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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
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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
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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
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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
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Personal Loan

All You Need To Know About Different Risk Factors Regarding Personal Loans

Financial difficulties are a constant issue in life and can strike at any time. Your investments likely get tied up when you run into issues like house renovations, unforeseen trip plans, or medical emergencies. Banks offer no-collateral, no-security personal loans to help with such financial issues. Additionally, you may conveniently use their internet portal to apply for a personal loan. It’s crucial to realise that unsecured loans carry some risk as well. Continue reading to learn more about the potential risks of personal loans. [B-01] What is a personal loan? A personal loan is sanctioned with little to no documentation. Additionally, it does not even require security or collateral. The money can be used for any financial purpose. You must pay it back according to the terms of the bank in simple equivalent monthly instalments over a few months. What is a personal loan used for? You are free to use the money for any financial purpose like vacation, purchasing a gadget, covering medical expenses, renovating your home, financing a wedding, funding your kids’ education, etc. How do personal loans work? The majority of loans function similarly to personal loans. You apply for a loan, and the bank verifies your creditworthiness and then extends an offer to you. The money is deposited to your bank account when you accept it, where you can use it however you like. You must pay back the loan in EMIs, the size of which will vary depending on the loan’s term, amount, and interest rate. Top Advantages of Personal Loans Processing a personal loan takes lesser time than other loans. They are the best option for taking care of your immediate cash needs. Lenders don’t have any trouble approving your loan application if you have a solid credit history. Personal loans are unsecured, i.e., without security. A personal loan will be beneficial regardless of the use, whether for an iPhone purchase, a vacation to Switzerland, or a house renovation. Getting affordable personal loans and making on-time repayments raises your credit score if you have bad credit or no credit history. Only a few documents are required, all of which can be filed online. Risk factors involved in a personal loan Interest Rate You shouldn’t accept a personal loan if you don’t need the same. Personal loans can range in interest rates from a little below 10% to three or four times more. Your credit score determines the interest rates for these loans. However, lenders can set any rate they wish within the applicable regulations. Moreover, exercise caution when contrasting annual percentage rates (APR). One can alter the APR. Instead, consider the full amount you will pay for the loan throughout its entire life, including interest, fees, and principal. Penalties Is it possible to repay the loan early without incurring any fees or penalties? Some lenders will be more receptive to your paying off the loan early than others, depending on the type of personal loan you obtain—from a bank, through peer-to-peer (P2P) lending, or through some other method. If you value an early payoff, as you should, be sure there are no penalties by carefully reading the fine print. Fees How much does a loan cost you? The loan’s up-front origination costs might differ, much like with a mortgage. Make sure to pay a reasonable and consistent upfront fee as per market rates. Do not just accept the first loan that you are qualified for. Privacy Concerns Loans from banks and credit unions will be subject to tight privacy regulations, while other possibilities might be much less formal. While lenders have to abide by privacy standards, many still don’t. Insurance Pitch Some personal loans will include a pitch for extra insurance to cover the debt in case “life’s unexpected occurrences” prevent you from being able to make your payments. Get a general disability insurance quotation by calling a trusted agent if you need insurance. It likely costs less and has better coverage. Precomputed Interest Precomputed interest calculates your interest using the original payment schedule, regardless of how much of the loan you have paid off. Simple interest calculates your interest based on the amount you owe as of the current day. Make sure to find out how the lender calculates the interest. Simple interest helps to repay the loan early. Payday Loans Financial experts and government organisations advise consumers to steer clear of payday loans, a type of short-term personal loan. People are frequently forced to roll over their loans for new terms because of the high-interest rates and restrictive stipulations. Unnecessary Complications A loan is an easy thing to use. You receive money from someone and return it with interest. Understand that if a business provides you with payment vacations, cash-back deals, or other inducements, the business won’t lose money on the transaction. You are the sole potential loser. A personal loan ought to be easy to comprehend. If it is not, it may be a warning sign. [B-02] The Bottom Line Loans are virtually always biased against the borrower because the majority of consumers aren’t adept at arbitrage. Consider saving up for the purchase if you are looking for a loan for a want rather than a need. Be cautious and aware of the hazards before proceeding with a personal loan. You may also make sure you know what to ask for by utilising a personal loan calculator to determine the monthly payment, loan length, and interest rate you are comfortable with. To read more about offers of Home Loans, Secured & Unsecured Business Loans, Corporate Loans and various other loans with lower EMIs at great interest rates, visit Piramal Finance.
08-11-2023
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Personal Loan

How Should You Take a Personal Loan To Buy A Car?

Taking a call on a big purchase is always tough. But you should not worry about the payment when you have many loan options. The best of all is a personal loan. Personal loans are versatile; they serve many purposes, including buying your dream car. Research shows that there has been an increase in the number of personal loan applications in India over the last few years. It is easy to see why borrowers prefer personal loans: they require no collateral and have lower interest rates. [B-01] A personal loan for a car is preferred over a car loan in India. A car loan typically only covers 80% of the total cost of the vehicle. A personal loan, on the other hand, covers the entire cost of the car. What Is a Personal Loan? A personal loan is a sum of money that you can borrow and spend on many things that are for your personal use. For instance, you may use it to pay off your debt or use the personal loan amount for a car. Features of a Personal Loan Unrestricted use of loan amount Minimal paperwork and formalities Quick loan approval Fast loan disbursal Flexible tenure for EMIs No need for collateral Types of Personal Loans Secured LoansA secured personal loan comes with collateral. e.g., an asset like a deposit account, home, or car. The collateral is used as security by the lenders. They have the right to keep the collateral as payment if you default on the loan. Unsecured LoansMost personal loans are unsecured. There is no need for any collateral to get such a loan. Because of the absence of collateral, banks view unsecured loans as risky. So, the interest rate on an unsecured personal loan is higher. Can I use a personal loan to buy a car? Generally, there is a misconception that you can only use a personal loan for certain expenses. Examples include home renovations, emergency expenses to repay debt, vacations, and so on. But in reality, you can use a personal loan for a car instead of taking out a car loan. Personal loans have a quick funding process and involve a simple application process. Personal Loans vs. Car Loans Personal loan for a car Car Loan Loan Type Unsecured Loan.There is no need for collateral. Secured Loan.The car is used as collateral security. Purpose Can be used for many purposes. Can only be used to buy a car. Credit Score The better your credit score, the more you can borrow. There is no need for a credit score. Interest Rates A higher credit score means a lower interest rate. It is determined by the amount of the car loan. Benefits of Getting a Personal Loan for a Car With a personal loan for a car, you have the option to borrow any amount you want. It is not restricted to the cost of the car. This helps you apply for part of the car’s value or the full amount, whichever is feasible for you. You can select a loan tenure of your choice. This means that you can repay your personal loan for a car according to the convenience of your budget. You can avail yourself of a personal loan with a low-interest rate by keeping your credit score high maintaining a strong repayment record. keeping no outstanding debt comparing the interest rates of different lenders You can have complete ownership of your car, unlike with a car loan. How to Take Out a Personal Loan for a Car You can take a personal loan for a car with these steps below: First, you have to compare the annual rates offered by different lenders. This includes the interest rate and all other fees. This helps you find the best annual percentage rate. Then, calculate your credit score to know how much you can borrow as a personal loan for a car. The higher your credit score, the more you can borrow. Next, check if the monthly repayment amount and the total amount you will end up paying the lender to fall within your budget. Finally, calculate the type of interest rate: fixed or variable. Now that you can plan your finances according to the loan, approach the best financial lender. Eligibility Details For salaried applicants For self-employed applicants Age Limit 18-60 years 21-65 years Minimum Income (which may vary across lenders) Rs 15,000 per month Rs 15 lacs per annum Work Experience/Business Continuity 1 year (at least 6 months with current employer) 2 years of business continuity Credit Score 750 or higher Documents for a Personal Loan for a Car PAN Card Identity Proof (any one of the following)PassportDriving LicenseAadhaar CardVoter’s Identity Card Address Proof (any one of the following)Registered Leave and Lease AgreementPassportDriving LicenseAadhaar Card/Aadhar AcknowledgementVoter’s Identity CardUtility bills like telephone bills, electricity bills, etc. (not more than 3 months old) Income Proof Last month’s salary slip Bank Statements from the Last Three Months Adding a Co-Applicant To qualify for a higher loan amount, you need to combine your income with that of a co-applicant. Only your spouse can become a co-applicant. You need to submit all the above documents for the co-applicant too. [B-02] Conclusion Buying a car is no longer a mere dream. With a personal loan, you can turn this dream into reality. But you should always analyse your finances before you get a personal loan for a car. Compare the annual rates, EMIs, and loan terms offered by various lenders. Also, keep your credit score high and have no history of default payments. If you are eligible for a personal loan, then what are you waiting for? Prepare your documents and submit them as soon as possible. Take advantage of your loan and enjoy car rides with your loved ones. To avail of a personal loan for a car quickly or for any queries related to it, talk to the financial experts at Primal Finance. While there, also check out their other products, services, and articles related to such topics.
08-11-2023
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Personal Loan

Know the Pros and Cons of Getting a Personal Loan for Your New Business

One of the most difficult issues which arise when you start a new business is getting money. It is one of the biggest roadblocks that you might face during your business journey. After the creation of a roadmap for the business, financing is the most important element that you require. Most banks and traditional financing institutions are bound by rules. These rules do not allow them to lend money to small or new businesses without greater backing. However, in such a situation, a personal loan for a new business could be the best option for you. [B-01] If your options like banks, investors, community finance institutions or capitalists have failed, you could turn to a personal loan for a new business. It is often unlikely that personal loan lenders check how you will spend your money. However, make sure that you read the fine print so that you could know the prohibitions on the purpose of your business. There are multiple benefits of availing personal loan for a new business. Benefits of personal loans for new businesses 1. Guidance One of the best benefits of getting a personal loan for a new business is that they guide you through the process far better than traditional financing institutions. It is not easy for new or small business owners to get loans without great financial backing. One of the major things which a new business owner face is confusion while navigating through the loan process. Lenders who provide personal loans get you the loan on mostly your terms. They also guide you well with their expertise. With Piramal Finance’s Personal Loans, you get a team of expert advisors. They guide you through the application process ensuring no hiccups in your journey. 2. Lower credit requirement Traditional finance institutions like banks etc do not provide loans to people or businesses with a lower credit score. If you have a lower credit score, then it is almost sure that your loan for a new business will be declined. As opposed to this, you can get a personal loan even with a lower credit score. Personal loan lenders do not fuss about a higher score. They also work with people with lower credit scores. You can also negotiate the terms and conditions of the loans even with a low credit score. 3. Easier qualification process The approval process for most personal loans is comparatively easier than traditional financing methods. All your lender needs to know is your credit score and income. There are likely fewer questions about the prospects and finance of your business. You don’t need to come up with an extensive plan of business or documentation to present to the lender. 4. Fast approvals There are numerous steps and documentation required to get a traditional loan. If you want to get faster approval for your business, then a personal loan is the best choice you can make. It does not take a long time to get a personal loan approved. It also gives easy access to the amount in lesser time. Personal loans could be disbursed within days. So if you need finance quickly, then personal loans are the way to go. 5. No collateral is required Personal loans do not require you to provide any collateral as a security. This also makes it desirable. If you are choosing a personal loan for a new business, you have to know about all the risks along with the advantages to make an informed choice. Disadvantages of using a personal loan for new business 1. Risking personal credit Taking out a personal loan for a new business could also put your credit score on the line. In the worst-case scenario, if the business fails or you fail to repay the loan, your credit score could decline beyond repair. It also increases the chances of rejection while getting finance in other forms in future. Also, personal loans increase the ratio of your debt-to-income ratio. This makes it difficult to qualify for getting loans for assets, mortgages or credit cards. 2. Limited borrowing in personal loans The maximum amount of personal loans depends entirely on the lenders. It depends on various factors on the lender’s and your part. Also, according to rules and regulations by Government, the maximum amount limited by most banks and NBFCs is Rs 25 lakh. You might have to search for a lender willing to lend you the amount you need for starting your new business. 3. Risking personal assets Not all personal loan lenders demand a guarantee of personal assets. However, to get a secured personal loan, you might have to give some type of collateral for giving a personal loan for a new business. It poses the risk of your collateral being seized in case of your inability to repay the loan according to the terms. 4. Possible higher interest rates Everything about personal loans depends on the lenders. So you might have to pay a higher interest rate. Your credit score changes how high your interest rate will be. And most personal lenders decide to lend to those with higher scores. If you have a lower credit score, you might have to pay higher interest rates against the loan. So, the question arises whether you should get a personal loan for a new business. A personal loan is a sure way to get the finance you need with less formality. It takes less time to get a personal loan and the paperwork is fairly easy. Nevertheless, it does not come risk-free. There are risks embedded in availing of a personal loan. Thus, it is important to ensure that you find a lender that offers you the best terms and conditions. It ensures that you pay reasonable interest and there are no hidden risks. [B-02] For this, you can get a hassle-free and quick personal loan for your new business with Piramal Finance personal loans. Piramal personal loans offer zero pre-payment and foreclosure charges. With Piramal Finance’s personal loans you can start your business in no time and without the stressful paperwork. Along with this, you get a dedicated team of experts dealing with your issues and guiding you through the process of availing of the loan.
08-11-2023
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Tax Savings

List down the Tax Benefits on NPS Investments

The NPS was established to ensure federal and state government retirees continued to receive a steady stream of funds after they ceased working. Currently, anyone, not just paid company employees, can join the NPS. Let’s learn more about the tax benefits on NPS. [B-01] Taxes and Benefits of the NPS’s Tier I Account Since a tier-I account in the new pension system is not designed to be accessed before retirement and is used to provide benefits to the investor afterward, the investor is entitled to some tax benefits on NPS. However, Tier-II accounts do not permit withdrawals and do not provide tax advantages; the NPS calculator may be used to get a rough approximation of your program balance. Who is Eligible for the NPS and How to Join The NPS is unique among retirement plans in that it is open to citizens of India and those legally considered to be NRIs. However, the applicant must be between 18 and 60 years old. Subscribers must also complete the “Know Your Customer” paperwork with the standard registration papers (CS-S1 and CS-S2). What is Article 80 of the CCD at first glance? Under Section 80CCE of the Income Tax Act, contributors to a Tier 1 NPS account may deduct contributions of up to Rs. 1.5 lakh from their taxable income. Because the “All Citizens” model of NPS relies only on voluntary contributions from its members, contributors are not restricted in their ability to put in as much as the Rs. 1.5 million annual caps set under Section 80C. However, the benefits of self-investment in NPS are limited in the corporate model and the government NPS in the following ways. To everybody who has subscribed to the corporate NPS model: Under Section 80 CCE of the Income Tax Act, 1961, an individual may get a tax deduction of up to 10% of salary (Basic + Dearness Allowance), up to a maximum of Rs. 1.5 lakh. Subscribers in the public sector NPS: Government workers who contribute to an NPS Tier 1 account get a tax break. Starting on April 1, 2019, the maximum amount of tax benefits on NPS available to state government workers is 10% of salary (basic + Dearness Allowance), while the maximum amount available to central government employees is 14% of pay (basic + Dearness Allowance). For this tax deduction, which is provided under Section 80 CCD of the Income Tax Act, the annual Rs. 1.5 lakh ceiling established by the Act is in effect (2). What is Section 80 CCD (1B)? For NPS Tier 1 account contributions made by retail subscribers, Section 80C of the Income Tax Act of 1961 allows for an NPS deduction of up to Rs. 50,000 every financial year. That’s on top of the Rs. 1.5 million ceilings imposed under Section 80 C. These two subsections make up the well-known Section 80C of the Income Tax Act, and together they provide for a total of Rs. 2 lakh in tax benefits on NPS within a fiscal year. Investing in a Tier 2 NPS Account Has Tax Advantages Payments to Tier 1 of the NPS are tax-deductible for all members, but Tier 2 contributions are deductible exclusively for members of the Central Government NPS. This NPS tax advantage is now available to central government workers under Section 80C of the Income Tax Act of 1961. Within Section 80C, the maximum allowable annual tax savings in this situation is Rs. 1.5 lakh. These investments are subject to a three-year lock-in term under current law. The Tax Benefits of the NPS for Employer Contributions Employer contributions to NPS accounts are advantageous only for those who enrol under the corporate model or the government NPS. Under both of these programs, the tax benefits on NPS are limited to contributions made by an employer in tier 1 accounts. Tax relief for employer contributions is available over and above the Rs. 1.5 lakh limit for individual contributions under Section 80C. Following is a list of the maximum tax breaks for employer contributions to an NPS: Corporate NPS models provide tax advantages for employer contributions. Under the corporate NPS model, an extra tax deduction of up to 10% of the employee’s salary (Basic + Dearness Allowance) is available for employer contributions to the NPS Tier 1 account. The Rs. 1.5 lakh cap on Section 80 CCE deductions is exceeded by this amount (2). Government National Pension System Employer Contributions Are Tax Deductible Employer donations to the Government NPS for state and federal workers may qualify for NPS TAX exemptions. Under current NPS legislation, employers of state government workers are permitted to contribute up to 10% of their employee’s wages (Basic + Dearness Allowance) as shown on their pay stubs. NPS Annuity Purchases and Withdrawals May Qualify for Tax Breaks The tax advantages of the current NPS go beyond donations. Numerous large tax incentives exist for withdrawing any amount or purchasing an annuity from the NPS. Here are some other details provided by the National Pension System: Partial withdrawals from an NPS provide tax benefits. There are limitations and restrictions on how often and how much money may be withdrawn from your NPS Tier 1 account; however, you can take out a portion of your money three times during the investment’s lifetime. According to Section 10(12B) of the Income Tax Act, subscribers may withdraw up to 25% of their self-contribution from their NPS without paying taxes. Annuity buyers might get a tax break in retirement. At least 40% of the NPS Tier 1 account balance must be used for annuity purchases under current legislation. Under Section 80 CCD (5) of the Income Tax Act, annuities purchased in retirement via NPS are not subject to taxation. However, the money received from an annuity is subject to taxation at the individual’s or couple’s standard income tax rate. [B-02] Conclusion: The NPS was set up to provide federal and state pensioners with a steady stream of payments even after they had stopped working. Previously restricted to full-time salaried staff, NPS is now open to all members of the public; both employees and freelancers fall under this category. For more information about NPS, visit Piramal Housing Finance.
08-11-2023
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Personal Loan

Paying Off Personal Loan instant- All You Need to Know About

Do you ever consider how to close a personal loan instant? Does it always make sense to pay off a personal loan instantly? Not necessarily—there are other aspects to consider before making a decision. If you owe money on a personal loan and can pay it off instantly, it could lower your interest costs and improve your credit score. To avoid prepayment penalties, be sure your lender does not impose only pay off a loan instantly if you can do so within your budget. [B-01] This is the place to be if you’re considering how to close a personal loan instant. This article explains all the procedures needed for personal loan documents list pdf! Is closing a personal loan instantly possible? How to close personal loans instant personal loans can be repaid instantly, but you may not want to. Making extra payments or placing a cash windfall toward your loans could shorten your repayment duration. Few lenders may levy a prepayment charge. The prepayment charges may be a percentage of your loan total or how much interest the lender would lose if you repay instantly. Prepayment penalties are mentioned in your loan agreement and vary by lender. Can you close a personal loan instant? Yes, borrowers can often repay personal loans instantly. Instant repayment fees vary by lender. It’s charged up to 2% of the loan’s total if repaid within the first year. In succeeding years, the charges decrease. When should I close a personal loan? Prepaying for a loan requires extra savings. It’s best to invest additional cash. Instead of paying a long-term financial commitment in one go, the sum can grow over time, especially if there’s a prepayment charge. Calculating Personal Loan instant Repayment How to close personal loans instant repayment affects financial commitments. Knowing how much you’ll have to spend to repay it instantly is crucial. The best way to complete a personal loan now by calculating personal loan repayment is with an IIFL calculator. ● Use the loan calculator to enter the loan amount, term, interest rate, and prepayment amount. ● After entering these facts, you’ll see your new financial obligations and prepayment charges. How does instant loan repayment affect credit score? When you pay down your credit card balance, you lower your debt-to-credit-limit ratio. This reduces your utilisation rate, which accounts for 30 per cent of your credit score, boosting it. So why not with a personal loan? Personal loans are instalment debt; therefore, Experian says they’re different. Credit card debt is revolving, so there’s no defined repayment period, and you can borrow more as you pay. Instalment debt involves repayment in equal monthly instalments over a particular term. After refund, the account is closed. Personal loans contribute to your credit report’s open accounts. The loan can boost your credit mix by 10% of your FICO score. When you pay off an instalment loan, it’s considered a closed account. Once you pay off your loan, you’ll have fewer open accounts on your credit record, improving your FICO score. Your credit report will show a shorter account lifespan if you instantly pay off the personal loan. Your average account age determines 15% of your FICO score. A more extended credit history equals a better credit score. Paying off a personal loan instantly will reduce your credit history and score. Your credit profile will determine how much your score changes. Low credit can make it hard to secure an apartment, financial goods, or a job. Sound financial practices, such as on-time payments and avoiding too many new lines of credit, can increase your score. Personal loan documents list pdf ● ID Required: Passport, Driver’s License, State Issued Photo ID, or Permanent Account Number (PAN) Card (any one) ● Evidence of Residency: Any of the following Passport; Current Utility Bill; or Leave and License Agreement (not older than three months) (anyone). ● Bank Statements from the Past Three Months (showing where pay and other income have been deposited). ● The past three months’ worth of pay stubs. ● Two pictures, passport size each. Pros of closing personal loan instant Reducing debt and keeping it reasonable are keys to good credit and financial health. Instant loan repayment provides all that and more. 1. Interest savings. Interest costs less the faster you pay off a loan. Because that reduces your total borrowing cost, you could save a lot. 2. Your monthly budget will increase. Without that monthly payment, you’ll have more budget space. You can use that money for day-to-day costs or save for emergencies, retirement, or investments. 3. You’ll reduce debt-to-income. Lenders evaluate your debt-to-income ratio to make lending decisions. By lowering your debt-to-income ratio, you may improve your credit score and qualify for better loan terms. 4. Peace of mind Paying off a loan faster reduces monthly financial stress. Before deciding, check that you can pay your monthly bills and have emergency savings. Don’t tap your savings or retirement accounts, as they could save you more. Cons of closing personal loan instant It can save interest, put money in your pocket, and reduce debt, but there are disadvantages. Consider these three impacts. 1. Prepayment charges. Some lenders include a prepayment charges clause in loan contracts to recuperate lost interest. This is a proportion of the unpaid loan principal at payback. Before deciding, check loan documentation and perform the maths. Prepayment charges could diminish or cancel your interest savings, especially if your loan has a low, fixed-rate or short duration. 2. You may lose credit. Your credit mix and history change as you repay a personal loan, which may affect your credit goals. A personal loan is reported as an instalment account, including the loan amount and payback schedule. Since payment history is the main component in determining your credit score, on-time monthly payments benefit your finances long-term. You could lose months (or years) of a positive payment history if you pay off your loans instantly. Age of accounts and a well-managed mix of credit (credit cards, school loans, auto loans) also affect your score. Paying off a personal loan instantly may temporarily lower your credit score. 3. You may have better money options. If your loan interest rate is lower than other debts, you may be better off elsewhere. Instead of paying off your loan instantly, focus on paying off higher-interest debt, such as a credit card amount. Consider increasing your work retirement plan contribution to qualify for an employer match or opening a high-yield savings account. Before changing your monthly payments or paying off a personal loan instantly, check your bank accounts to be sure you can afford monthly costs and emergencies. Future planning can reduce stress. [B-02] Conclusion This article’s goal is to thoroughly analyse crucial considerations of how to close personal loans instantly. Personal loans are a quick and reasonable solution to pay a significant bill and enhance your credit. As with any financial tool, you should carefully assess if a personal loan is right for you. Paying off the loan instantly can result in prepayment charges, negating interest savings and hurting your credit. If you wish to pay off the loan instantly, apply to a lender who won’t charge a prepayment charge. Before signing up for a new financial instrument, check the personal loan documents list pdf etc. do your research correctly. Investment Reliable does not offer financial advice, but we 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
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