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Personal Loan

Know the Documents Required for Personal Loan from Piramal Finance

Looking for a personal loan? If yes, then you must be familiar with the loan process and all the documents required for a personal loan. Piramal Finance allows for easy loan applications and quick disbursal of loans. They have a list of documents that you need to submit to avail of a personal loan from them. So, without further ado, let us go through the list of documents required for personal loans and other essential details needed to apply for one from Piramal Finance. Let’s start with the common question asked, why does Piramal Finance ask for documents? [B-01] Why Do You Need to Submit Documents to Apply for a Personal Loan? You might have wondered why there are so many documents required for a personal loan from Piramal Finance or any other bank. The answer is simple: the bank wants to be sure that you can repay the loan. For this reason, the bank asks for proof of income, assets, and liabilities. The bank collects this information from your documents. Then reviews it before approving or declining your personal loan application. Eligibility Criteria for Personal Loan Piramal Finance checks your eligibility for a personal loan based on the following criteria. The applicant must be: A salaried employee. Aged 21 to 60 years. Having a minimum income of ₹25,000 per month. Having a least 6 months experience in the current job. Piramal Finance will consider you eligible if you fulfil these criteria. The documents you provide will help prove your eligibility for Piramal Finance personal loan. List of Documents Required for Personal Loan Now you know why so much there are so many documents needed in this process. Now, let us look at the list of documents required for a personal loan. Loan Application It is the first move in the loan procedure. This form includes details like your name, address, contact number, etc. You must fill out this form to ensure that Piramal Finance can review your application. It is vital to give accurate information in the form. Any discrepancies may lead to the rejection of your loan application. Pan Card Your PAN card is used to check your financial history. It helps ensure that there are no bad debts, bankruptcies, or blacklist statuses on your record. This shows that you are a reliable borrower and can repay the loan on time. The PAN card also provides an identity for you and helps in tracking loan repayment. A PAN card is mandatory to submit your application for a personal loan from Piramal Finance. Identity Proof Piramal Finance asks for identity proof to verify your identity and to safeguard against any fraud. This is mandatory for all borrowers. It can be anything that can substantiate your identity. To verify your identity, you may submit any of these documents. Passport Voter’s Identity Card Aadhaar Card Driving License Address Proof You also need to provide address proof. This is to identify your residence. Any of these documents can be used for address proof: Passport Registered Leave and Lease Agreement Aadhaar Card / Aadhar Acknowledgement Driving License Utility bills like Telephone Bill /Electricity Bill etc. (Not more than 3 months old) Voter’s Identity Card This document gives your residential details and confirms your claim of where you live. Income Proof A personal loan is an unsecured loan. So, it is important to prove your income to qualify for it. Banks consider your income as the main eligibility criterion. As proof of your income, you have to submit these documents: Salary slips Bank Statement (last 3 months) Co-Applicant Suppose you are applying for a personal loan for a higher loan amount. In that case, you can include your co-applicant in the loan application. According to Piramal Finance policies, only your spouse can be your co-applicant. You will have to submit all the above-listed documents for the co-applicant too. Other Information You May Include These are the essential documents required for personal loans. In some cases, you can also include additional information like Credit Score Having a good credit score is useful for a multitude of reasons. First, it shows that you are a responsible borrower and that you can repay the loan on time. Second, a good credit score can help you secure better rates on loans in the future. Finally, a good credit score can even help you get approved for a home loan or a car loan. Loan Purpose Submitting all of the documents required for a personal loan. Now, you must state the purpose for which you are taking out the loan. This is to help Piramal Finance understand why you need the loan. It can be for any reason from paying off existing debts to buying a car or a house. Tips For Improving Your Chances of Getting a Personal Loan There are a few things you can do to increase your chances of getting a personal loan from Piramal Finance. Firstly, make sure that you are well-resourced. This means having a good income and no bad debts or bankruptcies on your record. Second, have a solid credit score. Third, prepare the documents required for your personal loan application and make sure that they are authentic and up to date. Fourth, be honest about the purpose of the loan. Finally, give accurate details so that Piramal Finance can decide on your loan application. [B-02] Summing Up Getting a personal Loan from Piramal Finance is a quick and hassle-free process. Ensure that you have all the necessary documents and information ready. The key is to make sure your credit score is good. Show that you have a good income and that you are honest about your purpose for the loan. With these steps, increase your chances of getting a personal loan from Piramal Finance. For more financial advice and tips, be sure to check out their website and its blog section.
08-11-2023
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Home Loan

Home Loan EMI’s Principal and Interest Breakup

Home Loan EMI’S Principle and Interest Breakup House is a necessity for everybody. Some own it. Some rent it. You need a lot of money to buy or build a new home. Not everybody has lump sum amounts in the bank. A home loan or housing loan is a facility given to such people. People can take loans, build a house and return it on easy EMIs. This is a long-term process. The period for a large amount is huge. It can take years to pay it off. [B-01] What is the Home Loan Principle Amount? This is the total amount of the loan. The interest is calculated on this amount. The period is also decided by taking it in the term. The more the principal amount, the more is interest. The same goes for time. However, the principal amount for home loans or housing loans has to be big. For example- 300,000 rupees. Example to Understand If you want to buy a property in a city for 1 crore INR, and the bank agrees to give you a loan for 90% and 10% is to be paid as a down payment. So in this case, you are eligible to get a loan of 90 lakhs. This will be considered your principal amount. The remaining 10 lakhs will be given in the form of a down payment. What is the Home loan Interest Amount? This is the extra money paid. The interest may vary. It can be different for different banks. It can also differ for states. The banks usually give offers to people for loans. They give loans and earn a lot. It is like a long-term investment for them. The amount they give, they get back. They also get a lot of money in form of interest. They can even take the property of the person if he or she fails to return the money within a given time. To save yourself from interest, the best option is to reduce the period. Prepayment of loans can be useful too. The amount for prepayment can be calculated easily. It is calculated by a home loan prepayment calculator. What is EMI? EMI: Its full form is equated to a monthly instalment. It is payable when you take a loan. You have to pay EMI every month. You have to continue paying until the principal amount dissolves. The EMI has 2 sections of money. One is the principal amount and the other is interest. The breakup of the amount gives EMI to be paid. The period is also fixed. Even the date on which the EMI is to be paid is fixed. Formula to calculate EMI- The EMI on a home loan can be easily calculated by the formula- P x R x (1+R)^N / [(1+R)^N-1] In the above-given formula, P stands for the Principle amount of the loan. N stands for the number of months (period for which the loan is taken) R stands for Interest This work is easily done by the home loan EMI calculator. Example of EMI payment- You take a home loan for 30 lakhs for 20 years. The EMI would be 28,950 rupees per month. In the first EMI, 25,000 rupees is interest and 3,950 rupees is deducted from the principal amount. As time passes, the interest decreases and the principal amount increases. After 100 months, the interest would be around 19,000 and the principal amount would be around 9,000. After 100 more months, the interest would be around 8,000 and the principal amount would be around 20,000. This is how the Home Loan emi’s Principal and Interest Breakup occur over time. This is calculated using EMI calculators. Explanation: (Principle and Interest Breakup) The breakup of money in both sections is transparent. Longer the period, more the interest. Hence, more money is to be paid. If you look deep down, most of the money at the start of EMI goes to the interest section. After a few months, the actual principal amount reduces. The EMI is the same throughout but the fact is the breakup of money. The period of repayment can be reduced. This will save interest. The EMI increases as the period decrease. But the amount payable on interest is less. So if you can afford it, do it. It is a better option to pay more for lesser time. The other option is to pay less for a longer time. The amount payable in the second option is much more. Many people choose the second one because of the lesser salary. People also have other bills and expenses. Because of this, they choose to pay less. But if possible, choosing the first option is better. Because it helps in saving money, lesser interest means less amount to be paid. Pre-payment of Long Tenure Loans- The pre-payment amount on the home loan or housing loan can be calculated easily by using the home loan EMI calculator. The interface it provides is user-friendly. It is very easy to use. It gives real-time results. The accuracy is 100%. All this work is possible online. This also saves time for people. How can pre-payment help? The amount for pre-payment is in your own hands. It reduces the principal loan amount. Now, the interest decreases. The interest which was taking a major part of EMI in the initial years is now reduced. This means lesser EMI. More stability. Management of money. Time management (as the period has also reduced). Satisfaction. Great outputs. [B-02] Home Loan EMI’s Principal and Interest Breakup are specified. The methods to decrease the interest are also given. The user can himself or calculate the breakup of EMI. This is possible by EMI calculators available online. Using them is very easy. They help in giving the best results and also help people to choose the best option. Doing research can be proven strategic in the matter of finance.
08-11-2023
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Personal Loan

Apply Personal Loan for Eye Treatment in India

Sudden medical issues can be perilous, more because of the high costs involved. Vision issues are unfortunately common in India. Many types of research have shown that millions of Indians are suffering from many eye disorders. These include: Red Eyes Blurred Vision Night Blindness Lazy Eye Colour Blindness Many of these disorders can be treated effectively. However, not everyone can afford the treatment. Often situations arise when you get anxious and need to scramble for money to find a solution. One such situation is a medical emergency. It can happen to anyone, regardless of age and background. And when it does, it can get challenging. A personal loan is usually the best solution to meet the high expense of treatment. [B-01] Medical Emergencies and Expenses in India A medical issue is enough stress for you and your family. But, what could be worse is the accompanying financial distress. For example, the sudden lump sum you might need for an operation. Eye disorders are some of the most common health issues in India. Eye treatment often proves to be expensive. A single operation can cost you a huge chunk of your monthly income. Even the usual prescribed medication can be costly. Whenever a person opts for testing or treatment, it includes a series of expenses. For example: Bed charges Doctor’s visits Medicines Scans Diagnostic tests Surgery But what happens if you don’t have financial support for them? How can you gather the necessary resources at short notice? Why apply for personal loans for eye treatment? As per WHO, vision impairment can have severe impacts. It leads to both personal and economic losses. It results in an estimated annual global productivity loss of about US $411 billion. Healthcare is expensive, and expenses go beyond what health insurance covers usually. Many analyses have shown that there are millions of blind or partially blind people here. In 2019, another research was made by LV Prasad Eye Institute. It concluded that by 2030, more than 250 million Indians could be infected with Dry Eye disease. The IAPB Vision Atlas reports that 90% of vision loss is treatable. However, not everyone can afford the treatment. Sight loss treatments are held back by expenses. Moreover, finding extra money from the household budget can be difficult. Luckily, researchers also say that many eye problems can be prevented. Timely treatment and proper medication ensure your vision’s well-being. However, it requires cash reserves to cover immediate funding. To tackle this, you can apply for personal loans for eye treatment. (IABP – International Agency for the Prevention of Blindness) Globally, Vision impairment remains a challenging public health problem. It handles an enormous financial burden. Many financing companies have introduced personal loans for eye treatment in India. A personal loan for eye treatment will save you from a financial crisis. These loans cover: Cost of surgery procedure Hospitalization bills. Expenses of the medicines prescribed. The lenders will provide the cash within one to three days. The lenders assess the eligibility criteria for all individuals. They do this after you have applied for an eye treatment loan. ELIGIBILITY CRITERIA FOR PERSONAL LOAN The following are the criteria for a personal loan for eye treatment in India: You must be a resident citizen of India As for your age, it should be between the ages of 21 years and 60 years. If you are a salaried employee, your income must be at least ₹20,000 per month. Instead, a small annual profit is applicable for self-employed professionals after tax deduction. Eligibility criteria include: For Salaried Individuals: Minimum Age: 21 years Upper age limit: The time of loan maturity must be before the individual is 60 years or has retired. The lenders take whichever comes first into account. For self-employed: The credit score should be above 680. The age should be between 24 – 70. Your business experience must be of at least 3 years. Documents needed for Eye treatment loan: Like every loan, this one will be granted only after the submission of the required documents. You will need to give the following documents while applying for a personal loan: PAN Card KYC documents, such as driving license, Aadhaar card, or voter ID card Employment proofs Last three months’ salary slips or some other income proof Last three months’ bank account statements of your account The next step involves document verification. Documents required include a PAN card, Aadhaar card, driver’s license, or passport. For income proof, the following will be sufficient: Bank statements. Salary slips. Income tax returns. The loan is typically lent with a minimal interest rate. The rate of interest varies with credit scores. A good credit score makes it reasonable to opt for a medical loan. Hence, you should keep in mind to maintain your credit score before applying for a personal loan. Moreover, medical loans are available either as secured borrowing or unsecured borrowing. Thus, providing security or collateral is not mandatory. This makes it a convenient option during serious emergencies involving permanent vision loss. Furthermore, you have the option to choose the repayment tenure based on your personal needs, which usually ranges from 12 months to 60 months. [B-02] Conclusion Eye treatment personal loans are not difficult to avail. Anyone of the middle and lower class can think of it as a convenient option and avail it when the situation rises. The financing schemes for eye operations will soon be even easier to get. Obtaining eye treatment loans is one of the best ways to tackle these issues. You can get a better tenure and repay the EMIs without hindrance. Piramal finance will give you the best service and advice for such needs. We will help you to fulfil your eye treatment loan requirements efficiently. For further details, you can visit our website. It’ll be our sincere pleasure to serve you.
08-11-2023
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Personal Loan

Things You Must Know Before Comparing and Applying for a Personal Loan

Are you considering applying for a personal loan? Then it is important to do your research. You must understand the various factors that go into choosing the right loan for your needs. Knowing the ins and outs of personal loans can help you make an informed decision. So you must compare different loan offers. You can then select the one that’s right for you. In this article, we’ll discuss some of the key things you should know before comparing and applying for a personal loan. [B-01] Compare loan offers Comparing loan offers before applying for a personal loan is essential to finding an affordable loan with terms that meet your individual needs. Taking the time to shop around and compare loan offers can help you find the best deal and save money. Understand the loan amount and interest rate When comparing loan offers, it is important to check loan amounts and interest rates. Different lenders may offer different loan amounts and interest rates. So it is important to compare these offers to find the best deal. It is also important to research loan terms. These are repayment periods, fees, and prepayment penalties. These can have a major impact on the total amount of the loan. You must understand whether it is affordable. It is also important to consider collateral when comparing loan offers. Understand collateral Collateral is something of value that can be used to secure a loan. This can be a car or a home. This can be a significant risk. So it is important to make sure that you are comfortable with the collateral before signing on to a loan. Comparing loan offers can be time-consuming. But it is important to make sure that you get the best deal. You must also ensure that the loan meets your individual needs. Take the time to check loan amounts, interest rates, loan terms, and collateral. This can help ensure that you find the best loan for your situation. Consider Your Credit Score Credit scores are extremely important in the world of finance. They determine the amount of credit you can access and the interest rate you will pay for it. Knowing your credit score and credit history can help you make informed decisions about how to improve your credit score and save you money in the long run. Estimate Your Credit Score Estimating your credit score can give you a good idea of the range of credit you can access. It also gives you an idea of the interest rate you may pay. It is important to remember that credit scores are not set in stone. They can change over time. So it is important to regularly check your credit score and monitor it. Know Your Credit History Your credit history contains information about past credit accounts and other financial information. Checking your credit history can help you identify mistakes and inaccuracies. By doing so, you can correct them and improve your credit score. Understand Your Finances Before applying for a personal loan, it is important to understand your finances. Knowing how much money you have available, how much you owe, and what your credit score is. This will help you determine if you are ready to take on a loan. Additionally, understanding your budget and how much you can afford to pay each month is important. It will help you determine what type of loan you need. Also, you can know how much you can borrow without becoming overwhelmed by the repayment process. Understanding your finances before applying for a personal loan will help you make an informed decision. And thus, you will be able to get the best loan for your financial situation. Read The Fine Print Reading the fine print is an important step before applying for a personal loan. It is important to understand the terms and conditions of the loan, as well as any fees and penalties associated with it. Knowing the details of the loan can help you make an informed decision and ensure you are getting the best deal possible. It is also important to understand the repayment schedule and any other potential costs associated with the loan. These include things such as late fees and prepayment penalties. Being informed about the loan before signing on the dotted line can save you money in the long run. Finally, ask questions It is important to ask questions before applying for a personal loan. Make sure you know the interest rate, repayment terms, and fees associated with the loan. Ask if there are any additional fees associated with the loan. Make sure you understand when payments are due and how much you will be expected to pay each month. Also, what will happen if you miss a payment? Understand the total cost of the loan. Also, make sure you can afford to make the payments. Lastly, make sure to ask for a written copy of the loan agreement. It will help you review it in detail. [B-02] Parting words In conclusion, it is important to be informed when applying for a personal loan. Research the different options available, repayment terms, and interest rates. Taking your financial situation and credit score into consideration can also help you make an informed decision. In this way, choose the best loan option for you. We hope that now you are all clear about things that you know before applying for a personal loan. But if still you need help with any of your financial doubts and concerns related to a personal loan, you can contact finance experts at Piramal Finance!
08-11-2023
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Personal Loan

All You Need to Know: What Can a Personal Loan Be Used for in 2022

A personal loan can be a great way to get some extra cash for the things you need. When you have good credit, it’s easy to get a personal loan from a bank or other lender. You can use personal loan money for various purposes. Moreover, a personal loan can also help improve your credit score if you use it wisely. In this blog, we’ll be discussing the six major purposes of the best personal loan in India and what they can be used for in 2022. Let’s dig in! [B-01] Medical emergencies Choosing the best personal loan in India can be a great way to get the financial help you need in a pinch. While there are many different ways to use a personal loan, one of the most popular uses is to cover unexpected medical expenses. With the rising cost of healthcare, even a minor emergency can quickly become expensive. A personal loan can help you cover the cost of an emergency room visit, surgery, or other unexpected medical bills. In addition, a personal loan can also be used to cover the costs of prescription medication. With rising drug prices, many people struggle to pay for the medications they need. A personal loan can help you pay your costs and get the medication you need without breaking the bank. Whether you’re facing unexpected medical bills or simply trying to stay ahead of rising drug prices, a personal loan can be a valuable financial tool. Home renovations and repairs A personal loan can be a great way to finance home renovations or repairs. In 2022, a personal loan can be a good option for home renovations and an ideal choice for many homeowners. Common uses for personal loans include painting, flooring, plumbing, and electrical work. Vehicle financing Vehicle financing can be a difficult decision. Should you get an auto loan or a personal loan online? They each have their pros and cons. Auto loans typically have lower interest rates than personal loans; however, personal loans usually don’t require a down payment or collateral. It depends on your situation and what is most important to you. If you have good credit and can get a low interest rate, then a personal loan may be the way to go. However, if you don’t have the best credit or don’t have money for a down payment, then a personal loan may be your best option. Ultimately, it is up to you to decide which type of loan is right for you. Large purchases Making a major purchase can be stressful, even if you have the cash on hand to pay for it. But when you don’t have the full amount of money upfront, it can be even more daunting. That’s where personal loans come in. Personal loans can help you cover the cost of a large purchase, such as a computer, appliance, or mattress. This can make the process of making a major purchase much less stressful and allow you to get the item you need without having to come up with a large sum of cash all at once. Debt consolidation A personal loan can help you get out of debt by consolidating your debts into one monthly payment at a lower interest rate. So if you’re looking for a way to consolidate your debt and save money, a personal loan could be the answer. Improving your credit score It is critical to keep your credit score in good standing. If you have a history of missing debt payments, taking out a personal loan in the short or medium term and paying it off on schedule can improve your credit score. It may also be added to your credit mix. You should now better understand the purposes for which a personal loan may be used. Remember that you can acquire a personal loan the next time you need money. A personal loan is the best-consolidated alternative for paying large bills and dealing with financial problems! However, before making your ultimate decision, weigh the advantages and downsides carefully. Moving Costs As more and more people are looking to relocate to find work or be closer to family, the cost of moving is becoming a larger and larger expense. Fortunately, personal loans online can be a helpful way to cover these costs. When used responsibly, personal loans can help you finance your move without putting yourself in financial jeopardy. Here are two examples of how personal loans can be used to cover moving costs: Paying for professional movers Many people choose to hire professional movers to take care of the heavy lifting and minimise the stress of moving. While this can be a worthwhile investment, it can also be an expensive one. Getting a personal loan online can help you pay for professional movers without breaking the bank. Covering the cost of a rental truck If you’re planning on renting a truck to move your belongings, a personal loan can help you cover the cost of the rental. This option can be especially helpful if you’re moving long distances and need to keep the truck for an extended period. [B-02] Parting Words A personal loan can be a great way to get the money you need for your life goals. Whether you are looking to consolidate your debt, make some home improvements, or take care of some medical expenses, there is likely a lender who will be happy to work with you. Be sure to compare rates before applying so that you can find the best deal possible. To learn more about the best personal loan in India, visit Piramal Finance for related blogs and to explore their products and services.
08-11-2023
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Business Loan

Reasons Why Your Business Loan Was Rejected

No matter the type of business, having a consistent cash inflow is critical to successful operations. There are also times when unanticipated obligations arise, and extra funds are needed to ensure the smooth functioning of the business. Or you may need extra funds to expand your business. This is exactly where business loans act as a lifeline and prove to be immensely beneficial. However, having your loan application rejected by a financial or banking institution might be a disappointment. You’d have to keep in mind that the approval of a business loan comes attached with certain approval parameters. So, if your business loan has been rejected, you must understand why it was denied. It will help you focus on improving the chances of your business loan application when you apply the next time. [B-01] Top reasons why Business Loans may get Rejected Instead of being discouraged by the rejection of your business loan, you must try and understand the reasons behind it. Let’s have a look at some reasons why your business loan was rejected: Inadequate Credit Score It is safe to say that the top priority of every lender is the timely repayment of the loan. The business loan interest rate that gets levied on the borrower is an incentive for the lender. So before authorising a loan approval, lenders assess several variables. One of the most important variables is the credit score of the borrower. Assessing the credit score of a borrower helps the financial institution determine whether they can repay the borrowed amount. The credit score varies between 300 and 900, where 300 is the lowest and 900 is the highest. You should keep in mind that a credit score of 750 or above is considered excellent for loan acceptance. When you have a bad payment history due to late or missed payments, or even administrative errors, it affects your credit score and causes the lender to reject your loan application. Insufficient Cash Flow As a borrower, it is crucial to ensure that your business has a substantial cash flow when you apply for a business loan. You must note that cash flow gaps occur due to lower cash inflows and higher cash outflows. In addition, it is important to know that inadequate cash flow hampers routine operations. Especially, if it continues over some time, it can compromise the company’s viability. Your business can have a negative cash flow due to the following reasons: Lower seasonal demand, Over investment, High overhead expenditures, Low earnings, Overstocking, and Inadequate financial planning. No matter the reason, having negative cash flow indicates a budget deficit and financial challenges. This is perceived as incapacity to repay the loan, which leads to the lender refusing your business loan. Unpaid Dues or Debts If you have already taken several other loans for your business, there is a high possibility that your business loan may get rejected. When you already have a significant outstanding debt, it indicates that you may be unable to repay future monthly instalments. So, even if you have a good credit score, financial institutions/lenders will still assess the overall credit utilisation ratio of your business. What’s a credit utilisation ratio, you may think? Well, it is the ratio of total credit used by your business to the total credit limit available. It is most commonly highlighted as a percentage. In most cases, financial institutions/lenders do not prefer borrowers to use more than 30% of the total available company loan. If you have a low credit usage ratio, it indicates that you have a lesser reliance on credit. This, in turn, helps you build a good credit score and also helps you secure a business loan easily. Inadequate Collateral Most business loans are usually secured. This security is either collateral or a personal guarantee. Having collateral helps reduce risks. If you are unable to repay the loan, having suitable properties as collateral helps lenders to have a high resale value. For the same reason, you must not select any intangible or outdated property or a property that has contested ownership. Doing so may result in the rejection of your loan application. So, you must select appropriate tangible assets as collateral when applying for a business loan. Unachievable Business Plan When you apply for a business loan, you must have a clear objective for what and how you will use the funds. Lenders may be put off if you do not request enough funds, or are asking for too much of it. A classic example of this would be when young entrepreneurs, who want to do more in less time, come up with unachievable business strategies. This deters lenders from sanctioning a loan. On the other hand, it is advised that you have well-planned specifics of the financial goals of your business, backed with mapped strategies on how you plan to achieve them. This will help banks and non-banking financial institutions thoroughly analyse your business plan. Your way ahead with Business Loans Owning a business and running it successfully is not an easy task. So, if your business loan has been rejected, don’t be discouraged. You can recover from it. Keep in mind that when you apply for business loans, you must have all legal documentation, such as contracts, leases, licences, and so on. It reduces the chances of being rejected by lenders. [B-02] You must also be open and honest with lenders about your credit history. If you submit incorrect information to the lender, it may result in a misfire. Most banks and NBFCs, such as Piramal Finance, advise borrowers of the reason for rejecting their business loan applications. Besides, reputed lenders such as Piramal Finance also offer advice on how you can improve your chances of business loan approval later on. You can quickly check the Piramal Finance website and start applying for a business loan. It’s completely hassle-free, simple to navigate and provides quick disbursals. So, what are you waiting for? Explore business loans that suit your business requirements the best and get started on the way to success!
08-11-2023
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Home Loan

Loan against property - Who can be eligible?

Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an instantaneous deposit of borrowed cash. Step 1: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: After filling out the first application, you will be asked to provide details about your income. These are used to offer suitable business loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative contacts the borrower. They collect documentation verifying the borrower’s identity and property. After this, you will find out if your application for a property loan secured by real estate has been granted. [B-01] Here are five reasons to start a business with a secured loan. There are high costs associated with starting a business. So, securing a loan against property is an attractive option. Here are five compelling reasons for securing a company loan against property: 1. Basic Requirements for Participation As you saw, filling out an application for a loan secured by real estate is easy. Just like that, completing the requirements for approval is similarly uncomplicated. As a beginner, you will appreciate the efficiency of these techniques. It is good to have quick access to finances as you will incur several costs. 2. Application Flexibility Setting up new business costs include renting or buying office space, buying office furniture and supplies, advertising, recruiting employees, buying equipment, and paying taxes. A loan against property secured by the new company’s property can be quickly redirected to meet the most immediate need. Starting a business might be much less complex when a lender is not involved. 3. Flexible Repayment Schedule Maximizing profits to repay a debt with a more forgiving repayment plan will be less important. Take a loan against property repayment schedule of up to 20 years. With this, you can focus on growing your business without financial stress. 4. Lowest Interest Level You’ll have a far lower debt-to-income ratio because your lender is providing you with a loan against property. The interest rates associated with a loan against property for company owners are lower than other loan types like personal and business loans. 5. The Highest and Best Use of Property Real estate is a great long-term investment. But there are ways to maximize your returns. You can qualify for a larger loan at a cheaper interest rate if you use the property as collateral. Launching a firm requires many things. They can add up in cost for first-time entrepreneurs. Taking out a loan against your home will allow you to accomplish all this without going into serious debt. What are the steps to getting a company loan backed by real estate? Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an immediate deposit of borrowed cash. Step 1: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: Fill out the first application and then provide the details about your income. Then, you will be offered suitable loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative will contact the borrower to collect documentation verifying the borrower’s identity and property. Following these steps, you will find out if your application for a loan against property secured by real estate has been granted. The loan proceeds will be sent to your account after approval. What is a startup loan secured by real estate? There are many differences between a personal loan and a loan against property secured by real estate. Read on for more about the loan’s characteristics and how they could aid in the start of your firm. Commercial property equity loans are cheaper than unsecured loans for business purposes. Taking into account the massive outlay of capital required to launch a corporation, this differentiation might be decisive. Company owners who apply for loans backed by property do not have to relinquish legal or equitable title to the property to the lending organization. You may have pledged the home as collateral for a business loan. But, you and your family are welcome to continue living in the home. Securing a loan against a startup company’s property is simpler than securing a personal loan or other types of loans. You are using the property as collateral. Suppose you fail to repay the loan according to the terms and schedule. Then, your lender may rest assured that they will get the property. Now it’s far less of a hassle to secure a loan against property to launch your company. It’s possible to borrow a significantly larger sum of money against the value of your home. You may not be able to do so with a personal loan or other unsecured loans. For instance, many investors may pool up to Rs. 3.5 crore to provide mortgage loans backed by real estate. The loan-to-value ratio varies from 75% to 90% of the property’s estimated fair market value. Being aware of the benefits is useful in making a well-informed choice on whether to use a real estate-secured loan for startup capital. Anyone, whether self-employed or on a salary, can get a loan against property and keep it even while making payments. You may use the property as collateral to secure financing for your firm. Or, you can keep living there and use the equity for something else. [B-02] Conclusion A loan backed by real estate is the best option for startup owners. Some reasons include the generous repayment terms, competitive interest rates, and the easy application process. Get a loan against your property from Piramal finance if you want to start your own company. Visit our website to learn more about the benefits of a loan against property from Piramal Housing Finance.
08-11-2023
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Home Loan

Know the meaning of the Moratorium Period in a Home Loan

Buying a house is something everyone dreams of. To fulfil your dream, a home loan is a right approach. However, paying off home loans can put you in distress. The reasons could be high interest rates, inconvenient EMIs, a lack of cooperation from the bank, or not having enough time to plan your finances. In such a scenario, banks allow a moratorium period for loan applicants. The moratorium period in home loans reduces the burden of repaying the home loan interest after applying. There are many benefits and some downsides to a moratorium period. [B-01] In this article, you will learn about the moratorium loan meaning. What is a moratorium period? A moratorium period is a time gap given to you by the banks just after you get your home loan. Here, you don’t have to pay any interest or any instalment to the bank. Banks provide this period as a break to help you plan your finances. Sometimes, you might not figure out a way to repay the loan interest the very next day. In that case, the moratorium period in a home loan acts as a great facilitator and provides you with the space you need to plan your budget. A moratorium period applies only to education loans and home loans. For that reason, a moratorium period is also known as an “EMI holiday.” While the loan is in effect, you don’t need to worry about paying the interest. However, you should be aware that you are not exempt from paying interest during the moratorium period. The interest amount adds up to your principal amount, and you have to pay the whole interest once your break is over. The number of days that your bank allows you depends on many factors. What are the Benefits of a Moratorium Period? Now that you have understood the moratorium loan meaning, it is important to know about its benefits. There are several benefits of a moratorium period in a home loan: Planning your repayment process: Since a moratorium period is a temporary break from repaying the loan, you have ample time to plan your repayment process. This is a good time to make an outline and start repaying your instalments. You will also get enough time to restructure your budget. This will ensure that you have enough for your expenses even after paying the monthly instalment. Overcoming a crisis: In situations where you have a liquidity crisis and you cannot manage your finances on time, a moratorium period can help you out. For the period when you have financial distress, you can ask for a temporary break from your bank. As soon as the distress phase gets over, you can start repaying your loan in an orderly manner. This is especially applicable in the situations that we all faced during COVID-19. During that phase, economic activities were compromised, and as a result, there was a huge liquidity crisis. In tough times like these, a moratorium period can give you a break and help you plan. Repaying becomes easy: As repaying becomes easy and convenient after a moratorium period in a home loan, you shed all the extra burden of the loan. You can use a moratorium period to accumulate funds from different sources and make sure that you have enough to restart your repayment. Taking a moratorium period at the start of a home loan can help you pay your instalments on time. No negative impact on your credit score: One of the best advantages of a moratorium period is that you don’t need to worry about your credit score. Your credit score is not affected by accumulating interest rates. This is a temporary break. Now that we’ve discussed the advantages of opting for a moratorium period, let’s look at the disadvantages of doing so. What are the downsides of applying for a moratorium period? Unfortunately, there are some downsides to a moratorium period as well: Burdens your interest amount: The most visible disadvantage of going for a moratorium period is that it burdens you with heavy payments. Your interest rate is still applicable during this temporary break. So you get a sudden increase in your instalment amount. If you have not planned for this situation, it might add some financial distress to your budget. 2. Interest rate keeps adding up: You don’t get a waiver from the interest rate during a moratorium period on a home loan. Even if you have some free time where you don’t have to worry about repaying, your interest rate keeps adding to your principal. So, you still owe the bank the interest rate during this phase. 3. Extra interest charges: Sometimes your lender will deny you the option of paying the due interest rate without penalty. In some cases, your lender charges you an extra penalty. This is in the form of interest rates on your principal amount. You will have to repay your loan once your vacation is over. 4. Longevity of the tenure of repayment: You have taken a break from repaying but are not exempt from the addition of the interest rate. So your principal amount increases, as does your loan tenure. Your tenure increases as your interest rate continue to rise, regardless of the moratorium period. For instance, if you took a loan for 5 years, after a moratorium period, this tenure could add up to 6 or 7 years. [B-02] In conclusion A moratorium period is a special feature that gives you the space you need to restructure your budget. There are both benefits and downsides to a moratorium period, and it depends more on your assessment. There are many finance-related queries that we all have. Piramal Finance provides the best solutions to all finance-related topics.
08-11-2023
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Home Loan

Things to Know Before Applying For a Loan Against Property

What is a Loan against Property? How can you get one to begin constructing your LAP? Read on to find out all you need about real estate-backed loans. A loan against property secured by collateral is best described as “collateral.” It is a loan granted or handed out in return for the mortgage on a property. You must possess property to get a loan against it. You should own a property in which you reside. [B-01] How to apply for loan against property? The client needs to go to the financial institution’s website to apply for the loan against property. The lender’s customer service will contact the applicant and request any relevant papers. The lender will next review the application paperwork before paying a visit to the property. Once the application is accepted, the loan funds are sent to the customer’s bank account. Loan against property interest rates The loan against property interest rates is usually lower than those on unsecured loans. Furthermore, if you have a high credit score and a strong credit history, you will have a greater chance of acquiring a loan with a fair interest rate. Simple methods for completing papers and obtaining permission: A loan against property secured by real estate is usually fast and straightforward to get. The property used to support the loan is the collateral in this scenario. This implies that lending institutions may need more documentation. Provision for deferring debt repayment: Most loanssecured by real estate feature conditions that allow the principal to be renegotiated at any time. If you find the appropriate lender, you can get loans with repayment durations of up to twenty years. Transferring property ownership without a hitch: The individual retains ownership of the collateral property even after repaying the loan. The owner keeps the property as collateral for a loan until the debt is paid off. This condition allows you to sell the property if you cannot repay the loan against property. You should know that you might utilise your property to pay off your debts ahead of schedule. If the loan against property interest rates you took out is variable, you will not be penalised if you pay it off early. This is because the interest rate on a variable loan might vary at any moment. However, if the interest rate remains constant during the loan’s term, you will only have to pay a tiny amount each month. Using the most beneficial trait: If you need money and have property as collateral, you may acquire a loan against property value. Your belongings will remain in this condition. You may receive the money you need without selling your property if you take out a loan, and the interest rates are manageable. Things to consider before applying for a loan Placing property up as collateral is a systematic approach for people needing a loan to get one. Several financial demands may be satisfied with the considerable loan amount secured by a loan against property. However, a few things to remember if you want the loan application process to go as quickly as possible. You should consider five things before applying for a loan against property. Participation Requirements Varying lenders may have different criteria for who may get a property-backed loan. Before applying for a home-secured loan, you should research the lender’s qualifying conditions to reduce the likelihood of being denied. Following that, it’s simple to choose a reputable lender with conditions that work for you and fill out a loan against. An estimate of the value of your house The value of your property is determined by various criteria, including its size, age, location, and many more. So, to obtain a decent estimate of how much of a loan you may acquire against your home, you need to know the property’s total value. Your loan against application is more likely to be accepted if the value of your house exceeds the amount you want to borrow. However, you must ensure that there are no legal issues about who owns the land. Mortgage and other accurate estate-backed loan interest rates The interest rate significantly impacts how much you must repay on loan, including the principal amount and any interest that has been added. Before committing to a single lender, compare your rate alternatives with as many as feasible. Even a modest rise in the loan against property interest rates might make it difficult for a borrower to repay the whole amount. Consequently, consult with various financial organisations, such as banks and lenders, to obtain a reasonable interest rate. Repay schedule When you apply for a mortgage-backed loan, you may be offered many options for how and when you repay the loan. A loan against property from reputed banks may be repaid over 15 years. Because a more extended term equals a lower EMI, the LAP may be an excellent option to save money. On the other side, this might result in future high-interest rates. You may stretch your payments out over a longer time, but you will pay more interest in the long run. Income taxes generate revenue. In contrast to mortgages, there are no tax deductions for interest paid on personal property-secured loans. Taxes are deducted from the money you get when you repay your loan against property. You may be eligible for tax advantages if you intend to use the money you borrowed to start a company or purchase a house. Tax advantages depend on whether the loan proceeds are utilised for a “qualified purpose.” [B-02] Conclusion Many respectable banks and non-bank financial institutions provide Loans Against Property (NBFCs). This implies that both paid and self-employed individuals are eligible for this quick cash. As a result, many individuals choose a Loan Against Property. A residential or commercial property may be used as collateral with the lending firm to get a cheaper interest rate on a line of credit. The finest feature of these mortgages is that they are “multipurpose loans.” This implies that the funds may be utilised for everything from a down payment on a vehicle to a wedding down payment, company development, house upgrades, or medical expenditures. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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