internet banking was criticized because of its lenient security system. For this, the banking institution regularly upgrades its security firewalls and software. This is to ensure that your information is safe and secure. Banks pay a lot to safeguard their users’ information. Takes time to learn If you’re a person who has a deep understanding of the internet, it would be easier for you to use Net banking. But many people have a difficult time using internet banking. This is because they don’t have an understanding of it. The password that you use, or user Id may be difficult to use. To make it easier for you they provide various tutorials. These can guide you through the process and make it easier for you to use. Impulse purchasing When you can use your funds at your fingertips, it becomes easier and quicker to buy anything you want. This leads to impulse purchases that you may regret later. Be aware of your spending habits and track your purchases. No scope for a personal relationship When you visit your bank branch you receive personal attention. This leads to a personal relationship with the bank. The bank can give personalized service and your issues are solved. In net banking instead of face-to-face meetings, various banks offer phone-based or chat-based customer services. Depositing cash can be tough To deposit cash you would have to visit an ATM or your bank’s branch. Sometimes you may need to deposit it into your traditional bank account and then transfer it to your online bank account from there. You can also deposit the money through a money order and deposit it electronically. [B-02] The bottom line After learning the pros and cons of net banking, it is very clear that the benefits outweigh the disadvantages. You can use different additional services through online banking. One of them is applying for loans. Check out the loans offered by Piramal Finance and find your preferred plan. While using net banking, make sure you follow all the security guidelines for an easy, secure and simple experience. Online banking can be used through your computer or mobile. All you need is a bank account, password, a good internet connection and a device to use your internet banking. Have a quick and simple net banking experience with only minimal steps to follow.
08-11-2023
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Home Loan

Who Is Eligible For Loan Against Property

When you need a quick loan for personal purposes, a personal loan is often the first option that comes to mind. However, getting a personal loan approved can be tough due to its strict eligibility criteria. Even if you get it, you’re under the constant stress of quick repayment to avoid a damaged credit score. But what if we told you there is a much easier and safer alternative to personal loans? Loans against property (LAP) are loans you get by keeping any property you own as collateral. Unlike personal loans, you can quickly get a large LAP with a long tenure and low-interest rate against any property! All you need to do is meet some simple loan against property eligibility criteria. Sounds interesting? Keep reading to find all you need to know about loans against property, their advantages, and the loan against property eligibility criteria. Let’s begin! [B-01] What is LAP? A Loan Against Property (LAP) is a loan approved against an asset called security or collateral. The collateral can be entirely constructed, freehold commercial, industrial, or residential properties. Through LAP, you can raise funds for your various requirements at a low-interest rate. Your lender will never ask you how you have spent the money. Some typical applications of LAPs include: Financing your business Revamping your living space Addressing your financial requirements Any other personal needs Notably, you cannot sell the collateral property during the loan tenure. Of course, you can use it during this duration, but the lender will have control over it. Advantages Of A LAP Over A Personal Loan If you own sufficient property and meet the loan against property eligibility criteria, a LAP should be your first choice to raise funds for your personal needs. Here are a few reasons why you should do so- LAPs have lower interest rates than personal loans, as they are less risky. If you default on a LAP, your lender will sell the collateral and recover the amount. You can raise higher loan amounts in LAPs and for a longer tenure. While in a personal loan, the maximum amount you can raise ranges between Rs.15 -20 lakh. Besides, personal loans are short-term ones, so you need to repay them in a shorter period. Many times, it makes repayment painful. LAPs carry lower processing fees compared to personal loans. The processing fee is a one-time expense you must pay the lender along with your loan application. It’s a non-refundable charge that varies from one lender to another. You can raise funds through LAPs even if you have a low credit score as you’re pledging your property. But in the case of personal loans, meeting the loan against property eligibility criteria can be very challenging if your credit score is not so impressive. If you own a property, it’s easier to raise funds through LAPs than through personal loans. In a personal loan, the lender will assess your income level, current liabilities, credit score, etc., before extending the fund. Loans against property eligibility criteria are easier to meet as the lender takes less risk. What Is The Maximum LAP You Can Get? The maximum amount you can raise through a LAP depends upon the value of the collateral. But you won’t get a loan equivalent to the property’s value. Instead, it’ll be a percentage of the property’s value. Usually, this percentage (called the Loan-to-Value ratio) ranges between 40-75% of the property’s value, varying from one lender to another. However, you must fulfil the loan against property eligibility criteria to get any amount of LAP. We will now discuss these eligibility criteria. Who Can Take A Loan Against Property? LAP is a better choice for loan seekers, but lenders extend it to only a few categories. The following categories of people meet the basic loan against property eligibility requirements to get a LAP: Salaried employees- Individuals working in private and public sectors can get a LAP. Self-employed individuals- A self-employed person filing Income Tax Returns (ITR) can get a LAP. Self-employed professionals like CA, doctors, lawyers, etc., also fall under this category. Small and Medium Enterprises- SMEs can pledge their industrial properties to get a LAP. Other LAP Eligibility Criteria Some other loans against property eligibility criteria can also impact your loan against property eligibility and interest rates depending on the lender’s policies. Let’s check them below: Profile of the applicant: The lender decides the interest rate of your LAP depending on your age, profession, and income. For instance, people nearer to retirement may need to pay higher loans against property interest rates. Credit history of the applicant: Credit history plays a vital role in deciding the loan against property interest rates. So, you may find it hard to get a LAP if you have a history of loan defaulting or rejection of your loan applications. Loan tenure: If you apply for a loan with a longer term, chances are high that your lender will approve it. This is because the interest portion of a long-term loan is larger than that of a short-term loan. Loan amount: If you’re applying for a significant amount, opt for a long tenure. It improves your chance of getting approval and reduces the EMI burden. Documents of the property: Before approving your loan request, the lender will verify the collateral records to ensure no legal loopholes. Records of ITR: If you’re self-employed, your ITR records play a crucial role in your loan against property eligibility. Documents Needed For A LAP Along with the loan application, you must submit the following documents to get a LAP- Your identity proof Address proof Date of birth proof Proof of income Signature proof Copy of an audited financial statement (for SMEs and self-employed) Bank statement for the last six months ITR of last three years Form 16 Documents of the pledged property [B-02] Summing Up A LAP is a multipurpose loan to easily address fund requirements. And the benefits of low-interest rates, long tenors, and large sums make it an attractive option. However, to avoid hassles, you must check your eligibility and documentation before going for the loan. You can also contact an experienced agency like Piramal Finance to get a LAP quickly and simply. The experts at Piramal will help you get the best deals, meet the loan against property eligibility criteria, and complete the entire application process from the comfort of your home!
08-11-2023
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Personal Loan

How Can You Apply for a Personal Loan Online in Pune?

If we do not proceed cautiously with our salary, we can be surrounded by unplanned expenses. It can be an expensive meal at a restaurant or a sudden weekend trip you took with your friends. These expenses often dry up your salary and savings. So, what should you do if you need money quickly to cover some unplanned expenses? You cannot always ask your friends and family to help you, right? To tackle these situations, you can apply for a personal loan online. If you have a good credit score or a CIBIL Score of 750 or above, it will be very easy to get an instant loan. But if you are looking for a personal loan online for the first time, you need to learn a thing or two and keep a few things in mind. But first, let us learn how to fill out a loan application online. [B-01] How to Apply for an Online Loan Application If you are looking for an online loan, you can go directly to Piramal Finance’s website, one of the leading NBFCs in India, and fill out the form. After filling out the form carefully, you can expect a phone call from an agent for further processing. You can also apply for a loan application online through our mobile application, available at Google’s Play Store and Apple’s AppStore. After a consultation with our loan agent, you need to submit some essential documents for loan processing. Once you submit the documents, our agency will verify them along with your CIBIL score. If everything checks out, then the loan amount will be transferred to your preferred bank account in a quick nick of time. But are you eligible for an online personal loan? Are you Eligible for a Personal Loan Online? If you want a quick loan, you must fulfil some eligibility criteria and produce some required documents. They are described below: You must be an Indian citizen, above 21 years old, and below 60 years old. You must have a permanent job for at least six months, with a minimum monthly salary of INR 25,000. If you have a business or are self-employed, you must produce your business documents proving that your business is at least three years old. You will also need some essential documents like a PAN, an Aadhar card, etc. Required Essential Documents to Get a Personal Loan Online If you are looking for an online loan, you must furnish some important documents. PAN Card Latest Salary Slip Bank statement for at least the last three months Identity Proof: Any one of the following: Aadhar Card Driving License Voter’s ID Card or EPIC Passport Address Proof: Any one of the following: Water Bill Electricity Bill Aadhar Card Driving License Voter’s ID Card or EPIC Passport If you require a higher loan amount than your permissible limits, you can apply as a co-applicant and take the online loan. In general, you need to check these crucial things: (1) Your Credit Score, (2) Selecting a lender, and (3) Verify Loan Criteria and Charges. What is Credit Score or CIBIL Score? The Credit Score, or CIBIL Score, is a generalised score provided by TransUnion CIBIL Limited (Formerly known as Credit Records Bureau of India Limited) after checking your PAN and financial transaction details. Their score is valid across India and all lending companies, such as Banks and NBFCs like Piramal Finance. The agencies check and verify the score to calculate your permissible loan amount limits over your online loan application. Generally, the lending agencies want your CIBIL score to be 750 or above. You can check your CIBIL score here at the agency’s official website for free. If your credit score is below 750, do not worry. The score is calculated depending on your profession. Suppose you are not a salaried person, are self-employed, or run a business. In that case, you can still get a decent amount of personal loans online from a lending agency. But what if you don’t have a ‘good’ CIBIL score? Or a score below 750? What if Your CIBIL Score is Low? Although your CIBIL score is low, you can still get a personal loan online. But in those cases, you may need to provide collateral or a guarantor. You also may not get the desired amount of loan you asked for at the lending agency. Previous loan repayment delays or existing loans can block you from getting a new personal loan online. The lending agencies often do not want to give loans to those with no fixed or salaried income. Selecting a Lender for Your Online Loan There are several easy ways you can take to improve your current credit score and get your desired loan amount. But whatever you do, you should not fall for fake or fraudulent agencies. They can only give you fake promises of quick loans, even without any proper documents or collateral. So, before doing any business with any lender, check and verify their credentials and ensure they are registered with the RBI; otherwise, you can get scammed. For example, you can always trust Piramal Finance for your loan requirements. We are registered with the RBI and fulfil all the compliances strictly mandated by the Government of India. Verify Loan Criteria and Look for Charges After selecting an RBI-approved lending agency, you should look at their loan criteria, as every agency has different policies and charges. Loan Criteria Interest Rates EMI Duration of loan and whether you will get any extension Applicable penalties if you pay up the loan early Charges You also need to look for charges, especially hidden charges. Loan Application Fee Loan Processing Fee GST on Loan Application and Processing Fee Interest Default Document Verification Charges Repayment Cash Collection Charges But if you want zero hassle with your loan and do not want to get duped by the hidden charges, you can always trust Piramal Finance. With our super-fast and crystal-clear loan processing, we have a ‘zero charge’ policy on advance repayment and foreclosure. [B-02] Conclusion If you are looking for a personal loan online, you must have a good CIBIL score. You also need to produce supporting documents. If you don’t have a job, are self-employed, or run a business, you can still get a loan, but you may have to produce strong supporting documents. If you still have queries, doubts, or specific questions regarding your loan. In that case, you can always get a free consultation with a loan agent from Piramal Finances. Our agents will contact you at your earliest convenience.
08-11-2023
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Personal Loan

How to pay personal loan EMI online – Complete guide at Piramal Finance

EMI is the monthly payment you need to make to fully settle your loans. It is a fixed amount that is paid each month during the tenure of your personal loan. In a sense, it is the best way to repay your personal loan without putting any stress on your finances. The amount you have to pay is based on the loan amount, interest rate and loan tenure. The tenure of a loan is the period of time between when you get your loan amount and the date on which you close the loan. You can easily calculate your personal loan EMI through Piramal Finance’s Online EMI calculator. [B-01] Benefits of Personal Loan EMI The benefits of EMIs to repay your personal loan are as follows: Monthly payments mean it is very convenient to repay the loan. It contributes to both principle and interest. It makes calculations easy. EMIs mean that only a fixed amount will have to be paid. It makes money management easy. It gives a sense of how much of the loan you have paid off. HOW TO PAY PERSONAL LOAN EMIs? Since EMIs should be paid monthly you might be thinking if there is any way to easily pay your personal loan EMIs. Well do not worry, you can easily pay your monthly personal loan EMIs. Through Piramal Finance you can easily pay your personal EMIs online through their website or their app! Do not worry it is very easy and anyone can do it. Let’s see how you can do this! ONLINE PAYMENT THROUGH THE WEBSITE The Piramal Finance website is your one-stop destination for all your personal loan EMI needs. Through the website, it is very easy to both calculate your EMIs and pay them online securely and easily. Here are the steps that you must follow to repay your loan EMIs online: – Go to the official Piramal Finance website. Go to the Customer Services tab. Click on the Pay Online button and select the suitable category. You will then be taken to the Piramal Finance Customer Portal login. Here you can log in through your registered mobile phone number. Your registered phone number is the phone number that you had given when you started your account. Then it is as easy as just following the steps as displayed, entering the relevant information and then proceeding to payment! It is that simple! You can skip these steps by going directly to this link. Online payment through multiple ways is supported through the Piramal Finance website. Credit/Debit cards. mobile wallets, online banking, etc are all supported through the website. This ensures that you don’t have to limit your payment options toward your personal loan EMIs! Now if there is any doubt about how to calculate your personal loan EMIs. Piramal Finance has a solution for that too. Try using the online EMI calculator available on the website and you can easily figure out what your monthly instalments are. ONLINE PAYMENT THROUGH THE APP Piramal Finance now also has a dedicated app for all your finance needs! The app is available both on Google Play Store and the Apple App Store. Through the app, you can get a simple and safe login which means your loan account will be secured on your device at times. It can also be accessed very easily without compromising safety and security. The app can also bring you, your monthly loan statements making it very easy to track all of your accounts. Online payments of personal loan EMIs are also very easy through the app. You can link your bank accounts to your loan accounts. This ensures that your monthly personal loan EMIs can be automatically deducted from your account. This makes sure that you will never be late on paying your monthly personal loan EMIs. HELP AND SUPPORT If at any time you face any difficulties while using our various online services you can contact customer care representatives who will easily solve your problems as far as possible. They can be reached via email: customercare@piramal.com. There is also a special toll-free number that you dial which is available from 9:30 AM to 6:00 PM every day except Sundays. The number is 1800 266 6444. The customer care team works round the clock to answer all your queries as soon as possible. If you are not happy, then you can raise the problem further with a manager. If for any reason your personal loan EMIs has been returned or bounced, the same will be returned to your repayment bank account within three working days. For any associated charges with that, you can refer to MITC. [B-02] Conclusion Personal loans EMIs represent an easier way of making payments on your personal loan. Piramal Finance offers various ways through which you can pay that personal loan EMIs online. This means that you now do not need to come to any of the physical Piramal Finance locations to repay your loans. You can do it from the comfort of your home. Online payment also means that you have access to a variety of other features. By downloading the app you can track various other accounts to your satisfaction. Thus online payments give you peace of mind while at the same time not compromising on security. Piramal Finance offers unmatched features and services for all personal loans. You can read more about online payments of personal loan EMIs and all the other features that Primal Finance offers. There are many blogs and articles on the website that will offer you a chance to learn more
08-11-2023
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