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Home Loan

Loan against property - Who can be eligible?

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: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: After filling out the first application, you will be asked to provide details about your income. These are used to offer suitable business loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative contacts the borrower. They collect documentation verifying the borrower’s identity and property. After this, you will find out if your application for a property loan secured by real estate has been granted. [B-01] Here are five reasons to start a business with a secured loan. There are high costs associated with starting a business. So, securing a loan against property is an attractive option. Here are five compelling reasons for securing a company loan against property: 1. Basic Requirements for Participation As you saw, filling out an application for a loan secured by real estate is easy. Just like that, completing the requirements for approval is similarly uncomplicated. As a beginner, you will appreciate the efficiency of these techniques. It is good to have quick access to finances as you will incur several costs. 2. Application Flexibility Setting up new business costs include renting or buying office space, buying office furniture and supplies, advertising, recruiting employees, buying equipment, and paying taxes. 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 complex when a lender is not involved. 3. Flexible Repayment Schedule Maximizing profits to repay a debt with a more forgiving repayment plan will be less important. Take a loan against property repayment schedule of up to 20 years. With this, you can focus on growing your business without financial stress. 4. Lowest Interest Level You’ll have a far lower debt-to-income ratio because your lender is providing you with a loan against property. The interest rates associated with a loan against property for company owners are lower than other loan types like personal and business loans. 5. The Highest and Best Use of Property Real estate is a great long-term investment. But 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. They can add up in cost for first-time entrepreneurs. Taking out a loan against your home will allow you to accomplish all this without going into 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 immediate deposit of borrowed cash. Step 1: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: Fill out the first application and then provide the details about your income. Then, you will 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. Following these steps, you will find out if your application for a loan against property secured by real estate has been granted. The loan proceeds will be sent to your account after approval. What is a startup loan secured by real estate? There are many differences between a personal loan and a loan against property secured by real estate. 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. Taking into account 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 may have pledged the home as collateral for a business loan. But, you and your family are welcome to continue living in the home. Securing a loan against a startup company’s property is simpler than securing a personal loan or other types of loans. You are using the property as collateral. Suppose you fail to repay the loan according to the terms and schedule. Then, your lender may rest assured that they will get the property. Now it’s far less of a 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. You may not be able to do so 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. The loan-to-value ratio varies from 75% to 90% of the property’s estimated fair market value. Being aware of the benefits is useful in making a well-informed choice on whether to use a real estate-secured loan for startup capital. 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 something else. [B-02] Conclusion A loan backed by real estate is the best option for startup owners. Some reasons include the generous repayment terms, competitive interest rates, and the easy application process. Get a loan against your property from Piramal finance if you want to start your own company. Visit our website to learn more about the benefits of a loan against property from Piramal Housing Finance.

08-11-2023

Home Loan

Know the meaning of the Moratorium Period in a Home Loan

Buying a house is something everyone dreams of. To fulfil your dream, a home loan is a right approach. However, paying off home loans can put you in distress. The reasons could be high interest rates, inconvenient EMIs, a lack of cooperation from the bank, or not having enough time to plan your finances. In such a scenario, banks allow a moratorium period for loan applicants. The moratorium period in home loans reduces the burden of repaying the home loan interest after applying. There are many benefits and some downsides to a moratorium period. [B-01] In this article, you will learn about the moratorium loan meaning. What is a moratorium period? A moratorium period is a time gap given to you by the banks just after you get your home loan. Here, you don’t have to pay any interest or any instalment to the bank. Banks provide this period as a break to help you plan your finances. Sometimes, you might not figure out a way to repay the loan interest the very next day. In that case, the moratorium period in a home loan acts as a great facilitator and provides you with the space you need to plan your budget. A moratorium period applies only to education loans and home loans. For that reason, a moratorium period is also known as an “EMI holiday.” While the loan is in effect, you don’t need to worry about paying the interest. However, you should be aware that you are not exempt from paying interest during the moratorium period. The interest amount adds up to your principal amount, and you have to pay the whole interest once your break is over. The number of days that your bank allows you depends on many factors. What are the Benefits of a Moratorium Period? Now that you have understood the moratorium loan meaning, it is important to know about its benefits. There are several benefits of a moratorium period in a home loan: Planning your repayment process: Since a moratorium period is a temporary break from repaying the loan, you have ample time to plan your repayment process. This is a good time to make an outline and start repaying your instalments. You will also get enough time to restructure your budget. This will ensure that you have enough for your expenses even after paying the monthly instalment. Overcoming a crisis: In situations where you have a liquidity crisis and you cannot manage your finances on time, a moratorium period can help you out. For the period when you have financial distress, you can ask for a temporary break from your bank. As soon as the distress phase gets over, you can start repaying your loan in an orderly manner. This is especially applicable in the situations that we all faced during COVID-19. During that phase, economic activities were compromised, and as a result, there was a huge liquidity crisis. In tough times like these, a moratorium period can give you a break and help you plan. Repaying becomes easy: As repaying becomes easy and convenient after a moratorium period in a home loan, you shed all the extra burden of the loan. You can use a moratorium period to accumulate funds from different sources and make sure that you have enough to restart your repayment. Taking a moratorium period at the start of a home loan can help you pay your instalments on time. No negative impact on your credit score: One of the best advantages of a moratorium period is that you don’t need to worry about your credit score. Your credit score is not affected by accumulating interest rates. This is a temporary break. Now that we’ve discussed the advantages of opting for a moratorium period, let’s look at the disadvantages of doing so. What are the downsides of applying for a moratorium period? Unfortunately, there are some downsides to a moratorium period as well: Burdens your interest amount: The most visible disadvantage of going for a moratorium period is that it burdens you with heavy payments. Your interest rate is still applicable during this temporary break. So you get a sudden increase in your instalment amount. If you have not planned for this situation, it might add some financial distress to your budget. 2. Interest rate keeps adding up: You don’t get a waiver from the interest rate during a moratorium period on a home loan. Even if you have some free time where you don’t have to worry about repaying, your interest rate keeps adding to your principal. So, you still owe the bank the interest rate during this phase. 3. Extra interest charges: Sometimes your lender will deny you the option of paying the due interest rate without penalty. In some cases, your lender charges you an extra penalty. This is in the form of interest rates on your principal amount. You will have to repay your loan once your vacation is over. 4. Longevity of the tenure of repayment: You have taken a break from repaying but are not exempt from the addition of the interest rate. So your principal amount increases, as does your loan tenure. Your tenure increases as your interest rate continue to rise, regardless of the moratorium period. For instance, if you took a loan for 5 years, after a moratorium period, this tenure could add up to 6 or 7 years. [B-02] In conclusion A moratorium period is a special feature that gives you the space you need to restructure your budget. There are both benefits and downsides to a moratorium period, and it depends more on your assessment. There are many finance-related queries that we all have. Piramal Finance provides the best solutions to all finance-related topics.

08-11-2023

Home Loan

Things to Know Before Applying For a Loan Against Property

What is a Loan against Property? How can you get one to begin constructing your LAP? Read on to find out all you need about real estate-backed loans. A loan against property secured by collateral is best described as “collateral.” It is a loan granted or handed out in return for the mortgage on a property. You must possess property to get a loan against it. You should own a property in which you reside. [B-01] How to apply for loan against property? The client needs to go to the financial institution’s website to apply for the loan against property. The lender’s customer service will contact the applicant and request any relevant papers. The lender will next review the application paperwork before paying a visit to the property. Once the application is accepted, the loan funds are sent to the customer’s bank account. Loan against property interest rates The loan against property interest rates is usually lower than those on unsecured loans. Furthermore, if you have a high credit score and a strong credit history, you will have a greater chance of acquiring a loan with a fair interest rate. Simple methods for completing papers and obtaining permission: A loan against property secured by real estate is usually fast and straightforward to get. The property used to support the loan is the collateral in this scenario. This implies that lending institutions may need more documentation. Provision for deferring debt repayment: Most loanssecured by real estate feature conditions that allow the principal to be renegotiated at any time. If you find the appropriate lender, you can get loans with repayment durations of up to twenty years. Transferring property ownership without a hitch: The individual retains ownership of the collateral property even after repaying the loan. The owner keeps the property as collateral for a loan until the debt is paid off. This condition allows you to sell the property if you cannot repay the loan against property. You should know that you might utilise your property to pay off your debts ahead of schedule. If the loan against property interest rates you took out is variable, you will not be penalised if you pay it off early. This is because the interest rate on a variable loan might vary at any moment. However, if the interest rate remains constant during the loan’s term, you will only have to pay a tiny amount each month. Using the most beneficial trait: If you need money and have property as collateral, you may acquire a loan against property value. Your belongings will remain in this condition. You may receive the money you need without selling your property if you take out a loan, and the interest rates are manageable. Things to consider before applying for a loan Placing property up as collateral is a systematic approach for people needing a loan to get one. Several financial demands may be satisfied with the considerable loan amount secured by a loan against property. However, a few things to remember if you want the loan application process to go as quickly as possible. You should consider five things before applying for a loan against property. Participation Requirements Varying lenders may have different criteria for who may get a property-backed loan. Before applying for a home-secured loan, you should research the lender’s qualifying conditions to reduce the likelihood of being denied. Following that, it’s simple to choose a reputable lender with conditions that work for you and fill out a loan against. An estimate of the value of your house The value of your property is determined by various criteria, including its size, age, location, and many more. So, to obtain a decent estimate of how much of a loan you may acquire against your home, you need to know the property’s total value. Your loan against application is more likely to be accepted if the value of your house exceeds the amount you want to borrow. However, you must ensure that there are no legal issues about who owns the land. Mortgage and other accurate estate-backed loan interest rates The interest rate significantly impacts how much you must repay on loan, including the principal amount and any interest that has been added. Before committing to a single lender, compare your rate alternatives with as many as feasible. Even a modest rise in the loan against property interest rates might make it difficult for a borrower to repay the whole amount. Consequently, consult with various financial organisations, such as banks and lenders, to obtain a reasonable interest rate. Repay schedule When you apply for a mortgage-backed loan, you may be offered many options for how and when you repay the loan. A loan against property from reputed banks may be repaid over 15 years. Because a more extended term equals a lower EMI, the LAP may be an excellent option to save money. On the other side, this might result in future high-interest rates. You may stretch your payments out over a longer time, but you will pay more interest in the long run. Income taxes generate revenue. In contrast to mortgages, there are no tax deductions for interest paid on personal property-secured loans. Taxes are deducted from the money you get when you repay your loan against property. You may be eligible for tax advantages if you intend to use the money you borrowed to start a company or purchase a house. Tax advantages depend on whether the loan proceeds are utilised for a “qualified purpose.” [B-02] Conclusion Many respectable banks and non-bank financial institutions provide Loans Against Property (NBFCs). This implies that both paid and self-employed individuals are eligible for this quick cash. As a result, many individuals choose a Loan Against Property. A residential or commercial property may be used as collateral with the lending firm to get a cheaper interest rate on a line of credit. The finest feature of these mortgages is that they are “multipurpose loans.” This implies that the funds may be utilised for everything from a down payment on a vehicle to a wedding down payment, company development, house upgrades, or medical expenditures. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.

08-11-2023

Health Insurance

Importance of Critical Illness Insurancec

Critical Illness Insurance is what stands between you and disaster if you get a critical illness. It covers a lot of unexpected things. Many people think they are safe because they have health insurance. In reality, the costs are much more than what a plan can cover. Some of the diseases could kill you. The lives of firefighters and other first responders are often in danger. This could make them more likely to get sick and put their lives in danger. Critical Illness Insurance is a great idea because of the risks of their jobs. It shows that you care about their mental and physical health. [B-01] What does it mean to have insurance for critical illness? A standard policy for an individual health insurance plan that only covers inpatient costs. A Critical Illness Insurance Policy will also give you a lump sum. That’s the case if you have one of the serious illnesses listed in the policy document. The one-time payment starts as soon as the doctor figures out what’s wrong with you. You can use it to pay for things like rent and health care. As soon as you finish the transaction, the protection ends. Health insurance also includes critical illness policies. It can only pay for really bad illnesses. Treatments for many health problems can be pricey. Having critical illness insurance can help you stay stable when bad things happen. And with this insurance, you can rest easy knowing you can pay for high-quality medical care. Importance of Critical Illness Coverage Critical sickness insurance is something you may buy via your employer. You may also buy it on your own. Another option that may provide the same or similar protection at a lower cost is to add coverage. You will find it as a “rider” to your current life insurance policy. Companies have been keen to provide these plans partly. Workers pay a premium for critical illness insurance instead of other medical benefits. Businesses and workers alike may reap financial benefits from this. The fact is that you can use funds from critical illness insurance toward various goals. You may use it to provide access to treatment that would not be possible without it. To assist with day-to-day needs like rent and food. It is so that the ill may focus on getting well. They shouldn’t be worrying about how to pay the bills. Travel expenses, including getting to and from appointments. Having a car adapted to accommodate a wheelchair or scooter. Having a lift installed in a home if the patient is too ill to use the stairs Those suffering from a critical illness or who need a quiet place. This will help in healing and people may utilise the funds to travel with loved ones. The health insurance will cover the expenses. The benefits of having critical illness coverage It’s meant to make up for lost funds. Acute diseases may also devastate an individual’s family’s financial stability. You may use death benefits from a life insurance policy to cover several expenses. They include mortgage payments or medical care. It has favourable tax implications. The Income Tax Act. Section 80D exempts from taxation any amount contributed to treating a serious illness. It’s a great way to relax and chill out. The insured can relax and concentrate on getting well. They shouldn’t be worrying about how to pay for necessities like food and housing. It’s comprehensive, including overseas medical treatment. With a critical illness insurance policy, the policyholder is for reimbursement. It consists of an agreed-upon sum. Regardless of whether the treatment was in India or elsewhere. This might mean that the insurer will pay for your medical expenses. For some or all your different medical treatments, if you go abroad. When Is Critical Illness Insurance Necessary? Investing in critical illness insurance is wise. It is if you are unwilling to take any chances with your health. Especially if you already have a history of serious medical issues. Primary wage workers often choose this coverage. They are the ones who cannot afford a prolonged period without income owing to a major illness. These initiatives may also help those strapped. Citizens of India who are at least 18 years old and younger than 65 may get affordable health insurance. Pre-policy medical checks may be mandatory for candidates aged 45 and over. The insured’s immediate family members may all be in the policyholder’s coverage. You can make only one critical illness claim on behalf of a group. That is, throughout the policy’s duration for each insured individual. Critical Illness Coverage: How It Works The life expectancy of many individuals is rising. So, it has become more important that people have financial resources. It helps them to enjoy their golden years. People bought critical illness insurance to help pay for the high medical bills. That may include critical illness. The expense of even one major illness might be prohibitive. Critical illness insurance may provide several benefits. Below are some situations. Hurting chest Failure of organ transplantation due to stroke Radiation therapy for cancer vs heart bypass Because of the extensive care and treatment, these disorders need Their costs might drain a family’s health savings or bank account. You can pay for non-medical costs like gas money with critical illness insurance. And costs that standard health plans don’t cover. The insured usually receives a single payment to cover out-of-pocket costs. [B-02] Conclusion Indemnity plans are more expensive than critical illness plans. It is because they don’t provide the same protection against the financial burden. Supplementing your existing medical insurance with a critical illness plan is wise. Combining critical illness insurance with full medical health insurance may be beneficial. You can consult an expert at Piramal Financing House to learn about health insurance. They will also guide you about how it works.

08-11-2023

Personal Loan

Most Common Reasons Why People Apply For Personal Loan

A personal loan is money you borrow from any bank or financial institution. These are unsecured loans. They have fixed monthly repayment methods. Anyone can apply for personal loans. But the criteria based on which banks provide personal loans are employment history, income level (or proof thereof), and repayment capacity. Also, your profession and credit history affect the loan too. [B-01] A personal loan is a multiple-personal loan. One can use it for any emergency need for funds. These loans are becoming highly popular among people for their easy process and disbursement. Advantages of a Personal Loan: There are several reasons why people apply for a personal loan. Here are a few of them: Easy and quick approval: Compared to other loans, personal loans have quick approval and disbursal, generally up to 48 hours. You need to have a strong credit history. And that’s all! You are good to go. No collateral required: As these are unsecured loans, the borrower didn’t need to provide collateral to get this loan. A large audience for this benefit prefers a personal loan. Flexibility: With personal loans, you can utilise the funds for any immediate requirement. You can use these funds for anything, including home improvements, marriage, or a medical emergency. Minimum Documentation Required: One of the most common reasons people avail of personal loans more than other loans is that they require much less documentation. Attractive interest rate: You can get a personal loan at attractive rates depending on which lending partner/bank you take it from. Boost your credit score: You can improve your credit score by taking out a personal loan and repaying it on time. Flexible Tenure: The repayment schedule of personal loans is flexible, up to 84 months. You can select the duration based on your needs. A high amount of availability: Personal loans can be available for as much as INR 50 lakhs. However, the maximum amount you can borrow depends on your credit score. Your income level and other factors like debt capacity affect the amount. Tax Benefits: Depending on your usage of funds from a personal loan, you can also claim tax benefits. For example, if you are purchasing a new home or renovating an existing one, you can claim tax deductions under Section 24(b) of the Income Tax Act of 1961. Personal loans have become one of the top choices of borrowers due to their quick and easy application process, lack of collateral, and minimal documentation. Reasons why people apply for a personal loan: Debit coalition: Generally, people apply for personal loans to pay off their other multiple loans and credit card payments and collate them into one monthly payment. Also, people use their funds from personal loans to pay off their credit cards to get lower interest rates. They can save the interest and time it would take to pay off the entire amount this way. Medical Emergency: In case of any emergency, you need instant funds, and in case of hospitalizations, you need a hefty amount. So in such cases, people prefer personal loans for their easy, quick, and hassle-free disbursal. Home upgradation: People also use personal loans for renovating their homes. Renovating your home isn’t easy, requiring a lot of effort and funds. Personal loans come to your rescue in such times. Packing and moving: Shifting your home requires a lot of cash for petty expenses. People prefer taking personal loans to meet these requirements for shifting their homes, mostly over long distances. Wedding expenses: Whether a bride or groom, their parents, or some close relatives are involved, a wedding comes with many unexpected costs that somehow burst out of the budget. In such times, people apply for personal loans. Vacation: Vacations can be planned or sometimes unplanned, but the cost of luxury experiences sometimes falls short of the budget. People take a personal loan for their immediate requirements and repay them later as per their capabilities. You can opt for a personal loan if you don’t have to compromise on a vacation. Personal/household purchases: Apart from these reasons mentioned above, people also apply for personal loans to purchase some appliances and electronic items for their household or to cover their automotive repairs. They don’t have to pay a huge amount altogether, as they can pay monthly EMIs at their convenience. You can apply for personal loans in your preferred banks or financial institutions for any similar needs. The interest rate for a personal loan The personal loan rate of interest ranges from 7.90% p.a. to 49% p.a. It depends on your credit profile. After that, the bank you are borrowing from, the amount you choose, your credit score, and your repayment tenure determine the rate of interest for your loan. How do I get the best interest rate on a personal loan? Maintaining a high credit score: Your credibility is the first factor that matters to banking institutions when determining your interest rate. You can maintain your credibility by improving your credit score. Avoid escaping a repayment: Always avoid missing any repayment for a loan or credit card, as it might affect your credit score negatively. Keep a check on all your EMI dates and keep the funds allocated in advance to avoid any late payments. Keep checking offers: Banks/financial institutions usually offer a lower interest rate during festival seasons. You can grab the offer and apply for personal loans. Interest rate comparison: Before applying for a personal loan, you should always compare the interest rates offered by various banks and institutions. You can choose the best bank based on the lowest rate offered and the highest credibility of the bank. Negotiation: You can always ask for a better interest rate from the bank executive. If you have been associated with a bank for a long time, they will surely provide you with the best offer as requested. [B-02] If you are a beginner with no idea about personal loans, this information must have introduced you to the basics of personal loans, why people prefer them, and the interest rate. For more information on personal loans, check out Piramal Finance today!

08-11-2023

Personal Loan

Is Balance Transfer A Good Idea For A Personal Loan?

These days you can avail of a personal loan instantly. But repaying it may be more complex than taking a loan, especially if you’re repaying more than one loan simultaneously. Frequent phone calls from the loan provider and the regular visits of recovery agents are every borrower’s nightmare. If you’re going through such a difficult situation, then a personal loan balance transfer is your solution. Let’s check what balance transfer is and how you can take advantage of it. [B-01] Personal Loan Balance Transfer The personal loan balance transfer allows you to move your outstanding balance to a new loan from another provider. Usually, the new loan will carry a lower interest rate. Here, the outstanding loan balance means the balance amount of the loan that you have yet to repay to your loan provider. The main benefit of a personal loan balance transfer is that it helps you manage your EMIs better by combining the outstanding amount of your multiple loans and bringing them under one loan. Advantages of Personal Loan Balance Transfer The key advantages of transferring the outstanding balances of your loans to another one are: Low EMI burden: After moving the outstanding balance of your existing loans to a new one, your EMI will reduce as the new loan’s interest rate will be lower. Therefore, you’ll feel less financial burden. As you start paying less on EMI, you may find some money left for saving each month. With this amount, you can save little by little for other goals, such as your child’s higher studies. Long repayment term: While doing the personal loan balance transfer, your new loan provider will give you a choice to increase or reduce the loan term. You can choose according to your wish. If you extend the repayment period, your EMI burden will decrease, leaving you with enough funds to meet your other needs. It’ll reduce your chance of taking further debt. Additional loan facility: Most personal loan providers offer a top-up facility along with the balance transfer. A top-up facility allows you to borrow more money from the loan provider at a lower interest rate. The top-up facility is a blessing for those with an immediate credit requirement. To avail of this benefit, you don’t need to provide any collateral. There are no restrictions to the end-use of the loan amount, i.e., you can use the amount as per your needs and wish. Better management of loans: Managing multiple loans is like handling a mess. Bringing them under one umbrella will help you to track various elements of the loan, like updates on interest rates, EMI repayment dates, outstanding amounts, etc., with ease. Other benefits: As you start paying the EMI regularly on time, your CIBIL score will also improve. CIBIL score is a 3-digit number that shows your creditworthiness. This score indicates how credible you’re in financial matters. It also tells whether you’ll be able to repay the debts on time. If you have a good CIBIL score, you’ll get loans at a lower interest in future across all loan types. Additionally, many loan providers offer zero processing fees, waiver of the last EMI, etc., with the personal loan balance transfer. Factors to Consider While Doing Personal Loan Balance Transfer While finalising the lender for the personal loan balance transfer, check the following factors: Before going for a personal loan balance transfer, check how much you can save in interest every month. For this, you can take the help of a personal loan balance transfer calculator. This free tool is readily available on the internet. Check whether there is any foreclosure charge associated with your existing loan. The foreclosure charge is the amount you need to pay when you close the loan before the loan tenure. Check the processing fees for the new loan. Read all terms and conditions of the balance transfer. It helps you to know all details about the transfer thoroughly and know if there is any hidden cost associated with it. Who is Eligible for a Personal Loan Balance Transfer A personal loan balance transfer has several benefits, but it’s only available to some borrowers. Loan providers consider the following factors before extending the facility to you: You must be a salaried employee working in any of the following: Private/public sector Partnership firm MNC Government institution Proprietorship business Your minimum salary must be ₹ 25,000 per month. You should have worked for at least 6 months with your current employer. Your age should be between 25 and 60. Though it’s optional, a decent CIBIL score will help to accelerate the transfer process. The minimum loan balance requirement varies from one loan provider to another, but most providers ask for a minimum balance of ₹ 50,000. Documents Necessary for a Personal Loan Balance Transfer You must produce the following documents for your personal loan balance transfer. Statement of the loan you’re planning to transfer PAN Card Address and identity proofs The recent salary slip Bank statement for the last 3 months If you have a co-applicant, then all the above documents of that person. [B-02] Conclusion The personal loan balance transfer is a suitable method to decrease your debt burden as it helps to reduce your EMI. Also, it allows you to adjust the tenure of the loan according to your comfort so that you can repay the loan regularly without failure. As a result, you can come out of the debt burden soon and will be able to meet all your financial needs without borrowing further. While going for a personal loan balance transfer, always select a reputed loan provider like Piramal Finance. It ensures better service and competitive interest rates. You can avail of personal loans from Piramal Finance at zero prepayment and pocket-friendly EMIs.

08-11-2023

Know More

Overview of the Insurance Industry in India

Want to know about the insurance industry? How does the insurance industry work? What are the current and future trends in the insurance business? In the last ten years, India’s insurance industry has grown a lot and a lot of new, high-tech products have been added. This has led to tough competition that has turned out to be good for everyone. The insurance sector in India is very important to the health of its economy. It gives people a lot more chances to save money and protects their future. It helps the insurance industry create a huge pool of money. With these funds, the insurance industry makes a big contribution to the capital markets. Which helps India build and bigger infrastructure. Here is some important and relevant information: go check [B-01] The Insurance Market in India and How it works? Most of the Indian insurance market is made up of life insurance and other types of insurance. The non-life insurance market is also called ‘general insurance.’ IRDA is in charge of insurance for both life and other things (Insurance Regulatory and Development Authority of India). IRDA’s job is to keep a close eye on the entire insurance industry in India and to protect the rights of all insurance customers. This is why all insurance companies must follow the rules and regulations set by the IRDA. The insurance sector in India is made up of 57 insurance companies that make up the sector. Only 24 of these companies offer life insurance. The other 33 offer insurance for things other than life. There are seven businesses that the government owns. Life insurance companies cover people’s lives, while non-life insurance companies cover things we do every day, such as travel, health insurance, our cars and bikes, and home insurance. Not only that, but the companies that don’t cover life also cover our industrial equipment. India’s general insurance companies offer more types of insurance, such as crop insurance for farmers, gadget insurance for mobile phones, pet insurance, and so on. In recent years, life insurance companies have started to offer investment plans. They can protect you and help your savings grow at the same time. But general insurance companies are still reluctant to sell people pure risk coverage. What is a Premium for Insurance? The insurance company says that a person or business must pay a certain amount of money to them regularly as a premium to get and keep their insurance policy and coverage. When figuring out life insurance premiums, insurance companies take a lot of things into account. These things include the policyholder’s health, whether or not they smoke or have other bad habits, where they live, what they do for a living, and so on. How Do You Figure out the Insurance Premium? You can always find a good insurance premium calculator to help you figure out the premiums, but the way the premiums are calculated also depends on several other things. Age Where you live How the job is done Health problems and the past Smoking and other habits of life Chances that the insured person will file a claim Income How tall and how heavy Marital status and dependents High-risk hobbies for men and women World history of travel Debts India has many different kinds of insurance plans In India, you can get the following kinds of insurance: 1. Insurance for everything Here are a few types of general insurance that you can get in India: Health care coverage Insurance for cars Home Insurance Fire Insurance Travel Insurance 2. Life Insurance The most common types of life insurance plans in India are as follows: Life Insurance for a Term Unit-linked insurance plans and whole-life insurance plans with savings plans Plans for Kids Pension Plans Let’s take a closer look at the different kinds of insurance: Insurance in general General insurance policies are one kind of insurance that offers coverage in the form of a sum assured for losses other than the policyholder’s death. Overall, general insurance is made up of different types of insurance policies that help pay for losses caused by things like bikes, cars, homes, health, and similar liabilities. These are the different types of general insurance policies: Health care coverage Health insurances are types of insurance policy that pay for medical care costs. Health insurance plans either pay for the cost of treating an illness or injury or give you money back for what you spent. Different kinds of insurance cover different kinds of medical costs. Most of the time, it protects against: a) Hospitalisation b) Care for life-threatening illnesses c) Medical bills after a stay in the hospital d) How daycare works Insurance for cars Motor insurance is a type of insurance that helps pay for damages if your car or bike gets into an accident. Home Insurance As the name suggests, a home insurance policy protects both the things in your house and the house itself against any physical damage or destruction. In other words, this type of insurance will cover any disaster, natural or man-made, like a fire, an earthquake, a tornado, a break-in, or a robbery. Fire Insurance Fire insurance policies are different kinds of insurance coverage that pay a sum assured for any losses that happen because of a fire. Most of the time, these types of insurance policies cover a lot of money to help people and businesses get back on their feet after a fire does a lot of damage. These kinds of insurance cover the risk of war, as well as losses from chaos and riots. [B-02] Conclusion In India, the insurance industry is made up of a group of insurance companies that offer insurance contracts to protect people from risk. The contract is an agreement between the insurer and the insured. The insurer agrees to pay for an unknown event in exchange for a regular premium from the insured. The contract says what the premium is. Insurance is a way to protect people and things from losses that are hard to predict. Life insurance is designed to protect the person you leave your money to financially if something bad happens to you. When compared to other financial sectors. Insurance is seen by investors as the slow-growing and safe one. The necessary information is given above. Make your choice wisely according to your preferences. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also visit, Piramal Finance has more in-depth, educational articles.

08-11-2023

Home Loan

Current Interest Rates For Home Loans in 2022

Everyone dreams of buying a house and making it a home filled with happy memories or using it as a good investment to make a profit based on the increasing real estate prices. Buying a home in India can prove to be expensive, as the real estate rates are rising with every passing day. For an individual who is thinking of starting a family, one of the most pressing issues is having a home where they can live peacefully without having to pay rent every month. One of the ways to buy a home is to use your hard-earned life savings, but that can leave you with an inadequate amount for other future expenses such as education, marriage, etc. This is where a home loan comes in, which requires you to understand everything about the current interest rates for home loans. [B-01] What are the current home loan rates? A home loan is a loan product offered by financial institutions such as banks and NBFCs to individuals looking to raise external funds to buy a home. The home loan requires the borrower to make a small down payment, and the lender provides the remaining amount as a loan to the borrower. The borrower can only use the home loan amount to buy the home, with the purchased home working as collateral until the borrower repays the loan amount. However, similar to other types of loan products, lenders charge current home loan rates, called home loan interest rates, on the provided principal amount. Borrowers who take out a home loan are legally obligated to repay the principal amount as well as the current interest rates for home loans to the lender within the loan tenure.Current home interest rates or current interest rates for a home loan are interest rates charged by lenders based on prevailing market conditions and other loan factors. These current interest rates for home loans fluctuate regularly as the real estate sector changes its trends based on market conditions. However, numerous other factors affect the borrower’s current home interest rates. Factors Affecting the Current Interest Rate for Home Loans You may have witnessed that the prices of homes in India have increased significantly in the past decades, pushing individuals to seek a higher home loan amount. The same is the case with lenders, who have created home loan products that come with the facility of offering a higher loan amount to individuals. However, market factors that are influencing the prices of homes are also contributing to the current interest rate for home loans. Here are some market and loan factors that affect the current home interest rates: Home Prices: The prices of real estate in India are always rising, forcing individuals to seek a higher home loan amount than in previous years. Since the applicant applies for a higher loan amount, it creates a risk for the lenders, as they may incur losses in cases of default. Hence, lenders charge higher interest rates, increasing the overall current home interest rates. Demand: Home loans have become one of the most widely used loan products for individuals who are looking to buy a home in the current market ecosystem. Since the prices are high, more individuals are applying for home loans from quality NBFCs and banks. The increased demand for home loans pushes the current home loan rates higher. The higher the demand for home loans, the higher the current interest rates for home loans in India. Location and Value: The price of real estate in India changes based on the value and the location. For example, a house in a metropolis will have a higher value than a house in a rural or undeveloped city or area. Hence, the current home loan interest rates are higher where the value of houses is higher, while the current home loan rates are lower in areas where real estate prices are lower. Current Interest Rates for Home Loans Current home interest rates are one of the most important loan factors when you apply for a home loan. It is because you have a legal obligation to repay the principal amount plus interest to the lender through monthly EMIs. Hence, it becomes vital that you compare lenders based on their current home loan rates to ensure that you are getting the best current home loan interest rates that are affordable and do not create a financial burden at the time of loan repayment, avoiding the chance of default. When it comes to the current interest rates for home loans in India, every lender charges different current home interest rates based on the eligibility criteria of the borrower and other loan factors, such as the applied home loan amount and the loan tenure. Usually, the current home loan rates range between 6.50% and 13%, depending on which lender you choose. Some lenders also base their current home interest rates on the prevailing repo rate set by the RBI. [B-02] Conclusion Home loans are one of the ideal loan products to allow individuals to raise immediate and adequate capital for fulfilling their dreams of buying a house. You can visit the websites of various lenders to analyse their current home loan rates and other home loan terms, compare various home loan products, and choose an ideal one. Since the current interest rates for home loans are the biggest factor in loan repayment, your lender’s current home interest rate must be the lowest or the most affordable, depending on the other loan terms. For a comprehensive and affordable home loan, you can visit Piramal Finance.

08-11-2023

Business Loan

What Are the Different Types Of Secured Business Loans You Should Know About

Secured business loans are the perfect business financing solution for small- or medium-sized businesses. They are often used when a business needs to pay a large purchase or increase its working capital. A firm can use them to get cash when its suppliers are low on stocks or when it has burned through its reserves. Many people are unaware of the different types of secured business loans out there. It is pretty easy for businesses to get into a financial mess. This article will look at different types of secured business loans, their benefits, and what you must consider when applying for a loan. [B-01] What is a Secured Business Loan? Secured business loans are described as a form of financing. Typically, small companies seek them. These loans are secured with personal guarantees. They can also be secured by offering assets or property as collateral against them. The borrower gives the collateral as a guarantee to the lender for the repayment of the loan. This also means that the lender can transfer the collateral into custody if the borrower cannot repay the loan. A secured loan has a longer repayment time than unsecured loans. The interest rate on secured loans is also relatively lower than that of unsecured loans. Features of a Secured Business Loan Collateral RequirementThis is one of the most vital features of a secured business loan. Secured loans are called so because they are secured by way of collateral.The borrower must offer some asset or property to the lender as collateral against the loan. The lender can take custody of this collateral if the borrower cannot repay the loan amount. Lower Interest RatesInterest rates are lower on secured business loans as compared to unsecured business loans. Here, the bank has a comparatively higher level of confidence that the borrower will be able to repay the loan. Eligibility for Higher Loan AmountThe borrower is eligible to secure a larger loan amount in the case of secured loans. They can secure a loan amount from Rs. 10 lakhs up to Rs. 20 crores, depending on their business requirements. Quick ApprovalsSecured business loans are also approved quickly because one pledges some asset or property as collateral against the loan, so the bank feels more confident in offering them a loan. No RestrictionsThere is no restriction on the usage of secured business loans. They can be used for a variety of purposes, including: Business growth and expansion. Equipment purchases. Office space or land purchases. Rent or salary payments. Stock purchases Inventory expansion. Debt reduction. Staff recruitment and training, and more. Loan Tenure: The repayment tenure in secured loans is also higher as compared to unsecured business loans. The repayment tenure for secured loans can go up to a maximum of 15 years. Types of Secured Business Loans Secured Term Loan: The most popular form of finance for business is the term loan. The loan can be secured or unsecured in the sense of. The amount of loan available is contingent on the credit history of the company. The term can be for a period of 1-5 years in the case of unsecured loans or 15-20 years for secured business loans. The term loans are used for a specific reason usually for capital expenses. The lender will pay the business the loan amount all at once. Equipment/Machinery Finance: Manufacturing businesses frequently select equipment finance or machinery loans. The operation of manufacturing units requires the use of costly machinery. In addition, equipment financing is the option for business loans to fund the purchase of machinery. This is owing to the unique characteristics of machinery loans, which call for the use of both additional security and the relevant equipment as collateral. The interest rates might not be as high as those for term deposits. Invoice Discounting: Invoice financing can also be referred to as invoice discounting or factoring. This kind of financing is a great option for small-sized businesses which have a time gap between generating invoices and receiving payment from customers. The institution can provide cash against the amount that is raised on the invoice. The lender can finance up to 80 per cent of the invoice value. When the company receives the money, it pays the debt according to the stipulated tenure and rate. Working Capital Loan: These are the kinds of small business loans that are taken to cover the need for cash needed to run an enterprise daily. They provide a balance to the cash flow that is essential for running an enterprise. It is also useful to cover a deficit of cash in times of low demand or meet demand during the high-demand season. The majority of applicants are manufacturers, service providers wholesalers, retailers, and traders involved in exports or imports. Loan Against Property for SME: Companies with substantial financial needs may choose to apply for SME loans backed by property. In this situation, the applicant will have to mortgage their property to get the cash they need for business expenses. Residential or commercial property may be utilized as collateral against the loan. Up to 70% of the property’s current market value may be financed by the lender. The title to the property shouldn’t have any liens or other encumbrances. The mortgaged property should also not be the subject of any legal problems. [B-02] Conclusion Before applying for any loan product, you should know your options. Business owners who need working capital consider secured business loans as a viable option. This type of loan is available to business owners who have adequate collateral to back up their loans. These loans help you to expand your business and also use these funds for improving the profitability of your business. There are many types of business loans available that suits different requirements of your business. To finance your business, it makes sense to consider applying for a secured business loan. Visit Piramal Finance to know more about loans and methods to obtain loans.

08-11-2023