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Education

3 Reasons Why You Should Invest in the Best Large-Cap Mutual Funds

Money management is important for a secure future. Planning for your financial future is important. This is because it may help you learn how to handle your finances better. Managing money and making a plan for it should go hand in hand. At the end of the month, many young people can’t pay their bills on their own and have to depend on others. People should start setting aside a small amount of their monthly salary to save and invest. More money will be needed in the future than right now. Many people think that saving is enough, but you may need to invest money soon if you want to beat inflation. Mutual funds may be a good option if you want to add some stability to your investment portfolio. Large-cap mutual funds are the preferred choice for people due to their stability and high returns. Let’s learn more about them in this blog. [B-01] What is a large-cap mutual fund? Investing in companies with a large market capitalisation is the primary focus of a large-cap mutual fund. Large-cap mutual funds are a great place to start for anyone interested in investing in mutual funds for the first time. In the long run, these investments give great returns to investors. Market capitalization is what the “cap” in large-cap funds stands for. An increasing number of investors prefer these funds because of their consistent and long-term track record of profit creation. How Do The Best Large-Cap Mutual Funds Work? Large-cap funds give a huge portion of their assets to companies with high market values. Companies with a large market capitalization are likely to have a long history of success. They also have high-quality management and solid corporate governance standards. These companies consistently rank among the market’s most closely watched. They have slowly and steadily made money for their investors over a long time. The criteria for classifying companies as big, small, or mid-cap have changed due to recent re-categorization by SEBI. Large-cap firms rank in the benchmark’s top 100. These funds are safer than small- and mid-cap funds. Large-cap fund investors may benefit from taking a patient, long-term view of their holdings. The Top 3 Reasons to Invest in the Best Large-Cap Mutual Funds If you’re considering putting money into mutual funds, large caps may be worth looking into for the following reasons: Stability Most of the time, investing in companies with a large market capitalization is safe. Large-cap companies don’t usually go bankrupt unless there are major problems. The best large-cap mutual funds offer stability and growth. Also, big companies usually make regular dividend payments worth a lot. These payments help your portfolio slowly grow in value. The best large-cap mutual funds are stable both when the market is going up and when it is going down. So, it’s a pretty safe investment that can last through a recession. It can also recover quickly without hurting its future potential. Better Valuation of Assets Large-cap mutual funds usually put their money into well-known, long-standing companies. There is a good chance of making money because these companies do well and make money consistently. The stock prices of large companies tend to stay pretty steady. That’s why investors who want a steady return on their money are interested in them. Extra Liquidity The best large-cap mutual funds have a lot of cash, which is important in a volatile market. Investors can easily sell everything they own quickly if they need to wait out a market crash. Fund managers can easily buy and sell stocks, which helps them make the most money possible. Large-cap stock prices and a large-cap fund’s net asset value (NAV) don’t change much when the market is volatile. Tips for Smarter Investing in the Best Large-Cap Mutual Funds Risk When mutual funds buy shares of big companies, they take on some market risk. Because these funds are so reliable, you should make them central to your investment strategy. To do better than the market when it’s going up means to do worse when it’s going down. Returns The best large-cap mutual funds have a history of staying steady when the market goes up and down. So, you don’t have to worry about their efficiency changing too much. Investing in these funds is appealing because their returns are less likely to go through a lot of change. Don’t be surprised if these funds don’t make a lot of money, even when the industry is doing well. Prospects Large-cap mutual funds might be a good choice for investors with a long-term view. The fund underperforms during weak markets, but investors should expect 10–12% returns over the next 6–7 years. People who invest in these funds should be willing to stay with the company for at least a minimum amount of time, like 3–4 years. Financial Goals Large-cap mutual funds are the best choice for investors willing to take on moderate risk. These funds provide stable returns. And the fund’s value can’t go down. You can use these tools to save and invest for your future, especially your retirement. People who are just starting and want some of the benefits of the stock market without the risks can use these funds to get their feet wet. Due to their low maintenance costs and favourable tax treatment, they are good for investors. [B-02] Conclusion Large-cap mutual funds are great for investors who want to get the most out of their equity investments. These mutual funds are a good choice if you want a fund with stable returns over the long term. The funds aren’t immune to market losses. But they are less sensitive than average. Investing in the best large-cap mutual funds is also a good way to enhance your portfolio. You’ll have to consider your immediate financial needs and long-term goals to get the most out of your money. You can invest in the best large-cap mutual funds after finding out how much they cost and how well they have done in the past. Check out Piramal Finance for similar blogs about the best large-cap mutual funds. You can also take a look at the services and products they offer.

08-11-2023

Education

5 Financially Smart Ways to Use Your Diwali Bonus

It’s that time of the year once again! With the arrival of Diwali, the festival of lights comes the anticipated and well-earned Diwali bonus. Bonuses make you happy; they give you the power to enrich your lifestyle. This one-time-per-year windfall is the focal point of many plans. Some prefer to spend the full sum, while others save it for a rainy day. Your Diwali bonus can help your long-term financial health and shed light on your future if you have the right financial plan to invest in. A financial plan is a detailed outline of your financial objectives and the actions you must take to reach them. To make sure that a financial plan is definite and definitive, it is often documented in tangible papers. [B-01] What Is a Financial Plan? A financial plan outlines your steps to reach your financial goals while identifying, ordering, and selecting your financial objectives. They also assist you in figuring out if you need to cut down on your spending or whether you’re on track to meet your financial goals. These plans might be about getting rid of debt, opening trading or bank accounts, starting to save regularly, or making an investment plan. Financial plans might include years, months, or even decades, depending on the length of your goals. But by taking a few little steps, like setting a monthly savings goal or investing part of your salary, your financial plan may lead to far better future planning. Financial plans are often flexible, allowing for unforeseen events or future life changes. This may include major life events like a long hospital stay, a wedding, the birth of a child, a move, a new job, and others. Five Smart Methods to Spend the Diwali Bonus Money Budget your money Giving presents to your loved ones is a lovely experience, but if it is regulated, it may avoid financial strain. Give them a budget and a list of the gifts and purchases you want to make for Diwali. Making a plan in advance can increase your chances of avoiding impulsive expenditures. Diwali “sales” should be avoided since pricing may be cut after inflating certain things. Finally, when making purchases for yourself, put your needs ahead of your wants. Protect yourself by getting life insurance The notion that there is always light at the end of the tunnel is one of the main themes of Diwali. Yet, we must be ready in advance if we want to get a glimpse of that light. Given the risks associated with leading a high-risk life, purchasing life insurance is crucial to ensuring that we can always care for the people we love. Life insurance is thus among the finest purchases you can make with your Diwali bonus. Many people are now aware of the need for comprehensive medical insurance due to the COVID pandemic outbreak. Some people choose not to get health insurance because of the high costs, while others eschew it in favour of more expensive but more complete family floater health plans. A top-up or mega-top health plan might provide extra coverage in this case. The correct level of insurance coverage is needed to meet your family’s demands. Make sure to examine the cover amount and consider the layer of safety it provides. It’s necessary to check your insurance coverage after getting a bonus and, if required, raise your coverage. Enhance your wealth Make more cash savings with your Diwali bonus. Investment options include mutual funds, public provident funds, tax-advantaged savings accounts, and gold. You may diversify your portfolio by choosing a lot of different investing strategies. The Diwali bonus’s finest quality is that it provides you with more funds on top of your wage and may aid in maintaining your future financial stability. Repay Loans You have the potential to lessen your debt load with every bulk payout. Utilise your Diwali bonus to pay off any bills you may have. The less debt you have, whether for a vehicle, a property, or a remodelling loan, the better. If you have numerous loans, focus on paying off the debts with the highest interest rates. By lowering your debt load, you’ll be able to enjoy more of your income and spread enjoyment throughout your life. Establish a reserve fund An emergency fund might be used as a last resort if all other means of payment have failed to cover an extra cost. Your Diwali bonus allows you to start building an emergency fund. No matter how exciting it may be to spend money on new apparel, tech, or house upgrades, none of these items will be able to keep you safe in an emergency. The pandemic has also shown us the unpredictability of life. Given the uncertain economic situation, creating an emergency fund to help you deal with a tragedy is only sensible. Both were having fun, and managing your Diwali bonus is important. Don’t forget to uphold the Diwali spirit by gifting yourself and those you love something that would please them. The wiser course of action is always to be an informed shopper, whether or not it is Diwali. [B-02] Conclusion Remember that how you use your Diwali bonus is more important than its size. Using your bonus financial plans will make you happy and help your long-term economic growth. On Diwali, spend your money to improve your financial future and realise your aspirations and objectives. Make the proper choices to reveal your long-term financial stability. After the Diwali holiday, people may spend the funds to get the most significant profits. While some workers indulge in excessive spending, others make other investments. Piramal Finance may be used to find out more. To learn more about financial plans, visit the website of Piramal Finance.

08-11-2023

Personal Loan

Personal Loan Part Pre-Payment Calculator

Banks and other financial institutions often use calculators to figure out exact amounts. The loan calculators were made so that they could take in a wide range of information, such as the length of the loan, the interest rate, the principal, and the total amount. It figures out the monthly payment or the balance due to help the consumer. Almost all legal loan providers use the payback and Part Prepayment Calculator to ensure their borrowers have all the necessary information. Put the interest payment away and move quickly through life without worrying. “Prepayment” means paying down the principal of a personal loan before the end of the loan’s term. Any amount of principal can be paid, from a small amount to the full amount. The Piramal personal loan prepayment calculator can help you figure out your EMI, the interest rate for prepayment, and other important details. [B-01] What is ‘part payment’? When people take out loans, they usually agree to pay back the full amount plus the interest rate. With standard ways to pay back mortgages, customers only pay back the interest they owe, not the borrowed amount. So, they have an extra option: they can use the money they put away to pay the rest. But not all clients have the money or property needed to make this change. Because of this, only a few buyers think this is a good option. Part-payment is a great option for anyone with a loan or mortgage who needs to pay it back. In this case, the interest and mortgage payments are split into two different monthly payments. You can put the parts in any order you want. You might save more for the interest and less for paying off the loan. Even though they pay at least some of the loan back, this doesn’t mean that the whole amount will be paid off at the end of the term. How Do Personal Loan Prepayment Calculators Work? Calculators for the monthly interest on personal loans that let you pay off the loan early are essential tools for staying on top of any changes that may occur to the EMI. To use the calculator for a prepaid personal loan, you must enter the amount you wish to borrow, the length of time you wish the loan to be, and the interest rates. You can do the following things with a personal loan prepayment calculator: Make quick calculations which help pay off your debts. Using a prepayment calculator you can decide when and how to prepay your loan. By saving money and then making a prepayment on the loan’s principal, you can avoid debt and live a less stressful life. When you pay off a personal loan early, you also get a lower EMI rate because you don’t have to pay as much of the principal. Choose lower EMI plans easily. On a personal loan, you don’t have to pay it off all at once. You can pay back a loan in full or in part. Even if you don’t save any money on interest, the total amount of debt you have to pay off will be much less. When you pay off a debt early, the amount of principal you still owe on the loan goes down. Because of this, the EMIs will be less expensive than the current interest rate. Figure out how to repay personal loans in parts. You can also pay off a portion of your loan balance early. You might not be able to save money on interest, but you’ll have much less debt overall. If you pay off part of your loan early, you will have to pay back less of the principal. Because of this, the EMIs will be less expensive than the current interest rate. Reduce the amount of interest you pay. You must have enough money to pay off the full loan at the start of your term. Banks and other financial institutions often use a one-year lock-in Banks, and other financial institutions use a one-year lock-in. It says you have a year to pay back all or part of the debt. But after a year, you can pay off the remaining loan balance and save money. Personal Loan Prepayment Conditions Before you decide to pay off your personal loan early, think about the following: Fiscal Benefits Section 80C of the Income Tax Act lets people get a tax break of up to Rs. 1.5 lakh per year. But if you pay everything up front, you won’t get a tax break. But if you only pay part of the loan early, the tax benefits will be much smaller. What it costs to borrow money The interest rates on mortgages are less than those on personal loans. So, you should pay off the principal of your personal loan first. Use a personal loan prepayment calculator to determine how much interest you will pay if you pay off all or part of your loan early. The best time of year If you pay off a personal loan early, you’ll pay less interest in the long run. Personal loan prepayment calculators are easy-to-use tools that show how much interest you’ll pay if you pay off your loan early. In the first few years, though, the interest rate on your loan will be higher. So, you must pay off the debt as soon as possible. Also, you won’t be able to get some benefits if you pay the money now instead of later. [B-02] Conclusion Suppose you currently have a personal loan and are making payments. In that case, you can use the prepayment calculator to determine how much money you will save by paying off the loan earlier than originally scheduled. You will need to be aware of the total amount that is still owed on your loan, the total amount that has previously been paid in EMIs, the total amount that can be paid off early, the interest rate, and the length of your loan. Calculating how much you could save using a personal loan EMI calculator that allows you to pay off the loan early is one way to get an idea of how much money you could put away. The Piramal Part Pre-Payment Calculator is available to everyone with a valid company account. To determine the EMI and remaining loan period after prepaying a given portion of a loan, customers can use the Piramal Part Pre-Payment Calculator at any time. For more such articles, visit us at Piramal Finance.

08-11-2023

Personal Loan

What Are the Advantages of Applying for a Personal Loan Online?

As the cost of living continues to rise, more people are looking for alternatives or ways to make extra money. One of the alternatives that individuals are turning to is personal loans. Personal loans can be a great option for individuals who are struggling to have enough money and want additional finances. It is an easy, quick way to borrow money with relatively low interest rates. This article covers the advantages of applying for a loan online and the various types of personal loans available. With so many benefits, it is no wonder that millions of people use online personal loans to fund their financial needs. Applying for a personal loan online is easy, quick, and convenient. It is often cheaper than getting a personal loan in person because there are no miscellaneous fees, like application or processing fees, to pay. And unlike getting a personal loan from a bank, most of the time you will not have to work with an agent. Applying for personal loans online is not hard, and you should not have any trouble finding the right loan for your situation. [B-01] Application Process You can apply for a personal loan online in several ways. The most common way is to visit a website offering this service. Just follow the directions on the website to complete the application. When you finish, you will be able to see what your interest rate is and how much money you qualify for. If there are no additional requirements, your funds will be available quickly, so you can start using them. Advantages The following are the advantages of applying for a personal loan online: 1. Convenience Applying for a personal loan online allows you to complete the process in the comfort of your home. It is a convenient option for individuals who don’t have time to go to a bank or look for other lenders. By applying online, you can save both time and money by avoiding miscellaneous fees. When applying for a personal loan in person, you will be required to provide various documents, such as proof of income, credit reports, and even an application fee. The amount of paperwork involved can make it difficult to apply at times, so it is easier and more efficient if you are able to do it all from home. 2. Trust There are no agents or brokers involved in applying for a personal loan online. This means that lenders will not have to worry about scammers trying to take advantage of them by demanding extra money or payments. When you apply for a personal loan in person, you will be required to meet with an agent who could potentially solicit you for additional fees and services. Lenders ask for these extra fees because of the possibility of fraud, which makes it more difficult for individuals to get a personal loan when they are usually looking for one form of financial help. 3. Easy loan processes with minimum documentation When applying for a personal loan online, the lender will not require you to provide several types of documentation. The personal loan application process will require only proof of income and an easy-to-understand explanation of the amount you need to borrow. The application process can be fast without involving additional paperwork or the delays that occur when applying for a loan in person. 4. 24*7 service and easy tracking When applying for a personal loan online, you will be able to track the loan process 24 hours a day. This is because you will often be able to access the accounts and register any changes that occur in your financial situation. The loan process can also be completed quickly and easily when you have access to an online account as well. With these advantages, it is easy to see why many people choose this type of option over other traditional lenders. It can also be easier for individuals who are looking for additional finances because they will not have to go through the hassle of dealing with agents in person. 5. Quick approval Applying for a personal loan online is easy and fast because there is no hassle like getting rejected by an agent or banker. Instant approval means that once you submit your application, there will be no delays in receiving the funds, which can be hard to come by considering the number of people who are looking to find extra capital. The process of applying for a personal loan online is convenient and easy, and you will not be disappointed by the results. 6. Monthly instalments are fixed at a very low amount When you apply for a personal loan online, the lender will be more likely to give you a fixed rate. Unlike other options, the monthly payments that you have to make will be easy and convenient. You can easily manage your finances without worrying about irregular and unpredictable costs. The interest rates for personal loans are often higher than other types of personal loans. This is because lenders are taking additional precautions to prevent fraud from happening. With that being said, the interest rate can still be much lower if you have a good credit score and a stable income. [B-02] Summing Up If you are looking for extra funds or are looking to start a new business, then a personal loan can be the answer to your financial problems. If the amount of money that you need is not very high, then applying for a low-interest personal loan is a great option because of the lower rate and fixed monthly payments. You can consider consulting an institution like Piramal Finance for more details about personal loans. With all of the loan facilities and tools available, you will be able to find the right one that suits your needs. The ease of applying for a personal loan online with Piramal Finance makes it not only an efficient option but also the provider of the best personal loan in India.

08-11-2023

Personal Loan

Personal Loans For Low-income Individuals

Any established financial house provides an option for a personal loan, that persons can avail of. The eligibility depends on several factors including disposable income, employment status, etc. that will be discussed in this article in detail. However, the chief determining factor is the borrower’s capacity to pay the monthly EMIs. Hence, availing of personal loans for low-income may seem to be challenging. But if an individual meets the minimum requirements set by the bank, they can successfully borrow money from any financial establishment. This part of the article will discuss, in detail, what makes a person eligible for low salary personal loan. One has to keep in mind a person’s employment status is a top priority when processing a loan. If they have a high salary, the loan amount they can borrow is proportionately higher. [B-01] There is a lot of emphasis on their ability to repay the loan. So, even if a person comes from a low-income background, they need to have a stable source of income. They can be government, MNCs, private, or a public sector employee. Here are some other primary conditions one has to fulfil while applying for a personal loan for low-income earners. Eligibility criteria for a Low-Salary Personal Loan The nationality of the borrower should be Indian. Their age must be between 21-60 years. Work experience of one year is necessary (six months of mandatory work at the current organisation). The minimum credit score requirement is between 720-750. Hence, one has to pay off any dues on time to maintain a good credit score. Can Self-employed People apply for Low-salary Personal Loans? Self-employed persons can take a personal loan once they meet the bank’s minimum income criteria. The said amount varies from city to city. The rest of the requirement is the same as employed people. The bank may also require the person to produce financial documents as proof of steady income. What are the documents required to apply for a Low-salary Personal Loan? The necessary documents to apply for a personal loan for low-income individuals are as follows: Personal loan application form, with the necessary details filled in. Identity and age proof. A person can use their KYC documents (PAN Card, Aadhar Card, Voter ID Card, passport, or driving license.) to prove the same. Address proof. The mentioned KYC documents, plus the electricity/utility bill, can serve as address proof. For employed persons – latest salary slips, along with form 16. And for self-employed persons – their Income Tax returns. Additionally, self-employed persons need to submit their latest bank account statements. Recent passport-sized photographs. Signature proof. List of Financial Houses that provide Personal Loans for Low-income Individuals: State Bank of India (SBI Express Credit Personal Loan Plan) This scheme allows persons with an income of fifteen thousand rupees to apply for a personal loan. The maximum loan amount is twenty lakh rupees under this scheme. To apply for this loan, the person has to have a salary account at any State Bank branch. Borrowers can only apply for a second loan after a gap of one year. They can borrow only after the repayment of the first loan. HDFC Bank Personal Loan This scheme allows a person with a net income of twenty-five thousand to apply for a loan. It comes with a lucrative interest rate. The eligible applicants must be at least 21 years of age. They must also have two years of work experience. IDBI Bank Personal Loan People with a monthly income of fifteen thousand rupees can avail of this loan. Applicants need to hold a corporate salary account at the said bank. As with other banks, applicants need to be more than 21 years to apply for this loan. Current borrowers can apply for a second top-up plan. What are the conditions one needs to keep in mind before applying for a Personal Loan for Low-income Persons? Most private banks offer an interest rate of 10.25% and a payment window of 12 to 60 months. Before applying for a loan, a person always needs to consider the interest rate. Whether or not they can afford it. There are several other charges involved, apart from interest. For instance, bank levy a late payment fee, if a person fails to make their payment on time. Usually, the amount is 2 percent per month. Additionally, late charges also affect a person’s credit score. Apart from that, banks also charge processing fees. It can range anywhere between 0.25% to 3.03% of the loan amount. Know more about Low-salary Personal Loans at Piramal Finance Piramal Finance offers personal loan plans with zero foreclosure charges. We provide expert advice and assistance to guide every individual through the application process. Some benefits of applying for personal loans at Piramal include: No charges for repayment or foreclosure. Quick approval of the loan amount. Nominal EMI rates. Flexible repayment time window, from 12 to 60 months. Borrow any amount between one lakh to ten lakh. The company allows clubbing of income so that one can be eligible for a higher loan. What are the eligibility criteria for a loan application at Piramal Finance Limited? Apart from the above-mentioned criteria, there are certain exceptions and additional conditions that a person needs to satisfy before applying for a personal loan – Only salaried individuals can apply for a personal loan. Salaried individuals working for the following institutions can apply for the loan. The institutions are as follows: Government Institutions, Private and Public Sectors, Partnership Firms, MNCs, and Proprietorships. The minimum income requirement is twenty-five thousand. Interested applicants can get in touch with the relationship manager by following this link. What are the Interest Rates and Other Charges? The interest rates are 12.99% per annum. As mentioned, there will be no foreclosure or repayment charges. To find out details about the charges associated with the personal loan process, click here. [B-02] Conclusion At Piramal Finance, a person can easily apply online for a personal loan with a salary as low as fifteen thousand rupees: Click on the link. Select “How to Apply?” Follow the link and fill-up the form. Enter the name, mobile, e-mail, and other necessary details. Enter the exact loan amount that is needed. Submit the form, to get in touch with their relationship manager.

08-11-2023

Home Loan

All The Consequences You Need to Know If You Missed Home Loan EMI for One Month

A home loan enables people to buy their dream house without worrying about finances. But because of the large amount and lengthy tenure (typically 30 years) of home loans, many people need help to keep up with their home loan EMI payments. Despite their best efforts, sudden events like joblessness or medical expenses may lead to delayed payments. In such cases, missing home EMI payments may show effects later in the month. [B-01] What Happens Home Loan EMI Payments Exceed the Due Date? Missing EMIs may lead to the following consequences on one’s loan terms and fiscal profile: Credit Score Reduction All the financial practices of a person have an effect on their credit record. So, missed EMIs are also reported in the credit record, lowering the credit score. If the borrower has added a guarantor or co-applicant to their home loan, the credit history of the guarantor will also be affected. Also, defaulting on the loan may reduce one’s credit rating by 50-70 points, which is a huge dip in credit score. As a result, one may be disqualified from receiving more credit. Despite the dip, if one’s credit rating remains above normal but their profile shows defaults, creditors will still see them as a risky applicant. If one misses a home loan EMI beyond three days of the due date, it is termed a small default. One can recover from it by taking quick corrective action, such as making sure that they pay off all the delayed EMIs on the following deadline. By doing so, they can ensure that they are not charged the missed fee by their financer. Penalties for Late Payment Missing an instalment also results in late charges, disciplinary action (in certain situations), and additional penalties based on the terms of the loan and the lender. The missed payment charges are usually around 1%-2% of the outstanding EMI amount. Although the fine amount may seem small, the aggregate amount of several missed home loan EMIs might be huge. Reduced Chances to Transfer Balance Missed instalments may lower one’s prospects of transferring their existing loan balance to a new lender with a reduced interest rate. Because of their low credit score and default history, the potential lender may see them as a high-risk applicant. Non-Performing Asset Label Lenders send debt repayment alerts until the first two payments are received. But if missed home loan EMIs are not cleared within three months after the last payment, lenders classify the loan as a non-performing asset. Then, the lender sends the borrower a notice outlining the property’s worth, and they sell it to collect the pending debts after two months. The auction date is usually set one month after the notice is sent, allowing the borrower a total of six months until their home is auctioned off. What Would You Have to Do When Your Home Loan Is Delayed? If one fails to pay their home loan EMIs, the penalty fee is added to the entire loan balance. This means that the loan sum grows over time. In such situations, one must follow some tips to ensure that they find the right solution: Check with the BankIf one cannot make their EMI payment on time, they should inform their bank as soon as possible. The lender might allow some extension for the home loan EMI if the borrower has a stable settlement history.Banks try to understand the cause of any delays by speaking with their borrowers. If the problem is real, the bank will help by making allowances for potential delays. Get Professional HelpOne can find some financial counselling services that are offered for free. They help by analysing the client’s situation and guiding them by providing choices. A counselling program may also help create a budget to find out how to repay loans. They help with contacting and communicating with the lender about payment delays. Make a BudgetEven without utilising counselling services, one can analyse their finances and develop a plan on their own. One may need outside help with repaying the loans for the short term, but planning their finances can have long-term benefits.One can begin by reviewing their financial records; this involves estimating costs and revenue sources. This helps find out areas where one can cut spending, freeing up money for home loan EMIs. One must also check their insurance policy to find out if it covers job loss. Many insurance companies offer coverage for home loan EMIs for three months after losing a job, but the job loss must result from dismissal or sickness. The policy does not consider removal due to unsatisfactory performance.As a general practice, one must prioritise home loan payments over premium purchases because any delays in the former might lead to them losing their home. [B-02] Conclusion Loans are usually easily available. But before applying for a loan, one must carefully evaluate their financial situation and the capacity to afford the repayment. Missing home loan EMIs has several drastic consequences. As a result, one must ensure that they pay their monthly EMIs on time. To learn more about home loans, visit Piramal Finance. Make sure to check out their other services and products that answer a range of fiscal needs.

08-11-2023

Home Loan

All the Charges you Need to Know While Applying for Home Loan

Banks currently offer housing loans with an interest rate of 6.65% per year. This may be the best time to buy a home with a home loan. But it would be foolish for the borrower to choose the bank with the lowest interest rate on home loans. The borrower must plan for extra costs in his budget because banks can charge the borrower some of these fees at any time during the loan’s term if they need to. [B-01] Charging while applying for a housing loan Administrative charge for housing loans This is similar to the processing fee, but with a different price. Some banks charge a single processing fee. Some might divide it into separate processing or administration costs. The first is assessed before loan approval, and the second is assessed following loan approval. GST on a housing loan When you get a housing loan from a bank, they provide you with several “services”. These are subject to the Goods and Services Tax (GST) regime. GST is paid upon process costs, administrative fees, technological and legal assessment fees, etc. The loan value is not taxed. Fees for housing loan documentation The paperwork fee that lenders might charge for completing all the paperwork and enabling the electronic clearing service ranges from Rs 500 to Rs 2,000. (ECS). In addition, there is a cost for documentation. The borrower delivers the original selling documents to the bank following the sub-registration in the registrar’s office of the deed. This document will then be sent from the bank branch to a central place. You are responsible for keeping it safe throughout the loan. To complete this entire procedure, banks frequently engage outside assistance. This increases their costs. The person who borrows money is responsible for paying this fee. Charges for credit reports Your credit score will determine whether the bank approves your request for a housing loan. If you ask the bank for a copy of the credit report generated by the credit bureau to evaluate your chances of being approved for a loan, the bank might charge a fee. Fee for extending the term of a loan Consider the fact that you could afford the monthly EMI because you selected a 15-year payback period. If you need to extend the tenure because of a salary reduction or another financial hardship, the bank will charge a fee. If you shorten the tenure, the same applies. Late payment fee for EMI The borrower must send in EMI instalments on time. Failure to act promptly would result in default and financial penalties. Some banks may charge a set fee as a penalty, while others may charge a set percentage of the total amount of the past-due payment. Incidental fees for mortgage loans To cover the risks in the event of defaults, banks may also require the borrower to pay an incidental fee. It may impose incidental charges and expenditures to recoup the fees, charges, expenses, and other monies that may have been used in connection with recovering debts from a failing client. Fees for the account statement for a house loan You may move your mortgage to a new bank if you quickly learn that it provides superior services at a cheaper interest rate than your current lender. The new bank will initially review your repayment history to decide whether to approve your request for a house loan transfer. Find your local bank to obtain a written confirmation if you still need one. The bank charges a nominal fee for this service. Make copies of the original document and store them somewhere secure for future use as well as reference. Housing loan down payment This is the first time you’ve given money out of your pocket. When you apply for a home loan, you should be aware that the lender won’t give you the full worth of the home. If your property is worth Rs 80 lakh, you may be eligible for a loan of Rs 60 lakh or Rs 70 lakh. This is due to the LTV ratio (loan-to-value). All banks and NBFCs are required to abide by LTV ratios set by the RBI. You can make a question to banks and NBFCs. A mortgage loan could be evaluated using an EMI Calculator. The processing of home loan charges Nearly all lenders impose home loan charges. This is for completing your loan. Financial organisations assign varying values to processing costs. Some charge this fee for a fixed period. Some charge it as a percentage of the loan total, ranging from 0.5% to 1%. According to information that can be found online, the processing fee is 0.4% of the loan amount. The processing charge for an HDFC Home Loan is 0.5% of the loan amount, with a minimum of Rs 3,000 and a maximum of Rs 10,000, much like other loan kinds. Some lenders periodically waive this cost for home loans and other types of loans. Typically, this occurs over the holiday season. Other Charges There are further charges for a mortgage. This includes fines for making late payments, switching fees (charged if you move a loan to a different lender), overhead charges, and legal expenses. Many lenders give a list of fees borrowers and house buyers should pay whenever they apply for a loan. If the charge list is not immediately available, it is best to check with the lender and then get it. Additionally, annual service fees and expenditures for property inspections are charged by financial institutions. Although since you must pay these costs upfront, you may be able to negotiate a lower rate with the lenders. You collaborate with a financing agent as well. Consequently, you can also be required to pay for them. [B-02] Conclusion When you agree to a house loan, there are additional expenses on top of the equal monthly instalments (EMI). Between lenders, these costs will vary (banks, housing finance companies and non-banking finance companies). In addition, some lenders may bill fees differently, while others lump fees from various lenders together. These extra charges will raise the total cost of the loan. Therefore, it is imperative to be aware of them. To know more about these you can visit Piramal Finance and make an informed decision.

08-11-2023

Home

5 Costs to Consider When Planning a Home Renovation

Setting a budget for a home renovation project may be hard, even if it’s your first time. The price of house renovations depends on what you’re doing, where you’re doing it, and whether you’re doing it yourself or hiring an expert. Other cost factors, such as the size of the space and the items you’ll be using, should be taken into account in your budget. Clients searching for funding to restore, repair, or enhance their property may apply for home renovation loans, often known as home repair loans. Both new and existing customers may apply for financing for home improvements. The major banks, non-banking financial institutions (NBFIs), and housing finance companies (HFCs) provide this credit as a unique offering under the more broad category of home loans or as a part of their standard home loan product. [B-01] What is a home renovation loan? A home renovation loan is one of the ways homeowners can get renovations done without putting a strain on their pockets. Mortgage loans for fixer-upper residences often come with a portion meant for home upgrades, primarily because renovations add to the core value of the house. Renovation loans are based on the estimated value of your home after the improvements. You are qualified for a raise based on the predicted increase in house value brought on by the suggested improvement, the loan amount, and the interest rate. When to Consider a Home Renovation Loan? Process an application for this financing if you’re interested in buying and remodelling a home. Personal loans and cash-out refinances are two more funding choices for home upgrades. If you want to use some of the equity in your house to fund a remodelling project, you may use cash-out refinancing. Home equity loans are yet another option for financing house repairs. One advantage of a home equity loan is that because each payment is paid to the loan’s principal, you would immediately start to rebuild your value. Benefits of a Loan for Home Renovation The cost of modifications, like installing or upgrading heating and cooling systems or remodelling your kitchen, may be covered through loans for home improvements. These changes may raise the property’s worth. Buyers may create more equity than they could otherwise when buying a move-in-ready home. With renovation refinancing, you may alter the terms of your existing loan and take advantage of low-interest rates. You may borrow more money at a cheaper interest rate without increasing your mortgage payment each month. Given the shortage of homes nationwide, remodelling is a better alternative than purchasing. Eligibility for Home Improvement Loans Citizens of India may be eligible for home renovation loans. NRIs may also get loans for house improvements from many lenders. Age: Home renovation loans are only available to new applicants or current borrowers who are 18 years of age or older. Lenders often demand that borrowers repay their home improvement loans by the time they turn 70. Anybody working on a salary or who owns a company may apply for a home renovation loan. Borrowers can also improve their chances of getting a house loan by choosing a longer loan term, adding co-borrowers, or providing an extra source of income. Credit Score: Borrowers with credit scores of 750 or above are more likely to get approved for a home renovation loan. For candidates with better credit ratings, lenders also offer home renovation loans with cheaper interest rates. 5 Things to Keep in Mind When Considering Home Renovation Costs Let’s go through the important considerations again when estimating the cost of your home repairs. Even if more things, like fixing problems you didn’t expect, will affect how much you spend in the end, you should still use these five criteria to make your budget. The scope of the work The cost of remodelling a half bath will be less than that of a full bath and less than that of remodelling the whole house. Also, if you want to knock down walls, alter the floor plan, or expand square footage, you’ll need to set aside more money. The first step in calculating the cost of home remodelling is defining the specific scope of the job. The cost of more projects, including kitchens and master baths, will always be higher. The dimensions of your room For obvious reasons, smaller areas often result in lower refurbishment expenditures. The more space you have to deal with, the higher your restoration budget will be. Depending on the size and where you live, you’ll need to budget anywhere from $10 to $60 per square foot. The state of the building The condition of the home is crucial. Renovation costs are almost always higher for older properties. The same is true of homes that previous owners neglected to maintain or of outdated, worn-out machinery. Before estimating the cost of home improvements on any property, a comprehensive inspection is required to find any conditional factors influencing your bottom line. The place you live Renovation costs grow in correlation to local real estate prices. Your remodelling budget will be affected by regional variances, with high-priced neighbourhoods often having 20% greater renovation costs than other places. Design and materials One of the key factors affecting the cost of home remodelling is how the space is used. It’s also one of the easiest to change if required. Your project’s budget should include a rough estimate of how much you’ll have to spend on cabinetry, flooring, and windows. If the cost of remodelling your house exceeds what you want (or can afford), look for alternate materials and design ideas to lower the cost. [B-02] Conclusion House remodelling is a difficult and expensive process. So having a lovely house could make you happy. You could be thinking about whether it would be better to purchase a new house or make changes to your present one now that you know the expenses involved. In certain cases, buying a new home is cheaper than remodelling an old one. A home renovation loan offers several benefits for revitalising your house. To learn more about these, you can visit Piramal Finance for more details.

08-11-2023

Personal Loan

10 Best Instant Personal Loan Apps in India

A personal loan is a kind of urgent loan that you might use when you run out of money. Such debts have no end-use limits. Hence, the funds may be used for anything. This includes weddings, trips, and medical bills. It acts as a comfortable financial cover for you. Thus, the next time you need money, check out the following personal loan app options in the app store. [B-01] 10 Apps Best Suited for Personal Loans 1. Buddy Loan It is one of the finest fast loan apps for getting quick personal loans starting from Rs. 10,000 to Rs. 15,00,000, and you will not have to wait very long for approvals. The best part is that this system is known for approving requests quickly. So, you will not need to worry about running short of time. It is one of the best personal loan apps because there is no need to ship or scan papers to apply digitally. Also, they offer a variety of low-cost EMI choices that make loan payments simple and easy. As the paperwork has already been completed, getting a second loan is as simple as pressing a button. 2. Navi Navi is also an instant lending system that offers rates ranging from 9.99 % per year for terms up to six years and loan sums up to Rs. 20 lakhs. You may get a virtual personal loan with no processing costs using the Navi app to address financial crises, wedding costs, health bills, etc. The greatest part about this tool is that it reduces the need for paperwork since PAN and Aadhaar cards are used in the loan request procedure. The loan may be approved in less than ten minutes and deposited promptly into your bank account. This digital app provides easy, mildly priced, quick, and accessible banking services. 3. MoneyTap It is one of India’s quickest instant personal loan apps. MoneyTap makes it simple to get a quick loan. All you need to do is install the smartphone app. To begin, you must first install the app and enroll on the same site. After enrolling, you must complete the KYC paperwork and wait for approval. Following that, depending on your credit rating, you may get an instant loan of up to Rs. 5,00,000. You can use that amount to buy daily needs, delights, travel, and other items. The most significant part is that you won’t need to fill out a lot of paperwork or wait for a long amount of time. This makes MoneyTap one of the top personal loan apps in India. 4. Dhani Dhani, also known as the ‘Phone Se’ loan app, quickly transfers loan money to your bank account. You may apply for a private loan at any time and from any location. You may acquire a quick debt of up to Rs. 15 lakhs at a rate of interest of 12%. You may install the Dhani lending app for free, input your Aadhaar card number and desired loan sum, and the loan money will be sent to your account promptly. 5. India Lends It is among the most popular and premium lending portals for Indians. It offers many types of loans for various loan classes. India Lends assists you in getting the lowest interest rate from many banks and NBFCs. This makes it a common interest credit app. Aside from fast loans, you may also get gold loans with lower rates, property-backed debts, and so on. This personal loan app is also famous for offering credit cards, with over 40 different schemes and types to pick from. You may also assess your credit rating by simply submitting your PAN papers, which will allow you to pick your quick loan plan. This makes it, without a doubt, the financial services gold mine, with key data readily available on its platform. 6. NIRA NIRA is a fintech startup in India that gives credit lines to salaried workers. The personal loan given to you is in the form of a credit line with a credit limit ranging from Rs. 3,000 to Rs. 1 lakh. The debt term extends from three months to one year. Each withdrawal needs a minimum of Rs. 5,000. The interest rate charged on the loan sum is set by how much you take and when you return it. 7. Money View You may obtain an instant personal loan in as little as 2 hours with the Money View private loan app. A personal loan via Money View is 100% paperless, quick, simple, and flexible, whether you need it to modify your house, buy a costly vehicle, or pay wedding bills. Money View loans vary from Rs. 10,000 to Rs. 5 lakh. The payback term is adjustable, ranging from 3 months to five years. 8. mPokket In India, mPokket is a fast personal loan app for college students. This is based on the notion of student pocket money. When your loan application is accepted, the loan money is credited to your savings account or Paytm wallet. The first amount granted is Rs. 500, and your lending limit will rise over time if you use it responsibly. You have 1 to 3 months to repay your loan. 9. Home Credit Home Credit is a subsidiary of the global Home Credit Group, which works in 10 countries all across Asia and Europe. The India branch was formed in 2012 and now runs in over 60 locations across 15 states. Personal loans of up to Rs. 2 lakh are granted using this personal loan app, with payback terms varying from 9 months to 4 years. 10. Early Salary Early Salary, a Pune-based FinTech firm, is a personal loan app that makes it simple and quick to get rapid loans. The loan sum is limited to Rs. 2 lakhs, with interest rates starting at 2% per month. [B-02] Conclusion There are several personal loan apps in the finance industry. And, the number of fast cash loan choices has risen. This makes it simpler for you to get a loan quickly. Personal loan apps are enabling fast and affordable cash loans within India. Securing personal debt has never been easier. And, the prompt personal loan app installation process makes it even simpler. If you want to learn more about instant personal loans, visit Piramal Finance and explore their products and services.

08-11-2023