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Personal Loan

What Are the Key Differences between Foreclosure and Preclosure of Personal Loan

The popularity of personal loans has grown due to the flexibility they offer borrowers. The money you borrow under a personal loan can be used for any purpose, which is not the case when you take out a car or housing loan. Along with the flexibility, personal loans also come with a relatively shorter repayment tenure and a significantly higher interest rate. It is because a personal loan is an unsecured loan. Thus, the risk involved is high. Due to high interest rates, many borrowers choose personal loan foreclosure. It allows them to save quite a bit, as they no longer have to pay interest. [B-01] What is Personal Loan Foreclosure? It is called personal loan foreclosure when you decide to pay off your entire personal loan before the end of the term. Foreclosure allows borrowers to save the money they would have spent on interest payments. At the same time, it reduces the burden of debt as the entire amount, including all the EMIs, is paid off in one go. However, personal loan foreclosure can happen only after a fixed period from the date of sanctioning the loan. A borrower can’t foreclose a personal loan during this period. The period varies from lender to lender, and some lenders do not have any foreclosure period. Additionally, borrowers will have to pay the penalty if they wish to foreclose a personal loan. When you pay off the loan in full, the bank will not get any interest payments. As a result, it will lose out on revenue. Therefore, a penalty has been mandated to discourage borrowers from paying off their debt before the end of the term. What is a personal loan preclosure? Personal loan preclosure is an alternate term for personal loan foreclosure. The prefix “pre” before the word “closure” signifies the end of the loan before the term limit. These terms are used interchangeably. However, the term personal loan foreclosure is much more common. It is regularly used in financial dailies. It is also part of the jargon used by financial executives. You will find the term regularly used in financial documents. Given that these terms denote the same thing, there is no difference between the two. As stated, when it comes to a personal loan, both mean the end of a loan before the term limit. Advantages of Personal Loan Foreclosure Advantages of paying off a personal loan before the end of its tenure: Lower interest cost By paying off the loan early, you can save on the interest that would have been charged on the remaining unpaid balance. This can result in significant savings, particularly if you have a high-interest loan. Improved credit score Paying off a loan early can improve your credit score by showing that you can manage your debts responsibly and make timely payments. This can make it easier for you to get approved for future loans or credit cards. More financial flexibility Once you pay off your personal loan, you will no longer have to make monthly payments to your lender. It will free up your cash flow, giving you more flexibility in managing your finances. Reduced stress Carrying a significant amount of debt can be stressful. Paying off a loan early can bring a sense of relief and financial freedom. How Personal Loan Foreclosure Works To close the loan, you would need to pay off the remaining balance on the loan, which can typically be done by making a lump sum payment to your lender. Before making the payment, it’s important to check with your lender. This way, you can find out the exact amount that you owe. It will help ensure you have the funds to repay the loan. You should also ask your lender about any fees or penalties for paying off the loan early. These can vary depending on the terms of your loan agreement. After the payment and the loan have been paid off in full, you should receive a confirmation. Your lender will notify you that the loan has been closed. It will prove that you are not obligated to make any further payments. This confirmation can typically be provided as a letter or statement. Documents Needed for Personal Loan Foreclosure For loan foreclosure in India, you need the following documents: A written request to close the loan, stating the reason for closing the loan and the date on which you would like the loan to be closed. A copy of your loan agreement, which will include the terms and conditions of your loan. Proof of payment for the remaining balance on the loan, such as a bank statement or check stub showing the payment. Any other documents your lender requires, such as proof of income or identity. It’s important to check with your lender to confirm the documents they require for closing a personal loan. Lenders may have different requirements, so it’s best to get this information directly from them. Effects of Personal Loan Foreclosure on Your Credit Score Paying off a personal loan before the end of the loan term can positively affect your credit score. When you pay off a loan early, it shows that you are financially responsible and able to manage your debts effectively. This can improve your credit score over time. It’s also worth mentioning that since closing a personal loan early can sometimes result in fees or penalties, it could offset any potential positive impact on your credit score. [B-02] Summing up Given the high interest rates on personal loans, most borrowers want to pay off their debt as soon as possible. This helps them save money that they would otherwise pay in interest. It also gives them the ability to take out more loans. However, there are numerous terms and conditions that a borrower must meet in order to avoid personal loan foreclosure. These include the full payment of pending EMIs, among others. If you are planning to go for personal loan foreclosure, refer to more blogs like this on Piramal Finance. You may also check out the financial services they offer.

08-11-2023

Personal Loan

How Can A Freelancer Avail A Personal Loan In India?

If a person who works for himself or herself has proof of income, borrowing will be easy. Before giving a loan, the lender checks the borrower’s required documentation and proof of income. So, a self-employed or freelancer can get the loan without any trouble if you have all documents in the same form they prefer and all the other required documents. So, how can a freelancer take a personal loan In India? Piramal Finance in India understands that these people have their own business that is not an organization. They own the business by themselves. But many individuals consider that it might be hard for self-employed or a freelancer to get a personal loan because they don’t have a regular paycheque. This is not the case at all. A person who works for himself or herself can easily get a personal loan, like any regular employee. Continue to read about their eligibility criteria, documents required, interest rate and more. [B-01] Eligibility Criteria for Personal Loan for freelancers in India The eligibility varies from bank to bank, but here are the general criteria that must be fulfilled for a personal loan to be approved: The person applying should live in India. At the time of applying, the applicant must be at least 24 years old. The applicant must be at least 65 years old when the loan is paid off. The applicant should generate at least the minimum amount of money they owe the lender. At least three years’ worth of job experience in the same business. The business should make at least Rs.1 Lakh a year. How Much Interest Will be Charged on a Personal Loan for Freelancers in India Different banks have different interest rates which usually range from 10.99% to 25%, depending on your status and the plans or policies you choose. To get a personal loan at around this interest rate, you must meet the criteria for eligibility. If you fit the bank’s needs and keep a good relationship with the bank, you may even be able to secure a better rate. Also, different lenders charge different interest rates for self-employed people based on their backgrounds. So, checking with the bank about the interest rate before getting a personal loan is essential. *Interest Rates: Interest rates vary from bank to bank, so it’s important to look at several banks before you apply. Documents Required In general, here are the documents that the lender might want. The papers should be accurate and perfectly valid. The form was filled out and signed. Passport size photo. Proof of Identity: Passport, Voter ID Card, or PAN Card. Age proof: Birth certificate or passport. Residence proof: a passport, a utility bill, or an allotment letter. Proof of income: Recent tax return slip and computation of income, the past 2 years’ financial statements and profit and loss signed off by a CA. Signature: Passport and Pan Card for signature verification. Bank statement: Statements from the last three months or passbooks from the last six months. For most lenders, these papers must be shown for a personal loan for freelancers in India to be approved. The loan could be used for just about anything when there’s no need to give a reason. It works for everything, but it also has some issues. Compared to other loan products, this one has a high-interest rate. So you should be aware if you want to get one. Before you choose a lender, you should look around a bit. How to apply for a Personal Loan in India if you are a Freelancer or Self Employed Person You have all the options for how to use the personal loan. You can choose to fill out the application either online or offline. The different ways to fill out the application are as follows: Online Application: To apply for a loan online, you must go to the bank’s website and give them your personal details. You could also apply through internet banking by using your login info. Visit the Nearest Branch: Go to the bank with all the vital paperwork, hand it out, and get the loan. Over Phone Call: To get the loan, you can also contact the customer service staff directly. Difference between a Personal Loan in India from a Bank and an NBFC for a Freelancer Many banks and NBFCs offer personal loans in India to self-employed people who are unmatched and flexible. But before you take out a loan, you need to know how the two lenders differ. The difference between these two types of lenders is that banks have strict policies, and some banks will give loans to people with good credit. On the other hand, NBFCs are more flexible about giving out personal loans but also have higher interest rates than banks. Things to Look for in Freelancer Personal Loans in India from Different Banks Rate of Interest: Always compare the interest rates that different banks offer to meet your own needs. EMI: The next thing you should remember is that different banks have different monthly EMIs. Compare how much each bank charges each month for almost the same loan. Time Taken to Get Approved: Most loans can be approved in three to four business days. But you should find out how quickly a bank can resolve your loan request. Turnaround Time: Review and compare how long it takes for a bank to process and pay out money. Check carefully because various banks have different times for disbursing money. Loan Term: It’s vital to compare different banks’ terms. You can choose the duration of time, but first, you should compare. Benefits of Personal Loan for Freelancers in India Competitive interest rates. No collateral. Transparency. Easy EMIs. Flexible tenure periods. The loan amount depends on how much the person can pay back. The loan money can be spent on anything you want. [B-02] Conclusion Almost all the banks and NBFCs in India offer personal loans to freelancers that are easy to get. Employees can easily get money to cover expenses like medical bills, marriage expenses, gadgets, higher education expenses for their children, home repairs, etc. You can also use a Bank Loan EMI calculator to plan your expenses over the whole period you have all the loans. Or if you want the best personal loan offers, visit Piramal Finance.

08-11-2023

Personal Loan

Most Popular and Easy Ways to Get a Personal Diwali Loan This Diwali

Diwali is a holiday that commemorates more than the triumph of good over evil. It also celebrates the arrival of a prosperous new year. People across the country buy clothes, jewellery, and gifts to celebrate this occasion. Many people use the event as an excuse to buy furniture, a new car, or finish up some much-needed home repairs. Spending on all the festivities can be difficult if you only have low savings. A personal Diwali loan is the easiest method to fund all your dreams this Diwali! A Diwali loan is a type of personal loan and has all the benefits of this loan category! [B-01] The Most Popular and Easy Ways to Get a Personal Diwali Loan This Diwali The process of obtaining a personal Diwali loan can be broken down into five easy steps. The following section explains everything you need to know about a personal Diwali loan. This includes the paperwork you’ll need and the application process. Step 1: Figure out your requirements. What are your reasons for wanting a personal Diwali loan? You need to calculate the exact amount you will need. A loan could come in handy if you need money for an expensive event like a wedding or house improvements. On the other hand, if the loan is just for small expenses, you may only need Rs. 50,000. Therefore, calculate the total amount you need. Step 2: Find out if you qualify for a Diwali loan. You should see if you qualify for the funds once you have determined how much you need. Both self-employed professionals and salaried individuals can apply for a Diwali loan. Salaried individuals working in government institutions, the private sector, partnership firms, MNCs, or related companies can apply. Furthermore, your age must be between 21 and 60 years old. Some lenders also ask for a minimum income. Therefore, you must earn at least Rs. 15,000 to avail of a Diwali loan. Additionally, some lenders also have work experience criteria. For example, you can only qualify for a personal Diwali loan if you have worked at your current company for six months or if your business is two years old or older. Step 3: Calculate your EMIs. Use an EMI calculator online to estimate how much money you will need to pay back per month on your loan. With it, you can adjust the monthly payment to better fit your budget. Step 4: Talk to the lender. The next step in the application process is to visit the lender. You can also connect with them online. The idea is to discuss the terms you are looking for. You can also ask about their additional charges, such as processing fees. This will help you understand the process. Step 5: Check and submit the paperwork. Gather the paperwork needed for a personal Diwali loan. Bank statements, pay stubs, or tax returns are all income proofs. Also, you have to submit a government-issued photo identification. For a Diwali loan, you have to submit the following documents: PAN Card ID Proof Address Proof Income Proof Bank statements Pay slips How can a Diwali loan help you? 1. You can get high loan amounts without security. A personal Diwali loan has a high borrowing limit of Rs. 10 lakhs. Plus, you can get this amount without putting up any security or collateral. This is the best feature of personal Diwali loans. You need not provide any of your assets as collateral. Anyone can avail themselves of this loan. Since you do not need to provide collateral, you can apply for this loan even if your income is low. You can qualify for the loan if you meet the lender’s minimum criteria and have a good credit score. 2. The application process is online. During Diwali, everybody is busy with other chores. So applying for a personal loan might be challenging. You can submit loan applications online. Online loan applications are quick and easy. They need only a few clicks. You can submit all documents online. Most lenders accept digital photographs as well as scanned copies. Therefore, you can upload the document to the portal and get it approved. 3. A personal loan can cover unexpected costs. Diwali is the season of unexpected expenses. When you apply for other types of loans, you are restricted in how you spend the money. You can use a personal loan whenever you want. Personal loans have low interest rates, flexible repayment plans, and speedy application procedures. Hence, personal loans can be a lifesaver during Diwali. 4. You get quick funding and rapid approvals. In most cases, you do not need to provide any assets as collateral. Therefore, the process of asset evaluation is void. Personal loans have faster processing times. So, you can get a personal loan for Diwali without hassle. Also, suppose you apply for a personal loan from a reputable lender. In that case, you can expect to receive the funds instantly. You will get the money within 24 hours after approval. This allows you to access instant funds without worrying about waiting periods. [B-02] Conclusion Personal Diwali loans are a convenient way to cover Diwali expenses. Their low interest rates, flexible terms, and fast disbursement are an advantage. If you are looking for a quick loan with a straightforward process during the festive season, Diwali loans are ideal. You can get personal loans from Piramal Finance for up to Rs 10 lakhs at interest rates as low as 12.99%. Personal loans have flexible repayment periods of 12 to 60 months. It means you can choose an EMI that fits your budget. Get a personal loan from Piramal Finance to help pay for all your Diwali plans and purchases.

08-11-2023

Personal Loan

What Should Be The Minimum Salary Or Income For Personal Loan?

Do you have unplanned emergencies? To meet your immediate financial needs, a personal loan is an excellent option. Personal loans are short-term loans provided by banks and financial institutions. They can be used to meet various expenses like weddings, home renovations, travel, and so on. In India, personal loans can be obtained without any collateral. These loans are credited directly to your bank account at a predetermined interest rate. The loan must be repaid in instalments over the course of the loan’s term. Processing personal loans is usually hassle-free and completely paperless. Hence, they are easier to avail of compared to other loans and financial instruments. Plus, the amount can be used for various financial requirements, making it highly flexible. Are you unsure whether you can get a personal loan? To help answer your questions, let us look at the factors that determine your personal loan eligibility. [B-01] Factors that Determine Eligibility for a Personal Loan Personal income and other factors that determine your personal loan eligibility: Income: Income is the first factor that determines your personal loan eligibility. In the case of salaried professionals, this will be a straightforward process, while self-employed individuals usually have to show proof of income to avail of a personal loan. Credit Score: The credit score is the most important factor other than your salary, that plays a huge part in personal loan approval. A credit score is a way for banks and financial institutions to determine how creditworthy a particular individual is, and it is based on several factors like credit history, economic behaviour, and other aspects. Generally, the higher your credit score, the larger the loan amount and lower the interest rate you will be charged. Age: The basic age requirement for most personal loan applications is between 18 and 65 years. While personal loans to pensioners are available, they may not qualify for income-based personal loans. Employment Type: In addition to income, the lender will also determine the individual’s creditworthiness based on the type of establishment they work at. Corporate companies, or MNCs, are usually preferred and improve the chances of getting personal loan approval. Work and business experience: Another factor that plays a role is the type of work, position, or business that the person works in. Salaried individuals in managerial or upper management positions have a much better chance of obtaining a loan. Meanwhile, individuals working in government companies or professions like CAs, architects, doctors, and others get loans at lower interest rates. Location: Where you live also determines whether you can obtain a personal loan. Usually, those living in metro cities like Mumbai, Bengaluru, Chennai, Hyderabad, Delhi, Pune, and others can avail of loans easier than those living in Tier-2 cities or towns. Who is Eligible for a Personal Loan? The basic criteria for personal loan eligibility are as follows: The individual must be an Indian citizen with an age between 21 and 60 years. The person should be self-employed or salaried with a minimum monthly income of Rs. 25,000 per month (for metro cities) or Rs. 20,000 (for tier-2 cities and towns). The applicant has to have at least 1–2 years of experience. Their minimum CIBIL score (credit score) has to be 750 or above. How to apply for a personal loan? The application for a personal loan can be made by visiting your lender or entirely online, most of which may not even require documentation if you are already associated with the financial institution. To apply for a personal loan, you need to follow these steps: Select the lender that you want to get the loan from. Select the personal loan that applies to you depending on your eligibility. Produce documents that are required by the lender (these could be proof of residency and identity like an Aadhaar card, PAN card, driving license, passport, water bills, electricity bills, or others), proof of income (salary slips, income tax returns of the last three years, or other documents), and a photograph of the applicant. Once the documents and application form are filled out, you can submit them at the nearest financial institution or bank branch. Alternatively, you can submit the entire set of details online by logging in to your lender’s website and filling out the required details. Once the documents and application are submitted, the financial institution will do some basic checks. If all the criteria are met, your loan amount will be disbursed swiftly into your bank account. However, if the personal loan application is rejected, do not lose hope, as you can always apply for a new loan or opt for another lender that matches your requirements. [B-02] To summarise To ensure that your chances of getting a personal loan are high, you must have a good credit score, and not have too many existing loans. This can hamper your chances of getting approval for the loan. If in doubt, consider consulting an institution like Piramal Finance. They have a free personal loan calculator that can help you calculate how much you can borrow depending on your income and credit score.

08-11-2023

Personal Loan

How To Apply For an Emergency Personal Loan Of Rs.50000

With an emergency personal loan, you can easily get the required amount of money in a very easy manner. Today, these loans are available at all times. If you need money at that particular time, then you should know how to take it. If you have not taken such a loan before, then you should know that it is a hassle-free loan and takes very less time to get it. When you are in a financial crunch and need some money to solve your problem then you can get an emergency personal loan. To obtain this loan, you will have to go through a few procedures but the good thing is that it is a hassle-free procedure. Here is how you can apply for a personal loan of Rs. 50000. [B-01] What is an emergency personal loan? An emergency personal loan is a type of loan that is given to individuals in the event of an unexpected financial need. This type of loan is usually unsecured and can be used to cover medical bills, travel expenses, home repairs, car repairs or any other unexpected expense. The loan amount is typically smaller than a traditional loan. The repayment terms of emergency personal loans are often shorter. Generally, applicants need to have a good credit score and a steady income to qualify for an emergency personal loan. What are the features of an emergency personal loan? An emergency loan is a type of loan that provides immediate financial relief in the event of an unexpected expense or financial hardship. Emergency loans are typically short-term, unsecured loans that are intended to be repaid within a few weeks or months. Some of the main features of emergency personal loans are: Quick Turnaround Time: Emergency loans can be processed quickly, usually in a matter of hours or days Flexible Payment Terms: Emergency loans are often available with flexible repayment terms to fit your budget Low-Interest Rates: Emergency loans typically come with low-interest rates, meaning you won’t be paying too much for the loan Short-Term Schedules: Emergency loans are typically available with short repayment terms, allowing you to pay it off quickly No Collateral Required: Most emergency loans don’t require you to put up any collateral to secure the loan. Eligibility criteria for applying for an emergency personal loan Before applying for an emergency personal loan, you must meet the following criteria: You must be a legal resident of India At the time of application, you must be between 21 to 60 years of age You must be employed with a private or public-sector enterprise You must have a minimum monthly income of Rs. 25000 If you are self-employed, you must have been in business for at least 3 years You must possess at least 6 months of experience in the present company, along with a total of 1 year of experience if you are employed in an organisation You must have a valid address proof such as Aadhar Card, Voter ID Card, or Passport In addition to a bank account, you must also have a valid PAN Card The borrower must have a good credit score of 750 or above You must also have important documents such as income proof, identity proof, and address proof How you can apply for an emergency personal loan of Rs. 50000? Applying for an emergency personal loan of Rs. 50000 requires you to meet certain eligibility criteria. Once you meet the criteria, you can begin the application process for the loan. Here are the steps you need to follow: Step 1: Research the various loan providers and compare their interest rates and terms. Step 2: Choose the loan provider that best fits your needs and fill out the loan application form. Step 3: Submit the form, along with all the required documents, to the loan provider. Step 4: Once the loan provider has reviewed your application, they will contact you with the loan approval or rejection. Step 5: Once the loan provider approves your application, you will need to sign the loan agreement and return it to the lender. Step 6: The loan provider will then disburse the loan amount to your bank account. Benefits of emergency personal loan There are various benefits of an emergency personal loan. These include: An emergency personal loan is generally easier to qualify for. It can also be approved in a matter of hours. This means that you don’t have to worry about the long approval process of other loan types. Emergency loans also allow you to access funds quickly. Since the approval process is so short, you can get your funds within almost 24 hours of approval. This ensures that you can address any pressing needs you have promptly. These loans are also unsecured. This means that you do not have to provide any collateral to get the loan. This makes them a great option for those who don’t have any assets to use as collateral. Finally, an emergency personal loan often comes with low-interest rates. This makes them a great option for those who need funds quickly and don’t want to pay too much interest. Overall, emergency personal loans offer several benefits to those in need of quick cash. This makes them an ideal solution for those who need money fast. [B-02] Takeaway In today’s fast-paced society, people like you and me need instant solutions to our problems. But what happens when you run out of money? And your needs are immediate? The solution is to apply for an emergency personal loan. The application process is simple and straightforward and can be completed online. For more information and help on emergency personal loans, you can also visit Piramal Finance. They are financial experts who can guide you on the best loans to apply for, interest rates and more.

08-11-2023

Personal Loan

Pros And Cons Of Personal Loan For Government Employees

Working for the Indian government has its perks. Getting large personal loans for longer durations is one of them! Banks readily offer personal loans to employees working in government offices or public sector undertakings (PSUs). These loans can be taken out without collateral and can be used for any purpose! However, you must meet some eligibility criteria. You must then select the right government personal loan scheme after considering its pros and cons. Sounds complicated? We’ll help you! Keep reading to find out everything there is to know about a personal loan for government employees and how you can make the most of it. [B-01] What are personal loans for government employees? Government employees can get a special personal loan at low interest. The tenure can be up to 72 months. Most major Indian banks offer such loans with interest rates as low as 10% p.a. There are little to no processing charges. The loan can be for any purpose. These include medical emergencies, higher education, home repairs, or other large purchases. You just need to meet some eligibility criteria. You also need to ensure you can pay the EMIs. You can calculate this using online credit scores and EMI calculators. Eligibility criteria to get a personal loan for government employees The criteria used to determine the maximum personal loan amount for government employees are rather lenient. The schemes are also more attractive. Here are the key criteria: You must be between the ages of 21 and 60. You must be an Indian citizen. You should be a salaried employee in a PSU or any government department. You must have a job experience of 2 years or more. You should also have at least one year of experience with your current employer. You must have a monthly salary of Rs. 25,000 or more. You must have a CIBIL score of 750 points or more. The exact criteria may vary slightly based on the lender. So, you must consider a lender’s terms and offers carefully to ensure your eligibility. Documents needed for getting a personal loan for government employees You must prepare these documents in advance. You can submit them along with your application. ID proof Address proof Salary slips, usually for the last two months The bank account statement, usually for the previous three months Employee ID card Photographs Form 16 Benefits of taking a personal loan as a government employee in India Banks and NBFCs will provide you with personal loans with various benefits if you are a government employee. This is because you are assumed to have a higher income and more stability and reliability. Attractive interest rates and no hidden fees A personal loan for government employees is usually offered at a lower interest rate. It starts at just around 10%. There are no hidden charges. The processing fee is zero or negligible. Instant approval A personal loan for government employees will likely get quick approval with fewer hassles. This ensures quicker disbursals of the borrowed money. Larger loans and tenures Government employees can easily obtain loan approval for up to Rs 30 lakhs. This is usually enough to meet all their funding requirements. Moreover, you can get loans with tenures of up to 72 months as a government employee. Meanwhile, the limit for others is 60 months. Minimum documentation and easy verification You just need a few documents for any personal loan. Also, the verification may be more successful for government employees. This is because lenders tend to trust them more. Easy loans without collateral This is a general benefit offered by all personal loans. But government employees often get quick loan approvals. This is true even if they don’t have large assets to indicate their wealth. The cons of taking a personal loan as a government employee Personal loan programmes for government employees have similar risks and limitations as other personal loans. Here are some points about personal loans that you must keep in mind: Higher interest rates and processing fees Personal loans have higher interest rates than other types of loans. This is because lenders take higher risks by giving loans without collateral. The processing fee may also be higher. Prepayment penalties You will usually have to pay penalties to repay a personal loan early. Some loans for government employees may not have such penalties. Risky and tough to obtain Personal loans of any type require you to fulfil multiple criteria. This is to assure lenders that you will pay the EMIs on time. This is because there are no collaterals. Also, missing any payment will damage your credit score. And this makes it tough to get future loans. A personal loan for government employees can help you reduce these drawbacks. But some expert guidance can help you sail through these issues. Steps to take a personal loan for a government employee Ready to benefit from personal loan schemes for government employees? Just follow this simple online process: Visit the loan provider’s website. Read their terms and choose the best personal loan for government employees. Select your mode of employment. Fill out your contact information to sign up. Choose the amount you would like to borrow. Select the repayment tenure. Upload scans of the required documents. Fill in any other requested details and submit your application. Wait for the lender’s team to contact you to finalise the loan. Once the process is complete, you should keep checking your specified account. This is because a personal loan for government employees is usually disbursed within a few hours or days. [B-02] Summing up We saw that a personal loan is a great choice to meet your financing needs if you work for the government. However, any personal loan comes with risks. So, you must judge the lender’s terms, your paying capacity, and your adherence to the criteria carefully. This will help you choose the right lender, scheme, and loan tenure. If all this sounds complicated, you can always consult a renowned financial agency like Piramal Finance to make things easy! This trusted organisation will give you expert guidance. It will also offer the best personal loans for government employees to get you going.

08-11-2023

Personal Loan

What Is a Personal Loan And What Are Its Features You Should Know?

With personal loans becoming more and more popular in the current market because of their flexible nature, it’s important to know what they are and what sets them apart from other forms of financing. Personal loans are usually small, unsecured loans that you can use to finance virtually anything you need or want, as long as the purpose aligns with the terms of the loan agreement. A typical personal loan ranges from Rs 10,000 to Rs 40 lakh, with an interest rate of 7.90% p.a. and 49% p.a. depending on the institution you’re taking it from. In this article, we’ll be discussing what a personal loan is and its features to help you educate yourself before taking one out. [B-01] What is a personal loan? A personal loan is a type of unsecured loan where you don’t have to put anything down as collateral. This means that you can borrow money without having to prove that you have enough income or assets to repay the loan. But lenders do need to check your credit history, and you must have a steady income source. Your creditworthiness is determined by your CIBIL score. It ranges between 300 and 900. The higher your credit score, the better your chances are for personal loan approval. A CIBIL report includes a condensed list of your credit cards, current loans, personal information, payment history, and any delinquent balances. The last 36 months of the borrower’s credit history are used in the assessment of this report. Features of a personal loan A personal loan can be used for any number of things, such as paying off debt, starting a business, or taking care of an emergency expense. If you would like to know more about the features of personal loans and what you should know before applying for one, keep reading! Easy application process: The application process for a personal loan can be easy and simple. All you need to do is fill out a form and send it in, or go online and fill out the information. The form will ask for basic information, like your name, address, date of birth, and employment status. There is no need for collateral: You can obtain a personal loan without having to put up any collateral, such as a house or car. Only your creditworthiness, which is determined by factors like your credit score, income, payment history, employer reputation, etc., will determine whether the loan is authorised or not. Flexible EMI period: A personal loan typically has an adjustable tenure between 12 and 60 months. The longer the term, the lower your EMI will be. Speedy disbursal: When an application is accepted, the amount is often disbursed within a few hours. But if you can accept a loan offer that has already been pre-approved, processing times could even be as fast as a few minutes. Less documentation: You’ll find fewer paper trails while applying for a personal loan than in other loan processes. All you’re required to keep at the ready are ID proof, address proof, and income proof. Cover versatile expenses: A personal loan can be used for home improvements, debt consolidation, car repairs, vacation expenses, weddings, medical bills, etc. It can cover almost all of your personal needs. Loan amounts are flexible: The amount you can opt for in the personal loan is flexible. It ranges between Rs 10,000 and Rs 40 lakh. But again, the approval of the final amount depends on your credit history and income source. Banks’ current personal loan interest rates BanksInterest Rate Range p.aProcessing FeeLoan AmountRepayment TenureState Bank of India10.65% to 13.15%Nil to 1.5%24,000 to 30 lakh6 to 72 monthsHDFC Bank11%-21%Up to INR 5,00050,000-40 lakh12 to 60 monthsICICI Bank10.75%-19%Up to 2.5%Up to INR 50 lakh12 to 72 monthsIDBI Bank11%-15.5%1%25,000 to 5 lakh12 to 60 monthsBank of Baroda10.25%-17.6%1% to 2%50,000 to 20 lakh48 to 84 monthsBank of India9.75%-14.25%0.5% to 1%Up to 20 lakh3 to 5 yearsCentral Bank of India11.75%-11.95%1%Up to 15 lakhUp to 84 monthsPunjab National Bank10.8%-15.85%1%Up to 20 lakhUp to 72 monthsAxis Bank12%-21%1.5% to 2%Up to 40 lakh36 months and aboveFederal Bank10.49%-17.99%Up to 3%Up to 25 lakhUp to 48 monthsCanara Bank14.3%-15.8%0.50%NAUp to 84 monthsPunjab & Sind Bank10.55%-12.15%0.5% to 1%NAUp to 72 monthsUCO Bank11.95%-12.2%1%Up to 15 lakh60 to 84 monthsKotak Mahindra Bank10.99% onwardUp to 3%Up to 25 lakhUp to 60 monthsYes Bank10%-24%Up to 6.5%NAUp to 60 monthsSouth Indian Bank12.5%-17.9%2%Up to 20 lakhUp to 60 monthsIDFC First Bank10.49% onwardsUp to 3.5%Up to 1 croreUp to 60 monthsBank of Maharashtra8.9%-14.7%1%Up to 20 lakhUp to 84 months [B-02] Final takeaway If you intend to secure a personal loan for any purpose, be careful to investigate the institution’s reputation for reliability. Be sure you are in a strong position to repay the EMIs in the long term, and always seek a financial expert’s help if you have any questions or confusion. One such financial expert you can go to is Piramal Finance. They guide you through the whole personal loan or other loan processes. They’ll also suggest which financial institutions you should choose. The company’s financial advisors are always ready to resolve any of your issues until the end of the process.

08-11-2023

Personal Loan

Importance of a Salary Slip to Avail a Personal Loan

Personal loans are loans issued by banks and other financial institutions that are not backed by collateral. They can be used to cover unexpected expenses or costs. A personal loan is a typical way to pay for things like higher education, weddings, medical bills, etc. Here you will understand the importance of having a personal loan on a salary slip. [B-01] What is a salary slip? If you work for a company every month, you should get a “salary slip” from your employer outlining the specifics of your income. The salary slip will include any deductions and net pay for the month. The various components, such as base income, housing allowance, dearness allowance, and performance bonuses, are detailed on a pay slip. The play slip will include provident fund, professional tax, and tax withheld at source (TDS). The pay slips serve as evidence of earnings. New employers, financial institutions, credit card providers, and tax authorities frequently require salary documentation. A credit report is a must if someone wants to apply for a loan. You can use the salary slip and proof of income. What is the minimum salary for personal loans? When it comes to personal loans, there is no set minimum income requirement. The loan officer will look at numerous aspects to determine if your salary is sufficient to qualify for a personal loan. The personal loan on a salary slip will be decided based on the following criteria. 1. Where do you live? Your location influences the minimum salary required for a personal loan. The minimum wages in Tier-II cities and towns are often lower than in Tier-I cities and towns, including major metropolitan areas. Therefore, where you stay affects your repayment ability. 2. Do you own a home? The minimum wage requirement also depends significantly on whether you own a home or rent a property. This is because if you have to pay rent, you will have less money to put toward your loans. Therefore, you can qualify for lower amounts. 3. Do you have other debts? The minimum income requirement will increase if you have other loans. It will also increase if you are paying off credit card bills. Therefore, check your liabilities before applying for a loan. 4. How is your credit history? Credit history plays a significant part in evaluating loan eligibility. A strong credit history indicates that you make payments on time. You are more trustworthy, and this will result in looser qualifying standards. However, loan applications might be denied if your credit history is poor. If you have missed several payments, it will affect the personal loan application. Why is a personal loan on a salary slip important? A personal loan on a salary slip is necessary for several reasons. Here are some reasons why you should submit your salary slip when applying for a personal loan. 1. Income tax planning Different portions of your income, such as the basic pay, HRA, leave travel allowance, etc., may be subject to different tax rates. To minimize your taxable income for the given fiscal year, it is helpful to grasp the worth of the many parts that make up your income. 2. Employment verification In legal terms, a salary slip establishes employment. You may be required to provide copies of your most recent pay stub while applying for a personal loan. It is proof that you are earning as much money as you claim. It also helps the lender determine how much money you are paying in taxes and whether you can afford the EMI. How can self-employed people show salary slips? You have put in many long hours, followed your heart, and have a successful freelancing job. Congratulations! Being your boss has several benefits, including allowing you to craft a schedule that works for you and your family. However, there are also downsides, such as having to deal with circumstances where you need to provide evidence of income to get a loan. In general, financial institutions feel more secure with the steady income of those who work for a single company and receive a set wage. They are cautious of the finance of self-employed individuals because self-employed income is regarded to be less dependable. If you are a freelancer or a business owner, you will probably not give yourself pay slips. Instead, you can provide other documents, such as your income tax returns. These can serve as alternative documents when applying for a personal loan on a salary slip. What alternative documents can you provide for a personal loan on a salary slip? You might lose one or two salary slips here and there. While banks ask for income proof when providing a personal loan on a salary slip, not everyone can give it. Here are some alternative documents you can provide: 1. Bank account statements You can use your bank account statements to show how much money you earn. It is a great idea if you earn money from several sources. If you are a freelancer or business owner, you can open an account specifically for your business income. Statements of these accounts can be used as income proof. 2. Income tax returns or Form 16 You can also submit a copy of your income tax returns or Form 16 from the latest financial year. However, this might not help you much if your salary has increased recently and you are depending on this salary. 3. Income certificate Some employers may provide you with an income certificate or an offer letter which includes your salary. You can also submit this as proof of income when applying for a personal loan on a salary slip. A key point to remember is that the lender wants to confirm your income. Therefore, any legal bank-issued or employer-issued document may be accepted. You can also ask how you can provide income proof if you cannot provide these documents. [B-02] Conclusion Salaried employees receive pay from their company and typically on a specified day. A salary slip is one of the most crucial papers for an employed professional, despite its seemingly small size. When applying for a personal loan on a salary slip, you must submit salary slips for the latest 2-3 months. Therefore, keep these documents safe. If you are facing any issues getting a personal loan, you can contact Piramal Finance for the same!

08-11-2023

Personal Loan

Benefits You Can Avail While Taking Personal Loan In Festival Season

Is there something you’ve had your eye on for a while but couldn’t afford? End your wait this festive season by taking a special festive loan! These attractive instant personal loans are available at the lowest interest rates and minimal processing fees without any collateral. And they are offered by most top banks and NBFCs during festivals like Holi, Dhanteras, and Diwali. With a festive loan, you can get your hands on the money you need quickly and use the amount for just about anything! You can buy gifts and festive apparel, purchase your dream car, cover wedding costs, or even take care of home repairs. The possibilities are endless! Let’s learn more about festive personal loan benefits and the application process so you and your loved ones can make the most of the festive season. [B-01] The Benefits Of Personal Loans In The Festive Season People naturally plan on spending more during festivals to brighten up their celebrations. And lenders offer various personal loan benefits to reap this opportunity and maximise their lending. Here are the key benefits of taking a personal loan designed for the festive season- Competitive interest rates Unsecured personal loans typically have higher interest rates, but festive loans are tailored to have lower interest rates. So, you can enjoy lower monthly repayments and have more money to spend on the things that matter to you. Various offers and discounts Apart from lowered interest rates, festive loans offer many other perks. These include cashback, zero prepayment charges, processing fee waivers, and no-cost EMI. Paperless and quick processing Like other personal loans, festive loans are mostly paperless and require low processing time. So you can quickly get the cash you need for festival shopping! Flexible loans without collateral You can use festive loans to finance a wide range of expenses. This may include travel, gifts, food, vehicles, weddings, jewellery, festive shopping, land purchases, and much more! Moreover, they are unsecured loans; you don’t need to set anything as collateral. Opportunity to improve credit score Taking low-interest festive loans will help you make timely repayments, improving your credit history and credit score. Festive offers are unique opportunities to build your credit profile so you can get loans more easily in the future. Eligibility Criteria And Documents To Get A Personal Loan As we saw, there are many personal loan benefits you can avail of during festivals. But you must meet these basic eligibility criteria to prove your repaying capacity to get a festive loan- Nationality- Indian Age- 21 years to 67 years CIBIL score– 750 or higher Employed with- Public, private, or MNC Monthly salary- Starting Rs. 22,000 Other criteria set by the specific lender You will also need to upload or submit the following documents to make an application- Your passport-size photograph PAN card Proof of residence Identity proof documents Proof of official address (for self-employed people) Latest salary slips (for salaried people) IT returns for the last two years (for self-employed people) You should check your eligibility and organise the documents in advance. Note that the eligibility criteria and documents required may vary from lender to lender. How To Apply For A Festive Loan Ready to celebrate with a great festive loan offer? Here are the methods you can use to apply for personal loans that are designed for the festival season- Website: You can visit and sign in on the official website of the lender. There, you can explore the available options and apply for the best festive loan by filling out the application form. Mobile Apps: You can download the lender’s mobile application on your mobile device, then log in, and use the option to apply for a festive loan. This is a mobile-optimised version of the website. E-commerce portal: While making purchases through e-commerce sites, you will find EMI options on the check-out page. You can choose the lender and respective EMI and follow the requested steps to get a quick loan for your purchase. Third-party portals: You can also go through third-party websites that have tie-ups with multiple lenders to explore diverse options and find the best festival loan offer. Lender branch: You can also go the good old way and walk into the lender’s nearest branch to apply for a festival loan. You can physically fill out and submit the application form here. Things To Consider Before Taking A Festive Personal Loan Are you ready to enjoy the benefits of a festive loan? Hang on! Here are some questions to consider before you apply for personal loans during the festive season- How much do you need? You must be realistic about how much you can afford to spend and repay. Don’t over-extend yourself and take on more debt than you can easily repay in monthly instalments. Using an EMI calculator on the lender’s site can help you make the right choice. What are the interest rates and prepayment charges? It’s important to compare interest rates from different lenders to find the best deal. You should also check the lock-in period and prepayment charges if you plan to repay early. What are the lender’s terms and conditions? Be sure to read the terms and conditions of any personal loan offer before you sign up. And don’t miss the fine print, or you may face unwanted surprises down the road! [B-02] Summing Up Festive loans come with various benefits and discounts. This makes them ideal for funding your celebrations and easily improving your credit score. However, you must consider the pros and cons carefully before going for a scheme. After all, festivals last a few days, but debt can last for years! If you need help, you can always consult a renowned financial agency like Piramal Finance. Their experts will help you make the most of the festivities with special advice and loans that are tailored for you!

08-11-2023