More articles for you

Your one stop place for everything related to finance and lending

Health Insurance

Importance of Critical Illness Insurancec

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

08-11-2023

Personal Loan

Is Balance Transfer A Good Idea For A Personal Loan?

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

08-11-2023

Personal Loan

Most Common Reasons Why People Apply For Personal Loan

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

08-11-2023

Know More

Overview of the Insurance Industry in India

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

08-11-2023

Home Loan

Current Interest Rates For Home Loans in 2022

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

08-11-2023

Business Loan

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

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

08-11-2023

Home Loan

Why people opt for loan against property in India

If you’re in urgent need of liquid cash, your credit score is low, and you don’t have any other collateral to offer up as security, then a loan against property might be a good option for you. A loan against property in India is one alternative option worth considering. With this kind of loan, you don’t have to sell your property to raise adequate funds. The lender instead uses your home or land as collateral and lets you borrow up to 5 crores. In this guide, you will understand why people opt for loan against property in India, the advantages it offers over traditional bank loans, and how you can take advantage of this helpful financing technique yourself. [B-01] Benefits of Loan Against Property Availing of a loan against property is easier in India. There are several reasons why people opt for loan against property in India. Lending agencies and banks prefer to give out loans to those who want a loan against their property, as they have collateral on their side. This collateral is the property itself, which means that if they fail to repay the loan, the lending agency or bank can take away the property and sell it off to recover some of the money owed. There are also other benefits when taking out a loan against your property: You don’t need to go through any credit checks as you would when applying for a personal loan. Interest rates tend to be lower because lenders know you’re putting up valuable property as security. While your personal credit score will still play an important role in determining what kind of interest rate you get on your mortgage, there’s less emphasis placed on it than there is with a personal mortgage. The downside of opting for a loan against property is that you are taking equity from your home by making a repayment instalment. As you continue paying instalments over time, you will gradually pay more than what your home was originally worth when you bought it. The loan amount can be higher. The basic idea behind such loans is that the lender offers to buy your property and will give you money in return. This amount can be higher than the actual market value of the property but is usually lower than the current market price to ensure that your property does not lose its value. Moreover, with a loan against property, you can get cash up-front which would otherwise take a while through traditional lending methods. A loan against property also has the advantage of being easier to qualify for as it just requires a residential or commercial property as collateral without requiring any other form of personal guarantee or security. The repayment period is longer. A loan against property is a popular choice in India because the repayment period is longer. For example, if you want to buy a house and can’t afford it outright, you could take out a mortgage or a loan against property. The interest rate will be higher with this option because it’s riskier for the lender. As with mortgages, you would need to repay the loan over several years rather than just one lump sum. Another advantage of loans against property is that they are often cheaper. They are a good way of buying expensive assets like cars, boats, etc., without spending all your savings on them. Loans also provide flexibility; you can use the money however you want without specific restrictions and deadlines. However, loans have risks, such as being unable to pay off the loan due to unemployment or illness, which means taking up another loan might be required. The interest rate is lower. Loan against property interest rates is lower than the interest rates on a personal loan. Moreover, it’s easier to find lenders who are willing to offer this type of financing, and they don’t require as much documentation from borrowers as banks or other financial institutions. The process is simple; you borrow money by taking out a second mortgage against your property which may be residential or commercial (or both). You then repay the amount borrowed over an agreed-upon period with monthly instalments. Once you have paid off the amount owed, ownership of your home will go back to you. The income tax benefit Another profitable benefit of a loan against property is the tax break. A salaried employee can claim tax benefits on the interest paid (up to INR 1,50,000 to 2,00,000) for a loan against property under Section 24 of the Income Tax Act, 1961, rather than the principal. The loan can be used for a variety of expenses People opt for a loan against their property because they need some form of capital to finance an investment or purchase. They may also opt for this type of loan if they need money but don’t want to sell their property and take a loss on the transaction. Most people use this type of loan to purchase a home, but it can be used for any number of purposes. A person can use the money from the loan for anything that is allowed by the lender’s terms and conditions. The borrower has to repay the loan with interest, so he pays back more than he borrowed. If the borrower doesn’t repay his debt according to the agreement, he risks losing his home. [B-02] Conclusion As you can see, there are a lot of reasons why people opt for a loan against property. Whether it be to take care of their expenses, save up for emergencies, or start a business, there are many reasons and benefits to taking out a loan against property in India. Nowadays, this form of lending is very popular in the country. Lenders and borrowers alike can benefit from the process as long as they understand how it works and the risks that come with it. If you’re interested in learning more about these options, contact Piramal Finance today.

08-11-2023

Personal Loan

List of Personal Loan Providers in Kochi

A personal loan is an unsecured loan, and it doesn’t have any additional expenses. Unlike a home or car loan, a personal loan helps you in adverse situations. These can include going on a trip, buying a new electronic device, paying for your small business costs, making improvements to your home, or combining your debts. You can spend your money wherever and however you want, and the lender has no say. As personal loans are unsecured, you can apply without putting anything up as collateral. Let’s know more about Personal Loan Providers in Kochi. [B-01] Personal Loan in Kochi A personal loan helps you get through, whether your goal is to have a spectacular wedding celebration or meet your urgent financial needs. A personal loan is worth taking out since it has a term of up to 5 years and is offered at enticing interest rates. Between banks and non-banking financing firms (NBFCs), there are numerous Personal Loan Providers in Kochi. Top Personal Loan Benefits Here are some of the main advantages of personal loans. Rapid acceptance A personal loan may be processed in a far quicker time than a mortgage loan, which might take 3–4 weeks. As a result, they are your best option for meeting your immediate cash or payment needs. If you have a strong credit history (CIBIL score of more than 750+), lenders won’t have any difficulty approving your loan request. No need for a collateral Personal loans are unsecured, meaning you may get one without putting up any security. Because of this, getting a personal loan is simpler than getting a house loan, a car loan, etc. But as a borrower, you should be aware that unsecured loans provide a greater risk to lenders, thus the interest rates are often higher to offset this risk and are typically 1.33% or higher each month. Versatility You may get a personal loan without putting up any collateral since they are unsecured. As a result, obtaining a personal loan is easier than obtaining a mortgage, auto loan, etc. Yet, as a lender, you should be aware that since unsecured loans carry a larger risk for lenders, the interest rates are often higher to balance this risk and are normally 1.33% or greater each month. Improves credit rating Getting a personal loan is advantageous, whether it is for a home renovation, an iPhone purchase, or a trip to Switzerland. One loan may also be used for several purposes, unlike home loans and car loans. The present popularity of personal loans is partly due to their adaptability. List of Personal Loan Providers in Kochi Piramal Finance If you’re looking for a quick and hassle-free personal loan that requires zero prepayment, always go for Piramal Finance. A personal loan from Piramal Finance is one of the best options to cater to your immediate financial requirements. If you’re stuck in the process of applying for a loan, the team of professionals will assist you to get faster approvals and disbursal amounts. Interest Range: 12.99% per annum Loan Amount: Rs 1,00,000 to Rs 10,00,000 Timeline: 1 year to 5 years State Bank of India The SBI personal loan is quite an attractive option for salaried employees. There are no hidden charges for this loan. You can apply for the loan online at the best interest rates. Based on the information you provide, you can get instant approvals. Interest Range: 9.60%–13.60% Loan Amount- Rs 50,000 to Rs 30,0000 Timeline: 1 year to 5 years HDFC Bank The HDFC personal loan provides the benefit of affordable EMIs without any additional charges. The individual gets the option of part payment options at the minimum processing fees. The documentation process is straightforward and can be obtained directly from banks. You can provide the documents and get faster approvals. Interest Range: 10.99%–15% Loan Amount: Rs 50,000 to Rs 40,00,000 Timeline: 1 year to 5 years ICICI Bank If you’re applying for a personal loan from ICICI Bank, you must submit the documents accurately. Once the bank checks the documents, they will provide approval. After that, the amount will be credited to your account. Interest Range: 10.50% – 18% Loan Amount: Rs 50,000 to Rs 50,00,000 Timeline: 1 year to 5 years Axis Bank Individuals with a minimum salary of Rs. 25,000 per month are eligible for Axis Bank personal loans. It’s a pain, but it has the best rates. Furthermore, applying for the loan required minimal documentation and faster loan approval. Interest Range: 10.50% – 25% Loan Amount: Rs 50,000 to Rs 40,00,000 Timeline: 1 year to 5 years Punjab National Bank If you’re looking for faster loan credit at a minimum salary, you can apply for a personal loan at the Punjab National Bank. However, you must submit the appropriate documents to get instant approvals. Interest Range: 8.95% to 14% Loan Amount: Rs 50,000 to Rs 20,00,000 Timeline: 1 year to 5 years Bank of India If you’re in search of the best personal loans at the lowest interest rates, the Bank of India has the best personal loan for you. You can get the benefit of trouble-free loan closure with a minimal documentation procedure. Interest Rate: 10.35% – 12.35% Loan Amount: Rs 50,000 to Rs 10,00,000 Timeline: 1 year to 5 years Bank of Baroda The professionals at the Bank of Baroda will assist you with speedy processing. The loan is available for all salaried employees, providing a quick and easy solution for them. Make sure to submit the documents appropriately to get faster approvals. Interest Range: 10%–15% Loan Amount: Rs 1,00,000 to Rs 15,00,000 Tenure: 1 year to 5 years IDBI Bank The IDBI Bank provides personal loans with a flexible repayment schedule and lower interest rates. You can get a personal loan by following these easy steps. However, eligibility will be determined based on the individual’s salary. Interest Range: 9.50% to 14% Loan Amount: Rs 25,000 to Rs 5,00,000 Tenure: 1 year to 3 years Central Bank of India Personal loans are available to confirmed and permanent employees of Indian and multinational corporations through the Central Bank of India. The bank will however avail of a Rs 500 processing charge. Interest Range: 9.85%–10.05% Loan Amount: Rs 50,000 to Rs 10,00,000 Tenure: 1 year to 4 years [B-02] Conclusion : Personal loans, as you can see, are a viable alternative for many borrowers and can be perfect for your particular circumstance. They often have a wide range of uses, are adaptable, and are inexpensive. For more blogs on Personal Loan Providers, check out Piramal Finance and explore their products and services.

08-11-2023

Business Loan

All About Business Loan Brokers and Do You Need One?

If you are busy with your daily business operations or have started a new business and need the best financial options, you should look for a business loan broker. A business loan broker is a middleman whose job is to help you get financial support from the best lenders for your business. Business loan brokers act as coordinators in getting the lender for your business. With their knowledge of the industry, working experience, and relationships with different lenders, a business loan broker can successfully get you a very competitive offer from a lender. [B-01] Business loan brokers work closely with various lenders, so they can easily suggest the perfect lender for your business. Business financial brokers send your proposal to the lenders, and once the lender approves it, that lender will take care of your financial needs. Few business loan brokers will charge fees from the broker, while others work on the percentages they get from the lender. But, the question is: do you need a business loan broker? Continue reading to discover the same as we unfold the nuances of this professional service. How Can a Business Loan Broker Help You? Before you know if you need a business loan broker, it is imperative to know how a business loan broker can help you: A business loan broker can help you understand the complete process of a business loan. The person can also help you find the best interest rates in the market. The person can also help you get faster funding and more time for your newly established business. Your chances of getting loan approval are high due to the experience of a loan broker in the industry and solid industrial ties. A business loan broker can negotiate with the lender to get the best loan offer according to your needs. Types of Business Loan Brokers There are mainly three types of business loan brokers: Commercial loan brokers: They assist in multiple types of loans. They can offer you a variety of options from which to choose. Start-up loan brokers: If you are struggling to get financial support for your start-up, these brokers are best for you. They work specifically with lenders who do not require a particular time in business to lend the money. Equipment financing broker: If you want to take money by collateralizing the equipment in exchange for the money, these brokers can help you. How Do I Find a Business Loan Broker? You can choose a business finance broker according to your needs. You can do so using online platforms. You can look at ratings and reviews about the business loan broker to determine its legitimacy. You can also get a good business loan broker through the referrals of your fellow business owners. You can also contact the local business organisation in your area to get a reputable business broker. But these are time-consuming ways and require you to do extensive research. Piramal can provide you with the best business loan brokers in the market with just a few clicks. You can visit our website to explore your options. How Do I Choose a Business Loan Broker? To choose a business loan broker that can assist in getting financial support from the appropriate lender for your business, you must: Know the number of lenders the particular loan broker partners with. Know their experience in the industry, as more experienced brokers can get you your desired lender with minimal effort. Choose according to the time you can give a business loan broker based on your commitments and needs. Do You Need a Business Loan Broker? It would be best if you chose a business loan broker: If you want to find the best lender without investing much time in research, or if you are a start-up or have a low credit score and are having difficulty finding the desired lender, you should seek the assistance of an intermediator. If you are unsure which lender will be best for you or want to know inside details like processing time and criteria based on which lenders work, you must opt for a business loan broker. If you are applying for a business loan for the first time and want to save the time required to know the application submission process, in that case, a business loan broker can help. You can hire a business loan broker if you need to fast-track your loan process. You can visit the Piramal Finance website and explore various options there as well. Business Loan Broker Alternatives You might have a bad experience with business loan brokers in your region. So, is there an alternative? Small business owners who can handle their business loan application alone might not need a broker. These businessmen can use a business loan marketplace to compare different lenders. However, if you use this method to obtain a business loan, you may require more personal guidance and will most likely miss out on the best offers. You can also reach out to lenders on your own, but in this case, you must have good credit and a solid financial background. That is rare for small-scale business owners; hence, you require a business loan broker. Be Aware!! Now you know whether you need a business loan broker and how to find one. You should also be aware of the following precautions while choosing the loan broker for your business: Some business loan brokers favour a specific lender based on the commission they get. This can cause a conflict of interest that can harm your business. Some business loan brokers charge higher fees, and you need to do market research to find the cheapest and best broker, which might be time-consuming. Hence, always choose business loan brokers from trusted financial partners and websites. [B-02] Key Takeaway Choosing a business loan broker can give you a competitive edge in the dynamic market. You can meet your financial needs faster and make the best decisions for your business. You can also negotiate with the lender regarding loan terms. But all this is possible if you choose an authentic and genuine intermediary for your business loan. If you want to know more about business loan brokers or consult a financial expert, visit the Piramal Finance website.

08-11-2023