Category Archives: Finance

What is a personal loan?


Today, an increasing number of people are applying for Personal Loans to meet their larger expenses. One of the reasons for the significant rise in the growing popularity of Personal Loan is that being an unsecured loan, it does not require any collateral and the processing time is quick. You can easily avail of a Personal Loan from any bank or a non-banking financial company of your choice. With the advent of the online services offered by financial institutions, you can get the money within 48 hours.

What is a Personal Loan?

A personal loan is an unsecured credit provided by financial institutions based on criteria like employment history, repayment capacity, income level, profession, and credit history. A personal loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs. It is good at personal loan in chinatown.

What are the benefits of availing of a Personal Loan?

  • Unlike other types of loans like Home Loan or Gold Loan, where you must provide several documents, Personal Loans require minimum documents and the approval process is quick.
  • With various financial institutions offering Personal Loan online services, the loan amount is disbursed within a few hours provided the lender is convinced of your repayment capacity.
  • Another significant feature of a Personal Loan is that the lenders offer you the flexibility to choose your loan tenure. Usually, Personal Loan tenure ranges from one to five years. So, you can select the loan term based on your repayment capacity. You should opt for a shorter loan so that you can save on the interest payment and repay the amount faster.

What is the maximum amount that you can borrow?

The maximum amount that you can avail of depends on your income level, your profession, and the lender’s assessment of your loan application. Generally, the lenders sanction the loan based on their calculation, so that the EMI is not more than 40% – 50% of your monthly income. Also, the lenders consider if you have any dues while calculating the loan amount.

If you are a business owner or self-employed, the lender will determine the loan amount based on the profits earned and recorded in the profit and loss statement. If you are a salaried professional, the lender will determine the amount based on your salary and other liabilities.


Now that you know about Personal Loans, you can compare the loan offers from different lenders apply for a Personal Loan online, and get the amount you need to meet your expenses.

Genuine Earnings

What is ‘Genuine Earnings’

Genuine income describes the income of a private or group after considering the results of inflation on purchasing power. For instance, if you get a 2% raise over the previous year and inflation for the year is 1%, then your genuine income just increases by 1%. Alternatively, if you receive a 2% raise in salary and inflation is at 3%, then your genuine income diminishes by 1%.

BREAKING DOWN ‘Genuine Earnings’

Likewise called genuine wages, genuine income describes the quantity of products and services you can purchase today compared to the rate of the same items and services you could have purchased in another time duration. For instance, if it costs you $2,000 more to purchase the very same quantity of goods and services (such as food, gas, lease and utilities) this year compared to in 2015, and your annual earnings is the exact same, then your real income has in fact decreased by $2,000.

How Genuine Income Connects To the Consumer Cost Index

As real earnings determines the acquiring power of an individual’s earnings, analysts frequently compare it to the Customer Cost Index (CPI). The CPI measures the average cost of a basket of products including food and beverages, education, entertainment, clothing, transportation, and medical care. In the United States, the Bureau of Labor Statics releases CPI numbers month-to-month and yearly.

How to Calculate Genuine Earnings and Buying Power

Genuine income typically compares the buying power of income from one year to the expense of products in another year, and genuine earnings can likewise help you compare wages from 2 various years, taking inflation or modifications to the CPI into account. To compare incomes from two various time durations, take the wage from one period and multiply it by the CPI of the other period. Then, divide the product by the CPI from the original time duration.

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