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Personal Loan

Which are the important features of Personal Loans you must know in the current year

Despite all the planning and saving, there are times in our lives when we need a large sum of money. In those emergencies, you often turn to banks for personal loans. While the benefit of a personal loan cannot be denied, certain technicalities push people away. This is exactly why it’s necessary to know the important features of a personal loan before you get one for yourself. In this article, we will look at what a personal loan is, how they work, and some of the top features of personal loans for the current year. [B-01] What is a Personal Loan? A personal loan is a loan where no collateral or security is required. A personal loan also requires very minimal documentation. This loan could be used for any personal financial need or an emergency. Personal loans are very easy to apply for, and the qualification requirement is not very strict either. While other loans would require a lot of paperwork and collateral, personal loans are designed in such as way that availing them is a relatively simple process for a person. Like any other loan, a personal loan also requires to be repaid with respective interests and in the agreed time. How do Personal Loans work? For you to get a personal loan, you must contact your bank or any other lender available to you. You could apply for however the amount of money you require and put forth ahead of the bank. The bank/lender would then check your credit/CIBIL score and determine if you’re trustworthy enough to be given that amount of money. Usually, banks require a CIBIL score of over 720 for a person to be given a personal loan. However, other lenders offer loans despite a lower CIBIL score. After checking the CIBIL score, the bank comes up with the amount they can give and the various payment tenures that can be chosen. There has been a stark rise in people taking personal loans in recent times. Ease of access to personal loans is a major factor behind their success. However, there are other important features you should know before going for a personal loan. Those important features are mentioned below. Important features of Personal Loan Rate of interest First, you would need to go over the interest rates of different personal loans. This will tell you how much you need to pay while repaying the loan amount taken from the bank. Currently, personal loans beings offered in India range from anywhere between 9.99% to 49%. The interest rates depend on your CIBIL score, which should be between 720-750. This score defines your trustworthiness, and lenders will approve your personal loan quickly if you have a good CIBIL score. No collateral Probably the best feature of a personal loan is that it does not require collateral. Since personal loans are unsecured loans, banks don’t ask for property papers as collateral, as is the case with other loans. A personal loan is strictly based on your ability to repay the loan which is why lenders/ banks ask for your monthly income and your credit score. Fewer documentations People often take personal loans in case of any emergency, which is why these loans are required to be disbursed quickly. Since other loans like home loans, education loans, etc., require a lot of documentation, it is often that banks take a significant amount of time to pay them. This is, however, not the case with personal loans. These loans require a lot less documentation and hence are given in a short time which is helpful when money is needed on short notice. Flexible usage While other loans such as car loans, home loans, and educational loans can only be used for that specific purpose, personal loans do not have this rigidity attached to them. A personal loan can be used for any necessity, such as weddings, travel, medical expenses, etc. Multi-purposeness of a personal loan is one of the very important features, and this is why many go for personal loans when in need of financial help. Payment flexibility Another key feature of a personal loan is that it allows the loanee to choose from multiple payment timelines. You could choose to repay the loan in a short duration if you have a good salary but could also choose affordable monthly payments if you require more time. A personal loan tenure could be anything between 12 months to 60 months which gives the loanee enough time to repay the loan amount as per their financial standing. Flexible loan amount Another important factor that you must know about is that personal loans offer flexible amounts. You could take a personal loan from anywhere between 10,000 to more than 40 lakh. No matter what you need money for, be it a small amount that you need for a smartphone or you need a vast sum for a wedding, you could go to a bank and ask for a personal loan based on your salary. Tax benefits Another essential feature of a personal loan in 2022 is that you could get a tax deduction. You could be eligible for INR 2 lakh as per section 24B on your personal loan based on the usage of the loan amount. The bank would require you to see an adequate document for you to collect the tax benefit on the personal loan. [B-02] Conclusion In conclusion, personal loans have many benefits, but you need to consider some above-mentioned factors. These factors will help you curate the best personal loan for you. You must make sure to repay the loans on time so your CIBIL score remains healthy, and you could take other personal loans in the future as well.

08-11-2023

Business Loan

Important Things To Know About Online Business Loans In India

A company’s ability to thrive in today’s market is tied to its ability to make more money. But fast expansion is not possible without adequate funding. If you do not have the finances to support your business ideas, a small business line of credit is the best option for you. Businesses take out a small business line of credit to cover anticipated and unexpected costs. The amount of money you can borrow depends on your business’s size and growth prospects. Here are some important points to keep in mind if you want to take advantage of a business line of credit in India. [B-01] What is a Business Line of Credit A business line of credit is a sum borrowed from a bank or other lender to grow a business. It means expanding the financial well-being of a company through various means. This includes increased investment, business development and so on. This funding is useful for firms because it allows them to meet their current and future growth needs right away. Why Do You Need a Business Line of Credit To help your company grow, consider applying for a business line of credit. You can invest the funds in certain areas such as new machinery for expanding facilities, hiring new staff members and more. You can also use the money for the management of regular operating expenses. A business line of credit is very useful for maintaining productivity and capitalizing on opportunities. Hence, India’s SMEs still rely heavily on the banking industry for their funding needs. What is an Online Small Business Line of Credit or Business Loan A small business line of credit is a viable alternative for financing a company. But, it can be difficult to secure for several reasons. Business loans are now being processed and dispersed digitally by NBFCs and direct selling agents. Online applications and approvals mean you can get the money you need from your home or office. Getting a small business line of credit for a business online has become increasingly common among entrepreneurs. This is because banks have stringent requirements for business loan applicants and collateral. Benefits of Online Small Business Line of Credit These are the benefits of taking a business line of credit for new businesses: 1. Quick and Easy Application Procedure With an online business line of credit for new businesses, avoid the hassle of filling out long applications. The application is short and can be completed entirely online. You can submit the form and any supporting documentation online. 2. Flexible Tenures Paying back an online business line of credit for new businesses is simple since you can adjust the terms to suit the borrower’s needs. A small business line of credit for new businesses has terms ranging from one year to five years but this can vary depending on the lender. 3. Flexibility There are no restrictions on how funds can be used from the business line of credit for new businesses. Instead, you can spend the money you borrow on anything that helps your company grow. For example, online lenders offer various types of business loans including capital loans, lines of credit, equipment and term loans. 4. Top-Up Loan Facility If the amount you borrowed is not sufficient to cover all your expenses, you can receive extra money through the same business line of credit for new businesses through the top-up loan service. The bank will merge this new business line of credit for a new business with your existing balance on that account and you will simultaneously repay both. Eligibility Requirements To be eligible for a business line of credit: You must be between 21 and 65 years of age Your business must be a minimum of 3 years old You must be an Indian citizen or resident You must be self-employed under any of the categories: Business owner Sole proprietor Partner of a partnership firm Promoter/director Doctor CA Architect You must have a CIBIL score of 750 or more In addition, some banks also require you to either have a minimum annual revenue or own at least one property. Documents Required Here are the documents required for an online business loan: ID proof documents Address proof documents PAN card Proof of business ownership Company’s financial documents Bank statements and other financial statements Application Process You have the option to apply at your nearest bank branch or online. Once you obtain the application form from your lender either in person or on their website, make sure you fill out the form accurately and that all the information you enter in the form matches the information in your documents. Attach or upload all the supporting documentation and submit the form for approval. Once your business loan has been approved, the funds will be transferred to your bank account. How to Ensure Loan Approval Consider the following recommendations to ensure your small business line of credit is approved: 1. Maintain an Excellent Credit Score If your credit score is high, it shows that you are responsible with your money and are less likely to miss payments. Yours or the founder’s credit history determine the business line of credit eligibility. The company’s payment history is also important. Loan eligibility and interest rates are both improved with a credit score of 750 or higher. 2. Show a Strong Cash Flow in the Organization The lender will examine your business’s cash flow estimates to verify if it is adequate for the loan amount you are requesting. Past filings and other financial information will also be examined. [B-02] Conclusion You can take a small business line of credit for various reasons. For example, to start a new business, grow an existing company or pay bills. There are several perks related to a small business line of credit. These perks enable the founders to run their companies. They also help the founders show their potential. But, you must apply for a business line of credit online only after carefully weighing the pros and cons. For more articles like this one, visit the Piramal Finance website and receive more detailed information and guidance on a business line of credit.

08-11-2023

Know More

Personal Loan Transfer: Is It Beneficial To Transfer Personal Loan?

You have undoubtedly heard of personal loans and may have used a few yourself. With so many financial obligations to take care of, there comes a time when you may feel overwhelmed and wonder how to manage these altogether. One option is to transfer your personal loans, which will make your monthly payments easier and provide you additional access to credit and raise your CIBIL scores. [B-01] What is a personal loan balance transfer? When you transfer the outstanding personal loan balance from one bank to another, you are using the personal loan balance transfer facility. This generally happens when a new bank offers a much lower interest rate than what has been previously provided to you. Interest rates could also be because of better services and benefits being offered by the new bank. The main reason you can think of availing of this service is to reduce the burden of paying a heavy interest rate and save some extra money. Transferring the personal loan to the new bank would mean paying the excess amount at a lower interest rate. It would also mean that you should be very careful while going ahead with the new bank and signing up for a new transferred loan with them. How does the balance transfer for a personal loan operate? In case you were curious, here is a brief example to help you understand the procedure for moving a loan from one bank to another. For instance, suppose you now have a personal loan from an “X” bank with a higher interest rate and are looking to switch to a “Y” bank for a loan with a lower interest rate. Your name will be used to open a new personal loan account at the “Y” bank with a more affordable interest rate. It will pay off your personal loan with the “X” bank, and if there are any other charges, it will ask you to incur those in addition to the processing fee for your new loan account. Benefits of transferring a personal loan A personal loan transfer may or may not be advantageous to you, depending on certain circumstances. It would be best to weigh the advantages and disadvantages before applying to a new bank. Here are a few situations that may be advantageous to you as you prepare to move your personal loan. Interest Rate Interest rates are one of the key causes of personal loan transfers. It’s possible that you had to accept the loan at a higher interest rate when you took out this loan in the past because you had no other choice. You should always be on the lookout for options where banks decide to offer better interest rates. You should consider accepting the loan if the new bank offers an interest rate of at least 1% or more than 1% lower than your previous loan. A difference of less than 1% might not significantly impact how quickly you can repay the loan in the long term. Additional services Transferring your personal loan could also be advantageous if the new bank offers more services than your old bank. This feature largely depends on your credit history, CIBIL score, and income fluctuations. You might be qualified for services like no processing fees or EMI waivers for the final payment. The extended term of the loan The term, or tenure, of the loan, is frequently mentioned at the time of transfer for personal loans. You can choose to increase or decrease the loan’s term based on how much money is still owed and the interest rate is given. Loan in the early stages You always pay the interest rate when you take out a loan, regardless of the type. Simply put, when you begin making EMI payments, the interest rate will be covered before moving on to the principle. Therefore, in a perfect world, interest payments would account for more than 70% of the first-year payment. Therefore, you should look into a personal loan transfer at the beginning of the loan itself if you think the interest rate is too high. Since most of the interest rate would have already been deducted from your existing loan, transferring the loan in the second half will not result in any financial savings. Increase in the loan capacity The majority of banks have the option to add to an existing loan, including a personal loan. These services are typically provided at very affordable costs. They may even be of assistance to you if times are tough financially. While you want to transfer the loan, it is preferable to negotiate this alternative to prevent you from taking out more loans in the future. Interest rate specific to the workplace Most offices work in tandem with various banks, providing employees with loans at lower interest rates. Transferring the loan may be advantageous if your business has a similar connection with a bank offering a cheaper interest rate. [B-02] Final thoughts It is always daunting to take a loan, be it personal or any other kind. You should always ensure that when you transfer the loan, it is similar to taking a new loan. So, until and unless there are offers that are irresistible, do not go for a transfer. Always compare the pros and cons of transferring before signing any new document. If you feel that the benefits are less or similar to the ones you are already getting, it would be advisable to stick with your existing bank and try, and finish off the loan, unless otherwise needed to change with no options available.

08-11-2023

Home Loan

Most important factors of loan against property you should know in 2022

A loan against property can benefit you if you plan to expand your business. A loan against property is ideal for businesses of all sizes, whether they need the money to pay employees or suppliers, stock merchandise to meet rising demand, or pay for operating costs. Due to a secured status and lack of end-use restrictions, loans against property have been in extremely high demand. A loan against property is a loan that financial institutions provide against existing property. Other loan types, including project, personal, and company loans, fall short compared to loans secured by a property. It happens because you can get a larger loan at comparatively lower interest rates. [B-01] Although taking out a loan against property in 2022 is very simple, there are some factors you should be aware of. Thinking of getting a loan against property? Take the following factors into account. Property valuation and an appraisal are performed. The lender will determine how much principal amount you can take as a loan against the property. It depends on the value of your property. The lender will first check and access your property. After this, they will run it against a value proposition and give it a valuation. NBFCs check the paperwork to ensure the current status of the property. They also review documents to ensure the property is freehold, new, and has a clear title. Co-owners can also participate in the process to increase their eligibility. If all goes according to plan, the loan will be approved between 50% and 70% of the market value (of the property). To measure the market value, use the Loan-to-Value (LTV) ratio determined by the lender. Interest rates are lower. Compared to business and personal loans, which are unsecured, loan against property (LAP) loan amounts are issued at lower interest rates. This is because LAPs come with security as you pledge property as collateral. Due to this, the interest rate will be lower with better loan security and a smaller margin amount authorized. It lessens the likelihood that the lender will suffer significant financial losses in the event of non-repayment. You can further decrease the interest rate by following specific guidelines. You can convince the lender to provide you with an overdraft and credit limitations on your LAP. Then, you will only have to pay interest on the amount you use from the loan rather than the entire sum. In addition, the policies of the lender you apply to will determine the interest rates. It will be based on your credit history, income, and other factors. Additionally, you will have to choose between floating or fixed interest rates. Fees and processing times should be considered before applying. Depending on their terms and conditions, processing fees are applicable on every LAP sanction by the lending banks. Processing fees might be between 0.5% and 3% of the approved loan amount. After approval, this could be charged upfront or subtracted from the loan’s principal. Stamp duty fees and convenience fees for changing interest rate structures could also be assessed. To calculate the actual loan cost, you must also consider the prepayment penalty and foreclosure costs. A LAP also takes longer to process than a personal loan, which may often be done in a few days. The reason is simple: lenders inspect the property for encumbrances and conduct a valuation assessment. Loan duration and repayment options are available. The loan’s duration is also a significant consideration to take into account. Lending institutions typically give loans ranging from 5 to 15 years. As long as the applicant repays it before they retire, the period can go up to 20 years. Therefore, if you are a paid individual in your 40s searching for a LAP, you can take a loan with a 20-year term, presuming you will retire in your 60s. Find the right balance to balance the loan’s term and your EMI payments. It is crucial if you choose a loan with fluctuating interest rates because it would consider the compounding effect. Even though extending payments over time lowers the monthly EMI burden. A longer tenure may result in higher interest payments overall. Through a shorter loan tenure, you can ensure interest cost reductions. There are tax advantages. Unlike personal loans that have no tax benefits, LAP is more attractive. LAP provides you with better interest rates, and you can also get tax benefits. As per the Income Tax Act, a person who earns through salary can avail of interest exemptions. However, it is only possible when you use the loan to purchase a new home. Similarly, certain benefits are also given to business owners as tax rebates for the interest they paid against LAP. Having a thorough understanding of the lender’s requirements is necessary. Your eligibility for a LAP depends on the specific standards of that financial institution. For example, for a loan of Rs. 50 lakh, bank A might demand that you need to be 25 years and above, whereas bank B might need you to be 21 years old before they grant you a loan of Rs. 30 lakhs. Understand the requirements of the lender to determine if you qualify. Credit (CIBIL) score will be checked. A high CIBIL score is crucial when the lender assesses the LAP. To get low-interest LAPs, you should have a strong credit score, typically over 750. Start making on-time EMI payments. Also, utilize less than 30% of any credit limit given to you to raise your credit score. [B-02] Conclusion Aspects like interest rates, how you handle payments, and loan tenure are important before selecting a LAP sanction. Your age, income, payment history, and creditworthiness will affect the loan terms. Therefore, it’s necessary to investigate and assess each LAP financing alternative. Piramal Finance is the best option if you are looking for a reliable and trustworthy lender. The company offers LAP loans for all your needs through a user-friendly online application process. Moreover, all the loans come at affordable interest rates with flexible payback schedules.

08-11-2023

Personal Loan

Reasons to Take a Personal Loan this Diwali

For Diwali, you put up rows of lights all around the house. Getting your family and friends together, making them a delicious meal with lots of desserts, and then giving them a gift at the end. This makes the festival sound like a beautiful celebration of love, happiness, and community. But from a financial point of view, all of this will cost you a lot of money and will almost certainly go over your budget. During the party, you can see the happiness on the faces of your loved ones. You can’t let that go to waste to save money. But there is an affordable way to have a great Diwali like you’ve never had before. You read that correctly: you can apply for a personal loan to help you pay for your expenses this Diwali. You want to know how. Even though we don’t need a loan to celebrate Diwali, you’ll be surprised to find out why you might want to get an instant personal loan this holiday. [B-01] Top Reasons to Get a Loan Right Away for Diwali No-cost EMI Just before Diwali, most appliances and gadgets are sold on free EMI. Now is the best time to buy any gadgets or electronics you want. You can use your card to pay the deposit and buy the device if you get an instant loan. Festive Sales As soon as the holiday season starts, all e-commerce sites offer deals and discounts. They call these “holiday sales.” People will be able to buy more of the product because the price has decreased. This is good for the brand and the e-commerce business. Even from the customer’s point of view, it makes sense. This is because they get the same goods for less money than they would have if there hadn’t been a sale. Buying Property Now is the best time to buy a house or other piece of land. Some of the housing incentives the bank offers during Diwali to get people to take out a home loan are a discount on the down payment, no processing fees, and even a free interest period. All of these are good for you. Because home loans are bigger commitments, it would be very helpful to start saving. Getting an instant loan could be a great way to pay for the down payment or reserve one for yourself. Since the amount you get from an instant loan won’t be too big, it’s easy and quick to pay it back. Gold Purchase on Dhanteras All brands, like Tanishq, Malabar, and many more, offer deals like free shipping, discounts, and so on. Why not buy gold at a certain time? Diwali is a festival that honors Goddess Laxmi, and one of the most important parts of the ceremony is buying gold. Let’s say you want to buy a gold chain this year but might need more money. You plan to wait five months and buy it when you have more money. But think about whether you’ll be able to get this offer at that time. Will it be a lucky thing? So why not just buy it now? Use an instant loan to buy gold. Get the money in two hours to make your loved one’s day special. There are flexible and affordable ways to pay back the loan. Diwali: India’s Peak Buying Season People spend the most during Diwali. They spend money on clothes, gifts, homes, families, trips, etc. During the holiday season, there are sales on everything from clothes to big-ticket items. People spend money on holidays like Bhai Dhooj, Diwali, Karvachauth, and Dhanteras. You also have to spend money on yourself and your family during the holidays. It might be too much for your budget if you buy many big things in a single month. To deal with the sudden increase in expenses, you need more money. Also, wedding season comes right after Diwali, so people often need new clothes and a bigger budget. The easiest and most convenient way to deal with the situations above is to get a personal loan. On a personal loan app, you can fill out an application for a loan. Through the app, you can get the amount of money you want with the least amount of paperwork. After loan approval, the money is put into your account quickly. Things You Can Also Do This Diwali With a Personal Loan Renovating Your Home or Office Around Diwali, many people try to change their furniture and give their homes a new look. Diwali is a great time to improve your home and get everything ready for parties, even if that means buying a washing machine, dishwasher, and smart TV. This is the time of year when most home improvements, especially painting, are done. Buying Electronics The best time to buy expensive things, like DSLR cameras, air conditioners, vacuum cleaners, and other gadgets is around Diwali. It makes sense if you keep putting off buying these things because your budget is tight and you only have a little cash on hand since their prices are always on the high end. But since Diwali is coming soon, you can start taking advantage of all the deals and sales immediately. Taking a Vacation Diwali is one of the best times to go out and calm your soul during the holiday. It is a great time to plan a trip because everyone is always in a vacation mood. Celebrate Diwali by taking your family to the hills or a beach resort. By getting a personal loan, you can go to your favorite place even if you only have a small amount of money. [B-02] Conclusion Some people even look forward to changing their homes around this time. It makes perfect sense to meet your loved one’s needs, even if your budget doesn’t allow it, and to give in to the urges that the holiday season calls for. No one can avoid the charm of Diwali, from getting new clothes and gifts to planning family get-togethers. Getting a personal loan could help you stick to your budget and pay for any extra costs for Diwali. You can learn more about personal loans by visiting Piramal Finance in detail.

08-11-2023

Personal Loan

What is a moratorium period in a personal loan, and why is it used?

When you get a personal loan, you have to pay back the EMIs over the length of the loan. The time during the loan term when you don’t have to pay back the loan is called the “moratorium period.” Before you start making payments, there is a short break during the payback period. But if you choose a moratorium, the loan will last longer, and interest will be added to the principal balance. This time frame aims to give the customer more financial freedom. [B-01] What is a moratorium? A “moratorium period” is an agreed-upon part of the loan term when the lender is not required to make any payments. It could be seen as the time the lender has before paying back the loan in equal monthly payments (EMIs). When getting a loan, you usually must pay the EMIs from the first day of the loan term until the last day. During the moratorium, the lender will not have to pay any money to the lender. Even if you don’t make any payments, you will still get money on credit. Your loan account will be charged. A moratorium period is often part of higher education loans. During the moratorium period, the loan applicant, a student, will not have to repay any loan. The loan can be repaid if the student finishes school and gets a job afterwards. The lender will decide on a waiting period that the applicant must follow. You don’t have to make any EMI payments during a moratorium, so this time is also called an EMI vacation. It is given to people who want to borrow money for student and wage loans. Because there is a moratorium period, many people choose education loans over personal loans when they need money to pay for school or to go abroad. You won’t be able to use a moratorium period to help with your request for a personal loan. Once a student is in college or university, it might take a lot of work to start paying back a loan immediately. They could start making payments as soon as they start making money. The main purpose of a moratorium period is to ensure that the person applying for a loan can start making payments. How will the interest on my loan be worked out during the moratorium? For simple interest, the outstanding balance of the principle at the time in question is used. When this term is over, your EMI or term (or both) will change as needed, and a new schedule will be made based on how much of the original loan is still owed. What are the pros of a “moratorium” on a loan? A better way to pay back A personal loan moratorium could help a lender plan to repay the loan without stress. They might be able to get money from different places and start paying back the loan instead of rushing to pay with more cash. Lenders can use loan moratorium periods to plan their monthly income and expenses and save money for upcoming EMIs and other costs. No harm done to credit score: One of the best things about a loan moratorium is that it doesn’t hurt your credit score. So, a moratorium period does not affect how much you can borrow. Aids amid a liquidity crisis: The Covid-19 outbreak was a stark reminder of how much damage a single event can do to the economy. People lost their savings when they lost their jobs or when the main breadwinner in their family died. So, not having enough cash or a liquidity crisis is a big problem for many people. In this case, you might need a loan moratorium to help you get through a tough financial situation. What are the cons of putting a loan on hold? No interest-free loan: One of the biggest problems with a loan moratorium is that interest doesn’t go away; it just gets put off. You still have to pay interest to your bank or other lenders. Moratoria can also cause interest rates to go up, which makes it harder for you to make payments in the future. Unexpected burden: Even though a short break from debt payments could be nice, the truth is that the interest on your debt will catch up with you. If you have yet to plan, a sudden load of big payments could also throw off your cash flow plans and monthly budget. Loan terms getting longer: Loan terms are always longer when EMI breaks are longer. For example, if you get a moratorium on a loan with a three-year payback term, the term would now be extended to four or five years. Your long-term financial goals could be hurt, and your plans for a stable, debt-free financial future could be thrown off track. [B-02] Conclusion People who are having trouble with their cash flow and want a short break from their problems could benefit greatly from a moratorium. A moratorium must be put in place so that payments made after the moratorium period is over can still be controlled. It is used by people who need money badly and can repay the loan. If you want to find out more about personal loans, you can visit Piramal Finance.

08-11-2023

Personal Loan

The List Of Top Personal Loan Finance Companies In India

Financial institutions offer many different kinds of personal loans to meet different needs. Technology has made applying for a loan faster and better over time. People may now find it easy to get loans. The most common type of loan in India’s debt market is the personal loan. In India, this is true of more than 78% of credit requests. Several people who want to borrow money choose these loans because they don’t require collateral. A personal loan is money you borrow from a bank, an online lender or your credit union. After you get the money, you follow a plan to pay back the lender until the loan is paid in full. [B-01] Things to consider before choosing a Personal Loan Interest A lot of people are interested. It depends on the person’s profile, ranging from 10 to 22%. Loan Amount When it comes to personal loans, the amount of the loan can be pretty big. It depends on how much money the person makes and their credit history. Funds Disbursement The money is given all at once. The lender sends the money straight to the account of the borrower. Charges There are many different fees that banks charge, such as processing fees and late fees. Top Companies for Personal Loans AXIS Bank Axis Bank gives personal loans to salaried people, experts, and self-employed people. They have a very simple system for processing loans, and they can approve loans quickly and with little paperwork. Axis Bank’s loan is called “Personal Power,” It comes with an interest rate of 15% for salaried employees and 23% for self-employed people. UCO Bank The personal loan from UCO Bank could be paid back in 48 equal monthly payments, and it could be used to pay for things like travel, a wedding, or medical bills. They offer personal loans with a minimum term of 12 years and an interest rate of 13.5%. They also respond to consumer requests for personal loans in just 7 days. State Bank of India The State Bank of India gives out personal loans to help people pay for different personal costs. At a competitive interest rate, you can get a personal loan like this without paying any fees or penalties for paying it back early. SBI also gives out personal loans with easy terms for paying them back. ICICI Bank Personal loans from ICICI Bank are easy to get, have low-interest rates, and can be paid back over 12 to 60 months. They offered term and personal loans with maximum and minimum interest rates of 12% and 14%, respectively, for salaried employees and 22% and 24%, respectively, for self-employed employees. Punjab National Bank Punjab National Bank gives personal loans to people who work for the state or federal government, for the ITBP, CISF, CRPG, BSF, or who are permanent members of the armed forces. These workers can pay back their loans for the rest of their jobs or in 60 equal monthly payments, whichever comes first. Andhra Bank Andhra Bank, which has offices in Hyderabad, Telangana, and has since merged with Corporation Bank to become Union Bank of India, covers all personal expenses. The annual interest rate offered is between 15.75 and 16%. The amount of the loan is between 50,000 and 15,000,000. After 12 years, you can pay back the loan in full. Mahindra Finance Mahindra Finance is one of the best NBFCs but has the least competitive numbers in the market (Non-Banking Financial Companies). The interest rates on their loans could be as high as 26% per year. Up to INR 3 lakh can be borrowed, and the longest time that can be borrowed is also not very long. Canara Bank Canara Bank has a personal loan for teachers that is made just for them. The teacher’s loan is perfect for people who are just starting as teachers and are currently unemployed. At 12.40% p.a., the interest rate is pretty high. The most you can borrow is INR 3 lakh, or if that’s less, 10 months of gross income. For a personal loan, you can borrow up to INR 3 lakh or your gross salary for six months, whichever is less. The loan interest rate is between 11.30% and 12.30% per year. Piramal Finance Piramal Finance, which used to be called Dewan Housing Finance Corporation Ltd., is a wholly-owned subsidiary of Piramal Enterprises Limited, the main company of the Piramal Group. Piramal Finance is involved in several financial services businesses. It is only signed up as a housing finance company with National Housing Bank (NHB). It gives businesses opportunities for both small and large investments. The site offers housing finance and other ways to pay for real estate, including construction finance, senior secured debt, structured debt, and rental discounts for flexi-leases. Keep in Mind Points to be noted Before you apply for a personal loan, it’s best to check your credit report: It’s important to make and stick to a budget. You should only borrow money when needed; you shouldn’t borrow more than you need. Before applying for a personal loan, consider how much interest the company charges. Look into the fees the business charges for sending payments, as some of these fees are for early payments. Make sure you can repay a personal loan before asking for one. [B-02] Conclusion Even if you go through the whole list and pick the best loan provider, it won’t matter if your credit history or credit score is hurt. When you borrow money, you need to think about and evaluate every part of it. Along with their money, the people who lend you money also give you their trust, which is very fragile and fragile. So, if you want a good experience, you need to take responsibility for your loans and credits. If you want more information about a personal loan, you should go to Piramal Finance.

08-11-2023

Personal Loan

This is How You Can Check Personal Loan Eligibility Online

In general, personal loans can be either secured or unsecured. So, getting a personal loan without putting up any collateral is possible. So, you can get your loan quickly because you don’t have to go through the process of verifying your collateral. You can choose how to spend the money you get from a personal loan, which makes them a good choice for many situations. In addition to what has already been said, you will find that many major lenders have made it easy to get a personal loan by setting simple requirements. [B-01] Before applying for a loan, you should ensure you meet the lender’s eligibility requirements. Don’t be afraid! We will walk you through this article on how to check personal loan eligibility criteria. The current article will provide several guidelines to make applying for a personal loan more accessible. Basic requirements to apply for a personal loan. Lenders look at many factors when deciding whether to give you a personal loan. All lenders look at these factors, so you can quickly check personal loan eligibility by looking at the ones that are the same for all lenders. Age Your age is a big part of whether or not you can get a personal loan. Most lenders won’t look at your application if you are younger than 23 or older than 55. If the applicant is younger than 23 or older than 55, they may not have enough money to repay the loan amount. Place of living and citizenship Most lenders also want you to be a resident of India and a citizen of India. Also, you have to make at least the minimum amount of money each month based on where you live. To get a personal loan, you must be eligible. Earnings and Employment A person’s work history and the reputation of the company where they work are two of the most important things that determine whether or not they can get a personal loan. If you work for a well-known public-sector organization, a well-known private organization, or a multinational corporation, the lender may give you better loan terms because they think you have a stable income. In addition to your income, they check personal loan eligibility by looking at how much you earn. If you want to be able to apply for a loan, you have to make at least a certain amount each month. Credit rating Your credit score is a big part of whether or not you can get a personal loan, so it’s important to know this. This credit rating score is given to you by a credit rating agency to show how creditworthy you are. It ranges from 300 to 900 points and shows how well you handle your credit. High scores show that you are committed to paying your bills, while low scores show that you are not. Personal loans are unsecured loans, so your credit score is a big part of how much a lender trusts you. You usually need a credit score of at least 750 to get a personal loan. If your credit score is high, you can get better deals. It makes it easier for you to find the best loan deal you can. How To Check Personal Loan Eligibility Online You can easily check personal loan eligibility by following some things: Visit the site of the lender. So, let’s say you want to borrow money. In that case, you can look at the loan’s requirements to see if you meet them. You can do this by going to your lender’s main website. Visiting the official site is much faster and easier than going to the branch and talking to an employee. You can also look at the personal loan documents list in the pdf you need to send in to get a loan. Use the personal loan eligibility calculator Personal loan eligibility calculator can make it easier to check personal loan eligibility in less than a minute. It’s an easy-to-use online tool that will provide accurate information about your chance of getting a loan based on your current financial situation. To determine your eligibility, you typically need to enter the following information on the lender’s website. These calculators are designed based on the lender’s specific requirements, so you’ll get accurate results. The city in which you live Birthdate or date of birth Monthly income Expenses per month You can get an idea of how much you can borrow through the calculator if you are eligible. Steps To Check Personal Loan Eligibility Using Online Calculator You need to check your personal loan eligibility before applying; you can do that by using the eligibility calculator. Below is how to use the eligibility calculator to find out how eligible you are for a personal loan: Log on to the loan eligibility calculator provided by your lender. Enter your city of residence, date of birth, employer, and monthly income and expenses. The tool will show you how much you’re eligible for when selecting these fields. You can apply for the same amount and get quick loan approval. How to Check your Personal Loan Status Your personal loan application status can be tracked easily online. Most reputable lenders on the market have developed their own online tracking systems. Now, customers can easily check on their loan applications at any time. If you wish to track your loan status, you can visit the lender’s website and enter the following information: Application reference number Mobile number Date of birth Name Upon providing any of the above details for verification, you can easily obtain the status of your loan application online. [B-02] Conclusion This article is dedicated to providing information that will assist you in checking personal loan eligibility in the simplest possible way. Hopefully, now that you have read the article, you will be able to apply for a personal loan easily. For instance, if your loan application gets rejected, you must consider taking loans from other providers. For similar blogs like this, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Business Loan

What are the benefits of seeking venture capital vs. a business loan?

You have a business plan in place. You are ready to take the flight of success. What is the first thing that you need to plan? Financing yourself and your “start-up baby” However, you may be reluctant to approach banks for loans. Do not worry. Here is our guide to helping you with business financing and letting you know about venture capital and business loans. [B-01] What exactly is venture capital? Venture capital also referred to as “VC,” is the financing obtained in exchange for ownership or equity in a company. Investors, also known as “venture capitalists,” make investments in companies with high growth potential. They offer you financial assistance while also sharing profits with you. This financing is more suitable for you if you are in the early stages of entrepreneurship. Benefits of Venture Capital Here is why venture capital may prove a boon for you as someone who is looking for financing for his or her business: Hassle-Free Borrowing- While lenders and banks may be reluctant to finance your dreams at an early stage, venture capitalists extend their helping hand when you need them the most. Access to finance ‘Gurus’ and their guidance– Along with financing, comes the guidance of skilled venture capitalists. Isn’t that a little something extra, good, and much needed? Say ‘bye-bye’ to debt repayment worries– If your dream project fails to take flight, the VCs simply lose their investment. You will never have to worry about debt repayment, even in times of crisis. No security needed– Banks and financial institutions require security before giving you financial assistance. You do not need to keep any assets as collateral with the VCs to obtain funds. Let’s get ‘networking‘- Access to experts in the industry also gives you instantly what may take years to build: networking. What exactly is a business loan? A business loan is a debt that can be secured or unsecured. It is an agreement between you and the lender whereby you agree on the terms of repayment of the loan. The loan has to be repaid by you within the time stipulated. The amount of interest is also agreed upon by both parties. Here are some types of business loans: Term Loans Business lines of credit Equipment Financing Investment Financing Commercial Real Estate Loans Micro Loans Benefits of a Business Loan Control and Flexibility– Your creative control stays in your hand on how you want to navigate your company. You have full control, and you are the decision-maker. Effortless access to finance- You do not need to waste your time looking for fancy cafes to take your investors out for multiple coffee dates. Just one meeting and you will have enough money to finance yourself. Reasonable Interest Rates– Financial Institutions are waging war for your attention! This makes the interest rates very reasonable. No sharing of ‘success bites’– You, and only you, will rule over your profits. There is no profit sharing when you go for business loans. Liquidity Crunch? Not anymore- You do not need to break into your emergency funds to overcome the shortage of liquidity. Tax Benefits- You are often eligible for tax deductions on the interest amount. It is best to check your eligibility when you apply for a business loan. Creditworthiness– You just have to repay the loan on time. This improves your credit score and reflects your creditworthiness. This may help you in the future when you apply for a loan at any other financial institution. What are the benefits of seeking venture capital vs. a business loan? If you go for venture capital financing, you lose creative control over your dreams. The finance also comes in exchange for equity (ownership) in your company. On the other hand, there is no need to worry about debt repayment. In the case of business loans, there is a creation of debt which may discourage you from going ahead with this financing option. However, the risk is an inevitable ingredient in the recipe for success. You may also want to take another look at the benefits that come with business loans. They provide you with complete control over profits and decision-making for your dream projects. Whichever mode of financing you choose, some perks come with both of them. In the case of business loans, you will feel motivated to work harder to work for your dreams. You will create a network for yourself while establishing your trustworthiness in the market. Final Take Away As a start-up parent, both options can resolve your liquidity crunch. However, there are certain things you may have to keep in mind while opting for a suitable financing option: As an entrepreneur, it is up to you whether, during the initial take-off of your dreams, you wish to keep your assets as collateral or not. In the event of the non-success of your venture, your assets may be liquidated in the case of a business loan. However, you may stay stress-free! The risks involved with the success and failure of your dreams in the initial stages of a start-up are very high. Hence, you should be mindful of whether you wish to create the debt or not. The creation of debt comes with the pressures of repayment of losing your assets in case of failure in case of business loans. [B-02] There are pros to both venture capital and business loans. While venture capital-type financing comes with access to a master in the field, business loans come with tax deductions. You may go for any of these depending on your necessities. No matter which type of financing you may move ahead with, it is always necessary to also decide whether you want to lose creative control over your dream project. You might also be hesitant to share your profits in venture capital-style financing. Visit Piramal Finance’s website to learn more about venture capital and business loans.

08-11-2023