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Education

5 Reasons to Invest in NPS

Today, you might not have to worry about your expenses since your earnings will cover them. But what do you do when you stop working as you get older? How well did you plan your retirement income so you could enjoy a comfortable and safe retirement? It’s time to think about it if you haven’t already. Among the most popular ways to save for retirement is through the NPS. [B-01] National Pension Scheme (NPS) With the National Pension Scheme, you save your earnings during employment so you can retire with a larger asset and a steady income. Residents between 18 and 65 can invest in this government-backed plan (citizens or non-citizens). Who is eligible for the NPS? The NPS pension scheme is open to anyone who meets the following requirements: A person must be a citizen of India or an Indian living abroad. The age range should be between 18 and 70. The candidate should follow the “Know Your Customer” (KYC) rules written on the registration form. The Indian Contract Act says that you must be able to sign a contract before you can do so legally. People of Indian Origin (PIOs) and Hindu Undivided Families (HUFs) cannot join the NPS pension scheme. Since NPS is a personal pension plan, it can’t be set up to benefit someone else. Why Should You Invest in NPS? NPS is better than personal retirement plans such as fixed deposits and PPF. Here are a few reasons why NPS is a good place to spend money. Investing in NPS has several benefits. The National Pension Scheme (NPS) allows people who want to plan for their days after retirement to save regularly. It has a lot of good points that make it one of the most popular ways to invest. Some of the reasons you should invest in the NPS pension scheme are as follows: Investing freedom You can make a one-time donation at any time during the year or give money every month. The basic annual payment for Tier 1 investments is 500 rupees, and the basic annual payment for Tier 2 investments is 1000 rupees. You can also change the amount you put in if it meets the minimum requirements. The factor of trust The National Pension Scheme also has the advantage that you can only use it if you have an NPS account. If you change jobs or move, your NPS account will go with you. Because NPS is a public plan, people tend to trust it, which makes it even more appealing. Source of earnings Generally, your source of income stops, but your home costs stay the same. Also, rising costs of living will have a big effect on many parts of our lives. So, if you want to keep living the way you do now, you’ll need to find a steady source of income. The NPS pension scheme gives you a pension as an option for retirement, which can save your life when you need it most. Investing in a Low-Risk Portfolio The NPS is a low-risk and low-cost plan compared to other ways to invest. Also, since the government backs it, the risk limit on stocks under this plan ranges from 50% to 75%. When an investor is 50 years old, 75% of their money is at risk. When the investor is 60, that number drops to about 2.5%. Because of this equity exposure, the NPS gives you a chance to make more money with less work and less risk. Flexibility in Fund Allocation Investors can make their fund portfolios fit their own needs with the help of the National Pension Scheme. Investors may divide their investments among the four assets depending on their risk tolerance. If an investor is unhappy with how the fund is doing, the fund could be changed. Guaranteed Refunds Even though some of the National Pension Scheme is invested in market shares, the returns are still guaranteed in the long run. Also, the guaranteed returns from these plans are higher than those from FDs or PPFs, which are other ways to invest. Tax Benefits Section 80C of the Income Tax Act says that the NPS can help people save money on their taxes. Section 80CCD lets you get a tax break for NPS contributions of up to Rs 50,000. (1B). Section 80C of the Income Tax Act lets you get a tax break if you invest Rs. 1,50,000. This could save you a lot of money each year. How To Create NPS Account in Less Time? Accounts for the NPS can be made both offline and online. Online saves a lot of time and is easier than in other ways. What to do online At the moment, opening an NPS pension scheme account takes less than 30 minutes. Users can open an account online if they link it to their PAN, mobile number, and Aadhaar. The OTP sent to your phone can be used to confirm your registration. It will give you a PRAN, a permanent retirement account number, that you can use to get into your NPS account. [B-02] Conclusion Without a doubt, it’s hard to overlook the benefits of an NPS investment, especially since there aren’t many other ways to invest with benefits like these. During the basic registration process, you can quickly start putting money into the NPS online through banks, credit unions, and registered dealers. Remember that the power of repetition lets you get the most out of this plan. Investing in the National Pension Scheme (NPS) could help you when you need stable money the most in your later years. So, invest in NPS now to ensure you’re ready for the future. Visit Piramal Finance to find out more about this subject.

08-11-2023

Home Loan

5 Reasons To opt For Home Loan Refinance

Choosing the best mortgage often makes sense, even if it is a matter of personal preference. There is no “one-size-fits-all” refinancing solution, but with some careful consideration, you may choose wisely. Refinancing your home has many benefits, but one of the biggest is that it lets homeowners get better loan terms and lower their monthly payments. Refinancing can be the best choice if your mortgage has a high interest rate or your monthly payment exceeds 20% of your income. However, many individuals don’t realise all the fees involved in refinancing and regret their decision. We must first understand what it is and how it works before proceeding. [B-01] How Does Refinancing a Home Work? There are a few things to think about when refinancing your mortgage. To guarantee that you may get a reduced interest rate, check your credit score first. You will feel more confident about refilling at a reduced interest rate if you have a good credit score. Second, shop around online to see what rates you are eligible for, then compare the costs of refinancing against the advantages of a reduced interest rate. Third, inquire if your current lender can match the prices you see online. This will help you comprehend the procedure and determine if refinancing is a smart choice for you. The last step is to apply for pre-approval, which may be done in person, over the phone, or online. You may determine how much a lender will lend you by getting pre-approval. Pre-qualification happens quickly, but pre-approval might take several days. But be sure to balance the benefits of a lower interest rate against the costs of refinancing. If the savings aren’t enough to cover the costs, the benefits of refinancing won’t be worth it. Consult a financial advisor if you’re unsure whether refinancing is smarter. They can help you decide which refinancing option is appropriate for your financial situation by explaining its advantages and disadvantages. 5 Reasons for Mortgage Refinancing There are several reasons why you might want to refinance your mortgage. We’ll go over some of the more crucial ones. Your existing loan has a high interest rate Refinancing is often done to reduce interest costs. You will save money on interest on your loan if you can lower your interest rate by even a quarter of a percentage point. Savings of tens of thousands of rupees or perhaps millions are feasible. Refinancing might lower your monthly payments if your current mortgage has a high-interest rate. This is especially true if interest rates are historically low. A refinance could save you much money over your current loan; for example, if your current interest rate is 7.2% and your fixed-rate mortgage has a 9% interest rate. For instance, the interest on a Rs 80 lakh home loan with a 20-year term at 9% would be around Rs 90 lakh. You might save almost INR 20 lakh if the interest rate falls to 7.2% over the next 10 to 15 years. Even a small change in interest rates could save a lot of money and provide much-needed financial comfort. Do you want to modify the loan’s term? The opportunity to shorten the loan’s term is another reason to refinance. The shorter the loan term, the less interest you pay during the housing loan. It’s best to pay off your debt as soon as possible. Certain lenders could let you modify the terms of your mortgage when you refinance. A lender may be able to refinance a 30-year loan with a lower interest rate and a shorter term if you desire a lower monthly payment. As a result, your monthly payment will be less. However, you will have to make more payments over the loan’s term. However, whether it makes sense to refinance depends on how long your current mortgage will remain outstanding. If you have a mortgage that is less than five years old, you might want to refinance to take advantage of the low interest rates and lower your monthly payments. Each month, you are paying more than you ought to Examining the numbers is the easiest way to determine if you should refinance your mortgage. If your current interest rate is higher than current rates, refinancing can help you save money. But there are many reasons you may want to refinance your mortgage. Your income, debt, and other factors play a role in determining your monthly payment. Perhaps you’ve received a raise or cleared some debt over the years. Refinancing can be possible if you feel you are now in a better position to make larger monthly payments. Depending on your financial situation, you might pay off your EMIs and change your loan’s term from 30 to 20 years. You want to switch your rates from variable to fixed, or vice versa If you currently have a housing loan with a variable rate and think the current interest rates are perfect. Refinancing could be the best option for you to bring it down to the present fixed rate. Since your monthly payments will remain the same, you can develop a balanced financial budget. There are always two alternatives available to borrowers: switching fixed-rate mortgages to floating-rate mortgages or staying with fixed-rate mortgages. This loan is meant to give people options if they don’t like how a fixed-rate mortgage limits them. Improve the value of your home Your house is an asset you can rely on in times of need; the necessity to pay off your mortgage shouldn’t prevent you from maximising your asset. Mortgage refinancing could give you financial freedom by letting you set up a line of credit on your property. You may borrow money based on the value of your house by opening a line of credit or using your equity. Your eligibility to borrow money is determined by the current worth of your home and the percentage of your mortgage that has been paid off. [B-02] Conclusion Even refinancing is not free in this world. There are a few fees to think about when refinancing your mortgage. Refinancing may include fees depending on your lender and the kind of loan you have. You’ll almost certainly have to pay hefty pre-penalty expenses if you refinance. A decent rule of thumb is to compare your projected expenses against any potential savings. You will save fees via refinancing, just as you did with your first loan using Piramal Finance. When you sign a loan with a high interest rate, the fear of these fees might cause financial poison. Don’t be startled if you encounter these charges; there are several ways to handle them.

08-11-2023

Stocks Markets

5 Rules of Equity Investment

Buying stocks is not a guessing game. First-time investors are looking for financial advice and ideas for equity investments. One of your top goals should be to learn about the stock market. It is important to know about the different trade methods available to investors. Also, it’s important to stick to the five golden rules of investing in stocks. [B-01] What does equity mean? To understand equity investment, think of it as a company-led fundraising effort. Instead of getting a loan from a bank with high-interest rates, a company raises money from the general public. People can then buy an equity share of the company, making an equity investment. After you buy shares, you will get a share of the company’s profits, called a dividend. So, equity is a share, stock, or other similar document that shows that a person owns shares in a business. When someone buys equity shares of a company, they become a part-owner of that company. What Options Does Equity Have? Most people invest in stocks through equity shares or mutual funds. Stock shares Equity shares are a part of a business’s capital, and an IPO (initial public offering) is what a company does when it wants to sell its shares on trading platforms. A company’s total worth is equal to its shares’ total value. Stock mutual funds (MFs) Mutual funds are a way of investing money as a group. Mutual funds work by getting money from many investors and putting it into securities, equity shares, bonds, and other assets of companies that are publicly traded and make money. As was said, a mutual fund is a group of equity shares from different companies. Venture capital and private equity investment capital are two other options. But they are not good for traders who have never done this before. How Do I Begin Investing in Stocks? Investing money or wealth is a wise decision for anyone at any stage of their lives. Because of this, it should be done carefully and with a plan. When you invest money, your goal is to build up a second source of income and a large amount of money for your life that grows in value over time. Because of this, it is important to know the first steps of this hard but rewarding path. Figure out what kind of trader you are Tell me again, “What kind of trader am I?” “How much more risk can I take?” “How much money should I set aside?” This information can help you decide what kind of equity investments to make and, more importantly, help you figure out your long-term financial goals. Use technology to your benefit There are many ways to get financial advice now that technology has reached a good level of development in the financial industry. Machine learning is used by many advisory services to help their clients choose the best investments. Use this with other applications for financial planning to keep track of your monthly investments, costs, and other things. Your investment portfolios will be better off using AI and human input. Five basic rules to follow when investing in stocks Here are some basic steps that you should take when you invest in stocks: Have a goal and keep your mind on it This may sound like advice from a life coach, but it can also help with money. Without a plan, going straight into the stock market is like committing financial suicide and should be avoided at all costs. If this is your first investment, you should devise a plan based on your short and long-term financial goals. Once everything is in order, you can make an investment plan that fits your needs and goals. Investing also requires you to be responsible with your money in other ways, like saving money every month. So, remember to save your set amount each month and stick as much as possible to your spending limits. Keep a record of your investments Some investors might be OK with putting their money somewhere and then forgetting about it. But if you are a new investor, it is important to keep track of how your equity shares are doing. Depending on how the funds have performed, you should change and mix up your portfolio as needed. It’s also important to stay up to date on business news and plans so you can use them well. There’s no shame in asking a financial expert for help if you need to. Avoid herd mentality by not following “that advice” When it’s time to buy and sell, a new investor always wants to go the safe route, just like the other traders. You could even be tried for following what your friends or family tell you about popular stocks and funds. But it’s not smart to be a victim of this kind of thing because it could hurt your bank account. You need to do your homework and learn how the stock market works. Keep up with the daily sheets and the latest news, and don’t be afraid to ask a financial expert for help. Always try to grow your investments “Don’t put all your eggs in one basket” is good advice regarding investing. This is a hard rule to stick to because it’s human nature to keep putting money into stocks and mutual funds that have done well for you in the past. We do this because it has helped us in the past and to avoid danger. But the financial world is always changing, and something that was a good investment yesterday might not be today. So, looking for new and better ways to invest is important to keep the portfolio active and growing. Long-term thinking is the best strategy There are better ways to trade than just trying to make a lot of money. It’s easy to think that investing in stocks is a quick and easy way to make money, but if you want your money to grow for your career, long-term stocks are the way to go. Focusing on returns in 8–10 years allows your equity shares a better chance of earning bigger returns. Having a long-term perspective also keeps you from making quick decisions based on how stocks change. [B-02] Conclusion When you buy equity shares, you should follow the rules we’ve discussed above. Before you start your investment plan, you should learn about the challenges of the stock market. This makes it more likely that your money will get better. Your goals will grow if you put money into them correctly. To know more about equity investment, visit Piramal Finance and explore their products and services.

08-11-2023

Other

5 Smart Financial Steps Young Adults Should Take

A new year comes with many possibilities and the chance of a new start. Whether or not one’s goals were met in the past year, looking forward is always the first step toward a better future. If the last two years have taught us anything, it’s important to save money and be ready for whatever life throws at you. Building wealth takes time. According to scientific research, it takes a new habit about 66 days to become part of your daily routine. So, now is a good time to plan finance and build good money habits. Here are steps in financial planning you could take in 2025 to reach your goals. [B-01] 5 Smart Financial Steps for Young Adults Track Your Expenses Tracking your expenses is a good first step in financial planning. Know where and how much of your money is going. When you look at something from a different angle, it can help you understand it better. So, look at your income and expenses from a wider angle. Then, narrow your attention to how wisely you can spend your money. Keeping track of all your spending can take time and effort. Managing your expenses is the first step to plan finance better. You can keep an eye on all your transactions. You could better look at your spending history and decide how to spend your money. There has been a big shift toward digital spending in India in the past few years. So managing your expenses is one of the best pieces of financial advice. Start Investing There is no right or wrong time to start investing. You don’t have to be “The Big Bull” or “The Big Bear” to start investing in the stock market. Make several safe, low-stakes bets to get started. Systematic Investment Plans (SIPs) are a simple and effective technique that you should use. SIP has become a popular way to put money into mutual funds regularly. It is similar to a recurring deposit. So, it gives you freedom in your steps of the financial planning journey. After that, you can work on building a portfolio of different kinds of financial instruments. Look into low-risk mutual funds and always think about the long term. Fixed deposits, recurring deposits, provident funds, the national pension scheme, and other safe options are also good for people who don’t want to take as many risks. Also, remember another plan of finance, the power of compounding. This gives you a slow and steady income source. But keep in mind that market-linked financial programs cannot avoid risk. So, building a risk tolerance that fits our goals is important. Don’t let FOMO (fear of missing out) influence your investment decisions. Be sure to invest, but don’t invest just because you want to take advantage of it. As financial markets involve risks, you should always do your research and never depend only on the advice of others. Set Financial Goals Goals provide accountability. When did you last make a finance plan? If it has been a while, now is the best time. Think about what you want to do with your money in the coming year. Start a fund for emergencies or pay off your credit card debt. It’s okay if your goals differ from those of the other people in your life. Once you have written down your goals, you can figure out what steps you need to take to get there. If a goal seems too big, you can break it up into smaller tasks that are easier to do. This will make the goal as a whole easier to reach. Build an Emergency Fund No one knows when something bad will happen. It could be losing a job, getting sick, or fixing the house. These kinds of emergencies can make it hard to stick to your budget. An emergency fund can help in this situation. You should have an emergency fund with enough money to cover your living costs for at least six months. This will help you get through a short-term financial problem. Work on saving money for emergencies. At least 10% of your monthly income should go into a high-yield savings account that you can easily access in an emergency. You might have to cut back on spending or get a second job to put money in your emergency account. Tax Planning Tax planning is fundamental and essential financial advice. It helps to lower your tax bill. Don’t look for ways to save money on taxes only at the end of the year or when it’s time to file your taxes. Start making plans early, ideally at the start of a new fiscal year. There are many ways to lower your tax bill, such as investing in government programs to lower your taxable income. Another way is to plan your tax deductions ahead of time so that you can get a lower tax bill. Standard deductions include life insurance, health insurance, mutual funds, and house loan interest. Financial Advice for Your Better Financial Future Check out Your Credit Score It is one of the vital steps of financial planning. You need a good credit score to grow your assets and get good deals on loans and credit cards. Check your credit report from the three major credit bureaus once a year, and correct any errors right away. Know the Debt-to-Income Ratio Keeping track of how much money comes in and goes out is very important. This is the most important thing you can do to keep your money in good shape. The money that comes in is your salary, cash vouchers, bonus, rental income, investment returns, etc. The money that leaves your account is what you use to pay your bills and debts. Once you know how much debt you have compared to how much money you make, you can take the next step toward building wealth. Save Money for Retirement It’s always true that the earlier you start saving, the more money you’ll have when you retire. That’s how interest on interest works. When you regularly invest for retirement, your money grows steadily, which helps you be rich when you retire. [B-02] Wrapping Up Planning your finances is the first step to being financially secure. It’s vital to begin the journey by completing simple goals. You can get a good financial start if you know the basics. If you make smart money choices in your 20s, it can help you become financially successful. Using the tips above, you can work on getting a good credit score, getting out of debt, and saving money for retirement and other big events.

08-11-2023

Know More

5 Reasons to Buy Insurance Online

A few years ago, insurance firms in India began using the internet to sell insurance plans online. Because of this, brokers’ insurance can now be bought online with the help of a computer. In the past few years, the online insurance business has grown. Even though more people are buying insurance online, some people are still hesitant to do so. If you are one of them, you need to get back on track and start making plans as soon as possible. Let’s discuss the main reasons why it makes sense to buy insurance online. [B-01] What exactly is an insurance plan? A client’s insurance coverage is written down in a document that can be viewed online or printed. The policy gave some information, like the client’s name, the coverage details, how the payments would be split, and other similar facts. An insurance policy’s start and end dates are known as the insurance term. The insurance company will only pay for things that happen during this time. Upgrades can be made to the insurance to make the coverage last longer. What are the forms of insurance available in India? Insurance in India can be broken down into three main categories: Protection for life Life insurance is insurance for your life, just like the name says. You get life insurance so that your family won’t have to worry about money if you die too soon. Life insurance is very helpful if you are the main source of income for your family or if your family relies on your income a lot. Coverage for health People buy health insurance to cover the costs of emergency medical care. Different health insurance plans cover a wide range of illnesses and disorders. The cost of a health insurance policy usually covers the cost of treatment, hospital stays, and medications. Automobile insurance Vehicle insurance is something that every car owner needs to have today. This insurance protects you against car accidents you can’t plan for. Insurance to pay for school Early education insurance is like a life insurance policy set up specifically to help people save money. When your child turns 18 and is old enough to go to college and gets accepted, education insurance could be a good way to give them a lot of money. Homeowners’ insurance Everyone wants to own their own home. Home insurance can help pay for damage or loss to your home caused by things like fire or other natural disasters or risks. Other things, like fires and earthquakes, are also covered by home insurance. Why is it a good idea to buy insurance online? One of the best places to get insurance is online. You can buy insurance from the comfort of your home with just a few clicks. But buying insurance online is easier, more convenient, and cheaper than buying it in person. Read on to learn about the benefits of online insurance policies like health insurance, travel insurance, and vehicle insurance. The cost of insurance is going down One of the best things about online insurance in India is that it can save you money on prices. Buying online directly from an agent saves the insurance company money on administrative costs and broker fees. And the costs are much lower because everything is done online or without paper. These benefits may be passed on to you in the form of lower prices when you buy insurance online. Smarter choices are easier Regarding insurance, the internet can also help you find a key term. For example, insurance agents can tell you what similar company policies cover and how much they cost. Insurance companies list all the important parts of their policies on their websites, such as their features, restrictions, and terms. This lets you compare the pros and cons of different policies before choosing the one that fits your needs best. Ease of purchasing All other factors favour the easy one. With just a few clicks, you can get insurance online. This lets you buy from the comfort of your home or while on your way to another event. All you need to complete your insurance rules online is access to the internet. Automation of service Clients may deposit their bills using the insurance companies’ simple and friendly web portals. You could finish the whole process of buying in less than an hour. You can also get free estimates once a year, look at policy manuals, handle complaints, and track your investments. When getting insurance online, you don’t have to rely on anyone. Online insurance offers secure payments Any online insurance payment is safe since the provider does not keep the user’s payment data. Online insurance forms are checked carefully to ensure there are no weak spots. Your financial information is handled by payment processing, while the insurance company only pays the cost. This makes it less likely that an agent will forget to pay a bill you already paid. Can I buy insurance online safely? It is easy, quick, and cheap to buy insurance online. You no longer have to go to an insurance company’s office or meet with an agent to buy a policy. Now, you can get all insurance products and services online. All insurance companies in India only let customers buy policies online. When you compare online and offline insurance policies, you can find out more about your options and make a smart choice. Buying insurance online is a great idea because it has so many benefits. [B-02] Conclusion The insurance company’s customer service can help you choose the right coverage and avoid any problems. When you buy insurance online, you get exactly what you see online. This protects you without worrying about a claim being denied because of bad sales. The internet has made it much easier and clearer to buy things and services online. Aside from being easy to buy and having a clear way to sell, there are several important benefits to buying insurance online. You’ll save money on fees if you refinance, just like you did when you got your first loan through Piramal Finance. When you sign for a high-interest loan, worrying about these fees could hurt your finances. Don’t be surprised if these charges come up; there are several ways to deal with them.

08-11-2023

Personal Loan

5 Things to Know about Gold Loan Interest Rate Calculation

Have you ever thought about the best way to figure out the interest rate on a gold loan? Are there other ways to calculate the interest rate on your gold loan than the one you are using now? Before choosing an interest rate calculation method for a gold loan, you need to know what kind of calculation method it is. There are different ways to determine the interest rate on a gold loan, and each has its own formula. The five things below will help you understand how the interest rate on a gold loan is worked out. [B-01] Why is Gold Loan Interest Rate Important? When you get a gold loan, the lender will charge you interest on the amount you borrow. Repaying a loan, also known as making interest payments, is a burden on a borrower that he has to pay to keep from defaulting. But what if someone who took out the gold loan can’t pay the interest? Looking for the best gold loan with a reasonable interest rate is important; you can pay on time and increase your credit score. This means you should consider the interest on a gold loan before applying for one. 5 Important Things About Gold Loan Interest Calculation Here are the five most important things you need to know about your gold loan interest rate. How much money you make from a gold loan depends on how well you know how to figure out the interest rate. Here are the top five things to think about when calculating the interest rate on a gold loan: The Size of the Loan: When calculating the interest rate for a gold loan, the loan amount is one of the most important things to think about. In a strict sense, the loan amount determines the amount of gold collateral needed and the interest rate. Interest rates change based on the length of the loan, with higher rates for larger loan amounts. The Type of Interest Rate: Most people who borrow money wrongly think that only one type of interest rate stays the same each month. Different lenders may charge different interest rates on gold loans. Borrowers can use many types of interest, such as compound interest (interest on interest), jumping interest (interest that goes up every month), EMI (interest on a certain percentage of the principle), and punitive interest (interest that goes up if you don’t pay on time) (charged if you have not closed your loan account after maturity). This is why it is important to know what kind of interest is being shown. The Loan Tenure: The loan term is very important in calculating a gold loan’s interest rate. The time you have to make monthly payments depends on the loan’s term. When everything else stays the same, the longer the loan term, the lower the interest rate on a gold loan will be. So, when calculating the interest rate for a gold loan, it’s important to think about how long the loan will be. The Legal Entity: Interest rates on gold loans are heavily influenced by the fees charged by the lending institution. For example, interest rates on gold loans are often higher if the company taking out the loan has to pay extra fees. In contrast to NBFCs, banks often charge a 1%–2% processing or valuation fee. So, the gold loan interest rate is calculated by calculating all the charges. Loan Calculators: Interest rates on gold loans are hard to calculate, but loan calculators may help. Borrowers can use online loan calculators to figure out how much interest they will have to pay based on several factors, such as the size of their loan, the current price of gold, and how long it will take to pay back the loan. If you already know these numbers, you can use a loan calculator to calculate the interest rate on the gold loan. What Affects the Gold Loan Interest Rate Calculation? Market Price of Gold If the price of gold is high, you can expect your gold jewelry or coins to be worth a lot. The interest rate will be lower for a loan secured by gold ornaments because the lender is taking less risk. If you don’t pay your EMIs, the lender can easily get the rest of the money by selling or auctioning off the ornaments. Inflation When inflation is high, people save gold because its value goes up while the currency’s value decreases. Gold could be a hedge against inflation that lasts for a long time. Because of this, the price of gold goes up, and if you want to get the best gold loan at that time, you can talk to your lender about better terms. Relationship with the Bank Most gold loans are only available to existing customers. However, some banks will also lend to people who never had an account. But people who go to the same bank or credit union often have more power to negotiate interest rates. How Can You Get a Gold Loan? Step 1: You can get a gold loan either online or offline. To apply online, go to the lender’s website and click on the loan product you want to apply for, which would be “Gold Loan.” Next, you must click “Apply Now” if the website has this option. After this, you will have to complete the online application form with the necessary information and submit it online. Step 2: If you can’t apply for the loan on the lender’s website, you’ll have to go to the nearest branch. Many lenders have a link on their website that lets customers find the closest branch. Make sure you have a copy of the necessary documents at all times. Step 3: The lender will check your application after you send it in. The loan amount will be sent to you if your application is accepted. Step 4: Getting a gold loan is a quick and easy way to get money in an emergency. Make sure you do your research and get a gold loan that fits your needs and your ability to pay it back. [B-02] Wrapping Up We hope you enjoyed the list of things to know about gold loan interest rate calculation and that it has helped make the process a bit clearer for you. As we said at the beginning, this is an area where there’s always more to learn; however, understanding how interest rates are calculated is a good place to start. To learn more about this topic, visit Piramal Finance. And if you have any thoughts about gold loans or interest rate calculation, let us know in the comment section!

08-11-2023

Personal Loan

5 Times a Personal Loan Can Help You Out in Emergencies

In times of trouble, an emergency personal loan could save your life. Many a time, a family needs fast personal loans to get through hard times. Borrowers often ask for small loans to pay for things like vacations or holiday spending, but an emergency personal loan can also serve as a loan to face unforeseen situations. You don’t have to worry about putting up collateral to get money because these loans have to be safer. The application and approval process for this emergency personal loan is also easier, and you should check personal loan eligibility. You can get loans from top lenders in less than a day to take care of the problem immediately. With this money, paying for urgent medical needs, home repairs, school costs, and other costs should be easy. [B-01] Why Do You Want an Emergency Personal Loan? In today’s fast-paced society, financial crises can happen at any time. If you had a little more money, it would help you get by, whether for a health problem, a car repair, or a last-minute plane ticket. This is where quick emergency personal loans can help. They are a quick and easy way to get money when you need it. Most lenders will approve your loan within a day, and you can spend the money on anything you want. How to Get an Emergency Personal Loan? Once you’ve decided what kind of loan you need, you can look for banks or online lending apps. Online emergency personal loan applications make it simple to obtain references. It would help if you looked for loan applications with low-interest rates and flexible ways to pay them back. If you find one that fits your needs, you must fill out the loan request and sign up. The loan will be given immediately if you meet all the requirements. Personal loans are a quick and easy way to get money without putting up collateral or going to a lender or bank to get it. Check Personal Loan Eligibility for Emergencies Candidates must be either salaried or self-employed. The person must be at least 21 years old at the time of the application. At the time of maturity, the applicant must not be older than 60 years old. People who work for private companies or government agencies People with credit scores of 750 or higher have a better chance of getting low-interest personal loans for emergencies. Documents Required for Personal Loan in Emergencies Identification Documents (PAN card, voter ID, Aadhar card, passport, driving license) Address verification (passport, Aadhar card, telephone bill, electricity bill, driving license, PAN card, voter ID) Income slip for the last three months Form no. 16 ITR with earnings calculations for the last two years In What Ways Might a Quick Personal Loan Assist You in an Emergency? You Can Receive the Funds You Want Instantly It might be easy to apply for a personal loan right away. They can be found at banks, non-banking financial institutions, online lenders, and lending apps. This gives you a wide range of lenders to choose from. So you can get your loan while still living in your home. Most quick emergency personal loans are managed within a day. You can often get the money you need within hours if it’s approved. This is perfect if you have an urgent bill that needs to be paid immediately. With fast personal loans, you can also borrow different amounts of money. So, you can make up the difference in cash with just one loan. You Do Not Need Security A secured loan is one where the borrower puts up collateral, like a house or a car, to back up the loan. The lender can only take your property if you pay back your loan. A loan that is not secured does not need collateral. You don’t have to put up anything as security for a quick personal loan. You can get a loan immediately without worrying about putting your house or car at risk. You Do Not Need a Perfect Credit Score One benefit of a quick personal loan is that the requirements to get one are less strict than those for a secured personal loan. This means you can still get the money you want even if your credit isn’t great. If you need an emergency personal loan and have bad credit, you can find a lender to help you. You May Get a Fast Loan for Any Reason A fast emergency personal loan is also helpful because it can be used for anything. This is great if you need money quickly to pay a bill. There are no rules about how you can use the money you borrow. So, if you need the money for an emergency or to pay off your debts, you can spend it however you want. You May Be Benefited from a Variable Payback Period One of the best things about a quick emergency personal loan is that you can pay it back over a longer period of time. The emergency personal loan gives you the money you need to pay back the loan at your own pace. It allows you to choose a payback time that fits your needs and budget. You can pay back the loan in easy-to-manage installments that won’t stress you out or cause you to be late. [B-02] Conclusion Emergency personal loans are one of the best ways to cover short-term financial needs. You can easily check online to see if you meet the requirements for a personal loan. You can get the cash with little paperwork in a few days, which is important in an emergency. When you need money, you must act quickly before getting a loan. When time is short, the only thing that can help is an emergency personal loan. Transferring your existing home loan debt to Piramal Finance will allow you to take advantage of several benefits. It includes a competitive interest rate, a longer loan term, and round-the-clock customer service.

08-11-2023

Home Loan

Advantages And Disadvantages of Home Renovation Loans You Need To Know

A home renovation loan is one that’s secured by your home. This is often known as a home equity debt or a secondary mortgage. The perks of this form of loan include the ability to get a larger loan sum at a fixed rate of interest and have 10-15 years to repay it. A key perk of using this form of financing for home upgrades is that interest is very often tax-free. The main downside is that if you fall behind on your payments, the bank may seize your house. The age, condition, area, and size of the land, as well as your credit rating, all affect whether or not you qualify for this sort of credit, how much you qualify for, as well as the interest rate. In addition, the rules of your loan may exclude you from renting out your house. [B-01] Criteria for Home Renovation Loan Eligibility If you are looking for a home seating loan or even a loan to do any other sort of repair work, you must meet precise needs to be granted a loan. These are as follows: The minimum age must be 18 years old, and the upper age limit must be 65 years old. You must be a native Indian or a non-resident Indian. You must be a salaried or self-employed person. You must have a fixed rental property where you have resided for at least a year previous to applying for the loan. A solid credit score is needed. This must be 700 or above. The Benefits of a Home Renovation Loan Let’s start with the superb things. Let’s go over a few of the benefits of updating your house with a house renovation loan. Increases The Value of Your House One of the key reasons many opt to remodel is to boost the worth of their house. If done correctly, updating may be a great method to raise the value of your home. This means more cash in your pocket when it’s time to sell. Kitchens and restrooms are the most typical remodel targets. Less Costly Than Purchasing a New House Maybe you’re tired of your bathroom faucet always leaking. Or, you despise that ugly carpet. When all the costs of purchasing and selling a house are included, updating often ends up being good for the budget. Personalisation When you remodel, you may make changes that are specific to your tastes. Do you, for example, like the aesthetic of a feature wall? You may use whatever colour you want and place it wherever you like. If you like lengthy showers, you might think about building a low-cost rainwater shower. You can add to or modify anything in your house; the choices are almost endless. Room to Grow You may expand your house to fit a growing family or a new lifestyle if desired. It is solely up to you whether you install an extra bathroom at the rear of the home or pull down a wall to make more space. Makeover/Update the Look of Your Home Finally, updating your house enables you to make changes to your daily life. Whether adding solar panels on your roof to reduce energy expenses or installing a new cooktop that isn’t from the 1970s, you can make your house more trendy and sleek without having to relocate. The Drawbacks of a House Renovation Loan Aside from the perks of a home renovation loan, there are certain drawbacks to ponder before drafting blueprints and breaking down walls. Overcapitalising Renovations are expensive, and among the most typical errors is overcapitalisation. As said before, when done correctly, updating may boost the value of your property. If this is not taken into account, you may wind up spending cash on a repair that will not boost the worth of your property. For instance, if you spend Rs. 50,000 on a modern kitchen but it only adds Rs. 20,000 in value, you have overcapitalised. You May Need Help to Get Your Cash Back Overcapitalisation costs money. Also, if you build special upgrades for yourself and your lifestyle, this may be unappealing to sellers. For instance, if you coloured a bright green accent wall may put off potential owners or be seen as a flaw. Renting While Undergoing Renovations If you’re making major structural repairs to your house that will render it unlivable for an extended time, you may need to rent another place while the work is being done. This may be pricey since you must not only pay your debt and fund your recovery project but you must also cover your rent. How to Pick a Home Renovation Loan Here’s a summary of how to obtain the greatest deal for your budget. Find the best match for your needs by evaluating choices for a home renovation loan. Examine Your Credit Score When asking for any loan, keep in mind that your credit score is vital in securing the lowest rate of interest. Consider taking actions to boost your credit score if you have the time, such as paying off credit card debt and making all on-time payments. Calculate the Total Cost of Your Task What are your labour costs going to be? What about resources? Will you need to find other housing while the work is in progress? Create a detailed budget. That amount will assist you in determining which loan is ideal for you, as well as estimating your monthly payments. Compare Prices Look over payment terms and costs from a few distinct banks. You need to do this whenever you make a major financial choice. Rates and fees differ from one bank to the next. So, do your homework to ensure you receive the best offer. The only thing finer than remodelling your house is remodelling it while knowing you’re receiving a fantastic bargain on your loan. [B-02] Conclusion As interest rates are low, now is a wonderful time to seek a home renovation loan. It’s also critical to have a real concept of project expenses. So, you can get the correct form of financing with the best interest rate and payment terms. If you want to learn more about home renovation loans, visit Piramal Finance and explore their products and services.

08-11-2023

Cards

7 Warning Signs of Wrong Credit Card Usage

It’s smart to pay with a credit card when you buy something. With error-free credit card usage, you can get points for every rupee you spend. You can also get offers for cash back or free trips. But it only makes sense to use a credit card if you know how to do it responsibly. On the one hand, if you know how to use credit cards well, they can help you save money. But you must also pay your dues on time to get the most out of the benefits. On the other hand, if you don’t pay them back on time, they can become your worst enemy. It can hurt your credit and put you in debt. A credit card can be hard to handle for a lot of people. It happens when the urge to spend too much is too strong. How do you know if you’re one of them? Keep an eye out for these four warning signs that your credit card usage may be out of control. [B-01] 7 Warning Signs of Wrong Credit Card Usage Careless credit card usage may have a long-lasting negative effect on your financial health. Seven warning signs that suggest improper credit usage are listed below: Paying Only The Minimum Due Amount Each Time Many people who use credit cards think that if they pay the minimum payment due, they won’t have to pay the high finance charges. Only if you paid the minimum amount due could you avoid late fees and a drop in your credit score. High finance charges of up to 23%–52% per year will still apply to the unpaid portion of a credit card bill. The interest-free period for new card purchases lasts until the amount is paid off. If you can’t pay off your whole credit card balance at once, split it up into EMIs. The interest rate on converting an EMI is much lower than on late payments. With this option, people with overdue credit card bills can pay them off at much lower interest rates. Depending on their ability to pay back the debt, it can happen in smaller chunks. The terms for paying back the loan range from three months to five years. Choosing this path also brings back the benefit of the interest-free period for credit cards. Exceeding The Credit Utilisation Ratio (CUR) by Over 30% CUR is how much of your total credit limit you’ve used. If your CUR exceeds 30%, your credit score could go down. Most lenders think that people with a CUR of over 30% are looking for credit. So, ensure you don’t use more than 30% of your credit card usage limit. If you often exceed this limit, ask the credit card company to raise it or move it to another card. If you don’t do either of these things after getting a higher credit limit, you may be able to lower your CUR. For better financial health in the future, it’s best to stick to this reasonable CUR limit. Disregarding the Expiration of Reward Points Card issuers get more people to sign up for their cards by giving them reward points. Some credit cards let you use the reward points you’ve earned to pay the balance. Others give access to services and goods that have already been chosen. These can be things like gift cards, coupons for travel, or merchandise. You shouldn’t lose the benefits of the reward points you’ve earned for better credit card usage. Most of the time, these reward points are good for two to three years. Take advantage of the chances to use them! ATM Cash Withdrawals Made With Credit Cards A cash withdrawal fee of up to 3.5% of the withdrawal amount may be assessed for credit card usage. Also, card issuers charge finance fees of about 52% p.a. from the day of the withdrawal until the day of the payment. Try to limit the number of times you use your credit card to get cash. If you have to, pay back the amount you withdrew as soon as possible. It would cut down on the fees used to pay for extra interest costs. So, you have to be careful when using ATMs to get cash out. Unplanned Spending As Per The Interest-Free Period The time between when you buy something with your credit card and when you have to pay for it is called the “interest-free period.” The average length of this time is between 18 and 55 days. As long as the debt is paid on time, you won’t have to pay interest on credit card purchases made during this time. This is called a finance charge. Ignoring a Credit Limit Increase Offer Many credit card users frequently refrain from raising their credit card usage limits. This is because they are worried about spending too much and getting into too much debt. But keep in mind that if you use money wisely, it can help your finances. So, if the company that gave you the card offers to raise your credit limit, you should consider it. You’ll be better able to handle money problems and spend more when you need to. Remember that if your credit limit goes up, your CUR will go down. It makes your credit score better. And because of that, your chances of getting loans and credit cards in the future increase. Utilising Several Credit Cards At Once People often try to carry more than one credit card. They want to take advantage of the deals that different stores offer for credit cards. But it can be hard to keep track of more than one card. When people have a lot of credit cards, they have to pay more attention to the different due dates. These deadlines could cause unintentionally missed payments and make credit card usage inconvenient. [B-02] Conclusion It is imperative to avoid these typical credit card mistakes. You shouldn’t open a new credit line if you want to keep your finances stable. Remember to check for these mistakes. This is especially true if you have a big debt or a high-interest rate that you need to pay off. It’s also important to keep your credit score in good shape. To know more about credit card usage and other financial tips, visit the Piramal Finance website. You can also look at the various products and services they offer.

08-11-2023