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List of all The Charges You Need to Know While Applying For a Home Loan

Applying for a home loan can be an exciting and overwhelming experience, but it’s essential to understand all the charges involved to avoid any surprises later on. In India, there are several charges that you need to be aware of when applying for a home loan, such as processing fees, appraisal fees, and stamp duty charges, to name a few. [B-01] Here’s a comprehensive list of all the charges you need to know while applying for a home loan in India. Processing Fees: This is a one-time fee the lender charges to cover the costs of processing your home loan application. The processing fee can vary from lender to lender and typically ranges from 0.5% to 1% of the loan amount. Appraisal Fees: This fee covers the cost of evaluating the property you are purchasing to determine its market value. Depending on the lender, the fee is usually between Rs. 2,000 to Rs. 5,000. Stamp Duty and Registration Fees: The government charges these fees for registering the property in your name. The stamp duty fee can vary from state to state and is typically between 1% and 5% of the property value. The registration fee is usually around 1% of the property value. Prepayment Penalty: Some lenders may charge a prepayment penalty if you choose to pay off your home loan early. The penalty can be a percentage of the outstanding loan balance or a fixed amount, depending on the lender. Foreclosure Charges: Some lenders may charge a foreclosure fee if you choose to foreclose your home loan. The fee can be a percentage of the outstanding loan balance or a fixed amount, depending on the lender. Late Payment Charges: Some lenders may charge a late payment fee if you miss a loan repayment. The fee can be a percentage of the outstanding loan balance or a fixed amount, depending on the lender. Home Loan Insurance: Some lenders may require you to purchase home loan insurance to protect the loan in case of death or permanent disability. The insurance cost can vary depending on the lender and your chosen insurance policy. Loan Servicing Charges: Some lenders may charge a fee for loan servicing, which covers the cost of managing your loan account. The fee can be a percentage of the loan amount or a fixed amount, depending on the lender. It’s important to carefully review all the charges involved in a home loan before making a decision. Some lenders may offer lower interest rates but charge higher processing fees, while others may offer lower processing fees but charge higher interest rates. Compare the charges and interest rates offered by various lenders to find the best home loan option for your needs. [B-02] In conclusion, understanding all the charges involved in a home loan can help you make an informed decision and avoid any surprises later on. Make sure to carefully review all the charges and home loan interest rates offered by various lenders before making a decision.

08-11-2023

Guide

Best home loan offers to reduce home loan EMI after a moratorium

The Covid-19 pandemic has significantly impacted the economy, leading to financial distress for many individuals. As a result, the Reserve Bank of India (RBI) offered a moratorium on loan repayments to relieve borrowers. Now that the moratorium period has ended, many borrowers are facing an increase in their home loan EMIs. If you’re one of them, exploring the best home loan offers available is essential to reduce your EMI and manage your finances effectively. [B-01] Here are some of the best home loan offers to reduce your home loan EMI after the moratorium: Balance Transfer: A balance transfer is an excellent option to reduce your home loan EMI. In a balance transfer, you transfer your existing home loan to another lender, offering a lower interest rate. This reduces your EMI and saves you money on interest payments in the long run. Top-up Loan: A top-up loan is a loan that is offered to an existing home loan borrower to meet their additional financial needs. A top-up loan is usually offered at a lower interest rate than a personal loan and can help reduce your home loan EMI. Part-Prepayment: Part-prepayment is another option to reduce your home loan EMI. By making a part-prepayment, you can reduce the outstanding loan amount, which in turn, reduces your EMI. Some lenders may charge a prepayment penalty, so make sure to review the terms and conditions before making a part prepayment. Switch to a Longer Tenure: If you’re finding it difficult to manage your EMI, you can opt for a longer loan tenure. A longer loan tenure means smaller EMIs, but you’ll pay more interest over the long run. Opt for a Floating Rate Loan: If you take a fixed-rate home loan, you can switch to a floating-rate loan. Floating-rate loans are linked to the market rate and offer lower interest rates, which can help reduce your home loan EMI. It’s essential to compare the various home loan offers available in the market and choose the one that best suits your financial needs. Before making a decision, make sure to review the terms and conditions, interest rates, and processing fees offered by various lenders. [B-02] In conclusion, reducing your home loan EMI is crucial to managing your finances effectively. By exploring the best home loan offers available in the market, you can reduce your EMI and ensure a comfortable repayment process. Take the time to review the various options and make an informed decision to secure your financial future.

08-11-2023

Tax Savings

Complete Guide On How Can You Avail Tax Benefits On Home Loan In India

Housing loans are one of the most popular lending instruments, which are always in demand. According to research in 2020, there were more than 1.5 crore active housing loans in the affordable loan segment. Due to this huge number and the Indian ambition to buy a home, the Indian government offers home loan tax benefits to such borrowers. Under the Income Tax Act of 1961, multiple benefits and tax rebates encourage borrowers and increase overall property investments. The complete guide to availing tax benefits on home loans will provide you with multiple ways to reduce your income tax output. If you are someone who has an active housing loan or you are looking to apply for one, this guide can be very helpful to you. [B-01] Guide to Avail Tax Benefits on Home Loans in India Check your Eligible Tax Rebate Checking your eligibility to get a tax rebate is very simple. The Income Tax Act of 1961 provides loan payers with deductions under three sections. They are Section 24, Section 80C, Section 80EE & 80EEA. Under these sections, loan payers can apply for tax rebates for the principal and interest amount paid under a particular financial year. Section 80C According to Section 80C of the Income Tax Act, the loan payer can get tax rebates on the repaid principal amount. They can get a rebate of up to Rs. 1,50,000, including the charges for stamp duty and registration fees. If you have a women applicant or co-applicant, you can avail of up to 1% additional concession on stamp duty and registration charges. The home should be entirely constructed if you want to claim this tax rebate. You are not eligible to take this rebate if you plan to sell the property within five years of its possession. If the rebate is taken, it will be reversed and added to the income for the year if you sell it within five years. Section 24B According to Section 24, the loan payer can get a tax rebate of up to Rs. 2 lakh on the interest paid against their home loan. The only criterion here is that if the house is not built within three years of taking out the loan, the person can only avail of up to Rs. 30,000 as a rebate. If the borrower owns two homes, the total deduction must be Rs 2 lakh. If your property is lent out, there is no limit to the number of deductions you can claim depending on your interest paid. The maximum loss you can claim under this section is capped at Rs. 2 lakh. If the amount is more, it can be carried forward for eight years. Section 80EE, & 80EEA According to section 80EE, you can get extra tax rebates of up to Rs. 50,000 if you are a 1st home buyer and the house was bought between April 2016 to March 2017. The only requirement is that the housing loan should be under Rs.35 Lakh, and the housing property should be valued under Rs.50 Lakh. The 2019 budget made slight adjustments to the 80EE and launched Section 80EEA, which can be availed for properties bought between the period of April 2019 to Mar 2022. Here, the loan payer can get an additional benefit of up to Rs 1,50,000. All the other criteria remain the same as Section 80EE. The only difference is that the stamp value should be Rs.45 lakhs. Joint Home Property If you have taken a housing loan jointly, both borrowers are eligible for tax benefits under sections 24B and 80C. It means both of these borrowers can avail of benefits up to Rs 1,5 lakh under 80C and Rs 2 lakh under 24B. Calculating your Home Loan Tax Benefits with Example Once you understand which section you are eligible to use, you should focus on calculating your home loan tax benefits. To do this, you will need the following figures: Loan tenure, loan amount, interest rate, loan sanction date, gross annual income, and other deductions under Section 80C/D. Scenario 1: If you are paying a Home loan on EMI post possession You are advantaged if you pay your home loan through equal monthly installments. The government allows such borrowers to get rebates for the interest and principal they pay. If you have possession, you can get up to Rs. 2 lakh for the interest you have paid (Section 24B). You can get up to Rs 1.5 lakh for the principal you have paid, along with the stamp duty and registration charges, if paid in the same year (Section 80C). Scenario 2: If you are paying a Home loan on EMI pre-possession Interest paid before possession of a house is calculated on an aggregated basis. Whatever interest you pay before your home is built will come under Section 24 and is divided into five equal installments for five coming years until you get possession. For example, if you have taken a loan that amounts to Rs. 20 lakh at the interest rate of 10% for 20 years in July 2014. At the same time, you will get possession in 2017. The total EMI stands at Rs 19,300. And you have already paid 21 instalments between July 2014 – March 2016. The interest paid in these years will amount to Rs 3.45 lakh with principal amounting to Rs. 60,170 Here the total principal you paid will be divided into five equal parts, which will be claimed in the coming five years (2016-2021). This will amount to Rs 69,028 (3,45,000 ÷ 5) Once the house was under possession in 2017, the borrower will now be eligible to claim Rs 69,028, along with their regular deduction for the current year. It will be capped at Rs. 2 lakh as per section 24B. [B-02] Conclusion Once you have a clear understanding of your home loan tax benefits, you can apply them at the time of filing your next income tax return. You can provide all the necessary details to the return professional, and he will do the needful. If you are looking for options to apply for a housing loan, Piramal Finance offers home buyers exciting perks and benefits to all applicants. You can check their website for more details.

08-11-2023

Education

How to Link Aadhaar with PAN Card Online: A Step-By-Step Guide

It is vital to link the Aadhaar with the Permanent Account Number (PAN). The income tax return will be rejected if the Aadhaar is not connected to the PAN. If users want to do a money transfer of more than Rs. 50,000, they must link their Aadhaar and PAN cards. Linking the PAN card with the Aadhar card is simple, and there are many ways to do so. Learn how to connect the cards online in this post. [B-01] Deadline for Aadhaar-PAN Linking According to the Central Board of Direct Taxes (CBDT), the deadline for taxpayers to link their Aadhaar and PAN card is extended from March 31, 2023 to June 30, 2023. It is important to link the Aadhaar and PAN card as it will help curb tax invasion and failing to link the documents will ensure the PAN card becomes inoperative. The CBDT also declared that not adhering to the deadline, and not linking the Aadhaar to the PAN card will result in penal action from July 01, 2023. This includes: No tax refund will be allowed against PAN cards that aren’t linked to the Aadhaar card. If the taxpayer has linked the documents after filing the returns, the Income Tax department will not pay interest on the refund amount for the period that the documents weren’t linked. The tax deducted at source (TDS) and tax collected at source (TCS) will be deducted/collected at a higher rate. Taxpayers can ensure their PAN card is operative again within 30 days post paying the INR 1000 fine as a late fee. The Value of Aadhaar & PAN Card Linking For all PAN card holders, Aadhaar PAN linking is important for the listed reasons: It removes the chance of a person having more than one PAN Card. Aadhaar-PAN linking helps the Income Tax Office spot any tax evasion. Filing income tax returns has become easier since people do not need to give proof of filing their income tax returns. Aadhaar and PAN Card linking stop the PAN from being revoked. The Importance of Aadhaar-PAN Linking Unique identification cards, such as the PAN card and the Aadhaar card, are required for registration and identity verification. The government has advised all firms on Aadhaar-PAN linking. The following goals motivate this action: Tackling Tax Evasion The government would be able to monitor the taxable activity of a specific person or company through Aadhaar-PAN linking, and their Aadhaar card will serve as proof of their identity and residence. This means that the government will keep track of every taxable trade or activity. As a result, tax evasion would not be able to occur for long. This will happen because the government already has a thorough record of all financial events that would trigger taxation for each firm. Several PAN Cards Connecting PAN and Aadhaar is another reason to prevent people from obtaining numerous PAN cards to scam the government. An entity could use one of the PAN cards for a specific set of economic operations and the associated taxes by applying for more than one PAN card. The other PAN card could be used for transactions or accounts that the entity wants to keep hidden from the Income Tax Department to avoid paying tax on them. The government could identify an entity through their Aadhaar card and afterward have records of all money transactions done through an Aadhaar PAN linking with the Aadhaar card. The state will be able to recognize duplicate PAN cards registered in the same name and take appropriate action if this occurs. Methods for Connecting PAN to Aadhaar There are two methods for linking PAN cards with Aadhaar cards. They are as follows: Through the Income tax e-filing portal SMS transmission Using an e-Filing Website for Aadhaar-PAN Linking The methods below show how to link the PAN Card to the Aadhaar Card online. The linking process is done using the Income Tax Department of India’s e-filing website. Step 1 Visit the Income Tax e-filing website. Step 2 One will notice a ‘Quick Links’ button. To start, click on it and then pick the ‘Link Aadhaar’ sub-option. Step 3 When one completes the same, a pop-up message will appear saying that the payment information has been validated. To proceed, choose the ‘Continue’ option. Step 4 On the website to which one will be routed, they must enter their PAN and Aadhaar card number. To continue, click the ‘Validate’ button at the end of this stage. Step 5 The Aadhaar card number, PAN card number, and name as it appears on the Aadhaar card must be entered. There are two check boxes behind it as well. One will inquire whether or not the Aadhaar number contains the birthdate, and the other will request consent to validate the Aadhaar. If it applies, select option number one. The other requires one to click on the exact link to continue. Step 6 On the next screen, enter the OTP (One Time Password) that will be sent to the registered mobile number. Choose the ‘Validate’ option. Remember that the above OTP comes directly from the Department of Income Tax of India. Step 7 The Aadhaar-PAN linkage request has finally been lodged with UIDAI (Unique Identification Authority of India); it will also state that one must verify the same status in a few days. If one gets such a message, they have successfully requested that their Aadhaar be linked to their PAN Card. How to Link Aadhaar Card-PAN Card through SMS For the process of linking a PAN Card with an Aadhaar Card by SMS, follow these steps: Step 1 Send a message within the format UIDPAN<12 Digit Aadhaar> <10 Digit PAN>. Step 2 Send a text message from the Aadhaar-linked mobile number to either 56161 or 567678. How to Make Changes in Aadhaar Card for PAN-Aadhaar Linking To fully link the PAN Card to the Aadhaar Card, one must verify that each piece of data is the same. In a few cases, the data on the Aadhaar Card may differ from that on the PAN card. If this is the case, inaccuracies on the Aadhaar card may be corrected either offline or online with a few easy procedures. Continue reading to learn about corrections in linking PAN card with Aadhaar Card: Step 1 Go to UIDAI’s official website. Step 2 Enter the 12-digit Aadhaar number and the case-sensitive captcha code to log in. Step 3 Select “OTP” as the option. After that, a one-time password (OTP) will be sent to the linked mobile phone number. Enter it and click the ‘Submit’ button to continue. Step 4 On the next screen, choose the areas of the Aadhaar Card that require updating. Keep photocopies of the relevant papers on hand since submitting them is mandatory. Step 5 After sharing the needed documents and forms, a URN (Update Request Number) will be produced. One should make a note of it for future reference. [B-02] Conclusion Linking PAN cards with Aadhaar cards is now a need. The process of linking a PAN to an Aadhaar card is relatively simple. The article above discussed two ways of linking PAN cards with Aadhaar cards and all about the deadlines and correction methods. If you need more guidance and assistance with such processes, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments, procedures, and products in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out the blogs on their website!

08-11-2023

Guide

How to Link RuPay Credit Card and UPI for Hassle-Free Transactions

As digital payments gain momentum in India, the RuPay credit card and UPI (Unified Payments Interface) have emerged as popular options for cashless transactions. However, many users need clarification about the charges and transaction limits associated with these payment methods and how to link them to their bank accounts. In this article, we will guide you on how to link RuPay credit card and UPI and understand the transaction limits and charges imposed by various banks. [B-01] RuPay credit card, issued by the National Payments Corporation of India (NPCI), is a domestic credit card that offers benefits like cashback, rewards, and discounts. On the other hand, UPI is a real-time interbank payment system that instantly facilitates interbank transactions using a mobile phone. Linking your RuPay credit card and UPI can enable you to make seamless online and offline transactions without needing physical cash. To link your RuPay credit card and UPI, follow these simple steps: Step 1 – Install and open the UPI-enabled mobile app of your bank or any other UPI-enabled app from the app store. Step 2 – Select the “Add/Link/Manage Bank Account” option and choose your bank from the list of available banks. Step 3 – Enter your RuPay credit card details, including the card number, expiry date, and CVV. Step 4 – Create a UPI ID (also known as VPA or Virtual Payment Address) of your choice, serving as your unique UPI address for transactions. Step 5 – Set a UPI PIN, a 4- or 6-digit password for authorizing UPI transactions. Step 6 – Complete the linking process by verifying your RuPay credit card details and UPI PIN. Once your RuPay credit card and UPI are linked, you can start making transactions seamlessly. However, it’s important to be aware of the transaction limits and charges imposed by your bank to avoid any surprises. Here are some examples of Transaction limits and charges for RuPay credit card and UPI transactions that vary among banks. HDFC Bank: HDFC Bank allows a maximum of 10 transactions per day with a transaction limit of Rs 5,000 per transaction for UPI transactions. There are no charges for linking the RuPay credit card and UPI. Punjab National Bank (PNB): PNB allows a maximum of 10 transactions per day with a transaction limit of Rs 5,000 per transaction for UPI transactions. There are no charges for linking the RuPay credit card and UPI. Union Bank of India: Union Bank of India allows a maximum of 20 transactions per day with a transaction limit of Rs 10,000 per transaction for UPI transactions. There are no charges for linking the RuPay credit card and UPI. Axis Bank: Axis Bank allows a maximum of 10 transactions per day with a transaction limit of Rs 5,000 per transaction for UPI transactions. There are no charges for linking the RuPay credit card and UPI. It’s important to note that these transaction limits and charges are subject to change, and it’s advisable to check with your bank for the most updated information. [B-02] In conclusion, linking your RuPay credit card and UPI can provide a convenient and secure way to make cashless transactions. By following the simple steps mentioned above and being aware of the transaction limits and charges imposed by your bank, you can enjoy hassle-free digital payments and contribute to the growing trend of a cashless economy in India.

08-11-2023

Guide

All You Need to Know About New UPI Wallet Payment Transaction Fees!

UPI, or Unified Payments Interface, has become a popular method of digital payment in India, with more than 200 million transactions taking place each day. This system allows users to transfer money between bank accounts instantly and securely, using their mobile phones. The convenience and ease of use of UPI have made it a preferred mode of payment for many people in India. The Indian government also states that the growth of digital payments in India has led to an ease of living for most citizens and has helped the economy, especially during the COVID-19 pandemic. [B-01] However, the increasing popularity of UPI has put a strain on the banking system. Banks have been struggling to keep up with the high volume of transactions, which has led to delays and technical glitches. This has prompted the National Payments Corporation of India (NPCI) to introduce the new policy of charging a fee for transactions over Rs. 2,000. Starting April 1, 2023, UPI transactions of more than Rs. 2,000 will be charged at a rate of 1.1 percent. The NCPI has announced this new policy, which is aimed at reducing the burden on banks and promoting digital payments. The fee of 1.1 percent may seem small, but it will add up for frequent UPI users. For example, if you make a transaction of Rs. 10,000, you will be charged a fee of Rs. 110. This could discourage some people from using UPI for large transactions, which could reduce the burden on the banking system. The NPCI has said that the new policy is aimed at promoting digital payments and reducing the use of cash. This is in line with the Indian government’s push for a cashless economy. By encouraging people to use digital payments, the government hopes to reduce the amount of black money in circulation and increase transparency in financial transactions. However, some experts have criticized the new policy, saying that it will hurt small businesses and individuals who rely on UPI for their daily transactions. They argue that the fee will be an additional burden on people who are already struggling to make ends meet. In response to these concerns, the NPCI has said that it will exempt transactions made by small merchants and businesses from the fee. This means that transactions made by merchants with an annual turnover of less than Rs. 20 lahks will not be charged the fee. [B-02] Overall, the new policy of charging a fee for UPI transactions over Rs. 2,000 is a mixed bag. While it may reduce the burden on the banking system, it could also discourage some people from using UPI for large transactions. The exemption for small merchants and businesses is a welcome move, but it remains to be seen how effective it will be in practice. As UPI continues to grow in popularity, it will be important to strike a balance between promoting digital payments and ensuring that they remain accessible and affordable for all. As mentioned above, the fee will be charged beginning 01st April 2023 and will be reviewed by 30th September 2023.

08-11-2023

Personal Loan

What are the best personal loans in India and how to choose one of them?

Banks and financial institutions in India offer personal loans for different purposes. Now, everything is available online. You can even apply for a personal loan online from the comfort of your home. Today, a personal loan has become a favourable choice of debt. The fact that personal loans are unsecured, aids in tipping the balance in its favour. A personal loan is a sum of money that you borrow from a bank or another financial institution. After receiving the funds, you begin repaying the lender. You can decide the tenure and instalment amount with your banker in advance. Taking a personal loan online is a significant financial decision. Hence, it is important to consider the best options available to you. Let us check out some of the most popular personal loan plans in India. [B-01] Brief Analysis of Best Personal Loan Plans HDFC Bank Personal Loan HDFC is one of the leading banks in India. You can consider their loan as it is available at affordable terms. Here are the details of the loan. Interest rate 11% p.a. to 21.00% p.a. Minimum age 21 years Maximum age 60 years Minimum income Rs. 25000 per month Processing fee Up to INR 4999 Loan amount Up to Rs. 40 lakh Loan tenure 12 to 60 months Loan disbursal time 4 days ICICI Bank Personal Loan ICICI Bank is known for the quick approval of loans. You can apply for their personal loan online in a few simple steps. Interest rate 10.75% to 19% per annum Minimum age 23 years Maximum age 58 years Minimum income Rs. 30000 per month Processing fee Up to 2.50% of loan amount plus GST Loan amount Up to Rs. 50 lakh Loan tenure 12 to 72 months Loan disbursal time 4 days Axis bank Personal Loan For fast processing of your personal loan online, you can choose Axis bank. There are plenty of ways in which you can use these funds. With minimal documentary requirements, here are the details of such loans. Interest rate 10.99% to 21% per annum Minimum age 21 years Maximum age 60 years Minimum income Rs. 15000 per month Loan amount Up to Rs. 40 lakh Loan tenure 12 to 60 months Loan disbursal time 4 days IDFC First Bank Personal Loan There are many benefits if you apply for a personal loan online here. You can transfer the balance of an existing personal loan here. Enjoy paperless and digital processing of loans and check these details. Interest rate 10.49% to 25% per annum Minimum age 23 years Maximum age 60 years Minimum income Rs. 25000 per month Loan amount Up to Rs. 1 Crore Loan tenure 6 to 60 months Processing Fee Up to 3.5% of the loan amount SBI Xpress Credit Personal Loan You can apply for this personal loan online if you are planning a wedding or vacation. It will help you make big-ticket purchases conveniently. Interest rate 10.49% to 25% per annum Minimum age 23 years Maximum age 60 years Minimum income Rs. 15000 per month Loan amount Up to Rs. 35 Lakh Loan tenure 6 months to 6 years Processing Fee Up to 1% of the loan amount Kotak Personal Loan For any pressing financial needs, you can take a personal loan online from the bank. Get instant loans from the bank to cover any unexpected needs. Check out the details here. Interest rate Starting at 10.99% up to 24% Minimum age 21 years Maximum age 60 years Minimum income Rs. 25000 to 30000 per month Loan amount Up to Rs. 25 Lakh Loan tenure 12 to 60 months Processing Fee Up to 3% of the loan amount Bandhan Bank Personal Loan Another ideal option to apply for a personal loan online is Bandhan Bank. You will get attractive rates of interest and quality features with your loan. Check out the details here. Interest rate Starting at 10.25% up to 20% Minimum age 21 years Maximum age 60 years Minimum income Rs. 25000 per month Loan amount Up to Rs. 25 Lakh Loan tenure 12 to 60 months Processing Fee Up to 3% of the loan amount How To Choose Personal Loan Online? Here are some crucial factors that you need to consider when selecting a personal loan online. Documentary Requirement Check the list of documents that you need to submit to get a personal loan. Some of the common documents include income statements and ITR returns. Interest Rates Check the interest rates chargeable on the loan. Banks offer loans at a wide range of interest rates according to the borrower’s profile. Tenure Personal loans carry a longer repayment tenure. Check with the bank about the same and choose a loan that sits comfortably in your financial budget. Amount Of Loan Consider a bank that offers the best interest rates on your desired amount of loan. Since the purpose of taking a loan could vary, check whether your bank is willing to offer the said amount. Charges Understand what type of charges are being levied by your bank. These charges determine the ultimate amount that you can get after loan disbursal. [B-02] Conclusion These options for the best personal loan in India are among the most fitting ones. Now, the banking market has expanded substantially. As long as you are aware of the features of a personal loan, you should not face any difficulty in getting the right one. Always read the terms listed in the loan document before signing for it. For more such knowledge and information about taking a personal loan online, visit Piramal Finance. It is the premier destination to gain all the financial data that you need to make informed decisions. Browse through a wide range of financial offerings and information right here.

08-11-2023

Personal Loan

How to Borrow a Piramal Finance Personal Loan for Marriage?

Personal loans can be used for various purposes, but marriage is a major reason people apply for personal loans. A personal loan is a collateral-free loan that is given out solely based on your creditworthiness. A personal loan for marriage will allow you to have your dream wedding. A personal loan is one of the most popular services offered by Piramal Finance. Piramal Finance offers the best, hassle-free, and easy personal loan for marriages. The loan comes with zero prepayment and foreclosure charges. You can also get favourable interest rates, which start at 12.99% per annum. But why should you consider this type of loan? [B-01] Why should you choose a Piramal Finance personal loan for marriage? Weddings can be quite expensive. You can reduce the financial burden by opting for a personal loan. Here are a few reasons to apply for a personal loan for marriage from Piramal Finance. You can use it any way you like Most loans have a specific purpose. You cannot use the principal amount for any other purposes. For example, you can only use a car loan to purchase a car. But, when you avail of a personal loan for marriage, you can use it for any expense. This makes a personal loan ideal for wedding-related expenses. The loan amount is flexible The expenses incurred for a wedding can vary. You cannot determine the exact amount you need to organise a wedding. To aid this, Piramal Finance offers flexible loan amounts. As a borrower, you can get marriage loans ranging from Rs. 1 lakh to Rs. 10 lakh. It makes it easier for you to access funds when they are needed. You do not need to liquidate assets Many times, people spend all their savings on marriage expenses. In addition, many others put their property up for mortgage or break investments. If you want to finance your dream wedding, you don’t have to liquidate your savings or investments. You can take a personal loan from Piramal Finance. The repayment tenure is flexible Piramal Finance offers flexible repayment plans. The loan tenure ranges from 1 to 5 years. Therefore, you can apply for both short-term and long-term loans. The loan tenure is decided based on your application and the principal amount. Minimum documentation is required The application process is simple and convenient. You need minimal documentation when applying for a personal loan for marriage. You choose to apply for a personal loan for marriage online. Most lenders offer the option of submitting all the needed documents by scanning them. There is no need to visit any offices. There are zero prepayment charges A big problem with repaying loans is the hefty charges. Many personal loans do not have prepayment charges. This allows you to pay the principal amount and interest beforehand. You get a pocket-friendly EMI Paying large sums in EMI is one of the more difficult things to manage. Many lenders offer pocket-friendly EMIs. Through this, you will have the option to choose the EMI amount based on your payment capacity. However, remember that the loan tenure changes as you change your EMI. How do you decide how much to borrow for marriage? There are certain factors to consider before applying for a Piramal Finance personal loan for marriage. What is the marriage size? Before applying for a personal loan for a marriage, understand what kind of wedding you are planning. You can have a small wedding, a large wedding, or a destination wedding. Understanding the size of the wedding will give you an overview of the total expenses you will incur during the wedding. What is the marriage budget? Marriage cost and budget are important factors when considering getting a personal loan for marriage. A well-mapped-out budget covers the cost of necessities like the location fee, clothing, food, entertainment, rings, photographers, etc. You have to determine how much you can borrow for the wedding. What are the eligibility criteria? There are eligibility criteria you have to meet when applying for a personal loan for marriage with Piramal Finance. These criteria include; Your age needs to be between 21 and 66. You have been stably employed for at least a year. You will need the following documents with your application for a personal loan for marriage: identity proof, address proof, a bank statement for the previous eight months, and two latest salary slips. Your credit score should be more than 750 when applying for a personal loan for marriage. Which documents do you need to submit when applying? Below are some of the documents you have to submit to apply for a personal loan for marriage: Photocopy of your PAN card Identity Proof (any 1): Passport, driving license, Aadhaar card, voter ID Address Proof (any 1): lease agreement, passport, driving license, Aadhar card, voter ID, or utility bill (not more than three months old). Income proof: last salary slip; bank statement for the previous three months. Apply with a co-borrower if you want to borrow a large sum. If you are applying with a co-applicant, you need to submit all the documents given above for the applicant you add to the loan. [B-02] Conclusion Your decision to finance your marriage ultimately depends on personal preferences. Personal loans for marriage are convenient mainly because they allow you to have your dream wedding with affordable EMIs. Using this option, you can afford a better wedding without stressing over a tight budget. If your dream day is coming and you do not have the funds to cover the cost of your wedding or marriage, you can apply for a personal loan. Applying for the Piramal Finance personal loan is the best option. Learn more by visiting the website now!

08-11-2023

Home Loan

Complete Guide on How to Refinance Your Home Loan in 2022

What is home loan refinancing? When a person decides to refinance their loan, they choose to replace their existing loan with another loan that is frequently offered by a different provider. There can be many reasons that a person chooses to refinance their housing loan, but the main reason people do it is that they find better terms elsewhere. The refinancing process entails paying off the existing loan’s monthly due and shifting to the new payment structure and schedule of your new lender. This often results in the person having to pay loans at lower rates or pay them off faster as compared to their previous loan. [B-01] How does home loan refinancing work? Let’s say you had taken a housing loan of Rs. 50 lakhs at an 8% interest rate to be paid off in 20 years. Accordingly, you will get an EMI schedule that will give you the details about how much you need to pay every month as the principal amount and the interest amount. If, after a few years of paying your loan EMIs, you notice that there is another bank or lender who is offering a lower rate of interest on housing loans at 6.5%, then you can choose to shift to this new lender. Assume you paid off your old loan in 4 years and paid a total of 10 lakhs. So the remaining amount you have to pay is Rs. 40 lakh. Now, to refinance your loan, you will take a loan of Rs 40 lakh from the new lender, use that money to pay off the old loan, and then start paying the new EMI schedule. In this way, you will be able to save a lot of money by paying less interest on the amount you borrowed, and you will have the ability to pay off your loan faster. When should you refinance your home loan? Listed below are some of the main reasons why you should consider refinancing your loan: When other banks or lenders are offering a lower rate of interest – Refinancing your housing loan is a smart choice when you see that other loan providers in the market are offering a better rate of interest than you are currently paying for. When you can’t change your rate of interest from fixed to floating rates or vice versa – When you take a loan from a lender to pay off the amount of your house, the lender will often provide you with the option to pay interest at a fixed rate or a floating rate.A fixed rate of interest is one in which a certain percentage is determined in advance and is the amount of interest you must pay throughout the repayment period. A floating interest rate is volatile and will keep changing as per market conditions. So some months you might have to pay more interest, and in other months you will be paying less. Depending on the economic situation of the world and the country you reside in, a floating interest rate can be beneficial or harmful to your repayment terms. But if you are in a situation where you see that the floating interest rate in the market is less than the fixed interest rate of your home loan, then you decide to refinance it from a different lender.Similarly, if you notice that the market conditions have not been good and that you are ending up paying quite a lot because of high floating interest rates, then you can choose to refinance your loan with a provider who is offering a lower fixed rate of interest. Increase in your credit score or income – Another situation when you should look to refinance the loan for your home is when your income has increased consistently and you have made a good credit score for yourself. In such cases, you can negotiate with your existing loan provider to lower the rate of interest or shorten the duration of the repayment term so that the total amount you have to pay in the end is much less. If your existing lender does not agree to renegotiate, you can approach other lenders to do the same. When you need an additional loan – Another instance when people look to refinance their loan is when they need an additional loan. This is ideal to do when you have been paying off your existing loan comfortably for many years and will continue to do so for the rest of the repayment period as well. But now you also need a loan for a different purpose. Then you can take out a new loan by pledging your house as collateral. This may also help you obtain a larger loan because the value of your home will have increased over time. When you are not satisfied with your lender’s service – Another reason that you may decide to refinance your loan somewhere else is that your existing lender is not providing you with good service. Things to check before refinancing your home loan Before you go ahead and find a lender with whom you will refinance your loan, here are some things you should keep in mind: Compare your existing loan and the new loan – Before you switch to a new lender, always use an EMI calculator and figure out the specific details of how much you will have to pay as compared to your existing loan. Loan closing fee – When you decide to close a loan with your existing lender, they will often have a processing fee that you have to pay to close and refinance your loan. This can be 1%, more, or less, depending on your provider. You should weigh the impact of this closing fee on the overall amount you will pay in the end and decide whether you should refinance your home loan or not. [B-02]

08-11-2023