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Personal Loan

How Much Personal Loan Can I Get in India?

Have you ever experienced a financial crisis due to rising product costs or demand? And considered applying for a loan but were put off by the lengthy and complicated procedure? If your answer is yes, you’ve come to the right place. This post will discuss everything you need to know about personal loans, how much you may acquire in India, and the related terms and circumstances. Continue reading to keep up to date on personal loan limits in India. [B-01] What is a Personal Loan? In layman’s terms, a personal loan is an unsecured loan. It may be used to pay various costs such as schooling, marriage, health care, etc. No collateral is required for this loan. But, the risk for lenders is greater than with a secured loan. According to a recent Reserve Bank of India press release, personal loans led the path towards the expansion of credit. The RBI noted a 20.8% growth in June of 2022. In addition, banks’ credit growth rose to 14% in the same month. This is in comparison to a 10.7% growth in the last quarter and 5.8% in 2021. Features of Personal Loans Let’s go through some aspects that will help you better comprehend what personal loans are. A personal loan does not need any security. It is determined by your creditworthiness and job history, as represented in your credit score. Banks don’t do end-use surveillance on the amount issued as a personal loan. A variable payback period spans from 1 to 60 months. It depends on your needs. A personal loan may be obtained with little paperwork. Within 48 to 72 hours, the sum of a personal loan is credited to your account. Personal Loan Amount Calculation Methods FOIR (Fixed Obligation to Income Ratio) FOIR is calculated by dividing your net monthly salary by your fixed monthly expenses. This demonstrates how much money you possess available (savings). Following that, the capacity of this disposable cash to cover debt payments is evaluated. The ideal FOIR proportion is between 40% and 50%, meaning your monthly expenses should not exceed 50% of your income. The FOIR ratio should be as low as possible to get the loan at better rates. Multiplier Method Many lenders use the multiplier method to assess whether a person can take a personal loan. This test is used to identify the personal loan amount based on a certain multiple of the applicant’s monthly net income. Depending on the lender and the applicant’s monthly income, the multiple could range from 10-24 times the applicant’s monthly income. So, if your creditor offers a loan amount 24 times the NMI (Net Monthly Income), and your NMI is Rs. 50,000, you can get a loan of Rs. 12 lakhs. Maximum Amount That a Personal Loan Can Cover While the amount varies by lender, you can typically obtain a loan of up to Rs. 20 to 30 lakhs if you are self-employed. Even so, some other variables may impact the loan amount. Factors Influencing Personal Loan Eligibility Employment Situation Lenders consider your employment situation. They assess the standing of the company for which you work. If you work for the government or a large firm, you may be eligible for a loan with a higher loan amount. If you have been with the company for more than a year at the time of the application, your chances are better. Income One of the major elements of risk before approving a personal loan application is the applicant’s monthly income. It would be perfect if you could earn at least Rs. 20,000 per month. Though income is not the only demand, earning more than Rs. 20,000 does not guarantee acceptance. Lenders consider the amount they will have to pay for their financial duties when calculating the debt/income ratio. Credit Rating A credit agency, such as CIBIL, provides a three-digit credit score. This scale runs from 300 to 900. It increases your credibility in the eyes of the lender. When evaluating your credit score, your initial debt payments, bills, and card payments, among many other things, are considered. If you’ve been paying all of your bills on time and have a good credit score, your chances of getting a new loan will increase. A score of at least 700 is preferred. Age The individual’s age is also very important. Borrowers must be between the ages of 22 and 58, based on the lender, for loans to be approved. Applying for a loan at or near retirement age can be difficult. This is because older people do not have a stable source of income. Personal Loan Amounts Available in India Bank NameLoan Sum (Rs.)Rate (per annum)Central Bank of IndiaUp to 20 lakhs8.45% Union Bank of IndiaUp to 15 lakhs8.90% UCO BankUp to 10 lakhs8.45%State Bank of IndiaUp to 20 lakhs9.60%IDBI Bank25,000 to 5 lakhs9.50%CitibankUp to 30 lakhs9.99%HSBCUp to 30 lakhs9.75%Federal BankUp to 25 lakhs10.49%Kotak Mahindra BankUp to 30 lakhs10.50% IndusInd Bank50,000 to 15 lakhs11.00%ICICI Bank50,000 to 25 lakhs10.50% Axis BankUp to 15 lakhs11.00%HDFC BankUp to 25 lakhs12.50%Standard Chartered Bank1 lakh to 50 lakhs11.00% [B-02] Conclusion Lenders will approve your application for a personal loan after considering your income, expenses, and credit score. The maximum bank loan amount you are eligible for is determined using either the multiplier method or the fixed duty/income ratio. A personal loan typically requires a minimum of Rs. 20,000 in net monthly income. However, if you are still confused, you can visit Piramal Finance and check out their blogs to understand personal loans better. You may also take a look at their products and services.

08-11-2023

Income tax return

How to Claim HRA While Filing Your Income Tax Return (ITR)?

You’ve been hearing a lot about HRA exemptions from coworkers, the HR director, and friends. It seems to be a profitable tactic to save taxes, yet you may be wondering: Can I claim HRA exemption? If so, what are the main needs that must be met to get this perk? How much HRA tax relief can I claim? Let’s find the answers to these pressing questions in the next sections. [B-01] What is HRA? HRA stands for House Rent Allowance. It is the sum the firm gives to staff to assist them in paying the costs of living in rental housing. HRA is paid as a sub-component of salary by most employers in the private and public sectors. The most exciting part is that salaried people who live in leased houses may claim HRA tax exemption under Section 10 (13A) of the Income-Tax Act. To claim exemptions such as HRA, LTA, and income tax deductions as per Chapter VI-A, you must submit Form 12BB to your employer. It should be noted that under Section 80GG of the Income Tax Act, self-employed people may also claim tax exemption for rent paid. How is HRA Tax Exemption Calculated? The deduction available is the least of the following amounts: Actual HRA received. 50% of [base pay + DA] for people who live in cities. 40% of [base pay + DA] for residents of non-metros. The actual rent must be less than 10% of the base pay and DA combined. Eligibility Criteria to Claim HRA If the following criteria are met, you may claim HRA exemption for the time you stayed in rental homes: You must be a salaried employee HRA-related tax perks are mainly given to salaried persons. This exemption is not open to self-employed persons. HRA is included in your CTC or payment package Your CTC or pay package is made up of many items, such as base salary, allowances, extra perks, and so on. To take advantage of this exemption, you must make sure that HRA is included in your CTC. Live in rental homes This exemption is only available if you live in a rented home. You must be paying rent. There is no tax perk if you live in a self-owned home. You’re surely curious if you can claim this deduction if you live in your parent’s home and pay rent to them. Yes! You may claim the exemption by paying rent to your parents. Your parents, on the other hand, must report rent income received from you on the income tax return. It is also suggested that you pay rent by bank transfer and sign the rental agreement. Submit a rent slip to your employer to inform them of your rent payment You must notify your employer of the rent you have paid and submit your rent slip. The landlord’s PAN must be given if the yearly rent is more than Rs. 1,000,000. Claim at the time of return Employers often do not provide HRA exemption on Form 16 owing to a lack of valid data. But if your HRA claim was not assessed in Form 16, you might claim the exemption directly in your IT return. How Do You Claim HRA Exemption While Filing Income Tax Returns? Section 80C of the Income Tax Act of 1961 exempts premiums from taxation. Also, any reward received under the savings policy is tax-free under Section 10 (10D). In most cases, your boss will require that you submit your home rent slip in the last quarter of the fiscal year to claim HRA exemption on Form 16 prepared by the employer. If you do not provide your rent slip to your employer, the firm will take TDS (Tax Deducted at Source) without considering the HRA on your wage slip. Even in this situation, you may claim HRA deduction on your ITR. You must manually compute the exempt HRA total. If you provide a rent slip to the employer: If you submit your house rent slip to your employer and other supporting papers, they will review the case and lower the tax withholding accordingly. Form 16 and your tax return will both disclose your exemption. Claiming HRA via your workplace is simple. However, if your yearly home rent exceeds Rs. 1 lakh, you must provide your landlord’s PAN card data to your boss to qualify for the HRA exemption. Also, because your Form 16 and ITR-1 forms are synced, filing for HRA tax exemption has become even easier since the amount is instantly pre-filled in the ITR forms when you submit your claim online. If the employer does not get the rent slip: If you did not submit your receipts to the employer, you might claim an HRA exemption in your ITR. In this situation, the firm would not have included the HRA exemption in the taxed wage, resulting in a greater TDS deduction. The excess TDS deduction will be repaid when you claim the HRA deduction on your ITR. Yet, you must compute the correct HRA exemption amounts and subtract the equivalent amount from your pay. Factors to Consider Before Making HRA Deductions Here are a few points to know regarding HRA tax exemptions: If you pay rent to your spouse, you cannot claim HRA tax exemptions. HRA exemption from income tax can be taken even when you have a house loan. If your landlord is an NRI, a TDS (Tax Deducted at Source) of 30% must be deducted from the rent before it is paid. [B-02] Conclusion A salaried employee should take advantage of the chance to claim an HRA tax exemption since it is one of the finest legal methods to save tax. Make a point to keep all solid pieces of evidence. To be on the safe side, send money via a bank account since it is hard to prove rent is paid in cash. The value of the exemption is assessed by section 10 (13A) of the Income Tax Act. If finding the sum of exemptions seems hard, you can visit Piramal Finance for more such blogs and explore their products and services.

08-11-2023

Personal Loan

Benefits of Using a Personal Loan During An Emergency

No one wants to be caught in an emergency guard. However, the essence of life needs you to wade through these hard moments, nevertheless. For example, with rising healthcare outlays and medical bills, owning an insurance plan alone is not the ultimate peace of mind. You may need cash in emergency medical situations. Similarly, savings can hardly get you through if you want to set up your small business or fund your child’s education in the UK, or the US. You would need cash at every step of these games. This is where financial tools such as personal loans come in handy. Such loans offer you access to critical funds with no expense limits, enabling you to fulfil your objectives that were until now thwarted by financial shortages. Most importantly, a personal loan in an emergency may be useful in saving the life of a loved one or yourself, as well as freeing you from the guilt that you will have to suffer if anything bad occurs. Continue reading as we delve deeper into the benefits of using a personal loan during an emergency. [B-01] Advantages of a Personal Loan in an Emergency A personal loan might be a superb solution when you need fast access to finances in an emergency. Here are some advantages of a personal loan in an emergency: 1. Fast access to key funds Given the rising demand for low-cost personal loans in recent years, it’s only logical that the variety of personal loan sources has increased as well. You’re in a better position than ever to make an informed choice about who your lender will be now that there aren’t any shortages of lenders. The best part is, the loan request procedure takes at most 24 hours (personal loan apps are way quicker). Once your loan request is granted and the sum approved, the cash will be sent directly into your bank account within an hour or two. 2. Easy to pay in EMIs Another benefit of obtaining a personal loan is that the full repayment load is spread out over 1 to 5 years, depending on your bank. This is preferable to having to return the whole loan amount all at once. On the contrary, you may have to return the loan sum at once, if you borrow from friends or relatives. If you can pay for the entire amount before the deadline, asking for extra time will be of no use. Cheap personal loans relieve you of such burdens while providing you with just what you want—timely finances. 3. No collateral is needed In contrast to a vehicle or a house loan, you do not need to offer collateral when asking for a personal loan. This is a major comfort for some of you who may demand a large sum to fund a large purchase but are concerned about not owning any assets (such as land or gold) that may be used as collateral against the loan. This concern about not having any assets is usually caused by the fear that you will be asked to give some kind of collateral. This isn’t the case with low-interest personal loans for emergencies. 4. Less paperwork The paperwork for taking a personal loan in an emergency is less. This expedites the loan sanction process. They may even send someone to your place to assist with the papers if the bank provisions. 5. Reasonable interest rates Personal loans feature low-interest rates making them accessible to all. This means that your EMI stays constant throughout the length of your loan. For this reason, there is no need to be worried about the volatile interest rates that define other types of loans. Steps to Get an Emergency Personal Loan While crises are difficult to deal with, getting a personal loan in an emergency does not have to be. To apply for a personal loan in an emergency, follow these four steps: Compare lenders and shop around To discover the best personal loan for your condition, compare as many banks as possible. Check not just interest rates but also repayment periods, lender fees, and qualifying standards. Choose a loan of your choice Pick the loan that best meets your needs after comparing lenders. Complete the form Once you’ve decided on a lender, you’ll need to fill out a complete form and provide any evidence needed, such as tax filings or pay stubs. Obtain your cash If you are accepted, the lender will also have you agree to the credit so that the cash may be given to you, normally by direct transfer. A personal loan normally takes around one week to finance, while some banks may fund loans as fast as the same day or the next working day following approval. Picking the Best Lender for a Personal Loan in an Emergency Here are a few things to think about as you assess your loan options: Criteria for eligibility While the criteria vary per lender, most require a strong credit score, verified income, and a low debt-to-income ratio. If you don’t meet these standards on your own, you may be able to get approval from a bank that gives poor credit loans or with the aid of a cosigner. Rates of interest Your rate of interest will play a key role in determining the total cost of your loan. The interest rate you are given is based on various factors, like your credit score and the repayment period you pick. In general, the higher your credit score, the better your loan interest rate will be. Terms of repayment Based on the lender, personal loan payback terms often vary from 1 to 7 years. While a longer term may result in a cheaper monthly payment, it is typically prudent to select the shortest period you can afford to keep your interest payments as low as possible. Also, many lenders give you higher rates if you choose shorter terms. Funding time If approved, you should get your loan in cash within one week. However, some lenders provide next- or same-day loans to eligible clients. Online lenders, on average, give quicker funding than credit unions or banks, which may be extremely useful when you want to pay for an unexpected need. Online service availability Online lenders often provide a speedier, more simplified approval and financing procedure than conventional lenders, making them a smart option for an emergency personal loan. [B-02] Key Takeaway Personal loans are now the top option for you if you need to meet an unexpected financial demand due to their many perks. The fact that the loan is unprotected, repayable in EMIs, and readily available adds simplicity to the lending procedure. The range of personal loan firms has also grown in recent years. If you want to know more about the benefits of personal loans in an emergency, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Other

How to Grow Your Manufacturing Business?

To be successful as an entrepreneur, you need to grow your business. But both big and small manufacturing companies need to find ways to grow sustainably and deal with market changes. If you start your manufacturing business with the right skills and tools, you will be better prepared to deal with unexpected changes and problems. Growth is necessary for a business, but only if you can keep up with it. If your company cannot control how quickly or how much it grows, your team could be held back by poor communication, lack of skillset, and mistakes that cost a lot of money. This article discusses some of the tips you should remember when you want to grow your manufacturing business. [B-01] Why is growing a manufacturing business necessary? Manufacturing drives the national and international markets. Business owners know that manufacturing processes play a crucial role in the end-user experience since they serve as the foundation for new goods and ideas. Because of this, production is dynamic and developing to satisfy the demanding requirements of customers and consumers. Recently, the industrial sector has seen significant upheaval. The upheaval is to meet the growing quality demands of customers. It is challenging to expand your manufacturing company to compete with these rivals. But with the correct attitude, you can grow your company and attract new customers who will remain with you. The owner’s mindset is often visible to the industry. Owners take on many roles and try to do too much by themselves. Although they often lack a business education, they are experts in their field. Building the trust necessary to delegate is a deliberate endeavour that may be learned. Regardless of the state of the market, expansion requires being prepared to take on the available employment. If you want to increase sales and grow your business, you must create more prospects for quotations. Let us look at some strategies for expanding your manufacturing firm. Six ways to grow your manufacturing business 1. You have to choose the right people. Your team is your ticket to growth. When you share ideas with others, your staff helps your business grow. As a result, picking the right people to work with is necessary. One way to grow your manufacturing business is to conduct the hiring process only after you know what you need. Identify the gaps in your manufacturing business before starting interviews. 2. You have to stand out on social media. If you want your manufacturing business to do well, you need to be different. This does not always refer to the products but also social media. Use social media to create a digital presence for your business. A reliable website is necessary for a manufacturing business. It helps you stay in touch with your clients better and builds brand identity. You can grow your brand and reach a bigger audience with an improved digital presence. 3. You need to be updated digitally. Your business may have hit a wall if you are not using the right software. As a small business owner, you should invest in software that helps with product management, payroll, or other processes. Using software for small businesses, you can speed up tasks that take a lot of time, like building workflows and sending emails. This could give you more time to work on other things. When you use the right tools, your brand will grow, and it will be easier to run your business. 4. You need to spend money on your employees. One of the problems organisations face today is finding and keeping skilled and talented people. In other words, highly skilled people are in high demand. The main goal of your business should be to keep your best employees on board. This can be done by giving them good pay, flexible hours, more money, or other benefits. Also, you can consider offering education benefits to employees as well. Even though these perks cost money, it’s important to remember that it could cost less to hire a new employee with the same level of education and experience. Therefore, if you wish to retain your best employees, you should offer incentives that will make them want to stay. 5. You should listen to your clients. Customers are the key to any manufacturing business. Therefore, pleasing customers and keeping up with their demands are necessary. Altering customer behaviour is a challenge for manufacturers or any company. You must conduct regular surveys and polls to understand client demands. In such situations, social media can help. Having a strong social presence will give you an idea of what customers want. 6. You need to create a supply chain. When there are problems in the supply chain, sellers might be more likely to work with manufacturers they like, those who pay their bills on time, and those who invest in systems, technology, and the future. Recently, manufacturing companies have had to deal with several supply chain problems and challenges, such as a stop in business, rising freight costs, and a huge increase in demand. It’s more important than ever to have a strong supply chain that can handle problems you didn’t expect. [B-02] Conclusion Manufacturing companies are the core of any economy. if you plan to start your manufacturing company, you should understand that your employees, their skillset and your customers are your primary concern. By following the six tips given above, you can grow your manufacturing business. If this article interested you, check out Piramal Finance. Primal Finance has comprehensive articles on manufacturing businesses.

08-11-2023

Tax Savings

How to Get Tax Benefits on Loan Against Property

Applying for a loan requires patience. You must have all the documents. You must fulfil eligibility conditions to get the loan. Mortgaging to get a loan is quite a traditional way. It can be a house, commercial property, gold, or even a vehicle. A loan against property is one of the finest ways to get a loan quickly. You can mortgage with any financial institution and get funds promptly. The loan against property interest rate is comparatively low. There are various tax benefits linked to it. In this article, we discuss the basics of loans against property and the tax benefits you can get. [B-01] What is a loan against property? A loan against property is a secured loan. It is available against the mortgage. This mortgage can be your residential or commercial property or even a plot. The ownership of the property needs to be clear. The amount of the loan is based on the property value. It is usually 70-75% of the property value. This secured loan is available for both salaried and self-employed. Also, you can use this loan for the following: Meet the medical emergencies. Fund for education. Business expansion. Personal expenses. Eligibility criteria for loan against property The following are the eligibility criteria: Your age should be between 21 to 70 years. You should be a resident Indian. You should be salaried or self-employed. There should be a property in your name. Documents for loan against property The main documents required for the loan against property are: Identity Proof like Passport, Driving license, Aadhar card, Voter ID, and Job card issued by NREGA Address Proof like Passport, Driving license, Aadhar card, Voter ID, Registered Leave and Lease Agreement Utility bills like Telephone Bill /Electricity Bill. (Maximum 3 months old) Latest passport-size photograph Property documents to be mortgaged Documents to be added by salaried: Last 3 months’ salary slips 2 years Form 16. 6 months bank statement with salary credit Bank statements for the last 6 months 6 months’ salary slips Documents to be added by self-employed: Last 2 years ITR with computation. CA audited financials like profit and loss statements, balance sheets, or both. 6 months primary bank statement In case you have a co-applicant: Some cases might require a mandatory co-applicant. The documents needed are: Co-applicant can be a first-blood relative like a parent or child or spouse. All the names of co-applicants should be on the loan application. If the co-applicant is a child or sibling, he should have attained the age of maturity as per the income-ownership grid. Benefits of loan against property The main benefits of a loan against property are as follows: The loan against property interest rate is lower. Loan against property offers quick sanction and disbursal. It is secured, and you can get a higher amount based on your property value. LAP is one with a simpler and straightforward process. You need to submit the basic documents only. The loan repayment tenure is long. It can be around 15-20 years. You will have the property ownership. The title is not transferred to the lender but it restricts you from selling the property in due course. The option for pre-closure is available. A loan against property allows you optimum utilisation of your property. You can use the fund for multiple uses. Tax benefits of loan against property You are allowed tax benefits if the amount is used to purchase property, repair, or renovate. There are two sections under which you can avail of the tax benefit for a loan against property. Tax benefit under Section 24(B) You will get this benefit if you are salaried. You would be eligible for a deduction of up to INR 2 lakh. This is applicable if you use the loan amount for new residential construction. The deduction is allowed for the interest that you pay on EMI. The deduction is allowed for both paid and payable interest. If the total interest value crosses INR 2 lakh, you can carry forward the same for up to 8 years. Tax Benefit under Section 37(1) You should understand that this section is lined with expenses. This benefit can be used if you have used the loan amount for business needs. The interest paid, processing fees, and documentation fees are allowed for dedication as a business expense. Conditions for no tax benefit Section 80C is used for home loans. But the same section is not applicable for the loan against property. You can claim a deduction for interest payment under section 24 (B). But you cannot have any exemption under this section. Also, the tax benefit is not applicable if you use the fund for any other expenses. Tax benefits on top-up loans If you take an additional amount on your existing loan, it is called a top-up loan. You can enjoy the tax benefit on a top-up loan if you use it for purposes linked to house purchase, renovation, or repair. The maximum deduction available for this is INR 30,000. You can claim the deduction only when the property is self-occupied. Also, there is no limit for deduction if the property is rented out during repairs and renovations. The tax advantages of loans secured by property depend mostly on the principal repayment regarding the use of the funds, even in the case of top-up loans. You can claim the tax deduction under sections 80C and 24(b), respectively if the funds were used to build or buy a new property and not if you use the money for home improvements, renovations, or changes. [B-02] Conclusion Loan against property is one of the safest methods of acquiring funds. It is quick and needs low documentation. Also, you can use the funds for various purposes. The tax benefits associated with the loan against property are great. You can avail of them and get a deduction from your overall tax payments. Though some limitations are linked to a tax deduction, the option is still great. Also, you can visit Piramal Finance to gain all the required information on the loan against property interest rates. You can connect with the experts here and reach an informed decision. Apply for a loan against property in no time.

08-11-2023

Business Loan

How to Make a Great Business Plan for Procuring a Business Loan

A plan for getting an online business loan is like a map showing your business’s goals and how you plan to reach them. Before applying for a business loan from most lenders, you must show them a formal business plan. It is a good sign of how likely you are to be able to pay back the loan and how well your business will do financially. A strong business loan plan is an important part of any successful business, whether you’re trying to get money or are making a plan for strategic growth. Here are three important things to keep in mind when thinking about the interest rate on a business loan: [B-01] Keep it brief: The terms of business loans have to be clear and to the point. Investors look at many business plans daily, so it’s best to be clear and to the point. Know who your business plan is for and write it in terms they can understand. Don’t use confusing words, ensure investors are taken care of, and keep product descriptions simple. Don’t be scared: Most business owners don’t have degrees in business and aren’t experts in their field. Instead, they are always learning new things. Making a business plan might not be as hard as you think if you know everything, there is to know about your business and are excited about it. Steps to Creating a Business Plan that Lenders Will Like The statement of the idea Step 1: Figure out what makes your company stand out. It includes a value proposition, a target market, a product, a mission, and a brand. Step 2: Research the market and the business The next step is to study the market to learn more about your target market, suppliers, experts in the field, competitors, and the industry you work in. Step 3: Outline your business plan: After getting all the important information, the next step is to outline. You can follow the example set by the Indian government. Step 4: Figure out what your business loan needs to cover. Executive Summary To summarize your business, you should list your business type, a brief description of the management, financial needs, and how you plan to spend your money. Marketing Strategy Talk about your product or service, your target market, your analysis of the competition, and the marketing strategies you’ll use to reach your sales goals. Plan for making something Explain how the product is made and how much time and money each step takes. Financial strategy This part is very important for the investor because it gives a detailed financial report on how your business is doing. Don’t forget to add the following: Cash flow statement Breakeven evaluation Get your money back (ROI) Sales and profit forecasts for the next three years Loan objective How long will the loan last STEP 5: Helpful information to: Give potential investors as much solid information as possible to improve your chances of getting financing for your business. You can add more information to the appendix by putting in documents like: Copies of contracts and leases are examples of financial records. What market research shows Books about money Permits Licenses The invoices STEP 6: Reevaluate: Check your company’s strategy to ensure you haven’t omitted any important details. To make sure the investor doesn’t get distracted by the mistakes and can focus on your business loan plan, try to make as few mistakes and spelling mistakes as possible. What makes a business plan successful? A good business loan plan explains your business and how and why it makes money. A few basic things will help lenders understand your business and make you eligible for financing. At the same time, a business loan plan should have different parts for each company. Executive summary An executive summary is a summary of your business loan plan. It is usually only one page long. The goals of this section are to tell the reader about the company, summarise what they’ve learned in the other sections, and get them interested. However, how you use this part may depend on how old your business is. Reputable companies Executive summaries for businesses that have been around for a long time usually focus on past successes and future growth plans. In this case, the section might start with a statement of the company’s mission and then discuss how it works now and its finances. Startups Most people who get a startup business loan use the executive summary to talk about the business’s potential, target market, and how it plans to grow. The section could also talk about the competition in the market. Startup companies should use the executive summary to make a lender more confident in the business. What should be in a business plan for lenders? Lenders usually look at five things when deciding whether or not to lend money to a business: its character, its ability, its capital, its circumstances, and its collateral. Knowing these important things, you can make a business plan that speaks to a lender’s interests and preferences. Capacity Lenders may look at more than just your credit history, household income, and financial goals for your business. They may also look at your skills. If it makes sense, lenders will look at your management team to see if they have the skills to grow your business or keep it going in the right direction. Capital As part of the loan application process, lenders would look at your business plan to determine how much money you need to borrow and how you plan to pay it back. Also, they look at your income statement to see how much cash you have and how much debt you have. In the same way, lenders often prefer business owners who have put more money into their businesses. A personal financial contribution shows that you care about the business and can pay back a big debt. Conditions Ultimately, a lender’s biggest concern is whether or not your business will do well. So, they look at your business plan and the market’s state to determine how likely your business will succeed. A strong business plan can convince a lender to give you money because the market or the way you want to run your business gives you a better chance of success. Collateral Lenders sometimes want proof that you own something valuable that they can use as collateral for the loan. This can be real estate, equipment, stock, or even money owed to the company. Even if you don’t have any collateral, lenders might still give you a loan if you have a good business idea and credit history. [B-02] Conclusion A business plan explains how a company plans to do business and, in some cases, how the owner plans to use money, investments, and loans. It shows that a company is making money now and plans to keep making it in the future. A good business plan is well-written, realistic, clear, and, most importantly, convinces lenders that giving your company a loan is a good idea. Now that you have all the information, you can go to Piramal Finance for more information.

08-11-2023

Personal Loan

How to get Personal Loans over Mobile Apps

People can have unexpected financial requirements. Personal loans are the fastest way to get the money you need. The process of getting a personal loan from a bank takes time. And getting money from a lender with higher interest rates is risky. Personal loan apps are a good way to get a quick personal loan because they are risk-free and don’t require much paperwork. With personal loan applications and easy loan approvals, you may be able to get the loan at a fair interest rate. Read on to learn more about how mobile applications can help you get a personal loan. [B-01] Procedure to Apply for a Personal Loan Applicants must get the loan app from the App Store, which is available for iOS and Android. After installing the app, users must fill out some basic registration information. To apply for a personal loan, you need to be able to use the internet without any problems. Follow these steps to get an instant approval for a personal loan: Step 1: Sign up for the app that lets you get a personal loan. Step 2: Give your personal information and details about your finances. Step 3: Figure out if you are eligible for a personal loan. Step 4: Submit your “Know Your Customer” documents and bank statements. The personal loan application app will review the request once the process is done. On the app, you can see if the loan has been approved. After you get approved, the online lender puts the money in your savings account. EMIs are how the borrower will pay back the loan and any interest. The total amount borrowed, the number of years and the interest rate are used to determine how much the monthly payment will be. It’s easy to apply for a personal loan through any app. Each app has rules, interest rates, terms, and conditions. In general, most financial institutions charge 10.50% to 24% p.a as the interest rates. Documents Required for the Personal loan Application Adhaar card PAN card Photographs Statement of the bank account How is a Personal Loan Used? There is no restriction on the use of money obtained from a personal loan. You can use the personal loan for many things, such as: Weddings Taking care of the credit card charge Consolidating loan Educational purposes Medical emergencies Holiday vacation Home repairs Furniture purchase Criteria for Getting Personal l]Loans In India, there are many places where you can get a personal loan. They are public and private banks, non-banking financial institutions, and online loan apps. People can get quick personal loans if they meet the requirements. Loan approval depends on the bank and whether the applicant has a regular job or works for himself. For Salaried Individuals: Applicants must be over 21 years old. The borrower must be 60 years old when the loan is paid off. The minimum income per month must be between Rs. 15,000-20,000 For self-employed or Business People: Applicants must be at least 25 years old to borrow money. The borrower should be 65 years old when the loan comes due. A minimum income of Rs. 1 lakh per year You can also use the calculator tools on mobile apps and other financial websites to check if you meet the requirements. Factors to consider when applying for a personal loan Personal loans can be sanctioned right away and with little paperwork. A few things affect how smoothly the process of getting a personal loan goes. Credit score or CIBL score Your credit score shows your credit history, also called your CIBIL score. It is a big part of whether or not you can get a personal loan. 720 to 750 is the minimum score of credit for a personal loan. The ratio of debt to income Before giving out a personal loan, lenders look at a person’s debt-to-income ratio. They also look at how much you make each month. This check is to see if they can pay the EMI on the loan. Workplace position The lender will look at your work history when you apply for a personal loan. Before approving a loan, some loan apps check to see where you work and how long you have worked there. Personal Loans Through Mobile Apps have Several Advantages Personal loans are available through mobile apps made by banks and online lenders. These loan apps are being made to keep up with technological changes and give people quick access to cash. Personal loan mobile applications have several advantages, such as: Time and effort are saved: Borrowers don’t have to take the time to go to a physical branch at a set time for a personal loan. In the traditional way of getting a personal loan, applicants must sign many papers. Borrowers who get personal loans through mobile apps save time and trouble. Every transaction is recorded: The loan summary is saved in the application for a mobile personal loan. It tells the borrower how their finances are doing right now. So, it can be helpful to have access to other banking services. Access to money would be easier: When an application for a personal loan is approved, the loan amount is put into the account. Borrowers can benefit from getting money right away, especially in an emergency. [B-02] Conclusion Mobile loan applications are cutting-edge digital solutions. Borrowers who are having trouble meeting their financial obligations may benefit from them. With these personal loan applications, the way banks do business could be made easier. The customer’s experience is also improved. Before applying for a personal loan, it’s a good idea to find out what you need to do to qualify. You may find that you have more than one choice for a reliable loan app. A simple internet search and review of different personal loan applications can help. For more information on how to apply for a personal loan, check Piramal Finance.

08-11-2023

Business Loan

How to Grow Your Business With an Unsecured Business Loan in India

Which is the most crucial component of every company, large or small? Your business has money, also known as finance, and this capital enables it to expand and endure. However, there are occasions when you need to take out loans to build your firm, so small business loans might make all the difference. A firm’s growth is based on the constant flow of funds. You may need these funds to fulfil an order, acquire gear, grow the business, pay the staff, and so on. A major firm may be able to get this money. But, it is tough for a small firm to obtain capital without collateral. In such a situation, you take a business loan from a bank or another financial entity. Many lenders in India provide cheap interest rates on business and other loans. [B-01] What is an unsecured business loan? An unsecured business loan is granted based on your credit history and does not need collateral. These loans are used to develop or sustain a firm’s functions or to maintain cash flow. You may use it to bring extra money to a firm. It helps it achieve its goals. Interest rates vary from lender to lender. They might exceed 14.99%. Although the standard concept of an unsecured loan does not need security, the reality is a bit different. Rather than seeking particular collateral, the banks impose a general law on vital assets until the debt is repaid. This enables those with strong credit or solid firms to get loans without giving large assets to small firms’ loans. How to grow your business with an unsecured business loan Purchasing equipment Every single business needs goods to succeed. If your inventory is enough, your firm will function. Small firm loans are effective for securing such goods. Does your firm use machines in its production? Then, to enhance your output, you can be needed to improve your supply chain. This may include investing in new machinery, upgrading older ones, or repairing and replacing worn-out parts. You can satisfy all your needs with the help of business finance. Unsecured loans provide an instant financial injection that you might use to expand your production. Increase marketing Have you finished making your product? Now is the time to promote your business and spread the word. Marketing costs resources, regardless of whether you hire a marketing firm or run web adverts. Should you, instead, let your cash flow suffer? No. Instead of investing your current cash in your marketing efforts, submit a request for business funding. You can get an unsecured loan. Most lenders specify particular criteria for clients for business loans. Creating your marketing plan In today’s world, it is crucial to comprehend the market and use the right methods to attract clients. If you don’t know how to market your website, even if it’s great, your firm could be better off without one. Marketing requires analysts to do market research, analyse the data, and then use what they have learned to target the right audience, both online and offline. Since analysts are in demand, particularly those that study and analyse the sector, this costs money. Your company’s plan may be created with a small business loan. Enlarge your group A successful organisation needs a group of strong leaders. Recruiting demands both time and money. Workers are the best resources in any firm. So hiring great people is a way to ensure your business works well. You need to recruit the right staff and apply for a business loan to receive the money. This will pay for various recruiting and training expenses. These could be advertising job roles, locating candidates, conducting interviews, and onboarding them. Benefits of an unsecured business loan Different banks have different business loan eligibility criteria and benefits for their best-unsecured business loan offers. Here are some traits that these loans have in common: Unsecured business loans are those that do not need collateral or security. These loans are made based on the applicant’s reputation and payback history. The lender may also take into account other relevant aspects. Most banks ask that the said firm be profitable for at least two years. The loan sum might range between Rs. 10,000 and Rs. 1 crore. This is based on the size and needs of the firm. The loan term varies, ranging from 1 to 5 years or more. Unsecured business loan eligibility criteria Given below are the unsecured business loan eligibility criteria: Minimum age of 18 at the time of loan request and maximum age of 65 at the time of loan completion. A credit score of 750 or above is needed. Presence of a business for a minimum of one year in the same place with proof of profit. You must have a steady source of income and wage slips. Bank information or the most recent six months’ bank statement. Documents needed for unsecured business loan eligibility The papers needed for unsecured business loan eligibility are as follows: You will need to give a recent passport-sized photo of yourself, proof of your identity, address, signature, income, bank statements, and proof that your business will keep running. Customer letter for the end use or proposed end use of BIL funds OD sanction letter, where DP/OD limit is not listed in the bank statements. Certificate of professional qualification for experts Partnership deed, or MOA/AOA for partnership firms, and a certificate of incorporation, or Form 3CB and 3CD or Form 3CC and 3CE for companies, as applicable. [B-02] Conclusion Business loans that are not secured lack safety. A company or person will need this financing to start or expand a business. Unsecured business loans are an efficient way to get quick money for your needs as a firm. You could succeed in your goals and contribute to your company’s growth. For more blogs on how to grow your business with an unsecured business, check out Piramal Finance and explore their products and services.

08-11-2023

Tax Savings

How to Get Tax Benefits Using ELSS?

Investors look for ways to put their money to work that will help them make money, get regular returns, or save money on taxes. There are many ways to invest money on the market, but most of them give yields that are levied in accordance with the Income Tax rules. ELSS funds come into play here. Equity-Linked Savings Scheme Funds, or ELSS Funds, are equity mutual funds that help you pay less tax. Investing in ELSS funds is a good way to save on taxes when compared to the other investment options available. ELSS has a relatively short lock-in period and skilled fund management, both of which can help you build up your wealth. Here, you will find everything you need to know about ELSS Tax Saving investment. [B-01] What Is an ELSS Fund? ELSS funds are known as equity funds that put most of their money into stocks or instruments that are similar to stocks. Tax saving mutual funds is another name for ELSS funds because Section 80C of the Income Tax Act lets you keep up to Rs. 150,000 of your annual taxable income tax-free if you invest in this scheme. As the names indicate, an ELSS fund is a plan that invests in equity and has to be held for a minimum of three years. In the past few years, many people who pay taxes have started to invest in ELSS plans to get tax breaks. If you put money in ELSS plans, you can have a tax rebate on the amount you put in for Rs 150,000. Also, the money you make from this ELSS investment at the end of the three-year period will be considered a long-term capital gain (LTCG) and taxed at 10% (if your income is above Rs. 1 lakh). How Are ELSS Funds Operated? Diverse equity funds include ELSS Funds. These funds invest the majority of their capital in publicly traded company stocks, in a ratio that varies depending on the investment objective of the fund. The stocks are spread across a wide range of industries and market capitalization sizes. The greatest amount of capital growth is these funds’ long-term objective. After extensive market research, the fund manager selects stocks to maximise the portfolio’s risk-adjusted returns. Features of ELSS Mutual Funds Some of the most important features of ELSS funds are: At least 80% of the total amount that can be invested in ELSS is put into stock and stock-related instruments. The fund invests in stocks in a variety of ways, including across various market valuations, themes, and sectors. There is no limit on how long an ELSS investment can last. But there is a three-year lock-in period. Section 80C of the Tax Act gives tax relief on the amount invested in ELSS. The income is taken as long-term capital gains and taxed as per the current tax rules. What Kinds of Tax Benefits Do ELSS Funds Offer? ELSS mutual funds offer the following tax benefits: ELSS mutual funds have a three-year lock-in period and can get a tax break of up to 1.5 lakhs. This plan could save you up to 46,800 per year in taxes. Since ELSS funds mostly put money in equity schemes, long-term capital gains (LTCG) taxes are only 10% on gains over 1 lakh. Long-term returns on investments in ELSS mutual funds that are less than 1 lakh are not taxed. How Can You Profit by Investing in ELSS? Maximum returns in the shortest amount of time The redemption of ELSS fund units is only permitted after a three-year lock-in period. You can, however, hold the investment for longer than three years. To maximise returns, you can keep your funds invested for as long as possible. Better after-tax returns You can benefit from tax breaks, which increase fund returns. ELSS fund returns are classified as Long Term Capital Gains. Such gains from ELSS are not taxable up to Rs. 1 lakh. If increased, you must pay a 10% tax on the excess. Returns from the stock market that beat inflation ELSS, which is an indirect investment in the stock market, has the potential to earn higher returns than other 80C investments like PPF, FDs, and other fixed-income investments. Long-term investors can get the most out of ELSS funds because they may be able to climb out of the market’s short-term volatility. Things to Consider Before Putting Your Money into ELSS Funds Fund returns: Before you buy a fund, compare its performance to that of its competitors and a benchmark to see if it has been consistent in the past. If a fund does better than its benchmark or other funds, it can offer high returns. History of the fund house: It is best to pick fund houses which have done well for a long time, like five to ten years. Expense ratio: The expense ratio shows how much of your money goes toward managing the fund. If finance has a lower expected cost, you can get higher returns, so it’s always best to choose those. Financial parameters: When analysing the performance of a fund, you can also look at things like Standard Deviation, Alpha, and Beta. A fund with a larger standard deviation and a higher beta is riskier than one with a smaller standard deviation and a lower beta. Choose funds that have a higher Sharpe ratio. Fund manager: Another thing to think about is the fund manager since he or she is one of the most important people in managing your funds. The person in charge of the fund must be smart and have a lot of experience selecting the best stocks and putting together a strong portfolio. [B-02] Conclusion Investing in ELSS mutual funds is like “killing two things with one stone.” It’s a great way to save money on taxes, and it’s also a great way to invest and build wealth over time. It’s different from other ways to save on taxes because you have to keep it for at least three years. ELSS also lets you choose from different types of investments, such as large-cap, mid-cap, and small-cap, as well as others. So, it is currently one of the greatest ways to invest in India. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023