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Personal Loan

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

Many of us have heard the terms “home loan top-up” and “personal loan,” but what do they mean exactly? This blog post will explore the ins and outs of home loan top-ups and personal loans to help you decide which one is the most suitable for your financial needs. From understanding how these products work to detailing the advantages and disadvantages of each option, this blog post will give you an in-depth look at these two lending solutions. [B-01] Advantages of Home Loan Top-Up There is no denying that home loans are one of the most popular forms of financing used by homeowners in India. This is because home loans provide the means to purchase a home and the opportunity to upgrade or improve it. If you plan to take a home loan, you should consider taking a home loan top-up. Home loan top-ups have many advantages, making them an attractive option for borrowers. Here are some of the key benefits of taking a home loan top-up: Low-Interest Rates: The interest rate can be pretty high when you take out a personal loan. However, when you take out a home loan top-up, you get access to lower interest rates since it is essentially just another instalment on your existing loan. This will help keep your overall debt burden low and make repayment easier. Tax Benefits: Borrowers who opt for home loan top-ups also receive tax benefits. Depending on where you live and the amount borrowed, some homeowners may be eligible for deductions from their taxable income when they pay back their loans through instalments. This makes it possible for homeowners to save money when they borrow money for their house remodelling projects or other expenses related to their homes. No Need for Collateral: One of the most significant advantages of taking a home loan top-up is that there is no need to pledge collateral against the amount borrowed as security against default in payments. This makes it easier and more convenient for homeowners who do not want to risk losing their assets if they fail to make timely payments on their loans. If you are looking for ways to finance your next project or upgrade your existing property, taking out a home loan top-up could be an excellent option for you due to its various benefits mentioned above. However, be sure to compare lenders before making any decisions so that you can find one that offers competitive rates and excellent customer service. Disadvantages of Personal Loans: Personal loans can be a great way to access funds for large purchases or consolidate other debts. However, you should be aware of some potential drawbacks to taking out a personal loan before deciding to apply for a personal loan. High-Interest Rates The first disadvantage of taking out a personal loan is the potential for high-interest rates. The interest rate on personal loans generally depends on your credit score, income, and other factors, such as your current debt load. Because lenders take more risk when lending money to individuals without collateral, they may charge higher interest rates than secured loans like mortgages or auto loans. Higher interest rates mean higher monthly payments and more long-term costs added to the amount borrowed. Risk of Collateral Repossession The second disadvantage of taking out a personal loan is the risk of collateral repossession. If you default on a loan, lenders may have the right to take possession of any assets you have used as collateral to recoup their losses. For example, if you took out an auto loan with your car as collateral and then failed to make payments, your lender could repossess your vehicle to recover their money. While this isn’t necessarily common, it’s essential to understand that it’s possible when taking out a personal loan and should be considered before agreeing to borrow money from a lender. Overall, while personal loans can provide much-needed access to funds for large purchases or debt consolidation, it’s essential to understand the advantages and disadvantages of these types of loans before committing yourself financially. Comparison of Home Loan Top-Up and Personal Loans – Benefits & Drawbacks When it comes to taking a loan, many options are available, including home loan top-ups and personal loans. Both these types of loans have their advantages and disadvantages. While some people may opt for a personal loan’s convenience, others may prefer the lower interest rates that come with a home loan top-up. First, let’s look at the benefits of a home loan top-up compared to a personal loan. The main advantage is that with a home loan top-up, you can take advantage of lower interest rates than those available on personal loans. Banks view your existing mortgage as security for the new loan. This means they offer lower interest rates as they know that they have collateral to recover their money if you fail to repay the loan. Another benefit of opting for a home loan top-up over a personal loan is that it allows you to consolidate existing debt into one manageable monthly payment. This helps make repayment easier for those with multiple debts or high credit card balances to manage each month. However, some drawbacks are associated with opting for a home loan top-up instead of taking out a personal loan, such as longer repayment terms and fewer features like flexible repayment options or redraw facilities. Additionally, if you don’t meet the criteria required by the bank or don’t have sufficient equity in your property, then you may not be eligible for this type of product. Overall, while both types of loans offer advantages and drawbacks depending on individual circumstances, a home loan top-up over a personal loan is generally more beneficial due to its favourable interest rate and ability to consolidate debt into one monthly payment. Therefore we can conclude that when considering which option is better between these two products: Home Loan Top-Up is the better choice! [B-02] Conclusion In conclusion, a home loan top-up also offers tax benefits, as the interest paid is eligible for deduction under Section 24 of the Income Tax Act. Additionally, it allows you to use your property as security while taking out a loan. On the other hand, personal loans can be attractive if you want to borrow a small amount of money for a short period. Personal loans come with higher interest rates but are easier to obtain and have relatively faster processing times than home loan top-ups. Ultimately, depending on your requirements and financial situation, either option may suit you. However, if your goal is to borrow a large amount of money at lower interest rates with tax benefits in mind, then opting for a home loan top-up is likely the better choice in the long run.
08-11-2023
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Personal Loan

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

Everyone needs a break every once in a while. Going on a trip is the best way to escape your daily routine. What if you don’t have enough money, though? Consider getting a personal loan for travel before you cancel your plans. You don’t have to struggle with getting a loan to pay for your trip. Read on to learn about travel loans and when they might be a good option. [B-01] When Should You Take Out a Personal Loan for Travel? Another type of personal borrowing is getting a loan to pay for a trip. They aren’t safe, are spread out, and don’t need much paperwork. They work well in the following situations: Imagine that you have a once-in-a-lifetime chance to go to the place you want, but you don’t have the money to do so. In situations like this, you don’t have to cancel your trip or wait a long time for another chance. A travel loan might make up the difference and let you go on a great trip. Getting a loan also makes it easy to get the money together for a last-minute trip. You can enjoy your trip without worrying about how to pay for it and pay for it in small, easy-to-handle instalments. You could also use the money to pay for your trip. Plan your trip and set aside money for it. If you don’t have enough money, you should take out a personal loan for travel to make up the difference. It can be used to pay for hotel stays, plane tickets, and other costs. If you need to extend your trip because of something unexpected, a loan for travel might help. It could give you quick cash to pay for extra travel or living costs. What should you do before applying for a personal loan for travel? Once you’ve picked a vacation spot and made travel plans, here’s what you need to do: Look into Lenders Loans for travel come with different terms from lender to lender. Compare interest rates so you can find a lender that meets your needs. Processing fees and the terms of the loan. Examine Your Eligibility Different financial institutions will have different requirements for getting approved. Still, you will almost always have to meet some basic qualifications. These include age, years of work experience, monthly income, job stability, etc. Check that you meet all the rules to ensure the process goes smoothly. Also, your chances of getting one will improve if you have a good credit score and a steady income. How do I get a personal loan for travel? Once you’ve decided on a lender, fill out the application on their website or by calling them. You must send in a filled-out application form along with the following: Verification of identity (Aadhar card, Voter id, Passport). Proof of where you live (Electricity bill, Phone bill). Income proof (Salary slips, Bank statements). Pros of Getting a Personal Loan to Travel Personal Loans for Travel may be approved and given within a few days. This depends on how the bank or NBFC works and the terms. If a bank has already agreed to give you a personal loan for travel, you may be able to get cash. The loans are easy to get and don’t require a lot of paperwork. The whole loan process can be done online from the comfort of your own home. Since a loan for travel is unsecured, you don’t have to put up any collateral, security, or a guarantor to get it. Your credit score goes up when you make payments on time every month. What does Tomorrowland mean? Tomorrowland is the world’s largest and most important music festival. It takes place every summer in July and is the best thing ever for music lovers. It brings music fans from more than 200 countries together under one roof and makes them happy. Since 2005, when it began, the Tomorrowland music festival has only been held once a year. The best bands, sound systems, and stage designs. This is one of the most popular music events in Belgium and one of the most popular in Europe. This is the only event in the world that gives music a lot of attention. It is also the most important festival. Why is Tomorrowland so different? The Tomorrowland festival is a one-of-a-kind music event that takes place worldwide. More than a thousand famous DJs and musicians perform there. Like Vini Vici, Hardwell, Oliver Heldens, Lost Stories, San Holo, Alan Walker, and others. Music fans worldwide learn about “Live Today, Love Tomorrow, Unite Forever” and show that they feel it simultaneously. There was also mind-blowing and soul-satisfying music at the Tomorrowland event. It has about 15 beautiful stage designs and spectacular fireworks. It brings together thousands of people from more than 200 countries under one roof. And brings them all together through the power of one language, music. Personal loans for travel: What you need to know Loan with a Lower Value The loan amount could be as low as Rs. 10,000/-. For loans up to Rs. 2 lakhs, there is no need for collateral or a guarantor. A guarantor or collateral may be vital for loans over Rs. 2 lakh. This term may be different for different lenders. Most of the time, loans are looked at on a case-by-case basis. Quick Approval Loans for personal travel are given out when they are needed. The borrower can get a quote for the whole trip and fill out an application. Many people who sell vacation packages work with different banks. The person might fill out an application at one of these banks, where the paperwork and payment go. Payback Terms for the Short and Medium Term The payback period could be anywhere between 12 and 60 months. Personal loans with payments can be used to pay for trips. Terms can be between 3 and 6 months. Available Holiday Promotional Offer Most banks have special offers with low-interest rates, no fees for processing, and easy application. Getting loans for travel and other things. During the Christmas season, these ads are often shown. [B-02] Conclusion A loan for travel is used to go to faraway tourist destinations. That will require a bigger sum to pay for travel costs. Going on vacation has become popular in this generation, where instant gratification rules. People can plan big trips with the help of loans for travel. These loans for travel are for a shorter time and less money. Since these loans are often not secured, many banks offer them as personal loans for travel. The interest on these loans is very high. You can find out more about this kind of thing at Piramal Finance.
08-11-2023
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Stocks Markets

How to Invest in Foreign Stock Via Mutual Fund?

The Indian stock market lists more than 5,500 companies, but many stock brokers are more interested in foreign companies. Marketers put a lot of money into tech stocks like Google (GOOGL), Apple (AAPL), Netflix (NFXL), and Twitter (TWTR). The main factor for this is easy to understand: even though these stocks are traded on exchanges outside India, the companies listed above are still seen as leaders in their fields. Since the risk is lower, it’s fine to hold on to things for longer. If you live in India and want to invest in foreign stocks, you might not know how. This is clear because neither the Bombay Stock Exchange (BSE) nor the National Stock Exchange (NSE) of India trades in these companies (NSE). So that you don’t have to be concerned about it, this post discloses how to invest in foreign stocks via a mutual fund. [B-01] What do Foreign Stocks Mean? Foreign stocks are shares in companies that are not based in India. Buying foreign stocks is a great way to spread out your risk and take advantage of the growth potential in emerging economies. How to Invest in the Foreign Stocks? You can invest in foreign stocks in two different ways. Investing directly in stocks. Investing in stocks indirectly through mutual funds Investing Foreign Stocks via Mutual funds You can buy foreign stocks via mutual funds. But doing this requires much time spent studying and keeping an eye on things. If you want to purchase foreign stocks, these mutual funds are good for you: Fund of Fund (FoF) When looking for a mutual fund to invest in foreign stocks, a fund of fund (FoF) should be your first choice. These mutual funds buy shares of foreign companies. You can not only protect yourself from the ups and downs of the Indian stock market, but you can also watch for signs of change in the global economy. In light of the recent drop in the Sensex, one way to fight this trend could be to put money into a fund of funds that invests in international stocks. Exchange Traded Fund (ETF) Exchange-traded funds are the second way to trade foreign stocks on the market. The average prices of ETFs are unstable and can change many times a day. It’s being bought and sold all day long. On the other hand, mutual funds are usually only traded once a day after the market has shut down. Exchange-traded funds that track international indexes can be used to enter the foreign stock market. You don’t need to participate in international financial markets to use these resources. Exchange-traded funds (ETFs) that trade on the local market are also available through brokers in India. Ensure that the ETF you want to invest in is registered with India’s Securities and Exchange Board. When you buy exchange-traded funds, you lower your investment risk because the performance of these funds is mostly the same as that of an index. Also, the cost ratio of exchange-traded funds is much lower than that of mutual funds. If you want to invest in exchange-traded funds, you’ll need a brokerage account with a company in India or outside India. Global Mutual Funds You can enter the international investment market with access to international mutual fund schemes. Several of these mutual fund plans follow the markets of Asia and the Pacific, but the vast majority follow the U.S. market. Some plans only buy foreign stocks that trade on the U.S. market, but they still buy domestic stocks. Benefits of Foreign Stocks There are many good things about investing in foreign stocks, such as: Investors like foreign stocks because they give them more ways to make money. Buying foreign stocks is a good way to learn about different economic problems. Investing in a foreign market can also spread your risk and keep your portfolio from being too volatile. Things to Think about before Buying Foreign Stocks through Mutual Funds Before investing in international mutual funds in India, here are some important things you should think about: Risks Investing in these funds comes with many risks. Currency risk is a key factor. So, if you buy foreign stocks via a mutual fund focusing on the US and the rupee falls against the dollar, the NAV( Net Asset Value) goes up. This is because each dollar buys more rupees. In the same way, if the rupee goes up, the NAV goes down. Large-scale Factors The political situation of a country and its economic and social factors can greatly affect how well the fund does. So, you need to know about these things and keep an eye on the market. Multiple Economy Benefit When you invest in foreign stocks via mutual funds, you can take advantage of the growth in more than one economy and get a better return. It also helps you spread out your investments and make your portfolio better. Tax Most of the time, mutual funds put most of their money into stocks and other instruments related to the stocks of international companies. These funds are treated as debt funds for tax purposes. So, the rules for long-term and short-term capital gains for debt funds also apply to these funds. Top 5 International Mutual Funds for Foreign Stocks Sr. No.Fund NameNAV(Till Date)(INR)1.Franklin India Feeder Franklin US Opportunities Direct Fund-Growth47.32.Edelweiss Greater China Equity Off-shore Fund37.13.ICICI Prudential US Bluechip Equity Fund48.64. Nippon India US Equity Opportunities Fund23.45.PGIM India Global Equity Opportunities Fund28.5 (Data as of 25 November 2022) [B-02] Wrapping Up If you want to diversify your investment portfolio, you can start trading foreign stocks from India and investing in international markets. Because there is so much information online, it is easier than ever to research companies and their stock prices. However, keep in mind that investing in stocks on a global scale comes with benefits and risks. So, it’s important to think about everything and ensure your investment plan fits your needs and level of risk tolerance. Visit Piramal Finance and look at their blogs and products to learn more about the stock market.
08-11-2023
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Other

How to Finance your Home Renovation?

Have you just bought a new home or an apartment put on resale? Congrats! But hold on! Do you have enough money to revamp the place? It would be unfortunate if you bought a new house and were left crunched for funds to turn it into a beautiful home, wouldn’t it? A home renovation loan is a solution to this problem. This article will walk you through options to fund your home remodelling work. Here are several basic methods to secure funding for remodelling your home. [B-01] What is a Home Renovation Loan? Banks provide home renovation loans to people who need financial assistance to restore or repair their houses. You can use the funds to improve the decor of your house, such as redoing the flooring, tiling, plastering, painting, and also renovating areas such as the kitchen, living room, and bedroom. The paperwork process for a home renovation loan is simple and the interest rates are similar to housing loan rates. A home renovation loan is a good option to arrange funds for house repair. Yet, many people borrow credit lines for this reason, which might be an unfair or time consuming process. Even though a personal loan may be obtained in a week or two, the payout of a home repair loan may take longer. If you already have a house loan, your chances of getting a home renovation loan are better. You may also claim tax perks after taking out a home repair loan. However, home renovation loan interest rates at various banks might range from 10.25% to 11.00%. So seek choices that are both cost-effective and provide the most value. Ways to Finance a Home Renovation While a home renovation loan is a way to finance the renovation, let’s also take a look at some other options. Here are the top ways to finance your home renovation: Using One’s Savings If you have been planning to renovate your home for a while, there are chances that you may have considered setting aside some money regularly for achieving this goal. If you have enough money saved to support the repair work without risking your investment objectives, utilising your savings for a house repair is a smart choice. One way to plan this is to set aside some money as a fixed deposit (FD). Getting a Personal Loan Some lenders and banks offer personal loans that can be used to renovate your house. You can get a personal loan based on your monthly income. It is an unsecured loan and you can use the personal loan amount as you see fit. However, the loan duration and interest rate may vary from bank to bank. Also, some banks charge a fee for pre-paying a loan. It is important to carefully read the terms and conditions when availing such a personal loan. Taking out a Construction Loan If you are going to build yoru dream home from scratch, a construction loan can be of assistance. A construction loan enables you to draw cash from the loan when your bills come, whether for a minor expansion or a total knock-down rebuild. This saves you money since you only pay the interest on the progress fees paid until the loan is completely drawn. Property loan You may get a loan against your house to do house repairs. The majority of banks and credit unions provide this loan. Banks will lend up to 80% of the property’s worth. The interest rate on loan against property is lower than that on a personal loan. You can choose six months or more to pay back the loan based on your needs. This loan also provides tax savings. Using a Credit Card You can use your credit card to purchase materials for your home repair projects. Based on how much your credit limit is, you can also withdraw money to use for your home renovation. You can split your whole spend into easy EMIs and return it in a year or less based on your financial plans. Using a credit card enables yourepayturn the loan in advance without incurring any charges. However, this does not provide you with any tax benefits. Property Extension Loan Banks and other financial institutions provide property extension loans. This loan may be used for repair and property expansion. The interest rate may differ from one bank to the next. You may choose a tenure that meets your needs. This loan is also tax deductible. Use of Equity in the House If you are an eligible customer of yoru bank, you can use the equity in the house to top up (raise) or redraw the house renovation loan. Top-Up Loan Topping up your house loan may be a viable option if you’re planning repairs, merging debts, or just needing more money. You can obtain more on your current home loan without taking out a new loan. You may get help with a cheaper interest rate than other loans, such as a personal loan. Mortgage Loan Banks lend you money by taking your gold, jewels, and assets into debt. This is another way to get funds for your repair job. A mortgage loan, however, has a higher interest rate. You must pay 9.50% and 11.25% interest on your house and top-up loans. Yet, you will be charged a higher interest rate for this loan. [B-02] Conclusion Are you familiar with the saying, “Home is where the heart is”? This place, called home, is where a person’s life is rooted. Therefore, it is natural that one may want to spend on renovating it from time to time. A planned home renovation helps you revamp your house with minimum financial burden. Using a home renovation loan or other methods is a great way of funding the repair and redesign of your house. For more such interesting articles and financial products, visit Piramal Finance website.
08-11-2023
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Schemes

How to Open Jan Dhan Yojana Account – Eligibility and Documents

The honourable Prime Minister of India, Shri Narendra Modi, launched Jan Dhan Yojana in 2014. It is a scheme for financial inclusion that aims to connect the rural & urban public to the banking system. The central governments aimed to provide financial aid to people in need. Jan Dhan Yojana has made a Guinness world record by opening 18,096,130 accounts in one week. The central government has introduced Bank Mitra to handle only Jan Dhan’s account. [B-01] What Is the Eligibility for Pradhan Mantri Jan Dhan Yojana? You may check eligibility for Jan Dhan Yojana given below:- You must be a permanent Indian citizen to open the Jan Dhan account successfully. A minor child aged ten years can apply for a zero balance account in any bank. However, the account will be under the parent’s supervision. Minor will also get a RuPay card for easy money withdrawal. You can transfer your current savings into the Jan Dhan Yojana account. It benefits the account holder in future financial aid. you will need identity proof verified by a gazetted officer to easily open Jan Dhan Yojana’s account. You can also apply if you don’t have any identity or resident proof. The bank will do a background survey and approve the application. What Are the Objectives of the Jan Dhan Yojana Account? The Jan Dhan Yojana is beneficial in many ways. You can enjoy government schemes with subsidies and apply for instant loans. Check out the main objectives of the Jan Dhan Yojana account listed below: It improves financial awareness among rural & urban citizens. It provides at least one bank account to every citizen. You can get guaranteed credit funds. You can apply for microloans. It will get a RuPay card for easy ATM access. You can access your frozen account and reactivate them. Old-age citizens get pension facilities under the unorganised sector. There are so many hidden objectives of the scheme. It improves confidence and self-esteem in rural people. It spreads awareness among women about finance and management. The scheme has divided all 6 lakh villages into small sections. These small sections are known as Sub Service Areas. The government introduced new bank outlets in these areas . In total, the scheme reached 1000-1500 households and opened accounts. The government provided access to unemployed youth, retired citizens, NGOs, NBFS, and RBI-verified individuals to become Bank Mitra. The Finance Ministry monitor all SSA and activities of Jan Dhan Yojana. What Are the Documents Needed for Jan Dhan Yojana? Check the documents listed below if you want to apply for a Jan Dhan Yojana account: You must have two passport-size pictures for an application form. You must have address proof, like an electricity bill with your permanent or current address. You must take two photocopies of your Aadhar card as identity proof. If you have recently changed to a new address, provide proof of shifting and attach a photocopy to the form. You can attach a recommendation letter from the gazetted officer as permanent resident proof to the bank. If your work is under the MGNAREGA scheme, you must attach a copy to the form. These documents are must-haves to open a Jan Dhan Yojana account. The bank can do a small background check if you fail to submit any document. The bank may consider opening a temporary account. After one year, you can provide the missing document. It converts temporary accounts into permanent accounts. Which Banks Offer Jan Dhan Yojana Accounts Service? All banks of India, verified by RBI, are eligible to open Jan Dhan Yojana accounts. You may check the list of public sector and private sector banks below:- Public Sector Banks State Bank of India Union Bank of India Bank of Baroda Punjab and Sind bank Bank of India Indian bank Syndicate bank Canara Bank Andhra Bank The Central Bank of India IDBI Bank Corporation Bank Private Sector Banks Axis Bank Induslnd Bank ICICI Bank Yes Bank HDFC Bank Dhanlaxmi Bank. Ltd Karnataka Bank ING Vysya Bank. Ltd Federal Bank Kotak Mahindra Bank How to open a Jan Dhan Yojana account? You may follow the steps to open a Jan dhan yojana account. The process of account opening is completely online. You can visit your nearest Bank Mitra and open your account. Or fill the form by taking print out from the nearest bank. Fill out the form with personal details. Attach the asked documents, like identity and address proof. If you work as an MGNREGA employee, attach a copy of the card. You can attach a recommendation letter as well. Visit your nearest bank with the form and documents. Submit the form, and they will verify and open the Jan Dhan Yojana account. What Are the Advantages of Pradhan Mantri Jan Dhan Yojana? The Jan Dhan Yojana was launched on a large scale. It spread financial literacy in the rural population. The scheme has helped the economically weaker sections with Bank Mitra. Take a look at the following life-changing benefits of Jan Dhan Yojana: You can apply for insurance under Jan Dhan Yojana. Bank offers life cover and vehicle insurance from Rs. 30000 to Rs. 200000. It also provides coverage for uncertain death. You can do mobile banking with Jan Dhan Yojana. You can do transactions from simple phones and don’t need smartphones. It gives hidden financial freedom to every account holder. You can apply for a loan with Jan Dhan Yojana. Once you complete six months with the account, you can apply for a loan. The loan amount starts from Rs. 5000. [B-02] Conclusion Pradhan Mantri Jan Dhan Yojana is an initiative for the weaker section of society. It helps spread financial awareness in the rural population. You can check the eligibility, documents and advantages in the article above. The government is reaching every small village with Bank Mitra. Every bank under RBI partners with the government to provide financial aid. Apply for your Jan Dhan Yojana account. Visit Piramal Finance for similar blogs and look at their products and services.
08-11-2023
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Education

How to plan a fruitful life beyond retirement?

Retirement, or leaving one’s job after many years of dedicated service, marks a major turning point in a person’s life. Retired life without retirement planning comes with money problems, which get harder now that there is no monthly income. Regarding retirement, there is no difference between self-employed and salaried workers. Most people retire when they are between 55 and 60 years old. People may feel like they are carrying a heavy burden when they retire if they haven’t planned their finances. It is important to stay financially free after you retire if you want to keep living an easy life. Proper retirement planning helps to attain a fulfilled life post-retirement. [B-01] Different ways to get ready for retirement If you have not done any retirement planning, you may find it hard. The sooner you invest, the more it will help in the future. This will help ensure no money worries after you retire. Here are some things that you can do to get ready for retirement: Deciding on an investment strategy. Return on investment (ROI) is the most crucial factor in determining how much money is made. Mutual funds are a good way to get exposure to a wide range of asset classes, which is necessary for higher returns. The prime way to invest money is through the best mutual funds for retirement. People think they can be changed and offer a tax advantage. They can also think of them as long-term savings. Mutual funds can be divided into hybrid funds, equity funds, and debt funds. Retirees can pick the best if they align their goals with the funds. Start investing early. With the help of the TOI, the average rate of return on the stocks in India by market cap reached 10.3%. With this, it’s possible that when you retire, you’ll have saved more money with less money each month. If you start saving for retirement five years earlier, you could reach the same goal with less capital. In this type of retirement planning, investing early is better than investing after one has retired. Health insurance. When you are old, your health is one of the most important things to consider. So, getting health insurance before retirement is a good idea if you want to protect your finances in case of an unexpected medical need. By doing this, you can be sure that unexpected medical costs won’t hurt the money you save from investments. Steady cash flow. Sticking to a SIP is always best for a stress-free retirement. When you retire, you get little or no income. For a good life in old age, it’s always best to have retirement planning for investments and withdrawals. Join a retirement pension plan to save and keep a steady income once you retire. Many public and private banks offer various pension plans. Pension plans by the government Uncertainty about money is one of the things that makes retirement scary. The retirement pension plan gives retirees peace of mind about their money. Here are the public pension schemes for senior citizens: National Pension System People who opt for this plan can make regular payments while working. After you retire, you can get the benefits of a regular annuity. In an emergency, subscribers can also take money out of their NPS accounts in parts. Atal Pension Yojana (APY) With a minimum monthly payment, you can get pension benefits in this retirement planning. The unorganised sector is the main focus of this project. For this APY, you must have a low income or not pay taxes. Pradhan Mantri Vaya Vandana Yojana This retirement planning ensures that you will be financially independent and have social security when you retire. LIC offers this program, and you can get your money back over ten years. PMVVY is the best scheme for steady income for retirees. Indira Gandhi National Old Age Pension Scheme People get social security through this system. It gives pensions to older people, widows, and people with disabilities. Low-income people who don’t get regular money from family members are also eligible. Beneficiaries between the ages of 60 and 79 would get Rs. 200, and those 80 and older would get Rs. 500. Employee pension scheme This pension plan is for people who have worked for the company for at least ten years. There are different EPS or EPF pension plans, such as widow, child, orphan, and reduced Varishtha Pension Bima Yojana This pension system gives people a steady income and a rate of return through annuity payments. After paying the fee, the subscriber has the right to a normal pension. Every year for ten years, the rate of return is 8%. Step-by-step retirement plan Step 1: After retirement, calculate how much money you will need. Consider anything from rising medical bills to family gifting. Step 2: Calculate the lump-sum payment amount that will be paid upon retirement. This is referred to as the terminal benefit. Step 3: Choose a retirement programme that will provide you with the means to fulfil your needs. Investing your money in assets with higher returns is in your best interest. Step 4: Begin to invest at a young age. This investment enables us to take advantage of the compounding effect. Benefits of planning for retirement Setting priorities after retiring is very important. Consider the benefits of retirement planning at the right time to ensure a fruitful future. Retirement planning aims to save money for the future in the best way possible. Financial support You may feel anxious when you’re not working because you don’t know what will happen next. In an emergency, you might need the money you’ve saved to pay for the things you need to live. Get ready with retirement planning to ensure you’re ready for financial needs. Investment returns Retirement planning lets you save money and make it grow. Determining which investment is right for you depends on your financial situation. When you plan, you’ll get a better return on your investments. Find out how much you’ll need to save to meet your financial goals. Tax advantages Many financial tools can be used for retirement planning. You can lower the amount of tax if you put your money into acceptable strategies. Investing costs can be managed well with the right kind of retirement planning. Financial Self-sufficiency Planning for retirement can help give you peace of mind in old age. Have a good investment portfolio to start a new journey in your life without fear. [B-02] Conclusion Retirement planning does not stop when you resign. Preparing for retirement involves several factors, and it’s never too early to start. Retirement preparation comprises two steps: pre- and post-retirement planning. A smooth shift from pre-retirement to retirement is crucial. Before retiring, you need a clear vision and a robust savings plan. For more information on retirement planning, check Piramal Finance.
08-11-2023
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Stocks Markets

How to Invest in Global Share Markets Like U.S. & Europe from India?

There has been a recent uptick in the number of Indians who invest in international stock markets. In addition to its benefits, this also offers quick and easy returns. However, there are costs involved, such as huge broker fees. It’s vital to remember that the RBI has set a limit of INR 20 lakhs (approx), which applies to all Indian residents. These terms are for all the funders who want to put money into U.S. shares. [B-01] Positive of Global Investment Many funders buy international global stocks because of the rising trade rates. It allows them to reap huge profits. In addition, many individuals can have variety in their portfolios by funding different global stocks. Furthermore, the U.S. stock market is home to some of the most well-known firms, like Tesla, Google, Amazon, Facebook, General Motors, Apple, and Microsoft whose stocks perform well. Ways to make Global Investment Global investment from India may appear difficult at first. However, there are only two major ways to go about it. Investing In Your Own There are two methods under direct global investment. Both of the following methods are used for funding foreign equities: Open a foreign trading account. Before entering international stock markets, open a foreign trading account with an Indian broker or a global trading partner. If you want to invest in stocks from abroad, open a Demat account. It will be best for you because so many funding firms support it. Sign up with a broker in another country. The Indian market for U.S. shares is accessible through some well-known foreign brokers. They can assist you well in your funding abroad. But, again for this, you need to have a separate account. Subsidiary Investment There are three ways to make an indirect global investment: ETFs, or exchange-traded funds Direct access to U.S. ETFs is possible via an Indian or a foreign broker. In contrast to other fundings, ETFs do not require you to keep a set amount in the account. Mutual Funds Investors can also opt for mutual funds for global investment. It is one of the easiest methods of investing in foreign equities. There is no need for a minimum balance for trading accounts. Mutual fund trading can also relieve the stress of selecting individual stocks. Advanced mobile software New money apps provide another entry point for funding in international stock markets. Funding via apps makes it very easy to invest in stocks. You don’t have to go anywhere; sit at your home, and you can start trading. Factors urging Indians to Choose Global Stock Market Grab better chances Once you enter the foreign stock market, there is more and more for you to explore. Also, it provides better chances in terms of stock trading. Global investment gives you an opportunity to earn from profitable shares. Portfolio Diversity Let’s assume that you have invested in both Indian as well as foreign stock markets. Indian stock crashes due to some reason. But your funding in foreign shares will give you quite a good result. The reason being it’s not affected by Indian markets. Investing in Favourite firms Everyone looks up to brands like Tesla, Meta, Apple Inc, and many others. What if they get a chance to invest in these firms? All of these are foreign-based companies and have provided good returns, so far. Therefore, it attracts many Indians to buy stocks in these companies. Precautions Before Global Investment While conducting an in-depth examination of the investee firm is essential, a prudent investor will also consider the following factors before purchasing foreign shares. Risk Factors of a Country Any foreign investment requires careful consideration of the potential dangers unique to that country. Before investing consider investee entity-specific, future business prospects, geopolitical concerns, macroeconomic considerations, etc. Risk Factor of Foreign Exchange Foreign exchange risk is another factor that can’t be overlooked. An investor should always have a margin in the ERR. This can be due to dynamic foreign currency. The investor might lose or make more money, that depends on the stock exchange rate. Hence, they should factor in that risk before funding. For instance, if you invest in the USD with the expectation that it will go up against the INR, your return will be higher in INR terms, and vice versa. Risk of Volatility The danger of price changes in stock is always there. Increased volatility means increased risk. This is due to high uncertainty in the stock’s price. Therefore, from a funding point of view, more stable and mature markets are preferable. Risk of Economy Many economic variables can affect the share price of a company. So, before buying any stock overseas, it’s important to consider the country’s overall financial health. Investment Expenses in Foreign Stocks Fees incurred during a funding It’s important to keep in mind that investing in foreign companies entails a huge funding cost. It is way higher than buying Indian stocks. There is a hidden cost between a currency’s buy and sell prices (say, the U.S. dollar). If you want to save time and money, opening a bank account in the same currency as your funding is a smart move. Other factors are: Minimum funds needed for margin trading in a broker account Finances fees Financial institution fees Costs, including any applicable sales, use, or value-added taxes. Depending on the portfolio size, transaction fees might be as little as 0.5% and as high as 2%. Source-of-Income Tax-Collection Considerations (TCS) If an Indian investor invests in foreign stocks and their yearly funding exceeds the prescribed threshold limit, then the authorized dealer bank must levy and collect tax collected at source (TCS) at the rate of 5%. This is per Section 206C (1G) of the Income Tax Act, 1961 (“I.T. Act”). [B-02] Conclusion While funding in U.S. stocks can be good, it is necessary to grab the whole point. There can be risk factors, too. To begin your global investment, you can choose ways that best suit you. While direct funding requires you to maintain a minimum balance, indirect funding does not. Based on your needs, always choose the right way or take the help of an expert. For further details, visit the Piramal Finance website to get assured assistance.
08-11-2023
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Guide

Difference Between Repo Rate Vs Reverse Repo Rate

The bank will charge interest when you borrow from them. Consequently, if you deposit money, the bank pays interest. But have you ever wondered how banks fund themselves? The answer is simple. Banks either utilise deposits or borrow from the central bank – the Reserve Bank of India (RBI). For these transactions, the RBI implements a tool called the Liquidity Adjustment Facility (LAF). Under this arrangement, banks can borrow from or lend money to the RBI through the repo and reverse repo agreements. The interest rate levied on these transactions is the Repo Rate and Reverse Repo Rate. This article explains the main differences between these two terms. What is the Repo Rate? The Reserve Bank of India (RBI) charges interest on loans borrowed by commercial banks. This rate is called the repurchase agreement rate or Repo rate. Typically, commercial banks secure loans from the RBI by pledging various government securities as collateral, such as treasury bills and bonds. The repo rate is nothing but the lending rate charged by the RBI. The repo or repurchase agreement allows the RBI and commercial banks to repurchase securities at a pre-determined rate. These agreements are set in motion when banks must maintain liquidity in uncertain market situations. The RBI uses the repo rate to control inflation. So, let us now understand how the repo rate works. How Does Repo Rate Work? The RBI uses repo rates to regulate money moving through the market. It increases the rate when inflation strikes. Banks borrowing money from the RBI during inflation pay a high interest due to a raised repo rate. This severely affects the bank’s capacity to borrow from the RBI. The end customer feels the impact of a repo rate increase in two ways: Banks increase the rate of interest on deposit accounts to increase the cash at their disposal. Thus, investors can enjoy higher interest on fixed-income instruments. To combat the repo rate hike, banks further increase the interest rate on loans, making them costlier and thus less sought after. With fewer loans to disburse, banks manage to retain greater liquidity. The decrease in liquidity lowers demand in the economy, reducing inflation levels. Repo Period The RBI has stated that the repo period can be ‘overnight, open, or flexible.’ Overnight repo does not extend beyond a night. However, the situation gets complicated if the term is predetermined and agreed upon in advance. This type of repo is known as the term repo. In this case, either side may request to stop the repo at any moment with one or two days’ notice. Term repo typically lasts for one week. However, there is no maximum limit on repo tenure. Current Repo Rate The current repo rate is 5.90%. The RBI increased the repo by 50 basis points in September 2022. What is the Reverse Repo Rate? Commercial banks deposit money with the RBI and earn interest when they have surplus funds. This interest paid by the RBI is called the reverse repo rate. In other words, the reverse repo rate is the rate at which the central bank borrows from commercial banks. How does the Reverse Repo Rate Function? RBI often applies the reverse repo rate during inflation. This increases the rate, prompting banks to park more money with the RBI and earn higher returns. As a result, the banks have less money to extend in the form of loans. Thus, the liquidity in the economy decreases. Current Reverse Repo Rate As of November 2022, the reverse repo rate is unchanged at 3.35%. Repo Rate Vs Reverse Repo Rate Parameters Repo Rate Reverse Repo Rate Definition The rate at which commercial banks borrow from the RBI. The rate at which the RBI borrows from commercial banks. Liquidity A hike in the repo rate drains excess liquidity from the economy. When the reverse repo rate goes up, the liquidity in the market increases. Objective Repo rate helps control inflation. A reverse repo rate helps manage the money supply. Interest Rate The repo rate tends to be higher than the reverse repo rate. The interest rate is lower than the repo rate. Mechanism of Operation The RBI lends funds to commercial banks against securities pledged as collateral. Commercial banks deposit surplus funds with the RBI and earn interest on their deposits. Current Rate The current repo rate is 5.90%., The current reverse repo rate is 3.35%. [B-02] Conclusion The repo and reverse repo rates are vital tools for managing the economy. However, we must remember that the repo rate will always be higher than the reverse repo rate. Further, the difference between these two rates determines the RBI's financial income.
08-11-2023
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Personal Loan

How to Pay Hair Transplant Surgery Cost through Personal Loan

Hair is the crowning gem that keeps you looking young for a longer period. However, not everyone is endowed with thick, healthy hair. Hair loss may be psychologically painful since it lowers self-esteem. Baldness is a genetic disorder that affects some individuals even in their 20s. This generates a feeling of inferiority, with some people facing difficulty finding compatible relationships. How can you discover a long-term solution to this problem? What can you do to restore your enthusiasm for life? There are, in fact, two alternatives. The first option is to wear a wig for a short time. It cures the issue, is reasonably priced, and has no negative side effects. You must, however, remove it at night and take proper care of it. Another alternative is to get a hair transplant. It is more costly but offers a long-term solution to the issue. However, it might be pricey at times. To cover the cost, you can apply for a personal loan. [B-01] What Exactly Are Personal Loans? A personal loan is borrowed at a fixed rate and repaid over time. These loans are unsecured. Thus, no security or assets are required. You can use the loan proceeds to meet your urgent money needs, whatever they may be. When you apply for a personal loan, it is a fantastic solution to all your money needs. A personal loan is likely one of the most vital duties. You must alter your budget to repay it on time, even without paying a lump sum. Yet, if you want a loan, make an effort to get one with the lowest personal loan interest rate available. Hair Transplant Types In India, the average price of a transplant is Rs. 57,000. It may cost as much as Rs. 2,65,000 based on your doctor of choice and other factors. The level of hair loss, the region to be fixed, your age, your hair texture, and the kind of surgery you select all influence your hair transplant costs. Unsecured loans are available for both cosmetic and medical operations. There are two types of hair transplants based on where the donor site is harvested: Strip harvesting Follicular Unit Extraction (FUE) There are two kinds of hospital devices used during a hair transplant: Manual hair transplantation Robotic hair transplantation Perks of Applying for a Personal Loan for a Hair Transplant Easy to use You may use the online method if you don’t know how to apply for a personal loan offline. Lenders’ websites are simple to use. Lenders will walk you through the process of filing a loan online step by step. Many lenders also offer a chatbot service that handles clients’ questions 24 hours a day, seven days a week. Easy Comparison When you apply for a personal loan online, you can compare many loan interest rates and offers with just a few clicks. Many websites now enable users to make decisions based on data from multiple lenders listed on the site. You can also check to see if you are eligible for a loan and use the loan EMI calculator to figure out the best EMI to pay. Minimum Work Required You must follow very few steps when you apply for a personal loan online. You need KYC papers, proof of income, and a passport-size image to complete your loan form. The online application process is ideal if you need a personal loan right away. Instant Approval Many lenders allow you to apply for personal loans online through their website or an online app. The loan request is completed faster because the method does not require many papers for verification and processing. The money is released into your account when the lenders have verified the scanned papers. How Can You Get a Personal Loan for Your Hair Transplant Surgery? The way a person looks has a major impact on his or her identity and self-esteem. If you are self-conscious about your lack of hair, hair transplant surgery may help. Yet, the surgical cost might be a barrier if your resources are insufficient to pay this unpaid bill. Apply for a personal loan to help you pay for this cosmetic surgery. You may satisfy your varied needs by getting a personal loan from the right lender. You may apply for a personal loan with flexible repayment choices and affordable interest rates. Preparing and applying online with proper paperwork takes just a few minutes. Eligibility Criteria for a Personal Loan for Hair Transplant Surgery Loan eligibility varies from lender to lender. Here are the general criteria followed when applying for personal loan. Your age must range from 21 to 58. You must have at least one year of work experience and at least six months of job history at your current workplace. A monthly salary of Rs. 20,000 is needed. Papers Needed For A Personal Loan For Hair Transplant Surgery Asking for a loan is simple and fast. To begin, go to the lender’s website and complete the online form. Along with your loan form, you must apply for a personal loan with the following documents: ID Proof PAN card, Aadhaar card, driver’s permit, voter ID, and any other official ID with your picture and name are accepted as proof of ID. Proof of Address Your utility bills, passport, ration card, or voter ID are proof of residency to apply for a personal loan. Proof of Job Your work ID card acts as proof of employment. Money Records You must also supply your bank records, Form 16, and the last two months’ pay slips. [B-02] Conclusion A personal loan may normally be found with a good rate and terms. If you need direct support covering the whole hair transplant cost, you can apply for a personal loan. It can prove to be a good choice. A hair transplant may improve your mood and give you more confidence. After you’ve chosen the correct specialist and determined your costs, compare the personal loan choices to see which one will get you closer to your new hair. For similar blogs, you can visit Piramal Finance and explore their products and services.
08-11-2023
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