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Mutual Funds

How to Invest in SIP? And its Importance

For equity investors looking to get a sizeable corpus, SIP investment is a great long-term strategy. It has been demonstrated that SIP investments yield higher returns than conventional assets like gold, fixed deposits, PPFs, etc. Mutual fund SIP plans may be the best choice if you are a working professional with a long-term investment plan of at least five years and are willing to accept market-based risks. However, there is no hard-and-fast rule or a set time that can be used to determine whether to make mutual fund investments. [B-01] What is SIP? When you choose a regular fixed plan for investing money, it’s called Systematic Investment Plan (SIP). Every month, a fixed amount is taken out of your funds and put into the SIP plans of your choice. Way to Invest in SIP SIP Investment has become quite easy. You can do it online through different methods, which we will discuss below. However, investors must have their KYC completed and updated. 1. You can invest in an AMC SIP investment can either be online or by going to the websites of Advisory Management Companies (AMC). You must create an account by giving all the details before proceeding. In the next step, you need to give all the bank details along with a cancelled cheque. In the end, the KYC is verified with the use of the Aadhaar card, and the money is sent to the appropriate mutual fund program. You can make your offline investment by stopping by the AMC office in your area. You will need a completed application form, proof of identity documents, and a check or money order to cover the fee. 2. Platform Acting as an Intermediate When using a third-party platform, investors can make SIP investments quickly and easily. This hub allows you to invest in, monitor, and take care of all of your mutual fund and SIP accounts across all of your advisory management companies (AMCs) with a single point of access. Register with a third-party platform that acts as an intermediary to participate in a systematic investment plan (SIP). The next step is to decide on a scheme and a budget for the investment. Enter your personal information and bank information. With the investment, they can send money online to withdraw their profits. 3. Get Assistance from a Broker SIP investment through a broker, who is a mutual fund distributor, can be time-consuming and expensive. To invest in a SIP plan, you must submit your KYC documentation and a cancelled cheque. However, these days most brokers also have their investment-related website or mobile app. If the broker offers everything you need, setting up a systematic investment plan (SIP) is simple. What is the best SIP Investment in Mutual Fund? There is no such thing as picking the top mutual fund. This is because a mutual fund’s current performance is no indicator of how the fund will do in the future. Similar to how the fund with the worst performance now can turn out to be the best performer tomorrow. Most casual investors research a fund’s performance over the prior three to five years before committing. However, there are undoubtedly additional aspects to think about. Here are some things to consider when choosing a mutual fund for a systematic investment plan. Investment goals consist of things like saving for college, saving for retirement, etc. Investment horizon refers to the duration during which a monetary investment is expected to generate an It could be one year, three years, or even ten. The investor can select either a debt or an equity fund, depending on the duration of their investment. the degree of uncertainty that an investor is willing to take Investors can choose the most appropriate mutual fund for SIP investment based on these characteristics. Investors also need to think about the following issues when choosing a mutual fund: Comparison of Fund Results to a Benchmark Stability in the fund’s returns Evaluating a mutual fund’s results with other funds The expertise of the Fund Manager AMC’s Past results Mutual fund total assets under survey Comparing costs and benefits Benefits of SIP Investments: The benefits of SIP investment are as follows: 1. Easy customization options SIP allows you to contribute as little as Rs 500 per month and enjoy the compounding effect of your investment over time. A SIP not only helps you save money but is also easy to monitor and manage. 2. Rupee Cost Averaging The distinctive aspect of SIP is the Rupee Cost Averaging, whereby investors can buy more units when the market is low and fewer units when the market is high. Because of the nature of SIP plans, your investment cost will go down, and your profit potential will go up as you buy more whenever the market drops. 3. No withdrawal commitment With SIP, you won’t have to commit to something as long-term as a PPF or ULIP. There is no set term for withdrawal, as these are open-ended funds. You are free to take as much or as little as you want out of your investment at any time without penalty. 4. Rate of Interest compounded Compound interest is the power behind SIP, which works because your initial investment will earn interest on top of interest. As a result, it’s more profitable to invest a modest sum regularly over a long time than to make a large lump-sum expenditure. [B-02] Conclusion Investing in a SIP plan is a great first step. Mutual fund SIPs are a good way for new investors to start. When first starting in the investment world, it’s important to consider the big picture. Investment in long-term aims is another consideration. You should invest your money for a longer period. In this way, you are more likely to achieve your goals easily. In addition, you can try out different methods to increase your mark in the stock market. A long time horizon for an investment means that it has the potential to provide high profits. For more details, visit the Piramal Finance website and get assured assistance.
08-11-2023
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Stocks Markets

How to Build a Career in Stock Market?

As India’s trading industry grows more and more professionals are looking for a career in the stock market. This could involve working for a company or building a traditional career in the investment industry. You can also consider taking a business approach to invest and trade instead of stock market jobs to make money for yourself. Let’s talk about a career in the stock market and what steps you need to take to pursue this path. [B-01] What is the Stock Market? Most people need to learn about the dynamic work culture in the stock market. In stock market jobs, there is a lot of competition for every position. Most people don’t want to make a living in the stock market as it’s risky and includes a lot of pressure. Due to the huge growth and steady income, many people want to enter the stock market. For people who like stock market jobs, the Indian share market has opened up many jobs. The market is doing well, and the number of jobs in the stock market keeps increasing. People from many different walks of life like working in the stock market. Participants in the Indian securities market can trade on their own or come up with new ideas and strategies for the market. Here are a few stock market jobs with much room to grow. Opportunities For Employment on the Indian Stock Market Investment Advisor Start a consulting firm and work as an investment advisor. Many CFPs want to be able to plan money professionally. A CFP professional might work independently or for a company that helps businesses and people plan their finances. To apply for a job as an investment adviser under SEBI, you must have passed the NISM Investment Advising Certification Test. After you’ve met all the rules, you can ask SEBI for a licence to be an investment adviser. Equity Research Analyst You could become an equity research associate if you want to work in the stock market. This is a very rewarding job. The stock market has two sides: research on the buy side and research on the sell side. On both sides, they need people who research stocks. The buy side of a market is where fund managers invest and buy a lot of stocks. On the other hand, the sell-side of the market deals with advertising, developing stocks, and selling public stocks. To work as an equity research analyst, you can get a CFA or CA degree, both of which are respected in the job market. Portfolio Management If you invest in a mutual fund, your money is managed by portfolio managers. Professional fund managers are in charge of managing the funds for their clients. If you know a lot about the financial markets, the best job for you would be in portfolio management. You needed a CA, a CFA, or an MBA in Finance, among other degrees, to work in this field. Start with research and marketing if you want to manage a portfolio. As you get better at what you do, you might be able to start investing in portfolios. Stockbroker You all know that you need a trading and demat account to buy or sell stocks. Both of these accounts are taken care of by the same broker. The sheer size of India’s population should give you an idea of how much a career as a stockbroker could grow. Any established broker will sell you a “sub-broker ship” if you are just starting out and don’t want to take on too much. In this situation, you should try to sell the potential customer a brokerage account to make the most money. Becoming a sub-broker is easy, and it could help you reach your financial goals. What Options Are There for a Career in Stock Market? People now have a great interest in stock market investing. They put their money through fixed bank deposits and gold. However, given the current economic climate, customers are looking for new options, such as mutual funds or stocks. India needs to learn further about money as a result. Younger people think it’s better to do things themselves rather than use middlemen. Because people want to learn about money, more stock market jobs are looking good. Most jobs in the stock market are interesting, fast-paced, and pay well, which makes them desirable. Some examples include research and analysis, financial management, stockbrokers, auditing, compliance, cybersecurity experts, and data scientists. Other popular profiles include stock traders, hedge fund managers, investment bankers, portfolio managers, and risk managers. How can people who want to learn more do so? In today’s world, knowing how to handle money is vital. A good education system would prepare people for jobs. it will also make more people aware of how to manage money well. Graduates, in particular, are expected to learn how to handle money since they will have to earn it at some point. Also, any financial expert can serve clients better than their competitors if they have a hold of various financial topics. How do you get ready? What kind of training do you need? One crucial thing about stock market jobs is training. If you want to work in this field, the best training should give you both theory and hands-on experience. Through theory, you must fully understand how things work in the field. It’s like an art where you must know what you’re doing to do it right. [B-02] Conclusion Depending on your skills and interests, the stock market can give you a lot of different jobs. How well you can trade stocks depends on how much you know about the market. It’s more crucial to have experience in the financial market than to have a degree or certification. You need good analytical and communication skills to get a stock market job. For more details, you must visit Piramal Finance, which will clear all your doubts. They have all the blogs and articles to help enhance your knowledge on this topic.
08-11-2023
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Personal Loan

Go Green: Paperless Personal Loans with Piramal Finance

Much has changed over the years in terms of how people access and use loans. Instead of waiting for days, most people today want fast and simple answers to their money needs. The era of digital platforms in the finance sector has made this easier. The government is already doing its share to digitise the economy. It is focusing on developing a cashless system. Piramal Finance’s paperless instant personal loans are one instance of how this sector is growing. People in the digital era want fast answers to money issues. Loans given by Piramal Finance meet these needs. These loans assist them in solving the money crisis. Many experts predict that the future of client finance will be online. Let’s talk about how paperless personal loans are helping to alter lending firms. [B-01] Features of Paperless Personal Loans with Piramal Finance Here are the features of paperless personal loans that you must note: No asset is needed. Users do not need to pledge security or assets to get a loan from Piramal Finance. This makes these loans a good choice for many people. Tenure of flexible repayment. Piramal Finance loans allow you to repay the loan according to your financial capacity. You may choose a payback period of 12 to 60 months. Huge loan amount. Piramal Finance offers large loans of up to Rs. 25 lakh to meet your money needs. Other Offers. Your needs are a priority at Piramal Finance. Piramal Finance’s loans are tailored to these specific demands and aims. Simple online access You can monitor your loan account online, check your current loan balance, and even arrange partial payments since the process is fully paperless. Before asking for a personal loan, research and compare loan rates, and look for hidden prices or charges. Piramal Finance places a premium on openness, and all charges are disclosed upfront. You may apply for an online personal loan on Piramal Finance now that you know the whole process of getting a loan. Perks of Paperless Personal Loans from Piramal Finance A lending platform aims to test your creditworthiness by assessing your data online. Getting a loan via digital lending platforms is faster and easier than going to a bank. Here are some of the benefits of a paperless personal loan: It is trouble-free. Getting paperless personal loans is easy. There is no need for lots of paperwork, many visits to the bank, or filling out and signing page after page. With a few mouse clicks, you may apply for a loan from the comfort of your own home. It takes less time. The entire process, from approval to disbursement, is done online. You may save energy and time by not having to visit the bank often to submit papers. The loan is granted quickly and with minimal human interaction. It protects your data. Digital lending sites are subject to strict security testing and must comply with bank-mandated security measures. Hence, the technology ensures that all data on the site stays private and secure. You must first match the eligibility rules to get a loan without papers. Eligibility for Paperless Personal Loans with Piramal Finance Following are the eligibility requirements for paperless personal loans with Piramal Finance: You must be a paid employee. You must be an Indian national. You must be between the ages of 23 and 58. You must have a clean credit history and an above-average credit score of 700 or higher. Use the loan calculator to assess your eligibility when applying for a loan. All you have to do is enter your net revenue and the EMI you can afford. You will have all the needed data. Make sure you have a soft copy of the papers available to expedite your digital rapid loan form process. Documents required by Piramal Finance Paperless personal loans are simple and quick to apply for. Yet, to get the loan money, the user must provide some papers to the firm. These papers ensure that the user is a real borrower capable of paying the loan amount. Users must provide digital copies of these papers and allow the firm to verify them. Users may now e-sign papers, making the process easier. The following papers are needed for online loans: 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 For a paperless personal loan approval, you can show that you live in the area with your utility bills, passport, ration card, or voter ID. 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 stubs. How do paperless loans function? Many firms today find it relatively simple to receive and verify digital applications. You no longer need to visit a branch office to finish loan applications. You may do this from any place and simply ask permission. The process is mainly the same for all banks in the market, and the stages are as follows: Go to the lender’s official website. Fill out the online form with your data. Provide digital versions of all vital paperwork. The bank will get the papers and check their validity. If the paperwork is approved, the loan is sent to the user’s bank account. [B-02] Conclusion Paperless personal loans provide various perks for both lenders and users. By eliminating the time-consuming process of paper filing, you can save a lot of time and receive the loan amount quickly. Most of the country’s main banks offer pre-approved loans to current clients. Pre-approved credit does not need any papers since the user profile is already present with these banks. The ease of paperless personal loans has already become popular in India, and it’s expected to develop much more in the future. Check out similar blogs on Piramal Finance and explore their products and services.
08-11-2023
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Schemes

Benefits of Pradhan Mantri Awas Yojana (PMAY) to Home Buyers

Most of us want to own our own homes. Most lenders, though, offer home loans with higher interest rates. This is a big problem for the vast majority of people who want to buy a home. People who want to realize their dream of owning a home need to find the right lender and use the Pradhan Mantri Awas Yojana. PMAY is a program of the Indian government that aims to give everyone an affordable home. Pradhan Mantri Awas Yojana was started by the government of India. The goal of the program is to make housing more affordable for the urban poor so that the goal of “Housing for all by 2022” can be met. In other words, the PMAY was established on June 1, 2015, to give 20 million people a place to live by 2022. The Credit-Linked Subsidy Scheme is part of it. This helps pay for the interest on home loans that are used to buy, build, expand, or fix up residential properties. [B-01] Benefits of PMAY Scheme to Homebuyers Below are the advantages of the PMAY program: A rise in the residents’ standard of living A permanent home gives you financial and social stability, comfort, and overall better quality of life. People who are struggling financially can improve their quality of life with the help of this plan. This is because the plan brings down the cost of home loans for everyone. Successfully exploiting land whose value is declining The program focuses on getting people living in slums to move to “pucca” houses so they can have a safer future. With its successful implementation, the lost value of land next to slums can be brought back. An increase in available employment possibilities In terms of building, expanding, and improving homes, the PMAY plan focuses on a huge construction and redevelopment project. So, it will open up a lot of job opportunities in the real estate industry. Assurance of financial stability for females The program makes it easier for women to get home loans. So, there is a good chance that women can protect their financial futures by buying their own homes. Also, there must be at least one adult woman in the household who is also a co-owner of the property. On the other hand, this requirement is not needed to build a house on an existing piece of land or to add on to or fix up a ‘kuccha’ or ‘semi-pucca’ house that already exists. Advantages of conducting business in an environmentally responsible manner Under the PMAY programme, homes are built using materials and methods that are good for the environment. The developers and builders of these homes have been told to use high-quality, eco-friendly materials and to make sure that the construction sites don’t hurt the environment too much. The PMAY is a government program that has the potential to improve the lives of people who are struggling financially. People are encouraged by the government to live safely and cleanly. They get it because they meet the basic requirement of having a permanent place to live. This need can be met by giving people a place to live. What are the PMAY Program’s Features? As was already said, the main goal of the Pradhan Mantri Awas Yojana 2021 is to give everyone a place to live by 2022. In addition to this main goal, the scheme also gives its beneficiaries the following benefits: The Pradhan Mantri Awas Yojana will give people and families who live in economically poor areas priority. The PMAY programme can help women and people from groups that aren’t well-represented because its goal is to give them a place to live at a price they can afford. People from Scheduled Castes or Scheduled Tribes, for example, get help with housing as a top priority through this programme. Senior citizens can take advantage of the program. If they choose to take part, the government will give their claims for ground-floor properties more weight. People who want to take advantage of the benefits this program has to offer must first sign up for it. Also, women, especially mothers or wives, must be listed as people who can benefit from the program. Under PMAY, people from other minority groups also get a boost. People in the transgender community, people with low incomes, and widows are all thought to be in this group. Who is eligible to make an application for PMAY? The PMAY program is open to applications from the following categories of people: Individuals who are members of the Economically Weaker Section (EWS) Other Backward Class (OBC) Low Income Group (LIG) Middle Income Group-I (MIG I) Middle Income Group-II (MIG II) Schedule Tribe (ST) Schedule Caste (SC) To get help from this program, a family must have a husband, a wife, and sons or daughters who have not yet gotten married. Every adult family member who helps pay the bills should be counted as their household, whether they are married or not. [B-02] Conclusion The Pradhan Mantri Awas Yojana has a lot of benefits, and many of them depend on the type of borrower who applies for the program. When figuring out the interest rates, loan terms, subsidy amounts, and other details of the Pradhan Mantri Awas Yojana, the age of the applicant, where they live, and their current financial situation are all taken into account. Check to make sure you meet the requirements for each category. After that, carefully fill out an application for the PMAY program that fits your situation the best. This keeps you from having to go through the trouble and hassle of having your application turned down and then resubmitting it. And you can go for Pradhan Mantri Awas Yojana Gramin online apply since it is quite simple to apply online. However, if you aren’t sure what to do, talk to a financial expert like Piramal Finance. They offer business owners and professionals custom loan solutions.
08-11-2023
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Personal Loan

5 Dos & Don’ts For Getting a Personal Loan

Whatever the reason, a personal loan can provide instant access to cash. It is a type of loan that does not need any collateral to get approved. You can rely on personal loans for any purpose, be it an unexpected medical bill, tuition, or a family wedding. Here are some things you should and should not do while applying for a personal loan. These will give you a thorough comprehension of personal loans. Also, these dos and don’ts will give you considerations to take into account before applying. [B-01] Personal Loan Dos 1. Assess your reasons for taking a personal loan. You can choose from several different providers and terms when getting a loan. A personal loan can be anything from a small amount to a large sum. Thus, you should consider why you need it and ensure you fully grasp the above. This article will help you easily see the advantages of applying for a personal loan. But, before deciding on a loan type, weigh your options about interest and EMIs. Also, you must consider how much money you can afford to pay back. 2. Check eligibility. You can determine eligibility by consulting your credit records. You can also use a personal loan calculator. This will give you an idea of the range of personal loan offers you might expect to receive from lenders. The amount you get approved for depends on the lending institution and its policies. Yet, this should indicate how much money you could receive from a personal loan. 3. Check the cost of the loan. Interest rates are important. But they shouldn’t be the deciding factor when choosing a lender. Prepayment costs, processing fees, and other fees and penalties may also be applied. They can be applied once you have taken out the personal loan, so be sure to consider those as well. Thus, consider the total cost of the loan, including the interest and any associated fees. Also, consider things like the lender’s reputation and the quality of service you receive. 4. Consider interest rates. There’s not much complexity with this one. Getting an accurate picture of the market’s interest rate landscape is vital. Compare the rates offered by various lenders. A quick search will tell you the current interest rates offered by various lenders. You can also look at online resources that compile data on interest rates. You can combine this data from multiple sources into a single location. But interest rates alone shouldn’t be the deciding factor in choosing a lender. 5. Check your debt-to-income ratio. Evaluating your debt-to-income ratio before applying for a personal loan is important. Simply put, it’s the ratio of your monthly debt payments to your monthly gross income. Debt-to-income ratios above 40% might have a detrimental effect on your credit score. So it’s best to maintain yours below that threshold. It’s also wise to be sure you won’t have any trouble making regular payments after taking out a personal loan. If you take out a personal loan, you’ll need to budget extra money each month to cover the interest you’ll have to pay on top of your other bills. Thus, test this criterion to ensure you can pay your regular bills after getting the loan. Personal Loan Don’ts 1. Don’t ignore your credit score. Applying for a personal loan without checking your credit score can be costly. It is especially vital to consider your credit score if you want a personal loan with a favourable interest rate from the lender. You can incur a higher interest rate if you choose to disregard your credit score. 2. Don’t only opt for the lowest interest rate. Suppose you base your choice of lender just on the interest rate. In that case, you can miss out on other factors that could improve your loan experience. If you don’t choose your lender carefully, you could find yourself paying a lot in Hidden fees Prepayment fees Penalties Other expenses So, choose a lender that provides you with a comprehensive and cost-effective bundle. Do this after carefully considering all the other factors. 3. Don’t apply without assessing your requirements. It’s risky to apply for a personal loan without first determining if you’ll have an abundance of money or not enough. Thus, you risk failing to achieve your goals or overspending because of a surplus of finances. It’s best to take out a loan only for the amount necessary after thoroughly assessing those needs. 4. Don’t borrow from unrecognised lenders. It’s a bad idea to borrow money from somebody you have never heard of. Sometimes the urgency or scope of the need forces us to act hastily, and this can lead to errors with far-reaching consequences. Of course, borrowing money is a serious matter, so make sure you only do it from reputable sources and stay away from deals that sound too good to be true. 5. Don’t use the loan for non-essential spending. Know exactly why you need the money before applying for a loan. A personal loan allows you to use the funds in any way you like. But, it’s best to use the money for the purpose for which you borrowed it. It’s not wise to use the money from the loan on something unnecessary. It’s important to remember that you must pay back any money borrowed. That too, with interest, to the original lender. So it is best to keep your priorities straight and use the loan for necessary expenses only. [B-02] Conclusion A quick personal loan can help people get over unexpected financial hurdles. Yet, borrowers can get the most out of the credit option. They can do so if they pay attention to the dos and don’ts when filling out an application. Borrowers will incur extra costs if they are unaware of the proper procedures. Did you find this article helpful? Visit our blog for much more amazing content!
08-11-2023
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Guide

Home Loan Processing Fee 2022: Fees & charges on housing loans

Home loans are a great facilitator that helps you cover a wide range of requirements, starting from building a house to buying a house. Being one of the best ways to look for, home loans also provide some additional benefits like the flexibility to choose our loan type, tenure of repayment, and other EMI options. However, with so many good things come a bit of fees, charges, and penalties. In every type of loan, there is a considerable amount of fees and charges that are applied to them. Out of many charges that are applied on a housing loan, processing fees are the ones that account for a smaller fraction. This is charged by the lender one time for the entire loan period. Besides a processing charge, there are several other charges like prepayment charges, foreclosure charges, stamp duty charges, and various other types of penalties. Let’s find out all the fees and charges that are associated with a home loan. This article will help you skim through home loans, and the processing fees and other charges involved with them. [B-01] What is a Home Loan and What Purpose Does it Solve? As very much implied by the name itself, a home loan is a financial help that lets you buy or construct a house. Here, a lending institution goes through your documents and credentials carefully to know your repayment ability before sanctioning the loan. The lender, in return, charges a specific rate of interest on the loan amount which you have to repay within a tenure. You have the flexibility in choosing the housing loan type, the principal amount, and the tenure of repayment. Home loans are sanctioned for a longer period of time as compared to other types of loans. The period for a housing loan often ranges between 20 years to 30 years. Monthly EMI is adjusted likewise to help the borrower pay off the instalments conveniently. In India, you can take a home loan for a variety of purposes like buying a house, renovating a house, or even constructing one. Housing loans are secured in nature which means the lender keeps the house until you completely repay the loan. Now that you have known what a home loan is and what purpose it does solve, it’s time to know about the processing fee that comes with it. What is the Home Loan Processing fee that Lenders Charge? With many benefits that a home loan provides, it also comes with some extra charges and fees. Out of several charges that are applied to a home loan, processing fee is one of them. A processing fee is one of the most important and clear charges that the borrower has to carry out one time for the entire loan period. This charge is paid to the banks and the NBFCs to help them deal with your housing loan application form. You have to pay the amount to the financing institution upfront rather than expecting it to be deducted from your loan amount. It is even called an administrative loan by some lending institutions. This charge is only applied to you after your home loan application form is approved. The processing fees of most of the banks are about 1% to 2% of the total loan amount. However, it can go up to 6% in some banks. Since it is also a service charge, you have to pay GST as well. The GST that is charged on the processing fees in India is 18%. However, not every lender charges you a processing fee to cut your extra expenses. Some lenders waive this fee as a special offer to attract more customers. Besides that, these home loan charges are applied to different individuals based on their job profile and employment status. For instance, salaried persons are charged differently than self-employed professionals and self-employed non-professionals. What are the Other Charges and fees that are applied to Home Loans? Besides the processing fees, there are some other charges that are applied to home loans. Some of them are: Prepayment charges These charges are also known as foreclosure charges for preclosure charges. You have to pay this charge only if you pay your loan amount before the tenure gets completed. The amount that is charged for prepaying your loan varies between 2% to 6% of the outstanding loan amount. However, some lenders do not charge any prepayment fees to borrowers for a floating rate of interest. Stamping charges: If there is any legal document between you and your lender that has to be signed on the stamp paper for a home loan, then you have to pay the stamping fees. This charge doesn’t have a fixed number as it depends on the actual costs incurred. Legal fees: As very much implied from the name, legal fees are charged to the borrowers for covering all the legal expenses that are associated with the creation of home loan agreements. Besides these charges, there are several other charges that you have to pay during the entire process of home loan. They are income tax certificate charges, late payment fees, insurance, NOC or NDC charges, inspection fees, etc. [B-02] Summing it up A borrower has to bear several charges ranging from loan-related charges to legal and document-related charges. However, as a borrower, you should be aware of all these charges before applying for a home loan. Without the proper knowledge, these home loan charges might cause you trouble related to expenses if you aren’t prepared beforehand. You should talk to your financial advisor or a bank professional and do ample self-research before going for it. In case you want to know more about home loans, personal loans, car loans, education loans, etc. you should definitely look for it in Piramal Finance.
08-11-2023
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Tax Savings

Home Loan Tax Benefit 2022: Know The Income Tax Benefits on House Loan

The need for housing in India has increased in recent years and it can be done by home loan.Lower mortgage rates, the demand for better housing, government measures, consumers looking to enhance their level of life, and other factors might all contribute to this trend. The government launched a programme named “housing for everyone” in 2012, to complete by 2022. However, because of the extensive Covid-19 epidemic, this lofty target has yet to be met. [B-01] Home loan tax benefits and their importance Many look to the Union Budget yearly for more significant reforms and tax benefits. For as long as the government existed, it has been engaged in the real estate market. According to the Income Tax Act of 1961, consumers who take out housing loans are eligible for various tax credits and deductions. Last year, the government enacted further tax incentives for house loans and interest payments on home loans. These tax incentives will expire on March 31, 2022, but you may still take advantage of them until then. The Minister of Finance has proposed extending the deadline for housing loan tax incentives until March 31, 2024. Mortgages closing in 2022 will be eligible for these home loan tax benefits. The budget benefits the real estate business but also helps those looking to purchase a house. First-time homeowners may deduct mortgage interest. The home loan deduction will be available for interest and principal payments beginning in 2022. Mortgage interest may be deducted from taxable income under Sections 80C and 24(b) of the Income Tax Act. People who take out house loans are provided with tax advantages under Section 80C of the Internal Revenue Code. You may deduct Rs 1.5 lakh from your income tax in 2022 for a housing loan. This deduction may be made once a year from the portion of each mortgage payment that goes toward principal reduction (EMI). However, if the principal amount paid in a single year is less than Rs. 1.5 lakh, only cash payments may be deducted. All registration and stamp duty expenditures paid throughout a fiscal year may be repaid in one payment of the home loan. You may deduct these expenses from your taxable income under Section 80C, but you can only claim Rs. 1.5 lakh per year. According to Section 80C of the Income Tax Act, a home loan deduction may be claimed even if the house is still under construction. To qualify for this deduction, the property in issue must not be listed for sale until the end of the fifth fiscal year after the year it was purchased. If the taxpayer of the home loan sells the property during the first five years of ownership, any deductions claimed on the parcel before the sale are null and void. The amount deducted from the selling price is added to the taxpayer’s taxable income in the year of purchase. Section 24 of the Internal Revenue Code provides tax advantages for homeowners who get mortgages. According to Section 24 of the Internal Revenue Code, homeowners may deduct mortgage interest from their taxes. You may deduct up to two lakh rupees from your monthly taxes to pay off the interest on a housing loan for properties that are still being constructed. However, if the interest paid is less than two lakh rupees, just the interest paid may be deducted. Taxes paid to a municipal corporation by the owner in a particular year may be subtracted. This is true whether or not the deduction was divided into sections. Some homeowners may reduce their tax bill by taking advantage of the advantages available when they rent out their primary residence. The yearly net value of a home loan may be deducted from taxable income at a rate of 30%. A home’s “net yearly value” is the amount left over after paying state and local taxes. You may claim a 30% discount regardless of how much you spent. However, in addition to the standard deduction of 30%, homeowners may deduct mortgage interest as a home loan tax benefit. Non-profits and educational institutions and assets utilised in a trade or company are not eligible for the standard deduction since they have no yearly net worth. Before the Section 24 benefits may be utilised, the building on the land in issue must be completed. This pre-construction contribution is divided into five equal instalments of home loan and Section 24 states that all of them are tax-deductible once the structure is completed. However, these write-offs only apply to mortgages made on or after April 1, 1999. Section 80EE provides tax benefits for first-time homeowners. You may deduct up to Rs. 50,000 in interest each year under Section 80EE of the Internal Revenue Code, which provides tax advantages for house loans. This discount does not apply to residences valued at more than Rs. 45 lakhs. To qualify for this tax advantage, the mortgage amount on your property must be at least Rs. 35 lakhs. This price reduction applies to homes that are still under construction. This promotion validates mortgages closed between April 1, 2016, and March 31, 2017. The house must be the buyer’s first residence at the time the loan is granted. People who take out home loans are eligible for tax breaks. The Union Budget for 2019 contains Section 80EEA tax benefits to stimulate the construction of low-cost housing solutions by Article 80 of the Energy Efficiency and Conservation Act. Homeowners with modest incomes might benefit from an additional tax cut on mortgage interest. This home loan tax benefit is for first-time homeowners whose income falls inside the “affordable housing” level. If you match the conditions, you might earn up to Rs. 1.5 lakh in interest. You must fulfil the following qualifications to be eligible for Section 80EEA low-cost housing: A joint owner’s mortgage interest may be deducted in its whole. Each co-owner may remove their portion of the mortgage interest. They should be making EMI payments for the deduction to be most beneficial for housing loans. Both applicants are eligible for up to Rs. 2 lakh in home loan interest deductions under Section 24. (b). If the principal payments exceed Rs. 1.5 lakh, you may claim a tax deduction of up to Rs. 30,000 under Section 80C. Each applicant may deduct an additional Rs. 1.5 million from their taxable income if they were the first to purchase the property in issue and otherwise satisfy the Section 80EEA conditions. If both borrowers of home loans fulfil the requirements of Sections 24, 80C, and 80EEA, they will each be entitled to an Rs. 10 lakh (Rs. 5 lakhs) yearly tax advantage relating to their house loan. You must have a mortgage loan to qualify for this perk. [B-02] Summing up Many individuals want to possess their own house. Many financial institutions offer a variety of home loans that may help make this goal a reality by providing cheap interest rates, a simple application procedure, and tax incentives. You’ll realise whether a loan is feasible for you and if it will aid in advancing your company’s ambitions. Instead of doing the arithmetic by hand, let technology do it for you. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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Home Loan

Home Renovation Loan: Apply Mortgage Loan for Home Expansion

Want to find the best home renovation loan? Is it good to apply for a home renovation loan? What is the fastest way to get a home renovation loan? A mortgage loan may be used for anything linked to buying real estate, such as constructing a house, purchasing one that has already been constructed, or holding a reserve on an undeveloped property. Most of India’s leading banks provide these loans, commonly known as “home renovation loan.“ Furthermore, home-building loans are not the same as loans for purchasing a home or property. These three sorts of home renovation loan each have their own set of restrictions and criteria and distinct interest rates. There are also several loan repayment terms available. A construction loan is authorized and paid out somewhat differently than a conventional mortgage. [B-01] How would you define a construction loan? Someone who already owns land may get a mortgage to construct a home on it, whether they wish to do it themselves or hire a constructor. These loans are often referred to as “ mortgage loan.” A home renovation loan is when someone borrows money to purchase or construct a house for themselves or their family. This loan may be granted to you provided you put aside a particular percentage of your monthly income to repay it. Most house loans allow consumers to borrow up to 80% of the home’s worth. Section 80C of the Income Tax Act allows you to deduct mortgage interest from your income. Eligibility criteria Everyone wants to buy a home at some time in their life. You’ll need your own home if you want to have a family or operate a professional real estate firm. You can achieve your objective by obtaining a mortgage loan to purchase a house, build a house, or complete a building. Customers may get these loans from various financial organizations, including banks. These home renovation loan may be useful while preparing to settle into a permanent residence. However, you should be aware that construction and mortgage loans are not the same things. Anyone seeking a house loan must fulfill the following criteria: People here range in age from 18 to 65. You must be an Indian citizen, whether you reside in India or not, to be eligible (for NRI). There are both salaried employment and freelancing or contract labor. Excellent credit is defined as a credit score of 750 or better. Minimum monthly salary: 25,000 Indian rupees (about $360). The Required Paperwork You must prove ownership to the lender if you want a loan to build a house on your own land. These are needed with KYC and income proof for a home improvement loan. The owner may own the land outright or have received it from CIDCO or the Delhi Development Authority. A home renovation loan may be feasible if the lease is long and in good standing. Along with the deed, you must produce a certificate certifying the property is lien-free. Before starting construction with a home renovation loan, the gram panchayat must approve the house plans. A civil engineer or architect must also submit a verified cost estimate. If the lender is happy with your overall eligibility and cost estimate, they’ll issue you the loan on the standard terms and conditions. Spending money on extras The desired mortgage loan amount decides how much of the borrower’s money will be utilized to construct the home. This is standard procedure for every mortgage loan. If it applies, the cost of the newly purchased plot will be added to the overall cost of home renovation loan.This would only occur if the land were purchased lately. However, if you inherited the plot, received it as a gift, or purchased it a very, very long time ago, the value or cost of the plot will not be utilized to determine how much you must pay. This holds in all three of these cases. There are a few things to consider while looking for a home renovation loan To calculate the monthly payment, use the following formula: Home renovation loan applicants must agree to make equivalent monthly installments (EMIs), a series of monthly payments covering both the principal and interest on the loan. The most crucial thing is calculating how much EMI you must pay and comparing it to your income. This review might reveal whether or not the consumer can make loan payments with his existing earnings. Rate of Interest: You can acquire a loan for nearly anything, and the interest rates will vary. The interest rate rises as the home renovation loan period lengthen. The correct organization: You can get a home renovation loan from many places, like banks, credit unions, and other financial institutions. If a borrower wants their loan application approved, they should work with a company with a good name. How to Get a home renovation loan effortlessly? If you want a home renovation loan to construct a home on a property you own, you must confirm with the lender that you have the right to own the land. These are necessary for addition to “know your customer” (KYC) and evidence of income. How much can I borrow to construct my house? Some home-buying home renovation loan might cover up to 90% of the home’s worth. Can I receive a mortgage to construct a home before deciding on a location? If you’re still undecided about the property but want to apply for home renovation, it’s better to get pre-approved. Your income, credit score, and other variables determine this loan. They can apply for funds to construct a home if approved for the mortgage loan. [B-02] Conclusion A home renovation loan can be taken out by both current homeowners and new people. Most banks offer this as part of their services for home improvement or home loans. Users should always look into things on their own. There are also more in-depth, educational articles on Piramal Finance.
08-11-2023
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Other

How Can I Create Multiple Sources Of Income In India?

To ensure financial security most people desire multiple sources of income. Secondary income sources need as much of your time or effort as your main source of income. Offering services that people are ready to pay for or investing in avenues that can grow over a period of time are two ways to create multiple sources of income. [B-01] Multiple sources of income in India Earning money from sources where you don’t have to work, such as rental homes or businesses, is known as passive income. Essentially, this is cash you may get without much “active” work. The main goal is to enjoy yourself while earning money through multiple sources of income. To create something that would enable you to earn money later on without doing more labour, you must spend some time or money initially. There are two different passive income streams in India. The Proven Approach Fixed-interest deposits: They help generate interest income. If you increase the principal amount, the interest income will also grow. Rental Income: In India, renting out a property is a great way to earn money. This will help with paying the mortgage and keeping the house in top shape. Dividends From Shares: Shareholders get dividend payments at regular times. It’s important to learn that the amount of money you get depends on the number of shares you own. Real Estate Investment Trusts: “REITs,” is a common name for them. For instance, you own REITs in a company that invests in developing an IT Park. The company also earns rental income from tenants. So, you will receive dividends equal to a portion of the rental income. This is a fantastic source of income. Mutual funds, bonds, futures, and options: Initially, this method doesn’t need a lot of work or resources. However, if you let the amount grow over time, it will start to earn interest for you. Modern Day Approach Creating multiple sources of income involves exploring new online regions through creative thinking. It is sometimes referred to as “online passive income” since it you generate it online. There are many creative ways to make money this way. The following are a few examples: YouTube Videos: Posting videos on your YouTube channel is a good way to make money. You should always publish new videos to stay ahead of the algorithm. This is a reliable source of income. Vlogs: Investing a lot of time, effort, and money in a blog or vlog is not funny. You must work hard for at least two years before you can create multiple sources of income. Online instruction, e-books, forum posts, and periodicals: It takes a lot of time and work to produce a podcast or online course that can be sold. Understanding the basics is crucial in this situation. Affiliate programmes and related projects: Affiliate marketing is a process where you are paid to promote some products or services. You can earn between 3% and 9% if someone clicks on the link and makes a purchase. This source of income is reliable. Internet advertising: Success in business on the internet is challenging. Instead, it ushers in a long and challenging journey. Acquiring the knowledge and skills necessary to make a living takes time and effort. Consequently, many people who want to start their businesses have found legitimate and effective ways to make passive income online. Benefits of Multiple Sources of Income Here are some benefits of having multiple income sources: – You stop focusing on how to provide for your basic needs when you make more money. You may stop looking for a new job if your passive income covers your daily costs. It is feasible to quicken the process of reaching goals. You can easily accomplish major goals like getting a house or car, starting a family, or others. You can work at your convenience, when and where you choose. Your intellect and dedication will influence how well you do financially. You now have more time to engage in your favourite pastimes while not working. You can earn passive income even while you’re not working. As a consequence, you have more time for leisure. You feel more secure when you have passive income, which improves your self-esteem. A safety net, such as passive income, may be helpful if a regular source of income suddenly disappears. Last but not least, your skills can develop to the point where they might be used to help others more effectively. Funding is necessary To make multiple sources of income, you must invest money upfront. Most of the avenues need you to invest some funds, such as buying stocks, bonds, or company shares. It would help if you initially spent a certain sum as then you have more chances to create multiple sources of income. The effect of market conditions Almost all surplus income is very dependent on the status of the market and economy. Both of them respond more to events beyond your control than the goals you set for yourself. For this reason, they are risky ways to make money. For instance, you cannot change the value of the stocks you have bought. Additionally, you need the legal ability to force someone to take up renting. Therefore, changes in the external market might affect multiple sources of income for you. [B-02] Summing up Now you know the benefits of multiple sources of income. Based on your preferences and level of risk-taking, you may choose the one that is best for you. Work toward your goal after deciding how much money you want to make in a certain amount of time. Be bold and choose the most practical way to earn more money. Visit Piramal Finance to gain new skills and knowledge to improve your chances of making money through multiple sources of income.
08-11-2023
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