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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

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

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

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

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

Business Loan

Details you should know about MSME business loan

An MSME Business Loan is a secured loan given to small businesses. It can be used to meet their business-related expenses. Given for short periods, these loans come with flexible repayment options. When compared to conventional commercial loans, an MSME business loan is easily accessible. The eligibility criteria here are more flexible. It can help you reclaim cash in times of need and keep up your cash flow. The documentation required is minimal. Also, the disbursement would be quicker than that of a commercial loan. You can use an MSME Business loan for many purposes such as: Funding your working capital requirements Purchasing machinery Investing in fixed assets Buying raw materials It can help you meet your credit requirements too. [B-01] Types of MSME Business Loans The standard types of MSME Business loans offered by financial institutions include: Working Capital Loan A Working Capital Loan can be ideal for MSMEs, to fund their daily business operations. Your options include: Overdraft Facility on Current Account This can help you overdraw money from your current account until a certain limit, sanctioned earlier. Cash Credit Loan This will help you withdraw cash up to a certain pre-approved limit to meet any of your critical, seasonal, or impromptu working capital financing requirements. Bills Discounting If you are in urgent requirement of liquidity you can choose to discount your bills receivable from your bank. You get an upfront payment from the bank, at a certain discount or commission. Your bank will present your bill to your client at the end of its tenure. Short-Term Unsecured Business Loan This is a business loan with a tenure of about one to three years. You can use it to expand your business. Loans Offered under the CGTMSE or Credit Guarantee Fund Trust for Micro and Small Enterprise scheme The Ministry of Micro, Small, and Medium Enterprises has introduced this scheme, to provide unsecured loans up to INR 1 Crore, to new or existing MSMEs. These loans are guaranteed by CGTMSE. Bank Guarantee Loan This is a third-party loan guaranteed by your bank. The lending party will receive a certain pre-specified amount of money if the borrowing MSME defaults. Letter of Credit This is a letter given by your bank to your supplier, pledging that complete payment will be made after the supplies have been delivered. Term Loans As an MSME, you can apply for a fund-based term loan, if you require cash to expand your capacity, purchase fixed assets, or increase your capital. These include: Secured Term Loan These are loans that are offered by banks against a property that could be industrial, commercial, or residential. Loans to purchase construction equipment or commercial vehicles Here the equipment or vehicle that you purchase becomes the collateral against which you can borrow the loan. Eligibility Criteria for an MSME Business Loan MSME registration is a must for any small business, to apply for an MSME Business Loan. You can get your business registered as an MSME by providing certain basic documents such as: Address proof of your business Licenses you might have from the regulatory agencies Copies of your sales and purchase bills An MSME registration can help you get a bank loan without any collateral. You also get to enjoy: Income tax exemption Protection from late payment fees Industrial promotional subsidy Concessions on your electric costs Reimbursements for your ISO certifications Advantages of MSME Business Loan The best part about an MSME business loan is that it can be approved and granted quickly. There are online portals where you can fill in your application and submit the required documents. Upon approval, you will receive the amount in your bank account. You should also be able to manage your business loan from the official web banking site of the lending institution. How to Apply for an MSME Business Loan There are two ways to apply for an MSME Business Loan: You can visit your nearest branch office and apply. You can fill in the online application. The information that you will need to provide includes: Date of birth (as displayed on your PAN card). Telephone number. Details about your business. Annual income. Information about your business earnings and turnover. The financial institution may also ask for a copy of your business’s PAN card. Based on these, it will decide whether to approve the MSME business loan. In addition, banks may enquire about the operations of your business before approving the loan. Be prepared to provide details about any other loans you might have taken or might be eligible for. After providing all the information, you would be able to determine the maximum MSME business loan you can avail of. You will also get information about the monthly EMI that you would have to pay, along with the interest rate and other details. Make sure to check the packages and offers the lending institution provides. Go through the repayment terms carefully. Review your loan amount and select your preferred repayment period. Ensure that there are no errors in the details that you have furnished to the lending institution. You should receive the loan amount in your account, within a few days. [B-02] Conclusion There are many resources available for MSMEs in India. The government has come up with an MSME loan program, which could be a fantastic opportunity for emerging companies like yours. Visit the Piramal Finance website if you need more information about the MSME business loan or any other business loan, you may be interested in.

08-11-2023

Personal Loan

Important Things You Should Know About Personal Loan Balance Transfer

Personal loans are an excellent solution for dealing with financial problems, especially when you need emergency funds. The best part about it is that they’re available from various lenders in the country. Still, although a personal loan can act as a lifesaver during a monetary crunch, it comes with higher interest rates when compared to other kinds of loans. This is where a balance transfer personal loan option comes in handy. If the high-interest rates of your loan are troubling you, explore personal loan balance transfer options today. Let’s begin by helping you understand what a personal loan balance transfer is. [B-01] Understanding Personal Loan Balance Transfer A personal loan balance transfer is a method where consumers can transfer the complete due amount of their personal loan from one lender to another. As a result, they get a cheaper interest rate on the remaining loan amount. However, remember to carefully assess the offer of a balance transfer personal loan and select the one that helps you save the most on total interest payments. Now let’s talk about how personal loan balance transfer works. Knowing How Personal Loan Balance Transfer Works When you opt for a paperless personal loan with a new lender, they pay off your old debt (your loan with a high-interest rate). However, you’ll have to pay the fees for previous prepayment conditions and the processing expenses for your new loan. Still, when you consider the savings from the reduced interest rate, it will compensate for these expenses. Here’s an example to help you understand how balance transfer works. Let’s say you have a personal loan with XYZ bank: Principal amount—₹1,00,000; and Interest—13% p.a. for two years. Your EMI for the 24 months will be ₹4754 per month. The balance at the end of the first year will be ₹52,735. After a year, suppose you opt for a personal loan balance transfer at 9% p.a. If you pay the lender over the next two years at this rate, your EMI will fall to ₹2,458 per month. Now that you have a clear idea about a personal loan balance transfer and how it works, let’s talk about its many benefits. Advantages Of Opting For Personal Loan Balance Transfer Before you make a decision, consider the following benefits of a personal loan balance transfer. Enjoy Lowered Interest Rates One of the most significant advantages of the personal loan balance transfer service is that it decreases the interest rate, lowering your interest load through cheaper EMIs. Your new lender would provide a reduced interest rate on the loan transfer. However, we recommend you analyse your requirements and compare the rates/benefits before opting for a paperless personal loan. Get an Extension on the Loan Tenure While transferring a personal loan, you can discuss the terms of repayment for the existing loan and opt for an extension or even lower the interest rate. Opting for an extended term will help you enjoy the benefits of a reduced monthly EMI but a higher interest payout. On the other hand, lowered loan tenures will reduce the interest payouts but have increased monthly EMI. Avail Top-up Loans Most lenders offer the option to get a top-up loan besides personal loan balance transfers at highly competitive pricing and considerably lower interest rates. Choose that. Eligibility Criteria For Personal Loan Balance Transfers Some of the fundamental eligibility conditions for personal loan balance transfer are: Already have a personal loan from another bank/financial lender The minimum loan sum should be Rs. 50,000 or higher No outstanding bank payments, and should have made on-time payments on all of your instalments Excellent credit score and credit history Note: Other lenders may also give you extra perks in return for using their lending facilities based on your credit history. If you have an excellent credit history, you may avail of the following extra benefits: Waiver of the most recent EMI or No processing costs. etc Documentation for Personal Loan Balance Transfer Some documents that you need to keep in place when opting for a balance transfer are: Fully signed and completed application form with passport-size photos Proof of age and identity like PAN Card, Driving License, Voter ID Card, or Aadhaar card. Address Proof such as Rent agreement, Aadhaar card, Telephone bill, or Electricity bill. Bank statements and salary slips for the last three months Personal loan statement for the debt that will be transferred You must fill out and sign several documents if you choose to transfer your balance transfer personal loan. As a result, you should have a thorough understanding of the terms and conditions of your loan. To avoid slipping into the trap, you must thoroughly check all documents before you make a decision. Remember that choosing a balance transfer for your personal loan is an excellent option if you have an existing loan with a higher interest rate. However, before you transfer your loan, consider your ability to repay and whether it will provide you with long-term advantages. Choosing The Best Personal Loan Balance Transfer Keep in mind that even balance transfer personal loans involve debt. Therefore, examine your finances, develop a repayment strategy, and then decide. [B-02] If you need help with finances, you can always take the help of experts such as Piramal Finance. They can guide you on when to apply for a personal loan balance transfer and if it would benefit you.

08-11-2023