No matter what you do or where you are, sudden expenses are a part of everyone’s lives. While you tackle most of these expenses on your own, some could require a significant amount urgently, and you might not have that kind of money available in hand at all times. This is where a personal loan can save you. Even if you are looking for an instant loan online of INR 5,00,000, you can get it easily in a few steps. Let’s have a look at the eligibility criteria and other prerequisites for getting a personal loan online.
Personal loan eligibility criteria to get a personal loan:
Age – The applicant must be at least 21 years old and a maximum of 60 years old. Some lenders provide personal loans to people up to 65 years of age. It is mandatory to meet this criterion whether you are applying for a personal loan online or offline.
A minimum credit score of 700 – It is important to maintain a good credit score to prove your financial credibility to your lender. Most lenders ask for a CIBIL of 700 or above while giving personal loans.
Meeting minimum income criteria – Banks or NBFCs has fixed minimum income criteria which need to be met by the borrower to take the loan successfully. You will be required to provide income proofs for the same.
Stable income – Whether you are a salaried employee or own a business, you need to have a stable income to acquire a personal loan.
Documents required to get a personal loan of 5 Lakh:
Getting a personal loan requires minimal documentation. It is still important for you to keep all the documents handy before you proceed with your personal loan online application. Following is the list of documents that you will be required to upload at the time of application:
Identify proof document
Address proof document
Salary slips for the last three months or ITR
Bank statements for the last six months
Steps to get a personal loan of INR 5,00,000:
Below mentioned are the steps to apply for a personal loan online of Rs 5 Lakh:
Once you have selected the loan provider that you would like to borrow from, visit their official website or download their mobile application.
Login to their site or sign up if it is your first time using their platform.
If you fit the personal loan eligibility criteria, fill in the application with the required details, i.e., your basic personal information.
Fill in the desired amount, i.e., INR 5,00,000, and select the repayment tenure according to your repayment capacity.
Once the details have been filled in, proceed by uploading all the mentioned documents.
After you have uploaded the documents successfully, you need to wait for them to be verified.
Post-completion of the verification process, you will receive approval on your loan. You will be notified through text message and email upon approval.
The loan amount will be directly transferred to your bank account post approval of your application by your lender.
Benefits of getting a personal loan:
Whether you get an instant personal loan of 5,000 or 5,00,000, there are some great benefits to taking it. Some of them are mentioned below:
1) Flexible usage:
One of the biggest advantages of getting a personal loan is that you can use the money however you like. The lender doesn’t put any restrictions on the usage of this loan. You can splurge on a new gadget, pay for a trip, spend it on your wedding, or any other expense that you want to fund. The lender is happy to give you a personal loan as long as they know they will get the repayments on time.
2) EMI options available:
Easy EMI options will be available to you when you opt for an instant loan. The lender often puts across multiple EMI options with different tenures at the time of applying for the loan. You can pick up the EMI and tenure as per your capability to repay them. You can go for a shorter tenure if you want to get rid of the debt early or choose a longer one if you want to go easy on the EMIs and clear the loan slowly. You get to decide the EMI most suitable for you out of the given options, which makes this kind of loan favorable for a lot of people.
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3) Online application:
It is extremely convenient to get instant cash loans in today’s digital times. You can quickly avail of a loan of even Rs. 5 lakh by going to the lender’s site and filling in a few details. Unlike offline, you do not have to go anywhere and run behind people for an update on your loan. You get updates right on your mobile phone, and the entire process becomes transparent.
4) Minimal paperwork:
Traditionally, loans came with a lot of paperwork. The thought of getting endless documents copied and then manually signed to be submitted may appear exhausting to many. The good news is personal loans today require you to submit minimal paperwork work in a convenient manner online. The entire process has been simplified and only takes a few minutes.
5) Fast approval:
Conventional loans took days or even months to get approved. That is not the case anymore, especially not with personal loans. Personal loans have been created to provide relief to people. They are made to be sanctioned fast. A person applying for an instant personal loan is expected to require urgent money. These financial institutions try to release the loan amount as early as possible. If the documents that you provide are correct, your loan gets credited to the account the moment your application gets approved.
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Summary:
Until a few decades ago, getting an instant loan online of INR 5,00,000 would seem impossible. Various financial institutions have made it possible with the help of technology and great services. If you have the right documents and fit the eligibility criteria, you will be able to get a loan for yourself of as big an amount as five lakhs in no time. The loan amount can be used for personal expenditures as well as any emergencies.
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According to a 2023 report by the Employee Benefit Research Institute (EBRI), only 52% of U.S. adults reported having life insurance. While we may not like to think about it, preparing for the future is crucial. Life insurance offers peace of mind, knowing your loved ones (or your business) will be financially secure in your absence.
This post will guide you through everything you need to know about life insurance planning, from understanding different types of policies to using them for both personal and business needs.
Read along so that you can plan a brighter tomorrow.
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Understanding Life Insurance
Life insurance is a contract between an individual (the insured) and an insurance company (the insurer). The insured pays regular premiums to the insurer, typically on a monthly or annual basis.
In return, the insurer promises to provide a lump-sum payment, known as the death benefit, to the designated beneficiaries (whether an individual or a business owner) named in the policy upon the insured’s death.
How does it work?
Understanding how life insurance works is crucial for both individuals and businesses. Below, we’ll outline the key steps involved in a life insurance policy, from purchasing to the payout process, ensuring financial protection for you and your loved ones, or continuity for your business.
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Policy Purchase: You buy a policy from an insurance company, stating how much coverage you want and who will receive the benefit when you pass away.
Premium Payments: You pay premiums regularly to the insurance company to keep the policy active. This can be done monthly, yearly, or as a lump sum.
Coverage Period: As long as you keep paying premiums, the policy stays active. It can cover a set period of time (term life insurance) or your entire life (permanent life insurance).
Death Benefit Payout: When you pass away, your beneficiaries file a claim with the insurer, providing proof of death.
Claims Processing: The insurer reviews the claim and, if approved, pays out the death benefit to your beneficiaries.
Beneficiary Use: Your beneficiaries can use the money to cover expenses like funeral costs, debts, or daily living expenses, providing them with financial stability during a tough time.
Types of Life Insurance Policies
Here’s a simple overview of various life insurance options, suitable for both individuals and businesses.
Individual Life Insurance
Term Life Insurance: Covers you for a certain time, like 10 or 20 years. Good for things like paying off a mortgage or supporting your family if something happens to you.
Whole Life Insurance: It covers you for your whole life. It has a savings part that grows over time, but it costs more than term life insurance.
Universal Life Insurance: Similar to whole life insurance but more flexible. You can change how much you pay and how much goes into savings.
Variable Universal Life Insurance: This lets you invest part of your premiums in the stock market, so it can grow more, but it’s riskier.
Guaranteed Universal Life Insurance: Gives you fixed growth on your savings, so you know what you’ll get back.
Final Expense Insurance: Covers things like funeral costs so your family doesn’t have to pay.
Business Life Insurance
Buy-Sell Agreements: Help businesses if an owner dies. It pays for the owner’s share so the business can keep running.
Group Term Life Insurance: Businesses can offer life insurance to their employees as part of their benefits package.
Executive Bonus Programs: Businesses can use this to give their top employees extra money and life insurance.
Estate Planning: Businesses can use life insurance to plan for passing the business on to someone else when the owner dies.
Benefits of Life Insurance
More than 100 million Americans are uninsured or underinsured when it comes to life insurance, If they understand the benefits as given below, they can understand how important it is to have life insurance, whether in businesses or for individuals.
For Individuals
Life insurance is vital for individuals to secure their finances and provide for their families in case of unexpected events. Let’s look at how individuals benefit from life insurance.
Financial Protection: Life insurance provides a financial safety net for loved ones in the event of the policyholder’s death, ensuring they are financially secure.
Debt Coverage: It helps pay off outstanding debts such as mortgages, loans, and credit cards, relieving the burden on family members.
Income Replacement: Life insurance replaces lost income, helping beneficiaries maintain their standard of living and meet ongoing financial obligations.
Estate Planning: It facilitates the transfer of wealth to heirs, ensuring smooth estate settlement and minimizing estate taxes.
For Businesses
Businesses need life insurance to stay financially stable and keep operations running smoothly during unforeseen circumstances. Let’s see how life insurance helps businesses.
Key Person Coverage: Life insurance protects businesses against financial losses resulting from the death of key employees or partners, covering expenses like recruitment and training.
Business Continuity: It provides funds to cover operating expenses, debts, and salaries, ensuring business continuity during the transition period after the death of an owner or key employee.
Buy-Sell Agreements: Life insurance funds buy-sell agreements, allowing surviving partners to buy out the deceased partner’s share of the business, ensuring smooth ownership transitions.
Loan Protection: Life insurance can be used to secure business loans, providing lenders with assurance that debts will be repaid in the event of the policyholder’s death.
Employee Benefits: Offering life insurance as an employee benefit helps attract and retain top talent, enhancing employee satisfaction and loyalty.
Using Life Insurance
Life insurance is a valuable tool for both businesses and individuals, helping to meet financial needs and offer peace of mind. Let’s see how it works in different situations.
Life Insurance in Business
Businesses use life insurance to keep running smoothly, protect against financial challenges, and attract talented employees. Here’s how it helps businesses.
Business Continuity Planning: Life insurance can ensure that if something happens to a business owner, like their passing away, the business can keep running smoothly. It provides money to cover expenses and debts so the business can continue operating.
Funding Buy-Sell Agreements: When business partners have an agreement that says what happens if one of them dies, life insurance can provide the money needed to buy out the deceased partner’s share of the business. This ensures that the business can carry on without financial strain.
Estate Tax Planning: Life insurance can be used to help pay for taxes that may be owed when someone passes away and leaves behind a business or other assets. It ensures that the business doesn’t have to be sold off to cover these taxes, preserving it for the next generation.
Corporate Tax Planning Services: Life insurance can offer tax benefits for businesses. Money invested in certain types of life insurance policies can grow without being taxed, and the benefits paid out to beneficiaries are often tax-free. Corporate tax planning services help businesses take full advantage of these benefits.
Attracting and Retaining Talent: Offering life insurance as part of employee benefits can make a business more attractive to employees. It shows that the company cares about their well-being and wants to help protect their families financially. This can help the business attract and keep talented employees.
Life Insurance in Individual Planning
Individuals use life insurance to protect their families, prepare for retirement, and leave a meaningful legacy. Here’s how it helps individuals.
Financial Protection: Life insurance provides financial security for loved ones by covering living expenses and debts in the event of the policyholder’s death.
Income Replacement: Life insurance replaces lost income for primary breadwinners, ensuring that their family’s standard of living is maintained.
Legacy Planning: Life insurance allows individuals to leave behind a meaningful legacy for their beneficiaries, whether it’s providing an inheritance or supporting charitable causes.
Supplemental Retirement Income: Certain life insurance policies offer cash value accumulation, providing additional income during retirement to enhance financial security.
Health Benefits: Some policies offer benefits for terminal illnesses, providing financial support for medical expenses and treatments during challenging times.
Estate Planning: Life insurance helps cover estate taxes and other expenses, ensuring a smooth transfer of wealth to beneficiaries and preserving assets for future generations.
Tax Efficiency: Life insurance offers tax benefits, with the death benefit generally being income tax-free for beneficiaries, providing tax-efficient wealth transfer.
Conclusion
Life insurance planning is essential, but it can be complex. Knowing what you need can give you and your family comfort. Whether you’re just starting to look into life insurance or thinking about changing your current plan, it’s smart to stay updated and ask for advice.
Remember, a staggering 30% of Americans realize the importance of life insurance but haven’t yet taken action. Don’t be part of that statistic; explore your options today for a secure tomorrow with us.
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Nowadays, the proliferation of fake videos on stock market operations is increasing and getting viral. In the wake of this, the NSE and the National Stock Exchange have issued certain guidelines on these, reported Livemint.
NSE has extended a stern caution to those investors who make fake videos purportedly recommending stocks by showcasing Shri Ashishkumar Chauhan.
Notably, Shri Ashishkumar Chauhan is the Managing Director and Chief Executive Officer of NSE. NSE said, “NSE in a few investment and advisory audio and video clips falsely created using technology.
The National Stock Exchange (@NSEIndia) cautioned investors on #fake audio and #videos of their MD- CEO @ashishchauhan recommending stocks — which are circulating on social media.
Such videos seem to have been created using sophisticated technologies to imitate the voice and facial expressions of Shri Ashishkumar Chauhan, MD & CEO of NSE.”
As per TimesNow, the national stock exchange has also requested investors to verify information, exercise vigilance and only trust what appears on official NSE channels.
Information can also be verified from www.nseindia.com, the official website. Other official social media handles include, “Twitter: @NSEIndia, Facebook: @NSE India, Instagram: @nseindia, LinkedIn: @NSE India, and YouTube: NSE India.”
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Ashishkumar Chauhan, the MD and CEO wrote on X, “Caution – clarification on fake audio/ videos of NSE MD and CEO recommending specific stocks – circulating on social media for last few days.”
This statement is the follow-up of the surfacing of the manipulated video and audio clips regarding stock recommendations.
These fake videos make use of advanced and sophisticated technology which mimic the MD’s voice and facial expressions. Thus, this creates an alarming and misleading situation for unsuspecting investors.
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NSE Employees Cannot Recommend Stocks
Thus, investors are advised not to fall for such fraudulent content and take investment decisions. NSE also clarified that its employees are “not authorized” to recommend or endorse any specific stocks.
NSE has also asked online platforms to take back potential deceptive videos. Meanwhile, the public and investors are requested to verify the authenticity of information and exercise caution before taking any wrong step which may cause financial loss and personal harm.
