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Personal Loan

Is a Top-up Loan on a Personal Loan a Good Idea? 

Money borrowed for various miscellaneous purposes from money lenders is a personal loan. For example, you can use a personal loan for your dream wedding, home renovations, or consolidate debt. Moreover, different financial institutions like credit unions, banks, etc., offer personal loans at a lucrative rate. Personal loans satisfy unprecedented financial emergencies by giving access to instant cash. They are easy to avail, with minimum documentation. It does not require any guarantee. However, financial emergencies do not come announced. Hence, many borrowers need to learn how to arrange funds when they are already paying EMIs of existing personal loans. They do not have indemnity to get a secure loan. Such scenarios give them two options: a new personal loan or a Top-up Loan. [B-01] What is a Top-up Personal Loan? A Top-up Loan refers to an additional loan you can avail of on your current personal loan. Banks or other financial institutions offer this facility to lenders with a stable loan repayment record. Borrowers can apply for a top-up loan either in the same bank or transfer the balance to another bank and avail of a top-up loan there. Moreover, even the interest rate of a Top-up loan is either the same or slightly higher or lower than the existing loan’s interest rate. Eligibility For Top-up Loan The eligibility criteria for a Top-up loan are very simple. Here are the points to know. You must have an existing personal loan with the lender. Your age must fall between 21 and 60 years. You are eligible if you have repaid a specific part of your existing personal loan. You must have a stable job with sufficient income. You can club income from various sources to qualify for higher loan amounts. Lenders usually consider borrowers with good credit scores and histories. Points To Consider Before Opting For Top-up Personal Loan The Top-up Personal loan has many benefits over a new loan. However, you must know everything before making an informed decision. So here is what you should know about a Top-up loan: Your Power To Payback You cannot change the loan terms while availing of a personal top-up loan. Hence, it increases your EMI burden. Therefore, before taking a top-up loan, you should ensure that your income has increased. You should compare it to your income while taking the existing personal loan. Such calculation will help you pay increased EMIs on time. Also, it will acknowledge the future financial burden. You may have to go through this if there is no increment in your income. Rate of Interest The rate of Interest of a Top-up loan is the same as that of a regular personal loan. If you come across a lower rate in the market, opting for that offer is a more sensible decision. However, if you are not getting a better offer, you can always negotiate with the lender for an Interest rate. Besides, if the lender disagrees with the negotiation, opting for a new personal loan is a wiser option as it will reduce your monthly EMI obligations. Extra Charges Top-up Personal loan lender requires you to pay an additional processing fee, documentation charges etc. The amount varies for different lenders. Hence, get the information of additional charges beforehand and calculate how expensive the loan gets with these additional charges. Such calculations will help you determine the affordability of a Top-up loan. Also, it will play an instrumental role in planning. You can plan to continue with the existing lender or opt for another one. Term A Top-up loan is an additional amount given to you on an existing personal loan. Hence, the term of the top-up loan is the same as the current loan tenure. Let us consider a scenario where you already have a personal loan of X amount for three years. After one year, some other financial requirements come up. Now, you decide to take a top-up loan. After taking the top-up loan, you will now have to pay the EMI for your personal plus top-up loan in the remaining two years. Thus, a top-up loan does not allow you to extend your loan tenure. However, you can refinish your personal loan and change the terms. How is a Top-up Personal Loan Beneficial? Taking a top-up personal loan is beneficial because of the following reasons. The top-up personal loan interest rate is usually the same. Sometimes it’s 1% to 0.25% higher or lower than the current interest rate. The lender can waive processing fees. You can negotiate the interest rate depending on your relationship with the bank. You can get a top-up loan quickly and easily because the lender has already measured your repayment capacity. You are not required to submit extra documents if you take a loan from the same lender. The top-up loan term will be the same as your current personal loan. Hence, you can enjoy longer loan tenure by opting for a top-up loan at the earliest. How To Negotiate Top-up Loan Interest Rate You can negotiate for a personal top-up loan interest rate if you have a solid repayment history and a good credit score. A good credit score results from a good repayment history. Hence, ensure paying your dues on time. You should maintain a credit score of 700 or more. With this, you can always benefit from a lower interest rate from your lender. [B-02] Summing Up A personal loan benefits only when you have a finance requirement. Using it just like that can leave you in debt. A top-up loan is an extra loan you can avail of on the existing personal loan. It is an add-on for customers with an ongoing relationship with the lender. It is usually given to those with good credit scores and repayment ability. Thus, the top-up loan is beneficial against a new loan as it provides a better interest rate and tenure. Do you still need clarification on a top-up and a new personal loan? Then, take a bit of advice from experts at Piramal Finance. They will understand your requirement to lead you to a more beneficial solution.
08-11-2023
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Personal Loan

What is a Hybrid Flexi Personal Loan & Does It Affect The Credit Score?

A hybrid Flexi loan, also known as a Flexi personal loan, enables you to borrow cash up to a certain amount in the form of a credit line service. Under this type of loan, lenders charge the rate only on the amount you used, not the overall sanctioned amount. You may return the amount to the lender when you like. But, you must pay the rate constantly according to the lender’s terms. [B-01] Features of Hybrid Flexi Personal Loans Liquid Cash Availability If you take a hybrid Flexi personal loan, you get liquid cash at all times since you may withdraw from your loan sum many times. Component of Lower Rates People who take out a hybrid Flexi personal loan can save money on interest. The lender assesses the rate charges only on the amount withdrawn and until it is repaid. On the total sanctioned limit, the rate is not charged. For example, if Anurag has a loan of Rs. 10 lakhs but withdraws only Rs. 5 Lakhs, he will only pay the rate on the withdrawn sum until the loan is repaid. This results in a lower rate of cost. No Prepayment Penalties Hybrid Flexi personal loans allow you to pay back the loan amount when it is convenient for you without extra fees. Online Forms Are Available You may apply for this type of loan on the bank or lending firm’s official website. No Assets Needed You may get a hybrid Flexi personal loan from a lender without providing any assets as security Loans for Multiple Purposes Hybrid Flexi personal loan lenders are open to how you may spend the granted loan amount. As a result, you may use this loan to cover sudden health costs, finance trip plans, etc. Papers Needed for a Hybrid Flexi Loan Taking a hybrid Flexi personal loan requires the following papers: Identification: Aadhar card, Voter ID, passport, or driving licence Address Proof: Copy of Passport, Electricity Bill or Ration Card Tax Paid: Most recent Form 16/Income Tax Return Bank account records for the past three months. Photos in passport size. Eligibility Criteria of a Hybrid Flexi Personal Loan Hybrid Flexi loans are available to both salaried and self-employed people. The eligibility for obtaining this loan may differ between lenders and will be known by the person’s profile. While endorsing the credit limit for this loan, lenders may keep in mind many factors. This may include your age, income, job stability, and financial duties. Your credit score also affects your eligibility for a hybrid Flexi loan. A strong credit score, like 750 or higher, increases your chances of getting the loan amount. It may also increase the chances of obtaining a lower rate. Hence, you should always check credit ratings before applying for a loan and work to raise them if you fall below a certain threshold level. How to Get a Hybrid Flexi Personal Loan The following is a step-by-step guide to applying for a hybrid Flexi loan online: Go to the official website of the lender. Select ‘ Hybrid Flexi Personal Loan.’ This option is mostly found on the lender’s website under the ‘Products’ category. Once you’ve arrived at the Flexi Loan page, click the ‘Apply Now button. On the next page, enter all the needed info and apply. Certain lenders will enable you to submit the needed papers online via the site, while others will contact you to complete the process. The credit sum will be credited to your account after the lender has confirmed your form and papers. Does a Hybrid Flexi Personal Loan Affect Credit Score? Hybrid Flexi personal loans are very well-known and easily available, as the above sections show. But do these loans affect your credit score? Let’s discuss the factors that negatively affect credit scores. Failing to make timely payments on loans or debts. And making loan requests with different lenders. Having multiple loans in hand. These factors reflect poorly on your money management and negatively impact your credit score. So, a simple answer to this complex issue is to pay your EMIs on time and then take out loans. Things to Think Before Taking a Hybrid Flexi Personal Loan While obtaining a Flexi personal loan may appear to be a viable option when in need of funds, there are a few factors to keep in mind before applying for a loan: Rate of Interest Although the rate is only charged on the loan amount, you should compare rates quoted by many lenders. extra Fees While most banks that can provide Flexi loans do not charge a pre-payment fee, you should still check the lender’s other fees. These can affect the price of the loan. Examine Your payback Capability The amount you must repay will vary depending on how often you withdraw from your agreed loan amount. Still, you should check your payback capacity before accepting the loan. Make sure you can repay your EMIs because failing can harm your credit score. Lender Reliability It is critical to obtain loans from approved lenders. Check the lender’s reliability by looking at available customer service channels, online reviews, promptness in answering your questions, and so on. [B-02] Conclusion A hybrid Flexi loan is a type of personal loan with a pre-set limit set by the bank from which you can withdraw funds as needed. The lender sets the initial limit amount according to your credit profile. A hybrid Flexi personal loan can help you meet an immediate money need in an emergency. These loans come in handy during a money crisis. You must have a good credit rating to be eligible. Keep your documents close at hand to expedite the process. Check and compare the rates of different lenders. To learn more about personal loans, visit Piramal Finance for similar blogs and explore the products and services they offer.
08-11-2023
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Stocks Markets

Different Types of Stocks to Invest In

Stocks are the most profitable forms of investment if you know how to handle the risk that comes with the stock market. There are various types of stocks to invest in in the market, but not every type can be suited to your needs. The stock market is centralised and is a broad platform used by shareholders and investors for the stock exchange between public and private markets. Before investing in the stock market, you should get a brief idea about every type of stock and how it can be used in a fruitful way. [B-01] What are the Different Types of Stocks? Stocks can be divided into six different categories based on various features. Stocks to Invest in Based on Ownership Based on the ownership, stocks are further divided into four categories: Common Stock: Investors with common stocks in the company can earn from the company’s profit and have the voting rights to elect the board of directors. The price of the common stock is more volatile as they have the potential to earn their investors dividends that are not fixed. It is a risky investment but can give higher returns in the long term than the returns from other types of stock. Preferred Stock: Preferred stock also offers its investor ownership in the company but does not give voting rights. If the company closes down then preferred stocks are given preference over common stocks. Investors of preferred stocks get higher and fixed payments as dividends every year. Hybrid Stocks: By combining features of common and preferred stocks, you get the hybrid stock. Companies also offer preferred shares that can be turned into common shares after a fixed time. These are called convertible preference shares. Embedded Derivatives: Companies offer shares with embedded derivative options called callable and putable. Companies can buy back their shares at a certain time and price with the callable option. While with putable stocks, the shareholder can sell the shares back to the company at a certain time and price. Stocks to Invest in Based on Market Capitalisation Market capitalisation is the main feature of the stock market. You can divide the stocks to invest in the market based on their size. They can be divided as Large-Cap: The top 100 multinational or established companies come under the large-cap. These companies are stable in performance and offer higher dividends to their shareholders. They can handle tough market conditions as they are financially strong. This provides safer and more stable investments than mid-cap and small-cap stocks. Mid-Cap: Companies listed between 101 and 250 on the list offer mid-cap stocks. These companies are well-recognised and have constant growth. They are less predictable as they are often more sensitive to industry and economic trends. Small-Cap: All the other companies are considered small-cap. Some companies have higher growth potential, while others have unpredictable performances. Stocks from these companies mostly have a low price, which is the best way to get a profit when you are just starting in your trading career. Stocks to Invest in Based on Fundamentals Some investors believe in assessing the company’s finances before investing in their stocks. Investors compare the share price with the company’s value. There are two types of stocks based on fundamentals: Overvalued Stocks: These are stocks with a higher price, but the companies’ earning potential or intrinsic value is less. Undervalued Stocks: These stocks have a low price, but the company’s intrinsic value is high. Stocks to Invest in Based on Risk Some investors go for high risk to get great returns, while some go for lower returns by investing in low-risk stocks. Based on the risk that comes with the stocks, they can be divided into Beta Stocks: Investors analyse the risk associated with stocks by using statistical measures called beta. This helps to find the price fluctuations of the stocks to invest in. A stock with a higher beta comes with a higher risk of investment. Blue-Chip Stocks: If the company has a stable income, low liabilities, and pays dividends regularly, its stocks are called blue-chip stocks. These are the safest stocks. Stocks to Invest in Based on Profit Sharing When you buy a share in the company, you can get a share of the profits based on your investment. Companies share the profits in the form of dividends. A company can either directly share the dividends or invest the shared profit to grow its business. There are two types of stocks based on how the company shares the profit. Income Stocks: Like preferred stocks, income stocks provide stable and higher dividend payouts. Companies with strong finances that can share regular profits every year offer income stocks. Due to their regular profit distribution, these companies have steady growth and are seen as low-risk investments. Growth Stocks: Some companies reinvest their profits for the growth of the business instead of paying dividends to the shareholders. The price of the growth stocks quickly rises because of the company’s fast growth. Shareholders can earn higher returns in the long term by selling growth stocks. Stocks to Invest in Based on Price Trends Stock prices fluctuate in the stock market due to seasonal and economic trends. So, based on price trends, stocks are divided into Cyclical Stocks: The prices of these stocks fluctuate a lot as they react in sync with economic trends. If the economic conditions are positive and booming rapidly then cyclical stocks have massive growth and vice versa. Defensive Stocks: These types of stocks are not affected by poor economic trends. For example, stocks in FMCG companies, medicine, insurance, food, etc., are considered defensive stocks. [B-02] Conclusion Different types of stocks to invest in in the market can give you higher returns with low risk, high risk, or minimal risks. You can invest in any of them based on your preference. Just do basic research and analyse the stock market to get the best out of your investment. If you need professional help in investing your valuable money, you can consult the experts at Piramal Finance. Visit their website or give them a call to learn more about their financial products and services.
08-11-2023
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Personal Loan

Top Reasons to Know Why People Mostly Opt for Personal Loans

Personal loans are unsecured loans that can be used for many things, like big purchases, consolidating debt, paying unexpected bills, etc. These loans usually take between two and six years to pay back. They could take longer depending on your situation and how regular you are with payments. Here are some of the most common reasons why people get personal loans: [B-01] Pay for a new business Commercial banks often give specific business loans to companies that have been in business for at least 20 years and have a good credit score. Unfortunately, a new business can only get this kind of loan once it has been around for a while and has a good credit history. Because of this, many new businesses are now using personal loans to get their needed money. Medical expenses There are some costs that insurance doesn’t cover that come with medical emergencies. These costs can add up much faster than you might think, whether you have insurance or not. People often find that a Personal Loan is the best way to pay for these costs, such as those for dental and eye care, when they come up. Travelling Most of the time, a person can count on a personal loan whether they want to go on their dream vacation or need to travel quickly. If the borrower has good credit and a steady income, it would be easy for them to get a personal loan and start their trip whenever they want. Wedding festivities Traditional Indian weddings are very big parties. Due to the many religious rituals after the wedding, marriages can last between three to seven days. Hosting hundreds of guests for such a long time is a costly undertaking. There are costs for the clothes, decorations, gifts, photographers, and performers, among other things. No matter how well someone plans for this expensive event, things will always be added at the last minute. They will cost more money. Many people get a personal loan to get this money quickly so that the most important event in their lives can be celebrated with all their hearts. Moving charges Moving is often more expensive than people expect, whether they are just moving from one house to another in the same town or from one city to another. After all, you need to hire a moving company, put down a deposit on a new place to live, pay the broker, and do many other things these days. These costs can quickly add up, so many people who want to move bases use a personal loan to pay for the trip. Purchasing equipment Smartphones, gaming consoles, the newest laptops and desktops, home appliances, and many other things are now seen as needs instead of wants. Almost all the best banks in the country are eager to offer Personal Loans to meet the growing demand for high-end devices. More and more people are using personal loans to pay for their commitments and goals. But each borrower must remember that it is their job to pay the relatively high-interest rate. Also, it’s important to pay back the loan fully and on time so it doesn’t hurt the borrower’s credit score. Getting a better credit score People are also increasingly turning to personal loans to raise or lower their credit scores. People with no credit history or a low credit score can now apply for a personal loan. If they pay it back on time, their credit score will increase as expected. The Credit Bureau would think it was fine if you paid back your loan on time. But the length of your loan would help you build a long credit history. This would be to your advantage. A high credit score will help you in the future when you want to borrow more money, like for a house or a business. Debt consolidation This is one of the most common reasons people get personal loans, especially in the modern world where too much credit card use traps many people in debt. Personal loans have high-interest rates (11-22% per year). But they are still cheaper than credit cards. Credit cards have interest rates of more than 35%. Also, some people have more than one Credit Card bill to pay each month. It could be hard to keep track of each card’s billing cycle. In these situations, combining all of your debts into one loan and paying them off with a personal loan is a better option. This is cheap. It also saves you time. This choice also helps the borrower’s credit score, in the long run, making it a win-win situation. Financing a car A personal loan is one way to pay for a car, boat, RV, or even a private jet. There’s also one way to pay for the car if you’re not buying it straight from the manufacturer. With a personal loan, for example, you could buy a used car from another customer without having to spend all of your money. For a vacation Everyone needs a vacation. Sometimes people are not able to take a vacation because of financial problems. A personal loan for travel is the way out. Once you’ve had a break from your normal routine, you can choose a time to repay the loan and stick to it. [B-02] Conclusion Personal loans can be used for just about anything. This is why they are called “personal.” Always remember that the loan will need to be paid back at some point, no matter what. You borrow the money when you get a personal loan to pay off credit cards or plan the perfect wedding. You must pay it back, plus interest, when the loan is due. Personal loans are a great way to pay for big purchases and get rid of multiple debts at once. However, you should still be smart about how you use them. You can go to Piramal Finance to get more information about personal loans.
08-11-2023
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Personal Loan

Most common reasons for people to apply for small personal loans

Your financial requirements arrive when you expect them the least. In reality, you may require money while you are least prepared for it. Before, such situations required that the consumer goes to the moneylender. Personal loans now cover all personal financial needs. A personal loan is utilised to be a quick solution and does not require any security such as jewellery or the property of a home. You may be searching to apply for a loan for various reasons. Whatever the need, receiving a personal loan is simple. [B-01] Personal Loans Personal loans are often unsecured, which means you are not required to provide security if you fail to repay the loan. If you take out an unsecured loan and do not repay it, a creditor has nothing to seize, yet there are still consequences: Your credit score may suffer as a result, and your loan may become delinquent. On the other hand, secured loans need collateral, such as your home in the case of a mortgage or your car in the case of an auto loan. If you fail to repay a secured loan, the lender may seize your property. Loans without collateral decide your eligibility using your credit point total and credit record. Unlike home and car loans, personal loans do not require you to spend money on certain goals. Instead, as long as you adhere to the terms of your loan agreement, you may use a personal loan for almost anything. Six Considerations for a Personal Loan Personal loans may be used to cover practically any need—within reason and in compliance with the loan terms. The cash cannot be utilised for illegal activities, gambling, or higher education costs in most cases. Here are a few convincing reasons to apply for a personal loan. 1. Financial Assistance in an Emergency A personal loan may be obtained if you want money right away to fulfil bills, an unforeseen emergency, or anything else that demands prompt attention. To apply for a personal loan may be used to cover unforeseen expenditures like: rent and utility payments medical costs funeral expenses unexpected vehicle maintenance 2. Debt Consolidation A personal loan might help you consolidate debt, especially credit card debt. It’s also a typical cause for people to apply for a personal loan. Personal loans often feature cheaper interest rates than credit cards, especially if you have strong credit. Interest rates on the best personal loans may be as low as 4%, which is far lower than the double-digit percentages charged by most credit cards. You may take out a personal loan, pay off your credit card bills, and then make a single payment to your new personal loan business. 3. Home Improvements and Repairs If you own your home, you may be able to utilise a home equity loan to repair or improve it. You might, however, get a personal loan. Home loans and credit lines are great for funding property repairs, but they are secured and rely on the value of your home as collateral. Keep in mind that as a consequence of Covid-19, several lenders have tightened their lending standards. If you don’t want to risk losing your home if you fall behind on your payments, a personal loan is a great option. A personal loan may also be simpler to get than a home equity loan. 4. Price Changes If you’re moving close to where you presently live, you may not have to pay any significant charges. If you are migrating out of state, you may want extra dollars to meet relocation costs. Moving a long distance entails paying for the expense of packing your stuff, maybe hiring movers, and moving your belongings to your new place. A personal loan might also help with looking for a new place to live. If you find an apartment, for example, you may be needed to pay the first, last, and security deposit. You could also want finances to furnish your new home. 5. Vehicle Financing Auto loans, as well as personal loans, are available whether you wish to buy or lease a car. Despite having lower interest rates than personal loans, auto loans are secured loans that use your automobile as collateral. If you are worried about missing payments and having your car repossessed, a personal loan may be a better option for you. 6. Wedding Expenses We do not recommend getting a loan to pay for a wedding. Consider decreasing your demands to suit your budget rather than increasing your spending to meet your aspirations. However, if you do need to borrow money, you have many options, including credit cards and personal loans. Credit cards often charge higher interest rates than personal loans. Using your credit card to get a cash advance may result in high-interest rates and fees. A personal loan is a less expensive option if you need money to pay for a wedding. When shouldn’t you get a personal loan? While applying for personal loans might be a lifesaver in times of great need, there are a few instances when you should avoid borrowing money. Consider not getting a personal loan if you: You cannot afford it. Borrowing money in the short term is one thing, but remember that you will still have to repay it. If you cannot make the monthly payments on your new personal loan, consider cancelling it. You don’t need it. Consider delaying a personal loan to pay the cost of a vacation or anything else you don’t need right now until you have more cash on hand. There are better options. For instance, for home modifications and repairs, a home loan or credit line may be a better alternative. An auto loan may assist you in saving money on a car or other vehicle. [B-02] Conclusion Consider all of your options before applying for a personal loan. Borrowing money is not something that should be done on the spur of the moment. Instead, evaluate your financial situation to see if a personal loan is the best alternative for you. To know more about such types of topics visit Piramal Finance.
08-11-2023
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Cards

How Long Does it Take to Get Approved For a Credit Card?

A credit card in hand is a life-saver in need. Credit cards are the financial tools that give purchasing power. If you are new to credit cards orin an emergency for funds, read this article fully. This will give you complete knowledge of credit cards and their period of approval. [B-01] What exactly is a Credit Card? A credit card is a type of credit that is provided by banks and other financial institutions. Individuals can use funds from the credit card within the pre-approved credit limit. The credit limit will be fixed by the lender before issuing the credit card. With the credit amount, you can make cashless transactions on goods and services. The amount fixed for a credit card is based on the person’s eligibility. The lender will charge interest for the amount that you borrowed. In short, a credit card is like a short-term loan. You borrow and pay later. What are the factors considered to get a Credit Card? These are a few common factors that are considered while applying for a credit card. Employment status: This is the prime factor in getting a credit card. The lenders will hardly provide a credit card for an unemployed person. This is because of their inability to repay. You can either be a salaried or a self-employed individual. Credit (CIBIL) score: This is the prime factor that is considered in applying for a credit card. CIBIL Score is a three-digit number indicating a credit history. The scale ranges from 300 to 900. It is always advised to have a minimum score of 700 to avail of a credit card. If you have a low score, it is possible to increase your CIBIL score. Better to check your credit (CIBIL) score than to bleed later. Financial discipline: The lenders will see your past repayment history for a credit card. This will make your profile low-risk. Age: The lenders (banks) will consider your age as a factor. It is subject to change for different institutions. The minimum is your age, maximum will be the chance for you to get a credit card. A good relationship with the lender: Transactions and positive financial records with the lending institution matter. This will increase the trust in your repayment. The reputation of your organisation: The reputation of your organization plays a major role. If you work in a well-known company, the chances for your credit card will increase. How long it takes to get approved for a Credit Card? You can apply for a credit card both online and offline. The actual process of filling out the application takes time. Once you are done with that, the formal approval online takes only 2 minutes. But the time required to get a credit card in your hand may take a few days to weeks. This is completely based on the lender and the personal credit history. During that period, the creditors (lenders) will check for eligibility from their side. In some cases, the lender may send a letter or an email and request additional information, if any. However, applying for credit cards online will be quicker than the offline process. This is because the time for standing queues, countless documentation, and others will be eliminated. Note: It is always advised to check your eligibility before applying from the lender you are choosing for a credit card. Lenders like Piramal Finance will be trustworthy and legitimate and can be chosen without a second thought. This will make the process of approval quicker. What are the benefits of having a Credit Card? Wide acceptance: This is the most practical benefit that you could reap from credit cards. Credits are widely accepted on an international scale. You can carry it and make payments irrespective of geographical boundaries. Rewards and offers: The best credit card lenders in the market will never fail to surprise you with your credit cards. It may include discounts on shopping, ticket booking, travel, etc. Sometimes, you will also get exciting offers like travel insurance and cashback. Some lenders will give you lifetime reward points that can us used later. Cashless transactions: Carrying cash may bother you due to several reasons including theft. With a credit card, you no need to worry much. Just take a card and go cashless. The payments are also made hassle-free and with ease. Flexible usage: Credit cards, unlike educational loans, vehicle loans, and other specific loans, are flexible in their usage. This is because the credit limit assigned to you can be used for any specific purpose. It may be your festive day or even an emergency. Improves Credit (CIBIL) Score: A credit score is not only important for a credit card but also for other financial activities. When you repay the amount that you borrow from a credit card without delay, your CIBIL Score will rise. [B-02] The bottom line We hope that you understood Credit Cards, their approval, and their benefits. It is always advised to check the eligibility beforehand. This will help you avoid the eleventh-hour rush. Credit cards can also make or break your credit score. So, keep an eye on the balance and the due date for payment. Never fail to choose the lender who gives credit cards at comparatively lower interest. Piramal Finance is the answer in this regard. Our team of experts will guide you through every doubt and decision of yours.
08-11-2023
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Personal Loan

What is a Pre-Approved Personal Loan, and How does it Work in India?

There are times when you may need extra money to take care of some expenses. In situations like these, getting a pre-approved personal loan is the correct choice. Several banking and non-banking financial institutions offer pre-approved personal loans to customers already engaged with them. Such a loan requires minimal paperwork and usually has a lower interest rate. There are two types of loans in India, secured loans and unsecured loans. The former requires collateral, while the latter does not. A pre-approved personal loan is an unsecured loan. This makes it the ideal choice. You may wonder about the details and how you can get one in India. Read this article to know more about it! [B-01] What do you mean by a pre-approved loan? A pre-approved personal loan is given instantly to meet the financial requirements. It is best for those in need of money on an urgent basis. It is given to loyal customers of banks and financial institutions with a good credit score and timely repayment of loans. It is an unsecured loan offered without collateral. A pre-approved personal loan can help customers get loans with minimum documentation. The interest rates are generally low. They differ from one bank to another. Banking and Non- Banking financial institutions use these loans to promote and increase their sales. What are the features of a pre-approved loan? A pre-approved personal loan is given at the discretion of the bank or the financial institution you are approaching. The features of a pre-approved personal loan are: 1. Quick disbursal The loan amount will be disbursed to the account once all the work is done. You being an existing customer of the bank or any non-banking financial institution gives you this benefit. 2. Less paperwork Getting a pre-approved personal loan is a hassle-free process, and the paperwork involved is significantly less. The documentation is light and easy to manage. 3. No need for collateral It is an unsecured loan. So there is no requirement for collateral or security. The loan is given instantly. 4. Flexible repayment tenure The repayment is made monthly by EMIs. The standard time of repayment is 12-60 months. This makes the entire process of repayment very flexible. 5. Additional charges Certain charges need to be paid during the tenure of a pre-approved personal loan. These are processing fees, security fees, etc. These charges vary from institution to institution. What are the eligibility criteria to get a pre-approved personal loan? The eligibility criteria are basic to avail of this facility. The following criteria need to be met: You should have a relationship with the bank as a customer. Your credit history must be remarkable. If you have taken any loans previously, they should have been repaid on time. Sometimes the banks provide these loans to new customers. Having enough savings in your account and a regular source of income can get you this loan even without a credit history. Pre-approved loans do not require a very thorough assessment compared to a regular loan facility. How can one get a pre-approved loan? As already mentioned, getting a pre-approved personal loan is an easy process. Here are some steps to follow while applying for a pre-approved loan: The first step to getting a loan is checking whether you are eligible for a loan. You can check the eligibility with the bank or via your net banking account system. The next step is to fill out a loan application form. This can be done either offline or online. You can submit the forms to the bank or through the net banking app. You can choose the amount you need for the loan. You can also choose the repayment tenure according to your suitability. Once the bank has completed the entire process of verification, it will transfer the loan amount to the bank account. There can be a chance that the NBFCs or the banks require additional documents. These could be salary slips, employer details etc. You can provide them with that if needed. What is the maximum amount of pre-approved personal loan you can get? The maximum limits are different for each bank and financial institution. The maximum limit for a few banks like HDFC Bank, SBI Bank, Axis Bank, and Bajaj Finserv is Rs. 25 lakh. Moreover, banks like ICICI offer up to Rs. 50 lakh as their maximum limit. If you want a pre-approved loan, ensure that you have excellent records. It would be best if you had a high credit score, a good repayment record, regular income, and a decent amount of savings in the account. Always check the charges levied during and after the pre-approved personal loan. It is best to research and compare different features of banks and financial institutions. What are the benefits of a pre-approved loan? The features of pre-approved loans are beneficial. Therefore, the benefits of a pre-approved personal loan are as follows: 1. Fast funding When you need money urgently, these loans can be of great help. The amount will be disbursed into your account as soon as the eligibility and verification are done. 2. Low-interest rates It helps if the bank knows you are eligible and have a good track of repaying loans with a remarkable credit history. They will offer competitive interest rates. It can be a great advantage to getting low-interest rates on loans. 3. Scope for negotiation Negotiation is a method for the bank to promote. So you can negotiate with the bank. You can adjust the terms and conditions strategically. 4. Minimal documentation If you are already the bank’s customer, you need not worry as the bank already has your details. This makes the paperwork much less and the process relatively easier. In most cases, you just have to fill out the form. The bank will do the rest. 5. Choose the repayment tenure. The repayment tenure is flexible in the case of a pre-approved personal loan. Depending on your financial situation, you can choose between 12-60 months. [B-02] Conclusion Banks provide pre-approved personal loans to customers to increase their sales. Further, the banks also provide significant discounts on interest rates, EMIs, etc., on pre-approved offers. All this can prove to be advantageous if chosen rightly. A pre-approved personal loan can be the way to get the financial support you need. You can avail of a personal loan from banks and non-banking financial institutions. Piramal Finance is an Indian financial services company making its foray into retail lending. This includes personal loans. Personal loans can be used for any personal work. Piramal Finance understands this. It provides hassle-free personal loans with zero pre-payment and foreclosure charges. If you are looking for a personal loan, contact Piramal Finance now.
08-11-2023
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Personal Loan

Personal Loan – A step-by-step guide to get an affordable interest rate

Low-interest personal loans are the best way to deal with any urgent financial needs. With a personal loan, you can pay for anything you want, from your child’s wedding to a trip with your partner. But it’s vital to get a loan with the best rate possible. This will make it easy for you to pay back what you owe. So, it is crucial to find the best interest rate. How can you get a personal loan with the lowest interest rate? You should think about getting a personal loan from a bank, credit union, or online lender. These unsecured debt products can help you get over a financial hump, pay for an unexpected expense, pay down debt faster, or buy something big. Key details related to this are mentioned below. [B-01] What do you need to know before you apply for a loan? Before you apply for a personal loan, make sure you have all the paperwork and information you need. If you do this, you’ll be able to move quickly through each step of the process and get your money as soon as possible. Some of the things you might need: ID Proof. Passport-size pics. Proof of income like bank statements, and tax returns. Information about your employer. Proof of residence. Here are some ways to get the best interest rate possible on your loan. Good Credit Score: Your credit score shows how responsible you have been with credit in the past. If your score is over 700 or 750, you should be able to get a personal loan. Based on your credit score, lenders decide how much you can borrow, how you’ll pay it back, and how much interest you’ll pay. If you have a higher score, you have more power when it comes to making deals. Compare Between Lenders: To find the best personal loan, you have to do some research. Compare the different companies that offer personal loans to find the one with the best interest rate and most features. This will take some time, but it will help you choose the best option. Online, you can find out if you qualify for a personal loan and apply for one. Personal loans can be approved right away, and the money can be sent to your account in as little as 24 hours. Check out seasonal deals: Lenders usually let customers know about special deals through SMS and email. You need to keep an eye out for these deals if you want to pay less for your loan. You can get discounts on the interest rate for a limited time with these offers. Most of the time, you can get these discounts if you apply online during the holidays. Use your professional credentials: If you make a high salary and work for a well-known public or private company, the lender will see you as a stable candidate. So, use this to your advantage when trying to get a lower interest rate. If your business has a good reputation, you may be able to get a lower rate of interest because the lender knows you will be able to make payments on time. Learn how to fill out an application A personal loan is one of the things you can get the quickest. But it’s important to know exactly how a personal loan works. This makes it less likely that someone will get confused or make a mistake along the way. Here’s an example: Step 1: Use the basic information to see if you are eligible. Step 2: Choose the amount you need and the EMI plan that works best for you. Step 3: Link your bank account and do a one-click KYC to get the money in your bank. If you get stuck, talk to someone who knows what to do. You can also go to the lender’s website to get an idea of how the process works so that you can do it on your own. How do you know if you can get a personal loan? Here are the main things you need to be able to do to get a personal loan. ● The borrower needs to be between the ages of 21 and 60. ● The borrower has to be a citizen of India and live there. ● The borrower must have a job with a company or government department. ● The borrower must make at least Rs. 25,000 per month. What do people do with personal loans? Customers can use personal loans for any reason they want. But knowing some of the most common reasons why people get personal loans might help. People get personal loans for a variety of reasons, like to pay for big purchases like a car, bike, or home electronics, to fix up their homes, to pay medical bills, to combine debts from different sources, or to grow their businesses. These vary based on what people need and how much money they have. There are no restrictions on how they can be used, so the borrower is free to spend the money however they want. [B-02] Summing up A personal loan is a flexible way to get the money you need to take care of your own needs when money is tight. They should be borrowed if you need money for an emergency. Personal loans are becoming easier to get because lenders are coming up with different ways to make them work. Personal loans can be applied for online or in person. The necessary information is mentioned above. Make your decision wisely. Borrowers ought to always carry out their research. Also visit, Piramal Finance for more in-depth, educational articles related to personal loans. They also provide great personal loan offers at low-interest rates.
08-11-2023
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Personal Loan

Different Benefits of Obtaining a Personal Loan Quizlet You Need to Know

Personal loans could be a good way to get extra cash when you need it. For example, you might need money in an emergency, or to pay for a wedding or other big event. Personal loans can help in these and a lot of other situations. If you want to know how personal loans can make your life better, here are some examples. [B-01] What is an unsecured loan? Personal loans are one-time amounts of money that a bank, credit union, or online lender give to a borrower. The borrower can pay it back in fixed payments. These payments cover any fees and interest that need to be paid. Customers can choose between loans with or without collateral. In the first case, the borrower has to put up collateral as security for the loan. What’s good about personal loans? One of the best things about a personal loan is that it is quite flexible. Personal loans can usually be used for almost anything. The money can be used in any way the borrower wants. This could be starting a business, paying for a wedding, or even paying off debt. They stick to set payment plans When you apply for a personal loan, the length of the loan and the interest rate are set. When you have a fixed amount to pay, it’s much easier to plan your money. Payments on personal loans are much more stable than payments on credit cards. Payments in credit cards change every month based on how much you charge. They cover unexpected bills without eroding funds Life happens, and sometimes you need money in an emergency. You could spend your savings on something like a new appliance, car repairs, or medical bills. This could be a problem because it could lead to extra costs in the future that you didn’t plan for. You can use a personal loan to help pay for necessary expenses while still having some money left over. Personal loans can be used for many different things: Paying quickly In three to four weeks, a home loan is paid out. On the other hand, it only takes 24 to 72 hours to get a personal loan. They are the best way to get cash or make a payment when you need it quickly. To get your loan quickly, however, you must be eligible and have a good credit score. Tax advantages Depending on how you use the money, you can use your personal loan to get tax breaks. Under Section 24B, you can deduct up to Rs. 2 lakh from your taxes for the interest you pay on a loan during a financial year. This is if you use the money to fix up your home, build one, or pay a down payment for one. However, different ways of using it mean different rules to follow. Raises your credit score If you want to improve your credit score, an unsecured personal loan could be helpful. Personal loans could improve your credit mix, the length of your credit history, your credit utilisation ratio, or the number of different types of credit you have used. When you first get a personal loan, your credit score may drop for a short time. But your credit score will go up if you make loan payments on time. But you need to be careful. If you already had good credit, you might not have been able to get a personal loan with a very low-interest rate. High APR and fees could make it impossible for you to repay the loan. This can hurt your credit score overall. Remember that your credit score will only go up if you can make your monthly payments. Combine high-interest debt You probably pay a lot of monthly interest if you have a credit card balance. If you have more than one credit card with interest, it’s even harder to get ahead of your debt. With the help of personal loans, you can handle your debt well. You can get the money you need to pay off your credit card debt through a personal loan. With this, all of your debts are rolled into one. You get a fixed monthly payment and a deadline for paying off the loan in full. Also, the interest rates on personal loans are often lower than the interest rates on credit cards. This lets you pay off your debt faster. You save money in the long run. When you apply for a personal loan, the length of the loan and the interest rate are set. When you have a fixed amount to pay, it’s much easier to plan your money. Payments on personal loans are much more stable than payments on credit cards. Easy to track and manage You can get a personal loan more easily than a larger loan made up of several credit cards. Different loans usually have different interest rates, due dates, and rules about how to repay the loan. It’s much easier to get a single loan for the whole amount and pay it back to a single lender. Predictable repayment schedule Personal loans are called “instalment loans” because they are paid back over time. So you’ll know how long you have to keep making payments. With fixed-rate personal loans, your interest rate won’t change during the loan, so you’ll always know how much it will cost. [B-02] Conclusion Most other loans are personal loans in some way. Contact a bank or lending company to get the same thing. Next, give the lender all the paperwork they asked for. The bank checks that the information you give is true. It also checks your credit before making a loan offer. Once you accept the offer, the lender sends the loan amount to your bank account so you can use it however you want. The loan must be paid back in equal monthly instalments (EMIs). The payment amount is based on the loan amount, the interest rate, and the length of the loan. For more information about the benefits of getting a personal loan, go to Piramal finance right now.
08-11-2023
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