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Personal Loan

What is the Difference Between a Personal Loan and a Flexi-Hybrid Loan?

Are you looking for a personal loan for your individual needs? Then, you have landed in the right place. A personal loan and a Flexi-hybrid loan fall under the same category as personal loans. Yet, there are differences between the two: Eligibility criteria, accessibility, disbursal process, and repayment procedure. Read on to learn the difference between a personal loan and a Flexi-hybrid loan to decide which option is better for you. In the end, you will find the eligibility criteria to apply for a hassle-free personal loan at Piramal Finance. [B-01] Personal Loan vs. Flexi Hybrid Loan The six points of comparison between a personal loan and a Flexi hybrid loan are listed below: Nature of the loan A personal loan is an unsecured loan that a financial institution offers. Once the borrower meets the loan eligibility, the lender sanctions the loan. Then the lender disburses the loan amount into the registered account of the borrower. After that, the borrower can use the loan amount anywhere as needed. Whereas, in the case of a Flexi hybrid loan, the lender offers a loan with a fixed limit. This means as soon as the borrower meets loan eligibility, the lender approves the credit limit. The borrower can request a withdrawal of the credit funds as and when needed. Interest rates For a personal loan, the lender charges an interest rate for the entire loan amount. Whether the borrower uses the loan amount or not. The interest rate is yearly and is much lower than that of other forms of unsecured loans. In the case of the Flexi-hybrid loan, the lender only charges interest on the used credit amount, not on the approved loan amount. Loan tenure and repayment The loan tenure for the personal and Flexi hybrid loans is fixed by the lender. But, the loan repayment procedure for both differs. In the case of personal loan repayment, the borrower is bound to pay a predetermined amount as equated monthly installments (EMI) along with some interest rate. Whereas, in the case of the Flexi hybrid loan, the borrower gets the flexibility to choose the repayment amount and frequency on the condition that the entire sum is repaid within the loan tenure. Loan disbursal procedure The loan disbursal procedure for a personal loan is effortless and straightforward. Once the lender approves the loan application, it disburses the loan amount into the borrower’s bank account. Whereas for the Flexi hybrid loan, after the lender approves the loan application, it disburses the loan amount into a specific account. It is in the borrower’s name, and the borrower has complete control over it. The borrower can use the credit limit as and when needed. Loan accessibility While talking about accessibility, the application procedure for a personal loan is straightforward. The applicant for a personal loan should have a credit score of 750 or higher, a stable income, and good repayment history. This makes the personal loan accessible. The application process for the Flexi hybrid loan is a little stringent. These loans are accessible to those with high incomes and excellent credit scores. The lender charges high-interest rates for the rest. Application procedure The application procedures for both the personal and the Flexi-hybrid loans are similar. As a first step, the individuals must apply for the loan and submit the required documents. Next, the lender assesses the borrower’s credit score and eligibility criteria and then approves the loan. The online application procedure for a personal loan is much more prompt and hassle-free than an in-person visit to the bank branch. Which is better: a personal loan or a Flexi-hybrid loan? The type of loan entirely depends on your requirements. If you only need some funds at a time, a hybrid loan is a well-suited option for you. Because it will help you pay the interest rate for only the amount used, which promotes flexibility. But, if you require huge credit at once, a personal loan is a well-suited option. Choose a loan according to your needs and repayment capacity. Where to get an instant personal loan? Piramal Finance offers you a personal loan of up to Rs 10 lakh with zero prepayment or foreclosure charges. You can apply online and avail yourself of a personal loan with a loan tenure of 12–60 months and an annual interest rate starting at 12.99% per annum. Who can apply for a personal loan online? A few eligibility criteria apply if you wish to apply for a personal loan online. Read on to learn the requirements in detail. Salaried individuals working in the following areas may apply: Government Institution MNCs or related companies Partnership Firms Proprietorship concern Private sector Public sector Age requirement 21 years to 60 years Income terms A monthly salary of Rs. 25,000 or more Work experience condition At least six months of experience in the present organisation Documents required to get a personal loan The documents necessary to get an instant personal loan are: PAN card (mandatory) Identity Proof (any one of the below): Passport Driving License Aadhaar Voter’s Identity Card Address Proof (any one of the below): Registered Leave and Lease Agreement Passport Driving License Aadhaar Card Voter’s Card Telephone/electricity bills, less than three months old Income proof Latest month’s salary slips Bank statements not more than three months old [B-02] Conclusion Both personal and Flexi-hybrid loans fall under the same category. Yet both differ in some areas. So choose the one that suits your requirements better. In addition, always check the eligibility criteria of a loan before applying. So what are you waiting for? Apply online to get a personal loan right away or call 1800 266 644 to learn more about how to get an instant personal loan
08-11-2023
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Personal Loan

Personal Loan for Festival: Why You Should Avail Loan This Festive Season?

Festivals are around the corner, and as they are near, the excitement and joy increase likewise. There would be a variety of cuisines, new clothes, lights, colours, fun and frolic all around. With all of that comes the expenses like renovating your house or financing a wedding. And to cover that up, you might need a festive loan that will give you all the financial backup. If you have a huge wedding coming up, or you have decided to renovate your property, and you lack finance for it, all you need is a little financial hell. An instant personal loan can do that for you this festive season. It will leverage the whole process and will fulfil your dream of making this festival a memorable one. [B-01] This article is all about instant personal loans, their role in festivals, the benefits that can be derived from them, and the reasons why you should opt for them in the first place. What is a personal loan in the context of this festive season? A loan that is applied to meet personal needs like buying a house, financing a wedding, planning a trip, or covering expenses of higher education is called a personal loan. In this case, the lender lends a specific amount of money to the borrower in exchange for extra charges by adding an interest rate. This interest rate is applied to the principal amount, and the borrower has to pay that back within a set period in the form of instalments. Out of a variety of purposes for which an instant personal loan is applied, covering the festival expenses is one of them. Festivals are not only moments of joy and pleasure. They also demand a huge amount of money sometimes. A festive loan for that purpose can be rightly taken to emphasise more on the festive needs. What are the benefits of applying for a personal loan during the festive season? There are multiple benefits of applying for a festive loan this festive season: Low-cost EMI: The monthly instalments of the festive loans are quite on the lower side and are easily payable. Even if the amount of your instalment depends on your principal amount and the loan tenure, the EMI is still going to be less. You don’t have to budge into your monthly expenses to cut out extra expenses. Collateral-free: Personal loans are popularly known as unsecured forms of loans because these types of loans do not require any collateral or security deposits. So, while applying for an instant personal loan for festive purposes, you don’t have to pledge any of your assets to help you get a loan. Banks never ask you to state the reason for which you are applying for the loan. Low rate of interest: Interest rates on personal loans are quite low, and you can easily pay them off eventually. In India, most banks charge an interest rate of about 8.5 per cent per annum to 35 per cent per annum. The interest rate mostly depends on your credentials and the offers that the bank provides to its customers. Flexibility: Flexibility in most of the festive loans is also very high, which means you will have tailoring options to change and alter your loan options. On top of that, you can decide the tenure of repayment according to your convenience. If you have a clean track record and good credit history, banks will offer you better tailoring options. Building credit score: If you take an instant personal loan and repay all its instalments on time, your credit is going to build up into a fair number. It will also help you create a good loan track record for the future. In the future, if you ever think of going for another personal loan, this track record is going to help you get better offers. What are the eligibility criteria to apply for a personal loan to meet festive expenses? Here are the eligibility criteria you should be having to apply for a festive loan to meet all your festival-related expenses: You must have covered 21 years of age to get a festive loan for the festive season. The upper limit age group varies between 60 years to 65 years of age for a festive loan. You should either be a jobholder in any private or government institution, or you should be a self-employed individual. Your monthly salary should be between 25 thousand to 30 thousand if you are a salaried individual who is seeking an instant personal loan. In the case of self-employed individuals, the annual income should be 5 lakhs per annum to be eligible to apply for this loan. Your work experience should be at least one year if you’re a salaried individual. In case you are self-employed, your work experience should be a minimum of two years. You should have a credit score of 750 or more to apply for a festive loan for the festival season. [B-02] Conclusion: Festivals come every year at a specific time, and we all want to make them as memorable as possible. And managing all that expenses like jewellery, new clothes, renovation, etc., with a meagre capital is hard. So, to cover all the expenses of a festival, some amount of financial assistance in the form of a festive loan can be applied. If you have come this far and you loved reading about festive loans, you should also check out Piramal Finance. Not only festive loans, but they also have many write-ups regarding different investment schemes, financial options, and other types of loans.
08-11-2023
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Calculator

FD Calculator: Calculate Fixed Deposit Interest and Maturity Online

What is a Fixed Deposit? A fixed deposit (FD) is a type of deposit in a bank or non-banking financial company (NBFC) that offers attractive interest rates for a set amount of time. It lets investors put their extra money away for a short or long time and earn interest on it. You can open an FD account with any amount, but the interest you get is only based on the amount you put in. The interest rate on an FD also changes depending on how long you keep it and how much you put in. [B-01] For instance, longer-tenure FDs usually offer higher interest rates than short-term ones. With various online FD calculators, you can easily calculate your FD investment’s interest and maturity amount. You need to input the deposit amount, choose the tenure, and select the preferred interest rate type. The calculator will do the rest and give you estimated earnings from your FD account. You can keep your money in a savings account for as little as seven days or as long as ten years. But, of course, the longer you keep your money in the bank, the more you will earn in interest. You can use online FD calculators to determine how much your FD makes and when it will be paid off. Keep an eye out for tools on the websites of well-known financial institutions. FD Interest Rates Regarding FD interest rates, there are a few things to keep in mind: FD interest rates can vary depending on the financial institution. The term of the FD can also affect the interest rate. The amount of money deposited into the FD will also impact the interest rate. In general, FD rates tend to be higher for shorter terms than for longer ones. This is because short-term deposits come with more risk. The interest rate on an FD is also based on how much money is put into it. The higher the interest rate, the more money is put into a savings account. This is because banks want to get people to save more of their money. FD Maturity When a fixed deposit (FD) matures, the money you have deposited becomes available. The maturity date is the date on which the deposit period comes to an end, and you can withdraw your money. Generally, FDs have a tenure of between 7 days and 10 years, after which they mature. While some people withdraw their money when their FD matures, others prefer to reinvest it in another FD. This is because FDs offer reasonable interest rates and are a safe investment option. In addition, when you reinvest your money in an FD, you can continue earning interest on it while saving for your future goals. How Does the FD Calculator Work? FD Calculator is a simple online tool that can help you calculate the interest and maturity amount for your fixed deposit. All you need to do is enter the deposit amount, tenure, and interest rate. The calculator will then compute the maturity amount for you. It is important to remember that the FD Calculator is only a tool to give you an estimate of your maturity amount. The actual interest and maturity amount may differ slightly from the calculation due to other factors such as compound interest, taxes, etc. What Are the Benefits of Using an FD Calculator? The interest rate is one of the most important considerations when investing in a fixed deposit. One of the most important considerations when investing in a fixed deposit is the interest rate. Unfortunately, with so many banks and financial institutions offering different rates, it can take time to calculate how much interest you will earn on your investment. This is where an FD calculator can be handy. By inputting the amount you wish to deposit, the tenure of your investment, and the interest rate offered by the bank, you can easily calculate the total interest earned as well as the maturity value of your FD. An FD calculator also allows you to compare interest rates and find the best deal for your needs. This can help you save significant money in the long run. How to Use an FD Calculator? Fixed deposits (FDs) are one of the most popular ways for Indian investors to save money. The interest rate on FDs is higher than the interest rate on a savings account, and the returns are guaranteed. Before investing in an FD, you must use an FD calculator to figure out the interest and amount due at maturity. Here’s a step-by-step guide on how to use an FD calculator: Step 1: Enter the deposit amount. The first step is to enter the deposit amount in the FD calculator. This is the amount you want to invest in an FD. Step 2: Enter the FD tenure: The next step is to enter the tenure, or duration, of your FD investment. This is when you want to keep your money invested in an FD. The usual tenure options range from 7 days to 10 years. Step 3: Enter the FD interest rate. In this field, you have to enter the interest rate offered by the bank on fixed deposits. You can find this information on the bank’s website or from a customer care executive. Step 4: Calculate maturity value: Once you have entered all the required information, you can click on the ‘Calculate’ button to know the maturity value of your investment. How to Use the FD Calculator Assuming you are referring to the Fixed Deposit Calculator on our website, using it is pretty simple. Just enter the amount you would like to deposit, the tenure of the deposit in months, and the interest rate. The FD calculator will then show you the maturity value of your deposit and the interest earned. You can use this information to compare different fixed deposit plans and choose one that best suits your needs. [B-02] Conclusion We hope the article on the FD calculator helped determine your fixed deposit’s interest and maturity. For more information on fixed deposits, visit https://www.piramalfinance.com/personal-loan.
08-11-2023
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Home Loan

Rural Home Loans – Apply for Rural Housing Loan Online

We, as a country, are dedicated to making it possible for those who live in rural and semi-urban regions to own the house of their dreams. The first thing you need to do to take advantage of the cheap interest rates offered by Indiabulls housing loans is to apply for a house loan via the firm. The applicant’s primary house may qualify for financial assistance in the form of direct or guaranteed loans for the property’s purchase, development, or improvement. [B-01] Mobile homes may be eligible for mortgage financing provided they are permanently sited, and acquired through a licensed dealer. Refinancing a house with a direct mortgage housing loan interest is possible in specific situations. How does the approval process work for house loans in remote areas? The payback period for direct rural housing loans is either 33 or 38 years. This is determined by whether or not the borrower has an adjusted annual income that is more than 60% of the local median income. Direct housing loan borrowers who go for government payment support may qualify for a 1% “effective interest rate.” This help is contingent on the borrower’s ability to repay the housing loans. The government may reclaim the aid payments made to the client if the client leaves the household. Grace periods for guaranteed loans may last for up to 30 years. The financial entity providing the loan decides what the interest rate will be on the promissory note. There is not even a need for a down payment. The lender must consider the ability of the borrower to repay the housing loan. This may be found by contrasting the borrower’s gross monthly income to the borrower’s payment on principle, interest, taxes, and insurance (PITI) and the total family debt. How does the approval process work for house loans in remote areas? The repayment period for direct housing loans is either 33 or 38 years, as told above. Borrowers of direct loans may be eligible for an “effective interest rate” as low as 1% if they meet the criteria for government payment support, determined by their adjusted family income. This help is contingent on the borrower’s ability to repay the housing loan. The government can reclaim the aid payments made to the client if the client leaves the household. There is no provision for funding for delayed mortgage authorization or loans for mortgage assumptions that have been delayed. Detailed, step-by-step instructions on the application process of obtaining a mortgage The procedure for a house loan is basic. Individuals who satisfy the qualifying standards may apply for housing loans with a maximum amount of up to INR5 crore. Individuals are expected to provide information about their essential personal, employment, income, and property characteristics to conclude the application procedure for a housing loan. After you have submitted all the required documents, you can start the verification process online whenever you are ready. This will allow you to have your home loan approved as soon as possible. If all of the necessary information is provided, a letter of authorization will be sent out as soon as possible; after this letter is received, the loan amount will be considered authorized. When applying for a home loan, salaried applicants and candidates who are not paid must go through separate procedures. As a consequence, a detailed instruction manual on how to get a mortgage housing loan for any party is provided below in the form of an easy-to-understand step-by-step tutorial. The measures that salaried individuals need to take to be eligible for housing loans Kindly respond with the required particulars about your professional life, financial situation, and personal life. Utilize the home loan eligibility calculator to determine the highest possible housing loan amount you are eligible for. After that, you can effectively organize your loan by utilizing the home loan EMI calculator to calculate an amount suitable for you to pay back each month. Please provide any paperwork that pertains to the property After making the payment for the safe online booking fee to reserve the deal that is being offered, the next step is to wait to hear back from a reliable website that provides housing loans. Coordinator of Affiliations and Partnerships Before commencing the verification process, you will need to ensure that all necessary documents have been submitted. Instructions on how to properly fill out a mortgage application if you are self-employed Launch the online application following the preceding instructions. Please include any information that may be pertinent, such as the age of the business, the amount of housing loan needed, and the firm’s yearly revenue. Once all the information has been entered, you may send it by selecting “Submit” from the list of choices on the menu. Get access to the pre-approved loan offer, and be willing to accept to take advantage of it. [B-02] Conclusion: Grace periods for guaranteed loans may last for up to 30 years. The financial institution that issues the promissory note decides on the interest rate to be applied to the note. There is no need to make a deposit beforehand. In addition, the lender must examine the borrower’s ability to repay the housing loans by comparing the borrower’s payback income (gross income) to PITI and total household debt. Visit Piramal Housing Finance for more information.
08-11-2023
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How To?

How to check EPF (Employee Provident Fund) Balance?

In India, the employee provident fund is a scheme for employee benefits. The Employee Provident Funds and Miscellaneous Act of 1952 is the principal scheme of EPF. Several other schemes run under the act. The employer and employee each deposit the same percentage into the EPF account. It simply acts as a safety net for salaried individuals. There are a good number of benefits from EPF. The employee receives interest on the amount in the account. The current interest rate is 8.10%, which keeps changing. [B-01] An employee-provident fund organisation is a non-profit organisation. It makes all decisions for changes to the EPF. Any individual can check the employee provident fund balance. There are four methods to check an employee provident fund balance. The process is online for you. You may check the step-by-step guide given below. How to check an employee’s provident fund account balance? The accounts are important for better finance. So, you must keep an eye on the account. Always check employee provident fund balance and interest rate. Well, the EPF organisation has made the process online. You can now check your EPF balance from your phone. Here are four methods for determining employee provident funds. Employee Provident Fund organisation portal When an individual opens an EPF account, they get a UAN number. A universal account number is a unique number for the EPF account. Activating the UAN is most important to check the employee provident fund balance. The UAN number stays the same for a lifetime. You can change jobs with the same UAN. Updating your UAN is an important part of using an EPF account. You can activate it online. UAN helps you check your balance, withdraw money, and apply for a loan. Update your UAN and check the employee provident fund account. Now follow the steps one by one: Step 1: Visit the EPFO portal. Go to the left corner and select “Services.” Next, click on “For employees.” Step 2: Once you enter the employee page, click “Services.” Now select the “Members Passbook” section. Step 3: You’ll direct to the login page. Now, fill in the UAN number and 6-digit password. You should use the UAN number after successful activation. Step 4: Click the “Member ID” and select the “View password” option. Step 5: All employee provident fund details will appear on the page. Check the details once. Step 6: Click on the “Download Passbook” option for a soft copy. You can print it as a hard copy. Check employee provident fund by SMS A mobile phone can be used to check the balance of an employee’s provident fund. The EPFO has designed this method for non-smartphone users. Any keypad phone can send an SMS for your EPF balance. Make sure to use the activated UAN number. Here is the two-step process for a balance check: Step 1: Go to messages on your phone. Now, dial 7738299899 in a new message. Step 2: Type “EPFOHO UAN ENG” in the message and send it. You may change the language of the message. You can change the letters in a message to make it different from English. If you want to change the message to Hindi, type “EPHOFO UAN HIN.” You can use the same formula for any available language. The languages available are Marathi, Punjabi, Bengali, Gujarati, Kannada, Telugu, Tamil, and Malayalam. Check employee provident fund by missed call. An individual can check an employee’s provident fund balance via a missed call. Before calling, write your UAN number on a sheet. You can only call from a registered mobile number. Only KYC linked to a UAN number is required to use the service. You may follow the steps given below: – Step 1: Go to your phone’s dial pad. Dial 011-22901406 from your registered number. Step 2: You will receive an SMS just after a missed call. The message will show EPF details. You can take a screenshot as proof. If you face any issues, seek the help of your employer. Check employee provident fund using the UMANG/EPFO app. The feature to check employee provident fund balances is for employees’ ease. You can check the balance on the UMANG app. The United Mobile Application for New Age Governance offers so many benefits. You can plan your expenses, apply for loans, and claim government programmes. One-time registration using a UAN number helps access the app. Let’s see the steps to using the app. Step 1: Go to the Google Play Store or app store on your smartphone. Download the UMANG app with one click. Step 2: Click on “Our Services” and select “EPFO.” Step 3: Select “View Passbook” under the “employee-centric service” section. Step 4: The page will show the balance with EPF account details. You can download a soft copy. Or print the hard copy for your records. Schemes under the Employee Provident Fund An individual/employee can avail scheme under the Employee provident fund. Check out the top three schemes by EPF organisation. Employees Provident Fund Scheme (1952). Employees’ pension scheme (1995). Employees’ deposit-linked insurance scheme (1976). What is the UAN number, and how do I get it? A universal account number is a 12-digit unique number. Every individual using EPF has a UAN number and password. It helps an individual check their balance and withdraw money. You can use the same UAN number for multiple jobs. To check the employee provident fund balance, the employee must link their KYC and UAN. It makes your process smooth. . Your employer is responsible for your UAN number. If you cannot get the UAN number, apply via the UAN portal. Use the link given below with your ID. https://unifiedportal-mem.epfindia.gov.in/memberinterface Employee Provident Fund Contribution Let’s see the employer’s contribution in the table below: Category of provident fundPercentage(%)Employees’ provident fund3.67employee pension scheme8.33Employee deposit link insurance scheme0.50EPF admin charges1.10EDLIS admin charges0.01 An employer must contribute to employees’ PF. Employer and Employee contribute the same amount in %. The dearness allowance is fixed at 12% by EPFO. [B-02] Conclusion Now you can check the employee provident fund balance at home. A few simple steps can get you access to all your details. The employee-provident fund organisation has introduced four methods. The employee provident fund gives so many benefits to the employee. You can apply for loans at low interest rates. Subsidies are also given by the EPFO/UMANG app. You can access all updated features via the UMANG App. The app helps you keep track, plan finances, and check your balance. Visit Piramal Finance for similar blogs and look at the products and services they offer.
08-11-2023
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Home Loan

Understanding Loan Against Property Interest Rates and Charges

Loans against property require borrowers to sell their real estate, whether residential or commercial, as security for the Loan. Using a loan against property (LAP) involves small fees and minimal loan processing and verification costs. These fees are often little when considered against the benefits of a loan against property. Both lenders and borrowers make the procedure simple and convenient. One can save most of their time by fully understanding the Loan against property, including the interest rates and fees. [B-01] A loan against property is becoming a popular credit instrument due to its ease of use and potential as a source of funding. But, to plan and manage the finances, one must also understand the charges. In this situation, land and property can act as important assets and collateral for loans. Since this loan is secured, it has a lower interest rate and a higher chance of approval. Mortgage loans are also referred to as LAP schemes. Compared to the benefit of a loan against property, these charges are commonly negligible. They make the process easy for lenders and borrowers. People can save most of their time by being informed of the loan terms against property, including Loan against property interest rates and charges. The loan against property interest rate depends on several factors. Factors such as the length of the loan, credit score, the type of property, and application profile. But what are the interest rates for loans secured by real estate? How would one check their loan? Read the complete article below for a brief response to all the questions. Types of Interest Rates Fixed Interest Rate: A loan against residential or commercial property has a defined or fixed interest rate that must be repaid in addition to the principal loan amount. The calculation is exact as the monthly instalment amount stays the same over the repayment period. The Loan Against Property Interest Rate remains constant throughout the period. Floating Interest Rate: In Floating Interest Rate, market factors affect the Loan Against Property Interest Rates, which vary from time to time. The monthly instalment amount changes in pair with changes in the interest rate. The lender uses a base rate or index rate established by the Reserve Bank of India to compute the interest rate. As a result, the floating rate increases when the base rate does, and vice versa. Charges Associated with Property Loan Processing fees: Your lender may assess one-time loan processing fees whenever you apply for a loan confirmed by real estate. Lenders charge this fee to cover carrying costs, managerial expenses, the cost of accessing your property’s value, and other costs. This charge is 0.5% to 2% of your loan amount plus Goods and Service tax. Legal Charges: The lender confirms all paperwork about the property before approving a loan against it. They also evaluate the risk inherent in the applicant’s profile with legal papers and validate the property by sending an executive to the property site. The cost of legal fees might range from Rs. 5,000 to Rs. 10,000. Foreclosure Charge: Lenders charge a foreclosure fee if a borrower pays off his Loan before the repayment period has run out. The charges could range from 1% to 4% of your spending. Part-Prepayment Charge: To avoid foreclosure charges, the loan must be repaid in one payment before the tenure expires. But, just like prepayment, loan foreclosure carries a fee. It ensures the loan has a low foreclosure charge to make repayment cheaper. Each lender has a different policy; some may not even charge for it. Penalty Charges: For any reason, if a borrower doesn’t pay back their monthly EMI, the lender may charge them a fee. You will be required to pay penalty interest if you miss a monthly instalment payment or default on the loan. This is evaluated in addition to the interest rate and is computed monthly. So, to avoid paying such fees, it is best to plan for repayment in advance. EMI Bouncing Charges: No one likes to find themselves in a situation where their signed check bounces because of insufficient funds, known as an EMI bouncing charge. However, as a borrower, your lender may request a bouncing fee if the same thing occurs to you while making your loan against property EMI payment. Loan Rescheduling Charges: Loan rescheduling refers to extending the current loan term. Your monthly instalment amount changes, as a result, enabling you to pay less each month. But doing so will result in a rescheduling fee set by a lender. Again, this may differ from one lender to another. Use the EMI calculator tool to see how much money is needed to set aside each month. It informs us about the various Loan Against Property Interest Rates and lets people evaluate them effectively. The EMI calculator considers the loan amount requested, the applicable interest rate, the processing fee, and the term. [B-02] Conclusion You must be aware of the Loan Against Property Interest Rates and fees to plan and manage your budget successfully. To effectively plan and manage your finances, you must know Loan Against Property Interest Rates and their associated charges. You can visit the Primal Finance website to get a complete solution to your financial doubts, create a budget for repayment and see how much the loan will cost.
08-11-2023
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Home Loan

Understanding Common Home Loan Terms to Make Better Decisions

A home provides protection and a sense of belonging, identity, and privacy. Owning a house feels like a dream come true for many. With housing loans, you are one step closer to achieving your dreams. A housing loan is simply a sum of money borrowed from a bank to purchase a home. It includes a legal agreement with an adjustable or fixed interest rate as well as payment terms. The property is mortgaged to the lender as security until the loan is repaid. The bank will keep the claim to the property until the loan is repaid in full, including interest. [B-01] Below are the terms most commonly used while getting a home loan: 1) Tenor The time it takes to repay a housing loan. The total value of the loan and the interest that must be paid within a specific period. 2) Joint ownership This involves two people acting as claim partners. Two parties, usually a family member, come together in the hopes of obtaining a loan for a specific property 3) EMI (Equated Monthly Instalment) The total of the principal and interest paid each month. This is the amount paid back to the lender to repay the loan amount. 4) Credit Appraisal A detailed check of the income, savings, and other borrowings to accept the person’s eligibility for the loan. 5) House Loan Interest Rate A fee is charged by a lender from a borrower to use the principal amount. The interest rate on the home loan determines the monthly EMI. 6) Floating Rate of Interest It changes periodically and is not constant. However, there is a limit to how much it can be increased. 7) Fixed-rate Home Loan An interest rate that remains unchanged throughout the loan’s term. 8) Collateral A property that is given as a security in exchange for a loan. If a borrower is unable to repay the loan, the claim of the property is transferred to the lender in exchange for the loan. 9) Disbursement Disbursement is the amount made available to the borrower by the lender. This takes place only after the paperwork has been completed and the loan value has been agreed upon. It can be of three types: a) Advance disbursement- The total amount disbursed before a project is completed. This occurs under the agreement that the builder will complete the project within the time frame. b) Partial disbursement- When the lender only gives out half of the loan amount to the borrower. c) Full disbursement- The lender pays out the entire loan amount at once. 10) Foreclosure A foreclosure occurs when you pay off the loan in full before the end of the term. In this case, the borrower must repay the entire sum. 11) Pre-EMI: Before the actual EMIs begin, only monthly interest payments on the amount disbursed are made. Such a payment is called a pre-EMI. 12) Balance Transfer or Refinance It is a special service provided to existing home loan borrowers who want to transfer their accounts to a new lender and pay off the balance with the proceeds of a new loan. 13) Down Payment/Margin It is also referred to as the initial payment. A downpayment is simply the difference between the lender’s loan amount and the actual property value. Most lenders lend 80% of the actual property value, with the borrower in charge of the remaining 20% as a margin or down payment. 14) Offer Letter A letter sent by the bank agreeing that the borrower has been accepted as an eligible loan customer is known as the offer letter. 15) Loan-to-Value Ratio (LTV) The LTV is calculated by dividing the loan amount by the property’s total value. 16) Top-up Home Loan If your financial needs exceed the amount of your loan, the borrower can apply for a top-up home loan. 17) Base Rate The lender’s set the lowest house loan interest rate. This is the limit below which the lender will not issue a home loan. 18) Resale Property When buying a home from a homeowner who is selling their property, the borrower is not buying a brand new house here but rather taking it from a house owner who has chosen to give away his or her house. 19) Credit Score The credit score represents a rating of a borrower’s ability to repay a housing loan. 20) Default Default occurs when a borrower fails to pay the EMI on time. In the event of a default, lenders charge penalty interest on subsequent EMIs. Types of Home Loans Below is a list of the different categories of housing loans: 1) Basic Home Loan The basic home loan is the most common type of loan used for purchasing a home. It allows parties to borrow money from a lender to purchase the home of their choice. 2) Home construction loan If the party already owes land and wants to build a house on it, they should look into a home construction loan. It is usually disbursed in instalments based on the progress of the project. 3) Home Improvement Loan A home extension loan can help if the borrower already owns a house but wants to add a room or floor. On the other hand, a home improvement loan is used to renovate an existing home. 4) Home Loan Balance Transfer If the borrower already has a home loan and is repaying it, they can switch to a different lender. Borrowers generally do this when they can obtain a home loan from a different lender at a lower house loan interest rate. Application Process A home loan is easier to obtain than ever because of the various mediums that have emerged with the upgrading of technology. One can choose between a physical mode and an online application. All that is required are a few documents to assess your ability to repay the home loan. [B-02] Wrap Up Everyone has a basic need for a place to live. This is due not only to its emotional value but also to its rising market value. With favourable housing loans at your disposal, it’s high time to have one. For more such articles, head to the Piramal Finance website and learn more about housing loans.
08-11-2023
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Home Loan

Prepaying A Home Loan: Good Or Bad Idea?

If you have taken a home loan, you may be wondering if you should prepay your home loan. Prepayment of a loan means repaying the loan either partially or completely before the due date. While some say that loan prepayment is a good financial decision, paying back housing loans faster than the actual date may incur some costs. So, there are pros and cons to home loan prepayment. With a bonus or a lump sum payment, you can either prepay your home loan or put that money towards other financial goals. This article will explore both the advantages and disadvantages of home loan prepayments so you will be able to make a good decision based on your financial situation and needs. [B-01] The Pros and Cons of Home Loan Prepayment Before making a decision on prepaying housing loans, carefully weigh the pros and cons, which are explored below: Pros Of Prepaying Home Loans These are the advantages of home loan prepayments: Avoid Defaulting During Bad Financial Times By prepaying a part of your home loan early, you can avoid defaulting on payments in the event of a bad financial situation. If you make a partial or full prepayment on your home loan, you will not have to dip into your savings or other sources of money in case you do not have money for your EMIs for that particular month or months. Large and unforeseen financial responsibilities may come up in the future so if you make a prepayment when you have access to money, it will ensure that you do not default on payments when you are in financial need. Shortened Tenure LengthWhen you pay off a part of a home loan, you will be in debt for a shorter amount of time. With a shorter term, you can then focus on other financial commitments instead of focusing only on making your EMI payments. Reduces Monthly Financial CommitmentsWhen home loan prepayments are made, the money you will have to pay each month will be less. This will enable you to change your monthly financial planning and instead of paying more as home loan EMIs, you can use more of your monthly salary, for example, on other important expenses. Cons Of Prepaying Home Loans These are the disadvantages of home loan prepayments: Prepayment PenaltiesThis is perhaps the single largest disadvantage of prepayments on housing loans. If you pay off your home loan early, banks and other lenders will charge you penalties on early payments. This is because lenders make money on interest payments. When you pay off your home loan early, the bank loses money, especially if the interest rate is fixed or if interest rates are going down. A big disadvantage of prepaying a home loan is having to pay fees of 2 to 4% of the amount. This is put in place to protect banks from losing money if customers pay off their housing loans early or switch to another bank. Excess Expenses As A Property Owner Once you have made a home loan prepayment, you will have other significant expenses such as property taxes, insurance, annual maintenance costs and more. If you make a home loan prepayment, you have to make sure you are ready to meet these costs. Lose Tax BenefitsAnother disadvantage of prepaying housing loans is losing tax breaks. If you live in your own home, you can deduct interest payments up to Rs. 2 lakh in a financial year. If it is your first home, you can take an extra Rs. 50,000 off the interest you pay. You can even get money back if you pay back the principal, up to Rs. 1.5 lakh. If you pay off your home loan in parts, your tax deductions will be lower at the end of the year. Less Money For Other Investments If you have access to funds and choose to make a home loan prepayment instead of investing that money, you will lose money that you could have made if you had put that money into securities to make more money. If you choose to make a partial payment on your home loan when you are in a good financial position, you may potentially lose out on investment opportunities that could help you reach your financial goals. With investments like mutual funds, stocks or debt products that have average return rates of 5% to 8%, you may lose the opportunity to earn Rs. 10 lakhs in 10 years, for instance. Lower SavingsIt is argued that it is preferable to have a large loan and small savings than a small loan and no savings. When you make a home loan prepayment, your savings will go down or may be depleted. If a situation suddenly arises for which you need money, it is better to have some savings than to make a large down payment on housing loans. It must be stated that each individual’s financial situation is different. Because of this, carefully consider both options, keeping in mind your financial capabilities and needs before making prepayments on housing loans. [B-02] Conclusion There is no single answer to whether home loan prepayments are good for everyone. It depends on each individual’s financial situation. For example, if the home loan prepayment penalty is less than the amount of interest you will save, then a person may opt for prepayment of housing loans. However, these calculations need to be made keeping in mind that unforeseen expenses can come up at any time. Furthermore, home loan prepayments require a sizable sum. Before making any decisions, it is a good idea to do some financial research and analysis and figure out how much home loan prepayments will cost. Prepayments on housing loans should only be made if you are confident that it will improve your financial situation. For articles like this one and more, visit Piramal Finance to get information, recommendations and guidance on your financial questions!
08-11-2023
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Personal Loan

NBFC Vs Banks – Personal Loan from NBFC is Better Option – Know Why

In India, one may avail loans from both banks and non-banking financial companies (NBFCs). Finding the best lender, whether in person or online, can be time-consuming. We’ll compare NBFC and bank personal loans to help you decide. [B-01] What does it mean to be an NBFC? NBFCs are non-bank financial institutions. It can perform bank-like functions as a financial institution. These businesses include lending, investing, and insuring. Why go to the NBFC for a personal loan? If you need a personal loan, consider an NBFC. NBFCs’ success in the unsecured loan market is due to their services. NBFC personal loans feature fewer fees than regular bank loans. An NBFC, one of the best personal loans in India, may lend you up to INR 50,000 for 10 to 7 years with equally spaced instalments (EMIs). In contrast to traditional banks, applicants for personal loans may discover that NBFCs have more lenient qualifying standards than traditional banks do. A minimum of INR 15,000 in monthly income is required, and applicants must be between the ages of 21 and 55. Regarding personal loans, the credit score necessary to qualify with most banks is lower than the minimum score required by NBFCs. The NBFC may provide the loan despite the applicant’s low CIBIL score if the applicant has a healthy income and significant professional experience. When time is short, NBFC loans are preferable to those offered by normal banks since the verification procedure for NBFC banks is completed faster. An increase in the loan amount is often only granted by the financial institution as a percentage of the total amount sought. Despite this, NBFCs are prepared to lend the total amount demanded. Better service to customers: NBFCs are known for offering exceptional service to their loan borrowers before, during, and after the loan is issued. This has earned them recognition for delivering superior customer service. The application for and approval of an NBFC personal loan take place entirely online. Therefore, borrowers may be asked to present far fewer supporting documents than they would be for a personal loan obtained through a traditional bank. Why go to a bank for a personal loan? Customers will have more faith in a bank if the institution has policies and practises that are trustworthy and consistent. Additionally, banks often provide loan rates and processing fees that are more competitive than NBFCs. Personal loans from financial organisations ranging from INR 24,000 to 40,000,000 may often be obtained. There is a significant range in the terms and conditions of personal loans made available by financial institutions, ranging from 1 year to 7 years, with annual interest rates ranging from 8.45% to 31.50%. Borrowers who choose personal loans from banks rather than NBFCs do so intending to reap the benefits listed in the following paragraphs: Reasonable levels of interest charged Banks, especially public sector banks, try to provide borrowers with interest rates that are competitive with the market to attract many prospective customers. This is because there are so many possible consumers. Personal loans are made available by financial institutions in the public sector, such as the Punjab National Bank, with interest rates as low as 8.45% per year (PNB). As money is always available, getting a loan from a bank is simple and uncomplicated You might get a loan from a bank of up to INR 40 million if you apply for it via the HDFC Personal Loan program. The amount of a loan is determined by some criteria, including the borrower’s qualifications, any collateral offered, and the borrower’s current financial status. Applications for loans are submitted in a quick and simple online format: Online applications for personal loans are now accepted by the majority of banks as well as NBFCs. Because the application may now be completed online, the interest rates on personal loans offered by banks have become more competitive. Pre-approved Loans The vast majority of financial institutions provide customers with the opportunity to get pre-approved for personal loans from their banking institution. The approval process for these loans is swift, and a minimum amount of documentation is required. Supplemental Options The services a bank provides include issuing cheques or demand draughts, accepting deposits of these instruments, facilitating cash withdrawals via automated teller machines, and more. An extensive network of interconnections Some financial institutions have hundreds of branches across the country and even the world. Because of this, obtaining a personal loan or any other sort of credit is now far easier than it used to be. Advantages of maintaining strong relationships Many individuals already have an operational link with at least one financial institution, whether via the maintenance of a savings, checking, salary, fixed or recurring deposit, etc. account. [B-02] Conclusion: Borrowers of personal loans may benefit from non-bank financial companies (NBFCs) and banks in a variety of ways. Non-bank financial companies, often known as NBFCs, are growing rapidly because they provide customers with interest rates that are more favourable than those offered by banks, which are well-known for their low-interest rates and low administrative expenses. If you need quick and easy access to money, non-bank financial companies (NBFCs) are a fantastic option. On the other hand, banks are seen as reliable sources of credit, and they sometimes offer borrowers lower interest rates. People who keep their money in financial institutions like banks are eligible for the deposit insurance programme offered by those establishments. Therefore, banks are an excellent choice if you seek a more secure alternative. In addition, it is more advantageous and makes more sense to apply for a personal loan from a financial institution with which you already have a connection. To get more useful information, visit Piramal Housing Finance.
08-11-2023
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