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Personal Loan

Calculate Online Home, Personal & Business EMI Interest Calculator

This online interest calculator is as basic as they come. Put the following three figures into a basic home loan calculator to get the simple interest: essential sum constraints on time annual percentage yield (APY) on a value into the following equation: a=p (r+t)) Where, a= amount p= principal r= interest rate t= time [B-01] For instance, you invest 15,000 for two years at a 5% rate. So, the amount you will receive will be 15,00052/100 =1,500 So, A= 15,000 + 1,500 = 16,500. When is the formula used to figure out the interest rate the best tool to use? Using the interest EMI calculator, you can quickly determine the total amount you will owe or receive after the maturity date has passed. Put the principal amount, the length of the loan, and the interest rate into a home loan calculator with simple interest. In this scenario, you may use the formula for simple interest to calculate: Before you can borrow the money, you need to figure out the interest rate that will be applied to the loan. If you use this method, you can easily calculate the interest rate that applies to any loans you have provided to others. An FD, PPF, SAY, or RD, as well as any other savings plan, allows for the instant computation of interest on monies stored in the plan. How might one benefit from using even the most basic loan calculator? The rate of simple interest may be calculated using an online tool known as a simple interest home loan calculator. The easy-interest EMI calculator is different from other calculators because it gives you immediate feedback on even the most complicated calculations. The use of a basic loan calculator comes with several advantages, including the following: In addition to the value of the original investment, it also shows the value of the interest. Even in long-term situations, when people are more likely to make math mistakes, it has the potential to give a total amount right away. Compared to calculations done by hand, a straightforward home loan calculator consistently provides the exact total amount. It gives you the knowledge and skills you need to take charge of your finances on your own. Using the information provided here, estimate how much money you will get when the bond matures. There is a guarantee of continuous availability. The following are some of the advantages that come with using an online calculator: The fundamental idea, as well as the interest, are shown, in addition to other important specifics. Mathematical errors, which are so common when doing calculations by hand, might be eliminated using an online calculator. An online calculator will allow you to get information on the charges for borrowing, lending, and depositing money in a matter of seconds. It is possible to keep track of profits and losses over time. You are free to put this knowledge to use in any planned endeavours. Using the information provided here, you may estimate how much money you will get when the bond matures. This approach is far more efficient than using a traditional calculator. You can examine it at any time that suits you best. What are the most common formats that loan calculators take? There are many different kinds of loan calculators on the Internet. Here are a few of them for your convenience. Easy EMI calculator with interest: You may determine the amount you will receive at maturity with a simple loan calculator. The principle and interest amounts are included in the amount determined using the basic interest calculator. The formula is as follows: a=p(r*t). Calculate the amount of your potential private loan: With a personal loan calculator, you may determine your repayment schedule and monthly principal and interest costs. The personal EMI loan calculator will help you determine a manageable monthly payment. For computation, we have the following formula: EMI = [p (r/100) { 1+ (r/100)} ^n]/[{1+(r/100)}^(n-1)] Mortgage Payment Estimator: Using a real estate loan calculator, it is easy to calculate an approximate EMI based on several loans and borrower-specific factors, including principal, interest rate, and loan term. An amortisation plan and the total amount owed for principal and interest are also presented. The calculation formula is as follows: EMI = [pr(1+r)^n]/[(1+r)^n-1] Student loan calculator: rapidly figure out how much money you’ll need to pay for college. The borrowed amount, interest rate, and loan period are the only critical data points for determining the EMI. To do the math, you would use this formula: EMI = [p x r x (1+r)^n]/[(1+r)^n-1] Estimating the Cost of a Car Loan: Use the monthly instalment payment calculator for auto loans to figure out how much you need to pay each month. Inputs such as loan amount, interest rate, and loan period are used to compute the monthly EMI. For the record, the equation is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1] Questions and Answers about a Simple Loan Calculator Explain how a simple interest calculator works. Using an easy home loan calculator, you can figure out the total amount (a) you will have in your possession after the agreed-upon period. It includes the principal and the interest payment. How can you figure out interest on a fundamental level? The formula for SI is as follows: a = p(1 + (r*t)) here, a = amount p = principal r = interest rate t = time What’s the value of an EMI calculator? a simple loan calculator to help with budgeting faster and more precise findings simple maths Possibility to get in whenever you like [B-02] Conclusion With the help of the interest EMI calculator, you can quickly determine how much money you will owe or receive once the maturity date has passed. Input the loan’s principal, the loan’s term, and the interest rate into a simple interest mortgage calculator. Visit Piramal Housing Finance for further information!
08-11-2023
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Credit Score

7 Guaranteed Ways to Improve Your CIBIL Score

Your CIBIL score is a vital element of your credit history and is based on your CIBIL report. A CIBIL rating of less than 750 might be a burden for you if you urgently need a personal loan. Yet, this is only a number that you can improve. All you have to do is focus on the ways listed below to improve your CIBIL score so your loan can be granted as soon as possible. [B-01] What Exactly Is a Credit Score? A credit score is denoted by a 3-digit number ranging from 300 to 900. It is an estimate of a person’s solvency. Before accepting your loan request, lenders will look at your credit score. A strong credit score is helpful for any loan or credit request. A credit score of 750 or more is regarded as excellent. 7 Ways to Improve Your CIBIL Score The most vital element in the bureau score is payment history. The argument is that if you’re not paying your existing loans or credit cards, you will likely not pay back your new ones. As a result, each delay severely affects the odds of getting a new loan or credit card. The simpler part is building a credit score. Over time, your use of credit goods decides whether your credit score stays high or begins to fall, and this is where these CIBIL score improvement ideas come in. Pay your bills on time. It should go without saying that you must pay your bills on time to enhance your credit score and reputation. Your credit score suffers as a result of a variety of factors, one of which is unpaid debt. If you want to improve your CIBIL score right now, pay off any existing debts as quickly as possible and see your CIBIL score improve. Set EMI alerts and practises credit management. Your settlement of existing debt greatly influences your CIBIL score, and late payments cause you to pay the fine and reduce your credit score. So, if you want to improve your credit record and CIBIL rating, prepare to pay your bills on time and build a solid CIBIL rating for a business loan. Use credit wisely. The next method to improve your CIBIL score would be to use your credit card wisely and avoid taking on too much debt. The quantity of loans you apply for at one time impacts your credit score, so keep it to a minimum. To prevent a credit score drop, repay one debt before taking out another. Look, if you apply for many loans at the same time, lenders will believe you are in a terrible situation with limited finances. Improve your CIBIL score by getting one loan at a time, repaying it, and applying for another as needed. When taking out a loan, choose a longer term. Another option for improving your CIBIL score is to pick a longer repayment term when taking out a business loan with no collateral. A longer repayment period enables you to clear your debt with more ease and comfort. Long tenure keeps your EMI low, allowing you to make simple payments on time. If you’re searching for a lender with a longer tenure, go to any lender or bank right now and pick from the tenure options. You may pick the one that best fits your budget. When you do not postpone, miss, or fail on EMI payments, your credit score will instantly improve. Examine your credit reports frequently. Monitoring your credit reports regularly helps you detect and remedy any errors. You may think you have an amazing credit record, but the reality will be displayed on your record, which you should review regularly. There might be a variety of unknown faults lowering your score. For instance, if you paid your loan in full but it is still shown as “current” due to an administrative error, it may damage your credit score. As a result, you will need to monitor your credit report for errors and repair them as soon as feasible. Keep a good credit mix. Simply thinking about how you can improve your CIBIL score is not enough; you must also take action. Maintain a balanced credit balance of unsecured loans such as personal loans, commercial loans, and working capital loans, among others. Remember that a borrower with a solid credit mix is favoured by lenders since it ensures timely repayments. This will also guarantee that you have a strong CIBIL score as well as a good credit rating. Refuse to hold a joint account If you want to raise your credit score, avoid becoming a joint account holder. The cause is simple: any default action from a third party might lower your credit score and harm your credit history. In jointly owned accounts, missed payments are equally liable. Regardless of how clean and timely you are on your side, your credit record will reflect the outcomes of actions performed by both partners. Keep older credit cards Finally, keep old credit cards for as long as possible to build your credit history. A strong and long credit history will help you get and keep a good CIBIL score, which is needed to get a loan. [B-02] Conclusion Improving your credit score is not something you can do in a single day. You must be patient and spend time analysing your credit behaviour to discover ways to improve it. As you may have seen, your CIBIL score is not based on a single criterion. Several factors contribute to the final value. If you follow the advice presented here to lower your outstanding debts and develop a good credit history, your CIBIL score will gradually but steadily increase. You’ll be able to acquire loans when you need them, and most importantly, you’ll have the peace of mind that money can’t buy. If you want to know more about ways to improve your CIBIL score, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Personal Loan

Know How to Calculate Car or Vehicle Loans with EMI Calculator

While the automotive and allied sectors have seen a general slump recently, vehicle loans remain in high demand nationwide. These loans are easy-to-finance solutions when acquiring a car, both high-end or otherwise. Yet, debtors need to know their repayment duty before taking out such a loan. In a nutshell, how much EMI would you need to pay on your auto loan? To get the response to this question, you must first know how a vehicle loan EMI tool works. This simple online tool may help you determine if a certain loan choice is appropriate for your finances or if the EMIs linked with it are too high for you to endure. So, let us begin learning about vehicle loan EMI calculators without further ado! [B-01] What Is an EMI on a Car Loan? In today’s fast-paced world, owning a car is almost a need. You have the choice of buying a new or used car. Your budget is useful for assessing the car, the down payment you can afford, and the required loan amount. You can repay the loan in cost-effective EMIs over a set amount of time. If you default on the loan, your credit rating will suffer, and the lender may seize the vehicle to compensate for the loss. Banks provide car loans with low-interest rates and terms that do not require you to stretch the budget. The EMI for a car loan comprises the loan’s principal and interest. The EMI would be fixed all through the loan and could be repaid in monthly instalments. What Exactly Is a Vehicle Loan EMI Calculator? If you buy a car on credit, you must pay EMI regularly to repay the loan over a set number of years or months. A vehicle loan EMI calculator is the most commonly used tool to figure out how much EMI you must pay each month. It requires information such as the loan amount, interest rate, and loan duration. Internally, it uses this data to calculate the EMI in a short amount of time. Aside from the EMI sum, a vehicle loan EMI calculator will also break down the principal and interest amount due, showing the overall cost of the borrowing. Most calculators also display the results of these computations graphically. A car loan eligibility calculator may also examine the amount of your loan eligibility. Perks of Using the Vehicle Loan EMI Calculator Budgeting Is Feasible Plan your budget properly once you know the EMI that needs to be paid. Consider a longer repayment period if the loan amount is large. The vehicle loan EMI calculator may help you figure out these data. Accuracy The results that are shown are correct for the details that are entered into the calculator. Manual studies may provide inaccurate results. Time-Saving The vehicle loan EMI calculator‘s primary goal is to save time. After entering the needed details, the results are presented relatively instantly. There is No Limit The tool can be used an unlimited number of times. As a result, you utilise the calculator with several options. This might help you determine the best lender and the required down payment. Compare You may compare the EMIs for various numbers since there is no limit to the number of times the calculator can be used. How Does the Vehicle Loan EMI Calculator Function? The following mathematical method may be used to compute the Car Loan EMI Amount: The EMI amount is calculated as [P x R x (1+R)^N]/[(1+R)^N-1] , where P, R, & N are variables. This also implies that the EMI value would vary if any of the three factors is changed. Let’s go through these three factors in depth. The letter ‘P’ stands for the principal amount. Your interest will be computed on the initial loan amount supplied to you by the bank. The letter ‘R’ stands for the bank’s interest rate. N refers to the number of years specified for loan payback. Since you must pay the EMIs monthly, the length is shown in months. So, if you borrow Rs 10 lakh at 12% interest, the estimated EMI is R = 12/100/12, P = Rs 10,00,000, N = 2 years or 24 months. EMI = [10,00,000 x 12/100/12 x (1+12/100/12)^24] / [(1+12/100/12)^24-1], EMI = Rs 47,073. How Can the Vehicle Loan EMI Calculator Aid while Planning & Buying a Vehicle? Decide how much you can afford You may have a certain car model in mind that is rather costly. You may get a loan for it without first deciding your payback burden. Yet, after you’ve made the purchase, you may discover that the payments are too expensive to take without straining your budget. As a result, a vehicle loan EMI calculator may assist you in planning. You may try various loan principles until you find the optimal EMI level that does not risk your financial security. With a goal in mind, selecting the ideal vehicle becomes much easier. Assists you in assessing repayment time Access to a car loan tool should help you figure out how the payback term of your loan affects your overall liability. At first look, you may believe that repaying your debts within two years is too hard. Yet, after using the calculator, you may discover that changing the period of such loans from four years to two years does not significantly raise the EMI amount. For comparing different loan offers You must compare your options if you want the best loan rates on the market. To do so, you’d need to figure out your EMIs for each option. In this sense, a vehicle loan EMI calculator is useful. It enables you to rapidly assess your costs for each instance, assisting you in figuring out how to finance your car purchase. Aside from these factors, you must also choose the form of EMI for your auto loan. How Does the Vehicle Loan EMI Calculator Work? The vehicle loan EMI calculator is useful for calculating the monthly amount owed to the lender (bank). You should follow these steps to get the EMIs for your loan amount: You need to enter the loan amount. You then enter the loan tenure in months. After that, you need to enter the rate. The calculator will display the EMI, total interest, and payment amount. You may recalculate your EMI by modifying the input data at any time. EMI for the loan will be calculated immediately when you enter all the details. [B-02] Conclusion Buying a vehicle is a major life event. And now, owning a car is no longer a luxury but a cheap luxury, thanks to appealing auto loan options. Note that paying in cash ahead may place you on the radar of the Income-tax Department, notably after demonetisation. An EMI is a monthly payment to a bank or another financial institution until the loan is fully paid. It includes loan interest and a portion of the principal amount to be repaid. The sum of the principal and interest is divided by the loan’s term or the number of months it must be returned. This sum must be paid every month. So use a vehicle loan EMI calculator and bring in the pleasure and comfort that your family craves. To learn more about vehicle loan EMI calculators, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Business Loan

Loan for hotel and restaurant businesses

Are you searching for the finest business loan? Looking to start your restaurant and hotel business? The answer to your inquiry will be found here. so long as you keep these important things in mind before starting the loan for the hotel. Here are some crucial factors that will increase the impact of your decisions. Let’s have a look. The opening of a restaurant, a chain of restaurants, or a café is one of India’s most popular businesses. By 2018, it is anticipated that the restaurant sector will grow by 11% annually. The process of getting money to run a restaurant includes several different variables. Such are the business model, recruitment, personnel, licensing, branding, advertising, and marketing. To attract consumers, a new restaurant needs to do a lot of marketing and promotion. The initial costs of branding, advertising, and marketing may be equal to a new restaurant’s operating expenses. [B-01] Some important things to consider when applying for a loan for a hotel or restaurant Restaurant Loans: Eligibility Requirements Although the procedure for acquiring loans for restaurants is straightforward and the interest rates are reasonable, it’s crucial to realise that there are a few fundamental requirements. The following requirements must be met to qualify for a loan for restaurants: Guarantor: A person or company who can promise to pay if you are unable to repay the loan. Collateral: An asset that is pledged as security to the institution that is making the loan for the hotel until it is fully repaid. An initial, upfront payment that is indicated as a percentage of the total loan amount is called a down payment. Many places require the borrower to pay for part of the project while the loan for hotels pays for the rest. Tenure Term loans for capital expenses might range in term from more than a year to five years. Assistance with short-term working capital is due in 12 months. Using the asset itself as security, lenders also offer asset-based loans for hotels to cover the cost of assets like real estate, business premises, stock, and specialised gear. Different SME Loan Programs Offered to Restaurants To fulfil the needs of SMEs, banks offer a variety of loans for businesses. Term loans are for large investments, with loan terms ranging from one to ten years. Long-term working capital loans and high interest rates for urgent demands. Business loans are those that can be secured using assets like stock, machinery, and real estate as collateral. Any sort of restaurant loan requires the provision of guarantees in addition to a guarantor. The loan for restaurant application form must be submitted with the following documents: Documents needed to apply for a business loan. Voter identification A driver’s licence A passport Aadhar card A telephone bill Electricity bill A registered sale or lease deed serves as proof of identity. Bank statements for the past year The past year’s sales tax returns ITR business address Historical evidence Certificate of Company SSI or MSME registrations Applicant’s current net worth Rental agreement with a pollution clearance Fire Department NOC with FSSAI Certificate approval from the appropriate state An online restaurant loan application process It’s simple and hassle-free to apply for business loans for restaurants. For a restaurant loan, apply online: Online processing of applications is available. You must enter some basic pieces of information on the bank’s website. On the websites of banks, you can find tools (EMI calculators) to help you understand what your EMIs will be like. Upload all necessary documents for a business loan. The applicant must upload every one of the needed papers. It won’t take long, because there’s not much documentation. Paying back a loan: The borrower has all the time throughout the process. The loan will be disbursed very quickly. A Business Loan for Hotels and Restaurants’ Highlights There is an available overdraft facility with a maximum business loan amount of Rs 30 lakh. Acceptance in 24 hours Two records are necessary for the application. Interest rate Interest rate: 15% to 20% Process charges 3% maximum of the loan sum Rs. 50 in loan statement fees Charges for interest and principal statements Zero EMI bounce fees up to 3000 rupees (inclusive of applicable taxes) Following is a list of the business loan clientele profiles that are taken into account: Allopathic physicians, chartered accountants, corporate secretaries, and architects who are self-employed in their professions are examples of self-employed professionals (SEP). Qualification documentation that will be shared Self-employed non-professionals (SENP) include business owners, proprietors, traders, manufacturers, and service providers, among others. Partnerships, limited liability corporations, private limited companies, and closely owned limited companies are examples of entities. Other constitutional categories based on each individual’s characteristics [B-02] Summing-up: This article’s goal is to provide a thorough analysis of loans for hotel and restaurant businesses. You should have thorough knowledge of your company loan before making any decisions about it. You should have a thorough knowledge of your loan for the restaurant before making any decisions about it. The items listed above will make it easier and more successful for you to obtain a business loan. Before applying for a restaurant loan, compare the features and interest rates offered by different banks to find the best deal, but most importantly, consider the items listed above. Also visit Piramal Finance, which has more in-depth, educational, financial-related articles.
08-11-2023
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Personal Loan

Personal Loan or Home Renovation Loan – Which is Better?

Loans may help you make purchases, bridge a short-term cash flow deficit, or create a long-term asset like a house. Most financial firms, including banks, non-banking financial companies (NBFCs), as well as housing finance companies (HFCs), offer a diverse variety of loans to fulfil the needs of their clients. You may choose between home renovation loans and personal loans based on your individual needs. You often look out for home renovation loans when they’re ready to buy their first buy on your own. On the other hand, a personal loan may be the ideal answer if you need a bit more cash for a down payment. What is a Home Renovation Loan? You may fund your renovation work with a home renovation loan. Fixer-upper houses are often funded with a home loan that includes a loan for house repairs. The “after renovation” worth is vital in funding home repairs. Renovation loans are based on your home’s expected worth after upgrades. You are eligible for a raise based on the expected rise in home value as a result of the recommended repair, the loan sum, and the rate of interest. What is the Meaning of a Personal Loan? A personal loan is a sum of money obtained that you may use for a variety of purposes such as major buys, debt settlement, crisis needs, and so on. These loans are repaid in monthly payments spanning a few months to many years. It may take longer based on your context and payment integrity. What You Should Know About Home Renovation Loans Vs. Personal Loans Collateral A home renovation loan, such as an education or a vehicle loan, is a secured loan. Banks and lending firms may take your home as security if you cannot repay a loan or other debt. A personal loan for home renovation does not need collateral. As a result, security is not needed when taking out a personal loan. Amount at stake Home renovation loan amounts range from Rs. 15 lakh to Rs. 8 crores. Several factors, including income, impact the capacity to repay a loan. Personal loans are offered for sums ranging from a few thousand rupees to as high as Rs. 25 lakhs or Rs. 30 lakhs if you want something more flexible. Certain financial firms offer personal loans of up to Rs. 60 lakh. Tenure Home renovation loans last from 5 to 30 years. Loan terms are longer because of the higher buying price of land, which aids in keeping EMIs low. In contrast, personal loans come in lengths varying from 12 to 60 months. Payments for EMI The fixed monthly payments paid by your lenders on a certain day each month for a set sum of time are known as EMIs. Due to the longer payback term, the EMI on a home renovation loan is cheaper than a personal loan for the exact sum. In contrast, personal loans have a shorter payback duration and, as a result, a higher EMI. Processing time A home renovation loan usually takes 3 to 4 weeks to complete. Yet, if the needed papers are lacking or the builder lacks the required credentials, the process may be further slowed. E-banking has sped up personal loan distribution even more. For new customers, a personal loan can be approved instantly or within minutes and given within 24 hours. Rates of Interest The rate of interest on a home renovation loan is lower than that on an unsecured loan since it has security. Current interest rates in India vary from 6.9% to 8.5%. Personal loans offer much higher interest rates than secured loans, ranging from 9.6% to 22% based on your unique profile. Those with low credit scores pay higher interest rates, while those with strong credit pay lower interest rates. Tax benefits There are tax perks linked with home renovation loans that assist in lowering your income tax liability. Therefore, your loan may be repaid as per schedule by enjoying all the tax benefits of up to Rs. 1.5 lakhs per year. As personal loans do not offer tax benefits, prepaying it in whole or part does not affect your tax planning. What is The Best Choice? Personal loans are ideal for modest home repair tasks that you may finish rapidly. The higher rates of interest will be less of a problem, but you will profit from an unsecured personal loan’s rapid application procedure and flexible lending terms. Home renovation loans are ideal if you are considering big home improvement projects that will boost the value of your home. Those who have built up enough equity will profit from cheaper bond yields if the work takes longer than expected. You will also be able to take benefit of the tax advantages given by a secured loan. In the end, both forms of loans will do the job. As a result, you’ll have to weigh the benefits and drawbacks of each to decide which option is best for your home renovation project. Conclusion A home loan is appropriate for large financial movements such as a home purchase or building, but it is not always the best option for financing a home renovation. It provides cheaper interest rates and payback terms of up to 25 to 30 years. Borrowing money is possible with a home loan and a personal loan. On the other hand, a personal loan provides a collateral-free alternative to funding home repair at fair bond yields and shorter payback durations. If you are unable to get finance via other means, having no collateral necessary to receive a loan is an excellent option. You may also budget your monthly payment with a personal loan since it has a defined period. Do your research and discover all you need to know before applying for a personal or home renovation loan. If you want to know more about home renovation loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Personal Loan

Top Reasons behind Personal Loan Rejections Even After Having a Good CIBIL Score

Banks and lenders use the CIBIL score to determine your creditworthiness. While it isn’t the only factor the lender examines when deciding to grant you a loan, a lot is riding on CIBIL scores. A lender can reject a personal loan for several reasons even if you have a high CIBIL score. If you are applying for a loan, you should know these reasons. Here are 13 reasons your application might be rejected. [B-01] Top 13 reasons behind personal loan rejections You borrow loans often. A history of borrowing can result in personal loan denial even with an excellent CIBIL score. It raises red flags for lenders, making them suspicious of your financial stability. They will still see you as a high-risk client. It is true even if you make payments on time or have paid off all debt. They will also be cautious about providing you with more credit. That’s because they fear you will be unable to bear the extra financial strain and delay payments. Your CIBIL report has negative comments. Lenders can decline a personal loan application because of the feedback in the CIBIL report. Such feedback can include (but is not limited to) a request for a reduced interest rate, a late EMI payment, etc. Your bad repayment practices are mentioned in detail in the report’s comments. Lenders often review an applicant’s CIBIL history before giving credit. Hence, any negative comments on your report are harmful. You can try to remove these comments by: Settling with the creditors Acquiring a goodwill removal Repaying all the loans Your career or salary is unstable. Lenders can still reject a personal loan if your employment is unstable or the lender has flagged your company. Changing your jobs too frequently can also affect your chances of getting a personal loan because lenders will question your employability. If you own a business, lenders will be more mindful of your application if it does not have stable profits. Lenders will have more faith in you as a responsible borrower only if they know you have a secure career and income stream. They will not see you as a viable prospect if they think that you switch jobs very often and have an unstable income. Therefore, make sure your CV and career do not affect your creditability. You provided the wrong information. Your credit report has your date of birth, PAN number, address, age, gender, occupation and many other details. This information is cross-checked when you apply for a loan. Your application can be rejected if the information you provide is inaccurate or a lie. You have a poor tax payment history. Irregular or incorrect tax payments are another common cause of loan denial. Your loan application can get rejected if you have a history of making income tax payments. You have a history of loan rejections. Previous loan applications, whether accepted or rejected, are mentioned in your credit history. Lenders will review your credit record after you submit a new personal loan application. If your application has been denied before, lenders may not grant you a personal loan this time. Your co-applicant has a bad CIBIL score. A lender will consider the loan history of both applicants. The lender can decline your loan application if your co-applicant has a poor CIBIL score. As a result, before requesting a loan, it is wise to research the CIBIL score of your co-applicant. You have not balanced your loans. To maintain a good credit score, you have to distribute your loans. Lenders can reject your application if you have too much credit-based debt. Alternatively, they can decline your application if you have given many assets as collateral. You have made too many hard enquiries. When checking your credit, you make a “soft inquiry” to see whether there have been any recent changes. Any damage to your credit score from these queries is minimal. Unlike a soft inquiry, a hard inquiry is when you request your credit report. Lenders can reject your loan application if you contact them many times. Hence, wait a bit before attempting to get a new loan to avoid rigorous credit checks. You provide insufficient financial details. A loan application can get denied if it does not provide enough financial details. Lenders often review your financial documents. Hence, if there’s any disparity, your loan will get rejected even after a good credit score. You cannot provide the relevant proof. A personal loan application can be rejected if the lender cannot confirm all details. Lenders require proof of income, residence, employment, identity, etc. Your age is too high. A loan application can get denied if you are close to retirement age. Creditors, banks, and financial intermediaries are cautious about extending credit to such borrowers. That’s because they may have no means of paying back their debts. So, age determines whether the personal loan application gets approved. Your income is low. Low income will reduce your chances of getting a personal loan. Most lenders will use your monthly salary as a benchmark. They’ll use it to determine your repayment ability. Also, lenders often have a salary threshold ranging from Rs 25,000 to Rs 50,000. Thus, your loan application can get denied if your salary is below the threshold. You can increase your income by adding extra income. You can add income from rent(s) or investment gains. Loan providers screen applicants with great care before approving a personal loan. They seek applicants who can pay back the loan. Therefore, providing all the details is necessary. [B-02] Conclusion You must manage your finances well to keep a personal loan application in check. The lender can deny your request if you have a history of late payments or default. Your capacity to repay a loan is evaluated based on several criteria. Your credit score is an important factor. Age, employment history, and income play a role in personal loan applications. Looking for a quick personal loan? Apply for a Piramal Finance personal loan now and get your eligibility evaluated.
08-11-2023
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Personal Loan

What Hidden Charges Should You Expect with Personal Loans

A personal loan is an excellent way to fulfil your life’s objectives. It can provide quick and easy access to cash. It can be used for purchasing a dream home or simply travelling. Furthermore, rapid disbursement and low lending rates are advantages. These loans, however, have certain drawbacks. There are many additional personal loan charges. The costs are substantial, and there is a danger of incurring extra debt. Charges, such as processing or application fees, could be taken upfront in some situations throughout the personal loan paperwork and application process. Some charges, though, may be invisible. As a result, you will end up paying way more than they expected. This article will go through ways to avoid such personal loan processing costs entirely. [B-01] What is a personal loan? A personal loan is a type of loan that does not need assets or security. It is available with little paperwork and can be used for any purpose. This loan can be used to meet any valid financial necessity. You must return it in line with the terms agreed upon with the bank. It works just like any other loan. Hidden personal loan charges Here are some charges to keep in mind when applying for a personal loan: Goods and Services Tax (GST) Previously, service tax and VAT were levied on loan-related services. It is now the Goods and Services Tax (GST). This is seldom stated throughout the loan paperwork procedure. Instead, it appears unexpectedly during the payment. The sum is relatively large in India. In India, the benchmark for any loan approval service is 18%. This means that for every Rs. 100 that you pay, Rs. 18 are charged as GST. Processing Fees These are the most typical hidden personal loan charges that appear on your loan. This may be levied upfront. It may also be taken from the loan amount when it is disbursed. This cost is usually non-refundable. It is not little, either. It is between 2% and 3% of the total application amount. These expenses will very likely increase your payback amount rather than decrease it. Charges for switching repayment modes You will be fined if your means of payment are abruptly changed. Such a change may be from cheque to auto-debit. During the loan term, lenders typically charge roughly Rs. 500 + 18% GST as a switching charge. Interest rates are in effect. Personal loan effective interest rates range from 10.99% to 24% p.a. The top limit may be raised in the case of non-salaried persons as well. Other elements, such as credit score, bank connection, and financial stability, also contribute to calculating the relevant interest rate. Prepayment penalties It is also known as pre closure charges for personal loan. Additional EMI sums or trying to close your loan early may result in penalties. These range from 2–5% of the remaining balance. Why are there prepayment penalties? According to financial firms, they miss out on the interest rate on prepayment. They could have received this interest if the return was made on time. Charges for duplicate documentation For reissuing loan-related documents, the financial institution would levy an additional cost. Statements, NOCs, credit reports, and other documents may be included. Duplication typically costs between Rs. 50 and Rs. 500 (+18% GST). Cancellation Fees Now, this is a standard part of every service you use. It appears while booking a trip or a personal loan. The fees differ from one lender to the next. They might range from a flat Rs. 1,000 to roughly Rs. 3,000 + an extra 18% GST. Some banks may not impose a fixed fee. However, the prevailing interest rate among loan disbursement and cancellation days might be charged. Late payment penalties This is an obvious choice. You will be punished if you fail to make your payments. You could also be fined for any delay in repaying your EMIs. You cannot return your loan amount early or beyond the due date. Late payment penalties might range from 2% to 3% of the EMI amount. This suggests you might end up paying more interest on the late charges than you did on your loan! Other costs Depending on the bank, there may be varying relevant costs. This might be fixed by the type of lender or the customer’s repayment habits. The type of loan approved or even the location from which it is approved also contributes to this. Stamp charges and other legal fees may also be charged. How to avoid these charges? Examine the loan agreement. Before signing any contract, it is necessary to properly read and evaluate it. The same is true for personal loans. Going through lengthy pages of monetary terms might be laborious. Yet, it is vital to realise that the borrower and lender’s oral dialogue is documented on paper. Identify each charge. Many charges with complex titles may be included in a loan agreement. Examine each fee carefully and discuss it with the lender to have a better understanding. Make a budget. You must manage their funds. You should also check the loan arrangement. These penalties are typically charged in the event of a default. Missed payments or complete nonpayment are examples of default. Thus, a borrower must ensure enough funds for the loan’s set EMIs. Look into the lender. If something seems too good to be true, it probably is. Some lenders provide speedy approvals but charge high hidden fees, such as for a returned check. Thus, be wary of random internet lenders. Compare several lenders to find the best pricing. However, you should also consider the lender’s reputation. A reputable lender will provide complete information and transparency. Check online feedback from clients for additional validation. [B-02] Conclusion Remember, before you apply for a personal loan, obtain all relevant information and do a lot of research. This will enable you to make an educated decision and choose the best personal loan option. Read more blogs by Piramal Finance to always be aware!
08-11-2023
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Banking

Why You Need to Change your ATM Pin

A four-digit PIN is required for withdrawals at an ATM (automated teller machine). This PIN is first provided by the banks and is expected to be changed and kept secret by ATM card users. You may create and change your ATM PIN as often as you wish. The PIN stands for a personal identification number, and it is unique to each ATM card. [B-01] How do I create an ATM PIN? An ATM PIN (personal identification number) is a four-digit number that must be created immediately after receiving your ATM card. The one-of-a-kind code is necessary for safe online and offline transactions and withdrawals from ATMs. Only by entering the proper PIN will the transaction be verified. If you don’t know how to generate or change an ATM PIN, the procedure is straightforward and can be done online or offline. Continue reading to learn more about the processes. How Do I Change My ATM PIN Online? Here’s a step-by-step guide to setting up a PIN for a debit card using the internet, mostly net banking and the mobile app: Using Net Banking, change ATM PIN. You may generate ATM card PINs with your net banking account. Here are the actions you’d need to take: Connect to your bank’s internet banking site. Choose the account number for which the credit card PIN should be created. Click “Generate PIN” within “ATM Card Option.” Enter and confirm the 4-digit PIN. Check your registered cellphone number for the OTP. Following authentication, you may use the change ATM PIN option to transact without interruption. How to Generate a PIN for an ATM Card Online Using a Mobile App You may generate your ATM card PIN using your mobile banking app. Here are the actions you’d need to take: Access the bank’s mobile app. Select the account for which the ATM card PIN is to be generated. Click “Generate PIN” inside the heading “ATM Card Options.” Confirm and validate the 4-digit PIN. Check your registered cellphone number for the OTP. Following authentication, you may use the created ATM PIN to transact without interruption. How to Create an ATM Card PIN Offline You may also change the ATM PIN card online if you do not have access to the internet. Some options include using an ATM, sending an SMS, or calling customer service. How does an ATM generate a PIN? To establish your card PIN using an ATM, go to your bank’s ATM kiosk. Insert your card into the ATM and choose “Generate PIN.” If your bank has given you a temporary PIN, you will need it to change the PIN on your ATM card. In other circumstances, you will be required to validate your identity using an OTP supplied to you before establishing your PIN. To authenticate your request for establishing an ATM card PIN, certain banks may need you to input your bank account number and registered cellphone number. Once authenticated, you may continue establishing and confirming your four-digit card PIN. How to generate an ATM card PIN using SMS? If you’re thinking, “How do I create an ATM PIN by SMS?” The procedure is quite simple. Fill in the new PIN creation message in the format recommended by your bank and send it to the bank’s SMS service number. When your request is received, you will be given a temporary OTP that will be good for a few hours. You would then need to do the following steps: Go to the closest bank ATM. Insert your ATM card here. Select “Generate PIN.” Enter the PIN for your temporary card. Click the “Confirm” button. Enter your four-digit card PIN and confirm it. To confirm your PIN, click “Submit.” How to change your ATM PIN through customer service To create a PIN through customer service, contact your bank’s customer service number and request an OTP for generating a PIN against your card. You will be asked for your account number, card number, and so on. Once your information has been verified, you will be given an OTP that will be good for a few hours. You would then need to do the following steps: Go to the closest bank ATM. Insert your ATM card here. Select “Generate PIN.” Enter the generated OTP. Click the “Confirm” button. Enter your four-digit card PIN and confirm it. To confirm your PIN, click “Submit.” How do I reset or change an ATM PIN? If you wish to alter or reset your ATM card PIN, the procedure is straightforward and can be done online or offline. The following are the steps you must take: How to Change your ATM PIN Without Visiting an ATM You can change or reset your PIN online by going to the bank’s website and following the steps below: Sign in to your online banking account. Click on “Card Services” under “Services.” Select the pin generation option. Choose the account, and then confirm it with the OTP that was sent to the phone number you registered. Click the “Continue” button. Enter your old PIN and press the “Submit” button. Input your four-digit ATM PIN. To successfully alter your card PIN, click “Submit.” How do I change my ATM PIN at a kiosk? Here are the procedures you must take to update your PIN for an ATM at a kiosk: Visit your local bank ATM. Place your card inside. Select “Create a PIN.” Enter the account number from your bank. Click the “Confirm” button. Enter your mobile phone number. Click the “Confirm” button. Cancel the transaction and input your card again if you get an OTP or temporary PIN on your number. Choose your favourite language. Select “Banking Services.” Enter the OTP or temporary PIN and press the “Enter” key. Select the “Change PIN” option. Fill in your new four-digit ATM PIN. To successfully update your card PIN, re-enter the new PIN. You may use the same channels to set up your credit card PIN and use it to withdraw money from an ATM, among other things. If you don’t have a credit card but want one, explore and apply for one on the Bajaj Markets website. [B-02] Conclusion After receiving an ATM card and a short-term PIN from the bank, you must change your ATM PIN. This increases security since the new PIN will only be accessible to you. You must also update it over a period of time for security reasons so that if somebody unintentionally learns the PIN, they cannot abuse the ATM card.
08-11-2023
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Guide

How Can I Check My Gratuity Amount Online in India?

After 5 years of service, each private firm employee getting EPF (Employee Provident Fund) perks is entitled to a gratuity. You may be entitled to a gratuity amount before five years if you are wounded and handicapped in an accident or due to an illness. Many websites provide a gratuity calculator for free, which you can use to figure out how much your company owes you. The Payment of Gratuity Act of 1972 governs the gratuity payment regulations. The sum is determined by the last wage received and the number of years of employment with the organisation. If you are entitled to gratuity, you must determine how much you are entitled to. Continue reading if you want to learn more. [B-01] What is Gratuity in India? Gratuity is a monetary reward given to a worker in one lump sum by the employer. The firm pays it as a token of appreciation for their contribution to the firm. The purpose of gratuity payment is to provide workers with retirement benefits. The Gratuity Payment Act of 1972 oversees gratuity and its payment criteria. An employee must meet certain conditions to qualify for gratuity payments under this Act. The employee must have been with the firm for at least five years. The employee cannot have another full-time job. In the event of the employee’s death or incapacity before the completion of five years, the employee has a right to a gratuity. The gratuity cannot be more than INR 10 lakhs. If there is an excess, it is considered ex-gratia. Ex-gratia is a voluntary payment that is not required by law. The number of months worked is important in calculating gratuity. If an employee works for more than six months in the final year of employment, it is rounded up to the next number. For instance, if a person works for 15 years and seven months, the total number of years of service is 16. Yet, if the employee only works for 15 years and 5 months, the number of years of service is 15. The Payment of Gratuity Act of 1972 sets rules for calculating gratuity. There are two types of workers under these rules. The Act also specifies the groups subject to the Act’s provisions. What is a Gratuity Calculator? The gratuity calculator will calculate the gratuity amount using the gratuity calculation formula. Formula for Gratuity: (15 your last drawn salary tenure of working) / 26. A tool that assesses how much you may be paid in gratuities after five years of steady service is called a gratuity calculator. It is a helpful tool for figuring out the gratuity on retirement. The most recently drawn salary and the duration of constant employment with the firm must be given. Your current salary includes your dearness allowance, basic pay, and sales commission. The gratuity calculator will calculate your gratuity in seconds. It is easy to use and may be used several times. What is the Gratuity Amount Calculation Formula? The Gratuity Act says that the following formula can be used to figure out how much a worker’s gratuity amount will be: Gratuity = nb15 / 26 Where n is the number of years of service performed at the firm. b = Most recently received basic income + dearness allowance For example, suppose you’ve been with ABC Corporation for 15 years. Your previous basic pay plus dearness allowance was Rs 30,000. Therefore the gratuity amount is assessed as 15 30,000 15 / 26 = Rs 2,59,615. Two points should be made here: According to the Gratuity Act, the gratuity amount cannot exceed Rs 20 lakh. Any excess would be considered ex-gratia. If the amount of time you worked in the previous year of employment exceeded six months, it will be reduced to the next whole number. If your service duration is 16 years and 7 months, you will earn a gratuity for 17 years. Otherwise, if it is for 16 years and 4 months, the gratuity is for 16 years. For workers whose company is not covered by the Gratuity Act, the gratuity amount would be equal to a half-month’s pay for each year of service. The calculation is (15 your latest drawn wage for the period of your work) / 30. Suppose you earn Rs 30,000 per month. You have worked for the company for seven years, and the Gratuity Act does not cover the firm. Amount of Gratuity = (15 30,000 7) / 30 = Rs 1,05,000. Eligibility rules for receiving a gratuity You are eligible for the gratuity if you meet the following criteria: The person must be eligible for a pension. The employee must have quit his or her work after five years of ongoing work with the same firm. The person must have left their work. If the person dies or becomes disabled due to an accident or illness. Gratuity Taxation Rules The taxes that apply to the gratuity amount vary based on the kind of worker: Any sum received as a gratuity by a government employee is tax-free. If the firm is covered under the Payment of Gratuity Act, the least of the following three sums will be exempt from income tax for private-sector workers. INR 20 lakh The actual gratuity amount Eligible amount The highest tax-free gratuity amount an employee may claim during his or her whole work career is Rs 20 lakh. [B-02] Conclusion Using a gratuity calculator, you may determine how much you are entitled to. A person’s compensation includes a gratuity. It is one factor contributing to an individual’s gross compensation. In other terms, a gratuity amount is a monetary payment made to an employee after his or her job term. It is a sort of reward given to an employee for services rendered. Although it is due upon retirement, it might be given to the employee in advance based on the terms. The worker must have worked for a company for at least five years. It may be paid well before the five-year mark if the person dies, becomes disabled, or becomes sick. Visit Piramal Finance to read related blogs and learn more about their products and services, as well as to find out more about gratuity amounts.
08-11-2023
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