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Home Loan

Secured Loan: Its Types, Features And Eligibility You Should Know

What is a secured loan? Secured loans are a type of debt where the borrower pledges their moveable assets as collateral to obtain the required funds. Applicants for secured loans benefit from flexible terms and low-interest rates. This is so that the bank can profit from the applicant’s lower risk profile and security. If you default to repay the loan, it will lead to a loss of security. These loans can be used for several things, like starting a new business, purchasing a home, or a new car. [B-01] Why are there secured loans in the market? Why would someone avail of a secured loan when there are unsecured loans easily available? Well because Lenders are partially freed of the possible financial loss they can suffer as a result of a payment default. Due to the commitment of an asset, borrowers are qualified for larger loans with better terms and cheaper interest rates. What are the types of secured loans? Mortgage Loans Non-recourse loans Car loans Home loans Features of secured loans Loans are made based on the assets’ ownership titles, used as collateral. Low-interest rates because the bank is more confident in your ability to repay the loan. A wider range of repayment alternatives. Both fixed and variable rates are available. Faster loan approval. Loans can be tailored to meet some needs. Unemployed individuals can also apply for these loans. A guarantor is not required. Assets can be repossessed by lenders in case of a payment default. Increases CIBIL score when the loan is fully repaid. Eligibility criteria The minimum age of the individual should be 18. The applicant must be an Indian citizen. The applicant must have a minimum yearly income of Rs. 3 lakh. For loans based on business income, the enterprise must have been profitable for the last three years. The applicant must possess assets with a value equal to or greater than the loan amount required. Documents required ID Proof: Voter Card / Aadhaar Card / Passport / PAN Card Age Proof: Passport / Driver’s License / Aadhaar Card Residence Proof: Utility Bills / Rent Agreement / Passport Income Proof: Salary slips for the last 3 months or IT returns or Form 16 Bank Statement: Bank Statement for the last 6 months Proof of Signature Property Papers (as collateral) Passport size photographs Duly filled application form Benefits of secured loans Because the bank knows you want to preserve your collateral, interest rates are lower. If banks are confident that their investment in you is secure, they will lend money at reduced interest rates. The bank’s responsibility and risk are significantly decreased, allowing for the sanctioning of larger loan amounts. The bank offers better terms and conditions. Faster documentation and clearance, simpler and less expensive processing, and overall friendlier conditions that don’t abandon you in the lurch in case something goes wrong. If you have flexible repayment terms, you won’t have to worry about penalties and fees for settlement payments, pre-closing your loan, making a large payment that significantly lowers your capital, or even if you wish to prolong the duration of your loan. Can be used by people with poor credit histories or low CIBIL scores because both of these indications essentially indicate how likely you are to be able to repay your loan. When a collateral asset is involved, the bank’s need to know whether you can or cannot repay your loan is no longer relevant. Since interest is tax deductible, you can keep more money you would have otherwise lost to taxes. The minimum income needed is far lower than for unsecured loans because it also serves as a measure of your capacity to repay. Disadvantages of secured loans The bank will not hesitate to seize all the assets you have pledged as security, even when it approves a larger loan amount and a lower interest rate. Your readiness to relinquish the pledged asset must match your readiness to accept the loan. You must be prepared to lose the home you live in, the vehicle you drive, and the possessions that support your lifestyle. In the case of a secured loan, for example, you would be using the vehicle as collateral in case you were to default on the loan. This implies that if you skip a payment or otherwise default, the bank will seize your new car, and all previous EMI payments will be deemed invalid. You will be left stranded and bankrupt after losing the automobile and the entire amount you paid toward it (plus interest). To qualify for a secured loan, you must submit numerous documents, including verification of your identity, age, and address, as well as those about the ownership of your asset. The asset must be wholly held by the person requesting the loan, free and clear of all EMIs and partnership agreements. Longer loan repayment terms allow for more fluctuations in your overall income; even a minor decline could impact your repayment schedule. The loan you want must be repayable with the proceeds from the sale of the item you intend to pledge as collateral. If you miss a payment on a secured loan, your CIBIL score will be severely impacted. Your credit score and rating could suffer if the bank needs to confiscate your home and other assets, and it might be quite challenging to recover from that. [B-02] The Bottom Line In times of extreme necessity, secured loans can help, but they must be used carefully. Until the loan is fully repaid, the asset pledged as collateral must be regarded by the borrower as the bank’s property. Before taking a defaulter’s collateral, banks won’t think twice and act nearly like sharks around a boat, waiting for someone to jump off. The interest rates, repayment plans, terms, and circumstances are unmatched by any unsecured loan if you are sure of your ability to pay back the loan when due each time. To read more about offers of Home Loans, Secured & Unsecured Business Loans, Corporate Loans and various other loans with lower EMIs at great interest rates, visit Piramal Finance.
08-11-2023
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Personal Loan

What is Considered as Proof of Income for a Personal Loan in India?

Any time could be a bad time financially. A personal loan can quickly make up for any shortfall in cash. If you are over 18 and have a steady source of income, you can apply for a personal loan in India. All banks and other places that lend money in India offer these loans. Personal loans are unsecured and don’t require collateral. So the borrower had to meet the criteria the lender set to get one. The relevant documents are used to ensure that the eligibility requirements have been met. Let’s look at the documents you need to get a personal loan. [B-01] Documents needed to get a personal loan There are four main types of paperwork that are needed for a personal loan. A person who wants a personal loan must meet certain documentation requirements for each category. Income evidence The amount of the loan depends on how much money the applicant has. So, if you want a personal loan now, you must show proof of your income. The paperwork needed for a personal loan also depends on what the applicant does for a living. So, pensioners, self-employed people, and people working for a company must all send their proof of income. Age proof The length of the loan is based on how old the person is. Age proof is the paperwork that says the applicant is the age. Authentication Identification proof is a group of official documents. They provide proof of the applicant’s identity. The loan company checks the person’s identity to lower the chance that they won’t pay back the loan. Proof of Address Before giving a loan, the lender needs to know where the applicant lives. As a result, many documents can be used as proof of address. As part of the paperwork for a personal loan, the applicant can show proof of their address. For salaried employees Salaried people can apply for personal loans by sending in the following paperwork: A photo and a filled-out application form Documents like an Aadhaar card, PAN card, or voter ID are used to prove identity. A passport and bills for services Phone, power, gas, water, and a driver’s licence are still good. Birth certificates, high school and college diplomas, and voter ID cards can be used to prove someone’s age. For proof of income, you can use ITR forms, Form 16, the last six months of pay stubs, and records from your bank. For Self-Employed Individuals Self-employed people can apply for a personal loan by giving the following documents: A photo and a filled-out application form Identification documents like an Aadhaar card, PAN card, voter ID card, or passport, or documents that prove your age, like school or college diplomas, birth certificates, and voter ID cards. Address proof, like a passport or bills for phone, power, gas, water, and utilities, and a valid driver’s licence. Proof of income, like ITR forms, Form 16s, pay stubs every six months, and bank records. As proof that they are a legal business, they have a partnership agreement, a certificate of practise, a registration certificate, and a business enterprise PAN card. For NRI Applicants Even Non-Resident Indians (NRIs) can apply for a personal loan in India as long as they have the right paperwork: A photo and a complete application form Documents like a passport, Aadhar card, PAN card, and Voter ID are used to prove identity. Documents that prove your address, such as a passport, phone, electric, gas, and water bills, and a driver’s licence. Proof of age, such as leaving certificates of high school and college Birth certificates, documents, and voter ID cards Proof of income, like ITR forms, Form 16, pay stubs from the last six months, and bank records from the last year for both Indian and foreign bank accounts. Passport and visa copy If the NRI candidate is in the country when they apply for the loan, they must also give the local authorities a power of attorney. You must send in all paperwork related to your salary. For Pensioners For a retired person to apply for a personal loan, you must send in the following loan paperwork: A photo and a filled-out application form Documents like a passport, PAN card, voter ID card, or Aadhar card are used to prove who you are. A passport, a recent utility bill (for electricity, gas, water, or phone service), and a recent driver’s licence are all good ways to prove your address. Documents that show someone’s age, like a birth certificate, a high school or college diploma, or a voter ID card. Income proof from the last two years, like ITR forms or Form 16s, the last six months’ worth of pay stubs, and bank statements. How can a person get a personal loan if they don’t have any paperwork? If you have a good relationship with the bank, you have a better chance of getting a personal loan without paperwork. When you use the same bank for all your financial needs, it’s easier for the bank to determine your creditworthiness. So it’s best to keep your credit score high. Good experiences with lenders If you ever need a no-documentation personal loan, it will help if your bank or lender trusts you. You can get all your money from the same bank since they will know if you are eligible for loans and if you can pay them back. It’s also helpful to have an account with the bank in question. The amount of debt compared to income If you want to show that you are financially stable, your debt-to-income ratio should be less than 50%. This gives the lender confidence that you will be able to pay back the loan. This will help you get a loan with no paperwork. A credit score is important Since banks usually see a high credit score as a sign that you will pay back the loan on time and in full, you may need one to get a loan without documents. Some of the most important things to do to get a good credit score are to pay your bills, credit cards and EMI bills on time. [B-02] Conclusion Personal loans are unsecured because you don’t need anything to back them up. Most personal loans can be paid back between one and five years. The lenders offer different ways to pay back the loan based on the borrower’s credit history. Each month, loan payments are made with EMIs, postdated checks, or by telling your bank to take out the EMI through an electronic funds transfer (ECS). Compared to other loans, personal loans demand less paperwork. You can learn more about personal loans by visiting Piramal Finance in detail.
08-11-2023
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Cards

Things to Keep in Mind while Getting Credit Card for the First Time

The acquisition of your first credit card is both a watershed moment and a period of profound change. You may have an idea of how credit cards function. You must also know how to use one properly. The time and resources you save and the interest you avoid by learning the ins and outs before you start building credit will more than pay for the effort. Your first credit card will have a big impact on your credit history. As long as you use it responsibly, that impact can be very positive. Credit cards let you afford the basics, like everyday expenses. They can earn you rewards when you charge and help you qualify for lower interest rates on loans. [B-01] Eligibility for Owning a Credit Card You must be a legal resident of India and hold a valid Indian passport. A minimum of six months of regular employment A credit history of at least 700 is required. A monthly income of at least INR 20,000 is required. You must be at least 18 years old. Details of your source of income. New applicants who have trouble with the above points may want to start with a secured card A secured card is issued against a fixed deposit for 80% of the deposit’s value. First-time credit card users with limited or unproven income may find the security of a secured card to be the most reliable option. Credit cards are a handy method to shop. They also help in gaining rewards. It is advisable to use a credit card for immediate needs. Making a monthly budget that you know you can stick to will prevent you from getting into financial trouble. The 50/30/20 budget advises allocating half of the income toward housing and food expenses, thirty per cent toward urgent payments, and twenty per cent toward savings and debt repayment. Points to Remember While Getting a Credit Card Distinct credit card varieties You must have a thorough understanding of the various credit card options available in India. You can get a credit card with a low annual fee if you are just starting, for instance. Plus, there are a variety of credit cards to choose from. These include those specifically designed for travel, shopping, cash back, fuel, etc. Source of income Credit card companies typically need proof of income as part of the application process. In the credit card application process, your salary is a major factor. This demonstrates to the card issuer that you have the financial wherewithal to settle your monthly credit card balance. As one’s disposable income rises, so do the available card options. Initiate with a low credit limit Credit card companies typically give you a modest credit limit at first to reduce their risk. Credit card companies typically provide an increased limit after you’ve demonstrated responsible use of your card. Your income is factored into your credit limit, so if you make a low salary, you may have a lower credit limit. Terms and conditions for use of credit cards You should read the terms and conditions carefully because they contain vital information regarding the card and your use of it. Please familiarise yourself with the card’s APR range, fees, reward structure, and other important data. Function of Interest If you pay off your credit card amount in whole and on time, it’s like the bank gave you free money. However, if you don’t pay off your debt in full each month, interest will be added to your account at the annual percentage rate (APR) that applies to your particular credit card. The typical annual percentage rate is between 30% and 40%. How does the grace period function? If you pay off your new balance in full by the due date, the issuer will not charge you any interest on the purchases you made during the grace period. Payments are given a bit of leeway between the end of the billing cycle and the following one. If you fail to pay your bill in full by the due date, you will be subject to interest charges. Credit card fees Verify that you are aware of all of the significant costs associated with using the card. Joining costs, yearly fees, loan charges, transfer fees, cash advance fees, foreign transaction fees, over-limit fees, and more are just some of the items you need to keep an eye on. Get familiar with all of these figures before you incur any unanticipated fees. Late payment fees You should be aware of the possible late payment fee that may be applied if you pay off your debt later than the agreed-upon due date. If you’re late with a payment, not only will you have to pay late payment fees, but your creditors may also record the late payment to the credit bureaus. This can have a negative impact on your credit score. Keep a check on the spending limit It’s important to monitor your expenses no matter how high your credit card limit is. While a solid repayment history will help your credit score, a high utilisation ratio will hurt it. If you spend more than 30–40% of your available credit on your cards, your score will suffer as a result since you will be seen as a higher risk when it comes to paying off your obligations. Realise the impact of credit cards on your score Your credit card decisions and debt repayment will affect your credit score. Credit cards can hurt your credit score if you use too much of your available credit. [B-02] Conclusion Even though it’s an important first step, applying for a credit card isn’t easy. You should learn the Dos and Don’ts of how a credit card operates. Also, study the fine print before using one. It’s smart to weigh the benefits and negatives of each option. Doing so can help you save money and improve your credit rating. For more details on credit cards and their process, you can visit the Piramal Finance website and get assured assistance.
08-11-2023
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Personal Loan

Which Month Is The Best To Apply For Personal Loan And Why?

If you need to borrow money, you can apply for a personal loan as it is one of the most convenient options. The process is completely hassle-free and these loans do not require any kind of collateral other than the promise to repay the money. There is no shortage of personal loan providers online or at brick-and-mortar banks, but consumers are mindful, as are many lending experts. Why? The most important factor is that with interest rates between 16% and 30%, these are some of the costliest loans available. Since the borrower is not required to furnish collateral, the extraordinarily high-interest rates are reasonable. The borrower’s current cash flow, including salary, rental income, company profit and loss, loan payments, and other cash outflows, are factored into the loan amount. If the product is as bad as people say it is, then why does it even exist? Is it possible that getting a personal loan may help out? The answer is yes. However, it depends on the borrower’s situation. [B-01] What is the Best Time to Apply for a Personal Loan? If you want to apply for a personal loan, the greatest time to do so is when terms favour you most, such as low or no interest rates, low or no processing costs, etc. You should be able to acquire enough money from the lender to cover your expenses, and the loan itself should cost as little as possible. Let’s give each of these a careful reading. Finding the Lowest Rate for a Private Loan Personal loan interest rates are normally high as consumers don’t need to provide any security or collateral to acquire this loan. In certain Indian institutions, the rate may be as high as 25% a year. Recently, though, some banks have lowered their minimum interest rate on personal loans to below 10%. To qualify for the best possible interest rate, borrowers need a credit score of at least 750 and a payback history that shows zero instances of late payments. What Else Lenders Check Apart from the Credit Score to Offer a Lower Interest Rate on a Personal Loan? A person with a high credit score has a better chance of qualifying for a reduced interest rate on a personal loan. However, the lender will look at more than that before approving your loan. You need a substantial monthly income. Further, your current loan and credit card balances should not be too large. In such cases, the bank or financial institution will likely agree to your request for a reduced rate on a personal loan. You have a better possibility of earning a reduced rate the further up you go in an organization, and that likelihood increases if you work for a very successful company. Top executives from all industries receive discounted prices. When the Processing Fee Is Very Low or Even Zero? Your loan will incur a one-time processing fee. Loan fees can be a set amount or a percentage of the borrowed funds. But the idea to apply for a personal loan is unique. Unlike with other types of loans, the processing charge for a personal loan is automatically deducted from the amount you borrow. The remaining sum is the one deposited into your account. However, the interest rate will be calculated based on the amount you request, not the amount you get from the lender once the fee is deducted. A lower processing charge means you may borrow more money from the lender to cover your expenses. Lenders may often advertise a “no price” processing option to win over new consumers. If you find yourself in possession of such an opportunity, don’t waste any time taking advantage of it. When Should You Consider Taking a Personal Loan? 1. Home Renovation It’s a great option for getting the money you need to remodel your house without having to put up any of your property as collateral. The shorter duration of the commitment means that you won’t have to bear the weight for as long. 2. Loan with Higher Interest Rate Well, apply for a personal loan to pay off another debt that carries a higher interest rate for a smart financial move. When compared to the high-interest rates charged by credit card companies (often 24–36%), a personal loan with a rate of 10–18% makes more financial sense. 3. To deal with a medical emergency Because of the urgency of medical emergencies and the limited paperwork necessary for personal loans, they can be a lifesaver when times are tough. 4. To go for higher education It’s smart to apply for a personal loan if you want to go to college, whether that’s in India or elsewhere. Aside from covering tuition, the loan can be put toward living expenses, transportation, and whatever else the borrower needs. 5. Raise your credit rating If you ever need to borrow a large amount of money, your credit score will be a major factor. To improve your credit score quickly, apply for a personal loan in a small ratio and repay it on time or ahead of schedule. By showing the lender a positive credit history, you will increase your chances of getting approved for a large loan in the future. [B-02] Conclusion No matter what motivates you, a personal loan is a serious financial commitment that has to be treated with respect at all times. Never take on more debt than you can reasonably afford to pay back, and spend it wisely once you have it. Examine your alternatives before you apply for a personal loan to pay off credit card debt or fund a home renovation venture. To choose the best loan for your needs, talk to your bank and any financial advisors you may have, including those that specialize in Piramal finance. You should have your personal information handy to speed up the procedure, and you should avoid high-interest payday loans and fraud at all costs. It’s possible that, with the appropriate strategy, you may get the money you need in a matter of days.
08-11-2023
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Personal Finance

What Is The Average Interest Rate On Personal Loan In Festive Season?

The festive season is the most colourful and happiest time in the diaries of Indians. Banks and other financial institutions will never fail to surprise you during the festive seasons. A personal loan taken during a festive season will surely be a life-saver. Also, the personal loan interest rate during festive seasons will be affordable. In this article, you will find the average personal loan interest rate during festive seasons. [B-01] What is a Personal Loan? A personal loan is an amount that you borrow from banks or other Non-Banking Financial Companies (NBFCs). You must pay interest till the repayment period for the principal amount in a personal loan. There is no need for you to provide security or collateral when applying for a personal loan, unlike a mortgage loan. The amount that you get from a personal loan is personal in practice. Because no one can question you on “where you have spent your money?”. This is one of the biggest advantages of a personal loan. What is the average interest rate and benefits on Personal Loans during the festive season? The festive season is the time when most of you will need money. This is to meet your needs like buying clothes, planning events, etc. During the festive season, personal loanswill also surprise you. Because the personal loan interest rate will be lower than at other times of the year. The average personal loan interest rate during festive seasons ranges between 10.00% to 24%. The reason for low-interest rates during festive seasons is the higher demand. The lenders will also give you a higher principal amount during the festive seasons. This will help you in multiple ways. There will be other special offers during the festive season. It may include your repayment period, flexibility in repayment, etc. Some lending institutions will also give special offers on processing charges. It depends on the amount that you avail from them. You will also have quick approval during the festive seasons. You need not worry about delayed sanctions. Note: The average personal loan interest rate will not be constant. It changes as per the lending institution and banks. The offers will also change during the festive seasons What are the factors that affect your eligibility for a personal loan during the festive seasons? Many factors decide your loan interest rate during a festive season. They include your age, credit score, occupation, etc. They are discussed in detail below. Employment status This is the basic factor. If you are an unemployed person, there is no chance. This is because of your inability to repay the interest. You can be a salaried employee or a self-employed individual. Age Your age is necessary for fixing the principal amount. Most of the lenders fix 21 years to 60 years. The age criteria are different for different lenders. The minimum is your age, maximum will be the chance for a personal loan. Experience The years of experience and work in the same industry will be considered. For example, person X has a working experience of 3 years and has changed 3 different fields. But person Y has a work experience of 10 years in the same industry. Without a doubt, the lender will prefer person X to person Y for a personal loan. Credit (CIBIL) score A credit score is important for personal loans and other financial activities. CIBIL Score shows your credit history. This scale ranges from 300 to 900. It is always advised to have a minimum CIBIL score of 700 to avail of a personal loan. If you have a low credit score, don’t worry. You can improve your CIBIL score. So it is better to check your credit (CIBIL) score online before planning for a personal loan. Financial discipline The lenders will also consider past repayment history for a personal loan. This will make your profile low-risk. This includes timely payment of EMIs and interest rates. The reputation of your organisation If you are a salaried employee, your organization’s reputation will also help. If yours is a well-known company, the chances will be high. What are the benefits of a Personal Loan? Minimum Documentation: We’ll ask you only for a few basic documents. This will not only save you time but reduce your burden. They are the proof of your identity, address, and your income. Check the documents required in advance to avoid a last-minute rush. Principal Amount: We provide principal amounts even from Rs.1 Lakh. Quick Sanction: We will sanction the amount as soon as possible, but also disburse funds quickly. Use as you wish: You can use the principal to finance any of your needs. It may be your dream vehicle or your medical emergency. Low EMI: We will never charge high-personal loan interest rates. It will be decided only by your ability and creditworthiness. This will also help in easy cash management. Flexible Repayment Period: To pay your interests, you can choose any method (fixed type, floating type, or hybrid type). You can also pre-close and pre-pay. It ranges from 12 months to 60 months. Zero Pre-payment and Foreclosure charges: Before the period, if you have a bulk amount, you can pay off the loan. We won’t charge extra for pre-closing your loan. [B-02] Conclusion We hope you are clear on why you should take a personal loan during the festive seasons. As festive seasons are on the way, Piramal Finance wishes to light up your lives by lowering your personal loan interest rates. If you wish to take a personal loan at zero pre-payment and foreclosure charges, get in touch with us. We work with a team of experts to assist you in every financial step of your life. To read more about other financial topics, you can visit Piramal Finance whenever you wish. Wishing more diyas glowing in your life!
08-11-2023
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Personal Loan

How Piramal Finance Helps You To Calculate Personal Loan Emi Online In India?

Planning your finances allows you to better manage your monthly budget and set aside some money for emergencies. However, you can never be too prepared financially. A personal loan can be helpful in difficult, unforeseen situations. It does not need any sort of collateral and can be used for whatever purpose the borrower sees fit. However, just because unsecured personal loans are an option doesn’t mean you should rush out and apply for one without first conducting some research. Personal loan EMI calculators may be found on the Piramal Finance website, and they should be used before you hit the “personal loan apply” button. Otherwise, you can end yourself in a position where you can’t afford to make your regular loan payments. Everyone looking for a loan would benefit greatly from using a personal loan interest calculator or a monthly payment calculator. You may estimate your personal loan EMIs in advance, which is useful for budgeting purposes. Let’s take a deeper look at the Piramal Finance Personal loan EMI calculators. [B-01] What is a personal loan EMI calculator? It’s obvious what a personal loan monthly payment calculator does. The overall interest accrued, as well as the total amount owed each month, and the monthly EMI payment, are all calculated for you. Input the amount you wish to borrow, the interest rate you would like to pay, and the length of time over which you would like to pay it back. The Personal loan EMI calculators will show you the monthly payment amount, the total interest paid on the principal, and the total amount owed based on the information you provide. Keep in mind that the Personal loan EMI calculator provided by Piramal Finance is simply a rough estimate and your actual interest rate for a loan will be based on the bank’s evaluation of your financial standing. How can you use the Personal Loan EMI Calculator? Piramal Finance’s personal loan EMI calculator is shown below. First, go to Piramal Finance’s official website Go to Piramal Finance’s webpage for further information. Use the Personal loan EMI calculators by going to the Calculator menu. Enter the loan amount Following this, you will be prompted to input the desired loan amount. Enter the tenure The term of the loan is how long you plan to pay it back. The Personal loan EMI calculators require you to enter the tenure of your loan. Enter the rate of interest The last step is to input the interest rate that is displayed on the Piramal Finance website. Typically, it rises from the 10% range. If you want to know how much you will have to pay each month toward your house loan, you may use a Personal loan EMI calculators to figure out your monthly payments. What affects your personal loan EMI Your EMI will mainly be affected by three variables. Your EMI will increase in proportion to the size of your loan’s principal. The amount of your EMI is closely related to the interest rate on your loan. The interest rate determines the monthly payment amount (EMI). If your loan has a fixed interest rate, your monthly payment won’t change. If the interest rate on your loan fluctuates, you’ll pay a lower monthly payment (EMI) while the rate is low but a larger EMI when the rate is high. Your loan’s EMI will go down as its term length increases. The longer the term of the loan, the less money you’ll have to pay each month. Remember that a longer tenor will result in higher interest rates. Utilizing the EMI calculators provided by Piramal Finance Some benefits of utilizing Personal loan EMI calculators include: Compare Loans Calculators that estimate monthly payments are a great resource for evaluating loan packages. Interest rates for personal loans vary from one financial institution to the next. So, it is helpful to use an EMI calculator to estimate how much money you will owe each month. Using an EMI calculator for a personal loan, you can quickly determine if a certain loan program is a good fit for your budget. Get the proper tenure There are many possibilities for tenure that may be explored with the help of an EMI calculator. EMI decreases as the tenor increases and vice versa, hence a longer tenor yields a lower EMI. If the monthly payment is low enough, you won’t feel overwhelmed by the obligation to repay the loan. Find the entire amount of interest If you need a breakdown of your repayment plan, a personal loan EMI calculator might help. You can see how much of your payment goes toward the principal and how much toward interest. Using an EMI calculator on Piramal Finance’s website provides quick access to all this data. Save time It’s unrealistic to contact the lending departments of many financial institutions every time you have a question. One option is to utilize an online Personal loan EMI calculators, which may provide the necessary information in a matter of seconds. [B-02] Conclusion Personal loan EMI calculators help borrowers make educated borrowing choices. By using the Piramal Finance EMI calculator, you may examine your equivalent monthly instalments, total interest amount, total payback amount, and planned repayments. You may also determine what term length will be most manageable for you to repay your loan. An EMI calculator can help you evaluate personal loan offers from several banks and select the best one. You should always be on time with your loan EMI payments. If your loan EMI is too expensive, there are many options available to you. It is prudent to do some homework before committing to a loan. Choose a lender that provides a competitive interest rate on loans and keep your monthly EMIs within reasonable bounds. Piramal Finance can assist you in preparing a home loan application.
08-11-2023
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Personal Loan

6 Unseen Factors That Can Infect Your Personal Loan Interest Rate

Due to the flexibility of sanctions, personal loans are one of the most useful forms of debt consolidation. You can use a personal loan for practically anything. From paying for a dream vacation to making a down payment on a home. You should check your finances to make sure you can afford a personal loan before applying for one. You may calculate how much you will pay in interest throughout the life of your loan by looking at the rates now available to you. There is a wide range of interest rates for consumers and loan providers to consider when determining the terms of a personal loan. Personal loan interest rates vary from one lender to the next depending on several factors, including your credit score. Your ability to repay a personal loan is enhanced by a high CIBIL score since you will likely qualify for lower interest rates. Lenders take several criteria into account when determining interest rates for unsecured loans. The good news is that some elements influencing personal loan interest rates are within your control, allowing you to increase your reputation. Keep reading to find out what they are. [B-01] Factors that Affect Your Personal Loan Interest Rate Personal loans in India have seen a big upswing and are expected to continue increasing at a rapid pace to keep up with the demands of the ordinary Indian consumer. Weddings, vacations, college tuition, event planning, home improvements, unexpected medical expenses, and so on, all benefit greatly from the availability of personal loans. Personal loans are popular because they may be used for a variety of purposes, the borrower bears no risk, and the loan can be processed quickly and easily online. Although many people are tempted by the convenience of a personal loan, it’s important to consider all of your options before making an application and ensure that your prospects look stable for making full payback of a potential personal loan. Personal loan interest rates are a major factor in determining whether or not you can afford to repay a personal loan. In the cases of house loans and auto loans, personal loan interest rates are more or less set for all borrowers. But these rates might change based on the borrower and the lender’s standards for approval. As a result, it is generally recommended that you learn everything you can about the factors that influence the interest rate on your loan. You may see a change in your personal loan’s interest rate as a result of the following. High-Interest Rates A person’s credit score determines the interest rate that is levied on a personal loan. Personal loans with lower interest rates are more likely to be approved for borrowers with higher credit scores, while those with lower scores may be turned down for financing altogether. You should be wary of the interest rate on a personal loan if you’ve turned to it because you were denied a cheaper financial instrument, such as a credit card with a teaser rate. You may have been having trouble making ends meet and a personal loan might reduce your monthly payments. However, you should still factor in how long it will take to repay the loan and how much it will cost in interest. Fees for Early Payment When a loan is repaid before it matures, the borrower is subject to a prepayment penalty. Lenders may impose these fees in an attempt to recoup some of the money they forewent on interest. The total amount you owe on a personal loan might grow due to prepayment penalties and other costs. You should ask the lender if a loan includes a prepayment penalty. Disclosure is necessary, but it may be in the tiny print of your loan paperwork. Upfront Costs of Getting the Loan Adding to your overall loan expenses are origination fees, which are a percentage of the loan amount that the lender charges for providing the loan. Although most lenders impose this fee, some either don’t or charge significantly higher rates of interest. Up to 15% of the total loan amount is on origination costs. The amount you get might be less than the original loan amount due to origination fees. If you borrow INR 10,000 and the origination cost is 5%, for example, you may only receive INR 9,500 or end up owing INR 10,500. Make sure you have a firm grasp of the mechanics of how it will function. Increased Total Debt It’s wise to look for a low-interest rate when applying for a personal loan to pay off credit card debt, but it shouldn’t be your only priority. Debt consolidation loans aren’t always the best option. But they are useful if you use them in conjunction with other measures. You also need to address the underlying causes of excessive credit card debt. Negative Impact on Your Credit Score While researching the rates and terms, it is wise to also look at the average credit scores of applications. Pick a loan that has a high probability of acceptance. You might not want to apply and risk dropping a few points if you can’t prequalify. Individual negotiation skills A bank’s most valued clientele are those who have been banking with them for many years and have opened permanent accounts. You may negotiate better terms with the bank regarding interest rates, processing fees, etc. if you have a solid rapport with the management and other employees. Banks may agree to lower interest rates or unique offers just for you, based on your negotiating talents. Your loan EMI calculator may reflect the favourable terms you were able to negotiate. [B-02] Conclusion If utilized properly, personal loan interest rates may alleviate the stress of an unexpected financial emergency. Personal loans are now available at the touch of a finger. Thanks to technological advances and the expansion of “one-touch banking.” When applying for a personal loan, though, it’s important to consider all the aforementioned issues thoroughly. Do you still need convincing? It’s time to get in touch with the experts. All your financial worries would be solved with the aid of Piramal Finance.
08-11-2023
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Calculator

Beginner’s Guide To Use PPF Calculator In Current Year-Piramal Finance

A Public Provident Fund is an ideal investment whether you are a responsible parent, a young adult, or a new employee exploring ways to accumulate funds for a safe future. However, it is arduous to calculate the interest and returns on the investment. That is where the PPF calculator comes in as a saviour to make these terrifying calculations easy! But how to use a PPF calculator? This article will walk you through the step-by-step process for using the calculator and provide you with some real insights into how the PPF scheme works. So dive in! [B-01] What is a Public Provident Fund? Public Provident Fund, or PPF, is a lucrative retirement benefits scheme that aims to turn small savings into investments with reasonable interests. The government of India initiated the scheme in 1968 to promote a safe and secure post-retirement life. It is a prime choice for many residents owing to the tax benefits and attractive interest rates it guarantees. The scheme requires a minimum of Rs. 500 deposit, with the maximum being Rs. 1.50 lakhs to retain the account. As a result, PPF is a good option for building a sizable corpus as it comes with long-term benefits. What are the features of the PPF? The PPF account is accessible to any Indian citizen. Here is an overview of some of the features it accompanies: PPF is a stable investment as it is a government-backed scheme. It promises an interest rate of 7.1%, compounded annually. You can make the investments in a maximum of 12 instalments or a lump sum per your suitability. PPF offers a risk-free investment opportunity with high guaranteed returns. You can borrow loans from banks against the PPF account. An amount of Rs. 1.5 lakhs can benefit from the tax exemptions under Section 80C, Income Tax Act, 1961. How does the PPF work? The PPF account provides income tax deduction under Section 80C for the amount you invest. It implies that the interest you accumulate from your investment is subject to tax exemption. Besides interest, there is no tax levied on the maturity also. PPF accounts have a tenure of 15 years. In essence, you will have a lock-in period of 15 years to acquire funds for the future. However, there are two options you can opt for when the investment matures: Closure of Account If you wish to end the investment, you can visit the bank branch or post office where you opened your account. Write an application to withdraw the proceeds and close the account. Mention the bank details to simplify the transfer process and keep your original passbook handy. Additionally, attach your identity proof, address proof, and a cancelled check to the rest of the documentation. You can submit them to the bank or post office officials once you have all the required documents. Continue account for the next 5-years You need to give an intimation in writing on a prescribed form to your bank or post office within a year of maturity if you want to extend the period. You can retain the account operative without making any new contributions. However, you can continue depositing to avail of tax deductions on those deposits. Once you hit the block of five years, you can request another extension of five years, and so on. This way, your account will earn interest until you close it permanently. How is PPF calculated? A PPF calculator presents the future value of your investment based on the current interest rate and the annual contribution you make toward your account. The formula is as follows: M = P [ ( { (1 + i) ^ n} – 1) / i] Where, M = Maturity value P = Annual Payments i = Interest Rate n = Number of Years Let’s take an example to comprehend how it works. Annual ContributionsRs. 1 LakhNumber of Years15 Interest Rate7.1% Using the data given in the table, M = 1,00,000 [ ( { (1+7%) ^ 15} – 1) / 7%] M = Rs. 27,12,139 If there is a change in interest rate, you will have to make the same calculation for different periods. For example, say the rate is 7% for five years, but it elevates to 8% for the next five years. In this case, you can calculate the M with ten years as n and i of 7%. Then add the amount to the M with five years as n and 8% as I. How to use an online PPF calculator? Since the money you deposit in PPF has a lock-in for 15 years, it is preferable to know how it will grow. Manually doing it is undoubtedly one way to estimate the amount, but a minute error can turn your entire calculation wrong. PPF calculator is a digital tool that enables you to calculate returns on the deposits you make in your account. It further facilitates making adequate investment and tax-saving plans. Here is the short and easy process that you need to follow to calculate the expected return on your investment: Type in your annual investment or move the slider to get the amount. Enter the tenure or maturity period in the next column. You do not have to worry about finding the prevailing interest rate, as the calculator sets the current rate on default. Once you have furnished all the required details, the calculator will effortlessly compute the amount and show you the desired information. You can view the total amount you invested in the scheme, the interest you accumulated, and the maturity value you will receive. Things to keep in mind while using an online PPF calculator Some things you must keep in mind when using an online PPF calculator are: The government sets the interest rate quarterly The interest is compounded once yearly The compounded interest is determined annually at the end of each fiscal year The longer the investment duration, the higher interest you will receive on the value [B-02] Conclusion Earlier, it was undeniably challenging to stay updated with the fluctuating interest rates on PPF. But the introduction of PPF calculators came as nothing less than a boon. It is now significantly simpler for several account holders to keep track of the rates and determine their corpus at any time from any location. It also eliminates the errors that may come from manual calculations and saves time. All you need to do is type in the few required details regarding your investment, and you will be good to go! Piramal finance will assist you in making the right financial decision that will help you cultivate the maximum benefits. It is an Indian financial services company aiming to provide and simplify retail lending, including personal loans, business loans, housing loans, and other financial products and services to consumers.
08-11-2023
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Personal Loan

Why Borrowing Money From Other Individuals Is Not a Good Thing Compare To Personal Loan

If you have faced a financial crisis, then you must have faced this dilemma of whether to borrow money from your immediate acquaintances, such as your family members and friends, or opt for a personal loan. Although there is nothing inherently bad in borrowing money from people you know, it has some flip sides too. It might affect your relationship. Hence, it is always recommended to keep monetary affairs and relationships separate. Hence, the wisest thing to do is to apply for a personal loan from an authorised financial institution. To help you understand better why it is wiser to apply for a personal loan instead of borrowing from other individuals, here’s an article that will discuss the reasons in detail. Hence, let’s start right away! [B-01] 6 reasons to opt for a Personal Loan over other individuals Following are the 6 reasons to opt for a Personal Loan instead of borrowing money from other individuals: 1. More borrowing options In times of need, you can secure an instant personal loan from a bank, online lender, credit union, or an instant loan app. Depending on your requirements and eligibility, you can choose any option from the above-mentioned lending platforms. However, when borrowing money from individuals such as your friends or family, you might need to find out who would be willing to lend you money. 2. Personal Loans have clearly stated terms and conditions An unorganised borrowing, i.e., a loan from either family or friends, usually involves a verbal arrangement and isn’t equipped with clear terms and conditions. Although both the involved parties might have the best intentions, it is always possible that with time any one or both involved parties might forget some of the details of the loan agreement. This can lead to confusion and stress. On the other hand, a personal loan is a vividly documented financial transaction between the lender and the borrower. Since it is a written agreement, it leaves no room for confusion about the loan terms and conditions, interest rate, and tenure. Unlike unorganised borrowing, which usually doesn’t have a well-defined and pre-determined repayment schedule, a personal loan, on the other hand, allows you to be well-informed about your loan repayment schedule and the exact amount of EMI that you need to pay regularly. It is a legally binding contract that protects the financial interests of both the lender and the borrower and ensures transactional transparency. 3. Borrowing from acquaintances can put a strain on the relationship Borrowing money from other individuals, such as your friends and family, can be risky. This is because once you borrow money from one of your acquaintances, the monetary matters now involved can put a strain on your relationship. If you fail to return the money on the verbally agreed-upon date, it can damage the relationship. Also, the lender himself might end up in a financially tight spot and ask for the loan amount from you earlier than the agreed-upon date. If you are unable to return it as per the whims of the lender, your relationship with the lender might turn sour. Moreover, when you borrow money from your family or friends, the borrowings are generally interest-free. This means the lender doesn’t get to earn anything from the loan arrangement. While this might sound attractive initially, it might cause trouble later. The lender might later regret lending the money or demand an unreasonable amount as interest. 4. Personal Loans can help you build a credit history Another glaring disadvantage of borrowing money from an individual rather than from a financial institution is that you won’t be able to build your credit history. By taking a personal loan from an authorised money lending institution such as a bank or online lender helps you build a good credit history. A good credit history, in turn, will help you to qualify for better rates on your future loans and lines of credit. 5. A Personal Loan doesn’t come with any obligations The best thing about personal loans is that you can use the loan amount for a wide range of purposes, including making home improvements, consolidating debt/debts, or funding a major purchase. This flexibility qualifies personal loans as a versatile option for borrowers. Moreover, the lender of a personal loan won’t ask you or supervise where you are spending the loan amount. However, if you borrow from individuals such as a friend or family member, you might feel obligated to inform the lender where you will be spending the borrowed fund. This might also elicit some kind of disapproval from the lender, provided the lender finds your cause for borrowing unconvincing. Moreover, borrowing from an acquaintance keeps you indebted to them long after you have repaid the debt amount. You might be reminded now and then about the favour that you owe them, and also, you might be forced to help them whenever they are in need. To avoid such awkwardness and obligations, opting for a personal loan is always better. 6. You can borrow the exact required amount from one lender If you want to borrow a hefty amount, then applying for a personal loan makes more sense. This is because authorised money lending institutions will lend you the exact amount of cash you need. However, there are chances that if you ask for a hefty amount from an individual such as a family member or a friend, they might refuse to part with such a huge sum. Moreover, they might not even have enough cash to lend the amount to you. If that is the case, you might end up borrowing money from more than one individual, further complicating your financial matters. [B-02] Conclusion Now you might ask, “which is the better option?” However, there can be no definite answer to this question because it wholly depends on your situation. That being said, it is always considered wise to consider personal loans’ advantages. Moreover, now you can easily apply for an instant personal loan from Piramal Finance Limited. It is a registered finance company that offers quick, hassle-free and easy personal loans with zero foreclosure and prepayment charges. Their team of expert advisors would help us through the entire loan application process, thus ensuring fast approvals and quick disbursals in your account. They also guarantee minimum documentation and pocket-friendly monthly EMIs. Visit the official website of Piramal Finance now!
08-11-2023
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