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What is an RD Calculator and How to Use It?

Deciding whether to invest in recurring deposits (RD) or not? Afraid of the potential risks of a market crash? Want to invest but lack the correct knowledge about investments? Want to know how to calculate your interest using an RD calculator? Well, to get all these answers regarding RD calculators and investments, stick with this article. This article will discuss RD, its features and benefits. RD interest calculator, how to use it, why to use it, and how it works. [B-01] What does RD mean? Well, RD is an investment option where you deposit money regularly at a given interest rate for a set period of time in return for interest. It is a very popular scheme often opted for by investors, senior citizens, and even teenagers. A recurrent deposit is very similar to a fixed deposit, but the only significant difference is the investment frequency. In an FD, you invest only once for a fixed period of time, and you get your return at the end of your maturity. In a recurrent deposit, on the other hand, you invest on a monthly basis until the end of your investment period and get a return. Sometimes, there is a problematic factor associated with recurring deposits. RDs are subject to a TDS of 10% (tax deducted at source), which means 10% of your earned interest will be deducted as a form of tax. What are the benefits of investing in RD? Investing in RD could be a very profitable option, as it gives you high-interest returns. Here are some of the benefits: High rate of interest Unlike a fixed deposit or a public provident fund, the rate of interest on a recurrent deposit is quite high. You can use an RD interest calculator to estimate the interest you get from your investment. Minimal lock-in period RD comes with a very short lock-in period, which is about a month to 3 months. That means just after this period, you can withdraw money whenever you want without affecting the interest. However, if you choose to withdraw money within the lock-in period, then you will not get any interest. Multiple accounts There is no restriction on how many RD accounts one person can open. You can open multiple RD accounts to meet your financial goals, which is a huge advantage. Helps you in saving It makes you more conscious regarding financial aspects as you start saving more often to invest in an RD account rather than wasting that money. Flexible investment You do not have to invest a huge amount of money every month; rather, you can invest as little as Rs 100 every month. Hassle-free You don’t need to worry much while opening your RD account because there isn’t much to be processed. Especially if you have a savings account, opening an RD account will be a walk in the park. To manage all these investment updates, you need to use an RD calculator to find your interest rates. What is an RD calculator? It is a tool to calculate the interest amount on the money that you invest in your RD account periodically. It is an AI-powered model that is programmed for such calculations. A recurring deposit, as the name suggests, is repeating in nature, which means you have to invest a certain amount continuously. To keep track of all these updates, you need an RD interest calculator to help you out with your estimates. How to use an RD calculator? An RD calculator is based on a simple formula, F = P*(1+R/N)^Nt Where F is your future interest amount, P is your principal amount, which you keep investing every month, R is your interest rate, and n is the compounding frequency, which is usually 4 because compounding frequency is calculated quarterly. Let us take an example to understand the RD formula better. Suppose, you invest Rs 2,500 every month at an interest rate of 6.5 percent for 5 years. Using the above formula, your interest amount will be equal to Rs 1,77,481. Now, the formula might seem a bit difficult, which is why you should use a ready-made RD interest calculator to find your future interest. Here are the steps to using an RD interest calculator: Enter the principal amount in the bar, which you invest on a monthly basis. Enter the rate of interest in the required bar of the RD interest calculator. Enter the time period up to which you will be investing your money. Click on the ‘Calculate’ option with the numbers that are already submitted, and you will have your results in front of you. Why should you use an RD interest calculator? Frankly, the reasons to use an RD calculator are many: It helps you plan your investment future and make it better over time. It gives you clarity on what to expect from the amount of money that you regularly invest. An RD investment calculator is a very convenient tool and is user-friendly as well. It saves you a lot of time, which you can now use to make informed decisions regarding your future investment. It gives you error-free and accurate results as it is generated by AI software. [B-02] Conclusion To invest and grow in a competitive financial world is no easy task, and to track the progress of your RD account, you have to use an RD interest calculator. This will keep you updated about market dynamics and the nature of returns. If you are interested in reading more articles like these, you should check out Piramal Finance. They have many informative articles regarding finance, personal loans, SIPs, mutual funds, fixed deposits, RDs, and many more.

08-11-2023

How To Calculate FD Interest Rate In A Few Easy Steps

Made a fixed deposit (FD) but don’t know how to find the interest rate? Want to find the yearly, quarterly, or monthly interest using an FD interest rates calculator? Well, this is the right place for you to get all your doubts cleared regarding FDs and how to calculate their interest rates. In this article, we will shed light on an FD calculator, how to use a fixed deposit interest calculator, and the FD formula to calculate the interest rate. [B-01] What is a fixed deposit and what are its different types? A fixed deposit or FD, is a scheme provided by banks where you put money to get a reasonable rate of interest. Your money grows over time at a given interest rate. You get the total amount at the end of your maturity period. It is a very safe option where interest rates are good with no market-related risks. The interest rate does not change by any clashes in the market, and you get your guaranteed returns at maturity. There are four broad kinds of fixed deposits: Cumulative fixed deposit: In this type of fixed deposit, when you invest your money, your interest gets compounded. You can use an FD interest rates calculator to calculate and analyse your maturity amount. Non-cumulative fixed deposit: In this type of fixed deposit, when you invest your money, you get a fixed interest rate, and you can also withdraw that money on a monthly, quarterly, half-yearly or yearly basis. This can be called your monthly interest, quarterly interest, half-yearly interest, or yearly interest. Standard fixed deposit: This is the basic form of FD, where you invest money for a period of 7 to 10 years at a fixed interest rate. Corporate fixed deposit: The money you deposit in non-banking financial companies or NBFCs is called a corporate FD. You should check the company’s credit rating and seek expert advice to make sure your deposits are secure. What are the benefits of investing your money in fixed deposits? You get assured returns even if there are market fluctuations or any crisis. You get reasonable interest rates, which is a significant advantage. You get additional tax benefits by investing in a fixed deposit. In terms of safety and security, you will be assured that your money is in a safe place. It acts as a security fund in most cases and is also useful if you ever want to go in for a loan. What is an FD interest rates calculator? An FD interest rates calculator is a handy, easy-to-use online tool that helps you calculate the maturity amount that you are going to receive if you invest your money at a given interest rate for a set period of time. It also helps you in deciding which bank you should go in for, according to different interest rates, how much money you should invest in and the tenure. What are the advantages of using an FD interest rates calculator? Some of the exclusive advantages of using an FD interest calculator are: Accurate results: An FD interest rates calculator is an AI-generated software, so the results it provides are accurate and specific. Error-free outcomes: FD calculators, unlike manual calculations, have no chance of making any kind of mistake while calculating your figures. Saves a lot of time: Since it is software, it does the calculations in less than a second, which saves a lot of your valuable time. How to use an FD interest rates calculator? Here is a step-by-step guide to let you know the correct way to use FD calculators. To calculate yearly, half-yearly, quarterly, or monthly interest rates, you have to: Select the amount you want to invest in the FD scheme. Select the tenure (monthly, quarterly, half-yearly, or yearly) according to your preference. Select the interest rate that you have decided on for your fixed deposit. Click on the ‘Calculate’ option and you will have your results in a second! You can recalculate to make sure that everything is correct and that you haven’t mistakenly put incorrect values. How is fixed deposit interest calculated? To calculate fixed deposit interest, there are two methods that are widely used: Simple interest This is an easy method to find your interest rate. The interest rate is always pre-fixed over a defined period of time. The formula for simple Interest, SI, is: SI = P×R×T/100 Where P is your principal amount, R is your rate of interest, and T is your time period. For example, if you invest Rs 5000 rupees at an interest rate of 10 percent for a period of 5 years, then your interest is equal to Rs 2500 and the total amount is 7500 rupees. This method is mostly not preferable as it does not give you any handsome returns. Compound interest This is the most widely used method and, in fact, the formula used here is also considered the universal FD formula. A = P (1+r/n) ^ (n * t) Where A is the maturity amount, P is the principal amount, R is the rate of interest, n is the number of compounding frequencies, and t is the time period. For example, if you invest Rs 5,000 at an interest rate of 10 percent for a period of 10 years, then your total interest would be Rs 7968.71 and your maturity amount would be Rs 12,968.71. [B-02] Conclusion An FD interest rates calculator is a very useful tool to help you find the right amount of money to invest. Different banks and NBFCs provide variable interest rates. Make sure you talk to the bank officials, your advisors, and the people who have been investing in FD and then make an informed decision. Piramal Finance has some highly engaging blogs and articles regarding fixed deposits. Make sure you visit their website to get some valuable content.

08-11-2023

Mutual Funds

SIP Calculator: A Complete Guide for Beginners in 2022

Investment has been the buzzword of recent times and everyone is into investing now. Among various investment offers, mutual funds have stood out to be a good option for many people. But, investing in mutual funds is no easy game. Don’t worry even if you are a beginner because every expert was once a beginner. In this article, we will throw some light on what is an SIP and an SIP calculator, how they work and how to use them to reap the benefits. [B-01] What is SIP? A systematic investment plan or SIP is a disciplined way to choose wise investment options and increase your interest amount. Using SIP, you can invest in mutual funds more effectively and you can build good wealth for the future. It is a solid approach to managing your funds by regularly investing them while avoiding the risks. It works on two principles: Rupee cost averagingThis means you keep investing a specific amount of money for a set period at regular intervals without being affected by the market. This is an interesting approach where you get low units when the market rises and you get high units when the market falls. The main advantage of rupee cost averaging is that you are out of risk and you acquire the investment at a low average cost. CompoundingThis means if you keep putting money at intervals for a fixed period, you will receive exponential output as your return. To understand this better let us take an interesting example:Suppose a 20-year-old boy starts putting in 500 rupees every month for 30-odd years. Let us calculate this by using a SIP investment calculator. So, because of the compounding effect, he will accumulate 4.17 lakh rupees as his total interest amount. What are the benefits of SIP? There are many benefits of SIP: Risk-free investment:With a systematic investment plan, you can avoid potential risks while investing in mutual funds. Financial discipline:You start making better financial decisions after using SIP. You avoid unnecessary expenses and save that money for the future. High flexibility:SIPs are highly flexible which means you can invest according to your wish and not according to pre-fixed rules. High returns:In comparison to any other investment options, this one gives you more benefits and rapidly increases your wealth over time. Emergency provision:In case you urgently need money, you can withdraw some money without any loss. What is a SIP calculator? A SIP calculator is a simple online tool that helps you calculate the total amount of money you receive at the end of your investment period. It gives you an estimate of your mutual fund investment by using your interest rate, the months of investment and your principal amount. It is a very useful instrument to help you out with multiple calculations and fast results. You can use a SIP investment calculator more frequently to know the market updates. Why should you use a SIP calculator? Here are the reasons why you should use a SIP calculator: It gives you the correct value of the estimates you have made over some time. It helps you plan your future investments and this ensures that you make an informed decision. You can find the best investment options that suit you by using a SIP investment calculator. So, it will help you not only with the calculation but also help you to choose the best for yourself. It saves a lot of your valuable time by calculating your return amount in no time and is user-friendly as well. It gives you precise results, which is why you should start using a SIP calculator before you invest your money in mutual funds. How does the SIP calculator work? It simply works on a mathematical formula, F=P x {[(1 + r)n – 1] ÷ r} x (1 + r) where “F” stands for the future value of the investment. “P” is the principal amount that you invest monthly throughout the investment period. “r” is your expected rate of return every month and “n” is the number of contributions you make throughout. To understand the working of a SIP investment calculator more clearly, you have to get it through an example which goes like this: If a man spends 7,000 rupees every month at an interest rate of 12% for 10 years, then he will accumulate 16,26,374 rupees at the end of his investment period. A SIP calculator is already programmed using the above-mentioned formula so that you don’t have to worry about putting the formula in every time. You just have to fill out the numbers and the results are in front of you in less than a second. Here are the steps to know how to use a SIP investment calculator: Open the application or visit the website of your choice which has the best SIP calculator. First, enter your principal amount which you are investing every month. Second, add the rate of interest in the requisite bar of the SIP calculator. Third, now select the period, which is the number of years for which you would be investing. Select the type of SIP investment you would like to go through. Now finally, click on the “calculate” option of the SIP investment calculator and you have your result right in front of you. Now keep trying different values to get a clear picture of how much you should be investing, at what interest rate and for how long. [B-02] Summing-up: SIP calculators are programmed by artificial intelligence so they are quite dependable. You should spin them quite often, especially if you are a regular investor. For beginners, a SIP investment calculator can provide details about the market dynamics and help them decide on their investment journey. To know more about SIP and learn about personal finance, visit the page of Piramal Finance. They have much more exciting content on SIP, mutual funds, personal loans and other investment options.

08-11-2023

Personal Loan

Get The Detailed Information About Current Personal Loan Interest Rates

Personal loans can be used to cover a range of costs, including home improvements, child care, emergency medical care, a family wedding, and travel. Personal loans don’t require collateral and have easy repayment terms. However, each bank has its requirements that must be met to be eligible for a personal loan. Repayment capability and CIBIL score are the two key factors that determine eligibility for personal loans. Personal loans have some of the highest interest rates. Therefore, it would be wise to borrow from a lender with relatively lower rates and shorter terms (The higher the tenure, the higher the interest outgo). Banks also give customers with outstanding credit scores the lowest interest rates. For instance, the interest on personal loans from IDBI Bank range from 8.15% to 14%; they have a term of 12–60 months and are available for amounts between Rs 25,000 and Rs 5 lakh. Rates for personal loans from the State Bank of India (SBI) range from 9.6% to 15.65%; terms range from 6 to 72 months, and loan amounts range from Rs 25,000 to Rs 20 lakh. [B-01] Personal Loan: Unsecured Loan A personal loan, in some cases, is also taken as an unsecured loan because no collateral is required. Because there are no restrictions on how personal loans can be used, they are very common. Because a personal loan offers an advance without security, a personal loan application often involves checking the borrower’s need for money, their eligibility for the loan, and their capacity to pay the loan back on time. As a result, to be considered for a personal loan, applicants must normally be employed individuals who can produce proof of their identity and work. Personal loan processing fees Based on the loan amount, a processing fee for personal loans is determined. If they apply for a loan for INR 1 lakh, for example, and the processing cost is 2.5%, the processing fee will be INR 2500 + GST. The rate of interest on a personal loan, processing fees, and pre-closure costs are calculated When one applies for personal loans, one will need to pay a processing charge. Other fees would be determined by the service requests they make regarding the loan. The pre-closure fee is assessed on the loan balance that is still owing as of the foreclosure date. On the other side, the processing charge is based on the loan amount they are approved for. Banks Provide Interest Rates and Lending Amounts for Personal Loans The Economic Times Intelligence Group (ETIG) is the source of all the information provided below as of May 19, 2022. AU Small Finance Bank offers personal loans in the amount of up to 7.5 lakhs with a tenure of up to 60 months. The rate of interest ranging is from 12%-22%. Axis Bank offers personal loans of up to 15 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12%-21%. Bank Of India offers personal loans of up to 10 lakhs with a tenure of up to 36 – 60 months. The rate of interest is ranging from 10.75%- 12.75%. Canara Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12.40% – 13.90%. Central Bank Of India offers personal loans up to 10 lakhs with a tenure of up to 48 Months. The rate of interest is ranging from 9.85% – 10.05%. HDFC Bank offers personal loans of up to 15 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 10.50% – 21.00%. Indian Overseas Bank offers personal loans of up to 5 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.00% – 11.00%. ICICI Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.25% – 19.00%. Karur Vysya Bank offers personal loans up to 10 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 9.40% – 19.00%. Punjab National Bank offers personal loans of up to 10 lakhs with a tenure of up to 60 months. Credit Card Personal Loan A credit card personal loan is a kind of loan provided against a credit card. It is a speedy and practical way to borrow money, which may be particularly useful in times of financial crisis. Although processing fees and other fees are also applicable, the interest rate on a loan against a credit card is typically higher than that on a personal loan. One type of loan offered on the basis of their credit card is a personal loan. It is a quick and efficient method of borrowing money, which could be especially helpful during economic downturns. The interest rate on a credit card personal loan is often higher than the interest rate on personal loans, even though processing fees and other expenses may also be relevant. [B-02] Conclusion Thus, when one tries to avail of a credit card personal loan or a simple personal loan, one must ensure that they have maintained a good CIBIL score and be aware of the processing fees, pre-closure costs etc. so that they can make an informed decision. Lastly, to figure out which bank’s personal loan interest rate is best suited to their needs, they can consult Piramal Finance, where their experts will guide them throughout their journey of availing of a personal loan.

08-11-2023

Personal Loan

Travel Loan: Holiday Loans, Apply Personal Loan for Travel

When you travel, it not only relaxes your body but also your mind. It does not matter if you are tired of your busy work routine or want to spend time with loved ones; going on a trip is always a great feeling. But there might be a shortage of funds when you plan to travel. So, what can you do in such a situation? Using your savings may not be the best option, but it is suggested that you take out a travel loan. Many banks and NBFCs offer holiday loans, also known as personal loan for travel. A travel loan enables you to go on a trip as and when you want. There is no need to give security for this loan, and you may use the money as you like. As you need to pay the EMIs to repay a travel loan, there is no stress on your finances. Also, you can get the loan amount in your bank within a few hours; you can easily plan a last-minute trip. Read on to learn how to apply for a personal loan for travel and what benefits you can get from it. [B-01] Features of a Travel Loan A holiday loan, famous as a personal loan for travel, is a popular loan in modern times. People of all ages opt for this loan when they are short on funds but have to go on a trip. It can be a honeymoon, a family trip, or a leisure holiday; this travel loan can be used for all your travel needs. Here are some of the key features of a travel loan: Loan Amount: You can apply for a personal loan for travel for amounts starting from Rs. 1 lakh and going up to Rs. 10 lakhs. Such high-value loans can easily pay for an overseas holiday as well. You can choose any amount in this range based on your eligibility. Loan Tenure: Like every other personal loan, a loan for travel can be repaid in EMIs over a period of time. Loan tenure for holiday loans can be between 12 and 60 months. You can select any loan term based on the EMI amount you can afford. Interest Rate: There is no need to offer a security for this loan, and the interest rates start as low as 12.99%. With such great perks, opting for a travel loan can be a good choice if you are short on funds or want more flexibility in terms of money when you travel. Online Process: Most banks and NBFCs offer an online interface to apply for a personal loan for travel. You need to visit the website or download the mobile app of the lender to complete the process, which will take only a few minutes. Quick Approval: Holiday loans come with a quick approval process where the lenders can process the application in a few hours. The money is sent to your bank quickly, making this loan a good choice in urgent situations. Paper Work: You need not submit too many papers to qualify for this loan. Only some basic papers are needed to complete the process. If you apply online, you can upload scanned copies of the papers. Eligibility for a Personal Loan for Travel To be eligible for a travel loan, you need to meet all the rules given by the bank or NBFC. Some of the key aspects that you must fulfill are: Age: You must be older than 21 but younger than 60 to apply for holiday loans. Income: You must get a salary of at least Rs. 25,000 every month in your bank. Work Type: You must work as a private or public company employee. Work-Ex: You must have a work-ex of at least one year. Out of this last six months must be with the present employer. Paperwork: You need to provide documents like an Aadhar card, a PAN card, a voter ID, a bank statement, etc. to the lender. Credit Score: You must have a CIBIL score of 750 or more to be eligible for a personal loan for travel. Apply Personal Loan for Travel You must apply for a travel loan online, as this method is very quick and easy to complete. Before you start, scan the documents and save them on the system. Offline methods are very slow and not efficient. Here are the steps you must follow to apply for a personal loan for travel online: Visit the official site of the bank or NBFC. You may also get the mobile app and install it to apply for a travel loan. On the home page, look for the link for ‘Personal Loans’ and click on it. Here, you can select the option for a travel loan or a personal loan for travel. After you click on it, a new screen will open on your device. Here you must enter every detail that the lender needs. This can include your name, age, date of birth, PAN number, income, loan amount, loan tenure, etc. You may also need to upload scanned copies of some papers. Verify the details again, and then click on the submit button. You will receive a reference number via email or phone. You can use it to track the loan status. If your profile meets the travel loan eligibility, then the lender’s representative will contact you. You might need to provide some more papers to process the loan. Once complete, you will need to sign a loan agreement. Then the money will reach your bank in a few hours. [B-02] Conclusion Holiday loans offer great benefits when you wish to travel but are short on funds. You need to opt for the best lender to make the most of this loan. Select the travel loan wisely and keep your budget in mind, to avoid any issues in the future. Piramal Finance will help you decide on the best loan for travel. Visit their website to read informative blogs and explore their products and services.

08-11-2023

Personal Loan

Are You Eligible To Apply For Personal Loan For Travel Or Not?

A personal loan is an unsecured loan that helps people take care of significant purchases and expenses. It is an instalment credit — the borrower receives the requested amount in lumpsum in their bank account and pays it back through monthly instalments. A personal loan can be taken for various purposes, including buying a new vehicle or an appliance, renovating a home, managing wedding expenses, funding higher education costs, or planning a vacation. Often, people also take personal medical loans to take care of the urgent medical needs of their families. As most countries are now open to foreign tourists after the COVID-19-related restrictions, many Indians are planning their dream-destination vacations more often. A personal loan for travel helps people fund their travel plans. Interestingly, in the recent past, many young people have opted for personal loans for travel. This indicates that there is a massive demand for personal loans for travel. [B-01] Why Take A Personal Loan For Travel? Going on a holiday can be expensive, even if it is a domestic vacation. Many young adults choose personal loans for travel instead of exhausting their savings on vacations or postponing travel plans due to a lack of funds. Any individual who is eligible for a personal loan can get their loan for travel approved in minutes. Let’s look at the eligibility criteria for a personal travel loan. Eligibility For Personal Loan For Travel The eligibility criteria for a loan for travel is similar to the one for a personal loan. Any working professional can apply for such a loan. The lending criteria may differ from lender to lender. Let us check the applicable eligibility criteria for travel loans. You should be at least 21 years old. You should have completed at least six months at your current job. Your credit score must be satisfactory. Usually, a credit score of 700 and above is favoured by lenders. The lender might impose a minimum earning criteria. Generally, applicants should have a minimum monthly income of Rs 20,000 to qualify for a personal travel loan. For some applicants with an impressive credit history, lending institutions may offer a pre-approved personal loan. Now that the eligibility criteria are clear let’s see which documents need to be submitted for a personal loan for travel. Documents Needed To Obtain A Loan For Travel A travel loan can be quickly approved without much documentation. You can contact your lender to confirm which documents will be required. Generally, you may need a hard and a soft copy of the documents. Some of these documents are as follows. Proof of identity Proof of address Income Proof Latest photographs To get a complete list of the required documents, you must check the lending institution’s official website or contact the customer care department. Things To Consider Before Applying For a Personal Loan For Travel Here are a few things you must remember before taking a personal loan for travel. Always estimate a correct budget before taking the loan. Check and include accommodation, food, ticket, and emergency expenses. Aim for a loan 20% more than the budgeted costs to be on the safe side. Do some research on the best lender in the market. Typically, personal loans carry a higher rate of interest than other loans. So, one should find a lender that offers the best deal. Ensure the EMI adjusts to the monthly budget since this will enable easy loan repayments. Is It Easy To Apply For A Personal Loan For Travel? It is very easy to apply for a loan for travel. Many people apply for personal loans online, and the procedure is fast and facilitates quick disbursal ins some cases. When applying for a loan for travel online or offline, ensure that the required documents are accessible and verified. It will make the application process smoother. You should not hesitate to contact your lender in case of any doubts or apprehensions. [B-02] Conclusion Young adults are no longer waiting for savings to accumulate so that they can go on vacation. A loan for travel is a convenient way to meet the travel expenses for domestic and international holidays. The availability of a personal loan for travel ensures that people leave their savings and investments undisturbed. If you are an applicant with a good record, your personal loan approval is just a few steps away. Moreover, you can easily plan your repayment through post-dated cheques, online transfers or standing instructions to the lending institution. For more information on personal loans, visit Piramal Finance and explore their products and services.

08-11-2023

Other

Everything You Need To Know About Recurring Deposit

Despite being around for a while, recurring deposit (RD) accounts have still managed to remain popular. People of all ages are willing to place their trust in an RD account. Why are recurring deposit accounts so popular? Let’s look into it. [B-01] What is an RD account? A regular deposit is known as a recurring deposit. This service, which is provided by many banks, enables clients to deposit funds regularly and earn decent returns. A depositor deposits a particular amount each month for a specified amount of time (typically ranging from 1 year to 5 years) into an RD account, which is defined as “a banking or postal service account”. This arrangement is for people who want to set aside a certain amount each month with the hope of earning a return in a few years. The procedure of generating tiny monthly deposits under the recurring deposit plan enables the consumer to accumulate an alluring amount at maturity, which can be determined using an RD calculator. The interest rates for recurring deposits are computed on a quarterly compounded basis. Features of an RD account A recurring deposit account has the following essential characteristics: Fixed-income securities A fixed-income investment has recurring payments. When it matures, it provides a definite return. The interest rate is known before the money is invested. Furthermore, the interest rates remain the same for the term of the deposit. Minimum investment Opening an RD account just requires a monthly investment of Rs. 100. Recurring deposits are perfect for you if you have a sizeable amount of extra money, like Rs 1,000 per month, that you can invest. High-interest rate The interest rates offered for recurrent contributions are higher than those offered by a traditional savings account. Banks normally compound interest once every 3 months. Early withdrawal Customers are allowed to withdraw money prematurely under a recurring deposit; however, there will be a cost incurred. Recurring Deposit: Eligibility Criteria The eligibility criteria for recurring deposits are as follows: Any individual. Any minor who is older than 10 years old and can prove their identity is entitled to open the account. Any minor under the care of a natural or legal guardian who is younger than or equivalent to 10 years old. Any corporation, business, sole proprietorship, or commercial entity. Any agency of the government. Recurring Deposit: Documents Required The documents required to open a recurring deposit are as follows: Form that must be completed and sent to the bank you choose to start your recurring deposit account with. Passport-size photos of the applicant. Proof of the applicant’s identity and proof of residence are required in order to start a recurring deposit account. If the bank asks for them, KYC documentation. Procedure to open an RD account By filling out the form at any bank or post office, you can open an RD account. The first month’s payment must then be made to the bank or post office along with extra formal documentation, such as a PAN card and proof of address. The shortest term for a recurring deposit account is 6 months and the longest term is 10 years. Multiples of 3 months can also be opened. Recurring deposit interest rates are comparable to fixed deposit interest rates. Similar to India Post, you will receive a senior citizen discount of 0.5 per cent on your interest rate, and certain banks will also grant you a 5-day buffer time. You can open an RD account online with some institutions. You can use mobile banking to quickly and easily open an RD account. To open your recurring deposit account online, enter the bare minimum of information, including your name, email address, and mobile number. Benefits of investing in a recurring deposit Money put into a recurring deposit account is a wise investment because the principal is practically certain to yield a return. It also offers an appealing rate of return. The recurring deposit is, therefore, a wise investment choice. Other advantages of putting money in a recurring deposit account include the following: A straightforward financial asset to invest in One of the easiest financial instruments to invest in is a recurring deposit. The idea of investing money in it is rather straightforward. Experts always recommend that anyone who is new to the world of financial investments invest their money in a recurring deposit account. Guaranteed returns Recurring deposits, as opposed to equity and mutual funds, guarantee returns on the principal amount deposited in the short term, which can be determined with the help of an RD calculator. Anytime withdrawal Additionally, recurring deposit accounts allow for account withdrawals at any time. Even though the bank may charge a nominal fee for it, it is still a beneficial option for the depositor to have in the event that they urgently require both the deposited funds and their return. Loan against deposit Additionally, banks offer the option of loans secured by recurrent deposits. Depending on the bank, a depositor may be eligible for a loan equal to 90–95% of the entire amount deposited in the recurring deposit account. RD Calculator Before determining the maturity amount that will be recovered by the depositor at the conclusion of the term period, an RD calculator takes the following factors into consideration. Principal amount deposited when the recurring deposit account was opened. Date that the account for recurring deposits was first opened. Interest rate in effect for the user-selected term length. Whether the user is a senior, because most banks offer senior people a higher rate of return for recurring deposit accounts. [B-02] Wrapping up Recurring deposits are a great way to establish a dependable saving and investment habit. Numerous advantages come with recurring deposits. You can invest on a regular basis in little sums. Compared to savings accounts, the rate of return will be higher. Recurring deposits enable you to effortlessly achieve your short-term objectives. Learn more about deposit interest rates and open a recurring deposit account to take control of your investing habits. At Piramal Finance, you will also come across more information on recurring deposit calculators, also known as RD calculators.

08-11-2023

Personal Loan

Home Renovation Loan: Apply for Personal Loan For Home Improvement Online

One must be familiar with the saying- “Change is the only constant in life.” And to be honest, who doesn’t want a change for the better? Most of us have dreamt of living in a lavish and beautiful home at some point in our lives. A beautifully curated home gives a vibe of positivity for sure. Needless to say, it packs in a great deal of joy and prosperity. But what comes between us and our dreams is money. Harsh truth! Let’s face it, arranging funds for renovating a home is not a piece of cake. Moreover, home renovation is pretty expensive nowadays. It can easily drain our entire life savings. This is where a home renovation loan comes into play. So, the desire to live in your dream home can now be fulfilled without busting the bank. Yes, you read that right. Keep scrolling to know more… [B-01] What is a Home Renovation Loan? It is made available if anyone wants to renovate or improve their home. A renovation loan helps with new flooring, painting, tiling, modernising, renovating, fixing problems, and even expanding the property. They are a popular type of personal loan. It can be offered by banks, NBFCs, and HFCs. Moreover, a home renovation loan has no end-use restrictions. One may either choose to renovate, improve, or extend house as per their requirements. Personal Loan for Home Improvement As we already know, this aids in financing costs related to home renovation. The interest rate of a personal loan for home renovation generally starts at 10.49% annually. However, few PSU banks can provide with loans with even less interest rates. One can also find lenders offering longer terms than 5 years. The key benefit of personal loans for a home renovation is quick approval and easy disbursal. These are typically processed and disbursed within 2 to 7 business days. A personal loan’s greatest benefit is its flexibility. One can literally use it to do anything to their home. One can even opt for applying for a personal loan before you begin renovating the house. On the other hand, applying for a renovation loan is also possible once the work has already started. Furthermore, personal loans have competitive interest rates. Numerous lenders also provide pre-approved rapid loans to selected clients depending on their credit histories. Personal loans are pre-approved. So, they can be disbursed shortly after applying for credit. Benefits of Home Improvement Loans Now taking a personal loan for home improvement has a ton of benefits: Flexibility of usage A personal loan is a very flexible option. It has no restrictions, unlike a vehicle or mortgage loan. Also, it can be used for any purpose. A personal loan is a quick option to escape a current financial crisis one is experiencing as a result of the house improvement. Quick Disbursal – Pre-approval is often quick. To receive a personal loan quickly, one must meet the qualifying requirements. A strong credit score is unquestionably advantageous. Disbursal typically takes 24 to 72 hours, depending on the bank or lender, although it might take longer. It is therefore the best option when it comes to a home renovation. If one is already a client of the bank they are applying loan for, immediate online approval is also possible. No Security or Collateral Necessary One can obtain a personal loan without having to put up any security, such as a house or car. Based on creditworthiness, which is determined by factors like credit score, income, payback history, and employer reputation, will determine if the loan is sanctioned. Flexible tenure Personal loans often have flexible terms between 12 to 60 months. Minimum documentation It is possible to apply for a personal loan offline or online with minimum documents. The important documents that are needed include proof of identity, proof of income, and proof of address. Eligibility for Personal Loan for Home Renovation To qualify for a loan, a few requirements are needed to be met. Let’s have a look at the eligibility criteria for obtaining a personal loan for house improvements: One must be at least 21 years of age. Borrower have to be an Indian Resident to apply for a personal loan. He/she should work for an MNC, a private firm, or a publicly traded corporation. Use a personal loan eligibility calculator to determine the loan amount needed to make home improvements. It will display the total amount you are allowed to borrow. This will further aid to apply for the correct amount without having your loan request denied. Home Improvement Loans Interest Rates & Charges One should always consider the interest rates and fees associated with the loan when applying for a home improvement loan. Personal loans often have interest rates between 10% and 15% per year. Processing fees also range between 2 and 3 percent of the loan amount. Loan Amount Loan Amount for larger loans, banks often provide lower interest rates. Salary One’s ability to repay the loan is significantly influenced by the monthly salary. Loans are made available to people with greater salaries at reduced interest rates. Relationship with the Bank A good relationship with the bank can provide attractive interest rates, offers, and fees. Repayment Capacity Lenders evaluate the credit history before approving a loan. They make sure that one can afford to pay it back. [B-02] End Note If anyone wants to renovate their home, getting a personal loan is the best bet. Due to the escalating costs of both labour and the materials needed for remodelling, home improvement is going to be expensive. So, be wise in comparing the best rates to get the best deal! If you are looking for personal loans online for a home renovation feel free to check Piramal Finance for the lowest interest rates and quick approval.

08-11-2023

What Is the Post Office FD Calculator, and How Does It Work?

The Post Office FD Calculator will allow you to estimate the maturity amount for a fixed deposit in the Post Office Bank. By using the Post Office FD Calculator, you can get an estimate of the amount you will receive at maturity. If you wish to calculate the post-FD returns, you will need to enter the amount of the investment, the tenure, and the period of compounding at the Post Office. Fixed Deposits (POFDs) and Post Office Time Deposits (POTDs) are two of the oldest and most popular investment options offered by the Indian Postal Services. India’s government backs them, so they are generally considered safe. Therefore, it has been one of the most popular investment avenues. [B-01] Post Office FD Features and Benefits Requirements and Tenure: Postal fixed deposits last 1–5 years. Post offices offer fixed deposits. Funding can be done with cash or checks. When a check is cashed, the date it was opened is considered. NRIs cannot access Post Office FDs. A parent or legal guardian can create a Post Office FD account in the minor’s name. Ten-year-olds and older are eligible to open and manage the accounts. Minors must convert their accounts after reaching adulthood. Investment Minimum: One deposit per account for Post Office Fixed Deposits. POFDs have a minimum investment of 200 INR and an unlimited maximum investment. An investment must be made in multiples of 200 INR. Any post office allows investors to open multiple accounts. An individual can open a joint account, and a single account can be converted into a joint account. Rate of Interest: The interest rate for a five-year deposit is announced each year before April 1. Typically, it is aligned with G-sec rates of similar maturity with a spread of 0.25 percent. Interest is payable every quarter, but is computed annually. This scheme is offered by the government; therefore, it does not require credit. Post Office FD provides attractive interest rates that are often higher than bank rates. Integration with the post office savings account: The account holder may direct interest earned from the savings account to their post office savings account. The rate of return remains the same. Recurring Deposits with the Post Office: Upon the investor’s request, the earned interest is redirected to a %-yearr post office recurring deposit. It is also necessary for both accounts to be located at the same post office. Only the Head of Departmental Sub-offices has permission to view information. Regarding taxation: It is impossible to deduct interest on fixed deposits that have a tenure of fewer than five years. In contrast to this, a 5-year Post Office Fixed Deposit is eligible for tax exemption under Section 80C. The interest that is earned is included in the taxable income of the investor and is taxed at the applicable rate. TDS is a tax that is applied to interest that is paid by the post office. Unless TDS is deducted from your income, you are required to file a return of income. The maturity period: You may extend your investments at maturity. A form can be filled out, or, if the post office is equipped with a CBS system, automatic renewal can be arranged. Withdrawal Prematurely: You are not permitted to withdraw before six months. You are only entitled to earn interest on withdrawals between six months and one year, just as if you were withdrawing funds from a savings account. There is a penalty of 1% for all withdrawals made after one year. Post Office FD Scheme Tax The savings on Post Office Fixed Deposits for 5 years may be deducted from your taxable income. The investment in a 5-year Post Office FD is tax deductible up to a limitation of Rs. 1,50,000 under Section 80C. With an average inflation rate of around 4.09%, Post Office FD is an excellent option for saving money on parking. Post offices provide ETE (Exempt-Tax-Exempt) time deposits. Investments and lump-sum payments are tax-free, but taxable interest is earned. For interest earned over 40,000 INR, 10% TDS is deducted (if PAN details are provided, otherwise 20%). INR 50,000 is the maximum tax deduction available to seniors. Those who are entitled to be tax-free should file Form 15G/H. If no TDS is deducted, that amount must be disclosed on the taxpayer’s tax return. Tax benefits are not available for Post Office Fixed Deposits held by children under the age of five. Interest on a Post Office Fixed Deposit is compounded quarterly. Taxes are due on the interest earned. It is taxed at the current rate and added to the investor’s income that is subject to tax. Conclusion It is the same concept as bank deposits in that Post Office FDs are deposited for a certain period at a fixed interest rate that is guaranteed for the duration of the deposit. As a general rule, the longer the term of the investment, the higher the interest rate is likely to be. You can earn a guaranteed return on your investment if you invest the right way. A Post Office FD is available for a period of 1, 2, 3, and 5 years. Interest rates vary from country to country. There is a quarterly calculation, but the payment is due once a year. There is a tax deducted from the interest received from postal services. Post Office FD allows tax benefits under Section 80C of the Income Tax Act. [B-02] Piramal Finance Post Office FD calculator can be accessed to calculate the same. This calculator will be able to save time when used while calculating. The Post Office FD Calculator allows you to enter a value for the FD. A variety of compounding options are offered to the investor, including regular, semi-annual, annual, and annual compounding. The investor may adjust the rate of interest and the duration of the investment by adjusting the sliders for interest rate and tenure, as appropriate. With all of these details entered, the Post Office FD Calculator displays a graphic and numerical representation of the amount invested, wealth gained, and maturity value. By using the Post Office FD Calculator investors can perform calculations in a matter of seconds, allowing them to devote more time to more important activities.

08-11-2023