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Personal Loan

Why Use An EMI Calculator Before Taking Out A Personal Loan?

Personal loans are very popular among people with urgent money needs. Since there is no need for collateral and it takes only a few hours to process, you can use personal loans for all kinds of expenses. Only a few papers must be given for this loan, as most lenders offer you the choice to apply online. Also, you do not need to pay any lump sum amount and must pay only the EMIs. Though, it is vital that before you apply, you must use an EMI calculator for personal loan. It is a free tool that you can get online, but it is very useful. You do not need to provide any personal information to use it. Hence, the entire process is highly secure. Using a personal loan eligibility calculator will allow you to know the EMIs you must pay before you decide on the amount you want to take out as a personal loan. Read on to learn why you must use an EMI calculator for personal loan. [B-01] What is a personal loan eligibility calculator? An EMI calculator for personal loan is a very useful financial tool you can get for free online. You can access this tool on a website or as a mobile app. Like a home loan EMI calculator, this tool allows you to learn how much EMI you need to pay monthly during the loan tenure to repay the amount. It usually asks for details such as the value of the loan, duration, and interest rate. With a personal loan eligibility calculator, you can see the EMI amount, total interest, and principal paid. Some apps will also offer you the option to get a loan schedule to understand the repayments better. Hence, you can know the EMIs you need to pay and plan your finances accordingly. How to Use a Personal Loan Eligibility Calculator It is very easy to use a personal loan eligibility calculator. This free tool is available on many sites or mobile apps. Here are the steps to follow for using an EMI calculator for a personal loan: Search for ‘EMI calculator for personal loan’ to access websites offering this tool. You can also visit the app store on your smartphone and download an app. Open the link or app, and you will be able to see the EMI calculator on your screen. Enter details like loan amount, tenure, and interest rate. Check the details once more, and then click on the submit button. You will now see all the key details of the personal loan, such as the EMI, total interest, total principal, and total amount paid. Some apps will also let you see a payment schedule to help you better know your EMI value. You can use this tool for various lenders and learn about the best offer. Why Use An EMI Calculator For Personal Loan? You can avail many benefits by using an EMI calculator for personal loan. Here are some of the perks that you can get from this tool: Free to use: You must use a personal loan eligibility calculator before you take out any loan. It is a free tool that is present on many websites or mobile apps. As you do not have to pay anything, it is ideal to compare various loan offers with this tool before you apply for a personal loan. Quick: If you try and calculate the EMI on personal loans manually, it will take many hours. Also, there is always a chance of an error, as you need to know about the EMIs for the entire duration of the loan. But these issues will not bother you if you use an EMI calculator. This tool will finish the process in a few seconds and display the results on your screen. There is no chance of an error with an EMI calculator for personal loan. Easy and Simple: You do not need any special skills to use this tool. It is very easy and simple because you only have to enter basic information like loan amount, tenure, and interest rate. It will take care of everything else and show the results on your screen in a few seconds. This helps you decide which loan offer to accept. Discreet: There is no need to provide personal information like your name, income, age, or contact number to use a personal loan eligibility calculator. Hence, your profile will not be known to anyone, and you will not get any spam emails, calls, or texts. You can also use it on various sites or apps to see if the results are correct. [B-02] Final Takeaway Now that you know all about the benefits of using an EMI calculator for personal loan, you must get hold of an app or a website that offers this tool. It would be best to use this tool to compare multiple lenders and their offers to make a better decision. If you want the best offers on your loan, visit the Piramal Finance website. They offer a host of other loans to help you meet your needs.

08-11-2023

Personal Loan

Best Advantages Of Applying For Personal Loan Online

The old saying that life is full of surprises is not nonsense. Life can be unpredictable and toss you a curveball at any time. Though it’s preferable to expect such problems in advance, this isn’t always possible. However, unanticipated costs can occur at any time. Hence, paying for them is not always possible if you also have to meet other, more vital obligations. Not only that, but unplanned costs can arise at any time, not only in times of crisis. A cash shortage can make it difficult to fulfil sudden desires, such as buying a commodity. A personal loan can help with any of these situations and more besides. Personal loans are the best and can help you meet various monetary issues. In this article, we will discuss the benefits of applying for a personal loan online. [B-01] What is a personal loan? Personal loans are unsecured forms of credit that you can use for any purpose. You don’t need to incur any expenses to qualify for a personal loan. You can use a house loan to finance a home, a car loan to finance a vehicle, and a student loan to cover educational fees. Still, you can put a personal loan toward anything you see fit. These include vacations, gadget purchases, debt reduction, house improvements, and small business funding. The lender cannot control where and how you spend the money. Furthermore, since personal loans are unsecured, no collateral is required to apply. Getting a personal loan online has many advantages. 5 advantages of applying for a personal loan online They provide helpful interest rates and extended terms for payment. Suppose you have a good credit history and borrow a modest amount. In that case, you may qualify for a low-interest rate on a personal loan. Plus, you have little to fear if you are financially secure and have an excellent credit score. Due to the low interest rate you can get, it won’t be hard to fit the loan into your budget. Omitting this step is helpful to get the money you need in a pinch or pursue your goals without taking on excessive debt. They don’t need any security or collateral. When seeking a loan, you may need to provide collateral. It is an asset of value that you can use to reassure the lender that you will repay it. The lender can rest easy with this guarantee. The creditor might sell the collateral to recoup their losses if you do not repay the loan. Collateral is used in many sorts of loans to offset the associated risk. One of the best things about getting a loan online is that you don’t have to put up any collateral. You can receive a personal loan online without putting up any collateral for a large sum, up to Rs 30 lakh. Personal loans are available for most people. Therefore, lenders waive off all collateral requirements. Offering a capital asset as collateral to a lender might be challenging. This is true for the younger generations. You might not have a lot of money or assets while you’re young. But this need not interfere with your ability to meet your financial obligations. A personal loan can provide you with a large sum of money with little collateral. Hence, we allow you to take care of your financial demands. They are instant and trouble-free. One can save a lot of time and trouble by applying for a personal loan. You can apply for a personal loan online from the comfort of your own home. Moreover, you will receive the money within a few hours to a few days. Nowadays, borrowers can get a personal loan almost instantly. You must provide documents verifying your identity and residence to apply for a loan. The lender will check these and your credit score to ensure their accuracy. If your loan gets approved, the lender will put the funds into your account. Getting things done is a breeze and takes very little time. This eliminates the need for repeated back-and-forth travel. The speedy services provided by lenders help borrowers. They allow borrowers to focus on other aspects of their lives. That, too, while still having easy access to the finances they need. A personal loan removes the problem of standing in lines. There is no need for you to be there in person. This feature is a lifesaver when you’re in a bind and need cash quickly. They are simple to get when desired. The paperwork for a personal loan is very light. Approval is determined solely by your credit rating and payment history. With a high credit score, you can easily borrow a large sum of money. A personal loan is far easier to get than a business loan, which requires extensive paperwork. Moreover, it also requires an investigation into your company’s finances and prospects. Thus, you can apply for a personal loan online and get it approved easily. They have a wide range of applications. Individuals can borrow up to Rs. 30 lakh with a personal loan. Hence, this type of financing is flexible enough to meet a wide range of budgetary needs. You may use them to get a new phone or fix your house. Due to their rapid funding, you can also use them for urgent healthcare expenses. Personal loans’ adaptability and ease of usage make them suitable for various situations. Furthermore, personal loan applications do not need disclosure of the loan’s intended use. That means you can divide the funds however you see fit. For example, you could use some of it toward tuition for a new language. And use the rest to fund your upcoming vacation. The decision is up to you without any input from the lending company. [B-02] Conclusion A personal loan is among the best options currently available for immediate funding. That’s because online loans like personal loans offer many benefits. But no matter the urgency, you can use a personal loan whenever possible. When you apply for a personal loan online, you make comparing loan offers and picking the right one easy. An EMI calculator is an online perk that helps you make informed loan decisions. You can do all this without leaving your house or workplace.

08-11-2023

Guide

Gold ETF vs Sovereign Gold Bond vs Physical Gold

Are you planning to buy gold? Do you have trouble finding something in which to invest? You are confused between gold ETFs, sovereign gold bonds, and physical gold? So now, in this article, you will get all the information about what gold ETFs are. What are sovereign gold bonds? Whatical gold? and the difference between a gold ETF, a sovereign gold bond, and physical gold that you should know. [B-01] What are gold ETFs? Gold ETFs track US gold prices. These passive funds track gold prices by buying a basket of bullion. Like other gold ETFs, investors can buy through a Demat account. One gold ETF is worth one gram. The Bombay Stock Exchange and the National Stock Exchange trade exchange-traded funds (ETFs) like this. Gold exchange-traded funds (gold ETFs) are the only way to profit from gold’s market spread. Gold exchange-traded funds (Gold ETFs) let investors sell their shares at the domestic gold price. What are sovereign gold bonds? Gold bonds issued by a sovereign nation. As a liquid investment option, sovereign gold bonds can replace the need to buy real gold. Bonds are a type of debt security that pays their holders interest and promises to return the principal when the bond matures. The Reserve Bank of India (RBI) is responsible for issuing Indian government sovereign gold bonds (SGB). Investors must pay the issue price in cash and may request a cash redemption of their bonds at maturity. Interest is paid regularly, and investors are repaid based on the bond’s value and the price of gold at the time of repayment. Sovereign gold bonds can be purchased in increments of one gram up to four kilos. Sovereign gold bonds also have a maturity of 8 years and pay interest at a rate of 2.50% per year, compounded every six months. What is physical gold? Physically buying gold has always been the best way to get the metal, whether you want it for yourself or as an investment. Physical gold is the underlying asset for both physical gold exchange-traded funds and sovereign gold bonds in India. This sets the price of gold in the country. As the price of gold gradually climbs over time, investors around the world view it as a valuable asset that may be used as a hedge against the risk of loss in other investments. A big benefit of owning physical gold is that you can get a gold loan with low interest rates. Lenders can successfully take out gold loans with physical gold pledges as collateral. The loan amount and interest rate for a gold loan are both determined by the total value of the gold pledged as collateral. Lenders will store the borrowers’ gold in a secure location during the loan term and return it to them after the loan is paid in full. The most direct way to get gold is through physical gold. Bullion is the name for large amounts of gold, which can be made into bars or coins. Gold bullion is worth more because of how much there is and how pure it is than because of its face value. Even if a gold coin has a face value, its value on the market is based on how much fine gold it contains. Gold ETF vs. sovereign gold bond vs. physical gold Unlike sovereign gold bonds, which may be purchased and sold around the clock, exchange-traded gold ETFs and SGB are only available for investment between the hours of 9 a.m. and 3:30 p.m. Because of this, liquidity is the key distinction. SGBs have a 5-year lock-in term and a significant transaction cost if sold before maturity. In contrast, sovereign gold bonds are not subject to any such lock-in and might be sold the very next day if desired. In exchange for Sovereign Gold Bonds, you receive the equivalent monetary value of gold stored in a secure facility. In contrast to SGBs, sovereign gold bonds come with insurance that covers the entire value of the investment. Besides the one-time GST charge of 3%, there are no further fees associated with purchasing sovereign gold bonds. The annual expenses of a gold ETF are typically between 0.5 and 1%. Contrary to gold ETFs and SGB, purchasing digital gold does not necessitate a Demat account. The purity and security of physical gold in its original form are often questioned. The lack of oversight is a weakness of sovereign gold bonds. Investors in exchange-traded gold funds and gold mutual funds are exposed to market volatility. There is a small possibility of default on sovereign gold bonds due to a change in government policy. Gold in its various forms (physical, digital, gold ETF, and mutual fund), is the most liquid investment option because it can be bought and sold at any time. However, sovereign gold bonds are locked up for five years and are consequently less liquid. [B-02] Summing-up The purpose of this article is to give a comprehensive examination of the differences between gold ETF, sovereign gold bonds, and physical gold. You’ll need to be a financial whiz if you want to pay off your loan without going broke. Borrow only what you know you can afford to repay and work hard to pay off your mortgage and other debts as soon as possible. Your other major financial goals should not have to take a back seat if you use your own money to buy gold, and you should have enough cash left over after making the down payment. Visit Piramal Finance for even more in-depth, educational articles about money.

08-11-2023

Home Loan

6 Reasons Why Home Loans are Good for Women

Many people would rather own their own home than rent one. This transformation is possible through various money-lending institutions, like banks. A home loan, called a mortgage, is a sum obtained by an individual. It can be repaid over time in convenient monthly instalments. A home loan application contains the eligibility criteria and interest rates. It also includes down payments and associated EMIs. With the rise in real estate prices, home loans for women can help them realize their dream of purchasing a home. The rising cost of real estate has increased the number of home loan applications. [B-01] Various Types of Home Loans New advancements in the financial sector have led to evolving trends in the housing loan domain. A major advancement in this sphere includes the evolution of the different kinds of housing loans. Here are some popular home loan options that you can consider: Basic Mortgage This is the most common type of loan that permits you to borrow money from the lender to buy a property of your choice. After making the transaction, you can then pay back the loan to the lender in equal monthly payments. The lender may approve a home loan for up to 80%–90% of the cost of the property. Loan for Home Construction Another type of home loan available in recent times is the loan for home construction. You should consider this home loan option if you already own land and want to build your dream home. A home construction loan gets disbursed in installments. It depends on the construction progress. In contrast, in a standard home loan, the lender makes a lump sum payment of the loan amount. This type of loan has an approved amount determined by the estimated cost of the project. Home Improvement Loan A home expansion or improvement loan is one of the most popular kinds of house loans. A home expansion loan can be helpful if you currently own a house but wish to add a room or a floor to it. An existing home can get renovated with a home improvement or renovation loan. Millions of rupees might get spent on a home addition or refurbishment. These loans ensure that you will be able to grow or improve even if you need to save more money. Six Reasons Why Availing of a Home Loan Application is Viable For Women Lower interest rates Lenders believe that women are more trustworthy borrowers than men. They give women unique interest rates on house loans. The main aim is to encourage them to invest in various assets. This makes borrowing money and paying back the principal very affordable for them. The subsidized rate may be 0.05 to 0.1% lower, but it would affect the EMI amount. Specific and simple eligibility criteria Women can obtain a home loan ranging from Rs. 30 lakh to Rs. 3.5 crore to purchase the home of their dreams. To entice female borrowers, more and more lenders are tightening their restrictions. The specific eligibility requirements make it simpler to apply for a house loan. Any woman between the ages of 23 and 58 with at least three years of work experience can apply for a mortgage. This flexibility in age criteria should motivate more women to opt for a housing loan. Extension of repayment terms in home loan applications Given that a home loan can be repaid over up to 25 years, this allows customers to repay the amount via cheaper EMIs. Additionally, there are no fees associated with partial prepayments or foreclosures. This is a major relief for women who are seeking a home loan. Tax breaks and reduced stamp duty The stamp duty assessed is 1% to 2% less for real estate registered in a woman’s name than for a male borrower. With tax deductions, a woman borrower can save a sizable sum. On interest repayment, an amount between Rs. 1.5 and Rs. 2 lakhs can be saved. Loan benefits from being a co-borrower Women co-borrowers are also eligible to apply for loans. While borrowers have a greater and better likelihood of getting loans if they have a high income, the participation of a co-borrower can help equalize the burden of loan repayment. Benefits of different housing loan schemes Co-ownership is necessary under the Pradhan Mantri Awas Yojana (PMAY) house loan program. The PMAY program also provides an interest subsidy of up to Rs. 2.67 lakh. It gives preference to applicants who are women. People from disadvantaged groups and Low-Income Groups (LIGs) who want property ownership can also enjoy the benefits of this scheme. Widowed or single women can gain a lot by applying under the PMAY program. Prerequisites for Women’s Home Loan Applications If they meet the eligibility standards, women between the ages of 23 and 58 can apply for a home loan. Before beginning the home loan application process, you should speak with the lender. This is because the eligibility criteria can differ between lenders. A salaried employee or self-employed person Yearly income as per the lender’s terms and conditions A credit score of 700 or higher A rented home where the applicant has lived for at least a year Documents Required for Women’s Home Loan Applications The following is the list of required documentation for women’s home loan applications: Identity Proof: PAN, Aadhar, driver’s license, passport, voter ID, etc. Address Verification: Aadhar Card, Ration Card, or Recent Utility Bill is required Income Documents: W-2s, bank statements, and ITRs Two passport-size photos The paperwork listed above must be sent with the completed home loan application. The procedure of approving a home loan application and disbursement can take up to 7 days. [B-02] Conclusion Home loans for women are currently in demand due to their versatility and many other benefits. For instance, female borrowers have much lower default rates. As a result, lenders give female applicants for home loans priority. Moreover, home loan applications will get approved with more significant sums. By availing of the offerings of various financial firms, it is now possible for women to own their homes. Together, these characteristics make home financing more convenient and affordable for women. Check out Piramal Finance for similar blogs that can help you clear any doubts about home loan applications. You may also take a look at the products and services they offer.

08-11-2023

Business Loan

All You Need to Know about Business Loan Fees and Charges

If you want a business loan, you should be aware of the high fees that financial companies charge. Many fees come with business loans. Administrative fees, interest rates, document transaction fees, EMI bounces fees, prepayment fees, no opposition certificate fees, foreclosure fees, loan change fees, post-dated check charges, and many other fees are just some of the costs. So, when you ask a financial organisation for a property against loan, you should be told about all the fees. Now, let’s quickly go over the fees and costs that come with business financing. [B-01] A List of a Few Essential Fees Charges for Post Dated Cheques Fees for Late Payments Fee for Cancelling a Loan Payment in Advance Processor Charges Rate of Inflation Bounce Fees for Equated Monthly Instalments (EMIs) Charges for Post Dated Cheques Process Charge The amount that is charged for the Property Against Loan process is the processing fee. The administrative fees cover the cost of checking your personal or business credit score and the costs of running the business and making sure the loan is approved. So, the lender would take these costs out of the value of your loan before putting the money in your account. Because of this, administrative fees vary from one bank to the next. Inflation Rate in simple terms, the interest rate is the cost to the borrower during the loan. Interest rates are shown in terms of a percentage of the principal. It is called the Annual Percentage Rate and has been worked out monthly and yearly. Bounce Fees for Equated Monthly Instalments (EMIs) Don’t forget to pay your EMI on time. Both financial and non-financial organisations have rules that say you have to pay property against loan. Even EMI payments that aren’t paid on time hurt your CIBIL score, and you have to pay fines. This EMI bounces because either your signature needs to be corrected or you need more money in your account. Charges for Equated Monthly Instalments (EMI) Returned Checks If you don’t make your EMI payments on time, you will have to pay extra fees according to the rules of financial and non-financial institutions. Even when EMI payments are late, CIBIL scores go down, and harsh payments are made. This EMI bounces because either the signature needs to be corrected or there needs to be more money in the account. Online Convenience Cost You must pay a fee to use this service to get your business loan online. You can use the user ID or password the lender gives you when you agree to the loan terms. But now that many financial companies have apps that let you check the status of a property against loan, you don’t have to pay a fee. Charges for Foreclosure or Prepayment If your business loan is foreclosed, you must make one big payment instead of the monthly EMI. They will ask you for a property as collateral for a loan. The foreclosure fee is based on how much the loan was for. But right now, some financial organisations pay NO advance fees. Let’s break down the following sentence: Let’s say you take out a business loan because you need money to grow your company. With the help of business loans, your business will grow and start making money. In that case, you get the full amount of money for the property against loan before the term is up. Charges for Reviewing Documents This is the cost to the lender of processing the property against loan application papers. The document fee takes care of the employee’s fees. So, this cost will depend on how much you borrow. When processing a loan, a bank might charge basic charges. Prepayment Advice for Business Loans It’s smart to agree to pay off a business loan before it’s due. If handled right, prepayments can save the company a lot of money. But prepaying without enough planning could cause cash flow problems that could hurt the business. Take a look at these tips for paying off business loans early to learn how to avoid these problems. The optimal time to prepay the loan must be based on the project’s cash flow. Avoid prepayments even during leaner months of the business cycle. Before making a prepayment, consult the amortisation plan. Verify any appropriate prepayment penalties. Benefits and Drawbacks of Business Loan Foreclosure Foreclosure is the legal process by which a lender tries to get the money owed on a missed payment by buying or selling the property used as collateral for the loan. A borrower usually defaults when they miss a certain number of payments each month. Still, it could happen if the borrower follows the other rules of the mortgage contract. When a business, usually a bank, forecloses, it takes back property bought with money borrowed but not paid back as promised. It is important to eliminate corporate obligations to keep a healthy working capital reserve. This is only sometimes a good choice. So, business owners should know the pros and cons of such ventures. See this table for a quick look at everything. It offers low-interest business loans that are cheaper than what other lenders offer. This makes it easier for our clients to make good decisions. Pros Reduces interest Makes current liabilities smaller Cons Puts pressure on cash flow Attracts a charge of foreclosure [B-02] Conclusion A company can get a business loan to pay for costs it can’t cover on its own. Some business owners use business loans to pay for salaries and wages when they start a new business. On the other hand, some people lend money for office supplies, inventory, and new business ideas. Lenders want to know how the money will be used, so business owners must ensure they have a thorough plan. To avoid having your property against loan application turned down, it’s important to make a good first impression on lenders. Businesses can borrow money in many different ways. To learn more about these, you can visit Piramal Finance and make an informed decision.

08-11-2023

Business Loan

All You Need to Know About Benefits of MSME Business Loan

Every small business will need help with money at some point. Most Micro, Small, and Medium-Sized Enterprises (MSMEs) usually need financial help to move up the growth curve. The money might be needed to cover operating costs, improve infrastructure, or buy the right tools. The money that comes depends on the owner’s judgement and priorities. Many organisations have access to different ways to borrow money to get the funds they need. However, when it comes to MSMEs, an MSME business loan in India is the primary way used to meet financial issues. [B-01] What is an MSME Business Loan? Micro, small, and medium enterprises (MSMEs) can get an MSME loan to start a business, grow an existing one, or pay for other business costs. Loans for MSMEs were often easy to get. But you must meet some requirements to qualify for this kind of loan. According to the Government of India and the RBI, MSME loans are “loans for commercial firms to help with financial, infrastructure, and other sectors.” Banks give out these loans through government programs and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The Indian government set up the Ministry of MSME and SIDBI to make it easier for loans to go to the MSME sector without using security. This plan says that the lender must: Offer to look at the project’s viability and use the financed resources as the main security for the loan. If an MSME unit doesn’t pay back a loan, the Credit Guarantee Scheme (CGS) will pay up to 85% of the amount owed to cover the lender’s loss. For a business to get an MSME loan, it must meet certain requirements spelt out in the program. Benefits of MSME business loan Until recently, obtaining an MSME loan required a trip to the lender’s office. Meanwhile, several lenders have automated this borrowing procedure for their clients because of the banking industry’s growing use of technology. Consequently, applying for an MSME business loan is now simple and convenient from home. Applying online for a digital company loan has numerous advantages. Among them are: No conditions associated To get an MSME business loan, business owners don’t need to put up any collateral. Small businesses don’t have a lot of assets, so they can’t use their stock as collateral. This is why this happens. Putting their valuable resources up as collateral with banks in exchange for cash could hurt their output if something goes wrong. Accessibility Timing is crucial, especially if a company has an unplanned disaster and needs money immediately. In reality, sometimes needing more resources makes it hard to run a business. This is why SME business loans are a good idea. Getting an MSME business loan is easy and doesn’t cause any trouble. There is also less paperwork to fill out, and the loan amount is quickly distributed. Loan application process without paper To get a loan, you must show the lender many different things. During the online loan registration process, you can use the lender’s website to send the lender all the necessary paperwork. You must keep a paper trail and make the loan application process easier. If you don’t have digital copies of the required documents, you could scan them and upload them as pdf or jpeg files to the lender’s website. Also, to keep the application process from getting stuck, ensure the documents you send are clear and easy for the borrower to understand. Unsecured type of borrowing MSME loans are not like most business loans because they are not secured. It means you don’t have to give the lender anything in return for credit. Because of this, MSME business loans are some of the easiest business loans in India to get. Protected MSME loans are also available from several lenders. You could put something up as collateral to lower the cost of the loan. The best MSME business loan for you will depend on the lender’s terms and your ability to pay back the debt. A flexible payback period to make it easier: Before applying for a loan, one of the most important things to think about is how easy it will be to pay it back. When the debtors have a reasonable amount of time to pay back their debt, they can better keep up with their payments and avoid defaulting. In this way, the repayment terms of an MSME business loan are flexible, which lets a business owner better plan his budget. Short-term commitment: Small businesses often use MSME business loans to pay for their immediate needs. This method gives the borrower some freedom because there is no long-term commitment. A short-term commitment also lets the administration manage working capital and use resources in the best way possible. When should one apply for an MSME business loan? You’re buying land so you can start a business. You’re putting money into a factory. You are buying things for a factory, like a machinery and other things. You buy raw materials to meet the capital needs of your business. It would help if you paid your workers’ wages, bills, and debts. You want your business to grow. You need money to pay for marketing and advertising. For the organization to be fixed up, money is needed. It is easy and quick to get an MSME business loan. Most lenders will give you the loan money quickly as long as you have all the paperwork in order and have shown that you can be trusted. There is also little information. Some lenders say that the approval process takes no more than a few hours. [B-02] Conclusion The interest rates on MSME business loans are low, so it only takes a small amount to repay them. Compared to other conservative financial products, it helps you save money. Most MSME loans also don’t need any security. Small businesses often use these loans to meet immediate needs. This gives the borrower some freedom because there is no long-term commitment. With a short-term agreement, you can keep track of your cash flow or use your assets well. To learn more about these, you can visit Piramal Finance and make an informed decision.

08-11-2023

Electronics

7 Key Factors to Check Before Buying a Stock

To earn money by buying stocks in the share market, you must prepare ahead of time and maintain discipline in the face of temptation. If you choose to invest in stocks, making sensible judgments might pay off in the long term. If you want to buy from the share market, you need to study and assess them before you buy any. As sensible as investing in the stock market seems, not all people can select the right stocks and profit from them. Here are seven things to keep in mind to make a wise choice. [B-01] What Exactly are Stocks? A stock, also known as equity, is a form of stock that represents ownership of a fraction of the issuing firm. Shares, also referred to as stock units, entitle their holders to a portion of the firm’s profits based on the number of shares they own. Most investors’ portfolios are comprised of stocks, primarily purchased and sold on stock markets. New rules must be followed throughout stock trades to protect investors from unfair practices. How to Pick Stocks in the Share Market: 7 Aspects to Keep in Mind Time Frame Before purchasing a stock, you must first know your timetable because it is a major factor in deciding whether or not to do so. You can choose a short-, middle-, or long-term investing period based on your money goals. Short-Term Any investment you intend to hold for less than a year is considered short-term. The best investments to make if you intend to hold a stock for less than a year are blue chip stocks that pay dividends. Mid-Term You intend to hold a mid-term asset for between one and ten years. You should invest in high quality stocks from emerging share markets with a modest level of risk for midterm investing. Long-Term All assets you intend to hold for more than ten years are taken as long-term assets. These assets can get you a sizable return and have time to recover if something goes wrong. Investment Approach Some vital tactics that good investors employ are listed below: Value Investing Warren Buffett’s approach to making a lot more money in the stock market is to buy undervalued shares of rival companies. Growth Investing It involves buying stocks whose earnings increase consistently along with the share market. This kind of investor thinks the upward trend in the share market will last and present a chance for profit. Income Investing Last but not least, people ought to hunt for high-quality shares that offer sizable dividends. Stock dividends can result in income that can be spent or reinvested. Before buying stock in the share market, a plan is vital. Liquidity An asset’s liquidity is defined as how easily it can be sold or turned into cash. Both stock exchange sales of an instrument at maturity and borrowing can provide liquidity. A fund’s liquidity can be judged using the following criteria: Lock-in Periods for Assets A lock-in period is a time frame in the investment cycle during which the investor is prohibited from liquidating the funds. Expenses Related to Selling an Investment These expenses include the following: Brokerage Brokerage fees are what the broker charges the investor for helping to complete the transaction. The rates, or brokerage fees, vary from one broker to the next. Because of fierce competition and low-cost online trading platforms, stock brokers are now responsible for as little as 0.1% to 0.25% of transaction costs. Tax on Securities Trading The purchase and sale of securities listed on stock exchanges are subject to the Securities Transaction Tax, or STT. STT is usually calculated as 0.001% of the sale price of a mutual fund and 0.1% of the cost of a share market transaction. Redeemed Item Fees At the time of the sale of the mutual fund’s units, mutual funds may charge the investor a redemption fee. The points of sales that go toward this fee are charged. Typically, redemption fees range from 0.25 to 1% of the redemption cost. Business Size The risk you take when buying depends greatly on the size of the firm you would like to invest in. It is critical to consider this before purchasing stocks, both in terms of time and risk tolerance. Volatility It describes how much a share’s price or the value of another financial asset can fluctuate. Share market stocks with high volatility experience rapid ups and downs, while stocks with low volatility experience slower ups and downs. Equities-Focused Funds This is mostly made up of stocks with a small amount of debt. Though not as high as true equity, such funds experience high volatility. Devoted to Debt This mainly consists of debt instruments, with a smaller portion going to equity. These funds are more volatile than debt tools but with lower volatility. Growth in Revenue and Earnings You must invest in expanding firms on the share market if you want to profit from stocks. Examining a firm’s revenue and earnings is the best way to tell if it is expanding. It’s important to consider both earnings and revenue because firms can find it difficult to inflate both. For instance, a business that wants to increase sales may spend more on advertising. As a result, although its revenue will increase, its profitability will suffer, resulting in declining earnings. Ownership Pattern You should learn about a firm’s shareholder model before investing in its stock. Firms with investors who own vital firm stock may prosper in the long run. Investors ought to fund multi-stakeholder firms as well as domestic and foreign investors. [B-02] Conclusion It is possible to be persuaded to buy stock in a company just because you know its name or were told by a credible source. This tactic, though, may reduce your chances of creating a healthy return and raise your risk of suffering a loss. Thorough research is always vital in the share market. Investing for the long term, taking advantage of dividends, and finding stocks with a track record of success are some ways to protect your assets. Risky and aggressive trading tactics should be avoided if you need more time. You can visit the Piramal Finance website to learn more about the share market and explore their products and services.

08-11-2023

Home Loan

All You Need to Know about How Interest Rates for Home Loans Decided in India

The interest rate on a home loan is the annual percentage rate (APR). A lender or firm charges it for borrowing money. How much you can borrow for a house loan depends on many factors. Such as the interest rate offered by financial and non-financial firms. The EMIs you must pay to the lender are based on the interest rate charged. Lenders set their rates in tune with the repo rate. Let’s read the article to learn more about loans against property interest rates. [B-01] What is a Home Loan? Loans against property interest rates are different. It also differs depending on the individual. Even a slight increase in the interest rate on a house loan can change the interest rate. The lending institution will charge interest when you apply for a home loan. It is levied for using the money to purchase a property. A home loan’s interest rate can be viewed as the expense of getting a loan. With EMIs, you can spread out the cost of your loan’s interest. You should know how a home’s interest is determined before applying for one. Factors that determine loan on property interest rates Repo Rate The rate at which the Reserve Bank of India lends money to other banks is the Repo Rate. The lease rate at which a bank obtains a loan against property interest rates is passed on to the end user. Therefore, consumers’ interest rate is inversely related to the repo rate. Reverse Repo Rate The Reserve Bank of India can borrow funds from commercial banks at RRR. Lending money to the RBI becomes more appealing if the Reverse Repo Rate is high. It will result in cheaper interest rates for its clientele. Credit Rating The bank will always look at your credit history when you apply for a mortgage. This gives the bank information about your creditworthiness and helps them evaluate if you pose a high risk as a borrower. There is a direct correlation between a borrower’s credit rating and the terms of their mortgage. A credit score is a three-digit number that indicates your financial health based on various characteristics like your payment history, credit history duration, total debt, and more. Prime Lending Rate (PLR) Banks use the Prime Lending Rate (PLR) as a reference rate for establishing interest rates for their various products. The following format is used by several banks when displaying interest rates:- PLR + 0.5%. An 8% PLR means a bank’s home loan against property interest rates will give 8.50% Cash Reserve Ratio (CRR) The required reserve ratio (RRR) refers to the minimum proportion of deposits a bank must set aside as cash. This may be in the form of cash or RBI deposits. When the CRR is high, the interest rate charged to the customer is also high. This is because raising the CRR limits the available cash flow in the economy. Statutory Liquidity Ratio (SLR) A commercial bank’s mandatory reserve is known as the SLR. Gold, government bonds, or any other safe investment can be used to store SLR. Once the SLR is achieved, a bank may only extend credit to its customers. Rate of Interest Used as a Measure of Default on Prime Loans (BPLR) A bank’s lending rate to its customers is known as its Base Prime Lending Rate (BPLR). Given that banks were constantly breaching BPLR in the form of exceptionally low-interest loans, the RBI decided to replace it. In other words, no bank will be permitted to offer loans at interest rates lower than the BPLR. This affects the interest rate a bank is willing to give a customer. A higher BPLR means a higher interest rate for the customer. Quick Points on Reducing Loan Against Property Interest Rates Pick the minimum loan period The home loan length is a major factor in the total interest you will pay. A lower EMI can be obtained by increasing the loan’s tenure; however, this will result in higher interest payments. Increase initial payment Buying a house should be done methodically for the best results. If you save enough for a higher down payment, you’ll be able to borrow a smaller amount at a much more favourable interest rate. Maintain a good credit score. Credit scores in the 750+ range are generally regarded as excellent. How responsible you are with money is reflected in your credit score. When you have a good credit score, lenders will see you as a reliable borrower and give you a better interest rate on a loan. Opt for a home loan transfer If you feel that the lender is giving a raw deal, ask them to lower the interest rate. Lenders always prefer to settle with loyal customers. You can ask your bank to match a lower interest rate offered by a competitor. You can also ask for a review of your credit score. The next step is to decide whether to switch lenders for the loan. Find a different lender with a more suitable loan against property interest rates. Always watch out for any other fees they may charge. Annually evaluate EMIs Few firms will allow you to negotiate yearly EMI. You may decide to raise your EMI. It is based on a raise in salary. At first, this increase may be a burden. Sooner, the tenure will become short. Finally, all these will affect lower interest rates. [B-02] Conclusion The above article has intended to solve most of the queries. The questions related to loans against property interest rates have been answered in detail. There are factors like steady and lengthy more importantly, though, is a steady and lengthy track record of employment. The likelihood of getting a loan increases if you have a stable job and a growing salary. The desire to be a homeowner has made home loans an integral part of our society. Today is a great time to buy a house because home interest rates are at historic lows. For more details, visit the Piramal Finance website and get assured assistance.

08-11-2023

Home Loan

Who is Eligible for Loan Against Property and What are the Documents Required

A loan against property (LAP) is a type of secured loan. It allows you to use your property as collateral to borrow a lump sum of money. The loan amount is usually a percentage of the property’s value. It is typically used for debt consolidation, business expansion, or other large investments. However, there are a few loans against property eligibility criteria that you must meet to apply for this credit. To be eligible for a loan against property, you must also have certain documents. The eligibility criteria and documents required vary from lender to lender. Generally, you will need to be at least 21 years old, have a regular income, and own a property in India to use as collateral. Keep reading to learn more about the loan against property eligibility and what documents are required. [B-01] What are the eligibility criteria for a loan against property? The amount you can derive from a loan against property is determined by the value of your property. You can also use the loan for any personal or business purpose. You can choose to repay the loan in EMIs over some time, depending on the loan tenure. To be eligible for a loan against property, you must meet the following criteria: You must be a resident of India. You must be between 21 and 65 years of age. You should be the rightful owner of the property that you offer as collateral. You should have a regular source of income and should either be a salaried employee or self-employed. You must have earned a minimum gross annual income (GAI) of INR 3 lakhs in the previous three years. Your CIBIL score must be 700 or above. What are the documents needed to apply for a loan against property? When you apply for a loan against property, you must keep the following documents on hand. This will help you take advantage of lower mortgage loan interest rates, along with other benefits. The documents you will need to furnish to the lender will depend on your status. This is why we have sections for different use cases. The documents that you will need are as follows: 1. If you are a salaried employee Proof of identity (any one) PAN Card Passport Driving Licence Voter’s ID Card Aadhaar Card Ration Card Proof of Address (any one) Aadhaar Card Voter’s ID Card Passport A utility bill (such as telephone, electricity, water, or gas bills), which is less than 2 months old Bank account statement LIC Policy Proof of Residence Ownership (any one) Documents related to the property Maintenance Bill Electricity Bill Proof of Income (any one) Payslip for the last two months IT Returns for the last 3 years Form 16 Promotion or increment letter, if any Proof of Job Continuity (any one) Current job appointment letter, in case you have spent more than 2 years in the same organisation Current employment certificate Certificate of experience Others Bank statements of your salary account for the last 6 months Documents of any existing loans, such as sanction letters and payment records Any proof of investment, such as fixed deposits, fixed assets, shares, etc. Copies of property documents, such as the sales deed, copy of the agreement, share certificate, latest maintenance bill, etc. Advance processing cheque, for processing of the loan documents 2. If you are self-employed or a businessman Proof of identity (any one) PAN Card Passport Driving Licence Voter’s ID Card Aadhaar Card Ration Card Proof of Address (any one) Aadhaar Card Voter’s ID Card Passport A utility bill (such as telephone, electricity, water, or gas bills), which is less than two months old Bank account statement LIC Policy Proof of Residence Ownership (any one) Property documentation Electricity Bill Maintenance Bill Proof of Business Ownership and Address (any one) Property documentation Maintenance Bill Electricity Bill Proof of business existence (any one) Sales Deed or Agreement Saral IT Copy (three years old) Copy of Tax Registration Company registration licence Proof of Income (any one) IT returns of the last three years Computation of income duty. It should have had due attestation by a chartered accountant Audited balance sheet Profit and Loss Accounts that include tax audit reports Form 16 Others Bank statements of your savings and current accounts. They should be for the last year. Documents for any existing loans. These include sanction letters and payment track records. Any proof of investment. They could be fixed deposits, fixed assets, shares, etc. Copies of property documents. They could be documents such as a sales deed, or a copy of the agreement. Also, share the certificate, the latest maintenance bill, etc. Advance processing cheque. It is needed for processing the loan documents for sanction. Passport-sized photograph. A professional degree certificate. It is needed if you are a professional. What are some of the benefits of a loan against property? Applying for a loan against property can be very beneficial for you. Some of the benefits that you can enjoy include: Lower rate of interest The loan against property interest rates is lower than personal loans. This is because this loan uses your property as collateral. Lower prepayment charges A loan against property also has low to zero prepayment charges. So, you can close your loan easily. Easily accessible You can easily get a loan from a bank if you meet the loan against property eligibility criteria. Lower EMI This loan also has a lower EMI. It is in addition to a low mortgage loan interest rate. A loan against property is available for a longer tenure. So its EMIs are lower than those of personal loans. Longer tenure A loan against property is available for a longer tenure. It can go up to 15 years in some cases. [B-02] The final word Applying for a loan against property can be stressful if the process is unknown or the applicant does not have an idea of the documents required. It is always best to check your loan against property eligibility first, followed by gathering the documents that you would require. For more information and guidance on loans against property, you can visit Piramal Finance.

08-11-2023