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Personal Loan

The process to get a personal loan to buy a second-hand car in India

Having a car of your own is probably one of the best experiences you will ever have. It is still a dream come true experience for many people because of high financial requirements. However, getting a car, be it second-hand, is difficult without any financial assistance. In such cases, people go to apply for loans to help them accomplish their needs. Since buying a second-hand car is a personal requirement, you can go for a personal loan. A personal loan can help you cover all your personal needs without putting much financial burden on your monthly budget. It is one of the most popular loan options that can touch upon a variety of subjects like buying a car, or a house, funding higher education, making a down payment, or even financing a wedding. Personal loans are also easy to apply for and can be quickly sanctioned to borrowers. Do you want to buy a secondhand car using a personal loan amount? Then Read on to answer all your queries related to personal loans. This will help you know about personal loans, their eligibility, papers, and the process to get a second-hand car. [B-01] Personal loan: What is the meaning of a personal loan? A personal loan is a financial aid that you get from a lender to meet your financial requirements. The lender can be a conventional source like a Bank or an NBFC or even a private financier. You will be charged with a rate of interest which you have to repay within a tenure. You don’t have to pay the total amount of the loan upfront or make any down payment. You will only be required to repay the debt through the EMI. Since personal loans are unsecured, you don’t require an asset like a property or shares to pledge to get a loan amount. You can apply for it and get sanctioned even if you do not have collateral. The loan amount is often high so that you can easily cover your needs and still not experience any financial burden. There is high flexibility in terms and conditions to help you have the liberty to choose the best for yourself according to your goals and requirements. Now that you have known the meaning and significance of going for a personal loan, it is time to know about some of its features. What are some of the exclusive features of a personal loan to buy a second-hand car? There are several features of a personal loan which make it stand out from all other types of loans. Rate of interest Even if a personal loan is an unsecured form of loan, you still are charged a higher rate of interest, provided that you are creditworthy to the lender. Banks and NBFCs charge an interest rate of about 10.45 per cent per annum to 24 per cent per annum on personal loans in India. The interest rates solely depend on your credibility, credit score, and financial muscle to repay the loan. Disbursal The disbursal period on most personal loans is often within a day to ensure that the borrower doesn’t face any delay. Documentation The documentation requirement is also minimal to avoid unnecessary paperwork and prevent any type of delays just asked to show some basic documents like your KYC details, income proof, etc. Loan amount The loan amount sanctioned on most personal loans is also high, ensuring that the borrower gets to accomplish the requirement. The loan amount ranges between Rs. 20 lakhs to Rs. 30 lakhs and sometimes, can even go up, as high as Rs. 40 lakhs. Tenure Tenure is another factor which is very important when choosing a personal loan. The tenure of repayment on most of these loans ranges between 12 months to 60 months and in some cases even goes up to 84 months. This gives you the liberty to choose the best for you and plan your finances accordingly. Eligibility to buy a secondhand car using a personal loan. The eligibility criteria to get a personal loan to buy a second-hand car are easy and basic. You need to belong to the age group of 21-60 years to get a loan for a second-hand car. You must be either a salaried individual or a self-employed person, holding a work experience of about 1 to 3 years. You should have a decent credit score to get a personal loan for a second-hand car, usually 750 or more. In addition, you need to show some documents like your Photo ID, signed application form with 3 passport-sized photographs, residential proof, and income proof. How to get a personal loan to go for a second-hand car? Most people buy a pre-owned car for two reasons, either to learn to drive or if they are experiencing any financial burden. In both these cases, you can go for a personal loan to have a second-hand car at a decent interest rate. Before you apply for a personal loan to buy a secondhand car, you should at least have a decent credit score (750 or more), and a stable income. You should be able to arrange all the required documents beforehand and understand the mechanism of financing at a dealer to get a better offer. Moreover, you should try to make a down payment, as much as you can, to avoid higher interest rates on finance. [B-02] Wrapping it Up A second-hand car is the best choice for you if you are going through financial troubles or you want to learn how to drive. In both these, cases, you need financial aid that is going to help you have a second-hand car. So here, a personal loan comes to your rescue which you can get at a lower interest rate. But, before applying for it, you should make sure that your credit score is up to the mark, you qualify for the eligibility criteria, and you are capable enough to make a down payment. If you want to know more about personal loans and want to apply for them, you should visit Piramal Finance.
08-11-2023
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Personal Loan

How Can You Use Saving Account To Get Personal Loan?

Personal loans are among the best loan options in India today. To begin with, they can be used for almost any purpose. For instance, you can use a personal loan to go on a vacation or to cover an unexpected medical expense. They are also unsecured. So, you don’t have to offer something to the lender as collateral to avail of a personal loan. Generally, personal loans are paid back over a set term. This can range anywhere from two to five years, depending on the financial institution you borrow from. Additionally, based on your creditworthiness, you get various interest rates, tenor, and principal amount to choose from. However, did you know you could use your savings account to get a personal loan? If not, here’s more on this topic. [B-01] What Is A Savings Account? A savings account is an essential financial product that everyone must consider. It allows you to keep your money safe and earn interest on it. While the interest isn’t very high, it is still better than nothing. Unlike a fixed or recurring fixed deposit account, a savings account is where you can store your money for short-term needs. For instance, you can park part of your money in the savings account as an emergency fund and withdraw it whenever you want. Before opening a savings account, you must do your research. Learn about the interest rates offered by various financial institutions, minimum and maximum balance requirements, service charges, etc. This will help you land the best option and secure your financial life in the long run. How Can Savings Accounts Help With Getting A Personal Loan? If you have a savings account at a specific bank, availing of a personal loan from them becomes easier. The logic behind this is simple. When you open a savings account, you entrust the bank with your money. You offer them control of your funds and have them take care of your financial needs. Now, the bank appreciates your confidence in them and repays you through assistance during a financial crunch. This is often in the form of personal loans. Since you have a history with the bank, you are eligible for a personal loan with a quick turnaround time, lower interest rates, and minimal documentation. In most cases, the bank might pre-approve you for a personal loan. So, all you got to do is complete an application form digitally to get the funds credited to your savings account. What Are The Other Benefits Of A Savings Account? While there are several benefits, listed below are the top benefits of having a savings account. Liquidity One of the major benefits of keeping your funds in a savings account is liquidity. Unlike a fixed deposit, a savings account gives you complete access to your funds. You can deposit or withdraw money anytime and from anywhere you want. Furthermore, the debit/ATM card that comes with the savings account makes shopping and paying bills easier, both online and offline. Interest Though not high, most banks offer an interest rate of 2.5 to 7 percent on savings accounts. So, make sure you research the various financial institutions and the interest they offer on savings accounts before narrowing down on an option. Safety Unlike keeping your money at home, storing your money in a savings account is safe. This is because the bank takes complete responsibility for your funds. The Reserve Bank of India (RBI) has put stringent regulations in place to ensure the safety of money placed in banks. So you can be worry-free. Additionally, most banks offer deposit insurance. This can range anywhere from Rs 1 lakhs to Rs 5 lakhs. Online Transactions Currently, most banks have a net banking portal or a mobile app. So, fund transactions, making deposits, requesting a chequebook, etc., are more convenient than ever. Furthermore, people who are extremely careful about their spending habits can use the bank’s online portal or mobile applications to track their expenses. International Debit Cards Several banks these days offer chosen savings account holders free international debit cards. It can be an excellent option for people who study or work abroad. The debit cards can be used to withdraw cash from ATMs abroad without paying additional charges. How To Open A Savings Account? Opening a savings account is easy. You can visit your nearest bank branch or complete the application online. Regarding the eligibility criteria, the account holder must be 18 years of age or older. Nonetheless, many banks these days offer savings accounts customized for minors (children below 18). Such accounts can be managed by kids independently. However, parents can choose to supervise the account activity. That being said, here are the documents required to open a savings account. Identity Proof—Voter ID, Aadhar Card, Passport, PAN Card, Driving License, etc. Residence Proof—Electricity Bill, Water Bill, Telephone Bill, Gas Pipeline Bill, Property Tax Bill, etc. Photographs [B-02] Final Thoughts On Savings Accounts And Personal Loans On the outside, all savings accounts may look the same. However, if you take a closer look, you will see that they differ in various aspects. For instance, some banks might offer savings accounts with a higher minimum quarterly balance requirement but a higher interest rate too. Other banks may offer a lower minimum quarterly balance requirement and a lower interest rate. As a responsible consumer, you must analyze all the aspects and choose the most ideal savings account. Essentially, weigh the pros and cons and keep your financial goals in mind when comparing. Because, at the end of the day, how well you maintain your savings account and meet the requirements will impact your eligibility for a personal loan. So, it is good to be on the safer side right from the beginning. Lastly, check out Piramal Finance’s personal loan page if you are looking for a personal loan. Loaded with perks, this might be the one option that could put an end to your search.
08-11-2023
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Tax Savings

Old Vs New Tax Regime – Which One Should You Choose?

The tax brackets for both the pre-2020 system and the post-2020 system were left unchanged by the Union Budget of 2022. Now, how can a citizen choose between the old and new tax systems? A thorough evaluation of the taxpayer’s tax burden and other considerations is necessary for settling on the most advantageous regime. Before settling on any tax regime, taxpayers should think about a few key factors. There is uncertainty about which tax system is best for you because of the introduction of a new one. You are a taxpayer. So you may have trouble deciding which regime is a better option for your income situation. An inquiry comes in this context: how do you make a living? Do you have a regular 9 to 5 job, do you manage your own business, or do you work in some other kind of profession? Many of you are probably attempting to figure out how much of a difference there is between the old tax and the new tax because of the changes in current sections. There is no one-size-fits-all strategy for taxpayers. But this article will help you know which of the new and old tax regimes is more advantageous for your particular financial situation. [B-01] Advantages of the New Tax Regime Expense reductions Income beyond INR 15,000,000 is subject to the highest tax rate under the new regime’s seven tax brackets. This ranges from 0% to 30%. Incomes over INR 10 lakh were subject to the highest tax rate of 30 per cent under the old system. However, under the new system, there is just one tax bracket of 0 per cent. The rates under the new tax regime are more lenient than those under the previous, old regime. As most exemptions are unavailable, there is less paperwork involved and filing taxes is easier. An investor might not like being forced to invest in the required schemes for the full term Every taxpayer will be given the same treatment under the new system. Most investments do have a lock-in time, before which they can’t be withdrawn. This can be useful for those taxpayer groups that do not have the defined modes of investment. Mutual funds, open-ended schemes, and deposits offer them attractive yields and withdrawal flexibility. Liquidity Increase The lower tax rate will result in greater money for the person, who is currently unable to invest in the schemes for various reasons. Flexible investment options Under the current tax system, investments can be made specifically for the investor as tax deductions. This can be done only if the taxpayer invests in the plans and the manner prescribed by the Act. So the taxpayer is restricted to making investments in just the approved programmes. The new method gives taxpayers more freedom to customise their investments to meet their individual needs. The disadvantage of the New Tax Regime: The new tax structure does not permit the taxpayer to make use of certainly available deductions. Perks Of The Old Tax Regime Over time, the old tax regime instilled a culture of savings in individuals. This was done by requiring them to make deposits in tax-saving schemes for making money for major life events like marriage, schooling, buying a home, medical expenses, and so on. Disadvantages of the Old Tax Regime: Investments qualify for tax breaks under the former regime, and a lock-in period of three to five years is fixed for most of these schemes. People who would rather have access to cash and invest in securities with a more fluid and open-ended tenure may find this tax strategy less than ideal. The investor is limited to the defined schemes. These are generally low-risk and may not give big returns during the investing period, even though they may be doing well. How to decide between the old and new tax structures? There are two key distinctions between the old and current tax systems. First, it offers more progressive tax brackets at reduced rates. Secondly, if the new tax system is selected, taxpayers will not be able to make use of any of the main exemptions or deductions that are now available under the old tax regime. Therefore, if the savings from the lower rates exceed the value of the deductions under the former tax regime, a taxpayer may choose the new tax system. The modification of the slab rates is the main difference between the previous and current tax systems. In India, taxpayers have to pay income tax according to the tax slab system into which they are classified. The tax slab is designed as per the average income of a person. Taxpayers with a higher income will be paying more taxes. There is a vital change in the previous and new tax regimes and the potential to reduce the tax. The old tax system allowed for many deductions. But the current system doesn’t. The former tax system allowed taxpayers to use exemptions and deductions to lower their taxable income. The new system offers them none. By saving or spending on particular goods, taxpayers might qualify for a deduction that lowers their taxable income. Which tax system is better? After taking into account any available exemptions, a taxpayer can know which tax regime is preferable by calculating their income tax liability using the standard tax rates, i.e., the old tax slab rates. If a taxpayer does not wish to invest exclusively in qualified schemes but would like more options, they may want to investigate the new tax system. Before deciding whether to stick with the current system or switch to the new one, it’s wise to evaluate and analyze your situation under both options to discover which one better suits your needs. [B-02] The bottom line If you get a salary, you have the option of making this selection every year, including when you file your tax returns. Things get more complicated for those who have business revenue; if you choose the new tax regime, you can only revert to the old system once. We hope you have got a brief idea about the old vs new tax regime. Visit Piramal for more such articles. Our experts have got answers to your every question.
08-11-2023
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Tax Savings

Difference between Old Tax Regime and New Tax Regime

All the salaried people ever since their joining, tend to look for ways to save their hard-earned money. During the filing of their annual Income Tax, all you need to do are to declare some of their eligible investments under the category of 80C or similar. You then will be able to avail yourself of some exemptions and deductions. How you do the declarations, depends on the tax regime. Till 2020, all the taxpayers were filing under the old tax regime. Afterthe new tax regime was effective from Financial Year 2020-2021, you are given the choice to file your Income Tax according to your choice. [B-01] What is the Old Tax Regime? The old tax regime was in effect since the Income Tax Act of 1961. It allowed an individual to claim for saving money on exemptions, deductions, and allowances on 70 different schemes. You can declare for exemptions by spending on House Rent Allowance, Leave Travel Allowance, Food Coupons or Vouchers, Mobile and Internet service, Standard Deductions of Rs 50,000, Uniform Allowance, Company Lease Car, and Leave encashment, to name a few. You can also opt to save for your future by declaring for deductions on PPF (Public Provident Fund), ELSS (Equity Linked Saving Scheme), EPF (Employee Provident Fund), Life and Health Insurance Premium, Interest and Premiums on Home Loans, Children Tuition Fees, Investment in NPS (National Pension Scheme), Saving Account Interest and many more. If you can strategize and declare accordingly, you can save your taxable income by quite some amount. Just by declaring under section 80C, you are entitled to save your income by Rs 1,50,000. However, the tax slabs were on the higher side. In the Union Budget 2020, a new regime tax slab was introduced in which tax benefit is not applicable. All we need to know about New Tax Regime The New Tax Regime was introduced by Finance Minister Nirmala Sitharaman on 1st February 2020. In this tax regime, you can declare your expenditures based on the new regime tax slab. The bottom line is, if you earn more, you have to pay more. Some important exemptions which are retained are Income from Life Insurance, Agricultural Income, Deduction on Rent, Retrenchment compensation, leave encashment on retirement, VRS amount up to Rs 5 lakhs, Death cum retirement benefits and Monetary benefits as Scholarships. Senior Citizens above 75 years of age are exempted from Income Tax filing. Comparison between the Old and New Tax Regime Let us see the difference between the old and new regime tax slab: Annual IncomeOld Tax RegimeNew Tax RegimeUnder Rs 2.5 lakhsNilNilRs 2.5 – 5 lakhs5%5%Rs 5 – 7.5 lakhs20%10%Rs 7.5 – 10 lakhs15%Rs 10 – Rs 12.5 lakhs30%20%Rs 12.5 – 15 lakhs25%Rs 15 lakhs and above30% From the table, it can be easily deduced that for every income group, according to the new regime tax slab, there is a certain interest rate that is payable by the individuals. Whereas in the previous tax regime, the interest slab catered to a wider range. Above Rs 15 lakhs, both the new and tax regime yield the same amount liable for tax. INCOMEOLD REGIMENEW REGIMETax Interest RateTaxTax Interest RateTax Under Rs 2.5 lakhs0000Rs 2.5 – 5 lakhs5%Rs 12,5005%RS 12,500Rs 5 – 7.5 lakhs20%Rs 50,00010%Rs 25,000Rs 7.5 – 10 lakhs20%Rs 50,00015%Rs 37,500Rs 10 – Rs 12.5 lakhs30%Rs 75,00020%Rs 50,000Rs 12.5 – 15 lakhs0025%Rs 62,500 Sum Rs 1,87,500 Rs 1,87,500 Health & Education Cess4%Rs 7,5004%Rs 7,500 Tax payable Rs 1,95,000 Rs 1,95,000 Let us check the Annual Income of Rs 15 lakhs and above with maximum exemption to check the taxable amount according to the old Tax Regime. Annual IncomeRs 15,00,000 Exemptions under section80 CRs 1,50,00080 CCD (1B)Rs 50,00080 DRs 75,000 Taxable IncomeRs 12,25,000 Which tax regime is beneficial? No one can truly say which tax regime is beneficial. In the older tax regime, you are required to invest so that you can claim tax benefits. In the newer tax regime, your take-home salary is more as there are limited tax benefits on long-term investment. Hence, there is also no need to provide documentation as proof of the investment. For the newer generation, who just started their career, the newer tax slab is beneficial for them as they do not have much savings either. The high-income earners find the older tax slab beneficial. Taxpayers belonging to the middle class have benefitted the most from the newer slab. A comparative study of both models is suggested as you cannot toggle between the old tax regime and the newer tax regime. Your decision will be frozen for the whole financial year. In the newer future, a simpler tax income system will be implemented. [B-02] Conclusion In case you are facing a cash crunch, you can avail personal loan too for your investment. Do check out the personal loan webpage (https://www.piramalfinance.com/personal-loan) of Piramal Finance. They provide quick loans starting at Rs 1 lakh at minimal documentation. Choose flexible EMI at an interest rate of 12.99% and above at a repayment tenure ranging from 12 months to 60 months. Do you know the best part; you are eligible for a personal loan above Rs 10 lakhs in case you make your working spouse or blood relative a co-applicant. Do check the Piramal Finance website for more such products and services.
08-11-2023
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Personal Loan

8 Reasons for getting a Personal Loan in India 

You may often need money when you are least ready for it. In times of financial trouble, personal loans can be a lifesaver. They are available immediately and fall under unsecured loans, meaning they do not require collateral and can be repaid quickly. In the past, borrowing money required a visit to the borrower, but now everything can be done online. Personal loans cover all the financial needs of a person. You may decide to look for a loan due to several factors. Taking a personal loan in India is simple and can be done for any need. [B-01] Even though there are many uses for personal loans, some reasons are popular and almost universal. Let’s talk about some of the most common reasons to get a personal loan in India. 1. Easy application and approval In the past, Indian lenders and banks took too long to approve personal loans. One had to fill out a lot of paperwork and wait for days, and even then, there was no guarantee that the instant loan application would be accepted or that the funds would be distributed in India on time. However, today’s online lenders make it possible to apply for a personal loan in India and get it in just a few hours. You can quickly apply for a loan online by immediately visiting the website and uploading your documents in minutes. In addition, the loan amount is deposited into your account once your application is approved. The entire process is done online, from applying for a loan to getting the money. This way, you can apply for a loan and get your money without having to talk to your lender. You will also be able to meet your urgent requirements quickly with fast loan disbursal. 2. Medical Emergencies Medical emergencies are unpredictable and can put immense financial strain on individuals and families. From sudden hospitalizations and surgeries to critical treatments and post-operative care, the costs can escalate quickly. In such situations, a personal loan serves as a quick and hassle-free solution, ensuring you get the necessary funds without depleting your savings. With the rising cost of healthcare in India, having immediate access to funds can be a lifesaver. Many financial institutions and NBFCs offer personal loans specifically for medical emergencies, covering everything from doctor consultations and diagnostic tests to ICU charges and expensive medications. If you require instant financial assistance, you can opt for an online instant loan, which offers quick disbursal—generally within a few hours. 3. No usage restrictions The primary advantage of personal loans is that you can use them for any purpose. On the other hand, home and car loans can only be used for a specific purpose. In this way, they are not similar to a home loan, which you must use to purchase real estate, and a vehicle loan, which you must use to buy a vehicle. You can use individual credit to meet any financial need. You can use personal loan in India to pay for things like vacation expenses, house renovations, new furniture and appliances, wedding expenses, unexpected health care expenses, education expenses, buying a used car, etc. 4. No Collateral One of the main reasons why personal loan in India is becoming more popular in this country is that you can obtain them without any collateral. Since individual loans are unstable advances, you do not have to give any security, guarantee, or insurers to get a loan confirmation. When approving a personal loan in India, the only factor considered is your ability to repay the loan within the stipulated time. 5. Flexible terms The typical repayment period for an instant loan is between 12 and 60 months. You can choose the maturity period that suits you best. However, remember that a personal loan in India comes with extended repayment periods and has significantly higher interest rates than loans with shorter repayment periods. Features like low EMIs and flexible repayment terms make loan repayments simple. Your credit score will also increase if you take an instant loan and make your EMI payments on time. Remember that while the loan has a longer tenure, the EMIs are lower, but the total interest paid is higher. As a result, you can be flexible and choose repayment strategies that suit your preferences and financial situation. 6. Personal loan for weddings In every Indian household, a wedding is one of the most significant occasions. You want to complete every step, whether it’s your or your children’s wedding. Taking out a personal loan in India will get you everything you want, but suddenly your savings will run out. Several financial institutions offer attractive terms and interest rates for wedding-related personal loans. 7. Higher education expenses Whereas you can cover school fees with an education loan, You still need a lot of money for related expenses. Some basic costs associated with higher education include travel, insurance premiums, book costs, and housing deposits. One can pay these costs and realize your dream of studying at a good school by getting a personal loan. Traditional education loans come with some conditions and restrictions. For example, some loans can only be used if you get into a particular type of college. In addition, they have strict repayment requirements, and it takes years for students to become debt free. In such cases, a personal loan in India is generally a better option as there are no essential elements for drawing such an advance. [B-02] Conclusion It does not matter for what reason you are taking a personal loan in India; what matters is that you pay your debts on time and have a good credit history. A personal loan in India can help prepare for any financial needs and to deal with life’s uncertainties. If you are looking for an Indian financial services company offering personal loans, you should go for Piramal Finance, as it offers customizable personal loans with longer tenure and reasonable interest rates. Moreover, the costs and fees are not too high, and there is no collateral or security requirement. With Piramal Finance, you can choose the EMI amount that suits you best and free yourself from the burden of high repayment costs.
08-11-2023
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Personal Loan

How To Extend Personal Loan Repayment Tenure; What Are The Effects Of It?

A loan is basically for a person who is looking for some kind of financial help and tenure or longevity plays a vital role in every loan. It also includes personal loans, which can be taken for a maximum of 5 years. Initially, an individual should choose an appropriate personal loan tenure, that is it should not be too long or too short. In this way, the overall interest experiences a substantial reduction. And life is certainly unpredictable and therefore some uncertainties will surely come in the path. Sometimes it can become quite difficult to pay off the personal loan EMI and in that case, a person would surely prefer the EMI to be lower. And this can only happen if the personal loan repayment tenure can be extended. [B-01] Here are Some of the Key Components of Personal Loan Repayment Tenure 1. Tracking Loan Repayment The repayment schedule will determine if indeed the running private loan arrangement has to be modified. When you ask the creditor to extend the personal loan’s term, they would initially review the repayment history to consider how consistently you have made EMI payments. The lender will look at the payment history going back at least 9 to 12 months. If the company notices areas where payments are falling behind schedule, it may think about extending the term to lower the EMI cost and help you make the on-time payment. 2. The Debt to Income Ratio The EMI on a private loan might have been less than 50% of the monthly gross earnings at the time of credit application and the implication of this is that it must have prompted the creditor to authorize the mortgage without hesitation. However, as time passes, a person might need some new loans which in turn would increase the debt in proportion to income. Also if the person has repaid the loans and the overall debt obligations exceed 60% of your wages, the creditor may increase the personal loan repayment tenure to avoid a hypothetical fallback issue in the future. 3. Revenue Evaluation If a person hasn’t signed out any additional debt but is still having difficulty making personal loan repayments on time, then it possibly can be the case that your earnings are not increasing with the growing inflation. In such cases, it should be discussed with the lender, when pursuing an extension on personal loan repayment. The lender will keep track of this and request payroll stubs and bank account numbers. When a person applies for a new personal loan, the lender will need the past three months’ salary slips as well as the last six months’ bank details. However, the lender may want you to present income details dating back a year or longer. 4. Your Life Stage Someone set to retire soon may have difficulty extending the term of their personal loan repayment. The argument is that extending the term further than the age of retirement may raise the likelihood of failing to pay. The creditor will preserve the term inside their pensionable age to avoid such occurrences. However, if superannuation is a long way off, the lending institution may consider extending the term if you are experiencing legitimate loan payment difficulties. Effects of personal loan repayment tenure Mentioned below are some of the effects of extending a personal loan repayment tenure: 1. The possibility of applying for a larger loan balance The mortgage balance users’ desire to borrow is the foremost important thing to think about when applying for private loan repayment. It is established by your financial requirements and accessibility. A longer amortization period permits you to borrow more bonuses based on their liabilities ratio. When it regards personal loans, all microfinance companies recommend an equity ratio of 35-40%. This indicates that the monthly liabilities, including prior EMIs and current EMIs, should account for 35-40% of your monthly income. Choosing a longer loan term might lower your DTI ratio by increasing your repayment capacity. As a result, you will be able to borrow more money. 2. It aids in the growth of a better credit history. The credit score is an important consideration in the mortgage application procedure. However, establishing a good credit score requires time and consistency. You have an exceptional possibility to accomplish this with a long-term conventional mortgage if you complete your EMIs on time. 3. Make room in your budget for extra things. One could save money for those other scheduled and unanticipated costs because your EMI repayments are reduced due to the longer repayment term. Users can then apply the excess funds to any additional requirements. If a person has a credit card, for example, a long-term loan with reduced EMIs can allow him to put this extra money toward its settlement. Furthermore, a person might employ this income in investments to obtain bigger returns for their long-term personal planning. [B-02] Conclusion Now that you’ve learned about the factors that can assist you to extend your personal loan repayment term and lower your EMI, put them into action with caution. Many people prefer to prolong the tenancy to the point where they ultimately pay significantly more to lower weekly payments. Because personal borrowing costs are still normally high, extending the loans for a prolonged period might dramatically increase your payments. When you’re facing a loan obligation, keep in mind you designate your earnings accordingly so you don’t find yourself having to ask the banker to extend the personal loan repayment tenure.
08-11-2023
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Personal Loan

Important Unique Factors You Need To Know About Unsecured Personal Loans

Finance management should be a top priority when you want to achieve a particular life goal. Many people advise regular savings to accumulate funds for any emergency. But sometimes, hard-earned money may also fall short of any urgent requirement. In such a situation, anyone can get money only through loans. An unsecured or secured personal loan is one such option. Here, in this article, we are going to explain unsecured personal loans, their advantages, and the complete application process for personal loans. [B-01] What is an Unsecured personal loan? Unsecured personal loan applications do not need any valuable security. Lenders usually approve the loan based on your credit score and income. In contrast to other types of loans against valuables or property, an unsecured personal loan is easier. It requires minimal documentation and verification time. These days people prefer to apply for unsecured personal loans due to their benefits. There can be multiple reasons, such as marriage expenses, a child’s higher education, or a medical emergency, where you may need quick funds. Here is when unsecured loans come into use. Advantages of an Unsecured Personal Loan Before applying for an unsecured personal loan, you should first know the eligibility criteria to apply for the loan. Applicants need to fulfil the application criteria to qualify for the application. However, after qualifying for a loan, you can avail of it easily. Some benefits of unsecured personal loans include: Flexibility Application flexibility is the major factor of unsecured personal loans. Loan applicants do not need to disclose the purpose for which the loan is applied. You can use the loan amount as per your choice. However, you are advised to borrow only when you need the money. Collateral Free Loan Many people do not know whether a personal loan is secured or unsecured. However, one should know that personal loans are unsecured forms of loans. Moreover, if personal loan applicants have a poor credit history or insufficient income, then to be eligible for the loan, they may have to use their personal assets as security for loan approval. Flexible Repayment Tenure Most personal loans come with short-term repayment terms. The loan repayment term may vary from 12 to 60 months, depending on the financing institution. However, some financial institutes are flexible for repayment tenure. You can choose the appropriate repayment schedule and tenure depending on your income and budget. However, whenever you sign the loan agreement, always read the loan foreclosure terms and conditions carefully. Less Documentation You might be asked to submit basic documents such as income proof, KYC documents like ID proof, passport size photograph, and others. Once the lender executes the verification process, the loan gets approved instantly. These benefits make personal unsecured loans easy to avail. However, if you want to know what exact documents are required to apply for the loan and the common eligibility criteria to apply for the loan, keep reading. Eligibility Criteria for Unsecured personal loan You may apply for an unsecured personal loan from anywhere. Almost all financial institutions have the same standard eligibility criteria. Mostly the application is decided based on age criteria. Age Criteria: Only Indian nationals can apply for unsecured personal loans. The applicant’s age should be between 21 and 58 years. Minimum and maximum age limits may differ from one lending financial institution to another. Income: Any self-employed or salaried individual with a minimum salary of Rs. 15,000 may apply for an unsecured personal loan. Anyone with the same high-income range can apply for the loan. Occupation: If you are self-employed or have a business, then it should be at least 2 years old. The salaried person should be with their organisation for at least 6 months. Hence, anyone with all of these satisfying criteria can apply for an unsecured personal loan. How to Apply for an Unsecured Personal Loan Online and Offline? You may reach out to your nearest financial institution or bank to apply for an unsecured personal loan. You can apply in person and online through both modes. The websites have the option to apply for loans that may be accessed online. The steps for offline or in-person and online loan applications are: In-Person/Offline Loan Application Steps Visit your nearest and preferred bank branch or financial institution outlet. Ask for the application form and fill required details. Submit the form with the necessary documents to validate your information. A bank representative will verify your documents and eligibility criteria and prepare your loan offer as per your eligibility. Once the financial institution verifies and approves your details filled in the application form, they will disburse the loan amount to your bank account Online Loan Application Steps You can apply for a loan on a financial institution’s website. On the website, go to the relevant loan application web page and open and fill in the application form. Upload the required documents and wait for approval. You can apply for the loan via any mode. The requirement remains the same. [B-02] Conclusion A personal loan is a one-stop shop for any loan requirement. There are many more loan types and categories. You should make sure of important factors like quick loan sanction and disbursal. While applying for an unsecured personal loan, you should also check for closure and prepayment terms. It is always recommended to check the lender’s credibility. You should also check the RBI registration status and the lender’s disclosure standard. Customers or borrowers with high credit scores always get the loan easily. However, they should also fulfil the minimum KYC requirement as well. With the help of proper guidance and information, anyone can get a loan. For more blogs related to personal loans and other financial aspects, visit Piramal Finance here.
08-11-2023
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Personal Loan

What Are The Minimum Charges And Processing Fee For Personal Loan You Need To Know?

For most people, getting a personal loan helps meet urgent needs. You can’t do anything, and you wouldn’t have money to cover your necessities if you’re delayed. That’s why many of us have found ourselves in a situation where a personal loan was required. Personal loans are a great option for funding your business and personal expenses. When you are trying to get a personal loan of any kind, you usually have a lot of questions. You need to know about the fee details and the personal loan charges involved in getting a personal loan. It may surprise you to find out that there are no exact rules for fees when getting a loan. In this blog, let’s discuss the minimum charges and processing fees for a personal loan. [B-01] Types of Personal Loans You can borrow money to pay for a personal expense and repay it over time by taking out a personal loan. You can receive a certain amount of money by taking out a personal loan, which is a repayment debt. There are two types of personal loans. 1) secured (needs collateral), 2) unsecured (requires no collateral). It varies in terms of interest rates, personal loan charges, amounts, and payback terms. What are the Personal Loan Charges Involved? Below is a list of some common personal loan charges: Processing Fees A bank may need to cover some administrative personal loan charges while they review and approve your loan. These fees are often minimal and range from 0.5% to 4% of the total loan amount, depending on the lender. When requesting a personal loan, you have two options. (I) pay the processing fees in advance. (II) have it deducted from the loan’s total amount while disbursement occurs. Each lender determines the minimum and maximum percentage of processing fees. Verification Charges You must convince your lender of your ability to repay a loan before applying for one. To verify your credentials, the lender hires a third party or agency. These agents look at your credit score and repayment history. This verification charge is an extra personal loan charge to the lender. As a result of the verification process, you must pay this fee because it adds an extra cost to them. Goods and services tax (GST) After the implementation of GST, you may have to pay a minimal fee as GST on loan processing fees. It is a part of the personal loan charges for any additional services that you request during the loan approval process or throughout the loan period. Origination Fees Some lenders charge a loan origination fee when you apply for a loan for the first time. The cost of processing and underwriting your loan is covered by origination fees. The percentage of your loan is calculated in this personal loan charge. These expenses could be deducted from the loan’s funding amount or added to it and paid over time. Origination fees typically range from 1% to 8% of your personal loan amount. Documentation Fees Your lender must invest time and money to give you a loan estimate. Typically, this fee goes toward documentation and other administrative personal loan charges. Penalties for EMI Defaults You can repay the loan through EMIs in manageable amounts to avoid personal loan charges. If you don’t pay your EMI, then you have to pay a fee for default in payment. Make sure you pick an EMI amount that you can afford rather than striving to pay off the debt as quickly as possible. Pre-payment Fees Pre-payment fees are imposed on a portion of your loan balance as personal loan charges. The RBI has, however, prohibited lenders from charging pre-payment fees on your loans with fluctuating interest rates. Penalty on Foreclosure of a Payment If you foreclose your loan earlier than the agreed-upon term, then the lender suffers a loss. To compensate for the loss, banks impose personal loan charges as a fee for prepayment. This fee typically ranges from 2% to 5% and varies from one lender to another. Duplicate Statement Fees You can generate a duplicate statement of the loan’s payment schedule and outstanding balance if you miss it. For this, you will have to pay a fee as a personal loan charge. The lender charges a fee between Rs. 200 and Rs. 500. Charges on Loan Cancellation If you cancel the loan amount after it has been approved or disbursed, then you have to pay personal loan charges for cancellation. There are frequent cancellation fees of up to Rs. 1,000 per loan. Cheque Dishonour Fees If your cheque for a personal loan bounces, there will be personal loan charges of a set amount. This sum may differ for various lenders. Lenders charge a maximum of Rs. 500 for each occurrence. If your cheque bounces regularly, then they will charge a higher amount. Other Fees Some of the other fees that come under personal loan charges are collection pickup charges, statutory charges, stamp duty charges, legal charges, recovery-related charges, cash collection charges, and so on. All these charges differ from lender to lender. [B-02] The Bottom Line The processing fees vary from 0.5% to 4% of the total loan amount, depending on the lender. Some charges are imposed to take care of the verification fees, default on EMI payments, documentation charges, and prepayment of loan fees. These are the minimum personal loan charges and the processing fees for personal loans. To read more articles on personal loans and related topics, check out the Piramal Finance website right away.
08-11-2023
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Tax

Income Tax Calculator – Calculate Your Taxes for FY 2021-22

Why is an income tax calculator a good option to calculate taxes? How to use an income tax calculator? Users may use a website to determine how much tax they will have to pay. This is based on their income after the release of the Union Budget for the year. People in the “taxable income band” must pay taxes on a certain amount of their annual net income. Payroll deductions and the Central Board of Direct Taxation’s online method of filling out income tax forms are the two ways you can pay your income tax (CBDT). If the required payments can be made through an online payment system that receives money from many sources, people are more inclined to do so. So, if you’re having some trouble calculating your income tax, an income tax calculator can be the solution to that problem. [B-01] The basic information about the income tax A person’s base pay plus any supplementary payments, such as housing, transportation, special, and other benefits, are called their “salary.” Paying phone bills and travel costs incurred while on leave are only two examples of non-taxable compensation and benefits package components. If you have rented a property and paid HRA, you could be qualified to submit an exemption application for HRA. These exemptions are in addition to the standard deduction. This deduction was set at 40,000 rupees in the 2018 budget but was raised to 50,000 rupees in the 2019 budget. Our income tax calculator has been updated to reflect the most recent changes by the Union Budget 2021–22. How can I use the income tax calculator online? Please adhere to the guidelines below to gain the greatest benefit possible from the income tax calculator: Select the year equal to the assessment year for which you intend to do your tax calculation first. Enter your current age in the appropriate fields. In India, different age groups are subject to different income tax laws. Then choose “Income field” from the menu. Make a list of your year’s gross pay. Consider all taxes (monthly or yearly salary paid without deductions). You must also declare the amount of income you get from renting out your home. You should also consider the annual interest payments you make on your mortgages for your main house and any investment properties. The following deductions should be entered: Section 87A, Section 80C, Section 80CCD (1B), Section 80D, Section 80G, Section 80E, Section 80TTA, Section 80TTB, and Section 80GG deductions. Please provide further information on the interest rates for the savings account and the student loan. Add your annual rent that HRA and your wage, DA, and HRA do not cover. Select “metropolitan region” or “non-metropolitan area” and click “calculate” to see how much tax you would owe. These steps clearly explain the procedure of using an income tax calculator. What do the terms in my tax brackets imply in the income tax calculator? Under India’s income tax slab structure, every taxpayer pays the appropriate taxes. “Slabs” refers to the varied tax rates for different income levels. You have to pay the government more taxes when your income increases. An income tax calculator can easily calculate your tax amount and save you from any type of foul. Different categories of taxpayers are taxed at different rates. Taxpayers fall into one of three categories of “individuals” according to the Income Tax Act of India. Anyone under 60, whether they are a permanent or temporary resident, Residents in the neighbourhood between the ages of 60 and 80 Adults above 80 who live in one place are called “super seniors.” So use the income tax calculator and stay updated about the income tax payable amount. How is the required income tax amount determined? People may use an online income tax calculator to determine how much they owe. Transactions in Indian Rupees on December 31 of a particular year The total sum of money someone makes yearly is their annual pay. Generating income from unusual channels, such as investments, rental income, etc. A recurring payment to help with housing and transportation costs. You may determine a person’s total tax burden. This can be done by providing precise values for the variables mentioned in the preceding sentence. Any money left over after TDS has been taken out may be deposited immediately via Challan 280. This is the government’s internet gateway. The government has 30 days to issue a taxpayer a check for the difference if their refund request results in more payout than their tax bill. The income tax calculator will help you to get all the information about income tax. The Internal Revenue Code’s Sections 234A and 234F explain how interest and penalties are applied to late-filing taxpayers. Therefore, it’s crucial to note the cutoff date for filing your income tax returns. Additionally, remember that the date for submitting your taxes may change. This depends on your tax situation. Salary earners typically have time till July 31 of the assessment year to file their tax returns. You can stay updated with the income tax calculator. Effects of exemptions on the total level of income tax A tax credit of up to Rs.12,500 may be claimed by individuals earning less than 5 lakh rupees by Section 87A. Equity-linked savings schemes. The Indian Income Tax Act contains the relevant rules on this. Taxpayers may deduct up to Rs. 2 lakh in contributions made to the national pension system from their taxable income under Section 80CCD (1B). Under Section 80D, you are eligible for a tax deduction of up to Rs 25,000 if you pay health insurance premiums. For those over 65, the maximum amount rises to Rs. 50,000. According to Internal Revenue Code Section 80G, certain donations to NGOs are not taxed as gross income. You can deduct all the interest paid on student loans for up to eight years, according to Section 80E. Taxpayers may deduct up to Rs. 10,000 of interest income from their taxable income by Sections 80TTA and 80TTB of the Income Tax Act. Older people are free from paying taxes on interest income up to Rs. 50,000 under Section 80TTB. All these rules and regulations are encrypted in the income tax calculator, so you can expect the exact result from it. [B-02] Summing up Piramal Finance is one of India’s top non-bank finance organizations. A team of knowledgeable advisers of Piramal Finance is available to assist you at every stage of the application process. It is accessible 24 hours a day, 7 days a week, to assist existing and new clients. This boosts your chances of being accepted and receiving your funds soon.
08-11-2023
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