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How Does the Online Gratuity Calculator Work in India?

Want to know how to make use of a gratuity calculator in India? Curious about how it functions and how to calculate gratuity? Well, then you are in the right place. The gratuity calculator calculates the amount of gratuity you will receive after working for the same company for 5 years and then leaving. Let’s discuss in detail the gratuity, the formula for calculating the gratuity, the gratuity calculator online, and more. [B-01] What is Gratuity? It is a simple cash benefit that you receive from your employer in return for the services you provide to them. You have to work for a company for a minimum of 5 years or more to receive a gratuity fund. This is given as a token of appreciation for your commitment to your profession and your contribution to the job. You can also receive your gratuity fund if you are terminated from your job or if you are retired. A gratuity fund is usually given after retirement, resignation, or termination from a job in India. This keeps piling up in your total funds, which you receive collectively from your employer. The rules and regulations work according to the Gratuity Act of 1972. What is a Gratuity Calculator Online? A gratuity calculator is a device that helps you calculate the gratuity money that you are going to receive after your retirement or resignation. The gratuity calculator online uses a standard gratuity formula to help you estimate your gratuity fund. There are various rules on how to calculate the gratuity fund, and you have to keep certain things in mind beforehand. What is the Formula to Calculate Gratuity? According to the Indian Gratuity Act of 1972, there are two categories for which gratuity calculation is done. Category 1 – Employees who come under the Act. This formula is based on two important points: (a) the number of years of service to the company and (b) the last salary. This is how a gratuity calculator in India calculates the gratuity fund. Gratuity = Last salary drawn × 15/working days ×Number of service years [The standard number of working days for this category is 26 days.] Here, the last salary you drew from your bank account is multiplied by 15 and divided by the number of working days and the number of service years. One doubt you might have about the number 15. This is because the gratuity fund is always calculated at the rate of 15 days’ wages. Also, the last-drawn salary is not only the basic pay you get from your employer. It also includes your dearness allowance (if you work for the government) and the commission you get from your employer. For instance: if your last drawn salary is 20 thousand INR and you have drawn it for 5 years, then by using a gratuity calculator online, your gratuity fund sums up to: GF = 20,000×15/26×5 = 57,000/-(approximately) Here are your estimated work days in a month: 26. Category 2 – Employees who do not come under the Act. In case you are not covered under the act, you are still going to get your gratuity fund. But, there is a slight change in the gratuity formula. Instead of 26 days of work, your number of days of work will be marked as 30 days. So, the gratuity formula remains the same in this case. Gratuity = Last salary drawn × 15/Number of working days×Number of service years [The standard number of working days is 30 days for this category.] For instance, if your last drawn salary is 20 thousand rupees and your number of years of service is five, then the gratuity calculator online calculates your gratuity fund as follows: GF= 20,000 × 15/30 × 5 = 50,000/- Here, the only difference is that your working days are marked as 30 days. How to Use a Gratuity Calculator Online? Here are two simple steps to follow to use a gratuity calculator online: Enter your last drawn salary, your dearness allowance, and your recent commissions. In case, you don’t have a dearness allowance or a commission, enter only your last drawn salary. Enter the number of years of service you have given to the company. The software then instantly calculates your gratuity fund in no time. In case, you do not come under the first category, use a separate category gratuity calculator online to calculate your gratuity. Benefits of the Gratuity Calculator Easy to use: The gratuity calculator online is a simple device that is programmed for user convenience. You don’t have to do anything except put your figures in the software, and it calculates them in no time. Quick results: It is a very time-saving affair, as it gives you your estimates in seconds. You don’t have to wait for the estimated fund, you get your figures in seconds. Precision: It gives you precise results as well, and this is because it is generated by an AI. What are the Gratuity Taxation Rules? There are some rules regarding gratuity taxation in India, and they are as follows: The amount of gratuity you receive in case you are a government employee is excluded from the income tax. The tax-excluded gratuity amount that you claim to the employer cannot exceed 20 lakhs rupees. It is therefore important to be careful while using a gratuity calculator online. Make sure you keep all these things in mind while calculating your gratuity estimate. [B-02] Conclusion At times you need a gratuity calculator in India at your convenience to estimate your gratuity periodically. This will help you know the gratuity amount in case you resign or retire from your job. An easy-to-go software option could be really helpful to provide you with precise estimates. While you calculate your gratuity funds, make sure you are aware of the category you belong to. Check the official website of Piramal Finance to understand the online gratuity calculator. You can also read their blogs on various topics and check out the products and services they offer.
08-11-2023
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FD

FD Calculator: Calculate Your FD Interest Easily

Created a fixed deposit but don’t know how to calculate the interest rate? Want to find the yearly, quarterly, or monthly interest using an FD calculator? Well, this is the right place for you to get all your doubts cleared regarding FD and its calculation methods. In today’s article, we will throw some light on an FD calculator, how to use a fixed deposit interest calculator and the standardised formula to calculate the interest rate. [B-01] Fixed Deposit and its Types A fixed deposit or an FD is a scheme offered by your banks where you invest money to get a higher rate of interest. Your money increases over time at a given interest rate over time. You get the total amount at the end of your maturity period. It is a very safe option where interest rates are consistent with no market-related risks. The interest rate is not affected by any sort of market clashes and you get your guaranteed returns at maturity. There are four broad kinds of fixed deposits and they are: Cumulative Fixed Deposit: In this type of fixed deposit, when you invest your money, your interest gets compounded. You can use an FD calculator to calculate and analyse your CFD. Non-cumulative Fixed Deposit: In this type of fixed deposit, when you invest your money, you get a fixed interest rate and you can 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 deposit you carry out with non-banking financial companies or the NBFCs is called a corporate FD. You should check the company’s credit rating and take expert advice to make sure your deposits are secure. Benefits of Investing in Fixed Deposits The fixed deposit has various benefits, read to know them: You get assured returns irrespective of any crisis or market fluctuations. You get promising interest rates, which is a big advantage. You get additional tax benefits by creating a fixed deposit. In terms of security, you will be assured that your money is in a safe place. It acts as collateral in most cases, if ever you want to opt for a loan. What is an FD Interest Calculator? An FD interest calculator is a handy, easy-to-use online software that helps you find the interest out of the money you invest. It assists you to calculate the maturity amount you are going to receive if you put your money at a given interest rate for a set period. It also helps you decide which bank you should prefer according to different interest rates, how much money you should invest and the tenure. Through FD Calculator Monthly Interest calculation becomes easy. What are the Advantages of Using an FD Calculator? Some of the exclusive advantages of using an FD interest calculator are: Accurate results: FD calculator is 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 computing the final 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 Calculator? Here is a step-by-step guide explaining how to use FD Calculator Monthly Interest along with yearly, half-yearly, and quarterly rates. 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 here you have your results in a second. You can recalculate the same 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, two methods are widely used: Simple Interest This is not a flexible method to compute your interest rate. The interest rate is always pre-fixed at a fixed period. 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 5000 rupees at an interest rate of 10 percent for a period of 5 years, then your interest is equal to 2500 rupees and the total amount is 7500 rupees. This method is mostly not preferable due to its rigid nature and fewer 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 5,000 rupees at an interest rate of 10 per cent for a period of 10 years, then your total interest would be 7968.71 rupees and your maturity amount would be 12,968.71 rupees. [B-02] Conclusion An FD interest calculator is a very useful tool to help you understand the interest that you will receive on your monthly investment. 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. You can also refer to the official website of Piramal Finance to understand about FDs in detail. Go through the various informative articles posted by them and check their products and services.
08-11-2023
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Other

How to Calculate Land Area

Looking for land to purchase but worried about how accurately to measure it before buying? The land area calculator will help you to calculate the same. Land area is measured differently across India’s many states. Find a common international measurement system that corresponds to the state’s local land measurement term. Land calculators on the internet make it easy to get an exact measurement. Read this article to learn about the methods of calculating or measuring land. Importance of Measuring a Land Many techniques exist for accurately surveying both small and large, erratic plots of land. Some approaches are straightforward and based on elementary geometry, while others are more involved and could make use of global positioning system (GPS) data and satellite photos. This piece explores the various tools and methods at the surveyor’s disposal. Before purchasing land, it is important to construct a boundary wall, and settling a boundary wall dispute with a neighbor is important. Getting an accurate measurement of the land is also important. We can take the necessary measurements and calculate the results using only the geometry we learned in high school. If, however, the land in question has a peculiar shape or if you intend to acquire a very large plot of land, say, a farm that is several miles across, then you need to use the advanced technique. How to Measure a Land or Plot Area The methods for measuring land are listed below. Check them out: Calculate using Geometric Method The geometric method involves surveying and plotting the irregularly shaped plot over a sheet of graph paper. The land is broken up into geometric shapes whose areas may be calculated mathematically. To fill up a map, one begins with the largest geometric figure that can be drawn neatly, then works their way down to ever smaller ones. The areas of each of them are determined, and their sum provides the total area. For example: Area of Rectangle: Length × Breadth Area of Square: Length × Length Triangle Area = 1/2 Base Height Area of Trapezium: 0.5 × (Length 1 + Length 2) x Height Using these formulas, you can calculate the correct area. Calculate Using Planimeter on Map You can get a little tool called a planimeter if you need to measure the size of a flat section in a 2D diagram. All shapes, both regular and irregular, can be accurately measured using this apparatus. Just flip it wherever you need to and run the end pin along the area’s perimeter to get an accurate reading. It can easily move in any direction because of its flexible connectivity. To make use of a planimeter, you must first acquire a map or aerial snapshot of the area. Google Earth, Wikimapia, and other programs now provide access to high-resolution satellite images. After measuring the lengths and angles of the various lines with a planimeter, you may use that information to create your own map. The Issue of Scale May Arise The area will be reported on the planimeter’s own scale, usually expressed in square meters, so you’ll need to do some converting before proceeding. With the knowledge of the map’s scale ratio and a known area on the map, you may determine the area of a small square drawn anywhere on the map. Finally, you get an assessment by running the planimeter across it. If your planimeter reads 1.5 square meters, but your square is 300 square feet, then 1 m2 is 200 feet square. With this in mind, to convert the planimeter’s final reading in square meters to square feet, just multiply the metric value by 2. Calculate By Using Measuring Wheel You can also use a measuring wheel to get a rough estimate of the size of the area. For the most part, it functions similarly to a planimeter. All you need to do is walk around the perimeter of the area to get an accurate reading. Make sure you follow the above-given instructions at the exact location. Created in the form of a single bicycle wheel, it must be rolled to all of the property lines to obtain an accurate measurement. When you get to the starting point, it shows the current reading in the units you chose. Calculate By using Graph Paper You can use graph paper to superimpose a map on a transparent sheet, or you can take a photostat on a slide of clear plastic. Once that’s done, it can be clamped over a sheet of graph paper of the appropriate size. Given that we know the area of every square in the graph, the area can be calculated by counting the squares and multiplying that number by the map’s scale. Calculate Using GPS GPS, which stands for “global positioning system,” is a network of satellites that, when used with a portable receiver, can pinpoint your exact location. It is useful for calculating the area of large tracts of land by first traveling to their extremes and noting their coordinates. Calculate Using Aerial Photographs A planimeter or graph paper with the appropriate scale can also be used to measure land areas seen in aerial images. For land surveys, these are a must-have. If the terrain is marked clearly or has good contrast, this is a really helpful tool. Conclusion The purpose of this article is to give a comprehensive examination of land area calculators. Whether you’re setting out small or large plots of land or buying a new house, you’ll need to know how much space you have. Land calculators help you calculate the area of land in acres. Before investing, it is also important to be aware of the land area. To understand more about land area calculators, do not forget to visit the official website of Piramal Finance. Read their informative articles on various topics and check out the different products and services they offer.
08-11-2023
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Other

What is Gratuity and How To Calculate It?

Gratuity is an amount paid to the employee by their employer in return for the services provided by them. Not every employee is entitled to receive gratuity. Employees who have served the company for 5 years or more receive it. However, one can receive gratuity before 5 years in case the employee gets disabled in an accident or due to a disease. The amount of gratuity received depends on the last drawn salary and the number of years you have worked for the organisation. The rules are set by the Payment of Gratuity Act, 1972. Further in the article, we will learn the gratuity calculator formula in 2022 and other important details regarding it. [B-01] What is a Gratuity Calculator? A gratuity calculator is a tool to find out the amount of gratuity you are entitled to receive. This can help in planning your future finances in case of retirement or if you are planning to quit the job. Various factors affect gratuity calculation. Factors like years of service and the last salary drawn. The amount of gratuity also differs from employee to employee as the salaries of individuals are different. Advantages of Using a Gratuity Calculator There are many benefits of using a gratuity calculator in India. It helps you in determining the amount your employer owes you for the service provided by you. A gratuity calculator takes away the burden of calculating it manually. It saves time and you can do it from the comfort of your home. A gratuity calculator also helps in planning your finances and meeting your goals. Eligibility Criteria for Payment of Gratuity Certain factors make you eligible for gratuity. You need to meet the following criteria. You should be eligible for superannuation. You have resigned from the job after working there for 5 years continuously. You can receive a gratuity before 5 years of service in some cases. This includes disablement or death in an accident or due to a disease. In case of death, the nominee receives a gratuity. You don’t work full-time for any other employers. Gratuity Calculation Formula 2022 The number of years an employee has worked for the same organisation plays an important role in calculating gratuity. If a person has worked for 12 years and 7 months, his number of years will be rounded off to 13 years. And if the person has worked for 12 years and 4 months, then the rounded-off figure will be 12 years. There are two categories of gratuity calculation. The first is for employers who are covered under the Gratuity Act. The second is for employers who are not covered under the Gratuity Act. Employers covered under the Gratuity Act Gratuity calculator fomula 2022: Gratuity=n*b*(15/26) n= Duration of employment b= Last basic salary + dearness allowance 26 is the number of working days. Gratuity is calculated at the rate of 15 days’ wages. Example: If the number of years of service of an employee is 10 years and the last salary withdrawn along with dearness allowance is Rs. 1 lakh. Then, the gratuity will be calculated as: 10100000(15*26)=5,76,923 Employers are not covered under the Gratuity Act Gratuity calculator formula 2022: Gratuity=n*b*(15/30) n= Duration of employment b= Last basic salary + dearness allowance Taking the same values as the above example. The gratuity will be calculated as: 10100000(15/30)=5,00,000 When a company isn’t covered under the Gratuity Act, then they are not liable to pay the gratuity to its employees. In cases where they want to pay the gratuity, the amount is based on half a month’s basic salary for every year. Taxation Rules for Gratuity The amount received in gratuity is taxable. However, the Income Tax Act does provide some exemptions. It is considered as ‘Income from Salary’ while filing the taxes. A government employee can avail full tax exemption. For the non-government employee of an organisation covered under the Gratuity Act, the tax exemptions can be claimed on the minimum amount of the following: Maximum limit of Rs. 20 lakh Last basic salary x years of employment x 15/26 Amount of gratuity received In cases where the non-government employee of an organisation is not covered under the Gratuity Act, the exemptions can be claimed on the minimum amount of the following: Maximum limit of Rs. 20 lakh Half a month’s average salary x years of employment Amount of gratuity received [B-02] Conclusion Gratuity is an important part of an employee’s working life. They are entitled to this amount in exchange for the services they have provided. It helps them when they retire or leave their jobs. However, calculating gratuity manually can be a bit difficult. So, the gratuity calculator formula used online can be helpful and accurate. For more of your finance queries and solutions, visit us at Piramal Finance.
08-11-2023
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FD

FD Calculator: How does FD Calculator work?

What is An FD Interest Calculator? An FD or fixed deposit is an excellent choice when it comes to investing your money over a long period. These deposits typically offer a higher interest rate compared to other short-term deposits. Most NBFCs (Non-Banking Financial Companies) and banks offer FDs that are subject to a lock-in period ranging between 7 days to 10 years. The FD interests calculator takes into account several important factors that are discussed in the next few sections. You may use this to determine how much you should invest today to reap a certain amount of return on maturity. [B-01] Benefits of Using an FD Interest Calculator If you are going to invest your hard-earned money, then it is an unsaid expectation that you would want to know how much return you will get and calculating interest on any investment can be complicated since there are too many factors involved. In such cases, an online FD interest rates calculator can come in handy. Here is what an FD Calculator can do: Break down complex FD maturity calculations that include multiple variables. Give you accurate figures just by inputting a little information online. Save you a lot of time. Help you compare returns offered by different NBFCs and banks. FD Interest Rates Calculator Formula The FD interest calculator calculates the return on investments based on two types of interest accrued. Simple Interest The interest accrued on an FD that is pre-decided for a fixed period is called simple interest. It formula is, SI (Simple Interest) = [P (Principal amount invested)xR (Pre-decide Rate of Interest in %)x T (time of the FD)] / 100 So, for example, if you invest INR 10,000/- at a fixed rate of interest of 10% P.A. over 3 years, then the interest accrued at the time of maturity will be, SI = [10000x10x3]/100 = INR 3,000/- So, your maturity amount will be = Principal amount + SI = INR (10,000+3,000)/- = INR 13,000/- Compound Interest When you earn interest on both the amount invested as well as the accrued interest, you earn compound interest. Its formula is given by, A (maturity amount) = P [principal amount] x (1+r/n) [r=rate of interest, n=number of compounding in a year] ^ (nxt) [t=number of years] So, if you invest INR 10,000 for 3 years at a compound interest rate of 10%, then the matured sum will be, A = 10000 {1+(0.1/4)} ^ (4*3) = 10000 (1+0.025) ^ (12) = 10000 (1.025) ^ (12) ~ Rs. 13,449/- The compound interest earned as per the FD interest calculator is thus, CI = A – P = 13449 – 10000 = INR 3,449/- How to Use An FD Interest Rate Calculator? Using an FD interest calculator is simple. You should have some basic information handy before using the calculator. Most important of these are, Deposit tenor. Principal amount. Other information that you will need to input into the FD interest rates calculator is, Type of customer. Type of FD. Once you have entered these data online, the FD interest calculator will automatically give you the interest amount, and thus the maturity amount as well. Factors that Influence FD Interest Rates All NBFCs and banks that offer FDs will take into consideration a few important factors that affect your maturity amount. Deposit Tenor The deposit tenor is the total amount of time that you invest your money. Typically, the respective banks decide this tenor which can range from 7 days to 10 years. Depending on the FD tenor, your interests may vary. Your Age Your age or the primary applicant’s age also plays a crucial role in determining FD interests. AN FD interest rate calculator will automatically consider preferential interests to senior citizens ranging between 0.25% to 0.75%. The standard age limit for this is 60, while some banks consider investors of age 55 years as senior citizens. State of the Current Economy Repo rate by the RBI (Reserve Bank of India) and inflation are other important economic factors that affect the FD interest calculator. Maximizing Returns on Fixed Deposits While the interest rates on FDs might be fixed, there are ways to maximize the return on your investments. You can try out a few possible ways to do this – Deposit amount: The FD interest rates calculator will automatically yield a higher maturity amount if the principal amount is high. Deposit tenor: If you keep your money invested for a longer period, you will get a higher interest. FD type: Cumulative FDs yield a higher interest compared to non-cumulative FDs. Interest frequency: Frequent compounding of interest may eventually lead to a decreased maturity amount. Interest can be compounded annually, half-yearly, quarterly, or monthly. Age: Senior citizens typically enjoy a slightly higher interest rate compared to others. [B-02] Online FD interest calculators are usually free and give accurate results. They save you a lot of manual work, and even compared interests across NBFCs and banks. The latter helps you make an informed choice about where to invest your money. NBFCs like Piramal Finance are a great finance option if you are looking for loans or information related to investments.
08-11-2023
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Banking

How to Open a Bank Account in 5 Easy Steps?

Are you looking to open a bank account but are confused about what to do and how to do it? Let us tell you that opening a bank account is a simple job. We will discuss the 5 easiest steps you should follow, provided that your required documents are ready, to open a bank account within minutes. Also, this blog will cover important information related to bank shares or investments that you must know minutely before investing in banks or other financial institutions. [B-01] 5 Easy Steps to Open a Bank Account 1. Choosing the Right Bank You must consider the facilities you want from your bank and adhere to them while searching for a suitable bank. If you do not have an idea, you can visit the official websites of various banks in India and learn about their offerings to customers for bank account opening. The interest rate is the most crucial factor you must consider before opening a bank account. Only a few private banks offer an interest rate higher than 4%. 2. Visit the Bank’s Website We have already mentioned that the best way to learn about the bank’s features before opening a bank account is to visit its official website. One may not be too used to this technical side of the internet. In that case, visit the bank physically and talk with the officials to learn more about the bank. Almost every bank allows you to open a bank account online within a few minutes. 3. Know the Type of Account Banks provide multiple types of accounts with different features, functions, interests, and requirements. For example, if you want to open a bank account for savings, choose a savings account. On the other hand, if you want to use your bank account for salary deposits, choose the salary account. Each of them provides a different set of benefits. We recommend you open a savings bank account for regular banking requirements or a current account for business needs. 4. Be Ready with your Documents Due to obvious reasons, your documents are essential for bank account opening. While filling out the form, providing KYC details, and attaching the photograph, documents will be required to prove our identity, address, citizenship, etc. The documents generally include the Aadhaar card, PAN card, passport, ration card, and voter ID card. 5. Read and Agree with the Bank’s T&Cs The final step before opening a bank account is to read through all the essential terms and conditions carefully. If you have any doubts, clear them up by asking the banking officials. Reading the terms and conditions is very important because you will learn everything there is to know about the bank’s rules and services.After it is all done, put in your final signature, and your bank account is ready. Factors to consider before investing in bank shares Financial Condition Before investing in bank shares, the first step is to examine the banks’ financial health. If you follow this step correctly, you will have completed half of your work once you have identified the best bank to invest in.Check whether the bank you are opting to invest in has enough reserves to cover its liabilities. The financial health of the bank is the leading indicator of whether or not you should invest in it. A bank lagging with low funds might be unable to carry on its expenses. Low reserves show that the bank is about to go bankrupt, as it will not be attracting or engaging any more business organizations to invest in them. Set your Investment Objectives Reading the banks is crucial, but having a clear insight into yourself as an investor also plays a vital role. Consider the goals and objectives you want to achieve as an investor and your future investment plans. If you reckon that banking investments do not fit your investment goals, then it is better to refrain from them. Bank investments involve high-risk factors but better profit chances. If you want a safe investment where your parked money will follow a safe path and grow gradually, then bank investments might not fit your interests. Bank shares are niche stocks that require a second thought before investing. Tolerance of Risk Knowing how much risk you are willing to take as an investor plays a pivotal role in bank investments. As mentioned above, buying bank shares involves a high-risk factor but pays off well if it does well in the market. Banking shares have a high volatility factor, meaning their values can fall or rise drastically. If you are not prepared to accept the possibility of your shares falling in value, consider more traditional investment options such as real estate. Interest Rate is the Key If interest rates are high, investors can earn more from assets like bank shares. Purchase your bank stocks only when the interest rate is rising. Interest rates depend on factors such as financial policy, inflation, economic conditions, etc. How is the Economy Currently Doing? The current economic scenario of the company is crucial for making any investments, let alone buying highly volatile bank shares. High economic growth generally yields high stock returns. [B-02] Conclusion The banking sector is the backbone of the financial realm of the country. Furthermore, a bank account is essential for managing our personal or family’s financial situation.Now that you have reached the end of this blog, you know the easiest way to open a bank account. We also talked about the things you need to think about if you want to buy bank shares at the best time. You can visit Piramal to learn more about informative posts related to the banking sector.
08-11-2023
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Personal Loan

Aadhaar Card Loan: How To Apply for Personal Loan On Aadhaar

It’s no secret that one can face a financial crunch at any point in their life. If you are facing challenges in making ends meet, a personal loan comes in pretty handy in such circumstances. A personal loan can cover almost all your financial shortages. It is an unsecured loan. As a result, it has a fairly long verification process before you get approval. Also, lenders require multiple documents for verification procedures. So, it becomes a very hectic and time-taking process. In the end, your application could even get cancelled if the criteria are not met. But wait, don’t worry! There’s an easier way out. Nowadays, the process has become quite straightforward. [B-01] Now all you need is just one document. Yes, we’re talking about the loan on Aadhaar card only facility. With just your Aadhaar details, the documentation can be done online by e-KYC. In case you need to know, KYC is how a bank or lender will verify your identification. Since no physical documents are needed, it saves time. In some banks, you can even get instant approvals if you submit a scanned copy of your Aadhaar card. Eligibility criteria for getting a personal loan with an Aadhaar card Yes, you have certain criteria to fulfil first. But these are somewhat basic. So, let’s have a look at the personal loan on Aadhaar card only eligibility criteria, shall we? Age You must be at least 21 years old when applying for a personal loan. However, you should not be older than 60 years (60 years for self-employed) when the loan matures. Credit score You must have a credit score of 750 or above to be eligible for an Aadhaar card loan. Salary A minimum of Rs. 25,000 in net monthly income is necessary to apply for an Aadhaar card loan but this varies from one bank to another. Also, you must have a minimum of 2 years of combined work experience, including at least 1 year in the present organisation. Years in existing residence You must be residing in your current home location for at least 12 months. Documents needed for Aadhaar card loan Here’s a list of the documents you will need to apply for a personal loan using an Aadhaar card: Passport-size photos. Additional KYC papers, such as a passport, PAN card, driver’s license, and voter ID. Bank statement for the past 3 months. How to apply for a personal loan using an Aadhaar card? Digitisation and the introduction of the Aadhaar card have made it simpler to submit an online personal loan application. Your Aadhaar Card is the sole document you need to present as verification of your KYC. Most banks and non-banking financial Institutions now accept it as identity, birth, residence, and citizenship proof. Follow the step-by-step guide below to apply for a personal loan using an Aadhaar card: Step 1 First, you need to check and compare personal loan offers online by going to a bank or financial aggregator website. Step 2 Then, you need to enter a few basic information and the needed loan amount. Step 3 Next, you need to submit scanned copies of your ID cards and other documents online. Step 4 Your application and the necessary documents will be up for verification. Step 5 Finally, when approved, the loan amount sanctioned will be credited to your bank account. Why choose the Aadhaar card personal loan option The perks of getting a loan on an Aadhaar card are quite a few: Loan amount You can avail of a loan of Rs 10,000 up to Rs 50,000 by just using your Aadhaar card. Interest rate Interest rates for personal loans from private lenders begin at 10.50% per year, whereas public sector banks begin at 8.35% per year. This is less compared to other ways of getting a personal loan. Tenure The typical personal loan repayment period is from 1 to 5 years. Some banks, however, could provide terms of up to 72 months. Processing charge For an Aadhaar card loan, it is only 2% or even less of the approved amount. Prepayment penalties The penalties can be up to 4% of the loan balance remaining. Processing period The processing period for an Aadhar card personal loan may range from a few minutes to a few hours, depending on the procedures of each lender. Some mobile apps can also disperse loans within a few seconds these days. Aadhaar card impact on personal loan Individuals must provide their KYC documents to use any financial services. To prevent money laundering, the government has mandated that banks and other financial organisations have to gather clients’ KYC information. In the past, KYC needed a fair amount of documents. But today, it can be done quickly. Moreover, banks have begun e-KYC, which completely digitises the KYC procedure. Verification is an easy process now because Aadhaar has the biometric information of the individuals. When it comes to personal loans, both private and public sector banks have highly strict validation and verification procedures. Initially, obtaining a loan required the applicant to submit a lot of paperwork. The approval process also took a while. However, since the Aadhaar card was introduced, fewer documents are needed now. Also, the time taken for a loan to be approved is reduced. People mostly prefer personal loans in case of an emergency. They also require a speedy verification procedure. An early deposit of the loan funds into their bank accounts will help them for sure. [B-02] Wrapping up It’s a no-brainer that an Aadhaar card has made it easier to get a personal loan. Earlier, you had to go through a lot of struggles to get one. Just make sure you do a bit of research for the best deal. In case you are seeking a loan on Aadhaar card only, do not forget to check out Piramal Finance for the best interest rates.
08-11-2023
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Personal Loan

Find the Right Personal Loan Tenure that Works for You

Personal loans are unsecured loans. It means you can get one without putting up any security. The funds taken can be used for a variety of purposes. It includes using them for an emergency, funding a business, or pursuing your education. Personal loans are more expensive than other loan categories. You can choose the maximum loan tenure and an EMI amount based on your repayment capacity. But, this does not imply that you can choose any loan tenure. For example, a longer tenure with lower EMIs or a shorter tenure with a higher EMI amount. Both cases are not good because they can affect your finances. Your budget will need to include money for repayments if the term is shorter. On the other hand, a longer tenure leads to a greater average cost of borrowing. It is crucial to select the right personal loan tenure period. This will ensure that you receive the desired benefits from your loan. [B-01] What is a Personal Loan Tenure? The personal loan tenure, or duration, is the time between its disbursement and your final EMI payment. Let’s say, you took a personal loan in 2017 and paid it off in full in 2022. In this case, the loan term will be five years. In India, the interest rates on personal loans vary from bank to bank. Most financial firms offer personal loans with a usual minimum loan tenure of two years. And, a typical maximum personal loan tenure is five years. But keep in mind that the length of a personal loan can vary depending on the lender. Importance of Setting the Right Personal Loan Tenure It doesn’t only have cost advantages. Choosing the right personal loan tenure allows you to pay your EMIs smoothly. This will make sure your finances are not affected. Other benefits include the following. It assists you in building a positive credit history and a higher credit score. So, it allows you to obtain competitive rates on future loan applications. It helps you effectively manage your personal finances while also achieving other goals. Some Factors to Consider to Choose the Best Personal Loan Tenure Be aware of your monthly income. The best way to analyze the ideal personal loan tenure and EMI is to assess your spending and saving habits. Before taking a loan, create a list of your monthly expenses and how much you can save. Take into account all the liabilities you may have as well as their duration. The amount of your EMI loan and the length of your loan can be chosen based on your savings and spending rates. The 50/30/20 rule will help you create a repayment strategy that works for you. It states that 50% of your income should go toward meeting fixed and variable expenses. 30% should go toward non-essential expenses. The rest of the 20% should go toward debt repayment and savings. Determine how much of a personal loan you need. Decide on the amount of the loan you need before applying for one. Your loan tenure directly affects the amount of your loan. To repay the funds and interest on a loan for a larger amount, more time may be required. So, as a general rule, never take a personal loan for a sum greater than what you actually need. Understand the reasons you require the loan and how much you will need to achieve your goal. It will help you calculate the loan amount needed accurately. Future Cash Planning. It is crucial to have an in-depth understanding of your monthly expenses and regular income. It will help you make an informed decision and decide the best personal loan tenure. When figuring out your monthly expenses, including the amount that you owe, it can be any current loans or debts, including credit card debt. It’s a good idea to look at your debt-to-income (DTI) ratio as well. It is calculated by the formula given below. Debt-to-income ratio = (Total monthly debt payment / gross monthly income) x 100 It is best to only apply for a personal loan if your DTI is under 50%. Calculate Your Interest Rate A personal loan’s eligibility and interest rate are both influenced by your credit score. Shorter loan terms result in lower interest rates. Longer loan terms lead to higher interest costs that must be paid in the future. Choose the tenure based on your credit score. If your credit score is high, choose a shorter term. Good credit scores will qualify you for some of the best personal loans with a lower interest rate. This will help you avoid paying more interest. You should also choose a longer term if your credit score is low. A shorter term with a higher interest rate will affect your finances. Longer tenure options can also help you raise your credit score. It will benefit future loan applications. Use a Personal Loan EMI Calculator Use the personal loan EMI calculator if you need help deciding the ideal personal loan tenure. You can easily calculate your EMI payments. You can also choose the length of your loan with the aid of a free online tool. Assess the ideal EMI by combining different tenures. A personal loan EMI calculator can give you exact information on the total amount of interest paid and the total payment. This includes interest plus the principal that is due over the course of the loan. [B-02] Conclusion Personal loan tenure refers to how long it takes to pay the loan back. The time it takes you to repay the personal loan and the interest rate are directly correlated. So, the longer it takes you to repay the loan, the higher interest you will have to pay. A penalty could apply if you repay a loan early. It’s important to pick the right loan amount, interest rate, and repayment period when taking a personal loan. If your financial state enables you to select a shorter tenure, go for it and save money on a personal loan. Don’t forget that every penny matters! For more details, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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Banking

What Is Net Banking And How Does It Work?

Today is the last day to pay your kid’s school fees and you have to go to the school to make the payment. Suppose you don’t have cash at hand and you need to rush to the bank to bring cash. You only have 1 hour left. It is impossible, to be in 2 places at the same time! Who’s going to be your lifesaver? Net Banking is the facility to save you in such times. It helps to pay your utility bills, and order groceries or medicines for your parents online. You can complete such payments without rushing to the bank. Banks allow you to use banking services over the internet. In this article, we will discuss what net banking is. Further, we will discuss how it works and how to use banking services without visiting the bank, in detail. [B-01] What Is Net Banking? In simple words – net banking is online banking or internet banking. It is convenient facility banks provide to make payments through the internet. Moreover, it is also a secure method. Net banking is a feature given by banks to do various transactions. A few services to name are: Sending funds to another bank account Checking your payment history Checking your account balance Paying various bills Applying for a loan Log payment-related queries. In short, net banking is a digital method of banking or an electronic banking system. Like physical banking, net banking allows you to access your banking account online. But with a simple click, you can do online bank login and complete payments. Now that you know what net banking is, let’s see how it works and how it helps you to begin using net banking. How Does Net Banking Work? Net banking is an online banking service provided by banks. You can use this service sitting in your home. Yes, no more stress. Complete bank login online and do all banking payments comfortably. If you have a computer, laptop or mobile phone, you can access your bank account through net banking. This can be done without visiting the branch while having a cup of tea at home. That’s how net banking saves time. Here’s how to start using your internet banking account with online bank login. How To Do Net Banking Login For First Time? For using online banking services, an online bank account should be set up. First, reach out to your bank and get the user id and password for your internet bank account. Go to the webpage of your bank. To start your account bank login, enter the user id and password on the login page. On the net banking login page, there will be a host of services offered by the bank. Use most of these services by simply doing a bank login via internet banking. Why Using Internet Banking is helpful? Net banking login is a useful service provided by banks. There is a long list of features of net banking provided by banks. You can simply log in to your account and use net banking services all day long.Crucial banking tasks became easy with an online net banking facility. Using both financial and non-financial services with online internet banking is convenient. Some of the features are: Easy to operate With internet banking, you can do most of the bank operations online easily. It is easy to do net banking without visiting the bank using the internet service. Works 24X7 Unlike banks which run for a specific time of the day, the net banking facility is available 24X7. Even after the bank closes for the day, net banking allows you to do banking transactions all day long. No need to rush to the bank chasing time! Funds transfer and other financial services Merchandise payments, bills payment, funds transfers, etc., are easy and only a click away with net banking services. Moreover, you can do it anytime at your convenience. Non-financial services Net banking makes other bank services easy. These include requesting a chequebook, applying for a home loan, managing a trade account, opening fixed deposits, starting investments and many more. ATM Debit card pin generation The traditional way to do ATM Debit card pin generation is at any ATM. Net banking allows pin generation from net bank login too. Complete Safe and Secure Banking System Online net banking is a password-protected banking system. Rest assured, online net banking is a fully safe and secure banking system for customers. Customers can do net bank login with their user id and password. Do not share your user id and password with anyone so that others can not access your account. In short, net banking: Enables to track account payments, account balance and statements Allows funds transfer online without visiting the bank physically Works 24X7 and helps customers to do transactions all day long Allows financial and non-financial banking services Helps in paying taxes, utility bills, insurance premiums, etc. Allows you to request a new chequebook Is a safe and secure method of banking Helps in opening Fixed Deposit (FD) And, many more. [B-02] Final thoughts Now you know how to use online banking services provided by banks and are now able to do online bank login to access your bank account. Net banking makes life easy. It allows accessing the bank 24X7 from the comfort of your home. Be it paying bills online, applying for a credit card, home loan or personal loan, etc. If you want to know more about internet banking services, read the Piramal Finance Blogs. Visit the Piramal Finance website and the range of services and products offered. You will find blogs on a range of topics on personal loans, home loans, microfinance, etc. If you are looking to buy a home, you can consult Piramal Finance experts. They give guidance on various features and benefits of home loans offered by Piramal Finance. They also suggest the best housing loans at the lowest interest rates by Piramal Finance.
08-11-2023
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