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Gold Loan

Top 10 Reasons Why a Gold Loan Is Your Best Bet for Financial Needs

India is one of the world’s biggest buyers of gold. The valuable metal can be used to acquire a loan in a cash crunch. Getting a gold loan is one of the best and fastest ways to get cash when you need it most. Even though your credit score is low, if you have a lot of gold sitting in your locker, you may be able to get a gold loan. Gold loans are becoming more common each year, so it’s crucial to understand not only what they are but also how they work, how much interest they charge, and other specifics. [B-01] What is a gold loan? Gold loans, often known as “loans against gold,” are secured loans in exchange for gold decorations, like jewelry, owned by the borrower. Lenders will typically allow you to borrow a sum that is a certain percentage of the value of the gold. After the necessary monthly payments, you will be given your gold items back. Gold loans, in contrast to other secured loans like mortgages and auto loans, have no limitations on how the money can be used. Consequently, it is a wonderful solution to fulfill your unexpected money requirement, whether for a wedding, a family trip, or your child’s college. Furthermore, several private, and national banks and NBFCs provide gold loans with low interest rates. What makes a gold loan the best choice when you need money fast? Here are a few things that set the best gold loans against gold apart: Fast approval When talking about how easy it is to get the best gold loan, the first thing to point out is how quickly you can get approved. The main reason for this is that it is one of the few ways to get credit that requires the least amount of paperwork. After filling out the application online, borrowers can upload the documents they need to send. Fast disbursal Once the gold has been evaluated, the loan amount is given to the applicant within a few hours. On the other hand, it takes at least 24 hours to process and verify other financial products before the money can be sent out. Simple criteria for eligibility Compared to other types of loans, the requirements for getting a gold loan aren’t as strict. Here, people who want to borrow money can do so without having a high credit score or making more money each month than is required. But they have to make sure they are the right age and that their gold items are of the right quality. Taking out a gold loan instead of a payday loan is a good idea because you won’t have to provide proof of income. Unlike with some secured and unsecured alternatives, borrowers don’t have to show this paperwork to get the emergency money they need. Flexible repayments The best thing about gold loans is how flexible the payments are. You don’t have to pay monthly instalments, pay back the loan based on how much money you have during the term. You can choose to only pay interest each month and pay off the loan at the end of the term. You could also pay the whole amount at the end of the payment period. Extended repayment tenure Gold loans take longer to pay back. The repayment tenure can be as long as 3–4 years. This allows you to plan your payments after you’ve taken care of the emergency. Still, paying back the loan as soon as possible is the best way to save money on interest. Low rates of interest Gold loans are usually less risky for a financial institution to give out because they are secured. Because of this, lenders offer a lower interest rate on it than they would on some unsecured loans. Whether you need the money for an emergency or not, a low-interest rate is always good. It brings down the total amount you have to pay back, making handling your debt easier. Also, it doesn’t make a person’s finances harder. Low processing costs Most banks won’t charge you anything or only a small amount to process a gold loan. Getting a gold loan is the best way to meet your financial needs because it gives you the financial flexibility you need without hurting your personal finances. No limits on the end use When talking about whether or not a gold loan is a good idea in an emergency, the fact that it can be used for anything is its most significant selling point. This means that borrowers can use these funds for various financial needs. It could be for personal costs, medical emergencies, or work-related needs. The lender will not step in to help with this. Safekeeping of gold You put your unused asset to work when you get a gold loan. It is safe in the vaults of banks and other financial institutions. It is also insured when the asset is saved with the lending institution. This means that if it is lost or stolen, you will get the total market value of your gold back. Good interest rates The interest rates on gold loans are low. Gold is reliable collateral for anyone. In India, interest rates on gold loans are usually between 12 and 14% per year, which makes them an affordable way to borrow money. [B-02] Conclusion Applicants can get a lot out of gold loans. It lets you immediately get the credit you need and use the money you raise however you want. All of the good things about it are listed above. Piramal Finance offers gold loans with low-interest rates. If you want to take a gold loan with instant disbursal, visit their website!
08-11-2023
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Get Market Information and the Latest Updates on Stocks

Today’s stock market has grown quickly over the years and is one of the largest in terms of the volume of transactions. People want to invest in the stock market today. Here are some of the most important facts about the stock market. [B-01] How to get the most out of trading stocks online If you want to know what’s going on in the market and find intraday trading opportunities, you need to keep up with news and information about the stock market today. Online stock market data is updated every few seconds during trading hours, Monday through Friday, from 9:15 a.m. to 3:30 p.m. EST. With a share bazaar app, you can find things like today’s intraday stock market advice and other useful information. You can also find information about the stock market today on the BSE and NSE websites. How do you keep track of how well your stocks are doing? First, many investors think monitoring a portfolio means keeping track of gains and changes in stock prices. Even though the exchange rate is an important part of monitoring, there are many other things to consider. If an investor wants to keep their stocks for a long time, they should focus on the basics of the business, like how well it makes money, how well it runs, and how well it is managed. So before investing in the stock market today, you must clearly understand it. How do you keep an eye on your investment accounts? The key to a good stock market today is to keep an eye on how well a company does, not how much its stock price changes. The following advice may be useful for managing your stock portfolio. Read the official publications of the firm to find out what’s going on. The outcomes of the company and the industry might be impacted by a wide range of external circumstances. Businesses may be affected by political, social, and economic trends that happen on a large scale. Because of this, you must know about everything that could affect the business. Also, you should look over company communications regularly to see if anything has changed. Take a look at the business performance during the last three months. The financial results of all Indian businesses are made available to the public every three months. Usually, businesses make them accessible 45 days after the end of each fiscal quarter. Ensure you thoroughly review these numbers and know the company’s financial position; this is why today’s stock market is booming. Keep up with all the company news. Any information that could affect a company’s stock price must be shared with the stock market today. This could mean many different things, like the opening of a new building, a change in the company’s leadership, the founders buying or selling stock, and so on. The website of the stock market today has all of these updates accessible. Investors must know these company disclosures to decide whether to buy more stocks or sell the ones they already own. Be alert for changes to the way shares are allocated. Every three months, a corporation must also declare its share count. Most businesses wait until the end of each calendar quarter to make website changes. This helps them stay up-to-date with the stock market today. As a possible investor, you should look over this information carefully and compare it to how shares are held every three months. You’ll be able to see if the donations from supporters are going up or down. Find out how the business is doing with its money. A business may have a “credit score,” like people. Every year, independent groups like CRISIL, ICRA, CARE, and others look at businesses’ finances and give them ratings based on their stability. On the rating agencies’ websites based on the stock market today, you can find a summary of the company’s credit strengths and weaknesses and their opinions. Keep a close eye on the stock price. Finding a share portfolio tracker that lets you check the share price every day is not a good way to keep an eye on your stock portfolio, but you can do it if you don’t have time. Make sure you’re just watching so you don’t form opinions based more on how you feel than what the facts show. If you keep an eye on prices, you’ll know if they go up or down after an event but before you find out why. Look at the shared commitment made by the promoter. In quarterly stock market reports, the company’s promoters must say if they hold any shares as a promise. They must also provide information on how the share base is constructed. As a shareholder, you should pay close attention to the pledge amount because it is often an early warning sign of a company’s financial stability. If the promoter can’t repay the loan, the lenders will sell the shares on the open market. Everyone’s worth in the stock decreases as a result. Consequently, you should proceed with care when investing in a company whose founders have pledged stock as security. [B-02] Summing up A team of knowledgeable advisers from Piramal Finance is available to assist you at every stage of the application process. This boosts your chances of being accepted and receiving your funds soon. Piramal Finance is one of India’s top non-bank finance organizations. Piramal Finance‘s specialized staff of professionals is accessible 24 hours a day, seven days a week, to assist existing and new clients.
08-11-2023
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Wellness Services: Hair Transplant, Dental Care & Weight Loss Services with a Personal Loan

Instant personal loans come as a blessing in a fast-paced life where you are bombarded with work and travel back and forth to the office and home while trying to provide yourself and your family with the best resources. Your health and wellness are often put at stake in all this. Whether it’s gaining weight, dental care, mental health, or hair loss, because working people spend their days going to work and providing for their families, these health issues are common. This often results in Baldness or hair loss Dental problems and pain Weight gain You may be aware that you have any of these problems but are avoiding them or going through them. The reason? Because that is not currently part of your expenses, or you cannot afford to spend a large portion of your income on weight loss treatment or resolving dental pain or problems. But by avoiding it, you are only inviting bigger problems and bigger expenses onto your plate. That’s why there are instant personal loans for wellness services like these which you can easily apply for, get your treatment done, and pay it back in small parts every month, instead of having to pay it in a big amount, all at once. [B-01] Why is health and wellness treatment important for you? You would agree that your health is your biggest weapon in today’s world. When you ignore health problems like hair loss, which is often a symptom of too much stress and anxiety. Or obesity, which can lead to serious health issues such as heart disease or an increase in cholesterol levels. So get treatment as soon as possible to keep yourself safe from bigger health problems. And for that, a very smart choice is “instant personal loans”. These loans take care of all your treatment expenses at once and let you pay in parts as you like. What are personal loans? Personal loans, or instant personal loans are loans that do not need collateral for approval. You need to show a few documents, and you are approved if you pass their approval criteria. The process is short, simple, and quick. Following are some of the places that provide instant personal loans: NBFCs Banks Lending platforms / peer-to-peer lending platforms These platforms can provide you with instant personal loans in a few minutes. You can receive the money in your account in a couple of days. But instant personal loans are the best option to get your hair transplant, dental care, and weight loss treatment without arranging a huge amount of money. Through these instant loans, an individual can receive a loan amount ranging from Rs. 5,000 to Rs. 5 lakh. Process of applying for personal loans for wellness services Step 1: Choose a lender from whom you want to get the personal loan (this can be any app or platform). Step 2: Register yourself on the platform or app. Step 3: Select the amount and duration of the loan. Step 4: Upload the required documents digitally. Step 5: Check your instant loan status online Who is eligible for these loans? Everyone is eligible for personal loans in most scenarios, even without a credit history or guarantor. An Indian citizen and a registered company’s salaried employee. Anyone between 23 years to 58 years of age. Documents required for instant personal loans The documents you will need to apply for a personal loan online are: Identification proof: You must present an Aadhar card, Pan card, driver’s license, or passport. Address proof: You’ll need utility invoices, such as those for power, water, or phone service, or your passport as your address verification. Photographic evidence: a photo of you as photographic evidence. Your most recent pay receipts from your employer must be submitted. Financial statements: You must present the bank statements showing how your salary was credited. Benefits of instant personal loans for hair transplant, dental care & weight loss services Easy & flexible returns With instant loans, you can choose the amount and duration of loans, and start paying back as you want, as per your convenience of amount. Returns are easy and flexible with small monthly amounts. Affordable wellness treatment Instant personal loans are like a friend in need, to whom you don’t have to give collateral to lend money, whether for your wellness treatment or any other medical or family emergency. Instant personal loans are affordable because you can choose how you want to pay them back and the amount to pay back monthly, once the EMI starts. In-budget treatment When you are going for treatment, there is nothing better than having an amount available within a few minutes to get the best and most affordable treatment possible when you need it. Conclusion This blog contains all the information you will need before applying for an instant personal loan for wellness services like weight loss, dental care, hair transplants, and other medical and family emergencies. Don’t let your unavailability of funds at the time of treatments become a rock in your efforts to lead a smart and healthy life. Piramal Finance is an Indian financial services company that provides personal loans, business loans, housing loans, and other financial products for you with a very simple process. Visit our website today for a quick and easy instant personal loan application process. [B-02] FAQs What is the procedure for getting an instant loan?If you are approved, the lender will usually respond within minutes and put funds into your bank account. However, even if you are authorized, it may take a business day or two, or even longer, to get the funds. What are the criteria for an immediate loan? Instant loans are often not subject to a credit check. You must, however, give personal details, be at least 18 years old with proof of identity, provide evidence of income (e.g., a pay slip), and have a bank account.
08-11-2023
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What is Cryptocurrencies and How it Works: All You Need to Know About It

All of us have heard of cryptocurrency by this point, but the majority still don’t fully understand what it is. Whether you came across cryptocurrency on social media or in the news, you should learn about the innovation that people are urging you to buy. So it’s important to spend some time learning about cryptocurrencies. [B-01] What is Cryptocurrency? A cryptocurrency is a form of money that is entirely digital. It is used to make purchases and sales, but rather than taking the shape of a real note or coin, companies keep it in a virtual wallet and conduct their transactions online. What makes cryptocurrency special is something known as blockchain technology. In reality, it just means that it is centered on a very complicated online platform that is spread all over a lot of computers. This makes it very hard to fake or double-spend. It also means that it is not controlled by governments or central authorities. This means that the people who use these currencies are the only ones who can keep them up and decide how much they are worth. How Does it Work? Cryptocurrencies are not regulated by the government or any other central body. Cryptocurrency works beyond the banking system. It uses various brands or different kinds of coins, with Bitcoin being the biggest one. Mining “Mining” is the process by which completely digital cryptocurrency is made. This is a hard thing to do. In a nutshell, miners need to fix specific math puzzles on specially set-up computers to get bitcoins in return. One bitcoin would be mined in a perfect world in just ten minutes, but in the real world, it takes about thirty days. Selling, Buying and Storing Users can buy and sell cryptocurrencies through central trades, brokers, and people who own their currency. The most convenient way to buy cryptocurrencies is through an exchange or platform like Coinbase. Cryptocurrencies can be kept in digital wallets once they have been bought. There are “hot” and “cold” digital wallets. When a wallet is “hot,” it means it is synced with the web. That also makes it easy to make transactions but leaves it open to theft and fraud. Cold storage is safer, but it makes it more difficult to do business. Investment or Trading The transfer of cryptocurrencies like Bitcoin between digital wallets is simple and requires only a smartphone. Once you have them, you have the option to: Spend them on products or services sell them. Sell them for cash. The simplest way to make purchases with Bitcoin is through debit-card-style transactions. These debit cards also permit cash withdrawals, much like ATMs. Using accounts online or peer-to-peer exchanges are other options for turning cryptocurrency into cash. Different Types of Cryptocurrencies There are currently so many cryptocurrencies, and the number is expected to reach 10,000 in 2022. Some of the most important cryptocurrencies are: Bitcoin Bitcoin is the first cryptocurrency that is widely used around the world. Bitcoin is so common that its name used to mean “cryptocurrency” for a while. But people who want to invest should know that bitcoins are now very expensive. In 2021, it will cost $68,000 for one bitcoin. But the great news is that you don’t just have to purchase a whole coin; you can purchase smaller parts of it. Altcoin An altcoin is a name for any digital currency that is different from bitcoin. Ethereum, which is one of the cryptocurrencies with the fastest growth, is the most famous in this ecosystem. There are also several other altcoins on the market today, such as Shiba Inu, Terra and Luckyblock. Crypto Tokens Many people don’t understand the difference between crypto coins and tokens. From the outside, coins and tokens look the same. But the two are not the same in many ways. You can mine for coins, but you can’t mine for tokens. Tokens are not connected to blockchains, but coins are. In terms of how useful they are, they are different in the kinds of goods and services they let people buy. Advantages of Cryptocurrencies: There are many advantages to cryptocurrencies. These are the following: They are private and safe. The blockchain feature that makes cryptocurrencies work makes sure that users’ identities are kept secret. Cryptography, which we’ve talked about before, also provides high levels of security. They are decentralized, can’t be changed, and are open to everyone. The whole system is based on joint ownership, in which data is accessible to all members with permission and can’t be changed. They are a way to protect against inflation. When inflation is high, cryptocurrency is a great investment. Investors often say that cryptocurrency is like gold. One reason for this is that there are only so many of them, just like gold. This is due to a limit on how much of a certain type of cryptocurrency can be mined. [B-02] Conclusion Cryptocurrencies may or may not be the way of the future, but one thing is certain: It is not preferable to invest in them before doing some research. It’s not a recent trend for people to invest in cryptocurrencies. But the recent increase in the popularity and value of cryptocurrencies, along with lower returns on deposit accounts, has led more people to look for advice about cryptocurrencies. If you have chosen to invest in cryptocurrencies, start with the most popular ones like bitcoin because newer ones might not have enough cash flow. Scammers abound in the marketplace. So it’s important, especially when starting, to buy or trade cryptocurrency through authorized platforms. Starting small and diversifying your investments is advised because cryptocurrencies are also very volatile. It’s beneficial if, as a beginner, you initially follow the advice of experts and gradually develop your knowledge by researching the subject. Understanding the past and present cryptocurrency policies of your nation is also crucial for the success of this type of research. As always, never risk more money than you can bear to lose. For similar blogs like this, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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Home Loan

Top Myths About Loans Against Property Busted

There’s no denying that loans can be incredibly useful tools, especially when you need money fast and don’t have time to save up for it. However, if you’re considering applying for a loan against your property, you’ll likely encounter some common myths about the process before you even start looking into it. In this blog, we will explore some of the most common loan against property myths to help you identify whether they’re accurate in your specific situation. Let’s get started! [B-01] What is a Loan Against Property? It is essentially a secured loan with the property as security. Low rates and flexible repayment terms characterize mortgage loans. To qualify, you must pledge your property with a bank or NBFC, receive a large amount of funds, and pay the monthly EMIs. Unlike a home or an education loan, a person may use a loan against property for various purposes, including medical bills, weddings, higher education, and business expansion. Myth #1: Property Cannot Be Used Once it is Pledged A common myth about pledging property is that it can’t be used or sold once it’s been pledged. It isn’t the case, as you may continue using the property without worrying about defaulting on the loan. The only caveat is that you’ll need to keep up with the payments outlined in your loan agreement. Myth #2 Loan Will Be Equal to the Total Property Value The loan to value (LTV) is never 100%. Depending on the estimated cost of the property you pledge as collateral, the lender will determine what percentage of the loan should be given. Many banks and lending institutions offer a home mortgage loan up to 70% to 80% of the property’s market value. Along with this, the age of the property, the property’s location, the building’s infrastructure, etc., are all considered. They also influence the LTV. Myth #3 Loan Against Property Cannot Be Used for Personal Expenses One of the most common misconceptions about loans against property is that they cannot be used for personal expenses. It is untrue, as you may use it for anything you would use a loan for. As long as you pay it back, you will have no problem receiving it from your lender. Myth #4 Prepayment of Loan Against Property is Expensive One of the most apparent misconceptions about a loan against property is that prepaying will be costly. The fact is, prepaying does not have to cost you anything. Some lenders charge a penalty for early payment, but some do not. Some, for example, waive penalties on specific terms (for example, no penalty if within two years). All in all, prepaying has far more benefits than negatives. So it would seem wise to talk with your lender before making assumptions about what might happen if you pay your mortgage early! Myth #5 It Is Necessary to Be in the High-Income Category to Avail Of LAP If you would like to go in for a loan against property and belong to the middle class, then there is good news: the rules differ for salaried people and those who are self-employed. Various lenders have different thresholds for what constitutes an acceptable salary for either. Maintaining low liabilities and not defaulting on all your current EMIs will help you gain the lender’s confidence, even if your net income isn’t high. The income group you belong to should not be a hassle until you can convince the lender about your ability to pay the loan back. Myth#6 LAP Has High-Interest Rates Another major misconception is that interest rates are higher for a loan against property. When you qualify for a loan by pledging your property, your credit score, income, and ability to repay it all play a role. Your EMI payment history and credit card payment history will be the only proof that can be considered. If your credit score is 750 or higher, the lender can trust you and offer you a LAP at a lower interest rate. In contrast, if your credit score is low, you can’t qualify for LAP at a lower rate of interest. You are not even in a position to negotiate. Myth#7 LAP is Not a Safe Option One common misconception is that a loan secured by real estate is not a secure option. Many people think that LAP can worsen your financial situation. The reality, however, is that LAP is one of the safest ways to borrow money because you get to keep your collateral. To avoid complications, you should only focus on paying the instalments on time. [B-02] Summing up It’s no surprise that LAP is quite popular. However, knowing the myths and realities about this type of financing is essential. The most common myth about a loan against property is that you can’t get a mortgage if there is a home equity line of credit. It simply isn’t true. For a more detailed analysis of the topic, refer to Common Myths About Loan Against Property – Piramal Finance.
08-11-2023
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Things to Know About FPO: Who is Eligible for FPO?

Many investors all around the globe always wait for a big corporation to go public and issue an IPO. This way, they can hold the shares of a prospective business giant as early as possible. For example, when Tesla Inc. went public and issued an IPO in June 2010, its shares were priced at $17. Today, the price of each Tesla share is $178. But don’t be so hooked on the IPOs because they only come once for each company. Instead, you should focus on another offering— FPO. It can help you own the shares of any public company at a lower price with minimal risk. So, what exactly is an FPO, and why should you invest in it? Let’s find out! [B-01] What is a Follow-on Public Offer (FPO)? Follow-on Public Offer is made when a company that has already gone public decides to sell more of its stock to the general public. An FPO is typically offered by a company to raise additional capital to deal with debt, expand business operations, or for other reasons. To issue a follow-on public offering, the business must already be a public company that has gone through an IPO. Also, the shares offered during an FPO have to be available to the general public. It should not be limited to the current shareholders. Why Do Companies Make a Follow-on Public Offering? A public company offers a follow-on public offering for the following reasons: If a company has a large amount of debt, it might use a follow-on public offering to sell some of its shares to settle some or all of the debts. Too much debt can severely limit a company’s business operations. Sometimes, a company can fail to raise enough capital via an IPO to expand its business. To raise more capital, the company executives might decide to offer additional shares via an FPO. Maintaining a proper debt-to-value ratio is important for a corporation’s capital structure. A business may choose to achieve this by raising equity by issuing new shares to the public. A follow-on public offering allows a corporation to raise capital without incurring further debt. It can help the company have enough funds to start: 1) new projects, 2) go through a series of acquisitions, or 3) simply grow its business operation. Types of FPOs FPOs can be divided into two types depending on how the new shareholders gain ownership of their shares. 1. Diluted FPO The diluted FPO is a kind of follow-on public offering where a company issues new shares to the general public to raise funds. The total number of outstanding shares increases during this kind of public offering, slowly reducing the earnings per share. Capital raised through diluted FPO normally changes a business’s capital structure or decreases its corporate debt. 2. Non-diluted FPO A follow-on public offering will be called a non-diluted FPO if one or more existing shareholders of a company sell their shares to the general public. All the capital gained from the sale goes to the shareholders, and the company doesn’t get any share of it. So, the shareholders suffer almost no monetary loss. In most cases, these shareholders are the founders, board of directors, pre-IPO investors, or promoters of the company. Since the corporation doesn’t issue any new shares for this kind of follow-on public offer, the actual earnings per share value does not change. Non-diluted FPOs are also known as “second-market offerings.” What’s more, this type of FPO doesn’t benefit the company in any way; it just changes the ownership pattern of the shares. How to Apply for an FPO? The process to apply for the FPOs is quite similar to the IPO application process. You need to apply through the Retail Individual Investors allocation. To buy the shares offered in an FPO, you must be over 18 years old, have a PAN card, and possess a Demat account that helps investors trade stocks. You can now buy the shares of the companies that have follow-on public offerings on the stock exchange through a broker, or a bank’s ASBA (Application Supported by Blocked Account) services. Reasons to Invest in FPOs Here are a few reasons why you should invest in FPO shares: A company issuing follow-on public offering shares has already gone through an IPO. So, you will already have a better idea of the company’s business practices, management, etc. As an investor, you can benefit from also having data on the company’s 1) stock performance, 2) earning reports, and 3) a few more analytical data. If you engage in arbitrage trading, you can buy the FPO shares at a low price and sell them at a higher price later to earn profits. The price of FPO shares is usually on the lower side than the same company share that is being traded in the stock market. So, you can buy them now and sell them in the secondary market to earn an instant profit without taking any risk. The risk level of the FPO shares is significantly lower than the shares issued during an IPO. You can simply assess the risk factors of the issued share to determine if it is worthwhile to invest in the company. [B-02] Final Words As you can see, investing in an FPO is a lot less risky than investing in an IPO since you are already familiar with the company. Because the company has already gone through its IPO, you can easily check the company’s general financial report to see how it’s performing financially. You can also see how a corporation’s shares are performing in the stock market. This allows you to thoroughly investigate the company to get the most out of your FPO investments while reducing the risk factor. Do you want to learn more about corporate finances? Visit Piramal Finance to learn more about corporate financing and different business finance options.
08-11-2023
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Home Loan

Everything You Need to Know About Fees and Charges Involved With a Mortgage Loan

Financial emergencies can arise at any moment. You can always apply for a mortgage loan on your house or property. A mortgage loan will give you a quick influx of cash to deal with any problems. However, these loans have hidden charges that most people do not know. This article will highlight the most popular fees charged with mortgage loans. [B-01] What are the most common charges on a mortgage loan? 1. Processing fees Lenders have many processes to complete between receiving your loan application and giving their final approval. The lender’s staff will carefully examine your application and supporting documents. They will do so to ensure its authenticity. The lender will charge you a processing fee in exchange for this service. Some lenders impose a flat rate, while others may charge you a percentage of the principal amount. For example, some lenders charge processing fees ranging from 1% to 10% of the loan’s principal. Other lenders can charge a processing fee of up to Rs. 3,000. To entice borrowers, some lenders will even forego processing fees. Even if you pay the processing fee, it does not mean your loan application will be approved. The processing fee is non-refundable. Hence, you will have to pay the charge regardless of whether the loan gets approved. 2. Stamp duty and registration fees You need to submit the original property documents, such as the registration document, to the lender. This document must be registered under state legislation. It is subject to stamp duty and registration fees. Stamp duty and registration fees range from 0.10 to 0.20% of the loan amount, depending on the buyer’s location. 3. Goods and service tax (GST) The bank provides you with various services in exchange for your mortgage loan. Hence, the transaction is subject to goods and service tax (GST). These can be processing fees, administrative fees, legal and technical assessment fees, etc. These are subject to GST, but the loan amount is exempt. The GST is 18%. 4. Technical/legal assessment fee for the property The bank hires a third-party agency for legal and technical inspections. They do this as part of their mortgage loan application process. The lender uses the legal review to see if there are any legal issues with the property or the title of the land. Lenders determine whether to lend money to a borrower by doing a technical analysis of the house. They do this to see if it is worth the asking price. The banks must pay for the services of external consultants for this process. Hence, the expense falls on the borrower. For this service, most banks will charge a set fee. The fee may range anywhere from Rs. 5,000 to Rs. 10,000. High-value properties often incur more charges since they demand extensive technical and legal reviews. As the situation may be, fees for external opinions from attorneys or technical valuers are paid on an actual cost basis. If you need legal or valuation advice, the bank advises you to pay the lawyer or expert directly. 5. Documentation charges Lenders may charge a documentation fee of between Rs. 500 and Rs. 2,000 to cover the costs of getting the necessary paperwork signed and the electronic clearing service (ECS) set up. An additional fee is required for the preparation of paperwork. After the deed is recorded at the sub-office, the registrar, you submit the original document to the bank. The branch then sends this document to a secure location, where it will remain for the loan tenure. This is a costly process that banks typically outsource to other organizations. Thus, the borrower will be responsible for this cost. 6. Fees for credit reports Your credit score will determine whether or not the lender grants you a mortgage loan. Lenders will request a statement of your credit from an external agency. This is subject to fees. Therefore, you will also be charged a flat rate for the credit reports. Credit report fees vary between Rs. 500 and Rs. 1000. 7. The conversion cost of a loan The Reserve Bank of India (RBI) routinely adjusts policy rates to ensure end-users may rest easy. But, banks have been slow to pass on the advantages of these reductions. While banks have been using the repo rate benchmark established by the RBI to price loans as of October 2019, a borrower whose loan is associated with the prior MCLR regime will continue to service his debt based on this benchmark alone. Worse, many senior citizens still make mortgage loan payments under the old base rate system. If you go to your bank to have your current loan matched to the new lending standard, the bank will do it, but it will charge a fee. The fee is called the conversion fee. The conversion fee can be between 0.25 and 1.5% of the principal outstanding plus tax. 8. Penalties for late monthly instalments You must pay your EMI on time. You will be charged a late fee if you miss the due date. Some financial institutions impose a flat fee for late payments. In contrast, others charge a percentage of the EMI. A late payment fee is usually around 1–2% of the EMI amount. 9. Loan prepayment penalties RBI has decided that people who take out a mortgage loan with a variable interest rate won’t have to pay a penalty if they pay it off early. However, this is not the case for homeowners who have locked in a fixed interest rate on their loans. The lender will impose a prepayment penalty on you if you decide to pay off your loan early. In some cases, this may be a fixed percentage of the total loan balance. The prepayment penalty is around 0.5–3% of the total outstanding amount. [B-02] Conclusion A mortgage loan can give you access to funds. This article has highlighted all the fees associated with a mortgage loan. There are numerous advantages to applying for a mortgage loan, such as shorter processing and documentation times, many repayment terms, the option to transfer the loan’s balance to another party, and the ability to make additional principal payments or partial prepayments. Looking for instant funds? Apply for a quick personal loan with Piramal Finance now.
08-11-2023
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Personal Loan

Top Factors that Affect Your Personal Loan Amount

Introduction: A personal loan is an amount of money borrowed from a bank or financial institution to meet emergencies or unexpected needs. An instant personal loan is a great option to arrange funds for weddings, holidays, medical emergencies, higher education, etc. It is to be noted that a personal loan is an unsecured loan, which means no collateral is needed to acquire funds. The amount of personal loan you need is influenced by a lot of external factors, like your income and employment status, credit rating, history of defaults, any existing debts, and your relationship with the lender. [B-01] Top Factors That Affect Your Personal Loan Amount: Income: Your income is the primary component that determines your loan amount. It is a widely acknowledged fact that those with a large disposable income have a higher ability to pay back loans than those with less income. It is common practice in the lending market that people who have regular disposable incomes tend to get lower rates of interest for their loans. This may have a different effect on people with lower incomes. Employment Status: The lender may take into consideration the borrower’s employment status, as this may influence the probability of repayment. If the borrower has a secure job with a stable income, he may be able to get a higher loan amount sanctioned. Credit Score: Your credit score is a big factor in whether or not a lender will give you a personal loan. It also affects how much you can borrow and how much you’ll pay in interest on an instant personal loan. You could be deemed a risky borrower, and your loan amount may be cut if your credit score is lower than 650. Keep your credit rating in good standing and make your payments promptly for any debts that you have. Limit the number of credit applications you submit, since this could cause a drastic decrease in your credit rating. Instead, focus on improving your credit line on existing accounts, as that will prove you’re able to pay back a loan. History of Defaults: If the borrower has a previous history of defaults, the lender may be skeptical about offering a higher loan amount. So if you are hoping to borrow a bigger loan amount, you must maintain a sound credit history. Relationship with the Lender: Lenders tend to be more accommodating regarding the amount of loan and interest they charge a reputable customer. Because of their long-standing and reliable relationship with each of their customers, they have a high degree of interdependence. The trust that they build doesn’t happen in a single day and requires an extended period of time and responsible behavior by the customers of the bank to maintain their loyalty. When lenders from institutions or individuals recognize your loyalty to them, they’re much more likely to give you an offer that is more feasible than the one new customers receive. Loan Interest Rate: The term “interest” refers to the amount that is incurred when borrowing money, which is shown in percentages of the amount of the loan. If, for instance, you take out a loan at 10 percent of the loan’s worth, the loan will be due to the lender or the bank every year, in addition to the principal amount. Naturally, a high interest rate means that the loan you are taking out will have a much higher APR than if you were eligible for a low-interest loan. The interest rates can vary greatly depending on your circumstances as well as other aspects, which is why you must consider your options carefully. Loan Amount: The interest rate is calculated as a percentage of the loan’s amount. The more you borrow, the more you pay in interest. Because you must pay back both interest and principal, a higher amount can result in greater monthly installments. Therefore, it is recommended that you only borrow the amount you require and try to avoid borrowing more than what is needed. Repayment Period: This is the time it will take to repay your loan and can be affected by your monthly payment and the total costs. You might be able to spread your repayment plan over a longer period of time to reduce your monthly payments. The loan might appear to be more affordable; however, if you decide to go with this approach, you’ll be paying more. How to Improve Your Allowable Personal Loan Amount To increase the credit limit for personal loans, we have a few suggestions: Get Your Credit Score Up: If your credit score is not high, you can work on improving it by decreasing the amount of debt you have, paying your bills promptly, and disputing any errors that appear on your credit file. Improve your income: If you can, take a job that pays more or work extra hours. The more you earn, the greater your chance to receive an appropriate loan to meet your requirements. Reduce Your Debt: The lower the amount of debt you have to pay off, the more you’ll be able to take out. Think about loan consolidation using personal loans to ease the burden of debt repayment with less interest. This all helps increase your instant personal loan limit to allow you to get the funds you need to accomplish whatever you want, such as the consolidation of your debt, making a major purchase, or for any other reason. [B-02] The Bottom Line Now that you know all the things that can change the amount of your personal loan, you know how to change the amount of your instant personal loan. Working on your credit score, making more money, and paying down your debt may be important steps to take if you want to get a bigger personal loan.
08-11-2023
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Personal Loan

Top 5 Mistakes to Avoid When Considering a Debt Consolidation Loan

A high amount of debt can be overwhelming, and you often wish to pay it off quickly. One way to do that is by consolidating all the debt and taking a personal loan to pay off all the obligations. You can combine all your high-interest loans and take a personal loan on low interest to repay them. Instead of dealing with numerous monthly bills, a debt consolidation loan can be your single repayment plan. While this sounds like a smart plan, it can often go wrong. If you are not careful, a lot of mistakes can turn out to be costly. This is why we have compiled a list of mistakes you can avoid when considering a debt consolidation loan. [B-01] Unable to Find the Cause of Debt Taking a debt consolidation loan may look like the right option. But if you cannot identify its root cause, the problem will persist. The problems could be a bad budget habit, overspending, overcharging credit cards, etc. These are the common ways to approach the problem: Go through your monthly credit card bills and statements and figure out your spending patterns. You can identify areas where you are spending excessively and accumulating debt. Once you have tracked your spending, create a budget to reduce your debt. Follow the budget strictly to avoid further debts. Choosing Longer Tenures Longer tenures do reduce monthly EMIs, but the repayment takes a lot of time. If you choose a longer tenure for debt consolidation, you will not be debt-free any time soon. This also means you would be paying personal loan interest for a long period of time. For example, if you were about to pay off your debts in two years. But the debt consolidation loan you have taken has a tenure of five years. Then, you will end up paying more in total interest costs. Thus, take a debt consolidation loan with a shorter term for your debts and focus on monthly payments alone. This will help reduce personal loan interest expenses and the overall debt burden. Spending Impulsively and Getting Into More Debt Consolidating your debts saves you money, and if you are not careful this time around, you might end up in debt again. This is the time when you need to stop taking out more credit and resist all your spending impulses. Avoid or limit using your credit card until the debt is cleared. You can also lower the credit limit. It is not recommended to close the credit card as it affects the credit score. Not Having a Repayment Plan Make a proper repayment plan before taking a personal loan to pay off your debts. If you don’t have a plan, you might end up in debt again. You can consider these points while coming up with a plan of your own. Determine what percentage of your income you can allocate towards debt repayment. Make a budget and follow it religiously. Whenever you get a bonus or extra money, you can use it to repay your debts. Cut down on needless spending. If you have the time and resources, find ways to increase your income. Not Setting Up an Emergency Fund What most people do while paying off their debts is focus on a single goal. They forget the importance of savings. Getting rid of debt is a good thing, but you can’t just ignore the savings. An emergency can occur at any time. And if at that time you don’t have any money saved, you might end up taking on more debt. Hence, you always need to be prepared, and the best way to do it is with an emergency fund. Put a chunk of your money at regular intervals towards an emergency fund. You can start small but consistently. Save at least 4 to 6 months’ worth of living expenses. Not Seeking Professional Help There are multiple resources available online that can help you make a solid plan to pay off all your debts. But at times, you might remain unaware of the minor defects it contains. So, it is best to seek professional help. They can tell you about new products or practices that can suit your circumstances better. There are many institutions and agencies set up to help you with debt consolidation. [B-02] Conclusion Consolidating all your debts into one and finishing it off with a debt repayment loan is a concrete plan. However, you need to be responsible before you implement it. Look around for options and choose the option with a low personal loan interest rate. Make sure the tenures are not too long, as this increases the interest costs. Control your spending so that you keep your debts at bay. And whenever in need, always seek professional help. They can provide you with the best solutions based on your situation. You can reach out to us at Piramal Finance, where our experts will solve your financial queries.
08-11-2023
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