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Home Loan

Complete Guide on How to Take a Loan against Fixed Deposit to Buy a New Home

Thinking of buying a new home? It is more challenging than it seems, as there are so many things you need to take care of. You can’t buy a house easily as there are a lot of procedures that take place. A home loan is common among people who wish to buy a home. Hence, if you are considering getting a loan, you might get a loan against a fixed deposit. [B-01] When it comes to FD, provides you with many benefits. You can apply for a loan by leveraging your fixed deposit, making it one of FD’s best features. When you plan to get any loan, a lot of paperwork is included. Minimum paperwork is required with a loan against a fixed deposit. The interest rate provided by the bank on a loan against FD is generally lower than that on a traditional loan. Moreover, you are not even required to pay the prepayment penalty. You can easily get a home loan against a fixed deposit online. You need to have access to a net banking account. Now have a look at what a fixed deposit is. What Is a Fixed Deposit? A fixed deposit (FD) is an investment feature that banks provide to their customers to build their savings up to a period and, in return, provides them with assured returns. Here is an example for you. Suppose you want to make an FD and deposit 10,000 rupees in your bank account for four years. Now, after four years, when your FD gets matured, you’ll get the whole 10,000 rupees back along with interest. You can also decide whether to get the interest money alongside the maturity of the FD or in instalments. This is how easier it is. You can very easily get a fixed deposit. Generally, you can get an FD for a minimum of 7-14 days and up to ten years maximum. Moreover, it doesn’t matter what changes happened due to any market fluctuations; you’ll get the same amount of interest upon which you created the FD, be it 14 days before or ten years. Eligibility of Getting a Loan against FD Getting a loan against FD might seem easier, but a few criteria must be followed. Below are the criteria you must check before applying for a loan against a fixed deposit. You must have a fixed deposit account You can not get a loan against fix deposit in the name of a minor Fixed deposit accounts need to be more significant than the loan amount The payback term of a loan and be higher than the tenure of a fixed deposit You can not apply for a loan against a fixed deposit if you have a five-year tax-saving FD. Procedure to Get a Loan against FD You can use the FD to get loans. Hence, it is not necessary to prematurely break the FDs. Bank holders can get the loan by logging in to their online banking accounts. However, you can obtain it through offline mode if your bank service doesn’t provide the facility of online banking. You must submit an application form, a few required documents and the FD receipt to begin the process. Benefits of Loan against FD Following are the benefits you can avail of while getting a loan against a fixed deposit. You need not pay any processing fee during the loan processing. You can get a loan against both domestic as well as NRI FDs. You get a lower interest rate against an FD. You do not need to break the premature FD while you proceed to avail of the loan to save the penalty on a premature withdrawal. You get a seamless and easy process of availing of the loan. Features of Loan against FD Following mentioned are the features of getting a loan against FD: Lesser Documentation Since the bank already has the documents you submitted while opening the FD, you need not submit those again. Hence the paperwork becomes easier as the documents such as ITRs, income proofs and tax returns are there with the bank already. Loan Amount In the case of a normal loan, the loan amount provided depends on several factors such as duration, repayment schedule, income, credit score and many others. In a loan against FD, the maximum amount depends upon the amount of money in your FD. Hence, the larger the amount of money in your FD, the larger the loan you will get. Low Rate of Interest The interest rate on the FDs is lower than the normal loan as they are used as collateral for a loan. The interest rate on a loan against a fixed deposit varies from 2%-2.5%, which is lower than the interest rate on a personal loan. Therefore, the EMIs of these loans are lower. Prepayment On the one hand, if you have a normal loan and pay it off earlier than the tenure, then the bank will charge a penalty as the bank service loses its money that was to be paid in the form of interest. On the other hand, when you proceed to get a loan against FD, there is no penalty as there is no loss to the bank in terms of money. Credit Score The banks generally verify your credit score before loaning you. But when you proceed to get a loan against a fixed deposit, the bank does not ask for any credit score verification. Hence, getting a loan against FD is easier for many people as they do not have any facilities like personal loans, credit cards etc. [B-02] Conclusion So now, if you plan to get a loan for your new home, consider getting a loan against FD. You can get a loan against a fixed deposit if you already have an FD account. Moreover, you get a lot more benefits and features with it. It’s never too late, don’t wait anymore. Get a loan against FD and avail of exciting offers from your bank service.

08-11-2023

Home Loan

Top Benefits Of Using Home Loan Emi Calculator For Your Home Loan Application

A home loan makes your dream of owning your own home more achievable. Thanks to digitisation, applying for a loan is not a hassle anymore. You can apply online and fund your dreams with minimal effort. One of the prerequisites that can make loan approvals straightforward is the credit score. Typically, a credit score of 750 is crucial. Besides the credit score, another vital consideration is the EMI burden. Different banks charge different interest rates on home loans. The lower the rate, the lesser the loan repayment burden. [B-01] However, the interest rate is not the only factor impacting EMIs. Things like your age, loan term, and income also play a crucial role. So, how do you calculate EMIs and understand your loan burden clearly? A housing loan EMI calculator can come to the rescue, helping you better plan your finances. This article will take you through a home loan EMI calculator and decode various related aspects. So, read on! What is a home loan EMI calculator? The online platforms/websites of many financial institutions allow users to calculate EMIs based on the loan amount, tenure, and interest rates. This calculation is necessary as it helps you build a financial roadmap for the future. Before we dive in, let us look at the components of EMI. EMI = Principal Amount + Interest. Here’s the formula for calculating Home Loan EMIs: P x R x (1+R)^N / [(1+R)^N-1] Here, P = Principal loan amount N = Loan tenure in months R = Monthly interest rate, i.e., Annual Interest Rate/12/100 Suppose you are applying for a home loan of Rs 20,00,000 for a tenure of 240 months (20 years), and the annual interest rate is 8.4%. Now, the annual interest rate is 8.4%. R = 8.4/12/100 = 0.007 Then, here’s how you calculate your EMI: 20,00,000 x 0.007 x (1 + 0.007)240/[(1 + 0.007)240-1] = Rs 17,230. Now, if mathematics is not your stronghold, the above calculation may perplex you. Hence, in comes the home EMI calculator. Let’s explore its benefits in detail. Benefits of Using a Home Loan EMI Calculator Your dream home can become a reality when you use the best tools to calculate, plan, and manage your cashflows. Let us now explore how a home loan EMI calculator can simplify our lives: Calculate EMIs Most lenders provide a home loan EMI calculator to allow you to figure out how much you will pay in monthly instalments. Not only that but the calculator can also be accessed via smartphone. Avoid complex calculations. Calculating EMI manually may not be everyone’s cup of tea. Most people hit a bump or get inaccurate results if they try manually. Hence, use a dedicated tool to compute the monthly repayment based on your desired loan amount, tenure, and interest rate. Why waste your precious time when you can get results within seconds by entering the values? Get a complete repayment structure. Based on your entries, the housing loan EMI calculator will provide a complete breakdown of your loan repayment plan. You will get an amortisation table for the complete loan tenure, offering insights into the EMIs. Besides this, the table will lay out the principal and interest components that make up the EMIs. Hence, you can leverage interest savings and extract maximum value from repayments. Plan Better You may meet the eligibility requirements for a home loan, but the EMIs should not put a strain on your finances. With a home loan EMI calculator, you can figure out and plan your future by setting aside recurring cashflows in advance. In this way, you can manage your expenditure more efficiently. Check & Compare When out looking for home loans, everyone wants to come home with the best deal. An online home loan EMI calculator could prove immensely beneficial here. You can use the calculator to understand which interest rate works best for you. Make the decision. Based on the home EMI calculator results, you can decide if you want to go for a short or extended tenure. Note that the shorter duration will have high EMIs, but the overall interest rate will be lower. If you believe your cash flow will not allow you to pay higher instalments, you can choose a longer term. However, in this case, the overall interest rate will increase. [B-02] Final Thoughts Owning a house is a milestone in people’s lives. Most people save money to invest in property and/or build a home. Housing loans have become indispensable, powering hundreds of millions of households around the world. However, before applying for a loan, you must understand your expenses and plan accordingly. The home loan EMI calculator is an excellent tool in this regard. It will estimate the monthly instalments and provide an end-to-end repayment chart. Do you want to calculate your EMIs directly? Visit Piramal and try the free home loan EMI calculator today!

08-11-2023

Business Loan

How to Run a Successful Supermarket with Business Loan?

Supermarkets have multiplied exponentially in almost every city in India. The reason for their rapid increase is the availability of goods along with the quality of service. They give you the best shopping experience with diverse options and discounted prices. So, from a customer’s perspective, a supermarket is the ideal place for buying different products. However, from a business perspective, starting and running a supermarket can be tough and confusing without business funding. Especially if there is a shortage of funds, scaling the business becomes difficult. [B-01] It is nearly impossible to manage everything with your savings.So opting for a business loan can make it easier for you. A business loan can provide you with a higher loan amount. You can use that money to invest in infrastructure, technology, equipment, hiring employees, etc. It can provide you with the financial leverage that you need to grow your business. This article will help you skim through the various aspects of starting a supermarket with a business loan. This article is all about business loans, their features, eligibility, and benefits, and using them to run a supermarket. What is a business loan, and what purpose does it serve? A business loan, as the name suggests, is the financial assistance you get from a lender to grow your business. The lender provides you with a desirable loan amount with the promise to return the money at a given rate of interest. The lender will give you a set period within which you are bound to repay the loan amount in the form of instalments. Many lending institutions provide unsecured business loans to borrowers. This means you don’t have to pledge your assets to get the loan amount disbursed. Many banks provide term and Flexi loans to customers to meet their commercial needs. All types of sole owners, self-employed individuals, shopkeepers, private companies, etc. can ask for a business loan in India. What are the features and benefits of going for a business loan in India? Whether it is a small business loan or one taken by a big firm, there are certain benefits to opting for it. Compelling interest rates: Most lending institutions provide reasonable interest rates to customers on business loans. The sole reason for this is the cutthroat competition among different companies to get customers’ attention. The rate of interest on most business loans in India ranges between 10% and 25% per annum. Flexible loan options: Another striking advantage of applying for a business loan is the availability of flexible loan options. Different options give you the advantage of choosing the one that best suits your requirements. Out of the various loan options available to businesses, some of them are: Term Loans Start-up Loans Machinery loans, etc. Diverse usage: Another benefit is that you have the liberty to use the business loan amount the way you want. Unlike many equity investors, you are not answerable to the banks and NBFCs regarding the usage of the money. Quick disbursement: Banks and NBFCs require minimal documentation and prefer quick disbursements to avoid unnecessary paperwork and delays. This helps you get started as soon as you apply for the loan amount. Tax benefits: In addition to the many benefits of a business loan, there are several tax benefits that you can avail of as per the guidelines of the Income Tax Act of 1961. How to use a business loan to start and run a supermarket? There are various methods through which you can use a business loan to start and effectively run a supermarket. Finding the right location: Location plays a key role in deciding the success rate of any business. Having a location in an area that has access to the majority of the target customers is important. Due to the increasing prices of land and properties, finding a good location at night will be tough. So, a business loan can give you financial aid to find the right location. Investing in inventory: After deciding on the location, you have to focus on your inventory. Your inventory must be filled with all the goods that you are about to sell to your customers. Filling up an inventory requires huge finances, and a business loan can help you with that. Funding, License, and Registration: Before selling your products, you need to have proper registration and several licenses. And to fund that, you need a loan amount that includes various formalities and fees. Financing technology: As you are going to run a store, you need items like computers, billing machines, etc. And a business loan will provide you with the financing for that Marketing and advertising: Besides investing in the inventory, license, equipment, and infrastructure, you also need finance for marketing and advertising your store. A business loan will provide the money to market and advertise special discounts, offers, etc. [B-02] Summing it up A business loan has several benefits, including low rates of interest, flexibility in usage, better loan options, and other tax benefits. So you should also know about the requirements that are required to apply for it. To run a supermarket, you need a constant flow of cash and regular investments to grow and flourish. Business loans can help you gain better profits from your business without causing much financial distress. Want to know more about business loans? Visit Piramal Finance. Not only about loans, but it also has highly engaging content on different investment schemes, government subsidies, financing tips, etc.

08-11-2023

Business Loan

Top Advantages Of Using Business Loan Emi Calculator In 2023

Entrepreneurship has become the prime focus in the 21st century and is rising at a higher pace. With a creative business idea and the right strategy, one can easily make it through and establish a successful business. However, what entrepreneurs find most difficult in the journey is the financing they need to grow their venture. No doubt, there are ample financing options available, but business loans are the best options available in the market. You can check the business loan interest rate and opt for them right away. Business loans can help you grow your business venture and cover your financial requirements. You can use the loan amount to buy raw materials, invest in equipment, and even hire employees for your business. However, after taking a loan, there comes the real test, the EMI. You have to pay your instalments periodically. To manage it effectively, you might need a business loan EMI calculator. It will help you calculate your EMI using the business loan interest rate, loan amount and tenure and will also keep you updated about your loan. But before discussing more business loan EMI calculators, let’s take a quick look at what are business loans and how they can be significant for your business. [B-01] What is a business loan? A business loan is a financing facility extended by lending institutions to finance your business and cover your needs. You can use the loan to meet all your business-related requirements like purchasing raw materials, equipment, funding inventory, etc. As you have borrowed the amount from the lender, the lender charges you interest at a pre-determined business loan interest rate on the principal amount. You have to repay your loan during the loan tenure in the form of an EMI. Business loans come with plenty of benefits that make them popular among borrowers. Business loans come with a nominal business loan interest rate so that you won’t strain your financial muscle while repaying the loan. With that, you also have the option to go for a high loan amount. The loan amount can be as high as INR 50 lakhs or even INR 2 crores in some cases. Now that you have known what a business loan is, you must understand how to calculate the EMI using a business loan EMI calculator. What is a business loan EMI calculator? A business loan EMI calculator is an online tool that helps you to calculate your monthly instalments. You have to provide the basic details regarding your loan like your loan amount, business loan interest rate, and your loan tenure. The business loan EMI calculator can help you calculate the EMI amount within a second. You can change the numbers to determine the EMI amount that suits you. In modern times where you have to be regularly updated with business details, you should use advanced tools for easy calculation. Gone are the days when businesses used a complex mathematical formula to calculate the EMI amount. So to avoid complexity, a business loan EMI calculator is already programmed with the desired formula and gives you the accurate result. Benefits of using a business loan EMI calculator There are several benefits of using a business loan EMI calculator for borrowers. Some of these benefits include: Easy to use: Online business loan EMI calculators are easy to use and are specially designed for the user’s convenience. All you have to do is enter your loan details like the loan amount, the business loan interest rate provided to you by your bank, and the tenure of repayment. Being a user-friendly device, it saves you from all types of complexity while calculating. Saves time: Compared to a mathematical formula, you can save a lot of time by using a business loan EMI calculator. Even a regular calculator can’t beat the speed of a business loan EMI calculator. Planning your finance: Planning your business finance is the most important point to consider while availing of a business loan. For that, you need to perform a set of calculations and keep yourself updated on the entire debt situation. You can try different permutations and combinations for the loan amount, rate and tenure before availing of the loan. This will help you know your EMI for different options. Accuracy: The results provided to you by the business loan EMI calculator are cent per cent accurate. The results obtained are precise and error-free as it is produced by artificial intelligence. Comparing different options: Besides helping you in calculating the business loan EMI amount for the loan you have applied for, the calculator also helps you to compare different loan options available to you. How to use a business loan EMI calculator? Using a business loan EMI calculator is a cakewalk and even if you don’t get it the first time, here are the steps you should follow to use the same. In the first bar, enter the loan amount which you have taken or are willing to take from the lender. In the second bar of the business loan EMI calculator, you have to enter the interest rate charged by your lender. In the third bar, enter the period of repayment of the loan you have taken. This can either be entered in months or years. Now, you have to click on “calculate” and within a second, the business loan EMI amount will flash on your screen. Further, it will also show you the total interest that you will pay over the tenure of the loan. Some business loan EMI calculators have a slider option, where you can slide the cursor and fix the EMI amount as per the requirement. [B-02] The Bottom Line: Though a business loan can give you the financial leverage you need, you also need to keep an eye on your repayment schedule. For better management of the EMIs, you should prefer to use a business loan EMI calculator. This online handy device helps you calculate your instalment amount and gives you the result within a second. Besides using it for calculating your EMIs for the loan you have already applied for, you can also use it to compare different loan options available to you and choose the best from them. If you want to know more about business loan EMI calculators or use the same, you can prefer to visit Piramal Finance. Further, if you want to grasp more such insightful information, visit Insights on the Piramal Finance website now!

08-11-2023

Personal Loan

How To Use Personal Loan Amount To Purchase Jewellery In Festive Season

Purchasing gold jewellery for use as ornaments, loan collateral, or long-term investments is common in India. In fact, buying jewellery is a tradition during weddings or festivals like Dhanteras and Diwali. If you, too, are interested in buying jewellery this festive season, you may be considering a festive loan to get the required amount. However, buying jewellery with borrowed money is not always financially viable. Moreover, lending institutions do not offer personal loans specifically for buying jewellery. And you must understand the genuine process before proceeding. So, this blog will help you weigh the pros and cons and cover the correct process of buying jewellery with personal loans. This will help you make an informed decision. Let’s begin! [B-01] What is a personal loan for jewellery in India? A festive loan for jewellery is not directly available in India. The RBI prohibits banks from giving personal loans specifically for buying jewellery. However, most lending institutions offer personal loans for all personal purposes, including purchasing jewellery. Since you deal with the lending bank or NBFC, you are free to legally use the amount of a personal loan for jewellery purchases unless that lender disallows it. So, you can indirectly get a personal loan from most lenders for jewellery purchases in India. Should you buy jewellery with borrowed money? The sales of gold have increased in India after a dip due to COVID-19. However, buying gold using a borrowed amount is not always wise. So, here are the pros and cons of using a personal festive loan for jewellery purchases. Advantages You have high flexibility of purpose with a personal loan. You can often get personal loans for any purpose. This includes jewellery purchases from a lender without specifying a reason to the lender. So, you can quickly get funds for education, travel, marriage, jewellery, or buying gold. No need for collateral. Loans for personal use are provided without the need for collateral. This makes personal loans an attractive option to fund jewellery purchases. Minimal documentation is required. Lenders require only a few documents for personal loans for any purpose. These include your photo ID proof, income proof, address proof, and a copy of your salary slips. There are flexible repayment options. Personal loans are flexible and allow you to choose your repayment tenure or structure. This allows you to pay back even large amounts required in jewellery purchases easily. Gold jewellery is likely to get good returns in the long run. High-quality, hallmarked gold jewellery or coins will likely bring large profits when sold strategically. This makes it a wise investment for the long run that is worth an affordable loan. Disadvantages Gold jewellery is not a stable investment in the short run. The price of gold can fluctuate significantly in the short run, and you should not consider it a reliable short-term investment. It may not bring you enough returns on sale to meet the debt it causes if you lose income unexpectedly. Jewellery is a large investment and involves large debt. You may need a large personal loan for jewellery as gold jewellery is costly. And personal loans usually have high-interest rates. This can make a jewellery purchase with loans financially unviable. Strategic buying with expert advice can resolve this issue. It is tough to get large personal loans if your credit score is low. Getting large personal loans for jewellery or other purposes is difficult unless you have a good credit history. You may need to clear other debts, improve your stable income, and build a good record using a credit card first. How to use a personal loan in India to buy jewellery? We have seen that purchasing gold with personal loans is beneficial under the right conditions. If you are ready to begin, here is the process of getting a personal loan in India- Step 1: Determine your requirement Find out the details of the personal festive loans available and compare them with the price of your desired jewellery and existing funds. This will help you judge the financial viability of a particular loan amount. Using EMI calculators, you should check the lock-in period, interest rates, and monthly instalments. Step 2: Check loan eligibility You must also check whether you are eligible for the desired amount by using an online Eligibility Calculator. You may also take measures to improve your credit score, making you eligible for higher amounts. You may need to revise your desired jewellery amount based on your eligibility and ability to pay the instalments. Step 3: Approach the bank You can apply for a personal loan via NetBanking, the website, or by visiting a branch. You will have to fill in the required details and submit the form. Step 4: Submit documents Next, you should find the required documents and submit them as requested. You will usually need copies of your income, address, and ID proof. The lender sanctions the loan after processing. And you can then use it for various purposes, including buying your favourite jewellery! Remember to buy from a reputed jeweller with a Bureau of Indian Standards license and check for the hallmark to ensure the gold is authentic. Moreover, you must always pay the loan instalments timely to avoid a damaged credit score. [B-02] Summing up Using the amounts of festive loans for jewellery purchases can help you buy and use jewellery as a profitable long-term investment. But wrong decisions made without proper guidance can land you in financial trouble. Hence, you must consult legal experts and trusted financial agencies like Piramal Finance to get the correct guidance and favourable loans. These measures will help you buy high-quality jewellery strategically for maximum returns.

08-11-2023

Calculator

Know How Motor Insurance Premiums are Calculated in India

Want to calculate motor insurance premiums? Want to know about motor insurance? Many questions come up when we consider motor insurance. One of those is how to calculate motor insurance. Another question is: what benefits will I get from getting insurance? And also, what factors need to be considered when applying for a motor insurance calculator? How to calculate Motor insurance calculator cost is a common question. The policy documents contain several unique instances, exclusions, and terms and conditions. [B-01] Most people agree with the insurer’s premium. But they don’t know how it was set. The premium that motor insurance calculator policyholders must pay is influenced by several factors, including: ● Personal accident. ● Own damage cover. ● Third-party cover. ● Riders. Personal accident cover In the event of an accident or other incapacity-causing event, the policyholder is protected by the personal accident coverage portion of the premium. Disabling injuries is a common result of car accidents. So taking disability insurance is a must-have. Motor insurance calculator is consequently even more important to have as protection in accidents. It is important to realise that as the level of coverage increases, so does the cost. Own Damage Cover Own damage insurance coverage is a good choice for policyholders. A motor insurance calculator policy may not always cover damage to the car caused by earthquakes, hurricanes, fires, or accidents. It’s better to have investments with higher declared motor insurance calculator values. They help raise premium costs. The IDV, on the other hand, goes down as the car gets older. The policyholders should be aware of this. Third-Party Cover In India, a third-party auto and motor insurance calculator is required. It protects the insurer from legal liability. This coverage doesn’t cover repairs, though. So, when choosing a policy, people should make sure it covers damage to their cars. The Insurance Regulatory Authority of India also decides how much the insurance policyholder has to pay based on the size of the vehicle. Other Riders Riders and add-on plans are other types of investments that policyholders should make. The main benefit of riders is that they help protect the interests of the policyholder without costing a lot of money. Roadside assistance is a popular rider that many policyholders choose. This is especially helpful when the policyholder is travelling to a new place. The no-claim bonus is another popular rider. It gives policyholders a big discount on their premiums if they don’t make any claims during the policy year. What does a motor insurance calculator do? Calculating the motor insurance calculator premium that must be paid is a problem that many people with insurance policies encounter. However, a motor insurance calculator can be used online to make this task easier. The following factors must be taken into account to determine the online auto insurance premium with a calculator: ● IDV ● Cubic capacity ● Age of the motor vehicle ● IDV IDV, or the insured declared value of the car, is merely an estimation provided by the motor insurance calculator provider when you purchase automobile insurance in India. This is the highest claim amount that a policyholder may submit in the case of theft or an accident. Taking depreciation into account, IDV rates fluctuate over time. Significantly, comprehensive motor insurance calculator policies are the only ones that incorporate IDV. ● Cubic Capacity The measurement of a vehicle’s engine size is called its cubic capacity, or cc. It is constant. So unlike IDV, engine size has no impact on how much a vehicle’s insurance premium will cost. It should be noted, nonetheless, that automobiles with larger engines come with a higher cost. Under the Indian Motor Tariff Act, the tariff rates are determined and governed. ● Age of the motor vehicle When an online motor insurance calculator figures out your premium, one of the things it looks at is how old your car is. As the car gets older, the rate of depreciation will go up. Benefits of determining car insurance premiums Before applying for a car loan, it can be helpful to have a rough idea of the car insurance calculator premium that will be charged on that loan. These things are: ● If customers know how much of a premium they will have to pay, they can plan their finances. Doing so and paying back the loan won’t put them in a difficult financial situation. ● Customers can choose the best loan option by comparing different loan options. ● It will be much easier to plan in general. What Determines the Cost of Auto Insurance? The amount of the premium that customers must pay is determined by a variety of variables. These consist of: ● IDV stands for Insured Declared Value. It is also known as the most a customer can get for the car. ● Age and type of car: According to the motor insurance calculator, the premium goes up with the age of the car. ● Cars are assets, and over time, assets lose their value. ● The value of expensive cars with unique upgrades will also go up. Size of a car’s engine, or several cubic inches: The premium goes up as the engine size, or several cubic inches, goes up. ● Where in the world the car is bought will also affect the price of the premium. ● Extra equipment on the car that wasn’t there when it was bought will also make the premiums go up. ● Discounts for not making a claim and bonuses for not having your car stolen can also lower your premium. [B-02] Summing-up: The point of the article is to explain how to figure out how much your motor insurance costs will be. In the world we live in today, buying a car is both a necessity and a luxury. Due to the high cost of the purchase, clients will still need to insure their vehicles for safety. This is also to avoid more trouble if the vehicle gets damaged. Customers can lower the amount of their premium payment by making sure their IDV is correct and by buying a car that meets their needs. Find out what your options are before deciding on a motor insurance calculator plan. Also visit Piramal Finance for more in-depth, educational articles.

08-11-2023

Home Loan

RBI Guidelines for Home Loan Balance Transfer

Paying higher interest rates on your home loans can be tough. Besides being charged higher interest rates by the lender, sometimes the terms and conditions do not suit the interests of the borrower. In that case, borrowers opt to transfer their balance from their current lender to a new one. The new lender might be charging a low rate of interest. Or you might be getting a longer tenure, or maybe the terms and conditions are better. The term used for switching lenders in search of better opportunities is called a home loan balance transfer. A home loan balance transfer is a way to maximise your loan affordability and get better service terms. The Reserve Bank of India regulates this facility by issuing necessary guidelines from time to time to deliver more benefits to the borrowers. What is a Home Loan Balance Transfer, and Why is it Done? A home loan balance transfer is a process through which you can change your current lender. If you are unsatisfied with the current terms and conditions or the interest rate, you can search for a new lender. It will give you access to better terms and conditions and a lower rate of interest. You can close the loan account of the previous lender after paying the due installment and any penalties. From the next month, you can start repaying your interest to the new lender following your home loan balance transfer. What are the RBI's Home Loan Balance Transfer Guidelines? The RBI issued several policies to help borrowers finance their high home loan balance transfer interest rates with more affordable options. If the borrower defaults on the current loan, he or she may pay without penalty because of the fluctuating interest rates. Banks’ fees to switch your balance are about 1–3%. Who is Eligible for a Home Loan Balance Transfer? People paying a higher rate of interest towards a bank loan that offers a lower rate can opt for this. The new lender will pay off the unpaid loan by giving the remainder to the old lender. It is vital to compare the interest rates when going for this. Important points to know To create a uniform code of loan processing, the RBI has established specific rules for loans against property and home loan balance transfer that all financial institutions should observe. For instance, the most up-to-date RBI guidelines state that pre-payment or partial repayment of LAP loans purchased with variable interest rates for non-business purposes incur no costs. What are the documents required for a home loan balance transfer? According to the RBI, the following is a list of documents that you must submit for a home loan balance transfer: Aadhar Card, Latest Electricity/Gas Bill, and Ration Card. Property Tax/Water Bill, Co-Applicant Guarantor-KYC Documents, Employee Cards, Voter IDs, Driver’s Licenses, and Passports. Salaried Individuals’ Six Months’ Worth of Proof of Income The last three months of bank statements showing salary deposited. Your last two years' W-2s and Form 16s. Information Technology tax filings for the last two years and statements from the principal bank account. CA-audited financials covering the most recent six months are all required of self-employed individuals. What are the benefits of a home loan balance transfer? Here are some of the benefits of a home loan balance transfer: Low rate of interest: The primary reason for transferring your balance to a new lender is the lower interest rate you will be charged. The interest rate will be much lower than what your previous lender used to charge. Extended tenure of repayment: The repayment tenure significantly increases in a home loan balance transfer, giving you ample time to plan your finances and repay the loan with utmost convenience. The tenure can be as long as 20 years, which can even be extended to 30 years in most cases. Better terms and conditions: The new lender might offer better terms and conditions, including zero to minimal processing fees, no extra charges, lesser penalties, etc. High flexibility: Besides that, the new lender might provide enough flexibility to make loan-related decisions and tailor your home loan credentials. For example, the option to choose between monthly installments and quarterly investments. No foreclosure charges: Banks don’t charge you any pre-payment fees or foreclosure fees in case of a home loan balance transfer. Under the new RBI guidelines, if you foreclose the account before its term, you won’t be charged any extra fees for the pre-payment. However, earlier, prepayment fees from lenders averaged about 2–5% of the loan balance. [B-02] Conclusion: When the current lender doesn’t meet your conditions, charges you a higher rate of interest, and doesn’t allow you enough flexibility, it is time for you to look for a home loan balance transfer. To protect yourself from being taken advantage of by your lender, it is in your best interest to become well-versed in all of the rules and regulations related to a home loan balance transfer issued by the Reserve Bank of India.

08-11-2023

Personal Loan

How to avail low interest rate on personal loan in Gujrat

Gujarat is one of India’s most developed and developing states. What comes to your mind when you hear its name? Apart from Modiji, of course. Business? You are right. However, Gujarat is not only about business. Apart from cities, and far from them, it has forests, deserts and beaches. Home to various communities, you would see festivals all around the year. It has an incredible historical heritage. It has all that you can take a personal loan for. Moreover, surprisingly, Piramal offers you these at interest rates as low as 10.5%. Therefore, you don’t have to worry about losing much from your working capital while repaying for home renovation. You can still carry out your business smoothly. This article makes you aware of the scope of personal loans in Gujarat and the ways to avail of them at low interest rates. [B-01] What is a personal loan? In contrast to loans where security is required, personal loans are offered to borrowers based on their creditworthiness. Applying for a personal loan just requires a minimal amount of paperwork. A personal loan does, however, have higher interest rates than other types of loans. Personal loan interest rates are predicted to vary from 8% to 30% annually. Types of personal loans You can expect huge benefits from taking a personal loan in Gujarat if you have recently shifted to cities like Rajkot, Surat, Vadodara, Jamnagar, Morbi, etc. But, before taking any loan, you must know if it suits your requirements/needs. A. Home Renovation Loan Cities like Rajkot are even costlier than Ahmedabad when it comes to buying or renting a home. If you have already taken a housing loan here, the renovation might be heavy on your pocket. You must consider taking a home renovation loan from Piramal at 10.5% B. Travel Loan A vacation home or resort near Gir Forest or a beach in Dwarka can be costly. But why compromise on a holiday if you can take a cheap personal loan for travel? Piramal Finance provides insurance along with the loan. C. Medical Loan Gujarat has all the hospital chains like Wockhardt, Apollo, Sterling, etc. The soaring prices of beds and medicines is scary. If you do not have health insurance and emergency funds, which everyone should have, you can take a personal loan to fulfil your medical requirements. D. Wedding Loan Destination wedding sites are seeing a spurt in Gujarat, especially in Junagarh. You might have dreamt of a wedding where the pre-wedding shoot takes place near waterfalls and the reception at a resort. But why limit the number of guests if you are eligible for a personal loan? E. Festival Loan Whether it is Eid-ul-Adha or Bestu Baras, you can’t stop yourself from participating in a festival in Gujarat. Festivals like Diwali can be expensive if you want to celebrate full-fledged. If you cannot afford these expenses, a Festival Loan can help you celebrate while delaying your expenses. Piramal provides personal loans at a minimum 10.5% interest rate. Features of a Personal Loan Piramal provides personal loans with zero pre-payment and foreclosure charges. A loan of more than Rs1 lakh and less than Rs10 lakhs falls under a ‘Personal Loan’. Minimal documentation is required. Sanction doesn’t take much time, and disbursals are instant. Monthly EMIs are not more than your monthly budget. A flexible repayment tenure from 12 to 60 months is allowed. Piramal Finance helps improve your loan eligibility by allowing the clubbing of incomes. Are you eligible for a Personal Loan in Gujarat? If you are one of the following, you can get a personal loan in Gujarat for lower interest rates. A. Salaried Employees A person who has a job in a Government Institution, Private Sector, Public Sector, MNCs, Partnership Firm, or, Proprietorship Concerns must have: Age: Between 21 and 60 years Work Experience: More than or equal to 6 months Income: At least Rs 25,000 per month B. Self-Employed Professionals like an architect, a doctor, or CA and non-professionals like Business Owners, Partners, Proprietors, or Promoters/Directors in private and public limited companies can apply for a Personal Loan in Navi Mumbai – Belapur CBD. Their age must be more than 23 and less than 70. How to apply online for a personal loan? Piramal Finance has made it easier for even a layman to get a Personal Loan in Gujarat: Visit the website of Piramal Finance and choose ‘Personal Loan’ from the main menu. Select ‘How to Apply’ from the article marker or scroll down to find the same title. Click the link in the ‘How to Apply’ paragraph and discover a dialogue box. It is a form titled, ‘Quick Apply’. Fill out the compulsory details and enter the Captcha (Are you a robot?). Go through the ‘Website Usage and Privacy Policy’ before checking/ticking. Submit your application and get in touch with a Relationship Manager. [B-02] The Conclusion The lengthy process of applying online for a Personal Loan in Gujarat from Piramal Finance is explained in this blog. It also clarifies the significance of other loans besides personal loans that one may obtain. Piramal also specialises in loans for homes and home-related purchases. The greatest NBFC is one that helps beginners get loans or at least learn about the loans for which they may qualify. One that offers a user-friendly platform to ask for money.

08-11-2023

Personal Loan

A Five-Step Guide to Obtaining a Personal Loan

Whether it’s a wedding, family emergency, travel, or unavailability of funds, obtaining a personal loan is the easiest and quickest way to get money. But steps and processes are still involved in getting your loan. It is recommended that you obtain complete information about the amount, duration, and procedure of the loan so that you don’t face obstacles while obtaining a personal loan that suits your interests best. [B-01] What is a Personal Loan? A personal loan is also known as an instant loan or instant personal loan. It is a loan that you can obtain at a fixed rate of interest from a financial platform or financial institution, such as a bank. This can be obtained to meet personal financial needs such as a wedding, education, or any other emergency. Personal loans are typically referred to as “unsecured loans.” This is because applicants are not required to provide any collateral or security in exchange for the money borrowed. Through EMIs, the borrower agrees to pay a fixed rate of interest over a set period. Benefits of Obtaining a Personal Loan There are many benefits to personal loans. This includes their adaptability, accessibility, and hassle-free application process. A personal loan is a fantastic option to pay for your urgent needs. A personal loan can be used to cover all of these expenses, whether they are related to an unexpected medical issue or a large purchase. Fast Approval In most cases, it can be done in as little as 24 hours! Obtaining a personal loan takes far less time than processing a home loan. A home loan can take 3–4 weeks. They’re best for quick cash or payment demands. You should maintain a solid credit history (a CIBIL score of more than 750+). In this case, lenders will approve your loan application without any hassles. No collateral is needed Uninsured loans, like personal loans, don’t require collateral. Personal loans are easier than mortgages, auto loans, etc. But as a borrower, you should be aware that unsecured loans pose a greater risk to lenders. So interest rates are typically higher to offset this risk. They are typically 1.33% or higher per month. Increases credit rating If you have a history of poor credit or no credit history at all, then there is a fantastic technique for raising your credit score. This is to obtain inexpensive personal loans and make your repayments on time. As you complete all of your EMI payments on time and at the predetermined interest rate, your credit score will go up. Limited documentation and simple availability The fact that there are few documentation requirements for online personal loans is one of their main benefits. Only three documents are needed. All of these can be filed online. A Step-by-Step Guide to Obtaining a Personal Loan Thinking about taking a trip abroad or maybe organizing the ideal wedding? Make use of a personal loan to achieve your goals. A personal loan typically does not demand collateral or security and has flexible repayment periods. The five stages for obtaining a personal loan are listed below. We’ve got all the information you need, including what paperwork is needed and how to apply, to make obtaining a personal loan easy. Step 1: Identify your needs Determine your requirement for obtaining a personal loan and your required loan amount. You might require a loan, for instance, to pay for your wedding or to repair your house. You might only require Rs. one lakh to Rs. ten lakh. Step 2: Verify personal loan eligibility You should ascertain your eligibility after identifying your requirements. To find out how much you can borrow as a personal loan, use the personal loan qualification calculator. Step 3. Calculate the monthly instalments / EMIs For a rough estimate of your monthly loan installments, use an online EMI calculator. You can adjust the interest rate and term on the personal loan EMI calculator to match your income. All personal loans from HDFC Bank have affordable EMIs beginning at approximately Rs. 1878 (approx) per lakh. Step 4: Head to the bank There are several ways to obtain a personal loan from a bank. They are online, through Internet banking, at an ATM, or by going to a branch. Step 5: Submit the required documentation Next, learn what paperwork is needed for a personal loan. You will typically need ID proof, residence proof, and income proof (such as bank statements, pay stubs, or IT returns). Give the bank copies of your personal loan paperwork. Await the transfer of funds to your account. Customers of most banks receive pre-approved loans in 10 seconds, and non-customers receive their money in 4 hours. [B-02] Final Words So those are the five simple steps to obtaining a personal loan. Looking to go in for a personal loan? Piramal Finance is an Indian financial services company. It is venturing into retail lending. This includes personal loans, business loans, housing loans, and other consumer-focused finance products. FAQs What is the procedure for getting an instant loan? If you are approved, the lender will usually respond within minutes and transfer funds into your bank account. However, even if you are authorized, it may take a business day or two, or even longer, to get the funds. What are the criteria for an immediate loan? Instant loans are often not subject to a credit check. You must, however, give personal details, be at least 18 years old with proof of identity, provide evidence of income (e.g., a pay slip), and have a bank account.

08-11-2023