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Personal Loan

5 Things to Know about Gold Loan Interest Rate Calculation

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

08-11-2023

Personal Loan

5 Times a Personal Loan Can Help You Out in Emergencies

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

08-11-2023

Cards

7 Warning Signs of Wrong Credit Card Usage

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

08-11-2023

Home Loan

Advantages And Disadvantages of Home Renovation Loans You Need To Know

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

08-11-2023

Schemes

Advantages and Disadvantages of NPS

Every trading plan has pros and cons. By knowing both, you can make the best investment choice. NPS, or the National Pension Scheme, is a private, fixed-contribution retirement savings plan. It allows you to make the best choices for your future by making systematic saves during your working lives. The National Pension Scheme (NPS) is a government-based pension plan. It is a tax-saving strategy under Section 80C. In India, NPS, like EPF (Employee Provident Fund) & PPF (Public Provident Fund), is an EEE (Exempt Exempt Exempt) tool. Its key goal is to build retirement funds. The investment also gives tax perks. But first, let’s study the definition and the advantages of NPS. [B-01] What Exactly is NPS? NPS ranks among the greatest investment plans overseen by the Regulatory & Development Authority for Pension Funds (PFRDA). The PFRDA set up the National Pension Scheme Trust (NPST), which serves as the rightful owner of all funds under this investment scheme. NPS stands for the National Pension Scheme. Initially, the advantages of NPS only applied to Central Government workers. However, NPS advantages are now open to all Indian nationals. It is very helpful for those employed in the private sector who need a monthly post-retirement salary. NPS is scalable across vocations and places, offering tax breaks for inputs under Sections 80C & 80CCD (1B). How Does the National Pension Scheme Work? National Pension Scheme is a market-linked pension plan in which you may invest monthly until you retire. Skilled fund managers are in charge of these investments. At the age of 60, you may take 60% of the sum, but the rest 40% must be invested in an annuity. This annuity may help you create a stable income once you retire. Advantages of The NPS Scheme Make Fund Managers’ Investments All funds placed by you are invested by expert, skilled, and experienced fund managers. Funds are controlled by the PFRDA or Pension Fund Regulatory & Development Authority. The assets are invested in a variety of portfolios that include corporate shares and bonds, bills, & government bonds, along with many other things. This is done in conformity with specific approved investment rules to get different advantages of NPS. Higher Profits Investing in Tier 2 accounts of an NPS scheme results in higher returns that grow to be large at the age of retirement. The assets that collect in the Tier 1 account also pile up funds for pension and help to get different advantages of NPS. Savings in ploys such as the EPF (Employees Provident Fund) grow at a very slow rate. This is because all assets are in debt tools as well as federal bonds, which rarely offer yields higher than the rate of inflation. So, a large part of NPS assets is directed towards the stock market, and the interest earned is higher. While NPS pay-outs in the type of pension plans & annuities are subject to tax, the yields are still much larger than the EPF. There Are No Barriers To The Intensity of Donations You can deposit funds in any of the NPS profiles on a yearly, semi-annual, quarterly, or monthly basis. You can also raise or reduce account donations so that the least donation (of Rs. 6000) is formed to avail different advantages of NPS. Low Investments Tier 1 accounts can be opened for Rs. 500, while Tier 2 accounts can be opened for Rs. 1000. The funds can be placed by check, credit, or demand draft. Simple Paperwork You can easily join the scheme via various channels. You only need to fill out the NPS form and provide proof of identity & address to enjoy the various advantages of NPS. Larger Canvas & Broader Coverage The scheme is open to all Indian citizens and NRIs. It has a broad age range, ranging from 18 to 60 years. At first, it was only open to government employees, but later (from 2009 onwards), anyone, including freelancers, self-employed people, and businessmen, can invest in the scheme. Simple to Use The plan is easily accessible, and you can easily sign up for it by visiting a nearby private or public sector bank. Disadvantages of NPS Aside from the advantages of NPS, this scheme also has its own set of drawbacks. These include: Withdrawal Limits Just before you reach the age of 60, all withdrawals are barred. You can make the very first withdrawal from the NPS after ten years of opening your account and a total of three withdrawals until the age of 60. The withdrawal sum cannot exceed the total amount of your contributions. Employer donations to the employees’ NPS fund are not deemed subscriber investments. Withdrawal Taxation When the scheme matures, the NPS case, which you can use to buy annuities or draw pensions, becomes taxable. The Indian government taxes 60% of NPS investments, while 40% is tax-free. Other products, such as the Public Provident Fund as well as EPF, are not taxed when they mature. You can also invest in mutual funds (equity), which offer much higher returns and aren’t taxed when they mature. Account Opening Limits You can only have one NPS account your whole life. While the PRAN (Permanent Retirement Account Number) could be easily shifted across geography & jobs, only one PRAN will receive the sum. Investment Limits You cannot invest more than 50% of your total investment within the NPS account in stocks. No Guaranteed Returns Since NPS is a national plan, the corpus is made based on the returns produced by corporate bonds, federal securities, & equity. As a result, market changes can hurt your returns/gains. NPS Funds in Several Locations NPS has three funds available for you. These are: A firm’s funds Stocks Government securities You may invest up to 100% of your money in the government securities fund & corporate assets. The investments are made by: Active choice: You have the choice of picking where to invest your money. Auto selection: When the fund manager makes investments based on the investor’s age. [B-02] Conclusion Now that you are aware of a few of the key pros and cons of the NPS scheme, you can pick whether or not it’s the best choice for you. NPS, like any other investment, has some drawbacks. However, the majority of NPS advantages were willfully set up to meet the scheme’s many goals. If you want to learn more about the benefits of the NPS scheme, visit Piramal Finance and explore the products and services they offer.

08-11-2023

Bonds

Advantages and Disadvantages of Sovereign Gold Bond (SGB) Investment

Gold is a great asset. It not just adds worth to a sovereign gold bond investment account but also helps expand it. Financial experts advise that at least 10%-20% of an investment portfolio’s assets be invested in gold. The key reason is that gold is a great buffer against currency and inflation risk. Buying gold bars, gold coins, or even Sovereign Gold Bonds & Gold ETFs are all ways to invest in gold. All of these have benefits & drawbacks. This blog goes into great depth on sovereign gold bond investments. [B-01] What exactly is a Sovereign Gold Bond? Sovereign gold bonds (SGBs) are federal assets issued by the RBI on the government’s behalf. They are priced in gold, with one gram of gold indicating one unit. These debt methods pay a set rate of return on investment. You may sell them in the resale market and profit from capital gains. You may invest as little as one gram and as much as 4 kilos in these bonds. Yet, the maximum limit for trusts and firms is 20 kgs, as determined by the government at any given time. Sovereign gold bond investments can be held singly or jointly. The limits also pertain to the first bidder in the event of a joint request. You may apply for a sovereign gold bond investment at nationalised banks, listed private and global banks, authorised stock markets, Stock Holding Corporation of India Ltd., and specified post offices. These bonds may also be applied online via the websites of known commercial institutions. SGBs are stored in the form of certificates and may also be disintegrated. As a result, there is no chance of theft or extra storage costs. The Benefits of Sovereign Gold Bond Investments The following are some of the benefits of Sovereign Gold Bonds: Safe Gold bonds are a secure method to invest in gold since the Indian government supports them. Also, since it is a computer or paper-based method of investing in gold. Hence, it doesn’t involve the risks linked with classic gold ornaments. Returns In most contexts, the government issues gold bonds at a discount to the average market value of gold. The cost of pure gold is the yield of sovereign gold. As a result, once the bonds mature, you will get cash equal to the present gold price. You will also get a set yearly rate of interest of 2.5% just on bonds, paid semi-annually. It is vital to recall that this rate will be set by the contract price rather than the actual gold price. Also, unlike gold ETFs and gold funds, SGBs do not have an annual fee. Allocation of Assets Sovereign gold bonds can assist with asset allotment in your investment portfolio. Low Initial Investment Investment in SGB is a low-cost way to get into gold. You must invest a minimum of one gram of gold in the sovereign gold bond scheme. Tax-efficient If you pay your bonds beyond maturity, that is, after 8 years, there is no capital gains tax. Yet, indexation gains are available if you exchange after the 5th year. Drawbacks of Sovereign Gold Bond Investments Gold bonds, like all other investment options, have some drawbacks. Long Maturation Time Many of you may be put off by gold bonds’ eight-year maturity duration. Although the maturity term is lengthy, it might assist you in avoiding uncertainty in the price of gold. Only Available in Tiers Unlike other investment choices, you cannot buy sovereign gold bonds at any time. You may readily deal in sovereign gold bonds from the main market during a set time on the RBI’s calendar. Capital Loss Since the bond’s worth is closely linked to the price of gold on global markets, investing in SGB can result in a monetary loss on your original investment if the gold price falls to the price of gold at which you got the bond. Yet, gold is a valuable asset, and the Indian government is focused on keeping its cost stable. Furthermore, the odds of having a capital loss are small if you hold until maturity. Nonetheless, the danger of capital loss can’t be ruled out. Who Should Consider Investing in SGBs? Sovereign gold bond investments are a good option if you wish to expand your portfolio with gold exposure. This is a low-risk investment. It also gives a semi-annual fixed income. You do not have to spend a lot of money on this asset. The cost of purchasing/selling SGBs is inexpensive as compared to actual gold. If you do not want to deal with storing actual gold, you may choose this kind of investment, which you can hold in Demat form. Is Now a Good Time to Invest in the Sovereign Gold Bond Scheme? As the government sells sovereign gold bonds, they are low-risk investments. Therefore, those with a long investment view might consider investing in such bonds since gold prices are projected to rise in the long run. When the price of gold falls, it is the greatest time to trade in sovereign gold bond investment. Why Should You Consider Investing in SGBs? The following are some of the primary reasons to invest in gold bonds: These bonds may be used as collateral for loans. Sovereign gold bond investments have an annual rate of interest of 2.5% based on the issuance price. Payment for these bonds may be done in cash. It is permitted up to a limit of Rs. 20,000. You may also make the payment via demand draft, check, or e-banking. As gold bonds are sold as Government of India stock, they provide security. After the specified time, generally 5 years from the date of investment, you may trade them on a stock market. [B-02] Conclusion Sovereign gold bond investments enable you to avoid buying actual gold and suffering storage costs. They also allow you to benefit from price variations in real gold without purchasing and holding the gold for the upcoming sale. If you want to learn more about sovereign gold bond schemes, visit the Piramal Finance website and explore their products and services.

08-11-2023

Health Insurance

Advantages of Employee Health Insurance Policies

Your most vital asset is your health. A lot of it is up to you and the way you conduct your life. It is totally up to you whether or not you wish to live a healthy lifestyle. Despite the measures you take, you may get ill and end in a hospital bed. And at that time, you begin to be troubled by skyrocketing medical costs in addition to your bad health. This is why getting health insurance is so critical these days. Health insurance policies are so worthwhile that most firms now include them in their employee benefits package. Some firms pay the charges, while others pay half and withhold the other half from the workers’ wages. [B-01] The Meaning and Scope of Employee Health Insurance Policies Firms buy employee health insurance policies to provide financial aid to their workers. Employees profit greatly from health insurance packages. These are known as the vaguest plans. The cost paid for group plans is lower when compared to other forms of health insurance policies. The risks involved are dispersed among a firm’s personnel. The advantages of this sort of health insurance plan may be extended to the workers’ immediate family in certain instances. Health Insurance Policies Benefits For Employees Employees of small firms may benefit from lower-cost group health insurance policies via their firm rather than having to obtain high-premium individual health care coverage. You can also get full coverage for your loved members at a much-reduced cost. Also, workers’ premiums might be paid pre-tax, reducing their total taxable income. Reduced Costs as A Result of a Bigger Risk Pool One of the benefits of health insurance policies for workers is the larger number of persons in the pool (group) that is covered. When more users are included, more people have more alternatives, usually at a lesser cost than would otherwise be accessible. In a nutshell, this means: Better insurance options are available. Insurance policies at a cheaper cost. More protection for those with pre-existing conditions. When you carefully evaluate the benefits of health care insurance, it is clear that there are several reasons to take it from the employee’s point of view. Employees who are eligible for this type of insurance via their company should take advantage of it. This is because the cost reductions are often substantial, and the additional benefits of health insurance policies surpass what a person might get from a personal insurance plan. There are situations when this is not the greatest option, but most of you do not find that private insurance is superior. Tax Breaks for Employers That Provide Health Insurance to Their Workers The benefits of corporate health insurance go beyond the employee. A small firm health care tax credit is also offered to employers. This is open to employers that give insurance to their workers and pay an element of their premiums. These firms may be eligible for a tax credit to reimburse them for the funds they spend on insurance plans. From the standpoint of the employer, this is one of the most vital benefits of group health insurance. Employees Who Are Satisfied at Work Employees that are satisfied work hard for the firm. This is one of the hidden benefits of group health coverage. You may get the following benefits if your firm provides this insurance: You who value your health insurance. You are invested in your employer and your work. You who envision a future with the firm. You who believe you are regarded and appreciated. You want to improve the firm for the benefit of everybody. All of these are vital benefits of group health insurance. They may go a long way toward improving the working relations of both workers and employers. Having insurance will not, of course, address all of your firm’s or employees’ concerns. It may help workers and bosses feel better about all they have at a certain firm. It is an insult to suggest that finding talented users that remain around in today’s job sector is hard. Aside from better pay, what can you give employees? Group health insurance is a great place to start, as the youth of today focuses more on preventive care and living a healthy life. One way to entice and keep strong recruits is to offer a cheap group plan choice. The firm should offer an insurance plan that covers these key health benefits. Insurance is a vital context of feeling secure and at ease. When firms offer insurance to their workers, it is not generally overlooked. Why Do Firms Provide Health Insurance to Their Employees? Almost all firms now provide health insurance to their workers. This helps them retain people, which improves employee efficiency. Employees believe that the firm for which they work cares about them. Some of you choose not to purchase health insurance. This is a huge benefit for you, particularly when you or any of your key family members are in the hospital. What Do You Say to Workers Who Don’t Believe Health Insurance Is Necessary? Telling folks how much they may spend privately is an easy way to convey how valuable having employee health coverage is for them. Most of you cannot afford to pay for medical expenses out of cash, at least not without losing whatever savings you may have. Health insurance for your workers will be less costly than if they bought it on their own and as a group. You will have greater control and ability to negotiate to guarantee that the cash you invest in insurance is wisely spent. [B-02] Conclusion Health insurance plans are famous for being complex. Employee health insurance policies, on the other hand, are quite basic. This is due to the fact that they are general and intended for a big set of people. As a reason, there is no space for alteration. This improves the buying of this insurance. An employee health insurance policy may help a huge number of people since it provides coverage with little problems. If you want to learn more about the best health insurance policy, visit the Piramal Finance website and explore the products and services.

08-11-2023

Home Loan

All The Features and Benefits You Should Know of Loan Against Property

Loans have become an essential part of modern life. It is considered a helpful tool for meeting long-term and short-term monetary needs during your journey. With changing lifestyles and increased demands, it is essential to plan your finances. Even though investments produce returns, some life milestones, like a child’s education, marriage, or a carefully planned international vacation, call for extra funding. So, getting a loan against property is useful. It is also named a mortgage loan. It allows people to use their assets as collateral. You can use this loan to cover major expenses or for personal use. This loan is available from banks and other financial institutions. It is secured by real estate on a home, a business, or a plot of land. [B-01] Purpose of Loan Against Property You can achieve your personal or professional goals easily with a loan against property. It is a secured loan. Getting one is easy as long as you are the legal owner of the property. This loan is available from the majority of top banks. It can be used for any personal needs, which include a wedding, education, medical expenses, or other financial needs. Mortgage loan interest rates range from 8.00% p.a. to 20% p.a. With mortgage loans, you can get loans with a maximum value of Rs. 25 crores and a maximum term of 20 years. Features of a Loan Against Property A loan against property is a basic loan product. It is secured by the mortgaged property. These are some of the primary features of this kind of loan: Banks have different loan amounts. The typical loan amount is up to 60% of the property’s market value. The sum is between Rs. 10 lakhs and Rs. 7.5 crores. The interest rate offered is competitive. It has longer pay-back terms. EMI allows for simple repayments. For this kind of loan, most banks only need a few documents. Processing only takes 3–4 days. The minimum age limit is 21, whereas the maximum age is 65. Self-employed people, salaried professionals, and IT analysts can all apply for this loan. Benefits of a Loan Against Property in India Several Uses You can put the money you get from a loan against property to many different uses. The lender doesn’t care if you use it for personal or business purposes. There are no restrictions. The ways you can use a loan against property may differ from lender to lender, but in general, you can use it for: Higher education or education abroad Marriage or Wedding Healthcare emergencies Combining debts with high-interest rates Growth of a business that already exists Remodelling/building a house Improvements to business infrastructure High Amount of Loan Approval One of the best things about a loan against property is that you can get a huge loan. In a loan against a property, the loan amount is based on the property’s fair market value. They do this with the help of a number called the loan-to-value ratio. Lenders grant you up to 70% to 80% of the property’s fair market value for the loan term. 70% to 80% is up to 15 crores, a large amount compared to other secured and unsecured loans. Fair Interest Rates A secured loan gives the lender something to fall back on if the person doesn’t pay or pays late. So, some security is needed to get a loan. For this reason, lenders offer loans against property with lower interest rates than other mortgages or secured loans. Different lenders charge different interest rates for loans secured by a property. It is around 8% to 10% per annum and can go up to 20%, depending on the lender. This low-interest rate maximises a loan against property and simplifies EMI payments. Property Categories Vary for Collateral You can use many forms of property as collateral for a loan against property. Lenders approve loans against residential and commercial property. Lenders with your best interests often approve industrial security. They will also verify the self-occupied, rented, and unoccupied properties. The property should not have any legal problems. Co-owned properties can also be used as collateral for a loan against property. Yet, standards differ by lender. Flexible Repayment Tenure Flexible and easy repayment terms allow you to pay EMIs promptly and without hassle. Secured loans, like a loan against property, can be repaid over 15 years, compared to 5 to 7 years for unsecured loans. The longer time frame doesn’t stress the person, lowering their EMI payments and interest rates. It helps you decide your financial needs and set aside your EMI. Fast Approval Loans against property have a faster application and verification process than unsecured loans. Unsecured loans lack collateral. So, lenders can’t rely on them. Lenders thoroughly assess the person’s repayment capacity during the screening and eligibility process. Online loan applications are convenient and time-saving. Same-day loan approval is typical. Minimal Documentation Another benefit of a loan against property is that the application for the loan doesn’t need much paperwork. Unlike the documents needed for a home loan, a loan against property only requires minimal paperwork. The person must give the following: Address proof Identity proof Bank statement proof (Salary credit statement, operative bank account statement) Proof of income or employment (such as a pay stub, letter of employment, tax return, profit-and-loss statement, or balance sheet) Property/ title documents Small Foreclosure Fees Loan against property has low-to-no foreclosure fees. Most banks or NBFC lenders charge between 2% and 4% of the outstanding principal plus taxes. Some lenders don’t charge this. You can close your property-secured loan for a minimal or no fee. Consider the lenders who mention every processing fee in loan documents. [B-02] Conclusion The loan against property is great for people who have assets that are not being used. Being a secured loan, a loan against property is simple to get with only a few needs. It includes the property and KYC documents. When considering a LAP, assess all the pros and cons carefully. If you can’t repay the loan, you risk losing your home. It is crucial to have enough income to repay the loan. For more details on loans against property, you can visit the website of Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

What Will Happen If a Personal Loan EMI Bounces?

Most loans often come with a provision for equated monthly instalments (EMIs). You become a defaulter if you do not pay your EMI on time. Lenders offer a few solutions to mitigate such risks. The solutions offered depend upon various factors like your CIBIL score and your past payment history with the lender, but there are consequences to missing the payment/EMI due date. So, what happens when you default on personal loan payments? The article focuses on the consequences of missing a personal loan EMI payment. It discusses the different ways to avoid defaulting. We also provide you with an idea of the short- and long-term consequences of an EMI cheque bouncing. However, before delving into the consequences, you must understand the types of defaults. What are the default types on personal loans? Most banks and financial institutions categorise personal loan defaults into two types, as follows: Critical defaults Major payment defaults occur when you have gone more than 90 days without paying. Lenders will not work with you if you have a default history. A personal loan account is classified as a non-performing account (NPA) when payments are overdue by more than 90 days. Minor defaults Personal loan payments delayed by less than 90 days are considered minor payment defaults. In such cases, your CIBIL score will suffer. However, this problem is temporary, as the score can once again increase. You need to make payments on time. What are the consequences of missing an EMI payment on a personal loan? Missing a personal loan EMI can affect you in the following ways: Your CIBIL score may decrease. The most visible effect of missed personal loan payments is a drop in credit scores. To qualify for a loan from any financial institution, you need a CIBIL score of 750 or higher. If you miss an EMI payment, your credit score can go down. The decrease in your credit score depends on your payment history. Your creditworthiness decreases. The credit report includes your payment history and credit score. Personal loan applications with high CIBIL scores are rejected if they include negative remarks. Lenders will classify you as a high-risk borrower if you have negative remarks. These remarks show the lenders your probability of making the EMI loan payment on time. You have to pay penalties. Many banks and financial institutions charge late fees. The fee is between 1 and 2% of the total EMI amount. Some institutions may also include other penalties if you default several times. These penalties are mentioned in detail in the original loan contract. You get a visit from reviving agents. When the default period on an EMI exceeds 90 days, the financial institution will send an agent to collect the balance. Most lenders give a 60-day warning before the personal loan account becomes an NPA. You will have to pay extra charges if your account becomes an NPA. So, it is better to avoid such complications and pay your EMI on time. How do you avoid missing a personal loan EMI payment? You can use some strategies to ensure that you do not miss your EMI payments. These can help you plan your finances better. Keeping this in mind, here are some solutions that you can consider to prevent delaying payments: You will need a financial plan. Devise better financial preparations to reduce the likelihood of delaying the payment of your personal loan EMI. Most people know in advance if they can afford the EMI payment in a month. Therefore, you should create a plan and manage your expenses to pay the EMI. With the right plan, you will have fewer chances of defaulting. You can reduce the EMI. Talk to the lender about your financial situation if you are worried about missing an EMI payment. Many lenders give their customers a lower EMI by extending the tenure of the loan or by turning an unsecured personal loan into a secured loan. You can split the pending EMIs into multiple payments. You can also make pre-payments of your loan to manage your EMIs effectively. It is another preventative measure that you can use to manage EMIs for the loan you have taken. Making pre-payments a regular intervals for your loan is a good option if you have additional income. [B-02] Conclusion This article examines the consequences of missing a personal loan EMI. Go through the personal loan EMI plan before selecting a loan. You can also compare interest rates and EMIs when applying for a personal loan to get the best deal. However, remember that selecting the wrong EMI payment plan can have consequences. Choosing an EMI plan outside of your capacity will affect your CIBIL score and creditworthiness. Before you make a decision, consult an expert and read all the details. To learn more about personal loans, visit Piramal Finance for more in-depth finance-related articles.

08-11-2023