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Personal Loan

Things for which you can’t use your personal loan amount

Almost all, including a wedding, a trip, a medical bill, an emergency, and more, can often be paid for with a personal loan. A personal loan can often only be used to pay for some expenses. Using a loan for an unlawful purpose might result in the lender asking you to return the loan amount plus interest immediately. It is best to make sure you are keeping all loan terms. [B-01] What Is a Personal Loan? A personal loan allows you to borrow money to use for several purposes. For example, you may use a personal loan to pay for wedding expenses, debt relief, or house upgrades. Banks, credit unions, and online lenders may provide personal loans. The money you borrow must be repaid over time, often with interest. A few lenders charge fees for personal loans. Things for which the personal loan amount cannot be used A personal loan may be used for almost any purpose, but the lenders expressly ban some. It is not advised in the following cases: Education expenses: Most lenders ban applicants from using personal loans to pay for college expenses. Also, a lot of lenders will only allow you to use a personal loan to pay off student loan debt from the past. Putting down money on a home: A personal loan usually cannot be used as a down payment on a home. The source of the down payment for a standard or FHA mortgage cannot be a personal loan. Business expenses: According to many lenders, you often need help to use personal loan money for business activities. Small Business Association (SBA) loans, which provide borrowing amounts of up to $5 million for qualified borrowers, maybe a better option if you need a large chunk of money upfront. Using a personal loan for things you shouldn’t Do not shorten the term: A personal loan may provide you with the much-needed funds to cover unforeseen situations, but remember that the loan is a debt. The earliest possible repayment must be your goal. Why quickest? Because a lengthy term generates more attention. Due to a lack of funds, you are taking out a personal loan. It serves no use to solve your financial troubles by taking out a loan in the long term and paying more in interest. As a result, keep the loan term as short as possible. Need clarification on the loan’s interest component? For personal loans use an EMI calculator. Stay moderate with the loan amount: Only because you aren’t required to explain to your banker why you’re getting a personal loan doesn’t mean you should become avaricious. Only borrow what you can afford to pay back. Don’t allow the devil to whisper in your ear or give you ideas. Not about the sum of the Personal Loan, at least. Taking out loans involves two parties, which means you must pay back the borrowed amount plus interest. You will fall into a debt trap if you take out a loan for an amount you cannot afford. People escape the trap at a very high cost (literally). Limit your personal loan intake: You may only get part of the amount you need due to your eligibility. As a result, you may be tempted to take out many personal loans. Well, as tempting as it may seem, you have to restrain yourself from making this error. If you take out too many loans, debt will consume your life. Try using what you already have to solve the issue. If it isn’t enough, consider borrowing from your friends and family. Only submit loan applications to a few banks: Yes, you need the cash quickly, and you may be tempted to submit applications to many banks to ensure that all of your bases are covered if your preferred bank denies your request. Bad idea. The bank in question will verify your credit score each time you ask for a loan, and each check will cause your score to decrease somewhat. Now picture five banks simultaneously monitoring your credit score. It will lower your score, making obtaining a loan approval more difficult. Although the premise behind your application to many banks may be good, you will benefit only some of it. Therefore, extensively compare Personal Loans online before applying. Make sure to complete your EMI payments: Once a bank has assisted you with a personal loan, it will also demand prompt repayment. You have these EMIs. Make sure you make all of your EMI payments on time. Your credit score will suffer, and banks won’t be as willing to approve your loan requests in the future. Make sure to set aside money for the payback and maintain a reminder. You must read the small print before signing on the dotted line: Lenders may have you sign the papers and fill them out to lessen the paperwork burden. Although a reputable bank is unlikely to pull a fast one after getting your signature, it’s always a good idea to check the small print beforehand. You can discover crucial information about your loan that will enable you to arrange your payments properly. Please refrain from using the borrowed money on entertainment: Because of the nature of personal loans, you can be tempted to utilise them for luxuries like shopping or vacations. Although a personal loan can be used for any purpose, it is typically recommended that you use it in cases of genuine financial emergencies. Do your research before accepting a loan: You may compare loan offers from several banks on their websites. Therefore, there is no need to choose your neighbour’s proposed loan choice. Take advice, of course, but also do independent research. Which is more essential to you: the money, the tenure, or the interest rate? Consider these factors before selecting your loan provider. Please take a peek at the extra features and advantages while you’re at it e.g., a complimentary prepayment option. [B-02] Conclusion Nearly everything can be paid for with personal loans. Personal loans are often used for debt consolidation, home upgrades, and major purchases, but they should be used for something other than investing, paying for education, or making down payments. Therefore, read the fine print while taking out a loan to understand when and how you may utilise your money. To learn more about Piramal Finance, go to their website.
08-11-2023
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Personal Loan

Offline vs Online personal loan: Features, benefits you need to know

Personal loans are money weapons. They can get you out of any brief money crisis. There is no ‘one size fits all’ answer regarding online and offline personal loans. While online loans are growing fast, many people in the market still prefer physical connection and offline loan processing. So, whether you apply for a loan online or offline is up to you. Before making a choice, it is vital to have a thorough grasp of the lending process. So let’s go through each one in detail. [B-01] What is an Offline Personal Loan? The normal approach for applying for a loan entails visiting the bank and filling out the needed paperwork. KYC papers must be given in hard copy and will take some time to complete. People choose offline personal loans because of face-to-face engagement and customised service. This is not perfect for people who have an idea of the online world and are looking for a quick online process. What Are Online Personal Loans? The digital era has allowed an increasing number of individuals to choose online services and enjoy the advantages from the comfort of their own homes. Online loans are the ideal option for applying for a loan since they need less processing time and paperwork. Also, online loans enable you to compare many choices of lenders before deciding on the ideal one. Key Differences Between Online & Offline Personal Loans Basis Offline Personal LoansOnline Personal LoansHuman ContactExists because it focuses on providing personalised services to you.Negligible since everything is done online.ConvenienceIndividuals must go to the lender and provide the relevant papers along with filling out the application form.It is possible to apply for this with a click of a button from any place.SecurityThere is some risk of losing papers.This process is completely safe.PaperworkAn offline personal loan requires you to fill out many forms. It is a time-consuming task.There is less paperwork since scanned copies of KYC forms are uploaded.Processing TimeThe processing time ranges from 10 to 12 days. It depends on the client’s profile and the paperwork.The process takes place over a few hours and involves quick approvals. Perks of Applying for an Offline Personal Loan Improved assistance You receive better customer care and help in comparison to online personal loans. The people you connect with are expected to follow a rigid code of conduct. These experts walk you through each stage of the loan form process. If you have any questions, they can answer them right away. Service at your doorstep Offline emergency loan and personal loan form options are well known for providing doorstep services. Lenders dispatch people to the client’s home or workplace to gather papers, sign loan forms, and resolve consumer concerns. So, an offline personal loan is the best solution if you are hesitant to submit papers or do not understand the paperwork. The most effective comparison Lenders have teams of people. These people analyse your needs and provide a table comprising a list of their financial solutions. The table also covers personal loan rates, loan fees, and other information. You may also compare the various loan packages offered by the lender. This table can help you choose the loan package most suited to your needs. For instance, if you need clarification on the difference between a bike loan with a loan for a motorbike purchase, the lenders may help. There are no additional fees Most people believe that when they apply for an offline personal loan, they must pay extra fees for in-person service at the branch. This, however, is not the case. For offline services, lenders do not charge any extra fees. The costs you pay cover loan processing as well as additional mandatory expenses. There is no risk to credit Taking the loan for the first time? You may need to familiarise yourself with loans. Choosing the improper loan amount or duration for a personal loan might have a long-term effect on your credit history. But when you apply offline by visiting the lender’s branch or outlet, you will get help from experts. This will keep you out of a bad credit case. Perks of Applying for an Online Personal Loan Simple to use You may use the online way if you don’t know how to apply for a loan physically. Lenders’ websites are simple to use. They will walk you through the process of filing a loan online form step by step. Many lenders also offer a chatbot service that handles clients’ questions 24 hours a day, seven days a week. Easy comparison You can compare many loan providers’ loan rates and offers with just a few clicks when applying for an online loan. Many loan aggregator websites now enable users to make conclusions based on data from multiple lenders listed on the site. You may also verify your loan eligibility and use the loan EMI calculator to choose the most suited EMI ahead of time. Minimum operation is required There are very few steps you must follow when applying online for a loan. You need KYC papers, proof of income, and a passport-size image to complete your loan form. The online form process is ideal if you need a personal loan right away. Instant approval Many money firms allow you to apply for loans online through their website or an online app. As the method does not need a large number of papers for verification and processing, the loan request is completed faster. The money is released into your account when the lenders have verified the scanned papers. [B-02] Conclusion Despite the popularity of online personal loans, many people in the market still want physical solutions. Offline loans do not have the same ease when compared with online loans. As a result, online loans are common among working people in major cities. Many lenders are increasing their footprint in other parts of India for online and offline personal loans. If you want more exciting blogs, visit Piramal Finance and explore their products and services.
08-11-2023
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Personal Loan

Prepayment Of Personal Loan: Features, Benefits And Charges

Personal loans are great financial tools for many people. Several financial institutions in the country offer them. Contrary to popular belief, personal loans aren’t just for emergencies. You can use them to fulfil any personal objective — from home renovation to a wedding or even a vacation. While a personal loan can be used for multiple purposes, most people use them to meet short-term financial needs. These loans are typically unsecured. In other words, borrowers don’t have to provide collateral to secure them. They are easy to get if you have a good credit score. [B-01] Benefits of Prepaying a Personal Loan Get Rid of the Loan Burden Faster Using a personal loan to raise funds is a great option if you need extra cash. But, with time, you also need to repay them with interest. These monthly payments are called EMIs (Equated Monthly Instalments). Since these loans are unsecured, the interest rate is higher than a secured loan. The pressure of monthly EMIs can take a toll on your financial health. It all depends on the loan tenure and the state of your finances. Personal loan prepayment is a great way to pay off your loan early. If you have some extra money, use it to pay off your debt. Remember, the longer the loan tenure, the bigger the sum you are expected to repay. However, loan prepayment attracts some fines. In the case of a personal loan, this prepayment fee is nominal. Improves Your Credit Score It’s important to know that credit score is a critical part of your financial life. It can make or break your ability to borrow money. If you have taken a loan, you can prepay some of it and improve your credit score. Prepaying your loan is an important part of debt management. It is also the first step toward improving your credit score. The majority of loans are approved based on your credit score. If you have outstanding loans, they will affect your credit score negatively. But if you pay them off fully or partially, your credit score will also go up. This means that you will qualify for a better deal on loans in future. Types of Prepayment for Personal Loans Full Prepayment Personal loans have a one-year lock-in period, after which you may prepay the balance to save on interest. However, prepayment incurs a penalty. Most lenders charge up to 5% of the outstanding amount. Part Prepayment Part prepayments might lower your loan burden if you don’t want to engage in the monthly EMI cycle for long. Partial prepayment is beneficial as it reduces the EMI burden significantly. However, some lenders may restrict you from part prepayments until the repayment of a predetermined number of EMIs. Charges on the Prepayment of Personal Loans Financial institutions typically earn from the interest charged on loans for the entire loan tenure. Prepayment reduces the bank’s interest rate over additional time. Some financial institutions demand prepayment fees to offset lost revenue. Different financial institutions charge different prepayment fees. Depending on the bank, prepayment charges are between 4% and 5% on the outstanding loan amount. Prepayment costs also vary based on the loan term. Some banks charge zero prepayment costs after three years; others may lower the interest rates. Features of Prepayment of a Personal Loan The features associated with the prepayment of loans differ from one financial institution to the other. Let’s look at some of these features: Some banks offer pre-closure of the loan but have prepayment charges. The pre-closure period is as per the bank’s terms and conditions. There are different pre-closure charges for different types of loans. The maximum prepayment amount can go up to 25% of the principal amount due. But that’s not all! You can prepay your loan twice during the loan term. A good thing about loan prepayment in some institutions is that you can prepay your loan without any prepayment penalty. You can prepay up to 5% of the outstanding amount each year for a maximum of 10 years. Should You Prepay Your Loan? It’s always affordable to prepay the loan amount. For instance, if a borrower gets a loan at an interest rate of 15%, the annual savings will not exceed 9% to 10%. The consumer may save an additional 5% to 6% on annual interest by prepaying their loan in full at any time before the due date. [B-02] Conclusion Prepayment of personal loans has resulted in reduced stress for monthly EMIs. By prepaying the loans, you can rid yourself of unnecessary headaches and plan your financial future efficiently. A minimum fee is required for the loan prepayment and every bank has a different rate. It’s important to understand the benefits and features offered by your chosen lender. You can find similar blogs on personal loans on Piramal Finance. Further, we also offer a wide range of products and services to help you get the best deal out of your investments.
08-11-2023
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Personal Loan

Why You Should Avail Personal Loan For Festivals

Everyone wants to enjoy the holidays in a big way. This is because these occasions allow families to get together and make memories. At the same time, it is very important to have the financial backing to pay for our wonderful parties. So, in case you haven’t saved ample money for the celebrations, you can get a personal loan, which will help you pay for everything you need for the celebrations. Festival loans don’t need collateral and don’t have to be paid back immediately. Borrowers use these loans to buy items like electronics, furniture, and other goods. The fact that people can get loans for smaller amounts is making more people look for credit each year. [B-01] Features of Personal Loans For Festivals There are no hidden expenditures or administrative fees. Low processing fees are charged. And there is no prepayment penalty. The amount you can borrow is determined by your income and repayment ability. The smallest loan amount under this scheme is Rs. 5000/-. And the highest is four times your net monthly income. The maximum amount that can be borrowed is limited to Rs. 50,000/-. Offering competitive rates. There is little documentation needed. Reasons To Select A Personal Loan This Holiday Season Even though there are many benefits to getting a personal loan, here’s why you should choose them for festivals. High Personal Loan Amount Loans of up to Rs. 25 lakhs can help make the holidays more fun and exciting. You can also pay for many holiday expenses for yourself and your family with a single loan. Flexibility After you get your loan, you can use the money however you want during the holiday season. You can also go beyond choosing creative and unexpected gifts for your loved ones. Minimal Interest Rates One of the main reasons why personal loans are so popular during festivals is that they have low-interest rates. Rates on personal loans can be as low as 12% per year, and they can be paid back in easy-to-manage instalments. No Security is Needed One of the main reasons people are choosing personal loans is that they can get one without any kind of collateral. Since personal loans are unsecured, you don’t need to put up any security, collateral, or guarantors to get one. This is not the case with a secured loan used to buy something big. When deciding whether to give you a personal loan, the only thing that matters is how quickly you can pay back the money. No Limitations On Final Usage One of the benefits of personal loans is that they can be employed to pay for purchases. Personal loans don’t have this limitation either, unlike housing loans and loans for cars. A personal loan can pay for things like vacations, home improvements, new furniture and appliances, a wedding, unexpected medical bills, school, the purchase of a used car, etc. So, in contrast to a housing loan for buying a house, and a car loan which is specific to a car, a personal loan can meet any of your financial needs. Adjustable Terms For Repayment The average time to pay back a personal loan is between 3 and 60 months. You can choose the length that works best for you. It’s easy to pay back a loan right away. With features like flexible payment terms and low EMIs, it’s easy to pay back a loan. Eligibility Requirements For Festive Personal Loans A monthly income of at least Rs. 3000 is necessary. While determining the loan amount, your spouse’s salary may also be taken into account. They are, however, required to get the loan guaranteed. As an alternative, they can also apply for a joint loan. A working person having a minimum of 2 years of service in PSUs, the government, public limited institutions/companies, etc. A person who is a recipient of income from a verified source. These sources include government interest, NSCs, TDRs, or a person with a pension. A person who is self-employed and possesses a minimum of 3 years of experience is eligible for personal loans. Festival Loans Interest Rates Festival loans have interest rates that range from 6.9% to about 9% per year, depending on how much you borrow. The processing fees aren’t too high, coming in at just 1%. There have never been penalties for paying off festival loans early. Required Documentation For Festival Personal Loans If you are a professional or work for yourself, you must show proof of your official address. This can be a lease deed, a bill related to your telephone, or a certificate for a store or business. Additionally, you must present your Income Tax Returns (ITR) for the last two years. For those who get a salary, submission of a salary slip along with Form 16 is required. Photo the size of a passport. How Do I Apply For A Festival Loan? There are different ways to avail of such a loan. But the easiest and fastest way is to do it online. You can apply for this kind of loan on the lender’s website, upload the necessary documents, and check the application status online. Use an EMI calculator to figure out how much you will have to pay before you apply. This calculator can be found on the website of the lender or a third party. You can use the EMI calculator by entering the loan amount you need and your desired tenure. This makes it easier to figure out how to pay off debt. [B-02] Conclusion Personal loans are one of the most common ways for people to get money. There are a lot of good things about such loans. This includes not having to put anything up as collateral, getting faster approval, attractive interest rates, etc. Additionally, both salaried workers and people who work for themselves can leverage the benefits of such loans. To learn more about personal loans for festivals, you can check out Piramal Finance for similar blogs. You may also take a look at the products and services they offer.
08-11-2023
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Personal Loan

Can A Pre-approved Personal Loan Get Rejected?

Nowadays, most banks approve or reject loans within hours. This has made it easy to get a personal loan. You no longer have to wait for days to learn whether or not the loan has been approved. Most banks provide pre-approved personal loans to their existing customers, making it simpler for them to get a loan when needed. Hence, a pre-approved personal loan helps you borrow money quickly and simply without needing extra processing time or steps. A pre-approved loan does not guarantee that you will receive one. Even your pre-approved loan can be rejected, and there may be several reasons for this. [B-01] What is a Pre-Approved Personal Loan? As per the consumer’s history of on-time EMI payments, pre-approval examines their chances of being approved for a loan. Pre-approved personal loans are given so that people can take money without thinking about the approval process. If you have excellent credit and a history of timely loan payback, your chances of getting a pre-approved personal loan are higher. Banks provide pre-approved loans to people who have paid their debt on time. They also look for people who deposit money regularly in their salaried accounts. What are the features of a Pre-Approved Personal Loan? When a loan is pre-approved, there is very little waiting involved. This is in addition to knowing about the loan’s status. Banks generally present different offers to their consumers depending on their prior dealings. But a few standard features of a personal loan that has been pre-approved are as follows: Very easy and simple processing Lower interest rates Get the best offers from the bank What could be the reasons behind the Rejection of a Pre-Approved Personal Loan? Every bank has its own way, terms, and conditions for accepting or rejecting loans. Even if most banks and financial institutions do the same things—take similar paperwork and look for the exact things—it is not guaranteed that if one bank approves a loan, the other will also do the same. The following are a few things that can cause your pre-approved personal loan to be denied. Your Job Status It has been seen that most banks only offer personal loans to people who have good earning capacity. They can be registered doctors, chartered accountants, employees for private offices, and those working for the government sector like central, state, and municipal governments. There is a very high chance that your loan application will be rejected if you don’t work in any of these jobs. Another case is that the bank was made aware of a sudden job change after completing your paperwork. The bank may reject your pre-approved loan on those grounds. Age Requirements There are age requirements to meet to be eligible for any loan, whether pre-approved or not. The minimum and maximum ages are 21 and 60, respectively. If you were pre-approved but are now over this age, the bank may decide to reject your loan application if you do not qualify for the age limit. The age restriction is set to ensure you can pay your instalments on time and don’t skip any repayments. Income Pre-approved personal loans are given based on your past payment records, including your salary amount. When the loan was pre-approved for you, you may have been a very old client of your bank and made regular credit card payments. Every bank has conditions about the least salary amount that must credit each month to get eligible for a loan. If by any chance, you have changed your job and the salary is less, the bank will have the option of rejecting the pre-approved loan. Frequent change in Jobs You can have a bank account where a certain amount is transferred to your account each month. The bank will look at your monthly transactions and offer you a pre-approved personal loan. Giving bank salary slips for different jobs at the time of documentation can make them reject your loan even if it has already been pre-approved. If you change jobs too often, it will show career instability, raising doubts that you might not be able to make your payments in the future. Poor Credit Score Most banks today use credit scores as a crucial measuring stick. When approving a loan, credit is always reviewed. Even if the credit score is low, many banks and financial institutions still give loans. Everything in your credit history will be shown. How many loans have you taken? Have any of your payments ever been late? Your bank could reject your pre-approved personal loan at the time of document submission if your credit score isn’t up to par. The Loan Amount is higher than your Salary There is a good chance that you have accounts with many banks and that you have many payment plans for your different loans. The bank might have given you a pre-approved personal loan based on your history with them while not being aware of the transactions at other banks. If the bank gets to know about other loans that you have taken, they will check for your repayment ability. If your remaining salary after paying the existing loan is less, they may reject your loan application. [B-02] Conclusion A personal loan that has been pre-approved has many benefits. They are easy to get, have low-interest rates, and take the shortest amount of time to process. They are the finest source of funding in an emergency or need immediate funds. Looking at the above pointers, it is easy to say that a pre-approved personal loan does not guarantee that it will be approved. The reasons mentioned above may have an impact on the loan’s status. Maintaining your funds in order is advised if you don’t want this circumstance to occur. You can always visit Piramal Finance to learn more about personal loans and how they work. They also offer other products and services that you can look at.
08-11-2023
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Personal Loan

How Can I Get Personal Loan With Less Than 500 CIBIL Score?

If you need a private loan, you must contact a bank with your needs. The lender, in contrast, will need to assess your client’s solvency. Your capacity to settle the personal loan promptly is referred to as creditworthiness. The bank will also review your past credit history, which includes your track record of managing previous and current debts. [B-01] What exactly is the Credit Score? The credit score is the widely accepted sign of your fiscal status. It’s a numerical analysis of your financial status. It provides lenders with specific factors for judging how you handled previous loans and if you would be able to repay your debt if approved in the future. Credit scores vary from 300 to 850. A credit score of 700 or more is rated excellent. A credit score of 400-500 is deemed poor. If your credit rating is between 600 and 700, you may apply for a personal loan. Factors affecting your Credit Score The following are the most likely causes of a poor credit score: When you have several personal loans, it may take a lot of work to repay them all on time. This may harm your credit rating. If you’ve skipped a loan payment, this might be seen as a failure to arrange your money properly. This will reduce your credit score and make future loan requests tougher. The credit usage ratio has a vital impact on your credit score. Your credit score suffers if your buying habits regularly exceed the credit card’s maximum limit. You will be seen as a careless spender who lacks money-handling skills. Failure to fulfil your credit card payments on time will have a bad effect on your credit score, the same as failure to make EMIs on other loans. You are misled if you feel you can keep a decent credit score by skipping credit cards entirely. You possess no credit history because you don’t have a credit card. Hence your credit score is zero. If your personal loan request is rejected more than one time, you may be urged to apply to get the same loan with newer lenders. If you make this a habit, it will hurt your credit score. This is because repeat denial is negative for your credit rating, and every time your potential lender seeks your credit data, your credit score will suffer as a result. This begs the issue of why a lender would reject your personal loan when you have a poor credit score. This is a vital matter. Banks don’t want bad loans on their balance sheets. If they give loans to clients with bad credit, there is a danger they may default. This is harmful to banks as they stand to lose money as a result. If your credit rating is deemed great, you will be awarded a loan right away. However, when your credit score is below ideal, you will be denied a personal loan. Is it, however, the end of everything for you? What if you truly need money for a medical crisis, a family wedding, or another sudden extra cost? Don’t be alarmed. You may get a personal loan even if you have a bad credit score. How can you get a Loan even if you have a Bad Credit History? Some practical methods can help you get a loan even if you have a poor credit score. Despite having a poor credit score, there should be a few aspects in your fiscal profile that are stronger. You only need to take advantage of it. Some clever but legal methods to do so are listed below: Profitable Potential If you have a good income today or a good income prospect in the coming years, it indicates that you can repay your debts. This might help your loan form get granted even if you have a poor credit score. Look for a Co-Applicant Get your wife or other family members on board if they have a decent credit score. You may apply for a joint loan, which raises your chances of approval. Accept a Higher Interest Rate Some banks do give loans to you with bad credit. In these contexts, the loan sum is fairly small, and the interest rate is greater. If you want money quickly, you should make this choice. You might also try peer-to-peer borrowing, which is famous in western nations and is gaining traction in India. Obtain a Loan using an Asset Even if your credit score is poor, some lenders may grant you a loan by taking assets. Shares, land, fixed deposits, gold, and a variety of other assets are examples of collateral. Start working to Improve your Credit Score This will take some time, but it is the most useful method to avoid future loan denials. You may pay off your current debt, change your spending habits, make EMI payments on time, and pay your electric bills promptly. These are just a few of the simple steps you may take to boost your credit. In the end, your credit score will rise, and you’ll be more suited for loans. What papers are needed to get a Personal Loan with a Low Credit Score? Passport Aadhar Card Address Proof Driver’s license 6-month bank statement Six-month salary slip If you are a professional or work for yourself, you must provide proof of your Firm Registration Data/Service tax registration, 3 years of loss and profit statements, 3 years of balance sheets, and 3 years of ITR. [B-02] Conclusion Personal loans are hard to attain with bad credit but still attainable. While most major banks are picky about credit scores, some lenders may be ready to modify credit conditions to provide you with a loan. You may attempt several methods, such as negotiating contexts with your present lender, borrowing against a deposit, or taking out a loan against gold, among others. Make certain that you truly need the funds. And after you have received the credit, you must be careful about returning it on time. If you want to learn more about personal loans, visit Piramal Finance and explore their products and services.
08-11-2023
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Tax Savings

How Can You Save Your Tax with The Help of a Personal Loan?

A personal loan is a financial product that can be used for multiple purposes, but most often, personal loans are used to meet short-term financial needs. Personal loans are unsecured loans with a rapid process choice. This means you may get this loan rapidly without putting up any assets. These factors make personal loans perfect for getting cash. Moreover, personal loans are tax-free. Not only would a personal loan save you money, but you can also employ it to make extra funds if you so pick. There are several Tax-Saver Bonds offered. So, you may invest your loan sum in such Bonds to earn money while saving taxes. It’s a win-win scene for you since you’ll be able to save and gain at the same moment. If used wisely, personal loans may be a great tax-saving tool. [B-01] What Kinds of Loans Are Taxable? In India, most loans from banks and other formal lenders are tax-exempt. Most of you mistakenly believe that tax breaks are solely offered for home loans, but this is not the case. You may claim income tax refunds on school loans, vehicle loans, and personal loans, in addition to a house loan, based on how the cash is used. Varied forms of loans have different tax benefits based on the Income Tax Act of 1961. Ways to Save Tax With Personal Loans Personal loans are not taxed since they are not deemed as income. It is vital to know that lending from friends or family is better than lending from a reputed bank. You may be liable for rewards if you employ your personal loan for the below purposes: To repair or renovate your house To expand your business Other assets investment To buy or build residential property Let’s look at how you may profit from every one of the examples above. Repair or Renovation of a Home If you utilise a personal loan to remodel or repair your house, you may deduct up to Rs. 30,000 of the interest paid from your total taxable income. For the bank to provide an interest certificate, you must offer the relevant receipts and documents. Taking a personal debt to make a down payment on residential land provides tax as perks per Section 24 (b) of the Income Tax Act. If the home is under work, it must be ready to live within three years of the loan’s sanction, and deductions may only be claimed after the project is completed. You may also earn rebates for house repairs, fixes, or construction that are paid using a personal loan. The highest taxable interest is Rs. 1.5 lakhs if you live in the home for which you’re claiming deductions. If you rent the residence, there is no limit on the sum of interest you may deduct. Business Expansion If you utilised the loan to expand your firm, you might claim a tax deduction for the interest costs on the loan. Yet, the money must have been utilised to increase the firm’s income. You must present the relevant paperwork as evidence of use. Other Asset Investment When investing in other assets such as non-residential real estate, gold, cars, stocks, and so on, the interest paid just on a personal loan may be added to the price of the asset purchase. This will help you when calculating capital gains at sale time. Funds Spent on Buying or Building Residential Assets If you used a personal loan to buy a property or build your own home, you may deduct the interest payment and get tax advantages. Section 24(b) of the Income Tax Act allows you to claim a deduction of up to Rs. 2 lakh just on interest repayment on residential or empty assets. You must own land to take advantage of the tax advantages of personal loans. If the home is leased, the whole interest charged on the loan may be deducted from your taxable gain. How You Can Get a Personal Loan Now that you have grasped how to utilise your credit to get tax advantages, let’s discuss how to apply for a personal loan. Step 1 – The first thing you must do is choose a bank. You must check many elements when picking a lender, like personal loan rates, debt size, eligibility, and payback factors. Step 2 – Once you’ve decided on a lender, go to their website to ask for a personal loan online. You may also do this by using your phone to download a personal loan app. Step 3 – Enter the sum of your personal loan as well as the length of time you wish to borrow. Pick a proper repayment period so that you can settle your loan instalments. Step 4 – The bank will confirm your information and deposit the loan funds into your bank account. You may apply for a personal loan to satisfy your unique financial needs. Required Papers for a Personal Loan If you are a salaried professional or work for yourself, you must show proof of your official address. This can be a lease deed, a bill related to your telephone, or a certificate for a store or business. Additionally, you must present your Income Tax Returns that date back to the last two years. For those who get a salary, submission of a salary slip along with Form 16 is mandated. A passport-sized photo. [B-02] Conclusion While you can reduce the rate you pay on your loan in some instances, you should still try to pay as little interest as possible in the first case. Looking around for a loan and boosting your credit before applying will help you locate and qualify for the best deals. Tax planning is an ongoing effort that is a vital part of handling your budget. Many of you have explored using your tax return to pay off debt. Yet, a more stable source of finances, like a personal loan, may be a better option. If you want to learn more about personal loans, visit Piramal Finance and explore their products and services.
08-11-2023
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General Insurance

What Is Life Insurance Policy And How Does It Work In India?

Most people will tell you that life insurance is a plan that gives funds to your family when you die. If you ask them to define big policy features, policy kinds provided, and how they operate, they will most likely try to change the topic. A life insurance policy requires you to pay premiums for the duration of the policy. In turn, the provider offers you complete life insurance. Life insurance covers the future of your dear ones with a lump sum payment. This is known as the death benefit when an awful event happens. Some life insurance plans provide a Maturity Benefit at the end of a policy span. [B-01] What exactly is Life Insurance Policy, & what are its vital features? A life insurance policy is a contract between an insurance firm and you. All life insurance policies are unique, as are the rules governing insurance plans in each state. In general, many insurance contracts offer the following: The insurer Life insurance may only be offered by selected firms, which are governed by state insurance offices. The policyholder A person or groups like a family trust or a firm that owns (or “hosts”) the insurance. The policy might cover the holder or the other person. The insured The person whose life is protected. The death benefit The sum that the insurance company will pay if the insured dies. The winners The persons or entities who will get the death benefit. It may all go to one person or be shared in portions with many different persons and groups. The policy’s duration The time during which the insurer accepts to give a death payout. This may be a fixed term or permanent insurance that lasts for the insured’s entire life as long as payments are paid. The premium Monthly or annual payments are required to retain the coverage in force. The monetary worth Permanent life insurance products, like full life insurance, contain a cash value factor that grows over time and may be paid out or lent upon. The term policy has no financial worth. How does a Life Insurance Policy function? Life insurance is a legal deal in which you pay money as a premium in exchange for insuring a huge safe sum. In the event of your tragic death, the insurer will pay a large sum to your family and dependents. Life insurance is usually only offered for a short time. Thus, if you die within this time frame, you are entitled to a death payment, also known as the amount covered. Yet, if you survive the time, you may be liable for a maturity bonus based on the kind of death benefit. On the other hand, whole life insurance policies are more inclined to pay the life insurance than the maturity benefit. Life Insurance Plans’ Advantages Life insurance policies are long-term investing and security plans that offer a range of benefits. Some of the key perks of life insurance policies are: Financial Safety A key advantage of every life insurance policy is that it gives financial stability to your family. A death benefit is offered in most life insurance plans. If you die within the policy’s term, your family members get a predetermined sum known as the sum insured. This assures that your families are fiscally secure even when you are not around. Forms a Savings Habit To make your life insurance coverage valid, you must pay regular sums called premiums. Your coverage may be revoked if you do not pay your premiums. Thus, by saving regularly, you instil a savings habit that will benefit you in the long term. Adds to Tax Savings The government has made various investment products tax-deductible to encourage saving and investing. One such tool is life insurance. Under Section 80C of the Income Tax Act of 1961, you may claim a tax credit of up to Rs. 1.5 lakh for the premiums you make in a year. As a result, you may benefit from both investment and tax savings. Reach Big Monetary Targets Most life insurance plans gain monetary value as time passes. Life insurance plans, such as ULIPs, have an investing part too. Your premium is put in tradable assets and gets a return. They grow over time into a vast corpus that may be utilised to fulfil aims such as your kid’s schooling, marriage, and so on. Wealth Safety and Sharing Life insurance policies are among the most secure long-term investment prospects. Thus, having life insurance means you may protect your money from taxation and inflation for a long period. This aspect means that a life insurance policy is a good tool for retired people to create long-term pensions. How To Pick An Insurance That Meets Your Demands A fact that you must know about the death benefit: the more time you wait to get it, the more costly it gets. Don’t put things off. If you can get a life insurance policy via your job, that’s a good place to begin. Life insurance is among the most vital monetary investments you can make. And, it’s worth your time to study all your choices to pick the best policy that best meets your needs. Talk to a financial expert you trust about your concerns. You may also receive an online rate using term life insurance calculators. If you are a salaried employee, taking benefit of your workplace perks may be a wise and cost-effective way to collect the financial security you need for yourself and your family. Call your human resources office to check your plan info and see how much death benefit you have offered to you. [B-02] Conclusion The cost of life insurance policy is set by your beneficiary’s monthly wages and outlays. You must assess your assets as well as your financial aims. It needs a full self-assessment of retirement assets and life aims. Experts recommend that you get a life insurance policy that is at least ten times your annual income. You may be certain that you have proper life cover for yourself and your heirs. You may be in danger if you do not get the right insurance policy. You can pay premiums that are within your budget. Before making a choice, check your current financial status. If you want to learn more about life insurance policies, visit Piramal Finance for related blogs and also explore their products and services.
08-11-2023
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Know More

People Having A 850 Credit Score: All You Need To Know About 850 FICO Score

A credit score of 850 is considered to be excellent by most standards. It means you have a great credit history and are a low-risk borrower. Having an 850 credit score can make getting approved for loans and credit cards easier and can help you get better interest rates. This article will discuss what FICO is, how is the FICO score calculated, and what are the benefits of a FICO score. And you will know which housing finance company is the best for taking any loan. So let’s jump right into it. [B-01] What Is FICO? Most people have heard of FICO, but few know what it is. FICO is a credit scoring system used by lenders to determine the creditworthiness of borrowers. Your FICO score is a numerical evaluation of your creditworthiness. It is a number that lenders use to evaluate your credit risk. Your score increases as your risk decreases. Several factors can affect your FICO score, including your credit history, credit utilization, and payment history. You can easily check your FICO score for free. What Do You Mean By FICO? FICO stands for the Fair Isaac Corporation. FICO scores come in three different varieties. Base Base FICO scores are the most commonly used. One of the three major credit bureaus estimates your credit score (Experian, TransUnion, and Equifax). Industry-specific Industry-specific FICO scores are used by some lenders to make decisions about applicants in specific industries, such as auto loans or credit cards. Customized Customized FICO scores are designed specifically for a particular lender and consider factors beyond your credit history, such as income or employment history. How Is The FICO Score Calculated? The FICO score is calculated using five main factors: payment history, credit utilization, length of credit history, credit mix, and new credit. 1. Payment history The most essential factor in determining a FICO credit score is payment history. Payment history includes on-time payments, late payments, collections, and bankruptcies. It accounts for 35% of the score. 2. Credit utilization The second leading factor, which accounts for 30% of the credit score, is credit utilization. Credit utilization indicates the amount of credit available you are using. Maintaining low credit utilization is essential because it shows that you’re not relying too heavily on credit. 3. Length of credit history This factor accounts for 15% of the FICO score. It is ideal to have a longer credit history. The length of credit history is crucial because it shows how responsible you are with credit. 4. Credit mix This factor accounts for 10% of the FICO score. Credit mix is the variety of different types of credit that you have. It’s good to have various credits, including credit cards, mortgages, and auto loans. 5. New credit This shows the number of new credit accounts you’ve opened in the past six months. It’s essential to keep your new credit accounts to a minimum because it shows that you’re not being responsible for credit. Why Is Your FICO Score Important? Your FICO score is essential for several reasons. If you’re looking to get a loan, it’s essential to have a good score. And even if you’re not currently looking for a loan, it’s still a good idea to keep your score high so you’re prepared for the future. The followings are some key points to remember: Firstly, It is one of the most vital factors lenders consider when considering a loan. A high score indicates that you’re a low-risk borrower, which could result in a loan with a cheaper interest rate. A low score could lead to a higher interest rate or loan rejection. Second, your FICO score is a good indicator of your financial situation. A high score means you’re managing your credit well and are on your way to a bright financial future. A low score could mean you’re struggling to keep up with your payments and could be in danger of financial problems. Finally, your FICO score is important because it’s used by many businesses to make critical decisions about you. For example, insurers may use your score to determine your premiums, or landlords may use it to decide whether to approve your rental application. What Factors Impact The FICO Score? Several factors can impact your FICO score, including: The amount of debt you have The types of debt you have Your payment history The length of your credit history What Is a Good FICO Score? Most people know that a good credit score is vital for getting loans and credit cards approved. But what is a good FICO score? The answer may surprise you – no “good” FICO score exists. FICO values range from 300 to 850 for the majority of people. Generally, a score of 700 or above is considered good, while a score of 800 or more is considered excellent. However, it’s crucial to remember that each lender has their definition of a good score, so it’s always best to check with them directly to see what score they are looking for. To get a good idea of where you stand, check your credit score report on any online banking platform. What are the Benefits of a FICO Score? It is essential to know what are the benefits of having a FICO score. So, let’s point out what the benefits are: You’ll have access to more credit products. You’ll likely be offered better loan terms, including lower interest rates and credit limits. You can save money on insurance premiums. You’ll generally have an easier time renting an apartment or getting a job. [B-02] Wind-Up There’s no magic number for a good credit score, but generally speaking, the higher your score is, the better off you’ll be. You can easily be eligible for better interest rates, terms, and conditions on loans if you have an excellent credit score. If you’re looking for a personal loan, then look no further, as Piramal Finance is a good option to finance money. The platform provides the best loan option as per your specific situation. They offer competitive rates on all loans, including those for people with bad credit, and help you through the entire process of getting a loan, from beginning to end.
08-11-2023
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