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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

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

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

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