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Business Loan

How Secure it is to Get Business Loan From Online Lender?

Business loans are loans most businesses take to meet the financial requirements for various operations. Businesses take loans to meet their day-to-day expenses, purchase raw materials, and other needs. They can meet small fund requirements by taking small business loans online. It is easier to take a small business loan online as compared to a bank loan. The loan processing time of online loans is lesser than bank loans. Online lenders provide small business loans at flexible terms and conditions. It is convenient to take an online loan for business. Finding a genuine online lender is necessary to avoid any risk of fraud. [B-01] Is it Safe to Get a Business Loan From an Online Lender? Taking a loan from a genuine lender can be a safe and secure way to fulfil the monetary needs of a business. There are many lenders online who claim to offer instant loans with minimum formalities. It is essential to understand the difference between a genuine and a fraud lender. Borrowers shall refrain from taking an online business loan if the lender offers it with unrealistic terms and conditions. These lenders can be frauds who aim to extract your personal information and misuse it. Tips to Identify Genuine Vs. Fraud Online Lenders: Below are a few indicators that help borrowers about the authenticity of an online lender: Permitted by an authority: As per RBI guidelines, the entities regulated by RBI or permitted by any other law can carry out online lending activities. You can check the bona fide of the online lenders on RBI’s website. RBI registers digital lending companies. A lender can be a fraud if RBI or any other authority does not regulate him. Borrowers should verify the reality of the online lender before applying for a loan. Have a physical address in India: A lender may be a fake one if he does not have a verifiable official address in India. Fraudulent lenders operate through online modes. They create and maintain an online network to coordinate with their team. They do not have an actual website. If they have a website, it is not encrypted to maintain the privacy of the user’s information. Ask for KYC details: Genuine online lenders ask borrowers to fill out a Know Your Customer (KYC) form. The KYC details include the borrower’s name, date of birth, contact details, PAN, Aadhaar Number, address proof, etc. The lenders use these details to verify the identity of the borrower. Fraud lenders offer to transfer the instant small business loan amount to the borrower’s bank account. They use their mobile number and bank details. They do not verify the borrower’s identity through KYC norms. Their sole purpose is to gain access to the borrower’s data. They use this data to blackmail the borrower and leak his personal information if they do not pay the amount asked of them. Check creditworthiness: Authentic digital lenders check the creditworthiness of the borrower. The borrowers have to go through a procedure that includes the submission of documents, income proof, etc. Legitimate online small business lenders provide financial assistance with minimum formalities. If a lender does not ask for any details and offers a loan without checking the creditworthiness of the borrower, it might be a fake one. Borrowers shall not connect with lenders who offer unrealistic deals despite having a poor credit score. Loan processing fee: Fake online lenders ask for the payment of a loan processing fee upfront. Whereas genuine digital lenders deduct the loan processing fee amount from the sanctions loan amount after the approval of the loan. Borrowers shall carefully examine the lender before making any payment or providing access to personal information. Proper loan agreement: Paperless work is acceptable in today’s digital world. But borrowers shall look out for lenders who offer funds with no formalities or paperwork. Genuine lenders maintain transparency in loan processing. Borrowers shall take an online loan from lenders who provide a loan agreement. The agreement indicates the terms and conditions, repayment schedule, penalty, etc. Attributes of an Authentic Online Lender Have a secure and encrypted official website. Registered with RBI or other authority. Verified physical address. Positive and genuine customer reviews. Follow a clear and transparent procedure for loan approval and sanction. Report Fraud Online Lenders It is important to stay alert and report fraud. If anyone has been a victim of online fraud or comes to know about an online scam or fraud, the online lending platform shall immediately report to any of the following: Report to RBI’s website. Cybercrime police in the area. Report the application on google. [B-02] Conclusion Online business loans are a suitable option to raise funds for the immediate financial needs of the business. You can avail of these loans if you choose an authentic online lender. If the borrower does not have a good credit history, the lenders offer online business loans at a high-interest rate. New businesses which do not have a credit history can take loans from startup business loans direct lenders. Any unrealistic offers can be an indication of fraud. Hence, borrowers should share personal information after verifying the legality of the lender. They should pay the fee after verifying the genuineness of the lender. For more such articles and financial information, please visit https://www.piramalfinance.com/personal-loan
08-11-2023
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Personal Loan

Pros and Cons of Unsecured Personal Loan

An unsecured personal loan is a type of loan that does not require collateral. Unlike secured loans, if you default on an unsecured loan, the lender cannot take your property as compensation. There are both pros and cons to taking out unsecured personal loans. In this blog post, we will explore some of them so that you can make an informed decision about whether or not this type of loan is right for you. [B-01] What is an Unsecured Personal Loan? An unsecured personal loan is a type of loan that is not backed by collateral. Collateral is an asset, such as a car or home, that can be used to secure a loan. The borrower does not have to put up any collateral to get an unsecured personal loan. Unsecured loans are often used for debt consolidation, medical bills, or large purchases. The interest rate on an unsecured personal loan is usually higher than the interest rate on a secured loan, such as a mortgage or car loan. This is because the lender takes on more risk when lending money without collateral. The term of unsecured personal loans is usually shorter than the term of a secured loan. This means that the monthly payments are usually higher. You may be able to find lenders who offer flexible terms and payment options for unsecured personal loans. Pros of Unsecured Personal Loans There are a few potential advantages to taking out unsecured loans that borrowers should be aware of before they commit to this type of financing: You don’t need to put up any collateral An unsecured personal loan doesn’t require you to pledge your home or car as collateral, as in the case of a secured loan. This means you can get the money you need without risking your assets. They’re easier to qualify for Unsecured personal loans tend to have less stringent qualifying criteria than secured loans, making them a good option if you have bad credit or limited income. You can use them for almost anything Unlike some types of loans that can only be used for specific purposes, unsecured personal loans can be used for just about anything, from consolidating debt to funding a wedding or vacation. They offer fixed payments With an unsecured personal loan, your payments are fixed, so you’ll always know exactly how much you need to pay each month. This makes budgeting and financial planning easier. You may get a lower interest rate If you have good credit, you may qualify for an unsecured personal loan with a lower interest rate than other loans, such as credit cards or lines of credit. Cons of Unsecured Personal Loans When considering unsecured personal loans, it’s important to know the potential disadvantages. Here are a few things to keep in mind: Higher interest rates Unsecured personal loans typically come with higher interest rates than secured ones since lenders see them as riskier. This means you’ll end up paying more in interest over the life of the loan. Shorter repayment terms Unsecured personal loans also tend to have shorter repayment terms than secured loans, so you’ll need to pay them off more quickly. This can be a challenge if you’re on a tight budget. Limited loan amounts Since they’re unsecured, lenders tend to offer smaller loan amounts for unsecured personal loans. This can be a problem if you need a large sum for home repairs or medical bills. Stricter eligibility requirements Unsecured loans are riskier for lenders and often have stricter eligibility requirements than secured loans. For example, you may need a higher credit score or income level to qualify. May require collateral In some cases, lenders may require collateral for an unsecured loan, meaning, you’ll need to put up something of value (like your home or car) as security if you default on the loan. Financial Planning Pointers: How to Acquire the Finest Unsecured Personal Loan? If you are looking for unsecured personal loans, there are a few things you should keep in mind to get the best deal possible. Here are a few financial planning pointers to help you acquire the finest unsecured loans: Check your credit score Your credit score is one of the main factors lenders will consider when considering your application for an unsecured personal loan. If you have a good credit score (above 700), you will be more likely to be approved for a loan and receive a lower interest rate. Shop around There are many different lenders out there offering unsecured personal loans. It’s important to shop around and compare rates and terms before deciding on a particular lender. Know what you can afford Be realistic about how much you can afford to repay each month. Make sure the repayment amount is something you can comfortably afford without putting too much strain on your finances. Consider the fees Some lenders charge origination fees or other types of fees, so consider these when comparing different loans. Read the fine print Be sure to read and understand all of the terms and conditions of your loan before signing any documents. This includes understanding any penalties for prepaying your loan or making late payments. Key Takeaways There are many benefits to taking out unsecured personal loans, including that they tend to have lower interest rates than other types of loans. However, there are also some downsides to unsecured personal loans, such as the fact that they may not be available to everyone. [B-02] Before deciding whether to take out unsecured loans, it is important to weigh the pros and cons carefully. Consider your financial situation and needs before making a decision. If you decide an unsecured personal loan is right for you, shop for the best rates and terms. If you want to learn more about securing unsecured personal loans, you can find similar articles and tips on Piramal Finance.
08-11-2023
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Personal Loan

Why a Personal Loan is Better Than Borrowing From Friends or Family

In need of some quick cash? You might be tempted to ask your friends or family for help, but consider applying for a personal loan before you do. While it can be tempting to borrow from friends or family, that doesn’t make it the right financial decision. Read on. [B-01] Why personal loans? People who wish to borrow money to pay for personal costs can apply for personal loans from lenders like banks and NBFCs. These costs could include a wide range of things, such as a new car, house improvements, a wedding, higher education, a trip, etc. Lenders provide personal loans to people so they can raise money right away without having to go through a drawn-out application process. Lenders offer personal loans at an interest rate they determine depending on the loan amount and the loan tenure selected by the borrower, similar to other loan types. Once you’ve applied for a personal loan, you have a legal obligation to repay the lender the loan’s principal and interest during the loan’s term. Here are some advantages if you apply for a personal loan instead of borrowing money from friends or family- A personal loan has a set repayment schedule A personal loan often has a set repayment schedule, meaning you know exactly when and how much you’ll have to repay each month. Plus, unlike borrowing from friends or family, if your circumstances change and you can’t make payments for whatever reason (e.g., illness), your lender will work with you to find an alternative repayment plan that works for both of you. If you apply for a personal loan, you get more flexibility with payment options, like biweekly payments that allow you to pay less each month. A personal loan can help improve your credit score A personal loan can help improve your credit score by allowing you to demonstrate that you can responsibly manage debt. Plus, if you have good credit, you can get a lower interest rate than borrowing from friends or family. When you apply for a personal loan, the terms are often more straightforward to understand than when you borrow from friends or family; for example, the amount of interest you’ll pay throughout the loan will be clear. Finally, many lenders offer flexible repayment options on personal loans, whereas they may not be as generous about repayment plans when borrowing from friends or family. A personal loan can be used for any purpose You can use a personal loan for any purpose, including major expenses like starting a new business, buying a car, paying college tuition, or even consolidating high-interest debt. Unlike borrowing from friends and family, the lender won’t care if you want to use the money for something other than your emergency fund—you’ll still get the same low rates and flexible repayment terms. With most lenders, you don’t need perfect credit to apply for a personal loan—as long as you have some income and an active checking account, there are plenty of options available. You can shop around for the best personal loan rates For many people, borrowing money from friends or family to get them out of financial trouble seems like the easiest option. However, there are several drawbacks to this type of borrowing. For example, the interest rates can be much higher than what would be offered when you apply for a personal loan. You may be in even more debt as your loved ones expect you to repay them quickly. Borrowers also have access to competitive interest rates with some companies, which means that their monthly payments are smaller, making it easier for them to manage their finances when paying back the debt. You don’t have to worry about hurting relationships While it’s tempting to borrow money from friends and family, the reality is that if you can’t repay what you owe, your relationship could be damaged. When you apply for a personal loan, the lender will look out for your interests and offer different repayment options and rates based on your situation. Plus, if you decide to refinance your debt with another lender, later on, it won’t matter how good your terms were with the original lender since they don’t share this information with other companies. Additionally, unlike borrowing from friends or family, most lenders will have an in-house attorney, so you know there’ll be someone to answer all your legal questions about the process if needed. You can get a personal loan without collateral A personal loan can be the perfect way to borrow money if you need more than what you have in savings but don’t want to borrow from friends and family who may ask for collateral. If you have good credit, it’s even possible to apply for a personal loan without having any collateral. That makes this type of loan ideal for people just starting out because they can establish their credit history before asking friends or family members to lend them money. With a personal loan, you must make your monthly payments on time, and you’ll build up your credit over time. You might even find that a bank will approve you for an auto loan once your score has improved significantly. [B-02] Conclusion figuring out Borrowing money from friends or family can be very difficult for both parties. The borrower usually feels guilty, and the lender feels taken advantage of. So if you need help figuring out what to do when you need money, try applying for a personal loan instead. A personal loan lets you pay back your debt over a longer period so that you don’t have to worry about making payments on your friend’s schedule. If you apply for a personal loan, you’ll also get great interest rates and low fees, saving you money in the long run, along with access to more flexible repayment plans with better terms. For more information and customized assistance, head over to Piramal Finance.
08-11-2023
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Home Loan

How Many Times Can Prepayment Be Done for Home Loan?

The idea of being in deep debt is repugnant to the vast majority of us. If you take out a loan, you probably want to pay it back as soon as possible, preferably before it’s due. But, a home loan is not the same as a credit card or an auto loan. Yet, there are perks to having a house loan that could outweigh prepayment costs. Home loans have a prepayment option. This option allows you to pay back the principal amount any time before the end of the tenure. Prepayment is typically opted for by consumers who have financial flexibility. We’re sure you have many questions about home loan prepayments. In this article, we’ll talk about home loan prepayment and more: [B-01] How Many Times Can Prepayment for Home Loans Be Done? Generally, you can prepay as many times as you want. But, this feature varies from bank to bank, and some banks only allow a certain prepayment limit. Should You Prepay Your Home Loan? Based on your financial situation, prepaying your house loan may be a viable option. If you have an unexpected bonus or inheritance, you can use the money to pay off your home loan early. Banks or NBFCs do not assess prepayment penalties for floating-rate home loans. There are situations where prepayment of a home loan might save you money. For example, when the loan amount or the interest rate charged by the lending institution is high. For example, suppose your interest rate is lower than average, and you’re eligible for deductions. In that case, you might want to keep the loan. Who Is Eligible for a Prepayment for a Home Loan? All borrowers are eligible for prepayment for home loans as long as their bank allows them. You may want to apply for a home loan that allows prepayment if you want to save money in the long run. Banks often do not encourage prepayment. That’s because it is detrimental to their business. If you pay off a loan early, the bank will charge you more to process the assets through the credit system. So, you may have to pay a fee to the bank if you want to pre-close on your loan. You have the right to foreclose on all or part of your loan if it provides you with a long-term profit. For example, if you save money on interest each month after paying the fine, it may be worthwhile to foreclose on the loan. How Are Prepayment Charges Calculated? Loans with a floating interest rate don’t need to pay prepayment fees, as per RBI standards. A prepayment is an option for such borrowers. That’s because they can make payments whenever they have money left over. Prepayment fees on fixed-rate home loans are usually rather low. However, when paying off a home loan early, you may be required to pay a fee equal to a tiny percentage of the principal balance. How To Prepay a Home Loan? Your home loan prepayment options are flexible. You can either pay off some of your debts or make a down payment on the home loan early. You can do either one or both simultaneously. Start small and gradually increase your prepayments Begin with a modest prepayment at the outset of the loan. And, gradually increasing it annually at a steady rate is one strategy for paying off a home loan early. To do this, just prepay some or all your annual expenses by saving aside money regularly. Fixed advance payment You can do this in several ways, one of which is to prepay your principal a set amount each year. Also to your EMI payments, you must do this. Then, budget your yearly expenses and put away a fixed amount regularly. Put this toward a prepayment of your home loan’s principal. Increased EMI Another strategy is to pay more than your calculated EMI. The monthly payment should be slightly greater than the home loan EMI. This will help a great deal in paying down your debt. Full repayment Paying off your debt early is an option. But, only if your financial condition has improved. Or, you have come into possession of a large chunk of money. But, you may incur costs if you prepay your home loan. Benefits of Paying off a Home Loan Before Time Clearing a home loan is referred to as prepayment in the finance world. You’ll be able to reduce your interest payments, as we mentioned before. Nonetheless, as you’ll discover later, there’s more to the story. You can significantly reduce interest obligations The typical length of a home loan is very long — around 20 years. Hence, the borrower’s interest could add up to a sizable sum. The interest paid can be significantly larger than the principal amount borrowed. That’s if your home loan interest rate exceeds the average market rate. Yet, if you can, you must prepay your home loan to reduce the total interest you’ll pay. If you need help comprehending, consider the following illustration. Gives you the freedom to consider other scenarios Your retirement fund will have greater room as the debt gets reduced. We tend to be very much in the here and now, with little thought given to the long term. Also, you might not have enough time to save for retirement if you let your home loan continue until you pay it off. Then, prepare to repay the debt sooner than you had originally anticipated. When you finally call it a career, you will no longer bring in any money. Moreover, retirement can be challenging if you haven’t saved enough money. You can get more financing opportunities You can often take on extra, smaller loans when you pay a home loan early. Fewer loan providers will work with you if you already have a home loan. Loan amounts tend to be bigger when borrowers have fewer or no current debt commitments. [B-02] Conclusion You can save on interest by prepayment of your home loan. But, doing so by liquidating your investments or savings for emergencies can be risky. Don’t spend any surplus funds you have for house loan repayment. Instead, use them to invest in fixed-income products such as bonds or fixed deposits. You can also use funds that haven’t been designated for a certain expenditure. Looking for a personal loan to fund your financial needs? Apply for a personal loan with Piramal Finance and get up to Rs. 10 Lakhs!
08-11-2023
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Know More

PPF: What Are The PPF Benefits And Features

PPF, or Public Provident Fund, is one of India’s most popular investment schemes for people of all ages. PPF not only gives a good rate of interest that allows your money to grow quickly but is also safe. This is because PPF comes with a government guarantee, where the return on investments in PPF is assured. With safety and fast growth, PPF offers investors the best of both worlds. [B-01] What is PPF? PPF, or Public Provident Fund, was introduced in India in 1968. For 54 years, PPF has been the go-to savings-and-tax-saving instrument of choice for millions of Indians. The Government of India revises PPF interest rates every year, and usually, the interest rate on PPF post office accounts is higher than on fixed deposits (FDs). The rate of interest offered on PPF accounts right now is 7.1%. And the minimum lock-in period for a PPF account is 15 years. Benefits of PPF PPF is a favourite savings instrument because it affords the following benefits: For Everyone: There is a cap on the maximum amount of money you can invest in PPF (Rs 1.5 lakh). The minimum amount for PPF is so low that almost everyone can afford it. The lowest amount you can invest in your PPF is only Rs. 500 per year. Emergency-friendly: Need urgent money? Maybe an illness at home or an expense has caught you by surprise. You can count on your PPF account to tide through the crisis. You can avail of loans against your PPF account from the 3rd financial year to the 6th financial year. It’s your money – make it large or small: PPF also allows you to draw money from the seventh financial year. Tax-saver: The deposit you make in your PPF account, with a cap of Rs 1.5 lakh a year, qualifies for deduction under Section 80-C of the Income Tax Act. Further, interest earned on your PPF investment is free from income tax under Section 10 of the I-T Act. Very safe: You don’t need to be told again that mutual fund investments are subject to market risks. The same is the case with most other options that offer similar returns. But not your PPF account. Not only do PPF accounts come with a government guarantee, but the amount in your PPF account also cannot be attached under any order or decree by a court of law. PPF Features Now that you know the benefits of having a PPF post office account, here’s a glance at PPF features: PPF interest rates How is the PPF interest rate decided? The Government of India decides on the rate of interest on PPF investments every quarter. The PPF interest rate for the third quarter of the 2022-23 financial year (October 1 to December 31, 2022) is 7.1%. How is PPF interest calculated? PPF interest is calculated based on the lowest PPF balance in the account after the 5th day of a month to the final day of the month. When is PPF interest paid out? Interest accrued on PPF investments will be credited to your PPF account at the end of every financial year. PPF investments How much money do I need to open a PPF post office account? You can open a PPF account with a minimum yearly investment of Rs 500 only. Is there a cap on the amount of money I can invest in PPF? Yes. You can invest a maximum of Rs 1.5 lakh in your PPF account. PPF tax saving How much tax can I save by opening a PPF account? The money you invest in your PPF account is exempt from Income Tax under Section 80-C of the Income Tax Act. Therefore, the entire amount is exempt from income tax if you invest a maximum of Rs. 1.50 lakhs, in your PPF account. Moreover, the interest earned from your PPF investment is also exempt from income tax. PPF lock-in period and withdrawal How long do I have to keep my money in a PPF account? The minimum lock-in period for a PPF account is 15 years. Additionally, you can extend your PPF account for as long as you want in blocks of 5 years. Can I withdraw my PPF money before 15 years? Yes. But only in case of emergencies. You can withdraw money from your PPF account from the 7th financial year since you opened your PPF account. What if I need my PPF money before 7 years? You will not be able to withdraw money from the year PPF account before the 7th financial year since you opened the account. However, you will be able to obtain loans against your PPF account from the 3rd to the 6th financial year from when you opened your account. PPF Pension There is some confusion in the investment market about whether PPF provides pensions to account holders. If you are confused, please know that PPF does not provide any pensions to investors. PPF, or Public Provident Fund, is a government-backed savings instrument only. It is not a pension or retirement-specific vehicle. How to open a PPF account? Now that you know PPF benefits and various features of opening a PPF account, here’s a glance at how to open a PPF account. PPF accounts can be opened at post offices, nationalized banks, and major private banks. Documents required to open a PPF account: PPF account opening form. The form can be obtained from any bank authorized to open a PPF account. KYC documents: Aadhaar, voter ID card or driving license. Address proof. PAN Card. Passport-sized photograph. Nomination form – Form E. This can also be obtained from the bank. With all these documents in order, you can submit your form, and you now have a PPF account. [B-02] Conclusion PPF is one of the best saving options for risk-free investors. People widely use it to create a retirement corpus. If you want to learn more about PPF and its benefits, visit Piramal Finance. They have some great blogs and articles on PPF to help you acquire updated financial skills.
08-11-2023
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Personal Loan

What Is the Eligibility for a 5 Lakh Personal Loan?

The number of financial institutions that offer personal loans has increased. The terms and conditions with which loans are given have also become more strict. Due to growing scrutiny, banks have mandated personal loan eligibility requirements. Every applicant has to meet these before they become eligible for a loan. Eligibility is the first step, so knowing how to qualify for a loan can make or break your desire to take one out. In this article, you will read about personal loan eligibility. It also discusses the qualifying criteria for a five lakh personal loan. [B-01] What Is a Personal Loan? A personal loan is a loan sought by an individual from a financial institution for various purposes. These include paying old debt, clearing medical bills, or buying furniture. For example, an entrepreneur can take a personal loan to finance their expansion. A lender will sanction the fund after checking your loan eligibility. There are many types of personal loans. You may apply for a personal loan for your vehicle, home renovation, education, etc. Check Personal Loan Eligibility You can apply for a personal loan if you are a resident of India and above 18 years of age. You should also have a permanent source of income. These are the most basic personal loan eligibility requirements prescribed by every lender. The loan amount you are eligible to get is limited to Rs 5 lakhs. Other guidelines should be kept in mind while applying for a loan. Lenders have also mandated personal loan eligibility requirements like identity and address proof. Documents Needed for a Personal Loan The documents sought by the lender will be submitted along with the application. Here are documents that will help meet the personal loan eligibility set by lenders: Identity Proofs: The applicant’s name should be displayed on the document. You can submit any government-issued photo ID like an Aadhaar or driving license. Age Proof: If the documents are in the applicant’s name, the age proofs are applicable. One can use Aadhaar, Voter ID, Driving Licence, etc. Residential Proof: The address in the application shall not be rented or leased. Although, in some cases, the bank may allow you to use it. Employment Proof: You should prove that you have a stable and regular source of income. It is needed because you will use this income’s funds to repay the loan. Loan Purpose: You can apply for a loan for any purpose. Some lenders may ask you to submit a letter along with your application. The letter must outline the purpose for which you seek the loan and how you plan to repay it. Process of Applying for a Personal Loan A person who wants to take a loan must fill out an application form. It can be obtained from the bank or an NBFC where the loan is offered. On filling out the form, the applicant must mention all details. These include the loan amount, loan purpose, repayment period, and interest rate. The documents mentioned in the personal loan eligibility section must also be provided. If the loan is approved, the interest rate will be mentioned on the form. After submitting the form, the loan application is transferred to the loan department. The loan officer sees the application form and decides if the applicant should be given the loan. The loan officer has the authority to approve or reject the application. The decision will be based on personal loan eligibility. They would also decide the terms and conditions of the loan. When the loan is approved, a formal letter confirming the same is sent to the address in the application. Interest Rate for a Personal Loan in India The type of loan you are taking will determine the interest rate you will have to pay. There are two types of personal loans available in India. One is an unsecured loan, and the other is a secured loan. An unsecured loan has no collateral attached to it, while a secured loan has some asset (such as a car loan) as a security. While applying for a loan, you should decide which type of loan you want. An unsecured personal loan has an interest rate of above 10 per cent. A secured loan has an interest rate of 8 to 10 per cent. Repayment Schedule of Personal Loan The repayment schedule of a loan would depend on the amount you take and the repayment period you choose. The repayment term for a personal loan ranges from one to 15 years. Options to extend it beyond that exist in some loan programs and with certain lenders. The lender would decide the repayment schedule of a loan. It will be based on the borrower’s repayment ability. The repayment will be in the form of EMIs spread over a few years, as agreed between you and the lender. Most personal loans come with a minimum tenure of one year. Banks insist on having this minimum term as they want to make sure that they earn interest. Moreover, in some cases, you may even have to pay the penalty if you are paying before the stipulated time. Doing so causes a loss of interest to the bank. [B-02] Conclusion Now that you know what a personal loan is, who is eligible for one, and how to apply for one, you are ready to find the best deal on a loan. Before applying for a loan, make sure you know the interest rate. Other terms and conditions of the loan must also be read. You must also check the personal loan eligibility details. That way, you can make a better decision about whether or not to take out a loan. A good way to do this is to find a lender with flexible loan programs. It includes Piramal Finance, known for excellent services and flexible loan terms.
08-11-2023
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Investment

Different Pros And Cons Of Investing In Mutual Funds

A mutual fund is a type of investment option with a bunch of funds collected from many investors to invest in various securities. These securities can be shares, bonds, and other assets. Many types of mutual funds are available to investors, each with a unique objective, strategy, and risk profile. Some types are index, equity, fixed-income, balanced, and money market funds. Investors can invest in mutual fund shares directly from a Demat account or through a broker. The price of a mutual fund share is based on the fund’s net asset value (NAV). This value is calculated at the end of each trading day. When choosing a mutual fund, you must consider your goals, risk tolerance, and time period. Before deciding, you should also research the fund’s performance, fees, and expenses. There are different mutual funds available to investors in India. Some of the best mutual funds to invest in India are HDFC Equity Fund, ICICI Prudential Bluechip Fund, and SBI Magnum Global Fund. [B-01] Advantages of Mutual Funds Mutual funds offer a variety of benefits, including professional management, diversification, and affordability. Some of the notable benefits are : 1. Managed by experts a team of experienced fund managers who manage mutual funds. They invest your money in other options like stocks and bonds. This helps spread out your risk. For example, if you have one stock that goes down, you might lose a lot of money. But if you have a bunch of stocks and one goes down, you might not lose as much money. This means you can be safer and make more money. 2. Diversified risks mutual funds are also diversified, which spreads your risk across investment options. This can improve your overall returns and minimises the risk. 3. Low minimum investement Mutual funds are also an affordable investment option. There are many funds available with low minimum investment rules. This makes them a great choice for investors with limited resources. 4. Numerous variants There are several different mutual funds available in the market. So it is vital to choose the right one for you. Some factors to consider include your goals, risk tolerance, and time period. 5. Allows bulk purchase Mutual funds also offer economies of scale. The larger size of a mutual fund allows it to buy securities in bulk, which reduces transaction costs. This benefit is passed on to shareholders through lower expense ratios. 6. Dividend Reinvestment Dividends and other interest income sources can be reinvested into the mutual fund to help it grow. This is a great way to keep your investment growing without spending additional money. The best mutual funds in India offer a variety of benefits and can be a great addition to your investment portfolio. Disadvantages of Mutual Funds Mutual funds are often touted as a great investment option, but there are some drawbacks to consider before investing. Below are the major ones : 1. Expensive Firstly, mutual funds can involve certain fees during the cash-out process that get deducted from the overall returns. Every year the mutual fund asks for a management fee to manage the mutual fund. There can be other charges that the fund house may levy from time to time. 2. Risk Involved Mutual funds are subject to market risk. This means that if you buy a mutual fund, the value of the money you put in can go up or down. This is called market risk. The market risk is that you might lose money if you buy a mutual fund. But there is no guarantee that you will lose money if you buy a mutual fund. If you are okay with taking on some risk, a mutual fund could still be a good investment. 3. Can lead to penalties Mutual funds can be non-redeemable for a certain period. This means you may have to pay the penalty if you need to cash out your investment before the fund’s maturity date. There is an exit load of 1% that fund houses levy on any withdrawals during the first year. This holds for ELSS schemes. These are tax-saving schemes that have a lock-in period of one year. 4. Tax inefficiency Mutual funds have to pay out capital gains to their investors. This is because of all the trades the fund makes during the year. The fund will make money from buying and selling stocks, and paying out capital gains is a tax event. 5. Needs professional help Finally, mutual funds can be difficult to understand and select. You may need professional help to choose the right fund for your needs. While mutual funds can be a great option, there are some things to keep in mind before investing. Make sure you learn all about the fees and risks linked with it. It can also be helpful to seek professional help to ensure you choose the right funds. [B-02] Conclusion Mutual funds are a good investment choice in India. The reasons are that they are easy to buy and sell, have a low minimum investment amount, and provide the option of choosing your investment portfolio. If you think investing in mutual funds is a good idea, you are on the right track! Now that you have the details about investing in mutual funds, you can decide whether or not to invest in mutual funds. If you want to learn more about mutual funds or how to invest in mutual funds, contact Piramal Finance. Visit its website to find out more about its offerings and services!
08-11-2023
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Business Loan

Loan Against Property To Start Your Business

Business owners may readily apply for a loan against property on the websites of financial institutions. Loan against property or real estate has been going on for years. Many people who want to start a business opt for this. It helps people get funding. People who have startups also go for this. They usually take a loan against their house and then run a company with the funding. These loans are also called loans against collateral. They are taken up by people who have property. Learn more about this subject through the article given below. [B-01] Top 5 Reasons Why Loan Against Property is Vital to Start a Business Starting a new business entails a huge cost. So, securing a loan against property is an attractive option. Here are a few reasons why getting a loan against property for business is good. 1. Basic Requirements for Participation In addition to the ease of applying for loans against real estate, the documents you need for approval are simple. You need a source of finance which is quick and simple to access. This is because you will incur many costs while starting a business. 2. Application Flexibility Setting up new business costs includes a lot of things. This includes renting or buying office space, buying office furniture and supplies, advertising, recruiting employees, etc. A loan against property secured by the new company’s property can be quickly redirected to meet the most immediate need. Starting a business might be much less complicated when a lender is not involved. 3. Flexible repayment schedule: Maximising profits to repay a debt with a more forgiving repayment plan will be less important. A loan against property offers you to schedule repayment for up to 20 years. This helps you focus on business growth without financial stress. 4. Lowest interest level You’ll have a far lower debt-to-income ratio because your lender provides you with a loan against property. The interest rates associated with a loan against property for company owners are quite low compared to other loan types like personal and business loans. 5. The Highest and Best Use of Property Although real estate is a great long-term investment, there are ways to maximize your returns. You can qualify for a larger loan at a cheaper interest rate if you use the property as collateral. Launching a firm requires many things, which can increase costs for first-time entrepreneurs. A loan against your home will allow you to accomplish all this without serious debt. What are the steps to getting a company loan backed by real estate? Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an instantaneous deposit of borrowed cash. Step 1: Your name, home address, birth date, and other personal details will need to be entered into an online form. Step 2: After filling out the first application, you will be asked to provide details about your income to be offered suitable loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative will contact the borrower to collect documentation verifying the borrower’s identity and property. When these steps have been taken care of, you will find out if your application for a loan against property secured by real estate has been granted. What is a startup loan secured by real estate? There are several differences between a personal loan and a loan against property secured by real estate, which can benefit company owners. Read on for more about the loan’s characteristics and how they could aid in the start of your firm. Commercial property equity loans are cheaper than unsecured loans for business purposes. Considering the massive outlay of capital required to launch a corporation, this differentiation might be decisive. Company owners who apply for loans backed by property do not have to relinquish legal or equitable title to the property to the lending organization. You and your family are welcome to continue living in the home even though you have pledged it as collateral for a business loan. Securing a loan against a startup company’s property is simpler than securing a personal loan or other types of loans. Your lender may rest assured that they will get their hands on the property if you fail to repay the loan according to the terms and timetable they provide because you are using the property as collateral. Now it’s far less hassle to secure a loan against property to launch your company. It’s possible to borrow a significantly larger sum of money against the value of your home than you would be able to with a personal loan or other unsecured loans. For instance, many investors may pool up to Rs. 3.5 crore to provide mortgage loans backed by real estate, with the loan-to-value ratio varying from 75% to 90% of the property’s estimated fair market value. You may make a well-informed choice about using a real estate-secured loan for startup capital if you know the benefits. Anyone, whether self-employed or on a salary, can get a loan against property and keep it even while making payments. You may use the property as collateral to secure financing for your firm. Or, you can keep living there and use the equity for other uses. [B-02] Conclusion: A loan against your property is the best option for startup business owners. This is because of the good repayment terms, competitive interest rates, and easy application procedures. Get a loan against your property from Piramal Finance to fund your dream business. Learn more about the benefits of a loan against property from Piramal Housing Finance.
08-11-2023
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Home Loan

Benefits Of Taking Home Loan On This Festive Season In India

Taking a home loan during this festive season in India has several benefits. For starters, a home loan offer can help you get the best possible interest rate on your loan. Moreover, taking out a loan now may help you avoid higher interest rates when rates inevitably go up again due to increased demand for loans. [B-01] What Is A Home loan? A home loan is a loan that you use to finance the purchase or construction of a house. You can borrow money from a bank, mortgage company, or other lending institution to purchase or build your house. Some important things to keep in mind when applying for a home loan include: Your credit rating is important in determining whether or not you are eligible for a home loan offer Having a good credit history may be beneficial as this will help you get a lower interest rate on your home loan. It is important to read the loan agreement carefully and understand all the terms before signing it. There are many different types of home loans available in India. With a home loan offer, you can get a better rate, fees, and quick processing. Factors To Consider While Taking A Home Loan Here are the factors to consider while applying for a home loan: Ensure that you have sufficient funds for the loan. Your collateral plays an important role. Ensure that you have enough collateral for the loan amount you need. Consider the terms and conditions of the home loan offer before you sign anything. Some offers may have unfavourable conditions that need to be agreed upon. Ensure you understand all the fees associated with a home loan offer, as these can quickly add up. Pay attention to interest rates offered by the home loan provider. Festive loan offers are better, and your processing fees will likely be exempted. Why Take A Home Loan Offer This Diwali? There are many reasons why you may want to take out a home loan this festive season. If you’ve saved up enough money and your credit is good enough, you can get a home loan with a lower interest rate than usual. Alternatively, if you plan on buying your first home or upgrading to a more expensive one, now could be the best time to do so, as housing prices are likely dropping in certain areas across India. Benefits Of Taking A Home Loan Offer This Festive Season The main benefits of a home loan during the festive season are: Lower interest rates One of the best things about home loan Diwali offers during festivals is that you’re likely to find much lower interest rates than usual. This means that you’ll be able to save money on your monthly payments and potentially have less of a dent in your savings if you take out a home loan over a longer period. Offers flexibility Most home loan offers allow borrowers to pay off their loans over time, which can help avoid late payment penalties and lower borrowing costs. You can also pay off a part of the payment in advance without any additional charges. Some home loans provide shorter terms than usual, making it easier for you to buy the home of your dreams without having to wait too long. Pre-approved offers During the festive season, there are various home loan offers. Most of these are pre-approved offers. The loan is offered quickly and with a short wait period. These offers reduce the documentation needs as well. The processing time is also reduced. Long repayment tenure Home loans are typically granted for up to 25 years. It gives you plenty of time to repay the debt and enjoy your newly purchased property without any concerns about financial instability or market crashes. Tax benefit If you have owned your home for at least 1 year in India and meet other eligibility criteria, you can avail of a tax benefit on the home loan amount. Your mortgage provider may offer special packages or discounts specifically designed for borrowers during this period. Processing fee benefits Applying for a home loan during festivals can allow you to get the benefit of reduced processing fees. There are chances that you may enjoy zero processing fees as well. This will save the cost of the loan and will help you get good home loan offers. Quick approval Home loan offers usually come with instant approval so you can start your home-buying journey as soon as possible. The terms of your home loan will be more favourable than those offered in other market conditions. Low risk involved Another benefit of home loans Diwali offers is that there is usually a lower risk attached to them. This means that if you cannot repay your loan on time, the lender will be less likely to chase you down for payment. They may even offer relief by extending the repayment period. Cashback offers Many home loan Diwali offers include cashback offers, which means you can save money on your home loan by agreeing to pay off your loan in full each month. This will help you avoid late payment penalties and lower overall borrowing costs. Easy documentation Although home loan offers are usually available from banks throughout the year, securing a loan before the festive season is typically easier. Most of the offers are pre-approved, and documentation needs are basic. Build credit score You can build your credit score when you apply for home loan offers. This will be beneficial in case you apply for any loan in the future. [B-02] The Bottom Line Now it’s time for you to get the home loan. This way, you can get the best home loan offers that perfectly suit your budget and needs. The best part about home loans is that they provide attractive offers, including zero percent interest for 6 months and flexible terms. However, it is always good to research before applying for a home loan and find out which home loan offer suits you. Visit Piramal Finance to read more about the best home loan offers.
08-11-2023
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