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Home Loan

Top 10 Benefits of a Property Loan in India You Need to Know

When you need instant money, loans are often one of the first things that come to mind. There are so many kinds of loans, like credit cards, mortgages, and lines of credit, that it may seem impossible to choose just one. However, due to rising demand for real estate, the property loan market is expected to grow to more than $850 billion by FY2026. A property loan is one of the best ways to get a secured loan if you are sure you can make your monthly payments on time and have a good credit history. The article highlights the top 10 benefits of property loans. [B-01] What is a property-against loan? A property-against loan is a type of secured loan you can apply for. When you use your property as collateral for the loan, the loan may be instantly approved. The credit amount can be the same as the property’s current value. So, the bank approves the loan. You can get a mortgage loan on your primary home or any other property. However, you must ensure the property’s title is in your name. Top 10 benefits of a property loan Easy and quick approval One of the best things about a property-against loan is the quick approval process. Getting a property loan is much easier than getting an unsecured personal loan. You should ensure there are no mortgages against the property before applying. You can use this property loan for anything, including medical bills, education, etc. Pocket-friendly A property-against loan or loan against property is a cheaper way to get the money you need. Many times, the interest rates on these loans are lower than those for others. Personal loans have interest rates between 12% and 25%, while property loans have interest rates between 12% and 15%. You can use the property as collateral to get a property-against loan. Mortgages can be taken out on primary homes, investment properties, rental properties, and undeveloped land. Loan repayment time A loan against property has a longer repayment time. These can be paid back over 15 years, while unsecured loans need to be paid back within five years. In this way, you have less financial stress. Pre-closure option Usually, there are no fees or penalties for pre-closing a property loan. Accounts for property loans can be closed if the full balance is paid off before the agreed-upon deadline. However, if the interest rate on your loan is fixed, you may have to pay a small fee to pay it off early. Top-up facilities When you get a property loan, you can request a top-up. You may get a second loan on an existing property-against loan. However, this depends on the property value and your repayment history. Minimal debt burden The monthly payments on a property loan are much lower than on a personal loan. These loans are less of a burden because the interest rate is lower, and you have more time to pay it back. When getting a property-against loan, a good credit score may lower the monthly payment. Flexible loan amount The amount you can borrow with a property-against loan is based on the market value of your property. Loans against property are approved for up to 70% of the property’s value. Tax benefits You also get tax benefits on the principal and the interest paid on property loans. Under Section 80C of the Income Tax of India 1971 Act, you can get a tax break of up to Rs 1.5 lakh per financial year. Under Section 24B of the Income Tax of India Act, you can deduct up to Rs. 2 lakh from the interest. Minimal documentation One of the other benefits of a loan against property is that you don’t need much paperwork to get the loan. Unlike other types of loans, a property-against loan only needs basic paperwork such as identity proof, proof of ownership, etc. Optimum use of the property You can get the most out of your property by getting a loan against a commercial shop. You can borrow money at a lower interest rate if you use a property. For a secured loan, a property’s market value is one of its most important things. The borrower can keep the property and still use it as collateral for a loan. Eligibility criteria for a property loan The requirements to get a property-against loan are not as strict. You have to be an Indian citizen. The minimum age is 21, and the maximum is 25 years old. You must be self-employed or salaried. Companies can also apply for a loan against property. You must have a certain net monthly/annual income (The income limit differs for salaried people, self-employed people, and firms or companies.) You must have worked for an employer, their practice, or their own business for at least a year. How do you apply for a property-against loan? The process to apply for property loans is easy and clear. Follow the steps below to finish your application successfully: Go to the official website of your lender to fill out the application form Choose your “Type of Job” and “Type of Loan” from the options given Fill out the basic details and complete property information. Upload the required documents and submit the form. [B-02] Conclusion Getting a property loan is easier than many people believe. If you plan to get a loan against a property, choose your lender and provide all the necessary documents with your application. Lenders make property loans available for both commercial and residential properties. However, you have to meet different conditions. If you are ready to take a property loan, consult an expert. You can visit the Piramal Finance website and explore personal loans and services.
08-11-2023
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Personal Loan

Go Paperless Personal Loan Without Documents

A personal loan is probably one of the best ways to borrow money to fulfil your dreams and aspirations without facing any financial distress. It can help you buy a house, finance the higher education of your children, or even cover your medical bills. The best thing is that you are not accountable to the lender regarding the reason for which you are applying for the loan. In today’s time, a personal loan can give you the financial leverage that you have always wanted. However, during a crisis, you might want the loan amount to be disbursed as soon as possible. And in that case, you might think of eliminating unnecessary paperwork, delays, formalities, and document submissions. But is it possible to get a personal loan paperless, without the documents? Read this article to find out. We will talk about personal loans, their features and eligibility, and the paperless process to apply for them. [B-01] Personal Loans: Meaning and Significance Personal loans are financial instruments that you borrow from lenders without putting up collateral. These loans are applied to meet various personal needs like financing a wedding, covering medical bills, making a trip to a destination, or even clearing a down payment. These loans are quite popular in India as they are highly flexible and have comparatively low rates of interest. In addition, you can get approved for a personal loan within a very short period of time. Because these loans do not require collateral, you do not have to pledge any of your assets, such as real estate, to obtain the loan amount. As a result, these loans are unsecured and easier to obtain as compared to other types of loans. The terms and conditions of the loan vary from bank to bank and depend on the individual’s credentials. What are the features and benefits of a personal loan? There are many features and benefits of a personal loan, and they are: Higher loan amount: The loan amount for a personal loan can go as high as 40 lakhs and in some cases even more than that depending on your credentials. Low rate of interest: Despite being an unsecured loan, the interest rate on a personal loan ranges from 10.5% to 24% per year. These numbers are highly variable and depend on the borrower’s credentials and the bank. Free from collateral: Personal loans do not require collateral to get approved; you can easily apply for them even if you don’t have a property or security deposit to use as a guarantee. Flexible tenure: The tenure of repayment of a personal loan is highly flexible, which gives you the advantage of having enough time to plan your finances. The period of repayment of a personal loan varies from 12 months to 84 months. Flexible terms and conditions: In addition to a flexible tenure, a personal loan has flexible terms and conditions as well. You have the freedom to choose the type of interest rate, the type of loan, the loan amount, etc. How to get a personal loan without any documents? To get a personal loan without any documents, you have to focus on the following things: Focusing on your loan history: Creditworthiness is a very important thing that the lender looks for in borrowers. You must make sure that you pay all your existing dues to make your loan history flawless. So, you have to pay your credit card bills and loan EMIs on time to ensure that you are loanworthy. You should also avoid defaulting on loans and delaying payments. Levelling up your credit score: Your credit score should be at least 750 to get a personal loan without documents. Your CIBIL score plays an important role in enhancing your eligibility for a personal loan. Any type of dues might affect your credit score, and the more it’s negatively affected, the chances of getting a loan without documents get lesser as well. Maintain a standard debt-to-income ratio: You should also focus on your debt-to-income ratio before applying for a paperless personal loan. Your debt-to-income ratio must be less than 50%. The lower your debt-to-income ratio, the better your ability to repay. Relationship with your lender: This is another important thing that you must consider while going for a personal loan without any documents. If your relationship with your lender is decent and you are a regular customer of the bank, your chances of getting the loan sanctioned within a short span without any documents will be easy. Approach for online mode: If you want your loan to be processed within a short period, you should opt for the online mode when applying for a personal loan rather than focusing on the offline mode. After COVID, many banks and NBFCs chose the online mode to give loans to people to decrease delays and help people during emergencies. So, you can prefer an online mode to fill out your application instead of choosing an offline mode. [B-02] Summing it up: Getting a personal loan without any documents is easy, but you need to make sure that you have enough eligibility to cover that. You should make sure to show the lender that you have the financial muscle to tackle the stress of repayment. In case of emergencies, banks and NBFCs disburse the loan amount to the borrowers immediately if they find them creditworthy.
08-11-2023
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Guide

Working Capital Turnover Ratio – Meaning & Definition

When you run a business, you need money for daily expenses. This is your working capital, i.e., the money you need to run the day-to-day functions. Without working capital, you cannot run your business smoothly. Obviously, you cannot wait for money from creditors to meet your working capital needs. Therefore, to tide over the shortage of money, many owners opt for a working capital loan from banks or NBFCs. This loan can help you pay for crucial expenses required to keep your venture going. You may or may not need to offer security to get a working capital loan, based on your profile and the amount needed. But how can you decide the amount of money you need as a working capital loan? The best way is to know your working capital turnover ratio (WCTR). Read on to learn more about WCTR and how it can be a basis for deciding whether to get a working capital loan. [B-01] Working Capital Turnover Ratio Definition WCTR is a vital ratio for every company. This ratio will help you know how well your business uses its working capital to drive growth and boost sales. This ratio will also help you learn about the relationship between the funds you use to pay for your company’s operations and the money your company earns to make a profit and keep the venture running. The key aspects of WCTR are: You can measure how well your enterprise can create sales for every rupee of working capital you invest. If your WCTR is high, then it means that your business has made huge sales. If your WCTR is too high, it can mean that you need to raise more capital to drive future growth. How to calculate the working capital turnover ratio You can use a very simple formula to know what your WCTR is. But first, you must understand two inputs: Average Working Capital: Average working capital is your current assets minus your current liabilities. Net annual sales: Net annual sales are the gross sales of your company minus allowances, discounts, and returns. Now, to find out your WCTR, you need to divide your net annual sales by your average working capital. Working Capital Turnover Ratio= Net Sales / (Total Assets – Total Liabilities) Definition of working capital turnover ratio Once you know your WCTR, it can help you learn many aspects of your venture. Some of the main things you must know are: If your WCTR is high, you are a good manager. You can use your assets and liabilities to grow sales. This means every rupee of working capital is helping you get a higher sales value. If your WCTR is low, you are selling many goods on credit. It also means that you are buying too much raw material with cash. This can lead to a lot of bad debt or too much inventory. To know the ideal ratio for your sector, comparing WCTR from many entities in the same line of work is better. You can also track how their WCTR is changing over time. But if your working capital is negative, your WCTR will also be in the red zone. Need for a Working Capital Loan A working capital loan is a business loan that banks and NBFCs offer to business owners. The main reason to opt for this loan is when your cash flow and reserves cannot take care of the daily needs of your venture. If you can create enough sales and cash flow to support the growth of your venture, then you may not need a working capital loan. However, if the current liabilities of your business are greater than your existing assets, you will need a working capital loan. Here are some key aspects of this loan: This loan can help you take care of your pressing needs and ensure that there is enough money to keep it running. This business loan is meant for the short-term financial needs of your venture and is not ideal for long-term planning. You can better focus on your long-term goals and pursue them when your short-term needs are taken care of. If you have a seasonal business, this loan can keep the work going during lean times. Features of a Working Capital Loan Here are some of the key features of a working capital loan that you must know before taking a decision: Nature: Based on the lender’s rules, you may or may not need to offer security to get this loan. Most lenders need security if the loan amount is above a given limit. Amount: If you do not want to give security, the maximum loan you can take will be around Rs. 10 lakhs. There is usually no upper limit if you are giving security, as the loan amount will depend on the value of the security. Tenure: The loan tenure can range from 12 months to 60 months. This period can change as per the rules of the lenders. Credit Score: Your CIBIL must be at least 680 to get a working capital loan. To get the best deals, your CIBIL should be 700+. Process: Most lenders offer online or doorstep services for this loan. Hence, it is very easy for you to finish the process. [B-02] If you want to grow your business but are short on cash to take care of daily needs, then you can opt for a working capital loan. It is a great option to meet your short-term needs. If you want the best deal on a working capital loan, then Piramal Finance can be the option you have been waiting for. They offer great deals on all business loans and are always there to support you. You can also contact their experts for guidance.
08-11-2023
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Investment

Basic Questions To Ask Before Investing In A Mutual Fund

Financial freedom is a status everyone desires, but only a few achieve it. To achieve this goal, you may stick to the traditional 9–5 job or start your own business. However, another way to achieve financial freedom is through investing. The latter usually involves a lot of risks and is very time-consuming. Fortunately for you, mutual fund investing is a thing. They pool money from investors to purchase bonds, stocks, and other securities, and the profits or losses are shared among the investors. This article will answer some basic questions you need to ask before investing in a mutual fund. [B-01] Before selecting a mutual fund, there are some questions you should ask: What is your goal? Before getting into the risky world of investing, it is crucial to specify and assess your goals. Your risk preference, time frame, and investment objectives should be laid out. Your investment objectives will then dictate which mutual funds to consider. Long-term This strategy is mostly geared towards more conservative investors who prefer low-risk investing and seek stability in their portfolios. It ensures that the capital you invest stays safe but delivers comparatively lower returns. If this strategy suits you, you should consider equity funds as your mutual fund investment. Income This strategy involves slightly more risk than the long-term strategy. The main idea of this strategy is to create an income stream through dividends received from mutual fund investments. If this rings true for you, you should consider investing in dividend stock funds. Growth The riskiest of all the strategies, this entails investing in high- or very high-risk mutual funds in pursuit of high returns in a short amount of time. This appeals mostly to younger, risk-tolerant investors. If you aim to yield high returns, investing in liquid or small-cap funds would be the optimum strategy. How well has the mutual fund performed in the past? The past isn’t necessarily indicative of what the future has to hold. However, when it comes to mutual fund investment, in-depth research of how it has performed in the past is a must before any consideration of investing. Going through the annual returns would give you a better insight into how the mutual fund is affected and managed during both bull and bear markets. By doing this, you can rule out the odd cases and get a general idea of what to expect from the mutual fund, which makes it easier to decide whether or not to invest. Who is running the fund? The individual spearheading a mutual fund is a portfolio manager. The success of that specific fund is heavily dependent on how it allocates the pooled capital of investors. The way they manage the funds in unfavourable market conditions is of utmost importance and is considered one of the most important skills a portfolio manager should possess. Hence, before proceeding with any kind of mutual fund investment, in-depth research of the portfolio manager needs to be done. His track record should be scrutinized, and inconsistencies should be considered a red flag. A vastly experienced portfolio manager is usually safer than one with high, inconsistent returns. What are the expenses involved with a mutual fund investment? Apart from your invested capital, several expenses should be taken into consideration before investing in a mutual fund. All of these fees are explicitly disclosed by a mutual fund to offer full transparency to investors. There are two types of fees that investors need to bear when investing in a mutual fund. Shareholder Fees This fee is paid directly by the investor and is mostly tied to actions taken by the investor regarding their mutual fund investment. It involves the following: Purchase fee Account fee Exchange fee Redemption fee Sales load (similar to a brokerage commission) Annual Fund Operating Expenses These charges are paid out of the fund assets and are indirectly paid by investors. They consist of the following: Management fees Distribution fees Total annual fund operating expenses Other expenses (legal and accounting expenses) What are the tax implications of mutual fund investment? Like any other source of income, taxes play an important role and will cut off a share of your profits. In the case of investing in a mutual fund, taxes depend on the type of investment as well as its duration: DividendsDividends received from mutual funds are tax-exempt. However, a DDT of 29.12% is still applicable to the mutual fund during the distribution. If you have opted for equity funds, DDT drops to 11.65%. Capital Gains Tax (Short-Term)In terms of capital gained over a short period while investing in a mutual fund, usually less than 12 months, a fixed tax of 15% is applied if you have opted for equity funds. In the case of investing in other types of mutual funds, tax on capital gains is determined by the investor’s tax slab. Capital Gains Tax (Long-Term)Mutual funds that allow investments made under Equity Linked Savings Schemes (ELLS) exempt investors of 1.5 lakhs in tax. However, ELLS needs you to lock in your investment for 3 years. On the other hand, investing without ELLS, according to Long Term Capital Gain (LTCG) you will be exempted from 1 lakh. But if it exceeds the aforementioned amount, there is a 10% tax without indentation. [B-02] Conclusion Choosing the best mutual fund investment that aligns with your needs and beliefs is a lengthy process that must be done to ensure maximum benefits from the capital invested. But, if done correctly, it can provide a good source of income for the investor. Just like any other investment, a mutual fund investment is subject to risks. That is why financial advisors like Piramal Finance are in high demand. They simplify the process of investing in mutual funds while equally providing myriad other financial help and advice.
08-11-2023
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Banking

ATM Fraud: What It Is and the Different Types of ATM Fraud in India

As time has progressed, so has technology at an exceptional rate. It is no surprise that ATMs (Automated Teller Machines) are now mainstream in nearly every city/town. Whether it is on banking premises, in marketplaces, on regular streets, etc., you can often spot an ATM. With the advancement of automation, ATMs have undergone numerous changes. However, it is also a fact that ATM fraud and scams have become rather common as well. [B-01] What is ATM Fraud? Simply put, ATM fraud is a crime done through ATM machines. ATMs inevitably possess some or other vulnerability that scammers can exploit for themselves. Why do such people find ATM fraud an excellent means of unfair income? To understand the reason, we first need to analyze the components of an ATM very briefly. The computer analog system and a secure vault are the two primary components of an ATM machine. Thieves can get past the fringes of the safe with different kinds of lockpicks. As for operating system vulnerabilities, malicious software usually finds its way into the system through portable devices or when it is hacked during software updates. Access to the ATM’s operation system makes it simple for criminals to illegally draw out the user’s cash. More than a dozen types of malware exist today for ATM scams. Besides, the firewall protection for many ATMs is not up to scratch, increasing the possibility of cybercrimes. We shall now delve into the most common forms of ATM fraud. Types of ATM Fraud With immense progress in cyber networks and technical fields, digital crimes have also gained a great deal of momentum. ATM frauds, likewise, have also increased manifold. Criminals use various strategies to get access to ATMs and withdraw cash illegally from others’ accounts, be it physically or via technology. The most prominent types have been mentioned below. Card Shimming: This is the most common card swindle method used by con artists. It is a thin board that slips discreetly into a card reader. When you insert a card, it reads and stores data from the magnetic stripe without interfering with the usual card services of the bank. This way, the crooks acquire all the crucial data and create a version of your card that can be used in stores. Card Trapping: Fraudsters frequently find a way to install a device in the ATM Card Reader that prevents the card’s owner from withdrawing the card after the transaction has occurred. Scammers typically use hidden video cameras built into ATM faceplates to obtain PINs. They can then use the card left behind to withdraw the money from the ATM. Card Skimming: Skimming is an illegal practice in which a hidden device is inserted in the ATM and provides the ability to read details of the user’s card while the transaction is being made through the ATM. As a result, the criminal creates a duplicate card with his/her PIN code written on the magnetic strip. These cloned cards are used by criminals to withdraw cash whenever they wish. This is one of the most undetectable forms of ATM Fraud. Keyboard Jamming: Through certain means, fraudsters render particular keys on the ATM’s keyboard jammed to prevent the individual from withdrawing cash from the machine. As soon as the confused person leaves to fetch help, the person committing fraud enters the booth and withdraws the money since the user has already entered the necessary details. Phishing: This particular form of ATM fraud is committed when scammers craftily steal passwords, card numbers, and CVVs from cardholders. Elderly individuals and amateurs are their usual targets. The criminals make use of personal data to obtain access to accounts to which bank cards are linked, allowing them to withdraw the money at their will. SMS Fraud: In this type of ATM fraud, the fraudsters will send you an SMS saying your ATM card is blocked or has been used for suspicious activity, like an unauthorized withdrawal. To prevent it, they will ask you to enter your card details, like the card number, CVV, PIN, expiration dates, etc. Once you enter the details, those participating in this fraud will receive the details and use them online. This is one of the most common types of debut card frauds. Ways to Prevent ATM Frauds/Scams: Now that you are well acquainted with ATM fraud and its variants, it’s only understandable that you would also want to know just how to avoid such crimes. The following measures will be of great aid to you in preventing ATM scams from happening to you or your acquaintances. Do not use ATMs installed in lonely or sparsely populated regions. Before you put your card in the card reader, you should always look for any kind of suspicious device. The authorities should regularly have the ATM hardware and software monitored and updated. Do not reply to suspicious messages sent via SMS or email. A scammer is likely trying to gain access to your bank details. Be careful of any hidden cameras installed in the booth. Never disclose your card details, like the CVV, export dates, etc., to anyone, be it your closest colleague or relative. Avoid removing someone else’s card that has been inserted into the machine. The actual offender might frame you for the crime. If you sense people hanging around an ATM booth, it’s wise to avoid drawing cash from there. [B-02] Final Thoughts: It is common for people to use ATMs without being cautious enough, and they often become victims of ATM fraud. There is a necessity to spread awareness about this particular monetary crime among the public. Besides the general public, banks themselves should use the proper software to prevent these crimes from taking place. For more details on various types of debut card fauds and tips for avoiding them, consult the Piramal Finance website.
08-11-2023
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Tax Savings

Benefits Of The New Income Tax Regime

The revised personal taxation regime in Budget 2020 offers lower tax rates. But it also has greater tax brackets for individual filers. Also, it nullifies all exemptions and deductions. The Finance Minister gave taxpayers a choice between the old and new tax regimes. This added complexity to the situation. Taxpayers struggle to make sense of their income tax returns. That’s due to the complexity of the subject and the sheer number of variables at play. Also, several people calculate deductions by deducting them from their tax liabilities. Instead, they should deduct it from their gross income. This article provides a layman’s explanation of the new income tax regime. [B-01] Benefits of the New Income Tax Regime The tax rate changes under the new system are beneficial. Despite the new regime’s lower taxes, many accessible exemptions and deductions have gone. The new tax law requires less paperwork to be filed by individuals, and it’s also easier to file taxes. We now have more options for tailoring their investments thanks to the new tax structure. A taxpayer can only claim a deduction if they invest in one of the specified instruments. This characteristic will limit taxpayers’ ability to invest as they see fit. But it will give such people vast leeway to tailor their portfolios to their specific needs. Liquidity will improve due to the new tax system. Plus, lower rates will result in higher individual take-home pay. People, in this case, who couldn’t invest in particular things for some reason, will love this. With the new tax framework, investors can lock in their funds for a set time. We can no longer take advantage of deductions and allowances. The taxpayers who don’t have to invest in any way will gain from this. That’s because many investment contracts prohibit withdrawals during a certain time frame. They now have access to many investment vehicles. These are open-ended mutual funds that offer good returns. What’s good about the New Income Tax Regime? Those with minimal sway over policy programmes will enjoy the new income tax rate. There are seven progressive tax brackets under this plan. Paying a reduced upfront tax rate is an option for all taxpayers. It is a great addition to the current system for those who do not qualify for exemptions. Take the example of an individual with a total gross income of up to Rs 12 lakh. He also has investments worth less than Rs. 1.91 lakh. He was subject to a higher tax rate under the previous regime. That’s why the new system is better if you plan to save less money through loopholes. The new system is less complicated. Hence, fewer filing mistakes will occur if companies switch. Nirmala Sitharaman said the new income tax system would simplify filing. Thus, the new approach makes it easier to file taxes if you have no or few investments to report. Participation in the plan is voluntary. Hence, individuals can adopt a different system once the annual reviews finish. Yet, a taxpayer must have no business income to transition from the old to the new system. As a result, taxpayers will have more leeway to select the most helpful tax plan. To help prevent income tax fraud, the government has disallowed 70 exemptions. That’s because many people have exaggerated their tax returns to receive larger refunds. Yet, consider the elimination of so many exclusions under the current system. Due to this, the opportunity for abuse of the exemption regulations has lessened. What’s Bad About the New Income Tax Regime? In place of deductions, the new tax system offers lower tax rates. It helps those who don’t have much to invest. Still, it’s bad news for those who put away significant money in tax-free savings products. Products like the PPF or NPS. They will still owe more money to the government even if they switch to the new regime with a reduced tax rate. That’s because they won’t be able to take advantage of any exemptions. Under the current system, you can get a big tax break by deducting up to Rs 2 lakh in expenses. Seventy-used exclusions will no longer exist under the new income tax system. Hence, people may be less inclined to engage in tax-free programs. Thus, reducing household savings. The person’s future savings will be affected, despite the reduction in the tax rate. Here’s a line from Abhishek Soni, CEO of Tax2win, a tax advisory service. “Consider a taxpayer who contributes Rs 2,00,000 per year toward a tax-saving plan. At the age of 35, that person can expect to have more than Rs 50,00,000 in their possession by the time they reach the age of 60. The taxpayer benefits in two ways. First, they pay no taxes on the money they put into these assets. Second, they have a sizable nest egg when they retire. According to analysts, the new income tax system can deter real estate investments. Yet, it’s worth noting that buying and renting a home is a fantastic way to reduce your taxable income in India. Yet, the current tax plan does not provide such breaks. Hence, demand in the real estate market may decline. Suppose the insurance industry has to spend more money and time attracting investors. In that case, it will also suffer. As a result, insurers may see less business due to the new income tax structure. Which tax slab should you choose? There is no universal solution to this topic. That’s because it depends on individual circumstances and yearly income. The new income tax bracket and the previous bracket both have benefits and drawbacks. The new tax slab provides a range of income brackets with matching tax rates. Thus, whether you want to take advantage of these deductions and exemptions is up to you. In the previous tax bracket, there were allowances and reductions. So, before you file your taxes, reviewing and comparing both tax systems is wise. [B-02] Conclusion There can be a miscommunication with the implementation of the new tax regime. Still, you can address these with proper preparation. Before making an informed decision about which tax system to adopt, you must be careful. That’s because comparing the systems and highlighting their advantages is important. Thus, we recommend you continue with the old tax regime if you see no benefit in the new system. Individual taxpayers can use the benefits above and the cons to decide which tax regime is best for them. Individual taxpayers can make the best choice possible. They can do so if they take the time to read through all the details and compare the two taxes. Use the two different tax structures to your advantage. Did you love this post? Go to our blog for more valuable content!
08-11-2023
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Know More

Get the Best Tips on Money and Finance

What are the best tips for money and finance? How can one manage money more efficiently? Is money management good in the long run? Unfortunately, money management is not a course many high schools offer. Consequently, many people need help throughout their early adulthood learning how to manage their finances, apply for credit, or avoid debt. Read up on the subject as soon as you reach adulthood to learn the foundations of wise money management. [B-01] Advice on Finances for the Young and Promising Cash is preferred over credit cards as a method of payment. Exercise self-control. It’s one of the easiest but most important things you can do to help your money. The simplest way to reduce interest expenses while shopping is to use a debit card rather than a credit card if you want to wait until you have cash management. When you use a debit card to make a purchase, the funds are immediately taken out of your bank account. Until the balance is paid off completely each month, using a credit card is equivalent to taking out a high-interest loan. When used properly, a credit card might assist you in building a strong credit history in money and finance. Due to their ease of use and sometimes fantastic perks, credit cards are also immensely useful. The lender will benefit from your bad habit of carrying weight from month to month. For better money management, you must use them to your advantage rather than the lenders. Keep credit cards on hand in case you need them, and be sure to immediately pay off the whole balance after receiving the statement. You should only apply for the credit card offers you get, and you should take only what you can handle. Avoid bad advice and focus on what you can learn for yourself. Others will only exploit you if you don’t know money management. Some of these people, like dishonest budget advisers, could be malicious. Despite having the best intentions, people may need to be fully informed. Even if you know that the only way you can afford to buy a house right now is to get a high-risk adjustable-rate mortgage, well-meaning family members may still tell you how important it is to own your own home. Don’t listen to unwanted advice from someone who isn’t skilled enough in money and finance. Instead, learn the principles of personal finance to take control of your financial future. Once the facts are clear, don’t let anybody get in the way, not even a partner who drains your bank account or friends who push you to go out and spend a lot of money every weekend. Discover how to set up a budget so you can monitor your spending. After reading a few publications on the subject, you’ll comprehend the significance of two pieces of advice that all personal money and finance managers stress. You should only spend what you bring in and always be aware of your cash flow. Making a budget and a personal spending plan that enable you to track your income and expenses is the simplest way to accomplish this goal. Long-term financial savings may be attainable if you keep your major monthly costs, such as rent, as low as possible. You can buy a condo or house much sooner than your peers who pay more rent if you choose to live in a less expensive neighbourhood and save money with proper knowledge of money and finance. This is still true even if you can afford a gorgeous apartment with all the bells and whistles. Make an emergency fund to be ready for anything. You should always set aside money for both short-term and long-term goals. With the use of this simple technique, you may avoid debt while also getting a better night’s sleep. Even if you don’t make much money, this is still true. This task will be easy if you know money management. Savings you make in a typical savings account are never in jeopardy and are always available to you. However, your money and finance will depreciate over time due to inflation since this kind of account offers almost no interest. Instead of placing the money in a bank, you may put it in a short-term certificate of deposit, a money market account, or a high-yield savings account (CD). Verify your savings account’s rules to make sure you can quickly withdraw money if needed. Verify the security of your money. If you need the money for something you did not plan for, you must take urgent action to guarantee it is well spent. Even if you don’t have the money and financial support for all these things right now, you should consider them in the future. Money management is secure in risk-free assets like certificates of deposit, money market funds, and high-interest savings accounts, but you get back less, and the value of your investment grows more slowly. On the other side, the risk is much higher with stocks, bonds, and mutual funds. The value of your portfolio may decrease, but it is far more likely to rise. [B-02] Summing up To become an expert in money management, remember that you don’t need a master’s degree in finance or specialised training. The road to money management, the cornerstone for your other goals and desires, may be paved with these eight pillars. Although we don’t provide financial advice, we offer unbiased research and analysis on investing, trading, and other financial topics. Users should do their research before signing up for a service. Additionally, you ought to read more complete and instructive Piramal Finance articles.
08-11-2023
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Guide

A comparison of saving accounts and bank FD

The term “savings account” refers to a safe, reliable place where money can be stored that is not urgently needed and that pays modest interest rates. Today’s millennials feel safe storing their hard-earned money in a place like this. Banks use this money to provide loans to people. As people say, saving your money is as crucial as earning it, so a savings account does just the right job here for people. [B-01] The workings of a savings account It works in a very uncomplicated manner. A savings account facility is provided by banks and credit unions for customer convenience, both online and offline. Loans are obtained with this amount for people who need them. Every bank or credit union has a variable rate of interest. Some banks require a minimum balance in accounts to avoid charges. Money can be easily transferred from a savings account by means like UPI, net banking, cash withdrawals at ATMs, etc. Chequebook and debit card provisions are made for people holding a savings account. Advantages of a savings account It’s a safe and reliable way to stash away money. In the end, you earn benefits by earning interest on your amount. Liquidity is offered, so that if required, money can be withdrawn. Working is simple and straightforward. Disadvantages of a savings account There can be a temptation to spend money rather than store it when liquidity is offered. Interest rates are not very attractive and fluctuate a lot. Some banks have limited or restricted transaction allowances. If you are interested in opening a new savings account, read this article to find out more. About Fixed Deposits Introduction to Fixed Deposit Commonly known as a “bank FD,” it is an investment option offered by banking and non-banking companies with the main aim of saving money over time by investing an amount and earning interest on it. A lump sum amount can be withdrawn only when the tenure opted for the bank FD is over. Tenure can vary from 1-2 weeks to 10 years. It is one of the safest and simplest investment options right now with a higher rate of interest and holder benefits like loan allowance etc. These FD-offering companies have special schemes for senior citizens too. Types of Fixed Deposits Standard Bank FD- A very common fixed deposit that can be opened at a bank where the holder already has a savings account. The bank applies the interest rates accordingly. Cumulative bank FD– Best for investors with long-term profit goals, as money gets locked up for a specified period and can only be withdrawn after that particular period itself as a lump sum amount. It prevents temptations to withdraw money or use it before the lock-in period is over. Non-cumulative bank FD– Best for investors who want to pay EMIs; this enables them to set monthly, quarterly, half-yearly, etc. goals. This allows them to withdraw money on a regular basis while still reaping the benefits of the fixed deposit. Corporate bank FD- Offers good interest rates, it’s a fixed deposit at private firms, and investors should always check the credit rating of these companies before investing. Senior citizen bank FD– A special fixed deposit scheme for people over the age of 60. They get a slightly better interest rate than others. Tax saving Bank FD– Used for tax savings and exemption of taxes, it has a lock-up period of around 6 years during which money deposited cannot be touched. Bank FD for NRIs- A special fixed deposit scheme for NRIs (non-resident Indians), so that they can easily invest money in India and earn tax-free income from the interests earned on it. Advantages of a Fixed Deposit Bank FD offers assured returns no matter the rise or fall of the market. Interest compounding is highly beneficial. Offering slight liquidity. Easy and reliable process. Senior citizens benefit. One-time effort bearing great fruit later. Tax benefits. Can be used to obtain a loan. Disadvantages of a fixed deposit Fixed interest rates throughout the tenure. Locked up funds. Penalties or losses on withdrawal before the tenure’s completion. Interests earned are taxed. To read more about FD, check out these articles: link1 link2 link3 Comparing Saving Accounts and Fixed Deposit Saving AccountFixed DepositAim: To keep funds that are not in use at the moment safe.Aim: Earn interest from a one-time investment, focused on a long-run benefit.The liquidity offered, i.e., one can withdraw money in case of need without compromises( it can cause temptation though)Liquidity is somewhat compromised as on withdrawing money before the completion of tenure, loss on FD interest rates and penalties are to be paid in some cases.No Fixed tenure is to be followed.A definite tenure is to be followed, it can range somewhere between 1-2 weeks to 10 years.Saving account rate of interest ranges between 2-4%FD interest rates range between 5-8%One cannot avail loan based on this.One can obtain a loan based on a Fixed deposit.No Tax benefits earned.Tax benefits can be earned.Money can be transferred into a saving account regularly.It’s a one-time investment, money can only be put into the account once in a lump sum way.Withdrawal and transfers are available anytime using modes like ATM cash withdrawal, UPI, net banking, etc.Withdrawal and transfer are restricted before tenure completion and can cause FD interest rates losses and Penalties. [B-02] Hopefully, this comparison gave you a clear insight into savings accounts and fixed deposits. Investing money in the right place is crucial, and the right research can help you make that decision feel like a cakewalk. There are several market leaders and experts such as Piramal Finances, you would find more information and guidance for finance and Personal banking related topics at https://www.piramalfinance.com/personal-loan
08-11-2023
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7 Advantages of Buying a Home Over Renting

Most people have always wanted to own a home of their own. However, many factors determine whether it is better to buy a house or rent one. Some of them can be the burden of repaying a home loan, the preference to live in the same place forever, or managing other financial obligations. Although owning and renting have advantages and disadvantages, the decision rests largely on the individual. But there is one thing that both situations have in common: a consistent and regular income. In case you are still confused, here are some benefits of purchasing a property instead of renting. [B-01] Perks of Owning a House Over Rental Housing It gives a sense of security and stability There is no doubt that purchasing a home involves significant financial commitments. It is not always a simple choice. However, when you choose to buy a home, you are not only repaying a home loan but also providing your family with a place to call home. A place where they can feel at home. After a hard and exhausting day, returning home will bring you the necessary satisfaction. You will feel fulfillment, stability, and security each time you return home. After all, your home is the only place that can make you feel at ease. Tax benefits for home loans When you take out a home loan, you must return the principal plus interest to the lender. If you are unaware, you can save a significant amount of taxes when repaying a home loan. You may be wondering why you should buy if you also have to pay interest. However, the reality is that renting becomes more expensive over time. You receive no benefit from the rent you are paying. Instead, your rent would also increase every year. But in the case of purchasing your home, you will receive a tax break after paying off your home loan. Possession of the home Rent is a monthly payment that you spend without producing or developing any tangible assets. Your landlord receives a set amount each month in exchange for you looking after and maintaining their property. There are two advantages to being a homeowner. The first advantage is that you’ll have a place to live and the freedom to do whatever you want. You will have privacy. The second and most essential advantage is that you’ll own the house, which would be your permanent residence. There are no issues with the landlord Have you ever considered how frequently you’ve moved due to problematic landlords? The sad reality is that most people move because there is always something about their current residence that does not sit well with their landlords. Owning a home will ensure that landlords are no longer an issue. You will have the freedom to remodel your home whenever you want, do whatever makes you feel good, arrange things how you want them, and much more. You won’t need to wait for approval for how your home should feel and look. Even if getting a home loan requires a lot of paperwork, it will be less stressful than managing a landlord. Reduces your costs of living over time Most individuals imagine having no debt or rent to pay. You don’t need to think of it as a myth because it is actually doable. Even though it may seem like a very difficult effort to pay a home loan for “X” number of years, it is still preferable to paying rent for the rest of your life. You will be sure that a home loan will conclude when it is due, and you will be well aware of this date. However, that will be different if you are paying rent. You will consistently have to pay monthly rent if you want a home or a place to live. And, thanks to home ownership, you will eventually be able to reduce your living expenses. No fear of uncertainty If you are a renter, you will always live in fear of your lease expiring or of your landlord ordering you to leave the property at any time. After all, the likelihood of asking to leave someone else’s place increases if you are staying there. When you own your own home, you will no longer be concerned about the unknown. You won’t have to be concerned about your lease expiring or finding a new home quickly. If you were to live in your own home, you wouldn’t have to worry about negotiating your rent every year and would have the freedom to set your own rules. A house is a long-term investment Making an investment for the future when you purchase your dream house means more than just buying a place to live. Even though taking out a housing loan today can cost you more money, in the long run, your house might end up being worth more than you paid for it. You’ll feel secure and stable in your home, and owning a property will add to your net worth. Tomorrow, your home will become a family heirloom that your children will cherish forever. Additionally, property values always go up, so your home’s value is unlikely to decline anytime soon. Therefore, investing in a house will only result in you having more money overall. [B-02] Conclusion Always remember that purchasing a property requires much patience and careful consideration of your finances. But there are many benefits to buying your own house as opposed to continuing to rent. There are numerous factors to consider before taking this important step in your life and applying for a home loan. You don’t get to have a fantasy of getting a brand new house every day. So, you should thoroughly explore and ask questions before taking every small step. Check out Piramal Finance and study its offerings to learn more about how and why purchasing a home will be advantageous. You will no longer have any doubts, and you will learn a lot about housing loans and home financing.
08-11-2023
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