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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

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

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

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

Personal Loan

Make Gifting Easy This Christmas With a Personal Loan

Want to give Christmas presents to loved ones? An instant personal loan can help you out in the short term by giving you access to cash. In addition, it can save you money while allowing you to stock up on highly anticipated gifts. To learn how to easily buy presents for Christmas with a personal loan, read this. [B-01] Celebrate Christmas with a Personal Loan It’s the gift-giving season, as the holidays are approaching. Christmas is just around the corner. This year, money is tight. Why dampen the holiday spirit when you can easily obtain an instant personal loan for all your gift-buying requirements? Undoubtedly, a personal loan can reduce your first financial strain. It can also enable you to purchase the most eagerly anticipated gifts without burning a hole in your wallet. Loans for Various Purposes The best thing about instant personal loans is that they can be used for many different things. The borrower is free to use the borrowed funds however they wish. The lender will never question how you want to use the loan money, whether you want to use it for shopping or a trip. Quick Approvals and Payments You want to buy presents as soon as you can because there are only a few weeks until Christmas. So, if you’re taking out a loan to pay for the presents, you might be concerned about the lengthy instant personal loan processing time. Most lenders offer speedy disbursements and low processing waits for these personal loans. You can therefore get one even for those last-minute shopping trips. A Greater Sense of Financial Control When buying presents, especially with a credit card in hand, it’s easy to get carried away. Therefore, if you consider yourself to be a frequent spender, consider a personal loan. There is no chance of overspending because these are predetermined sums that the bank is disbursing. Additionally, the interest rates for instant personal loans are fixed for the duration of the loan. So, you have greater control over your finances because you know exactly how much you’ll pay each month. Leverage of Repayment The loan repayment process is as simple as the application process for instant personal loans. Personal loans are paid back in manageable monthly payments that are automatically taken out of the borrower’s bank account. The borrower must sign the loan agreement to use this feature. It authorizes the lender to withdraw a specific amount from your bank account on a specific day each month until the loan is repaid in full. Privacy Your lender will never reveal the outcome of your online personal loan application to a third party. You can prevent your financial situation from affecting your loved ones in this way. It is essential to discuss such decisions with your partner or spouse to avoid misunderstandings. Adaptable Payment Terms The majority of lenders provide flexible repayment terms on their instant personal loans. So, depending on the EMIs due during the personal loan, you can decide on the duration. For instance, if your loan period is shorter, you’ll have to make fewer but larger EMI payments. Additionally, this lowers the overall interest charge on your loan. You can also create a repayment budget. Before Submitting a Personal Loan Request A personal loan is the most convenient way to bridge a financial gap. This is due to its simplicity and the lack of usage restrictions on borrowed funds. But to get the most out of instant personal loans and enjoy Christmas, you must take care of a few things before applying for one. Your ability to repay the debt should come first. Only apply for an amount you can easily pay back. Before you apply for a personal loan, you should also check your credit score. Only if you have a credit score of at least 750 should you apply for a personal loan. The third thing you should do is research lenders. Application Without Hassle A personal loan application is quite simple to complete. One does not have to go to the lender’s office to apply for a personal loan. The internet application has made getting a loan a lot easier. An applicant can submit an online application for a personal loan from any location in the world using a computer or a mobile device. Some things to think about before taking out a loan: Think about your alternate choices If you must incur debt, give some thought to how much interest you will end up paying. One option is to borrow money from close relatives. This could end up saving you a lot of cash. Create a spending plan A borrower must create a spending plan outlining how the loan money will be spent before applying. Also, write down all of the money you plan on spending. If you stick to your budget, you won’t be tempted to ask for more money than you need. Instead of money, you may give the gift of your time The adage “not all that glitters is gold” is true. Some of the most thoughtful presents you can offer need not cost you a dime. To help an older relative out during the winter, you may offer to shovel their snow. Or, you may volunteer your services as a babysitter for a sibling who has kids. Make preparations ahead of time This piece of advice might not help you this year, but it can give you some relief next year. One approach is to save the money you would have spent on Christmas purchases throughout the next year. If you typically spend $1,200 per year, you may save for next year by setting aside $100 per month in a special savings account. [B-02] Summing up This article aims to provide relevant and accurate information about instant personal loans. There is no excuse not to use a personal loan to finance your holiday shopping, given that they provide you with more financial control, have flexible repayment options, and are disbursed quickly. Additionally, we offer adjustable payback periods to make borrowing more comfortable. Take your decisions wisely and go apply for a personal loan. Visit Piramal Finance for more in-depth, educational, and financial-related articles.

08-11-2023

Personal Loan

What Documents are Required to Get a Personal Loan for Travel?

We all like vacations and going to our dream places, right? But there are times when our budget does not let us travel to a certain place. Personal loans for travel are here to keep you from having to deal with that. Many top banks and lenders in the market today will help you pay for all your travel costs and provide you with financial help. Let’s learn more about personal loans for travel in detail. [B-01] What is a Personal Loan for Travel? Today, it’s easy to get a loan for a trip, be it a honeymoon, a trip to Disney World, or a trip to Paris to see the Eiffel Tower. Many reputable banks and lenders offer these loans. Travel loans are perfect for any traveller, no matter where they are going. This is because they offer a convenient financing option and prompt service. Many financial institutions can provide you with a travel loan at competitive rates, small processing costs, and convenient repayment terms to accommodate your vacation plans. All you have to do is look at the interest rates and eligibility requirements for all banks online and choose the best deal for you. Whether you have a regular job or are self-employed, banks offer flexible EMIs so that you can go on a fancy trip. But before you apply for a travel loan, you should know what documents you need and if you meet the eligibility requirements. Eligibility for a Personal Loan for Travel Since personal loans for travel are like regular personal loans, most of them are given to employed people. Some lenders on the market give these loans to professionals who work for themselves and have a steady income. Here are the eligibility criteria you need to meet to qualify for these loans: The person who wants to apply must be at least 21 years old. Professionals should be employed for 6 months before applying for these loans. People with a credit score of at least 700 are preferred by most lenders. You should earn at least Rs. 20,000 per month. To get pre-approved loans, a person must already have a relationship with their bank. Documents Required for a Personal Loan for Travel Most of the top lenders on the market give customers travel loans with very little paperwork. But when you apply for a travel loan, you must send in (even electronically) some important documents. Here is a list of these documents: Proof of identity Identity proof is mandatory to verify that you are a real person. Aadhar, Voter ID, and Driving license are all valid ID proofs. Proof of address Address proof helps in correspondence via mail. Utility bills, credit cards, and mortgage papers are acceptable as address proof. Proof of income Banks need to establish that you are earning, which is why they ask for proof of income. It includes salary slips, bank statements and income tax return applications. Photographs A few of your latest pictures will also be required. These are attached to the loan forms and should be passport-sized. Companies may have different requirements for the documents they need for travel loans. You can check the lender’s website or talk to a representative to find out what documents you need to send. Personal Loan for Travel: Pros and Cons Often, the money we have for a trip isn’t enough to satisfy our wanderlust or let us do everything on our list. In this case, a travel loan can help. But like any other loan, borrowing money comes with a huge amount of responsibility. So, you should be careful when you get a travel loan, especially one that is based on your credit card. Here are the pros and cons of getting a loan to pay for your vacation: Pros More time to pay back When you get a personal travel loan, the length of time you have to pay it back is usually longer and more flexible. It depends on your needs. You can choose how much you can pay back each month. Easy approvals When you go to a bank for a personal loan for travel, the procedure is fairly simple. You only have to give them a few important details. You can also fill out the application online from the ease of your own home. Once your loan has been approved, the bank will put the money into your account within a week. Cons Higher sum to pay Your monthly payments will increase because you need to pay the loan’s principal plus interest. It may not be possible to get the best loan terms Your chances of getting the best loan rates from a lender decrease if you do not have a good credit score. Also, if the loan is based on your credit card, you might have to give up all the perks you get from your credit card company. How to Apply for a Personal Loan for Travel? The process of getting a travel loan is very easy. Most banks now let people apply for personal loans online. To get a travel loan, all you have to do is go to the lender’s website and fill out a form with your personal information. You can also send your documents online and get an answer right away. Or, you could go to the lender’s branch or office and talk to a worker there about getting a personal loan for travel. [B-02] Conclusion A trip for a holiday needs a lot of planning and research. Your expenses may exceed lakhs of rupees, even with careful budgeting. Flights, hotels, transportation, food, insurance, phone calls, and visa applications may all add up quickly. If you don’t have the cash on hand in your savings account, a personal loan for travel can help you cover these expenses. The loan can also be paid back in EMIs over 60 months. Check out similar blogs on Piramal Finance for more information about the types of personal loans. You may also take a look at the products and services they offer.

08-11-2023

Gold Loan

Mistakes to Avoid While Applying for a Gold Loan

In today’s period, it is said that a GOLD LOAN is the most successful loan in the eyes of the Indian population. The demand for gold in India has increased by 804%. In our country, we use gold for jewelry and articles. It also has many corporate uses, one of which is using gold loans, which is the easiest solution to get easy finance in India. It is a secured loan taken out against one’s gold holdings. It has no restrictions. You can use this loan for various events like education, marriage, going abroad, or any project you are working on. A gold loan is offered by most banks, such as Muthoot Finance, SBI, ICICI, and others. More than half of the families in our country have benefited from this secured gold loan. [B-01] Gold Loan Interest Rate The goal of gold loans is to meet your financial needs whenever they arise. Gold loan interest rate is charged by the banks on the loan taken. The gold collateral is given back to its owner after he/she pays back the loan with interest on it. The gold loan interest rate ranges from 7% and onwards. The bank provides hassle-free submission of legal forms and documents for the process of a gold loan. All you have to do is make sure you repay the loan amount plus interest on time and without fraud. You can use the online calculators that different banks offer to figure out your EMI and find the best plan for you. These online calculators are free. Hence, you can use it for free as many times as you want. You have to be aware of certain factors that can affect your gold loan interest rates. Steady income: A person with a low income is majorly affected by the banks, as they charge high-interest rates for low incomes that are not on continuous terms. Gold loans for a person with a low and slow income cannot be extended. Banks prefer to extend credit only to people with high incomes. Purity of gold: The banks always question your collateral gold. The authorized person will make sure that your gold is of sufficient weight and that the gold is pure. It can affect your gold loan interest rate. Avoid These Mistakes While Applying for a Gold Loan More than half of people don’t know the correct area to focus on while applying for the easy-to-acquire gold loan. Everyone makes these tiny mistakes while choosing their suitable gold loan interest rate from different banks. Let us look at some of the small but significant mistakes that people make when selecting banks or loan plans. 1. Check your bank or institution When you lend the gold as collateral security, make sure that your bank or any institution that is lending you the loan is not fraudulent and can give your gold or gold articles back safely. These frauds are frequently reported by loan recipients. The best solution for this situation is to take a gold loan from government banks or NBFCs, they deal at the nominal gold loan interest rate. 2. Understand loan repayment building To achieve your goals easily, you should plan your finances first. You should understand the loan repayment terms from the bank. It will help you plan your finances and achieve your goals. 3. Calculate your LTV-LOAN TO VALUE ratio Your LTV amount should be the lowest. The bank uses this ratio to calculate the amount of loan you get. 4. Hidden charges Before applying, kindly read the privacy policy or the terms and conditions of the bank or institution from which you are taking the loan, as it might have charges relating to penalty, auditing, or other legal charges that are not shared at the time of agreement by the banks or institutions. It might create problems for you after. 5. Do a purity check Check your gold’s purity. Many banks lend loans according to the purity of the gold. The gold loan interest rate varies according to purity. Note that the Banks or institutions give gold loans on purity ranging from 18 to 22 carats. 6. Connect with hassle-free institutions Verify the process of the gold loan from various banks and choose the one that is easy to apply for and submit documents to. It gives you relief in your daily activities. 7. Choose your bank or institution wisely If you want to be at ease after applying for a gold loan, you must select the bank or institution that provides the best support or customer service. It will help with your problems paying the interest on your gold loan. 8. Save your interest with different schemes There are various schemes offered by banks. Connect through the authorized person and commute. You can go for partial repayment. It means you can pay your interest and principal amount partially or as they feel suitable. EMI method: In this method, you will only pay your gold loan interest amount to the bank as per your EMI period. On maturity, you will be required to pay the principal amount of your gold loan. Check to See If You Are Eligible for a Gold Loan You should meet the following criteria to apply for the gold loan at an affordable gold loan interest rate: You should have the appropriate amount of gold that is acceptable to the bank or institution. Your gold should be attested with a proper hallmark. The minimum age requirement to apply for a gold loan is considered 18 years old and above. [B-02] Conclusion The buyer should be aware of the mistakes and the solutions listed above. Make proper use of online platforms to learn about your LTV ratios and calculators. Have proper credit evaluation tools to find the right interest rate for your gold loan. Explore more finance articles on Piramal Finance and enhance your financial wisdom.

08-11-2023

Personal Loan

Flexi Personal Loan: All You Need To Know About Eligibility And EMI

A personal loan might be useful in times of crisis. It is a loan product that is provided by banks as well as other non-banking economic firms. Despite its high bond yields, it is among the most sought-after debts on the market due to its lack of collateral. A Flexi loan is a form of personal loan with a predetermined limit specified by the bank. You can withdraw funds as needed from this. The lender sets the starting limit sum depending on your credit record. The Flexi personal loan might help you fulfil instant cash needs in a crisis. [B-01] What exactly are Flexi loans? A Flexi loan is a personal credit with a preset credit limit. Based on your credit profile, the bank will issue a pre-approved money limit in the type of credit line and overdraft facility. The interest rate on a Flexi loan is levied only on the sum you utilised, not the whole approved sum. You may refund the main sum whenever you wish. Yet, you must pay off the interest monthly. You may also pay off the loan anytime you have extra cash. A Flexi personal loan may be secured by any salaried and self-employed person and used to cover any fiscal demands. What is the Flexi personal loan and how does It work? The Flexi loan acts similarly to overdraft services. When you ask for the Flexi personal loan, a bank decides the loan sum based on your ability to repay, income, credit score, and other factors. Money will be deposited into your account without the need for further paperwork or formality. You may withdraw funds within this loan limit for any cause and as many instances as you pick. Interest is imposed on the sum spent. There is no interest payable on the left loan balance. You may apply for a Flexi personal loan whether you’re self-employed or employed. Flexi personal loan features and benefits Liquid cash supply You can always be prepared for any sudden financial demands with Flexi loans. The loan sum is accepted under this sort of loan, and you may withdraw it as many instances as you like under the credit line granted. Repayment ease Flexi loans are among the simplest to repay. They guarantee that you take cash within the credit limit allowed. Thus, loan repayment is easy since you take cash as needed and pay just what your budget permits. Free prepayment in part With this no-cost prepayment choice, you may pay off your loan in instalments whenever you have extra cash, without any trouble or extra interest charges. Several withdrawals Since the full loan sum is granted and paid at once, you may make as many withdrawals as you choose. There are no extra papers or costs for any withdrawals made after the payout. Lower interest rates Flexi loans can also help you lower your interest payments. The interest is calculated based on the sum withdrawn rather than the total amount approved by the lender. If a debt of 10 lakh is granted, but only 5 lakh is withdrawn, interest is charged only on the first 5 lakh. This also implies that EMIs are minimal, making loan payments simple. Eligibility for applying for a Flexi personal loan Self-employed You must be of Indian origin. Your CIBIL score should be 685 or above. Your company’s age should be at least three years. It is best if you are between the age of 24 and 70. Your employment status should be self-employed. Employees that are paid You must be an Indian citizen residing in an Indian city. Your CIBIL score should be 750 or above. It would be best if you work for a public, private, or multinational corporation. It is best if you are between the ages of 21 and 67. Your wage is decided by the city in which you live. All of the information in this part is general. Please verify your bank’s website for the specific qualifying conditions before applying. How Should You Get a Flexi Loan? The processes for applying for a Flexi personal loan are as follows: Go to the official site of the banking firm where you want to get the loan. Select ‘Flexi Personal Loan‘ from the drop-down menu. This choice is most likely to be found in the product section of your bank’s website. Select the ‘Apply Now option. Fill out the request form with the requested information. Upload all required papers. After validating your application and papers, the bank will credit the money to your bank account. You may also apply for a Flexi loan at your nearest bank branch or banking firm. What exactly is the Flexi loan EMI calculator? The Flexi loan EMI calculators are the tools that calculate the interest you must pay on the loan sum you use. The Flexi loan represents an unsecured loan with a predetermined limit that you may use to cover financial crises. The loan sum may be returned at any time, depending on the duration you choose. You are just obliged to pay the rate of interest as the EMI. One of the tempting perks of this loan is that the interest is paid only on the loan sum you use. For example, if the Flexi loan maximum is 7 lakh and you use just Rs. 2.5 lakh, the interest is due only on the used amount (2.5 lakh) and not the whole amount (7 lakhs). How does a Flexi personal loan EMI estimator function? A Flexi loan EMI calculator considers the loan sum as well as the interest rate imposed by the bank. For example, if you obtain a loan of INR 10 lakhs at a rate of 13.25%, you would have to pay a total interest of INR 11,042 monthly. This sort of loan pays the interest sum as your EMI amount in the first year. The Flexi loan EMI calculator is easy to use. All you need to do is input the loan sum and rate of interest into the relevant section. The tool will then reveal the quantity of interest. [B-02] Last Word Flexible personal loans might be useful during a financial emergency. You must have a decent credit score to be eligible. Keep your paperwork close at hand to expedite the procedure. Compare and contrast the interest rates of different lenders. If you want to learn more about Flexi personal loans, visit Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

Top Key Factors You Must Know About Wedding Loans

Weddings are among the most significant moments in your life. It’s no surprise that you go out of your way to make it special. The concept of a beautiful wedding and how much it should cost differs from person to person. Regardless, preparing needs money. You may need more money to afford your desired wedding, requiring a loan. The good news is that there are many firms eager to grant wedding loans to you regardless of the amount as long as you match the lender’s conditions. [B-01] What is a Wedding Loan? Wedding loans are only one kind of personal borrowing. You may use this loan to cover your wedding costs. In other words, a wedding loan is an unsecured instalment loan that is taken for a limited time. It must be returned within the timeframe specified by the bank. If you want to have a spectacular wedding but spend only some of your funds, taking out a wedding loan is a good choice. The interest rate will be set by the bank based on your records. The bank also permits you to return the loan early. What You Should Know Before Availing of a Wedding Loan While wedding loans may help make your special day a success, there are a few things you should think about before asking for one. Borrow As Needed While you may be able to borrow up to the maximum loan amount, you must only borrow what is needed. Plan your finances based on a precise assessment of your wedding expenses. Excessive borrowing may be detrimental to your finances and other long-term savings objectives. Examine Your Credit Report Before applying, check the credit score (also known as CIBIL score and Experian score) criteria of your desired lending institution. A personal loan for a wedding requires an Experian score of at least 630. Take Into Account All Charges Aside from interest, there are additional fees involved with a personal loan, such as a processing fee, prepayment penalties, default penalties, and so on. When settling on a loan amount, take into account all of these expenses. Advantages of a Wedding Loan Rapid Disbursement One of the most appealing aspects of applying for wedding loans is the possibility of having the loan approved on the same business day. Once you have submitted the required documentation, the bank will process the loan as quickly as possible and credit your savings account with the loan amount within hours. However, the cash is usually reimbursed after the documents are verified. This function will allow you to proceed with your wedding preparations without interruption. The Rate of Interest One of your primary worries while applying for wedding loans will be the interest rate. The interest rate may vary depending on your wage, credit score, and other factors. When applying for a loan, it is critical to have a strong track record with the bank so that you may receive the best interest rate possible. Security Wedding loans are unsecured loans, which means that you do not need to provide any security while applying for the loan. A guarantor is not also required for this loan. As a result of this feature, there is relatively little documentation to file, and the loan is processed promptly. Simple Steps Since marriage is such an important event, you would want it to go as smoothly as possible. Many banks accept wedding loan applications through their official website, banking app, SMS, and branch locations. Less paperwork and processes free up your time, allowing you to focus on wedding preparations. EMI Flexibility You may choose your EMI for your wedding financing based on your wages. You may also choose the loan’s term. If you are convinced that you will be able to return the loan in one year, the bank will let you. Repaying the loan before the end of the term raises your credit score and establishes a solid track record with the bank. Loan Amount When you apply for a wedding loan, the bank’s maximum lending amount is Rs. 20 lakhs. This loan’s payback length ranges from 1 to 5 years. However, if you can return the loan before the term expires, the bank will accept it. Is a Wedding Loan the Best Option for You? Before you apply for a personal loan for your wedding, make sure you understand the costs, conditions, financing duration, interest rate, and any effect on your credit score. Time for Wedding Loan Funding Weddings are time-sensitive, so it’s a good idea to know ahead of time how long it will take to get the funds when your loan is granted. While some lenders may provide same-day financing, others may need more time. Aside from the loan processing time, it would be best if you also had to factor in the time it takes to prepare for the criteria and documentation. Furthermore, several components of a wedding need prior preparation and payments. As a result, you may need to budget ahead of time. Wedding Loan Considerations When looking for a wedding loan, there are several aspects to consider. Interest rates, financing periods, and repayment conditions should all be compared. Based on your research, calculate your wedding financing. This will allow you to assess which loan offer will cost you the least in the long run. The Effect on Credit Score Your credit score is one of the elements that lenders check when analyzing a loan application. A lender may conduct a rigorous credit check when you ask for a loan. As a result, it is essential to exercise caution while asking for loans. Too many hard credit checks on your record in a short time might be seen as a red flag by lenders. [B-02] Conclusion Weddings are more than just spectacular shows. They are a celebration of love for the couple as well as their family. Budget is generally one of the first and most important items to consider while organizing a wedding. Make sure you have enough finances to enjoy this special day. You may apply for a loan for a wedding online and choose a reasonable payback period. The whole procedure is done without difficulty. If you want to learn more about wedding loans, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023