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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

Credit Score

Does a Gold Loan Increase a Credit Score Fast?

Gold loans have become quite a rage in India over the last few years. The country’s burgeoning gold industry has increased demand for loans against the asset. It has resulted in banks offering several such loans, which individuals, as well as businesses, can avail of. In this article, you will find out whether a gold loan can help improve your credit score and the other benefits of taking a loan with gold as collateral. [B-01] What is a Gold Loan? A gold loan is a loan wherein the borrower sells gold to the lender and receives a loan against the same. The borrower provides gold on a pledge, and the lender exchanges the loan. It is one of the oldest types of collateral, which is why gold has been used as currency for so long. The gold loan has become popular again due to the increasing demand for bullion in the country and the low interest rates on offer by banks. How Does a Gold Loan Work? The gold loan works on the principle of pawnbroking. It means that the lender takes possession of the gold and holds it as security for the loan. The borrower is responsible for paying interest on the loan amount. This interest is charged as per the prevailing interest rate of the lender. The borrower pays interest on the loan amount plus the principal amount of the gold. Gold loans are popular again because of the increasing demand for gold in the country. Can Gold Loan Improve Credit Score Fast? If you’re looking to improve your credit score fast, a gold loan might be your best option. A gold loan is a small, short-term loan that uses gold as collateral. It means that the lender has access to your gold, and if you fail to repay the loan, they can sell it at auction. Because a gold loan is a short-term loan, it’s good for improving your credit score. It is because short-term loans are usually considered less risky than longer-term loans. And, given that a gold loan is a low-risk commitment, it is a viable option to improve your credit score. It would help if you had good credit to get a gold loan – meaning your credit score should be above 650. It would help if you also had enough gold to collateralize the loan. And finally, you need to agree to pay the loan back within a set period. Because a gold loan is considered a low-risk loan, you won’t have to worry about high-interest rates or other penalties. What is a Credit Score? A credit score is a numerical rating assigned to an individual or a business by a credit report provider. A credit score is a reference that lenders use to decide whether to accept a loan request. A credit score is a three-digit number between 300 and 850. The higher the score, the higher the chances of getting a loan. The credit score is calculated based on the following factors: Payment history: How much have you paid on loans in the past? Credit utilisation: How much of your total credit limit have you used? Length of credit history: How long have you been taking credit? Payment speed: How quickly are you repaying your existing loans? Credit mix: How many different types of credit do you have? How to Improve Credit Score with Loan? A good credit score is essential for anyone looking to borrow or take out a credit card. Fortunately, there are several ways to improve your credit score. Here are four tips: Pay your bills on time: This is the most important step; if you can’t pay your bills on time, your credit score will suffer. Make sure to pay all your bills on time each month, and keep track of how much you’re borrowing each month so you know where you stand. Keep your credit reports clean: If any accounts have been cancelled or closed, update your credit report as soon as possible. It will help improve your score because it shows that you’re taking responsibility for your actions. Use a credit card responsibly: Don’t use your credit card to buy things you can’t afford; this will damage your CIBIL score. Instead, use it to buy things you can afford and pay off the balance in full each month. Get a gold loan: A gold loan is a type of loan that has low interest rates and a limited prepayment penalty. It is a good option if you want to quickly improve your credit score. Many Benefits of Gold Loan There are various advantages to taking a gold loan. Some of them are given below: A secure transaction – Gold has been used as a currency for thousands of years. It has therefore been considered a secure investment for a long time. Therefore, using gold as security for a loan is a secure choice. When you take a gold loan, you already have an asset you can sell in case you’re unable to pay off the loan. Easy access to money– A gold loan is akin to an equity investment in terms of ease of access. The process of getting a gold loan is relatively faster. It takes less time than a personal loan. It is so because you’re keeping gold worth the entire value of the loan with the bank. Relatively low-interest rates – Banks’ low interest rates make gold loans quite attractive. Banks usually allow interest rates between 5% and 9% per annum. In comparison, most personal loans come with an interest rate of around 10% or above. Loan repayment flexibility – The loan term is usually between 6 months and a few years. Unlike other types of loans, gold loans can be repaid in installments. Why Is Gold Loan in Demand Right Now? The demand for gold in the country is increasing due to the high inflation rate in the Indian economy. People are therefore buying gold as a store of value. This gold loan demand is also boosted by the strong Indian rupee, which makes gold loans even more attractive. Moreover, the falling prices of crude oil have led to a decrease in the price of gold. This has made gold loans even more attractive. The high inflation rate, low crude oil prices, and increasing demand for gold loans have led to a spike in the price of both gold and the Indian rupee. [B-02] Conclusion Gold loans are one of the oldest forms of collateral. They work on the principle of pawnbroking, and the borrower pledges gold as security for the loan. The lender advances the loan in exchange for the gold. Given that gold loans are often taken for short durations, they can easily improve your credit score. At the same time, it is also a safer way when compared to a personal loan. With gold as collateral, there are limited risks involved for both the borrower and the lender. If you have any questions about gold loans or credit scores, you can read the detailed blogs available on the Piramal Finance website for detailed answers.

08-11-2023

Personal Loan

How to Reduce Car Loan EMI?

Buying a car, whether new or used is an exciting step. But for most people, it also means taking a car loan and paying EMIs every month. Over time, these EMIs can feel heavy on your budget, especially if you're trying to manage other expenses. The good news is that there are smart ways to reduce your car loan EMI and make your monthly payments easier. Whether you’ve taken a loan for a new car or a used car, you can still lower your EMI by planning wisely and making a few smart decisions. In this guide, we’ll share simple and effective tips to help you reduce your car loan EMI, so you can enjoy your drive without stressing about your monthly payments. [B-01] Tips to reduce your car loan EMI If the EMI of your car loan consumes a major part of your monthly income, you might have to sacrifice some of your expenses. To avoid this, you can follow a few simple tips given below. These tips will help you reduce your car loan EMI. Opt for a bigger down payment – Before buying a car, you should plan your purchase in such a way that you can pay a larger amount as a down payment. You cannot afford to pay the whole cost of the vehicle in one go, but you can try to accumulate a big portion for the down payment. A big down payment can reduce the principal amount of the loan. You can save money on interest by taking out a smaller loan. A smaller loan will have lower interest and monthly payments. Go for a loan with a long tenure – If you are not in a position to pay off higher EMIs but still want to finance a car, you should choose a loan with a longer tenure. If the repayment term of the loan is long, you will have to pay EMIs for a long period, but the amount of the EMIs will be less. Long-term loans have shorter monthly repayments as compared to short-term loans. You can use the vehicle loan EMI calculator to know the EMIs payable with different loan tenures. Use your surplus money to pay the outstanding loan amount – The major part of the initial EMIs of a loan is apportioned to the interest on the outstanding principal. If you want to lower your EMIs, try to pay off the outstanding principal amount whenever you have surplus money in your hands. It will assist you in lowering future monthly payments by saving interest on the outstanding loan amount. You can use the car loan interest rate calculator to see the effect of a decrease in the outstanding loan amount on your car loan EMIs. Take a loan from your existing bank – It is better to get your car financed from your existing bank in which you maintain your savings or current account. Your existing bank is aware of your creditworthiness and financial background. You can negotiate for a lower processing fee, and the bank can help you choose the most suitable financing scheme that allows you to pay reduced EMIs. Maintain a good credit score – Banks check your credit history before approving your loan. If you have a poor credit history, a bank can still approve your loan, but with high-interest rates. Therefore, you should plan your decision to buy a car at a time when you have a good credit score so that you can procure a loan at a low-interest rate. A loan with a lower interest rate can ensure you have small EMIs. Negotiate the final price of the car with dealers – Compare the prices and discounts offered by several car dealers before purchasing a car. You should opt to buy from a dealer who offers the maximum discount so that you have to get the lowest possible amount of loan from the lender. A lower purchase price results in a lesser loan amount, which will consequently result in lower EMIs. You can use the car loan interest rate calculator to calculate EMIs payable at different loan amounts. Choose a lender that offers loans at the lowest interest rate – You should get your car financed from a lender that offers you the best deal in terms of long tenure and low-interest rates. You should explore various finance schemes offered by banks and NBFCs and then choose the one that can provide you with the desired benefit of lower monthly payments. Select a car according to your repaying capacity – The decision to buy a car should be taken after considering your present and future financial needs. If you have other major expenses lined up, it’s better to buy a car that can fulfill your needs rather than an expensive, luxurious car. If you already own a car, you can exchange it for cash and increase the amount of the down payment for your new car to reduce the EMIs. NBFC loan options – Car dealers have tie-ups with non-banking financial institutions (NBFIs). You can get a beneficial financing scheme from these NBFCs. The car dealer has to sell the car, and the NBFC has to forward a loan, therefore, you can get a good offer from the car dealer’s NBFCs. Procure a loan with low processing fees – Processing fees and other administrative costs of a loan are negotiable. You can ask the bank to reduce or lower the processing fee. You can use your savings to increase your down payment and lower your loan amount, lowering your car loan EMIs. [B-02] Conclusion Buying a car is everyone’s dream. Getting a car loan can be the best option for buying a car. With the help of the above tips, you can reduce the burden of high EMIs. Plan your decision according to your level of income and expenses, and then choose a lender that can offer you the best deal. Take calculated steps from time to time to lower the burden of the outstanding loan and reduce your vehicle loan EMI.

08-11-2023

Personal Loan

5 Reasons Why Gold Loans Are Better Than Personal Loans

At times, you will require access to finances and choose to apply for a loan. Mostly, people opt for personal loans since they do not require any collateral and are granted in a relatively short amount of time. However, another great option to get access to money quickly and easily is through gold loans. Banks promote personal loans as their main product, but it is important to know that their interest rates range from 12% to 28%. While they are easy to apply for and get approved, personal loans have their disadvantages. Gold Loan on the other hand, have multiple benefits such as lower interest rates, flexible repayment options and more. [B-01] What Are Gold Loans Lenders provide customers with loans that are secured by gold. Typically, a percentage of the gold’s value is provided as the loan sum. The maximum credit amount that may be obtained depends on the amount of gold being pledged and other factors. Borrowers must repay the gold loan amount in instalments within the set time frame to get their gold items back from the bank or financial institution. The repayment can be made monthly or according to other predetermined repayment schedules, depending on the terms of the gold loan. What Are Personal Loans A personal loan is an unsecured loan, and this means that the borrower does not have to pledge any of their assets as security. Personal loans allow people to borrow money for multiple purposes. For example, you can use a personal loan to pay for wedding expenses, medical emergencies or house upgrades. Banks and other financial institutions provide personal loans, and the money you borrow from the lender must be repaid in EMIs within a fixed period and with interest. Some banks may even have additional charges or fees to apply for personal loans. 5 Reasons Gold Loans Are Better Than Personal Loans When comparing gold loans and personal loans, there are extra benefits that gold loans offer. These are 5 advantages of applying for gold loans: 1. Easier Eligibility Requirements For personal loans, borrowers are not required to needed to provide assets as security. However, there are many requirements that borrowers have to meet to be eligible to apply. For example, they must be of a certain age, earn a certain amount of money and have a specific CIBIL score to be considered eligible to apply for a personal loan. For gold loans, many of these requirements are not required and the gold loan is granted based on the gold being given as security. 2. Lower Processing Fees For personal loans, lenders are required to carefully review the applicant’s income-related documents. As a result, they charge a small processing fee for personal loans. These personal loan processing fees can be from 0.5% to 1% of the loan amount. For gold loans, gold holdings are used as security. Therefore, people applying for gold loans do not need to produce papers related to their income. Because of this, processing fees are not included in this calculation. 3. Less Time Required For Approval When a borrower applies for a personal loan through a bank or an NBFC, the lender has to verify the borrower’s documents and assess their ability to repay the loan by checking their CIBIL score and other details since no security is provided. This process takes time and may cause the loan approval and disbursement process to be delayed. By contrast, the gold loan borrowing process is straightforward. The borrower pledges their gold assets as security and the gold is inspected. If approved, then the gold loan is granted to the borrower within one or two days. 4. Flexible Repayment Options Gold loans provide more flexible options for repayment than personal loans. This flexibility in repayments is because gold loans are secured loans. Gold loan borrowers may choose from a variety of repayment alternatives. Borrowers may repay gold loans in EMIs. Alternatively, they may also pay the interest up front and repay the principal throughout their loan term, or pay the principal and interest in one single sum at the end of the term. Lenders provide multiple options to repay gold loans depending on your financial situation. 5. Lower Interest Rate Gold loans offer lower interest rates compared to the interest rates of personal loans. A personal loan has interest rates of 16% to 22%, while the interest rates for gold loans are between 11 and 13 per cent. With a gold loan, a borrower will end up paying less than with a personal loan. With lower interest rates for gold loans, borrowers can save more of their money while also being able to get access to much-needed funds. [B-02] Conclusion There are many similarities between gold loans and personal loans. Both types of loans allow people to borrow sums of money for various purposes. Compared to a gold loan, a personal loan allows larger borrowing amounts and longer terms. However, a gold loan offers better interest rates, fewer additional fees and minimum eligibility requirements. For many people in India, gold remains one of the most popular investment options. Additionally, the relatively consistent gold prices provide investors with many opportunities. When there is a situation that places people in financial need, taking a gold loan helps people get access to funds while giving them the chance to save more of their money. Borrowing money against gold assets is a wiser investment than borrowing money personally. For more articles on the advantages of applying for gold loans, visit Piramal Finance and receive more financial information and guidance!

08-11-2023