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Personal Loan

Can A Pre-approved Personal Loan Get Rejected?

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

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

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

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

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

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

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

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

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

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

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

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

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

Different Types of Stocks to Invest In

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

Top Reasons to Know Why People Mostly Opt for Personal Loans

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