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Personal Loan

How to Manage EMI for a 5 Lakh Personal Loan?

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

How to Manage EMI for a 3 Lakh Personal Loan?

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

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

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

List of Requirements for Personal Loan.

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

Make Festive Celebrations More Joyful with a Personal Loan

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

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

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

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

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

Prepayment Of Personal Loan: Features, Benefits And Charges

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

Why You Should Avail Personal Loan For Festivals

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