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General Insurance

Buying Term Insurance? Avoid these mistakes

You should ease most of your fears now that you’ve opted for term insurance. After all, a term insurance policy offers life insurance. It assures that the lifestyle quality of your family is not affected in the case of the breadwinner’s death. Also, life aims such as child education and property ownership are not affected after getting a term insurance policy. The benefit of term insurance is that it is the simplest coverage. In other terms, the premium you pay is devoted to giving your life insurance. [B-01] What Exactly Is Term Insurance? Term insurance is a kind of life insurance that protects against the danger of early demise. When you get this insurance, you pick the sum insured and the term of the policy. After that, in the event of death within the policy’s term, the sum insured is paid to the candidate. Term insurance policies often do not offer a maturity benefit. That is, if the insured lives until the conclusion of the policy period, there is no payout. For example, suppose you purchase a 25-year term plan with an amount insured of Rs. 50 lakhs. Hence, a term insurance plan protects the risk on the insured’s life for as long as the plan is in place and all payments are made on time. Term Insurance Plan Features Here are some distinct features of term insurance plans that set them apart from other types of life insurance: As a pure safety plan, term plans provide the highest sum covered at the lowest cost. These plans are available for the long run. Some term insurance provides coverage for up to 85 years. If the insured dies during the period of the policy, the whole sum promised is given to the designee as a death benefit, as well as the policy is cancelled. Term plans have extra riders that you may add to your policy. Many plans also include riders that provide a broader range of coverage. Mistakes to Avoid When Getting Term Insurance Not Comparing Premiums The cover sum to premium rate in a term insurance plan is quite high. This is due to the fact that by paying a modest premium, you might have a large sum insured. The rates charged by various insurance providers will be likely to range greatly. As a result, before concluding the plan, it is vital to check term insurance prices from many insurers. Seeking a Low Life Insurance Amount Many of you purchase term insurance policies without assessing the true needs of life insurance. Getting a term insurance policy with limited coverage may not fulfil the goal for which it was bought. It is best to keep your insurance between 15 and 20 times your yearly income. Based on your age, fiscal demands, and family cases, you may need a greater level of coverage. Buying for a Lower Tenure Insurance coverage aims to protect your life goals. Despite your present age, get a term insurance policy that will cover you until the age of 60. Life aims such as kids’ education, home buying, and so on are often met around then. Yet, for late starts or you who may still have fiscal pledges beyond the age of 60, getting a term insurance plan may be vital, even for a longer term. You may quit paying the premium once the debts are fulfilled since they have no maturity worth. Buying Late Buying term insurance might not be on your to-do list if you’re young and single. Your parents may rely on you monetarily, or you may be tying the knot in a few months. The premium you would pay at an early age will be far lower than the cost you will pay later in life. When bought at an early age, you will pay the same price every year for the next 25 to 30 years. Not Adding Riders Aside from the danger of dying early from natural factors, there are hazards in other aspects as well. A handicap reduces one’s earning capability, while a medical problem may also have an impact on your finances. A term insurance policy allows you to add extra benefits known as riders, like an accidental rider, sickness rider, severe illness rider, and so on. Adding these extras to your term insurance plan expands the benefits and offers full coverage. Not Trying Different Things A basic term insurance plan’s death benefit stays constant all across the policy duration. Yet, a few more plans provide rising or reducing coverage. Some policies allow the family to get a part of the cash insured as a lump payment and the remainder in regular instalments. You may even pay till the age of 60 while keeping the coverage for a longer time. Filling Out Forms on Your Own In most cases, you leave the request form to be completed by the insurance company. Going over the request form reveals the facts that the insurers are looking for. It also allows you complete control over the disclosures made in the application. As your life is being covered, you will feel a feeling of ownership after you fill out the form on your own. Refusing to Disclose Crucial Data The insurance company will need you to provide certain details on the request form. Such disclosure will concern your wages and health state, as well as the medical status of your family. It is vital that you fully disclose them when applying. Any non-disclosure might lead to the nominees rejecting the claim, which would defeat the objective of why you obtained the term insurance policy. Excluding E-Insurance Options Buying a term insurance policy online has various advantages, such as buying offers, a rapid procedure, and so on. The absence of e-insurance may lead to more paperwork as well as a delay in the procedure. [B-02] Conclusion When buying term insurance, it is of grave importance not to make any mistakes. This will help you get the best deal possible. You should make an informed decision when it comes to purchasing the greatest term insurance plan. It can be a valuable asset for you and your family. If you want to learn more about buying term insurance, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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FD

Common Mistakes to Avoid While Investing in FDs

Investing in FD is an excellent choice for investors seeking guaranteed earnings while maintaining the highest level of security. You just deposit a bulk amount of money and then see it grow over the specified period and at the specified interest rate. Because of the high-interest rates and stability, your money grows at minimal risk. However, certain quick judgments may jeopardise your ability to make the most money. You can end up making mistakes that cost you the chance to maximise your FD interest revenue. [B-01] What Do You Mean by Fixed Deposit? Investing in FD is one of the safest types of investments since they generate constant returns. Because of the low risk of the investment, a large number of people in the country choose to invest in fixed deposits rather than shares. Furthermore, some fixed deposits may assist you in reducing your tax liability under Section 80C of the Income Tax Act of 1961. Fixed deposits give you control over your money and enable you to see it increase over time. Investing in FD is a popular investment option, but there are a few common traps to avoid when investing in them. Here are six typical errors to avoid to earn more and earn more securely from your fixed deposit. How Does Fixed Deposit Work? We’ve simplified it for you to help you understand what a fixed deposit is: A fixed deposit is a financial product provided by banks and NBFCs that allows you to deposit a large amount of money and earn a greater rate of interest than a savings account. An FD may be issued for a period of 7 days to 10 years. When you deposit with your bank, it begins generating interest based on the length of the deposit. The basic rule of a fixed deposit is that funds shouldn’t be withdrawn before maturity. If you withdraw before the maturity date, you must pay the penalty. You may choose the time duration for your investing in FD. In other words, you may keep it open for as long as you have available cash. Some banks provide a premature withdrawal option, although this results in a reduced interest rate. The bank credits the main amount and interest to the account holder’s bank account on the maturity date. Fixed Deposit Types Before you put aside money for investing in FD, you should be aware of the various kinds of fixed deposits available on the market. Read on to learn more: Typical Fixed Deposit A simple fixed deposit involves depositing money over a specific period at a fixed interest rate. The periods of a typical fixed deposit range from one week to ten years. It is the most popular FD choice among investors. Fixed Deposit Special Special fixed deposits are called so since they are only available for a limited time. A particular period might range from 290 to 390 days. Special FDs have a higher interest rate and are popular with a variety of stakeholders. Fixed Deposit with Tax Savings Tax-saving fixed deposits, unlike standard fixed deposits, cannot be booked for less than 5 years. The cash invested is tax-free under section 80C of the Income Tax Act of 1961, but the interest earned on the FD is taxable. Variable Fixed Deposit A floating fixed deposit’s interest rate fluctuates quarterly or annually, allowing consumers to profit from fluctuating interest rates. The Reserve Bank of India’s rules govern changes in interest rates. Most Common Mistakes to Avoid While Investing in FDs Here is a list of common mutual fund mistakes that new investors make. A lack of financial goals Financial goals are vital once you start planning your investments. Investing gets easier when you have a clear goal in mind. Because the money will be locked in for a certain period, you should have clear and realistic goals in mind before investing in FD. Not comparing interest rates When you decide to create a fixed deposit, start comparing interest rates from several organisations. Banks are increasingly offering enticing interest rates to entice customers. Interest rates vary per bank, so seek the one that gives the highest interest rate on a fixed deposit. Choosing an inappropriate lock-in period The amount invested in a fixed deposit is set for a certain period. As a consequence, you must proceed with prudence and invest only when you are convinced that you will not need it shortly. The periods of fixed deposits range from 7 days to 10 years. As a consequence, you should only invest in FD after carefully considering your current and future requirements. Examine the tenures as well. Making a hurried exit If you withdraw from the fixed deposit before it matures, you will be assessed a penalty. For partial or early withdrawals, most banks levy a 1% penalty on the applicable rate. Clients may break the fixed deposit without penalty with certain banks; however, they should reinvest the money in a new fixed deposit with the same bank for a longer duration. Failure to meet liquidity requirements It should be noted that investing in FD is a safe way to invest; your money is locked in for a certain amount of time. As a consequence, you should make sure you have enough cash on hand in case of an emergency. [B-02] Conclusion Keep these points in mind to avoid making the same mistakes that others have made. Avoiding these mistakes will allow you to earn greater benefits and earnings from your fixed deposit investments. You may also get in touch with the experts to learn more about your investing options and locate the best-fit term deposit plan for your financial needs. The experts will help you in learning about the different advantages and benefits of your selected fixed deposit plan, which will allow you to make the best financial possible choice. Before investing in FD, keep the previous concepts in mind to get the most out of what they have to offer! To know more about such types of topics, visit Piramal Finance.
08-11-2023
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Schemes

ECLGS - Emergency Credit Line Guarantee Scheme

As small businesses shut down in economically stressful situations, a slowdown of trade and commerce affects the livelihood of people. The government introduced a scheme to reduce stress and help build their trade again. Emergency Credit Line Guarantee Scheme (ECLGS) provides 100 percent coverage to banks and other institutions that lend to these businesses identified by the Kamath Committee. Read on to know more about ECLGS including its features, the purpose of the scheme, and eligibility. [B-01] What is Emergency Credit Line Guarantee Scheme (ECLGS)? The Indian government announced ECLGS in 2020 as a part of the Atma Nirbhar Bharat Package. Their objective is to aid MSMEs (Micro, Small & Medium Enterprises) to resume business and build their business that suffered during the pandemic. As per the scheme, Member Lending Institutions (MLIs) have been assured a 100 percent guarantee in case of non-repayment of the loan. After being introduced in May 2020, ECLGS was extended multiple times to include more sectors and increase the borrowing limit. In February 2022 it was extended till March 2023 to implement the announcement made in the Union Budget 2022-23. Also, the guarantee cover was expanded by Rs 50,000 crores to increase the total limit of the scheme from Rs 4.5 lakh to Rs 5 lakh crore. As of August 5, 2022, loans of about Rs 3.67 lakh crore were disbursed, as per government data. While earlier the scheme aimed at reviving SMEs and MSMEs, the finance ministry recently enhanced the ECLGS loan amount eligibility for domestic airlines, from Rs 400 crore to Rs 1,500 crore. Purpose of the Scheme The scheme aims to help MSME borrowers with the capital required to restart businesses affected by the pandemic. Who are eligible for ECLGS? Below, we have listed the eligibility criteria for ECLGS and it has been divided into points for better understanding. The components in the scheme includes ECLGS 1.0, ECLGS 1.0(Extension), ECLGS 2.0, ECLGS 2.0(Extension), ECLGS 3.0, ECLGS 3.0(Extension), and ECLGS 4.0. 1. ECLGS 1.0 As on February 29, 2022, the scheme provides fully guaranteed credit to business enterprises and individuals for specific business purposes. Their total outstanding credit across lending institutions should be up to Rs. 50 crore. 2. ECLGS 1.0 (Extension) Under this section, businesses that have availed financial aid under ECLGS 1.0 as of March 31, 2021, are eligible for the scheme. 3. ECLGS 2.0 As on February 29, 2022, borrowers belonging to 26 sectors identified by Kamath Committee with loans above Rs.50 crore to Rs.500 crore and due up 60 days are eligible for the scheme. However, it is also mandatory to meet other terms of the guidelines. 4. Under ECLGS 2.0 (Extension) As on March 31, 2021, those who have taken aid under ECLGS 2.0 as per the revised date are eligible for the scheme. It’s also mandatory to meet other terms of the scheme. 5. ECLGS 3.0 As on March 2021, those belonging to travel and tourism, leisure, catering, sporting, civil aviation, hospitality, floricultural products, and handling supply chains with due up to 60 days are eligible for the scheme. 6. Under ECLGS 3.0 (Extension) Businesses that have taken assistance as per ECLGS 3.0 or businesses that qualify under ECLGS 3.0 as on March 31, 2021, or January 31, 2022, are eligible. It is also mandatory to meet other terms of the scheme. 7. ECLGS 4.0 Under this section, hospitals, medical colleges, and units involved in providing liquid oxygen, oxygen cylinders, etc. are eligible. As of March 31, 2021, they should have taken a loan from a lending organization with a due up to 90 days. They are eligible for the aid of up to Rs 2 crore to set up Pressure Swing Adsorption for on-site oxygen-producing plants. An exception has been allowed if their credit card or savings account does not exceed 1 percent of the total loan amount. under ECLGS 1.0, ECLGS 2.0, and ECLGS 3.0, businesses or entities which had NPA or SMA-2 status as of February 29, 2020, are not eligible. Under ECLGS 4.0, accounts that had NPA status as of March 31, 2020, are not eligible. However, there will be an exception if the borrower’s savings account is not more than 1 percent of the loan. Under ECLGS, the overdue must be regularized before assistance is provided. Also, MLIs should ensure the process they follow covers the overdue. Other Eligibility Criteria The business requesting financial aid must have their GST number. However, MSMEs or enterprises that do not need GST registration do not fall under the category. ECLGS 2.0, ECLGS 3.0, and ECLGS 4.0 will be on an ‘Opt-in’ basis. The loans don’t need to be covered under NCGTC or CGTMSE Scheme. There will be no guarantee fee for credit facilities provided under this scheme. Similarly, there will be no processing fee or prepayment charges. The charges for documentation or other charges will be based on the extant guidelines of the bank. [B-02] Conclusion While the above-mentioned are the norms of the current structure of the scheme, the Management Committee for the ECLGS Fund will be the deciding authority about any changes to eligibility, criteria, guarantee fee, rate of interest, and tenor of GECL. There is no guarantee fee for credit facilities provided under this scheme. Similarly, there is no processing fee or prepayment charges. Documentation and other charges will be as per the guidelines of the bank. There will be comprehensive insurance for the securities charged to the bank should be taken depending on the bank clause.
08-11-2023
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Business Loan

Business Loan for Traders – Apply now for a Loan for Traders

You may be the most vital part of the supply chain system as a trader. You make certain that the goods produced by a certain producer reach the end user. As a result, your trade business is vital to the Indian economy and any economic system. You, as a trader, may need loans from time to time to keep your activities operating. The great news is that you may now get business loans from a variety of lenders as a trader. [B-01] Benefits and Features of Trader Business Loans The following are some of the qualities and benefits of business loans for traders: Collateral-free Business loans for traders are offered without the need for assets. This means you won’t have to deal with a lot of processes to acquire credit. Yet, since such business loans are unprotected, you will be charged a higher rate of interest. Varying Tenures You may repay your business loans for longer than 36 months as a trader. Some lending firms may even enable you to spread your loan repayment over a period of 60 months. Quick and Easy As a trader, you may apply for a business loan via any lender. This implies you will be able to file for a business loan swiftly since, most of the time, you will need one right away. Little Paperwork As a trader, you may get a business loan with less paperwork. Most of the time, all a user has to submit while applying is their professional and personal data, as well as relevant identity and salary proofs. Since you only need to provide a few papers as a trader, you won’t have to spend much time asking for trader credit. Rapid Approval and Payment Once the bank has checked the papers sent with a trader loan request, the funds will be credited to your account as soon as possible. Trader/business loan funds are often paid within three days after approval. Prepayment Fees Are Close to Zero If you, as a trader, desire to stop your loan account prior to the expiry of the repayment period, you may do so for a very nominal fee. Some banks may enable you to do so for free. Yet, as a trader, you must recall reviewing the lender’s prepayment plan before enrolling to make an informed choice. Interest Rate Factors For a Business Loan For Traders Credit Rating Credit scores vary from 300 – 900. It displays to a lender that you are creditworthy. Your credit score is used by lenders to judge your stability. If you have an excellent credit score, your business loan interest rates would be much lower. Most lenders regard a credit rating of 750 or above to be good. If you have a poor credit score, your lender will deem you as a risky client and will either raise your loan interest rate or deny your loan request. Before asking for a business loan, you should always verify your credit score. History of Credit If you have a solid and lengthy credit history, the interest rates on your business loan would be cheap. This is due to the fact that your lender will examine your past actions with credit to assess your creditworthiness. If you have a poor credit history, your interest rates would be higher since you are seen as a high-risk client. Sum of the Loan The interest rate on a big business loan is lower than on a small company loan. As a result, it is preferable to get a big loan for your company rather than a small loan, as interest rates fluctuate according to the loan size obtained by the client. Ensure that you calculate your firm’s demands and needs, including labour, gear, stock, and other expenses. Relationship With The Lender If you have a solid and healthy connection with the lender from whom you are borrowing and are an existing client, interest rates may be negotiated. A reduced interest rate can be obtained by this. It might help you save money on your company financing. Most lenders like to delight their clients, so they may cut the interest rates if you have a pleasant and long-term connection with them. Conditions for Trader Loan Eligibility To qualify for a business loan for traders, you must satisfy the following criteria: You must be a sole trader. You must have a minimum of 5 years of business experience. It would be best if you were an Indian national above the age of 22. You must have a minimum yearly revenue of Rs. 10 lakhs. It would be best if you had a CIBIL score of 750 or above to be considered. Lenders’ credit score requirements might differ. You must have a minimum yearly income of Rs. 2 lakhs. You must have managed a profitable business for at least two years. How to Ask for a Trading Loan To apply for a business loan for traders, you must follow the following steps: Step 1: Fill in your business and personal details first. Step 2: Pick a business loan deal from your preferred lender. Step 3: Give other vital information such as the loan sum and chosen payback term. Step 4: Submit scanned copies of all relevant papers for review to the lender. Step 5: The lender will review the paperwork, and if accepted, the business loan sum will be sent into your account within three business days. [B-02] Conclusion A trader may need a company loan to pay for items acquired from manufacturers, pay workers’ wages, or cover basic operating expenses. Several traders prefer to provide credit to their customers, and if the money pledged does not arrive on time, the trader may suffer a financial constraint. In such cases, a business loan for traders might come in handy. If you want to learn more about MSME business loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Guide

Difference Between Convertible and Non-Convertible Debentures

Debentures are popular business tools for raising money. It is an unsecured long-term business debt and an excellent funding option for companies. It is also a great choice for businesses with fewer finances. Those who want to prevent the dilution of their equity can opt for it. [B-01] What Are Debentures? Debentures are financial solutions for companies that do not want to tie down their assets. It is a debt instrument that ranges from medium to long-term. Companies use debentures to borrow money at a fixed interest from people. They are also great for those that do not have enough collateral for a loan. A debenture certificate holds the following information: Interest rate Payment schedule Maturity date and other features. The amount of the loan. A debenture usually states how much money the investor has given as principal and at how much interest. It also declares the payment schedule and maturity date of the debenture. Types of Debentures There are various types of debentures: Secured and Unsecured registered and Bearer First and Second, and Convertible and Non-convertible In this article, we will be discussing the last two- convertible debentures and non-convertible debentures. What are Convertible Debentures? The debentures that can be converted into the company’s equity shares are called convertible debentures. You can consider them long-term debt trackers and they have a low rate of interest. Features of Convertible debentures: Can be converted to equity shares. Have a low-interest rate. Value on maturity depends on the share price of the company at that time. Can be converted into equity during bad market conditions. Holders of convertible debentures are both creditors and owners of the company. Less-risky. Convertible debentures are of two types: Fully Convertible Debenture- When the whole value of the debenture can be converted into equity, it is fully convertible. Partially Convertible Debenture- When only a part of the debenture can be converted into equity, it is partially convertible. What are Non-Convertible Debentures? These debentures usually cannot be turned into equity shares. A very high-interest rate is the main feature of these debentures. Features of Non-Convertible Debentures: Can not be converted into equity shares. High-interest rate. Value at the time of maturity is fixed. Can not be converted during bad market conditions. Holders of non-convertible debentures can only redeem them at maturity. Non-convertible debenture holders are only the creditors of the company. Riskier as compared to convertible debentures. Non-convertible debentures are of two types: Secured non-convertible debentures-This form of a non-convertible debenture is more secure because they are backed by the company’s assets. The investor can always liquidate the assets of the company in case the company fails to pay on time. Unsecured non-convertible debentures- Since there is no collateral involved, they prove to be riskier and less secure. In this case, the investor has to wait until the company can pay. The interest rate for these non-convertible debentures is higher than that of convertible debentures. Non-convertible debentures reward investors with the following compared to convertible ones: Increased returns. Low risks. Tax benefits. Key distinctions between convertible and non-convertible debentures The article above has provided you with enough details on both debentures. Despite their differences, both have benefits to offer to the investor. To better understand them, you have to learn more about both kinds of debentures. Equity CD: It allows the investor to convert debentures to equity shares of the company. NCD: It does not allow investors to do the same. Hence, it does not meet this specification. Rate of interest CD: Convertible debentures have lower rates of interest. NCD: They have high-interest rates. Value at maturity: CD: Their maturity value depends on the company’s current market value. There is a chance of getting higher or lower returns. It depends on how the company performs at the time of maturity. NCD: For non-convertible debentures, the value at maturity is fixed and does not change. Status: CD: Convertible debenture owners are creditors as well as the owners of the company. Thus, they enjoy a dual status. NCD: Non-convertible debenture owners are only considered the creditors of the company. Market conditions: CD: Its owner can convert finances into equity shares whenever they want. It proves to be very beneficial during poor market conditions. NCD: The NCD owner has no choice but to wait until debenture maturity to receive the shares. They are redeemed only at maturity. Stability factor: CD: Convertible debentures are less risky and hence a stable option. NCD: Non- convertible debentures are riskier and have a lesser stability factor. This is a major drawback for them. [B-02] Conclusion: Considering the various options of convertible and non-convertible debentures needs proper research. There are a lot of things you need to assess. New business owners do not want to bring their share values down. Debentures are a viable and safe option for them. It is also a good choice for already established firms that do not want to split assets. Convertible debentures and non-convertible debentures have significant differences. Yet, both have proven to be beneficial in their ways. These debentures are excellent choices for an investor. Yet, one should have proper knowledge of how to invest. Experts advise that 10% of investments should be put into convertible debentures. The rest can be utilized for other choices. Thus, one should seek financial advisors from trusted sources. It will help you build your financial profile to a better scale. Piramal Finance would be one of your best choices in this case. For further details, you can visit our website. It will be our sincere pleasure to answer all your queries.
08-11-2023
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Personal Loan

Can You Get an Education or Personal Loan For Online Courses

No longer are classrooms and offline classes the only places to learn. Over time, distance learning and online courses have gained the same value. This is because they save time and help students learn important skills. Before COVID-19, a personal loan was the only way to pay for an online course. But, after the crisis, the Ministry of Education has started considering online courses. And in some cases, let students use education loans to study an online course. The Ministry allows loans for certain courses, online or in person, as long as important information is shared. This helps those who need money to study the courses they want. There are a few online courses, distance learning programs, and degrees offered by startups that get sponsorship and loans from banks, but there aren’t many rules to follow. Many NBFCs and fintech companies have started to lend money for such courses. [B-01] What is an education loan? An education loan is a form of financial aid that can be used to pay for things like books, supplies, and living costs to finish the required course. This loan comes in two different forms: Domestic Studies Loan: These loans can be used for any course within India. It can be a basic or higher-level course. Study Abroad Loan: These education loans are given to students who want to continue their education abroad. What is a personal loan? Personal loans are unsecured loans that give you money without requiring you to put up collateral. They have a fixed rate, amount, and time to pay it back. The best thing about this loan is that you can use it whenever you want. And you don’t have to fill out any paperwork or prove where the money has gone. Eligibility Criteria for Education or Personal Loans for Online Courses The eligibility criteria for students to get education or personal loans are as follows: Course or Degree Approval by UGC and AICTE Students can only get a loan for school if the UGC and All India Council for Technical Education have approved the online course. The online course could be from a college, university, or new company. These authorities know which online courses are certified and which can be taken from a distance. This makes it easier to get student loans for these courses. Nationality To apply for a loan, the student must have Indian citizenship and have assets in their name (or their parent’s name, if an education loan). Proper paperwork and legal documents To get a loan for education, you need the following documents: Aadhar Card: To prove where you were born and where you live, you need a valid Aadhar card. Age Limit: You must be between 21 and 68 years old for a personal loan. On the other hand, you must be between 18 and 28 years old to qualify for an education loan. Monthly or Annual Income: For a personal loan, you must be self-employed, run a business, or be on a salary and show pay stubs from the last few months and your current annual income. If students are dependent on their families, their parents can take out loans in their name. PAN Card and KYC Documents: Your bank account must be linked to your PAN Card and KYC papers for a student or personal loan. Information About the Course and Fees With less paperwork involved, you don’t have to specify why you want a personal loan. If you want an education loan, you must provide all course details. This includes the fee structure, travel costs, cost of living, and so on. The final loan amount will be decided and given based on these details. Perks of an Education Loan Here are some of the benefits of an education loan: Tax Breaks Under Section 80E of the Income Tax Act of 1961, students and their parents can get rebates on these loans, which can help them save money and get tax benefits. In the case of personal loans, such tax rebates are not available. Payback Perks One of the best things about student loans is that EMIs aren’t due until after the course ends. Students can study without worrying about payments until they start making money. Benefits of a Personal Loan Here are some benefits of getting a personal loan: No usage restrictions The best thing about personal loans is that there is a limit to how much you can borrow. This limit is based on your current annual income or source of income. This helps you and the bank make sure you can repay the loan. Based on that, the EMIs are set, which can help you plan your spending and savings. Unsecured or Secured Personal loans can be secured or unsecured, depending on their risks. When it comes to unsecured loans, there is no need to put up property as collateral. This makes it easy for regular people to get these loans without risking their property. Flexible Loan Tenure Personal loans can easily be repaid as per fixed tenures, which are very flexible as per the duration of repayment chosen. EMIs can be paid easily as per similar terms. [B-02] Final Takeaway Education loans may take time to process, and the chances of getting them depend on what they are used for. Personal loans can be used with no trouble at all to pay for online classes. Online certification courses can make it difficult to obtain education loans. In such cases, personal loans help you start a career and build a strong portfolio by getting the needed skills. On the other hand, these loans have high interest rates. This is because there is more risk involved than with loans meant for education. In the end, it’s important to make an informed decision. Consider your eligibility and research the funding options available to you. This will help you reach the path to higher education more easily. To learn more about personal or education loans, visit Piramal Finance for more blogs like this. You may also take a look at their products and services.
08-11-2023
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Health Insurance

Buy Health Insurance Plans For Parents

It has been stated that age is more than just a number, and this is notably true for parents whose golden years are severely harmed as they become older. In truth, health is the first friend that begins to impact older adults and digs a deep hole that the hard-earned assets are gone. In a case like this, parents’ health insurance might be really useful. The costs of medicine, surgery and care are all rising at an enormous pace. Add to it the cons of seniors having a fixed salary with no chance for progress. This uneasy mix may make retirement a chore rather than a joyful second stage. In such cases, a health insurance plan for parents becomes useful. [B-01] Why Do You Need Health Insurance for Your Parents? Getting your parents a proper health insurance plan is vital to ensuring they get the greatest medical care without fiscal stress. To pick the best health insurance policy for your parents, examine the following factors: Safety It is vital that you review the insurance coverage perks. Assess the plan’s terms, pre- and post-hospitalization insurance, critical illness insurance, daycare methods, in-patient treatment, Ayush treatment, home care hospitalisation, and so on. Amount Insured in Adequate Sum As your parents are more at risk of health risks due to their age, you should pick a bigger total covered sum. It will guarantee the finest therapy without regard to cost. Pre-Existing Illness Protection If your parents possess pre-existing health problems, they will be covered only after the hold time, normally 2-4 years. This could differ from one insurer to the next and depending on the plan chosen. Check the time after which your family health insurance policy health plan will treat pre-existing problems. Clause of Co-Payment Co-payment is a part of the total price that you will be liable for paying on your own. The rest of the medical costs are covered by health insurance. For example, if you have a plan with a 20% co-pay clause, you would need to pay Rs. 2 lakhs from your pocket for a claim of Rs. 10 lakh, while the insurance provider will pay Rs. 8 lakh as part of the payment. You might also include a “no co-pay” term. Tax Benefits Section 80D allows you to deduct the health policy costs you buy for your parents. If you pay a premium for both you and your parents, who are under the age of 60, your total tax gain maximum for health insurance premiums is Rs. 50,000. If your parents are beyond the age of 60, the maximum is hiked to Rs. 75,000. This may vary based on the related tax limits. Factors to consider while Picking a Health Insurance Policy For Your Parents Pre-existing Conditions Beyond a certain age, it is usual for folks to have certain pre-existing ailments. Whether your parents have certain problems, you should check with your insurance to see if they are covered. Most health insurance plans do not include pre-existing ailments. In this instance, your parents will be unable to file a claim for treatment of a pre-existing sickness. Make sure to clarify this with your insurance provider, and pay attention to these problems since they may lead to your claim getting denied later. Guaranteed Large Sum The sum guaranteed that you pick for yourself may be less for your parents. One factor is that the elderly are more prone to visit hospitals. Second, the cost and usage of medicines are much greater among the elderly. Age may also cause serious ailments, like heart problems, renal problems, and so on, which might need costly surgery. As a result, assess for these expenses and pick a large sum insured for your parents. Benefits & Riders Riders and benefits may extend a policy’s coverage. Seek a health plan that includes riders such as a daily hospital advantage, personal accident advantage, income advantage, premium waiver rider, and so on for further ease in the event of a medical crisis. Keep in mind that the more perks a plan give, the greater the range of safety. This may benefit your parents’ health in the long term. Coverage Type You may pick between a solo cover and a spouse cover when getting health insurance for a single parent or even both parents. If you wish to insure both of your parents, a marital policy may give extra perks. A single policy may cover two persons. This greatly simplifies premium payments and claim payments. Claim Settlement Procedure The claim settlement method should be simple and customizable. A complex method that needs the filing of various paperwork, bills, and papers may be hard, notably when you are already coping with a medical issue. To reduce problems at a stressful moment, seek an insurance vendor with a high claim payment percentage and a simple process. Features of Parent Health Insurance Plans The following are the major features of a parent health insurance plan: Tax breaks are provided for premiums paid toward a parent’s health plan. Get a tax break on your health insurance costs. It offers a 15-30 day free trial time. Day-care costs boosting as a result of the usage of special equipment during treatment methods like dialysis & chemotherapy are paid. Some plans also provide health screenings. How to Purchase Health Insurance for Parents Here’s how to get health insurance for your parents: Step 1: Go to the health insurance website of the insurance vendor you want to buy your plan from. Step 2: Give relevant data about who you want to insure, as well as your details. Step 3: Select a health insurance plan from the list of choices. You may also extend your policy by buying add-on covers. Step 4: Upload the relevant paperwork and pay your health insurance premiums online. And there you have it! Your insurance will be sent to you via email soon. [B-02] Conclusion To sum up, when your parents reach the age of 60, they must get a health insurance plan. This is because the rising price of medical care may wipe away the majority of their life savings. Health insurance for parents must be a distinct plan, meaning it should not be part of family health insurance. Conduct vast research on the numerous insurance plans for your parents, as well as whether all of your needs are met. If you want to learn more about health insurance plans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Education

E-Aadhaar: Everything you need to know

What is Aadhaar? It is simply a 12-digit number that can uniquely identify you among the citizens of India. It is issued by the Unique Identification Authority of India (UIDAI). It is given based on a person’s biometric information, such as an iris scan and fingerprints, and demographic information, such as their date of birth and address. Then what is an E-Aadhaar card? It is a password-protected copy of your physical Aadhaar card, digitally signed by the competent authority of UIDAI. It is not a substitute for your physical Aadhaar card, but it can be used in its place after the E-Aadhaar download. There is a lot to know about this important personal document, and we have covered all you should know about it in the article below, such as how to get one for yourself, how to know if you are eligible for it, how to do an E-Aadhaar download, how to check whether your Aadhaar number is active or not, and what to do when you lose it. Here is everything you need to know about this. [B-01] Benefits of having an E-Aadhaar Card Accessibility: After doing the E-Aadhaar download, it is very easy to access it whenever needed, as it is hosted on an online platform. You never have to worry about misplacing it. Easy documentation process: With an E-Aadhaar card, getting a new passport or opening a new bank account has become very simple and quick. You don’t need to submit as many documents during these procedures because your E-Aadhaar card contains a wealth of information, such as: Name Address Gender Date of Birth Photograph Aadhaar number Digital Signature by UIDAI Address and Id proof: Your E-Aadhaar card, like your physical Aadhaar, serves as both identity and address proof. According to the IT Act of 2000, which allows for the legal recognition of electronic records with digital signatures, the e-Aadhaar is a document that UIDAI has digitally signed. All the benefits of a Physical Aadhaar card: With an E-Aadhaar card, you are qualified to receive all the various subsidies that the government provides. You can access your LPG subsidy directly in your bank account after linking your Aadhaar number to your account, for instance. How to obtain an E-Aadhaar card You must already own a physical Aadhaar card before you can access an E-Aadhaar card. You can quickly download your E-Aadhaar card from the UIDAI website once it has been granted to you. How to get Aadhaar Card Assemble all the documents needed to submit an Aadhaar application. Proof of identity, proof of address, proof of date of birth, and proof of relationship with the head of the family are all required. After that, make an appointment at the enrollment centre that is closest to your home. After your documents have been approved and your biometric data has been provided, you will receive an acknowledgement slip. You can do an eAadhaar download and check the status of your Aadhaar card using the information provided in the acknowledgement slip. You will need to enter the password, which consists of your first name’s first four letters and your birth year in the format (YYYY), to open the pdf file. How to do an E-Aadhaar Download The steps to assist with your E-Aadhaar download are listed below: You should keep your Aadhaar number ready. If you recently updated your Aadhaar card or applied for one, and yet you don’t know your Aadhaar number, then keep a note of your enrollment number as well as the time and date on your enrollment slip. To proceed, enter your VID, enrollment number, or Aadhaar number. Input your pin code and full name exactly as they appear on your Aadhaar form. Request an OTP by entering the security code. After receiving the OTP, enter it in the appropriate field. following that, click the E-Aadhaar Download button. After the E-Aadhaar download, you will need to enter the password, which consists of your first name’s first four letters and your birth year in the format (YYYY), to open the E-Aadhaar card. Other things to Know About E-Aadhaar Where can you use E-Aadhaar Card? You can use your E-Aadhaar for various purposes to save time and escape the lengthy documentation process. According to the IT Act of 2000, which allows for the legal recognition of electronic records with digital signatures, the e-Aadhaar is a document that UIDAI has digitally signed. Some of the common purposes would be: Using it as ID proof while opening a bank account While applying for a passport At an Indian railway station as ID proof To avail of LPG subsidies To access your digital locker Masked Aadhaar card As the name implies, a “Masked Aadhaar card” conceals a portion of the Aadhaar number so that it cannot be fully disclosed to others. It resembles an Aadhaar card. The first eight digits of the Aadhaar number are partially hidden under the “masked Aadhaar card” by swapping out the characters for XXXX-XXXX, leaving only the last four digits of the number visible. The masked Aadhaar card can be downloaded from the official UIDAI website by choosing the option for a masked Aadhaar card under the “E-Download Aadhaar” section. mAadhaar app The official Aadhaar app, or mAadhaar app, was released by UIDAI to give Aadhaar card holders a platform to carry their demographic information and photo around with them on their smartphones. It’s accessible on Android phones but not yet on iPhones. Aadhaar card holders can add their profiles to the app and access them from any location. [B-02] Conclusion: Now you have a good understanding of an E-Aadhar card. You know what it is, what various purposes it can serve, and how to do an E-Aadhaar download for yourself. E-Aadhaar is the perfect option for those who are worried about losing this important document. You can never misplace something available on an online platform. The UIDAI’s Central Identities Data Repository (CIDR) houses all Aadhaar holders’ data in absolute safety and security. In all the years that it has existed, the CIDR Aadhaar database has never been compromised. If you need help with housing finances or a home loan, you can always take help from experts such as Piramal Finance.
08-11-2023
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Home Loan

All You Need to Know About a Home Loan for Government Employees

Whether buying your first home or refinancing your existing one, as a government employee in India, you receive several benefits while taking out a home loan. A few advantages include lower interest rates; reduced processing fees; better terms and conditions; and pre-approval facilities that are not available to the general public. However, awareness of these advantages is limited. In this article, we aim to introduce this financial instrument so that you can avail of a home loan for government employees specifically designed to suit your needs. Government employees often have to deal with high costs and fixed salaries, making it difficult to save enough money to buy their own homes. However, with the right home loan and terms, it is possible to buy your own home while still saving money. With a home loan for government employees, your loan interest rates and monthly instalments will be lower. [B-01] Benefits of Home Loans For Government Employees Here are some advantages to a home loan for government employees: Flexible EMI plans To help government employees with their home loans, banks offer flexible equated monthly instalments (EMIs) plans. With these plans, you can choose the best tenure and EMIs that suit your budget. Also, there is no need to worry about a prepayment penalty on this kind of home loan for government employees. You can also decide to pay off the entire principal amount of your loan at any time without paying an extra fee. In the provisions of the new home loan for government employees policy, you can make loan repayments via EMIs that are capped at 50% of your net monthly income until the age of 75. These benefits are available to current and retired government employees receiving a pension. Benefits for Married Couples A home loan for government employees can be a great investment, allowing you to buy your property and build equity through monthly mortgage payments. If your spouse is a government employee, you both are eligible for a home loan for government employees. If you’re thinking about buying your first home or planning on building an addition onto your existing house, then a low-interest rate (i.e., an House Building Advance (HBA) scheme or a PMAY scheme) is a perfect option. It’s important to note that there is no prepayment penalty for early repayment or at any time before the maturity date. You’ll also have access to new loans as long as you meet the eligibility requirements from year to year after applying successfully for an HBA scheme. Lower Interest Rates The interest rates on a home loan for government employees are lower than most other types of loans. With low-interest rates, monthly repayments are much cheaper. A small deposit is usually all required to get started, and the terms of a home loan for government employees can be agreed upon with the bank. Financing with no restriction on tenure, several instalments, and no penalty for prepayment ensures that you can buy your dream house without worrying about affordability and cash flow. With minimal documentation, it becomes much easier to enjoy the benefits of a home loan for government employees in India. Larger Advance Corpus The HBA scheme provides a home loan for government employees to build a new home. Previously, government employees could receive up to Rs. 7,50,000 in HBA. Recent policy changes, however, allow you to obtain a loan of up to Rs. 25,00,000. The previous HBA limit for home extension projects was raised to Rs. 100,000. The larger the advance corpus, the lower the interest rate on your loan. The lower the rate, the more affordable and sustainable your loan repayments will be. Also, as your salary increases over time, you’ll be able to afford higher repayments with less strain on your budget. In addition, since your property is collateral for this type of home loan for government employees, it’s easier to get than other types of loans like personal loans or credit cards. No Processing Fee The Indian government is committed to helping its employees buy homes by offering them various benefits. One such benefit provided by employers is a home loan with no processing fee. In fact, to avail of a home loan for government employees, they need to be an employee of the Indian government and get it sanctioned by the Public Sector Bank that they have chosen. How To Apply For A Home Loan For Government Employees If you are an Indian government employee looking to purchase your first home, you’re in luck. Many benefits come with purchasing your first home, including simple terms for home loans. Follow these steps to apply for a home loan: First, you must get a government ID card and fill out an application form. Next, you must submit copies of your salary slips, PAN card, and other relevant documents to the lender. You may also be asked for your employer’s name and telephone number, as well as the place where you work. After this, you will have to go through some credit checks by the bank before they finalise everything with their underwriting process. [B-02] Conclusion Choosing the right home loan product is important to achieving your goals as a homeowner. Whether you are looking to buy your first home, buy a larger one, or even refurbish an existing one, there is plenty to consider when deciding which loan will work best for you and your family. Whether you are a new government employee or a veteran in the public sector, you may be eligible for benefits to help you get into your dream home sooner. In addition to grants and interest-free loans, if you are a government employee, there is a special home loan for government employees program and special rates available.
08-11-2023
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