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Credit Score

All You Need to Know About the Importance of Credit Score In 2022

A high credit score makes life better. Your ability to achieve important milestones is strongly affected by this. These could be renting an apartment, purchasing a car, or getting a loan for your first home. It touches almost every aspect of your financial life. Even if you have zero credit history, this guide will cover all you need to learn about credit scores. Find out how to start building credit, whether you just graduated from high school or are starting later in life. [B-01] What is a Credit Score? A credit score consists of three digits. It shows your credit ratings. When you take out a loan or a credit card, it is the first thing that lenders look at. They can tell if you’ll be able to repay the loan on time or not by looking at this. So, keeping a high credit score is crucial. Pay all of your bills on time, regularly check your credit reports, and clear up any outstanding balances on your credit cards. With these, you can keep your credit score in good standing. What Information Does Your Credit Score Provide You with? Your credit score gives an outline of your credit standing. Take a look at the information your credit score can provide you with: Gives you details about your current credit situation When you review your credit report and score, it informs you of what needs to be your main focus. Your credit report contains an overview of all of your recent and previous credit transactions. You can find any errors that might have caused your score to drop by regularly reviewing your report. Helps you find the best rates on credit cards and loans People who have good credit are also qualified for the best loan and credit card offers. You should keep a credit score of at least 750 to get the best deals on credit products. Benefits of Having a Good Credit Score Fast Approval Everyone has financial needs. Today, loans can cover such demands. Every lender prefers a responsible borrower. If you have a good credit score, you may be able to get money quickly to pay for things you need. The money is deposited as soon as the lender agrees to the loan. Low-interest Rates If your credit score is high, you can expect to pay less interest on big purchases and loans like a car loan. A good credit score helps you to get loans with lower interest rates. Increased Credit Limit Lenders set loan amounts and credit card limits on monthly income. Credit scores can also affect a person’s borrowing capacity. Lenders know they’ll get their money back when you have a good credit score. People with good payment histories and high credit scores can get a bigger loan. Lenders may not want to give them more money if someone’s credit score is low. Approved for Premium Features on Your Credit Card Your income and credit score play a role in determining your credit card limit. Lenders will also review your credit score and report to figure out your eligibility. After that, they make decisions like on your credit card limit or letting you a rewards programme. Access to Balance Transfer Facility The Balance Transfer Facility allows users to save the most on their loans. Using this tool, people can move their main debt to a lender with a lower interest rate. Before transferring loan balances, lenders check the CIBIL score calculation of People. Those with good credit can easily use the Balance Transfer option. Those with bad credit may have trouble. Simplified Rental Approval Process Many landlords are using credit scores as part of the screening process. Your chances of getting a home are much lower if you have a low credit score. If you have good credit, finding a landlord willing to give you a chance to stay is much easier. Better Insurance Rates Insurance firms look at your credit history to determine your insurance risk. Insurance premiums tend to be more expensive for those with lower credit scores. If you have a good credit score, you will pay less for insurance than others for the same coverage. Some Ways to Boost Your Credit Score An ideal credit score is 750 or higher. It grants you access to the majority of loans. this is also subject to other factors like your income. If your credit score is nearer 900, the chances of your being accepted are higher. It is advisable to keep a high credit score. One never knows when one might need a loan. You don’t want to be in a position where you unexpectedly need a loan but are rejected because your score is low. These are some ways to consider if you want to keep a good credit score. Keep a good track record of repayment Pay off any loans or credit card balances you have on time and in full. Your credit score can reduce if you miss payments or pay them late. Paying off debts on time over a long period shows that you are responsible with credit. Don’t use too much of your credit The credit usage ratio shows how much credit has been used. Keeping your credit usage ratio at 30% or less shows that you don’t depend too much on credit. If you keep this, your credit score will go up. You’ll have a better chance of getting loans and credit in the future. Do not apply for loans from many places at once Don’t apply for and ask about loans from many different places at once. It shows that you depend only on credit. This increases the number of hard inquiries on your credit report. Both of these things hurt your credit score calculation. Avoid making partial credit card payments People can use credit cards to make minimum payments. These are typically 5% of the balance. This usually leads to people believing that the minimum payment is enough. But, the balance continues to earn interest at a rate of 3-4% per month. This is quite high. Also, as your credit card balance grows, so does your credit utilization. So does your credit score. Minimum payments result in high interest and a lower credit score. [B-02] Conclusion Your credit score is a major factor in most lending decisions. So, it is crucial to build and maintain a strong credit profile. Take the time to raise your credit score if you currently have a low one. It will help you later when you need a loan. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Home Loan

All the Deductions You Need to Know on Home Loans under Section 24

There are many advantages to being a homeowner. In addition to providing a lifetime of security, owning a home can be a wise investment because property values rise yearly. The best way to buy a house is with a home loan. The government provides several tax breaks and deductions on home loans, thus increasing the profitability and advantages of such loans. Section 24 of the Income Tax Act, Article 80C, Article 80EE, and Section 80EEA deal with tax rebate claims or deductions on home loans. This article gives you insight into home loan interest deductions under Section 24. [B-01] What are Tax Deductions? A tax deduction reduces the amount of taxes you must pay, in turn, reducing your tax burden. The amount of tax deduction is subtracted from your income, lowering your taxable income. This means that if your taxable income is minimal, your tax liability will also be lower. Property ownership also comes with tax obligations. A person’s real estate revenue is taxed considering their capacity to collect rent if the unit remains unsold. Under Section 24 of the Income Tax Act, the government offers several home loan reductions to help people buy property at reasonable rates. Tax breaks also motivate people to buy more assets and help them fulfil their dream of becoming homeowners. Home loan interest rates may be as low as 6.65%, and Section 24 offers several reductions even on that. Deductions on Home Loans under Section 24? Standard Deduction Standard deduction accounts for 30% of the determined net yearly value. This is permitted regardless of whether one has spent more or less money on the property. It also does not account for utility and maintenance expenses like power and water supply or insurance. The net yearly value of a self-occupied property is nil, so there is no standard deduction on such properties. Municipal Tax Deduction Municipal tax is the yearly sum paid to the local municipal body. Other taxes are calculated on the gross yearly value of the property, which, in turn, is calculated by subtracting the municipal tax from the net value of the property. A deduction on the municipal tax is allowed if the homeowner has paid the municipal tax within that fiscal year. Interest on a Home loan for real estate is deductible. If their own family lives in the house, homeowners are eligible for a deduction of up to Rs 2 lacs on the home loan interest. If the house is not occupied, the same rules apply. If the property is rented out, the complete amount of home loan interest is deducted. Section 24: Special Circumstances The following special circumstances are also covered under Section 24: The owner may claim exemptions for the interest if they do not inhabit the house. The extent of this exemption is not limited. If the house is unoccupied because the owner lives in another property (within or outside the city) where their workplace is located, they may only claim a tax credit on the interest up to Rs. 2 lacs. The brokerage or commission that must be paid to intermediary agents is not tax deductible. To receive the full tax deduction on the home loan interest amount, a person must acquire or complete the construction of the property within three years of taking out the loan. But one can claim a deduction of up to Rs 30,000 instead of Rs 2 lacs if the acquisition or construction is completed after three years. Section 24: Requirements for Deducting Interest from Income To be eligible for income tax deductions, a person must fulfil three requirements: To utilise the loan for building or buying a home, it must be applied for on or after April 1, 1999. One must have an interest certificate for the interest due on the loan obtained. The home must be built or bought within five years (three years until the Financial Year 2015–16) after the end of the financial year in which the loan was accepted. If the borrower applied for a loan to build, buy, rebuild, or repair a house before April 1, 1999, the interest deduction may be capped at Rs 30,000. Even though the deduction permitted by Section 24 can enable one to reduce their tax liabilities, there are several requirements they should be aware of: The only residential properties that qualify for the tax break under Section 24 are those that are fully constructed or those that are bought after the construction is finished. The pre-construction interest deduction is only permitted after the work is complete. Any tax benefits one earns under Section 24 are lost if they sell the house within five years of ownership. [B-02] Conclusion Land ownership is one of the most common long-term goals for most Indians. But home loan EMIs heavily deplete one’s income. So, a wise financial strategy is to make the most of the tax benefits that come with home loans. Borrowers of home loans may deduct interest under Sections 80C, 80EE, and 80EEA, in addition to Section 24. Piramal Finance, the leading source of financial services in India, has a range of blogs that help one plan their personal and home loan finances well.

08-11-2023

Mutual Funds

When is the Good Time to Invest in Gold Mutual Fund

Are you interested in purchasing shares of a gold mutual fund? But you’re not sure what kinds of gold investments are best to make or if there is ever a good time to invest in them. Let’s take a closer look at some of the best gold mutual funds that are available for investment in India. In this section, we go into detail about the purpose of investing in a gold mutual fund, as well as its taxable status, the elements to consider, and the best time to do so. [B-01] What are gold mutual funds? There is a specific kind of mutual fund known as a “gold mutual fund.” It puts its money into gold bullion or other gold reserves. Gold mining firms, gold bullion, and mining company stocks are the most common places to put your money without actually needing to get the thing itself. Mutual funds that invest in gold are a type of open-ended investment vehicle that uses the units issued by an exchange-traded fund (ETF) that invests in gold mutual funds. The value of the underlying asset is tied directly to the price of gold because it is stored as actual gold. One further application for these funds is as a hedge against the risk of an economic downturn. Some 10% to 20% of a diversified portfolio is often put into gold mutual funds to protect against the market’s ups and downs. What is the purpose of gold funds? The two main goals of these investments are wealth creation throughout the investing tenor and protection during market downturns. Gold’s price fluctuations have a significant impact on the performance of the stocks that are tied to it. For instance, a relatively little shift in the price of gold on the international market can have a disproportionately large impact on the performance of the company that is tied to it. Putting your money into the best gold mutual funds can be a good idea because their returns are often higher than those of the precious metal itself. The returns on long-term (8 years or more) gold mutual funds are determined by the current market price of gold. If gold prices rise by the time they are redeemed, the investor could see a sizable profit. Taxability of gold mutual funds Investors in gold mutual funds in India may be subject to taxes. The investors may be subject to additional taxes if the time between their initial investment and their eventual redemption is less than three years. The money earned is added to the investor’s other sources of income to determine their taxable total. ROI with a tenor of more than three years is subject to a lower rate of taxation (20%) and indexation requirements (indexation norms reduce this rate to 10%). In addition to any regular taxes owed, CESS may also be required. Long-term investments in gold ETFs do not incur capital gains tax. Neither the maturity nor the trading of gold mutual funds is subject to tax deduction at source by the Indian Income Tax Department. Who should invest in gold funds? Mutual funds that invest in gold are a good choice for those who want to reduce their overall portfolio risk. Due to SEBI oversight, investing in mutual funds is less dangerous. Gold bullion is a tangible asset that is relatively immune to the ebb and flow of financial markets. The money is being put to work here. Therefore, it is appropriate for moderate and conservative investors alike. Gold mutual funds are another option for those wishing to invest tax-efficiently. These investments are exempt from TDS and are subject exclusively to the taxes associated with the purchase and sale of jewellery. Factors determining the fluctuation in gold prices Gold is believed to have a negative association with stocks. Investors seek the safety of gold when the stock market drops because of a faltering economy or in catastrophic conditions like a global epidemic. Given the state of the market, this makes sense. To safeguard their wealth from the global pandemic and lockout circumstances, most investors sold their equity holdings and bought gold ETFs. The value of the dollar relative to gold mutual funds tends to go down. Gold mutual fund prices go up as the dollar’s worth goes down and vice versa. Gold prices around the world are quoted in dollars, so a drop in the value of the USD would have a positive effect on the value of most other currencies. So, now that you know what drives the ups and downs of gold mutual fund prices, you can assess which gold mutual fund is best for you. When is the right time to invest in a gold mutual fund? Gold can protect your wealth during periods of market uncertainty. But it can’t be your primary holding. For both long-term and short-term goals, you should have a core portfolio. Depending on your level of comfort with risk, you may want to look into equity and debt funds as potential vehicles for achieving these goals. Gold mutual funds are a good way to spread out your portfolio’s exposure to risk, but you shouldn’t count on earning as much as you did last year. Gold mutual fund holdings should make up no more than 10% of a diversified portfolio. Gold ETFs may offer low returns during times of economic growth. Those who invest in gold mutual funds do so in the hopes of hedging against a decline in the stock market. Don’t invest unless you’re sure you can reach this goal, or you might be let down. [B-02] Summing-up: The purpose of this article is to give a comprehensive examination of the best time to invest in gold mutual funds. Gold can be a good inflation hedge and portfolio diversifier, but it may not be the ideal choice if you’re looking to the future. It’s important to first determine how the gold fund will interact with your other investments. Apply for the best gold mutual funds, compare interest rates and features across banks, and get the best deal. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their research. Also visit Piramal Finance, which has more in-depth, educational, financial-related articles.

08-11-2023

Business Loan

All the Pros and Cons of Online Business Loans You Need to Know

You can apply for an online business loan almost anywhere with internet access. If your business is accepted, you can get money to run, improve, or grow it. Traditional business loans were harder to get, took longer, and were less realistic than online business loans. If you want one, you’ll only have to put in a little work to get a loan. It’s a great choice if you’re a busy manager or business owner who can only get away from work for a short time. [B-01] Different Online Business Loan Types Not all online business loans are granted the same way. You can choose from different kinds, such as the ones below:- Term loan Term loans are similar to regular bank loans in many ways. A lender would give you a large amount of money all at once, and you would pay it back with interest by making monthly payments. Business credit lines Similarly to credit cards, business lines of credit allow you to make any withdrawals up to a certain credit limit. Finance for equipment It’s available for computers, cranes, dump trucks, ovens, and ovens to pay for all or part of their costs. The equipment would be used as security, making it possible for the borrower to get it if there were a chance they would not pay back the loan. Finance for Invoices When you receive invoice finance, a lender gives you a partial advance on your invoices. You will pay the advance and associated costs over a defined period. Advances to merchants A merchant cash advance is an advance of funds depending on the credit card purchases. Within 48 to 72 hours, you can receive the money you require. Pros of Online Business Loan The following are some of the best things about online business loans: Quick online applications Usually, it takes little time to apply for business loans online. After entering your personal or financial information on the computer, laptop, tablet, or cell phone, you can send your request and wait for a response in just a few minutes. Quick funding After you’ve been approved, some online business lenders will immediately put your money in your account. Depending on the bank you choose, you might get your money within 24 hours, a few business days, or even the same day you sign up. Simple criteria Even if your business is new or if you have bad credit, you might still be able to get an online business loan. Several lenders are willing to look at more than just your background or credit score and have loose rules. Lots of possibilities In today’s digital world, there are many ways to make extra money. Banks, credit unions, and online lenders offer them different rates, terms, and benefits. Prequalification Some lenders will let you know if you qualify for an online business loan before you apply. After you answer a few questions about yourself, a lender can tell if they will give you a loan. The best part is that getting prequalified won’t hurt your credit score, so it’s easy to think about your options and compare prices. Nothing Attached Most of the time, you can put up your business property or car as collateral. Since most loans for online businesses are unsecured, you won’t have to worry about losing a valuable asset if your business fails. Cons of Online Business Loan The following are some drawbacks of Online business loan: Little Loyalty discounts Lenders offered other services, like checking accounts, savings accounts, and loyalty rewards. Lenders who only offer online business loans rarely reward customers for sticking with them. Everything happens online Most of the time, online business loan providers want you to fill out the application process online. After putting in your application online, you’ll also get the results. You will also fill out your forms online if you accept an offer. Users who feel uncomfortable doing everything online could get a mortgage loan from a traditional lender instead. No individualised service When you apply for an online business loan, you can go to a different place. Building a relationship with the lender and getting personalised service might take a lot of work. The good news is that you can typically contact lenders who provide online business loans by phone, email, and chat. Security worries If you want to use an online business financing option, you must give your personal and financial information online. Even though most lenders take careful steps to ensure their websites are safe, security may still be an issue. Benefits of Online Business As the world moves online, everything has to be bigger, better, faster, and more. Therefore, why would obtaining a business loan be any different? Cheaper The cost of things like site visits, office/branch infrastructure, overhead, and so on into account when setting the interest rate on a loan. Applications also save money because your bureau score doesn’t have to be pulled for each lender mapping. If you apply offline, each lender you talk to will pull your credit report, making it more expensive to borrow money. Faster Online is the fastest way to get money for a business. Since eligibility checks are based on algorithms, they can be done in minutes or seconds. Also, you only send in a lot of paperwork after your application has been submitted and approved. Also, you can rest easy knowing that copies of your valuable records aren’t being passed around for no reason. As much document validation as possible is also done online to save time. Processing speed is very helpful if you need a loan quickly because of an emergency because offline sources would take longer and cost more. Objectivity Every request to borrow or get a loan must meet objective standards based on algorithms. When applicants go to lenders in person, they are often exposed to subjectivity. This gets rid of that. Personal information, location, the biases of the evaluator, and other irrelevant factors are not taken into account. [B-02] Conclusion Online business loan interest rates can be useful if you’re a small business owner looking for capital. They are a quick and simple way to finance almost any business expense. But before you do, weigh your choices to determine which is best for your specific circumstance. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Which Is A Better Investment Option, Gold Or Fixed Deposit?

An investment is made for a better and safer future. In recent times, the investment market has been very volatile. Because of this volatility, some people have temporarily stopped their investments or are looking for a safer investment option. If you also don’t want to take unnecessary risks, investing in low-risk assets might be a better option. Generally, fixed deposits (FDs) and gold investments are low-risk investments. Because these two investments ensure proper and timely returns, they are the most popular ones. Though the gold investment market is a little volatile, it has cultural significance in India. In a fixed deposit, you can deposit an exact sum of money in the bank, and upon maturity, you will get a lump sum with high interest. The money in an FD is invested at a fixed interest rate for the tenure of your choice. Now that we’ve defined gold investment and fixed deposits, let’s see which is a better investment option: gold or a fixed deposit. [B-01] Gold Investments vs. Fixed Deposits (FD) Risks: Both gold and FDs are considered low-risk or no-risk investments. While gold prices can fluctuate in the short run, traditionally, they have been the safest option. In terms of economics, gold has always acted as a hedge against inflation and helped prevent major currencies from losing their value. So, the investment in gold has its own unique value. If we talk about FDs, they have guaranteed returns and aren’t affected by market volatility. But the interest rate and returns largely depend on your chosen tenure. The longer your tenure, the more and higher the return on your FD. Rate of Return: Gold investments, being traditionally and culturally significant, offer a higher rate of return than FDs. Gold has always been considered one of the safest investment options. On the other hand, fixed deposits are invested for a fixed period at a fixed interest rate. The bank sets the interest rate at the time of opening the account. So, in FDs, the return is guaranteed, but the interest rate is lower than gold interest. The plus point of FDs is that banks provide slightly higher interest rates to senior citizens (0.50%–0.75%). Liquidity: Liquidity means the ability to convert your assets into cash or acquire cash (via a loan). When it comes to liquidity, nothing compares to gold. Investors and buyers always prefer gold. Over time, the investment in gold has become more diversified. Other than holding physical gold, now you can invest in digital gold, gold ETFs, gold mutual funds, and sovereign gold bonds, to name a few. These investment options give you excellent returns and liquidity without the headache of storing gold in your home. While the returns on gold are great, they largely depend on the market situation. So, you need to be informed before buying and selling gold. On the other hand, in FDs, the liquidity completely depends upon the bank in which your FD lies. The other downside of FD liquidity is that if you want to liquidate your FD before maturity, you may need to pay a penalty. So, try to find a bank with a penalty-free exit on your FD. Loan Against Investment: Both gold and FD investments offer a loan of up to 80% of the value. You can easily get a loan against your FD or gold investment from your bank or NBFC partner. The interest rate for this type of loan is usually lower than the interest rate for personal loans. Income Generation: Gold investments are designed as an income source. Gold is an asset that accumulates wealth over time and acts as a hedge against inflation. Whereas, with fixed deposits, you can choose the frequency at which you receive the interest. This interest can serve as an alternative income source for you. If you don’t wish to take the interest generated from the FD, you can reinvest it to get better returns upon maturity. Taxation: The returns gained from gold investments come under capital gains; thus, you can get indexation benefits. On the other hand, interest earned from FDs attracts taxation. Though banks offer tax-saving FDs, they come with a lock-in period of five years. You can’t break that deposit or withdraw from it during those five years. However, if your investments are under Rs. 1.5 lakh, you can claim tax exemption as per Section 80C of the 1961 IT Act. ParametersGold InvestmentFixed DepositRisksProne to some market riskNo Market RiskRate of ReturnHighLowLiquidityHighLowLoan Against Investment~80%~80%Income GenerationNoYesTaxationNoYes [B-02] Conclusion In our analysis, we found that gold investments have better returns but are prone to some market risks. On the other hand, we see that fixed deposits have lower returns but are more secure against fluctuations. Both of these investments provide guaranteed returns. So, if you want better tax benefits, more flexibility, and higher capital gains, you should go for gold investments. On the other hand, if you like to play it safe and receive interest on your investments, the fixed deposit would be a better option for you. You can fix your finances in a period of 7 days to 10 years. Therefore, depending on your liquidity requirements, financial goals, and risk-taking ability, choose the right investment mode for yourself. Visit Piramal Finance’s official website to gain better investment insights. You can also read various blogs posted on their website. Do not forget to explore the various products and services they offer.

08-11-2023

Schemes

All You Need To Know About Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a Government of India savings scheme that is a part of the Beti Bachao, Beti Padhao scheme. The parents of a female child under the age of 10 can register for a Sukanya Samriddhi Yojana account at post offices or banks. The Sukanya Samriddhi Yojana account will remain active until the female child reaches the age of 21 or if she is married after reaching the age of 18. The Sukanya Samriddhi Yojana scheme is to encourage parents to invest in their daughters’ education so that they will have access to funds to pursue their higher studies and have a foundation for a good future. [B-01] Sukanya Samriddhi Yojana’s Eligibility Criteria Since the Government of India has made the Sukanya Samriddhi Yojana scheme available to all, you can create an account at any post office or bank. These are the eligibility criteria for creating a Sukanya Samriddhi Yojana account: Only a female child’s parents or guardians may create a Sukanya Samriddhi Yojana account. The female child must be under 10 when the account is opened. The account can remain active until the female child reaches turns 21. The first investment may start at Rs. 250 and the maximum investment amount is Rs. 1,50,000. A single female child cannot have multiple Sukanya Samriddhi Yojana accounts. Each family is only allowed only two Sukanya Samriddhi Yojana accounts, for two daughters only. A third account can be opened if a female child is born before twin or triplet daughters. A third Sukanya Samriddhi Yojana account can’t be created if a female child is born after twins or triplet daughters. How To Open A Sukanya Samriddhi Yojana Account You can open a Sukanya Samriddhi Yojana account at any licensed post office or bank by following these steps: Visit your local post office or bank to create a new Sukanya Samriddhi Yojana account. Complete the registration form with the required information and documents. Submit the initial cash deposit, check or demand draft. This initial amount can be from Rs. 250 to Rs. 1.5 lakh. The post office or bank will process your request and transaction. After verification and processing, your Sukanya Samriddhi Yojana account will be activated and a passbook will be issued. Sukanya Samriddhi Yojana Required Documents When opening your Sukanya Samriddhi Yojana account at the post office or bank, these are the required documents: Female child’s birth certificate Verification of the parents’ identity and residence Other KYC documents include voter’s ID, Aadhaar card and more Any other important documents requested by the post office or bank Benefits Of The Sukanya Samriddhi Yojana Scheme Sukanya Samriddhi Yojana, created as part of the Beti Bachao, Beti Padhao Yojana scheme, provides many benefits including: High Interest Rates Compared to other Government tax relief plans like PPF, the Sukanya Samriddhi Yojana scheme provides a good interest rate of 7.6 percent. Guaranteed Returns Because the Sukanya Samriddhi Yojana is a Government of India-issued plan, the funds are safe. Tax BenefitsThe Sukanya Samriddhi Yojana (SSY) scheme provides tax advantages up to Rs. 1.5 lakh per year. Adaptable Investments A minimum investment of Rs. 250 and a maximum investment of Rs. 1.5 lakh can be made per annum. This covers a wide range of people who have the flexibility to invest according to their financial situation. Benefits of CompoundingThe Sukanya Samriddhi Yojana scheme is a beneficial and lengthy investment plan since it offers yearly compounding. As a result, even small deposits can offer long-term profits. Easy Transfers The Sukanya Samriddhi Yojana account which is handled by the female child’s parents or guardians can be easily moved from one part of the country to another. Disadvantages Of The Sukanya Samriddhi Yojana Scheme Any investment plan has both pros and cons. Some of the disadvantages of the Sukanya Samriddhi Yojana scheme include: Set Maturity PeriodThe Sukanya Samriddhi Yojana scheme reaches its maturity at 21 years. Limit Of Two AccountsOnly two Sukanya Samriddhi Yojana accounts can be created. If a person has 3 daughters, that child will not be able to benefit from this scheme. But there is an exception when twins or triplets are born. No Early Withdrawal Except for the unfortunate demise of the female child, early withdrawal is not allowed. Varying Interest Rates The Sukanya Samriddhi Yojana scheme can adjust the interest rate charged on all small savings accounts every three months. Points To Know About The Sukanya Samriddhi Yojana Scheme These are some points to keep in mind about the Sukanya Samriddhi Yojana scheme: Account Maintenance and ChargesA discontinued account may be activated after paying a Rs. 50 fine for each year that payments were not made, in addition to the missed payments. Term Sukanya Samriddhi Yojana deposits must be paid for 15 years, from the time the account is opened. Early closure is allowed after 5 years in certain circumstances such as the demise of the female child or the parent/guardian. Account OwnershipParents of female children below the age of 10 handle their accounts. Once the children reach the age of 18, they can legally handle their Sukanya Samriddhi Yojana accounts. NomineesNominations are not included in the Sukanya Samriddhi Yojana scheme. [B-02] Conclusion The Sukanya Samriddhi Yojana scheme is a tax-free limited savings plan for female children in India which came into effect on 22 January 2015. Parents or guardians of female children can open a Sukanya Samriddhi Yojana account in their daughter’s name at their nearest post office or local bank branch with a minimum deposit of Rs. 250. This Government of India scheme aims to help parents who want to save money for their female children’s education. In helping parents invest money, the Sukanya Samriddhi Yojana scheme helps pave the way for female children’s future education. For more articles like one on different Government of India schemes, visit Piramal Finance to learn more!

08-11-2023

Other

All You Need To Know About Online Fraud And How It Happens

Online fraud has always been around. The shifting of commerce over to the internet has caused fraudulent parties to quickly set up their online fraud schemes. Although online fraud was always on the rise, it has become more prevalent post covid. The loss of jobs and the rising difficulty in finding new ones have led to the growth of more internet fraudsters than ever before. In these testing times of great vulnerability, it is important to keep a lookout for different kinds of fraudsters to stay safe online. Read along to find out the different types of online fraud and what you can do to better prepare yourself against it. [B-01] How does Online Fraud happen? Fraudsters often disguise themselves to be officials who demand seemingly unimportant information from you. You must know what potential the information that you allow others to have access to holds. It may seem negligible when you are bombarded with spam emails. But the source and frequency of these emails can tell you whether these are signs of online fraud. There is more to the spam SMS that you wake up to than what meets the eye. Some of the easy touchpoints for online fraudsters are as follows: Spam emails Spam calls Redirecting website traffic to websites of their choice Inserting malware into smartphones SMS and instant messaging What makes Online Fraud prevalent? Despite all the firewalls built around to prevent online fraud, fraudsters still get away with committing fraudulent crimes. It is becoming increasingly difficult to track them down since with an increase in people using online services there is an even bigger soar in the surfacing of online fraudsters. This has two potential explanations: One: Credit card information is easy to buy off and circulate. Fraudsters usually work in teams and work for glitches to work their way through and access sensitive information. Two: Online fraud is usually of the lowest tiers of priority when it comes to prosecution. It may not always be the first form of crime to be provided with redressal. This is due to the resource and time constraints that are attached to the sensitivity of information online. It isn’t easy to tap into private information within a short period. Different forms of Online Fraud Online fraud has varied forms; you must differentiate and analyse all its forms to stay better prepared. Listed below are some of the most prevalent forms of online fraud: Identity theft When a fraudster uses personally identifiable information that aids in illegal impersonation, it is categorised as identity theft. This is one of the most common kinds of online fraud, as it is easy for fraudsters to leak information to other fraudulent websites. This is done through various methods such as hacking passwords, getting hold of security codes, etc. Friendly fraud This type of fraud takes place in a very unassuming way. When a fraudster gets hold of your purchase information, it is easy for them to make changes to your purchases. The fraudster may claim that the order never reached them or that they had made the payment twice to benefit from the service provider. Physical fraud This is the most predictable type of fraud: a fraudster stalls your credit/debit card and makes purchases in your name. It is important to take immediate action if you realise that your card has gotten stolen or has gone missing. Disguised phishing In this type of online fraud, your credit card information or other sensitive personal detail is extracted via a fraudulent SMS or email and used to make unauthorised purchases. Beware of messages that ask you to click on a link or install faulty malware. Fraudsters online often pose to look credible and promising. Triangulation fraud This type involves the fraudster setting up a fake website that is very similar to a real one. When you order something from this website, this transaction is used to collect your data and credit card information. Once the fraudster gets their hand on this information, they order off the real website and send the order to you. This order would have been purchased with your credit card details, and you ended up paying twice. Preventive measures against online fraud With adequate knowledge and precautionary measures, you can stay away from online fraudsters. Use an up-to-date and reliable third-party payment processor Use credit code verification (CVV) and address verification systems (AVS) Make sure all the websites you purchase from are secured with HTTPS If you run an online business, use updated and high-quality software to protect it While doing high-risk transactions, invest in a good fraud detection software If you run an online business, make sure your fraud risk assessment is in check [B-02] Conclusion Online fraudsters have been better equipped than ever to access personal information. The government has even launched a national helpline to better contain online fraud. The helpline is controlled by the state police and functions in several states and union territories. The defrauded money is tracked along its trail, and measures are taken to stop its further flow. Even public and private sector banks are on board with the helpline and its reporting platform to better assist customers like you to stay protected against fraud online. But prevention is better than cure, and being aware of the different perils of online fraud can help you conduct easy and secure transactions. It is important to ask the right questions and to seek the right solutions. That is why financial advisors such as Piramal Finances are much sought after. Because when it comes to putting your hard-earned money online, it is important to be cautious every step of the way.

08-11-2023

Business Loan

Why Should You Choose a Piramal Finance Business Loan?

When you are a business owner, you must ensure that there is enough money to take care of all business-related costs. You may need money for daily expenses, acquiring assets, buying raw materials, and much more. But as is the case with most business ventures, you may face cash flow problems at some point. As a result, there might be problems running your business operations smoothly. Why face such a scenario when you can opt for a business loan? Many banks and NBFCs offer business loans to owners whose profiles meet their rules and have a good credit history. Based on how much money you need, you may or may not need to offer security for a business loan. Thanks to the internet, now the process for a business loan has become very quick as you can apply for an online business loan in a few minutes. If you want a great deal on your business loan interest rate and want a high-value loan, then your search ends with Piramal Finance. They offer great deals on business loans and complete the process in a few days. Read on to learn why a Piramal Finance business loan is your best option. [B-01] Piramal Finance business loans Taking a business loan involves risk, and you must select the best lender for this need. If you opt for a private lender, they might charge a very high business loan interest rate, putting your business at risk. Hence, you must compare various aspects of the business loan before you select one. Piramal Finance is a well-known NBFC in India that offers various loans. They can offer you very good deals if you need an affordable business loan interest rate in a short time. Over the years, Piramal Finance has made a great name for itself in the market and helped many business owners grow quickly. Some of the business loan types that Piramal Finance offers are: Secured Business Loan: You must offer security to get this online business loan. This security can be an asset or a property in your name. You can get a business loan of up to Rs. 25 lakhs at a low business loan interest rate that starts from as low as 12.5% p.a. Unsecured Business Loan: If you do not offer security, you can go for this business loan. You can get a loan amount of up to Rs. 10 lakhs with this facility and can use the amount for any business purpose that you may have. The loan tenure, in this case, is 36 months. Loan Against Property (LAP): If you have great business plans but are short on money, then a LAP is a great option. You will need to offer a property as security for this business loan. Then you can get a loan of up to Rs 3 crore for any business purpose that you may have. The business loan interest rate, in this case, will start at 11.5%. Working Capital Loan: If you need money to pay for daily expenses like salary, wages, freight, utilities, etc., then you can get a working capital loan from Piramal Finance. Here, you can get a loan of up to Rs 10 lakh quickly and then take care of any urgent needs that your business has. Debt Consolidation Loan: If you have many debts in your business with high interest rates, then you can opt for a business loan. With interest rates starting at as low as 11.5%, this loan can help you pay off all the debt, and you will only have to pay a single EMI, which is easy to handle. Professional Loans: If you are a doctor, engineer, CA, CS, or any other professional and want to start your practice, then Piramal Finance offers a great online business loan. You can use this loan to set up your office and give wings to your dreams. Why Choose Piramal Finance Business Loan? Many reasons make an offline or online business loan from Piramal Finance a great option. Some of the main benefits are listed here: Process: Most of the business loan process is completed within a few minutes. The only offline part will be to verify your details. The entire process takes a few days, and the money is credited to your account within a few hours after approval. High-Value Loans: You can get a secured business loan of up to Rs. 3 crores and an unsecured loan of up to Rs. 10 lakhs from Piramal Finance. Such high-value loans can not only pay for urgent needs but also grow your venture quickly. Multiple options: You can opt for a range of business loans as per your needs. This includes secured loans, unsecured loans, LAP, debt consolidation loans, professional loans, and many others. The amount will depend on your profile, credit history, profitability, and needs. Low Interest: You can avail of a low business loan interest rate for your loan from Piramal Finance. Interest rates for secured loans start at as low as 11.5%. This means lower EMI and less stress on the finances. [B-02] Final Takeaway Hence, taking a business loan from Piramal Finance can be a good option when you need money for your business. They provide many types of loans to help you take your venture to the next level. For more information, you can go to the Piramal Finance website and learn how to get a business loan at affordable rates.

08-11-2023

GST

Apply for GST Business Loans in India

Many loan seekers often find themselves in a state of urgency without proper funding or capital. The long duration of filing for loans and the sheer number of documents to be submitted do not help in these situations. But a GST business loan is an opportunity for GSTIN holders to avail themselves of collateral-free business loans. You do not have to mortgage any property. The loan is paid by your GST return. This aids in boosting your business. It is one of the most beneficial aspects of having a GST registration. Based on the GST returns provided, lenders assess borrower eligibility and approve a suitable loan amount accordingly. Companies and establishments can avail themselves of high-value GST loans. These offer solutions for quick business financing. This is an ideal opportunity for working capital funding needs both in the long and short term. [B-01] Perks of a GST business loan A GST business loan is one of the most beneficial loan sources provided in our country. The only document required for a GST business loan is your GST return document. Some of the vital positives of a GST business loan are: Free of collateral GST business loans remove the need for submitting a lot of paperwork to pass a loan. It is a very common situation that SME business owners find themselves in when they are denied a loan due to a lack of collateral. Under the GST loan, you can submit your returns and KYC documents along with a few essential business details. You can easily get a business loan based on the GST number. Faster disbursals Waiting for loan approval can be tiresome. As a business owner, you might not always have that much time at your disposal. Your operational cycles may be interrupted. The delay could negatively affect your production. Or you may even miss out on a potential business opportunity. Whatever it may be, it is of no use to stand and wait long hours when you can easily have access to GST loans. Under the MSME GST loan scheme, it is possible to avail of quick loans just by uploading your documents online to your lender’s site. It lets you keep your business on track. Whether you need money for a purchase or cash flow to grow your business, if you file your GST on time, your loan will be approved. Make sure to file your returns on time. Doing so can help you take control of your business. The GST is mandatory for business loans. Multi-purpose loans While filing for a GST business loan, the provider does not ask you the purpose of your loan. The funds available can be used for any commercial purpose. This makes it a very flexible loan choice. You can use it to meet your working capital requirements, equipment purchases, and business expansion, among other things. When to take a business loan A GST business loan is an efficient choice for a lot of reasons. But the two most important reasons that make a business loan a pressing choice are as follows: Urgent working capital requirements If your establishment is short on working capital, then GST loans are the way to go to get immediate funding for your account. Because of the factors mentioned earlier in this article, a GST business loan is a quick and easy way to get funding without the conventional time delay. Lacking financial documents Filing for GST on time is crucial to acquiring a business loan on time. It’s okay if your documents aren’t in place or if there are a few lacking documents. The biggest advantage of a GST loan is that lenders look for a bare minimum of financial records in addition to your GST return when approving your GST loan. Eligibility and documents required for a GST loan As the name suggests, a GST business loan can only be used for business purposes. Private limited companies, partnership firms, public limited companies, and sole proprietorships are all eligible to avail of a GST loan. It has also been seen that the different interest rates on GST for different types of businesses are caused by your credit history, the nature of your business, and the amount of your GST return. The documents required for GST loans, although few, are to be viewed very carefully. The standard documents for any GST business loan approval are the latest GST invoice sheet, a copy of your PAN card, and a duly filled application form. If you are looking for funding help for over Rs 20 lakh, it is mandatory to furnish the last two years’ audited financial statements, such as the profit and loss statement, balance sheet, and the last two years’ Income Tax Return (ITR). [B-02] In conclusion Insufficient documentation and a lack of collateral are two main reasons that prevent SMEs and other establishments from having access to business loans. Individuals who are just beginning to establish their businesses find themselves in a more difficult situation. A GST business loan is of primary importance in these situations. This is because you can obtain funds quickly and efficiently without having to deal with tedious paperwork or long lists of collateral. It is mandatory that, just like any business loan, a GST loan be repaid with the interest amount every month. To learn more and gain knowledge about GST Business Loans, connect with the financial experts at Piramal Finance.

08-11-2023