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Business Loan

Business Loan Interest Rate in 2022: Everything You Need To Know

A business loan is an excellent option if you are looking for funding for your startup. It can help finance all your business activities. Whether it’s better infrastructure or paying your employees’’ salaries, your business loan can be a saviour. But what about the business loan interest rate in India? Is it too high? Well, the average interest rate for business loans is around 13-20% per annum. Read on to learn about startup business loans and their interest rates. [B-01] Interest Rates and Other Details About Startup Business Loans Interest Rate 17 to 20% per annum Service Charges 4% of the loan amount plus taxesMinimum Loan amount 3 lakhs Maximum Loan amount 10 lakhs or more Tenure 3 years to 15 years, depending on the lender Eligibility to Apply for Business Loan You should be between 23 to 65 years of age. You can be a salaried or self-employed person. Both professionals like lawyers and doctors and non-professionals like entrepreneurs can apply for business loans. You should have a strong business plan. You must have a registered property under your name. It can be your house or a shop from where you are running your business. Documents Needed to Apply for Business Loan You must have a PAN card to get a startup business loan. Here are the documents that you will need. Proof of Identity (Voter ID card, Aadhar card, Driving license, or passport) Bank statement for the past six months Your latest Income Tax Returns Proof of residence (Utility bills or ID cards) Details of your co-applicant, if any Factors Affecting Business Loan Interest Rates How long has your business been in existence? The years your business has been in operation affect your loan interest rate. The longer it has existed, the higher your chances of getting a low-interest loan. Monthly Turnover of your business The monthly turnover of your business also impacts your business loan interest rate. That’s because it shows your ability to repay the loan. So, having a high turnover and making consistent profits can help you get a lower interest rate on your business loan. Credit Score Your credit score shows the creditworthiness of your business. The score depends on your past credit history. If you have a decent credit score, you can easily get a lower interest rate for your business loan. Pro tip – Pay all your dues and EMIs on time to maintain a good credit score. Collateral It is the security that you pledge to your lender in return for the loan. Giving collateral helps you get a higher loan amount and lower interest rate. The higher the value of your collateral, the lower your interest rate will be. Note – Don’t worry. Some lenders let you apply for a business loan even without collateral. Tips to Get A Business Loan at Low-Interest Rates Here are some practical tips to get startup business loans at lower interest rates. Maintain a decent credit score of 750 or above. Pay all your EMIs and credit card bills on time. Offer high-value collateral if possible. Apply at one of the top banks or NBFCs. Advantages of Business Loans Flexibility of usage Imagine a renowned investor agreeing to invest in your business. They will take care of all your business expenses. However, it’s natural that they’ll also interfere with your business decisions. But you won’t face that problem if you take a business loan. That’s because your lender won’t check where you are using the loan amount. You can use it to meet your business expenses according to your wishes. Affordable interest rates Business loan interest rates in India are quite affordable. That’s because of the competition among different lenders to grab the attention of the borrowers. Easy and convenient It’s super convenient to get a business loan. Other options for fundraising, like crowdfunding or borrowing from friends and relatives, aren’t reliable. Moreover, that might take a lot of time. But getting a business loan from a lending institution takes minutes. No collateral required A loan against property or gold loan will require you to offer collateral or security to your lender. If you fail to repay the loan, your lender might seize the collateral. However, you can get a business loan even without collateral. Tax benefits Who doesn’t love to save taxes? The interest you pay for business loans is tax-deductible. That means you can also save more. Improved credit score Taking a business loan can help you improve your business credit score. That will make you eligible for higher credit in the future. When you repay your loan on time, it improves your credit score. That boosts your creditworthiness in the market. Boost your business with a startup business loan Apply for a business loan now if you plan to grow your business. Piramal Finance offers competitive interest rates. Moreover, there is minimum paperwork, and you don’t need any collateral. [B-02] FAQS How to get the lowest interest rate business loan? Compare the rates offered by different financial institutes. That will help you get the lowest interest rate on your business loan. You can also watch for offers during festivals when some lenders lower their interest rates. Do I need collateral to apply for business loans? Some lenders might ask for collateral while applying for business loans. However, Piramal Finance doesn’t require any collateral; for granting business loans. How to repay my business loan? You can repay your business loan by any method of your choice. You may give post-dated cheques or opt for electronic transfer. Is the business loan interest rate fixed or floating? It depends on the lender you are borrowing from. Some lenders let you choose if you want a fixed or floating interest rate. Are there any pre-closure charges for business loans? Yes, the preclosure charges of your business loan can range from 0 to 5% of your loan amount.
08-11-2023
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Personal Loan

Get Instant Funds With 24×7 Personal Loans

How do I get an instant loan? Can I get an instant loan without documents? How to calculate EMI for a personal loan? Why should I use Free charge for instant personal loans? This blog will answer all your questions! On Freecharge, you can apply for a personal loan at this moment. Using the Freecharge EMI mini-computer, you may arrange the EMI for various credits, such as personal loans, auto loans, home loans, and others. The advances that are most easily supported are usually payday advances, car short-term credits, pawn shop credits, and particular portion advances. These are all crisis-momentary money answers for account holders with unfortunate credit. Use Freecharge to present a web-based individual credit application and quickly get financing. Due to our quick and simple advance endorsement process, your goals will be met even more quickly. If you are considering applying for a personal loan from a bank online, you are in an excellent position. [B-01] How would I involve Freecharge to apply for personal loan advances? On Freecharge, applying for a personal loan advance is simple and computerised. The means are as per the following: Moment KYC and OTP self-confirmation Set your credit sum and term in the individual advance proposition Set up your regularly scheduled payment for reimbursement Consent to the advance arrangement electronically Receive an advance payment—add assets to your ledger Freecharge provides Moment Advances and Credit Lines to meet your needs Pre-qualified individual advances make up most of our quick credits. A pre-qualified credit is what, then, at that point? As previously stated, a pre-qualified credit offer provides clients with the greatest simplicity while requiring the least amount of desk work. Pre-qualified personal loans likewise enjoy the benefits of top-tier loan costs and fast application handling. Even though HubBank provides all credit, you don’t need to have a record with them to apply for one. 1. Personal credit On Freecharge, you can apply for some sort of personal loan. On Freecharge, you can apply for a personal loan in a split second and get the assets in your ledger. You can apply for a personal loan on the web and have it dealt with quickly because the process is completely computerised. You can get aggregates ranging from hundreds to lakhs with fast, pre-qualified individual credits in no time. 2. Charge card with Freecharge We offer both a physical and virtual charge card that you can quickly get, very much like our internet-based prompt credits. One of the most outstanding Mastercard options accessible is this one. In addition to Mastercard, you can get INR 6,000 in cashback each year. Also, you get gift vouchers and numerous different benefits, for example, 5% cashback on recharges and bill instalments. Furthermore, various purchases earn you 2% cashback. 3. Use Freecharge Later Your month-to-month financial plan gets a lift from our new item. You can get a credit line of up to INR 5,000 with Freecharge Pay Later every month. You are allowed to use it whenever you want to. With only a single tick on the Freecharge application, you can recharge your telephone or cover your service bills, as well as shop at partner stores like Swiggy, BigBasket, and Myntra. You will receive a single bill once all instalments have been completed, allowing you to keep track of all of your expenses in one place. Isn’t that great? Best of all, you essentially have to reimburse the sum you utilised. How might you at any point manage cash from individual credits? You can get an instant personal loan from your bank or NBFC very quickly. They are unstable advances. Unstable alludes to the fact that there is no requirement for a guaranteed resource to secure them. Furthermore, personal loans require little administrative work and have lower loan costs. Personal loans, rather than different sorts of advances, can be used for any one-time crisis or specific need. Personal loans can be used for various things, like short trips, urgent home repairs, shopping, purchasing machinery, meeting obligations, and more. What’s more, you can get money from individual credits for various necessities. Advantages of involving Freecharge for Individual Advances and Credit Items 1. Practically no documentation There should be fewer papers provided for individual advances on Freecharge because many of them are pre-qualified credits. You just have to give your Skillet, Aadhaar number, and fundamental KYC data for most of our products. 2. No security is required No guarantee or security is expected for any of the quick private advances or credit items presented on Freecharge to disburse the advance. Thus, Freecharge clients can approach these products rapidly. 3. Don’t bother visiting a bank You might apply for a speedy individual advance or another credit item from any place because of our completely computerised approach. Without expecting to enter a bank office, you may rapidly apply for credit from the comfort and security of your own home. That is the zenith of solace, not too far off! 4. Fast and Basic Disbursal On Freecharge, all quick private credits are moved directly into the candidate’s financial balance. You will have quick access to assets in your Compensation Later record after enabling Freecharge Pay Later, permitting you to make the ideal single-tick instalments. 5. Advancements and Prizes When customers use our foundation to get credit and advance products, we give them a Freecharge, which gives them a few limited-time deals and benefits. A few Freecharge customers can purchase credit and advance products. You should confirm your eligibility before submitting a credit request or application. Additionally, customers can effectively and free of charge make credit EMI payments online in just a few simple steps. [B-02] Conclusion When you require instant or urgent finances, personal loans are the best option. With Bank’s 24×7 Personal Loans, you may benefit from a fully digital approach that allows for collateral-free, quick, and seamless loan sanctioning. You can apply for 24-hour personal loans for sums ranging from Rs. 50,000 to Rs. 10,00,000 based on your needs and offer. 24×7 personal loans fulfil all your short-term financial needs, whether they be for home improvements for the holiday season, arranging your ideal wedding, travelling, or more. Also visit Piramal Finance for more in-depth education-related articles.
08-11-2023
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Business Loan

Expand your business with the best business loan this Diwali by applying at Piramal Finance

Cash flow stability is essential for any business loan looking to meet operational costs and grow. It’s smart to count on regular revenue to keep operations afloat, but it takes a large investment to increase workforce size, upgrade equipment, or create a new facility. Here’s where getting a loan against property might help you out. It could provide the financial breathing room you need to make your company’s dreams a reality. The greatest time to do it is around Diwali, of course. No other approach is preferable. [B-01] What Is a Loan Against Property? Real estate may be used as collateral for a loan in a transaction known as a “loan against property” (LAP). Now, out of all the possible forms of financial help, why is a loan secured by property a viable option? More money may be put away in savings when interest rates are higher. Since loans secured by property have a reduced risk for financial institutions, the interest rates offered on these loans are often lower than those offered on unsecured loans. The impact on your EMIs and your ability to save is large. Appropriating a Large Loan Amount for Large Expenditures You’ll have to invest in new machinery and personnel training to grow your company. Since you are putting up a permanent asset as collateral for the LAP, financial institutions will be more willing to lend you a larger sum. Loans from Piramal Housing may cover up to 65% of the home’s worth. Take out a loan like this, and you won’t have any money problems. Making the right decisions should be pretty easy. Focus on growth and be amenable to change in commercial dealings. A LAP’s repayment period is far longer than a standard loan. The longest repayment period for a Piramal Finance LAP is 20 years. A longer repayment period results in fewer monthly payments. This can let you create a new setup and keep it running well without worrying about large monthly expenses or earning a profit immediately. The Application Process and Sanction are Straightforward to Get You Started Getting the capital you need to fund your business’s development may be accomplished via a loan secured by real estate. Little red tape is involved in the application process, and funding is provided when all the documentation is finalized. This can be a great option if you need to get your business up and running and have many holiday-related tasks. Required Paperwork To apply for a loan against property, you will need to show evidence of the following: Your identity and age (such as a driver’s license or passport) and proof of where you live (Passport, driving license, telephone bill, etc.) Also, the profile needs a certificate attesting to the firm’s legal existence. Personal and company tax returns for the last three years. Please pay the processing fee to “Piramal Finance.” Property title papers, authorized building plans, etc., photocopies, Business loan benefits during the Diwali season During the Christmas season, a business loan might be a wonderful gift for the boss of a medium-sized firm. For illustration, consider the following: A business loan will help you make the most money possible during Diwali. A financial cushion is created, allowing the company to expand without a hitch. It allows small and medium business owners to expand their operations. They can purchase new machinery and equipment for the holiday shopping season. Unsecured business loans are those that need no collateral. Thanks to these alternatives, you won’t have to worry about losing an expensive possession to get a loan. These loans help meet short-term business loan goals throughout Christmas because of their quick approval and versatile repayment options. With an MSME business loan, you may get the money you need with a few simple steps. So, even when demand is high and days are chaotic, business owners may apply for a business loan at Piramal Finance and get the money immediately. Solving the problem of low festival sales Applying for a standard business loan is the most sensible way to fund company development. Here are some tips for increasing your company’s performance with a small or medium-sized loan during the Diwali season. Architecture and Strategy: Those planning to grow their businesses around Diwali should know the season’s duration and dates. Because of this, they can organize their efforts and be ready. Provide Sales Promotions and Discounts: Holiday sales and discounts are the biggest attractions for shoppers throughout Diwali. Thus, offering sales and discounts during the holidays attracts more customers. Pay attention to advertising: A marketing campaign around Diwali may raise brand awareness and bring in new clients. Get your campaign running before the Christmas shopping season starts with a dedicated marketing budget. Please find your ideal customers and advertise to them online to see a big rise in sales. Use unsecured business loans to underwrite the promotion and bring in record revenue. Improve Your Presentation: Nowadays, customers form first impressions of businesses based on how well they are presented. Remember that your presentation reflects the company’s values and culture. There is a correlation between a company’s visual attractiveness and the number of clients it attracts. Thus, decorating the business is recommended throughout winter to make customers feel more at ease. Considerations for a Business Loan Application around Diwali This Diwali, company owners who want to qualify for a loan should consider the following. Think about your situation and why you feel a loan is necessary. It might change based on the company’s long-term vision and strategy. The budget and loan amount is set and determined in light of the company’s long-term goals. The MSME business loan‘s efficiency and repayment ability are crucial factors in whether a loan is granted. Rapid approval is possible if the company’s owner keeps their credit and CMR scores high. Most business loan owners make the mistake of applying for a business loan before having all the necessary documents. When loan applications are turned down because of inadequate documentation, time is wasted, and credit is ruined. Borrowers should check our data requirements and then apply. [B-02] Conclusion LAPs provide more money for a longer period at a cheaper interest rate since they are backed by collateral. This makes them the most effective method of funding business expansion. Piramal Finance’s pliable LAP eligibility restrictions, straightforward application process, and quick funding disbursement will keep your expansion on track. So, light the candle to future success when applying for a business loan against property this Diwali. Get in touch with Piramal Finance for more information.
08-11-2023
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Other

Expert Tips on Organising Your Business

Organisational skills are crucial to the growth of any small business. Lack of organisation may double the difficulty and halve the success of any task. When it comes to business strategy, making big changes is much less hassle. When you see the value of the structure and organising business, you can begin to develop processes and procedures for your whole business. [B-01] Start by cleaning up your computer’s desktop. Get rid of all the extra stuff. Clutter causes unnecessary wait times. This will clear your mind and will help you. Remove any extra files from your computer’s desktop and save them on an external hard drive. This will remove the over heads in your computer and your brain. Verify that your anti-virus software is up-to-date. You should expect the highest levels of safety for your efforts. Software should be kept up-to-date regularly. Data management is greatly improved by taking advantage of these free updates. Keep a copy of your data offsite once every fifteen days. If your computer crashes, you won’t lose any of your data since you have a backup. Get your inbox in order. If your inbox is too full, you risk losing important messages. Make better use of your contacts It’s a constant uphill battle that might cost you sales if you lose track of your customers, leads, payments, and other vital data. Successful small business strategies may benefit greatly from client relationship management (CRM) software like Keep. It connects to other business tools and facilitates follow-up where it is most useful, such as overdue invoices, quotes, customer questions, and more. There will be no more misplacing important emails since the application will do it for you. Use resources available in the cloud Have you had a computer crash and lost important data? Have you ever needed to use a document, presentation, or spreadsheet on the go or in the middle of a meeting? Have you ever wished that everything you have on your computer and phone is identical? When you save information on the cloud, it becomes available from any device, anywhere in the world. You may use free cloud storage services like Dropbox and Google Drive, which are also compatible with Macs, iPads, and other mobile devices, to join the 82% of businesses with a cloud business strategy. This means you can get the information you want whenever and wherever you choose. Get your financial affairs in order Keep business and personal funds separate. Your professional responsibilities need not intrude onto your private life, and vice versa. This will help in organising business. Before your money gets out of hand, you should consult an accountant and a tax counsellor. Maintaining an accurate accounting of your invoices and customer payments is important. It may be essential to purchase specialised software for this task. In the same vein, be mindful of your expenditures. Your financial security may be at risk if you fail to maintain tabs on this. Create a detailed budget and simple research options for company financing. Fantastic benefits are available with certain small business loans, such as quick online approval, a negotiable term, and a low-interest rate. Consider applying for a Flexi loan if you anticipate having sudden financial needs. Because of its unique qualities, you will always be in charge of your finances. Utilise the right programs and equipment to maximise output Use a web-based accounting service like Quickbooks or Xero to manage your invoicing needs. Social media management platforms like Hootsuite let you keep tabs on any mentions of your brand or a competitor’s to promote your business efficiently and effectively. Partners and distributors may benefit from customer relationship management tools like InfusionSoft and SalesForce. Tools like Asana and Basecamp may be useful for keeping track of meetings and assignments. Create a list of what has to be done tomorrow The language of corporations is the creation of to-do lists. However, the problem is that only a few people accomplish anything on their lists. If you don’t use your to-do lists to track what has to be done at work, they are useless. Here are some suggestions for staying on track with your to-do list: Make a list of everything on your to-do list for organising business (the items on the list don’t have to be in any particular order; jot them down as they come to mind). Classify tasks into those that may be completed simultaneously or in the same amount of time and those that must be completed separately. Adjust the order of your items based on their importance. Too frequently, people place a higher value on doing more work in a shorter time than they do on doing better work. That is the farthest thing from the truth. Timeliness, productivity, and open lines of communication should be all factors when setting priorities. Upgrade your record-keeping and storing methods Consider becoming paperless by putting everything on the cloud or making a copy of everything on a hard drive. Platforms like FreshBooks and DocuSign make signing important documents easy and convenient. If you want to save all those business cards in one place for reference, use the organising business card scanner. The cloud storage services Dropbox and Google Drive are ideal for this. This way, you may maintain order among your documents and avoid chaos. Bring in some more help You can hire an assistant even if your firm is small or medium. Whether calling for a payment reminder, renewing telephone or internet services, transforming your notes into a PowerPoint presentation, or planning a meeting, you may use an assistant to free up your time for more important activities. Consider using online platforms like Upwork and Zirtual to hire virtual assistants. This is one of the most effective business strategies to bring you success. [B-02] Conclusion Instead of forcing yourself to adopt a whole new workflow or set of organising business techniques, you should check out many products and then attempt to combine them with your present habits. There is no silver bullet for streamlining operations in a small business, but there are plenty of methods for maximising productivity and streamlining processes. To learn more about organising business and implementing strategies, you can consult with an expert at Piramal Finance.
08-11-2023
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Other

Everything You Need to Know About MahaRERA Act

We are experiencing a real estate boom in every part of the country. The Real Estate (Regulation and Development) Act came into effect in 2016. The main vision is to provide security and fairness to buyers. It applies to both residential and commercial properties. If you are considering the purchase of a property in Mumbai, it is important to be aware of the MahaRERA Act. It came into effect in May 2017 and sets out rules and guidelines for the real estate sector. The sole aim of the MahaRERA Act is to make Maharashtra the best place to invest in real estate. Its vision is to establish a robust, transparent, honest, and reliable regulatory environment. In this article, we can see the MahaRERA Act in detail. [B-01] What exactly is the MahaRERA Act? The Maharashtra Real Estate Regulatory Authority (MahaRERA) Act was put into effect on May 1, 2017. The Act establishes a regulatory authority to protect the interests of home buyers. It also establishes a mechanism for resolving disputes between buyers and developers. It advocates for real estate investment and supports customer rights. This act eliminates the possibility of fraudulent real estate transactions. Rules and Regulations Every residential and commercial project must register with the MahaRERA Act to proceed. It requires real estate developers to post quarterly reports on their active projects. Services provided by MahaRERA MahaRERA advances the interests of real estate promoters. It establishes a single point of contact for RERA clearances and approval checks. Objectives of the MahaRERA Act All parties involved in real estate must register under the MahaRERA Act. There must be transparency in the sale of flats, plots, and buildings. The main aim is to protect all parties involved in the transactions. That includes buyers, sellers, brokers, and promoters. Promote the importance of resolving disputes. Create a platform for dispute resolution that customers can appeal to. Offer suggestions to relevant government officials on real estate growth and promotion issues. The total number of registrations Under the MahaRERA Act, there are 39,722 registered agents and 39,107 registered projects. Additionally, they have received 19,459 complaints to date. They have resolved 67% of them, which is an impressive effort. Benefits of the MahaRERA Act for Buyers The benefits of the MahaRERA Act, 2017, are as follows: 1. Complete transparency The promoter must create a web page on MahaRERA‘s website after registering. The website must contain all the details about the promoters and their projects. With the aid of this technology, buyers may keep up with the status of the project. 2. Registration of real estate agents Real estate agencies must register online with MahaRERA. This is to simplify the sale or buying of plots, buildings, or apartments. It ensures the accountability of real estate brokers and their registration. 3. Law and order With the MahaRERA Act, they are no longer able to divert investor cash to other projects. A 10% down payment is the standard. Failure to follow the requirements will result in a fine and three years in prison. 4. Assurance of compensation to buyers The buyers get compensated if there is any delay in a project. Buyers have two choices if a promoter fails to provide the specified terms: Get a full refund of the amount they paid the promoter by cancelling the reservation for the project. Until they give possession, the promoter must pay the buyer interest for the delay once a month. 5. Accountability of funds It is a requirement that the developers deposit 70% of the funds received for a given project into a single account. They can only cover building or land costs with these funds. They must update the authorities in MahaRERA on the project’s development. 6. Bring up the carpeting area. A space enclosed by an apartment’s or building’s interior walls is a “carpet area.” Earlier, the promoters used frequent influence, which is what determines a property’s price. As a result of the MahaRERA Act, promoters are now obligated to disclose the actual carpet area. This helps in the fair pricing of a property. 7. In case of a defect in the property Within 5 years, any construction quality issues must be notified to the buyers. It is the promoter’s responsibility to fix these problems at no extra cost. The buyer has to get equal compensation if the promoter fails to address these problems. How to register under the MahaRERA Enter “maharera.mahaonline.gov.in.” and open the MahaRERA website. First, click the “Login” button. Then you have to select the new registration option from the menu. Select the user type. It opens in a new window. The user-type choices are real estate agencies, promoters, and complainants. Write all the needed information in the respective fields. Verify your email address to gain access to your account. Finally, upload the required paperwork. How do I search for projects in MahaRERA? Click maharera.mahaonline.gov.in and enter your login details. Then select the registered projects. It comes under the Registration tab dropdown. It will take you to a new tab. Enter the details in the search bar to see the project details you are looking for. Once selected, you can see all the information related to the project. How to search for expired projects in MahaRERA Follow these steps to learn about the expired projects in Mumbai. Enter the MahaRERA website at maharera.mahaonline.gov.in. On the “Registration” page, select the link related to “Lapsed Projects.” You can see the details of expired projects in chronological order. [B-02] Conclusion The MahaRERA Act website is the most friendly RERA website. With a single click, buyers can get information about everything. They also offer details on ongoing and recent projects so that the buyers can decide well. Piramal Finance offers various housing loans with affordable EMIs and interest rates. You can also talk to their experts in real estate to know more about their MahaRERA projects.
08-11-2023
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FD

Your Guide for Fixed Deposit as an Investment Option

One of the safest and most secure investments is Fixed Deposits. Those who avoid investing in mutual funds or equity due to the risk associated with them consider FDs a great choice. With a fixed deposit, you can easily deal with your financial risks and fulfill your life goals. People invest in FDs to secure their child’s future, education, or marriage or to deal with unexpected expenses. You can also save a substantial amount for your future with FDs by putting aside a lump sum amount and letting it grow over a while. [B-01] Types of Fixed Deposits: Standard Fixed Deposit: It is the most common deposit. It can be opened in any bank with your savings account. 1. You can deposit money for a predetermined period 2. Interest rate is set by the bank 3. Duration- 7 days-10 years. Corporate Fixed Deposit: This deposit is made by private companies. 1. Offers high rates as compared to banks 2. Always check the company's credit rating to ensure your investment is safe. Cumulative Fixed Deposit: This can be your choice if you plan for a long-term investment. 1. Money invested for a predetermined period 2, Restricted from regular payouts 2. Money received at maturity Non-cumulative Fixed Deposit: This is the investment you have been looking for for short-term investors with monthly goals. 1. You can choose from monthly, quarterly, half-yearly, and yearly interest payout 2. Enjoy the interest on your invested money Tax-saving Fixed Deposit: You can avail of this deposit to save tax. It is available at all banks. 1. Tax redemption up to 1.5 lakh in a year. 2. Lock-in period of 5 years. (Funds cannot be withdrawn during this period) Senior Citizen Fixed Deposit: As the name suggests, this deposit is specifically for senior citizens. 1. Minimum age should be 60 years 2. FD Interest rates higher than standard rates Interest Rate in Fixed Deposits The FD interest rates range from 3-9%. The minimum period for an FD is 7 days The minimum amount for a fixed deposit is INR 1000. The interest rate on an FD depends heavily on which bank or private company you are borrowing from and for how long. The longer the period, the higher the rate of interest. Pros and Cons of Investing in FD PROS: Assured Returns: This is one of the main reasons people invest in FD. You can invest your money for a fixed period and relax. You will receive a lump sum amount on maturity. This helps an investor in making a stable financial decision. Allows Premature Withdrawal: In an emergency, you can withdraw funds from an FD. This comes with a fee, but it is a great assistance. Also, there are no complex rules and regulations for premature withdrawal in fixed deposits. Tax Exemptions: The interest that you earn from an FD is taxable. Tax exemption is available to a certain level. Investors and senior citizens can legally evade taxes under Section 80C of the Income Tax Act. Loan against an FD: This is one of the greatest advantages of investing in an FD. If you are not planning to break an FD in case of an emergency, you can get a loan against your FD. You can avail of up to 90% of the FD amount as a loan from financial institutions. High security: Investing in FDQ is safe and secure. This is because the principal amount and interest you will get are pre-decided. Factors like an unstable market and economic fluctuation don’t affect your returns. Availability: This scheme is available in almost all banks/financial institutions. This makes it easier for investors to visit their nearest government or private banks, NBFCs, or post offices to take advantage of this scheme. Quick renewals: If you want to build wealth, you can renew your existing FD. This way, you can double your interest and build a profitable portfolio. Higher rate of interest for senior citizens: In almost all banks and financial institutions, senior citizens get a higher rate of interest on a fixed deposit than standard interest rates. Flexible Tenure: One of the most attractive features of a fixed deposit. You can choose the period for your deposit at your convenience. Open to all: There are no complicated criteria for investing in a fixed deposit. Anybody who is an Indian citizen and NRI can open a fixed deposit with banks or NBFCs by just verifying their KYC. CONS: Lock-in period: You can withdraw your money from an FD easily. But still, there is a lock-in period until you cannot take out your funds. The lock-in period for your fixed deposit is mentioned on your FD receipt. You must check on it and plan your withdrawal accordingly. Penalties on withdrawal: One of the biggest advantages of opening a fixed deposit is a premature withdrawal facility, but a penalty fee is attached. A fixed percentage is charged for withdrawal by reducing your pre-determined interest rate. TDS: Interest earned from an FD is taxable. If your interest earned comes under the tax slab, 10% of TDS will be deducted from your interest. Lower Interest Rates: A fixed deposit is a secure investment, but some banks and financial institutions offer lower interest rates than inflation. Fixed interest: The interest rate for your fixed deposit remains unchanged till maturity. Even if the FD interest rates are revised, you will receive the pre-determined interest rate only. [B-02] Every investment has pros and cons. It depends on your expectations from an investment and its features. Based on these factors, you can choose the best investment that suits your purpose. This blog must have solved your queries about FD as an investment option.
08-11-2023
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Personal Loan

Documents Required for Personal Loan – Salaried / Self Employed

It is common for people to be in urgent need of cash for various reasons. The most common ones include the following: a) Clearing the existing debts. b) Renovating the house. c) Purchasing an automobile. d) Medical requirements. The best solution to meet unexpected financial needs is to apply for a personal loan. Before we get into the required documents, let’s briefly know about personal loans. A personal loan is an unsecured loan offered to people to fulfill their financial needs. You can use a personal loan to take care of your immediate demands. The lenders consider different criteria before granting the loans, including the following: [B-01] a) Employment history b) Credit score c) Income level d) Repayment history. Personal loans for salaried and self-employed individuals can be usually paid back in monthly installments. Sometimes, personal loans are called “consumer loans”. The period is usually a few months or years depending on the purpose and how punctual your repayments are. Steps to get a personal loan It is advisable to compare all loan choices before making a decision. Most lenders would want a credit report, and along with the factor-interest rates, loan term and fees should be mentioned. Once a suitable lender has been chosen, the following documents have to be submitted: Loan details Income verification Personal information documents. For a hassle-free process, all the relevant and supporting documents should be submitted which might vary based on the income source. Different documents are needed for salaried and self-employed people. Documents required for a salaried individual If you are a salaried individual, you have to submit the following documents: Identity Proof Passport Aadhar Card Driving License PAN Card Voter’s ID Proof of Residence Ration Card Aadhar Card Driving License Passport Utility Bill Proof of Ownership of the Residence Electricity Bill Property Documents Maintenance Bill Proof of Income Salary slips for the past three months Bank statements for the previous six months Proof of Job Continuity Employment certificate issued by the current employer. Appointment letter from the current employer (if the employment period is more than two years). Experience certificate (job or appointment letter from the previous employer). Proof of Investment Fixed Assets Shares Fixed Deposits Photograph One passport-size color photograph. Documents required for self-employed individuals The following documents are needed for a personal loan from self-employed individuals. Proof of Photo Identity PAN Card Voter ID Passport Driving License Proof of Residence Passport Utility Bill Aadhar Card Proof of Residence Ownership Property documents Electricity Bill Maintenance Bill Proof of office address Property documents Electricity Bill Proof of Business Existence Company Registration License Tax Registration copy Shop Establishment proof Proof of Income Income tax returns for the previous two years. They should be inclusive of the computation of Income, audit reports, etc. Bank Statement Current bank statements and savings for the past year Proof of Investment ( If any) Investments that include fixed assets, fixed deposits, and shares Photograph One passport-size color photograph Things to keep in mind before taking personal loans for salaried individuals Maintaining a good credit score: This is a key factor that aids in the approval of a personal loan for a salaried individual. It should be maintained for ease of support on your later loan request. Employer reputation and stability: This is important when it comes to collateral-free loans. The lenders will be inclined to grant loans to employees of a reputed entrepreneur. However, individuals who work with reputed employers prefer low-interest rates. Thus, they are given many options to choose from. You should make sure that you work for a reliable employer before applying for a loan. Avoid multiple loan applications at the same time: It is important to avoid damaging your financial profile in hard inquiries. A hard inquiry takes place when the lender approaches the credit bureau for an official inquiry about your request. If you have taken too many loans, your credibility will be affected. It’ll make the lender hesitant to grant the loan. Things to keep in mind before taking personal loans for self-employed individuals Ensure your finances are doing well: Be diligent with your finances. It is important to put out a good portfolio for yourself since it is given that self-employment comes with fluctuating income. Have all the necessary documents to prove your income: The flow of income is the key difference between a self-employed individual and a salaried individual. Hence, proving your stability is important. It’ll be beneficial for your personal finance goals. This will ensure an efficient personal loan for self-employed individuals. Ensure security for the future: Uncertainty is a major factor in cases of personal loans for self-employed individuals. Businesses experience many changes with time. Sometimes, the profits may not be enough. It is important to show lenders proof of your savings. This assures them that you can get yourself covered in unexpected situations. [B-02] Conclusion You should assess all the requirements before deciding on a personal loan. It is important to apply for a loan that suits your financial aspirations and fits your current cash flow. The requirements for personal loans vary for salaried and self-employed individuals. Repay your loans on time to improve prospects for personal loans. Do not try to take too many loans. It will prove to be an obstacle in the future. Be sure to research all the different options and the potential risks of a personal loan. For further details, you can visit our website Piramal Finance. It’ll be our sincere pleasure to answer all your queries.
08-11-2023
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Tax

Do You Know an Education Loan Can Get You a Tax Benefit

An education loan is the easiest way to finance your academic aspirations. It opens up the world of higher education to pursue locally and overseas. It allows you to experience college life and permits you to gain access to education at a higher level. An education loan also allows access to better educational institutions which have good: Teaching staff and faculty members Facilities and infrastructure Quality of education delivered Extra-curricular activities and opportunities An education loan also helps you with the very high costs of higher education nowadays. This is because an education loan allows you to pay for it through EMI instead of paying at one shot. An education loan not only pays for your higher education but also offers you tax gains. You can claim tax deductions irrespective of whether you are a student or a parent as long as you meet the requirements. This article showcases and explains the tax benefit aspect of an education loan. [B-01] Eligibility to claim tax benefit According to the law established by RBI, only individuals are eligible to claim a tax benefit. Joint loans are not taken into consideration when it comes to deductions. Apart from this restriction, only the individuals who fit the following criteria can qualify for tax benefits. It is per Section 80E of the Income Tax Act of 1961. Parents who co-sign or is the lead borrower on an education loan for their children. After getting a job, a student who took out an education loan can deduct this from their taxable income. A loan that is being paid by a spouse A legal guardian who is repaying a loan for the person for whom they are responsible may also be eligible for tax benefits. Purpose of the loan The reason behind taking the loan also impacts whether you can avail the tax benefits of an education loan. Only a loan that is taken to finance your higher education is eligible. Other types of education loans cannot be used to get tax benefits. Higher education is a full-time study you undertake. it is usually done after the senior secondary exam or its equivalent. This comes under the category of undergraduate loans. Any post-graduate degree you choose to pursue is also included in the education loans. This is also deemed suitable for tax benefits. Additionally, you might also get tax breaks for vocational training or career development loans. The latter involves taking a break from work to enrol in courses, modules, or training to develop their skills further or learn new ones. Thus, it is clear that tax benefits are provided for most fields of study when taking an education loan. Tax Benefit Amount It is important to note that when it comes to student loans, the tax advantages are only applied to the interest paid on loans. The tax benefit is not available for its principal sum. But, given that there is no cap on how much money you can save in a particular fiscal year, you can deduct all interest due. This compensates for the lack of tax advantages on the principal repayment. This makes an education loan a viable choice when seen from a tax-benefit point of view. Tax Benefit Duration Tax benefits on a student loan are only available for a limited time. Even though the time frame is quite long, it is good for you to know about it in advance. This allows you to plan the process of paying back your loan in a more financially sustainable manner. Simply put, the first year of repayment is when you begin making EMI payments on your education loan. Interest can only be deducted from your taxes for a maximum period of eight years, including this first year. For instance, if you pay back your loan in six years, you will only be eligible for the tax benefit for six years. Or, if the loan tenure exceeds eight years, you will only be provided with the tax benefits for eight years. Origin of funds The place or institution from which you choose to take the student loan also plays an important role. The tax benefits are only available if the loan is from a bank or authorized financial organization. Section 80E tax deductions are not available on all education loans. If you borrow money from friends or family to pay for your higher education, you will not receive any tax benefits when you repay them. This is because the government does not consider them to be eligible organisations. You should also use extreme caution when obtaining a Non-Banking Financial Institution (NBFI) loan. You should check to see if it is on the list of financial institutions that qualify for tax breaks. [B-02] Concluding Remarks Pursuing higher education is an important and memorable experience for each student. It is crucial whether it is local or international. You may extend the time you have to pay for it by financing it with a student loan. Making the most of the loan financially is necessary. You should thus make every effort to qualify for the tax advantages that come with the student loan. This reduces the financial burden of repaying the loan, increasing the appeal of an education loan. You can read more about student loans and other types of financing from the Piramal Finances page. They can help you to understand further how to manage and explore your finances in the best way.
08-11-2023
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Other

Complete Guide on How to Check Your Entire Credit History

The state of your credit greatly influences your financial future. You can be eligible for loans with low-interest rates if your credit is in good standing, which could result in long-term savings. Having bad credit might make it difficult for you to fit the criteria for credit cards with the greatest benefits and rates and get credit for a major purchase. The credit bureaus in the nation use several variables, including the duration of your credit file and payback history, to determine your credit score. All this combined is your credit history. A better credit score may give you positive considerations when applying for a credit card or loan from a bank, such as a larger loan amount, a reduced interest rate, and a longer repayment period. You can easily get a larger amount of business loans with a better credit history. [B-01] Steps to Check Your Credit History Checking your credit report can give you an excellent understanding of your credit history. You must complete the following actions to obtain a record of your Report: Log on to the website of the credit bureaus and submit an online request for a copy of your credit report. Provide the necessary papers, including one ID and one address verification. Scan the papers and upload them. Pay online for your transaction. Suppose the supporting documents are accepted, and payment is made. In that case, you will receive your credit report by email within a day. What Exact Factors Include in Calculating a Credit Score? The major credit information bureaus use different methods to construct credit history. The general criteria mentioned below are used to determine your credit score: Amount of credit 30% of your credit score is based on how much money you owe on credit cards and loans like business loans. Your credit score would suffer if you have a large balance and have used up all of your credit card’s available credit. In comparison, low balances and on-time payments would boost the score. Payment record 35% of your credit score is determined by how you’ve paid your bills. Your payment history demonstrates if you have paid your bills on time, whether you have made late payments in the past, and whether you have paid them days beyond the specified deadline. Consequently, you will receive a higher score if you make more on-time payments. To avoid damaging your credit score, keep in mind you never skip a payment. This makes your credit history. The number of credit products in the portfolio The number of products you have and the categories of products you have accounted for 10% of your credit score. Using several products, such as business loans, home loans, and credit cards, might improve your credit score. The use of credit The last 10% is based on your most recent credit activity. The information about starting or applying for multiple accounts, your repayment history, the business loan types you have requested, and how much of your credit limit you have used are all considered credit activity. Duration of credit record The duration of your credit history determines 15% of your credit score. A long history of on-time payments will undoubtedly result in a higher credit score. What Lowers Your Credit Score? It has been widely known that carrying large credit card debt may dramatically lower your credit score. In addition to that, several different things might lower your credit score: Your credit score might be drastically lowered by running out of money. Disregarding your credit card or loan payments in full. Overdue credit card payments after the due date If you fail to make payments, lenders will engage third-party collection agencies to get you to pay back the loan. Receiving a collection account has a negative impact on your credit score. When credit card payments are not paid on schedule, creditors charge off accounts. Having your account disabled is among the worst things that may happen to your credit score. Closing outdated credit cards restrict the amount of your credit history. This will have an unfavourable consequence on your credit score. Your credit score drops if you apply for several credit cards or business loans. Limiting a lot of requests is a good idea. Your credit score will suffer if you just have one sort of credit account. Therefore, you should maintain a balance between credit card debt and loans while consistently making on-time payments. Advantages of a High Credit Score Increased Affordability of Loans Processing fees and other costs are tacked onto loans. You can negotiate your way out of some of these fees with a strong credit score. Prompt Loan Approval Your loan application will go more quickly if your credit score is strong. Banks could swiftly and easily approve your application for all business loan types. Best Rate of interest You may negotiate a reduced interest rate on credit cards and loans if you have a high credit score. Grab the Ultimate Credit Card You can get the finest credit cards with a good credit score. Benefit from having a card with lots of features. Check your credit score to determine if you qualify for these perks as soon as possible. [B-02] Conclusion A good credit score may empower you and assist you in reaching your financial objectives, such as obtaining a low-interest personal loan or a business loan to reduce your credit card debt or purchasing your first property. Understanding your credit score, where you fall in the credit score range, the contents of your credit history and the steps you can take to improve or keep your credit status are the first steps in ensuring superior credit status. To better manage your finances and maximise your credit perspective, check your credit score frequently and examine your credit report once a year. Still, have questions about credit history? Then, heed some guidance from Piramal Finance professionals. They will be able to guide you to a better solution because they will comprehend your needs.
08-11-2023
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