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Business Loan

Accelerate Your Revenue Growth With An MSME Business Loan

The term “MSME business loans” refers to secured loans made available by several lending organisations. These loans were made to help small businesses cover their credit-related business costs. MSME loans are the engine that drives economic growth. As a financial instrument, they help spread the country’s economic growth. MSME business loans give borrowers flexible options and short terms to repay the loan. Compared to conventional company loans, which require proof of a profitable business, those for MSMEs continue to be more flexible. Even if a business has good credit, it may still be eligible for a loan. [B-01] What is an MSME Business Loan? MSME business loans are unsecured loans for small businesses, startups, and women business owners. Some examples of these kinds of businesses are hardware stores, beauty salons, a restaurant, and a boutique. The only reason for MSME loans is to ensure these businesses can’t grow and expand because they need more money. MSME loans can be used for several different things. Borrowers can use these loans to buy goods, rent or buy commercial space, improve their business, and pay their employees. When is it a Good Idea to get an MSME Loan? Here are several situations where looking for a loan for a micro, small, or medium-sized enterprise could make sense: Buying property or land for a manufacturing plant Machinery and equipment Raw materials Payroll, expenses, and debts. You want to grow your business A small or medium-sized business can get a loan quickly and easily. Most lenders will give you the loan quickly if you have all the necessary paperwork and show you good credit. Many lenders can answer you in less than 24 hours, and the whole process is usually quick. Besides that, you can also check your account online. This makes it easy to find out about your loan. Why MSME Business Loans Are Important MSMEs play a big role in the supply chain. They account for about 40% of what India sells abroad. They also play a big role in creating jobs in the country. They hire 11 billion Indian people. More than half of India’s MSMEs are in rural areas, which is interesting. But MSMEs face many threats and challenges, even though they are an important part of India’s long-term growth. They need help to stay in business and grow. One of the most disturbing things they have to deal with is money. Most of them need help to get new tools and buildings. But this keeps them in their micro-cycle. A startup business loan can help small businesses face these challenges easily. MSME loans are the best way for most MSME businesses to get credit due to the following reasons: Accessibility MSME loans are simple to get. There are several ways for a small business to get an MSME loan. They can ask a public or private bank, a non-bank financial company (NBFC), or an authorised financial institution for an MSME loan. Since MSME loans are unsecured, lenders usually don’t ask for collateral or other security. If a company suddenly runs out of money, it could hurt its cash flow. A loan from MSME can help small businesses get cash when needed to keep their cash flow going. Small and medium-sized businesses can get MSME business loans quickly and with little paperwork. Keeping everything under control MSME loans enable small company owners to preserve full control of their companies. For example, if they try to get money from investors, they may have to give up some ownership of their business. MSME loans, on the other hand, are not the same. After giving MSME loans, lenders have no say in how the business is run. All they care about is that the money is paid back on time. Rates of interest Every penny matters when you are starting a business. The more money a business owner has, the more likely they will be able to take on risks and make a profit. MSME loans are made to help small business owners get the money they need by offering loans with low-interest rates. This way, they don’t have to worry about paying back a high-interest loan and can keep growing their business. How You Can Apply for an MSME Business Loan You can apply to the lender’s office for an MSME business loan. Or, you can fill out an online application. Here are the steps to get an MSME business loan in India: First, you must choose the company that will give you an MSME business loan. Then you’ll get an application form to fill out. Then you will need to give some basic information. This information includes your phone number, date of birth, and other details about you. For most MSME business loans, you have to fill out this information. The next step is to fill in information about your business and how much money it makes. You must give more information about your business than just your annual income. This will help the lender figure out if you qualify. The lender will also want to see your business’s PAN card and other documents. More questions will be asked about how your business works and how it is set up. Think about what you can do. The total loan amount will be set based on what you said above. This information includes your monthly payment, the interest rate, and other details. To finish your loan, choose a payment plan and offer from the finance company’s options. Once your loan application is approved, check the amount, the time you have to pay it back, and the information you need to give. After you are approved for the loan, the money will be sent to your bank account within a few days. [B-02] Conclusion India has a lot of resources. But for entrepreneurs to succeed, they need the right kind of help. MSME business loans can be a great way to help new small businesses in the country. These loans offer the opportunity to realise your dreams and show your full potential to the world. Piramal Finance has similar blogs about MSME business loans for aspiring entrepreneurs on its website. You can also take a look at the products and services they offer.
08-11-2023
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Home Loan

All the Important Factors you Wanted to Know About Loan Against Property

When we need money quickly, the first thing that comes to mind is getting a loan. We can get money immediately or meet our needs by getting a loan from a lender. But because there are so many loans, choosing the best one for our needs can take time and effort. Loans for things like homes, cars, businesses, etc., are meant to help you pay for those things, but they can’t help you in an emergency or if you have a pressing financial need. In these situations, you can apply for a loan that can be used for more than one thing, like a personal loan or a loan backed by your home. A loan against property is secured, while a loan for personal use is not. In this post, we’ll discuss the pros of taking out a loan against property and whether it’s a good idea. First, let’s talk about what a “loan against property” is. [B-01] What is Loan Secured by the Property? A loan against property is a secured loan. The lender gives you the money after keeping your property as collateral or security. This could be land, a rented home, or a business location. It’s important to point out that the borrower is still the legal owner of the property on which a mortgage loan is owed. It will only be used as collateral until the full loan amount is paid back. There are no rules about the usage of a loan against property. It is a great alternative to unsecured personal loans. You can use this for anything, like a medical emergency, higher college costs, or home improvements. Should you Decide on a Loan Secured by Property? When you apply for a loan against property, you have two options. You can choose between a personal loan or a loan secured by the property. Even though both have pros and cons, the second option may be better if you need a large amount of money. Benefits of Loan against Property No Ownership Transfer Even though you must put up an asset you own to get a LAP, the mortgaged asset does not change hands. Legally, your property is still yours, and the lender would only use it as security while you pay back your loan against the property. Low interest This is a clear benefit that puts LAP ahead of other choices. The interest rates on LAPs are lower than on personal and unsecured loans. Your EMIs may decrease because interest rates are decreasing, making your finances easier. Most LAP interest rates range from 8% to 15% per year and go down yearly. No limitations on usage Since LAPs are multipurpose loans, there are no limitations on how To use them. You can use a loan against property to fix up your house, pay for your child’s college, pay for a family trip, take care of an emergency medical situation, or even buy things online. Repay in a reasonable timeframe LAP lets you borrow a lot of money to repay your loan over time. LAPs usually last between 15 and 20 years, but it depends on the lender. You can choose how long your loan will last based on what you need and how much money you can pay back. Simple qualifying requirements and documentation LAPs often have basic requirements for who can get them and what they need to prove. Because they are secured loans, lenders don’t have to take on many risks when they give them out. On the other hand, personal and unsecured loans have strict requirements for who can get them and long verification processes. Factors to Take into Account When Applying for LAP Let’s discuss the things you must bear in mind when applying for it: The ratio of loan to value The loan-to-value ratio of your LAP will determine how much money you can borrow from a lender. It is also the ratio between the most you can borrow and the property value you want to use as collateral. Term of Loan and EMIs When choosing the length of a LAP loan, you need to be careful. If you choose a short term, your EMIs will go up, and you may need help to make payments on time every month. On the other hand, if you choose a longer term, you might have to pay a lot of interest. So, try to find a good balance between the length of the loan and the EMIs. Tax advantages for LAP Using a LAP to purchase or construct your home may be eligible for a tax reduction of up to Rs. 2 lakhs within Section 24 of the Income Tax Act of 1961. It may claim certain tax breaks against the interest portion of your LAP. Interest Rate Before requesting a loan against property, you should evaluate the LAP interest rates provided by different lenders. NBFCs typically provide cheaper interest rates than banking institutions. [B-02] Conclusion LAPs are different from unsecured loans because of these points. You can easily meet all of your financial needs with the help of a loan backed by property. So, it’s important to keep the LAP in mind when deciding. The lender could take your property if you don’t pay back your loan. Because of this, you should only get a loan backed by property if you are sure you can pay it back on time. If you want, a personal loan is a risk-free way to get money. You can visit the Piramal Finance website and explore their products and services.
08-11-2023
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FD

Advice & Tips for Corporate FDs

Investors have many options available to them. For us Indians, the fixed deposit (FD) has always been the first choice. An FD puts your money to work for you. It also makes sure of a return at maturity. Also, if you invest in corporate FDs, you’ll receive a bonus. Banks and NBFCs provide an investment chance which is called a fixed deposit. In this plan, your money will be secured for a set time with interest. Compared to a savings account, the return on an FD is higher. Read on to find out more about corporate FDs. [B-01] Corporate Fixed Deposit Some corporations and NBFCs, like banks, provide deposit plans. These plans are for long-term savings. Company FDs are another name for corporate fixed deposits. These firms provide fixed rates of return and terms to suit your needs. Financial stability is just one of the many benefits of establishing a business fixed deposit Corporate Fds typically have higher interest rates than conventional banks, resulting in greater rewards after the deposit term. Company FDs can be held for varying amounts of time, and interest can be paid at different intervals. There are special interest rates for the elderly. Corporate FDs can be used as collateral for loans. What are the Advantages of a Company FD? These days, many investors are depositing in company FDs. These are a way to boost their income. Those in need of consistent income can consider corporate FDs. In particular, the higher interest rates on such FDs can be highly beneficial. It also provides financial safety to retirees. Corporate FDs are becoming increasingly important. It boosts investing methods of many financial advisors’ clients. Most financial experts agree that corporate FDs should account for at least half of your loan portfolio. As per the reports, the stock market is unstable right now. But putting your money into corporate FDs will give you a sure return. It will help your money grow steadily. Interest earned on corporate FDs is subject to taxation at your applicable rate. If the interest earned on a corporate FD reaches Rs 5,000 in India, the corporation must withhold 7.5% as tax. Filling of form 15G or 15H saves from TDS. Points of Consideration while Investing in Corporate FDs Investments in Corporate FDs are dangerous The high rate of return offered by companies on FDs is enticing compared to the low rate of return. But they are risky and shouldn’t be relied upon as a financial base. Interest and principal payments are more likely to be missed on these loans than on those from banks. The company’s assets do not qualify as security in TDS. Take caution when calculating TDS. When your interest income from a corporate FD exceeds Rs 5,000, TDS is chunked out. However, in the case of a bank fixed deposit, TDS is withheld when your interest income exceeds Rs 10,000. Higher interest rate Company FDs (FDs) are a great investment opportunity. It is for those seeking a good interest rate. Interest rates on corporate FDs tend to be higher than those on bank FDs because of the higher risk associated with the former. Investigate the company’s history It will help if you use extreme caution because it is your own money that you are investing. Do not make any hasty decisions. Before putting your money into a company’s FD, do your homework. Get an analysis of the company’s profile. This information will help you determine if the company is safe enough to invest in. Withdrawal before Maturity There is a penalty for taking out your investment before the period. The same is the case with corporate FDs. After the deposit, the penalty can be levied after three months. It is best to know the penalty before investing. Features of Corporate/Company FDs Credit rating agencies, including CRISIL, ICRA, and CARE, have given Corporate FD high marks (AAA, for example). The rating helps investors decide whether or not to invest. They give creditworthy by indicating the likelihood of default on interest and principal payments. Depositors can select from many different interest options by NBFCs. Payout schedules vary from month to month, quarter to quarter, and semi-annually to annually. For an even greater rate of return, depositors might select the collected FD option. This option helps in the interest to be deposited. In this way, the depositor stands a better chance of profiting. A depositor may also request a withdrawal before the maturity date. Regarding public deposits, several HFCs and NBFCs impose a penalty rate of up to 2%. Some public deposits have a three-month lock-in term. During this time, the funds cannot be withdrawn. The highest interest rate on corporate FDs may also be offered. The max interest rate has a premium of 2%. Interest earned on FDs by corporations is subject to taxation at the rate given to the depositor. The deposit insurance plan provided by DICGC, an RBI subsidiary, does not apply to corporate FDs; they carry a higher level of risk. [B-02] Conclusion It’s common practice for investors to focus more on star ratings. Before investing, it is important to examine the company’s history and finances. The track record is generally positive if the loss was an isolated incident. This could be a great investment opportunity for FDs from corporations. Be mindful of the company’s goals. Always evaluate whether or not they will have a positive or negative effect. By sticking to this, you can raise your chances of success. For more details, visit the Piramal Finance website for more details on corporate FDs.
08-11-2023
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Personal Loan

5 Things to Know About Gold Loan Interest Rates

A gold loan is a secured loan that lets you use gold jewelry and coins as collateral. Based on the rules laid down by the Reserve Bank of India (RBI), a lender can give you up to 75% of the value of your gold. Since gold prices change every day, most lenders will figure out how much your gold is worth based on the market price of gold on that specific day. When prices are high, you may be able to get a higher loan amount against your gold jewelry at good prices. The interest rates on gold loans will directly affect how much you have to pay back. So, it is important to understand how gold loan interest rates are set and what you can do to get the lowest gold loan interest rate. [B-01] Interest Rates on Gold Loans Gold loan interest rates range from 7% to 18%. The main things that affect the interest rate are the size of the loan and the borrower’s monthly income. The gold loan interest rate will be higher if you borrow more money. The interest rate will be lower if you have a stable, high income. The value of the loan is directly linked to how much gold you have. The purity of the gold doesn’t make a big difference in the interest rate. Some NBFCs and banks charge a foreclosure fee of up to 2%, not including GST, if you repay the loan before the pre-scheduled repayment period of 3–6 months. They also charge a minimum processing fee of Rs. 500, or 0.5%–2% of the loan amount. Factors Affecting Gold Loan Interest Rates There are many factors that affect gold loan interest rates. These are the following: Loan amount Your lender will give you a gold loan based on the value of the gold you give them. The amount of the loan affects how much interest you pay. The interest rate goes up as the loan amount goes up. The typical loan-to-value ratio for lenders is 75%. This means that they will give you no more than 75% of the value of the gold you give them. The more you borrow from a lender, the more interest you have to pay back. Monthly pay Gold loans aren’t the same as other personal and business loans in terms of what the borrower needs to do. In terms of other loans, the lender will assess everything related to your credit score, your job, and your business plans. But to get a gold loan, you only have to meet a small number of requirements. One of the things your lender will look at is how much money you make every month. The more money you make, the more a lender will trust you. The lender is sure that you will pay back the loan, so they charge you the lowest gold loan interest rate. But if you make less money, the lender might charge you a higher rate of interest. External lending benchmark rates Your gold loan interest rate is based on the external benchmark that the lender’s interest rate is tied to. All loans approved by banks are linked to an external benchmark. When the Reserve Bank of India raised policy rates, the lender immediately raised interest rates. Still, when the Reserve Bank of India lowered interest rates, they didn’t change right away. The RBI asked the lenders to tie their interest rates to a benchmark from the outside world. That could be the yield on 10-year government bonds or the RBI repo rate. This rate will affect the interest rates on gold loans. The interest rate on gold loans will change every time the Reserve Bank of India changes its policy rates. Credit score Along with your monthly income, your credit score is one of the aspects your lender will consider when determining your credibility. This score will reflect your loan repayment habits. The higher your credit score, the more confident the lender will be. This also means that the lender will offer you a lower interest rate because there is no doubt that you will repay the loan and avoid default. How Do Gold Loans Interest Rates Affect Your Repayment Amount? Gold loan interest rates will directly affect how much you repay the loan, which is true for all loans, not just gold ones. The repayment amount will be less if you opt for lower interest rates. A gold loan offers you two extra ways to repay the loan besides the EMI, unlike other types of loans. These strategies include periodic interest payments and bullet repayment. However, the gold loan interest rates will have an impact on the repayment amount regardless of which option you choose. Consider a scenario where a person wants to choose a 2 lakh INR gold loan with a 12-month term. Let’s assume he takes out a gold loan with interest rates of 10% and 20%. A 10% annual interest rate would result in an EMI of INR 4,249 and an outlay of INR 54,965 for interest. On the other hand, if we use a 20% annual interest rate, the EMI will be INR 5,299, and the interest outlay will be INR 1,17,927. Therefore, if you choose a higher interest rate for a gold loan, you will have to pay an extra 1,000 per month as opposed to a lower interest rate of 10% annually. Similar to this, paying more interest means spending a lot more money. Therefore, choosing lower interest rates for your gold loan is advised. Maximum Value of a Gold Loan One of the most important factors is the loan-to-value ratio (LTV), which is set by the RBI and determines how much a borrower can borrow against the gold’s value. Banks can give out loans for up to 75% of what the market value of the gold ornaments is. For example, if the LTV is 75% and the value of the gold is INR 10,000, the most the customer can borrow is INR 7,500. [B-02] Conclusion Before you apply for a gold loan, one of the first things you should check is the interest rate. Most people get gold loans, even though they have high interest rates, because it’s a fast way to get money. You shouldn’t be in a hurry to get a loan with a high interest rate. If the interest rate is higher, you’ll have to pay more each month. Visit Piramal Finance for more information on gold loan applications, interest calculations, and much more.
08-11-2023
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Lifestyle

5 Tips for a Successful Clothing Boutique Business

A great clothing store needs the same steps as any other business, plus a little more work. If you want to run a successful clothing business, it’s important to remember that you need a strong marketing plan. Your customers will keep returning to your shop even if they don’t know you’re there. For this business to do well, it needs to buy marketing tools and develop a good way to sell things. Use effective marketing methods, like marketing on media platforms and online ads, to reach more people. Please look at each online shop’s offer to determine which is best for your business. You also need a strong online presence and loyal customers who like what you do. Once you have the basics down, it’s important to stay unique and keep adding to your stock to keep your customers happy. [B-01] Boutique Business People who want to stand on their own often start their businesses in an area they are passionate about. This gives them the freedom and satisfaction of being their boss. Many dream of opening a boutique business. A boutique is a small retail store that sells clothes, fabrics, accessories, and other items for a specific market. It is easy to start, can be run by just one person, costs very little money, and uses the owner’s creativity and passion. How to Establish a Boutique Business? If you like clothes, fashion, and design, you can start your own business. Before the time of ready-made clothes, people often bought clothes at boutiques. Boutiques are less important for everyday clothes now that there are more brand shops and ready-to-wear clothes, but they are again important for clothes that fit well and are different from run-of-the-mill designs! When people shop in a boutique, they often think of style and fit, not just buying clothes. Some boutique shops sell ready-made clothes and clothes made just for the customer. So, clients can get the fit they want and know what styles are available. There are only a few of the usual things that a boutique business needs. For several reasons, the boutique model is changing to meet modern needs. Five Tips to Start and Run a Successful Boutique Business Before you make your official debut, there are a lot of things you need to think about and set up. Whether you want to start a boutique business or make your own clothing brand, this is true. Before you start, think about the following: Aspects of Funding, Pricing, and Law It would help if you thought about how you want to fund your business and how much you expect to make in the first quarter before taking action. Only a profitable firm can endure over the long term. Financing options include business loans, joint ventures, personal contributions, and investor recruitment. You must choose the cost of your products and services when you develop your company plan. If you’ve generated a basic draft of your product catalog, you may assess it using data about your rivals. In addition to these aspects, you must take care of your company’s core legal obligations. To do this, the firm must be listed under the proper business category, and its local government’s operating permits and licenses must be confirmed. Choose Your Store’s USP and the Goal of your Enterprise Determine your motivation for starting the boutique and the products you’ll sell. You’ll also need to know current market trends and the colors people find appealing. Create a business attitude right away. You’re doing this to benefit financially and improve your quality of life. Nothing is possible without profit. Therefore, always consider how to increase revenue while reducing expenses. As a result, consider “the reason why you wish to establish a boutique.” Any firm, not to mention the competitive fashion industry, needs a strong drive to succeed. Make sure you have the education and expertise necessary to operate a firm. A broad understanding of how to operate a firm is crucial, and you may acquire this knowledge by reading pertinent publications. With knowledge, you can depend less on other people. Nobody can trick you if you have the information. Your knowledge will serve you well, and you’ll be able to make wise judgments. Business operations are complex and need knowledge and support. A Loyalty Program Can Reward Customers A customer loyalty program is a good way to keep people coming back. A boutique business needs repeat customers. If you have more, your customers will be happy and likely tell their friends about you. Customers are also more likely to stick around if they can get a discount. Hire Good Employees If you don’t have any staff, that’s okay. Many company entrepreneurs start by themselves, handling every aspect of their operations until they start to turn a profit. But everyone needs a fallback. At some point, you will need to recruit someone, even if only briefly. It would help if you had personnel to tidy the area, handle the money, and work as salespeople. You can quickly get exhausted if you try to handle everything alone. Make certain that any new hires adhere to all shop operating procedures. Do not give in on this; if the owner is lax about the regulations, the staff will likely disregard them. Switch to Digital Platforms Despite the change from offline to online, many boutique owners keep running their genuine businesses. You may transfer your firm online using well-known programs created for the retail sector. These platforms work well for marketing and selling. They are also helpful and may help you connect with targeted users who still need to learn about your firm. [B-02] Conclusion You can make your boutique business as simple or complicated as you want. Focus on a single genre, or offer your skills for all designs and clothing. After a few months in business, you can focus on successful niches and buyer types with a growing customer base and better performance in certain boutique niches. No matter what you do, happy customers will certainly help your business reach new heights. Two things that will help you in this area are good work and careful planning. Using Piramal Finance, you can learn more business tips and tricks. Visit the website of Piramal Finance to find out more.
08-11-2023
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Electronics

5 Problems Small Businesses Are Facing Post-COVID-19

COVID-19 has been a nightmare for many small businesses. Since the pandemic ended, some businesses have grown, but others still have to deal with many problems. How can businesses that are having trouble making money fix their problems? A small business loan, also called an SME loan, can help a business that is having trouble doing well. This article discusses the five main problems small businesses have had since COVID-19 and the best way to get a small business loan, or SME loan. [B-01] The problems Maintaining Competence Your business will always have to deal with new competitors in terms of prices, goods, and services. Even though some may charge less, others may have better products or services that are more useful. Since COVID-19, it has been hard to stay competitive and take advantage of undiscovered gaps in the market because of money worries. Customised advertising Marketing strategies are no longer a place to try out new ideas. In the wake of COVID-19, the marketing budgets of SMEs have shrunk, so the team needs to be more proactive about how they use their time and resources. Now is the time to spend money on market research to find out who your company’s target market is. To use this information and market your business well today, you need to learn about your target customers’ traits and buying habits. Dealing with Uncertainty For a long time, markets have been hard to predict. But since COVID-19, there have also been a lot of big changes. Keeping afloat is hard when you have to think about everything, like rising prices and higher GST rates. SMEs need to set goals for productivity, make targeted marketing campaigns, and put R&D teams on products to improve their features. These are some of the most common problems SMEs have to deal with after COVID-19. After two years of the pandemic, things are still hard, and businesses must find better ways to keep going. Cash Flow Management This is one of the most important problems for SMEs. It is hard to stick to a cash flow rule that balances money coming in and going out, especially post-COVID-19. The lengthening of credit terms has made business operations harder. Supply chain breakdown After COVID, there was a bad effect on the supply chain. The financial results of the companies have been hurt in a big way. Companies also think their suppliers like big brands and companies more than small ones. Significance Based on a survey of more than 5,800 small businesses, this report provides an overview of how COVID-19 has affected their economies. The results showed that the finances of many small businesses were in bad shape and that COVID-19 had a big impact on them in the weeks after it started. The results also show how businesses feel about the government’s relief efforts and what they think COVID-19 will do to them in the long run. How hard is it for small businesses to adapt to a long-lasting recession? One of the most important things to happen during the COVID-19 pandemic was for small businesses to move online. This has given people a lot of chances to solve different problems. Despite the pandemic, the internet is still a lifeline for several small businesses. In the 30 days before the study, 37% of businesses said they used digital payment tools, 16% said they used digital tools to deliver services, and 23% said they used digital tools to take orders. 36% of small businesses run by one person and doing business online say they make all of their sales online. During COVID-19, however, we have also seen many small businesses come up with creative ways to do well, like entering new markets or coming up with new ways to deliver their goods and services. Big tech companies like Facebook and Google are creating new ways for small businesses to talk to all of their customers at once. Even when businesses stay open, employees lose money when they lose their jobs or work less. It’s important to remember that when a company closes or has to lay off workers, it affects whole communities of people who depend on their jobs for financial security. This, in turn, helps keep other local businesses and organisations going. Dealing with the coronavirus’s wave-by-wave effects on businesses People have called each stage of the COVID virus’s spread a “wave” to distinguish it from the early stages. The spread of the virus has affected businesses and other industries worldwide. This pandemic has had a big effect on many businesses, and managers are fighting unemployment by cutting salaries and trying different things to deal with how the virus is changing. Different industries have been affected by the coronavirus as businesses try to get back on their feet after the chaos that has taken over the world. Impact of Coronavirus There is also a better chance that the response and recovery will work. Encourage people to do things that put people first, protect their rights, and put them in the centre. While also protecting the economy, financial systems, and assets that are very important. Find the sectors and groups that are being hurt the most and are being left behind or will soon be left behind. Avoid policy and funding changes that turn short-term projects into “giveaways” over the long term unless they are meant to be incentives for long-term development goals. Take advantage of the chance to work on long-term goals linked to short-term goals that will help make the future more fair, resilient, productive, environmentally friendly, and sustainable. [B-02] Conclusion COVID-19 hasn’t affected every business the same way. Some were told to close, while others were considered important enough to stay open. Some businesses can get employees to work from home, but others need more help. The pandemic has caused a lot of trouble, and the fight continues even after more than two years. Small businesses have trouble managing cash flow, finding qualified employees, and dealing with supply chain interruptions. If you want to learn more about these, you can learn more at Piramal Finance.
08-11-2023
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Tax Savings

All the Home Loan Tax Benefits Under Section 24 You Need to Know in 2022

Everyone dreams to purchase their own home one day. The Indian government has shown a strong interest in motivating Indians. They have urged residents to engage in real estate. The ability to deduct interest paid on a home loan is made possible under Section 80C. And if you finance the purchase of a home with a mortgage, you’ll be eligible for a variety of tax benefits. They are much lower than the amount of tax you pay every term. In this piece, you will get to know all of the tax benefits with home loans under Section 24. [B-01] All of the Tax Benefits under Home Loans Under Section 24 Deduction for the interest that was paid on the mortgage To buy or build a house, one needs to apply for and receive a mortgage loan. If the loan was taken out to pay for home improvements, then those improvements have to be finished no later than the end of the fifth year after the fiscal year in which the loan was obtained. If you are paying (EMI) on your home loan, the payment will consist of two parts: Interest payment Principal repayment Under Section 24, you are allowed to deduct the percentage of the EMI. The deduction is equal to the interest that you paid during the tax year, up to a maximum of Rs 2 lakh. There is no maximum amount that can be claimed in interest for a property that is rented out. Deduction for interest that was paid in the pre-construction period Imagine that you have purchased a home that is still in the process of being built and that you have not yet moved in. However, you are currently paying the EMIs. The earliest point at which you will be able to begin deducting the interest you pay on your mortgage is the point at which construction is finished. The Income Tax Act provides for the possibility of claiming a deduction for such interest. In addition to the deduction that you would normally be able to claim from the income from your house property. It begins in the year that the property is purchased or the construction is finished. Repayment of a principal subject to a deduction Under Section 80C A deduction equal to the amount of the EMI that was paid toward the principal during the year can be claimed. Up to one and a half million rupees (Rs.) is the maximum sum that can be claimed. To be eligible for this deduction, however, the home cannot be sold during the first five years of the taxpayer’s ownership of the property. If you don’t meet either of these conditions, the deduction you claimed earlier will be applied back to your income in the year that the sale occurs. Stamp duty and registration fees are eligible for a deduction Under Section 80C, you can claim a deduction for principal repayment, as well as a deduction for stamp duty and registration fees, as long as you stay within the overall maximum of Rs 1.5 lakh. On the other hand, you can only make a claim for it in the same year that the expenses were paid for. Extra reduction allowed under Section 80EE Buyers of primary residences are eligible for an additional deduction of up to Rs 50,000 under Section 80EE of the Income Tax Act. To qualify for this deduction, you need to satisfy all of the following conditions: The amount of the loan that is taken out should not be more than Rs 35 lakh, and the value of the property should not be more than Rs 50 lakh. The loan must have been authorized sometime between April 1, 2016, and March 31, 2017, inclusive. Also, on the day the loan is approved, the individual in question will be considered a “first-time house owner,” meaning that they will not have previously owned a home. Extra deduction available under Section 80 of the EEA An additional deduction of Rs. 1,50,000 for homebuyers under Section 80 EEA of the Income Tax Act was included in the 2019 Budget to encourage growth in the housing market. The following must be satisfied to qualify for the deduction criteria: The property does not have a stamp value that is greater than or equal to Rs 45 lakh. The loan must have been approved sometime between April 1, 2019, and March 31, 2022, inclusive (extended from 31 March 2021) It has been established that the individual in question is a first-time home buyer as of the date on which the loan was authorized. Deduction for interest paid on a shared mortgage If the home loan was taken out jointly, each loan holder is eligible to receive a deduction. Deductions up to 2 lakhs of rupees and principal repayments under Section 80C up to 1.5 lakhs of rupees are given. To be eligible for this deduction, it is necessary for them to also be co-owners of the property that is being used as collateral for the home loan. Therefore, taking out a loan with your family members at the same interest rate will help you qualify for a higher tax benefit. How to File for Deductions and Benefits on Your Home Loan It is not difficult to qualify for tax deductions when you purchase a home. The steps that need to be taken to claim your tax deduction are explained here. The first thing you need to do is work out how much of a tax reduction you can get. Determine whether or not you are listed as a co-borrower on the mortgage or whether or not the house is registered in your name. Provide your employer with the interest certificate for your home loan to modify the tax deduction at the source. If you have not completed the steps that came before this one, you will be responsible for filing your tax return all by yourself. If you are self-employed, this step does not apply to you because you are not needed to submit these documents anywhere. Simply store them safely. [B-02] Conclusion It should be kept in mind that an individual can opt for the old tax regime and claim exemptions under the home loan. Deduction such as HRA and others under sections 80C, 80D, etc. for the current financial year. This is something that should be noted at all times. A further choice available to the individual is to switch to the new tax system. It has a lower overall tax rate but does away with tax exemptions and deductions. For more details, visit the Piramal Finance website and get assured assistance.
08-11-2023
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Everything You Need to Know About the EMI Calculator

Everything You Need to Know About the EMI Calculator The Equated Monthly Installment (EMI) is the monthly payment that people make to a bank after taking out a loan. When you borrow money, the bank gives you a contract that says how you will pay it back. The EMI includes both the interest and the original amount (principal) you borrowed, divided by the time you have to repay the loan. This means that the amount you pay each month depends on how much you borrowed, the interest rate, and the time you have to pay it back. Initially, EMIs can be high, but they go down as you continue to make your payments. What Exactly is the EMI Calculator? An EMI calculator is a simple tool that helps you figure out how much your monthly payments will be for a loan. You can find these calculators on the websites of various banks and lenders. This calculator not only helps you with the monthly payments but also shows you the total interest you'll pay over the life of the loan. To use an EMI calculator, you just need to enter three things: the loan amount, the loan period (how long you want to take to repay it), and the interest rate. What Exactly is an EMI Calculator for a Home Loan? When you borrow a large amount of money, like for a home loan, you might worry about how much interest you will pay. A home loan EMI calculator helps you see how much money you will owe each month. Since home loans can last a long time, sometimes decades, it’s essential to understand what you’ll have to pay. Knowing this amount helps you plan your finances better. With a home loan EMI calculator, you can see how much money you should set aside each month for your EMI. If the loan terms don’t work for you, you can change the loan amount, the interest rate, or the loan duration to find a better fit for your budget. EMI Calculation Formula The formula to calculate EMI is: [P x R x (1+R)^N] / [(1+R)^N - 1] = EMI Here:P – Principal Loan Amount (the money you borrow)R – Monthly interest rate; if the interest rate is annual, then R = interest / (12 x 100)N – Loan tenure in months (how long you will take to repay the loan) What Role Does EMI Calculation Play in the Planning? An EMI calculator helps you see exactly how much you need to pay each month for your loan. This information is useful for planning your monthly budget. By knowing your EMI, you can manage your finances better and ensure you don’t overspend. The calculator also helps you understand how much money you can borrow and how long it will take to repay. This information is crucial to ensure that your loan fits your financial situation. Factors Affecting the Loan EMI The principal sum (P)The principal amount is how much money you want to borrow. This amount directly affects your EMI. If you borrow a smaller amount, your monthly payment will be less. If you borrow a larger amount, your monthly payment will be higher. Interest rate (R)The interest rate is how much the bank charges you to borrow money. This rate directly influences the EMI. A higher interest rate means higher monthly payments, while a lower interest rate results in lower payments. The Benefits of an Online EMI Calculator AccessibilityYou can access an online EMI calculator anytime and from anywhere. You can use it multiple times whenever you want. Simple and time-savingUsing an online EMI calculator saves time. Doing all the calculations manually can be tedious and slow. With an online calculator, you can quickly see the results for different amounts and terms. AccuracyWhen you do calculations by hand, it’s easy to make mistakes. An online EMI calculator helps avoid errors, giving you accurate estimates for your payments. Helpful in the financial planning processWhen you calculate your EMI, you can see how much you need to pay back. This allows you to arrange your finances before you take out the loan, ensuring that the EMI fits within your monthly budget. You can also experiment with different loan amounts and terms to find the best option for you. The online EMI calculator for any loan type You can find EMI calculators for different types of loans, including car loans, home loans, and student loans. Although many calculators are similar, you might sometimes need to use specific calculators provided by different lenders. Conclusion If you have chosen a home loan plan, the home loan EMI calculator can give you a clear idea of how much you will pay in interest. If you are still exploring options, the EMI calculator helps you compare different loan offers. By entering various loan amounts, interest rates, and term lengths, you can see the different costs associated with the loans. This information allows you to make a well-informed decision about which loan to choose. Visit Piramal Finance to learn more about home loan calculators and explore their range of products and services.
08-11-2023
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5 Things to Know Before Buying Gold ETF

For the last two thousand years, investing in gold has been a common activity in India. The precious metal was traded for spices and dyes back then. India still claims to be the owner of 170000 tonnes of gold — 20–25% of the total amount of gold mined to date. Gold is a great hedge, so investing in it is highly advised. It maintains its stability and provides good returns at a lower rate than many other assets. If you are thinking about investing in gold, why not in Gold Exchange Traded Funds (ETFs)? Gold ETFs provide all of the benefits of gold trading. It also removes some of the most important drawbacks related to physical gold. If you look at gold solely as an investment option, you should invest in gold-related instruments such as Gold ETFs. [B-01] What are Gold ETFs? Gold Exchange Traded Funds, also known as gold ETFs, are some investments that follow the domestic price of gold. They make investments in gold bullion. They are dematerialized versions of actual gold. One gram of gold is equal to one unit in the gold ETF scheme. This unit is supported by 99.5% pure physical gold. Through this scheme, one can purchase gold and invest in the market. As a result, they can be bought and sold on the NSE and BSE like any other stock. Also, they are traded at market rates and are listed in the cash section of the exchanges. Some Benefits of Gold ETFs Over Physical Gold No premium fees When buying solid gold, owners will always demand a fee for coins and bars. When looking for the best ETFs to buy, you only pay the true value of the gold. No extra charges are applied. No chance of theft There is no chance of theft because the gold you purchase through ETFs is secured. It is kept by a guarantor. This makes sure that the gold has absolutely no chance of being taken. Assurance against fraud A dishonest gold dealer may defraud you regarding the value and amount of gold you are buying. When purchasing Gold ETFs, it is not possible. No wealth tax If you own more gold than a certain amount, you must pay a wealth tax on it. This is untrue if you purchase Gold ETFs, which you can do in any amount without incurring any wealth tax. No price discrepancy If you’re buying gold bars in India, be ready to pay a wide range of prices in various cities. Even the prices change from one jeweler to the next. When buying Gold ETFs, this issue is not present because the prices are consistent across the board. No storage costs Buying solid gold requires a secure location to store it. Due to the fragility of storing gold, there is usually a surcharge. Again, choosing Gold ETFs will solve this problem. Tax advantages For tax purposes, gold ETFs are much more effective than physical gold. Liquidity Gold ETFs have good liquidity, making it easy to buy and sell them. This benefit actually qualifies it as a type of currency. No deduction No deduction is made at the time of resale. Physical gold will have a small amount deducted when it is sold again to a jeweler or buyer. With gold ETFs, this does not take place. Can be sold at any time For a number of reasons, banks or jewelers every now and then won’t buy the gold you own. These issues do not apply to ETFs since they are purchased and sold online. Some Things to Consider Before Investing in the Best Gold ETFs The fund house’s track record of past performance should be one of your first priorities when buying gold ETFs. A better performance suggests a higher chance of future success and overall efficiency. The level of trading on a gold ETF, or liquidity, is a crucial factor to take into account. When trading activity is active, liquidity is higher, which increases the chance of high returns. Another key aspect to take into account is the ETF’s tracking error. It is expected that ETFs will closely follow the underlying indices. Investors are typically advised to choose a gold ETF with the smallest tracking error possible. Before purchasing gold ETFs, investors must be aware of the applicable taxes. Due to the fact that gold ETFs are regarded as non-equity assets, you must pay capital gains on them for up to three years after redemption. After indexation benefits are taken into account, 20% of long-term capital gains are also taxed. Gold ETFs are non-equity assets. So, the Securities Transaction Tax does not apply to them. Gold ETFs are not long-term revenue-producing equity assets. Instead, they serve as hedges that will keep your portfolio safe when the economy is uncertain. This means that periods of economic uncertainty are also the best for Gold ETF performance. Must Know Facts About Gold ETFs The assets under the management of the fund are unaffected by purchases or sales of gold ETFs (AUM). In a transaction involving a gold ETF, there is only a change in ownership. The AUM does not change. Each unit of a gold exchange-traded fund (ETF) is supported by a physical unit of gold with an equivalent value. SEBI regulates these funds. Physical gold prices are the only factor influencing gold ETF prices, and the value of the ETFs fluctuates based on the price of gold in the market at any particular time. A Demat account can be used to buy and sell gold ETFs on the stock market, just like any other asset sold there. [B-02] Conclusion A great way to protect your investments is to purchase gold. With slow but certain returns, it is also a very great investment. A good way to invest in gold is through gold exchange-traded funds (ETFs). They have none of the drawbacks of physical gold ownership. Gold ETFs offer prices that are as close as possible to the spot price of the metal with no added fees or restrictions. For more details, you can visit the Piramal Finance website and explore their products and services.
08-11-2023
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