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Personal Loan

Pros and cons of taking personal loan on credit

When you are in urgent need of money, your first thought might be to use your credit card. Well, it is true that a credit card is meant to be used for urgent needs, but you must avoid it. High interest rates and their impact on credit scores make using a credit card an unwise choice. This is where the option of a personal line of credit comes to your aid. It is also a form of revolving credit, just like a credit card. But it saves you from the negative impacts of using a credit card. Read on to learn more about the key aspects of a personal line of credit. [B-01] What is a personal line of credit? A personal line of credit is a form of revolving credit offered by banks and NBFCs. You can also consider it a personal loan that you can access whenever you want. Herein, you are given a limit of up to a certain amount. But, rather than sending the entire amount to your bank account, the lender creates a new account under your name. You can then draw only what you require. Hence, you will need to pay interest only on the amount used. The available limit is reduced when you draw from your account. Likewise, it is increased when you repay the amount owed on the account. Under a personal line of credit, there is no fixed EMI. The EMI will vary as per the amount you have used and the balance at the end of a month. Some lenders offer you the option of paying only the interest part every month and the principal amount when you can. However, the limit will be restored only when the principal is paid. There is also the option of paying the entire principal at the end of the term. The normal loan tenure that most lenders offer here is in the range of 2 months to 60 months. As such, a personal line of credit works like a credit card but offers the features of a personal loan. The lenders would levy annual charges for offering this facility. They can also increase the limit as per your needs and repayment history. Benefits of a Personal Line of Credit There are many benefits to using a personal line of credit instead of a personal loan or a credit card. Read on to learn about the key benefits of this financing option: Low interest cost: When you take a personal loan, you need to pay a fixed EMI. It makes no difference if you still have some unused loan amounts in your bank. But when you take out a personal line of credit, you only need to pay interest on the amount you use. Hence, if you do not need the entire amount at once, you do not need to support high EMIs. You only pay interest on the money drawn. Hence, over a period of time, you can enjoy the benefit of low interest costs. Also, when you pay your EMIs on time, the lenders will offer you a lower rate of interest. This will further reduce the total amount you must spend on interest over the loan tenure. Flexible Repayment: As stated above, every personal loan has a fixed schedule. You need to pay the same EMI during the loan tenure. It does not matter if you have used the entire amount or not. This is why a personal line of credit makes more sense. You will be given several options for repaying the loan amount. You can choose to pay only the interest during the loan tenure and the principal as a lump sum at the end of the tenure. Otherwise, your EMI will be determined by the amount you have used. If you do not use any funds, you are only required to pay the lender’s fees. Easy access to funds: Most lenders allow you to access your personal line of credit as and when you want. This is possible through their website or mobile app. There is no need to route your request through the lender. Hence, you get easy access to the funds and can use them as and when you need them. It will only take a few seconds for you to complete the request and send the money to your account. Similarly, you can repay the amount with equal ease. Easy access to funds makes the entire process seamless and hassle-free. Good for phased spending: When you take a personal loan, you rarely use up the entire amount at once. Instead, in most cases, you will spend the money over several months. But you will have to pay the EMIs, based on the total amount, right from the first month. Hence, if you need to spend the money in a phased manner, you can opt for a personal line of credit. Herein, you have the option to draw money in parts as and when you need it. As a result, you do not have to stress your finances to support the full EMIs. [B-02] A personal line of credit is surely a good option to meet your short-term and long-term needs. But the problem is that only a few lenders offer this option for personal loans. If you need to learn more about this credit option, then visit Piramal Finance. They have many articles and blogs to help you improve your finance skills. If you have any urgent money needs, they also offer a variety of loans. High-value loans at low interest rates from Piramal Finance can come in very handy when you need the money most. Their experts are always ready to help you with your doubts.

08-11-2023

Know More

Important Benefits You Must Know Of Using Credit Card

The Reserve Bank of India (RBI) reports a rise of 26.5% in credit card users in India. The growing numbers show the popularity of credit cards. Reducing cash transactions and keeping track of spending benefit credit card users. A credit card is more beneficial than a debit card. You only need to swipe it to buy now and pay later. Moreover, these cards have worldwide acceptance. They also provide you with the financial freedom you desire. Continue reading to learn what a credit card is and how it can help you. [B-01] What is a credit card? A credit card or plastic money is a small card the size of your driving license. It bears, The credit card number, The cardholder’s name, Expiry date, Signature, CVC code and other relevant details. The bank that issues the credit card checks your creditworthiness for approval. The credit limit depends on your credit score and income. You can only spend up to the pre-approved limit. On approval, the issuer bank links the credit card to your credit limit, not your bank account. Thus, the bank deducts withdrawal or payment accounts from the credit limit and not your bank account balance, as in the case of debit cards. Who Can Apply for a Credit Card? As per RBI guidelines, banks can issue credit cards via the credit card department. Indian banks can appoint a subsidiary company to issue credit cards. They may issue it to an Indian national or NRI, depending on their policy. The bank approves the credit card of anyone: Who is 18 years of age or older Has a favourable credit score and negligible or zero payment defaults Has a stable income as per bank needs for approval of credit cards Is working at the same place for a year more. Top Benefits of Using Credit Cards Fulfil the above requirements and apply for a credit card to avail of several benefits. They are as follows: Easy to use It is compact and easy to carry in your wallet. You can use it to buy groceries, pay insurance premiums, or pay housing loan EMIs. Such payments don’t burden or reduce your bank account as the issuing bank does not link the card to your bank account. These are interest-free withdrawals, provided you pay back within the grace period. Rewards, discounts, and bonuses Reward points have value and may differ depending on the bank with which you apply for a credit card. However, most banks provide the following rewards to credit card holders: Earn and exchange reward points for gifts.The bank rewards you with reward points for almost every transaction you make via credit card. The only condition is that the transactions should be for a specific amount. The bank offers a list of gifts, and you can redeem the gifts by using the reward points. Some banks even permit reward point redemption against the outstanding credit card balance.Rewards for Reaching MilestonesThe bank may set milestones for customers to reach with their credit card spending. If you achieve the milestone, the issuer bank will give you many bonus points. You can use them to redeem expensive gifts.Earn More Reward PointsYou can earn accelerated reward points using a co-branded credit card. Use the card to pay for travel (tickets and accommodations) or to buy groceries or other online commodities. For instance, a transaction that earns only one reward point may earn you three times more. Bonus Reward Points on Opting for a Credit CardSome banks and credit card issuing companies may offer many reward points for signing up. The condition may be to spend a specific amount via credit card in a fixed period to take advantage of the offer.Renewals Earn Reward PointsA credit card is only valid for a limited time and has an expiration date. It is invalid after the expiration date, and you cannot use it without renewing. Most banks reward credit card users with reward points at each credit card renewal.Reward Points for Spending on Add-onsA credit card-issuing bank may issue an add-on credit card to the credit card holder’s spouse or children. It is advisable to check your reward points as they come with an expiration date. Redeem them online, offline, or through customer care before they become invalid. You can redeem them for various products on the credit card issuers’ catalogue, donate them to your favourite charity, exchange them for e-vouchers of branded merchandise, or use the cashback facility. Some brands and online stores offer discounts if you use a specific credit card. Build your credit score. Applying for a credit card if you plan to opt for a housing loan or any other form of funding is advisable. Banks and NFBCs rate you as creditworthy depending on your credit card records. Here’s what you must do to build your credit score with the help of a credit card: Never exceed the pre-approved limit of the credit card. Never default on payments. Use only a minimal part of the approved credit. Credit card EMI payments Credit cards are of immense help when you need to buy an expensive product but don’t have the money to pay for it. It is an excellent option when you cannot repay within 3 months or in one lump sum. Here’s how a credit card EMI can help in emergencies: Choose EMIs to pay small amounts in monthly instalments. Check if your product has a zero-interest EMI offer. Please note that even if you have to pay interest on the EMI amount, it is still worth it. It will be lower than the credit card’s outstanding balance interest rates. The tenure may vary from 3 to 18 months. Choose based on your ability to repay. More Protection Via Credit Card If someone tries to steal from you by using your credit card, you can alert the bank, and they will work to recover the funds. Thus, such fraudulent circumstances do not burden your bank account. It will not result in insufficient funds when you need them most. Moreover, it contains a detailed record of your transactions that works as proof of payment. [B-02] Conclusion Credit cards are, therefore, the most convenient way to shop. If busy shopping malls do not appeal to you, shop from home with a credit card. Apart from deferred payments, they are good for saving money through their offers, discounts, and reward points. Piramal Finance is your window to excellent financing options. The knowledge blogs are well-researched and perfect guides to help you plan your savings and expenses.

08-11-2023

Personal Loan

Importance of Personal Loan EMI Calculator Online

An urgent need for money can arise at any point in time. It is not always possible for you to ensure enough funds for such needs. At such a time, you must apply for a personal loan to meet your urgent money needs. Many lenders now offer a personal loan online in a few simple steps. The entire process is completed in a matter of minutes. But this ease may lead you to apply for a personal loan that may stress your finances. It is therefore vital to use a personal loan EMI calculator before you apply for this loan. Read on to learn more about using an EMI calculator and the benefits it can offer. [B-01] What is an EMI calculator? An EMI calculator is a free online tool that you must use before you apply for a personal loan. It only needs basic data like loan amount, interest rate, and tenure. You can learn about the EMI to repay the loan amount during the given tenure. You can access an EMI calculator using a website or a mobile app. Most lenders offer this free tool online for their customers. You can therefore use it as many times as you need to plan for your various loans or credit card bills. There is no need to offer any private details to use this tool. Hence, all your personal data is secure, and there will be no spam emails or SMS bothering you. Benefits of an EMI calculator There are many benefits that you can get by using an EMI calculator for your personal loan. Read on to learn more about the benefits of this tool: Free: You need not pay any fee to use this tool online. Also, you can use it online as many times as you want. This helps you plan your finances in a better way. Basic Data: It is a very simple tool. You only need to offer data related to the loan amount, tenure, and interest rate to get details like EMI, interest paid, and the total amount to be paid. Quick and accurate: This tool is very quick and gives you the results in under a second. That is some speed! Also, an EMI calculator gives correct results every time. It is much faster and more accurate than manual calculations. Anonymous: There is no need to give any of your personal details like name, email, phone number, etc. to use this tool. Hence, your data is always private, and you are safe from spam SMSes or emails. Plan Repayments: With an EMI calculator, you get useful data like loan EMI based on tenure and interest rate. This can help you plan your EMIs in a better way and ensure that you do not borrow an incorrect amount. Interest cost: With this tool, you get an accurate idea of the total interest you will have to pay as per the loan tenure chosen. This will enable you to ensure that you select the optimal tenure to keep the interest cost in check. Easy comparison: Using an EMI calculator enables you to compare multiple personal loans. This will allow you to select the best personal loan offer based on your needs. Flexible Usage: You can use this tool anytime and anywhere that you want. Hence, you are free to undertake EMI calculations as and when you want. All you need is an active internet connection. Extra Details: Many platforms that offer an EMI calculator also provide several other key details. These can be in the form of the total interest cost or an EMI break-up. This information comes in handy when you make a final decision. How to Use an Online EMI Calculator Here are some simple steps that you need to follow when using an EMI calculator: Visit any website that offers an EMI calculator or a mobile app that offers the same feature. Click on the link for the EMI calculator on that website or app. Now, on your screen, you will see this tool. You will need to enter the details as required. Here you must enter the loan amount, interest rate, and loan tenure. Make sure you enter these details correctly. You may also use the slider option to adjust the loan details. There is no need to enter your personal information. Make sure you do not provide such details, even if someone asks for them. Now, click on the calculate button. You will now be able to check the details on your screen. These details include the total interest, total amount, and total principal separately. Some of the calculators also offer the option of an EMI chart. Here you will be able to see how much interest you are paying with every EMI. This will help you better understand key aspects of your personal loan. If you want to compare multiple loans, you just need to change the details as per the available information. This will allow you to compare multiple loans easily and make an informed decision. You can select the best loan offer based on these aspects. [B-02] Using an EMI calculator is a useful step in selecting the best personal loan offer based on your needs. Many platforms offer this tool, and you can easily access it online. To get the best personal loan offers, visit Piramal Finance. They provide high-value loans at low interest rates for all your money needs. You can also contact their experts for any details that you need. The EMI calculator on the Piramal Finance website also allows you to perform calculations easily as and when you need them. They also have many blogs and articles on a range of topics to help you improve your finance skills.

08-11-2023

Personal Loan

How Credit Reports Can Affect Your Personal Loan Process?

When you apply for a personal loan, the lender checks your profile for several factors. One of the most crucial aspects of the personal loan process is your credit score. Your credit score is a 3-digit number between 300 and 900 which reflects your credit profile. Many credit rating bureaus operate in India. They assign you a credit score based on their internal processes. The leading credit bureau in India is TransUnion CIBIL, whose reports are widely used by banks and NBFCs. This score is a part of your credit report. This report features the entire history of your credit profile. Personal loans, business loans, consumer loans, credit cards, and bank limits all form part of your credit report. Based on your repayment history, usage pattern, and other factors, the bureau assigns you a credit score. Based on this score, your loan application will be accepted or rejected. Such is its role in the personal loan process that most lenders give you a rate of interest based on your credit score. [B-01] Read on to learn about how your credit report can impact your personal loan process. What is a credit report? Your credit report is created by a credit rating bureau like Equifax or TransUnion CIBIL. This credit report includes your credit score, which is a key aspect of the personal loan process. Most lenders need you to have a CIBIL score of 750 or above. This will allow you to get high loan amounts at low interest rates, along with quick sanctions. This report features all your past and current credit accounts. It also helps lenders learn about your credit behaviour in the process. Based on how you use the credit and how you repay it, your credit score will change. If you pay your EMIs on time and rely less on credit cards, then your personal loan process will go smoothly. Otherwise, you will have a hard time getting a personal loan from a lender. What does your credit report reflect? Your credit reports play a pivotal role in the personal loan process. Why? Well, it offers lenders useful insights into your behaviour as a borrower. Here are some key aspects of your credit profile that lenders can assess through a credit report: Types of loans: Lenders want you to have a balanced mix of various types of credit. This will reflect that you are responsible for credit. But if you rely heavily on one type of credit, like credit cards, it is a red flag. This will mean that you rely heavily on high-interest loans and credit cards. As such, there is a higher risk of default as the interest cost is too high for some loan types. Current Debt Level: Lenders have a policy wherein they consider around 50% to 80% of your income for EMI payments. The greater your current debt, the less likely you are to be approved for a loan. At any point in time, your FOIR should not be more than 50%. Likewise, your credit card use ratio must also be less than 40% at all points in time. If your current debt-to-income ratio is less than 30%, then your personal loan process will be completed quickly. Repayment Track: It is vital for every lender to ensure that you can repay your EMIs on time. They judge this ability through your past EMI payment track record. Also, you must pay your credit card bills on time. If there is any cheque bounce or write-off for any of your loan accounts, then you will not be able to get a loan. If there was a bounce at the start of the loan and you have a valid reason for the same, then you may get a loan. If your credit score is below the minimum level given by the lender, you will not be able to get a loan. In fact, many lenders do not process the loan if the credit score is below 700. Hence, you need to follow some useful steps to improve your credit score. How to improve your credit score? Before you apply for a personal loan, here are the steps that you must follow to improve your credit score and speed up the personal loan process: Pay your EMIs on time: You must pay your loan EMIs and credit card bills on time. To avoid any oversight, ensure there is enough balance in your account at least three days before the EMI is due. Always opt for an auto-debit option for credit card bills. Herein, you can select the minimum amount due for auto-debit and then pay more later on in the coming months. Do not apply for too many loans: You must apply for a loan only with a lender whose criteria you can meet. Too many queries at the same time will lower your credit score. Avoid credit cards: You must avoid the use of credit cards to pay for your daily costs. This will help you keep your credit card usage low and your credit score high. [B-02] To get a personal loan quickly, you need to have a good credit score of 750 or higher. This will allow you to get the best offers and deals from lenders. The personal loan process will be finished quickly. In fact, if you apply for an online personal loan, you will get instant approval. To get the best deals on your personal loan, visit Piramal Finance. They offer a range of loans to meet any need that you may have. Low rates of interest and long repayment periods make it a suitable lender for you. They also have many articles and blogs to help you better understand your credit report and how to quicken the personal loan process.

08-11-2023

Personal Loan

Track Personal Loan Application Status For Top Banks

Most people pick personal loans to fund their expenses. Personal loans are versatile, and you can avail of one offline or online with any bank. Many find it frustrating to wait days to know whether their application is approved. But you can now check your personal loan application status to see its progress. This article will guide you to track the latest status of your loan. [B-01] What is the process for tracking loan status for your personal loan? There are multiple ways you can access your loan application status instantly: 1. Tracking personal loan application status via mobile number Many banks allow borrowers to track their personal loan application status simply by entering their mobile number. This way, you can receive all the loan-related information on your number. However, remember to update your bank details if you plan to change your contact number. 2. Tracking personal loan application status via reference number The second option to stay updated with your personal loan application status is through a reference number. A reference number or application number works as a unique identifier. Visit the respective portal of the lending institution and enter your reference number to access the desired information. However, you must keep it handy to check your status. 3. Tracking personal loan application status via net banking You will find tracking the personal loan application status easier if you are an existing customer of the lending bank. Firstly, banks offer eye-catching terms and conditions to their loyal customers, so you can negotiate and bag better loan terms. In addition, you might already have your account on their banking portal. You can check your personal loan application status by visiting the website and heading to the loans section. You can apply, confirm, verify, or know the loan balance. 4. Tracking personal loan application status offline While online procedures are encouraged, individuals can use offline means as well. You can ask a bank official to assist you in tracking your personal loan status at any branch nearby. You must mention the application ID the bank gave you when you applied for the loan. Loan Tracking Process for Banks Many banks endeavour to streamline the loan application process and provide live status updates to borrowers. Here is the process to track personal loan application status for some of the top banks: 1. Union Bank of India Union Bank of India facilitates personal loans with digital processing and no paperwork. You can easily track your personal loan application status by following this short process: Visit the official website of the Union Bank of India. The home page presents a list of services the bank offers on the right side. Select the “Many More” option under the “Apply Online” menu. Tap on “Loan Application Status.” It will lead you to a page with an online application tracker. Type in your “Acknowledgement Number” in the space provided and hit “Search.” Now, you can check the progress of that loan application in the search results. 2. Kotak Mahindra Bank Kotak Bank provides personal loans at reasonable interest rates to customers and non-customers. You can track the status of your loan application by following the given steps. Open the official website of Kotak Mahindra Bank. Click on the menu at the top left corner of the page. Navigate to the “Service Request” option on the menu bar and select “Loans.” Tap on “Track Personal Loan Application Status.” A new page will open. Fill in the required details and click on “Check Status.” 3. Punjab National Bank Many of Punjab National Bank’s personal banking services, like deposits, retail financing, credit cards, and debit cards, are affordable. You can follow the status of your application to see how it is proceeding if you have applied for a loan here: Visit the official page of the Punjab National Bank. Select “Online Services” on the home page to open a drop-down menu. Click on “Loan.” It will direct you to a new page. Scroll down the webpage and select “Click Here to Check Your Application Status.” Next, you have to enter the loan you applied for, your serial number, your date of birth, and the security key. Once you’ve filled out the form, click “Submit” to find out the status of your application for a personal loan. 4. IDFC First If you have applied for a loan through IDFC First, you can check the status of your personal loan using the online client portal: Visit the IDFC First Bank’s official website. Navigate to the Contact Us section and select “Click here to log in to the customer portal with your user ID and password.” Next, input the relevant details to enter the portal. After giving the information, click “Submit.” Head to the menu section and select “Products and Services,” then “Check Application Status.” Enter your loan details and click “Submit.” You can now check the status of your personal loan. 5. YES Bank After applying for a personal loan at YES Bank, here’s how you can keep track of its progress: Visit the official website of YES Bank. Locate the “Contact Us” option and navigate to the “SMS” section. Send a message with the syntax “HELP” separated by a space and your registered contact number to +91 92233 90909. You will receive a reply from the bank directing you through the entire process. Follow the steps precisely to check your personal loan application status. The bank will send you a message to access the application status once you give all the relevant details. [B-02] Conclusion The availability of several options to track personal loan application status has made it easy to learn about loan approval. Besides the official banking website, you can get assistance from customer care. Moreover, mobile applications are a great way to track personal loan application status. However, if it is your first time applying for a loan, it is better to get help from a bank or financial advisor. Piramal Finance offers excellent finance-related services to corporations and individuals seeking assistance or facing issues in banking activities.

08-11-2023

Personal Loan

Importance of a Personal Loan for Students to Achieve Their Goals

Lenders offer education loans to qualified students who need help furthering their studies. Lenders have strict criteria that you must meet in order to obtain a loan. You can always apply for a personal loan for students if you are not eligible for an education loan. A personal loan can be used for all expenses, including tuition fees, accommodation, and miscellaneous expenses. This article highlights why personal loans for students are a good choice if you do not qualify for an education loan. [B-01] How do you get a personal loan for students? 1. Calculate how much you need. It is vital to know your needs before applying for a personal loan for students. Personal loans offer lump sum payments, and you should know the precise amount you need for fees and other study-related costs. It will allow you to borrow enough money to cover your study-related costs. 2. Determine your loan eligibility. You may be eligible to borrow more (or less) than you need. It depends on your credit history, CIBIL score, monthly income, previous loans, and other factors. Lenders often consider these factors before determining the amount you are allowed to borrow. 3. Find a credible lender. There are several choices for getting a loan since many banks and NBFCs offer personal loans for students. To reap the most benefits, compare loan options from several lenders. You can compare the interest rate, processing fees, late payment costs, pre-closure fees, user reviews, etc. 4. Determine if you can afford the EMI. You may calculate your monthly payment online using an EMI calculator. You have to input the principal amount, tenure, and interest rate. The calculator will calculate your EMI amount. Unlike school loans, the EMIs for personal loans for students begin instantly. As a result, ensure that you or your parents or guardians can repay the debt sum you choose and that monthly payments will not cause financial stress. 5. Submit your application. Once you have accessed all the parameters of the loan, you can apply for a personal loan for students. You can complete the application form online (via the lender’s website) or offline (by visiting their office). Remember to submit all the necessary documentation. The principal amount will be deposited directly into your account. What should you consider when getting a personal loan for students? 1. Interest Rate Personal loans have the highest interest rates. They can range from 12 to 28% per year. On the other hand, the interest rate for a student loan is between 6 and 13% per year. If you have a good credit history, you should use this when negotiating with the bank for a lower interest rate. 2. Collateral Since a personal loan is an unsecured loan, you do not need to provide any assets as collateral. This makes the process simpler, as your assets do not need to be evaluated. Since these loans do not require any collateral, you do not have to fear losing your assets if you do not repay the loan on time. However, this also means that the loans have higher interest rates. 3. Processing charges You must pay a processing fee when applying for a personal loan for students. Processing fees can range from 1 to 3% of the total loan amount. 4. Prepayment and foreclosure fees Many lenders charge prepayment and foreclosure fees on personal loans for students. These fees range from 2–5%, depending on the lender. Therefore, go over the terms and conditions before signing. What are the benefits of a personal loan for students? 1. Personal loans are based on credit scores. CIBIL gives you a credit score based on how low of a credit risk you are. You can be eligible for higher loan amounts and lower interest rates if you have a good credit score. Before approving your loan application, lenders always look at your credit score. For a personal loan, you need a credit score of 750 or higher. 2. You can get a higher amount. A personal loan for students can have a principal amount as high as INR 30 lakhs. However, you can also be eligible for higher loan amounts. As a student, the amount will depend on your credit score, the income of your guardian (if you do not work), credit score, and credibility. Personal loans are a great choice for students because you can borrow a lot of money without putting anything up as collateral. Personal loans are also different from education loans in that they can be used for things other than education-related costs. 3. Personal loans for students have quick disbursals. Personal loans for students have an extremely swift application and disbursal process. The application process can be done online. After you apply, the lender will verify your application to make sure everything is in order. The loan will be approved within a few days. Once the personal loan for students is approved, the principal will be deposited in your authorised account within 24 hours. After this, you can spend the money you wish. [B-02] Conclusion A student personal loan is the best way to pay for college if you do not qualify for education loans. Personal loans have reasonable interest rates. You can apply for personal loans with your parents or legal guardians if you do not work or are under 18 years old. You can get a loan depending on your and your guardian’s credit history and income. Personal loans for students are an easy alternative to education loans. You can use this principal amount as you wish. If you want to know more about personal loans for students, visit Piramal Finance. Piramal Finance offers competitive personal loans with affordable EMIs and market-value interest rates.

08-11-2023

Personal Loan

Importance of Personal Loan EMI Calculator You Must Know

A personal loan is a loan without any collateral. It is usually used for personal reasons. You could apply for a personal loan for your kid’s education, travel abroad, home renovation, or even medical expenses. The loan is made without any collateral. But the rate of interest varies. Personal loans usually have higher interest rates. These depend on your CIBIL score, credit history, etc. It is recommended that you use a personal loan EMI calculator to be prepared. [B-01] What is a personal loan EMI calculator? A free-of-cost EMI calculator is a very useful tool. It allows you to calculate the amount of interest you’ll have to pay per month for a particular type of loan. The EMI calculator will help you calculate the amount of loan you can take. It will also calculate the sum you’ll have to keep aside for repayments. You’ll get an idea of the interest rate for the principal loan amount. This will depend on different repayment tenures. The EMI calculator uses various benchmarks to do so. They are your desired loan amount, the given interest rate, and the preferred loan tenure used to calculate the EMI payable. Information provided by a personal loan EMI calculator EMI: The monthly EMI amount you’ll have to pay your lender to pay off your loan. Breakup of your total amount payable: Calculation and breakup of your total personal loan amount payable to the bank. This amount is the sum of your loan amount (principal), processing fees, and interest payable. Features of the EMI calculator: A graphic depiction of the principal amount and interest amount. Repayment table illustrating details regarding your loan repayment. This table will help you plan your monthly expenditures in advance. Here are some reasons why a personal loan EMI calculator is important. Easy to navigate One of the main benefits of a personal loan EMI calculator is its ease of use. It has a step-by-step guide to assist. It is user-friendly. Many lenders provide an EMI calculator. They’ll go above and beyond in explaining how to use the EMI calculator. They do this if they value the borrower’s comfort. All you need to do is visit the lender’s website. Then enter your desired loan amount, interest rate, and repayment tenure. The repayment tenure for a personal loan ranges from 1–5 years. If your lender has a personal loan app, you can easily use the EMI calculator on the app whenever you want. Some lenders even provide on-call or in-person help. They assist you throughout the loan process. Accurate results You’ll be surprised at the accuracy of the calculator. A manual calculation to assess interest payable always leaves room for error. Miscalculation is always a possibility with manual calculation. Moreover, you will have to spend time testing various interest rate combinations for the desired result. So use an EMI calculator for a personal loan. With this, you get instant and accurate results within minutes. The algorithm also considers your credit score. It also lets you experiment and test various loan amounts. It does this without hurting your credit score. Time-saving Now you don’t have to make calculations manually to experiment with and test loan rates and interest rates. A personal loan EMI calculator is swift. It will provide instant results. You don’t even have to visit the bank. You don’t have to stand in line and wait all day for your turn. You can get the results online. You can do all this from the comfort of your home. You don’t have the trouble of assembling tonnes of documents to calculate the EMI for your personal loan. You only need a stable internet connection to use a personal loan EMI calculator. Insight into the repayment process An EMI calculator provides information on your payable EMIs. It also helps you comprehend your repayment patterns. Simply put, you will receive an amortisation table on your loan tenure. This will showcase the breakdown of the loan amount you will have to repay. An amortisation table includes a percentage of your principal and interest payments. It also shows how they affect each EMI. The amount calculated in the table is accurate. It helps you plan your prepayment. Moreover, you’ll be able to choose the best time to extract maximum value from your payments. You will also save on interest rates. Compare different loan plans easily. With a personal loan EMI calculator, you can differentiate how much interest and the principal are payable for different loan amounts and tenures. You can compare different lenders. With this, you can choose the best option without harming your credit score. All of this is free and easy. You will save money by not paying any agent or institution to make the calculations and comparisons on your behalf. It’s an easy way to experiment. You also come to know your options before deciding. That will be a decision that will not harm your monthly financial obligations, daily expenses, or lifestyle. Remember that you do not have to choose the first personal loan plan recommended by the EMI calculator. You can explore and compare your available options. Loan planning simplified Personal EMI loan calculators are crafted for the sole purpose of helping you. They are there to help you understand the interest and the principal amount payable for your chosen loan plan. It is more convenient than other calculating options. So, many lenders provide their users with an online EMI calculator on their website. By knowing your EMI beforehand or planning the amount of EMI, you will be comfortable with your repayment schedule. It will make the repayment procedure smooth and easy. You will be prepared. You will not have to stress when the repayment date arrives. [B-02] To conclude, personal loans are in demand. This is because they don’t need collateral. They can also be used for various purposes. However, for the same reasons, the interest rate on personal loans is relatively higher. With the help of an EMI calculator, you can be prepared beforehand. Visit Piramal Finance to get more insights on personal loans. You can also avail yourself of financial assistance for loan planning.

08-11-2023

Personal Loan

Is Taking a Travel Loan for Your Trip a Smart Choice?

The holiday season is here. It’s time to splurge on the festivities. Be with friends and family. It’s time to plan for the trips that you missed out on for the last two years. Holidays and trips are great. But it is also a little heavy on the pocket. Or you might be just short of the budget for the big trip that you have been planning. When you have planned and anticipated so much, canceling is certainly not your preference. A personal loan for a holiday trip also known as travel loan might just help you. [B-01] What is a Travel Loan? A travel loan is a type of personal loan that can be availed for a holiday trip expenses. Many financial institutions offer personal loans to cover your travel expenses. Not all financial institutions advertise a personal loan as a loan for a holiday, but most personal loans do pay for many travel-related expenses like transportation expenses, hostel fare, car rentals, etc. The loan amount that you can avail of differs from organisation to organization. However, these loans for holiday trips are unsecured. They may have higher interest rates. Why opt for a personal loan for a holiday trip? Whether you are a travel buff or a one-time tripper, finances can sometimes place your plans on hold. A personal loan for a holiday trip helps you pay for your travel expenses. You have to remember that, with the added interest, the overall cost of the trip will be higher than what you would incur without a loan for a holiday trip. On the other hand, you cannot delay that business trip that is around the corner or halt emergency travel. On such an occasion, a personal loan for a holiday trip is the right way to go. Taking out a loan for a once-in-a-lifetime opportunity may not be a big deal for some. The memories that you will make are much more precious than the extra amount spent. Some obvious benefits of taking out a personal loan for travel are: You will spare your savings from spending on travel. You will also get the option to pay back the loan in a small monthly fixed amount. If you are faced with unexpected travel and a cash shortage, a personal loan for a holiday trip can come to the rescue. To minimise your burden of interest, you can check for discounts whose rebate rates are lower than the interest rate of your loan for a holiday trip. Loan for a holiday trip can also prove cheaper than using credit cards. Many loan options have interest rates that are lower than the interest on your credit card spending. If you need a smaller loan amount, you can opt for an instant loan for travel, which you can apply for online and receive quick disbursement for hassle-free travel. Should I be concerned while applying for a personal loan for a holiday trip? The basic idea of a loan is that it should help you grow your asset or pay your dues, like credit card expenses, hospital charges, weddings, home renovations, etc. However, due to their high interest rates, personal loans are the least popular of all kinds of loans. And taking a personal loan for a holiday trip is the least favourable of all options. You take a loan for your holiday trip of one week or 10 days. The interest that you will be charged will increase the expenses many folds than the actual cost of the trip. The result is that for that short trip, you will keep paying for the next two or three years. Travelling comes with many unforeseen expenses, no matter how well you plan. You have already planned your trip by taking a loan. You will pay interest on this. Then there are these additional expenses. You will use your savings or your credit card to pay for these. In such a scenario, your expenses are mounting, and by the end of the trip, you will be burdened with much more than was originally expected. Personal loans can also negatively affect your credit score. If you require another loan, say a home loan, in the period your personal loan is running, it is highly likely that your home loan will be rejected due to a negative credit score. Thus, you will miss out on the opportunity to create an asset. You plan a vacation to relieve stress and enjoy some peaceful days. Now, imagine getting home with a load of money with interest to be paid back. It is stressful. This is just the opposite of what you wanted from your holiday. So instead of returning lighter, you are returning heavier. What should I do? After going through all the positives and negatives of a personal loan for a holiday trip, you have decided to finally opt for one. Here, you need to keep a few things in mind. Be very stringent with your budget. Set a strict limit on your spending and do all it takes not to go over the board. At the same time, keep a percentage of the loan aside to use for any unplanned expenses that may show up. Staying within your budget will keep your mind lighter and your pocket heavier. Check your repayment capacity before you borrow. Never take a loan that you will not be able to repay on time. It will negatively impact your credit score. It will also overburden your monthly expenses. Try to pay your loan for the holiday trip before the final payment is due. You will end up saving a lot on the interest that you were supposed to pay. Some banks may charge a re-payment amount, but rest assured that it will still be lower than all the interest that you will pay. Planning is key when applying for a personal loan for a holiday trip. Check for the interest rates and the number of EMIs that you will be paying. Compare different options. Different financial institutions have different payment options. Choose the option that is best suited to you and provides an option for early repayment without a heavy penalty. [B-02] Personal loans are great for meeting any unseen expenses. If an unexpected travel plan comes up and you are short on cash, a personal loan for travel can bail you out of the situation. However, before you use one, get a proper fact check. Check out Piramal Finance for more information.

08-11-2023

Personal Loan

How EMI Calculator Plays An Important Role In Calculating Personal Loan Amount?

A personal loan EMI calculator is a tool that calculates the amount of money that you must pay to the bank each month on a certain loan. You can figure out how much you’ll have to pay monthly on loans from distinct banks and NBFCs. You may do this by putting the principal sum, interest rate, and loan period into the online tool. A personal loan EMI calculator will determine the sum you must repay the bank in monthly payments. EMI calculators may also assist you in grasping the loan’s interest. You may use them to compute EMIs for all types of personal loans, like auto, house, and personal loans. It assists you in making wise financial decisions. Continue reading to learn about the perks of using a personal loan EMI calculator when planning to apply for a personal loan. [B-01] How to Use an EMI Calculator? A personal loan EMI calculator is easy to use. It has charts and gives quick results. Given below is the list to find loans using a personal loan EMI calculator: The principal amount (in Rupees). Term of Loan (in months or years). Interest Rate (percentage). Unpaid EMIs or Pre-paid EMIs (for car loans only). You can adjust the values using a slider. If you want exact values, you can directly type them. A personal loan EMI calculator will find the amount of your EMI when you change the value. For a better understanding, let’s take an example: Borrowed amount – Rs. 5 lakhs from a bank. Rate of interest -10.5% annually. Tenure of loan – 5 years (60 months). Then, the EMI = Rs. 5,00,000 x 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)60 – 1) = Rs. 10,869 This means that you will have to pay Rs. 10,869 every month for 60 months to repay the entire loan amount. The total amount payable will be Rs. 10,869 x 60 = Rs. 6,52,140, which includes Rs. 1,52,140 as interest toward the loan. Features of a Personal Loan EMI Calculator Helps Pick Offers in Terms of Cost Choosing offers is one of the reasons to get help from a personal EMI loan calculator. You can compare offers easily because of how simple it is to use an EMI calculator. You may review the repayment details. There are many loan term options that may fit your needs. Exact Outcomes The quality of the findings is one of the major perks of using the personal loan EMI calculator. There is always the chance of wrong data when using a manual system to determine how much rate is due. You do not need to use a pencil and paper and risk miscalculating the rate due. Also, you do not need to sit down and manually test many rate pairings, desired loan rates, & loan tenures. Saves Time One of the main perks of using the Loan EMI system to calculate personal loan EMI is that it saves time by providing quick and precise answers. A personal loan EMI calculator is available online, saving time and effort to go to the bank and wait for your loan EMI to be computed. Removes The Need For a Manual Sum The EMI calculator’s user-friendly interface assists you in avoiding complex sums. To find the EMI amount, just input the desired loan balance, the loan rate, and the loan tenure. This saves you the time and effort of using the EMI formula manually. It should be noted that using the formula would need more work. It is also more time-consuming. You will need to convert data to fit the criteria of the equations in use. Makes Loan Planning Easier Personal loan EMI calculators are intended to assist you in figuring out how much interest and the total is due on a certain loan sum. Due to their ease of use, personal loan EMI calculators are now the main method of calculating EMIs. Also, a loan EMI calculator doesn’t merely show how much EMI is due. It also offers you a repayment schedule/table for the life of the personal loan. A repayment plan may seem formal, but it refers to a plan or table that shows a split of the loan sum you must repay throughout the term. The repayment table displays the precise interest rate due each month until the loan is paid off. During the loan term, the sums in the repayment plan are equal. Having access to this table might help you plan out your loan instalments ahead of time and avoid late payments. It assists you in evaluating your lifestyle & financial demands and determining how you will put away the allotted EMIs for loan repayment. Paying off a loan on time might be hard if you don’t prepare. Process To Calculate Personal Loan EMI with an Online EMI Calculator There are many steps to calculate the personal loan EMI. These are as follows: Step 1: Visit any reliable website. Step 2: Click on the calculator tab to access the EMI calculator. Step 3: Decide the type of loan needed. This may be a house loan, a personal loan, a vehicle loan, and so on. Step 4: You must now provide the proper details. This includes the loan amount, principle, rate, and loan time. Step 5: The EMI calculator will show the payable EMI amount after entering the details. Step 6: You may try other combinations to find the best fit EMI amount. [B-02] Conclusion Loans are now a vital part of many lives. They help in reaching specific life goals. EMI is the most vital term to keep in mind when it comes to loans. There are many personal loan EMI calculators that you can use to calculate loan EMI. This includes personal loan calculators, home loan calculators, and business loan calculators. They may be used to calculate the personal loan EMI of various loans. When you enter the needed data into an EMI calculator, it makes calculations based on the EMI calculation formula. Then, it provides the EMI you must pay monthly in seconds. If you want to know more about personal loan EMI calculators, visit Piramal Finance. You may also explore their products and services.

08-11-2023