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Personal Loan

What Are the Benefits of Using the Personal Loan EMI Calculator?

Personal loans need no collateral. They are paid quickly. They can be used for various purposes like growing your business or paying for college, vacations, emergencies, and more. Therefore, personal loans have become very popular over the years. When looking for funding, unsecured personal loans are often the best choice for most needs. They are easily accessible. You can use these funds to pay for college tuition, fund home renovations, deal with emergencies, or anything else. To get the most out of it, it’s best to take out a personal loan with terms tailored for you. [B-01] The easiest way to identify such offers is to compare them with our personal loan EMI calculator. Some of the most important factors to consider before taking out a personal loan are the interest rate, repayment capacity, and term of the loan. Manually calculating personal loan EMIs can be inefficient. Worse, they can be inaccurate. Therefore, it is best to use a personal loan EMI calculator. You can use this calculator to see if a personal loan is right for you. What is a personal loan EMI calculator? When you take out a personal loan, you have to pay the principal and interest together. The personal loan EMI calculator is a tool used to calculate the amount paid each month. Always check this amount on the EMI calculator for a personal loan before taking one out. This will give you an idea of how much you will have to pay monthly during your tenure. This helps you see the impact on your expenses and lifestyle due to the personal loan EMI. The personal loan EMI calculator displays the interest rate paid on the main loan amounts for various terms. It uses metrics like desired loan amount, estimated interest rate, and desired loan term. You can enter different interest rates within the specified range limits. This helps you see how much EMI you will pay for each interest rate. For proof of identity, you’ll need a copy of your PAN and driver’s license, Aadhar card, voter card, or passport. You’ll also need the following, as applicable to you. Address salary slips (for hired professionals). Proof of income for the last 3 months (if self-employed). Savings bank account statement (if employed). Bank statements from the last 6 months (if you are self-employed). Personal loan interest rates vary from bank to bank. It is very important to compare the interest rates offered by different banks to find the best bank for you with the lowest interest rates in the personal loan market. 5 benefits of the personal loan EMI calculator Some of the main advantages of this calculator are as follows. You can align the EMI with your monthly budget.Calculating the EMI of a personal loan will give you an idea of how much you will have to pay each month. You can schedule all monthly expenses over the life of the loan to easily fit into your personal loan EMI. You can make decisions by changing the factors that affect EMI.Loan amount, monthly interest rate, and term play a very important role in determining EMI. EMI is directly proportional to the loan amount and interest rate and vice versa. An EMI calculator for a personal loan helps ensure you have a sound credit rating.Calculate your EMI before you take out a personal loan. This will help you to be prepared to manage your loan repayment funds in the time allotted. Never miss an EMI. This helps avoid bad credit. It helps you save time and get accurate results.A personal loan EMI calculator saves you a lot of time by performing all the complex calculations in seconds. Doing the calculations manually can be error-prone. Using the EMI calculator is error-free and gives fairly accurate results. A personal loan EMI calculator is user-friendly and easy to access.It is available online. It is very easy to use. Simply enter the loan principal, interest rate, and loan term to calculate your monthly repayment amount. This makes it easy for users to calculate monthly charges from anywhere at any time. Clearly, a personal loan EMI calculator has many benefits. Some of the most important ones have been discussed above. When you are ready to take out a personal loan, use our calculator to easily get accurate results. And before applying for one, evaluate all the factors. Clarify factors such as repayment capacity and the repayment period. [B-02] Conclusion Personal loans have become more popular in recent years. They don’t need collateral. They can be used for various purposes. They have slightly higher interest rates than other loans such as mortgages, etc. Many borrowers do not require collateral and work well during emergencies and financial constraints. Using the EMI calculator for personal loans is now the top choice for borrowers over offline calculators. Piramal Finance understands that by facilitating personal loans, your life revolves around repayment. Therefore, as with any financial decision, we recommend taking out a personal loan only after evaluating factors such as loan size, repayment capacity, interest rate, and loan term. The personal loan EMI calculator is the only way to ensure accuracy and clarity when applying for a personal loan. Visit Piramal Finance today to know more.

08-11-2023

Personal Loan

Best personal loan emi calculator in 2022

The personal loan EMI calculator is a very helpful online tool. It tells you exactly how much of a loan’s principal and how much interest you must pay each month. A customer only needs to enter the amount of the loan and the interest rate. The tool will figure out how much the EMI will be. [B-01] What Does EMI Stand For? The full form of EMI is Equated Monthly Installment. It is the due monthly sum to the bank or a financial institution until the loan is paid off. It includes the interest on the loan and a part of the principal that needs to be paid back. The loan’s principal and interest amount is divided by the loan’s term or the number of months. This sum must be paid every month. EMI interest is higher in the first few months and decreases with each payment. The interest rate determines how much of each payment goes toward the principal. Even though your EMI payment is constant, the principal and interest will alter. With each payment, you will pay more toward the loan’s principal and less toward the interest. Here’s how to figure out the EMI: E = P.r.[(1+r)n /{(1+r)n – 1}] where, E stands for EMI. P is the amount of the principal loan. r is the rate of interest that is calculated every month (r = Rate of Annual Interest/12/100. If the rate of interest is 10.5% per year, then r = 10.5/12/100 = 0.00875). n is the number of months the loan will last. Example: If you borrow 10,00,000 from a bank at an interest rate of 10.5% per year for 10 years (120 months), then EMI = 10,00,000 0.00875 (1 + 0.00875)120 / ((1 + 0.00875)120 – 1) = 13,493. You will have to pay 13,493 monthly for 120 months to repay the loan. The total amount to be paid is 13,493 times 120, which is 16,19,220. Of this, 6,19,220 is interest on the loan. Using the above EMI method by hand or in MS Excel takes time. It is difficult and can lead to mistakes. Online EMI calculator automatically does this math for you. It gives you the answer in a split second. It shows a visual chart showing the payment schedule. How the total payment is split up is also there. How Does an EMI Calculator Work? The online EMI calculator is simple to use, easy to understand, and quick. It has colourful charts and gives results right away. This calculator can be used to figure out the EMI for a home loan, a car loan, a personal loan, an education loan, or any other fully amortised loan. The EMI calculator needs the following information: The principal amount of the loan you want to take (rupees). Loan term (months or years). Interest rate (percentage). EMI behind or EMI ahead of schedule (for car loans only). You can change the values on the EMI calculator form by moving the slider. You can type them directly into the boxes if you need to put in more specific numbers. If you move the slider or hit “tab” after entering data, the EMI calculator will figure out your monthly payment again. The calculator’s pie chart displays how principal and interest are distributed. It displays how much of the payment went to interest and principal. A table and chart will show how much is paid each month or year over the loan’s duration. Part of each payment goes toward the interest, and the rest pays the principal. During the first part of the loan, a big chunk of each payment goes to interest. As time passes, larger payments pay off more of the loan’s principal. The payment schedule shows how much of each year’s unpaid balance will roll over. Calculating an EMI with a Floating Rate Compare an optimistic (deflationary) and a pessimistic (inflationary) scenario to figure out the EMI for a loan with a floating or variable rate. The loan amount and loan tenure, which are needed to figure out the EMI are both up to you. This means you will decide how much of a loan you need and how long it should last. Banks and HFCs decide the interest rate based on the rates and rules set by the RBI. As a borrower, you should look at two worst-case scenarios for interest rates and figure out your EMI for each. This helps you determine how much you can afford each month, how long your loan will last, and how much to borrow. Positive (deflationary) Scenario Let’s say the interest rate goes down by 1% to 3% from now. Think about this and figure out your EMI. In this case, your EMI will go down, or you can choose to cut the length of the loan. Pessimistic (inflationary) Scenario In the same way, let’s say the interest rate goes up by 1% to 3%. This is a pessimistic (inflationary) scenario. Can you keep making the EMI payments without much trouble? Even a 2% interest rate hike can increase your monthly payment during the loan’s term. [B-02] Conclusion This calculation helps you plan for things that might happen in the future. When you take out a loan, you agree to pay back the money over the next few months, years, or decades. So think about the best and worst things that could happen, and be ready for both. In short, expect the worst but hope for the best! Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Other

Complete Guide For First-Time Home Buyers on this Diwali

Buying a home is a dream for many. It is both a financial and emotional investment. People work extra hard to finally be able to purchase a home of their own. If you have bought real estate before, you know it can be a daunting task. You need to do a great deal of research before investing such a large amount of money. From deciding on the type of property to getting the right home loan, a home buyer needs to go through a lot. And if you are a first-time home buyer, you might not know what areas you need to cover. Knowing all the requirements in advance is the best way to go. That is why we have curated this guide for first-time home buyers to make the process less ambiguous. Let’s take a look at the things you need to check before buying a house. [B-01] Type of Property The first step is to decide what kind of house you want. Villas, apartments, bungalows, penthouses, and many other types of residential properties are available on the market. In bigger cities, apartments, or flats, is one of the most common types of property people invest in. You must decide what type of house you want based on your needs and budget. Depending on the needs of the family, select a size that suits you best. The size is generally defined by terms like built-up area or carpet area. For more transparency, RERA has made it mandatory for builders to disclose the size of the property in the carpet area. Another thing to consider as a home buyer is whether you are going to live in the house or buy it for investment purposes. Budget and Financial Planning Another very important factor for first-time home buyers is budgeting and finances. Depending on the type of property, their prices may vary. What you need to do is assess your finances. Know your monthly income from all sources as well as your expenses. Consider your debts and liabilities. Check your savings, investments, and emergency funds. These points will give you a fair idea of what is affordable to you. Make a realistic budget based on this. As a first-time home buyer, you should also look into various government programmes and tax breaks. You can check the eligibility criteria for the Pradhan Mantri Awas Yojana (PMAY). The government also provides tax concessions under Section 80C. Knowing this beforehand can help you save a significant amount. Another thing to consider while budgeting is the additional costs involved in the home-buying process. These costs may include: Stamp duty and registration charges Maintenance charges Preferential location charges Amenities charges Brokerage Property Search Choosing the best location is important. Location determines the ease of living. There are a few things a home buyer should consider, like Quality healthcare and education near the location. Distance from the place of work, an airport, a railway station, markets, etc. Pollution in the area. The greenery around the area. Another role that location plays is the return on investment of the property. The price of the property may increase depending on the location. Always look for the future scope of development and upcoming infrastructure projects in the area. Other things to look at include government policies and commercial development. The price of the property may vary depending on these factors. Choosing the Right Builder Once you have finalised the location, the next step is to look for a reputed builder. Compare the builders working in the area of your choice. You can also talk to the other residents or customers and gain insight from their experiences. As a home buyer, these points can help you choose the right builder. Past track record Quality and type of the projects done in the past The structural quality of the projects Number of finished projects Number of ongoing projects Approvals and licences Amenities included in the project include parking, security, power backup, etc. Delivery time Post-sale services Selecting the Right Home Loan Buying a home is costly. Not many people can pay upfront. Thus, you might require a home loan. You can talk to your bank or financial advisor regarding this. They can provide you with details and comparisons on home loans, interest rates, and other offered features. There are many tax benefits to home loans as well. One tip is to keep your repayment tenure short while availing of a home loan. This will save you money on interest. [B-02] Conclusion A first-time home buyer needs to go through many factors before closing the deal. Real estate is an investment that requires heavy research. It is also a safe investment that grows over the long term. Thus, it becomes necessary to understand the complete process and be well prepared. Deciding on the type of property and having a financial plan are where you should start. Factor in all the additional costs that may occur. Choose the home loan that suits you best.

08-11-2023

Home

How To Start A Beauty Salon From Home?

The COVID-19 pandemic hit everyone very severely. No matter what business you were in, everyone got affected by those 2 long years of lockdowns and social distancing. During this period, the demand for personal grooming got in the back seat. The need for beauty salons has increased as the world returns to the old normal. The beauty industry in India is growing in an unprecedented manner. With a compound annual growth rate of around 18.4%, the industry is set to cross over 2400 billion rupees by 2024. Moreover, with the widespread use and availability of the Internet, the demand for beauty salons will grow further. [B-01] The beauty salon is a woman-centric business; most people go to their neighbourhood parlour. Due to this, you would have noticed a couple of beauty salons in every neighbourhood. So, let’s see how to start a beauty salon from the comfort of your home. Do the homework: Like any other business, opening a beauty parlour also require some planning. You can’t just get up and start a beauty salon in the extra room of your house. You need to ensure your parlour business gains long-term success and adds value to your life and your customers. So, start with proper planning, like the investment you need to make, the services you will offer, and the price of each service. There is cutthroat competition in neighbourhood beauty parlours. Thus, as a new business, you must ensure how to attract and retain customers. Learn the skills of a beautician: All planning can go in vain if you lack beauty care and grooming skills. So, you must ensure you know the skills, to begin with. A beauty parlour offers services, including haircare and skincare. Apart from this, you should also learn basic grooming techniques such as threading and waxing. You can learn these skills under the guidance of a trained beautician, or you can go for a beautician diploma course. There are institutes available in almost every city. Besides learning the craft of running a beauty salon, you can also earn as a part-timer during the course duration. Choose the perfect location: As you plan to open a beauty salon in your home, you can run it in your drawing room. But, of course, you will need a proper set-up. Besides, the shop should be easily accessible to customers. Try to open the salon on the ground floor, as most customers prefer to use something other than the stairs. If your house is near the main road, that would be much better. In some places, you may also need to get a no-objection certificate (NOC) from two of your neighbours. Decide the services you want to provide in your beauty salon: When it comes to a beauty salon, the services you can provide are endless. From a simple haircut to a pedicure and manicure, and from hair colour to bridal make-up, the list is quite long. So, make a list of all the services that you want to offer. You may also provide beauty products as an add-on to increase your client base and profit. Create a menu: Now that you have decided on the services you want, it’s time to create a stylish menu. A good menu is a difference between a standard and an ordinary beauty salon. You can convert your one-term clients into long-standing patrons with a good service menu. So, dedicate some time to tweaking your service menu as per your neighbourhood and client base. In the beginning, the trick is to make it accessible to all. So, include those services that are well-aligned with multiple benefits. At the same time, adding a section to serve customers as per their requirements would be better. In this way, you can save costs on product usage and wastage. Choose skilled beauticians: While this doesn’t matter if you work alone in your beauty salon if you plan to start the salon in your home with the staff, choose the skilled one. The hired workforce should be trained in salon work as well as in customer service. Trained staff will ensure the customers are adequately served and required products are always available. So, having an experienced beautician is essential for your salon’s success. Get your legal documents sorted: This is quite important if you plan to open a beauty salon in your home. Once you open a business in your house, it will be treated as a commercial space. Therefore, you will need proper permission and documentation before moving further. The cost of these certifications can vary from place to place. These documents include PAN Card Aadhar Card GST registration (conditional) NOC certificates from the fire department Trade license from the local municipal body Keep your stocks full always: Now that your beauty salon business is ready to open, there is one last thing you need to take care of. With a full range of services on the table, you will require specialised instruments. For example, you will need a steamer, hair spa cream, and specialised combs, among other materials, just for the hair spa service. Besides, you will also need to show hair and skin care products. As these products are costly, they go to a wholesale market. [B-02] Conclusion These are the 8 steps you may follow to start a beauty salon from your home. Once your beauty salon is ready for opening, use some funds for advertising. At the same time, word of mouth goes more quickly in a beauty salon business. You will need some visitors initially for that too. It’s important to note all businesses require some investment, whether big or small. So, if you want a personal loan to open a salon from your home, Piramal Finance is worth checking for. You can get various secured and unsecured loans from here as per your eligibility. Besides, if you want to learn more about financial news, follow our blog and subscribe to our newsletter.

08-11-2023

Guide

Step by step guide on two wheeler insurance policy in India

Do you own a two-wheeler? You might have done full research to find the right dealer for your purchase. You might save and arrange funds and documents also ready while purchasing it. But do you know that the Indian government has made insurance necessary for a two-wheeler? But many of the buyers do not know anything about insurance. They sometimes have to spend lots of time and energy to know the terminology of insurance. You can now read this post to know all about two-wheeler insurance from here. We are going to discuss what, why and how of two-wheeler insurance online and offline options. [B-01] Two-Wheeler Insurance-What? Offline or online two-wheeler insurance is an agreement between the service/insurance provider and the policy buyer. As per the agreement, the service providers agree to pay the cost of any type of damage to the vehicle or the owner both with some terms and conditions like timely premium payment. Two-wheeler insurance policies are usually valid for one year. However, some providers offer long-term policies also with some discounts. You should always renew the policies before their expiry date to remain always protected. Types of Different Insurance Policies There are mainly two types of bike or two-wheeler insurance. Comprehensive and third-party insurance. The definition of both of these types are given below: i) Comprehensive Bike Insurance Comprehensive two-wheeler insurance is also known as damage insurance. This insurance has a wider range of coverage and protection. Comprehensive insurance offers mandatory third-party coverage along with financial protection. As these insurance plans offer extra benefits to the buyers so they are more expensive as well. New bike/two-wheeler owners can buy comprehensive insurance for 3-5 years as well. The premium amount for comprehensive insurance is mostly pre-set by the provider. ii) Third-Party Insurance Third-party insurance policies mostly cover the damage and injuries caused by someone else to the vehicle or the owner. As per Motor Vehicle Act, for any bike or two-wheeler, third-party insurance is mandatory in India. For a fresh purchase, 5-year third-party insurance is mandatory. The rate of the insurance is decided by IRDAI. Third-party and comprehensive insurance plans have only one difference. Comprehensive insurance covers and protects third-party and owners, while in the case of third-party insurance, it only covers third-party damage or loss. Offline or Online Two-Wheeler Insurance- Why? As we have described above that any type of insurance gives protection to the vehicle and owner. The insurance covers lots of things which it has made mandatory. If you doubt whether insurance is good for you or not then, here are some specific reasons to buy it. A third-party plan gives you the following benefits: · Cover of legal liability arising from physical injury or damage · Cover of legal liability arising from death · Cover of legal liability arising due to damage to property · Cover of legal liability arising due to damage to the vehicle However, in the case of comprehensive insurance, you also get coverage for the vehicle and owner damage. So, if you want to lessen your hurdles caused due to unwilling mishappening, then an insurance plan can help you with that. Two-Wheeler Insurance-How? If you want to buy the insurance then follow the below steps as step-by-step process to buying the insurance: Step 1: First, before purchasing the insurance either consult with an expert or a friend to decide which type of insurance is best for you. As all plans do not match everyone’s requirements, so choose the best suitable plan for you. Step 2: After consulting with friends or experts you can compare the plans online as well. Decide whether you need a basic or comprehensive insurance plan. The right analysis of your need will help you decide the best suitable plan. Step 3: Check and compare the offerings of several service providers. Know what premium they are asking for and what additional features they are offering. Step 4: Check whether the company is offering IDV (Insured Declared Value) of the vehicle or not. IDV is total protection against damage or theft that is beyond repair. IDV is the difference between depreciation and the manufacturer’s selling price. : Step 5: Check for add-ons on the current policy they are also known as riders. By paying the higher premium you can get riders as well along with basic benefits. Service providers will give you full detail. Step 6: Before finalizing your plan read the legal document properly. You can take the help of some experts here too, who can explain the terms. Step 7: Have a word with the insurance agent first and then finalize the plan, Step 8: As the last step just make the payment after which you will receive a full policy document by email. In case of offline purchase, you will receive it by post. [B-02] Conclusion: While buying the insurance policy just consider it like an investment not as an expense. In any adverse situation like an accident, loss of vehicle or damage you can use the vehicle. You should always carry the policy document with you if you are travelling anywhere in your vehicle. Earlier IRDA only allows the policy for one year, but now you can buy it for several years as well. The policies can be bought for a stretch of up to 3 years. Check several two-wheeler insurance online options here.

08-11-2023

How To?

How to Protect Your Bank Accounts Against Cybercrime

Cybercrime is on the rise, and bank accounts are a prime target. If you want to protect your hard-earned money, you need to take steps to safeguard your bank account against cybercrime. In this blog, we’ll study how you can protect your bank account against cybercrime. Trust us, you won’t want to miss this. So, let’s dig in! [B-01] Make unique passwords One of the best ways to safeguard your bank accounts against cybercrime is to use unique passwords. It may be tempting to use the same password for all of your accounts. But this can be a harmful mistake. If a cybercriminal manages to gain access to one of your accounts, they will then have access to all of them. By using unique passwords, you can help to ensure that each account is protected. In addition to using unique passwords, you should also make sure to change your passwords regularly. By doing so, you can further reduce the risk of becoming a victim of cybercrime. Here are four tips to help you create a password that is both tough to crack and easy to remember. Use a mix of upper and lower case letters, numbers, and symbols. This will make your password significantly more difficult to guess. Avoid using super generic passwords such as your birthdate or just “password”. Make your password at least eight characters long. The longer the better! Consider using a password manager to help you keep track of all your different passwords. This way you only have to remember one master password instead of dozens of different passwords. Following these tips will help you create a strong and unique password. This will make it difficult for hackers to guess. So don’t wait – start creating more secure passwords today! Use Two-factor Authentication As the world continues to digitise, it’s important to take steps to protect your online information. While there are many cyber threats out there, one of the most common is account takeover. This is when a hacker gains access to your account. He then uses it to steal your money or commit other fraud. One way to protect yourself against account takeover is to use two-factor authentication (2FA). This extra layer of security requires you to enter a code from your phone or email in addition to your password. The code acts as a second factor. It proves you are who you say you are. In addition, 2FA can also protect you against phishing attacks. This is when hackers send emails or texts that appear to be from a legitimate source, such as your bank. They trick you into entering your login information. They then use it to gain access to your account. By using 2FA, you can ensure that even if a hacker has your password, they won’t be able to log into your account without also having access to your phone or email. So if you’re looking to protect yourself against cybercrime, be sure to leverage two-factor authentication. Use Bank Tools Banks offer a variety of tools to help protect your accounts against cybercrime. Many of these tools are designed to detect and prevent fraud, such as malware that could be used to steal your login information or other sensitive data. Banks also often offer password recovery services in case you forget your login information. In addition, many banks now offer two-factor authentication. This requires you to enter the second piece of information (such as a code sent to your mobile phone) in addition to your password when logging in. This makes it more difficult for hackers to access your account even if they have your password. Update Your Software Regularly Our lives have gradually moved online. So it has become increasingly important to take steps to protect our personal information from cybercrime. One simple but effective is to make sure that all the software on your devices is up to date. Outdated software can be full of security vulnerabilities. Hackers can exploit this to gain access to your bank accounts and other sensitive information. Keep your software updated. This way you can help make sure that your devices are as safe as possible from cyber attacks. In addition to updating your software, there are other steps you can take to protect your online accounts. These are using strong passwords and enabling two-factor authentication. By taking these measures, you can help keep your bank account and other personal information safe from cybercriminals. Set up Email and SMS alerts One of the best things you can do is set up alerts on your bank accounts. That way, if someone tries to make a suspicious transaction, you’ll be notified right away. You can also set up two-factor authentication. This adds an extra layer of security. And it’s important to keep your operating system and browsers up to date, as well as use a reputable antivirus program. In addition, you should always review your account statements carefully to look for any unauthorized charges. If you see anything that doesn’t look right, contact your bank immediately. By taking these simple precautions, you can help keep your bank account safe from cybercriminals. Parting words The best way to protect yourself from cybercrime is by being proactive. Protect your passwords, keep your computer software up-to-date, and be aware of what you’re clicking on. If you do fall victim to a cyberattack, report it immediately and take steps to protect yourself from future attacks. [B-02] Bank account fraud can be a major hassle, but with these tips, you can help minimize your risk of becoming a victim. Stay safe online! We hope that now you are all clear on how to keep your bank account secure. But if still you need help with any of your financial doubts and concerns related to cyber security, you can contact finance experts at Piramal Finance!

08-11-2023

Business Loan

How to Use a Business Loan EMI Calculator for a New Business?

Any business’s ability to grow and expand depends on having enough money. The criteria are the same, whether you need money to invest in a new product your firm is producing, build new branches of your business, digitise your business’s procedures, or any other purpose. You can meet your company’s financial needs by applying for a business loan. Yet, failing to pay a business loan affects more than your reputation; it also raises the number of outstanding instalments due. Thus, before you apply for a loan, it is crucial to calculate and plan your EMI. A business loan EMI calculator is helpful in this case. Giving a realistic picture of the monthly loan payback responsibilities helps structure your organisation’s monthly budget and expenses. You can select the amount and term of your business loan using the online EMI calculator. In this article, we will discuss the functions of a business loan EMI calculator and how you can use it. [B-01] What is a Business Loan EMI Calculator? The EMI calculator computes the precise EMI that must be paid throughout a loan for both the interest and the principal loan amount. Lenders and customer websites feature a fast-access tool that helps streamline the EMI calculating process to make it easier. The business loan EMI calculator uses an equation that consists of three fundamental parts (loan amount, interest due, and the loan term). This calculator has the advantage of being easy to use and understand. Users only need to provide the essential loan information once to receive an instantaneous calculation of their monthly payment. The business Loan EMI calculator can contrast various business financing offers. The users enjoy this since it makes it simple to choose which loan offer is better for them — a more considerable loan at a lower business loan interest rate with a lower monthly payment. How are the Costs of the Loans Determined? As mentioned above, three criteria must be considered to determine your payment amount. These three factors are the loan amount, interest due, and the loan term. A commercial loan EMI calculator can determine the monthly payment schedule once this information is gathered. When you get a loan, you will receive an “amortisation schedule” that compiles all this information into a simple table. The loan amount, the interest you will pay each month, and the total amount still owed after each month is distributed according to the amortisation schedule. You may efficiently utilise a business loan EMI calculator to know the necessary monthly repayments because the amortisation plan is made public once a loan is sanctioned. How to Estimate the EMI for a Business Loan? A loan is paid back in equal monthly instalments, or EMIs, which include both the interest and principal portions of the loan. The loan amount, the length of the loan (or term), and the rate of interest that will be charged on the loan are the three primary factors used in a typical formula to calculate the monthly interest payment. The mathematical procedure for calculating business loans is described below and is based on these factors. EMI is defined as P x r x [(1+r)n-1]/(1+r)n] In the formula above, P stands for the loan amount that the lender has provided. R is the interest rate the lender will charge for the loan. The interest rate is treated as a monthly rate for this computation. Hence r is calculated as r/12/100. n is the loan’s duration or tenure, and it is displayed as the total number of months over the term (for example, an assignment of 10 years is represented as 120 months in the above formula). To comprehend the formula above, let’s look at an example. Company A has requested a long-term business loan from DEG Bank for Rs. 50,000,000 with a 10-year term and an annual business loan interest rate of 8%. In this case, the EMI will be calculated as, EMI = 5000000 0.006667 {(1+0.006667)^120 / [(1+0.006667)^120 – 1]} EMI = Rs. Rs. 60,664. How to Calculate Business Loan Interest Rates in India? While applying for a business loan in India, the lending companies charge a fee, also commonly an interest rate added to the loan amount. The percentage of the total loan amount is used to represent the interest rate. Your lender will provide you with two different interest rates when you apply for a loan: a nominal interest rate and an annual percentage rate (APR). The nominal interest rate is the interest the lender charges every year. APR represents the overall yearly loan repayment costs, considering all associated loan fees, interest, and commissions. When compounding is considered, the effective business loan interest rate also reveals the total cost of a loan. The following mathematical formula is used to determine the effective interest rate: (1+r^n)-1 Where r denotes the periodic rate of interest. Loan EMI influencing variables: Loan Amount: The amount/capital of the loan, also known as the principal amount, is the amount of money/cash you agree to borrow or the sum your lender has authorised. It is crucial to determine the monthly repayments. When the loan amount rises, the EMI payment follows suit. Rate of Interest: Many variables, including the borrower’s age, income, credit history, and repayment capacity, are considered when calculating the business loan interest rate. However, this could differ from one lender to the next. Loan Tenure: As the loan repayment period is extended, the EMI cost changes significantly. The monthly EMI decreases if a borrower chooses a more extended repayment period and vice versa. However, a longer loan term results in a higher interest component. If you alter the loan amount or the repayment period, you can also calculate the difference in the sum. You can’t afford to make a mistake. Thus, this sum needs to be entirely correct. Things can go wrong for you if you take out a loan you can’t afford to pay back. The simplest way to avoid such circumstances is to use a calculator created with this need in mind. [B-02] Conclusion Loans are a typical component of all businesses. They can assist customers in obtaining quick financing at a lower rate. To ensure that the firm can plan its spending appropriately and that loan repayment does not become a burden, it is crucial to test the effective cost of each business loan before choosing it. Try this business loan EMI Calculator to calculate your EMI, monthly instalments, and due diligence of your Loan. Do you need funding to expand your business? Applying for a business loan should be easy with the appropriate knowledge and direction! This article outlined the steps for applying for a business loan so that you can acquire the funding your business requires.

08-11-2023

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