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Personal Loan

How is my prepayment fee of a personal loan calculated?

Personal debts that still need to be utilized should be canceled as soon as possible in times of global epidemic. Yet, if a private loan sum has already been expended on items, you should endeavour to make the maximum payback as soon as possible. The future is unclear, and continuing to pay interest money is pointless. You may apply to lender banks to close your prepayment loan account. After entering proper data into a personal loan prepayment calculator, the lender bank would return the sum to be paid for account closure. Consider if the lender you’ve contacted allows you to repay the loan before you apply for it. When you have a surplus of cash, you may sometimes direct it to your loan and pay it off before the end of its term. [B-01] How to understand the Personal Loan Prepayment Fee? There are two methods to pay off a personal loan: full prepayment and half payment. A personal loan calculator for prepayment is an online financial tool that calculates the monthly EMIs on your loan amount. It takes into account the loan amount, interest rate, part-payment amount, and duration to calculate the actual outstanding EMI amount. This way you can calculate the prepayment charges on personal loans. What Is the Process of Using a Personal Loan Prepayment Calculator to Calculate Prepayment Fees? A personal credit EMI calculator with prepayment assists in revising the loan need of EMI. In the relevant areas of the prepayment personal loan calculator, you must input the loan amount, duration, and interest rates. If you already have personal debt, the personal loan prepayment calculator will ask for the remaining loan sum, EMIs paid to date, prepayment amount, interest rate, and loan term. By using a personal loan calculator with a prepayment option, you will discover how much money you would save on EMIs. Procedure For Prepayment of Personal Loan Now that you have a better understanding of the concept, let’s go through the basic approach for calculating prepayment charges on personal loans. Consider the foreclosure costs if you have opted to foreclose on your loan. Similarly, if you are making a partial prepayment, consider the prepayment penalty. You may use a personal loan prepayment calculator to help you with this. Next, contact your bank’s local branch to negotiate the prepayment. You may also submit a request online. Make sure you have all of the necessary documentation on hand. After submitting your request, you may be called by a person who will assist you with the specifics of any fee/penalty and take your payment. Benefits of Prepaying a Personal Loan 1. Get Rid of The Burden of The Loan Faster Borrowing money for a personal loan is a great option if you need extra cash. But, with an unsecured personal loan, you must repay the money you borrow in monthly instalments. The EMI payment can also eat into your monthly savings. Personal loan prepayment is a great way to reduce your loan principal and pay off your loan early. If you have some extra money, it is a good idea to pay off your loan as soon as possible. You have to pay a nominal fee for prepaying the personal loan. 2. It Lets You Save Interest Rate A great way to save money is to pay off your loan early. Prepayment can be a great way to pay off your loan early and save money on interest, but many people need to learn how it works or that it can save you money. If you have a home equity loan, it’s even easier to prepay. You can pay your monthly payment all at once, and the lender will reduce the principal balance on your loan immediately. It helps you decrease the interest on the loan you will pay in your lifetime. 3. Improves Your Credit Score It’s important to know that the credit score is a critical part of your financial life and can make or break your ability to borrow money. If you have a loan, you can prepay some of it and improve your credit score. Prepaying your loan is an important part of debt management and the first step toward improving your credit score. Most loans are made based on your credit score. If you have outstanding loans, that will affect your credit score negatively, but if you pay them off in full or partially, your credit score will also go up, which means you will qualify for a better deal on loans in the future. The Drawbacks of Prepayment of Personal Loan 1. Having to Make Expensive Payments Despite its benefits, prepaying a personal loan comes at a significant expense: you’ll have to pay lump-sum instalments to erase the debt, restricting your financial freedom momentarily. 2. Penalty Fees for Early Payment The RBI now forbids prepayment fees on private loans with variable interest rates. On the other hand, those who take out personal loans having fixed interest rates are not subject to this limitation. Prepayment charges on personal loans of up to 5 per cent of a personal loan’s outstanding principal amount are frequent. Prepaying a fixed-rate personal loan might reduce interest savings. Many lenders additionally restrict part-payments or foreclosure costs on personal loans until numerous payments are received. 3. Liquidity Is Being Harmed Many borrowers exhaust their cash assets or current investments to repay their debts. Yet, doing so may impair their capacity to cope with any financial crisis that develops as a result of events such as job loss, medical issues, or other unanticipated occurrences. You may have to take out higher-interest loans to meet your financial objectives if they use current assets. Existing personal loan clients should select prepayment only if they have enough emergency funds to prevent this problem. They should also refrain from leveraging current assets for unavoidable financial goals. [B-02] Conclusion Personal loan prepayment is appealing for current borrowers since it helps them minimize their interest expenses and total repayment load. However, if the lender imposes prepayment penalties and a drop in liquidity, this may be a disincentive. You may lessen your repayment load and interest expense by shifting your loan to lenders that offer cheaper personal loan interest rates. Read more at Piramal Finance to learn about personal loans and more.
08-11-2023
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Home Loan

Top 10 Uses of Home Renovation Loan You Must Know

A house tells a lot about its owner. The best way to maintain your home is to carry out timely renovations, repairs, and desired alterations. This is where a home renovation loan can come in handy. With ample funds at your disposal, a house renovation loan can help you renovate your home the way you want. Before you decide to apply for a home renovation loan, it’s essential to plan what to do with it. [B-01] Here are the top 10 ways you can put your home renovation loan to use. What is a Home Renovation Loan? Before borrowing a renovation loan, it is essential to know what it is. A home renovation loan is a loan that helps you to undertake any repairs or renovation of your home. Whether it is a seepage repair, a complete repaint, or a structural change, all this and much more can be done with a home renovation loan. These loans generally come with attractive interest rates and a longer tenure to help you get the most out of your home. Top 10 Uses of a Home Renovation Loan Now that you know what a house renovation loan is used for, here are some of the ways to use it: Basic Upgrades One of the most common uses of a home renovation loan is to carry out basic upgrades. These include replacing sanitary fixtures, purchasing new furniture, or bringing home new electronics. You can add value to your home with a few basic upgrades. And the best way to finance these basic upgrades is with a home renovation loan. Interior Revamping Interior renovation is always a costly job. Paying it from your hard-earned savings can have a huge impact on your financial planning. Utilizing your house renovation loan to carry out the revamping is wiser. The best part about a house renovation loan is that you can tailor it to your specific requirements. This will remove the excess burden from your finances. Remodelling of Kitchen A clean, tidy, and good-looking kitchen can enhance the entire aura of your home. But remodeling your kitchen can be quite expensive. This is where a home renovation loan comes in. With funds at your disposal, you can change the flooring, fittings and fixtures, cabinets, shelves, and much more. Bathroom Renovation Modular bathrooms are the latest trend when it comes to styling your home. Whether you want to revamp your existing bathroom or build a new one. A home renovation loan can help you do all that and much more. Add a new shower, install a new bathtub, or upgrade to high-end fittings and fixtures. You can do whatever you want without breaking the bank. However, keep your loan amount as low as possible and cater to only what’s needed. This can help you avoid borrowing more than you need. Recreating Rooms Making new space within your house requires altering the current structures. Whether by altering the balcony, or the bathroom, with a home renovation loan, you can recreate your bedroom or make space for a new one. And since alterations and recreations cost a lot, your home renovation loan amount can help you easily cover the cost. Replacing Doors and Windows Doors and windows play an important role in preventing cold, heat, breeze, and rain from entering the house. But if your doors and windows are too old or in a bad shape, you need to replace them. A home renovation loan can easily help you secure the funds you need to purchase new doors and windows. However, when you decide to carry out a task like this, make sure the loan amount is as low as possible. New Flooring Great flooring can enhance the entire look of your home. But floor tiles, marble, or other flooring options are generally quite costly to install. Therefore, a substantial amount of your savings can disappear when you decide to change your home’s flooring. But with a home renovation loan, you can replace the entire flooring of your home without worrying about a mismanaged budget. You can even repair your existing flooring and make it look new. Seepage issues can hinder the beauty of your home. It looks ugly, hampers the wall’s strength, and is costly to repair. Repairing a deep seepage requires a high budget that caters to labor costs, wall strengthening, and overall repairs. With a house renovation loan, you can complete all the necessary repairs and make your home leak-free. Seepage Repair Making a terrace garden You should not waste space if you have a home terrace. Modern terrace gardens can enhance the overall feel of your home. With beautiful plants, grass flooring, swings, modern lighting, and much more, a terrace garden can make the most of your home. With a home renovation loan, making a terrace garden from scratch can become simple and budget-friendly. Electronics and Appliance Upgrades Lastly, a home renovation loan can also be used to upgrade your existing electronics and appliances. Be it getting new ACs, washing machines, or upgrading your existing ones. A house renovation loan is a diverse product that can help you do it all. [B-02] Wrapping Up With long tenures, competitive interest rates, and flexible repayment schedules, a home renovation loan is best if you want to repair or renovate your home. If you want to upgrade your home, go ahead and find the best home renovation loan option that suits your needs. To read more articles on home renovation loans, visit Piramal Finance and give wings to your dreams.
08-11-2023
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Personal Loan

Top 10 Personal Loan Banks and NBFCs in India

In today’s fast-paced world, we all need cash to tide over financial emergencies. However, it is not always convenient to come across a bank that can lend you money for an emergency. That’s why there has been a rise in the number of non-banking financial companies (NBFCs) lending personal loans these days. If you are wondering how to get a personal loan and where to look for the options, this article will be of help to you. [B-01] How to Get a Personal Loan? A few years back, finding lenders and getting approval for a loan was difficult, especially if you were a first-time borrower. However, there are many options available now for those trying to get a personal loan. You can go online and find out about the terms and conditions of the various banks and NBFCs offering personal loans. You can also approach the loan desk of a bank or a financial institution. Here, we will talk about India’s top 10 best personal loan banks and NBFCs. Elara Capital LLP Elara Capital LLP is a subsidiary of the Corporation Bank. While Corporation Bank offers personal loan products, Elara Capital LLC is a financial services company. Elara Capital is counted as India’s second-best personal loan bank. It provides loans ranging from ₹ 2 lakhs to ₹ 25 crores. Elara Capital has been a preferred lender for the past few years consistently offering good loan rates. MINT Capital Partners Pvt. Ltd. MINT Capital Partners Pvt. Ltd. is counted as the best personal loan bank in India. The company was established in 2013 and is based in Hyderabad. MINT Capital Partners Pvt. Ltd. is a part of the MINT group, which is counted as the third-best personal loan bank in India. MINT is a group of financial services companies that offers various financial services like insurance, pension funds, banking, and mortgage services. If you want to start a loan application process with MINT, you will have to fill out their online form and their agent will reach out to you on how to get a personal loan. Meesui Financial Services Pvt. Ltd. Meesui Financial Services Pvt. Ltd. is another top-notch personal loan bank. The company was established in 2008 and is based in Mumbai. Meesui is counted as one of the best NBFCs in India providing personal loan products to customers. The Mumbai-based NBFC provides loans ranging from ₹ 2 lakhs to ₹ 5 crores. Provogue Financial Services Pvt. Ltd. Provogue Financial Services Pvt. Ltd. is counted as one of the best NBFCs providing personal loan products. The company was established in 2015 and is based in Mumbai. It is known not only for personal loan products but also for its excellent customer service and has received awards for its initiative for financial inclusion in the country. Over the past few years, Provogue has launched a new set of personal loan options for young graduates. Pure Loans Pvt. Ltd. (Formerly Aneel Finance) Pure Loans Pvt. Ltd. is counted as the best NBFC providing both terma and home loan products. The company was established in 2012 and is based in Bengaluru. The Rajkumar Group, which is counted as the second-best NBFC for providing home loans, is a minority partner of Pure Loans. Pure Loans Pvt. Ltd. is a part of the Aneel Financial Services Group, the leading NBFC market. Indiabulls Indiabulls is a leading NBFC and a pioneer in the NBFC sector in India offering a wide range of finance programs and services across the country. Indiabulls finances businesses and individuals for long-term investment and financial plans. Investors have the option of choosing from a wide range of financial products and services, including retail and corporate loans, home loans, venture capital, asset reconstruction, insurance products, and financial advice. If your question is how to get a personal loan from Indiabulls, you can reach out to their customer care number 1800 572 7777. Yes Bank Limited Yes Bank is counted as one of the best personal loan lenders. The bank was established in 1988 and is based in Mumbai. It is a part of the State Bank of India (SBI), one of the biggest banks in India. The bank offers a range of personal loan products like home, car, and small business loans. The best thing about Yes Bank is that it charges the lowest interest rates for all these loan products. The best way to start the application process with Yes Bank is to call their customer care number. Siganto Investment Holdings Pvt. Ltd. Siganto Investment Holdings Pvt. Ltd. is counted as the third-best NBFC providing personal loan products and the best NBFC providing home loan products. The company was set up in 2007 and is based in Mumbai. Siganto Investment Holdings Pvt. Ltd. is a part of the Srei Infrastructure Developers Group, which is counted as the second-best NBFC providing home loan products. If you’re interested in getting a personal loan from Siganto, reach out to them via the email ID provided on their website. Muthoot Finance Muthoot Finance is a leading non-banking financial institution in India. The company offers business finance, NBFC loans, asset reconstruction, and factoring. The company was incorporated in 2002 with its headquarters in Chennai, Tamil Nadu. In the past decade, Muthoot Finance has emerged as one of the largest providers of gold loans in the country and also ranks top when it comes to personal loans with the most attractive interest rates. To get a personal loan from Muthoot, either visit their nearest branch or reach out to them through a dedicated form on their website’s ‘personal loan section’. Sumitomo Mitsui Financial Group SMFG is the fourth-best NBFC providing personal loan products and third-best providing insurance products. The company was formed in 2005 and is based in Mumbai. It is a part of the Sumitomo Mitsui Financial Group and has consistently ranked among the top NBFCs in the country. The company provides various financial services like insurance, pension funds, and banking. This is a Japanese enterprise and works differently as compared to the Indian-origin ones. Thus, the best way to start a loan application is to write to them seeking information on how to get a personal loan. [B-02] Conclusion Personal loan banks and NBFCs in India are becoming increasingly popular. Thanks to the ease of online applications, low fees, and flexible repayment terms that have made possible a personal loan with just a few clicks. If you were wondering how to get a personal loan, this article would have answered your questions. But if the options presented here are not satisfactory, you may check out the innovative and customized financing solutions provided by Piramal Finance.
08-11-2023
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General Insurance

Complete Guide To Buy Best Term Insurance In 2022

The start of a new financial year always brings new goals to mind and a fresh approach to every individual’s mind. However, while it is very natural to feel stress-free because the financial year has just started for you, it would be in your best interest to not let valuable months slip out of your hands without financial planning. One of the most important decisions in a person’s life may be deciding on the type of insurance and determining how much life insurance is required. It makes all the difference in the world to have the right insurance partner who not only provides you with the best term insurance money can buy but is also a trusted insurer in the market with a legacy that can win over your trust as well. [B-01] Therefore, you must remember to find yourself the best term life insurance in India, with an ideal coverage option, the best payout methods, and a CSR that will guarantee you an easy settlement. Just as it is important to think thoroughly about the life insurance your family will need, it is just as crucial to compare insurers and do your due diligence to find a term life insurance policy that will be perfect for you and your family. Why Opt For Only The Best Term Insurance Plan In India? Believe it or not, life is always full of uncertainties. And unless you are creating a financial backup, i.e., a safety net for yourself and your family to fall back on, it can get unpredictable and difficult to survive at any point in time. Thus, you must remember to compare basic parameters while getting term life insurance. Look for which insurer is offering higher coverage for a cheaper premium and who has a better name in the market. However, the search for the best term insurance in India goes much deeper. The cheapest term insurance plan might not be the best term insurance and may not even be ideal for you. Hence, it is important to compare them and use an insurance calculator to find out which plan is the best fit for you and your family. Here are some of the parameters that can help you choose the ideal term insurance for your family: Payout Flexibility You can choose between the fixed monthly income payout and the increasing monthly income payout. Different insurance companies offer two or even both payout options for life insurance. In the fixed monthly income term insurance plan, the beneficiaries of the deceased are paid a predetermined amount monthly. This makes clearing off their dues and monthly expenditures easy for them. An increasing monthly income plan, on the other hand, is where insurers allow the monthly income to grow by 10% annually, giving your family inflation-proof financial cover. Claim rejection rate One of the biggest benefits of term insurance is the high claim settlement ratio that most of these policies and insurance companies build over time. So make sure that your family does not have to take too many trips to the insurer to get the claim processed. You should do your part by comparing term life insurance plans properly. The key is to select a trusted insurer with an excellent death settlement ratio and spotless claim history. Increasing policy coverage The best term insurance will not only give you great coverage from the start but also offer flexibility to increase it as you advance in life. Right from getting married and settling down in a home of your own to having kids and starting an education plan for them, certain milestones in life demand higher policy coverage. So, check out which term insurance plan is allowing you to increase your life coverage as you pass through such important milestones. Additional Riders Customising a term insurance policy can be tricky at times. There are a lot of useful riders, like waiver of premium, accidental death benefit, partial or complete disability, critical illness cover, etc. However, it is important to assess your family’s needs and add only those covers to your policy that could benefit your loved ones. The best term life insurance plans in India will offer you these riders at a nominal cost, and their advisors can help you navigate through the choices and easily pick only the ones you will need. While there are many benefits to this policy and riders to help customise it, do not forget that at its core, a term insurance plan’s purpose is to protect you and your family in unprecedented times. Another important benefit is all the tax savings you can achieve once you buy the best term insurance in India. Under Section 80C of the Income Tax Act of 1961, you can claim a deduction on your taxes for your life insurance policy premiums. Use an income tax calculator to ensure that your annual premium amount is less than 10% of your total sum assured to enjoy tax benefits as long as your policy is active. Secure Your Loved Ones With The Right Term Insurance plan Choosing the right term insurance can be a tough decision, especially with the number of options that are available today. However, it is recommended that you explore different options and match them to your unique requirements before you choose a term insurance plan. [B-02] It is very important to compare insurers in detail to find the best term insurance plan in India. Remember to choose an insurer that will do right by you and your family. So do the right thing for your family and buy yourself the best term insurance today. Stay tuned to the Piramal Finance blogs for more such articles. You can also explore different types of loans on Piramal Finance’s website and get expert advice from them on how to make financial decisions!
08-11-2023
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Home Loan

How Can You Calculate Home Loan EMI for Rs. 1 Crore?

Do you need a loan to purchase a property and have a credit score of at least 750? If so, a home loan of Rs 1 crore may be just what you need. Congratulations! The decision to buy a home is substantial, both monetarily and psychologically. But how much will the monthly payment be on a property loan of Rs 1 crore? In other words, how much would you need to pay monthly on a mortgage of Rs 1 crore? Several variables go into determining the mortgage loan EMI each month, including the loan amount, loan term, and interest rate. [B-01] In this article, we will tell you how to calculate a home loan EMI of Rs. 1 crore. How do I calculate the home loan EMI for Rs. 1 crore? To easily calculate your house loan EMI, use the home loan calculator provided by Piramal Finance. A good decision on a new home purchase might be aided by the home loan interest calculator. The EMI calculator can also be used for monthly budgeting purposes. With a low interest rate and a longer repayment period, your monthly mortgage payment to Piramal Finance will be more manageable. This straightforward home loan EMI calculator can help you determine your monthly EMI payment. How To Use Piramal Finance’s Home Loan EMI Calculator Simply enter the following data to determine your EMI: Loan Amount: Insert the desired loan amount. Tenure: Put in the number of years over which you hope to pay off your home loan. Eligibility is enhanced with a longer tenure. Interest Rate: Put in the interest rate. How Does EMI Calculation Help? Using the house loan EMI calculator, you may get an idea of how much you will have to pay each month for your mortgage. This will allow you to make a more calculated decision about your budget. This is useful for evaluating the possible loan amount, as well as the amount of the personal contribution and the price of the property. If you want to know whether you qualify for a home loan, you need to know how much your monthly payments will be. Features and Benefits of Applying for a Home Loan with Piramal Finance Home loans to buy an apartment, a duplex, or a cottage from a private firm in a sanctioned development. The DDA, the MHADA, and other development authorities provide loans for purchasing homes. Freehold, leasehold, and Development Authority-assigned lots qualify for new construction loans. Get the best possible property purchase decision with the help of expert legal and technical advice. A nationwide branch network makes it easy to apply for and manage a home loan, no matter where you are in India. Factors affecting home loan EMI 1. Changing Your Loan Tenure You may notice a difference in your monthly payment if you make a small adjustment to the term of your mortgage loan. Generally speaking, if you extend the length of your loan, your EMI will decrease, and vice versa. However, it is important to keep in mind that the greater your loan’s duration, the more interest you will have to pay overall. If you take out a loan for a longer period, your monthly instalments may be lower. Nevertheless, the total amount that you will pay back will be higher. 2. Prepayment It is common practice for mortgage lenders to accept prepayments from borrowers. Consequently, the principal amount is reduced, and you pay less interest. The lender, however, may impose a prepayment penalty on you, often between 1 and 5% of the outstanding principal. Before you sign the mortgage agreement, it’s a good idea to double-check the repayment terms with the lender. Talk to your lender about reducing the prepayment penalty to an amount that is manageable for you. 3. Step-up or step-down repayment When applying for a mortgage, you may be presented with many repayment plans to pick from depending on your anticipated cash flow. The first choice is to make larger monthly payments toward the principal. This choice is recommended for individuals who have just started jobs and are anticipating growth in salary as they acquire more knowledge. Under this, your EMI would increase with time. The other choice is called “step-down payment,” and it is ideal for people who are retiring. Here, you begin with large EMIs and gradually pay less over time. 4. Personal Loan Balance Transfer While it’s important to secure a mortgage loan from the best possible lender, it is also important to monitor the interest rates given by other lenders during the life of the loan. Borrowers can get a cheaper interest rate on their home loan by switching to a new lender and transferring the pending loan to the new lender. Make sure the savings you will realize from moving lenders, in the form of cheaper EMIs, are greater than the cost of the balance transfer, otherwise, you shouldn’t do it. What is the Amortization schedule for a home loan? Amortization refers to the practice of reducing debt through regular loan payments over the loan’s term. The EMI calculators provided by Piramal Finance are a good way to get an idea of how much of the loan’s principal will be repaid each month, given the loan’s terms and interest rate. With the help of the Piramal Finance mortgage loan calculator, you can see how much you will pay in interest and principal throughout your loan. If you have used Piramal Finance’s EMI calculator to get an idea of your monthly payments, you can easily apply for a home loan online. What is a Pre-Approved Home Loan? Piramal Finance will assist you in obtaining a pre-approval home loan even if you have not yet located your ideal residence. Your income, credit, and financial position will all be evaluated before a final decision is made on a pre-approved home loan. [B-02] Conclusion A home loan can provide a buyer with a one-stop shop for all of their home financing needs. Buying a home has probably been a lifelong goal of many people, and Piramal Finance has a variety of financial options that can help you get there. Loan processing is streamlined because of streamlined application processes, responsive customer service, and devoted relationship managers. Calculating your home loan EMI can be difficult. But use a home loan EMI calculator to easily calculate your EMIs. This was a comprehensive guide on calculating home loan EMI for Rs. 1 crore. We hope you found this article useful. Need instant funds? Apply for a personal loan with Piramal Finance and get up to Rs. 10 Lakhs!
08-11-2023
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Business Loan

Complete Entrepreneur’s Guide to Business Loan Interest Rates in 2022

It doesn’t matter where you are in your entrepreneurial journey. A business loan for entrepreneurs can be an invaluable resource. It can help get your company off the ground or expand your operations. But, remember that you must repay loans in full, plus interest. They are not like grants or venture money before you apply for one. So, you must have a strategy to make the most of your financial windfall. Consider the interest rate and fees associated with the borrowing next. All loans include interest for education, property, and commerce. When deciding on a loan program, the interest rate is crucial. That is because little fluctuations in the rate can add up to significant savings. Or, expenditures over the life of the loan. In this article, we’ll talk about business loan interest rates and more! [B-01] Business Loan Interest Rate Interest on a business loan for entrepreneurs is the cost of borrowing money. It is paid back to the lender together with the principal. We express it in a percentage of the loan’s principal. The APR represents the overall cost of a loan when you factor in interest and fees. It is the gold standard for analyzing and contrasting various interest rates. The interest rate on a business loan for entrepreneurs can differ greatly based on several factors. For example, the borrower’s credit history, the lender, and the state of the economy. The interest rates for Piramal Finance are 17% p.a onwards. How to Prepare for a Business Loan Application? Preparing ahead of time will give you a better chance of receiving a good loan offer. Hence, starting early is crucial. We recommend that you have the following in place before approaching lenders: 1. Formulate a business plan A reputable lender is interested in learning how you plan to use the loan money. Lenders will be more likely to provide funding if you show a clear need for and use of the requested funds. 2. Improve your own and your company’s credit When you apply for a company loan, the lender will check your credit. Also, if your company doesn’t yet have an established credit history, they can rely on this. High-credit-score borrowers are more likely to be granted favourable interest rates. (About 750 or more is considered an “excellent” score.) Paying your credit card in full each month before the due date is a great way to establish credit. Pay off your loans and keep your balances below 30% of your credit limit. This is crucial if you don’t have time to improve your credit to optimal levels before applying. 3. Build a bond with a financial institution It is a good idea to first approach a lender for a modest loan. This is important if you plan to take out a larger loan in the next 6 months or more. But, make your monthly payments on time. Due to this, the lender will have more faith in you. Also, it may provide better interest rates when you’re ready to take out a larger loan. Factors Affecting Business Loan Interest Rate Interest rates on company loans are affected by the following variables: 1. Nature of Business Lenders typically divide loans into two categories: Priority Sector and Non-Priority Sector. Non-Priority Sector Loans carry a greater interest rate than Priority Sector Loans. So, the interest rate on your company’s loan will depend on the type of business you run. 2. Incorporation and Existence The longer you can keep your company going, the better off you will be. Yet, a minimum of two years in business is required, and this is true regardless of the industry. So, having been in operation longer increases your odds of qualifying for loans. 3. Monthly Revenue Whether your company is profitable or not, depends on its monthly sales volume. In a nutshell, it is still a major consideration when applying for a commercial loan. At times, the turnover rate keeps swinging. But, consistency is of the utmost importance. That is because it aids the lender in determining the loan amount and terms. 4. Credit Rating Your creditworthiness depends on your credit score. Timely loan and credit card payments can attain a good credit score. Applying for a loan will go more smoothly if your credit score is high (750 or higher). A high credit score can do wonders for you. For example, you can access preferential interest rates and payment plans. 5. Collateral Collateral refers to the security you put in for a loan. The greater the value of the collateral, the greater the advantages. The bank is protected by the borrower’s provision of extremely valuable collateral. For example, real estate, equipment, machinery, savings, or home equity. The bank may decide to lend you more money after reviewing your collateral. That is because they perceive your request to be low-risk. 6. Type of Lender Different banks charge different interest rates for a business loan for entrepreneurs. Suppose you compare the interest rates on a business loan for entrepreneurs. In that case, you will discover that banks typically offer lower rates. [B-02] Conclusion Business loans for entrepreneurs are a great way to get the funding they need to grow. But, the interest rate is the most influential factor in determining a business loan. We hope this blog post taught you everything you need about business loan interest rates. Short on funds? Apply for a quick personal loan with Piramal Finance and get up to Rs. 10 Lakhs.
08-11-2023
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Personal Loan

10 Reasons Why Personal Loans are Ideal for Medical Emergency

Health emergencies can happen at any time. It’s tough to deal with the immediate stress of paying off medical bills. So, if you already have health insurance, that won’t help. This is due to the possibility that your plan will not cover its outlays. There is a maximum benefit that can be paid out by health insurance. Your plan will get rejected if the total cost of your treatment is more than the maximum benefit amount. [B-01] Taking out a loan for unexpected medical expenses is a better option. It is especially helpful for people in certain financial binds. There are no restrictions, so you can relax and settle the debt whenever it suits you best. A medical loan, which is more like a personal loan for a medical emergency, is the one most people turn to in times of dire medical need. We couldn’t think of a better way to handle unexpected events. Personal loans are flexible. Hence, you can use the money for anything, including unexpected medical costs. 10 Reasons Why Personal Loans are Ideal for Medical Emergency Compared to other types of loans, you can take out a medical loan or a personal loan for a medical emergency anytime. Plus, the claims process is quick and simple. No collateral needed You can use unsecured loans for anything, including medical care or a new car. They are available to those with the financial means to repay them. No collateral or other security is ever required from a loan applicant. This means that no collateral is required to get a loan obtained either online or offline. A loan from the lender’s office would put the collateral in danger, so you can’t use it in an emergency. Given that you already have the money you need, getting a personal loan for a medical emergency is the best course of action. Adjustable loan repayment option Repaying the debt is as easy as the process of getting it. Examine your EMI using an EMI calculator before you commit to a medical loan. Planning your finances in this way will help you to be more precise in your projections. The loan term for a medical one is between 12 and 60 months. Your performance will determine which of the available terms you are offered. With a longer loan term, the monthly payment, or EMI, will be lower, and the loan burden will be lower. A shorter loan term is preferable if you plan to pay off the debt. Quick money disbursal When it comes to seeking treatment for a medical emergency, time is of the essence. A personal loan for a medical emergency is the quickest and most convenient option to get instant funds. Instant loans, a shortened form of personal loans, get their name from their speed. They are disbursed superfast to borrowers. And, quick approval for a personal loan means convenience. Rapid Processing of Applications A major perk of applying online for a personal loan for a medical emergency is the quickness of the approval. Your loan application will be approved if you apply. There are calculations and processes in place to handle the loan application. If compared, the latter can get you a loan approved faster. But, only if you provide the required information. Flexibility The terms of personal loans are likewise very adaptable. Loan durations between 1 and 5 years are offered by lenders, which is good for a few reasons. Your monthly payment should be manageable if you shop around for a good interest rate. In a personal loan, interest is included in the monthly payment rather than added as a separate charge. Minimal paperwork needed Applying for a personal loan for a medical emergency online is much simpler than the old-school method. That’s because of the small number of supporting documents that are often necessary. The following is the loan documentation required: Income certificate A copy of the Aadhaar card Address Proof Identity Proof To submit your documents, follow the instructions and upload them to the website. Getting a personal loan online means you’ll never have to hand over the documents. Online forms are more convenient and less time-consuming. This feature is great for patients to fill out while hospitalized. The loan application process is quick and easy. Keep your savings to yourself In times of financial crisis, the cash set aside in savings is the most useful resource. But when disaster strikes, you need to use your wits and intelligence to get through it. It is foolish to deplete one’s savings to pay the bills in a medical emergency. Then what hope is there for the future? Thus, you should consider a personal loan for a medical emergency to save time and money. Getting a loan is a good idea for both now and in the future. Make the most of the present financial position by avoiding unnecessary spending. And, making responsible use of available loan cash. Simply put, paying off the loan is far preferable to spending all your savings. Doesn’t disturb your finances Many people take the time to manage their family’s budget. But, unexpected medical bills disrupt those plans. An emergency throws a wrench in your plans. For example, plans to invest, save, or pay EMIs. In such a scenario, you stop saving and put all your money into your EMIs. Which, in turn, disturbs your finances. Instead of doing that, you should look into getting a medical loan. The sole variable in your strategy is the total amount of your EMI loan repayments. This can be paid for without difficulty rather than throwing a wrench into your budget. There is less work involved, resulting in a life with less stress. Flexible and low-interest rates The main benefit of a personal loan for a medical emergency is its low-interest rate compared to other loan and credit card options. Terminal care may be covered, like that required for cancer or vision problems. Health insurance doesn’t cover all of them. These loans cover all medical expenses. Ranging from routine checks to minor repairs to major operations. No matter how much a hospital’s prescription costs. When it comes to unexpected medical costs, medical loans are your best option. Get treatment done at any hospital of your choice A personal loan for a medical emergency does not restrict which facilities can provide care. You are free to select the hospital that best meets the needs of you and your loved ones. It’s no secret that patients flock to hospitals that use cutting-edge medical equipment. If you want the best for everyone, there’s nothing wrong with picking a good hospital. But you’ll need a significant sum of money, and a medical loan can help you get it. The finest medical option in an emergency, but it won’t pay for itself by taking care of you or your loved ones. [B-02] Conclusion It’s no one’s ideal situation to have to take out a loan to deal with the financial fallout of an unexpected event. Yet, a personal loan for a medical emergency can be a viable option instead of using credit cards or ignoring the mounting costs. If you’re in a bind and need money fast, shopping around for personal loans is worth your time. But, shop from companies with a reputation for speedy approvals. Then, apply to the one that seems most suitable. After dealing with any financial obligations, develop a strategy for repaying your loan. Building an emergency fund is something you should give serious consideration to. And, that’s especially important to safeguard yourself against potential difficulties. Are you in urgent need of money? Apply for a quick personal loan from Piramal Finance right now!
08-11-2023
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Business Loan

Complete Guide on How to Compare the Best Start-up Business Loans

A creative company concept and a strong core team are insufficient to create a billion-dollar corporate empire. When not adequately financed, these projects often fall short of being implemented. Although it would seem that angel investors and venture capitalists are the sole sources of financing for businesses. [B-01] Start-up business loans are one of India’s most popular forms of financing. This article provides all the information you need to identify the best finance source for your start-up, small company, or MSME (Micro, Small, and Medium Enterprises). What is a Loan for a New Business? Start-up loans are loans given to firms by financial institutions (not to be confused with personal loans). The institution decides for the future, knowing that the capital will be repaid with interest. This loan may be used by businesses as working capital to cover short-term cash flow needs and to buy machinery and other equipment. Using start-up business loans provides many benefits for entrepreneurs. The following are some advantages of using start-up company loans: You have enough money to expand your company’s activities. You are not required to give up your ownership rights or equity. For future loans, you may increase your business’s credit score. You may prevent a loss of your fortune that is unparalleled. You are not required to account to the bank for the revenue and expenses of your company. Receiving a startup company loan has advantages, but there are also some drawbacks. Using startup company loans as leverage has several drawbacks. It takes work to be eligible for the loan! Lenders have different requirements, and new businesses may have trouble meeting them. The monthly payment might reduce your available cash flow. Your credit score will be affected if you don’t pay your EMIs. How do I apply for a loan for a new business in India? In India, applying for a startup loan is rather simple. You may approach this in one of two ways: You may submit an online loan application by going to the lender’s official website. For the most part, merchants provide an online form that must be completed and submitted together with other papers (keep reading to know what documents you will need while applying for a startup business loan in India). You may get an application form immediately from the lender’s closest branch office, complete it, and submit it there along with the necessary supporting papers. 8 Important Types of Startup Business Loans Available in India In India, startups can access a wide range of business credit options. The following are the top eight leveraged startup company loans: A Loan Used for Working Capital Also known as collateral-free loans, firms use working capital loans to fund their ongoing working capital needs. Working capital loans often have a short payback duration of up to a year. Working capital loans have a shorter term, which results in a higher interest rate. Term Loan (Short & Long-Term Loan) One of the most popular types of loans, term loans, must be repaid over a certain time frame. These may be roughly divided into long-term loans (more than one year) and short-term loans (up to five to ten years). The lender determines the duration of the loan based on the amount of funds required. Letter of Credit A letter of credit is a sort of credit limit often used by firms engaged in trade. It entails the lender providing financial guarantees to the businesses’ suppliers. An effective LoC is essential to maintaining international commerce since both import and export often deal with unknown circumstances. Overdraft Facility An overdraft facility is a loan provided by banks that enables company owners to withdraw money even when their account has no balance. Interest is assessed on the amount deducted from the authorised limit each day. This company loan is given in exchange for collateral, a bank FD. Equipment Finance or Machinery Loan As the name implies, lenders provide an equipment or machinery loan to help borrowers buy equipment for their businesses. While the specifics vary depending on the lender, firms that use this loan are granted tax breaks by the Indian government. Government-Sponsored Loans The Indian government has some loans available that are designed only for businesses within 59 minutes, the Mudra Scheme within PMMY, PMEGP, CGTMSE, Standup India, Startup India, and PSB Loans. Following are some of India’s most well-known government credit schemes: Invoice Financing By borrowing money against the sums owed by their clients, companies may do so via invoice finance. It enables companies to pay their staff and suppliers, increase cash flow, and reinvest in their core company. Businesses pay the lender a loan fee based on a percentage of the invoice total. The consumer may not know that their invoice has been financed, thanks to how invoice financing is set up, or the lender may handle it. Merchant Cash Advance In exchange for a portion of their daily credit card revenue, businesses can obtain cash from merchant cash advance companies directly from the processor that clears and settles credit card payments. The loan size depends on how much money you make from monthly card sales. Some lenders will calculate your eligibility up to 200% of the value. The eligible amount for an advance increases with your sales. The list continues after that. After learning about the various forms of startup company loans offered in India, let’s examine the requirements for applying for these loans. Requirements for a Startup Business Loan The requirements for new enterprises seeking startup loans vary depending on the lender, as was previously mentioned. As a result, the majority of Indian lenders are required to meet the following requirements: If you’re an Indian citizen who lives there, that would be helpful. It would be beneficial to have a CIBIL score of at least 700. Your business should have been operating for at least two years. Your company should make at least INR 2 lakhs each year. Ages should range from 21 to 65 years old. It would be ideal to have a strong business strategy with a realistic timeline. Remember The bank may decide to limit the loan amount if the CIBIL score is on edge. Important elements like turnover, partner/director compensation, depreciation, interest expense, and net profit after taxes determine the loan amount. The debt service coverage ratio (DSCR) shows the borrower’s capacity to pay the proposed loan’s EMI. A DSCR of 1.0 to 1.5 is often required by banks. Documentation Needed to Apply for a Business Loan for a Startup Let’s look at some of the important documentation you’ll need to have the loan authorised now that you are aware of the eligibility requirements for receiving a startup company loan: Passport, a PAN card, an Aadhaar card, a driver’s license, or a voter ID that also serves as evidence of age Completed loan application Two passport-sized photos Energy bills, a passport, an Aadhaar card, or a voter ID may be used as address proof. Evidence that you are the owner of the firm Income Statement: Evidence of the applicant’s consistent income Bank statements from the previous six months Financial statements that have undergone two years’ worth of CA audits [B-02] Conclusion In this post, you looked at the process for applying for business loans for a start-up in India, as well as information on various banks and government programmes that provide business loans for start-ups. This article will provide you with all the information you need before applying for a business loan for your new venture. For additional information, visit Piramal Finance.
08-11-2023
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Personal Loan

How to Plan Efficient Personal Loan Repayment with EMI Calculator?

If you need a loan for a personal purpose such as education, marriage, or starting a business, you can get one from a bank. Depending on your income and repaying ability, different banks offer different loan products to meet your borrowing needs. Ever wished you had a complete picture of your cash flow when it comes to repayment of loans? Not just when they are due but also how much EMI will be, and the time it will take to pay them back. Luckily for you, there is a personal loan repayment calculator that will help you plan your repayment accordingly. This article lists some useful tips to help you manage your personal loan repayment in the easiest way possible, so read on! [B-01] What is a Personal Loan Repayment Calculator? A personal loan repayment calculator also called an EMI calculator, is a tool that allows you to see exactly how much you will end up paying in EMIs over time. They show the total cost of your loan, the period it will take you to pay it off, and the amount you will be paying monthly. The personal repayment calculator is useful for a few scenarios, especially when you are trying to decide if you can afford a certain loan. For example, if you have applied for a loan to buy a car, an EMI calculator can help you figure out how much you can comfortably repay over time. You can also use it to estimate how much interest you will be paying if you have a loan for longer. The same applies if you are looking to go for a shorter loan for a specific purpose. How Does an EMI Calculator Work? With a personal loan repayment calculator, you enter the loan amount, the yearly interest rate, the period required to repay the loan (the repayment period), and the monthly repayment amount. You would typically have to enter these three things manually when using a calculator to plan your loan repayments. Once you’re done entering these details, the personal repayment calculator will work out the calculations within seconds. The repayment amount, the length of time it will take you to repay the loan, and the monthly repayment amount will then be displayed. Benefits of Using a Personal Loan Repayment Calculator The following are the benefits of using a personal loan repayment calculator: 1) You have a complete picture of how your loan will affect your cash flow. You will get a fair idea of how much you will pay as EMI during repayment. Based on this, you can make a call on the loan amount. If the EMI for a particular amount is too high for you to manage, you can go for a longer repayment period or lower your loan amount. 2) You can get a feel for the repayment period of your loan. When you enter the loan details you are applying for, including the amount and interest rate, it will show the repayment period. It will help you with the planning of your EMIs. 3) Depending on the interest rate of the loan and the repayment period, the amount you will be paying in total will vary. You can use an EMI calculator to get an approximate idea of the amount you will pay in interest at different rates. Rates vary from lender to lender. 4) Using a personal loan repayment calculator is much easier than manual calculations. Because the calculation is automated, there is little to no room for error. Moreover, as the personal repayment calculator gives you results immediately, you save time. Manual calculations, on the other hand, take longer. Tips for Managing EMIs To efficiently manage EMIs, follow these tips: 1) Choose a practical repayment plan: Your repayment plan should be in tune with your cash flow. It can be tricky if you have a large loan with a short repayment period. In such cases, you will have to make a high monthly repayment through EMIs. And if you don’t have enough money in your monthly salary to pay the amount, you may find yourself in a very difficult situation. A better option would be a repayment option with a lower monthly repayment amount. You can do this by insisting on having a longer repayment period. 2) Automate EMIs: Automating the payment of EMIs from your bank account will ensure that you do not have to worry about it every month. It is one of the best ways to manage EMIs and avoid late payments. By doing this, you will create a good impression with your bank, improve your credit score, and get better future terms and conditions on your loans. 3) Keep track of your debt: Many banks offer free debt consolidation services that allow you to combine all your debt, such as credit cards, personal loans, and mortgages, into one single loan. This way, you can make one single payment per month, which will help you avoid late payments. Even manual debt tracking can give you an idea of your financial condition. You can then recalibrate your payments based on it. How to Automate EMI payments? Automating your monthly payments is one of the best ways to manage them. It can be done in two ways. The first and easiest way is to use the facility offered by your bank or lender. Most lenders offer automated EMI options today. You can also use third-party loan payment software. However, you will have to ensure that you use the safe ones. You can set up recurring payments, send reminders to make payments, etc. Some even offer loan consolidation services that help you combine all your debt into one single loan, as discussed earlier. The loan payment software can also help you understand your cash flow and see where your money is going. You can see how much you spend on loans, credit card payments, insurance premiums, etc. Once you automate EMIs with your bank, you don’t have to make repayments every month manually. EMIs will be deducted automatically every month. [B-02] Final Words Depending on your income and repaying ability, different banks offer different loan products to meet your borrowing needs. Ideally, your loan repayment should be made on time and in full. Unlike other types of loans, personal loans have shorter repayment times and higher interest rates. Borrowers often find themselves in a difficult position if they don’t work out the repayment plan beforehand with an eye on their cash flow. You can plan your loan repayments with the scientific and easy-to-use personal loan repayment calculator developed by Piramal Finance. It will help you manage your loan repayments in the easiest way possible.
08-11-2023
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