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Personal Loan

Things You Must Know While Closing A Personal Loan

A personal loan is the best option for paying off debt, financing a car, or covering a large expense such as a wedding or education. Personal loans can be used to cover various personal expenses and help with repayments. Online lenders, regional banks, and credit unions all offer loans, and the money is given to the borrower all at once. Personal loans are usually unsecured, so you won’t need to put up any collateral to get one. Let’s now know what you should know about personal loans, interest rates, and the assistance you can get from ABC in closing personal loans. [B-01] What is a personal loan? A personal loan is the amount of money you obtain from a bank or other financial institution, intending to repay it over a fixed period with regular monthly payments. You must repay the borrowed funds plus interest. Additionally, some lenders may charge fees for personal loans. Moreover, your lender will probably notify the credit bureaus of any account activity throughout the loan’s term. You can establish a solid credit history by paying your bills on time. A personal loan typically has a fixed repayment date by which you must repay the loan amount before finally closing your loan account. Uses of a Personal Loan The use of the loan amount is totally up to you. The lender usually does not specifically ask for the reason before providing the loan. However, there are some common uses of personal loans, as follows: Debt Repayment You can pay off your credit card debts or clear your borrowing amounts with other debtors. Personal loans for these kinds of things tend to have lower interest rates and help people pay off personal loans by giving them options for low monthly payments. Incurring important costs Big events such as weddings, ceremonies, and hosting functions require financing to cover the remaining costs. You can take out personal loans with a fixed repayment time and a reasonable interest rate to slowly pay off the loan amount. Education Fees While sending your children abroad for higher studies or covering their college fees might require you to have stable finances. Personal loans are the best at helping you keep a lump sum of money to make such payments on time. Investment Personal investments such as education expenses, investing in stocks and shares, or financing your own business require upfront payments. Personal loans can help you pay for things that will make you look and feel better about yourself. Property Renovation or Repair You can take an unsecured personal loan for house remodelling, repairs, or renovation. Since they require no collateral and have seamless options for a closing personal loan. Unsecured personal loans are better than home equity products, where one has to put their home up as collateral. Personal Emergencies Personal loans take only a few days to process and get approved. In case of certain emergencies, such as medical bills or funeral expenses, you can choose a personal loan to pay them off. Types of Personal Loans Different loan types are suitable for other borrowers, regardless of whether they are financing a big event, a purchase, or something more specifically personal. It’s a good idea to become familiar with these loan types and their finer points, such as repayment terms and credit requirements. Education Loan: Personal loans of up to Rs 20 lakh can be used to cover everything from your children’s tuition fees to their higher education costs. They have long repayment tenures of up to 15 years, with interest rates starting at 6.35%. Wedding Loan: In India, weddings hold great significance and are celebrated like festivals. Personal loans help make the special day memorable by facilitating loans up to Rs. 25 lakh. The repayment tenures are up to 6 years with minimum documentation and processing. Home Renovation Loans: Personal loans help finance your house’s repair, renovation, and remodelling costs. It helps increase your property’s economic real estate value as well. Loan amounts of up to Rs 40 lakh are available, with an interest rate of 6.85%. The Process to Close a Personal Loan Consider closing personal loans when you have extra cash to avoid being tied to them. Most banks allow you to pre-close a personal loan by paying the balance in full after six instalments at any time. You can choose from the following: Personal Loan Closures: You pay the lender through regular EMIs before the due date and issue a No Objection Certificate to close the loan. Personal Loan Pre-Closures: You pay the remaining loan before the fixed repayment tenure. You can do this after a minimum of 6 to 12 EMIs are successfully delivered. Partly Payments of Loan: You are running short of cash, and ask the lender to reduce the monthly EMI amount. The process for closing personal loans is as follows: Visit your bank’s nearest branch and ask for a loan closure application. Read the application carefully and fill in the required details. Produce the required documents for the bank officials. Make the payment with cash, a demand draft, or a cheque. The bank will give you an acknowledgement letter, which you need to keep safe. The bank will send the final closure details to you after a few days. Documents Required for Closing Personal Loans Before closing a personal loan, you are required to bring along the following documents: Information about loan Identity Proof: Aadhaar Card, PAN, etc. Proof of address: an electricity bill, a water bill, a utility bill, etc. Details of EMIs paid to date; Demand Draft or Cheque. [B-02] Conclusion A personal loan might be the ideal solution if you require financial assistance but prefer the security of a perfect repayment schedule and a fixed monthly payment. Piramal Finance can advise on what types of personal loans might be available and the types of borrowing for which you stand the best chance of being approved. Your current bank or credit agency might be your best choice when searching for personal loans. Take action now to become an attractive borrower by raising your credit score and keeping other debts to a minimum to get the best loan rates and terms. If you still have any queries, contact Piramal Finance for advice on closing personal loan or other financial assistance.
08-11-2023
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Personal Loan

How Do You Know If You’re Eligible For A Personal Loan?

Depending on your needs, there are several types of personal loans to choose from. These are generally easy to apply for. Such loans also do not require any security. Due to the ease of acquiring a personal loan, they have become a popular means of financing. However, to get a personal loan, there are some criteria that you need to meet. Before approving your loan, the lender will check your personal loan eligibility based on several factors. Various factors can affect your eligibility for a personal loan. Some of these factors are your credit history, current income, and age. It is important to check your eligibility for a personal loan before you apply. This can help you know the amount you can borrow. [B-01] Let’s take a closer look at some of the basic factors that can help determine your personal loan eligibility. Age. You can start checking your eligibility with one of the most basic criteria—age. A majority of lenders have a set age limit for personal loans. Generally, you must be within the age bracket of 21 to 67 years to be eligible to apply. Current Income. A higher income indicates a greater chance of loan repayment. This reduces the lender’s risk. Thus, people with a higher income have a better chance when applying for a personal loan. For this reason, there is a minimum income requirement when applying for loans. The exact amount may vary from lender to lender. Similarly, the maximum age will also vary depending on the bank. Housing Situation. Where you reside is also a crucial factor that can determine your personal loan eligibility. Having your own house helps when you apply for a loan. Rent takes away a large chunk of your income. This reduces your capacity to repay the loan. However, it is still possible to get a personal loan even if you do not own a house of your own. Geographical Location. Banks also consider the location of the applicants. Generally, applicants living in bigger cities are assumed to have a higher income. As stated earlier, a better income means a higher capacity to repay the loan. The minimum income needed for loans may also vary based on the city that you live in. The salary requirement for people living in Tier-2 and Tier-3 cities might be lower. Credit Rating. This might be one of the most crucial factors to consider when applying for a loan. The minimum credit score may vary from lender to lender. Generally, if you have a credit score of 750 or higher, you might have a better chance of getting your loan. People with a higher credit score are believed to be financially wise. A higher credit score shows a lower chance of default. Some lenders may offer loans at a lower interest rate to people with a higher credit score. It is also possible to get a loan with a poor credit score. With a lower credit score, you will get loans at higher interest rates. To boost your chances of getting a loan at a lower interest rate, you can improve your credit score. You can improve your credit rating in the following ways: Ensure that you repay loans on time. Do not take out a lot of loans at the same time. Only apply for loans that you can repay. Check the activity of your joint accounts. Your joint accounts can also impact your eligibility. Keep a check on your credit history. Current Debt. How many EMIs do you need to pay? What is your fixed cost? Banks may also consider your debt-to-income ratio. This indicates your net disposable income. Your disposable income can be a clear sign of your ability to repay your loan. Normally, this ratio should not exceed 50%. Simply put, your total fixed costs should not be more than 50% of your total income. Fixed costs include credit card bills, previous and upcoming EMIs, and other monthly expenses. Employment status. Many banks demand that applicants have prior work experience. Salaried people might be required to have a minimum work experience of two years. You must also have a minimum work experience of six months at your current job. The reputation of your employer might also be a deciding factor. If you work for a reputed company or public enterprise, your chances of getting a loan are higher. People with such jobs have a stable income and better job security. If you are self-employed, you might need to have work experience of at least 2 years in your current business or profession. [B-02] The bottom line While getting a personal loan may be easier, it is vital to check your eligibility. These factors can not only impact if you get a loan or not, but they can also impact the terms of your loan. The higher your eligibility, the better the terms of your loan. While it might not be possible to meet all the criteria, you can work on building your CIBIL score. This would require financial discipline and patience. These details must have helped you gain a better understanding of your eligibility for personal loans. Understanding financial matters can be tricky for most people. It always helps to be sure. Whenever you are unsure, you can consult reliable lenders like Piramal Finance. Their expert financial advisors can help you determine your eligibility. You can also check out their free credit report tool. They also have many articles and blogs on their website that will help you learn more about the world of finance.
08-11-2023
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How To?

How To Check & Track Personal Loan Application Status For Top Banks

When faced with an unexpected financial crisis, personal loans come in handy. However, you must remember that applying for the loan amount and finally receiving it takes some time. While waiting for your loan amount, you can track your personal loan application status to ensure that the loan is processed promptly. However, monitoring loan application status varies from one bank/NBFC to another. To make things a bit easier for you, here’s an article discussing how to track personal loan application status at the top 5 banks. [B-01] Top 5 Banks process to track and check loan status. SBI The SBI, also known as the State Bank of India, is an Indian multinational Fortune 500 company. It is a public-sector banking and financial services statutory body, and its headquarters are in Mumbai. It has a rich legacy spanning almost 200 years and is one of the most trusted banks in India. To track your personal loan application status online using your SBI loan account, you need to follow the simple steps listed below: Visit this website. Click on “Apply Online.” The website will immediately direct you to a separate page. You’ll find the “Application Tracker” option on the top right-hand side of this page. Click the “Application Tracker” option. A pop-up window will appear, from which you must select the “Track” and “Retail Loan” options. Now, you need to enter your registered mobile number and reference number. Then click on the “Track” option. Then, you will be able to see the status of your personal loan application. To track your personal loan application status through the mobile application, you need to follow the steps listed below: Download the SBI loan mobile application on your phone. Open the app, and then click on the “Personal Loan” option. Choose the personal loan scheme you have availed of and then click on “Next.” Click on “Menu,” which you’ll find on the top left side of the app. A drop-down list will appear, and from it, click on the “Track Application” option. Type in your application reference number and your registered mobile number. You’ll immediately see the status of your personal loan application. HDFC Bank The Housing Development Finance Corporation, or HDFC, is one of India’s major private banks. HDFC Bank offers its customers a wide array of financial products and banking services through a growing branch network, an ATM network, and digital channels like Netbanking and MobileBanking. To track your personal loan application status online using your reference number, you need to follow the steps given below: Click on the link. A window will appear. Once the window appears, type in either the applicant’s name or the reference/proposal number. Also, you will have to enter either the applicant’s date of birth or the applicant’s registered mobile number. Then click on “Submit,” and you will be able to check your loan status. Axis Bank Axis Bank is India’s third-most popular private-sector bank. It offers an entire range of financial services to customer segments covering large and midsized corporations, agriculture and retail businesses, and MSMEs. It began operations in 1994 and today has over 4,758 domestic branches. To track your personal loan application status simply by using your loan application ID, you must follow the basic steps given below: Go to the official website of Axis Bank. Type in your application ID and date of birth. Also, correctly enter the captcha code. Then click on “Enquiry.” The website will then show you the status of your loan application. You can also track your personal loan application status online using net banking by following the steps mentioned below: Visit Axis Bank’s official website and then log in to your net banking account. After logging in, find and select the “loan” option. Once the loan section opens, you can see the option to track personal loan application status.4. ICICI Bank ICICI Bank is yet another prominent private-sector bank in India. It was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its subsidiary. ICICI Bank offers various financial products and services to retail and corporate customers through various delivery channels and its group companies. To check and track your personal loan application status using the official website of ICICI Bank, you must go through the following steps: Go to the official website of ICICI Bank. Then type in the “reference number” or “form number” in the designated field. Click on the “Submit” button. You will soon be able to see the status of your loan application. You can also call the toll-free ICICI Bank customer care number at 1800 1800 to track your personal loan application status. Bank of Baroda The Bank of Baroda is an Indian state-owned banking and financial services organisation established on July 20, 1908. The Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, founded the Bank of Baroda. It has its headquarters in Vadodara and offers its customers a wide variety of financial products and services. To check and track personal loan applications online using the official website of the Bank of Baroda, you have to follow the easy steps listed below. Visit the official website of the Bank of Baroda. Click on the “Login” tab at the top right corner of the webpage. A drop-down list will appear. From the list, click on the “Baroda Connect (Net Banking) India” option. A new window will open. Select “Retail User” on the newly opened login page. Then, log in using your user ID. Once you log in, you need to follow step-by-step the instructions given on-screen to check the status of your personal loan application. You can also call the Bank of Baroda’s toll-free customer care numbers, 1800 102 4455 and 1800 258 4455, to know your loan application status. [B-02] Conclusion Tracking loan application status has never been easier, and you can now do it either offline or online. If you aren’t well-versed in technology, you can always visit the bank branch and ask the officials there to help you out. Today, most banks and NBFCs have built user-friendly online loan status tracking tools, and Piramal Finance is no exception. This leading finance company, which offers quick, hassle-free personal loans, also has an online loan application status tracker tool to help its clients be aware of what is happening with their loan applications.
08-11-2023
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Personal Loan

LIC Personal Loan Interest Rate 2022: All Types

The largest insurance provider in India, Life Insurance Corporation (LIC), gives its customers the option of taking out personal loans against their insurance policies in addition to a variety of insurance products. These LIC policy-backed secured personal loans provide payback terms of up to five years. The LIC personal loan interest rate starts as low as 9% per year. To cover a variety of personal financial demands, including medical costs, a wedding, further education, etc., you can borrow up to 90% of the policy’s amount of deposit. Your loan amount is 90% of the policy’s amount of deposit, with a 5-year term and an interest rate that begins at 9% per annum. [B-01] Interest Rates for LIC Personal Loans The LIC personal loan interest rate begins at 9% per year. However, the personal loan’s rate of interest that applies to a certain application changes depending on the applicant’s unique profile. This may include your level of income, kind of work, desired loan amount and term, etc. Calculation of Interest on LIC Reducing Balance vs. Flat Balance The flat rate or flat balance method of calculating interest on a personal loan with the LIC Personal Loan Interest Rate is employed. In this case, the interest is calculated on the total loan principal amount for the course of the loan term. It does not take into consideration the principle that has now been paid in full. This plan doesn’t take into account the fact that when monthly EMIs are paid, the amount of the loan principal steadily goes down. The declining balance technique, however, just calculates interest on the remaining loan principle each month. Consequently, when the amount of the unpaid balance falls each month, so does the interest due. As a result, when interest is calculated using declining balance interest rates, you will save money on the total interest payment of the loan. How Can I Get a Personal Loan from LIC at Low Interest Rates? Here are some tips that may help you get a personal loan from LIC with a lower rate of interest: Having solid employment and work history with a reputable company Timely payment of EMIs and credit card balances Having a positive history with the lender Reduce your debt already due. Interest rate-influencing factors Here are some critical elements that determine the LIC personal loan interest rate: Income: The applicant’s income frequently affects the interest rate that the lender charges. Applicants with higher yearly salaries are frequently given personal loans at lower interest rates. This is because they are thought to have a stronger ability to repay the loan. They are also less likely to fail on repayments. Employment Information: Borrowers who work for reputable companies have steady jobs. They have a history of employment. So they may be given personal loans at reduced interest rates. The applicant’s kind of employment—whether they are salaried or self-employed—often has an impact on the LIC Personal Loan Interest Rate that the lender would charge. Connection with LIC: Maintaining a positive relationship with LIC by paying your insurance premiums on time, among other things, may enable you to get a personal loan at a cheaper interest rate. Expected Loan Amount and Loan Term: Typically, higher interest rates and longer loan terms go hand in hand with bigger loan amounts. How do I apply for a personal loan from LIC? Online and offline applications are accepted for LIC personal loans. Before that, it’s crucial to confirm whether or not you qualify for a LIC policy loan. To determine your eligibility, follow the procedures below: Visit the LIC e-service website to log into your LIC account. Print and complete Form 5196. Send your policy agent Form 5196. For further action, the policy agent must follow up with the relevant LIC office. Final Words Financial emergencies cannot be used to describe plans to purchase a home or automobile. This is because such decisions need months of planning. Medical expenditures, impromptu wedding preparations, and unexpected educational opportunities are examples of expenses that may qualify as emergencies. LIC can help you in these kinds of situations by giving you a personal loan. Visit Piramal Finance (www.piramalfinance.com) for more information. It is an Indian financial services company that is making its foray into retail lending. This includes personal loans, business loans, housing loans, and other consumer-focused finance products. [B-02] FAQs What is the maximum sum that may be used in connection with the LIC policy? The maximum amount that may be borrowed against a LIC policy is 90% of the surrender value of the policy. For paid-up policies, which are those for which premiums are no longer being paid, the most you can borrow is 85% of the surrender value. How soon can the loan be paid back? The loan must be repaid in full within six months. Even if the applicant wants to pay off the loan early, there will be a six-month interest charge. Is it possible to obtain many loans on one LIC policy? Yes, as long as LIC’s terms and conditions have been met and the first loan has not yet been paid back. What happens if the insurance runs out or is used during the time it takes to pay back the loan? If the insurance runs out or a claim is made during the time the debt is being paid back, the interest amount must be paid until the maturity date. How will interest be determined if the policyholder passes away? Interest will be computed up until the policyholder’s death date if they die away.
08-11-2023
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Personal Loan

Plan Your Repayment of Personal Loan Better with an Online EMI Calculator

Personal loans are the most common way to get money instantly. People get these loans when they have a sudden need for cash. Having a plan to repay the personal loan is also essential. Calculating the monthly payment on a personal loan assists you keep track of your money. With the help of an EMI calculator, you can get an idea of how much a personal loan might cost. This tool helps you pay back your personal loan on time. With an EMI calculator for a personal loan, you can immediately determine and plan how much you have to pay each month. [B-01] How Does an EMI Calculator Work? You can determine your monthly payment with the use of a tool called an EMI calculator. This tool may help you define loan terms and principal amounts. Make your payment plan less stressful using an EMI calculator for personal loans. Using an EMI calculator for a personal loan may prevent any calculation mistakes. The equation below is to calculate EMI for personal loans: EMI = [P R (1+R)N ] divided by [(1+R)N-1] The terms represented are: P refers to the amount of the loan (Principal) R refers to the interest rate of the personal loan N refers to the tenor period of the personal loan Example of Calculating EMI for a Personal Loan Suppose you want to take a loan of Rs.15,00,000 at an interest rate of 10.0% and repay it over 60 months. In that case, you only need to input these values into the online calculator. Here is the result: Loan EMI = Rs. 31,871 Total Interest Payable= Rs. 4,12,234 Total Payment (Principal + Interest)= Rs. 19,12,234 The EMI calculator can calculate the monthly instalment you must pay back on a personal loan. This tool considers the values of the principal amount, the interest rate, and the loan span. Knowing the interest rate your lender offers on a personal loan is better. With this, you can change the values for the principal and the term to make the EMIs fit your ability to pay. You can plan how you will pay back your loan this way. Plan Your Repayment of Personal Loan with EMI Calculator When you figure out your personal loan’s monthly payment, you’ll know exactly how much you have to pay each month. Your monthly payment on your loan will be more than enough to cover all your regular monthly expenses for the entire loan. This EMI calculator for a personal loan assists with money management. If you already have plans every month, it might be better for you to sign a longer loan. But keep in mind that the net interest payment will be more if the duration is longer. The total cost of borrowing is the same for each payment plan. So, when the time it takes to pay back the loan is stretched out, the EMIs go down. By shortening the loan length, the EMIs would go up, but the sum of interest paid in total would go down. Tips for Planning Personal Loan Repayment Put your EMI payments in a separate account to keep track of them. Always keep a calendar of due dates up to date. Give your choice of duration a lot of thought. Choose the lender with the most trust. How to Use an EMI Calculator for Personal Loan? The calculator for EMI is easy to understand, quick to use, and gives accurate results. Using this calculator, you can know how much you will have to pay for an unsecured loan each month. To use the EMI calculator, put the following information in the correct fields: Amount of loan you want to take Loan duration (months or years) The interest rate (percentage) The EMI calculators offered by several websites each have their own features. Some of these EMI calculators for personal loans have graphs and charts to help users understand and figure out the details of their loans. You have to enter the values into the calculator’s sections. The calculator will work when you press the Enter key and show the results. You can reuse the online EMI calculator for personal loans as often as you want to change how much you pay each month. Some EMI calculators also have pie charts, which make it easy to see how the different parts of the total payment fit together. Entire payment = entire principal minus complete interest due (It shows how much interest has been paid compared to the loan’s principal). There is also a table in the online EMI calculator output that shows the schedule of payments. The table also shows how much is paid each month and each year. You can see how long the loan will take to pay off, as well as a chart that shows how the annual payments are made up of RI and principal. A lump sum of each payment goes toward paying the interest during the first year of paying back the loan. Over time, charges cancel out more and more of the original debt. Perks of EMI Calculator for a Personal loan Repayment Plan Manually figuring out EMI payments each month takes a lot of work. But in just a few seconds, you can get precise answers with the help of an EMI calculator for a personal loan Here are some good things about using an EMI calculator for a personal loan: It saves time and gives accurate results When you do math by hand, there is a chance that you will make a mistake, which will lead to the wrong answer. You can be sure that the results will be accurate and precise, and you will get them in a matter of seconds. User-friendly and simple to use These EMI calculators are the best in terms of how it works and how it is demonstrated. Because there aren’t any hard-to-understand fields, anyone who knows the basics of computers can type in the information and get the results. Easy comparison of loans EMIs depend on the interest rate, the amount of the loan, and how long the loan is for. The amount of the loan and the interest rate determine how much you have to pay each month. You can maintain a good credit score With the help of an EMI calculator for an unsecured loan, you can figure out the exact sum of the EMI payments every month. Because of this, you’re more likely to be able to make payments on time, safeguarding your credit score. [B-02] Conclusion With the help of the online EMI calculator, you can figure out the right loan sum and term by putting in information about your income and expenditure each month. For easy and affordable repayments, you can adjust the principal amount and tenure of the loan. And after learning how an EMI calculator works, you may use one to choose a loan that meets your needs. Take the interest rate and other fees into account when applying for a personal loan. To learn more about EMI calculators and repayment plans for personal loans, check Piramal Finance.
08-11-2023
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What Is Third Party Insurance For Two Wheelers?

The most fundamental kind of two-wheeler insurance is Third-Party two-wheeler Insurance. It covers any losses and damages your two-wheeler could incur to a third party’s person or property. Consider running into a person while riding your bike casually. Your bike is ruined and you are injured as well. The second party also suffers harm and requests payment for his losses. There is no way out, and there are serious financial and legal repercussions. Your third-party two-wheeler insurance will be useful in this situation. In certain circumstances, the injured party’s claims can be covered, by your third-party two-wheeler insurance policy. This insurance will ease your financial strain and, in turn, your worry! [B-01] Features/ benefits of Third Party Insurance for Two Wheelers The following are some benefits of having third-party motorbike insurance: Easy Paperwork: The documentation procedure for this plan is simple. It only requires a few formalities to be fulfilled. Because the motorcycle is not covered by this plan, fewer inspections and checks are necessary. Additionally, you may buy this package whenever it is convenient for you. Simple Online Process: Nowadays, almost all insurance firms provide their online services, allowing you to easily buy an insurance policy in less time. An insurance plan may be purchased much simpler and more practically online. Third-party insurance for the two-wheelers plan covers your financial obligations against any damage or loss, caused to any third-party asset or person. Mandated through law: By the Indian Motor Tariff Act, you are required to have bike insurance. At the very least with third-party insurance for two-wheelers. This will guarantee that you are abiding by the law. No Stress: Any time an accident might happen and it causes emotional distress. Especially if it results in financial burdens for others. As a result, knowing that your financial obligations to a third party will be met by your insurance company relieves a great deal of stress. What all is covered under Third Party Insurance for Two Wheelers The third-party/liability-only insurance coverage pays up to Rs. 1 lakh for any third-party property damage brought on by the policyholder’s two-wheeler. A legal court determines the compensation amount in cases of bodily harm or death to third parties. The insurance offers 100% reimbursement in the event of loss of both limbs, both eyesight, permanent handicap, or death of a third person. In contrast, the insurer offers 50% reimbursement in cases of partial impairments such as physical injuries, the loss of one leg, or the loss of one eye. By paying an extra fee for personal accident insurance, one can get coverage for the pillion rider. A mandated Rs. 15 lakh Personal Accident (PA) policy for the driver of the insured two-wheeler How Does the Compensation for Third-Party Bike Insurance Plan Work? The benefits provided to an individual under a 3rd bike insurance policy function as follows: The nominee may seek 100% of the money promised as compensation in the case of the insured person's death. Yet, in the case of an accident involving a bodily part, the proportion covered may differ from insurance provider to insurance provider. In the event of loss of one eye or one leg, 50% of the insured amount is paid. Rs. 1 lakh in compensation is provided if the property is damaged. To get the guaranteed payment, the owner-driver or driver must operate the insured vehicle while possessing a valid License. How to apply for Third Party Insurance for Two Wheelers By following the instructions listed below, you may quickly get third-party bike insurance : Step 1: Go to the Piramal finance website and select the Third-party insurance option for two-wheelers. Step 2: In the “Get Your Quote” column, enter your bike's registration number. If you do not know your bike’s serial number, you may still input information about it. Such as its brand, model, version, registration year, RTO location, etc. Step 3: To receive prices for bike insurance policies, provide your name and cellphone number. Step 4: Select a bike insurance policy quotation based on your requirements and price range. Step 5: Pay for the bike insurance plan you’ve decided on and obtain policy papers through the mail. How Do I Make a Bike Third-Party Insurance Claim? Two Wheeler third-party insurance claims are handled directly. Both the victim and the insurer are eligible to file claims. The claim processes for both sides are listed below: If You Caused the Damage, How to File a Third-Party Bike Insurance Claim Take detailed photographs of the accident-related damage. Note all the necessary information about the damaged car or vehicles. Write down the contact information of any accident witnesses you come across. Tell your insurance company about the incident and follow their instructions. File a First Information Report (FIR) with the local police department. Use legal counsel to submit a Motor Accident Claims Tribunal Court claim. Join the court sessions and explain what happened. And present the necessary paperwork and information. Submit the court’s ruling with the insurance company to obtain payment for the costs of the property damage and bodily injury claims. Final Words According to the Indian Motors Tariff of 2002, every owner of a two-wheeler must obtain at least third-party insurance. The most fundamental insurance protection is a third-party two-wheeler insurance plan. Online third-party insurance coverage purchases are safe and simple. Piramal Finance is an Indian financial services company that is making its foray into retail lending which includes personal loans, business loans, housing loans, and other consumer-focused finance products. [B-02] FAQs Which bicycle insurance provider offers third-party coverage? There is third-party insurance for two-wheeler businesses. It is offered by all General Insurance firms. Can I change my bike’s third-party insurance to zero depreciation insurance? Nope, a third-party bike insurance policy cannot be changed to a zero-depreciation policy. A 0% depreciation add-on is available with both a solo possess bike insurance plan. And a comprehensive bike insurance plan, along with all other add-ons.
08-11-2023
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Home Loan

Everything You Need To Know About Loan Against Property Interest Rates And Charges In India

A loan against property (LAP) is a secured loan that allows you to use your property as collateral to avail of a loan. The loan amount is generally a certain percentage of the property’s market value and can be used for various purposes such as business expansion, meeting personal expenses, etc. Here we will explore all of these factors in detail so that you can make an informed decision about availing of a low property loan interest rate. [B-01] What is a Loan against Property in India? A loan against property in India is a secured loan that allows owners to borrow against the value of their property. The loan can be used for various purposes, including home improvement, business expansion, and medical expenses. Indian Property Loan Interest Rates In India, loan against property interest rate can be between8.00% p.a. to 25% p.a. The processing fee includes Rs. 2,500 as a login fee and Rs. 12,500 for other charges. Then, you must pay only Rs. 10,000 post-approval. At the same time, the prepayment penalty ranges from 2.00% to 4.00% of the principal outstanding.The loan against property interest rate is higher than a home loan but lower than a personal loan. The tenure for a loan against property is also shorter, ranging from 5 to 15 years.Lenders levy charges such as the processing fee and prepayment penalty to offset their risks. These charges can vary depending on the lender. They should be considered when comparing property loan interest rates. Property Loan Eligibility in India To be eligible for a low property loan interest rate in India, you must:Be at least 21 years old.Have a regular source of income.Be an Indian resident.Have owned the property for at least 2 years.Additionally, the property must be:Located in India.Free from any legal disputes or claims. Indian Property Loan Benefits There are numerous benefits of taking out a property loan in India:Access to large sums of money: A loan against property can give you access to large sums. This money can be used for various purposes, such as business expansion, investment opportunities, etc.Flexible repayment options: Repayment terms for loans against property are generally very flexible. This gives borrowers the much-needed breathing space to repay their debts comfortably.Attractive interest rates: A loan against property interest rate is usually lower than a personal loan and credit card interest rates. This makes making it a more attractive proposition for borrowers.Tax benefits: Interest paid on a loan against property is eligible for tax deductions under certain conditions. Documents Required When you apply for a loan against property, you must submit several documents to the lender. These documents are required to verify your identity, income, and ownership of the property you use as collateral for the loan. The following is a list of documents that you will need to submit:– Proof of identity: This can be in the form of a passport, driver’s license, or PAN card.– Proof of income: The lender will need to see your latest income tax return or bank statements to assess repayment capacity.– Property ownership documents: You must submit copies of the title deed, property tax receipt, and sale agreement (if applicable).– Loan application form: This form must be filled out and submitted along with all other required documentation. Property Loan Duration When you take out a loan against your property, one of the key factors determining the loan’s overall cost is the loan’s duration. The longer the loan period, the more mortgage loan interest you will pay over the life of the loan. As such, it is essential to carefully consider how long you need to borrow against your property before committing to a loan.There are a few things that you need to take into account when determining the duration of your loan against a property. Interest rate. The higher the interest rate, the shorter the loan duration will be. Amount of money you are borrowing. The more money you borrow, the longer the loan duration will be. Financial situation. If you have a lot of other debts, you may want to shorter loan duration so that you can pay off your debt faster. Steps To Apply To apply for a mortgage loan interest against property, there are a few steps that you need to follow:#1. Check Your Eligibility: The first thing that you need to do is check your eligibility for the loan. You can do this by using an online eligibility calculator.#2. Compare Rates and Charges: Once you know that you are eligible for the loan, you need to compare different lenders’ interest rates and charges. This will help you choose the best deal for yourself.#3. Apply for the Loan: The next step is to apply online or offline. If you apply online, you must fill out an application form and submit it along with supporting papers.#4. Get Approval: Once your application is submitted, the lender will review it and decide whether or not to approve your loan. If everything is in order, they will send you a letter of sanction detailing the terms and conditions of the loan.#5. Repayment: The last step is to repay the loan per the agreed-upon terms. This includes making timely payments every month until the loan is fully repaid. [B-02] Conclusion This was a comprehensive overview of everything you need about a loan against property interest rate and charges in India. Taking out a mortgage loan interest is a big decision. So, you must be fully informed before making any decisions. If you have any further questions, visit Piramal Finance, where you can find similar articles on property loan interest rate and other charges in India. You can also explore their LAP offers that give you high loan amounts at low-interest rates.
08-11-2023
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Business Loan

Understanding the Pros and Cons of an Unsecured Business Loan

Many businesses require financial support. Even if a company is profitable, there can be a need for financial assistance. That is when loans are helpful. Loans are required by businesses for expansion, making real estate payments, and investing in supplies. Business owners take a secured loan. These loans are taken against collateral. Such collaterals remain tied to that business loan. If the business owner cannot pay, i.e., he becomes a defaulter, they need to hand over the particular collateral to the lender. An unsecured business loan is another option that businesses have. This type of loan does not require collateral. There are many unsecured loans, e.g., student loans and personal loans. Here, we will discuss the best unsecured business loans. [B-01] What Are the Pros and Cons of an Unsecured Business Loan? If you are applying for an unsecured business loan, you should know its pros and cons. At the end of the day, it is a loan, and it is best to research all its features in detail. This will make it easier for a person to decide whether or not they want to go for an unsecured business loan. Below is a list of the pros and cons of an unsecured business loan. Pros: Short and Simple Application Process: The application process for a business loan can be pretty extensive. Lenders want to ensure they have accurate information about the borrower. They do not want a defaulter. Hence, lenders carefully check every single piece of information. It is the same for both unsecured and secured loans, and also for other types of loans. When it is a secured loan, collateral must be provided, and the lender must thoroughly check the collateral. It is essential to determine the actual cost of the object. The entire process can be pretty time-consuming. In an unsecured business loan, this time is saved. The lender gets ample time to check other factors such as the borrower’s monthly salary, credit score, and time spent in business. Since the time needed to process unsecured loans is comparatively less, the amount gets disbursed quickly. At the time, money gets transferred to the person’s account within 24 hours of applying. Most businesses prefer a business loan that is processed quickly. No Need for Collateral: The biggest problem with providing collateral is that many small businesses don’t have one. If it is a small startup, then they will not have any collateral that they can offer against the loan. This makes the business ineligible for any secured loans. But when you opt for an unsecured business loan, there is no need for collateral. Many other considerations get reviewed instead, i.e., market opportunity and business plan. Hence, small startups and other businesses with no collateral mostly opt for unsecured loans. Since they usually qualify for unsecured loans, small businesses are advised to go for the best unsecured business loans. There is a need for a personal guarantee to approve an unsecured business loan. Since no collateral is provided, the lender needs some legal assurance to be able to give the loan. This means that if a person cannot repay, then the lender will have all the legal rights to pursue the personal guarantor of the borrower. No Risk of Losing Collateral: For a secured loan, there is a need for a mortgage. For instance, if a person has borrowed a mortgage loan by keeping their office property as collateral, in the event of a default, the lender would have all legal control over the property. It is so because the particular property has been kept as collateral. In the case of an unsecured business loan, the lenders can go to court to get an order to seize the property of the loan defaulter. This property can be used to recoup any loss in the loan value. But the court might discharge this loan if the business owner files for bankruptcy. But a secured loan is mainly discharged by something other than bankruptcy or other means. Most of the time, the collateral is awarded to the lender. Cons: Higher Rates of Interest: For lenders, an unsecured business loan is quite risky. In the event of a default, lenders have minimal chances of recouping their losses. Since recovery is difficult, the lender charges a higher interest rate. If a person is unwilling to pay the higher rate, they should opt for other business loans. Difficult Qualification Process: Without any collateral, lenders look at other factors in your business. These factors include: The credit score of your business Annual revenue. Financial statements. Business plans. Cash flow projections. Lenders try to minimize their risk at all costs. Hence, the qualification criteria for an unsecured business loan are lengthy and very specific. Lower Loan Value: Due to the risks involved, many lenders only approve a small sum of money. To get the maximum amount, one must perform due diligence to find the best unsecured business loan. If you are looking for a short-term investment, an unsecured business loan is the best option. However, unsecured loans will not be able to finance large investments such as: Purchasing equipment Expansion project Placing huge inventory orders [B-02] Conclusion Before you apply for a business loan, be well aware of your financial situation. An unsecured business loan has lower risk and can be processed quickly. But one must be thorough research before opting for anything if one wants the best unsecured business loan. If you are looking for an affordable business loan, then Piramal Finance is a good financing option for buyers.
08-11-2023
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Personal Loan

Credit Card Loan vs Personal Loan – Comparison and Benefits

Personal and credit card loans both provide a means of borrowing money at many of the same standard credit terms. Loan and credit card contracts include funds given by a lender at a set interest rate. Faulting on either type of credit can harm your credit score, making it hard to obtain loans in the future. In addition to the similarities between personal loans and credit card loans, there are some important differences. The core distinction between credit card loans and personal loans is the type of credit involved. [B-01] Key Differences between Personal Loans And Credit Card Loans Below are some of the aspects in which both types of loans differ from each other: SourcePersonal loans are available from any financial institution, but credit card loans can only be obtained from a credit card company. Loan AmountPersonal loans allow borrowers to borrow a large sum of money. Credit card loans offer a limited credit limit. As a result, the loan amount is less than that of personal loans. Approval and Disbursal TimeApproval and fund disbursement times for personal loans are longer. Credit cards are immediately approved, and the loan amount can be used right away. Interest RatesPersonal loans are the most expensive type of loan. But you can get a personal loan at low interest rates if you have a good credit history and a good, steady income. On the other hand, most credit card interest rates are variable and fluctuate. Your credit rating may have an impact on the credit rate you will be charged. Benefits of Personal Loans Flexibility and VersatilityBecause no restrictions are placed on the end-use, a personal loan can be used for almost anything, including a combination of personal and professional costs. You can use it for a big purchase, urgent medical bills, or business capital. Loan terms for personal loans are also very flexible. They can range from one to ten years. So, you are free to choose a tenure based on your repayment capacity. Longer Loan Terms With personal loans, you can choose a loan tenure of up to 10 years. This will get you an affordable EMI and enough time for repayment. Longer loan terms also help reduce the cost of borrowing money. No Collateral RequirementYou do not need security to get an unsecured personal loan. This means you do not need to put up any assets as collateral to guarantee repayment of the funds. If you are unable to repay the loan by the end of your loan tenure, you will still face serious outcomes. But unlike loans with collaterals, you will not lose your assets. Affordable Interest RatesYou can find yourself a personal loan with competitive interest rates. With this loan, you can enjoy low EMIs. The interest rate is usually fixed. So, your EMIs are also fixed for the duration of the loan, and you do not have to worry about varying interest rates. Quick DisbursalA personal loan only takes 24 to 72 hours to be sanctioned. So, it is a good financial bond for meeting urgent cash or payment needs. To make personal loans work for you, you must meet the eligibility criteria and maintain a good credit score. Benefits Of A Credit Card Loan Credit ConstructionIf you have low credit and are trying to improve it, getting a credit card will help. This helps because credit card companies report your payment activity to credit bureaus. Even if you must pay a deposit to obtain a secured credit card, doing so can help you build your credit history. This only works if you use the card responsibly and avoid getting into credit card debt. InsuranceMost credit cards automatically include several consumer protection plans, such as rental car insurance and product warranties that can exceed the manufacturer’s warranty. Many people are unaware of these benefits. But you should do your research and claim these extras. SafetyIt makes it easier to avoid fraud losses. Legitimate expenses for which you have made online payments or mailed checks may bounce, resulting in insufficient funds fees and a negative impact on your credit. Even if it was not your fault, late or missed payments can hurt your credit score. Recordkeeping A credit card keeps a detailed record of your spending. Some credit cards send year-end summaries, which can be a valuable resource when it comes time to file your taxes. This can also help you understand your spending habits and manage your finances. Cash Advances Often, credit cards allow you to obtain funds during a cash crisis. But these cash advances have higher interest rates. So, you should have a realistic plan in place to repay those advances. [B-02] Conclusion Banks and non-banking financial firms provide both personal and credit card loans. These credits have specific interest rates, are repaid in EMIs, have default penalties, and have other charges. Mismanagement of the two can have an impact on one’s credit score and financial stability. Credit card loans and personal loans are both excellent tools for getting funds. The decision between the two is based on your needs. If you do not qualify for a credit card, an instant personal loan may be the next best option. If you do qualify for a credit card, you must compare the interest rates on both loan types before deciding on one. You can visit Piramal Finance for all your financial needs. Here, you will find detailed and unbiased articles on personal finance, housing finance, insurance, and tax-related topics. You can also check out their products and services which are sure to help you out of a fiscal crisis.
08-11-2023
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