Popular article

Your one stop place for everything related to finance and lending

Personal Loan

Everything You Need to Know About Personal Loan Tenures

When you borrow from a lender, you promise to repay the amount over some time. The time you pay off the rent is called your loan tenure. For example, if you take a large home loan, the repayment cycle may run for a decade or two. The borrower can’t pay more than a certain amount every month. Every borrower can pay only a fraction of their income as EMI for a loan. When you take out a personal loan for the long term, you lock yourself into that lender’s financial services for the next several years or decades. However, long tenures can also have many advantages, including smaller EMIs. Thus, tenure is something that you would like to consider carefully before making a decision. Keep reading to learn more about personal loan tenure and the various factors affecting it. [B-01] What is a Personal Loan Tenure? Personal loan tenure is the length of time most lenders require you to repay your loan. In most cases, you must pay back the loan for a certain period, and you can repay it in one of two ways: Fixed rate: The lender sets the interest rate for the loan so that it will remain the same for the entire loan period. In other words, at the end of the loan, you will have to pay back the same amount you borrowed plus interest. Adjustable Rate: This rate varies based on the market rates and is fixed for the first few years, but then it increases yearly by a specific amount. It can benefit people who don’t want to make principal payments on their loans and would like to pay them back over a longer period. However, you may want to pay back the loan after a while, so you will have to pay interest on top of the original amount. How Personal Loan Tenure Work When you take out a personal loan, the lender lends you money and collects interest on your loan. That part is so clear to most. But there is little awareness when it comes to the part where the applicant has to decide on the personal loan tenure. Yes, an applicant has a say in how long the repayment of the loan will run for. However, it also depends on the paying capacity of the applicant. The bank looks at the paying capacity before deciding the tenure of the loan. The formula used for determining tenure is complicated. But it can be said that the lender considers a fraction of your disposable income when working out the tenure. Say, for example, one earns Rs 25,000 per month. In this case, the EMI paying capacity will be limited to the early single digits. It is because the applicant will have other expenses as well. Therefore, how much you earn has a bearing on your loan tenure. Factors Affecting Personal Loan Tenure Here are the four things that have a bearing on personal loan tenure. 1) Amount of loan If the amount you borrowed from the lender is large and your paying capacity is modest, you will have no option but to take a long-term loan. Depending on the amount, it will spread the EMIs or equated monthly instalments of your loan over decades and make repayment easier for you. However, this has certain disadvantages. For example, you will end up paying more interest than if it was a short-term loan. Given that the principal amount will be repaid over a long period, you will continue paying the interest. In such cases, applicants must choose the variable interest rate model to benefit from the decrease in interest rates of loans over a long period. Therefore, you can choose a longer tenure if you have financial constraints and limited repayment bandwidth. But if you have the means to pay relatively quickly, you must take that option. It will save you money and allow you to take a second loan sooner. That way, you can consider making new investments too. 2) Interest rate A fixed-rate loan may sound like a good idea, but it may be inadvisable for most people. It is so because even though interest rates may be high initially, they may eventually decrease. If you choose a fixed-interest model, you will have to continue paying a high-interest rate throughout the tenure of the loan. You will have to pay a lot more money in the form of interest. It will be in addition to the amount that you originally borrowed. On the other hand, a variable loan rate is usually lower at the beginning but may increase over time. In such cases, you will end up paying more money. Therefore, you must look at the interest rate trend. It would help you decide which of these options you want to choose. It can make quite a difference to your repayment plan. 3) Earning As stated briefly, the amount you earn will determine your loan tenure. If your earnings are low, the lender would want you to take a long-term loan. It will eliminate the possibility of default, given the EMIs will be small and easy to pay. If you have a large income, you can also avail of a short-term loan as you have the paying capacity to service your EMIs on time every month. 4) Age You’re more likely to receive a long-term payment option if you’re young. However, if you are nearing retirement, things will be different. The bank would point out that your source of regular income is likely to end with your retirement. With no regular income, paying EMIs can become tricky. Therefore, banks are unwilling to give long-term loans to those nearing retirement and offer them to the young instead. [B-02] Conclusion If you are taking a personal loan, you must consider a short payment tenure. It will ensure that you don’t pay more than necessary as interest. However, these loans are also available with a long-term plan. You can repay them over a long period. The length of the loan will determine how much you will have to pay back. You can either choose to pay it off quickly. Or you can make the tenure long with an adjustable rate. But the best option is looking at lenders with flexible loan programs. You can consider reaching out to Piramal Finance for such options. As a leading financial institution, they have designed some of the most borrower-friendly loan programs in the industry.

08-11-2023

Personal Loan

Calculate EMI on Home, Car and Personal Loans

India’s credit market has been rising steadily. Among credit industries, India is the 4th largest in the entire world. The CAGR in this sector has been pegged at over 11% in the last few years. Short credits form most such advances as credit cards and personal loans. A person should keep the EMI in mind while applying for such loans. This would help them to have a better plan for the future as well as now. On the internet these days, many EMI calculators are available. One can use it for personal loan EMI calculation as well as home loans, car loans and many more. [B-01] What is meant by an EMI? A financial agreement between the borrower and the lender is known as a loan. The EMI is the monthly payment that a person makes to repay the loan. The concept is simple. The lender gives a certain amount to the borrower, and in return, the person repays the amount with a particular interest charged on it. One can easily calculate the EMIs using a Personal Loan EMI Calculator. It lets the person have a proper plan and also budget for the same. It has been seen almost everyone needs to take a loan of some sort in their lives. In fact, in today’s time, a loan is an essential part of one’s life. These days loans can be of many kinds, but three primary factors are the same for all cases: the actual amount, the rate of interest and tenure. What is the use of an EMI loan calculator? The EMI repays both the total amount and the interest charged. The EMI calculator can be used to know the monthly instalments. The user needs to put the details of the total amount, rate of interest and tenure, and in no time, the EMI gets calculated. The process is straightforward and valuable at the same time. One can get the 24*7 service of an online EMI calculator. When talking of loans, the very first thing that pops up in our minds is the EMI. It is an abbreviation for Equated Monthly Instalments. Every month there is a particular date by which the EMI needs to be paid. The no. of instalments being produced is also the same as the tenure of the given loan. Due to EMI, the financial pressure is less on the borrower. This method is more suitable as repaying a large chunk of money can be challenging. EMI allows a large group of people to be able to live their dreams. With the help of a Personal Loan EMI Calculator, one can plan their future budget accordingly. One has the flexibility to choose the tenure and monthly repayment amount. EMI is dedicated towards both accrued instalments and the total amount. In the initial stage, front loading takes place. It means a significant part of the instalment is directed towards the interest. In the later part, the majority is directed towards the total amount. How can the EMI for a loan be calculated? The critical factors of any loan are principal, tenure and rate of interest. These factors can vary depending on the loan provider. Hence, before going for any loan, it is advised to study the personal loan EMI thoroughly. There are mainly three ways to calculate the EMI: Calculation of EMI with the Help of manual mathematical formula: EMI = [P x R x (1+R) ^N]/[(1+R) ^ (N-1)]; where, EMI = Equated Monthly Instalment. P = total amount. R = rate of interest. (Monthly rate) N = Period or tenure. (In months) EMI can be manually calculated. But it is better to go for digital methods. If done manually, then the chances of mistakes would increase. The manual process is time taking and prone to errors. This formula is universal. Calculation of EMI with the Help of Excel: Personal loan EMI can be calculated with the help of Excel. The PMT function is used for this calculation. In Excel for EMI calculation, the following syntax is used: PMT (rate, nper, PV). The above variables mean: Rate = rate of interest. Nper = the total number of payments made. Pv = total amount. Calculation of EMI with the help of the EMI online calculator: EMI calculator is a finance calculator. It is available online and helps to calculate the EMI. It also helps to compare the different loans for many tenures. Many kinds of EMI calculators are now available in the market: Car loan. Home loan. Personal loan. Loan against property (LAP). Education loan. Gold loan. Why is using a loan EMI calculator applicable? One gets an accurate estimation of their monthly payments. This helps them to plan their future finance better. For more chances of one’s loan being approved, the debt-to-income ratio needs to be below 50%. If using a Personal Loan EMI Calculator, then one can save a lot of time. The online method is way quicker than the manual method. The results can be relied upon as it is accurate. Chances of miscalculation are eliminated. It is definite, depending on the different kinds of loans. [B-02] Conclusion In today’s world, where loans have become so essential, EMIs are an integral part of those loans. The EMI must be calculated so that the monthly budget can be planned in a better way. A personal loan EMI calculator is an essential tool that makes this task easier. If you are looking for a great deal on your personal loan, then “Piramal Finance” is a good personal loan/financing option for buyers. They also have many articles and blogs on a range of finance topics that will improve your skills and knowledge of finance.

08-11-2023

Apps

X Best Personal Finance Apps in India

Let’s start by understanding personal finance. Personal finance involves managing your finances and keeping track of your activities. It is a method of planning and budgeting. One can monitor how much they spend, save, and invest. It is a vital source for making a structured plan. But what is a Personal Finance app? A personal Finance app is an app that helps you achieve your financial target. Activities like how much one spends, saves, and invests are given importance. This includes keeping numerical data of your economy. What is the need for a Personal Finance App? A good personal finance app helps you analyze your expenses. It tells you everything you need to know about your bank account. Everything is calculated. The personal finance app also helps you monitor your credit score. Prominent characteristics of a personal finance app include a shared account, bill alerts, automatic bill payment, and even subscription management. Let’s Take A Look At The Best Personal Finance Apps In India The list of the best personal finance apps are: WALNUT Walnut safeguards and simplifies the monitoring of your monthly outlays. It helps you stick to your spending plan, make on-time payments, and increase your monthly savings. The Walnut Wealth Manager software will help you track your monthly spending and savings. The Walnut system identifies SMS messages in your device’s inbox and records crucial data like expenditures, payments, and even trip reservations. Walnut Prime is a quick credit line for buying, funds transfer, traveling, and several other uses made available to qualified consumers in addition to personal loans. Features: Pay close attention to the balances on your credit cards. When sending money using BHIM UPI. Find nearby ATMs that accept cash. Check your bank account’s balance. Organize your bookings for movies, events, trains, cabs, etc. WALLET The wallet is a top-rated personal finance app created to help you manage your money more effectively. By consolidating all of your financial planning requirements, it helps you pay for financial planning. Through your wallet, you may examine weekly spending statements, manage your buying costs, instantly check everyday expenses by connecting your savings account, and discuss particular features with your family. With a wallet, you can handle your money whenever and wherever you want. The Wallet financial planning app India's financial meter and organizer tools let you simply manage your spending and increase your savings. ET MONEY If you are looking to invest in the capital markets and correctly manage your assets, ET Markets is a great resource for you. It functions as a central hub for managing all of your activities. The program offers numerous features, including excellent technological charting, livestock markets and graphs, customer and industry information, free share price tips, and stock market updates. GROWW Groww, with its main office in Bangalore, was established in 2016 by former workers of Flipkart. A wonderful app for investing in mutual funds is Groww. According to the requirements of the investors, it designates plans into those that offer high returns, tax savings, investments that outperform FDs and SIPs with a Rs. 500 minimum, and so on. Additionally, you can use the app to actively invest in shares and gold. The app is updated often to deliver real economic updates. Through Groww, you can easily apply for an IPO. PAYTM Capital markets are incredibly simple with Paytm Money. You can see your share statements, set up price monitors, and estimate fees while on the go. Now follow every trading indicator in complete comfort. Paytm Money offers all the tools you require for a seamless trade, so you no longer need to visit other websites to establish alerts. GOODBUDGET You might use this app only for your everyday personal finance concerns. The software will keep track of your spending for meals, vacations, education, and everything else you spend. It will evaluate your purchasing behavior and provide reliable and accurate bill alerts. In this manner, you may determine whether you are exceeding your limit and where your spending is most focused. The next time, don’t be shocked whenever a price unexpectedly appears. CRED By awarding customers interesting prizes and incentives every time a transaction is made, CRED promotes the settlement of credit card bills. This single app allows you to add all your credit cards so that you will be advised to pay them on time. Different billing periods are not a concern because CRED protects you. The fact that you may exchange these credits for opulent goods makes paying bills even more enjoyable! Using CRED Rent Pay, you may pay rent regularly from the program. MONEFY Monefy helps keep track of your everyday expenses, payments, and everything else you spend the cash on, which has never been simpler or more pleasurable. This makes Monefy one of the finest expenditure-tracking applications in India. A money-tracking app is not all that Monefy is. It is among the top saving apps that help people manage their finances better. Money keeps tabs on users' spending and assesses it against their monthly income and spending plan. Monefy's financial planner software keeps your regular budget in fine condition. Consequently, it can also be the top app for tracking expenses. YOU NEED A BUDGET You can manage your accounts, pay off the mortgage, save a tonne of money, and accomplish your investment goals more quickly with the aid of the YNAB planning program and its straightforward approach. [B-02] Conclusion Managing your money can be tricky. Know where and how to invest to avoid misleading circumstances. Find a good personal finance app for yourself. See what suits you and what makes you manage better. It all depends on you and your planning. Keeping track of everything may be a little too much. But don’t worry; Piramal Finance has got you covered. It has various blogs and articles related to your day-to-day financial worries. Complete guidance will be provided based on your needs, so contact Piramal Finance today.

08-11-2023

Personal Loan

Personal Loan for Pensioners: Eligibility, Document, Features

A young person with a solid salary might get a personal loan with ease and good terms in India. Yet, if you are above 65, you may find it harder. Retired people often struggle to keep up with debt paybacks due to a lack of constant income. As a result, most banks see them as a credit risk. They often issue loans with higher rates or even reject their request altogether. Yet, certain banks and financial firms provide loans to pensioners. To get credit, they must meet the criteria standards imposed by banks. This blog will go through the eligibility criteria, perks, features, papers needed, and application process for personal loans for pensioners. What is a Personal Loan for Pensioners? A personal loan for retirees is made especially for those over 60 who get a constant pension. The loan is versatile and may be used to meet various money demands. It is a collateral-free loan. No asset is secured here. Yet, a third-party guarantee may be needed for the loan to be approved. Although there is no major difference between personal loans to young people and personal loans for pensioners, the criteria and rates offered by lenders vary. Features & Perks of Personal Loans for Pensioners Here are some aspects and perks of a loan for retirees: Competitive Rates: This loan is available from many banking firms at a low rate, enabling you to plan and manage your finances in an organised manner. Minimal Paperwork: You can avoid the extensive and time taking paperwork by submitting your ID proof, home proof, and income evidence (details of your pension). No Security Needed: Personal loans for pensioners are unsecured. As a result, you do not need to present any collateral or security to receive it. You may borrow against your pension. Instant Approval & Rapid Payment: Your loan will be approved within a few hours, and the cash will instantly be put into your bank account. Multi-Purpose: There are no criteria for getting this loan from financial firms. As a result, it is one of the fast and cheap loans for retirees that can be used for many goals, such as trips and debt paybacks. Paperwork Needed to Apply for a Personal Loan For Pensioners For the lender to approve the loan request, you must complete a form and submit it together with the needed papers. Among these papers are the following: Identity verification You need a copy of your Aadhaar card, passport and driving licence. Include your PAN card and other ID proofs. Proof of residency Gather a copy of your rental agreement, property paperwork, and utility bills. Even Aadhar Card, Voter ID Card, and driving licence would work for proof of residency. Proof of Pension Bank records from the previous six months show that the pension has been credited to your account. Additional Papers This gives a clear idea of the financial state of the borrower. Lenders may ask for additional papers based on different factors. Eligibility Criteria for a Personal Loan for Pensioners Pensioners may get online and offline loans from lenders. But, before applying, you must be informed of the qualifying conditions to prevent rejection. You need to be a citizen of India. The maximum age for applying for this loan is 76. You should have worked for the govt. Or the military. In the case of your death, the relative pensioner (person authorised to receive the pension after you) may also apply for a personal loan. Yet, he or she should not be older than 76 years. Vital Factors to Consider To Get a Personal Loan for Pensioners Source of income People who get a pension from Central, State, or any other government-recognised agency may apply for the loan. Income from a previously employed private firm or a withdrawal from a late spouse or family member is also included. Note that personal loan rates are lower than those of other types of financing, such as credit cards. So, this loan is preferable to collecting credit card debt if you have a steady pension. Unsecured loans Personal loans for pensioners do not need collateral, which means you do not have to guarantee your home or a plot of land at the time of application. This is a significant perk since no assets would be kept as collateral. Duration of payback The time to repay the principal and interest on such a loan is similar to that of a standard loan. It may range from 12 to 60 months. But, the real payback term varies depending on the criteria and plans of the lender. The applicant’s equity and credit history are other vital factors in establishing the payback duration. Using an online personal loan EMI calculator, you can know your EMI and the loan length. Interest rates Personal loans for pensioners have variable rates. These are decided by the applicant’s age, credit score, and the lending firm’s rules. How Can You Seek a Personal Loan for Pensioners in India? You may always receive this credit facility by going to any bank offering retirees personal loans. All you have to do is complete the application form and submit it with all the needed papers. After verifying your papers, the officials will approve your loan request within two working days. You may also go to the bank’s website, sign in, and fill out the form. Provide and upload all needed papers. The bank will authorise and approve the loan within a few hours or days. They initiate the process after verifying your paperwork and information. [B-02] Conclusion One of the government’s key aims is to provide financial stability for the aged. For this reason, many pension plans have been developed. Each month, the pension is deposited into the person’s bank account. But, this pension is insufficient to meet sudden costs or additional expenses. Hence, the pensioner may need to hunt for money elsewhere to deal with unplanned events. All bank has created a lending plan in response to the demands of the elderly. Personal loans for pensioners have reduced rates and no paybacks or processing costs. A personal loan for retirees enables you to access cash when needed. Also, because the loan is flexible, you may use the cash for personal purposes and return the loan in constant EMIs. To learn more about personal loans for pensioners, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Calculator

How Does a Bank Calculate Interest on Your Fixed Deposit?

A fixed deposit is a simple and safe investment. It only requires a one-time deposit. You can deposit a sum known as the “principal” with a bank for a set period. You will receive your deposit plus interest at the end. No matter how interest rates move, or how the economy performs, you will get fixed returns when investing. This helps you collect a large amount with ease. What is a fixed deposit? Banks offer fixed deposits (FDs), a type of investment product. In this type of investment, investors put in a fixed amount of capital at a fixed interest rate for a fixed period. When the fixed deposit matures, the bank returns the principal amount and the interest earned. Fixed deposits pay a higher interest rate than other products, such as savings accounts. You can put money into a fixed deposit for a period ranging from 7 days to 10 years. Anyone with a bank account can open an FD with a minimum deposit of Rs. 1,000. The minimum time frame is seven days. How does a Bank Calculate Fixed Deposit Interest? Bank Calculates Interest on Fixed Deposit: Simple and compound interest are the two methods for calculating interest on a fixed deposit. Banks may use either, depending on the deposit’s tenure and size. Simple Interest - This method is simple. It is computed by multiplying the principal, interest rate, and period. “principal x rate of interest x time period divided by 100” or “P x Rx T/100.” Where, P = principal amount; R = annual interest rate T is the number of periods. For example, if you invest Rs. 10,000 at 8% p.a. for 5 years, the interest can be calculated as follows: Step 1: 10,000 times 8 times 5 equals Rs. 4,000,000. Step 2: Divide that number by 100. You will be paid Rs. 4,000. So, after 5 years, you will have earned Rs. 4,000 in interest. As a result, if you invest Rs. 10,000 in a fixed deposit paying 8% p.a. simple interest over 5 years, you will receive Rs. 14,000 back. Compound Interest - In this method, you earn interest on both the principal and the interest. Many banks offer compound to calculate interest on fixed deposits, but you should shop around to ensure you get a good rate. For example, suppose a bank offers 8% p.a. on a 5-year deposit with annual compounding. So, if you invest Rs. 10,000, the interest can be calculated as follows: In the first year, we employ the simple interest method. 10,000x8x1/100 = Rs.800 So, the first year’s interest is Rs. 800. This sum is returned to the principal. As a result, the second-year principal’s salary is Rs. 10,800. We can now compute the compound interest for the next three years in this manner. Calculate Interest Fixed Deposits Using the fixed deposit calculator While the formulas are direct and can be used by banks to calculate the fixed deposit yield interest rate, they are technical calculations. As a result, fixed deposit calculators are available to assist you in correctly and easily calculating the possible interest. The fixed deposit calculator is an online tool. You must enter the deposit amount, the deposit tenure, and the interest rate. The calculator then calculates the interest rate on the deposit and the amount due at maturity. You can also adjust the deposit amount to see how the interest earnings change. The formula for calculating the final amount using a compound interest rate is as follows: A=P [1+(r/12)/100)] N Where: The amount at the end of the investing period is denoted by A. P is the initial investment amount. R: annualised interest rate, for example, 6, 6.5, or 7. N: Is the investment tenure Conclusion A fixed deposit is an investment scheme. You deposit a lump-sum amount with a bank or financial institution for a specific period. As a reward for this lump sum, you will receive a certain percentage of interest. At the end of the fixed period, the financial institution returns your principal investment amount and the interest earned up to that point. Fixed deposits are generally considered far safer than other types of investments. Fixed deposits have low default risk. However, the default risk is not non-existent. You risk losing your investment capital if you invest in low-rated fixed deposits. [B-02] FAQs What is the definition of compound interest? What is the compound interest formula for a fixed deposit? Fixed-Deposit Compound Interest Compound interest is interest earned on both the principal and interest earned. The interest rate is increased in proportion to the number of periods (years) for which the interest will be compounded and multiplied by the principal amount invested. Calculate interest on FD using compound interest P (1 + r/n) (n * t) A “A stands for maturity amount. P denotes the principal invested. R = The interest rate (in decimals) N is the number of compounds that occur in a year. T denotes the number of years. What is the minimum term for which a fixed deposit can be held? Customers can invest their money for as little as 7 days and as much as 10 years. What are the drawbacks of a fixed deposit? Fixed deposits have drawbacks.Lower interest rates No interest increasesInflation can cause interest rates to fall.

08-11-2023

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

Personal Loan Prepayment Calculator Benefits and Steps to Use

The value of EMI is fixed at the time of buying. It is paid every month. This is to ease the burden on the borrower. You can, however, pay off loans ahead of schedule. This is a prepayment of loans. We can also call it “payment in advance.” People use this to pay on time. It can be useful in many ways. Its amount can be calculated using a personal loan prepayment calculator. Let’s discuss this in detail. When people pay EMI, they pay interest. There is a fixed interest to be paid. It has to give every month with EMI. But sometimes, people want to ease the problems. If they have lump sum money, they can use it. It can be used to repay the loan amount. It can reduce the total amount. In turn, it reduces interest. So, the prepayment of loans minimises the burden on people. The amount for prepayment is calculated before paying. It is done by using a personal loan prepayment calculator. It is effortless to use. [B-01] Steps To Use A Personal Loan Prepayment Calculator Using the personal loan prepayment calculator is easy. Follow these simple steps: Enter the principal loan amount. Enter the current rate of interest. Mention the original term of the loan. Verify the number of EMIs paid. You will see the amount that is due. Enter the prepayment amount. Click OK. The screen will display the amount paid. It will also mention the amount left. The period and EMI will change. The new period and EMI will be visible on the screen. In the prepayment of loans, different cases can arise. These includes Case 1: Full prepayment This is for the people who want to pay the amount completely. It includes paying every penny left. It is called foreclosure. You can do it if you become eligible to pay the entire amount. It saves you from interest. This method saves a lot of money. But it requires paying a lump sum all at once. A specific amount is paid in this. That amount is called the foreclosure amount. Case 2: Partial prepayment once It means paying a partial lump sum at once. It shortens the repayment period by lowering the principal amount. And less interest to be paid. This amount can be calculated using a personal loan prepayment calculator. It is effortless to use. Fill in all the blanks. Get a new loan period and EMI. The EMI can also be varied. This helps people in many ways. It can reduce the burden of EMI as the remaining balance is reduced. Case 3: Partial monthly prepayment It means paying in advance every month. It also reduces the overall period of the loan. This amount can also be calculated using a prepayment calculator. The user can decide the extra amount to be paid. All the values are to be put in the prepayment calculator. A new EMI is generated. It is user-friendly and easy to use. People can use it if they want to increase their monthly repayment. This helps them pay off loans on time. Above, we discussed three cases regarding repayment. The amount for all three is differently calculated. A personal loan prepayment calculator can easily calculate it. This calculator is beneficial and easy to use. Anyone can easily use it for calculations. The only work to be done is to input the correct values. All analyses are carried out by the calculator. There is no chance of error. Piramal Finance offers ZERO charges on Personal Loan Pre Payment. Benefits Of Using A Personal Loan Prepayment Calculator There are many benefits to using a personal loan prepayment calculator. Some of these are: Easy to Use: This calculator is easy to use. No special knowledge is required. Anyone with little financial knowledge can easily use it. Also, no special work is to be done. The only task at hand is to assign values. Even a kid can operate it. It is readily available online. There is no need for offline work. No Errors: The calculations on this calculator have no errors. Since it is software, there is no chance of error in the calculations. This can make your work easy. It can provide you with error-free results. This can also help with proper planning. This can help people save time. Lesser Interest: Prepaying loans has a lot of benefits. Reduced interest tops the list. The prepayment of the amount reduces the principal amount. This, in turn, reduces interest. It saves money. Interest is a burden on people. Prepaying loans can reduce it. Interest adds up to increase the principal amount. The amount to be paid back is much more than the loan taken. It is paid in EMI, but it’s still tricky. However, prepaying reduces the burden. A personal loan prepayment calculator can calculate this amount. It also shows detailed values for interest and period. Hence, it is advantageous. Time Management: The personal loan prepayment calculator can help manage time. Prepaying loans reduces the overall period. This requires planning. You can be free of debt easily. You can calculate the prepayment amount according to your comfort. It is an easy process. It does not require offline work. You can do it yourself. In turn, this saves a lot of time. Also, when you are free from debt early, you can focus on other things. Practical Approach to Life: This can give someone a practical approach to life. A definite amount can motivate you to save money. You can plan for the future. Keeping in mind the occasions, the prepayment amount can be changed. You can make partial prepayments. [B-02] CONCLUSION Using a personal loan prepayment calculator is very easy. Prepaying your loans also has a lot of benefits. It is easy and friendly. This can reduce the burden on people and help them understand time management.

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