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Personal Loan

How a housewife can get a personal loan easily in a few steps

In modern times, women have become financially independent. They are multi-taskers, i.e. managing their homes and work at the same time. Therefore, access to credit from banks and other NBFCs can help women become financially free. [B-01] Personal Loans for a Housewife Personal loans have become popular in India. The application process is relatively simple. Personal loan EMIs can be smaller if you choose longer tenures. A homemaker can either approach a bank branch or apply online for a personal loan for a housewife. They can obtain two types of personal loans — secured personal loans and unsecured personal loans. Here are the details about various loans for women. Secured Loans. Secured loans are provided based on offering security to the lenders. This collateral can be a fixed deposit, insurance policy, gold, or property. This list includes a host of movable and immovable assets. If the borrower defaults on paying the loan, the lender can seize the collateral and realize the loan amount. Unsecured loans. Banks and NBFCs provide loans that don’t require collateral. However, the lenders would give unsecured loans based on the credit history of the person. In most cases, if the applicant doesn’t have enough income, they would need a co-applicant with a stable income. So if a housewife’s husband has a stable income source, a government job, or a good private sector job, it can easily convince the lenders to give a loan. Gold loan. In Indian society, women generally inherit gold from their parents and elders. Gold can be used as collateral to obtain a loan. All banks and NBFCs give loans by taking gold as security. The benefit of taking a gold loan is that there is no need for a guarantor or a co-applicant. Income proof is also not necessary. The documents are minimal, and the processing fee for a gold loan is nil. The approval for a gold loan is instant. In most cases, the loan amount can be disbursed on the same day. A housewife pledging gold can also be assured that her gold will be safe as it is secured in vaults. So, she can approach banks or NBFCs for a personal loan for a housewife by pledging her gold. The money given as a loan is generally 75% of the gold value. Insurance Policy. If not surrounded by any emergency, a homemaker can think about getting a personal loan for a housewife through an insurance policy. Getting a loan by giving an insurance policy is becoming popular in the current times. Therefore, a housewife can pledge her insurance policy to obtain a personal loan. The insurance contract would act as collateral. The agreement would be between the insurance company and the lender. Generally, the amount provided is equivalent to 80 – 90% of the policy’s value. The repayment period is flexible. However, it varies across lenders. The interest rates are low in this option. The documents required to obtain the loan are not many. Generally, the loan amount is disbursed quickly. In case of default, the insurance policy would lapse. Fixed Deposit. Fixed deposit is common and popular in India. Most banks in India provide loans for fixed deposits. A homemaker can obtain a personal loan for a housewife by pledging her fixed deposit as collateral. Therefore, this is a secured loan. In case of a loan default, the creditor can claim the fixed deposit from the bank. The money given as a loan is generally 70% – 90% of the amount in the fixed deposit. The loan tenure can be the same as the fixed deposit tenure or less than that. One can obtain a loan from the same bank where the fixed deposit is held. In that case, there is no processing fee, and the documents required are the bare minimum. These include a filled application form, fixed deposit receipts, ECS mandate, and a cancelled cheque. Property. If a homemaker owns a property that includes land or buildings, she can pledge to obtain a personal loan for a housewife. Commercial or residential property can act as collateral. In case of loan default, the bank would seize the property, sell it, and realize the loan amount. If the personal loan amount is high, the amount given by the banks would be equivalent to 65% of the property’s market value. The loan tenure differs across lenders. The benefit of having a property is that the chances of getting a loan are very high. Guarantor/co-applicant. Having a guarantor and co-applicant to a house, as a wife without income, to obtain a personal loan is common in India. If the housewife doesn’t have a credit score, is new to banking, or cannot meet the bank’s criteria to get a loan, she can also obtain a personal loan without collateral. However, she would need a co-applicant/Guarantor. In the case of the housewife, a husband can be a co-applicant and grantor, and he can submit his proof of income salary slips and IT return documents. And the co-applicant is equally responsible if the loan defaults. A housewife can also have a guarantor who is not her husband. But the person should have a good credit history and be ready to pay in case the loan gets defaulted. Therefore, having a guarantor/co-applicant with a good credit history can help a homemaker get a personal loan for housewives from either a bank or a non-banking financial company. [B-02] Application Process. Traditionally, to apply for a loan, a person would have to approach the bank, talk to the bank officer, and produce the documents. But in the digital era, most banks seem to be taking the online route for application submission and even for loan approval. Generally, the online application is processed by visiting the bank or NBFC’s website, filling out the application form, submitting the KYC documents, selecting the loan amount, and submitting it. Then the bank representative would call back and take the loan application process forward. A personal loan is one such loan that is obtained quickly. It comes in handy for women if they are starting a business. They can also use the money to help renovate their home, in case of a medical emergency, or to pay any other debt. To learn more about personal loans for housewives and more, and get the best offers, visit Piramal Finance.

08-11-2023

Know More

All About Bank FD: Features and Benefits

Fixed deposits are the financial provisions that are offered by the NBFC or banks. You can deposit some amount of money that yields a higher interest rate. In the comparison of the savings account, FD interest rates are a bit higher and the best personal finance options. In FDs, the deposits can be made for some specific time period ranging from 7 days to 10 years. Once you make a deposit in an FD, it starts earning interest depending on the deposit duration. As a rule of bank FDs, the money can be withdrawn before maturity. However, if someone withdraws money before maturity the banks may charge some extra penalty. FD is considered a good option for personal finance and we are going to enlist here advantages and features of bank FDs in the next section. [B-01] Benefits/Features of Bank FD: To make sure that whether you should invest in bank FDs as a personal finance option or not you should know its benefits. The benefits of features of FD will help you to make a well-informed decision. i) Fix Return or Interest Fixed deposits can give a guaranteed return on investment. When you will open an FD then the return will be mentioned and you will get the same at the time of maturity. You get the same fixed FD interest rate that is agreed upon at the time of investment. This makes the fixed deposit safer and more secure as a personal finance option. ii) Flexible Tenure Most of the banks offer FDs with flexible tenure. This tenure can be from 5 to 10 years or somewhat or some days/months/years more or less. You can select the tenure at the time of investment. This is a fixed tenure that may not be changed with time. iii) Loan Against FD Fixed deposits can also help you with additional fund requirements with personal finance. In case you need some additional or extra funds and your bank FD is not matured, then you can apply for the loan. You can continuously earn interest on your deposit. Most NBFCs allow the depositors to take 90% of the deposited amount to take as a loan. iv) Tax Benefits Any FD as a personal finance option can be of 5 years tenure that can be a tax-saver as well. Under section 80C of the Income Tax Act 1961, you can save your tax up to 1.5 lakhs. FD funds can be deposited for a fixed time period that can again work as some tax benefit instrument. v) Assured Returns Bank FDs are one of the most popular and safe deposit instruments due to assured return. Once you will invest in a fixed deposit as personal finance you will surely get a guaranteed return. The return is usually based on the FD interest rate that is not affected by market fluctuation. Therefore the returns are not affected by the ups and downs in the market. vi) One-Time Deposit If you deposit once in the FD then you can rest assured that your fund is safe. You can invest a lump sum amount one time as personal finance and then just watch your money grow. The money can grow in the desired time — you need not deposit repeatedly. Just by the one-time investment, you can get the expected return. Types of Fixed Deposits As we explained above fixed deposits can be started with any bank or financial institute. But still, while choosing FD as the deposit instrument you may look for the type of FD that you have chosen. Here are the types of bank FDs: i) Standard Fixed Deposit Standard fixed deposits can be opened with any bank or personal finance institution. However, you should have a saving account with the institute to start FD. The investment can be made for a fixed time period or a predetermined time period. The FD interest rate is usually pre-specified. The duration of standard FDs can range from 7 days to 10 years. ii) Corporate Fixed Deposit When the FD investment is made with any private company or NBFC, then it is known as corporate FD. It usually offers a higher interest rate in comparison to standard bank FDs. However, you should check the credit rating of the company before starting your FD. ICRA rating helps the user in determining whether it is safe or not to invest with the company. iii) Cumulative Fixed Deposit Just like any regular fixed deposit any cumulative FD account may require you to deposit money for a predetermined period. You may not receive the regular payout but on maturity, you will definitely receive a fixed amount. If you are looking for long-term investment then cumulative FDs can be the best option for you. iv) Tax-Saving Fixed Deposit As its name convey. Tax-saving deposits are available almost with all banks and NBFCs. It can be used to save tax or for tax exemption up to 1.5 lakh per year. However, the minimum lock-in period for these investments is 5 years. During the lock-in period, you cannot withdraw any amount or funds. Such FDs are used many times to save the tax as well. v) Senior Citizen Fixed Deposit Senior citizen FDs have several additional advantages. Anyone above 60 years of age can use these FDs. The interest rate on these FDs is higher than normal FDs. Usually, there is an additional 0.50% interest rate on senior citizen FDs. Long-term investment, it’s a good investment option for senior citizens. vi) Non-Cumulative Fixed Deposits Investors with monthly goals can choose these types of bank FDs. If the investors have some loan and want to accomplish their EMI goals then this can be the best option. For the non-cumulative FDs, you can choose monthly/quarterly or annual pay-outs and enjoy an interest rate to pay off the bills. [B-02] Conclusion The fixed deposit is one of the safest investment options. FDs or fixed deposits can give you an even higher rate of interest than saving bank accounts. will always depend on the choice of bank or NBFC(Non-Banking financial company). You can check the rate and make informed decisions for investment. To get more information on investment read Piramal’s blogs.

08-11-2023

Personal Loan

Factors You Need to Know that Lead to Personal Loan Rejection

Most banks approve a personal loan and disburse the funds within a few hours. But people sometimes face rejection due to one or more reasons. And when it happens, they feel stressed, angry, or disappointed, no matter what the reason is. But if you know about the factors that lead to loan application disapproval, you can avoid them. If you take care of them, you will get instant and assured approval. So to help you with it, we have discussed some reasons for loan application rejection in this article. And we hope they will help prepare for a loan request in the future. Read on. [B-01] Factor 1: Unstable job or frequent job switches People applying for a personal loan (or any type of unsecured loan) should have a stable source of income. Income stability indicates that the person can repay the loan on time and works as an assurance to the lenders. Hence, if you have been employed for two years or more, that is a good indicator of your financial stability to the lender. In that case, you will have a greater chance of having your loan application accepted. But, those who more often switch jobs find it difficult to get approval. And if you have not been employed for a long time (say, less than a year), lenders are more likely to reject your loan request. Factor 2: Low credit score A credit score is a crucial factor that helps lenders decide if they will lend you money. It is a three-digit number representing your credit history. Also known as the CIBIL score in India, it plays a significant role in your ability to get a personal loan. While a score of 650+ out of 900 is good, having 750+ is excellent. If you always repay your debts on time without missing any EMIs, you will have a high credit score. As a result, lenders will approve your loan application. You can also negotiate a lower interest rate based on your strong credibility. But a lower credit score can be a big hurdle. Your loan request may get disapproved, regardless of your financial stability. Hence, you should check and maintain a good CIBIL score regularly. Factor 3: High debt-to-income ratio People often ignore this element: a high debt-to-income ratio can harm your ability to get a loan. If your monthly EMIs take up a significant part of your income, it can be a red flag for the bank. It can hinder your chances of approval, regardless of what type of loan you are applying for. When you are requesting a personal loan, lenders will see the high ratio as a problem. Hence, those seeking a loan should ensure that their debt-to-income ratio is low. Clearing or reducing existing debts before starting the personal loan process will help. Factor 4: Low income may lead to personal loan rejection Like an unstable job, your low income can become one of the reasons for personal loan rejection. Most lenders check if the applicant earns a monthly salary or profit of Rs. 25,000. And applicants earning below this amount may not be eligible. Yet, people with no previous debt record may still get a personal loan. A good credit score and no existing debt can help even if you have a low income. Factor 5: High credit utilisation The credit utilisation ratio (CUR) is one of the aspects most lenders check before approving your loan application. It helps them determine the financial stability of loan applicants. Frequent use of credit means the person has an unstable income and often borrows money. But a low ratio means you seldom use available credit and have a stable income. The ideal percentage is 30% or less. And if you avoid using credit too often, you have better chances of getting a personal loan approved. So, maintain this ratio at an acceptable percentage before applying for a loan. Factor 6: Inaccurate or incorrect information in the application Inserting incorrect information in a loan application is a common mistake people make and it results in personal loan rejection. The instructional document may not always include this caution. Hence, applicants often ignore its importance and they end up filling in false or inaccurate details on the loan application form. Lenders expect you to provide recent and most accurate personal and financial information such as correct spelling of the name, correct PAN and Aadhar number, and DoB, among others. Please note that lenders verify everything about you with the help of an agency. They also inspect all the documents you provide to support your loan request. So there is no room for misinterpretation of the requirements or the questions asked in the form. Even a single mistake in the application form may lead to a personal loan rejection. Factor 7: Unpaid debt may cause personal loan rejection People often ignore this crucial aspect while proceeding with a personal loan application. From the bank’s point of view, an applicant’s loan eligibility depends on their ability to repay, which is visible in their present unpaid debt record (fetched during a hard enquiry into an individual’s credit score). So, to avoid rejection of your loan request, you should clear or lower your existing debt. Note that it is easy for the lender to know if you have taken a loan from a third party. They can also find out if you have failed to pay any EMI. Hence you need to settle all debts or at least keep them minimal before applying for a personal loan. Factor 8: Other reasons The reasons above are some of the most common reasons all loan applicants should know. Yet, several other reasons may lead to personal loan rejection even if everything is good. They include your age, health, education, and nationality. Banks and NBFCs also consider these factors before processing your loan application. Reaching retirement age and not being able to get an income or pension may become a reason for rejection. Suffering from a health problem that can make you jobless may cause a problem. Further, a foreign nationality may raise trust issues. Thus, any of these reasons may prompt the lender to disapprove your loan application. [B-02] In a Nutshell Procuring a personal loan from a bank or private lender takes only a few hours to a few days. The only thing you have to be sure of is meeting their requirements. Take care of the factors discussed in this article and repay the debts on time. That is all you need to be eligible for faster loan application approval. Ensuring you meet all eligibility criteria can also give you an advantage. And you can negotiate the repayment period and interest rate. We hope this article will help you avoid factors that cause personal loan rejection. For more information on personal loans, business loans, home loans, etc., and topics related to financing, visit Piramal Finance — your one-stop destination for all matters finance.

08-11-2023

Business Loan

Explore India's Leading Government Loan Schemes for MSMEs

If you're looking to start or grow your business, the Indian government offers several business loan schemes that are designed just for you. Whether you're a small shop owner, a startup founder, or running a local manufacturing unit, these government business loans offer quick funding, often without needing collateral. These are not just regular loans they’re PM business loan schemes and MSME loan schemes for new businesses that come with low interest rates, simple paperwork, and faster disbursal compared to banks. Top Government Business Loan Schemes in India MSME Loan in 59 Minutes MUDRA Loan (Pradhan Mantri Business Loan) CGTMSE (Govt Loan Scheme for Business) PMEGP (Startup Loan by Government) SIDBI SMILE Scheme Stand-Up India Scheme PM SVANidhi PM Vishwakarma Scheme Summary of Key Points MSME Loan in 59 Minutes While starting out, individuals often face challanges getting a MSME business loan. MSME Loan in 59 Minutes is one of the fastest government business loan schemes. You can get loan approval within an hour—ideal for those who need working capital or want to scale quickly. Loan: Up to ₹5 crore Interest: Starts from 8.5% Approval: Within 59 minutes Requires: GST, IT returns, and bank records This is perfect for small businesses and MSMEs that want a quick, collateral-free loan under a government subsidy loan for business model. Pradhan Mantri MUDRA Yojana (PMMY) Known as the most popular PM loan scheme for business, MUDRA provides three types of loans—Shishu, Kishore, and Tarun—to suit businesses at different growth stages. Shishu: Up to ₹50,000 Kishore: ₹50,001 to ₹5 lakh Tarun: ₹5 to ₹10 lakh It’s a fully collateral-free government business loan, widely used by traders, shopkeepers, and gig workers. CGTMSE – Credit Guarantee Scheme This govt loan scheme for business makes it easy for MSMEs to borrow without offering property or equipment as security. Loan: Up to ₹5 crore Coverage: 75% to 85% guarantee by the government For: Manufacturing, services, and trading units It acts as a government subsidy loan for business by reducing lender risk, especially useful for first-time borrowers or businesses without assets. PMEGP – Prime Minister’s Employment Generation Programme If you are starting a new business or small factory, PMEGP acts like a startup loan by government. You get funding and subsidy to begin operations. Loan: Up to ₹50 lakh for manufacturing Subsidy: Up to 35% depending on location and category For: New entrepreneurs aged 18+, minimum 8th-grade pass It’s one of the most useful MSME loan schemes for new business owners who want support beyond just money. SIDBI SMILE Scheme SIDBI’s SMILE offers loans for business growth, especially if you’re upgrading equipment or expanding into a new product line. Loan: Starts from ₹10 lakh Tenure: Up to 10 years Focus: 'Make in India' businesses, new-age MSMEs It supports startups and growing enterprises that fall under the government business loan scheme umbrella. Stand-Up India Scheme This PM business loan scheme is focused on helping women and SC/ST entrepreneurs set up greenfield (first-time) businesses. Loan: ₹10 lakh to ₹1 crore Use: For trading, manufacturing, or service Eligibility: First-time entrepreneurs Aimed at creating equal opportunities, this is a strong example of a government business loan for first-time borrowers. PM SVANidhi – For Street Vendors This scheme is part of government subsidy loan for business efforts targeting very small businesses like vegetable vendors, tea sellers, and cart-based shops. First Loan: ₹10,000 Next: ₹20,000 and then ₹50,000 (on timely repayment) Benefit: 7% interest subsidy For many, this is their first experience with a startup loan by government that builds their credit history. A good credit history eventually builds a good credit score. Check your credit score for free! PM Vishwakarma Scheme For carpenters, blacksmiths, masons, and other skilled artisans, this scheme offers a mix of government business loans, training, and market access. Loan: Up to ₹1 lakh Tools Voucher: ₹15,000 Training: With daily stipend Interest: 5% only Ideal for traditional businesses that want to modernize or scale, especially in semi-urban and rural areas. Summary of Key Points Government business loans offer easy funding with minimal paperwork Most are collateral-free or partially guaranteed by the government Special loan schemes exist for women, SC/STs, artisans, vendors, and startups PM and MSME-specific schemes help build and expand new businesses If you’re looking for a startup loan by government or a PM loan scheme for business, there’s likely one that fits your need

08-11-2023

Personal Loan

Best Offers On Personal Loan At Piramal Finance

What Is a Personal Loan? Several lenders provide instant personal loans. These include conventional banks, non-bank financial corporations (NBFCs), and fintech businesses. Instant personal loans are comparable to traditional ones but provide extra benefits. The loan application process is fast and uncomplicated. It is possible to get an instant personal loan without collateral in a few minutes. However, you must satisfy specific criteria to apply and take advantage of personal loan offers. [B-01] Why get a personal loan from Piramal Finance? Piramal Finance should be your one-stop for all personal loan needs. Not only are they one of the best financial advisors on the internet but they also understand what people need. Their loan schemes and personal loan offers are the best on the market. Here are some of the benefits of getting a personal loan from Piramal Finance: Zero pre-payment and foreclosure charges. There are a few charges you have to pay when you want to close your personal loan. This only applies when you wish to close the loan account pre-maturely. Piramal Finance has removed these charges. This means that you can close your loan account at any time. Loan starting from Rs. 1 lakh to Rs. 10 lakhs. Piramal Finance offers personal loans beginning from Rs. 1 lakh and going up to 10 lakhs. This is perfect for those looking to take their first loan. This can be a lifesaver in a time of need. Minimum documentation. Piramal Finance only asks for the most basic documentation. When you apply for a personal loan, you will only need to give a valid ID proof, address proof, and proof of income. Quick sanction and instant disbursals. Piramal Finance knows the importance of quick disbursals. This is why once your loan is sanctioned, it will be sent to your bank account in 24 hours. This is great for those needing it immediately. Pocket-friendly monthly EMIs. Piramal Finance is aware that EMIs can be a headache. This is why, depending on the amount and tenure, they will give you pocket-friendly EMIs. This is great for those who cannot handle high EMIs. Tenure starting from 12 months to 60 months. Piramal Finance offers personal loans with tenures of up to 60 months to pay back. This is good news, as the longer the tenure, the lower the EMI. This is great for those who cannot pay high EMIs. The Dos and Don’ts of Personal Loans: What should you keep in mind while applying for a personal loan? Eligibility: Your age, job, yearly income, and repayment history are vital. Your present financial responsibilities and other factors play a part in evaluating your loan eligibility. The qualifying conditions are plain and simple to grasp. Before asking for an instant personal loan, be sure you are qualified for it. You should also have all of the essential papers on hand. Be aware that rejection due to ineligibility or a lack of required documents may negatively impact your credit score. Plan your repayment strategy: A viable repayment strategy for your instant personal loan is critical. Applying for a personal loan online allows you to borrow money fast. This might lead to debt that is difficult to repay. A debt repayment plan can assist you in repaying your debt. This also takes away pressure on your resources. Personal loan calculators can be found on several financial websites. They may assist you in calculating your monthly payment and budgeting properly. When creating a repayment strategy, consider all your monthly expenses, fixed and variable, as well as any outstanding EMIs. Give serious thought to the loan agreement: While you should undoubtedly consider obtaining a personal loan, you should take your time asking for one. Instead, conduct some research to identify the loan institution that best meets your requirements. Note the finer details and expenses related to processing, pre-payment, and foreclosure before signing anything. Avoid filling out several loan applications: Credit scores are often checked to see if someone is eligible for a new personal loan. If a person does too many credit checks in a short amount of time, it could hurt their credit score. Your credit score will also decrease if a lender turns down your loan request because you have bad credit. So, investigate the loan’s specifications, determine your eligibility, and choose one or two lenders that fit your requirements. Consequently, you’ll have a higher credit score and less difficulty. Do not fall into debt: If you ask for a loan with a larger credit limit than you can afford, the lender will most likely reject your application. Since no collateral is required for immediate personal loans, you should only borrow what you can afford. Assess your credit card repayment capacity in light of your fixed and variable monthly expenditures, the prospect of future rises in those costs, and any other payments you may have. Do not apply to third-party loan providers: Nowadays, fast cash loan advertising abounds on social media. If you’re considering acquiring a personal loan, you could be enticed by advertisements that promise a very cheap interest rate, fast access to your assets, and lax eligibility restrictions. However, the lender may charge additional costs, or the offer may be spam to steal your personal information. Taking up a short-term loan from an unknown firm might set you up for future disappointment. Consequently, only apply for an immediate personal loan from a bank or NBFC with a good reputation and great feedback from prior clients. [B-02] Conclusion Piramal Finance is the best when it comes to instant personal loans and great personal loan offers. They are reputed and have a good understanding of their customers’ needs. When applying for a personal loan, take it from someone with good reviews and a fine reputation. This ensures you do not rack up huge debts. Visit Piramal Finance for more information on personal loans and other financial topics.

08-11-2023

Personal Loan

How can you get instant personal loan easily in India?

Instant personal loans are a great option for people who need money urgently. A personal loan is granted without any security and can be used for any expense. Also, the entire procedure can be conducted online if preferred. You can apply for an instant personal loan, get it approved, and quickly receive funds in your account. Unlike other types of loans, the borrower does not have to arrange a guarantor or provide any security. All you need is to meet the eligibility criteria the lender sets and keep the required documents ready. You can choose any lender that fits your requirements and expectations. Banks and NBFCs provide various loan products at competitive interest rates and flexible repayment options. How to Choose the Right Instant Personal Loan Lender When you decide to apply for a personal loan, there are many factors that you should consider. This includes the interest rate, tenure, and other charges, such as processing fees charged by the lender. Sometimes, lenders provide additional benefits such as free credit score monitoring or access to exclusive deals on insurance policies. As with any product, the right lender will not only check your eligibility and offer you a personal loan but also help you understand the terms and conditions of the loan. The process should be smooth so that there are no hassles later on. When choosing your lender, it is important to consider their reputation. Determining if they offer their personal loan services online is also important. Some may prefer to visit the nearest bank branch, but others may feel more comfortable applying for a personal loan online. So, check what personal loan services the bank or financial institution offers. The bottom line is that finding a lender who understands your needs and provides a personalized service is important. Check The Details Of The Personal Loan To ensure that you are financially able to repay your loan, you should check the details of your loan. It is crucial to carefully figure out the correct amount you want to borrow, which should be enough to meet your needs but not too much that you cannot pay it back. Next, check the interest rate and the tenure. This will determine how much you will pay in EMIs. Other details, such as penalties if you miss a payment, are also important. If there are penalties, determine what they are and how much they will cost you. This depends on the lender, so conduct thorough research before applying for your instant personal loan. Eligibility Requirements For An Instant Personal Loan Lenders will ask you to provide them with certain information to determine your eligibility. You will be asked about the purpose of applying for an instant personal loan and what you intend to do with the borrowed funds. Depending on your requirements, you can compare different types of personal loans in India and choose the best one for yourself. Checking your eligibility before applying for a loan will also help you save time and effort. To know whether you are eligible for a particular type of personal loan, make sure you meet the following requirements: A credit score above 750 Aged between 21 to 67 years A resident of India Identity proof documents (such as an Aadhaar card, driver’s license, passport, etc.) Residence proof documents (such as a voter’s ID, Aadhaar card, etc.) Should be salaried or self-employed (for at least 6 months) Documents Required For An Instant Personal Loan You must submit certain documents to get approval for an instant personal loan. For fast approvals, ensure all your documents and your application form are ready for submission. All your documents need to be official and must be legible. If there’s any discrepancy in the information on the application form and the documents, it could lead to rejection. The documents required for an instant personal loan include: Identity proof documents (such as a passport, voter’s ID, driving license, Aadhaar card, etc.) Address proof documents (such as utility bills, credit card statements, driving licences, voter IDs, passports, etc.) Bank statements for the previous 3 months Two latest salary slips (salaried) ITR with the balance sheet (self-employed) Also, make sure you do not submit multiple applications simultaneously for different loans, as this could also cause delays in processing your request. Application Process For An Instant Personal Loan Applying for an instant personal loan is simple. Banks and other financial institutions have made the process easy, and it can be done either in person or online. To apply for an instant personal loan, fill out the application form, which is available at the nearest branch of your lender or online. Submit or upload all the requested documentation, and then submit your application form and all supporting documents. Once your documents have been verified and your loan has been approved, the money will be sent to your bank account quickly. Since you will provide your bank account details, the lender will send the money directly to your account. You can then use the money from your instant personal loan for your various needs. [B-02] Conclusion An instant personal loan is one of the best ways to access urgently needed finances. Since personal loans are unsecured, the borrower does not have to offer any assets as collateral. Therefore, the application and approval process is fast and smooth. Before applying for an instant personal loan, it is crucial to research different lenders and find the one with the best personal loan interest rate and tenure for you. Once you have selected your lender, the application process can be carried out in person or online, and you will get access to the funds you need within a few hours or days of submitting your application.

08-11-2023

Business Loan

Are Small Business Loans Secured or Not?

The answer to this question is: It depends! Small business operators can profit from both secured and unsecured financing. As the lender is taking on less risk, the terms can be more liberalized compared to an unsecured business loan. There is certainly more going on here though. This article will explore, secured versus small business unsecured loans in detail. After reading this article, you’ll know which option is best for you and your company. [B-01] Are Small Business Loans Secured or Not? While a variety of small business loans are available, the primary distinction between secured and unsecured business loans is the pledged collateral. The two types of commercial loans are unsecured loans and loans secured by collateral. It is vital to remember that putting up an asset as collateral for a loan means you risk losing it. The lender may take possession of the collateral and sell it to recover their losses. A lender’s financial position is not guaranteed in the case of an unpaid unsecured business loan. As this is granted only based on the borrower’s creditworthiness. If you qualify for a loan from a lender will be the deciding factor for the loan you pursue your business. Knowing the distinctions will help you to select the most appropriate form of financing. What Is a Secured Loan? Lenders are protected from loss in the case of default. This happens when a borrower pledges an asset (or assets) as collateral for a secured loan. The lender takes on less risk with a secured loan, hence the borrower benefits from better terms. The loan amount may be higher, the interest could be lower, and the repayment period could be extended. How Does a Secured Loan Work? At the time of loan application, you will specify the asset or assets that will be pledged as collateral. Assets can be anything of value, such as real estate, buildings, cars, machinery, stock, and tools. How much money you can borrow is based on how much money the asset is worth. In the event of a loan default, the lender pursues the sale of the collateralized assets to recoup losses. Remember that a secured loan may take longer to organize than an unsecured one. This is because of the time needed to value collateral. What Is an Unsecured Business Loan? Unsecured loans are those for which no collateral is provided. Compared to a secured loan, the benefits of an unsecured business loan are less because of the lender’s risk. How Does an Unsecured Loan Work? Firstly, submit a loan application providing your financial condition and loan amount. Unsecured loans can be arranged in a shorter amount of time, but the amount you can borrow is lesser. This helps balance the lender’s increased risk. Unsecured loans put extra weight on your company because you can’t pledge collateral. Lenders have their own set of needs for giving loans. They will all consider your credit score, your financial standing, and your company strategy. New companies find it hard to get unsecured financing due to their less trade history. But, there are choices available to small business owners who need unsecured financing. A guarantor issues a letter of guarantee to delinquent payments and recovers losses. There will be a higher chance of approval thanks to this safeguard for the lender. Difference Between Secured and Unsecured Business Loans Small business loans can be secured or unsecured, collateral is the only difference. 1. The Application and Review Procedure Secured loan applications take many weeks to process. It all depends on the type of asset being provided as the loan’s security. Although that isn’t always the case. But, the processing time for an unsecured loan often just takes a few days. 2. Requirements of the Lenders In both types of loans, the owner of the business may be required to sign a personal assurance agreement. If the company fails to return the loan, this agreement says that you are willing to do so personally. 3. Fees Since the lender faces less risk with a secured loan, the interest or charge may be reduced. Lenders have the right to liquidate company assets in the event of debt default. A lack of collateral means that interest for unsecured business loans may be higher. 4. Money Borrowed As there is less of a risk to the lender with secured loans, the amount of money your company can borrow will be higher. The bigger the lender’s risk associated with an unsecured loan, the less money you can borrow. 5. Repayment Period Secured loans offer a longer period, to repay the borrowed amount. But, the repayment period for an unsecured loan is typically much shorter than that of a secured loan. What to Choose: Secured or Unsecured Loan? Whether you go with a secured or unsecured small business loan relies on your unique situation and the lending firm. An unsecured loan is suitable if you need cash. But its eligibility will depend on your credit history and the loan amount. The application procedure for secured loans might be lengthy. But, some lenders can process your loan quickly. It truly is at the discretion of the lending institution. The interest rate on a secured loan is usually lower than that of an unsecured loan. But if the borrower defaults on the loan, the firm could lose the collateral used to secure the credit. You should consider your goals for the money while deciding on a small business loan. After you’ve determined the type of loan for your company’s needs, you’ll be in a better position to choose one. [B-02] Conclusion When comparing the pros and cons of secured and unsecured small business loans, you must go through many factors. For example, your circumstances, company goals, and many other perspectives. Secured financing is your company’s best option if it has many valuable assets. But if you are short on liquid funds, look for the best unsecured business loans in the market. Unsecured financing is good for those having strong finance and need access to funds for a limited period. Want an instant personal loan? Apply for a personal loan with Piramal Finance and get up to Rs. 10 lakhs.

08-11-2023

Personal Loan

Avail personal loan with a good interest rate this Christmas

Christmas is just around the corner, and if you’re looking to take out a personal loan, now is a great time to do so. Personal loan interest rates are currently at an all-time low, so you can get a great deal on your loan if you act now. The festive season is a great time to take out a personal loan. There are many benefits to doing so, including the following: [B-01] 1. You can use the loan to finance your holiday shopping. 2. You can use the loan to pay for travel expenses. 3. You can use the loan to pay for any other expenses that you may have during the festive season. A personal loan is a loan that is taken out by an individual, rather than a business or other organization. Personal loans can be used for various purposes. These include consolidating debt, financing a large purchase, or paying for a major expense. Personal loan interest rates are typically lower than those of credit cards. This makes them a good option for borrowing money. Personal loans are available from a variety of lenders, including banks, credit unions, and online lenders. The terms of a personal loan will vary depending on the lender, but most personal loans have fixed interest rates and fixed monthly payments. This makes personal loans easy to budget for. It also helps to keep your payments predictable. If you’re considering taking out a personal loan, it’s important to compare offers from multiple lenders to find the best rate and terms for your needs. It’s also important to consider your ability to repay the loan. The missed payments can damage your credit score. There are a few things to keep in mind when opting for a personal loan. Be assured that you shop around for the best interest rate. There are a lot of lenders out there. And each one offers different rates. Second, be sure to thoroughly read the fine print carefully before signing any loan documents. You don’t want to get stuck with hidden fees or a high-interest rate. Finally, remember that a personal loan is a big responsibility. Make sure you can afford the monthly payments before taking out the loan. If you’re not sure, talk to a financial advisor. They can help you figure out if a personal loan is a right choice for you. The holidays are a time for giving, but they can also be a time for spending. If you’re considering a personal loan to help cover holiday expenses, there are a few things to keep in mind. Since personal loan interest rates are typically lower than credit card rates, you can save money on interest by taking out such a loan. However, a personal loan is both a commitment and a responsibility. Because of this, you must conduct an in-depth study and evaluate all of your possibilities before choosing one. So before you apply for a personal loan, it’s important to understand the basics. Here are some frequently asked questions about personal loans to help you make the best decision for your needs. What is a personal loan? A personal loan is a type of loan that can be used for a variety of purposes. These include settling debt, making a large purchase, or covering unexpected expenses. Personal loans typically have fixed interest rates and fixed monthly payments, so they may be a good option if you need predictable payments. How do personal loans work? Personal loans are typically repaid in monthly instalments over a set period. This period could be anything between two years to five years. The personal loan interest rate is usually fixed. This means your monthly payments will stay the same for the life of the loan. What are the benefits of a personal loan? Personal loans are an excellent way to finance a large purchase, consolidate debt or cover unexpected expenses. Financing life’s major expenditures using personal loans is a common practice. They offer a practical way to set aside money for a variety of requirements; from paying for your next vacation to completing house improvements, they are the most practical approach to guarantee cash when you need it. Is a personal loan a good option during festivals? If you’re interested in taking out a large loan, the festival is a fantastic opportunity. To attract more consumers, several lenders advertise rate reductions throughout the holiday season. Home loans and auto loans could become more affordable. This can be for people with good credit scores. This is the result of banks cutting their interest rates. The greatest time to take out a loan is when you need one. If wise borrowing choices are made, an offer on the festival loan can make the celebration more enjoyable. [B-02] A personal loan can be a great option for covering the costs of a festival, especially if you have good credit and a steady income. Personal loans can give you peace of mind. Knowing that you have the money required to cover holiday expenses can help you relax and enjoy Christmas. If you need a personal loan to enjoy the best of the Christmas season without any hindrance, you must try applying for one from the best finance firm – Piramal Finance.

08-11-2023

Business Loan

Benefits you should know of taking business loan

“To keep numbers from multiplying you have to add them up” is a true saying. A business needs money from time to time to stay in the green. Most business owners want to expand their businesses, but money is the only barrier to your business’ growth. However, loans are a simple solution. Local lenders charge high-interest rates with no benefits. The collateral security conditions also make it tough to borrow money. [B-01] You can apply for a business loan and access the funds you need. You can check your eligibility for a business loan and apply for a low-interest-rate loan online. What is a business loan? Business loans are provided by a bank or lender to cover business expenses. These expenses can include expansion, renovation of offices, new hiring, etc. You can repay a business loan through every monthly instalment (EMI). Lenders provide various EMI options. However, your loan tenure will change depending on the EMI you choose. What are the top business loan options? Here are some loans provided by the government, financial entities, and lenders for business expenses. Mudra Loan: This is a product under Pradhan Mantri Mudra Yojana’s (PMMY) flagship program. This provides financing to micro enterprises in India. Business loans from banks and lenders: Banks and financial institutions provide various loan options. Equipment loans: Equipment loans are provided for purchasing or repairing equipment owned by the business What are the benefits of getting a business loan? There are multiple benefits of applying for a business loan to finance your growing business needs. 1. You do not have to wait. If you are planning to start your new business but are short on money, you can apply for a business loan. Business loans do not have comprehensive processes. A business loan will help you if your start-up is waiting for investors. A loan will speed up the process of launching your start-up. 2. You can grow your business without barriers. Your business plans will no longer be on hold when you apply for a business loan. You can launch new outlets, hire new employees or launch new products without worrying about funding. 3. Business loans are flexible. You can enjoy 100% decision-making rights on the business loan principal amount. Banks and NBFCs do not interfere with your decisions as an investor would. This benefit makes you independent. 4. Business loans have affordable interest rates. NBFCs and banks offer low-interest rates for business loans. This allows you to reduce the loan burden without compromising on the principal amount you need for your business. 5. There is no profit sharing. If you borrow money from an investor, they will demand a percentage of the profit. But, business loans do not ask for profit. You only pay the principal amount and interest amount. Both of these are agreed upon beforehand. 6. You do not need collateral. Most lenders do not ask for assets as collateral when applying for a business loan. You must provide an income statement as proof for a business loan. However, you may be asked to provide collateral if your creditworthiness is very low. 7. You get tax benefits. Business tax increases as your business grows. But while applying for a business loan, check if interest rates are tax-deductible. Claim the most profitable business loan with low-interest rates. 8. Your business credit increases. Business loans improve your financial reputation and credibility. It helps you get a low-interest-rate business loan in the future. All you have to do is pay your EMI on time. Paying bills on time will help to maintain your credit score. 9. The application process is simple and efficient. Business loans need minimum documents for verification. So, the loan is sanctioned easily. Provided you provide the correct documentation, your loan can be approved in a week! 10. It will solve your cash flow issues. Cash flow management can be difficult and confusing. A business loan helps businesses manage expenses and income. If you have immediate cash flow issues, a business loan can help. What are the eligibility criteria for a business loan? You must be a resident of India. Your business should have been running for the past three years. Your CIBIL score must be greater than 685. Your age must be between 24 and 70 years. Your work status must be self-employed/business owner. What are the documents required for a business loan? You have to prove that you meet the above criteria. You can do so by attaching the following documents to your application. Identity proof (Aadhar card, PAN Card, Passport, Voter ID card, or driving license) Address proof of business (utility or electricity bills) Proof of business ownership (incorporation documents, property lease, etc.) Income tax returns for profit proof from the business (minimum three years). Other financial documents as requested. TIP: Use an EMI calculator before applying for a business loan. EMIs are fixed amounts you pay to the lender after your account has been credited with the loan amount. The amount is a mixture of interest and the principal loan amount. You can calculate the EMI amount using an EMI calculator. Once you calculate the EMI, you can determine if you can afford the business loan. Such calculators allow you to input the interest rate, tenure, and principal amount and calculate your EMI. [B-02] Conclusion A business loan can help you boost the growth of your business. Now that you know the benefits of business loans, you can compare and choose the best business loan. Avail of the best business loan for financial support to grow your business. Banks and NBFCs offer several loan options, look and compare the best for your business. If you don’t know where to start, you can take a look at Piramal Finance business loans and understand where to begin.

08-11-2023