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Celebrate Immediate Possession Of Your Dream Home – Loans For Resale Homes

Owning a home is one of the most satisfying experiences for any person. It is among the most important and expensive purchases you will make. Home loans are a great way to finance the purchase of your dream home. But they can also be used to fund various other projects. For example, if you want to build a new house or buy land on which you plan to construct one in the future. Then, home loans for resale homes are ideal. They will help you meet these requirements. [B-01] What is a Resale Home? A resale home or property can be moved into right away. Resale means the current owner received the property from the developer or another seller. These properties are sold “as is.” If you commute to work long, buying a resale home may be a better option than a brand-new apartment or plot. As the majority of infrastructure in developed areas is already in place, finding a market, a bank, a school, a hospital, and other essential facilities will not be difficult. With a resale home, you will have immediate possession. This means you will not have to wait for construction to be completed before moving in. Resale properties are largely the buyer’s responsibility to evaluate banks and negotiate the best offer on a home loan. This segment is treated differently by banks than under-construction properties. Buyers should be familiar with the home loan process before buying a resale home. Home Loans for Resale Homes Loans for resale homes can be used to purchase brand-new houses and pre-owned ones. They are also available for residential properties like condos or apartments and commercial buildings like office spaces. Home Loans For First-Time Home Buyers As a first-time home buyer, you must have a steady job and a good credit history. If you’re looking for more accessible options, it would be better to opt for one specific home loan designed for first-time buyers. You can also justify paying higher rates of interest if you can afford it because there are certain benefits associated with these loans, such as reduced down payment requirements and lower monthly payments over time. Home Loan Eligibility Criteria For Resale Homes When it comes to buying resale homes, you need to keep the following points in mind: Age of the applicant You may apply for a loan for any property if you are over 18 years of age, including resale homes. Banks typically extend home loan terms until the end of the borrower’s working life. The loan’s term will end when you retire, regardless of when you take it. This is a typical scenario. Depending on the credit score and repayment capacity, financial institutions may extend the tenure. They might also provide mortgage insurance. Age of the property A property’s age is an important consideration. It should be considered when deciding the kind of home loan you will apply for. Resale homes are dated by when they were first occupied, not how long they have been owned. In some markets, purchasing a home may be impossible. This is because there is no space for new development. The resale home finance segment is just as important to lenders as the new supply segment. Banks will not approve a home loan request for a property in poor condition or disrepair. Even if the property is over 30-40 years old, well-maintained property has a better chance of loan approval. CIBIL Score Applicants with a perfect CIBIL score of 750 or higher are more likely to be approved for a home loan with easy and affordable repayment terms. Fixed Obligations to Income Ratio (FOIR) Low FOIR values indicate a higher disposable income. This increases the borrower’s chances of repaying their loan on time. Lenders will most likely offer low FOIR borrowers favourable terms on home loans. Home Loan Applications for Resale Homes The applicant can apply for a loan for a resale home separately or jointly. Co-applicants for a loan on a resale home are not required to be joint owners. However, they must be family members, such as parents, spouses, brothers, sisters, or children. Home loans are based on criteria such as customer profile, repayment plan, maturity age, property age, and other terms the bank deems applicable. Documents Required For a Home Loan To complete their documentation and approval process, banks often request the following documents: Completed application form A passport-size photo PAN Card Passport Driving license Voter ID card Bank statement for the last three months Income tax return for the previous financial year Address proof (recent bill of mobile phone, electricity bill etc.) Property-related documents (sale agreement, sale deed, letter of allocation, paid receipt of Land and Building Tax, non-encumbrance certificate, and so on) Impact of GST on Resale Homes In addition to affecting the real estate sector, the Goods and Services Tax (GST) also impacts resale homes. Since resale properties are immovable, GST is generally not applicable. However, sellers must pay stamp duty and registration fees (which may vary from state to state). Home Loan Tax Benefits for Resale Homes The tax break is the best part about buying a resale home with a home loan. You can take advantage of it once you have ownership of the property. Section 80C allows for a deduction of up to Rs.15,000 from the principal amount. Under section 24B, up to Rs. 1.5 lakh is exempt from interest tax. A resale home can be purchased more profitably by borrowing money. [B-02] Conclusion Loans for resale homes have become popular because they help you fulfil your dream of owning a house. These home loans enable you to purchase an already-built home at a lower price. It is perfect if you are looking for an investment property or want something that will be ready in no time. If you want to learn more about home loans, look at related blogs on Piramal Finance. You can also take a look at their various financial products and services.
08-11-2023
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Celebrate This Diwali With A New Car

Diwali marks the beginning of the festive season in India. It is when you celebrate with your friends and family and enjoy good food and sweets. However, it is also an excellent time for new beginnings, like buying a new car. A lot of people look forward to Diwali and apply for a car loan or a personal loan that will help them bring their dream car home. Why? That’s because several automobile dealers offer attractive discounts on car purchases during Diwali. Nonetheless, that isn’t all. Here are all the benefits of buying a car during Diwali. [B-01] 5 Reasons Why You Should Get A Car Loan And Buy A Car This Diwali Automobile manufacturers put forward several offers to boost their sales during Diwali. But the question remains. Is Diwali a good time to apply for a car loan and bring home a new car? The answer can vary depending on every individual’s unique situation. But in general, the answer is yes. Diwali is an ideal time to make a car purchase. Here are all the reasons why. Discounts, offers, and free accessories Attractive deals are the primary reason Diwali is a great time to buy a new car. During the festive season, people are in the mood to celebrate. This means they are willing to spend money on the good things in life, including having a car of their own. However, the numerous options on the market can make it hard for them to choose a car. So, they often turn to discounts and deals to find the ideal car. The competition in the automobile industry is pretty tough. Every automobile manufacturer wants to grab its share of the market. To achieve this, manufacturers and dealers come up with competitive offers that attract potential car buyers. Additionally, they might be willing to offer free accessories as part of the purchase. This includes wheel covers, tool kits, seat covers, etc. If you want to take advantage of all these benefits, buying a car during Diwali is a great option. However, remember that these offers only last during the festive period. They might be invalid on any other day. Cashback and gifts You enjoy discounts, offers, and free accessories when buying a car this Diwali. But that isn’t all. Car manufacturers and dealers also offer cashback and gifts. If you go shopping during the festive season, you will find a lot of businesses organising lucky draw contests. This is another way to attract prospective car buyers. Nonetheless, it means a great deal for you on your car purchase. You get to bag attractive cashback offers. This means you save a significant amount on the car purchase. In addition, you get to participate in contests like a lucky draw or scratch cards. And if you are fortunate, you can take home an additional gift. Now, that is a great way to celebrate the festive season. You get a car, and you also get a memorable experience worth remembering for your lifetime. Replace your old vehicle with a new one Do you already own a car that has gotten too old with time? Perhaps you should exchange it for a new car this Diwali. Unlike the rest of the year, car manufacturers and dealers become open to the idea of car exchanges during Diwali. In addition, several financial institutions offer customised car loans to support such exchanges. If you are short on money, swapping your old car for a new one can be a brilliant option. And there is no better time to do it than during Diwali. You get a good price on your old car, plus added benefits, cashback, and discounts. This translates to big savings in a season when you are likely to spend a lot. Enjoy free car insurance Buying a car is a huge investment. However, a car purchase doesn’t end with you paying just the cost of the car. Alongside the price of the car, you also have to pay for car insurance. Car insurance in India typically begins at Rs 2,400 per year. Nevertheless, this amount can vary based on your car’s model and brand. The good news about buying a car during Diwali is that you stand a chance to get free car insurance. Now, this entirely depends on the dealership. So, you will have to ask the dealer if they have such offers during the festive season. If they do, you can save on insurance costs for the first year after purchasing a car. Car loans with zero processing fees and attractive interest rates If the opportunity to save big on a car purchase sounds appealing, this last point is for you. Using car loans is a great way to purchase a car during Diwali. Typically, car dealers partner with banks and other financial institutions to offer attractive interest rates and zero processing fees on car loans. So, if you have plans to take a car loan to buy a car, Diwali might be the best time to do so. Apart from processing fee waivers and reduced interest rates, you might also get other benefits, like a reduced down payment. [B-02] Bring your dream vehicle home this Diwali with a car loan. The festive season is indeed a great time to buy a new car. Diwali is a festival of new beginnings and holds sentimental value. So, a car purchase can bring positive energy and pave the way to more celebrations. If you are short on funds, consider getting a car loan to fund your car purchase. Numerous car loan and personal loan providers exist on the market these days. They often offer attractive deals on Diwali. For instance, check Piramal Finance’s personal loan webpage. They have unique features that can make your car purchase as smooth and enjoyable as possible.
08-11-2023
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Common Mistakes People Make When Trading

Trying to make mon ey through share trading or stock trading can be exciting and rewarding. But it can also be an expensive lesson in risk management if you are not careful. Learning how to trade shares online can seem intimidating initially. However, with the right research and approach, you can profit from your trades without risking too much of your hard-earned savings. A successful investor knows it’s important to minimise risk to maximise gains, whether investing in the stock market or playing roulette. This means that you should be vigilant about avoiding common trading mistakes to maximize profits and cap the losses on your portfolio. [B-01] Trading and the Common Mistakes? While investing is a great way to make money work for you, carelessly trading shares can lead to financial loss. To keep up with the ever-changing market, traders must always be aware of what’s happening in the industry. Here are some common mistakes beginner traders tend to make and how you can avoid them- Not Doing Enough Research The first mistake is not researching a company before investing in it. Many people buy shares of companies without knowing anything about the company, its competitors, and the industry as a whole. This can be extremely risky since there is no way to know how the stock will do over time. It will also be hard to know if the stock is overpriced or if you will be able to sell when needed. In addition, many people follow what everyone else is buying instead of looking at individual companies. This could lead to making some really bad investments. Not Having A Plan One of the biggest mistakes people make when trading is not having a plan. Having goals and knowing what you’re trying to do with your investments is important. For example, if you want to save for retirement, then invest for the long term. And if you need more cash flow, then invest in growth stocks that are paying dividends. Or if you want to balance your portfolio between growth stocks and bonds, then invest in a mix of both. This way, you can make calculated decisions and trade more wisely. Risk Tolerance You should take into account your risk tolerance when investing. Knowing how much risk you can handle will make it easier to pick the right investments. Risk tolerance can vary, so there isn’t one specific rule on how to measure it. Generally speaking, you should ask yourself if they would feel comfortable losing everything they invested in one year, five years, ten years or twenty-five years. By answering these questions honestly, you can determine what level of risk you are comfortable with before choosing investments. Not Diversifying Diversification reduces risk. If you only invest in one or two stocks, you are more likely to go down, resulting in heavy losses. If you invest in ten companies, you will make up for the losses of one with the other nine. So your portfolio would still be profitable. Trying To Time The Market The most common mistake people make when trading shares are trying to time the market. It means you want your shares to go up in value as soon as possible. Hence, you’re likely to buy at too high of a price and sell at too low of a price. Buy lower-priced stocks and hold on to them until they increase in value over time. Making emotional decisions It’s also important not to trade on emotions. Emotions can often take over when making decisions about stocks. It will lead you to buy when you shouldn’t or sell when it’s not an appropriate time. You should have set plans about when to buy or sell, so you don’t get caught up in the moment. Not Reviewing Your Portfolio Some think that because they invested a certain amount of money, they are guaranteed to make money. However, this isn’t the case. By talking to a financial advisor, you should review your portfolio regularly to see what is going on with your investments. Also, make sure whether you need to make any changes. Reviewing your portfolio is important because it will show if you have an underperforming investment. It will also highlight if there’s anything in your portfolio that needs more research. In addition, it’s always a good idea to talk to an expert when considering big trades or changing the mix of stocks in your portfolio. Not Sticking To Your Strategy Formulating a share trading strategy and abiding by it is crucial for long-term success. For example, you can choose to buy when the market is in an upward trend or sell when the market is in a downward trend. However, if you find yourself doing the opposite of what you’ve planned, you should rethink your strategy before continuing. In addition, there are many strategies, such as ‘momentum trading‘, where your trades depend on whether stocks are trending up or down in price. Momentum traders will wait for a stock to break through a certain level of resistance or support (a level at which the stock has traded recently) before taking a position. The key is that you will only take positions when you see momentum in the direction you want to trade. Ultimately, a successful trader always sticks with their strategy. [B-02] Conclusion It’s important to be aware of your mistakes and learn from them to make better decisions. Take some time out of each day and examine what you could have done differently. You’ll find that your stock trading will become more effective and profitable. For more information, head over to Piramal Finance.
08-11-2023
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Health Insurance

Common Mistakes To Avoid While Buying Health Insurance

Due to rising living and health care costs, everyone needs health insurance policies today, even if they have a lot of money. It’s a great way to ensure that you and your family are financially safe and healthy in case of medical problems. Many families had to use their savings to pay for medical bills because of the pandemic. These things showed how important it is to have full health insurance to protect your health and finances. People who act too quickly may choose health insurance policies that don’t work well. That will only cover a small part of the space. Here are some common mistakes you should avoid if you want to buy the best health insurance policy. [B-01] Common mistakes people make when buying health insurance policies Not enough coverage In India, the cost of the premium you pay for health insurance is a big part of how you decide which policy to buy. So, people often end up with too little coverage when they try to save money on insurance. When looking for the best health insurance policy, you should consider more than just the cost of the premium. The main reason to get health insurance policies is so you don’t have to worry about money if you get sick or hurt. But if you don’t have enough insurance, your policy might not help you when you need it. If you don’t have enough health insurance and get sick, it’s just as bad as not having any. So make sure your health insurance policy covers enough. Not enough research People in a hurry to get health insurance policies should read the terms. Most people buy insurance without researching it or shopping around for the best deal. Before choosing a health insurance policy, experts suggest doing some research. Families with two or more kids should get a “family floater” plan instead of separate policies. If grandparents are part of the family, it might be best to buy them health insurance policies that don’t have to be paid out of pocket. The best thing to do is figure out how much your healthcare costs will be over the next few years and then get insurance to cover them. Not giving a proper medical history People make the mistake of keeping their health records secret. When they try to get health insurance policies, they worry that they will be turned down or have to pay a lot. If the insured tries to hide their medical history, they could get in trouble when it’s time to make a claim. The company can say that the medical history wasn’t shared. Health insurance policy contracts are based on the information given by the insured. If you tell them about your health history, they might charge you a slightly higher premium, but they won’t be able to pay your claim. Buying a simple policy There should be more than the basic coverage to cover many illnesses or situations where medical coverage is required. But the person with the policy can buy extras that fit their needs. Since add-ons raise the premium, many people choose a standard health insurance policy. Standard policies have lower premiums, but unless you buy add-ons, they don’t cover certain medical conditions or situations. Misreading of the co-pay clause When they buy something, most people don’t think about inflation. With a co-pay provision, the insured pays part of the claim and the insurance company pays the rest. The section is for older people, expensive medical procedures, and treatment in the city. In this case, the insured pays a co-payment of 10% to 20% of the claim. Other kinds of insurance cost more than co-pay insurance. You must understand this part of the law if you want affordable long-term health insurance policies. When you are young and healthy, the co-pay option can be helpful. Leaving out the exceptions Every health insurance policy has a list of things it doesn’t cover. Companies that sell insurance will tell you ahead of time. They won’t pay for any claims due to being left out. People often only bother to read the list of things that are allowed. They feel bad when they need to make a claim and find out that the insurance company won’t pay. Ignoring the additional benefits A comprehensive health insurance policy may cost a little more than a basic one, but the extra benefits of a comprehensive one make it worth the extra money. If you don’t take advantage of these extra benefits, your health insurance may not cover as much or protect you as well as it could. These extra benefits include ambulance charges, hospitalisation costs, cashless hospitalisation, etc. Overlooking small details Even though most people read and understand the policy carefully and know what it covers, they often miss the small details about how it works. The functional details help you make better plans or do things that have never happened before. These will also help you figure out if you should buy the policy in question in the first place. Even if you forgot to look over these details, you could still use the free look period. Almost every health insurance policy has a free-look period of 15 days. You have 15 days after buying the policy to review all the details of your health insurance policies. If you don’t like any of the terms during this time, you can cancel the plan and get your money back, according to the T&Cs. Buying health insurance in old age Many people think that health insurance is only for older people, so they don’t buy one until they’re older. No one can predict when they will need medical care, so not getting the right coverage early on could lead to asset losses or high premiums later. Investing early in health insurance will help you avoid both problems. Many low-cost insurance plans for people under 45 are easy to get. When you purchase health insurance early, you can pay for the waiting period while you are unlikely to need it. This gives you full coverage at a young age. [B-02] Conclusion You can protect yourself and your family in a medical emergency by getting health insurance. Because of how busy people are these days, full-coverage health insurance is no longer a luxury but a necessity. Consumers need to know about their different insurance options to make a smart choice. Don’t make the same mistakes others have made when looking for health insurance. Make sure that you and your family are financially protected. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.
08-11-2023
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Home Loan

Common Myths about Loans against Property

A loan against property provides the borrower with a big sum of money. The most common causes for this sort of loan are the start-up of a new company, marriage, or education for children studying abroad. Before you decide to take out a loan against your home, you should be aware of all the myths and reality. Before taking out any sort of loan from a lender, one should be aware of the wrong information. Ensure that the conclusion you make is founded on facts and genuine data rather than market fallacies. [B-01] What Exactly Is a Loan against Property? A loan against property, or LAP, is a credit obtained by holding your property as a mortgage with the lender. Banks in India often consider the property as a security cover if the loan borrower fails to repay the amount borrowed. If you do not repay the loan on time, the lender has the power to sell the property to reclaim the money. One of the most crucial things to understand about LAP is that lenders only grant a specific proportion of the property’s market value. Banks often lend 50 per cent to 60 per cent of the property’s value. Other private lenders provide around 80 per cent of the property’s worth. LAP is a secured loan since you maintain the security with the lender. Purpose of LAP To pay for a medical issue To help pay for your child’s marriage To pay for the long-awaited trip To grow your company To pay for your kid’s education Advantages of a Loan against Property Lengthy Payback Term LAP (Loan Against Property) has a long repayment term of up to fifteen years. Reduced Interest Rates In comparison to other unsecured products, such as personal loans, which often have high-interest rates, loans against property are low. Reduced EMIs The lower the EMI, the longer the tenure. Because the loan against property has a longer term, the EMIs are lower. As a result, the loan burden is reduced. Simple to Obtain You may easily get LAP since it is a secured loan and banks are eager to grant credit. If you own a home, you may mortgage it with a reputable bank to get a loan for your company or personal purposes. Common Loan against Property Myths Some of the most popular misconceptions about loans against property are listed here. A loan with a higher interest rate is preferable to a loan against property There is no question that with a solid credit history, the credit market provides loans that are better than loans against property. A loan against property, on the other hand, is a loan that will provide you with access to high-value cash at a cheap interest rate. It is a form of loan in which your property is held as collateral. If you are certain that the payments will be made on time, you should never have to worry about maintaining your home as collateral. It takes forethought to maintain your property as collateral. So, if correctly planned, a loan against property is a very useful financial instrument that may help you retain financial stability. The Pledged Property Cannot Be Exploited People have the misperception that once a property is pledged, it cannot be utilised until the debt is paid off. This information is untrue, and the property may be used even if the loan’s term is not completed. If the borrower fails to make loan payments, the lender will take possession of the property. In the event of a default, the lender has the authority to sell the property to obtain money. The Whole Worth of the Property May Be Borrowed This is another common misunderstanding. You will never be awarded a loan for the entire value of the property. In general, the loan amount runs from 75% to 90% of the property’s worth. Though each lender’s policy and terms and circumstances vary, this is a basic amount. As a result, you should carefully evaluate the worth of your home before applying for a loan that meets your needs. A Loan May Only Be Obtained against a Residential Property In the market, this is simply not the case. The loan may be used to purchase both residential and commercial property. The loan amount may also be utilised to purchase commercial or residential property or to reduce lease payments. You Must Have a Greater Salary to Qualify for This Loan Borrower income may sometimes have an impact on loan applications. It represents the borrower’s capacity to repay the loan amount within the time frame stipulated. This is not the case with loans secured by real estate. You may simply get the loan by pledging your property as collateral, and if your lender is pleased that you will be able to repay the debt within a certain time frame, the loan will be approved. The Interest Rate Is Very High Personal loans have a higher interest rate than loans against property. The rate of interest for the latter option is determined by many variables, including the lender you pick, the state of the property, and your credit score. Because loans against property are secured, they are less expensive than personal loans. These loans also have a lengthier payback period when compared to personal loans on the market. [B-02] Conclusion Loans against property are a wonderful choice to pick if you are searching for a loan in the market with no limits and may pledge a property. The loan may be customised to your specific financial needs and payback capabilities. People choose a loan against property rather than a personal loan because a loan against property is cheaper. Taking all properties of LAP, It offers a flexible technique for paying a substantial expense. The only drawback of the loan is that failure to repay it may result in the bank taking power over your property. To know more about such types of topics, visit Piramal Finance.
08-11-2023
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Home Loan

Complete Guide On Getting Housing Loan Easily In India

Buying a house is always a dream, whether it’s your first or fifth. Most people who buy homes today get loans to pay for their purchases. Consider getting a housing loan to buy your dream home. Since housing loan interest rates are getting cheaper, almost every big bank offers a wide range of housing loans with attractive perks. The most obvious first step is to apply for a mortgage. You may have a lot of worries and questions about getting housing loans. You can be sure that this detailed guide will answer all your questions about applying for a housing loan. [B-01] How does an Indian housing loan work? The bank or NBFC pays the owner or builder the housing loan amount. The borrower is expected to pay back the loan amount plus interest over the chosen period. For example, if you borrow Rs. 25 lakh for 10 years at an interest rate of 9.5% per year, your EMI will be Rs. 32,418. The calculation also proves that the loan will cost Rs. 14 lakh in interest on top of the Rs. 25 lakh principal, which brings the total cost over 10 years to Rs. 39 lakh. Here are a few important things to remember about housing loans: The lending company takes the property used as collateral for the loan. The property can be used for either business or living. If the borrower can’t repay the loan, the lender has the legal right to sell the property to get the rest of the money. A step-by-step guide to getting housing loans Housing Loan Application This is the first step of the housing loan process. In this step, you fill out the loan application with your basic information. At this point, you’ll need the following information: Information about a person, like their name, phone number, and where they live. Information about earnings, including annual earnings. Details about schooling, careers, and jobs. Details about the property, like where it is and what it is used for. This is a rough estimate of how much the property will likely cost. At this point, lenders might need different kinds of information. The application must include proof that the facts given are true. At this point, you’ll need the following documents for your housing loan: Identity proof Age proof Income proof Address proof Education proof Employment proof Property details Pay the processing fee Your bank will charge you a non-refundable fee for processing the loan. The processing fee at a typical bank can be anywhere from 0.5% to 2% of the loan amount. GST is an extra 18% added to the price (Goods and Services Tax). Financial institutions use this amount to start and keep the housing loan process going. To attract more customers, some banks have stopped charging loan processing fees. You can get an advantage by negotiating and pursuing. Some banks might be willing to do without processing fees, but others would not. Discuss with the lender At this point, the bank has checked the submitted documents, and the lender and the customer have a formal conversation. If the documentation is in order, it usually takes one to two working days or less. Some lenders want you to come into the branch to discuss the loan, the terms, and other details. Some lenders feel more at ease talking to the claimant in person about these details and getting more information about them. On the other hand, modern financial institutions don’t require you to go to the branch for anything. The online process and door-to-door service from start to finish make things easy and pleasant for everyone. Wait for the verification It’s important to know that many people apply for housing loans daily. To speed up the time it takes to process your application, make sure your documentation is in order. At this point, the lender checks the information that the applicant provided. Most of the time, the lender checks the following documents: Residential address Employment details Credentials of the employer Residence phone number Workplace phone number These details are checked to ensure that the applicant gives the right phone numbers and other information. Housing Loan Offer Letter The offer letter written by the bank includes the following: Approved amount The interest rate that applies to the principal amount Fixed or changed interest rate Loan tenure Method of payment Special plan (if applicable) Terms and conditions of the loan If you agree with the offer letter, you must send the bank a signed copy of your acceptance. An acceptance copy is a copy of the offer letter that the bank puts on record. The administrative fees charged by the bank should be paid off. Property Verification The bank will inspect the property before making the loan. You must give the title deed, the no objection certificate, and other original papers. The property’s title will be checked to ensure there are no problems. Banks also do technical valuations of properties. A property that is still being built will be judged by the bank based on its location, stage, quality, and progress. Before selling or reselling a property, the bank looks at its age, who owns it, quality of construction, upkeep, location, and legal status. Property evaluators who work for the bank decide how much of a loan to give based on established rules. The property backs up your housing loan. When the loan is paid off, your papers will be returned to you. Disbursal of Housing Loans After all the above requirements have been met, the registration process for the housing loan can begin. The bank’s attorney must approve the final document before printing it on stamp paper. After this, you must sign the housing loan agreement and give post-dated checks for the agreed-upon term. After you sign the loan agreement, the process of getting your housing loan money will start, and they will inform you about the housing loan balance transfer interest rate. Your bank will give you the loan amount based on how you agreed to get it (all at once or in stages). [B-02] Conclusion All banks and credit unions have the same process for getting a housing loan. But the process might be different based on the lender’s rules and the borrower’s past. Before applying for a housing loan, you should do research and find a trustworthy lender. Once the loan is approved, you’ll start paying interest from that day on, so don’t wait to send in any missing paperwork or finish any other formalities on your end. If you want to know more about how housing loans are sanctioned, visit Piramal Finance.
08-11-2023
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Complete Guide on How to Calculate Working Capital Ratio

What is Working Capital? Working capital finance is the money your business needs for everyday tasks. This is the difference between current liabilities and current assets. You must track this because you should know how much money you need. But, this cost can change at any time. The working capital allows for responding to new opportunities. You can calculate the working capital cycle by using this formula: Inventory days + receivable days – payable days = working capital cycle in days. [B-01] Working Capital Loan: Everything You Need to Know Not every business has the funds to perform its daily operations. This is why they take a working capital loan. A working capital loan is a loan that any business takes to fulfil its daily tasks. Remember these loans are not investments. Also, they are not for buying any asset. But this money is only to cover any business’s urgent needs. These everyday tasks can include debt payments, payroll, and rent. The loans are linked to a business owner’s credit. If they miss payments, this can affect their credit score. Advantages of Working Capital Finance There are many advantages of taking a working capital loan. It allows a business to carry out its daily tasks with ease. Let us have a closer look at them. A working capital loan is easy to get. It allows companies to meet their urgent financial needs. The process is simple. You receive the amount together. This ensures businesses can carry out their everyday tasks. Also, it boosts the impact of the funding. The best part about a working capital loan is that business owners need not give up control of the business. Why is working Capital Important? This is one accounting term you hear often. But the working capital is important for the success of your business. Working capital affects many factors of your business. For example, it affects how you pay your employees. In addition, it determines how you plan for long-term growth. Working capital loans are essential when businesses run out of money to carry out their daily tasks. To ensure the working capital you have is correct, you need to calculate many factors. Some include your future and current needs of the business. How To Calculate Working Capital? It is simple to calculate the working capital if you understand the formula. In the formula, you will notice that we subtract current liabilities from current assets. If you get a positive number, this means you have enough funds to cover daily expenses. But if the number is a negative one, it means your business is not doing great. Formula: Working Capital = Current Assets – Current Liabilities Let us understand the formula better. What are Current Assets? Current assets are everything your business owns that you can convert into cash in a year. Examples of these include: Prepaid expenses. Cash at the bank. Short-term investments. Outstanding invoices. Government bonds. Stock. What are Current Liabilities? Current liabilities include any debt or bills your business has not paid yet. Examples of these include: Short-term loans. Rent. Wages. Bank overdrafts. Accounts payable. Payroll, sales, and income taxes. Outstanding expenses. Working Capital Ratio Formula Calculating the working capital ratio helps to understand the ratio of assets to liabilities. In simple terms, it is finding how many times a business can pay its liabilities with current assets. Here is how you can calculate the working capital ratio. Working capital ratio = Current assets / Current liabilities Understanding the Working Capital You must know the ratio on paper. This is because two businesses can look similar if you compare their working capital. A high ratio means your business has more cash. And this is good news. If the ratio is low, it means the business is not going great. Generally, a ratio of less than 1 can mean problems. But a ratio between 1.2 – 2 is safe. Also, if the ratio is high above 2, it means that the business is storing too much cash. A company that has good working capital may not make most of its assets. Having positive working capital is great but too much cash doing nothing does not help. The business can use idle funds for many purposes. It includes investing in a long-term goal or clearing debt. In addition, the business may also consider buying long-term assets. [B-02] The Bottom Line Working capital gives you an idea to understand your cash flow. This is essential to make sure your business has money for operations. Taking a capital loan may be helpful in some cases. Your business should always have the funds for its smooth operation. It makes your business reliable and helps with growth. If you would like to read more, visit the Piramal Finance website. It is your ideal destination for finance-related topics. The blogs on the website will help you understand finances better. Head over to their website to boost your knowledge on everything related to finance.
08-11-2023
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Home Loan

Complete Guide on How to Make the Down Payment on Your Home Loan

After a long day, only one person goes home to relax. It’s where people can do or say whatever they want without caring what others think or say. A place you rent is very different from your own home. You are in charge of designing the inside of your home (without having to seek permission from the landlord, as in the case of a rented place). Who you are is what you do in your own space. It’s also a sign of success and social status. It’s often the biggest choice and deals someone makes in their life. But it’s not an easy job. The amount at stake is big enough to make careful planning important. [B-01] How to Finance Your Home Purchase? You would be better off if you didn’t sell your long-term investments to pay for your property quickly and cheaply. You should only sell long-term investments as a last resort because it will change how you plan your finances. A housing loan is the best choice because it helps you get money when you don’t have any and lets you buy a home early in life by putting up your future income as collateral. The best way to pay for a house is to borrow as much as possible and pay it back according to the lender’s terms. Problems with the down payment A home loan requires you to put down at least 10% of the cost of the house, which is based on your qualifications. Also, the lender, a bank or a housing finance company, would pay for the rest (the home loan amount). The down payment is the amount you have to pay out of your own money toward the cost of the home. After picking a house, you might be in a tough spot regarding the down payment. If you have to pay for something immediately, you should save money. This problem is made worse by the high cost of housing. Also, buying a home means waiting to pay for it, which means taking a chance that real estate prices will increase even more. Even though it may seem hard, there are ways to make getting the money for your down payment easier. Some tips on how to save on your own for the down payment Make a Corpse The easiest way to save up for a down payment is to put your savings into one big pot. You can use compounding to grow your savings into a large sum of money if you start saving early in life, preferably as soon as you start working. In the beginning, you might want to think about putting your money into high-return assets like stocks. Then, you must write down how much money you made and put it into safer investments, like a bank fixed deposit. Make a budget, track how much you spend each month, and work hard to cut back on purchases you don’t need. Pay off your high-interest loans to get rid of more debt and increase your monthly savings. Release in the right amount This is a service that a small number of lenders and developers offer to clients in secret for new building projects. If you choose this option, you can pay your down payment in small amounts instead of all at once. Because building takes years, you can pay your down payment in parts, and the lender will release loan payments based on when you do. The pressure to come up with a big down payment all at once is lessened. Don’t take out a loan from a savings account or life insurance. If you have no choice and a home is a long-term asset that increases in value over time, you might want to use your long-term savings. You might want to borrow money from your savings account or life insurance plan. Over time, you can pay off the loan with your own money. How big of a down payment should you make? Even if the lender requires a minimum down payment, you can pay the minimum or more if you can. Both have good points and bad points. Pros of Putting down a bigger down payment on a house There are benefits to making a bigger down payment, such as: Since you have more money invested in the property, you borrow less money. Since interest rates change based on the loan size, a smaller loan can mean a lower interest rate. For example, the interest rate for Rs. 20 lakh may be lower than the rate on a loan for Rs. 40 lakh. This will depend on the rules of the lender. Because it gives the lending institution more security, a smaller loan amount makes it more likely that the loan will be approved quickly. Since registration fees and home loan insurance are based on how much the loan is for, this saves money. Cons of Putting Down More Money on a Home There are some problems with making a big down payment, such as: Your own money is tied down for a long time, which makes you less able to move it around. In a crisis, this could cause a financial crisis. You get tax breaks when you pay off your mortgage, both the principal and the interest. Fewer tax breaks come from smaller loans. To make your house a home, you might need more money first for things like buying furniture and durable goods, making repairs or renovating, etc. [B-02] Conclusion In the past, people in their late 40s and early 50s often bought their first homes. People used to save money until the end of their careers, and then, after paying for important things like their children’s education and their wedding, they would buy or build a home within their budget. But things have changed. People want to buy their own homes even in their late 20s and early 30s. They don’t want to buy their first home until they are in their fifties. If you want more information, you should go directly to Piramal finance.
08-11-2023
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Personal Loan

Complete Guide On How To Apply For Gold Loan In Emergency

Usually, when you need a loan, you either look to your friends and family to borrow money or take a personal loan. To get a loan, you need to have an existing connection with the bank or a high credit score. Otherwise, you will have to deal with high interest rates, extensive paperwork, and delayed loan disbursements. Gold loans, on the other hand, are a more accessible and straightforward option. This will not strain your bank account. Only a few people know that you can use the gold ornaments or coins in your house to avail yourself of some of the best gold loans available. Now what are gold loans, and how is it practical to take a gold loan during a time of financial emergency? Keep reading the article to get a detailed understanding of gold loans in emergencies. [B-01] What are gold loans? These loans are secured because gold is used as collateral between the borrower and the lender. The lender keeps the gold during the loan period. In this way, you are ready to secure the loan by giving up possession of your gold. This type of loan can be a convenient solution to ensuring liquidity for several financial expenses. It can be an immediate personal emergency or a professional expense. A gold loan is also a great option for credit-impaired individuals, i.e., people who have low credit scores. Additionally, it is among the quickest loans to be disbursed. It has relatively lower interest rates because of the collateral. It can be obtained in a few easy steps. Why should you avail yourself of gold loans? Here are some of the benefits of getting gold loans when you need money fast: High-value Loan amount: The Reserve Bank of India has increased the LTV (loan-to-value) for gold loans from 75% to 90%. This means that for the same amount of gold, you can apply for more money. Low-Interest Loans: If you are worried about incurring huge interest, you will find relief in knowing that the best gold loans provide minimal interest rates. These rates are affordable and will not trouble you in the future. Flexible Repayment Tenures: Gold loans offer the most flexible repayment choices out of all the secured loans. The borrower is generally allowed to choose from any one of the following loan repayment options. No EMI is required, you can directly pay the loan at the end of the term. The best gold loans offer flexible repayment terms of up to 48 months. You can pay a portion of the principal and interest each month. There is also an overdraft feature that lets you take money out whenever you need it in case of an emergency. Interest will be charged only on the withdrawn amount. You can pay the principal amount at the end of the term and pay the interest monthly. Flexible repayment options without foreclosure charges, for example:a. Regular loan payment: Here the EMI accounts for a certain portion of the principal and interest.b. Paying interest regularly and clearing the principal at the end of the tenurec. Bullet payment option: With this, you can pay off both principal and interest at the end of the term.d. Every repayment option has its own financial implications. You are free to choose after assessing all the options. Faster and safer processing of loans Gold loans have a very simple and easy-to-follow procedure. They do not have a complicated documentation process. Instant disbursal of funds: A huge advantage of having gold loans is that you can get access to your funds instantly whenever there is an emergency. How can you get a gold loan? Gold loans are risk-free for lenders. They have very simple procedures. The process avoids cumbersome paperwork and tedious documentation. The eligibility criteria are also very lenient. Anyone with gold ornaments can apply for gold loans. The credit score of the borrower is not significant in lending a gold loan. The borrower’s income and employment status do not need to be accounted for. To apply for a gold loan, you can follow the below steps: Firstly, you need to visit your bank branch along with your gold, KYC documents, and residential proof. The bank evaluates the value of the gold and offers a certain amount of loan against it, depending on the LTV. LTV (loan-to-value) refers to the amount of loan you can get in comparison to the value of your assets. A higher LTV is helpful in cases of financial emergencies or if you’re facing financial pressure and need money. Are you eligible? The best gold loans have lenient eligibility conditions that are simple and easy to fulfil. Anyone within the age bracket of 21 to 65 years of age can apply. The gold should be owned either by the individual or their family members. The bank will also think about other important things, like your credit card report and whether or not you qualify based on its standards. However, keep in mind that gold loans cannot be used for risky endeavours like investing in the stock market or buying real estate. [B-02] Final Thoughts Hopefully, you’ve gotten to know more about gold loans and their benefits in this article. Financial emergencies are almost always unpredictable. It is important to have a pillar that can support you during your time of need. Gold loans are the most dependable way to manage and withdraw your funds as needed. They are also easy to apply for. If you want to know more about gold loans and gold loan transfers, you can consult financial experts like Piramal Finances. They provide efficient guidance and solutions for the needy regarding financial matters.
08-11-2023
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