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Can A Personal Loan Tenure Be 10 Years Long?

Loans solve a variety of financial problems, be they personal or business-related. Not only do they provide monetary support, but they also help build confidence and financial liberty. Out of the various loans, personal loans cover the diverse needs and requirements of an individual. Personal loans help cover all types of personal needs, such as financing a marriage, funding higher education, or even making a down payment. The interest rates charged on these loans are lower. They also give borrowers greater flexibility. The tenure of a personal loan varies from 12 months to 84 months. Can you further increase the tenure of your personal loan? In this article, you will learn the meaning and significance of personal loans, their features, and their benefits. You will also learn if you can use them for 10 years. [B-01] Personal Loans: Meaning, Purpose, and Significance As the name suggests, a personal loan is a type of loan that you borrow to meet your personal needs. These include buying a house, financing a wedding, making a down payment, etc. These types of loans are unsecured, which means you don’t have to pledge your assets and use them as collateral. You only have to repay the loan amount in instalments. These instalments are calculated monthly for a fixed tenure, determined by your lender. The rate of interest on a personal loan is charged based on your credentials, like repayment history, credit score, employment status, etc. In most cases, the maximum tenure up to which a personal loan can be stretched is 7 years. On top of that, not every lending institution allows borrowers a 7-year tenure. Benefits of a Personal Loan Over Other Loans There are several benefits to choosing a personal loan over other types of loans: Quick disbursal The disbursal period for a personal loan is, most of the time, within a day or two. The reason for this is that the entire verification and paperwork process is comparatively short. As everything is hassle-free and convenient for the borrower, the disbursal period condenses to 1 to 2 days. A higher loan amount The loan amount for a personal loan can also be high at times, depending on your credentials and your capacity to repay. The principal amount can easily go from Rs. 20 lakhs to Rs. 30 lakhs or even Rs. 40 lakhs in some cases. Appealing rate of interest Most lending institutions, be they banks or NFBCs, charge a low rate of interest on personal loans. The rate of interest ranges from 8% per annum to 25% per annum, depending on your creditworthiness. Flexible tenure The tenure of repayment of a personal loan is flexible and mostly ranges from 12 months to 84 months. You have to repay your loan amount within this period in the form of EMIs. There is no requirement for collateral Many people are not able to get loans because they lack property or shares that they can pledge for the principal amount. However, since a personal loan is an unsecured form of loan, you don’t need to pledge your assets for the principal amount. You can get the lump sum even if you lack property or any other assets that you could have used as a guarantee against the loan. Easy eligibility The minimum requirement stated by banks and other lending institutions to qualify for a personal loan is simple. You need to belong to a certain age group, have a desirable income with some years of work experience, and have a decent credit score. Is it possible to get a personal loan for 10 years? It is quite impossible, in most cases, to get a personal loan for a tenure of 10 years. Since these loans are unsecured, the borrowers pose a certain level of risk to the lenders. Also, borrowing a personal loan with a long repayment term questions your financial muscle and your capacity to repay it. Even if you have a high credit score, you can stretch the loan period to a maximum of 7 years, provided you have no other liabilities. Even a financial corporation like Piramal Finance, which provides pocket-friendly EMI options, a hassle-free process, and no prepayment or foreclosure charges, can provide you with a personal loan for about 12 to 60 months at most. In the case of other lenders, under certain circumstances, the tenure can last up to 84 months but can’t be extended further. However, it is also important to know that the shorter the tenure of repayment, the less strain it will put on your financial muscles. If you opt for a higher loan tenure, you have to pay Rs. 50,000 to Rs. 1,00,000 more than when you go with a tenure of 1 to 2 years less. [B-02] Summing Up Personal loans can cover an array of requirements, but you cannot opt for them for more than 84 months. The simple reason is the risk factor that you pose to your lending institution. Also, it is important to know that a longer term of repayment is going to put further strain on your financial muscles and your budget, as you will be subjected to paying a higher amount. If you want to read more about personal loans, check out similar blogs on the Piramal Finance website.
08-11-2023
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Personal Loan

How Is It Beneficial To Use an Online EMI Calculator For Personal Loan?

When you are facing an urgent need for money, taking out a personal loan is the best solution. It allows you to take care of your needs without using up your savings. These high-value loans of up to Rs 10 lakh come with a tenure of up to 60 months. The interest rate on these loans starts as low as 12.99% per annum. It is vital to note that you need to pay EMIs every month. To ensure that you get EMIs that you can easily manage, you must use a personal loan EMI calculator. Using this tool will allow you to plan your EMIs in advance and lower the chances of a default. Read on to learn more about using a personal loan calculator and how you can get several benefits from it. [B-01] What is a personal loan EMI calculator? A personal loan EMI calculator is a free online tool available to all leading lenders. It allows you to learn more about the EMIs that you will have to pay for your personal loan. As the results offered by a personal loan calculator are accurate, you are in a better position to plan the EMIs. Manually carrying out this process can take a long time and introduce numerous errors. So you must use this tool anytime you plan to take a personal loan. You just need to enter some basic data to get the results. There is no need to enter any personal details to use this free online tool. Benefits of Using a Personal Loan Calculator There are many benefits that you can get from using a personal loan EMI calculator to plan your finances. Here are some of the most vital benefits that are on offer: Accurate: A personal loan calculator offers accurate results every time. So, even if you have to perform multiple calculations, it will deliver correct results. Doing these calculations manually can result in errors that can lead to incorrect decisions. Hence, you must always use this to ensure accuracy in your financial planning. Quick: With a personal loan EMI calculator, you can get the results in less than two seconds. This is very quick when you compare it with the time taken by manual calculations. As a result, you can compare multiple loan offers in a short time. This enables you to make the correct choice quickly. Free: It is a free online tool that you can access using a website or a mobile app. There is no need to pay any charges to use this tool. This is a benefit, as now you can compare multiple loan offers easily and without any need to spend anything. Discreet: A personal loan EMI calculator is a discreet tool. You need not enter any private details or contact information. Hence, you will never get any spam emails or SMSs when you use this tool. Also, no one will ever know that you are planning to apply for a personal loan. Easy: It is very easy to use a personal loan calculator. You do not need any math skills to use it. In fact, you just need some basic computer or mobile phone skills. Just enter basic data like loan amount, interest rate, and tenure. The results will be on your screen in a few seconds. Detailed: When you use this tool on some platforms, you get a lot of details related to the loan. This includes a repayment chart, the total interest cost, the interest paid in a year, and much more. Hence, you are in a better position to select a loan offer that best matches your needs. Timely: There are fewer chances of default when you use a personal loan calculator. With this tool, you are able to select a loan that comes with an EMI amount that you can easily afford. As a result, you can repay the loan on time and avoid the risk of default. How to Use a Personal Loan Calculator Here are the steps that you must follow to use a personal loan EMI calculator: Visit any website or download an app that offers this free tool. Tap on the link for personal loans and then on the link for the EMI calculator. Then, you will be able to see this tool on your screen. Enter the details as required. This will include the loan amount, interest rate, and loan tenure. Some platforms may give you the option of using a slider to enter the details. You need not provide any personal details to use this tool. After you have entered the details, click on the “calculate” button. This will display the result on your screen. The data you will get from this is the total interest, total principal, total amount, and EMI amount. If you need to make multiple calculations, then you must note down these details. Some platforms will also allow you to access a repayment chart that is very useful for EMI planning. This tool can be used as many times as necessary to compare personal loan offers. [B-02] Conclusion Using a personal loan EMI calculator is a good step. It will help you plan your finances in a better way. As it is a free tool, you can use it as many times as you want. Log on to Piramal Finance to access this free tool and articles on a range of financial topics. This will help you make an informed decision. Piramal Finance also offers high-value personal loans at low interest rates. Contact their experts for the best offers as per your profile.
08-11-2023
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Which Is Better For Personal Loans – NBFS or Banks?

A personal loan is the most preferred type of loan. It is also the most preferred form of lending for banks. A decade ago, if you were to take a personal loan, you would not have had many options. Private and public banks and informal lenders were some of the most common ways of borrowing money. However, things have drastically changed, and you can also take loans from an NBFC (non-banking financial company). It is vital to understand how NBFCs work and how they differ from banks. This will not only make you familiar with the workings of this institution but will also help you make the right choice for a personal loan. [B-01] What is an NBFC? The NBFC is not a bank but performs certain monetary functions like a bank. It will provide you with loan and credit facilities. Furthermore, it will also give you various investment options. If you have a business, it will help you acquire various financial instruments. You can get shares, bonds, debentures, and other securities issued by the government. Banks and NBFCs have different interest rates for personal loans. Banks rely on RBI guidelines for their interest rates. While NBFCs have interest rates determined by internal benchmarking. So if you want to save some interest on a personal loan, do not forget to compare their interest rates. Difference between banks and NBFCs There are three critical differences between a bank and an NBFC. And to decide which option is best for a personal loan, you should understand these differences. CategoryBank NBFCBanking Services The bank offers credit and all other banking services. NBFC provides all banking services except issuing or accepting demand drafts and cheques. Reserve RatioBanks maintain a specified CRR ratio to ensure they have liquidity for different deposits managed by them. An NBFC does not need to maintain a specified CRR. However, RBI ensures that most of them have stringent CRR.RegulationsThe Reserve Bank of India regulates banks. The RBI cannot regulate NBFCs as they are registered under the Companies Act of 1956. NBFCs or banks—which is the better option for a personal loan? For various reasons, you would find NBFC a better option for your personal loan. It offers facilities such as instant transfer and has a smooth application process. Some of the key benefits that you will enjoy by taking a personal loan from an NBFC in comparison to a bank are as follows: Eligibility parameters The eligibility requirements for a personal loan from the NBFC are straightforward. You do not have to go through a lengthy and complicated process like banks. To be eligible for the loan, all you need to do is provide your CIBIL score. You need a CIBIL score of at least 750 to get instant approval. However, if you have a low CIBIL score, you can get a loan by showing substantial income and a healthy career profile. You will not get this flexibility at a bank. Banks have a strict approval process that complies with RBI guidelines. Furthermore, there are numerous background and credit checks in the approval process. These checks make the approval process longer and more complex. Minimal paperwork If you are an existing customer of an NBFC, you do not need to submit any documents for a personal loan. This also applies to pre-approved customers. However, you must submit some basic documents if you are a new customer. An officially valid document for KYC, a bank statement, and a salary slip are enough for loan approval. However, at banks, you would be required to submit lengthy paperwork. This condition applies to both existing and new customers. If you are a self-employed person, you need to submit additional documents to get your personal loan approved by the bank. Faster approval As discussed earlier, banks run many checks before approving a loan. These checks delay the loan approval process. Furthermore, even after these checks, the application would take at least 1-2 weeks to get approved. With NBFCs, you can get loans approved within minutes. Some NBFCs also allow a person to apply for a personal loan from their home and get it approved instantly. Quick processing By applying for a personal loan at an NBFC, you can get your money within 24 hours of approval. However, only selected NBFCs process the loan amount at this speed. Therefore, you should check these details before applying for a personal loan. This swiftness makes NBFCs a better option for urgent financial needs. So if you are facing a medical emergency, you can trust NBFCs for a swift money transfer. The processing time for banks is longer than NBFCs. You must wait for at least a few weeks to get your money. Although some banks may offer faster loan processing, it will still take more than 24 hours. An easy online loan application process Most NBFCs provide an online application process for a personal loan. You can get on their website and fill out the online form to initiate the approval process. You will not get this online facility if you decide to take a personal loan from a bank. To start the loan approval process, you must visit the bank and fill out the offline application forms. This makes taking personal loans from banks a tiresome process. Superior customer support Top-rated NBFCs have better customer support than banks, making them more reliable and trusted. You also get a customer relationship manager upon applying for a personal loan at an NBFC. This person will guide you through the loan approval process and help you get the personal loan sanctioned soon. With banks, you will not get a reliable customer support system. Moreover, customer support is worst in public banks. [B-02] Bottomline All the points mentioned above indicate that if you are considering applying for a personal loan, the NBFC is the better option. It offers a more flexible and time-saving loan application and approval process. If you wish to know more about financial topics such as this and want to know more about different financial services, visit the Piramal Finance website and learn more about their products and services.
08-11-2023
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Pros and Cons of GST and How to calculate it – Piramal Finance 

Do you often think about the pros and cons of the GST? Want to know more about the GST calculator? Read on! The Goods and Services Tax is a single, destination-based tax that went into effect in India on July 1, 2017, to replace all the indirect taxes that were already in place, such as service tax and VAT. Businesses that sell and buy goods and services, as well as consumers in the country, have been directly affected by the GST. The Goods and Services Tax (GST) has been called one of the biggest tax reforms in the country. You can also use a GST calculator. It combines indirect taxes like excise, VAT, and service tax, which were previously levied by the Center and the States. It is charged on both goods and services sold in the country. GST Day is celebrated every year on July 1. As of July 1, 2018, let’s take a look at how well GST has done over the past year. [B-01] The Benefits of Implementing GST GST is meant to make India’s tax system more open and free of corruption. After the GST, it is easier to start a business and pay taxes than it was before. The composition mechanism is there to make it easier for small businesses and new businesses to pay their taxes. The input credit (ITC) mechanism makes sure that businesses have a steady flow of cash and that the prices of goods and services go down for consumers. When all indirect taxes are combined, it’s easier for both the government and taxpayers to pay their taxes. Getting taxes in sync Moving goods and/or services between states and across the country will be easier. GST is worked out based on the total amount, no matter what kind of sales or services are being made. By creating a single tax system, the GST has stopped taxes from adding to each other. Since it is a tax based on where the goods or services are delivered, the consumer will only pay the tax when the goods or services are delivered. With GST in place, India now has the same tax rules as the rest of the world. This makes it easier for Indian businesses to sell on the global market. After GST is put into place, inflation should stay under control. The Goods and Services Tax (GST) is expected to lower the cost of production, operations, and other costs, which will be good for consumers. The cost of collecting taxes goes down, which means the government gets more money. GST’s disadvantages Some economists say that the Goods and Services Tax (GST) in India would hurt the real estate market. It would raise the price of new homes by up to 8% and cut demand by about 12%. Some experts say that the Central Goods and Services Tax (CGST) and the State Goods and Services Tax (SGST) are just new names for the Central Excise/Service Tax, VAT, and CST. So, there isn’t a big change in how many tax layers there are. You can use a GST calculator. Some retail products only have a 4% tax on them right now. Clothes and other items could become more expensive after the GST. It would affect the aviation industry. Service taxes on flights range from 6 to 9% right now. With GST, this rate will be over 15%, which is the same as doubling the tax rate. The whole ecosystem would have to deal with growing pains and learn how to use the new GST system as it is adopted and rolled out. How do I figure out the GST? After the Goods and Services Tax (GST) was put in place, many entrepreneurs asked for help figuring out how to figure out the GST paid for a transaction. You can use a GST calculator for your convenience. Let’s talk about all the ways to figure out GST in a business. To figure out GST, you need to look at the following parts of a transaction in a logical, step-by-step way. Find the GST rate that applies to an HSN or SAC code. Once the HSN or SAC code for the supply is known, it is easy to figure out the GST rate for that HSN or SAC code. GST is charged at five different rates for both goods and services: 0%, 5%, 12%, 18%, and 28%. Using a GST calculator will make it easy. Find out if IGST or CGST and SGST are applicable. Once the GST rate is known, it’s time to figure out if IGST, CGST, and SGST apply. People should look into the place of supply to find out if IGST, CGST, or SGST should be used. Supply Between States: If goods or services are sent from one state to another, the Integrated Goods and Services Tax (IGST) would apply. Supply within a state: If the person gives the goods or services within the same state, CGST and SGST would apply. Find out if GST is due on a “reverse charge basis.” Suppliers Can Join the GST Composition Scheme Find out what kind of transaction it is. Under the GST, transactions can be roughly put into one of the three following groups: Between Businesses, For Business to Consumer – Value of supply more than Rs.2.5 lakh and Business to Consumer – Value of supply less than Rs.2.5 lakh. [B-02] Summing up Change is rarely easy. The government is trying to smooth the way for GST. It’s important to learn from the global economies that have implemented GST before us and have seen the benefits of having a unified tax system and easy input credits. After the Goods and Services Tax (GST) was put into place, the government heard from many people about its pros and cons. The Goods and Services Tax (GST) is a value-added tax (VAT) that is meant to be a national indirect tax on the production, sale, and use of goods and services. You can also use a GST calculator to calculate it. It will take the place of all indirect taxes that the Indian Central and State governments have put on goods and services in the past. Relevant information is given above. Make your decision wisely. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also visit Piramal Finance for more in-depth, educational articles.
08-11-2023
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Personal Loan

How To Avail Minimalist Personal Loan Interest Rate In Festive Season?

There are great discounts and offers over the holiday season. These offers are available for all if you want to buy automobiles, appliances, or other goods. It is intended to assist you in enjoying Diwali while living within your means. You can finance anything with such a personal loan. Right from renovating a home to buying a high-end four-wheeler or a lavish Diwali party. But before you begin, you must know how to get a low personal loan interest rate. Read on to learn more. [B-01] 5 Steps to get the lowest personal loan interest rate Look for a quick festive personal loan interest rate. Many financial firms provide a low personal loan interest rate during the holiday season. Before applying for a loan, do some research on lenders. By doing this, you can save time and money. Also, you can take benefit of the loan’s features to pay for holiday spending quickly. You can qualify by fulfilling the criteria of the lender. Check the personal loan criteria for each lender you’ve selected. It would help if you met the criteria to qualify for the loan. Consider a lender who gives clear criteria for a loan if you need quick funds for managing festive holidays. For instance, if you meet the following criteria, you qualify for the lowest personal Loan interest rate: An Indian citizen aged between 23 to 55. You must be an employee in MNC or business. You must have a monthly income assessed by the city where you live. Additionally, a personal loan calculator will help assess whether you qualify for one. Be handy with the paperwork for a quick approval. Once you’ve met the criteria, collect the papers you’ll need to submit and finish your application. Apply with a lender that needs a little paperwork. It will help you get quick approval. You only need to submit the following papers: Passport, driver’s license, Voter ID, Aadhar Card, and PAN Card are acceptable forms of I.D. for employees. A passport, Utility Bill (not older than three months), and Leave and License Agreement. 2 most recent pay slips. Bank statements for the past three months for your salary account. These papers can be given at once for instant approval of your loan. Banks/NBFCs provide approval in a matter of minutes and fund payments within 24 hours after approval. Visit a branch of the lender or make an online application. You can start the process in one of two ways after you’ve qualified to apply. It will help if you have the paperwork ready. You can apply for a personal loan online or visit the branch. Choose whichever is easier for you. To apply for a personal loan for the former, speak with an agent and apply. On the other hand, if you want to avoid standing in line, you can apply online from the ease of your home or workplace. For an instant loan, check your pre-approved offer. You can apply using a quick personal loan facility. After analyzing your credit profile, and financial situation, pre-approved offers are created. The application and approval paths are simpler when applying for a pre-approved offer. It is one of the strongest features. You can check your pre-approval offer by providing basic information like your name and phone number. To apply for a loan, you can use this method. Then, choose the loan offer that is made to you. Reasons to apply for a Personal Loan The money from a personal loan can be used for anything you want, unlike a mortgage or auto loan. The personal loan can be used for whatever: On Karvachauth, treating one’s spouse to an elegant meal and a thoughtful present is customary. Dhanteras is a time to splurge on luxurious items like jewellery, silverware, new gadgets, a car, etc. To celebrate Diwali, many people make major purchases (such as appliances, electronics, apparel, and decorations), undertake house improvement projects (such as replacing broken light fixtures), and give gifts to loved ones. The loans are used when brothers and sisters exchange lavish presents, money, and other gifts. Personal loans from banks start at Rs. 25,000. This personal loan can be used for many needs. With a personal loan, you won’t have to worry about giving collateral. Not even in the holiday offers. It is an unsecured offering, and hence it’s a hassle-free loan. Personal loans provide you leeway in how and when you make payments. Payback terms on personal loans are very relaxed, from 12 to 60 months. It is mostly based on the applicant’s ability to pay. Applying for a loan has become simple. With the rise of net banking, you can apply for a loan from your home or office. You can avoid going to the bank at all by uploading papers digitally. Once it’s approved, the funds will be sent to your account. A low personal loan interest rate (starting at 10.25%) is a major benefit. However, the interest rate a bank offers is assessed by several factors. The factors include your credit history, age, income, etc. [B-02] Conclusion With all the hustle and bustle of festivals, it is common to have an urgent need for funds. In such cases, the lowest personal loan interest rate can easily provide you with the required money. you don’t need to pledge your assets as collateral. It is an unsecured loan. With the help of a personal loan, you can relax and enjoy the holiday season without worrying about money. Always keep it noted to be careful with your debts. Repay them on time. This will help you maintain a good credit score. For further details, visit the Piramal Finance website and get the best personal loan interest rate offers.
08-11-2023
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Personal Loan

How to Get Personal Loan Customer Care Details: Number, Emails!

A personal loan is a good tool to help you meet any urgent money needs. Many banks and NBFCs offer personal loans for their customers. These high-value loans come with long terms and low interest rates. Most lenders accept online applications for personal loans. This ensures that you can get the money in your account within a few hours. Hence, in all aspects, a personal loan can offer an answer to all your needs. When the lender disburses the loan, a new account is created in your name. This account offers all the details of your personal loan, like the interest rate, loan amount, payment schedule, and several others. There can be instances where you face problems related to your personal loan. In such a situation, you need to contact the customer care team of the lender. It is vital to quote the loan account number when you get in touch with the bank or NBFC. But it may happen that you do not have the email address or phone number of the customer care team ready with you. What to do now? Do not worry, as there are many ways for you to get the contact details of the customer care team. [B-01] Need for personal loan customer care details Lenders are trying to make the personal loan process easy and quick. But you, as a customer, can have some doubts or queries that need to be resolved. You can’t visit the office of the lender every time you have a doubt. The best way is to use your phone or email to get in touch with them. Here are some events due to which you may need to get in touch with personal loan customer care: Queries related to the personal loan account. Making foreclosure on the personal loan. Asking about any outstanding balance. Asking about any late payments or bounced charges. Rescheduling the loan EMIs. Any other tasks related to the personal loan. How to get personal loan customer care details? In this day and age, it is very easy for you to get the details for your personal loan account. Here are the steps that you must follow to access these details: Offline Personal loan agreement After you get the loan amount in your account, the lender will send you a welcome kit. This kit will include all the details related to your personal loan. You must keep this kit safe, as it will come in handy at a later stage. In this kit, the lender will provide all the contact details of the customer care team. So, if you are unable to find these details anywhere else, then checking the welcome kit can be a good option. This will also offer you key details like the personal loan account number that the customer care team would need to verify your identity. Office of the lender Another possible option to get these details is to visit the office of the lender. Most banks and NBFCs have offices in all of India’s major cities. If there is one such office or branch located near your home, then you can visit it there. Once you reach the office, get in touch with anyone at the reception desk or help desk to resolve your personal loan query. If he or she is unable to help you, then you can ask them for the email address or phone number of the customer care team. In many cases, they will help you make a call directly from the office. ATM If you have taken a personal loan from a bank, then that bank must have ATMs located in your city. You can go to an ATM if one is located near your home. Most ATMs have display boards with customer service contact information. Just write down these details on your phone and use them to get in touch with the lender. Online Website Most banks and NBFCs have fully functional websites. This website contains all the useful details that customers might need. There will be a “Contact Us” section on the site. Here, the lender would have given all the contact details for their different teams. You can easily find the customer service team’s contact information here. In case these details are not listed, you can access the chatbot. It is a software programme that is used by companies to deliver superior customer care services. On the chatbot, you can enter your customer service email or contact information. It will provide you with the relevant details for your personal loan customer care. Net banking Another good option to access details related to your customer care team is to use net banking. Most lenders create a separate loan account when you take a personal loan. You can gain access to this loan account using your net banking credentials. When you log on to your internet banking and click on the personal loan option, you will be able to see all the details. Here, you will get to see all the contact details for your personal loan customer care, including their email address or contact numbers. [B-02] Conclusion You must learn all the key details about your personal loan. This would help you ensure that you can get the most benefits from this loan. To get the best personal loan offers for your needs, visit Piramal Finance. You can get your queries resolved with the help of the experts at this leading NBFC. They have many articles and blogs on a range of topics to help you learn more about the world of finance.
08-11-2023
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Personal Loan

All You Need To Know About Different Tenures Of Personal Loan At Piramal Finance

If you need financial help, a personal loan might be a good solution. Personal loans can also be used to help yourself in unforeseen circumstances, such as a health crisis. A personal loan is a type of unsecured loan. An individual can apply for a loan from a bank or other financial organisation. Small payments called equated monthly instalments (EMI) are made by the borrower to pay it back. The loan balance is set over a fixed period, which is known as the personal loan tenure. [B-01] Personal loan tenure You have the option of selecting a term length for your personal loan. However, it must be between 12 and 60 months. Your loan EMIs are customised based on your income, credit history, demands, the loan’s length, amount, and interest rate. Additionally, your age and current job are also considered. As a result, when determining loan terms, you must keep these primary considerations in mind. Since most of these loans are considered “unsecured,” the borrower’s property is not at risk of being liquidated in the event of nonpayment. Lenders will be taking on a slightly higher risk, while borrowers will be experiencing less risk as a result of this arrangement. Despite this, the sector has recently expanded at a CAGR of 17%. Over the past couple of years, it has been responsible for a considerable share of the yearly incremental credit across key industries. This suggests that personal loans are becoming a very attractive form of personal financing. Like any other loan, a personal loan requires careful consideration before being requested. There is a close relationship between the length of your loan, EMIs, and the total amount to be paid back to the lender. For instance, a longer term would result in lower EMIs, as the cash would be spread out over a longer period. However, longer-term loans would also imply more compound interest. That might lead to you paying back more than you borrowed. For shorter-term loans, the EMIs are higher and the interest paid is lower. Therefore, you must balance these factors so that they do not affect your finances. There are other factors to consider while deciding on the best personal loan tenure. How to choose personal loan tenure wisely? Your personal loan’s EMIs and interest rate are both influenced by the length of the loan tenure. In general, the EMI will be lower for a longer tenure and greater for a shorter one. Choosing a longer loan term will result in a larger interest payment. Personal loan savings can be maximised by making an informed decision about the term length. We hope the following guidelines will assist you in making the best decision possible about the length of your loan: Easy tips to choose the loan tenure Understand your monthly budget. It is an essential component in determining the length of your stay. Write down your monthly expenses and compare them to your monthly income to calculate your disposable cash flow. With the money you have left over, you may pick a loan term that is manageable for your finances and won’t put an undue strain on your monthly outlay. Review your monetary forecast for the future. Since you’ll have more spare cash after you get that raise at work, you can afford a bigger EMI payment each month. By eliminating the loan’s principal balance sooner than expected, you can save money on interest. This additional work leading up to the raise is necessary, but the payoff, in the long run, is well worth it. Think about your current debts. You should also think about your other financial obligations while deciding on a suitable term length. Most regular obligations include other debts, credit card payments, rent, and school costs. Make sure the duration you choose allows you to fulfil all of your commitments with minimal fuss. Use spreadsheets with the right formulas to get a clearer view and speed up this process. Determine the cost of the interest. Learn the costs associated with the loan, as this is an essential part of the process. To determine the interest rate, it is best to use a formula that takes into account the requested loan amount and the combination of different tenure possibilities. A longer loan period will naturally result in higher interest costs. You should avoid taking out a loan whose payments go on for decades. Use an EMI Calculator An easily accessible calculator that may help you decide on important aspects of your loan tenure, such as the repayment schedule and interest rate, as well as the overall cost of the loan. On Piramal Finance, you can easily determine your EMI payment and obtain a detailed breakdown of the fees associated with your loan. In addition, you may use this instrument to evaluate the terms of many loan offers from different financial institutions and select the one that best suits your needs. A personal loan is one of the most convenient forms of credit available today. If you want to keep your credit score and bank account in good shape, you need to exercise strict financial discipline. It’s important to shop around for a suitable loan by comparing the terms and conditions of several loan programmes provided by different banks and financial institutions before committing to one. [B-02] Conclusion Choosing the proper personal loan tenure is important since your EMI will be reduced throughout this time. Personal loans are available from Piramal Finance with terms as short as 12 months. You may select a longer term of up to 5 years if it is within your financial means. Knowing the personal loan tenure you have to pay back your loan will help you budget more effectively. Knowing the length of your loan allows you to make an informed decision rather than reacting on the spur of the moment. If you are looking for a reliable platform to get the best personal loan tenure, you must contact Piramal Finance.
08-11-2023
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Personal Loan

Top Reasons You Need To Know Why Sometimes It’s Difficult To Get Personal Loan

Getting a personal loan is not always easy. There are a set of requirements that you have to fulfil to get a personal loan. If you do not meet these requirements—which are different for every lender—your application may get delayed, or worse, rejected. For instance, if you’ve got a decent credit score, that is, one that is above 650 on the national credit scale, then getting a personal loan is easy for you. However, if your credit score is lower than average or you have any other red flags in your credit history, you don’t have an ideal record for a personal loan. Similarly, there are other requirements, like a stable income and a good financial profile, to get personal loan. These requirements can make it difficult for some people to get personal loan. [B-01] Fortunately, there are some things that you can do to increase the chances of your application for a personal loan being approved by the lender. Here are six reasons why personal loan applications get rejected and what you can do about them: You Have a Low Credit Score When you are trying to get personal loan, the first thing a lender checks is your credit score. If you have a good score, it makes it easier for you to get the loan. However, the fact that it has a lower score requirement does not mean that it is guaranteed to be approved. It is because lenders also look at other factors when deciding whether to approve or reject your application. If your credit score is low, this can result in your loan application being rejected. The best thing you can do to increase the chances of your application’s approval in such a situation is to improve your credit score. Your credit score impacts many things, like your ability to get a mortgage, rent an apartment, or even get a job in the finance sector. So, the higher your score, the better. There are a few things that you can do to improve your score. One of them is to pay off any debt you have and to make EMI payments on time. Doing so will increase your credit score. However, it may take a while before the improved record reflects on your credit report. The key is to be patient and punctual. You Lack A Stable Source Of Income A stable source of income is one of the most critical requirements you must meet when trying to get personal loan. If you don’t have one, then you may find that your application is rejected even if your credit score is good. It is because lenders may reject your application if they don’t trust that you will be able to pay them back. The best thing you can do to increase the chances of your application being approved is to prove to the lender that you have a stable source of income. One easy way to do this is to get a job as soon as possible. Once you have a stable income, you’ll be able to get personal loan as you will have the means to repay it. Another great way to increase your chances of having a successful application is to ensure you have all the required documents. Many lenders will reject applications if they don’t have all the documents they need to see. If you know you are missing out on one of them, you can get it to the lender as soon as possible. Your Debt-To-Income Ratio Is Too High You will fail to get personal loan if your debt-to-income ratio is too high. It is a ratio you need to look at to see how much you owe versus your monthly income. Depending on this ratio, the loan companies will either approve or reject your loan application. If your ratio is too high, they will automatically reject your loan application without checking your credit score. The best thing you can do to lower your debt-to-income ratio is to pay off any debts you have. This will show the lender that you have a steady income and will not default on the loan. You can also look for coupon codes that will allow you to lower your monthly expenses. This way, you’ll have less to pay each month, and your debt-to-income ratio will also be lower. You can then reverse your failure to get personal loan. Can’t Get Personal Loan Due To Limitations Even if you have a good credit score, your application may still be rejected if you fall into a certain group of people with loan limitations. For instance, many lenders will only approve loans of less than Rs. 50,000 to people who earn less than a particular amount. In such cases, you will have to speak with multiple lenders and see who fits your requirements the best. Remember, most lenders will only consider the income that you have from a stable source of earning, like a regular job. Inadequate Financial Profile Another reason why your application may be rejected is if you have an inadequate financial profile. For instance, you may not have a substantial credit history. To avoid falling into either of these categories, talk to a financial advisor and work on building a good financial profile. To do so, you may have to take out small loans and build a good credit history, among other things. A representative of your bank can also give you advice on improving your financial profile so that you don’t fall into one of these categories. Such advice may include investment opportunities for the long term. [B-02] Conclusion Getting a personal loan can help you with important expenses. However, not getting approved for a loan can be frustrating. If you’ve failed to get personal loan in the past, you know how difficult it is to overcome. But there are ways you can still get a personal loan. You can find in-depth explanations and help with these measures on the Piramal Finance website. Looking at those suggestions will make your loan application process easier.
08-11-2023
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Personal Loan

Does the personal loan application process vary per region?

A personal loan is a loan that is not secured by collateral, such as a car or a house. This means that if you default on a personal loan, the lender can’t take your car or your house. Personal loans are usually used for things like consolidating debt, paying for unexpected expenses, or making a large purchase. Interest rates for personal loans are often lower than those on credit cards, so they are a good way to consolidate debt or pay for unexpected expenses. But, because they are unsecured, they also come with a higher interest rate than secured loans, such as a mortgage or a car loan. [B-01] There are many different types of personal loans available in India. Here are some of the most popular types: Home Loans: Home loans are one of the most popular types of personal loans in India. They are typically used to finance the purchase of a new home or to refinance an existing home loan. Auto Loans: Auto loans are another popular type of personal loan in India. They are typically used to finance the purchase of a new or used car. Education Loans: Education loans are a type of personal loan that can be used to finance the cost of tuition, books, and other education-related expenses. Personal Loans: Personal loans are unsecured loans that can be used for any purpose. They are typically used to finance major purchases or consolidate debt. If you are considering taking out a personal loan, it’s important to compare interest rates and terms from multiple lenders. It’s also important to make sure you can afford the monthly payments, as personal loans typically have to be repaid within a few years. Personal loan application processes can vary depending on the region of India. In some cases, the process may be more streamlined and easier to complete, while in other cases it may be more complicated. One factor that can affect the personal loan application process is the level of development in the region. In more developed regions, the process is likely to be more efficient and easier to complete. This is because there are likely to be more financial institutions and lenders operating in these areas, and the infrastructure is likely to be more developed. Another factor that can affect the personal loan application process is the level of competition in the region. In regions where there is more competition among lenders, the process is likely to be more competitive, and borrowers may be able to get better terms and rates. How do I apply for a personal loan? Whatever your reason for seeking a personal loan, there are a few things you should be aware of before applying. First, you’ll need to choose a lender. There are many personal loan lenders in India, so it’s important to compare rates and terms before you select one. Once you’ve chosen a lender, you’ll need to complete an application. The application will ask for information about your income, employment, and debts. Once you’ve submitted your application, the lender will review it and make a decision. If you’re approved, you’ll receive a loan offer with the terms and conditions. Be sure to review the offer carefully before you accept it. Once you accept the offer, the lender will send you the money. Important factors considered by banks before lending personal loans There are a few important factors that banks take into account before lending a personal loan. Firstly, they will consider your credit score. This is a number that indicates your creditworthiness and is based on your credit history. If you have a good credit score, it means you’re a low-risk borrower and are more likely to repay your loan on time. Secondly, banks will also look at your income and employment history. They want to make sure that you have a stable job and can repay your loan. Lastly, they will also consider your other debts and financial obligations. This is to make sure that you’re not overextending yourself and will be able to repay your loan. When it comes to personal loans in India, there are a few things that borrowers should know. Here are some common FAQs that can help you understand the process and make the best decision for your needs. What is a personal loan? A personal loan is a type of unsecured loan, which means that it is not backed by any collateral. This makes it a good option for borrowers who don’t have any assets to use as collateral. Personal loans can be used for a variety of purposes, including consolidating debt, paying for unexpected expenses, or financing a large purchase. How do personal loans work? Personal loans are typically repaid in monthly instalments over a set period. The loan amount, interest rate, and repayment term will all be determined based on the borrower’s credit history and income. Borrowers will need to make sure that they can afford the monthly payments before taking out a personal loan. Is a personal loan a better option? There are a few things to consider when trying to decide if a personal loan is the best option for you. One thing to think about is what you will use the loan for. If you need the money for a large purchase, such as a car or a house, then a personal loan may not be the best option. Another thing to consider is the interest rate on the loan. Personal loans typically have higher interest rates than other types of loans, so you will need to make sure you can afford the monthly payments. [B-02] What is the tenure of a personal loan? Personal loans can be for a shorter term, such as one year, or a longer term, such as five years. You will need to decide how long you need the loan and whether you can afford the monthly payments. Overall, the personal loan application process can vary depending on the region of India. If this blog has helped you know the best about personal loans, you can read more such blogs on Piramal Finance and explore their wide range of products and services! Also, if you are looking for a personal loan, you can visit Piramal Finance, your best friend for all your financial requirements!
08-11-2023
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