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Personal Loan

What Are the Steps to Calculating a Car Loan?

The cost of borrowing money to buy a car is referred to as auto loan interest or Car Loan interest. The lender will base its interest rate on your credit score, debt-to-income ratio, and other factors. To create your budget, you should know your interest rate and how much money goes toward your monthly loan balance. Car Loan EMI includes the principal and interest payments on your car loan. The amount, rate of interest, and period primarily determine the EMI. The longer the period, the lower the EMI, but you will pay more interest to your lender. [B-01] What Do Auto Loan Calculation Formulas Include? The key factors in the calculator for a car loan are the interest rate, loan size, and loan term. A larger loan will result in a higher monthly payment. A smaller loan will result in lower payments. Higher interest rates result in higher monthly payments than lower interest rates. A loan with a shorter term will have a higher monthly payment than a loan with a longer term. When looking for the right loan for your monthly budget, you can adjust these three factors to find the best balance for your needs. Car Loan EMI Calculation Methods You can calculate the EMIs on your car loan in two ways: online or manually. Method 1: Using an Online EMI Calculator for Car Loans Visit the lending institution’s car loan EMI calculator page. The monthly EMI you must pay will be displayed instantly after entering the information mentioned above. Method number 2: Use a manual EMI Calculator for Car Loans This is the formula for a calculator for a car loan: E = [(1 + R) N – 1] [(P x R x (1+ R) N)] where E denotes Equated Monthly Instalment, P is the principal loan amount, R is the interest rate, and N the number of months These three variables are changeable. This means that the EMI value will change whenever one of the three variables is changed. The following are the five advantages of using an EMI calculator for a car loan : Simple to use Quick results It saves time and energy that would have been spent on manual calculations. It assists you in determining how much your car loan EMI will be. Advantages of a Car Loan Flexibility in choosing a tenure Car loans are available for terms of up to seven years. This gives you the freedom to plan your finances and the convenience of choosing the tenure of your choice. Secured Loan Because a car loan is a secured loan, you are not required to mortgage your existing assets (secured against the car itself). Meaning until the loan is fully repaid, the lending institution or bank has a lien on the asset, giving it the authority to seize the asset and recover the debt by selling the vehicle. Loan Payment Options You can pay with post-dated checks or by auto-debit. Your EMI will be deducted automatically from your bank account. This will be when you use the auto-debit feature. Conclusion A car loan is a type of credit product offered by banks and other lenders. It allows you to finance the purchase of a car with a low down payment. The loan can be repaid in EMIs over time at an agreed-upon interest rate. Before applying for a loan, the car loan EMI must be calculated. A car loan calculator can assist you in calculating the EMI and interest payable on a financed vehicle. India is now the world’s fourth-largest market for four-wheelers. The figure demonstrates how car demand has risen over time. Many people desire a personal car, but the cost impedes purchase. A car loan can help you pay a low down payment and easily get your dream car. The remaining balance can be paid monthly at an agreed-upon interest rate. Dive into Piramal Finance articles for more such finance-related subjects here: [B-02] FAQs What If I Can’t Pay My Car Loan EMI? When taking out a loan, make sure you can repay it. Failure to do so will result in substantial fines from the lender. Your credit score will also suffer as a result. Suppose you are unable to repay the loan due to unforeseeable circumstances. In that case, you must notify the lender as soon as possible so options such as moratoria or a longer repayment period can be considered. What Is The Required Down Payment On A Car? Generally, the minimum down payment for a car loan is 10% of the car’s on-road price. This is because most lenders offer 90%, if not 100%, of the vehicle’s on-road price. However, if you make a substantial down payment, you will require a lower loan amount. Your monthly EMIs and interest rate will also be low. What factors influence your car loan EMI? Loan amount Interest rate Loan tenure Rest period once a month What exactly is EMI? The Equated Monthly Instalment (or EMI) is made up of the loan principal and interest. As a result, the EMI equals the principal amount plus the interest paid on the car loan. The EMI is usually fixed for the entire loan term and is repaid.

08-11-2023

Personal Loan

Popular personal loan myths you should ignore

Personal loans are very popular. They can be used for anything you want, such as financing a wedding, paying for college, dealing with medical emergencies, or paying off other debts. They are simple to get. The quick disbursement makes the entire process easy and painless. The popularity and advantages of instant personal loans are well known. However, some personal loan myths persist, and these common myths can be misleading. Read below for some common personal loan myths to avoid Personal loans are only used for personal reasons This common misconception causes people to avoid applying for personal loans. Most people believe personal loans are only for personal use because of their name. A personal loan can be used for almost any purpose, including medical emergencies, home renovations, child education, vacations, debt consolidation, and weddings. A low credit score equals loan denial Borrowers believe that a low credit score will result in their personal loan application being canceled. While your credit score is an important factor considered during personal loan eligibility evaluation, it is not the only criterion. Lenders also consider your income and loan repayment capacity. Only employees on a salary are eligible It’s a misconception that you can only apply for a personal loan if you have your pay stubs, offer letter, and company ID. Personal loans are available to self-employed people, private business owners, and NRIs. Indeed, some lending institutions make personal loans based on home rent income. You are ineligible due to a low credit score A low credit score reduces your eligibility for a personal loan. But it does not negate your chances of getting one. Some firms are willing to make loans to people with poor credit. If you take out a personal loan, you will also have a good chance of paying off your other debts. You improve your credit score when you repay your personal loan nicely and on time. The most expensive loans are personal loans This is one of the most common reasons people avoid taking out personal loans. A personal loan’s average interest rate (12%–16% per year) is lower than that of a credit card (2.5%–3% per month). Most people use their credit cards in an emergency. Now, it is simple to get a personal loan. When you need money, it is best to get a personal loan. You could also use seasonal offers and personal loan schemes. There are no tax breaks This is one of the most common Personal Loan Myths that prevent people from taking out a personal loan. Please keep in mind that a personal loan does not count as income. You can claim certain tax benefits when you use a personal loan for property construction or repair. You can also use the money for a down payment on a home and still claim tax benefits. The lengthy approval process You may have heard that applying for a personal loan entails a time-consuming application process. Also, there is extensive documentation, frequent bank visits, and so on. But this is a common misconception. On the other hand, personal loans can now be secured online, saving you time and effort. Quick personal loans are given by online lenders using cutting-edge technology. A personal loan requires the least amount of documentation. The lender sends a representative to your door to complete the documentation process. The loan is agreed upon in minutes; you can have it in your hands in less than three days. You can finish the entire procedure without leaving your house. Personal loans are only available from large banks or non-bank financial institutions. You've got it wrong if you believe personal loans are only available from top banks or NBFCs (non-banking financial companies). Smaller banks and other lending firms offer personal loans with lower interest rates. You cannot apply for a personal loan if you already have one. No rule says you can’t apply for a personal loan if you already have one. Lending firms check your repayment capacity when approving your loan. If various loans burden you, you can use the debt consolidation facility to combine many debts into one. Your personal loan application may be approved even if you have an existing loan as long as your repayment capacity is satisfactory to the lender. My loan is detrimental to my financial health Increasing your debt burden may not seem like a good idea if you already have many loans or are paying high interest rates. However, the notion that your financial stability fixes a personal loan is untrue. A personal loan can reduce your interest payment. Conclusion Personal loan myths already exist in our world. We cannot avoid them. But we can control how they are used. This means verifying before believing and moving forward after validating. If you want to apply for a personal loan but aren’t sure, contact the lending company; they’ll talk to you about it. Not a member of your family, a friend, or a co-worker. Clear your mind of any ambiguous thoughts. [B-02] FAQs Is it possible to close a personal loan in advance? Some banks have a 6-month to a 1-year lock-in period. While others allow you to pre-close your account even after the first EMI has been deducted. There may also be restrictions, such as using only your funds to pre-close a loan. Banks may provide free pre-closure or charge a fee. Please ask the bank’s loan advisor to clarify all these factors before signing the loan document. What loan terms do I have? The length would be fixed by your earnings and experience and could range from 12 to 60 months. Is it possible to track a loan application? Yes, you can choose this option. The facts will be shared via phone messages or emails, and it is also free.

08-11-2023

Business Loan

Collateral Free Business Loan for Traders

Traders bridge the gap between the manufacturer and the consumer. You’ve come to the right place if you need urgent cash with no collateral. Many banks and NBFCs provide collateral-free loans. Due to a lack of adequate funds, you may feel obligated as a business owner to tap into your own personal funds. You could also try to find a business loan. But, the prospect of having to pledge collateral may cause you to hesitate. This leads us to an important question. What exactly is collateral, and how does one get a Collateral-Free Loan? A collateral is an asset given to a lender by a borrower to secure a loan. When a borrower fails to make a loan payment, the financial firms that issued the loan have the right to seize the collateral. This is to recover any sustained losses. A business loan is a type of financial product that is only used for business purposes. Business owners and self-employed professionals can apply. Along with MSMEs (Ministry of Micro, Small & Medium Enterprises), others can also apply for bank loans. The loan proceeds are used for business expansion. It can be like meeting working capital needs, increasing cash flow, etc. Working capital loans, term loans, cash credit, and letters of credit are available. Loans under government schemes and bank guarantees are also available from financial firms. Loans for businesses without collateral are collateral-free loans. These are business loans with no collateral. Collateral-free business loans are simple to secure and provide borrowers with limitless opportunities. They not only assist us in meeting our firm’s objectives but also in meeting the needs of our customers. The loan amount and repayment period may exceed the needs of the business. Banks offer interest rates based on financial stability. They also consider credit history, repayment ability, firm tenure, and other factors. Trader Loan Eligibility Criteria for Collateral Free Business Loan The following are the eligibility requirements for a Collateral Free Business Loan : The applicant must be self-employed and work in the trading industry. The applicant must have at least 5 years of business experience. The applicant must be an Indian national of at least 22. The applicant must have at least an annual revenue of Rs. 10 lakh. A CIBIL score of 750 or higher is important. Lenders’ credit score needs can differ. The applicant must have an annual income of 2 lakh. The person must have operated a profitable business for at least two years. Features and Benefits of Trader for Collateral-Free Business Loan The following are some of the features and benefits of firm loans for traders: Collateral-free: Traders' loans can be secured without collateral. This means borrowers do not have to go through a lengthy application process to get credit. However, traders should remember that these loans do not have security or collateral. Hence, the interest rate will be higher. Flexible repayment terms: Traders can repay their Collateral-Free Business Loan over 36 months, and some lending firms may allow traders to repay their debts over 60 months. Quick and Easy Process: One can apply for a Collateral Free Business Loan online through financial markets. This means that a trader can apply for a business loan quickly. Most traders need them on an urgent basis. Minimal paperwork: Collateral Free Business Loans for traders can be acquired with few records. Applicants must share their personal and professional data, adequate identity, and proof of income when applying. The applicant will only need to share a few facts. The process of applying for a trader loan will not take long. Quick Approval and Disbursement: The lender has verified the data submitted with the trader loan application. The funds will be deposited into the applicant’s account as soon as possible. Collateral Free Business Loan funds are disbursed within three days of approval. Conclusion Traders are important links between consumers and manufacturers of goods. Companies or individuals who buy and sell goods can qualify for a collateral-free business loan. Trade loans help a firm by funding trade throughout its trading cycle. It is a loan with no collateral. Collateral-free loans are unsecured, so you can repay your loan on time. It considers your current income, cash flows, and the firm’s viability. [B-02] FAQs What documents are needed for a Collateral Free Business loan? When applying for a business loan, the following documents must be there : KYC Documents Application form filled out and signed by the customer Relevant financial records Bank account statement for the previous six months PAN card Business Evidence How much money can you get through Collateral Free Business Loans? An unsecured business loan of up to 1 crore can be secured. How much time does it take to get a business loan? It usually takes 48 to 72 hours for a firm loan to be disbursed into your account. What is the least loan amount for a collateral-free loan? The Coverage of Collateral Free Loans (CGTMSE) aims to provide collateral-free loans up to Rs. 200 lakhs (up to Rs. 100 lakhs for retail and wholesale trade) to Micro and Small Enterprises as defined by the MSMED Act of 2006.

08-11-2023

Personal Loan

How To Get An Instant Personal Loan Online In India

The way you bank these days is quickly changing. The process is becoming less paper-intensive and more timely. With the ever-increasing need for instant cash for medical crises, acquiring a vital asset, wedding or trip expenditures, automobile or house repair bills, or any unforeseen incident, the demand for rapid online loans is also expanding. Due to the fast application process and rapid processing period, an online instant personal loan is becoming more popular. [B-01] What is an Instant Personal Loan? Instant personal loans are unsecured loans made available by many banks and NBFCs with rapid approval, payout, and little to no paperwork. These loans are granted quickly without any collateral. Many lenders provide instant personal loans online in current times. Depending on your credit history, lenders often provide pre-approved loans to a specific group of current clients. As these loans are pre-approved, many lenders may provide them without additional paperwork. Features of an Online Instant Personal Loan Here are the features of an online instant personal loan: No Collateral Required These personal loans are unsecured. Thus, if you apply for an instant loan, you won’t need to provide any security. Quick Payment Applying for an instant loan is advised if you want money faster. Once your form is accepted, the cash will be sent to your account within no time. Quick Process Instant loans process far faster than traditional loans by a considerable margin. Flexible Loan Terms You are often given a flexible loan term when you apply for an instant loan. So long as you stay within the maximum loan payback time set by the lender, you may pick a payback period that suits your needs. Papers Needed for an Instant Personal Loan Online Application The papers required to apply for an instant personal loan online are listed below. Identity Proof: You must provide an Aadhar card, PAN card, driving license, or passport as proof. Address Proof: This includes utility bills such as energy, water, phone, or your passport. Photo Proof: A passport-size photo of you. Salary Slips: The most recent pay stubs from your workplace are necessary. Bank Statements: You must produce salary credited bank statements. Eligibility Requirements For an Online Instant Personal Loan You must fulfil the lender’s eligibility needs to get your loan form accepted. The following are the standard qualifying rules for applying for an instant loan: Credit Rating: To be eligible for an instant loan with a low rate, you must have a decent credit score. A credit rating of at least 750 is needed. Age All borrowers must fulfil the lender’s age limits. The age restrictions may differ depending on whether you are a paid employee or a self-employed person. Check the age criteria of banks/money firms that provide instant loans. Occupation Summary Most lenders provide instant personal loans to both salaried and self-employed people. How to Apply For An Instant Personal Loan Online Determine your eligibility and choose a personal loan plan Fill out a few simple pieces of data to see whether you qualify for fast loans and a credit line. A credit line is the maximum amount of money you may borrow from a lender. You may pick the loan amount after you have received your credit line to pick your loan plan and choose the optimal combination of loan lengths and EMIs. Upload your KYC papers You must attach a few papers to complete your KYC and have your loan approved. You must also sign the loan agreement and a NACH form to activate the EMI auto deduction. NACH, which stands for National Automated Clearing House, is a centralized web-based payment system for bulk money deals controlled and monitored by the Reserve Bank of India (RBI). The NACH form guarantees that you stay caught up on your EMI payments. The best part is that the whole thing is paperless. After uploading all the needed papers, you will get approval within two hours. Complete the process After the loan is confirmed and the application process is completed, the funds will be sent instantly to your bank account. Tips Before Taking An Instant Personal Loan Online Before you apply for an instant personal loan online, you should compare the loans provided by many lenders. When analyzing instant loans, you should keep an eye on the following factors: Processing Fee Most money firms and banks often charge users a one-time service fee. You will have to pay extra for your loan if you are charged a hefty processing fee. Default Penalty The lender may impose a default penalty if you do not pay your EMIs on time. As a result, it is vital to compare the default costs imposed by many lenders. Rate of Interest The interest rate imposed by a lender might impact the total cost of the loan. As a result, before going to a specific lender, check the rate at which the loan is given. Pay Back Flexibility Choosing an instant loan allows you to make or before or part payments towards your loan balance. This is particularly if you want to pay it off before the end of the loan’s term. Loan Amount When comparing instant loan offers from many lenders, analyze the amount given. For example, if you want an instant personal loan online for Rs. 15 lakhs, you should only look at lenders that enable users to borrow up to Rs. 15 lakh. [B-02] Conclusion The banking industry has seen many developments in recent years. This includes an instant loan. This loan represents a vital change. Since the beginning of banking, applying for a personal loan has been a laborious process filled with worry, strain, and time waste. For these reasons, it was critical to establish a new kind of loan tool that would be simpler for people to obtain.

08-11-2023

Personal Loan

How to Calculate Personal Loan EMI in Excel

More and more individuals are turning to personal loans as a primary source of credit. People get these types of loans to cover unexpected expenses. They can be either short-term or medium-term. Personal loans are available without requiring collateral, but this will depend on your creditworthiness, earnings, age, and other variables. Personal loans offer attractive interest rates to borrowers. Plus, you can complete the paperwork procedure online for speedy loan disbursement. So, without further ado, let’s jump right into it! [B-01] How to Calculate Loan EMI Using Excel Once you are familiar with the formula, determining your EMI payments in Excel is quite simple. In addition, you can use free tools like EMI calculators present on the websites of most lending banks. In these, you can enter essential details like the loan balance, the rate of interest, and the time to repay the loan and immediately get the EMI amount you need to pay. Calculating your personal loan EMI using Microsoft Excel is very simple. For this, Excel offers a handy formula: PMT (rate, nper, pv, [fv], [type]). PMT is short for “payment,” and the value it generates is the monthly instalment payment on a loan. This function requires the following parameters: rate – The loan’s annual percentage rate of interest nper – The number of loan payments pv = current loan balance or outstanding loan amount fv – The money you hope to have on hand once you complete the final payment or its future worth. Its default value is the loan amount that remains unpaid after you’ve repaid all the loans. For this function to work, rate and nper must be of the same units. For example, to calculate monthly EMI, use the monthly interest rate rather than the yearly one. Take a look to see what we mean: Think about you’re taking out a loan of 20 lakh rupees at an interest rate of 12 percent per year for 25 years. If paid back in three equal quarterly payments: Rate = 12%/4 per quarter Npr = 25X4 EMI calculation in excel will be: = PMT(12%/4, 25*4, 20,00,000) How to Calculate Personal Loan EMI Using Mathematical Formula? No worries if you don’t have Microsoft Excel. You can still determine the EMI using a calculator or basic arithmetic skills. The formula often used to determine the EMI amount is: EMI = [P x R x (1+R)^N] /[(1+R)^N-1] In this equation, P is the debt principle R is the rate of interest each year N represents the number of payments during the life of the loan. For the EMI formula to work as expected, the rate units and EMI period must be identical, as they are in the PMT formula. So, suppose the interest rate payable is 10% per year, and you need to figure out your EMI. In that case, you would put [10/(12X100)] into the calculation for R. The PMT function derives its output from the same underlying computation as the EMI. Hence, the two are interchangeable. Remember that these figures assume a fixed interest rate throughout the loan’s term. Also, the results don’t account for any costs other than the principal amount and interest. How to Calculate Personal Loan EMI Using Online Calculators? Most financial institutions and banking organizations calculate personal loan EMI using a formula. You can also use a Personal Loan EMI Calculator to estimate your EMI. Your EMI will depend on the total amount you borrow, length of time, and interest rate. 3 Facts You Should Know About Personal Loan EMI Calculation 1. Your EMI payment factors in interest accrued on that principal. You’re doing two things when you pay your EMI: repaying the principal and the interest. You repay the loan over the loan’s term by making equal monthly payments, or EMIs. Suppose you first begin making EMI repayments. Then, the amount you send toward interest is more than the amount you give toward the principal. In contrast, your EMIs will go more toward repaying the loan’s principle than interest. 2. Make sure the monthly EMI payment doesn’t exceed 40% of your take-home pay. Suppose you’re considering taking out a loan. Whether a car loan or a home loan, your monthly EMI payments shouldn’t exceed 40% of your gross monthly income. That’s because most individuals only have a certain amount of money to pay bills. Whether you’re an entrepreneur or an employee, your money is always subject to market risk. Thus, it is advisable to play it safe and ensure that your EMI expenses are at most 40% of your earnings. 3. Your interest rate will fluctuate based on several variables. The interest rate charged on your personal loan is a major component in determining your EMI. Income, credit score, loan amount, and age, all play a role in determining the interest rate. But, variables like your credit history influence the sum. Loan and credit card payments, both old and new, impact your credit score. Lenders see customers with a history of making timely payments on loans and bills as low risk. Hence, they offer such customers more favourable terms on personal loans. [B-02] Conclusion Be clever when figuring out your personal loan EMI. You can do this by considering how this will affect your spending plans. Consistent expenses will significantly impact your ability to repay your loan. Did you love this article? Follow our blog for more investing, personal finance, and banking tips!

08-11-2023

Personal Loan

What is FOIR and How is It Calculated On a Personal Loan?

A personal loan is one of the most common loans applied by people. It is an unsecured loan with quick disbursal. The documentation needs are quite basic. The eligibility for a personal loan is simple. It is based on your age, income, and credit score. But there is one thing known as FOIR, which is also considered. Understanding FOIR and the right way to calculate it is important. This guide will share with you complete insights on the same. [B-01] Understanding FOIR FOIR is a fixed obligation-to-income ratio. It is a parameter which is used to check loan eligibility. It determines the creditworthiness of the applicant. In simple terms, it is the debt-to-income ratio. This ratio is always represented in percentages. This display the percentage of the debt you have against your income. It is a true reflection of your credit health and repayment eligibility. It shows your actual repayment capacity at the income you are earning. Mathematically, it is: FOIR = (Sum of all monthly debts/ Net income per month) * 100 For simple understanding, here are the details of each term: Debts are the total of EMIs and other credit bills you must pay. It includes EMI for personal loans, home loans, business loans, education loans, and others. Net income is the total amount you earn from all sources. You can also have multiple sources of income. You just need to back up them with evidence. Every lender has their own accepted FOIR range. But in general, it should be between 40% to 55%. To understand the FOIR calculator, let us take an example: Example of FOIR calculation Suppose you earn a monthly salary of INR 90,000. The following are the EMIs he needs to pay: Home loan = INR 25,000 PM Auto loan = INR 15,000 PM Mortgage loan = INR 20,000 PM Credit card instalment = INR 8,000 PM The total amount you need to pay per month is INR 68,000. Now, the FOIR is = (68,000/90,000)*100 = 75.56%. The ratio can be explained as follows: 75.56% of your income goes into debt. Your surplus is only 24.44% to pay any new debt. Now, this is out of range which will reject the loan application. Significance of Low and High FOIR A low FOIR signifies: You have fewer liabilities. Your disposable income is high. The chances of repaying the debt are high. The chances of loan approval are high. A high FOIR signifies: You have more debts. You do not have a high disposable income. There are chances of delayed payment or non-repayment of debt. The chances of loan rejection are high. Tips to improve your FOIR Improving FOIR is the best way to get approval for your loans. These tips can help you: Go for a joint loan If you have a high need for a loan, try a joint loan. The co-applicant be your spouse or a blood relative. This will reduce the burden of EMI on you. Also, this will improve your FOIR and improve your chances of loan approval. Repay your debts You need to repay your debts on time for a healthy credit score. It will help to improve your credit score and FOIR. As you repay debt, the amount for EMI will reduce over time. Also, this will allow you to get a new loan if needed. Improve credit utilisation ratio It is the ratio of the credit used against the credit available. It is suggested to keep it well below 30%. If your credit utilisation ratio is above 30%, consider paying off some debts. This will increase your disposable income with you. Also, it will improve your FOIR. Avoid multiple loans You should avoid multiple loans. Lenders prefer borrowers who can manage their finances well. Too many loans in your profile can lead to the rejection of your application. Avoid frequent job switches Frequent job switches are also a cause of high FOIR and so can lead to application rejection. You will not have a consistent income due to gaps in between. This will further worsen your disposable income. Increase in loan tenure You can increase the loan tenure for existing loans. In that case, it will reduce your EMIs and increase your disposable income. This will give you a chance to get your loan application approved. Include additional income, if any You should disclose all the sources of income you have. Ensure you have proof of income to support. Additional income will raise your total income and reduce FOIR. Why is FOIR so important for a personal loan? A personal loan is an unsecured loan. There is no collateral associated with it. When you apply, the lender needs to ensure you have a sufficient amount to pay off the debt. Calculating FOIR will ensure the lender that you have enough surplus to pay off the EMI. This is a sign that your application will be approved. A FOIR is important for both the lender and the borrower. It gives a lender an idea of the credit health of the borrower. On the contrary, it offers the borrower an idea of his monthly expenses. A high FOIR can increase the interest rate, while a low FOIR might attract a lower interest rate. The lender might assess your assets and prefer a secured loan against a personal loan. This will ensure them of the repayment. Reason to consider a personal loan You can use a personal loan for multiple purposes. The application for a personal loan is simple. It is unsecured. The eligibility criteria are straightforward. The documentation needs are quite straightforward. You can apply a personal loan for online. You can visit the lender’s website. Fill in the form and apply. There is no need for any collateral. The processing fees and interest rates are better. [B-02] Conclusion Multiple factors impact a personal loan. Analysing each factor ensures the lender of your credibility. FOIR is one of them. It allows a lender to check the surplus income you have. This will define your actual debt against your total income. A low FOIR is a sign of better credit management. This will increase the chances of approval of your loan. But if you have a high FOIR, your application might be rejected. You must follow the right financial management to reduce your FOIR. You might have some fixed obligations, but you can manage FOIR by managing your credit utilisation ratio. You can visit Piramal Finance to apply for a personal loan and get information about FOIR. The process of application is quite simple and online. Also, you can easily meet all your financial needs with the amount.

08-11-2023

Personal Loan

Here is Why Taking A Personal Loan During Festivals Makes Sense

The festival season is the most awaited time of the year, which brings celebrations to Indian households. There are many festivities which means a chance to spend a lot of money on things like a new house, car, gold jewellery, etc. It’s best to take out a personal loan during the festive time. This makes it easier to stick to your budget and make the most of the holiday season. In addition, the amount appears in your account almost immediately after approval, authorizing you to spend. When you need to complete all the necessary celebratory rituals but don’t have much money, instant personal loans will relieve you of worrying about how you will pay for everything. [B-01] Online personal loans are a great option. This is because they require minimal documentation and formalities for approval. There are many good reasons to get a personal loan for festival. Here are some of the benefits: 1. Flexible usage The festival season is a great time to shop. There are many good deals and discounts. However, unexpected expenses can run into thousands of rupees. These can harm your savings and budget in the future. A personal loan can help you cover these costs for your festive season. This loan can cover all your expenses. So you can easily buy a party dress or a vehicle with private financing. 2. Easy to apply Due to the digitization of the financial sector, you can easily apply for a personal loan from the comfort of your home. Personal loans offer flexible repayment options. In addition, you do not need to go to a bank or other financial institution to have the loan documented or processed. All of this can be done digitally, from the instant loan application to processing in advance using an individual application. 3. Higher loans with low-interest rates You can get up to INR 25 Lakhs with personal loans. This can make the festive season more fun and exciting. In addition, if you apply for a single personal loan, you can cover more expenses that you and your family incur during the festivities. Since you are well informed about your repayment schedules and the EMI amount to be paid regularly, personal loans also help you avoid repayment problems. You can easily get a low-interest personal loan if you have a steady income and a good credit score. 4. Invest in gold or other assets Buying gold or silver during Dhanteras is considered auspicious. In addition, gold and silver investments are excellent assets. However, the rising cost of these precious metals can be overwhelming. It is a great time to buy precious metals as the holiday season marks the start of the wedding season. You can pay for these expensive items with a personal loan without using your savings. 5. Transform your home Have you been putting off home improvement projects for months? Are you interested in modernizing the interior of your home? Or do you need to repaint your home? Diwali is a great time to give your home a makeover, no matter what it needs. A quick personal loan can improve your home without breaking the bank. They don’t require collateral and have flexible repayment options that allow you to repay the loan when it’s most convenient. 6. Pay off debts The festival of lights is also considered an excellent time to start over. So why not pay off all your previous credit card bills and debts? You can take control of your finances and restore your financial health. A personal loan is a great way to pay off debt because it can be used for any purpose you want and requires no collateral. You can also choose a repayment period that suits you and your budget to repay the loan whenever you want. 7. Giving gifts There’s nothing like making someone happy and making them shine. Gifts generally achieve this. It’s customary to give and receive gifts during the holidays, and it’s very satisfying to see someone’s face light up when you give them something. However, instant personal loans are covered if you need to spend a lot of money on gifts. If you want to buy something for someone you care about, applying for a quick personal loan makes sense. When buying gifts for friends and family, you don’t have to limit yourself by what you buy or who gets them. 8. Personal loans don’t need collateral Personal loans don’t need collateral because the start of the festive season means more people want to buy things like home appliances, gold investments, real estate, cars, and holiday clothes. You do not need to provide a guarantee when concluding the contract. It makes it easier for people of all income levels to get a loan and use it to pay for their holiday purchases. Thanks to this, you can enjoy shopping without any stress. [B-02] Conclusion A personal loan with Piramal Finance during the festive season is the best option, as you can join the fun without any cash requirements. Piramal Finance can make your loan application process simple and stress-free. They guarantee no extra costs and only a small processing fee. You can find a full list of fees on our website. You can choose the personal loan EMI amount that suits you best, free yourself from the burden of high repayment costs, and enjoy your festivals. They make it easy to apply online, require little documentation, and offer excellent after-sales service. With a personal loan from Piramal Finance, enjoy the celebrations without worrying about your finances.

08-11-2023

Personal Loan

Benefits of applying for a personal loan this Christmas festival at Piramal Finance

Christmas is the time for celebrations with your loved ones. Money should not be the reason to deny joy to yourself, your friends, and your family. Instead, festivals are the best opportunity to get more for less. There are discounts everywhere. Yet, the purchases may be over your budget. If so, consider applying for a personal loan for Christmas at Piramal Finance. Has it been a long time since your last vacation? Is your home in need of renovation? Is the way to make this Christmas special unaffordable? Your dreams are possible. You can do what you desire this festive season. [B-01] What is a personal loan? A personal loan is a form of borrowing. It is easy to get and friendly to your needs. It is unsecured. The need for documentation is less. The processing is fast. There are various benefits to getting one. Let’s assess why you might want a personal loan for Christmas. The process is not difficult. The loans are not expensive. The system of repayment is flexible. Further, there is no need to furnish security, only documentation. Even more, you can begin your financial planning with a personal loan for Christmas. You can also build your necessary credit score. Getting a personal loan for Christmas is easy The documentation required is not excessive. So it would not take much time out of your day to get the required proof ready. All you need is your PAN Card along with proof of your address and income. You can also club your income with your spouse for the eligibility of getting larger loans. Your co-applicant needs the same documentation as well. You can get a personal loan for Christmas. Either alone or together with your spouse. It would be easy to do so either way. Personal loans are affordable There are no pre-payments. There is no foreclosure charge either. The interest rates start at an annual 12.99%. Other expenses in the process are as per norms under the law of India. Thus, applying for a personal loan for Christmas can be easy on your wallet in the long term. You can make this festival special in ways it has never been before. A personal loan does not mean getting less Personal loans don’t have to always be small amounts. Even if they can be. There is a comfortable range of finance you can access. It begins at INR 1,00,000 (Rupees One Lakh) and can go up to INR 1,000,000 (Rupees Ten Lakh). A personal loan for Christmas can ensure you can cover anything from shopping expenses to trips abroad. You do not need to disclose what the loan is for Festivals are expensive in unexpected ways. There is no need to justify. We understand that you may have many smaller expenses. Or you may have fewer larger expenses. Either way, there is freedom for you to do what you want to do. A personal loan for Christmas has no strings attached to your happiness. The process of applying is speedy As a result of the ease of this process, sanctioning of loans is quite fast. After the sanction, there is an immediate disbursal of the amount. This way, you can get a personal loan for Christmas with short notice for those last-minute expenses. You could get the amount beforehand to prepare yourself for the extra expenses. There is no hurry to pay the loan back Getting a personal loan for Christmas does not mean paying it back during the festive season. Similar to the range of amounts, there is a range for the repayment as well. It extends from twelve (12) months to sixty (60) months. The repayment process will not unnecessarily burden you. No need to set your property as collateral Personal loans do not need you to submit objects of value as security. You can rest assured that you won’t have to let go of anything you own for this money. Ensure that you can keep paying the loan back at your own pace. Unlike most other forms of debt, a personal loan for Christmas is different. You can relax without any fear hanging over your head. It would help with building your credit history These days credit is inescapable. Often, people such as you may be off guard. If you can pay the loan off in the time prescribed, it makes the process easier for your future loans. This could be the beginning of your journey with credit. Why not start with a celebration? A personal loan for Christmas is perfect to begin this journey. You should begin your financial planning today Finance seems hard. It is not though. Yet, the process of building up your financial system is long-term. You can begin with a personal loan for Christmas. With this, you will get your well-deserved celebration. It will also help you set up your future. The ease of a personal loan is unlike any other. It could be a stepping stone on your journey to understand finances. The repayment process is out of your own needs. You have the flexibility to take your time and understand what is going on. All this while building up a better understanding of the credit system. [B-02] Final thoughts A personal loan for Christmas may seem difficult. We have explained why that is far from the truth. Not only are the loans easy to get, but also not expensive. The process does not need you to go out of your way. Instead, you can feel comfortable with the process and build your credit score in the process. Your loved ones will be happy. I f you need any more help with your financial decisions, we are here only to help. We have other posts describing financial situations as well. You can seek more information on or apply for a personal loan for Christmas.

08-11-2023

Guide

Top schemes of government for MSME you need to know

MSMEs are considered to be the backbone of the Indian economy. The MSME sector is approximately one-third of the country’s GDP (Gross Domestic Product). According to government data, it employs 11 crores of Indians. It also contributes to nearly half of the country’s manufacturing output. For this reason, the government of India runs many schemes to help the MSME sector thrive. If you are someones who runs an MSME, or works in one, this is for you. Take a look at government schemes for MSME which help in skill development or provide financial aid. In this article, we are going to take a look at 10 such government schemes for MSME. [B-01] Top 10 Government Schemes For MSME 1. Prime Minister Employment Generation Programme (PMEGP) The PMEGP scheme provides financial assistance for self-employment. Its goal is to create sustainable employment opportunities. The unemployed youth and traditional artisans in rural and urban areas of India can benefit from this scheme. If you qualify under this scheme, the government will provide subsidized loans to you. The government will also provide EDP training, awareness camps, etc. to you. 2. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE) Under this scheme, you, as an entrepreneur, can get a loan of up to INR 2 crores without any third-party guarantee or collateral. This is meant to motivate first-generation entrepreneurs to create self-employment opportunities. 3. Micro & Small Enterprises Cluster Development Programme (MSE– CDP) This scheme leverages common facility centers to create better infrastructure for clusters of MSMEs. It addresses advancement in green technology and promotes sustainability. It provides financial assistance of up to INR 15 crores for infrastructural development. 4. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) This scheme is trying to set up traditional artisans and industries into clusters. In the long run, this is supposed to help them self-sustain. A financial support system of up to INR 5 crores has been set up in place for this scheme. If you are one such organization, you can use this money to upgrade to modern machinery, buy raw materials, and even digitize your business. Furthermore, an additional INR 25 lakh is provided for training purposes. 5. Entrepreneurship and Skill Development Programme (ESDP) Scheme This skill will help you in capacity building for your MSME. It is particularly designed to help minority communities such as SC/STs, women, the differently abled, ex-servicepersons, those living below the poverty line, etc. It is one of the few schemes that apply to agro-based industries as well. If you run an agro-based MSME or one that deals with food processing, etc. this scheme can help you. 6. Assistance to Training Institutions (ATI) Scheme This scheme helps build training institutes that will further empower you to improve your MSMEs. These institutes provide training for skill development for people that work in the MSME sector. The programs are designed by the MSME ministry. Financial assistance of up to INR 300 lakhs is also a part of this scheme. 7. Procurement and Marketing Support (PMS) scheme If you find it difficult to market your products, this scheme is for you. It aims to improve the marketability of MSMEs. Under this scheme, MSMEs participate in international fairs, trade fairs, exhibitions, etc. Thus, they can take their products directly to consumers and increase their business. 8. International Cooperation (IC) Scheme This scheme is similar to the last one, but it’s mainly aimed at improving exports. It will help you participate in trade fairs, expos, etc. abroad. Thus, you can market your product outside of India. By competing with organizations worldwide, you will also learn about newer technologies and processes. This will help you advance the workings of your own MSME. 9. ZED Certification Scheme ZED stands for Zero Defect & Zero Effect. This is one of those government schemes for MSMEs that looks at the bigger picture. Zero defect here means your MSME will manufacture quality products. Zero effect here means it will do so without damaging the environment. An individual or organization that earns this certification will be awarded many benefits including a joining bonus and subsidies. This scheme aims to take the Make in India initiative forward sustainably. 10. Lean Manufacturing Competitiveness for MSMEs Lean manufacturing techniques include better productivity, good management systems, reducing waste, and maintaining continuous improvement. This scheme uses the application of these techniques to encourage competitiveness between MSMEs. You may also have to compete with others to qualify for one of these government schemes for MSME. 11. MSME – Innovative (Incubation, IPR and Design) This scheme aims to promote innovation. It does so by developing better designs for marketing and production. It helps you commercialize your product while maintaining your intellectual rights over them. It is one of those government schemes for MSME that connects academia to industries, thus pushing for innovation. It encourages students and funds their projects. The scheme subsidizes patenting innovation and makes the entire process smoother overall. 12. Digital MSME This scheme will help you adapt to the new digital age. It encourages you to adopt new digital tools and processes. The adoption of new digital technologies often helps reduce costs and improve efficiency. This scheme provides access to new software. It helps in the automation of processes involved. [B-02] Conclusion The Government of India is betting large on the MSME sector. To ensure it succeeds, there are many more government schemes for MSMEs that are currently active. In this article, you have been introduced to the top 12 run by the central government. However, many state government schemes for MSMEs are also there which you can leverage. If you do not qualify as an MSME but still require financial assistance, a personal loan may be the best option for you. Piramal Finance is one such organization that can help you acquire such a loan. To further learn about the process, please visit the personal loan section on their website.

08-11-2023