More articles for you

Your one stop place for everything related to finance and lending

Personal Loan

is Loan against shares A Good Idea?

Unforeseen needs can put you in urgent need of cash. In such a situation, you may think of selling your securities to obtain funds. However, you can pledge your securities and obtain a loan against shares to fund your needs. Read on to learn more about this loan. [B-01] What is Loan Against Shares? Loans against shares are taken against financial assets like shares, mutual funds, or life insurance policies. The financial assets serve as collateral for the bank. A loan secured by shares enables customers to make better use of their financial resources. It also stops people from selling their shares in a hurry during times of need. The maximum loan amount they may guarantee with their shares depends on how many shares they own and which bank they are borrowing from. How Can I Get a Loan Using My Shares as Collateral? When clients pledge shares as collateral for a loan against stocks, the bank gives them access to an overdraft facility. The applicant is responsible for paying interest only on the withdrawal amount. Eligibility If you meet the following eligibility requirements, you may be eligible for a Loan Against Shares. Age: You should fall within the range of 21 and 70 years. Credit Score: Your credit score should be at least 700 according to CIBIL. Nationality: Indian nationals can apply for this loan. Benefits of Taking a Loan Against Shares Easy access to high-value loans: For loan against shares of up to Rs. 10 crores, you can use your shares, mutual funds, FMPs, ESOPS, IPOS, and bonds as security. Lower Interest Rates: A loan secured by securities of any kind has a lower interest rate than the bulk of unsecured loans and credit cards. As a result, when applying for a loan, debtors may pledge the shares as security. Based on your stock profile, the interest rate on a loan against shares could be as low as 10.5%. You can thus meet your needs with the low-interest rates of loans against shares. Continuing returns and dividends: In the case of loans against securities, the units remain in the market, allowing you to reap the full benefits of your investment. The lender has no control over these payments, regardless of whether it is a dividend from preference shares or interest income from a bond. As long as you keep up with your repayment obligations, you can keep getting returns on your assets. Simple processing: The eligibility for a loan against shares is not based on any documentation of income or creditworthiness. Given that they are secured loans, the lender bases all of the terms of the loan against shares, including the interest rate and tenure, solely on the stock list and its value. This makes the loan approval procedure easier. Additionally, you will receive the loan money in two or three days. As a result, many borrowers in need of immediate cash find loan against shares as a practical option. Quick funding for your urgent matters: Unexpected expenses arise that require immediate money. It can be difficult to arrange enough money during emergencies. Selling off your assets and investments could seem like a practical decision in such circumstances. However, instead of selling your stocks, you can apply for a loan against securities. These loans offer 24-hour approvals and 48-hour disbursements in order to receive immediate funds. You may meet your needs for personal and professional demands with a quick application and disbursal process. Improved ROI on your holdings: You’ve constructed your investment portfolio with a diversified mix of different assets in mind, with both short-term and long-term returns in mind. These investments have the potential to develop and produce large returns over time if left unattended. Consider the situation where you sell your shares before they mature or when unfavourable market conditions may cause you to forfeit future gains. A loan against securities can help you in this situation. While your equity holding continues to get its fair share of market earnings and dividends, you can simply pledge your investments to obtain money. Borrow against a variety of securities: Even though your investment portfolio is diversified, you can still opt to use only particular stocks as collateral. For instance, you wouldn’t want to pledge an investment like an FD for a loan if it provides the monthly returns you want to pay for household costs. You could instead decide to pledge your bonds or even shares. Any security, including fixed-term savings, mutual funds, or insurance, may be used as collateral for this loan as long as its minimum value i Rs. 10 lakh. Convenient terms for repayment: You can obtain a loan against your valuable securities and equity holdings with simple repayment terms. Lenders give you the option to foreclose on the property or make partial loan prepayments. Make sure you select the appropriate lender and select the securities you want to pledge. [B-02] Conclusion To conclude, pledging your securites as a collateral for loan against shares is definitely a good idea based on the benefits mentioned above. The process of applying for a loan against shares is relatively easy. It also comes with a lower rate of interest as it is a secured loan. Another amazing benefit of taking a loan against stocks is that you continue to receive returns and dividends on shares as they are still held by you. For any finance-related queries, feel free to visit Piramal Finance for expert guidance. They offer a wide range of loans to help you meet your urgent needs. They have many articles and blogs on a range of topics to help improve your finance skills.

08-11-2023

Crytocurrency

What to Know About Investing in Crypto-Currency

Do you plan to make a cryptocurrency investment? Any idea where to start investing among the thousands of different cryptocurrencies, including Bitcoin, Dogecoin, Litecoin, XRP, and Ethereum? Are you unsure of where to start? Don’t worry. You can easily meet your financial needs by investing in cryptocurrencies. This article contains detailed information on the various types of cryptocurrency investments. [B-01] Cryptocurrency is a decentralised digital currency. It operates independently of central authorities, like banks. It’s a global payment network that allows users to send and receive funds directly from one another. Payments made using cryptocurrencies are digital entries in a digital database that detail particular exchanges. Every cryptocurrency exchange is catalogued on a public ledger. Cryptocurrency is kept in digital wallets. The term “crypto” derives from the fact that transactions involving cryptocurrencies are validated using private encryption keys. Encryption is used because it increases safety and security. Bitcoin continues to be the most well-known digital currency. It was incepted in 2009. One of the main reasons people are interested in cryptocurrencies is to make a profit by trading them. This can cause prices to skyrocket due to speculation. Different types of cryptocurrency investing One option is to just buy and keep one or more cryptocurrencies. You can choose from well-known cryptocurrencies like Ethereum and Bitcoin or coins with little to no history that was introduced as part of an initial coin offering (ICO). Invest in blockchain startups: It is possible to put money into businesses which focus mostly or entirely on the Bitcoin market. You can choose from many different businesses. These include cryptocurrency mining firms, mining hardware manufacturers, cryptocurrency-friendly businesses like Robinhood Markets Inc. (HOOD) and PayPal Holdings Inc. (PYPL), and many more. MicroStrategy Inc. (MSTR), for example, has a significant quantity of Bitcoin on its balance sheet, which means it is a good candidate for investment. Put your money into cryptocurrency-focused mutual funds. Instead of investing in a variety of different cryptocurrency markets, you can put your money into a single fund that specialises in the industry. Besides other cryptocurrency investment trusts, you can invest in various exchange-traded funds (ETFs), such as index funds and futures funds. A Roth IRA that accepts Bitcoin investments Consider opening a Bitcoin Roth IRA if you want to invest in the cryptocurrency market and take advantage of the tax benefits associated with IRA investments. This will provide a safe place to keep your Bitcoin and help you keep your assets safe. Get into the coin mining or validating business: Mining Bitcoin or serving as a validator in a blockchain network is one of the most hands-on ways to put money into the market. As a reward for their efforts, miners and validators receive cryptocurrency that they may either keep as an investment or trade for another currency. How to acquire virtual currency The question of how to buy cryptocurrency securely may have crossed your mind. There are three stages as follows: The first step is selecting a medium The first thing to do is settle on a system. If you want to buy or sell cryptocurrencies, you can use either a regular stock broker or a cryptocurrency exchange. Common stock brokers These are the websites where you can buy and trade cryptocurrencies like Bitcoin and Ethereum, as well as other financial assets like equities, bonds, and ETFs. These exchanges provide cheaper trading prices but lack advanced cryptocurrency options. Money transfers in cryptocurrency There are numerous cryptocurrency exchanges to choose from, each of which may specialise in a particular cryptocurrency, offer wallet services, interest-bearing accounts, and much more. Asset-based fees are common at several Cryptocurrency marketplaces. Think about the cryptocurrency market you’re interested in, the platform’s costs, security features, storage and withdrawal choices, and any educational resources it may offer as you evaluate your alternatives. The second step is account funding After choosing a platform, fund your account to trade. Most crypto exchanges let users buy crypto US dollar, British pound, or Euro using debit or credit cards. Some exchanges don’t allow credit card purchases because they’re hazardous. Cryptocurrency markets are volatile, so it’s unwise to risk debt or high credit card transaction costs for them. Some systems accept ACH and wire transfers. Payment methods and withdrawal times vary by platform. The method of payment influences the time it takes for a deposit to clear. Fees matter. These include trading and deposit or withdrawal fees. Start by researching payment methods and platform fees. The third step is ordering The internet or a mobile app is all you need to place an order with your broker or the exchange. Select “buy,” select the order type, input the quantity, and complete the order if you wish to buy some cryptocurrency. For “sell” orders, the procedure is identical. Users can buy, sell, or keep cryptocurrencies on platforms such as PayPal, Cash App, and Venmo. Additionally, the following investments are available: Bitcoin confidences: Shares of the Bitcoin Trust can be bought with a typical brokerage account. Through these vehicles, regular individuals can get exposure to the stock market and cryptocurrencies. Shares of companies that deal in Bitcoin: Bitcoin investors can choose from exchange-traded funds (ETFs) and mutual funds (MFs). Bitcoin and other cryptocurrencies: Cryptocurrency markets are another avenue for investing in crypto on a more roundabout basis. You can also invest in blockchain-related businesses by purchasing their stocks or exchange-traded funds. [B-02] Summing-up: The purpose of this article is to give a comprehensive examination of cryptocurrencies. You should choose wisely whether cryptocurrencies are the right choice for you or not. While paying off a big debt or taking advantage of luxury needs might sound worthy, it is also important to be aware of the other side of the coin. Invest in the cryptocurrency market, compare interest rates and features and get the best deal. 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, Piramal Finance has more in-depth, educational, financial-related articles.

08-11-2023

Personal Loan

How is it Possible to Get a Personal Loan Without Documents

A personal loan is an unsecured loan or debt. It provides cash to fulfil your personal needs. These could be family responsibilities, career or home improvement. These could also be major purchases or emergency type of situations. These types of loans are unsecured. They usually have a short span of around one to five years. A borrower does not need to provide any collateral. This is why personal loans have obtained popularity as the best approach to loan money. [B-01] This is for a wide variety of purposes. These loans involve a lot of paperwork and documentation to get sanctions and approval. Cashless transactions are taking centre stage in India’s financial cycle. This is because of ongoing digitization. Digitization started with demonetization. Financial institutions are also trying hard to implement new technologies. These will eliminate the need for physical documents. Technology has made it quite easy to go paperless. It has digitized a lot of things. This includes financial transactions also. There is no requirement for any documentation. Now one does not have to collect countless documents. They don’t need to visit financial institutions to sanction loans and get approval. They can now avail of personal loans without documents. This can be done with a quick sanction process. This is an ideal experience. Even the loan application process is available online mode now. The applicants are required to submit documents in a digital format. They can do this by uploading scanned copies. There is no need to submit paper documents. Benefits of a personal loan without documents The entire process of availing of a personal loan is faster now. This is because of digital platforms. It is also more efficient. This is much better than visiting traditional banks. This process includes everything right from loan application to loan sanction and disbursement. These online digital platforms are designed in a way to assess the loan application. They do this by evaluating your personal and financial data. Let us list some of the benefits of availing of personal loans without documents. No physical papers or documents are required. This helps save paper and trees as well. It’s a hassle-free process. It lessens the need for hefty paperwork. It also saves tons of signatures on separate forms. There is also no need for frequent visits to the banks. Your personal and financial data is safely stored on the digital platform. These platforms go through strict security testing. They follow certain security protocols mandated by the banks. This process offers simple and convenient applications. This saves time and resources. The whole procedure is completely digital. So it saves time and fuel. It also saves frequent human interventions. Eligibility criteria for a personal loan without documents Anyone can apply for and get a personal loan. They can do this only if they meet the eligibility criteria of the lender. Below are the criteria to qualify for a personal loan: You must be of Indian nationality. Your age must be between 21 to 60 years when you apply for the loan. Your credit score or CIBIL score must be 750+. Your monthly income must be at least 25k per month. This is for both salaried as well as self-employed, Some lenders require you to be employed for at least 12-24 months at the time of applying for the loan. It is much easier for regular existing lenders to avail of personal loans without documents. This is because they already have KYC details, PAN, address proof, income details, loan repayment history, etc. Lenders also provide pre-approved personal loans to their select customers. This offer is based on their CIBIL score. The credit profile of those customers is pre-verified. This allows them to disburse loans within no time. This is done without any documentation. Procedure to avail of a personal loan without documents Below are some important things to keep in mind to avail of a personal loan without documents: Approach lenders/banks that you maintain a relationship with: Loyalty and trust go a long way in the financial world. This is especially true when it comes to borrowing credit. It is very important to win long-term lender trust. This can easily earn you documentation-free personal loans. The lender might have access to your personal and financial information. So they may not require additional documentation. Lenders might have some pre-approved offers on the loans as well. This will be based on your credit profile. Ensure a strong credit/CIBIL score: Personal loan approvals strictly require credit score evaluation. This is because these are unsecured loans. This score represents creditworthiness. This also shows your previous repayment history. Try to have a higher credit score/CIBIL score. This ensures easy approvals of personal loans. This is sometimes even with lower interest rates and reasonable processing charges. Maintain a healthy debt-to-income ratio: A debt-to-income ratio is defined as the percentage of a customer’s monthly income going towards debt repayments. The less this ratio, the easier and quicker the loan approval process becomes. This indicates that you have an excellent source of income. It also shows that your repayment capacity is outstanding too. Repay all existing loans and dues and bills on time: Ensure to pay your loan EMIs, credit card and other bills, etc on time before the due dates. This will help you secure personal loans without documents. This will also help you secure any type of loan in the future. Bad credit scores affect loan approvals and sanctions. So do bad repayment histories. You should ensure timely repayment of dues and bills. This makes you trustworthy. It also helps you maintain a good relationship with lenders. [B-02] Summing up It is not at all impossible getting a personal loan without documents. This is possible only if you have a healthy CIBIL score. You should also have a low debt-to-income ratio. It is highly important to earn the trust of lenders. This proves your creditworthiness. Piramal Finance is an excellent financial institution for all your financial needs. These range from loans to other financial services. Their experts will assist you with everything regarding availing of personal loans without documents. Without wasting another minute, visit this website – https://www.piramalfinance.com/personal-loan and get a hassle-free personal loan without documents! 🙂

08-11-2023

Personal Loan

How can individuals approach a bank to get a personal loan in India?

If you are salaried, there can be events, situations, and emergencies that do not fit your budget. Personal loans play a vital role in such cases and emergencies. These loans can be used for weddings, medical emergencies, or other purposes. Personal loans help you arrange a significant amount of money with a simple procedure. However, you need to know a few things before getting a personal loan in India. [B-01] What is a personal loan? A personal loan (instant or instant personal loan) is a loan you can take from a financial institution. A bank can provide you with a loan at a fixed interest rate to meet personal financial needs like weddings, education, or any other emergencies. Usually, personal loans are referred to as unsecured loans. In personal loans, applicants don’t need to provide security against borrowed money. The borrower agrees to pay a fixed interest rate within a specific time through installments. Documents required to get a personal loan in India Getting a personal loan in India is easy when you have a well-maintained credit profile. When you want to take a personal loan, make sure you have the following fulfilled: Credit score A credit score is a three-digit figure ranging from 300 to 900. A credit reporting firm gives you the score after analysing your credit profile. People who want a personal loan in India must have a high credit score. This is possible by timely meeting financial responsibilities. You require a credit score of at least 700. However, it should be 750. Your credit score decreases if you miss a payment on a loan or any installment. That might be a challenge when you need a personal loan. Job/employment To get a personal loan in India, you should keep in mind that the financial institutions give you a loan according to your ability to pay it back, keeping your income stable. If you are salaried, you must show the last six months’ salary slips while applying for the loan. The bank gives you a loan on your ability to pay back the interest. You must be actively running your business for 3 years or more if you are self-employed. Your company’s income tax returns are checked and evaluated to check your ability to repay. Age requirement Personal loans are available to consumers of legal age who apply to financial organisations. An individual’s age can vary from 18 to 65 years to take a loan. Though, banks and lenders may have their age limits. Loan tenure/duration Personal loans are also called short-term loans. It means you need to them pay off in a short period. Personal loans in India are usually given for 12 to 60 months. Based on your loan duration, your monthly installment amount changes. Installments are generally higher for short-term loans and lower for long-term loans. Loan amount There is no limit on how much loan you can acquire with personal loans. It depends on your income and existing liabilities. A financial institution analyses if you can afford the monthly installment without risking other costs. Usually, it should not exceed half of your income. Non-banking financial organisations that enable smaller personal loans provide a minimum loan of INR 3000. Banks only give a minimum loan amount between INR 30,000 and 50,000. Step-by-step process to get a personal loan in India You can visit the bank or apply online to complete the personal loan application process. In both cases, digitalisation has made it possible to evaluate loans and the fees attached to them in advance and make an appropriate choice. Applying for a personal loan in India involves the following steps: Choose your lender The criteria determining which lender is best for a personal loan are eligibility, fees, dependability, and compatibility. Decide on a personal loan Once you have decided on your lender, you may pick the loan they are providing by weighing the interest rates and other taxes. Documents required You must keep the following documents ready to complete the documentation: For identification proof, you need an Aadhaar card, a PAN card, a driving licence, and a passport. For residential proof, you need an Aadhaar card, water & energy bills, and a driving licence. For income proof, you need your salary slips. Lastly, you need your photographs. Send in your application Once you have all the documents ready, you can apply either ways: Offline: By visiting the financial institution’s main office or the branch granting you the personal loan. Online: By submitting your application on the lender’s website. You can provide all the necessary information using digital know-your-customer documentation. The majority of financial institutions accept legally binding records. Final words Before applying for a personal loan and making sure it gets accepted, you must follow the above-mentioned points. Piramal Finance is an Indian financial services company that provides various loans. For example, personal, business, housing, and other financial products. Visit the company’s website for a simple and seamless instant personal loan process. [B-02] FAQs What is the procedure for getting an instant loan? The lender will usually respond within minutes and put funds into your bank account If you are approved. However, it may take a business day or two, or even longer, to get the funds. What are the requirements for an instant loan? Instant loans are often not subject to a credit check. To get an instant loan, you must provide your details, be 18 years or above, have identity proof, provide income proof (e.g., a pay slip), and have a bank account.

08-11-2023

Investment

How Do ULIPs Meet Your Insurance And Investment Needs

ULIPs, or Unit Linked Insurance Plans, are hybrid financial instruments. They help you get a safe life cover while adding to your investments’ corpus. ULIPs help meet your future financial needs, such as retirement funds, children’s schooling, and medical bills. [B-01] What Is a ULIP? A ULIP plan is a good way to invest and get life insurance. A part of your monthly contribution to a ULIP goes toward life insurance coverage and the rest into mutual funds or stocks, as specified. So, a ULIP provides a passive income source while protecting your family in the event of your demise. How do ULIPs work? Before using ULIPs to engage in the capital market, you must choose:a. The level of life insurance.b. Premium amount and payment method.c. Policy terms to meet your financial security.d. Savings objectives. Selection of the frequency of premium is upto you. You can choose from the upfront, lump sum payment option and recurring payments on an annual, biannual, or monthly basis. Your payment includes a percentage that goes toward a life insurance policy. The remaining part of your premium may be invested in the stock market using equity, debt, or hybrid funds, depending on your choices. Equity puts your money in stocks. Debt funds invest in secure assets like bonds and government instruments. Hybrid funds balance the security of debt funds and the high-return potential of equity. The cash invested in these funds determines the value of your coverage. Long-term investments boost your chances of making higher profits. Suppose an accident occurs during the insurance period. Your nominee will get the guaranteed sum to pursue their goals. ULIPs: The Insurance Element In ULIPs, policyholders are entitled to maturity rewards if they are alive after the policy term is complete, and they have made regular premium payments. You need to submit the discharge form and the necessary supporting papers. You become eligible to receive the amount after filing the necessary paperwork. Potential bonuses and loyalty benefits are also offered in certain cases. If the policyholder dies during the policy term, the insurance money would go to the nominee along with any other dues. ULIPs: The Financial Element When investing under ULIPs, a fraction of the total sum is meant for investment. The procedure under ULIP offers a high degree of freedom based on your needs. You can choose between bond, equity, and diversified funds. Professional, well-trained fund managers are in charge of the money used for investments. You may choose from various fund alternatives including debt, equities, etc. Each of these investment alternatives has a different amount of risk. A greater risk would mean a bigger possible return. When selecting investment choices, consider your requirements and level of financial stability. Evolution of ULIPs Over the last 10 years, there have been many big changes in the Indian stock market. These have also affected how ULIPs are put together. ULIPs before 2010 When ULIPs first entered were introduced, they did not gain much traction. This was because of the high up-front costs and extra charges. At that time, ULIPs were also presented as a three-year savings plan. Investors were also not clear about the lock-in period because there was a lack of information related to ULIPs. ULIPs from 2010 to 2015 As soon as IRDAI discovered that ULIPs were being offered to consumers, it created a set of rules. These rules ensured that investors’ returns were protected and remained steady. So, ULIP costs were reduced as compared with those in 2010. Also, the time the period for which an investor had to stay put was set at five years. ULIPs in 2015 In 2015, there were several big changes to the fees for ULIPs. There were limits on the morality fees and the costs of running the funds. After that, investors found ULIPs more appealing and tempting. Benefits of ULIP ULIP offers the possibility of making handsome long-term returns to investors. ULIPs invest in various assets including debt, equity, and balanced funds. Here are a few other advantages of ULIP plans: Life insurance: ULIPs provide life insurance coverage. This helps secure the financial future of your loved ones in case of your untimely demise. Investment opportunities: ULIPs allow you to invest your money in various asset classes like equity, debt, and balanced funds. This lets you choose an investment option that suits your risk appetite and financial goals. Tax benefits: ULIPs offer tax benefits for the premiums paid under Section 80C of the Income Tax Act, 1961. The maturity and death benefits are tax-free under Section 10(10D). Flexibility: ULIPs offer flexibility in switching between different investment options and altering the sum assured as per your changing financial needs. Long-term growth: ULIPs are designed for long-term investments and if managed well, can generate higher returns over the long term than traditional life insurance policies. Overall, ULIPs provide a unique combination of insurance and investment. This makes them a popular choice for investors looking to build wealth while also getting a life cover. Which is the Best ULIP? Once you understand all key aspects of ULIPs, the next step is to select the one that is best for you from the available options. The following are some crucial factors to take into account. While choosing the best ULIP plan: Could you review your objectives? What is the life cover amount you need? Do you have a long-term investment horizon? Is your goal to maximize tax savings? [B-02] Conclusion In conclusion, ULIPs are an attractive investment option for those looking for a mix of life insurance and investment opportunities. They provide tax benefits, flexibility, and long-term growth potential. With a range of options available, you can choose the right option to meet you financial goals and manage the risk appetite. However, it is important to note that ULIPs come with various charges that can impact returns. So, you must be aware of these charges before making a decision. For more information, on ULIPs and other investment options, visit Piramal Finance.

08-11-2023

Know More

Are You Eligible For Opening A Jan Dhan Yojana Account? Find Out Here

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a popular scheme that has paved the road for future economic initiatives. It has helped millions of people from rural areas and marginal communities gain access to banking and opened the door to access other government initiatives easily. But what is a Jan Dhan Yojana account, and is it really beneficial for you? What are the eligibility requirements for the Jan Dhan Yojana Scheme? How can you open a Jan Dhan account? To get the answers to these questions and more, read the below article to get a brief understanding of the Jan Dhan Yojana. [B-01] What Is Jan Dhan Yojana? The Ministry of Finance launched the Pradhan Mantri Jan Dhan Yojana in 2014 to provide affordable access to financial products and services. It is meant for those who haven’t opened any bank accounts. Using online technology to scale back expenses and reach a wider audience, the Jan Dhan Yojana has brought over 43 crore beneficiaries under formal banking since its inception. The Jan Dhan Yojana aims to provide the following benefits: Universal access to bank-related services Basic savings accounts with a 10,000 rupee overdraft available to all eligible adults Financial Education Program- encouraging savings, utilising ATMs, obtaining insurance and pensions, and using simple mobile phones for banking. Creation of a Credit Guarantee Fund to provide banks with a guarantee against defaults Benefits Of The Jan Dhan Yojana 1. Mobile Banking Due to online banking, you don’t have to visit your bank’s branch to manage your funds repeatedly. The Jan Dhan Yojana allows you to conduct several transactions using your smartphone or a regular phone. 2. Banking The Unbanked The Pradhan Mantri Jan Dhan Yojana provides a basic savings deposit (BSBD) account with minimal paperwork, simplified KYC, and e-KYC. In addition, the account has zero charges and no requirements for a minimum balance amount, allowing you to realise interest over time. 3. Insurance Benefits The Jan Dhan Yojana also ensures an accident insurance cover of up to Rs. 1 lakh (enhanced to Rs. 2 lakhs for new accounts opened after August 28, 2018), accessible with the Rupay card issued to all PMJDY account holders. 4. Rupay Debit Card You will also get a Rupay Debit card, allowing you to withdraw money using ATMs and providing interoperability. Are You Eligible For The Jan Dhan Yojana? Below are the eligibility criteria to open a savings account under Jan Dhan Yojana: You need to be an Indian citizen and provide documentation to showcase this. The account will be provided to low-risk individuals, i.e. those who cannot provide sufficient proof but are deemed low-risk by the respective bank after thorough research. Any individual older than 10 years can avail of the benefits of the Jan Dhan Yojna Scheme, provided that account holders who are minors need to have a registered guardian to open a Jan Dhan Yojana account. You can open a Jan Dhan bank account even if you already have a savings account. In such a case, you can transfer it to your Jan Dhan Yojana account to avail the benefits. Who Is Not Eligible For The Jan Dhan Yojana Scheme? Here is who might be ineligible for the Jan Dhan Yojana Scheme: Government employees, state or central, are not eligible to open a Jan Dhan Yojana account. Individuals and those families who are current income tax payees cannot avail of the Jan Dhan Yojna. Those registered under the Aam Aadmi Bima Yojna cannot open a Jan Dhan Yojana account unless they give up the Aam Aadmi Bima scheme. How Do I Apply For The PM Jan Dhan Yojana? To check your eligibility, you need to provide certain documents while applying for the Pradhan Mantri Jan Dhan Yojana Scheme: 1. Address Proof Under this section, you’ll need to provide certain documents, like an Aadhaar Card or passport. If you do not have an Aadhaar Card, you will be ineligible for this scheme unless you obtain one. In case of a lack of residence proof, if your respective bank deems you as a low-risk applicant, you apply for the scheme and submit your Aadhaar Card as residence proof within 12 months. 2. Identity Proof To open your Jan Dhan Yojana account, you’ll need two passport-size photos, voter ID proof and a driver’s license. When filling up the form, make sure to correctly fill in relevant details like the nominee’s name, age, date of birth, and information about the person authorised to receive funds in the event of the nominee’s death. The Pradhan Mantri Jan Dhan Yojana form, also known as the Financial Inclusion Account Opening form, must be filled out with the correct information. It consists of the following sections: 1. Bank DetailsIn this section, you’ll need to fill in your bank information, through which you are applying for the Jan Dhan Yojana account. 2. Applicant DetailsYou’ll be required to enter all your relevant personal details, including name, marital status, residence, Aadhaar card number, etc. 3. Nominee DetailsIn this section, you will be required to fill in the details of your nominee. [B-02] Final Words The Pradhan Mantri Jan Dhan Yojana Scheme is a success because it has contributed significantly to the increase in the percentage of Indians with bank accounts from 53% in 2014 to 80% in 2017. It has provided the foundation for nationwide initiatives like direct benefit transfers, COVID-19 financial assistance, and life and health insurance coverage by providing bank accounts to those individuals who couldn’t make one and could not benefit from financial services or products. To know more about this scheme, you can consult help from financial experts like Piramal Finance. You can also read similar blogs on the website and increase your financial awareness.

08-11-2023

Personal Loan

Know the Piramal Capital & Housing Finance Personal Loan Process

The number of financial institutions that offer personal loans has increased. The terms and conditions with which loans are given have become stricter as well. 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 the eligibility criteria and other details of the personal loan process. 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 certain requirements in the personal loan process like identity and address proof. Documents Needed in the Personal Loan Process The documents sought by the lender will be submitted along with the application. These are the documents that will help meet the eligibility criteria 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, the personal loan process, 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 eligibility details included in the personal loan process. 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

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

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