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Personal Loan

Higher Education Loan: Apply for Loan Against Property for Higher Education

Most loans act as a massive facilitator in covering your diverse needs. Not only will you have the monetary leverage, but you will also have the financial liberty and independence. Using them, you can buy a house, or car, plan a family trip, make a down payment, cover your education-related expenses, etc. When covering education-related expenses, a loan against property is sometimes preferred over a higher education loan. These loans are readily available and can help you cover all your educational expenses. As suggested by the name, in a loan against property, you must pledge your property and keep it as collateral to get the principal amount. In return, you are charged a rate of interest, and the lender keeps the property until the loan is repaid. But is it wise to use a loan against property instead of a higher education loan? Let’s find this out in this article, as it focuses on loans against properties and how they can help you fund your higher education. [B-01] What is a loan against property, and for what purpose is it applied? A loan against property is a type of loan in which you use your property as collateral to get a loan from a lender. These loans are secure, and you can also get a huge loan. As the financing institution does not dictate the usage of the loan amount, you can use this loan for a variety of reasons. However, in most cases, these loans are taken to cover big-ticket expenses like investing in your business venture, financing higher education, etc. What are the benefits of taking a loan against property for financing higher education? There are several benefits of opting for a loan against property instead of going for an education loan: Higher loan amount: Most banks and NBFCs allow a high amount to the borrowers to cover their big-ticket expenses. And in the case of higher education, you might need a lump sum to meet all the expenses like admission fees, dormitory, course fees, etc. Banks allow a loan amount of up to 65% of the total market value of your property. This is a huge benefit compared to a higher education loan, as the loan amount can be subsequently higher. The loan amount can be even higher if your property has a higher market value. Low rate of interest: As this is a secured loan with fewer risks, most lending institutions charge a minimal interest rate. The Bank’s interest rate starts from 8% per annum for most property loans. This rate is also variable and depends on the individual’s credentials, the property’s market value, etc. Proper utilisation of the property: A loan against property is the right way to finance higher education because it properly utilises your property. Instead of selling your property at a compromised rate, which might be worth more in the future, it is better to use it as collateral and regain ownership by paying the instruments. Selling a property is irreversible, so a loan is a convenient option. Higher loan tenure: Though the loan tenure of most higher education loans is high, it is even higher in the case of loans against property. While most education loans can be taken for 15 years, property loans can be taken for 20 years or even 30 years in many cases. From a tenure perspective, a loan against property is a much preferable option compared to a higher education loan. High Flexibility: As you pledge your property to get a principal, you get high flexibility benefits. You can choose the loan type, period, and repayment method. Flexi facilities allow you to repay the interest on the amount you use instead of repaying the entire principal amount. Should you choose a loan against property instead of a higher education loan? A loan against property might provide you with many benefits, but a higher education loan has more grip on tax benefits. Education loans are taxable and give the borrower the privilege of experiencing tax benefits under section 80E of the Income Tax Act, 1961. In addition, education loans have comparatively lower interest rates and associated benefits for students. But from the perspective of tenure of repayment, a loan against property is a much preferable option. Since long tenure ensures a low EMI amount, it puts less stress on your monthly budget. The loan amount is also higher than an education loan which is another added benefit of going for a property loan. If you don’t have a property to use as collateral and pledge for a loan, then a higher education loan will help you with that. Also, property loans are mostly taken for investing in a business, as the loan amount is high. [B-02] Conclusion When it comes to choosing a loan for education, both these loans have significant benefits and demerits. If you are at a higher loan amount for a longer period, then a loan against property is the right option for you. But if you are someone who doesn’t have a property to pledge and wants more tax benefits, then a higher education loan might be the correct option for you. It depends on your monetary planning, the aim of taking the loan, and the financial muscle to tackle the interests and EMIs. If you want to know more about loans against properties, home loans, personal loans for education, education financing options, etc. you should visit Piramal Finance.

08-11-2023

Know More

Here are the top 6 advantages of two wheeler loan that make your life easy

Two-wheelers have significantly made our lives easy and convenient. Besides being a popular travel pick, they give high mileage and cause fewer emissions compared to big vehicles. Nonetheless, buying them for everyday movement for groceries, office, colleges, etc., is a worthy investment. However, saving money from your monthly expenses to buy a two-wheeler might cause financial trouble. A two-wheeler loan might come to your rescue in such a scenario. A two-wheeler loan gives you the exact loan amount you need to buy a bike. A two-wheeler has a lot of importance in our day-to-day life, and something that has high significance in our lives is worth every financial risk. However, with advanced features and services provided by banks and NBFCs, getting a two-wheeler loan is even more convenient than a personal loan. In this article, you will learn about two-wheeler loans, their comparison to a personal loan, and six of their advantages. [B-01] What is a two wheeler loan, and what is its significance? A two-wheeler loan is financial aid from a lending institution, whether a bank or NFBC, to purchase a two-wheeler. These lending institutions charge you a specific rate of interest based on your credentials and loan-repaying capacity. You can opt for monthly instalment options to repay your loan amount. You must ensure you pay your EMIs on time throughout the loan tenure. Two-wheeler loans can only be obtained for purchasing a bike. You can’t apply for it to cover other needs. During festival seasons, banks offer heavy discounts on interest rates and elevate the loan amount for the customer’s attention. This is the reason why loans for two-wheelers were popularly applied for. In India, people opt for two-wheeler loans instead of personal loans to purchase a bike. Now that you know about two-wheeler loans and the purpose they solve, let us find out some advantages of them. What are the six advantages of applying for a two wheeler loan to purchase a bike? There are more than six benefits of going for a two wheeler loan over a personal loan to purchase a bike. They are: Compelling rate of interest: Banks and NBFCs charge a lower interest rate to borrowers for purchasing a bike. This helps you lower your equated monthly instalment amount to a great extent. In addition, it allows you to make fewer compromises on your financial aspect and, as a result, puts less stress on your budget. In India, most financing institutions charge an interest rate that starts from 7% per annum. However, some lending institutions even charge much less than this, often that starts from 1 per cent per annum. If this rate is compared to a personal loan, a two-wheeler loan is a preferable option. High-Value Financing: While opting for a two-wheeler loan, you can get as much as the total amount you require to purchase a bike. Unlike other types of loans like personal loans, you can get 100% as the loan amount for financing your two-wheeler. Most financing institutions spend at least 90% of the money you need to purchase a bike. Flexible tenure: The tenure of the loan plays a huge role in deciding whether or not the loan is preferable. A flexible tenure allows you to have ample options and choose the one that suits you the best. So, in the case of a two-wheeler loan, the tenure of repayment ranges between 12 months to 48 months. So, a flexible tenure helps you to decide and plan your finances wisely. Easy EMI options: Equated monthly instalments also play a decent part when applying for a two-wheeler loan. The easier the EMI options, the easier the repayment capabilities. Most lending institutions provide diverse options when opting for a loan for a two-wheeler. This helps you choose the best for you and manage your budget. Easy and Quick approval: In a two-wheeler loan, there is involvement of lesser paperwork with minimal documentation. This helps you prevent unnecessary delays and get your amount reimbursed way sooner. However, in some cases, it might take 3 to 5 days to get your loan amount disbursed. Compared to a personal loan, the disbursement period is comparatively lower than the mentioned period. Boosts credit score: Credit scores are a fundamental requirement for bigger loans like personal and home loans. So, a two-wheeler loan helps you build a good credit score. If you opt for a loan for a bike and repay it with smaller EMIs throughout a more extended period, your credit score will increase simultaneously. [B-02] In Conclusion Though two-wheelers are one of the most popularly chosen vehicles in recent times, buying them with personal finance might be tough. A two-wheeler or personal loan might help you get through the buying procedure. A two-wheeler loan has many benefits like easy approval, flexible tenure, lesser EMIs, etc. While choosing a loan, you must focus on the parameters like interest rates, EMI and tenure. Increasing your tenure might decrease your EMI but increase your overall interest payment. Decreasing your tenure might lower your net interest payment but increase your EMI and cause financial distress. If you want to know more about two-wheeler loans, home loans, personal loans, etc. You can prefer to visit Piramal Finance.

08-11-2023

Home Loan

Home Loan FAQs, Questions Related to Home Loan

Do you have questions regarding home loans? The home loan FAQs discussed in this article will answer all your questions and help you learn. 1. What are the many types of mortgage loans offered by banks, and which would be the best fit for you? Most banks provide a variety of mortgages for house purchases, including loans for land, building loans, completed homes, properties suitable for immediate occupancy, loans for non-resident aliens, etc. To select a suitable home loan programme, you need to have a firm grasp of how it works. Check whether you need a home loan to buy a new house or a loan to refurbish your existing one. [B-01] 2. What factors are considered while granting a home loan? The banks check your monthly income, the availability of a co-borrower, the price of the property, the downpayment you will pay and other factors to understand whether you can repay the mortgage instalments on time without hassle. 3. What role does my CIBIL (credit) score have in determining the interest rate I am offered? If you want a mortgage in the amount of your choice at a reasonable interest rate, a credit score of 750 or more is ideal. This means it’s crucial to talk to a lender about the mortgage interest rate you may get based on your credit score. Let’s say you have a steady job and a monthly salary of more than Rs 1 lakh. You plan to apply for a home loan of Rs 4 crore and have a credit score of 680. The bank may charge you 12% interest. The same bank may charge a different interest rate to another person with a slightly higher monthly income and a credit score of 750 and above. 4. Have a fixed or adjustable interest rate on your mortgage loan? A slight shift in interest rates may significantly affect borrowing money and the cost of keeping up with payments. Find out if the interest rate on your home loan will be fixed or variable and if the APR will be constant or variable. Choices in mortgage interest rates include: A home loan with a fixed interest rate means your monthly payment will never change. Interest on mortgages with both fixed and variable rates is often fixed at the outset and then goes variable. Save up for other priorities and check out the interest rates given by several banks before applying for a house loan. 5. Which loan term best suits your needs? Lenders often provide payback periods from one to 30 years. An adjustable-rate mortgage’s term length can be adjusted according to the borrower’s age, income, and other factors. Your home loan’s monthly payments (EMIs) will vary depending on the term you choose, so it’s a good idea to find out from your lender what options you have. The EMIs are lower for a longer-term loan and higher for a shorter-term loan. An EMI calculator inputs data about a loan, such as the principal, interest rate, and payment schedule, into a mathematical formula. Every single loan has the same interest rate and payment schedule. 6. How much does it cost to execute a home mortgage application? Depending on the financial institution, the processing fee could be anywhere from 0.50% to 2.50% of the total loan amount. The mortgage application processing fee is often relatively small, but it might add up if you need more preparation. It would help if you inquired with your lender about the mortgage processing fee. 7. Mortgage prepayment penalties You can pay off your mortgage balance in full if you get a raise, your company does well, or your financial situation improves in another way. Most financial institutions will assess a small prepayment fee if you close your home loan account before the term is up. Know the prepayment fee amount before you decide to foreclose on your loan. A mortgage might need to be more on its own, and other forms of financing might be necessary. Many lending institutions, including banks, will insist that you have homeowners or life insurance before disbursing your home loan funds. Having no choice but to pay off your mortgage when the time comes is a sobering reality. Find out if your mortgage loan requires this coverage and how much the premium will be by talking to your lender. 8. Can two people each apply for a mortgage? You can apply for a mortgage with a co-applicant if you cannot meet the requirements alone. Consult your bank or other financial institution about the possibility of submitting a home loan application with a co-applicant to increase your chances of approval. 9. Can the bank reject my mortgage paperwork? You must confirm with the lender the comprehensive paperwork they expect to see to process your loan application. The lender may reject your application if you apply for a home loan but provide false or insufficient documentation. You must double-check your mortgage paperwork before sending it to the lender. [B-02] 10. If you apply for a mortgage, what extra services can you expect from the bank? The market for home loans is more competitive than ever due to the influx of new banks and NBFCs. The extra money you save by taking advantage of these perks is yours to spend as you see fit. Being aware of these advantages will help you plan. Suppose you have more concerns or questions about the home loan application process. In that case, you may inquire whether a specialised home loan representative will be available to assist you. Save the email and phone number of your mortgage lender’s customer service department in a safe place, and consult more on Piramal Housing Finance’s website.

08-11-2023

Home Loan

Home Loan vs Loan Against Property

Do you like to live in a lovely home with your family? Do you still feel perplexed by the many home loan available to you? Do you want to learn more about home loan and loan against property? If this is the case, you have come to the right place. A home loan is a mortgage in which consumers borrow money from banks to purchase their primary residence. It might also be used to construct a home from the ground up. A loan against property is one in which the borrower uses their property as collateral to get funds for personal purposes. [B-01] What exactly is a home loan? A home loan may be used to purchase an existing house or to put down a deposit on a new one. Home equity loans may be utilized for either commercial or residential real estate. On the other hand, a secured loan is often utilized to assist a firm in obtaining more funds. There are two methods to get a loan against real estate. The transaction may be as simple as a home loan, in which case the borrower would get a lump amount secured by real estate. A credit line may also be configured as a high-limit overdraft facility. This restriction would be determined by considering the borrower’s financial status as well as the market value of the property. What is a loan against property? Taking out a loan against property is acceptable for personal reasons such as paying for your schooling or a wedding in your immediate family. If you cannot get a typical mortgage for whatever reason, such as a title error, you may borrow against the value of your house to purchase another piece of property. It might be a house or a company when utilizing the value of the real estate as collateral for a loan. A house mortgage loan guarantees the lender on the property, but a loan against property guarantees the lender on another piece of real estate. The basic difference between home loan and loan against property A home loan is used to purchase a completed home, a property currently under construction, or a plot of land on which a home will be constructed in the future. You may be required to submit a down payment when applying for this kind of loan. This is because home loan is a secured loan from entities such as banks or home financing businesses. To repay the loan, the buyer makes recurring payments to the lender. The interest rate on a loan may be constant or variable, depending on the lender. The borrower will legally own the house after all the EMI payments have been made. However, the lender will remain the formal owner of the home. If the borrower fails to pay the EMIs, the lender may auction off the asset to recoup any lost funds. In common parlance, a loan secured by real estate is referred to as a “ loan against property.” A borrower’s existing real estate may be used as collateral for a loan of up to a specific percentage of the property’s current market value. Because he must provide the lender with the deed to the property while repaying the loan, he often repays it in EMIs, much like a mortgage. The lender may sell the collateral if a borrower fails to repay a debt. Rate of Interest The annual interest rate is one significant difference. Secured loans, such as home loan, can have higher interest rates than unsecured loans. This is often the case because banks and other lenders assume that loans that aren’t secured by anything tangible are more likely to be defaulted on by the borrower. The government and the RBI also work hard to maintain housing expenses within reach of everyone. For example, they work hard to reduce mortgage costs. Usage Home loan can only be used for a few items, although they are often used to purchase homes, land, and real estate that has already been constructed on. On the other hand, a loan against property may be used for everything from expanding a company to funding a child’s college education. You may utilize the funds from this loan for whichever purpose you see fit. Collateralizing your land asset secures your LAP. Loan-to-Value (LTV) Ratio: home loan may occasionally provide access to up to 90% of the value of the property being used as collateral. However, most typical loan against property only provides access to 60%-80% of the property’s worth. Tenure Most of the time, a mortgage provides a longer loan term than a LAP. Most loan against property span twenty years, while some lenders provide loans with maturities as long as thirty years. However, the maximum loan period for most collateral-backed loans is 15 years, which is still a considerable time. Optional fill-in Most home loans provide for additional funds or a “top-up,” if necessary. As a result, you will have more flexibility in your life and be able to employ the same kind of loan for various financial demands. Depending on your research, certain banks and lending institutions may be able to provide you with a comparable service, although this is not normally included in a mortgage loan. Documentation process You may acquire a house loan in as short as 15 days if you have all the papers. Generally, a home loan takes longer as lenders require time to appraise the property and gather and verify the information. Tax benefits That one loan may assist you in saving money on taxes may be the most significant distinction between the two. On the other hand, loan against property may provide tax savings in the form of Section 24 deductions for mortgage interest paid and Section 80C deductions for the actual principal borrowed. [B-02] Conclusion So, if all you want to do is purchase a property, a home loan is the best option. Loan against property is the best approach to get funds for company growth or other uses. A loan with payment is the quickest method to receive cash. To choose the greatest solution, one must first determine what one desire. If you need additional information or assistance, please get in touch with Piramal Finance.

08-11-2023

Education

How to Prevent Yourself from Falling to Types of UPI Frauds in India

Online transactions have become a convenient way of handling expenses nowadays. With just a few taps and clicks, you can do your daily shopping, pay bills, and even transfer funds. A Unified Payments Interface (UPI) is one of the most common ways of carrying out online transactions. But, as with all great things, there is often a downside—you risk being scammed. As UPI is still a relatively new payment method, there are many aspects of it that people are unaware of. Let’s learn more about how frequently UPI frauds occur and how to avoid them. [B-01] Types of UPI Frauds Phishing Phishing occurs when a scammer sends an email or an SMS with illegal links to commit fraud. If you click on the links in such emails and SMSes, you will be routed to your phone’s UPI app, which can start an auto-debit from your bank account. In addition, these links can also introduce malware or viruses to your device. Unverified Links You do have to scan QR codes or click on links to receive money using UPI. Many UPI frauds trick you by sending a bogus payment link. These links can steal your money. Remote Screen Tracking Many apps nowadays request your personal information, such as your email address and date of birth, after installation. If you download applications from a third-party source, be cautious while giving your UPI ID and pin. Make sure you only download software from reliable sources. False Calls Fraudsters will call you, pretending to be bank officers, and request your UPI pin or make you install a third-party application for verification. It will give them entry to your personal data and account details. Deceptive UPI Handles Nowadays, social media is a major source of many UPI frauds. Many sites have the same handle names as the genuine ones, and people fall for them. These scammers may use screenshots to carry out their schemes, and before you know it, they will have taken your money. As a result, avoid displaying any UPI-related data in public or on social media. Dos and Don’ts to Prevent UPI Fraud Don’t give anyone your bank account details, debit or card details, PIN, or OTP. If you are asked to provide such information by someone posing as an official spokesperson from your lender or the mobile app, request that they send you an email for the same. Do not share your email address, since they should have it if they are genuine. Also, only reply to emails from the authorised domain of your bank or payment app. Remember that you do not need to “pay” or insert your UPI pin to accept funds on your UPI app. Installing third-party apps that allow screen sharing should be avoided unless absolutely necessary. Always use the customer service number of your bank given on your card, chequebook, or passbook. Do not use the numbers taken from the Internet, as these may not be valid. Never call back or entertain unverified phone calls, even if the person calling sounds very genuine. Always install mobile banking apps and UPI apps from authorised online application stores. In fact, as most banks include UPI in their phone banking applications, there is no demand for you to install or utilise any third-party banking or UPI apps. How To File a Complaint For UPI Payment Fraud? Here’s what you should do if you are a victim of UPI fraud. Raise a dispute with your bank directly. Notify your bank regarding the UPI fraud payment by calling customer service. Make a note of the complaint number. If calling does not work, send an email or a letter to your bank’s branch manager. Contact your UPI payment portal. Call Google Pay, Paytm, PhonePe, and other UPI app systems to register a complaint. File a complaint with the cybercrime police. Contact the National Cyber Crime Helpline at 155260 in under 2 hours of a UPI fraud. After more than 2 hours, file a complaint with the National Cyber Crime Reporting Portal. Insert all the theft information. The investigating authority will look into this issue and attempt to return your money. You could also register an FIR at the closest cybercrime office. Tips for Using UPI Safely for Digital Exchanges Ensure a full-screen lock. A display lock with a strong PIN or password is suggested for your UPI apps. You must not use commonly known details about yourself as your password or PIN, such as your phone number or birth date. Do not share your PIN. A personal identification number (PIN) is required for UPI verification. Anyone who knows your PIN can access and use your UPI app to transfer money. So, do not share your PIN with strangers or even family members unless the situation demands it. If you believe your PIN has been compromised, change it right away. Do not tap on unfamiliar links or answer spam calls. If you are not sure how genuine the call you received from the bank was, do not entertain it again. Also, do not reveal confidential information to such callers, as they might use the data to access your UPI app and steal your money. Such callers can pose as officials of a business you use and request confidential information. Banks never ask customers for personal information such as an OTP, password, or PIN. Ensure that you regularly update your UPI app UPI app creators continue to send alerts with new safety attributes to clients who use the service. It’s a great way to keep your UPI software on your phone up-to-date and auto-downloaded. [B-02] Conclusion Online transactions have become a very common way of managing regular expenditures. However, one should use online payment platforms carefully, as many frauds and scams also take place through these apps. Always download valid applications from verified sources and avoid entertaining calls and other communication from unknown callers and numbers. Also, never disclose your personal information, such as your PIN and bank account number, to anyone, as these are not required by a third party when you make a UPI payment. To know more about UPI frauds, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Personal Loan

How home loan top-up is better than a personal loan?

Many of us have heard the terms “home loan top-up” and “personal loan,” but what do they mean exactly? This blog post will explore the ins and outs of home loan top-ups and personal loans to help you decide which one is the most suitable for your financial needs. From understanding how these products work to detailing the advantages and disadvantages of each option, this blog post will give you an in-depth look at these two lending solutions. [B-01] Advantages of Home Loan Top-Up There is no denying that home loans are one of the most popular forms of financing used by homeowners in India. This is because home loans provide the means to purchase a home and the opportunity to upgrade or improve it. If you plan to take a home loan, you should consider taking a home loan top-up. Home loan top-ups have many advantages, making them an attractive option for borrowers. Here are some of the key benefits of taking a home loan top-up: Low-Interest Rates: The interest rate can be pretty high when you take out a personal loan. However, when you take out a home loan top-up, you get access to lower interest rates since it is essentially just another instalment on your existing loan. This will help keep your overall debt burden low and make repayment easier. Tax Benefits: Borrowers who opt for home loan top-ups also receive tax benefits. Depending on where you live and the amount borrowed, some homeowners may be eligible for deductions from their taxable income when they pay back their loans through instalments. This makes it possible for homeowners to save money when they borrow money for their house remodelling projects or other expenses related to their homes. No Need for Collateral: One of the most significant advantages of taking a home loan top-up is that there is no need to pledge collateral against the amount borrowed as security against default in payments. This makes it easier and more convenient for homeowners who do not want to risk losing their assets if they fail to make timely payments on their loans. If you are looking for ways to finance your next project or upgrade your existing property, taking out a home loan top-up could be an excellent option for you due to its various benefits mentioned above. However, be sure to compare lenders before making any decisions so that you can find one that offers competitive rates and excellent customer service. Disadvantages of Personal Loans: Personal loans can be a great way to access funds for large purchases or consolidate other debts. However, you should be aware of some potential drawbacks to taking out a personal loan before deciding to apply for a personal loan. High-Interest Rates The first disadvantage of taking out a personal loan is the potential for high-interest rates. The interest rate on personal loans generally depends on your credit score, income, and other factors, such as your current debt load. Because lenders take more risk when lending money to individuals without collateral, they may charge higher interest rates than secured loans like mortgages or auto loans. Higher interest rates mean higher monthly payments and more long-term costs added to the amount borrowed. Risk of Collateral Repossession The second disadvantage of taking out a personal loan is the risk of collateral repossession. If you default on a loan, lenders may have the right to take possession of any assets you have used as collateral to recoup their losses. For example, if you took out an auto loan with your car as collateral and then failed to make payments, your lender could repossess your vehicle to recover their money. While this isn’t necessarily common, it’s essential to understand that it’s possible when taking out a personal loan and should be considered before agreeing to borrow money from a lender. Overall, while personal loans can provide much-needed access to funds for large purchases or debt consolidation, it’s essential to understand the advantages and disadvantages of these types of loans before committing yourself financially. Comparison of Home Loan Top-Up and Personal Loans – Benefits & Drawbacks When it comes to taking a loan, many options are available, including home loan top-ups and personal loans. Both these types of loans have their advantages and disadvantages. While some people may opt for a personal loan’s convenience, others may prefer the lower interest rates that come with a home loan top-up. First, let’s look at the benefits of a home loan top-up compared to a personal loan. The main advantage is that with a home loan top-up, you can take advantage of lower interest rates than those available on personal loans. Banks view your existing mortgage as security for the new loan. This means they offer lower interest rates as they know that they have collateral to recover their money if you fail to repay the loan. Another benefit of opting for a home loan top-up over a personal loan is that it allows you to consolidate existing debt into one manageable monthly payment. This helps make repayment easier for those with multiple debts or high credit card balances to manage each month. However, some drawbacks are associated with opting for a home loan top-up instead of taking out a personal loan, such as longer repayment terms and fewer features like flexible repayment options or redraw facilities. Additionally, if you don’t meet the criteria required by the bank or don’t have sufficient equity in your property, then you may not be eligible for this type of product. Overall, while both types of loans offer advantages and drawbacks depending on individual circumstances, a home loan top-up over a personal loan is generally more beneficial due to its favourable interest rate and ability to consolidate debt into one monthly payment. Therefore we can conclude that when considering which option is better between these two products: Home Loan Top-Up is the better choice! [B-02] Conclusion In conclusion, a home loan top-up also offers tax benefits, as the interest paid is eligible for deduction under Section 24 of the Income Tax Act. Additionally, it allows you to use your property as security while taking out a loan. On the other hand, personal loans can be attractive if you want to borrow a small amount of money for a short period. Personal loans come with higher interest rates but are easier to obtain and have relatively faster processing times than home loan top-ups. Ultimately, depending on your requirements and financial situation, either option may suit you. However, if your goal is to borrow a large amount of money at lower interest rates with tax benefits in mind, then opting for a home loan top-up is likely the better choice in the long run.

08-11-2023

Personal Loan

How to Plan a Trip to Tomorrowland with a Personal Loan?

Everyone needs a break every once in a while. Going on a trip is the best way to escape your daily routine. What if you don’t have enough money, though? Consider getting a personal loan for travel before you cancel your plans. You don’t have to struggle with getting a loan to pay for your trip. Read on to learn about travel loans and when they might be a good option. [B-01] When Should You Take Out a Personal Loan for Travel? Another type of personal borrowing is getting a loan to pay for a trip. They aren’t safe, are spread out, and don’t need much paperwork. They work well in the following situations: Imagine that you have a once-in-a-lifetime chance to go to the place you want, but you don’t have the money to do so. In situations like this, you don’t have to cancel your trip or wait a long time for another chance. A travel loan might make up the difference and let you go on a great trip. Getting a loan also makes it easy to get the money together for a last-minute trip. You can enjoy your trip without worrying about how to pay for it and pay for it in small, easy-to-handle instalments. You could also use the money to pay for your trip. Plan your trip and set aside money for it. If you don’t have enough money, you should take out a personal loan for travel to make up the difference. It can be used to pay for hotel stays, plane tickets, and other costs. If you need to extend your trip because of something unexpected, a loan for travel might help. It could give you quick cash to pay for extra travel or living costs. What should you do before applying for a personal loan for travel? Once you’ve picked a vacation spot and made travel plans, here’s what you need to do: Look into Lenders Loans for travel come with different terms from lender to lender. Compare interest rates so you can find a lender that meets your needs. Processing fees and the terms of the loan. Examine Your Eligibility Different financial institutions will have different requirements for getting approved. Still, you will almost always have to meet some basic qualifications. These include age, years of work experience, monthly income, job stability, etc. Check that you meet all the rules to ensure the process goes smoothly. Also, your chances of getting one will improve if you have a good credit score and a steady income. How do I get a personal loan for travel? Once you’ve decided on a lender, fill out the application on their website or by calling them. You must send in a filled-out application form along with the following: Verification of identity (Aadhar card, Voter id, Passport). Proof of where you live (Electricity bill, Phone bill). Income proof (Salary slips, Bank statements). Pros of Getting a Personal Loan to Travel Personal Loans for Travel may be approved and given within a few days. This depends on how the bank or NBFC works and the terms. If a bank has already agreed to give you a personal loan for travel, you may be able to get cash. The loans are easy to get and don’t require a lot of paperwork. The whole loan process can be done online from the comfort of your own home. Since a loan for travel is unsecured, you don’t have to put up any collateral, security, or a guarantor to get it. Your credit score goes up when you make payments on time every month. What does Tomorrowland mean? Tomorrowland is the world’s largest and most important music festival. It takes place every summer in July and is the best thing ever for music lovers. It brings music fans from more than 200 countries together under one roof and makes them happy. Since 2005, when it began, the Tomorrowland music festival has only been held once a year. The best bands, sound systems, and stage designs. This is one of the most popular music events in Belgium and one of the most popular in Europe. This is the only event in the world that gives music a lot of attention. It is also the most important festival. Why is Tomorrowland so different? The Tomorrowland festival is a one-of-a-kind music event that takes place worldwide. More than a thousand famous DJs and musicians perform there. Like Vini Vici, Hardwell, Oliver Heldens, Lost Stories, San Holo, Alan Walker, and others. Music fans worldwide learn about “Live Today, Love Tomorrow, Unite Forever” and show that they feel it simultaneously. There was also mind-blowing and soul-satisfying music at the Tomorrowland event. It has about 15 beautiful stage designs and spectacular fireworks. It brings together thousands of people from more than 200 countries under one roof. And brings them all together through the power of one language, music. Personal loans for travel: What you need to know Loan with a Lower Value The loan amount could be as low as Rs. 10,000/-. For loans up to Rs. 2 lakhs, there is no need for collateral or a guarantor. A guarantor or collateral may be vital for loans over Rs. 2 lakh. This term may be different for different lenders. Most of the time, loans are looked at on a case-by-case basis. Quick Approval Loans for personal travel are given out when they are needed. The borrower can get a quote for the whole trip and fill out an application. Many people who sell vacation packages work with different banks. The person might fill out an application at one of these banks, where the paperwork and payment go. Payback Terms for the Short and Medium Term The payback period could be anywhere between 12 and 60 months. Personal loans with payments can be used to pay for trips. Terms can be between 3 and 6 months. Available Holiday Promotional Offer Most banks have special offers with low-interest rates, no fees for processing, and easy application. Getting loans for travel and other things. During the Christmas season, these ads are often shown. [B-02] Conclusion A loan for travel is used to go to faraway tourist destinations. That will require a bigger sum to pay for travel costs. Going on vacation has become popular in this generation, where instant gratification rules. People can plan big trips with the help of loans for travel. These loans for travel are for a shorter time and less money. Since these loans are often not secured, many banks offer them as personal loans for travel. The interest on these loans is very high. You can find out more about this kind of thing at Piramal Finance.

08-11-2023

Stocks Markets

How to Invest in Foreign Stock Via Mutual Fund?

The Indian stock market lists more than 5,500 companies, but many stock brokers are more interested in foreign companies. Marketers put a lot of money into tech stocks like Google (GOOGL), Apple (AAPL), Netflix (NFXL), and Twitter (TWTR). The main factor for this is easy to understand: even though these stocks are traded on exchanges outside India, the companies listed above are still seen as leaders in their fields. Since the risk is lower, it’s fine to hold on to things for longer. If you live in India and want to invest in foreign stocks, you might not know how. This is clear because neither the Bombay Stock Exchange (BSE) nor the National Stock Exchange (NSE) of India trades in these companies (NSE). So that you don’t have to be concerned about it, this post discloses how to invest in foreign stocks via a mutual fund. [B-01] What do Foreign Stocks Mean? Foreign stocks are shares in companies that are not based in India. Buying foreign stocks is a great way to spread out your risk and take advantage of the growth potential in emerging economies. How to Invest in the Foreign Stocks? You can invest in foreign stocks in two different ways. Investing directly in stocks. Investing in stocks indirectly through mutual funds Investing Foreign Stocks via Mutual funds You can buy foreign stocks via mutual funds. But doing this requires much time spent studying and keeping an eye on things. If you want to purchase foreign stocks, these mutual funds are good for you: Fund of Fund (FoF) When looking for a mutual fund to invest in foreign stocks, a fund of fund (FoF) should be your first choice. These mutual funds buy shares of foreign companies. You can not only protect yourself from the ups and downs of the Indian stock market, but you can also watch for signs of change in the global economy. In light of the recent drop in the Sensex, one way to fight this trend could be to put money into a fund of funds that invests in international stocks. Exchange Traded Fund (ETF) Exchange-traded funds are the second way to trade foreign stocks on the market. The average prices of ETFs are unstable and can change many times a day. It’s being bought and sold all day long. On the other hand, mutual funds are usually only traded once a day after the market has shut down. Exchange-traded funds that track international indexes can be used to enter the foreign stock market. You don’t need to participate in international financial markets to use these resources. Exchange-traded funds (ETFs) that trade on the local market are also available through brokers in India. Ensure that the ETF you want to invest in is registered with India’s Securities and Exchange Board. When you buy exchange-traded funds, you lower your investment risk because the performance of these funds is mostly the same as that of an index. Also, the cost ratio of exchange-traded funds is much lower than that of mutual funds. If you want to invest in exchange-traded funds, you’ll need a brokerage account with a company in India or outside India. Global Mutual Funds You can enter the international investment market with access to international mutual fund schemes. Several of these mutual fund plans follow the markets of Asia and the Pacific, but the vast majority follow the U.S. market. Some plans only buy foreign stocks that trade on the U.S. market, but they still buy domestic stocks. Benefits of Foreign Stocks There are many good things about investing in foreign stocks, such as: Investors like foreign stocks because they give them more ways to make money. Buying foreign stocks is a good way to learn about different economic problems. Investing in a foreign market can also spread your risk and keep your portfolio from being too volatile. Things to Think about before Buying Foreign Stocks through Mutual Funds Before investing in international mutual funds in India, here are some important things you should think about: Risks Investing in these funds comes with many risks. Currency risk is a key factor. So, if you buy foreign stocks via a mutual fund focusing on the US and the rupee falls against the dollar, the NAV( Net Asset Value) goes up. This is because each dollar buys more rupees. In the same way, if the rupee goes up, the NAV goes down. Large-scale Factors The political situation of a country and its economic and social factors can greatly affect how well the fund does. So, you need to know about these things and keep an eye on the market. Multiple Economy Benefit When you invest in foreign stocks via mutual funds, you can take advantage of the growth in more than one economy and get a better return. It also helps you spread out your investments and make your portfolio better. Tax Most of the time, mutual funds put most of their money into stocks and other instruments related to the stocks of international companies. These funds are treated as debt funds for tax purposes. So, the rules for long-term and short-term capital gains for debt funds also apply to these funds. Top 5 International Mutual Funds for Foreign Stocks Sr. No.Fund NameNAV(Till Date)(INR)1.Franklin India Feeder Franklin US Opportunities Direct Fund-Growth47.32.Edelweiss Greater China Equity Off-shore Fund37.13.ICICI Prudential US Bluechip Equity Fund48.64. Nippon India US Equity Opportunities Fund23.45.PGIM India Global Equity Opportunities Fund28.5 (Data as of 25 November 2022) [B-02] Wrapping Up If you want to diversify your investment portfolio, you can start trading foreign stocks from India and investing in international markets. Because there is so much information online, it is easier than ever to research companies and their stock prices. However, keep in mind that investing in stocks on a global scale comes with benefits and risks. So, it’s important to think about everything and ensure your investment plan fits your needs and level of risk tolerance. Visit Piramal Finance and look at their blogs and products to learn more about the stock market.

08-11-2023

Other

How to Finance your Home Renovation?

Have you just bought a new home or an apartment put on resale? Congrats! But hold on! Do you have enough money to revamp the place? It would be unfortunate if you bought a new house and were left crunched for funds to turn it into a beautiful home, wouldn’t it? A home renovation loan is a solution to this problem. This article will walk you through options to fund your home remodelling work. Here are several basic methods to secure funding for remodelling your home. [B-01] What is a Home Renovation Loan? Banks provide home renovation loans to people who need financial assistance to restore or repair their houses. You can use the funds to improve the decor of your house, such as redoing the flooring, tiling, plastering, painting, and also renovating areas such as the kitchen, living room, and bedroom. The paperwork process for a home renovation loan is simple and the interest rates are similar to housing loan rates. A home renovation loan is a good option to arrange funds for house repair. Yet, many people borrow credit lines for this reason, which might be an unfair or time consuming process. Even though a personal loan may be obtained in a week or two, the payout of a home repair loan may take longer. If you already have a house loan, your chances of getting a home renovation loan are better. You may also claim tax perks after taking out a home repair loan. However, home renovation loan interest rates at various banks might range from 10.25% to 11.00%. So seek choices that are both cost-effective and provide the most value. Ways to Finance a Home Renovation While a home renovation loan is a way to finance the renovation, let’s also take a look at some other options. Here are the top ways to finance your home renovation: Using One’s Savings If you have been planning to renovate your home for a while, there are chances that you may have considered setting aside some money regularly for achieving this goal. If you have enough money saved to support the repair work without risking your investment objectives, utilising your savings for a house repair is a smart choice. One way to plan this is to set aside some money as a fixed deposit (FD). Getting a Personal Loan Some lenders and banks offer personal loans that can be used to renovate your house. You can get a personal loan based on your monthly income. It is an unsecured loan and you can use the personal loan amount as you see fit. However, the loan duration and interest rate may vary from bank to bank. Also, some banks charge a fee for pre-paying a loan. It is important to carefully read the terms and conditions when availing such a personal loan. Taking out a Construction Loan If you are going to build yoru dream home from scratch, a construction loan can be of assistance. A construction loan enables you to draw cash from the loan when your bills come, whether for a minor expansion or a total knock-down rebuild. This saves you money since you only pay the interest on the progress fees paid until the loan is completely drawn. Property loan You may get a loan against your house to do house repairs. The majority of banks and credit unions provide this loan. Banks will lend up to 80% of the property’s worth. The interest rate on loan against property is lower than that on a personal loan. You can choose six months or more to pay back the loan based on your needs. This loan also provides tax savings. Using a Credit Card You can use your credit card to purchase materials for your home repair projects. Based on how much your credit limit is, you can also withdraw money to use for your home renovation. You can split your whole spend into easy EMIs and return it in a year or less based on your financial plans. Using a credit card enables yourepayturn the loan in advance without incurring any charges. However, this does not provide you with any tax benefits. Property Extension Loan Banks and other financial institutions provide property extension loans. This loan may be used for repair and property expansion. The interest rate may differ from one bank to the next. You may choose a tenure that meets your needs. This loan is also tax deductible. Use of Equity in the House If you are an eligible customer of yoru bank, you can use the equity in the house to top up (raise) or redraw the house renovation loan. Top-Up Loan Topping up your house loan may be a viable option if you’re planning repairs, merging debts, or just needing more money. You can obtain more on your current home loan without taking out a new loan. You may get help with a cheaper interest rate than other loans, such as a personal loan. Mortgage Loan Banks lend you money by taking your gold, jewels, and assets into debt. This is another way to get funds for your repair job. A mortgage loan, however, has a higher interest rate. You must pay 9.50% and 11.25% interest on your house and top-up loans. Yet, you will be charged a higher interest rate for this loan. [B-02] Conclusion Are you familiar with the saying, “Home is where the heart is”? This place, called home, is where a person’s life is rooted. Therefore, it is natural that one may want to spend on renovating it from time to time. A planned home renovation helps you revamp your house with minimum financial burden. Using a home renovation loan or other methods is a great way of funding the repair and redesign of your house. For more such interesting articles and financial products, visit Piramal Finance website.

08-11-2023