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How Working Capital Loan Can Boost Your Business?

Working capital is an integral part of running a business, whether big or small. Maintaining a positive balance, which is lesser liabilities compared to current assets, is what a healthy business aims at. Failing to maintain the balance may lead to deficits that, if accumulated, may become hard to pay back. To avoid such circumstances a working capital loan from PCHF can be the best solution. Look at how working capital can help boost your business. [B-01] Continuous Cash Flow Businesses, whether established or start-ups require a continuous cash flow to cater to the basic requirements of business such as salaries of employees, rent, inventory, mortgage payments and others. Opting for capital financing, ensures that your organisation has a continuous cash flow to meet the above demands and thus help it sustain even in times of lows. Support During exigencies At some point in time, you may face emergencies, which may not be under control. Natural calamities, accidental disasters, economic slumps and recessions may affect your business. It is important to stock up your inventory to meet the demands of your consumers during such critical junctures. Taking resort to a small amount of working capital loan can help you keep your business running seamlessly without having to shell out in bulk to purchase the additional stuff. Meeting Customer Needs Making promises that you fail to keep just because you do not have your customers’ favourite items in stock can have a negative impact on your business. Why let that happen when you can prioritise and hoard the popular inventory beforehand to meet customer demands throughout the year? Capital loan helps you maintain the high quality of your products, while meeting the seasonal expenses by keeping a stock of inventory during peak seasons. Clearing Debts Running a business is not an easy task and accumulating on debts makes it harder to pay off. Opting for a working capital loan can help pay off your dues smoothly without having to incur huge expenses and falling into a debt trap. You can pay off the loan in easy monthly instalments. Carrying out Marketing Campaigns The online cosmos has turned out to be a shoppers’ hub and if you want to boost the sales of your business, the best way to go about it is to spread the word through online marketing campaigns. It will not cost you a bomb, and you can easily obtain the amount from your business loans. Boost Creditworthiness The way you prudently and efficiently manage your working capital is a sign of your creditworthiness. Investors and prospective customers take into consideration good creditworthiness as a sign of effective business operations and robust financial health. This can also lead to lower interest rates at higher amounts of finance. Helps mitigate Unexpected Expenses and Financial Crunches Business comes with unexpected expenses for which you may not be prepared. Sudden fixes of equipment, purchasing machinery or inventory, hiring professionals for specific work may well be managed with business loans that give a capital flow without making you feel broke. Even during periods when you are going through a financial crunch, especially with the economy undergoing a downfall amidst the pandemic, taking resort to working capital loan can be the ideal bet. With Capital financing from PCHF, you can get a fast and steady flow of capital at nominal interest rates and focus on growing your business to its optimum potential. [B-02] Summary Businesses are bound to go through difficulties. However, it is not wise to quit your dream. For a business to run smoothly at all points in time, it is essential to have constant cash flow to cater to the basic requirements. This is where working capital loans come in handy. Quick, easy and convenient to obtain, capital loans from reputed companies like PCHF can help tide over uncalled for expenses, while aiding in business expansion without much hassle.

08-11-2023

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What Is Home Loan Balance Transfer

Have you ever considered switching out your home loan provider for a different one? Perhaps you noticed a lower rate of interest advertised, or maybe the coverage offered fits your preferences better. It is the protocol to research the best home loan options when buying a policy, but sometimes, you might just want to change lenders since you get a better deal. This is exactly where a home loan balance transfer comes in. [B-01] What is a home loan balance transfer? A home loan balance transfer is the refinancing that happens when you switch your home loan lender. As a borrower, once you match the required eligibility to transfer your home loans, you can switch as you see fit. The most common reason behind people opting for a home loan balance transfer tends to be a more attractive rate of interest. The following scenarios detail when a home loan balance transfer is recommended: Reduce costs: It might be tempting to transfer lenders when looking solely at the chance of getting a lower interest rate. However, note that there are costs to switching out your home loan. Look at the total benefits involved and consider the overall costs of switching your home loan. When benefits are higher than the costs, you should consider switching your loan policy. When you are far from approaching the end of your policy tenor: If your policy is reaching the end of its tenor relatively quickly, such as within a matter of months, it would be unwise to switch lenders. In case your home loan is in its initial few stages, a balance transfer is considered advisable. When the unpaid home loan amount is high: Is the majority of your loan amount still unpaid? In this scenario, opting for a lender at a lowered rate of interest is probably advisable. This implies that you will get to pay the remainder of your loan at a more attractive rate of interest. What are the benefits of a home loan transfer? A home loan transfer comes with a host of benefits. Lower ROI: The most obvious and attractive benefit is the fact that the interest rate is lowered. This is also the primary reason why borrowers opt for a home loan transfer. A lower rate of interest can reduce the EMI as well as the eventual cost of the loan. Longer tenor or reduced EMIs: Another key reason why borrowers opt for a home loan balance transfer is the lowered rate of interest offered by a different lender. Lower interest rates reduce the EMIs, and eventually the overall loan cost. Top-up option: Sometimes you might need extra funds to cover a large project such as a home renovation. If your current home loan amount doesn’t suffice, a loan transfer could enable you to receive a top-up facility. Other benefits: You might find that your new lender offers more benefits which prompted you to switch. These benefits could be more flexibility and affordability. [B-02] The Bottom Line A home loan transfer is considered a good decision in circumstances where you wish to reduce your EMI costs, get a lowered rate of interest, and generally save money on your loan repayment. You can even consider the highly flexible home loans options available on Piramal Finance. You get hassle-free processing, and simple repayment terms for loans that serve your needs.

08-11-2023

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All About Top-Up Loan

Making your financial dreams come true can sometimes require a helping hand. Whether you're renovating your home, starting a business, planning a lavish wedding, or pursuing any other lofty goal, having the requisite funding is essential. When it comes to loans taken for housing purposes, your long-term goals can change. Perhaps you took out your loan five years ago and now wish to renovate your house. What should you do if the loan amount doesn’t suffice? This is where a top-up loan comes in. What is a top-up loan? A top-up loan is an additional help on top of a pre-existing loan provided by banks and financial institutions, which can help you fulfill your goals through extra financial aid. Specifically, a top-up loan works by being added over and above your home loan amount. Similarly to how you top-up your mobile balance when you run low, banks offer a top-up facility over your current balance. Most lenders offer a top-up facility. If your lender does not allow you to top-up your home loan, you can transfer to a lender offering this facility. Let’s understand how a top-up facility will work well using the aforementioned example of home renovation. Let’s say you took out a home loan of ₹50 lakhs payable over a ten-year period. Five years into your loan repayment, assume your outstanding principal on this home loan is ₹28 lakhs. However, this amount might not be enough if considering a major home renovation. You have multiple options. You could purchase a fresh personal loan to finance your renovation or opt for a top-up facility. In most cases, the top-up facility would be the cheaper option. Features of top-up loans: Top-up loans have the following characteristics. Use the following pointers to determine whether they are worth considering. Eligibility criteria: Similar to how a loan has to be approved by one’s lender, a top-up loan is not available to everyone who has availed of a home loan from a bank. Several factors are looked into by one’s lender before they decide to grant a top-up loan. For instance, the borrower’s ability to repay in timely installments is assessed by their credit score. This can be seen through the repayment of the previous home loan. If the borrower’s credit report is favorable, the bank will grant them the top-up loan. Processing fees: Usually, opting for a top-up loan isn’t free. Processing fees are applied to the top-up facility. Sometimes, the financial institution might be open to waiving the fee. Check with your lender beforehand about any processing fees for the top-up loan. Tenor: A top-up loan is usually given for the remainder of the pre-existing loan’s outstanding period. If your home loan policy has a remaining four-year tenor of 4 years, the top-up facility must be repaid within this tenor. However, the tenor can be different across lenders. Rate of Interest: The interest rate applied to your top-up loan facility will likely be slightly higher than the rate applied to your pre-existing home loan policy. However, the top-up loan interest rate is more attractive compared to the high interest rates applied on personal loans. Purpose: A top-up loan can be utilized to construct or modify your house. You can also use it to cover personal expenses, like funding a child’s education. However, note that you cannot utilize a top-up loan for any speculative purposes. [B-02] Conclusion A top-up loan can be exactly what you need to fund your home’s renovation. It is added over and above your pre-existing home loan policy and can be cheaper than taking on a separate personal loan.

08-11-2023

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Difference Between Home Loan And Loan Against Property

Easy accessibility of loans and a wide range of home loan products have made life easier for the borrower. But sometimes the variety of options can make it a bit tough to decide which loan to go for when you are planning to apply for a loan. A case in point is when deciding between a loan against property and a home loan. Most people confuse these two different types of loans and use their names interchangeably. Apart from the fact that both of these loans are secured in nature. Both, a home loan and a loan against property are different when it comes to their usage, interest rates, tenor, LTV ratio, and processing fees. [B-01] What is a Home Loan? A home loan is the amount of money borrowed by an individual from a lender such as banks or NBFCs to purchase a house. The loan amount and interest are repaid to the lender in form of EMIs over a period depending upon the tenure of the loan. The type of property for which a loan is taken could be a ready-to-move-in house or a vacant plot of land or an under-construction property. A home loan can be taken for both, personal and commercial property. It is a secured loan because the lender takes the property as security for a home loan. In case of default in repayment of the home loan, the lender can take possession of the property and sell it off to cover losses. What is a Loan Against Property? A loan against property is a secured loan taken against your residential or commercial property. A loan against property is preferred by many borrowers because it provides a high loan amount at low interest rates as compared to personal loans. If you have a property in your name and can provide documentation that establishes your ownership then you are eligible for a loan against the property. It can aid in fulfilling a variety of your financial requirements and has become a go-to option in recent times for most people. Home Loan vs Loan Against Property Listed below are some key factors which highlight the difference between a home loan and a loan against property. UsageOne of the major differences between a home loan and a loan against property is the usage of a loan. A home loan is used to purchase a commercial or residential property such as a ready-to-move-in apartment, property under construction, or a plot of land on which the borrower intends to build his/her home. A loan against property is more versatile in nature and can be used for buying a property or meeting fund requirements arising because of personal reasons such as growing your business, a medical emergency in the family, or funding your child’s education, etc. Interest rateA home loan interest rate is slightly lesser as compared to the interest rate offered for the loan against property. One reason could be the effect of the government of India’s Pradhan Mantri Awas Yojana initiative which aims to make housing affordable for all. Another reason for this difference in interest rate is that the chances of defaulting on a mortgage loan are higher in comparison to a home loan. LTV ratioLTV ratio or the Loan-to-value ratio is a risk assessment methodology a lender employs to understand the lending risk. Higher the loan assessment LTV ratio, the higher the risk associated with that loan which can lead to higher interest rates levied by the lender. For a home loan, the loan amount sanctioned can go as high as 90% of the property’s market value. In the case of a loan against property, after the lender’s evaluation, the maximum amount sanctioned can go as high as 60% of the property’s market value. Tax BenefitsUnless used to buy another property there are no tax exemptions that can be availed on a loan against property. On the other hand, various tax exemptions can be availed on a home loan under Section 80C and Section24. [B-02] Bottom Line Even though a home loan and loan against property may sound similar to new borrowers, they differ in the purpose they serve. A home loan is what you need if you are thinking of buying a property be it commercial or personal. But if you are planning to take a loan for fund requirements that go beyond purchasing a house, a loan against property would be a good option.

08-11-2023

Tips & Advice

Should You Consider Getting Home Loan

A home of our own is one of the major life milestones for most of us and has often been regarded as a measure of success in life. It is perhaps one of the biggest ambitions of the Indian middle class. Ever rising inflation and soaring property prices made it a distant dream for a long time. But the recent dip in interest rates, affordable housing loan options, and hassle-free loan processing has once again ensured this dream remains within the reach of a common man.Whenever you plan to buy your own home, the first question that comes up in a dinner table conversation is whether you should consider getting a home loan. A home loan for beginners can be a tough question to answer. Though it may seem easy at first, getting a loan approval can be a laborious task. [B-01] Here are a few key factors that you need to keep in mind before you sign on that dotted line. Eligibility Criteria Irrespective of the type of loan you are applying for, it is wise to consider and understand the eligibility criteria of the financial institution from which you wish to get the loan sanctioned. The eligibility criteria and chances of loan approval are dependent on various factors such as the monthly income of the borrower, the number of dependent members in the family, existing liabilities, if any, and whether you are a salaried or a self-employed individual. A salaried employee with a stable income, no liabilities, and a lesser number of dependants would have higher chances of loan approval as compared to a self-employed borrower with inconsistent income and multiple dependants. It is prudent to keep the above points in mind while applying for a housing loan. Credit Score Whenever you apply for a loan with a bank or any financial institution, the first thing that a lender checks is the borrower’s credit score. A credit score is a good indicator of a borrower’s repayment capability and a high credit score usually means a lower interest rate. The creditworthiness of an individual is directly proportional to his/her credit score, it contains the track record of an individual’s repayment of existing loans or bills and dues. A good credit score usually aids in getting approval for the loans and also improves the chances of getting a lower interest rate. Loan Tenure Loan tenure usually varies based on the profile of the borrower and the amount of home loan sanctioned. Loan tenure for a housing loan is a period for which the lender has sanctioned the home loan amount and the borrower is responsible to repay the amount along with the interest. The majority of banks or financial institutions provide loan tenure up to 30 years depending upon several factors such as the age, financial history, and financial obligations of the borrower. A longer home loan tenure usually means that the EMIs are spread out and hence the monthly installment amount is lesser but on the other hand a shorter loan tenure would mean a lesser amount of interest paid to the lender. So while considering the home loan duration, it is advisable to keep in mind the EMIs affordability which ideally should be less than 50 percent of an individual’s monthly income. Home Loan Amount While a home loan amount eligibility is dependent on several factors, it is advisable to keep the cost of the house within 5 times your annual income. This helps in keeping the EMI repayment easier without affecting your monthly household budget. [B-02] Bottom Line At the end of the day, owning a home is a dream of many. In the current low-interest regime, a home loan has become much more accessible and affordable. But before you take a plunge in these waters, it is imperative to be aware of how a home loan works to avoid any surprises at later stages.

08-11-2023

How To?

Tips To Reduce Your Home Loan EMI

If you have already taken a home loan, your EMIs must be debited every month. If you don’t have an existing loan and are planning to apply for a housing loan, it is important to know that you will be liable to make monthly EMI payments until your loan is completely repaid. For many people, EMIS takes up a majority of their monthly budget. In this article, we will have a look at how you can reduce your home loan EMI most efficiently. Tips To Reduce Home Loan EMI You can reduce the EMI of your housing loan in many ways. Here are 6 effective ways to reduce your monthly home loan EMI. Transfer Your Loan To a New LenderThere: Several banks and lending institutions offer home loans. These lenders offer different benefits, such as home loan interest rates, tenure, fees, etc. So, if you have an existing home loan with a lender who charges a very high interest rate, you can transfer your home loan to a different lender that offers a lesser interest rate. Reduce home loan interest rate to pay lesser monthly EMI. Most home loans are offered on a floating interest rate basis and have no penalty on transferring your loan. So, the only cost that you will have to bear is the fee that is charged by the new lender. Change From Fixed To Floating RateIf you opted for a housing loan with a fixed interest rate, you are more likely to pay a higher home loan EMI than required. So, opt for a floating interest rate as lenders usually charge about 1% to 2% higher with fixed interest rate home loans. Extend Your TenureIf you are not in a financially sound position to pay high EMIs, you can opt for an extension of your tenure. This can help you stretch out your payments over a longer period of time. It can also help lift the pressure of paying higher EMI and provide you with some relief. For example, if you have to repay ₹40 Lakhs at an interest rate of 7.5% over a period of 10 years, then your EMI would be higher when compared to a tenure of 20 years. With a tenure of 10 years, you would have to pay ₹47,481. Whereas, with a tenure of 20 years, you would only have to pay ₹32,224 every month, which is ₹15,257 less than the EMI you have to pay on a 10-year tenure. Make Use of Loan RestructuringThe Reserve Bank of India (RBI) provides the option to restructure loans. This initiative was introduced during the pandemic when many could not pay their EMIs. In response, the RBI allowed borrowers to opt for a moratorium, with which they could waive their home loan EMI for a certain period of time and restructure the loan accordingly to a suitable repayment schedule later. Switch to External BenchmarksThe Reserve Bank of India introduced external benchmarking to bring in a more transparent and standardized methodology. All banks are mandated to adopt external benchmarking when it comes to retail loans and MSME loans. However, banks also have the option to extend the method of benchmarking to other loans, such as home loans. Switching to a bank that follows external benchmarking for home loans can help you avail of a floating interest rate and save on your financial expenditure. [B-02] In Conclusion While availing of a home loan, it is important to be consistent with your home loan EMI repayments. If your EMI payments are high, there are plenty of ways to reduce your home loan EMI. It is wise to research before choosing a home loan so that you can pick one that offers the best home loan interest rates so that your EMI payments stay affordable. If you are looking to apply for a home loan, Piramal Finance can help you plan your home loan.

08-11-2023

How To?

How To Get Commercial Loan?

Starting a new business is an enormous task but sustaining in the market is even more difficult. Ensuring the flow of the capital required for the functioning of the business can take a lot out of you. A commercial loan for business is a great enabler for business owners to fund their capital requirements arising because of a variety of reasons. Whether you are planning to buy new machinery, looking for funds to cover the unexpected operation costs, or planning to expand your business. Whatever be the need, a commercial loan can aid you in taking care of the expenditure. In this blog, we will discuss how to get a commercial loan to fulfil the business cash flow requirements and the benefits of getting a commercial loan. But first, let us understand what a commercial loan is and how it works. [B-01] What is a Commercial Loan? In simple words, a commercial loan is a loan given to a business by a lender. A lender can be a bank or a Non-Banking Financial Corporation (NBFC) in India. A business owner can be anyone looking to grow their existing business or planning to start a new business. A commercial loan is given to a business entity and not an individual. The entities that are eligible for a commercial loan are a Limited Liability Partnership, Sole Proprietorship, Public or Private Limited Company. Benefits of a Commercial Loan There are several benefits of availing commercial loan options to fulfil your business capital requirements. Here are some of the key benefits Grow your business – The next best thing to starting your own business is when you decide to expand it. A commercial loan can aid small and medium business owners to take this step without worrying about the fund requirements. Expanding your business requires capital apart from the working capital required for the existing setup. A commercial loan supports those small and medium business owners with limited capital to grow and reach out to their audience while ensuring the smooth functioning of day-to-day operations. Buy new machinery – A commercial loan can be availed for a variety of purposes. If you are in a manufacturing business you might need to buy a new piece of machinery or to upgrade the old one to maintain smooth operations and to increase production. An equipment financing option as a commercial loan can help you in getting the right set of machinery to help you maintain the smooth operations of your business. Manage inventory – Small and medium businesses usually work on a need basis but sometimes when your business gets a big order it is best to have raw material readily available to meet the deadlines. A commercial loan can help you get the funds required to buy essential inventory. Increase working capital – Working capital is the amount required to take care of the day-to-day fund requirement of the business. A commercial loan helps you maintain the capital required for daily activities and to meet unexpected expenditures. How to Get a Commercial Loan A commercial loan can be easily availed online through web portals of banks or NBFCs. Any business entity with a good turnover is eligible for a commercial loan. The definition of good turnover can vary based on the lender. Applying for a loan has become much simpler these days; the majority of financial institutions require very little paperwork. All you have to do is visit the lender’s office or fill out an application form online. Based on your application and eligibility, most lenders approve loans within a few days. The commercial loan interest rates depend upon the creditworthiness of the business, cash flow, bank or NBFC, turnover of the company, etc. The commercial loan interest rates tend to vary based on the risk assessment done by the lender. [B-02] Conclusion The number of entrepreneurs in India has risen over the past few years. The entrepreneurial spirit is on the rise, and so is the number of new companies being registered around the country. One thing that is vital for any business to survive and flourish is the capital required for running the business. A commercial loan gives easy access to capital to meet your fund requirements. Whether you are just starting your business or planning to grow an existing one, a commercial loan can help you meet your capital requirements.

08-11-2023

Tips & Advice

Top 6 Mistakes To Avoid While Taking A Business Loan.

One of the most important requirements to run a business is capital. Finances are required to fund the different requirements of a business and ensure that it remains operational without any hassle. Small businesses, in specific, have a greater need for finances to bootstrap their business. Most often, small businesses have lesser funding and thereby require greater support in the form of a business loan. Business loans can be beneficial to fund different financial needs such as operational costs, expansion, scaling, buying equipment, furniture, renting out an office space, providing salaries to employees, and others. [B-01] While applying for a business loan, it can be beneficial to verify the eligibility criteria. Different lenders may have different eligibility criteria. So, it can help to check for these requirements so that you can ensure that you adhere to them. In addition, it can also help you improve the chances of having your loan application approved. Another aspect to check for is the interest rate. Understanding the different rates of interest offered by different lenders can help you compare the options and arrive at the most suitable option for you. Having a lower interest rate can help reduce the financial burden during your loan repayment process. While checking for these aspects can be beneficial, there are certain mistakes that you should avoid. 6 Mistakes to Avoid While Opting for Business Loans There are a few mistakes that you should avoid while applying for a business loan. Let us have a look at the 6 most common mistakes that you should avoid. Minimizing Expenses and Inflating IncomeBy inflating your income and minimizing your expenses, you would be providing a false sense of business finances to the lender. So, ensure that you accurately provide your cash inflow and outflow to the lender so that they get an accurate picture of the flow of finances in your business. Many business owners tend to mix up their numbers thereby reducing their chances of getting the amount of capital that they require. Applying for the Wrong LoanIn many cases, business owners tend to apply for incorrect loan. Given that there are a variety of loans available for small businesses, it is natural for people to get confused. Small business loans may suit some companies while it may not be the best choice for the others. So, it is key to research the available loans and identify the best fit based on the nature of the business, interest rate offered, tenure, fees and charges, terms and conditions, repayment options, and others. Incomplete DocumentationThe documentation requirement is one of the most important requirements that has to be fulfilled accurately. In general, loan applications can be lengthy. Each loan application has a certain set of documentation requirements for an individual based on their employment, age, and others. Submitting incomplete documentation can prolong the loan process and delay the disbursement. Having Poor Credit Score While applying for any type of loan, one of the key aspects verified by the lender is the credit score of the applicant. Having a good credit score can help you avail a business loan with the required capital. Missing DetailsNot providing all the relevant and required details can delay the loan application and verification processes. All of your business information has to be thorough before submission. Many lenders may require more than just a business plan in order to understand your growth. So, have a thorough set of documents. Lack of CollateralWhile applying for a business loan, it can be beneficial to have collateral. In case the capital you require is beyond a certain level, it can help to provide a collateral to receive this capital. [B-02] In a Nutshell A business loan can provide you with the required finances and help your business thrive. You can apply for an online business loan by starting an application form and submitting the required documents. It can be beneficial to have all of your business details, documents, credit score information, and other documentation ready.

08-11-2023

Tips & Advice

10 Important Tips To Consider Before Taking A Home Loan

Buying Home Loan Property is a valuable asset that can provide you with a variety of financial benefits. Whether you want to buy a property for investment purposes or to discover a new home, the financial sector offers a variety of lucrative and useful lending options. If you’re short on cash or don’t want to liquidate your savings, a housing loan is a terrific way to get some help. [B-01] Financial institutions assist you in realising your dream of owning a property by offering low monthly payments and the flexibility to choose your repayment term. But, before you apply for a house loan, consider these helpful home loan tips that could make the application process go more smoothly and simplify loan repayment. Financial institutions assist you in realising your dream of owning a property by offering low monthly payments and the flexibility to choose your repayment term. But, before you apply for a house loan, consider these helpful home loan tips that could make the application process go more smoothly and simplify loan repayment. 1. Investigate your loan options Make an effort to perform extensive research on the possibilities available in the market before applying for a home loan, especially now that information is readily available on the internet. Your study should also contain the three most important aspects of a loan: down payment, EMIs, and repayment period. By conducting research on these three aspects before to submitting your house loan application, you will be able to select a suitable home loan from a better lender with lower interest rates. Home loan amounts are also typically higher than other loans, so make sure you look into all the specifics and uncover all the nitty-gritty before, during, and after the application. 2. Strive for Cost-Effectiveness While there are many different types of home loans to pick from, you should keep in mind that affordability is a major element to consider before applying. Consider overhead charges in addition to the EMI you choose to pay each month, and keep a consistent income outflow in case of an emergency. Hence, while you may always choose to buy a house that you want in a location that you prefer, being able to finance the home loan is as critical. 3. Spend with caution The affordability requirement is immediately followed by the monthly expenditure clause. Once you have a home loan to repay, sticking to a strict budget to meet your equated monthly instalments is preferred and suggested. To preserve trust and avoid an overdue or increased interest rate, you must pay your EMIs on time. Avoid spiralling into non-payment of a house loan by directing your resources into regular and timely loan repayment in order to achieve complete ownership of your home. This includes being cautious with your money and deferring any non-essential expenditures. 4. Select the Most Appropriate EMIs The amount of the equated monthly instalment is determined by you. Banks provide a variety of EMI choices to meet the needs of different borrowers. EMIs are also greatly influenced by the amount of money you put down on a house when you buy it. The lower the stress of the outstanding amount being converted into EMIs, the larger the down payment. 5. Tenure of Repayment The length of time it takes you to repay the loan is referred to as your repayment term. The repayment period and your EMIs are inextricably linked. While choosing a longer term may result in lower EMIs, it also raises the interest rate charged, causing you to pay double or triple the original loan amount due to high interest. If you have a steady and increasing income and stick to a strict budget, a short payback period with higher EMIs is preferable. The interest rates on these types of loans are much lower to encourage rapid payback. Banks can provide appealing interest rates to customers who choose a shorter repayment period. 6. Keep your CIBIL score up to date Maintaining a good credit score is a must when applying for any type of loan in the banking industry. Regularity pays off, whether it’s a cyclical credit card payment or a loan payback. If your CIBIL Score is above 750, you may be able to get even better interest rates on your home loan. This is accompanied by a much larger likelihood of faster loan processing and disbursal. 7. Understand the Foreclosure Norms Keeping a close eye on the shifting RBI rules could be beneficial to you on a number of levels. You avoid paying any additional fees by foreclosing your home loan by repaying the outstanding amount sooner than the agreed-upon time. The sooner you pay off your debt, the better your credit score will be. 8. Checking Your Eligibility for a Home Loan Before applying for a house loan, it’s critical to double-check your eligibility. The value of documents relevant to your credit history cannot be overstated. Many institutions, such as Piramal Finance, provide home loan eligibility criteria on their websites. 9. Charges Not Included Aside from the EMIs, banks may charge borrowers administrative, processing, or service fees at the time of loan application. Make sure you discuss this with the lender before applying for a loan. Check whether the charges are one-time or monthly; if they are monthly, they must be taken into account with your EMIs, and your monthly budget must be arranged accordingly. 10. Please take time to read the documents thoroughly Examine the agreement papers thoroughly to gain a thorough understanding of the loan application. We offer aided loan services at Piramal Finance. However, for your satisfaction and long-term mutual trust, it is required that you read all required documentation before signing the loan contracts. [B-02] In A Nutshell With property prices soaring and the market’s high interest rate regime, purchasing a home becomes an important decision for many of us. As a result, choosing the correct house loan product on the market becomes vital in order to avoid any unpleasant surprises later on.With all of the aforementioned considerations in mind, obtaining a house loan becomes a lot easier.

08-11-2023