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Personal Loan

What Factors Go Into Getting Approved on a Personal Loan?

Personal loans can be a quick and easy way to get the cash you need to repair your house, pay for medical bills, start a business, or even go on holiday. You can easily and quickly apply for a personal loan in a matter of minutes. But, lenders would decide whether to approve a personal loan request based on a list of their specific needs. The lender’s evaluation of the person’s capacity to repay the loan is crucial because personal loans are unsecured. This is to prevent people from missing their payments. Here are some factors that lenders consider before approving a personal loan. [B-01] Features of a Personal Loan Flexibility of Use Banks and NBFCs provide open-ended and closed-ended loans. It means closed funds are used only for the purpose it is taken. Open-ended loans can be used as per the user’s needs. Close-ended loans are car loans, home loans, study loans, etc. A personal loan can be used for medical expenses, college tuition fees, marriage expenses, repay multiple loans, etc. It’s not like a car or home loan. This financial resource can be used for any necessity without limitations. It’s an easy way out of a money crunch. Easy Payout Getting a personal loan is usually easy. One should qualify for all the criteria when applying for an urgent loan. The usual loan payout is between 24 hours and 72 hours at most. This time frame can differ between lenders. Hassle-free Payments Personal loans give an easy way to repay the amount. EMIs, post-dated cheques, bank online transfers etc, are some of the few methods of paying the loan back. When applying for a personal loan, it is vital to know the payback format. The payback is usually done in monthly payments, also known as EMIs. These are decided before getting the loan. One thing to pay attention to here is EMIs should be pocket friendly. Otherwise, it will be a needless burden on the finances. If the user chooses a longer payback tenure, the EMIs will be lower and vice versa. Low-Interest Rate Before applying for a loan, the primary concern is the interest rate. Bankers are pushing to bring down the personal loan rate to attract users. The interest rates of personal loans are low in comparison to other loans. It also depends on whether the loan is secured or unsecured. Income Tax Perks The TDS for a personal loan can be claimed while using the amount. Users can use this amount for building a home or for higher studies. The tax benefits can be up to Rs. 2 lakhs and call for proper paperwork that shows where and how the money is used. Factors That Affect Personal Loan Approval Credit Score Merit A person’s credit score is crucial in approving a personal loan. It helps lenders track the payment habits of the person. The credit score depends on how the person has previously managed their credit. The thumb rule is that the higher the credit score, the better the chances of getting the loan approved. Repayment Schedules Lenders prefer larger repayment cycles. A larger payback period means that the lender can get back the loan within a long period. If you choose a shorter loan term, your chances of getting a low-interest personal loan are increased. Your repayment period shouldn’t be too long and the EMI payment should fit easily into your monthly spending plan. Personal Loan Documentation All legal papers should be in order at the time of application. You will be asked for your PAN card, photo proof, address proof, and financial papers. The loan officer will check all the papers to ensure that they are authentic. If there is any mistake or you’re found to have a criminal record, then it is likely that the loan will be rejected. The required documents may vary depending on whether you are a salaried person or self-employed. Employment Background A person with more work tenure will have an edge over a new joinee. While getting the loan, a new startup may face some issues. But, the period of work-life may be different with many factors. There is a general mindset that business owners need some years of work tenure to qualify. This criterion is easy for salaried employees. The tenure can be short for salaried employees as compared to business owners or self-employed persons. Age of the Applicant Age shows the financial grounds and cash flow of the individual. If the applicant is in their early twenties, they will not earn as much. The same is the case with people above 60 years. Banks offer personal loans to individuals from the age of 25 to 55 years. Few Points to Note before Applying for Personal Loans Conduct proper research before applying Think about the bank giving loans with simple terms and low-interest rates. Even though most banks have similar rules, some may be more flexible and have less strict penalties. Before choosing a loan, always do proper research. The chosen lender must offer low-cost EMIs One should choose EMIs that are easy to pay each month without the risk of penalties. Estimate the ability to pay with an EMI calculator. An EMI calculator can be used to find a result based on the loan amount, interest rate, processing fee, pre-payment options, and loan tenure. Always keep other options open Personal loans are not the only way to get out of a problem. If the amount is not too big, one can ask family and friends for a loan. This eliminates the need to pay interest rates; even if someone pays them off early, it won’t cost them anything. [B-02] Conclusion Getting a personal loan depends on many important factors. To improve your chances of getting a personal loan with a lower interest rate, keep all of the above in mind. Aside from these, banks also look at how long a person has been with their institution. If you have a good relationship with your bank and a good amount of money in your account, your chances of getting a loan go up. Once you get your loan, make sure to pay it back on time. This is so that the next time you need a loan, your bank will be happy to give it to you. For similar blogs, you can visit Piramal Finance and explore their products and services.
08-11-2023
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What Is Personal Loan? – Its Types, Features and Importance You Need to Know

Personal loans have grown in popularity in recent years. That’s because a significant number of people are using them to finance their needs. But, how do personal loans work, and what should you keep in mind before applying? You’ll find the solutions to all problems related to a personal loan here. [B-01] What is a Personal Loan? A personal loan is an amount borrowed from a bank, NBFC, or an online lender. People use it to cover large, one-time expenses like a wedding, a big trip, or major house repairs. Borrowers are not required to put up any security or collateral to get personal loans. Hence, they have higher interest rates than secured auto or home loans. How Do Personal Loans Work? Personal loans function like any other loan. When applying for the funds, you must submit the required documentation and check your credit. Then, the lender will provide an offer detailing the amount you borrow with the rate of interest. If you decide to take up the offer, the funds will get deposited into your bank account. You will not have any restrictions on how to spend them. The repayments will be made in the form of EMIs. The loan amount, interest rate, and payback duration determine the size of EMIs. To get a loan from a bank or lender, you must do a large amount of paperwork at different locations. Generally, personal loans used to involve a lot of paperwork. But now, thanks to internet lenders like Piramal Finance, that is no longer the case. What Are the Types of Personal Loans? Wedding Loans In India, weddings are major social events that cost money. Everyone wants their wedding day to be one they’ll never forget. Lenders are eager to lend money for a wedding so the couple can make it special. The soon-to-be-wed couple and either or both of their families may apply for a loan. Travel Loans Travel loans help people take trips and pay for the costs when they return home. Holiday loans often include travel insurance to provide an extra layer of security. Home Renovation Loans New property purchases are the only ones eligible for home loans. But what happens when you realize that your ageing home needs maintenance? The hefty expense of home improvements discourages many owners from making improvements. Home improvement loans can help you cover repair costs. Pension Loans Pension loans are only for retired people. Hence, the typical eligibility requirements are not applicable to this loan. In this kind of personal loan, lenders provide variable amounts. They give an amount that is many times the amount of the pension. This pension is what the borrower receives every month. To be eligible for a pension loan, you need documents showing that you get a pension. Pensioners can borrow money for any kind of expenditure. For example, medical bills and day-to-day living costs. Education Loan This is one of the most common kinds of personal loans. In most cases, parents are the ones who apply for student loans. But, their children are the ones who end up being responsible for making the payments. You can also use this loan to pay your own or your child’s tuition expenses. Features and Benefits of a Personal Loan The features and advantages of a personal loan include the following: No Security or Collateral Needed When applying for a personal loan, you won’t need to put up valuables like your home or vehicle as collateral. Loans are granted based on your creditworthiness. For example, your credit score, income, repayment history, employer’s reputation, etc. Flexible You can use personal loans for practically anything. For example, medical bills, a vacation, home improvement, or other debts. Adjustable Tenure The terms of a personal loan may be as long as 60 months, with the average being 12 months. Minimal Documentation With a personal loan, you do not need any collateral and can apply online or in person. To process loan applications, lenders need ID, income and residence proof. Speedy Disbursement When a loan gets approved, banks disburse the funds instantly. If you have a loan offer that has already been pre-approved, the turnaround time might be as little as a few minutes. Flexible Borrowing Limits A loan amount depends on a variety of factors. For example, the borrower’s credit history, income, age, occupation, and employer’s reputation. Personal loans are available from a range of Rs. 10,000 to Rs. 40 lakhs from a variety of lenders. What Are Personal Loans Important For? Debt Consolidation You can use low-interest personal loans to repay high-interest credit card debt. With less money going towards interest, you can pay off your debt faster. Home Repairs Using your loan to fund home repairs is acceptable as you are reinvesting into the property. Along with that, if you don’t need a large amount of cash, you might be able to qualify for a personal advance. Big Purchases If you need to make a large or costly buy but don’t have the cash on hand, a personal loan may be able to assist. Personal Investments Personal loans can help you open a business or study abroad, but every lender has different needs. Most personal loan providers restrict their use to paying for school expenses. Emergencies In an emergency, a personal loan may be your only option. You may need a personal loan if you need money quickly to cover expensive medical expenses. [B-02] Conclusion A personal loan can be helpful in many situations. For instance, many individuals would need a loan to make a large purchase. Take a personal loan with caution and ensure you know what you’re getting into. Also, timely repay the loan according to the terms set out in the agreement with the lender. Talk to a reliable bank about your possibilities. Are you in instant need of funds? Apply for a personal loan with Piramal Finance and get your loan disbursed quickly!
08-11-2023
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Personal Loan

Complete Guide and Documents Required to Get a Personal Loan for a Holiday

No one can afford to skip a vacation or trip because life has grown so busy. As a result, you may have to rely on loans to pay for your vacations. That’s because you can repay the loan quickly in EMIs. However, you may have to show a lot of documents to the bank for it. A personal loan for a holiday requires multiple documents. It includes documents like income proof, identity proof, address proof, photographs, etc. To easily find the list of the required documents, visit the lender’s official website. Also, you can ask a company representative for the same. Well, for now, you can trust this post to learn about it. This article will guide you through the documents you must have for a personal loan for a holiday. [B-01] What Is a Personal Loan? A personal loan provides you with a lump sum payment of cash. You can obtain it from banks or non-banking financial institutions (NBFCs). Then, throughout the loan’s duration, you can repay that loan plus interest through monthly payments. Personal loans are always given based on important factors like repayment capacity, credit history, employment history, income, etc. With this loan, you can borrow money in any circumstance for your purpose. It includes making investments in a business, paying for treatment, funding your holiday, etc. But like with any other loan, defaulting on a personal loan has consequences. It can produce adverse results when you apply for loans or credit cards. That’s because it will appear on your credit report. Eligibility Criteria for a Personal Loan You can easily get personal loans if you qualify for the following eligibility criteria. Age: 21-67 years Credit Score: 750 or above Nationality: Indian Features of Personal Loan Learning about the features of the personal loan can make it easier for you to decide to avail of it. So, read the features to get more information about personal loans for holidays. You can get loans from Rs. 1 lakh to Rs. 10 lakhs to manage your vacation expenses. The tenure to repay the loan can be between 12 months and 84 months. You’ll receive the money within 24 hours directly in your bank account. The approval on a personal loan is given within just 5 minutes after completing the online application. These loans are readily available and don’t need a lot of documentation. Disadvantages of Personal Loan Your credit score will suffer if you delay loan repayment. The interest rate on a personal loan is greater than the rates on other loans. It may increase your EMI load. The majority of banks impose steep prepayment and foreclosure penalties. Documents Required for a Personal Loan for Holiday When it comes to money matters, many of you make mistakes if you don’t have the proper guidance. Before getting a loan from a lender, you should know all the information regarding the documents. It will save you time. So, here is a complete guide to avoiding any confusion. You can even use it to know what documents are required to receive a personal loan for holidays. Current photo. Address proof may include driver’s licenses, passports, Aadhaar cards, voter cards, landline bills, utility bills, signed leave and lease agreements, and electricity bills. Voter card, Aadhaar, or driver’s license. Income proof includes bank statements from the past three months and the most recent one-month payslips. IT returns to show tax paid. But if you are a self-employed professional, here are the documents you will need: Photo identity proof. Proof of residence ownership. Income proof. Proof of business existence. Address proof. Existing loan documents (if any). The proof of business existence includes: Shop establishment proof. GST registration copy. The license of your company registration. The income proof includes: Income tax returns. Tax audit report. Audited balance sheet. Computation of income. When Should You Avail of a Personal Loan for a Holiday? Before considering a personal loan for a holiday, understand that borrowing money for business differs from taking it for a vacation. After the pandemic, it’s been hard for most of you to fulfil your emotional needs. However, you can take a loan if you prioritise a trip abroad. But look for all the sources from where you can get it instead of borrowing from a bank or NFBC. You can also try to make the extra money on your own. Here are some alternatives to think about. Look for interest-free financing options in this section. Utilise credit card points Take a loan from a friend or family at a low-interest rate Plan a holiday that requires less spending Request a 0% APR credit card How to Avail a Personal Loan for a Holiday? You risk a lot while borrowing cash for a holiday. So, be sure you follow these steps to avail of it: Know your needs. It’s always better to understand how much you’ll need for your expenses. Calculate the total money, including tickets, hotel booking, etc. Do research. You can compare the interest rates by checking loan providers’ websites. It’s best to use a personal loan comparison tool. Submit the details. While filling out the form, enter the correct information. You should properly fill in details like income, name, address, DOB, tax ID number, and others. Then submit the entire set of documents for scrutiny. Check the amount funded. The approval may take a day or two. After it’s confirmed from the loan provider’s end, check the money in your bank account. [B-02] Conclusion Hopefully, you must have gone through all the details of a personal loan for a holiday in this article. In a nutshell, an interest-free personal loan can let you take your ideal vacation sooner. You’ll not face any limitations while spending money on it. So, it’s time to make your dream of going on a holiday a reality. With one of Primal Finance’s personal loans, you won’t have to juggle multiple debit cards to arrange your tour. That’s because it is the best personal loan/financing option for buyers.
08-11-2023
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Personal Loan

All You Need to Know about Eligibility, Documents and Interest Rate of Personal Loan for Travel

A personal loan is a perfect solution for anyone who wants to fund a grand vacation. However, this also means that many travellers now need cash for a much shorter period than before. Fortunately, several lending institutions offer loans specifically for those who plan to use them for travel purposes. Many travellers may not know this, but their bank can help them with their money needs while travelling. Keep reading to learn more about the specific requirements you must meet to qualify for a personal loan for travel purposes. [B-01] Who Can Qualify for a Personal Loan for Travel? There are a few basic requirements that you must meet to qualify for a personal loan for travel. First, you must have a steady source of income that you can use to pay back the loan. Most lenders will not approve loans to borrowers currently in debt. In addition, you need to have enough credit history with your current lender to receive a favourable rate for your new loan. Finally, you must have a good reason for needing a loan. It may sound a little obvious, but many travellers don’t realise they can use this financing to pay for almost anything. For example, a cash-strapped traveller may use a personal loan to pay for an upcoming vacation or a business trip. In addition, you can also use it to cover unexpected travel expenses like baggage fees or flight delays. How to Find a Personal Loan for Travel? Finding a personal loan for travel isn’t difficult, but it does require a little legwork. Before searching for a loan, think about where you’re headed and how you will fund your trip. Once you have a general idea of where you want to go, conduct a basic search for loans for travel. Here, you can look for specific criteria like interest rates, fees, and loan amounts that you’re looking for. After you’ve found a few lenders that meet your criteria, call them up and ask to speak with a loan officer to understand the terms of the loan better. Personal loans for travellers are typically short-term loans that can be used to cover travel costs, such as lodging and travel expenses. To qualify for a personal loan for travellers, you must meet the following requirements: You must have a valid driver’s licence or state-issued ID card. You must be at least 18 years old. You must have a good credit history. You must have a good job or be self-employed. You must have enough funds available in your bank account to cover the loan amount. Things to Consider When Selecting a Personal Loan for Travel Personal loan for travel is one of the most popular financial tools available to consumers today. You’ll need to consider a few things before getting a personal loan. First, you’ll need to know the amount you’re willing to borrow. Second, you’ll need to know the type of loan you’re looking for. Short-term loans are typically suited for travelling. Long-term loans are typically used to buy a home or pay off debt. Third, you’ll need to know the purpose of the loan. Finally, you’ll need to know how much money you can repay easily. Here’s what you’ll have to consider before reaching a decision: Your travel budget: Before applying for a loan, you need to know how much you will use it for. In addition, you should know how much you have saved or are willing to put down as a down payment. It will help you determine if you can afford the loan amount that a lender offers. Your credit score: Your lender will want to know how much of a credit risk you are. It is why they will usually check your credit score and report on it when you apply for a loan. You can view your credit score for free on various reputable websites on the internet or call your bank for help. You can also pull this information yourself with a little digging. Loan term: While a longer loan term may be appealing in the short term, it may cost you more in the long run. Application fees: Most financial institutions will charge some application fees. Be sure to read the fine print, so you know what this fee is for and how it will affect your loan application. Documents Needed When Taking Personal Loan for Travel Lenders often require you to provide additional documentation with your loan application. This documentation may also include the following: Tax forms – These documents will allow your lender to confirm income and verify your employment status. It is an important aspect that should not be overlooked. Employment verification – You will often be required to provide a written letter from your employer verifying your employment status. It is often a requirement for self-employed borrowers as well. Bankruptcy documentation – It can vary from lender to lender, but it is a good idea to include some form of bankruptcy documentation with your application. Some lenders will only accept a copy of your bankruptcy discharge, while others will accept a simple letter. Credit card statements – Some lenders require you to provide a copy of your last three credit card bills. It is often an error that many borrowers make. Other documents – Depending on your lender and the type of loan you are applying for, such as a government-issued photo identity card and passport may also be required. You should always read the application thoroughly and ask any questions you may have before signing and sending your application. Interest Rate When Taking Personal Loan for Travel While it may sound straightforward, finding the right loan for you can be difficult. It is because many factors can affect your interest rate, including your credit score, loan amount, and loan term. You’ll need to find a comparable loan to understand your interest rate accurately. It will allow you to see what interest rate you are receiving now and how it compares to others. If you are considering a high-interest loan for your travel expenses, you should shop around and get a better idea of your options. Consider an alternative financing option to see if you can get a better deal on a loan. [B-02] Conclusion A personal loan for travel is like any other loan coming with its advantages and disadvantages. However, you will need to meet certain requirements to be able to receive funding. Understanding these requirements will make finding a loan that fits your travel goals much easier. If you’re looking for a flexible programme that suits your needs instead of imposing terms on you, check out Piramal Finance.
08-11-2023
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Personal Loan

How to Manage EMI for a 5 Lakh Personal Loan?

A financial emergency could come up at any time. Currently, a personal loan is the best way to get credit. If you need a short-term personal loan EMI of up to Rs. 5 lakhs quickly, there is no need to fill out enormous paperwork. Personal loans aren’t backed by collateral, and you can get them online with low-interest rates to take care of various financial needs quickly. [B-01] Qualifications Required for a Personal Loan EMI A personal loan EMI up to Rs. 5 lakhs can be taken out by anyone over 21 and under 65. Usually, only salaried people can get personal loans due to income stability. But some banks and financial institutions loan to those who are unemployed or self-employed as well. The minimum salary for salaried workers should be Rs. 25,000 a month. Self-employed people must show that they earn at least Rs. 5 lakhs a year. The credit rating or credit score looks at how likely you are to repay a loan. Most banks want a credit score of 750 or higher. But some banks may give personal loans to people whose credit scores are at least 700. Different lenders may have different rules about how old you have to be, how much money you have to make, and what your credit score has to be. Documents Required for a Personal Loan EMI of 5 Lakh To prove your identity, you can use a PAN card, passport, driver’s license, Aadhaar card, voter’s ID card, or any other government-issued photo ID card. Form 16, your last two months’ worth of pay stubs or salary certificates from your employer, and bank statements from your salary account from the last six months are all examples of proof of income. People who are self-employed can show their trade permits, GSR registration certificates, income tax returns, and financial documents. When applying for a loan of Rs. 5 lakhs, applicants must include two recent passport-sized photos. How Do You Apply for a Personal Loan EMI? You can follow the steps below if you need a loan for Rs. 5 lakhs right now. Enter the necessary information, such as your name, phone number, email address, income, loan amount, etc., on the website of the personal loan provider or another financial sector. Provide the necessary paperwork, such as proof of income and identity. What Should You Do If You Have a Personal Loan EMI? Here are a few things you can do with your personal loan EMI: Travel You can get a personal loan to travel to your dream destinations. Personal loans can be used to pay for airfare, lodging, local transportation, tour activities, and other travel-related costs. Marriage In India, weddings can cost a lot of money. You could take out a personal loan EMI to pay for the venue, gifts, shopping, jewellery, catering, and other costs related to the wedding. Home Renovation Personal loans could be used to pay for things like painting, small repairs, remodelling, buying household goods, and so on, which are related to home improvement. Most of the time, a loan of Rs. 5 lakh is enough to pay for these costs. Getting out of debt With debt consolidation, you can put all of your debts, like credit card bills and old loans, into one loan. Adjusting the scalesMost banks and NBFCs let you transfer personal loans with high-interest rates to another lender with a lower rate. These balance transfers help borrowers by lowering the interest rate or the time they have to pay back the loan. Health TreatmentsPersonal loans are a good way to deal with unexpected medical costs. It is easy to come up with a few lakhs to pay for expensive treatments or surgeries. How to Calculate Your Personal Loan EMI? Getting a personal loan EMI calculator makes it easy to figure out your Rs. 5 lakh personal loan EMI. Here’s how to use it: Open the personal loan EMI calculator. Type the amount you want to borrow. Type in the right interest rate. Explain how much time the loan has to be paid back. You get the annual depreciation schedule and your personal loan EMI right away. How Can You Get a Personal Loan EMI With Low-Interest Rates? The interest rate on a Rs. 5 lakh loan might be different for each borrower. Even though you don’t have much control over your job, you can add other sources of income, such as rent, bank interest, your spouse’s income, and so on, to increase your wealth. You can also pay off your current debts to increase your net income. The best way to get a personal loan EMI for Rs. 5 lakh with the lowest possible interest rate is to maintain a high credit score [B-02] Summing Up There can be a financial crisis anytime and out of the blue. In such situations, a personal loan EMI can help you out. It is the best way to get credit and is open to everyone. Since they are unsecured, personal loans are easy to get online at reasonable rates. Find out if you meet the requirements and how to calculate the personal loan EMI of Rs. 5 Lakhs. Visit Piramal Finance right now to read more about the benefits of getting a personal loan.
08-11-2023
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Personal Loan

How to Manage EMI for a 3 Lakh Personal Loan?

If you urgently need funds, the first thing you think about is taking out a loan. Personal loans are quickly available with an easy process. It has minimal paperwork, and banks take no security. Personal loans are the best way to cover urgent finances. Many financial firms provide easy loans that can be used to cover unexpected expenses such as your children’s studies, a wedding, or a family/luxury trip. For short-term needs, an apt loan is a Rs 3 lakh loan. It can fund your immediate needs. Moreover, it will be easy to repay the same. More than 90% of loans are paid back through EMIs. It is the most common way chosen by most applicants. This article will guide you on how to manage personal loan EMI. [B-01] Ways to Manage Personal Loan EMI Payments To apply and get a loan is quite easy for many people. The difficulty arises when every month, you need to repay. It is a fixed amount of your loan with interest that forms an EMI on a personal loan. Most people tend to delay the payment of EMI of personal loans. It may be due to the daily routine that makes them forget or delay payback. But this is not a wise financial move. Any missed payments on your personal loan EMIs might have an adverse impact. It may hamper your future funds and budget needs. Below are a few tips to manage personal loan EMI that will assist you : Check Your Capability for Repayment Knowing your loan payback ability is a must. Make sure you are fully aware of the personal loan interest rate. Also, make note of lenders’ payment options. It will help you manage your budget and sort out the EMI for the personal loan. Additionally, several lenders have online EMI calculators for personal loans. These online systems allow borrowers to know their EMIs quickly. It will prepare them for paying their personal loan on time. If you know your ability to repay a loan before applying, it will help you in making wise choices. Make Sure You Save Enough You must have enough money in your account to stabilise your funds. These savings could be useful if a need arises when you are unable to repay your personal loan EMI. These savings can be saved in the form of gold, stocks and FDs. It will help to pay your EMIs on time quickly. These savings can also serve as a backup plan. When you need urgent funds, like paying for any health issues, you can make use of such savings. This will prevent you from any blockage in paying EMIs or other expenses. Post EMI Payment Reminders Setting up monthly reminders to notify you whenever the EMI payment date is due is crucial if you want to ensure that you don’t forget to make any of your EMI payments. You may make sure you have enough money in your bank account for the EMI amount to be deducted with the aid of these reminders. Additionally, you can arrange to gather the payments ahead of schedule if you don’t have enough money to cover your EMI. Plan Your Expenditures The recommended range for your EMI payment is between 50% and 60% of your monthly paycheck. The aforementioned percentage range guarantees that you can handle your other daily expenses without making any sacrifices. However, any EMI amount that deducts more from your salary than the aforementioned range can significantly impact your monthly spending plan. Additionally, most of the demands you make will reduce your income. This does not, however, imply that you must sacrifice your way of life. However, it is important to reduce any excessive and pointless spending when you are responsible for paying back a loan. Keep Your CIBIL Score High A borrower’s ability to pay is determined using their CIBIL score. It is a three-digit score that tracks your credit history in the past. A CIBIL score of 700 or more is taken as an excellent score. Such CIBIL scores make it simple to approve borrowers for a personal loan. Additionally, a borrower who has a high CIBIL score is eligible for low-interest personal loans. Additionally, a high CIBIL score demonstrates your integrity to the borrower. Therefore, the loan provider may grant the borrower’s request to extend the loan term or the due date if the borrower has a good CIBIL score and a history of timely payments. Choose a Longer Loan Term Your personal loan’s term and EMI payment are inversely connected. Less EMI is paid when the loan term is longer and vice versa. Therefore, you might choose a longer loan term when applying for your personal loan. It will not burden your pocket in the future. By doing this, you might be able to lower your EMI payment and better manage your monthly spending plan. It’s crucial to pay your personal loan EMIs on time. Payment also depends on the terms of the agreement with the lender. The borrower may also be required to pay some late fees or penalties. Therefore, it is advised that you, as a borrower, carefully follow the ways to manage your personal loan EMIs more effectively. [B-02] Conclusion You can take out a personal loan to cover any short-term expenses. It can be used for many different purposes. A personal loan can be a trusted tool to get some money. Interest rates on personal loans are typically higher than those on home loans or auto loans because they are unsecured. You must therefore be well aware of your funds in advance. Also, you should plan your funds in such a way to timely pay personal loan EMIs. For more details on 3 lakh personal loans and their EMIs, visit the Piramal Finance website and get assured assistance.
08-11-2023
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Personal Loan

All You Need to Know about Personal Loan EMI Calculator’s Features, Benefits and Advantages

A personal loan without collateral is often the best choice for most needs. You can access these funds quickly and use them for anything, like paying for school, making home improvements, dealing with emergencies, or keeping your savings account healthy. To get something out of a personal loan, you need to apply for one with terms that fit your needs. The fastest way to find deals like this is to use a personal loan EMI calculator to compare different instruments. Read on to learn more about it and the benefits of using a personal loan interest calculator before applying. [B-01] Personal Loan EMI Calculator Benefits The personal loan EMI Calculator has various advantages: No manual computation The EMI calculator is easy to use. So the borrower doesn’t have to do complicated math. To see how much you’ll have to repay, you have to put in the amount, the interest rate, and the length of the loan. This lets you avoid doing the EMI formula calculations by hand. Please remember that using the formula and the EMI calculation option in Microsoft Excel would take more work. It would help if you changed the values to fit the formula’s variables. Explain the repayment process With a personal loan EMI calculator, you can find out how you usually pay back your loan and how much you owe in EMIs. It gives you an amortisation chart that shows how the amount you may have to pay back is split up over the length of your loan. This chart shows how much of each EMI goes toward paying off the principal and how much goes toward paying off the interest. When making plans to pay ahead, the amount in the table is helpful and accurate. It helps you choose the best times to make these payments to save the most on interest and get the most out of them. Price comparison tool You can compare products and even loan terms if you want to. Here, you can look at repayment information for different loan terms until you find a solution that works for you. This idea can also be used to compare different loan offers. If you already know the interest rate, all you have to do is look at the EMI and interest costs to narrow down your choices based on how much you can afford. Easy-to-plan loans Personal loan EMI calculators are made to help people understand how much interest and principal are due on a certain loan amount. Personal loan EMI calculators are now the best way to figure out EMIs because they are easy to use. A personal loan EMI calculator also gives you more information than just the amount of the EMI payment. It also gives you a table and schedule of the repayment terms for the whole personal loan length. Even though it sounds like a long word, a repayment schedule is just a list or table showing how much of the loan you have to pay back. The repayment table shows how much principal and interest rate you will pay for each month until the loan term is over. The amounts in the amortisation schedule stay the same for the whole loan term. This information can help you plan your loan payments and keep you from missing payments. It lets you think about using EMIs to repay the loan and meet your other lifestyle and financial needs. If you plan and have a plan, it may be easier to pay back a loan each month. Quickly calculates EMIs Most lenders have a personal loan EMI calculator on their websites that is usually easy to use. Since they work with most cell phones, they can be used to figure out how much a personal loan will cost. You only need to enter the most basic loan information to get results immediately. You don’t have to give any personal information to use these features, and you can use them as often as you need to without being charged extra. Also, EMI calculator provisions often include links that help with online applications. So, you can easily apply for a personal loan and make a good choice about how much to borrow. Features of a personal loan EMI calculator Save Time Using pen and paper to figure out your monthly EMI would take a lot of time. But if you use a personal loan EMI calculator, you can figure out your payment quickly and easily. Always adjustable The best thing about EMI calculators is that you can use them forever. You can fill in the calculator fields as often as you need to until you feel sure and happy. You can change the parameters as often as you need to get the desired results. Accuracy By using an EMI calculator, a person can get exact data or information. You might have made more mistakes if you needed this helpful tool. [B-02] Conclusion Personal loans are becoming more popular because they don’t have to be backed by anything and can be used for many things. Some people get personal loans even though they have slightly higher interest rates than others, like a loan against property, because they don’t have to put anything up as collateral. This makes them useful in times of need and financial trouble. When using a personal loan EMI calculator, most borrowers prefer to do the math online rather than on paper. You should only take out a personal loan after carefully weighing several financial factors, such as the amount of the loan, your ability to pay it back, the interest rate, the loan length, and more. A personal loan EMI calculator is the only way to ensure that your loan request is clear and accurate. To learn more about personal loan EMI calculators, you need to go to Piramal Finance immediately.
08-11-2023
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Personal Loan

List of Requirements for Personal Loan.

A personal loan might be a good choice if you want to finance a high-cost purchase at a lower rate than other debt options, like a credit card. Having access to credit at all times may be helpful, but borrowers need to know that they have to repay back the money(with interest). Even though personal loan rules differ from lender to lender, several common factors exist. Let’s study what they are so you can easily apply for a personal loan. [B-01] What Is a Personal Loan? Personal loans may be used for various purposes, including debt settlement, sudden health bills, and renovations. For many users, personal loans may provide lower interest rates than credit cards. The function of a personal loan depends on whether it is secured or unsecured. Numerous personal loans are unsecured, meaning no collateral is needed to secure the loan. Most financial institutions, including banks, credit unions, and online lenders, offer unsecured personal loans. Personal Loan Requirements For personal loan products, lenders have certain needs. For example, while some businesses focus on clients with outstanding credit, others provide loans to people with spotty or no credit reports. Lenders must assess each applicant’s credit since most personal loans are unsecured (not secured by security). When choosing, lenders often consider four aspects: credit score, income, debt-to-income ratio, and payment history. Each lender has a unique set of requirements. History and Credit Score Your credit score is a reflection of your credit. This sum is calculated by considering several factors from your credit report, such as how much debt you have in proportion to the overall amount of credit you have access to and how often you have missed payments or deadlines. One of the most crucial things a lender considers when examining your request for a personal loan is your credit score. You likely won’t get accepted for a loan if you have a poor credit score or credit history issues. The lender will want to avoid taking on the financial risk of issuing a loan because they see you as a potential defaulter. A clean credit history increases your chances of approval, even if a strong credit score isn’t always necessary to be approved. If your salary is adequate, obtaining a personal loan should be simple. Note that lenders often check both your total score and the breakdown of each factor that contributes to it. For instance, they may consider the following variety of variables: Your history of payments (how often are payments late?) Your credit use (how much of your available credit are you now utilising?) Your account’s age (i.e., how long have you owned it?) How often do you ask for new credit? Does this person have the appearance of needing money? The lender will consider each of these factors, so it’s important to be aware of them and improve your credit score as required. Collateral Collateral is a property or other thing used as security for a loan. In other words, the usage of the collateral serves as insurance against default on a loan by the lender. In the case of a default, the lender has the legal right to take the asset or land to recoup damages. Collateral is not needed for unsecured loans, but it is required for secured loans. When assessing your loan application, the lending institution will look at the value of any tangible property you provide as collateral. Therefore, when selecting the kind of loan you want, think about whether you want to take the chance of losing your asset or property for a possibly lower interest rate on a secured loan. Evidence of Employment and Income Most lenders want to know whether you are employed and have the means to pay back the loan. Many lenders would need proof of your income and work to confirm your ability to repay the loan. They might assess your prospects of repaying the loan by doing this. It may also affect the interest rate and length of your payback choices. The term “proof of income” might mean different things to different lenders, as it does for the rest of personal loan needs. Some lenders want a signed letter from your company, while others need pay stubs or W2s. If you are self-employed and applying for a personal loan, you could be asked to provide a copy of your tax returns or details about your bank deposits. The Ratio of Debt to Income A major personal loan criterion is the debt-to-income ratio (DTI). Your monthly debt payments are compared to your gross monthly income via DTI. Lenders will view you as a more desirable loan if your DTI is lower. For instance, a person who earns Rs 12,00,000 a year is doing well. That translates to a gross monthly income of Rs 1,00,000. So, let’s say that despite making payments of Rs 50,000 a month toward their credit card and student loan debt, they still have trouble making ends meet. Their DTI of 50% is high by industry standards and may turn lenders away. In comparison, if a client only has a Rs 40,000 monthly student loan payment, they may be eligible for a personal loan with better terms and a Rs 50,00,000 annual income. Due to their Rs 4,00,000 monthly income and Rs 40,000 in debt payments, their DTI is 10%. Your borrower attractiveness to lenders increases as your DTI decreases. [B-02] Conclusion Although the requirements for personal loans vary depending on the lender, most take the applicant’s credit score, income, DTI, and collateral into account (for a secured loan). Therefore, if you have a better grasp of what lenders are searching for and what makes you creditworthy, you’ll be more prepared when applying for a personal loan and aware of the rates and terms you may be approved for.
08-11-2023
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Personal Loan

Make Festive Celebrations More Joyful with a Personal Loan

From taking on an extra expense to funding a vacation or even starting up your own business, there are many reasons why you may need a personal loan in the coming festive season. These loans come in different shapes and sizes. They can be a one-off or recurring financial assistance to keep your finances stable over the year. Unsecured or secured loans, short-term or long-term–numerous offerings are available that suit various situations and needs. This article lists some of the best reasons why taking out a personal loan in the festive season makes sense this year: [B-01] What Is a Personal Loan? Before we look at why a personal loan is a good solution to finance your needs during the holiday season, it is important to understand what personal loans are. A personal loan is a loan to help you with unexpected expenses, such as paying for a car repair or replacing a laptop. Personal loans are designed for individuals who need a small amount of money to cover a short-term financial need. In most cases, personal loans are unsecured, meaning they don’t require collateral to receive the loan. Personal loans generally come with lower interest rates and shorter repayment periods than credit card debt. Here are five reasons to consider taking a personal loan during the festive season: New Home Purchase A major chunk of any savings should be dedicated toward your future. Buying a new house is one of your most important financial decisions. It is also one of the most expensive. Taking out a personal loan to fund the down payment on a new home is a wise decision. As the property owner, you can access more tax credits and benefits. Moreover, paying off your mortgage loan early can save you thousands of dollars in interest over the years. A personal loan makes sense if you want to buy a new house this festive season. No matter your circumstances, taking out a loan is wise. It can help you fund a purchase you have been dreaming about for a long time. Extra Expense If you are planning to attend a family wedding or a major function, a personal loan can help you cover the costs. You can take out a loan against your assets, like your home or company shares. Taking out a loan against your property is advisable if you have equity. When you take out a loan against your assets, you are borrowing the equity, and the interest you have to pay on the loan will increase the loan amount. You may have to pay interest on the loan until you pay it off. However, if you need the money now and it comes from taking out a personal loan, you have to make timely payments. You can always take out a short-term loan if you have a reliable income source. Debt Consolidation A debt consolidation loan is a smart way to pay off your debts. It combines all your high-interest debt into one monthly payment. It is advisable to get a consolidation loan if you are close to retirement. With a debt consolidation loan, you can lower your monthly payment to take advantage of the tax benefits of being in a lower tax bracket. You can also take advantage of a lower mortgage or home equity loan rate. It can be helpful if you need to fund a large purchase or pay off a large loan. You can also use a debt consolidation loan to pay off high-interest credit cards or other high-interest debts. Expanding Business Many new businesses need working capital to get off the ground. You can always take out a business loan against your assets, like shares in your company or real estate. Taking a loan against your assets is advisable if you want to start a business. When you take a loan out against your assets, the loan amount goes directly against the asset, like shares in your company or real estate. Although it may hurt your finances, it also gives you a lot of flexibility in running your business. You can always pay off the loan with the shares of your company or sell the property if you want to pay off the loan faster or get out of the loan. Holiday Travel If you have been looking forward to taking a dream vacation, but money has been an issue, then a personal loan can help you fund your trip. Many personal loan providers offer travel loan products. You can always take out a loan against your assets, like shares in your company or real estate. Taking out a travel loan is advisable if you have been looking forward to a dream vacation but have been unable to afford it. A vacation loan is a short-term loan that can be used to cover the cost of a vacation. The loan is typically used to cover the cost of airfare, lodging, and other expenses related to the trip. As with any other type of loan, it is important to consider the terms and conditions of the loan when deciding whether or not to take out a vacation loan. The terms and conditions of a vacation loan should be similar to those of other types of loans. For example, a vacation loan should be easy to repay and have low-interest rates. [B-02] Final Words It is always wise to have a backup plan. As the saying goes, plans fail, but planning is essential. A personal loan should be your last resort. It should be a short-term solution when all other options have failed. And yes, there could be many scenarios in which a personal loan makes sense. A loan will not solve all your financial problems, and it will not magically make your money appear. So, if you want to take a loan to cover some unforeseen expense, you may find this list handy. However, when looking for a personal loan, you will want to ensure that you get the best deal possible in terms of interest rates. You must check out financial institutions like Piramal Finance, which is recognised for its flexible loan programs. Visit Piramal Finance today to find out the best loan program that suits your financial needs.
08-11-2023
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