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Personal Loan

Is Foreclosure Charge Applicable on Personal Loan & How it Works?

Personal loans are becoming very popular among individuals. This help to meet immediate fund requirements. These can be used for several requirements. These could be investments in business, temporary cash flow mismatches, weddings, medical purposes, travel purposes, emergency expenses, etc. There is no restriction on the purpose for which the loan will be used. No questions are asked by any banks. Banks offer personal loans with no security at very attractive interest rates. [B-01] What is a personal loan, and why would one take it? A personal loan is a form of unsecured loan banks offer to individuals. The benefits of availing of a personal loan are detailed below: No Security: Personal loans are collateral free. One does not have to offer any security for availing of a personal loan. Easy application process: Generally, the loan application to disbursement is not a very time taking process. Lenders have now started giving personal loans with minimum documentation. They mostly ask for identity documents and income proofs with a few bank-specific forms to be filled in the lender’s formats. Easy Disbursements: The loan is disbursed in one go once it gets sanctioned. The amount is directly credited to the borrower’s savings account once the documentation process is completed. Ease of repayment: Personal loans usually have to be paid in EMIs. These are fixed payments that are a fixed amount to be repaid every month. This fixed amount includes both principal and interest. Depending on comfort, one can choose the number of EMIs over which one wants to repay the personal loan. No end-user requirements: The lenders never ask for the end use of funds. One is free to put the funds to any use or purpose. The process of availing of a personal loan is very simplified. One can approach any bank/ multiple banks with the requirements for availing a personal loan with all documents such as identity proof, income proof etc. After screening the application, the bank undertakes the credit appraisal process internally. Then the loan is sanctioned. Once this is sanctioned, the lender can share the loan documents for execution. After this, the loan amount is credited to the borrower’s account. Personal loans come with various advantages. But it’s important to note that the borrower should be very careful with the repayments. Never forget to miss any EMI. Doing so would otherwise affect their credit score. Many lenders have now started offering personal loans with low/nil processing fees. In this article, we will discuss if foreclosure charges apply to personal loans and how they work. What are foreclosure charges? A bank sanctions personal loans for a specified period, as per the borrower’s requirements. If one wants to pay off the loan before the expiry of the tenor for which the loan was sanctioned, it is referred to as Prepayment or Foreclosure of a Personal Loan. The prepayment of the loan has to be done in one single payment. The lenders allow their customers to prepay a loan. But the prepayment of a personal loan would generally attract foreclosure charges. Foreclosure charges are like a penalty the lender charges for prepaying the loan. The foreclosure charges vary across lenders as per their internal policy. The average range of foreclosure charges is between 1% to 5% of outstanding principal. The same is further subject to tax. In other words, the foreclosure charge will be levied on the outstanding principal on the date of prepayment. Some lenders have different foreclosure rates for different periods. Foreclosure charge may be stipulated as 1% if the remaining tenor of the personal loan is more than 4 years, 2% if the remaining tenor is 2-4 years and 3% if the tenor is 0-2 years etc. The applicable foreclosure charge on the borrower’s loan will depend on the lender. It will be written on the sanction letter or terms and condition document they receive from the lender. The lenders charge foreclosure charges to compensate for the interest income the customer would otherwise pay. Benefits of foreclosure of personal loans Reduced cash outflows and interest burden The key advantage of paying off the loan is no cash outflows on account of interest payments. As is said, money saved is money earned! Once they foreclose the loan, the borrower would have paid the principal outstanding. The interest burden gets over. It’s important to note that some lenders specify a lock-in period in the sanction letter. The lock-in period refers to a period from the date of disbursement of the loan when the borrower cannot foreclose the loan. It’s essential to read the documents carefully to be aware of all the conditions of the personal loan. However, it is always better to pay off the loan if one has extra cash to save oneself from the interest burden. Low debt levels The borrower can partially or fully foreclose the loan. In both scenarios, one will have to pay foreclosure charges. But it’s important to note that one is freed from the EMI burdens every month. Whenever one has extra earnings or cash, always try to reduce the debt burdens. While this attracts foreclosure charges, one will still save money on the extra interest one would have paid anyway. Improved credit score All lenders maintain a database of Individuals and their credit profiles. The borrower’s credit score is linked to various factors such as outstanding loans, timely payment of EMIs etc. Once they foreclose a loan, their credit score improves. This would improve credibility. The borrower would also have a better chance of taking another loan. It is always advised to opt for a loan with a lower foreclosure charge. One should always compare the foreclosure charges and interest rates, in case one has multiple loan offers. [B-02] Final thoughts In case, the borrower wants to repay the loan, it will help them to save the interest they would otherwise pay for the entire loan tenure. One should compare the applicable foreclosure charges. He should also read the sanction letter or terms and conditions carefully before deciding. Want to learn more about personal loans, or experience a true hassle-free, quick and easy personal loan with zero pre-payment and foreclosure charges? Visit Piramal Finance.
08-11-2023
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Personal Loan

Five Tips to Make the Most of Your Personal Loan

A loan is the best way to get leverage on your financial side. You can use this loan amount to cover your wide range of needs, be it personal or business-related purposes. The best part about taking a loan is that it provides you with a lump sum, charges you a nominal interest rate, and gives you a reasonable amount of time to plan your finances. Out of many lucrative loan options, one of the most popular options is going for a personal loan in India. You can meet your personal requirements like financing a wedding, buying a house, or making a down payment using a personal loan online. But, a personal loan has its pros and cons, which you need to keep an eye on before applying for it. Do you want to know what are the things you should keep in mind while going for a personal loan? Well, then adhere to this article because this article is all about personal loans in India, their benefits, and the steps you need to keep in mind to get the most out of it. [B-01] What is a personal loan and what purpose does it solve? As said earlier, a personal loan is financial aid you apply for to cover your personal needs from a lender. The lender in return charges you with a specific rate of interest on the borrowed amount for a set period of time until the loan is repaid. Since it is an unsecured form of loan, you don’t need to pledge any of your assets to get a personal loan online. You can use this amount for any purpose as the lender doesn’t ask you for the reason for taking the loan. A personal loan is the best option to look for as it can be substituted with other loans for any purpose, be it business, marriage, education, home, etc. A personal loan online is a faster method that requires no paperwork and is sanctioned within a day or two. Banks have come with this feature to help you save time and increase your convenience at the same time. What are the features and benefits of applying for a personal loan? A personal loan, like every other loan, comes with a bunch of benefits like: Approval and Disbursal Period: The approval period of a personal loan is significantly lower as compared to the types of loans available in the market. Banks often prefer shorter approval periods to cut inconvenience, rigorous paperwork, and delays. The period of approval for a personal loan in India is about two days which can even be shortened depending on your credentials. Similarly, as soon as your documents are verified and the loan is approved by the bank, the loan amount is disbursed into your account within some hours. Rate of interest: The rate of interest on personal loans online is comparatively low than other forms of unsecured loans. The rate of interest for a personal loan in India starts from 8% per annum and goes up to 25% per annum. These rates vary according to one’s credit history, credit score, etc. No collateral: As it is an unsecured form of loan, you as a borrower don’t need to pledge any of your assets to get a loan. Banks mostly don’t ask you for collateral to prevent unnecessary delays. Five steps you need to follow to make the most of your personal loan: Before applying for a personal loan online, you need to figure out these five things to give it a fair shot. Ample self-research: Before you decide to get a loan, make sure that you do a lot of self-researching regarding all the offers available to you. In the chase for getting the best offer, you should also see the terms and conditions that are being provided to you. You can use a personal loan online calculator to calculate and compare different interest rates available to you. Make sure you contact the bank executives and your financial advisor before going for it. Increasing your credit score: The more the credit score is, the better will be the offer. A good credit score not only increases your chance of getting a better offer but also helps you get the best interest rates and flexible repayment options. Remember, a credit score of 750 is the benchmark to get a good offer. You can start paying your bills on time and clearing your dues to level up your credit numbers. Checking your eligibility: Before applying for a personal loan online, you should make sure that you precisely go through the eligibility criteria of the lender. Some of the important points to consider are your income and credit history. Make sure that you are on the plus side in these matters before you go for a loan. Checking additional charges: Before you decide to settle for a loan with a lender, you should be aware of any type of additional charges. These charges include prepayment penalties, stamp duty, processing fees, etc. The necessity for applying for the loan: Before you consider taking a personal loan online, you must thoroughly assess the reasons behind going for it. If the purpose of taking the loan is to finance your short-term needs like financing family trips or festivals, try to settle for as little as possible as it will cause a sudden financial burden. If you have to utilise the amount for making a downpayment, paying medical bills, or investing in the business, then taking a personal loan is justified. [B-02] Wrapping it up A personal loan in India can be taken for a variety of reasons to cover multiple needs, however, certain things need to be executed to the most out of it. Proper financial planning, comparison of different interest rates, improving the credit score, etc. are imperative to get the best offer and make the most out of it. If you liked this article, and you want to read more on personal loans, personal finance, different investment options, and several government subsidies, you should visit Piramal Finance.
08-11-2023
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Personal Loan

4 Must-Know Things About Digital Pre-Approved Personal Loan

Digital personal loans are widespread these days. According to a Reserve Bank of India study, as of 2020, digital lending accounted for 75% and 10% of banks and non-banking financial companies’ (NBFCs) total assets, respectively. So, there is no doubt that you might have, at least once, received an email or a call inviting you to apply for a pre-approved personal loan. Besides, the various benefits of a digital personal loan, such as quick funding, minimal documentation, and online processes, make it an attractive option for many people. If you want to take advantage of a pre-approved loan, here is everything you must know about this specific loan type. [B-01] What Is A Digital Pre-Approved Personal Loan? Let’s break down digitally pre-approved personal loans into three parts. Firstly, they are short-term and collateral-free, meaning they are unsecured loans. Anyone with a decent credit score and repayment history can avail themselves of such loans. Secondly, they are pre-approved. A lender extends the digital personal loan option to borrowers with good credit. So, if you receive this loan offer, your creditworthiness has been found positive by the financial institution. You can apply for a digital personal loan during the offer period, and it will be approved instantly. Finally, they are digital. You can submit the necessary documentation online to get pre-approved if you receive an offer. You can use a digital personal loan for various purposes. For instance, you can use it to renovate your home, consolidate debt, or fund a medical procedure. In addition, they are easier to access, are more convenient, and have affordable interest rates. So, pre-approved personal loans are an ideal option for emergencies. 4 Must-Know Things About Digital Personal Loans #1 – The Eligibility Criteria For A Pre-Approved Loan Lenders offer pre-approved loan options to potential borrowers who meet specific benchmarks. Generally, a financial institution will pre-approve you for a digital personal loan if: You have a good credit score. You can clear outstanding bills quickly. You have a steady source of income. Your transaction rates and bank balance are satisfactory. You don’t have any default EMIs. You have a record of repaying previous loans, credit card bills, etc., on time. Do you want to apply for a pre-approved loan? If yes, consider checking your eligibility through your net banking account. #2 – Documents Required To Apply For A Digital Personal Loan Lenders offer a pre-approved loan to potential borrowers who they find eligible for a personal loan. It means they already have access to your KYC and financial documents. So, there are fewer chances that you will need to submit a lot of documentation. In most cases, you may not have to submit any documents. But what if you aren’t an existing customer of the financial institution? Then you will have to submit the following when applying for a digital personal loan: 6-month bank statements Last three months’ salary slips A cancelled cheque KYC documents like an Aadhaar card, passport, or PAN card. #3 – Applying For A Digital Pre-Approved Personal Loan Your digital personal loan application process begins after you receive the pre-approval offer. The good news is that the process is straightforward. Here are a few simple steps to apply for a pre-approved personal loan online and get quick disbursal. Login into your net banking account or the lender’s mobile app. Head to the pre-approved personal loan section. Read through the various pre-approved loan offers and their details. Complete the application form by choosing a repayment period and loan amount. Wait for the funding to credit your bank account after successful verification. Are you pre-approved for a digital personal loan? You can contact your bank representative to get answers to your queries. Or, you can log into your net banking account to access this information. #4 – The Benefits Of Digital Personal Loans Quick Processing and FundingWith a pre-approved loan, the lender has already assessed your eligibility. After successfully verifying your application, the funds will quickly be disbursed to your account. Hence, being pre-approved serves as a safety net for emergencies. Flexible Loan Period Since the loan was extended to you by the lender, you have the upper hand in choosing a loan repayment tenure. Usually, loan periods range between 12 and 60 months. So you can choose a timeline that fits your repayment capabilities the best. Competitive Interest Rates Interest rates of digital personal loans are often lower than what you would be charged without pre-approval. Since you are pre-approved, the lenders are confident that you are a trusted borrower. Hence, they become sure to offer you competitive interest rates. Minimal DocumentationExisting customers don’t have to worry about a lengthy documentation process. The bank or NBFC already have your KYC and financial details. So, the documentation you must provide will be minimal. Better Financial PlanningWhen you apply for a loan, you can’t be sure it will be approved. And in case of rejection, you will be left struggling with financial planning. A pre-approved loan makes financial planning more manageable by giving you a clear idea of how much funding you can borrow. Discounts And OffersSometimes, your lender will offer additional benefits, such as processing fee waivers, EMI holidays, and lower interest rates. Such perks can help you significantly reduce your overall debt in the long run. [B-02] Final Thoughts The benefits of pre-approval are numerous. Hence, you might be tempted to opt for the first digital personal loan offer that comes your way. However, just like your lenders, you should check the credentials of prospective lenders. This will help you stay safe from dodgy sources that use attractive offers as a facade to lure victims. Look for trustworthy lenders. These institutions offer unique features and better deals, like Piramal Finance. For example, a digital personal loan from Piramal Finance offers the following benefits. Club income for higher loan eligibility Enjoy zero pre-payment and foreclosure charges Choose pocket-friendly monthly EMIs And more. Check the personal loan webpage to learn more and apply for pre-approval.
08-11-2023
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Personal Loan

Personal Loan in Nagpur: Apply Online @ Low Interest Rate

Do you lack the funds to fulfil your obligations? Are you looking for a low-interest-rate loan that will solve your problems? Then, a personal loan is a solution for you. A personal loan is the best way to meet financial liabilities without pledging any assets for collateral. These are unsecured loans and are sanctioned quickly. You can apply for personal loan for many reasons like paying off medical bills, renovating a home, wedding expenses, purchasing expensive appliances, travel expenses, or even paying off existing debts. In this article, you will learn how you can get the best personal loan in Nagpur at a low interest rate. [B-01] Features of a personal loan Some of the most common features of a personal loan are as follows. Interest rates of a personal loan in Nagpur start from 12.99%* per annum. Personal loans have flexible repayment tenures ranging from 12 to 60 months. You can apply for any amount between Rs. 1 lakh to Rs. 10 lakhs. There are no or low pre-payment and foreclosure charges. Personal loans in Nagpur have pocket-friendly monthly EMIs. The documentation process and disbursal of personal loans are quick. You can club your and your spouse’s income for higher loan eligibility/ No collateral is required. What are the eligibility criteria for a personal loan in Nagpur? To be eligible for a personal loan in Nagpur, you should meet the following criteria. You must be a resident of India to apply for a personal loan in Nagpur. Your age must be between 21 and 70. A salaried employee, a self-employed professional or non-professional, an employee of the State, Central, or Local government, or an employee of the public or private sector can apply for a personal loan in Nagpur. You must maintain a credit score of 750 or above to be eligible for lower interest rates. What documents do I need to submit for a personal loan in Nagpur? You have to submit the following documents. Identity proof: Voter ID, Aadhar card, PAN Card, driving license, or passport. Proof of residence: You can submit a copy of your Aadhar card, ration card, driving license, passport, voter ID, electricity bills, and gas connection bills. Proof of Age: PAN card, Aadhar card, birth certificate, SSC certificate, voter ID or any government-issued document can be used as age proof. Loan application document with your signature. Bank statement (past six months). Additional documents required for salaried applicants: Salary slips (past three months) Income tax returns or Form 16 (past three months) Additional documents required for self-employed individuals: ITR (past three years) Balance sheets and P/L statements for the past three years How can you apply for a personal loan in Nagpur? You can apply for a personal loan in two ways. You can apply online. Direct online applications are accepted at the bank’s or NBFC’s website. All documents can be uploaded with the application form. You can apply in person at your nearby branch by going there with the necessary documentation. You will be assessed with all the documentation. How to get a personal loan in Nagpur at lower interest rates? Before you start searching for a personal loan in Nagpur with a low interest rate, there are a few things to consider. Pick a lender who can offer you loan terms that are adapted to your specific circumstances. Make sure you have a high credit score before applying for a personal loan in Nagpur as this determines the interest rate you will pay. If your credit score is low, the interest rate on a personal loan will be higher. Also, before applying for a personal loan in Nagpur, evaluate your requirements and the amount you need for the expense. If you do not calculate your needs, you might borrow more money than you need. You will be required to pay interest on the higher loan amount. If you get a loan for less than you need, you might be forced to get another loan. The second loan may have a higher interest rate. This will also affect your credit score. Weigh the advantages and disadvantages of several personal loan possibilities before selecting any one of them. Compare all terms before making a selection. Research the interest rates for each loan before choosing a loan that suits your needs and preferences. The most effective way to compare different personal loan interest rates is by using online calculators. The planning will help you have a straightforward borrowing experience. It will allow you to make an error-free decision. If your employer has a loan or other financial product partnership with a bank or non-banking financial institution, you can approach this lender because you might get exceptional interest rates on your loan. [B-02] Conclusion Availing of a personal loan may be the best way to acquire funds for your urgent requirements. However, some people find it difficult to get a personal loan because they are unsure whether they are eligible for such loans. Applying for a loan is not a complicated process. Personal loans in Nagpur are approved swiftly once you provide the required documentation. If you do not know where to begin, it is best to consult an expert. Piramal Finance can help you to get low-interest-rate personal loans in Nagpur. We can assist you in everything ranging from documentation to disbursal of loans. We offer ease of access, convenience, a 100% transparent process, and customer support. We also provide online services to help you obtain a personal loan hassle-free and from the comfort of your home. Contact us now to get started.
08-11-2023
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Business Loan

Flexi Loan Is the Ideal Way to Meet Your Working Capital Needs

Businesses need funds to meet their business expenses, be it buying raw materials, paying employees or other day-to-day expenses. The funds needed are called working capital. A lack of free-flowing working capital can disrupt the smooth functioning of an organisation, and it may require working capital finance to bridge the gap. Flexi loans offered by financial institutions can help businesses deal with a working capital crunch. [B-01] What are working capital loans? A business may have to borrow funds to cover the working capital needs, known as working capital finance. All business organisations do not have steady revenues or continuous sales throughout the year. On the other hand, expenses like rent, salaries, and utility payments do not pause. Working capital loans help a business finance its routine short-term requirements. They are not suitable for asset purchases or long-term investments. These operational loans help organisations deal with a financial crunch during a lean period or when the receivables may be delayed due to unforeseen reasons. With the help of these loans, a business can continue its operations without any hindrance. Working capital loans may be secured, where you may have to offer some collateral. They may be unsecured, where no collateral is required. What is a Flexi loan? Flexi loans are one of the most popular working capital finance options. A Flexi loan is essentially an overdraft facility where a limit is sanctioned for a fixed tenor. You can withdraw the amount you want within the approved limit. There is no limit to the number of withdrawals you can make within the sanctioned tenor. What are the advantages of Flexi loans for working capital finance? Flexi loans are the perfect solution for your working capital needs. These loans offer the following advantages. 1. They have high pre-approved limits. You can get a pre-approved limit sanctioned for a Flexi loan based on your credit score. The higher your credit score, the higher the limit. You can use the amount from your approved limit as per your requirements. With a Flexi loan, you are not burdened with funds you do not require, and at the same time, you are not left without funds when you need them. 2. You get flexibility. Working capital needs can be unpredictable. Sometimes, you may need funds at short notice. Waiting for a loan to get sanctioned can result in missing the business opportunity. You do not have to worry about this aspect when you use a Flexi loan. You can withdraw the funds whenever the need arise and however much you require. In other types of loans, you may get a loan sanctioned and not use it or may not use it in its entirety. In such cases, you still have to pay interest on the entire amount. You do not face any such issues with a Flexi loan. 3. The EMI burden is lower. Your EMIs depend on the amount you borrow, the loan term and the working capital loan interest rate. When you get a loan sanctioned, you pay interest on the entire amount from the day of your loan disbursal. However, in the case of a Flexi loan, you pay interest only on the amount you utilise from your approved limit. This can help you reduce your monthly burden, which can be a huge relief, especially in the lean period when your revenues are already low. 4. You can pay the interest component only. Another advantage of Flexi loans is that you can pay only the interest component of your loan during the loan term. You can repay the principal at the end of the loan tenure. For a working capital loan, you need to pay the principal and the interest before the tenure. It increases your EMI. 5. Flexi loans are unsecured loans. Working capital finance is the lifeline of a business. The need for collateral to get a loan can put a spanner in the wheel but not with a Flexi loan. You do not have to give any collateral to get a Flexi-loan, reducing the paperwork. The time taken for loan approval is not dependent on pledging an asset. You can get unsecured loans of any amount provided you meet other eligibility criteria. 6. There are no partial pre-payment charges. Lenders may charge some penalty if you pre-pay a loan. A Flexi loan is like an overdraft facility; if you have surplus funds, you can pre-pay and adjust your limit without paying anything extra. When in need, you can withdraw the funds again. As a result, your business will benefit, and you can clear your debt fast once your sales increase. 7. There are instant approval loans. For a business, it is crucial to have access to working capital finance at short notice, if not immediately. You can get approval for a Flexi loan instantly and get funds in your account within 24 hours. Many lenders provide instant approvals and pre-approved loans. How to get a Flexi loan? You can fulfil your working capital finance requirements with a Flexi loan. You need to submit the following documents to get a Flexi loan. Your PAN Card, Aadhaar Card, Passport, Driving License, or Voter’s ID Card. Telephone bill, water or electricity bill, or property tax receipt. Property Document Account statement What are the eligibility criteria for Flexi loans? The age of salaried applicants should be from 21-70 years. They should be employed in government institutions, private sector companies, MNCs or related companies, partnership firms, etc. The age of self-employed applicants should be from 23 years to 70 years. They should be self-employed professionals like doctors, architects, lawyers, business owners, proprietors, partners, etc. Check your eligibility before you apply for a Flexi loan. [B-02] Conclusion The right type of working capital finance can ease your day-to-day fund requirements and also help you save costs. Flexi loans offer a convenient way to finance the operational costs of your business. Piramal Finance offers low working capital loan interest rates and a hassle-free borrowing experience to help your run your business smoothly. Learn more about how you can get business loans now. Piramal Finance provides comprehensive guides and information on personal and business finance. Read more now.
08-11-2023
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Personal Loan

How Can You Close Your Personal Loan In A Few Steps?

A personal loan is a great way of obtaining credit to fund your unexpected financial requirement for many purposes without the need for any collateral. However, it is required to repay the loan amount along with the interest amount. According to experts, paying off the debt is the best way to reduce your financial burden. Even though you pay off your loan and are done with the obligation to your bank or lender, it’s still in your best interest to close the loan with proper procedure. This is why it is important to know the right procedure for closing a personal loan. [B-01] What is a Personal Loan? A personal loan is a credit instrument offered by a bank that can be used as immediate assistance to fulfil urgent cash needs without pledging an asset as collateral for the loan’s repayment. A personal loan can be used for many purposes like home renovations, wedding expenses, international travel, the purchase of high-end electronics, and down payments on mortgages. A personal loan is substantially more difficult to obtain than other types of loans. Personal loan applications are typically sanctioned in less than a week and are generally processed more quickly. Various banks have different personal loan interest rates, although they typically range from 15% to 20% annually. Closing a loan should be a top priority since if neglected for long periods, debts continue to mount. Different Types of Personal Loan Closure 1. Pre-closure A pre-closure of a loan happens when the borrower chooses to pay off the personal loan before the set tenure. Most of the time, The borrower has two options: making a minimum of 12 EMI payments or pre-closing their personal loan after a year. When the loan is foreclosed, The borrower will be responsible for paying the current month’s EMI, any unpaid balances, and the foreclosure fees. 2. Regular closure In regular closure of a loan, the borrower closes the loan after paying off the EMIs on the dates agreed upon each month and closes the loan when the tenure, which was mentioned in the loan contract, is over. Why is it Important to Close a Personal Loan? Closing a personal loan is required for a variety of reasons as listed below: lowering interest costs reducing the burden of debt There are no unpaid debts against your name. Reduced EMI values against your name if you want to take up a new loan or make an investment. Allows for better future loans or investment chances with the same lender. It is also important to avoid any defaults in loan payments to maintain a good credit score. Documents Required to Close a Personal Loan Personal Loan Document: You need to submit all documents related to your personal loan, bank statements showing repayment of the loan, etc. Identity Proof and Address Proof: You need to submit proof of identity and address proof which may include a passport, Aadhar Card, PAN Card, or any other government-issued identity document. Additional loan-related documents: The loan approval letter, loan account statement, and other documentation provided by the bank fall under this category. Step By Step Procedure to Close a Personal Loan A Regular Closure of Personal Loans Happens When an Individual Closes the Loan once the entire tenure has been completed. After fully paying back your loan, you need to follow some procedures to close the loan. Once all of your loan EMIs have been paid, It is good to get in touch with the bank to confirm whether there are any remaining payments or all the outstanding debt has been paid. Because you might have some penalty if you had some late payment or some other unpaid charges on your loan if you had missed or paid some EMIs late. That’s why it’s crucial to contact your bank and confirm whether your loan account is ready to be closed or not. If everything is clear, then you can set a date for when you wish to complete the remaining procedures for the closure of the loan. If everything is in order, the bank will often send you the closure certificate either through postal mail or email. When you visit the bank, You must bring identification proof, the loan account number, and a cheque to check if there is any amount due. The bank official will check your documentation and loan account before proceeding with the closure of your loan. Once you have finished all the procedures, your account will be closed automatically by the bank. You must collect a “Non-Objection Certificate” (NOC) from the bank As it serves as proof that the loan has been closed. The certificate that there is no unpaid payment and that the borrower has fully repaid the loan. You can also reach your bank customer care centre and ask for assistance in closing off your personal loan. 3 Important things you should keep in mind when closing a loan A personal loan does not get close just after paying down the loan balance alone. you need to follow some specific procedure to completely close a loan. Here are the 3 things you should remember while closing a loan: You must never forget to collect back the original documents that you have submitted to the bank at the time of loan application. You must submit a written request to your lender organization so that your CIBIL report gets updated after the loan closure. Check to see if the same was completed on time as well. Also, check whether the same has been done on time or not. In the case that you can’t go to the bank at the time of closure, then you can authorize a person to carry out the proceedings on your behalf but this can only be done with the bank’s prior approval. [B-02] Conclusion It is important to close a personal loan following adequate procedures even after you have repaid the loan. Once your personal loan has been closed, you are free to pursue your other lending and investment options whenever you like! If you need any financial assistance or apply for a personal loan, Piramal Finance is at your service.
08-11-2023
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Personal Loan

How To Enhance Your Personal Loan Eligibility

Are you planning to go on a vacation? Hoping to renovate your house? A personal loan can help you borrow funds for different expenses and that too without collateral. You can better manage your debt with the help of personal loans. But to get a personal loan sanctioned, you have to be eligible for it. There are a few things you need to consider while applying for a personal loan. However, you need not worry as there are many ways to improve your personal loan eligibility. In this article, we will discuss the benefits and uses of personal loans. You will also learn a few tips on how to increase your personal loan eligibility. [B-01] What are Personal Loans? A personal loan is a loan that can be issued for any use except to invest in a business or in stocks. This kind of loan is provided with little or no documentation and does not need any security or collateral. The money from personal loans can be put to any financial use. You must pay it back according to the terms set forth by the bank, just like any other loan. Typically, a personal loan can be paid in simple equated monthly instalments over a few months to a few years. Benefits of a Personal Loan Here are a few advantages of a personal loan: Personal loans give you a lump sum amount that can be used all at once. Personal loans are approved comparatively faster which makes them helpful in times of emergencies. No need for collateral as they are a type of unsecured loan. The interest rates paid on personal loans are lower than that on credit cards. Personal loans come with very few restrictions on use and are flexible. These types of loans help you build a good credit score if you make your payments on time. How to Improve Your Personal Loan Eligibility? Below are a few tips that can improve your personal loan eligibility: 1) CIBIL Score: Lenders require information on your credit history. A good CIBIL score can assure your lender that you will repay the loan on time. This will help you get a personal loan faster. To have a good CIBIL score, you should have made your previous debt repayments of credit cards and other loans on time. 2) Higher Income: A higher income increases the likelihood of loan approval. This will serve as collateral for the lender to grant you the loan. You can increase your income by highlighting your additional sources of income, such as bonuses, variable pay, passive income from other investment opportunities, and so on. 3) Long-term Loan: Lenders usually provide repayment terms of up to five years. This leads to significantly lower monthly EMIs, which can be extremely beneficial. Long-term loan repayment has the advantage of allowing you to repay the loan at your own pace and in manageable instalments. Your credit score will improve if you make your EMI payments on time for long-term loans. 4) Avoid Multiple Loan Applications: Lenders run a credit report inquiry when you apply for a personal loan. These inquiries are recorded in your credit report as hard inquiries. Therefore, applying for several loans at once is a bad idea as it suggests that you are credit-hungry. You become a high-risk applicant as a result, and lenders might decline your request for financing. It is, therefore, best to weigh your options, use an eligibility calculator, and submit an application for a loan that meets your requirements. 5) Maintain a Good Debt-to-Income Ratio: The ratio of your gross monthly debt to your gross monthly income is known as your debt-to-income ratio. Suppose you have a home loan and you are paying an EMI of Rs. 40,000 each month from your monthly income of 80,000. Your debt-to-income ratio in this case would be 40,000/80,000= 0.5 which is 50%. This means that 50% of your income is going into paying your debts. To close this gap, you can either raise your income or pay off your debts. This will increase your eligibility for a personal loan by a debt-to-income ratio of 20% to 35%. 6) Amount of Loan: Apply for the appropriate loan amount to increase your personal loan eligibility. Using a personal loan eligibility calculator, you can determine how much loan you are eligible for based on your income, existing debts, and other factors. 7) Job Security: In addition to the above-mentioned factors, the stability of your employment is also very important for personal loan approval. Frequently changing jobs indicates irregular employment, which can result in rejection. 8) Choose an Appropriate Lender: Finally, to improve your chances of being approved, submit an application to a bank that meets the minimal requirements for personal loans. For instance, it’s not particularly difficult to meet the eligibility requirements for a Piramal Finance Personal Loan. Just a few conditions such as you must be an Indian citizen and between the ages of 23 and 55 and you must have a steady source of income and earn at least the city’s minimum wage. [B-02] The Bottom Line The personal loans you take should be a good decision after closely looking at your ability for loan repayment. You can consult any lender of Piramal Finance before making any decision. They will assist you in getting a personal loan approved easily and determining the best repayment option for you based on your monthly earnings. They will guide you through the entire process. To read similar blogs, go to the Piramal Finance website. There, you can find more information about personal loan eligibility.
08-11-2023
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Personal Loan

Apply Personal Loan for Travel/Vacation at Low Interest Rate

Personal Loan for Travel is available at a lower interest rate. All you need to do is bring your identity proof, salary slips, address proof, income proof, and job certificate. A personal loan for travel is an unsecured loan. It can be used to pay for your vacation. This loan requires no collateral and has a low-interest rate. [B-01] What is the Purpose of a Personal Loan for Travel? A personal loan for travel allows you to fund your trip. It is done without depleting your savings or draining your bank account. Vacation loans are a simple way to fund your trip. You can finally take that long-desired foreign vacation. You can take a trip with your entire family and spend quality time with them. You can celebrate special times by travelling to exotic locations and making memories. You can stick to your budget without exceeding it. How Do I Determine My Eligibility for a Personal Loan for Travel? Applying for a personal loan for travel is simple. Keep your data, like your PAN number, Aadhaar number, and CIBIL score, handy for a quick approval. To be eligible for a personal loan for travel, you must meet the following criteria: Salaried individuals’ eligible criteria The age range should be between 22 and 58 years old. Lowest monthly income of 15,000 rupees. A year’s worth of work experience. Eligibility for Self-Employed Travel Loans Lowest monthly income of 15,000 rupees. The candidate must be between the ages of 22 and 58 years. One year of work experience. Travel loan documentation The data needed for travel loans varies by bank. But there are some common documents needed for all types of unsecured loans. The processing is fast to ensure the applicant receives the funds in time for a holiday vacation. Photographic application form For salaried employees, salary statements. Self-employed professionals’ profit and loss statement and balance sheet Bank description for the last six months PAN, a driver’s licence, an Aadhaar card, a passport, or any other data by the Government of India. It can be used as proof of address, identity, and age. Estimated trip costs, including air tickets, lodging, sightseeing, and so on. Age distribution of the individuals for whom the loan is being asked. Features and Advantages A personal loan for travel is a simple loan that is far safer than commercial loans. To make the most of this loan facility, it is best to educate yourself on the features and benefits of travel loans. Enjoy the lowest rate of interest and flexible repayment terms of up to 5 years. As this is an unsecured personal loan, no collateral or assets are debited against it. Quick registration, paperless record submission, and real-time verification make online travel loans a popular option. You can complete the loan application process with as little paperwork as possible. The loan term typically spans between 1 and 5 years, but many banks can extend or reduce your tenure depending on various circumstances. A personal loan for travel gives you at least a year to pay off your debt. Personal loans for travel are divided into easy monthly instalments. This ease of repayment does not apply to other types of loans that need payment over weeks or months. Many holiday package merchants have partnerships with numerous banks. The aspirant might apply with one of these banks, where documentation and payout would go effortlessly. Most banks run promotional programmes with low-interest rates, no processing fees, quick application and delivery of travel loans, and so on. These advertisements are often run over the holiday season. The processing charge is determined by the bank. Yet in the case of tie-ups with travel package distributors, there is no need for extensive due diligence. So the bank may issue the loan with a 0% service fee or at a cheaper rate. You may repay your loan using EMIs, instalments, post-dated checks, online payments, and other methods. Flexible tenures are often offered, and you may choose the one that best matches your needs. The lesser the EMI, the lengthier the term, and vice-versa. Some key points Personal Loan for Travel provides easy travel financing. But you should choose a place that is within your budget. Plan everything well in advance. Create a budget and stick to it when travelling. Avoid spending more when shopping while on vacation. Keep an eye on your spending. You can also book your trip using your credit card. But remember that credit cards have high-interest rates and that a Personal Loan For Travel is a better option. If travelling abroad, convert the costs into foreign currency to fix the funds needed for the trip. [B-02] Nutshell A personal loan for travel allows people to plan vacations. These are shorter-term and lower-value travel loans. They are usually unsecured loans. The interest rates are high. Personal loans for travel are granted based on the applicant’s ability to repay the loan and their credit score. If the applicant’s credit score is high, he or she may be able to negotiate a low-interest rate. Visit the Piramal Finance website to learn more.
08-11-2023
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Personal Loan

What Is The Good Interest Rate Of Personal Loan In Mumbai This Festive Season

The festive season is upon us, and it’s the time of year when we splurge on gifts, travel and celebrate with our loved ones. It’s also a time when we are short on cash and may need a personal loan to cover our expenses. The personal loan interest rate depends on various factors, such as the loan amount, repayment tenure, credit score and borrower’s income. But, with a little research, one can surely find a good interest rate on personal loans in Mumbai this festive season. So, what are the good personal loan interest rates in Mumbai this festive season? [B-01] What is a personal loan? A personal loan is an unsecured loan. It can be used for various purposes, from financing a large purchase to consolidating debt. Personal loans typically have lower interest rates than credit cards, making them a good option for borrowing money. Personal loan interest rates in Mumbai Personal loans are one of the most popular types of loans in Mumbai. They are easy to get and come with a relatively low-interest rate. This makes them a great option for people who need money for a short-term goal or emergency.Personal Loan Interest Rates in Mumbai start at 10.49% annually and go up to five years for repayment terms. Alternatively, public sector banks could provide personal loans with long payback terms and lesser interest rates. The details are provided in the table below: [B-02] In addition, personal loans with immediate loan disbursement and pre-approved personal loans are made available to clients by financial institutions. Personal loan interest rates also tend to be higher if you have a lower credit score. This is because lenders see you as a greater risk and are more likely to charge you a higher rate to compensate for this.If you are looking for a personal loan in Mumbai, shop around and compare personal loan interest rates from different lenders before making your decision. Mumbai personal loans: how can I acquire one? If you’re looking for a personal loan in Mumbai, there are a few things you need to consider. Here’s a step-by-step guide to help you through the process:#1. Know your credit score: It is one of the most important factors lenders scrutinise when considering a personal loan application. You’ll be better positioned to negotiate a lower interest rate with a good credit score.#2. Compare interest rates and fees: Once you know your credit score, it’s time to compare personal loan offers from different lenders. Make sure to compare the interest rate, processing fee and other charges that may apply.#3. Choose a repayment plan: Personal loans come with different repayment options; choose the one that best suits your needs and budget. #4. Negotiate: Don’t be afraid to negotiate with your lender for a better personal loan interest rate. They may be willing to work with you if you have a good reason for wanting a lower rate. #5. Apply for the loan: Fill out the personal loan application form and submit all the required documents. Once your application is approved, the money will be transferred to your account within a few days. Reasons for getting a personal loan for this festive season in Mumbai Here are a few reasons why opting for a personal loan for this festive season in Mumbai makes sense: — Avail of a higher loan: Since personal loans are unsecured, you can avail of a higher loan amount than a secured loan like a home equity loan or car loan. This can be handy if you have large expenses during the festive season.— Get access to quick and easy financing: Personal loans are one of the quickest and easiest ways to get funding for your festive season expenses. You can apply for a personal loan online and get approval within minutes.— No collateral required: As personal loans are unsecured, you do not need to pledge any collateral to avail of the loan. This makes personal loans an ideal option if you do not have any assets to offer as collateral.— Flexible repayment terms: Personal loans offer flexible repayment terms compared to other types. You can choose a repayment period that suits your financial situation and repay the loan over time.— Competitive interest rates: Personal loans come with competitive interest rates that make them affordable for borrowers. To get the best deal possible, you can compare different personal loan offers from banks and NBFCs before availing of the loan. Mumbai’s festive season loans: How to use them? With the festive season upon us, many of us are looking for ways to spread the holiday cheer. Personal loans can be a great way to do this. Mumbai is a city full of opportunities, and personal loans can help you take advantage of them. Here are some ways you can use a personal loan in Mumbai:1. To finance a holiday: Christmas is just around the corner, and if you’re thinking of a getaway, a personal loan can help you cover the costs.2. To buy new clothes: Whether you need a new outfit for an upcoming party or want to update your wardrobe for the new year, a personal loan can help you get all that you want.3. To pay for renovations: A personal loan can cover the costs if your home needs work. This can be a great way to increase the value of your home if you plan on selling it in the future.4. To consolidate debt: If you have various debts that you are struggling to keep up with, integrating them into one personal loan can make things much easier to manage. This can also save you money in the long run, as you’ll only have one interest rate to worry about.5. To fund a business venture: If you’re thinking of starting your own business, a personal loan can provide the funds you need to get it off the ground. [B-01] Key Takeaway The festive season is a great time to take a personal loan in Mumbai. Personal loan interest rates are at an all-time low, making it a great time to borrow money for any purpose. Whether you need extra funds for holiday shopping or want to consolidate debt, now is the time to get a personal loan. Visit Piramal Finance to locate similar articles and get started on determining whether to take out personal loans for this holiday season if you live in Mumbai. Learn more about personal loan interest rates with the assistance of an expert.
08-11-2023
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