Popular article

Your one stop place for everything related to finance and lending

Personal Loan
Dream Car

Instant Personal Loan to Buy a Second hand Car

Want the best loan to buy a second-hand car? Planning a road trip in your car? How can you get an instant personal loan to buy a second-hand car? Taking out a personal loan to purchase a used car is a simpler alternative and wiser choice. Here are some points which should be in your mind while applying for an instant personal loan. In the modern era, many people opt to purchase used or pre-owned vehicles by applying for used car loan. Most automakers have their pre-owned divisions. Most banks and non-banking financial institutions (NBFIs) also provide personal loans for used cars with attractive interest rates and no down payment options. Is it possible to obtain financing for a used car? For two reasons, people typically choose to purchase a used car. Either they are on a tight budget or they want to practise driving in a used automobile before investing in a brand-new vehicle. A used automobile loan would be the first type of credit that a buyer of a used car would consider. When compared to loans for buying new cars, used car loans differ significantly in several important ways. The final loan amount for a used automobile loan, in contrast to a new car loan, is determined by the age, model, and state of the car. Loans for used cars typically have higher interest rates than loans for brand-new cars. Interest rates for used car loans might be nearly identical to or even higher than personal loans for some credit profiles. Compare the features of personal loans for second-hand cars: Rate of interest Standard interest rates for instant personal loans begin at around 10.49% per year. Public sector banks offer instant personal loans at competitive interest rates. However, the final interest rates for personal loans will depend on factors such as the applicant’s credit history, monthly income, employment status (if employed), and other similar details. Common interest rates for used car loans start around 10% per year. Several PSU banks are now offering competitively lower interest rates. However, the final interest rate provided would also be based on the vehicle’s make and model in addition to the applicant’s credit history. Therefore, a prospective used car buyer with a strong likelihood of applying for a personal loan has to satisfy the lender’s requirements regarding income, employment, and credit. Credit Amount Loan-to-value (LTV) ratios of 80% or less are common for used car financing. Some financial institutions advertise higher LTV ratios specifically for used car loans. The LTV ratio of a used car loan is the proportion of the vehicle’s value that is financed by the loan. A down payment from the buyer’s resources is required to finance the remaining portion of the component. The LTV ratio would be based on the value the lender places on the vehicle after considering the car’s age and make and model. Pre-owned car loan Used automobiles, often known as “pre-owned cars,” are highly regarded. They have become fairly popular in recent years. An instant personal loan for a used car can be used to buy a used vehicle. Customers can get a sizable loan amount with good interest rates, hassle-free applications, flexible payback terms, and quick approval with this collateral-free lending option. Elements determine loan amount: Buyers now have the option of choosing a used car loan, an instant personal loan, or even a top-up on their current mortgage. However, it is important to understand that several elements determine the loan amount. These factors include the used car’s cost, its affordability, and the equivalent monthly instalments (EMIs) that potential purchasers can afford. The loan amount and the required monthly payment will both decrease with a bigger contribution toward the purchase of a used car. Loan Terms The typical loan term for a used car loan is up to five years, while some lenders grant loan repayment terms of up to ten years. However, other elements like the age and condition of the used car may also influence the final tenure. For instance, a lender offering a used car loan may mandate that you pay back the loan within ten years of the date you first purchased your car, with a five-year maximum loan term. Therefore, if you purchase a 7-year-old vehicle, you will have three years to pay back the loan. Lenders typically provide instant personal loan terms of up to five years, while some lenders go as high as seven years. FICO Score Used vehicle loans may be better for borrowers with bad credit than personal loans for used cars, despite appearances. Since instant personal loans don’t require collateral, lenders focus on borrowers’ credit. Personal loan rates are higher for borrowers with credit scores below 750. Used car loans are a good option for borrowers with less-than-perfect credit because they are secured loans. The process to apply for personal loans for a second-hand car Applying for a personal loan is a speedier and easier loan approval process than used car loans because they are unsecured loans. If you purchase a used car from an unorganised operator in the pre-owned car market, the loan procedure may become more difficult. These analyses strongly support obtaining an instant personal loan to pay for a secondhand car. In this situation, you’ll be able to borrow more money at a lower interest rate. But be aware that, depending on your wage and level of expertise at your job, interest rates may alter. Check interest rates according to your eligibility if you’re getting a personal loan to buy a used car. There is no benefit to getting a personal loan if the interest rate compares favourably to that of a used automobile loan. [B-02] Summing-up: This article’s goal is to provide a thorough analysis of crucial considerations about personal loans for buying a second-hand car. Instant Personal loans are appropriate for buying a used car. You should make a wise judgement about a personal loan. Before applying for a personal loan, compare features and interest rates from several banks to discover the best deal. Investment Reliable does not offer financial advice but provides unbiased trading, investing, and finance information. Users ought to always carry out their research. Also visit Piramal Finance which has more in-depth, educational articles.
08-11-2023
Read More
Personal Loan

Personal Loan in Junagadh: Apply Online & Get Instant Approval

Are you looking for personal loans in Junagadh? Do you know personal loans can be hustle free? Then you have come to the right place. We offer a wide range of Personal Loan in Junagadh that suits your requirements at a very reasonable interest rate. [B-01] Where can I get a fast, no-collateral loan application? Most individuals utilize online forms that can be filled out quickly while seeking an Instant Personal Loan in Junagadh. Observe the following rules and regulations: You should immediately employ one-time passwords and Know Your Customer (KYC) checks for step one of authentication. Apply for a personal loan. You choose the amount and conditions of your loan. Make a strategy to repay the money in monthly instalments. To sign the loan agreement, use a digital signature rather than a physical one. Borrowed funds should be deposited into your checking account. You may get loans and credit lines immediately to satisfy your demands. The majority of our rapid loans are pre-approved Personal Loans in Junagadh. What does “pre-approval” for a loan mean? A pre-qualified loan involves minimum documentation and makes things as simple for the applicant as feasible. Filling out a pre-qualified personal loan application takes no time, and the interest rates are the finest in the industry. Personal Loans There are several types of Personal Loans accessible in Junagadh. You may apply for a personal loan in Junagadh and get funds as soon as the next working day. The whole application for the personal loan procedure is done online, so you may complete it from anywhere and obtain the money promptly. You might acquire a personal loan for a few hundred dollars to a few lakhs in as little as a few minutes if you apply for one of our quick pre-qualified loans. A credit card with the Plus logo is also acceptable. We provide instant real and virtual credit cards and instant internet loans. It’s one of the greatest credit cards available right now. Each year, you may earn up to $6,000 in cash back with the Plus Credit Card. Aside from the 5% cashback on recharges and bill payments, you will also get gift cards and a slew of additional perks. You will get an additional 2% cashback incentive if you purchase anything else. Payment After Some Time Our new product will significantly improve your monthly budget. When you join our Pay Later programme, you may be eligible to borrow up to $5,000 monthly. You are free to utilize it whenever you believe it would be most beneficial to you. Our app interacts with various retailers, so you can rapidly top up your balance at sites like Swiggy and BigBasket, make purchases at Myntra, and even pay your energy bills and charge your phone with just a few clicks. Once you’ve paid off everything, you’ll receive one bill that lists all your charges. Isn’t that convenient? Even better, you’ll only have to pay back what you truly spent. Right now, just a tiny number of individuals can get in. How may someone utilize the money from a personal loan? Personal loans are unsecured loans that may be set up easily via a bank or a financial organization that is not a bank. When something is considered “unsecured,” you don’t have to set up any form of security to acquire it. Most Personal Loans in Junagadh feature cheaper interest rates and less paperwork to fill out than other forms of loans. Personal loans are distinct from other forms since they may be used for anything from an unforeseen expenditure to an unanticipated demand. You may utilize a personal loan for whatever you need, including paying off debt, taking a last-minute vacation, fixing your house, purchasing new appliances, or receiving medical treatment. But apart from that, you may utilize the money you acquire from a personal loan for various other purposes. There are several perks when you use our service to apply for a personal loan or another sort of credit. Nothing to back it up Most of our Loans have already been authorized and require a few pieces of paperwork to be turned in. Most of our products require your Permanent Account Number (PAN), your Aadhaar number, and a few other basic pieces of Know Your Customer (KYC) information. There is no need to install any security. No collateral or security is ever required to acquire a fast personal loan or any other credit products we provide on our website. This makes it easier to get a hold of these products. No Need to Go to the Bank Our online application procedure helps you apply for a quick personal loan or other credit product whenever and wherever you desire. With an online loan application service, you may request money without ever having to step into a bank. You can’t get much more spacious than that! Fast and straightforward to disseminate All the loan money for our rapid personal loans is immediately delivered to the borrower’s bank account. Once you’ve switched to Pay Later, you may pay from your Pay Later balance with just one click. Rewards and Special We provide customers who utilize our platform to apply for loans and other forms of credit with various time-sensitive incentives and prizes. We designed this format, similar to the typical “Personal Loan in Junagadh” format. Personal Loans in Junagadh may be able to pick from several loans and other types of financing. Make sure you can acquire a loan or other credit before applying for one. Where should I go right immediately to secure a loan? In Junagadh, an application for a Personal Loan may be sent in immediately. Loans for personal usage, vehicles, residences, and other items. EMI Calculator lets you determine how much you must pay monthly for various loans. Can I receive a fast loan without filling out any forms? You can immediately acquire a loan with your AADHAR number and a one-time password. There may be situations when you need to present additional evidence. How to find out your exact monthly interest rate on a personal loan Using the EMI Calculator on this website, you can find out how much you have to pay monthly on your loan. When you tell the calculator how much you borrowed and how long you have to pay it back, it immediately offers you your EMI. [B-02] Conclusion If you follow the instructions in the section above, receiving a personal loan in Junagadh will be simple. It would help if you also studied the articles on Piramal Finance, which go into deeper detail and educate you more.
08-11-2023
Read More
Home Loan

Home loan Eligibility Criteria Factors & Tips

All financial organisations, including banks and credit unions, use the same home loan eligibility to determine who qualifies for house loans (NBFCs). However, additional requirements may be based on a lender’s specific guidelines. Once familiar with the prerequisites for obtaining a mortgage, the application procedure will move more quickly and easily. Home Loan Eligibility Criteria Minimum Income Rs 12,000 Work experience Almost two years Age 21-70 years Loan amount The lender decides it Credit score 700+ LTV ratio Up to 85% Property type Under construction, land, completed, etc Employment status Salaried or non-salaried Residence type Permanent resident or NRI To qualify for a loan, your criteria may differ from one financial institution to the next. The customer’s income, credit history, and duration of banking relationship are evaluated to establish their home loan eligibility. Factors Affecting Home Loan Eligibility Criteria Age Limit When deciding whether or not to provide a home loan, a lender will look at the applicant’s age as one of the most critical factors. Banks often try to cap the loan term at the borrower’s expected retirement age when approving a mortgage. This means that people in their twenties and thirties who have established themselves professionally may qualify for a loan with a term of up to 25 years. Candidates above 40 may find it more challenging to be considered for a longer term, though. Home loans for single applicants aged 50 and above have traditionally been denied for this reason. Income Let’s break down monetary gains into three groups: salaried, professional, and self-employed. Regardless of home loan eligibility, candidates must provide proof of steady income. If a borrower has steady employment, the lender has reduced default risk. Salaried: Anyone receiving a regular paycheck from the government or a legitimate commercial company qualifies as a salaried individual. Most financial institutions require applicants to have been at their employer for a year before applying. Paycheck stubs, a completed Form 16, bank statements, and a character reference from a current or previous employer are standard requirements of almost every lending institution. Co-applicant and guarantor documentation is also necessary (if applicable). Independent Professionals: Doctors, dentists, architects, engineers, management consultants, chartered accountants, and many more are a few examples of self-employed professionals. Bank statements and tax returns must be provided. Self-employed: Are you the head honcho in your own company or group? Do you own any shares of stock or have any rental properties that bring in money? Consequently, you are included in this category. You may do so without hesitation if you have bank records and tax paperwork to back up your home loan application. Rate of Interest The Financeability of a house loan is inversely proportional to the interest rate. Fewer people will be eligible if the rate is higher, and vice versa. Term of Loan Choosing a longer term for your loan can boost your chances of approval. Lowered and more manageable EMIs are another benefit. There is a catch, though, since you will pay extra interest. Total Amount of Outstanding Loans Institutions providing financial services in India often suggest a 50-60% EMI to income ratio. This will clear the way for any prospective future loans or debt repayment, if any. Any outstanding debts may severely impact the ability to participate. CIBIL Score The Credit Information Bureau India Limited (CIBIL) is India’s primary credit reporting agency, and banks there will look closely at your payment history with them. They keep detailed records of your credit history and dealings with financial institutions. If you have a bad entry, it might drastically diminish your chances of being accepted. Home Loan Eligibility Documents When applying for a home loan, the detailed documentation required might vary from one financial institution to the next. It is customary for a candidate to detail the following: Proof of residence Proof of identity and current passport-sized pictures Financial records and statements Financial aid applications, mortgage loan requests, etc. However, you may apply for a loan after reviewing the documents required from borrowers in your category. Tips to Improve Home Loan Eligibility If you want to improve your chances of getting a home loan, you may do Including a high-earning relative as a cosigner on the application. Use of a prearranged payment plan. Making continuous income and regular savings a priority. Explaining how you often enhance your income. Keeping track of the components of your variable compensation. Doing everything you can to fix your credit if it has any errors. Resolving Existing Debts with Term Restrictions Home Loan Eligibility Calculator The purchase of a first home is often a significant milestone in the lives of millennials as they transition into their roles as heads of their households. However, despite the potential benefits of real estate as an investment, purchasing property might be out of reach for many people, particularly in more expensive regions. You can buy a house that you can call your own with the assistance of a mortgage. Receiving pre-approval for a mortgage is the first step in acquiring one. The amount of your monthly income, the amount of debt you already have, your age, and the number of years before you retire all determine whether you will be accepted for a mortgage loan. It may also indicate the maximum mortgage amount you qualify for in certain circumstances. Utilise the Home Loan Eligibility Calculator to determine the maximum amount of a home loan for which you may be eligible. The convenience of one’s own house allows for calculating home-financing estimates. To use the home loan eligibility calculator provided, you need to input your monthly gross income, the loan term, and any current EMIs. It will tell you the maximum loan amount you are entitled to acquire and the EMI that goes along with it. [B-02] Conclusion Prospective borrowers should meet all home loan eligibility conditions before applying for a mortgage loan. Several variables must be considered, including age, income, employment status, bureau score, and property value. Self-employed people and wage earners have various requirements to qualify for a Home Loan. To qualify for a mortgage loan, all you need to do is meet certain basic conditions. To learn more, consult with an expert at Piramal Financing House. You will receive the guidance.
08-11-2023
Read More
How To?

PPF Interest Rate: How to Calculate Returns

Saving money is the starting point for any financial plan. You have a wide variety of savings accounts available. However, you should prioritise those that provide substantial returns without the associated risk. A personal retirement fund (PPF) account is one of the most common additions. Due to the difficulty in estimating the PPF return without a PPF calculator, it is recommended that you use one. Online PPF calculators work by putting in inputs (investment amount, starting balance, and interest rate) to determine the total value of your investment after a particular number of years. Public Provident Fund PPF exists solely to spur savings. It aims to create a fund with good returns and a tax rebate and help one build a retirement corpus. According to recent data, the rate of interest for PPF is 7.1%. The Indian government has pledged PPF to spur the habit of saving, so there’s almost no danger in funding it. Moreover, its interest, principal, and balance are exempted from tax. How Does a PPF Calculator Work? If you have a PPF, then you must be curious to know the amount of funds deposited to date. In the past, this computation was more complex, and an expert was needed to know the balance and study the results. The PPF calculator expedites several calculations. It considers changing interest rates, which occur every three months. Using the input you provide, the result is calculated. It is also very important to invest in something. When a deposit is made on the first day of the month, interest is applied for the entire fiscal year. The calculator will account for the lower interest rate that applies to deposits made after the fifth of the month. The Best Way to Utilize the PPF Calculator PPF calculators are helpful financial tools that help you calculate PPF returns. The PPF calculator is accessible in several formats. It’s possible that you can come across some of the following types of modes: Fixed and Variable Amounts for the Whole Year Fixed and Variable Amount for the whole month How to Calculate Expected Returns from PPF? To calculate the PPF return, there is a formula that gives the correct result. The formula is as follows : A = P [({(1+i) ^n}-1)/i] Where, The amount of Maturity is denoted by A The amount of principal invested is denoted by P The rate of interest is denoted by i The tenure for which the amount in PPF is invested is denoted by n Tax Benefits of Investing in PPF PPF falls under the category of EEE, which means “thrice exempt” from being taxed. Any individual saving under PPF can claim a full tax rebate under Section 80C of the Income Tax Act. But remember, you can’t put more than Rs. 1.5 lakh into your PPF in a single fiscal year. The collected principal plus any interest earned are also tax-free at the time of withdrawal. You can’t get the money out of your PPF account until it matures. However, a PPF account holder can be changed. Be mindful, though, that a PPF account cannot be terminated before its tenure. The nominee can only request that the account be closed if the account holder dies. Benefits of Using a PPF Calculator Using a PPF calculator is very easy. Especially for first-time investors, it can be very useful. If you are starting now, you can benefit greatly from making use of a free online PPF calculator to estimate the ROI. Calculating how much you should invest each year to meet your financial goals is simplified. Because the PPF calculator is automated, you may use it to better plan your tax-saving investment and make the most of your money. Post Office PPF Account A post office PPF account is similar to a PPF account. The features of a post office PPF account have the following attributes: In a given fiscal year, you can put up to Rs. 1.5 lakh into your PPF account. A post office PPF can only receive a maximum of 12 annual deposits. The money you put into your PPF, any income you make, and any money you withdraw at maturity are all exempt from taxes because it is an EEE (EEE) investment. You must deposit at least Rs. 500 per year to keep PPF active. Post office PPF accounts accrue interest on a yearly basis, which is compounded and distributed on March 31 of each year. Is a PPF Account preferred at a bank or a post office? The PPF benefits can be reaped at both banks and post offices. The features of the PPF plans are the same whether you create an account at a bank or a post office. Both options for creating an account can be considered secure and user-friendly. It’s important to remember that, just like banks, post offices now provide members with internet access to their PPF and other government savings program accounts. Steps to Use the PPF Calculator: The first step is to input the amount of the annual investment or adjust the slider for the desired amount Tenure of your investment After all the details are put in, the PPFO calculator will give you details like interest levied, total funding, and the value at the time of maturity. Benefits of Using the Postal PPF Calculator It provides an idea of what you will receive in exchange for your funding. It assists in analysing the net investment for any given financial year. The PPF calculator at the Post Office helps investors get an estimate of their ROI quickly. Points to Note: PPF Calculation You must note a few major points while calculating PPF. They are as follows : The highest amount you can invest annually is Rs. 1.5 lakh. An annual minimum of Rs. 500 is required to open a PPF account. The compounding of interest occurs annually at the end of the fiscal year. The maturity period is 15 years, and the proceeds are completely tax-free. The Finance Ministry may announce quarterly changes to the PPF interest rate, which is subject to change every quarter. [B-02] Conclusion The PPF is a convenient way to save for retirement. It requires little effort on the part of the investor. It’s the safest form of investment. It’s a good retirement plan or other long-term funding source. It is preferred because of the tax relief under Sec. 80C. Even if you know the formula, manually calculating is tedious. You’ll be making multiple contributions over time. As a result, a PPF calculator available online can be a great help and ease the whole process.
08-11-2023
Read More
Business Loan

List of Documents Required For Small Business Loan

List of Documents Required For Small Business Loan A list of questions comes to one’s mind while applying for a small business loan. What paperwork is required to obtain a business loan? What kind of paperwork is needed for a business loan? How long ought the business loan processing to take? A company loan is a straightforward approach to getting money to handle any financial issues. The funds secured in the form of a business loan may be utilised for a variety of purposes, including business expansion, inventory maintenance, office rent, staff recruiting, raw material purchases, and new venture startup. There are a lot of banks and non-bank finance companies (NBFCs) that offer loans to small businesses loans with easy repayment terms and low-interest rates. But each lender has different requirements for who can get a loan and what they can lend. To get a business loan, borrowers must also show several other documents. [B-01] When you apply for a loan at a bank or NBFC, you have to fill out a lot of paperwork. Loan applications could be delayed or even turned down if some documents are missing or if they have the wrong information. It is wise to be aware of the list of supporting documentation required for small business loans from banks and NBFCs before applying. The majority of the paperwork is standard, while the exact list may vary from lender to lender. 1. Common documents. Even though different types of businesses and business loans require different sets of documents, some documents don’t change. These have “Know Your Customer” documents like proof of a company’s existence, incorporation certificates, partnership agreements, etc. PAN cards are another thing that all types of small business loans need. The company’s PAN card, as well as the cards of its owners, partners, and other important people, must be turned in. The proof of address documents come in third on the list of documents that people often need. Again, you will have to show proof of the addresses of both the business and its owners. 2. Bank statements. When applying for an SME business loan, bank statements are a crucial component of your application. If you are a first-time borrower, you will often need to furnish statements dating back the previous six months. However, if your lender knows you have a history of borrowing from them, they might ask for statements going back up to a year. 3. Documents for SMEs These typically include the paperwork required for sales tax, VAT, and service tax registration. plus exercise. Additionally, you will need to submit the company entity’s IT returns. and the company’s utility expenses. Additionally, if necessary, you might need to provide things like the Memorandum and Articles of Association, the Bill for Municipal Taxes, etc. 4. Self-employed or Proprietor Documents The first item on the list is evidence of a sole proprietorship’s identity. The next step is to provide your PAN card, IT returns, and utility bills in the business’s name. You must present one of the following as identification: a passport, a driver’s license, or a PAN card. The last requirement is address verification, which can be done with a driver’s license, passport, or voter ID card. 5. Financial Documents Small business loans, both secured and unsecured, need proof of income like tax returns and recent bank statements. For some unsecured loans, having proof that a business is still running can be helpful. Lenders can figure out how well a business loan has done by looking at tax returns and income calculations from previous years. Some banks also need a certified accountant’s audited balance sheet and profit and loss statements from the business’s last two years. The goal of the balance sheet is to give a clear picture of the company’s assets and liabilities. Lenders sometimes ask how loans will be used for business loan plans. If needed, applicants must include supporting documents like budgets and projections of future cash flows. To do this, borrowers need to think about two possible futures: the first must show how a business will do without more money, and the second must show how the loan will help the business grow. Additionally, borrowers looking for loans without collateral might need to provide the following documents: • A letter from their bank about authorising an overdraft • Partnership Agreement • A certificate of incorporation and a memorandum of association or articles of association • Audit reports for taxes The Different Types Of Small Businesses: A Private Limited Company 1. A private limited company is a privately • Small businesses where an owner’s responsibility is restricted to their shares • The maximum number of stockholders is 50. • Shareholders are prohibited from transferring or selling their shares without first making them available to other shareholders for acquisition. • Additionally, the stockholders are prohibited from selling their shares to the public. 2. Proprietorship businesses • In a sole proprietorship, the owner is solely accountable for the operation and its financial success. • No intervention from any other outside party is present. • The proprietor is responsible for paying taxes on the income. • Unless the receipts reach a certain threshold, there is no audit for such a business. 3. Self-employed professionals and self-employed non-professionals • Professionals who work for themselves as independent contractors are entrepreneurs. They take on the danger and expense of their work. • Self-employed non-professionals can work as store owners, artisans, etc. They either put their own money or money obtained through a business loan into their venture. [B-02] Summing-up: For a business loan to be approved, loan applications must be properly filled out, and KYC documents and financial statements must be provided as proof. Banks and NBFCs can also get the applicants’ signatures on bank statement verification forms so they can check the signatures. Before applying for a small business loan, borrowers must have all of the necessary financial documents. This is true no matter what kind of loan they want. The paperwork you need to get a loan can vary from one bank to the next. So going to a trustworthy lender like IIFL Finance can make the process easier. Also, visit Piramal Finance for more in-depth educational articles.
08-11-2023
Read More
Home Loan

Types of Home Loans in India

Introduction to Home Loans in India The Indian housing finance market has evolved to offer a range of home loan products, catering to the varied needs of borrowers. Home loans play a pivotal role in enabling individuals to acquire, construct, or renovate properties, making homeownership more accessible. Standard Home Loan A standard home loan is designed to assist individuals in purchasing a residential property, whether it's a new construction, an under-construction property, or a resale. This is the most common type of home loan availed by homebuyers. Eligibility Criteria Eligibility for a standard home loan typically depends on factors such as the applicant's income, credit score, age, employment stability, and existing financial obligations. Lenders assess these parameters to determine the borrower's repayment capacity. Key Features and Benefits Loan Amount: Up to 75-90% of the property's value, depending on the lender's policies and the borrower's profile. Tenure: Generally ranges from 5 to 30 years, offering flexibility in repayment. Interest Rates: Can be fixed or floating, with rates varying across lenders. Tax Benefits: Borrowers can avail tax deductions on both principal and interest repayments under sections 80C and 24(b) of the Income Tax Act. Home Construction Loan Home construction loans are intended for individuals who own a plot of land and wish to construct a residential property on it. Unlike standard home loans, these loans cater specifically to construction purposes. Eligibility Requirements Applicants must own the land on which they plan to build and provide detailed construction plans, cost estimates, and necessary approvals from local authorities. Lenders evaluate the borrower's financial stability and the feasibility of the construction project. Disbursement Process and Stages The loan amount is disbursed in phases, corresponding to the progress of the construction. Common stages include: Foundation Level: Initial disbursement upon laying the foundation. Plinth Level: Subsequent release after completing the plinth. Roof Level: Further disbursement upon reaching the roofing stage. Completion: Final installment upon full completion of the construction. This phased disbursement ensures funds are utilized appropriately at each construction stage. Land or Plot Loan Land or plot loans are designed for individuals aiming to purchase a piece of land for residential construction. It's important to note that these loans are solely for purchasing residential plots and not for agricultural or commercial land. Eligibility Criteria Eligibility factors include the applicant's income, creditworthiness, and the property's location. Lenders may have specific stipulations regarding the commencement of construction within a certain period after purchasing the plot. Terms and Conditions Loan-to-Value (LTV) Ratio: Typically lower than standard home loans, often around 70% of the plot's value. Interest Rates: Generally higher due to the increased risk associated with land purchases. Tenure: Usually shorter, ranging from 10 to 15 years. Home Improvement Loan Home improvement loans provide financial assistance for renovating or repairing an existing residential property. This can include activities like painting, flooring, waterproofing, and upgrading fixtures. Eligibility and Documentation Homeowners with a clear title to the property are eligible. Required documents often include proof of ownership, income statements, renovation plans, and cost estimates. Benefits and Limitations Benefits: Enhances the property's value and living conditions; tax benefits may be available on interest payments. Limitations: Loan amounts are typically smaller, and interest rates may be slightly higher compared to standard home loans. Home Extension Loan Home extension loans are intended for expanding an existing residential property, such as adding new rooms, floors, or balconies to accommodate a growing family. Eligibility Criteria Borrowers must own the property they wish to extend and provide a clear property title. Lenders also assess income stability, creditworthiness, and detailed extension plans. Key Features Loan Amount: Based on estimated extension costs and borrower eligibility. Interest Rates: Comparable to standard home loans, but may vary across lenders. Tax Benefits: Interest payments qualify for tax deductions under Section 24(b). Flexible Repayment: Can be structured like a regular home loan, with EMI-based repayment. Top-Up Home Loan A top-up home loan allows existing home loan borrowers to borrow additional funds over and above their original loan amount. It is commonly used for renovations, personal expenses, or other financial needs. Eligibility Requirements Borrowers with an ongoing home loan and a good repayment history are eligible. The loan-to-value (LTV) ratio and outstanding loan amount play a role in determining the approved top-up loan amount. Advantages and Considerations Lower Interest Rates: Compared to personal loans, top-up loans have lower rates. Flexible Usage: Can be used for any purpose, including home renovation and medical emergencies. Tax Benefits: If used for home-related expenses, tax benefits may apply under Sections 80C and 24(b). Repayment Tenure: Typically aligns with the existing home loan tenure. NRI Home Loan Purpose and Target Audience NRI home loans are designed specifically for Non-Resident Indians (NRIs) who wish to buy property in India. These loans help NRIs invest in residential real estate without physically being present in the country. Eligibility Criteria for NRIs Must be an NRI, PIO (Person of Indian Origin), or OCI (Overseas Citizen of India). Income verification from overseas employers or businesses. Valid passport and work permit required. Key Features and Benefits Loan Tenure: Typically 5 to 20 years. Higher Interest Rates: Slightly higher than regular home loans due to associated risks. Repayment: Must be done through NRE/NRO accounts in India. Tax Benefits: NRIs can claim tax deductions on home loan interest under Indian tax laws. Pradhan Mantri Awas Yojana (PMAY) Loan Overview of PMAY Scheme Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing affordable housing to economically weaker sections through subsidized home loans. Eligibility Criteria Applicable to first-time homebuyers from low- and middle-income groups. Must meet income criteria as per PMAY guidelines. Property must be located in an eligible urban or rural area. Subsidy Details and Application Process Interest Subsidy: Up to 6.5% under the Credit-Linked Subsidy Scheme (CLSS). Loan Amount Limit: Varies based on income bracket. Application Process: Apply through approved banks and financial institutions. Composite Home Loan Concept and Applicability A composite home loan combines the purchase of a plot and subsequent construction costs into a single loan. It is ideal for individuals who wish to buy land and construct a home immediately or within a set period. Eligibility Requirements Must own or be in the process of purchasing a plot. Construction must start within a specified time, typically within 2-3 years. Benefits and Limitations Single Loan Structure: Eliminates the need for separate land and construction loans. Lower Processing Fees: Compared to taking separate loans. Construction Delay Risks: If construction is delayed, lenders may impose penalties. Conclusion India offers a variety of home loan options catering to different financial needs. From standard home loans and construction loans to specialized products like NRI home loans and PMAY subsidies, borrowers have a wide range of choices. When selecting a home loan, it’s essential to consider factors such as interest rates, loan tenure, eligibility, and specific requirements like construction needs or property location. Comparing multiple lenders and understanding loan terms can help borrowers make informed decisions that align with their financial goals.
08-11-2023
Read More
Business Loan

How to avail of a collateral-free business loan in India?

When you require a business loan, you can opt for many options. Some of the available loan types are term loans, bridge loans, working capital limits, and several others. Although there are several ways in which you can obtain a business loan in India, you must be if you are ready to provide the collateral or not. As per the rules of prominent lenders, business loans above a certain value need a provision of collateral. The reason is the reduced risk for the lenders. If the borrower fails to pay back the loan amount on time, the lender can use the collateral to recover the debt. Therefore, the borrower will lose hold of the asset given as collateral. A collateral need not just a house or a car, some lenders also accept bonds, equity shares, gold, and other assets as collateral. Owing to these reasons, collateral-free business loans are gaining popularity. Herein, you can avail of a business loan without any need to provide security. Read on to learn more about these loans and how you can benefit from it. [B-01] Can I get a business loan without collateral in India? Yes, you can get a collateral-free business loan. Such debts are also known as unsecured loans. It means you are not giving any security to the lender; hence, there is no chance of losing your assets. However, certain rules should be taken into account when availing of a collateral-free business loan in India. Things to remember about an unsecured business loan in India You should know that when you apply for a collateral-free business loan, you may be unable to get the exact amount. Since there will be no security, most creditors limit the maximum amount for such loans. The interest rate on collateral-free loans will be high compared to a secured loan. This is because the lender will adjust the interest as per the risk involved. Collateral-free business loans for MSMEs are quite risky. Hence, lenders require a lot of papers to process this loan. You will have to submit proof of your income in the form of IT returns, bank statements, Form 16 etc. You must have a credit score of above 700 to avail of this loan. If you cannot submit the required papers, the chances of loan rejection are higher. You have to remember that business loans with collateral are not flexible in nature. If you fail to pay one EMI, you will be charged late payment interest on top of the usual loan interest. Similarly, you might not be able to negotiate regarding any changes to the repayment term. Collateral-free loans also come with various charges that will increase your financial burden. For instance, you might get charged for loan prepayment, foreclosure, settlement, etc. Therefore, learning about the charges beforehand will help you decide if you want to go with an unsecured loan. How to avail and unsecured loans in India for your business? Before making any decision, you should know the process of availing of a collateral-free loan. If you are unaware of the same, you might get into trouble later. To help you with the process, here are details of the entire process, from loan application to approval and payment: – First, you need to find the best lender you want to collaborate with to take the loan. The lender needs to be trustworthy and licensed. Check the reviews and feedback from past clients or the portfolio to understand what clients the creditor dealt with. It would be best if you also consider the reputation of the lender. It would be best to go with PSUs because they are directly under the supervision of the government and offer minimal risk-associated loans. You also need to check the type of unsecured business loans they provide. Some creditors, mostly private ones, offer only unsecured personal loans that you can use as business credit. On the other hand, if you opt for banks and NBFCs, most of them offer collateral-free business loans. You will need to submit your business license and registration number, GST ID, bank statements, and many such documents. Knowing the types of unsecured loans will help you make a well-informed decision without any concern. Ensure to select a creditor that offers business loans with low-interest rates and high loan amounts. Since you are opting for unsecured loans, the interest rates will be high, and that’s something you have to deal with. You must also ensure that the lender is willing to offer a loan amount that meets your need. There is no need to get a loan if the amount is not enough to meet all your needs. Then log on to the website of the lender and complete the online application process. here you must give all your details and upload the papers as required. If your profile meets their rules, the lender will get in touch with you to confirm the proposal. After you agree to the terms, the loan process will be completed and the amount will be sent to your account. Your repayments will start from the next month and the amount will be debited to your account on a given date. Kindly ensure that the EMI amount is present in the account at least two days before the due date. [B-02] Conclusion There are so many different ways in which you can opt for a collateral-free business loan for MSME. After reading the information given above, you will be in a better position to make a decision regarding opting for collateral-free business loans for MSME, along with the process of getting one for your business. If you still have any questions, you can contact the experts at Piramal Finance. They offer various types of business loans to help you expand your business without any issues.
08-11-2023
Read More
Home Loan

How To Make Home Credit Loan Payments Online?

If you need cash immediately, a personal loan from Home Credit is the perfect option since it is so simple to qualify for. A personal loan may be utilized for a variety of purposes, including an unexpected medical expenditure, a dream trip, or much-needed house repairs. You may apply for a Home Credit loan payment online from the comfort of your own home or at work. If you satisfy the conditions and provide the required papers, Home Credit will grant you immediate online approval for a loan of up to Rs. 2.4 lakh. [B-01] Aspects of a Home Credit Loan Payment Online Loan applications for this sort of assistance must be submitted online. As a result, you can be certain that you will not have to wait long in line to get the funds you want. This plan’s application procedure is simple since it may be completed at home at any time of day or night. People who seek a credit advance may borrow up to Rs. 5 lakhs on flexible conditions and Can get it easily. When a customer applies for a cash loan via Home Credit, they may expect to hear back relatively immediately. This is because the whole loan application process may be completed online, making loan approval significantly quicker. Because the organization offers an easy-to-use loan application platform, obtaining one of these loans will be fast and uncomplicated. If the application is completed and authorized online, the loan amount will be sent to the borrower’s bank account as soon as possible. A borrower may be able to get cash rapidly via this program in the event of an emergency. Home Credit Cash Loans may be applied for entirely online, eliminating the need for applicants to bring in physical documentation to establish their identity. If a consumer wishes to apply for a loan online, they just submit digital copies of the necessary papers. How to use the official website for Home credit loan payment Fill out the loan agreement and double-check your calculations. Following that, you’ll be sent to a website that explains when and how to do your Home Credit loan payment online. To complete the purchase, use a debit card or another method of online payment. We will give you a one-time password to the phone number you provided when you registered. Enter your transaction password or one-time password (OTP). Once your money has been processed, you will get a confirmation email or text message. Homeowners can repay their Home credit loan payment using the mobile app. Any Android user who has the Home Credit India app installed on their device can access the app from the Google Play Store and use it to make a Home credit loan payment whenever and wherever they choose. The following is a list of the steps that you need to take to pay your Home credit loan payment: You will find the response if you navigate to Home Credit or if you use the Home Credit app that is available for your mobile device. Fill in either the number of the loan account that you have or the phone number that you used to establish the loan. To complete the transaction, simply click the “Pay” button. You are free to choose how you would like to make payment for this. A verification text message should be sent to your phone within the next few moments. You can make cash payments toward the monthly instalments (EMIs) of your Home Credit personal loan at any Axis Bank, ICICI Bank, or India Post location that is listed on your statement. If you want to repay a loan from Home Credit, pay EMI online or you can go to any branch of a bank that specializes in assisting customers with issues of this nature to get the assistance you require. Making A Home Credit Loan Payment Using Mobile Wallet It is possible to expedite the process of paying off the Home Credit India EMI balance by transferring the necessary funds through PayTM or PayU. You are now able to check the statement for your Home Credit Personal Loan while you are on the go, thanks to the Home Credit India mobile app. To make a Home credit loan payment using EMI, the following steps need to be taken: If you are interested in utilizing Home Credit EMI, pay online by visiting their website or searching for it within a mobile payment app. Fill in either the number of the loan account that you have or the phone number that you used to establish the loan. To complete the transaction, simply click the “Pay” button. You are free to choose how you would like to make payment for this. The discussion is over now. A verification text message should be sent to your phone within the next few moments. You can obtain a copy of the statement that pertains to your home equity loan right here. With the Home Credit India app, you can check the status of your loan whenever you want and from any location, you happen to be in. [B-02] Conclusion Home credit loan payment is easy and simple. To know more about it, you can contact Piramal Finance, who will give you expert advice on what to do and how to do it easily.
08-11-2023
Read More
Personal Loan

How to Get a Loan on an Aadhar Card Only?

In today's fast-paced digital world, financial emergencies can arise at any moment. Whether it’s a medical expense, urgent home repair, or unplanned travel, having access to quick credit is often essential. Fortunately, with the evolution of digital lending in India, getting a personal loan using just your Aadhaar card is now easier than ever. This guide provides a detailed walkthrough on how to apply for a personal loan using your Aadhaar card, what documents are required, eligibility criteria, tips for faster approval, and the benefits of Aadhaar-based e-KYC loans. What Is an Aadhaar-Based Personal Loan? An Aadhaar-based personal loan is a type of unsecured loan where your Aadhaar card acts as the primary KYC document. Lenders use the Aadhaar details to verify your identity, address, and other demographic data through e-KYC, enabling a paperless and instant loan process. Unlike traditional loans that require multiple physical documents and bank visits, Aadhaar-linked loans can often be approved and disbursed within 24-48 hours, and in some cases, instantly. Why Aadhaar Card Is Key to Getting Instant Personal Loans The Aadhaar card, issued by UIDAI, is a universally accepted identification document in India. It contains your biometric and demographic data, making it a powerful tool for digital identity verification. Key reasons Aadhaar makes loan processing faster: E-KYC facility: Lenders can verify your identity in real-time using Aadhaar OTP or biometric authentication. Digitized process: Eliminates the need for physical document submission and manual verifications. PAN linkage: If your Aadhaar is linked to your PAN and bank account, loan approvals can be even faster. Eligibility Criteria for Aadhaar-Based Personal Loan Even though the process is simplified, lenders still assess your creditworthiness before approving a personal loan. Here are common eligibility requirements: Criteria Description Age Between 21 and 60 years Citizenship Indian resident Employment Salaried or self-employed Minimum Income ₹15,000 to ₹25,000/month (varies by lender) Credit Score Minimum 650+ (for most lenders) Aadhaar Linkage Aadhaar should be linked with your mobile number and PAN Tip: If your Aadhaar isn’t linked to your phone number, complete the update at an Aadhaar Enrolment Centre to access e-KYC features. Documents Required In many cases, your Aadhaar card alone can be enough for KYC, but some lenders may ask for additional documents based on their internal risk policies. Here’s a general list: 1. Mandatory Documents Aadhaar Card (as identity and address proof) 2. Additional documents (as needed) PAN Card (for credit assessment) Income Proof: Salaried: Latest salary slips or bank statements and ITR, GST filings for self-employed Photograph (passport-size) Cancelled Cheque (for disbursal purposes) How to Apply for a Personal Loan Using Aadhaar Card Here is a step-by-step guide for applying: Step 1: Start your loan on the Aadhaar Card application. Step 2: Enter your mobile number linked to your bank account. Step 3: Enter the OTP received on your mobile number. Step 4: Enter the required documents, such as the Aadhaar and PAN cards, and verify them. Step 5: Bank account verification. Step 6: Income Verification. Step 7: Check the Loan Final Offer, Accept, and continue the final process. Benefits of Using Aadhaar for Personal Loans 100% Digital Process: Apply, verify, and sign digitally without stepping out. Quick Verification: Aadhaar-based e-KYC speeds up identity checks. Fewer Documents: Minimal paperwork is needed. Instant Disbursal: Funds in your bank within hours (if eligible). Improved Access: Aadhaar enables even semi-urban and rural borrowers to access credit. Factors That Influence Loan Approval Even with Aadhaar-based processing, lenders evaluate the following before approving your loan: Credit Score (CIBIL or Experian): A higher score increases your chances. Repayment History: Existing EMIs or defaults can affect approval. Income Stability: Salaried or consistent income stream preferred. Employer Profile: MNCs and government employees are seen as lower risk. Debt-to-Income Ratio: Ideally below 40%. Common Mistakes to Avoid To ensure a smooth approval process, avoid these errors: Mistake Why It’s a Problem Aadhaar not linked to mobile Fails e-KYC OTP verification Low credit score Leads to rejection or high interest Incomplete application Slows down processing Uploading unclear documents Verification delays Applying with multiple lenders simultaneously Can hurt credit score Is It Safe to Use Aadhaar Online for Loans? Yes, if you’re applying through RBI-registered lenders or trusted platforms with SSL encryption, your data is safe. Always ensure: The site uses HTTPS The lender is NBFC or bank authorized by RBI You don’t share OTPs or sensitive info via SMS or calls Pro Tip: Never upload Aadhaar to unknown websites or share OTPs with unverified agents. Interest Rates and Charges Interest rates for personal loans on an aadhaar card vary depending on your credit profile and the lender’s policies. Parameter Typical Range Interest Rate 10.5% to 24% p.a. Loan Amount ₹10,000 – ₹25,00,000 Tenure 6 months to 60 months Processing Fee 1% to 3% of loan amount Prepayment Charges 0% to 5% (depending on lender) Always read the loan agreement before accepting to understand the charges involved. Tips to Improve Your Chances of Loan Approval Maintain a Healthy Credit Score: Pay bills and EMIs on time. Link Aadhaar with PAN and Bank: Ensures faster validation. Avoid Frequent Loan Applications: Apply only when needed. Choose the Right Tenure: A longer tenure can reduce EMIs and improve approval odds. Verify All Details: Errors in application forms can delay approval. Can You Get a Personal Loan with Aadhaar Only – No PAN? Some lenders offer micro-loans or small-ticket personal loans (under ₹50,000) using Aadhaar only. However, for higher amounts, PAN is generally mandatory due to: Credit score checks Regulatory requirements Tax compliance If you don’t have a PAN, apply for one through the NSDL or UTIITSL portal. It’s free and quick. What to Do If Your Loan Is Rejected Loan rejection isn’t the end of the road. Here's what you can do: Check your credit report for issues or discrepancies. Improve your credit score by paying off existing debts. Apply with another lender offering lenient eligibility. Opt for smaller loan amount and gradually build your credit. Consult your bank/NBFC – they may suggest alternatives. Final Thoughts: Should You Use Aadhaar for Instant Personal Loans? Absolutely, if you need quick, hassle-free access to funds, Aadhaar-based personal loans are a great option. Just ensure you apply with reputable lenders, keep your documents ready, and maintain a solid credit profile. By leveraging Aadhaar’s digital infrastructure, you not only save time but also enjoy a more transparent, paperless borrowing experience.
08-11-2023
Read More