More articles for you

Your one stop place for everything related to finance and lending

Know More

What Are Bank Bonds and How Do They Work?

Bonds are a type of debt instrument that promises to pay interest based on the value of your investment. They’re issued by corporations and governments, so they can be used as a way to raise capital. Bonds are traded on the secondary market (the place where bonds are bought and sold) or through regular brokerages like Fidelity or E-Trade. You can also buy them directly from companies that issue them, such as municipal governments or universities that want to fund projects with their own money. Bank bonds are one of the most important financial products that you can invest in. They’re also one of the most misunderstood groups. That’s why we’ve put together this guide to bank bonds and how they work so that you can feel confident about investing in them. [B-01] Bank Bonds Bank bonds are a type of debt security issued by banks and other financial institutions. They can be used to raise funds for the bank, which may be necessary if a company’s balance sheet looks weak or it needs more money. Banks also use bank bonds to manage their exposure to risk in certain markets, such as currencies and interest rates. Bankers will often sell these securities on the open market because they offer higher yields than central bank-issued treasuries. Although there are some restrictions on when you can sell your bond—for example, you cannot do so until maturity—you don’t need any special permits or licenses to do so either! Banks will also sell their bonds to other banks, pension funds, and insurance companies. In addition to helping the bank raise capital, these sales help it manage its risk exposure in certain markets. Typical Features Bank bonds are a type of debt security that banks issue to investors. These bonds can be issued for a specific period, at a fixed interest rate and in limited quantities. Bank bonds are typically issued by banks, but some insurance companies and other financial institutions may also issue them. There are many types of bank bonds: Treasury securities (T-bills), agency securities (AIGs), mortgage-backed securities (MBSs), and asset-backed commercial paper (ABCP). A bank bond is a debt security that a bank issues to investors. The bonds are secured by specific assets of the issuer, such as loans or mortgages. Bank Bonds for the Consumer Bank bonds are a safe and convenient way to save money. They can be used to pay off debts or for other things like vacations and emergencies. You don’t need an account at the bank to buy bank bonds; you just have to have a credit card with them. The best part about this is that you don’t even have to make any payments on your account until the maturity date of your bond, which means that if something happens during that period (like losing jobs), then it won’t affect how much money will come out of your account when it matures. Opening an account doesn’t take long at all—you might even be able to do so online! All banks offer same-day openings, where customers can get their accounts set up within hours instead of days later, as most other financial institutions require of clients who want loans or lines of credit from them. While it is possible to open an account on the same day you want to buy a bank bond, there are a few things that need to be done first. For example, if you don’t have any type of credit history with banks or other financial institutions, you will need some sort of documentation that proves that you are who you say you are and can afford to make payments on your account. Understanding how bank bonds work can help consumers and businesses alike. If you’re interested in putting your money to work, bank bonds can be a great way to do so. They let you invest in the stock market without having to worry about fluctuating interest rates or the risk of inflation. Bank bonds are very similar to stocks because they’re both investments that allow investors to make money on shares of companies’ profits over time. But unlike stocks, which are issued by publicly traded companies with no connection between them (and therefore little chance at all of ever seeing their value go up), bank bonds are issued by banks with direct ties between themselves and their issuers—which means there is always some degree of quality assurance built into these assets’ values! What is the main difference between owning a share of stock and owning an entire company? When someone buys 10 shares of Apple Inc., they don’t own any part whatsoever—they just buy pieces from the company’s board members, who own them all together. However, if someone purchases 100 new shares of Bank A because he or she believes it is on the rise, the bank can use the funds to open a branch in another town, expand its security protocols, or purchase more of its competitors’ shares. And as that bank becomes more profitable over time (which is likely), its share value will also increase! [B-02] Conclusion If you are interested in learning more about bank bonds, we hope that this guide has provided some insight into their benefits and applications. It may seem like a complicated topic at first glance, but we promise it’s not! Bank bonds are a great way for consumers and businesses alike to get access to credit when they need it most. And with so many different types available on the market today, there’s sure to be one that will suit your needs perfectly. Whether you want something safe or risky? Whether you want fixed-rate payments or variable ones? We can help guide you through each step of the process with our experience helping many people get started investing responsibly (and legally) through banks’ online platforms Do visit us at Piramal Finance, a leading platform where you can get information about all financial products.

08-11-2023

Personal Loan

How can you use a personal loan amount for home improvement?

Personal loans are available to borrowers for any number of home-related projects, including but not limited to new flooring, new paint, new tiles, an upgrade, a renovation, an improvement, an extension, etc. Personal loans for home renovations can be used for any number of home-related projects. Numerous financial organisations provide customers with the option to obtain loans that are tailored exclusively for home improvements. [B-01] What is a personal loan? Personal loans are forms of unsecured borrowing that financial institutions give to people based on things like their employment history, payment history, income, line of work, and credit score. A personal loan, which is sometimes called a “consumer loan,” is a flexible way to borrow money that can be used for almost anything that has an immediate and important effect on your finances. One of the best things about getting a personal loan to pay for home improvements is that the monthly payments, or EMIs, are easy to handle. The length of the contract can be anywhere between 12 and 60 months. The monthly payment will be based on things like the interest rate, the costs of setting up the loan, and the total amount of the loan. If the borrower pays back the loan in full before the end of the agreed-upon term, no more interest or fees will be charged. Why choose a personal loan for home renovations? There are many ways to pay for the home improvement project you want to do. But if you need money quickly, your best bet is to get a personal loan instead of using a credit card or some other form of credit. Personal loans give you a level of stability that you can’t get with a credit card. Most credit cards have very high-interest rates, while the rate of interest on personal loans is set from the start. Even if you choose to pay in instalments, the amount of the instalments will not change while you are paying them back. What are the benefits of a personal loan? Digitalised Since the whole transaction takes place online, there is no need for any paperwork or for the people involved to meet in person. With the rise of digital technology, everything has become much more efficient and easy to use. Flexible TenureYou can decide how long you will have to pay it back. There are a lot of different ways to pay back the loan. It could take anywhere from six months to sixty months. Multi-purposeA personal loan can be used to pay for a wide range of things, such as a wedding, a vacation, new furniture for your home, unexpected medical bills, and many more. Zero CollateralBecause personal loans are considered unsecured loans, it is not necessary to put up any collateral to obtain one of these loans. Minimum DocumentationMost of the time, you only need a few pieces of documentation to apply for a personal loan. To get a personal loan, you need things like a PAN card, an AADHAR card, and bank statements. Instant DisbursalIf you are granted a loan, the funds could be sent into your bank account anywhere from 24 to 48 hours after approval. How to apply for a personal loan for home renovation? Here are the eligibility criteria that need to be followed for a personal loan. You should be an Indian citizen. You should be between the ages of 21 and 60. You should have a monthly income of at least INR 20,000. Your credit score should be more than 750. A minimum of one year of work experience is required. Before applying for a personal loan, there are a few things to consider about. Valid DocumentsFor KYC Verification, you need to have all of your documents, like your AADHAR Card, PAN Card, and bank account information, ready. If you don’t send the right paperwork, your application will be turned down. Criteria for eligibilityBefore you can get the loan, you must first meet the requirements listed above. The ratio of debt to incomeThe debt-to-income ratio is the number of your monthly debts as a share of your monthly gross income. It helps show that the borrower has enough money to pay back the new debt. Rates of interestTo make sure you get a loan with low-interest rates, you should look into the interest rates offered by different lenders. Score for creditFor your loan to be approved right away, your credit score needs to be at least 750. Also, you are more likely to get a loan with a low-interest rate if you have a good credit score. Income Every MonthSince there is no collateral for a personal loan, the lender will expect you to have a stable job with a fixed income of at least INR 20,000. Once you show the lender that you have a stable income, the loan is approved right away. What are the various documents required? For salaried workers, you’ll need the following documents. Proof of Identity: AADHAR Card, PAN Card, Driver’s License, or Passport Proof of Address: Passport, electricity bill, water bill Proof of Income: Bank statement for the past six months (salaried) Work Experience Employment: Certificate for 1 year experience For self-employed people, proof of income is needed as: Bank statement for the past 3 months Balance sheet and profit and loss statements audited by CA for the past 3 years. Salary slips for 3 months Income Tax Returns for the last 3 years [B-02] Final Thoughts When you are short on time and need cash quickly, personal loans are the best way to pay for home renovations. If you want to apply for a personal loan without hurting your current financial situation, you need to keep the above things in mind. If you don’t know where to start or if you have questions about the procedure, you should consult a financial professional like Piramal Finance to find loan options that are tailored to your specific need.

08-11-2023

Home Loan

Top Benefits You Need to Know of Taking a Joint Home Loan

A home is your lifelong abode, a place where you spend a lot of time with your loved ones and make memories for a lifetime. Buying a home is one of the most important decisions in one’s life; hence, you want to ensure everything goes right. In such a case, taking out a home loan can prove to be a wise decision. A home loan is a form of secured loan that is taken to buy a property by offering it as collateral. But you must realize that any loan is a liability. The principal amount borrowed needs to be paid back on time, along with the house loan interest rate, or it may lead to the liquidation of your assets. Buying a home is a huge investment, and one might not have enough funds to make the payment all at once. If you have a co-owner on the property, you may opt for a joint home loan for additional benefits. [B-01] What is a Joint Home Loan? A joint home loan is a type of housing loan that can be taken out by more than one individual and repaid in a manner that makes both borrowers equally responsible for the financial obligation. The co-applicants to the mutual home loan could include family members such as siblings, parents, spouses, and/or children. A joint home loan offers many benefits, like shared responsibility for the repayment of the loan amount, eligibility to get a higher sanctioned loan amount, a lower house loan interest rate, and many tax benefits. The top 5 benefits of taking a mutual home loan in India are listed below: Top 5 Benefits of Taking a Joint Home Loan Eligibility for a Higher Loan Amount: The primary advantage of a joint house loan is that you have a chance to receive an increased sanctioned loan amount. The lender will now consider two incomes rather than one when looking at your application. Buying a home is a once-in-a-lifetime decision, and you would not want to compromise on it due to lack of money. Because both people applying for a loan will be eligible for tax breaks, this can also help with taxes on income from joint home loans. Low Interest Rate: To take advantage of low house loan interest rates, the person borrowing the money should think about adding their mother or spouse as co-applicants on a joint home loan application and as joint owners of a property. Women borrowers have an added advantage in India because they can avail loans at a lower cost of interest. It generally ranges from 10 to 25 basis points less than the standard home loan rate for male borrowers. To benefit from this, women borrowers need to be the only owner or joint-owner of the house and be a co-applicant or applicant on the application for a home loan. Higher Tax Benefits: There are numerous tax advantages that you can claim when you apply for a joint home loan. Section 80C of the Income Tax Act enables the couple to get a tax deduction of as much as INR 1.50 lakh from the principal amount. Section 24 of the Income Tax Act permits the borrower to claim a tax deduction of up to INR 2 lacs for the interest payment to repay the home loan. An individual taxpayer can claim the benefits of the tax deduction for a joint home loan. They are entitled to benefits of INR 3 lacs under Section 80C and INR 4 lakhs under Section 24 as a couple. It’s an excellent way to save money while repaying the loan on a regular basis. Note that the tax advantages in Section 80C can not be applied to a construction-related residential property. Ease of Repayment: The principal amount you borrow for a home loan should be paid back along with interest. The added advantage of taking a joint home loan is that the EMIs can be divided between the applicants. You can make the payment either in one lump sum or via various methods, such as electronic clearinghouse or cheque. However, repaying a joint loan is the responsibility of both applicants. It is among the most important advantages of mutual home loans. Special Rates for Women Co-Applicants: Having a woman as your joint home loan partner can prove to have many advantages. You can benefit from lower interest rates and a lesser percentage of stamp duty. Most banks and financial institutions provide female co-applicants at a discounted rate, which is less than the general house loan interest rate. Furthermore, the government has stated that it will ensure that female lenders pay less stamp duty than male applicants. Many states, such as Delhi, UP, and Haryana, provide up to 2% less in stamp duty. It also enhances the benefit of a joint mortgage in terms of income tax. [B-02] Conclusion Now that you have come across all the benefits of taking a joint home loan, we believe that you are equipped with enough knowledge to make an informed decision. Getting a home loan sanctioned can be the first step towards the home of your dreams. So if you are longing to have a place that you can call your own, a joint home loan can be your go-to option. At last, we wish you all the best and hope you make a wise decision. Piramal Finance can help you find the best home loan options and reasonable house loan interest rates that fit your budget.

08-11-2023

Business Loan

Smart Business Loan Tips for Entrepreneurs in India

Starting or growing a business in India often requires more than just a great idea—it takes capital. That’s where business loans come in. For entrepreneurs, especially first-time business owners, getting a loan can be both an opportunity and a challenge. The good news? With the right knowledge and preparation, you can increase your chances of getting approved and make better financial decisions for your venture. Here are some essential business loan tips every entrepreneur in India should know. Have a Clear Business Plan Before applying for a business loan, make sure you have a solid business plan in place. Lenders want to see that your business idea is not just exciting, but also feasible. Your plan should clearly explain: What your business does Target market and competition Revenue model and projected earnings How you plan to use the loan amount Repayment strategy A well-thought-out plan increases lender confidence and shows that you're serious about your business. Check and Maintain a Good Credit Score Your credit score is one of the first things lenders check. A good credit score (typically 700 or above) increases your chances of loan approval and may even get you better interest rates. Here’s how to maintain a healthy credit profile: Pay existing EMIs and credit card bills on time Avoid taking too many loans at once Keep your credit utilization low If your score is low, work on improving it before applying. Understand Your Loan Options There are different types of business loans available in India—term loans, working capital loans, equipment financing, overdraft facilities, and more. Each has its purpose: Term loans are for long-term investments like expansion or buying property Working capital loans help manage daily business expenses Machinery or equipment loans are for purchasing business tools and technology Choose the right loan type based on your specific business needs. Compare Interest Rates and Loan Terms Don't settle for the first offer. Different banks and NBFCs offer different interest rates, repayment tenures, processing fees, and prepayment charges. Take time to compare options to find the best fit. Use online loan comparison tools or consult with financial advisors to understand which lender gives you the best deal for your situation. Organize Your Documents in Advance Incomplete documentation can delay or even reject your loan application. Prepare all required paperwork in advance, such as: PAN card and Aadhaar card Business registration or GST certificate Bank statements (6–12 months) Income tax returns Financial statements (balance sheet, P&L, etc.) Having these documents ready shows professionalism and speeds up the process. Borrow Only What You Need It might be tempting to take a larger loan than required, but remember—you have to repay it with interest. Borrowing more than necessary can strain your cash flow and hurt your business in the long run. Assess your business needs honestly and apply only for the amount you truly need. Evaluate Your Repayment Capacity Before signing the loan agreement, ask yourself: Can my business comfortably repay this loan every month? Use EMI calculators to estimate monthly payments and ensure your expected income can support them. If your cash flow is uncertain, consider loans with flexible repayment options or longer tenures. Maintain a Good Relationship with Your Lender Once you get a loan, stay in touch with your lender. Be transparent if you're facing difficulties. Some lenders offer restructuring or flexible repayment options during tough times. Building trust with your lender can help you in the long term, especially when you seek future funding. Use the Loan Wisely Once the loan is disbursed, use the funds strictly for the purpose mentioned in your application—whether it's buying inventory, upgrading equipment, or expanding operations. Misusing funds can lead to financial trouble and hurt your credibility with lenders. Final Thoughts Getting a business loan is a big step for any entrepreneur. With proper planning, smart borrowing, and disciplined repayment, a loan can fuel your growth and turn your vision into reality. Remember, loans are a financial tool—not a shortcut. Use them wisely, and they can be the foundation for long-term success.

08-11-2023

Education

Ways to Maintain a Good Credit Score

Your credit score is a number that summarizes the information in your credit record. It measures how well you have processed credit in the past and predicts how likely you are to handle it in the future. It indicates your creditworthiness or your ability to repay debt. It is also called a credit rating. [B-01] Indian Credit Scores In India, there are eight credit information companies licensed to operate by the Reserve Bank of India. These are: Credit Information Bureau (India) Limited (CIBIL) Equifax Investment Information and Credit Rating Agency of India (ICRA) Limited Credit Analysis and Research Limited (CARE) Experian India Rating and Research Private Limited Brickwork Ratings India Private Limited Highmark Of these, the most popular credit score information company is CIBIL. A CIBIL credit score is a three-digit number ranging from 300 to 900, with 900 being the highest and best score. Factors That Affect Your Credit Score The three main factors that determine your credit score include the following: Your payment history The amounts you owe The period since your last missed payment Importance of a Credit Score If your CIBIL rating is 750 or more, it is considered to be good. It is essential to have a good credit rating for several reasons, such as: Better loan eligibility: If you want a loan or credit card from a bank or financial institution, it is a yardstick of your creditworthiness. This means that you have the means to repay the proposed loan and will not default on your payments. The higher your score, the better your chances of procuring a loan. Extra benefits: With a high credit rating, you can get additional benefits such as better repayment terms, a shorter loan approval process, and low-interest rates. Higher limits on your credit cards: You can also get a low rate of interest on your credit card and a higher loan amount. A better chance of procuring a visa: A good credit rating gives you a better chance of getting a visa. Asset for personal loans: A high credit rating can be a boon if you need a personal or home loan. How to Maintain Your Credit Score You can maintain a healthy credit score in various ways and thus strengthen your chances of procuring loans or better repayment terms. These are: #1. Make Timely Payments Always pay all your loans and credit card EMIs on time. If you delay these payments, it will hurt your CIBIL score. You can pay on time habitually by linking your payments to an auto-pay mode or setting up reminders. #2. Don’t Exhaust Your Credit Card Limit Be careful not to exhaust your credit card limit. Otherwise, your credit utilization will increase, which will only give you a poor credit rating. Ideally, your credit utilization should not exceed 30% of your total credit limit. You can do this by not overusing your credit card, paying your EMIs by the end of each month, and keeping track of your expenses. On the other hand, if you cannot bear your costs and need more credit, it would help to request that your bank or financial institution increase your credit limit. #3. Check Your Credit Reports Periodically It would help you a lot to check your credit reports from time to time. By doing this, you would be sure that there is no misinformation in the report, which could hurt your ratings. If there is, you can immediately bring it to the attention of the authorities and have it changed. Also, if you need to update your personal information, like your address, the rating company can do this if you inform them. #4. Take the Utmost Care When Closing a Credit Card Also, before you close a credit card that you’ve had for several years, think before you do it. Such an action might affect your credit score. Lenders believe that if you have had a credit card for several years, it provides them with a history of your financial transactions. In such a scenario, it’s better not to do away with your credit card. Instead, reduce the number of transactions you carry out on this card. This will help give you a better credit rating. #5. Don’t Raise Your Credit Limit If you’re in a position where you need an increase in credit, think very seriously about it, as this is an imprudent step. Immediately, it changes your debt-to-equity ratio, and the bank or lender applies interest to your new credit limit. This harms your credit score. #6. Reduce the Number of Credit Cards You Possess Please don’t go overboard with several credit cards because you satisfy their requirements. Each time you apply for a credit card, your credit score takes a hit, particularly at application time; the issuer obtains your credit score from a reliable rating agency. Besides, since credit card debts are unsecured loans, it would not be prudent to have too many cards that could land you in massive debt. #7. Don’t Ask for Credit from Several Rating Agencies Frequently Avoid applying for multiple credits from several rating agencies, as this proves that you cannot manage your finances. Each time you submit a loan application, there will be a credit inquiry. By applying for loans often, lending institutions understand that you cannot manage your finances well, which could lead to rejection. To avoid such a situation, ask for credit only when needed. [B-02] Conclusion Numerous elements of your life significantly benefit from having a good credit score. It can aid job placement, lower interest rates, and loan approval. Thus, understanding how to keep a high credit score is crucial. Fortunately, you can take a few easy steps to ensure that your credit remains good. Using the advice in this article, you can maintain a strong credit score for several years.

08-11-2023

Other

Understanding Indian Commodity Markets and Commodity Trading

A market where goods can be brought and sold is known as a commodity market. Commodities are those goods that are exchanged in any market in the world. Steel, wool, coffee, oil, gold, silver, and other items are all brought and sold in a commodity market. Commodity markets are classified into two types. They are for agricultural products and raw products. There are two types of goods available on the market. One type is a hard commodity. These are items that are used for making goods. Another type is soft commodities. They are primarily for initial consumption. Metals and other minerals fall under “hard things.” Agricultural products are soft products. In this article, the Indian goods market has been discussed in detail. [B-01] What are commodity exchanges? To engage in India’s commodity market, one must know about trading in the exchange of goods. Traders might take up future commodity trading rather than actual delivery of the goods. A futures contract is a commitment to sell or buy a specific commodity at a specific price on a specific date. India’s national commodities exchange is as follows: MCX, i.e., Multi Commodity Exchange of India Ltd. NCDEX, i.e., National Commodities and Derivatives Exchange. ICEX, i.e., Indian Commodity Exchange. NSE, i.e., National Stock Exchange. BSE, i.e., Bombay Stock Exchange. What are the timings for the commodity market in India? Trading goes on throughout the week. But it remains closed on Saturdays and Sundays. It is also closed on days that are declared beforehand by the exchange. The timings for the market are mostly from 9:00 hours to 23:30 hours. What goods are traded in the (MCX) Multi Commodity Exchange of India Ltd? Agricultural: Castor seeds, black pepper, cardamom, crude oil (palm), rubber, cotton, etc. Energy: Crude oil, natural gas, etc. Bullion: Silver, gold, etc. Base Metal: Aluminum, brass, copper, lead, nickel, zinc, etc. What goods are traded in (NCDEX) National Commodities and Derivative Exchange? Pulses and cereals: Maize rabi, maize kharif, wheat, barley, paddy, moong, chana, etc. Soft commodities: sugar Fibres: Guar gum, guar seed, cotton, kappa. Spices: Coriander, turmeric, jeera, and pepper. Oil seed and oil: Soya bean, refined soya oil, castor seed, refined castor oil, mustard seed, mustard oil, cotton seed oil cake, crude palm oil, etc. How is the price fixed in the market? These are quite different from manufactured goods. Commodity trading is quite similar to trading stocks. This type of shared trading ascertains the real price of the goods. The other goals are evaluating the risk of cost and speculating on the risk of cost. The setup for this kind of trading has been there for quite some time now. There are two major exchanges in India. They are the Multi Commodity Exchange of India Ltd. and the National Commodities and Derivatives Exchange. Many exchanges facilitate trading. There are two groups whose actions affect the market rate. They are: Hedgers: These sectors or companies need a sizable number of raw products. They get these products for a reasonable price that is constant. For example, steel is needed by the building industry. Industries can use future commitments as price hedges. This ensures that the need for their steel will be fulfilled at a particular price. This leads to a predictable price pattern, and sectors and manufacturers appreciate this process. This makes planning for the future simple and effective. Speculators– According to the Indian commodities market, speculators do not need any product. These are the people who would be able to make money from a change in the price curve. They mostly trade goods. They buy inexpensive goods and later sell them as the price rises. Like stock trading via the internet, commodity trading has also gained popularity in India. Just like the prices of stock change, the prices of goods also change. There are a few main factors that affect the price of goods. They are: Demand & supply factor: Depending on the behaviour of the traders and the demand and supply curve affects the pricing. A good supply will tend to increase if its demand is higher than its supply, and vice versa. Other factors: There are many such factors, like climate, that tend to affect the price in the commodities market. E.g., the price of woolens, heaters, and other such things would increase only when it was cold outside. Since the demand increases due to an exertional factor, the price also increases for that product. Eco-political factor: The market’s price is greatly impacted by the nation’s economy and politics. E.g., the prices for crude oil get impacted by an economic and political disturbance in one or more Organization of Petroleum Exporting Countries (OPEC). This is because the maximum number of goods are generated by these nations. Speculation: There are times when speculators make their investments depending on whether a goodwill investment will yield a profit or not. The prices of some goods change depending on this. What are the benefits of commodity trading? It protects against crashing the stock market, inflation, and many other black swan events. Facilities of high leverage are provided. Commodities trading lets investors diversify their portfolios. Due to the recent electronic trading, there is transparency. [B-02] Conclusion The commodities market is set up the same as any other market. Many goods can be brought to and sold in these markets. It can be done both physically and digitally. The entire article has discussed in detail what is a commodity market and trading. There are many factors on which the price of goods is fixed. If a person is looking for financial help, then “Piramal Finance” is a good personal loan/financing option for buyers. They also have great blogs that can be read by those who are interested.

08-11-2023

Gold Loan

Understanding Gold Loans and Interest Rates

Obtaining a gold loan can be highly beneficial for someone requiring financial assistance. The interest rate is one of the most important factors to look for when getting a gold loan. The higher the risk, the more interest you pay. The interest charged on a gold loan is known as the gold loan interest rate. The gold loan interest rate for your loan will vary depending on several variables. The purity of the gold you give the borrower and even the state of the market will determine the interest rate. [B-01] How Can One Obtain a Gold Loan? You must follow these procedures to obtain a gold loan: Get your gold to the designated bank or gold lending institution. The purity and weight of the gold will be examined by the lender. You will be informed of the precise amount of the loan once they have calculated the total value of your gold. To obtain a gold loan, you must also provide certain documents. These include your passport, driver’s license, or Aadhaar card. Gold items between 18 and 24 carats can be pledged as collateral or security by borrowers. You can get in touch with any bank or non-banking financial institution for the same. Factors to Consider When Applying for a Gold Loan Below are some factors to keep in mind while applying for a gold loan: Monthly Earnings The criteria for gold loans differ from those for other personal and commercial loans. When you apply for a gold loan, the lender will thoroughly verify your details, including your credit history, job history, and company strategy. There are, however, relatively fewer requirements to qualify for a gold loan. Your monthly salary is one of the primary factors a lender will consider. The higher the salary, the lower the gold loan interest rate that will be charged. It is because the lender is confident you will repay the gold loan on time. Credit Score To determine your credibility, your lender will also look at your credit score. Credit determines how you handle debt repayment. The higher your credit score, the more confident lenders are that you won’t default. Additionally, since you are certain to repay the loan on time, the lender will likely charge you a lower gold loan interest rate. Loan Amount The quality and purity of the gold you pledge will determine how much money you can borrow. Additionally, the value of the loan you receive impacts the gold loan interest rate you pay. An increase in the loan amount leads to a rise in interest rates. The typical loan-to-value ratio for lenders is 75%. In other words, they will only pay you up to 75% of the value of the gold that you provide them. The more you borrow from the lender, the more interest you will have to pay. Gold Loan Interest Rate Based on External Standards The gold loan interest rate you pay will be determined by external standards to which the lender’s interest rate is connected. The lender would promptly raise interest rates when the Reserve Bank of India raised policy rates. However, the interest rates gradually altered after the Reserve Bank of India reduced rates. Lenders were asked by the RBI to base their interest rates on an external benchmark. It could be the RBI’s repo rate or the yield on 10-year government bonds. The interest rates on gold loans will be impacted by that rate. The interest rate charged on a gold loan will fluctuate along with changes to the RBI’s policy rates. How to Choose an Affordable Gold Loan Plan Here are some factors to keep in mind before applying for a gold loan: Carefully Read the Terms and Conditions Banks often raise their interest rates every month as a result of late payments, time duration, or other factors. The sudden increase in interest is likely to result in you paying a high-interest rate. Therefore, you must carefully read the terms and conditions to prevent these situations. Don’t Just Look at the Interest Rate But at the Total Cost of the Loan Avoid being drawn in by the lender’s exclusive gold loan interest rate. Check the fees and interest rate, as well as any other charges. You can also use online calculators to determine the overall cost of the loan over its term. Compare Between Different Lenders Choose a few reputable banks and lenders, then evaluate the gold loan interest rate and choose the best deal. Additionally, several lenders provide an online calculator to compute the gold loan interest rate. How Will Your Repayment Amount Be Affected by Interest Rates on Gold Loans? Your repayment amount will directly depend on interest rates, which apply to all loans. The repayment value will be less if you choose to pay lower interest rates. Unlike other loans, a gold loan offers you two more repayment options in addition to the EMI. These strategies include periodic interest payments and bullet repayment. However, the gold loan interest rate will affect the repayment amount regardless of the method of repayment you select. [B-02] Conclusion Obtaining a gold loan is a simple process. It is one of the quickest loans to be approved since banks use your gold as collateral in the event of a default. Before applying for a gold loan, you should check its interest rate. The main reason most people apply for a gold loan is due to its quick processing times, despite its high interest rate. It is best to avoid rushing into a gold loan with a high rate of interest. The higher the gold loan interest rate, the larger the EMI you will be required to pay. Check out the blog posts and articles on the Piramal Finance website. Business owners and professionals can also find customized loan options there.

08-11-2023

Personal Loan

How To Register For A Loan Statement Or E-Statement With Piramal Finance?

People frequently spend more than their monthly income to survive this fast-paced lifestyle. As a result, loans have become an ideal choice for many. You can take a loan for any reason, whether to pay off credit card debt, renovate the property, or even cover a medical emergency. However, applying for a loan is not the first step to fulfilling your dreams. Repaying it on time is another thing you must ensure. It entails memorising the due date, monthly payment amount, and other data, making it nothing less than a challenging task! But you can effortlessly pay off your loan and keep a close eye on it by downloading your loan statement. Unsure of how to do it? This article will provide a detailed insight into viewing a loan statement and accessing an e-statement. [B-01] What is a loan statement? A loan statement refers to a loan account statement that a lender or financial institution issues to the borrower for an approved loan. It is a thorough overview of your loan repayment over a fiscal year. A loan statement includes various details. The typical information you will find on it includes Original loan holder’s name The full account number Total current loan balance with principal and accrued interest The statement date Monthly payments All in all, a loan statement is nothing less than a snapshot of your loan. It is a practical and handy way to keep track of your loan repayment. Why is a loan statement important? A loan statement is significant to know your loan activities. It is essential for several reasons. For instance, It makes it easier to get a loan because it shows that you’ve already paid back the money you borrowed. You can view the history of all the EMIs you have paid till now. It will appear on your statement if you forget to make payment by the due date. A loan statement serves as evidence of loan repayment. It allows you to keep track of your loan transactions. You can use the loan statement to find out how much money you owe, your next payment due date, whether your interest is variable or fixed, and other information. It gives you complete control over the structure and timing of the payments. You can also view the due date for the subsequent EMI and the amount you need to pay. Your loan statement will also reflect any partial payment you make to repay your loan. It will also show any penalty interest charged if you fail to pay your EMI on time. You can check the terms of the personal loan you have chosen. How to register for loan statements with Piramal Finance? Applicants do not necessarily need to register for their loan statements. You can receive your loan statement online only when your loan account is active and approved. If you are a new applicant, you must ensure your loan has been permitted or confirmed. You have to stay on track with the real-time status to avail yourself of an e-statement for the loan agreement you signed. You can check the latest status by calling customer care. The other way to do the same is via the website. You can follow the given steps to check the status yourself on your device: Visit the official website. Click on the “Customer Services” tab available on the top right side of the site. Select the application status tracker. A new page with a small box will open. Fill in the relevant details it asks for, namely your mobile number. You will receive an OTP (one-time password) shortly at the provided number. Enter the correct OTP and stay updated with your loan status. You will be notified through email when your loan statement is available online. It is generally issued four days after your grace period expires. Once you have logged in to the website and gained loan approval, you can effortlessly access and download your loan statement. How to get an e-statement of a loan from Piramal Finance? A loan statement is available online and offline to ease the process for customers. There are primarily three ways to download it without visiting a bank or financial institution. They are: 1. Using the Official Website You can obtain your loan statement digitally in a short time using a convenient process. The simple procedure involves the following steps: Visit the official site of Piramal Finance at www.piramalfinance.com. Click on the “Menu” if using a mobile phone to download your loan statement. However, skip this step if using a personal computer or a desktop. Locate the Customer Services tab and select it to open a drop-down list. Among the various services, select “Download Statement.” It will further open a separate list with multiple options. Click on the “Loan Agreement” to view your e-statement. It will direct you to a new page named “Loan Statement” with a small box. Next, enter your lead ID or loan account number to log in and access the information. Correctly type in the required detail and click “Submit” after ensuring it is valid. Now, you can view and download your loan statement easily without any hassle. You can use the same process to download the loan repayment schedule. 2. Customer Care It is okay if you find the process hectic or time-consuming. You can use the service by giving the support team a call or sending an email. 3. Mobile Application The easiest way to download an e-statement is through the mobile application available on the Google Play Store and other app stores. You can install the Piramal mobile application to download the loan statement. Besides the digital document and repayment schedule of your loan, it contains other significant data as well. You can view your account statement, provisional interest certificate, and more from any location at any time with a few clicks. All the methods are relatively easy and convenient. You can use any to access your loan statement or agreement per your suitability. [B-02] Conclusion Loan statements, or e-statements, are one of the ways to simplify the loan journey an applicant undertakes. It is preferable to download or access such details and documents online to avoid any confusion in the future. Staying updated with your loan repayment schedule not only helps you with the timely reimbursement of the amount but also improves your credit score. You can make monthly payments before the due date and sidestep any negative penalty or dent a late transaction brings. If you feel hesitant about how to view and download your loan statement, you can connect with a professional financial company to resolve the issues. Piramal Finance aims to assist customers—firms and individuals alike—in making correct financial decisions. It is an Indian company with remarkable experience and optimal services. You can contact the adept team of experts here to ease and enhance retail lending, which comprises business loans, home loans, personal loans, and other finance-related services.

08-11-2023

Personal Loan

Everything You Need To Know About Foreclosure Of A Loan

Foreclosure is a common term used in the world of housing loans. It refers to the legal action of taking control of properties that are in arrears. Arrears occur when a borrower refuses to repay the lender after borrowing money with a property as collateral. In such scenarios, the ownership is transferred to the lender automatically. Do you plan to purchase a home by taking out a loan? If yes, then you need to have a good understanding of what foreclose loan means. So, in today’s blog, we are going to explore foreclosure in detail. We’ll cover some highly important topics related to it. Without further ado, let’s jump straight to our first topic. [B-01] What does a foreclosure loan mean? Foreclose loan means when lenders take control of a borrower’s property after the borrower misses multiple mortgage payments. Suppose you bought a house by taking out a mortgage from a bank or other lender and agreeing to a certain deal. In exchange for the money, they lend you the money to purchase a property, and you agree to pay a specific sum every month for “n” number of days. The agreement here is recorded as proof in a contract signed by both parties. If, for some reason, you are unable to make those monthly payments, the lender or bank will foreclose the property. meaning they will take control of it and sell it further to compensate for the funds they lost. In such a case, you cannot do anything because it’s all legal and you have agreed to it by signing the contract. If we look at it the other way, foreclosure is a nightmare for any borrower. But there are some ways to save yourself from foreclosure. We’ll talk about them later in this blog. What are the types of loan foreclosures? Now that you know what foreclose loan means, it’s time to understand their types. So generally, the foreclosure process begins when you miss a certain number of mortgage payments. There are two primary ways in which lenders foreclose on your loan: #1 Judicial Foreclosure: For this type of foreclosure, the lender needs court orders. #2: Non-judicial foreclosure: This depends on the state where your property is located. Aside from these, there are a variety of other options depending on the terms of the mortgage and your state. The most significant factor that differentiates these types of foreclosure is that some involve legal actions. Some, on the other hand, simply do not. For example, judicial foreclosure, power of sale, and strict foreclosure. Let’s talk about each of these foreclosure types in detail right below: Judicial Foreclosure In judicial foreclosure, lenders file lawsuits against borrowers. Borrowers are informed about the lawsuit once it is successfully filed by the court. After the notification is received, the house owner or borrower has 30 days to make up the missed payments. If they fail to do so, the foreclosure will begin. Power of Sale A power of sale is another type of foreclosure that is allowed in limited states, depending upon the “sale clause” of your mortgage contract. Such foreclose loan means that if you fail to make monthly payments, lenders are allowed to auction the property. This is a non-judicial foreclosure because there’s no legal action. Strict Foreclosure Strict foreclosure isn’t a very popular type of foreclosure; it’s uncommon. The reason is that it’s allowed only in some states. According to this foreclosure, the lenders file lawsuits against borrowers. They seize the property if the borrower fails to make the payments within the time given by the court. How do I avoid loan foreclosure? Foreclosure is something that borrowers don’t want to experience. It’s a nightmare. Luckily, there are certain ways you can avoid it. Understanding what foreclosing on a loan means is the first step towards avoiding it. Here are some other ways to do the same: Forbearance Programs A forbearance program is an exceptional way of avoiding foreclosure. Let us tell you what exactly this program is. So, during the global pandemic, the federal government established this program. It’s not enabled in some countries, but there are many places where it’s still available. This plan will help you with your foreclosure by helping you financially. Try adjusting the loan terms Uncertainties are unavoidable and unidentifiable. If you struggle to afford your monthly mortgage payments, you can always ask the lender to adjust the terms. Most borrowers hesitate to ask for adjustments from lenders and then regret that later. Be smart and ask for adjustments. You might be able to decrease your monthly payments by increasing the loan tenure period. Set up a repayment plan Everyone knows about their financial condition. But instead of talking negatively, you can adjust your finances accordingly, considering your loan. Sit back and create a repayment plan. Adjust your expenses for a month and try to keep your loan payment as your priority. If you somehow are unable to pay for a month, your lender might agree to adjustments. That’s when making payments ahead of time helps you out! Take out a loan with a low interest rate Many people use the same approach to get rid of their mortgage permanently. It is only applicable when you have a few monthly payments to make but your budget is tight. So, there is always someone in the market offering loans at a low interest rate. Take your time and research different lenders. If you have any other assets, you can present them as collateral and borrow money for an EMI you can easily afford. From the funds lent at low interest, pay all your mortgage and free up your house. This way, your house is safe from foreclosure, and your liability is decreased. [B-02] Conclusion So that was all there was to know about foreclosure. Foreclosure might be a nightmare, but it’s avoidable. In this blog, we have shared some key tips and methods you can use to avoid foreclosure. Share this blog with someone you know who might plan to take out a mortgage. Help them avoid foreclosure. Also, if it’s your first time applying for a loan, it’s best to have expert assistance by your side, such as Piramal Finance. It’s a well-known finance firm that offers a wide range of premium finance-related services to individuals and businesses. Collaborate with them and get your desired loan effortlessly!

08-11-2023