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Personal Loan

How To Get A Personal Loan In Minutes

You can get an instant personal loan from a lender or a financial institution. It can be used for personal expenses. Some examples of personal expenses include buying consumer electronics and appliances, paying medical bills, and going on vacation. In an instant personal loan, the borrower gets the money at a fixed variable interest rate for a specific period of time. However, the borrower doesn’t have to put up any kind of collateral or asset as security for it. This kind of loan is also known as an unsecured loan. After that, it’s up to the person who has availed of the loan to pay back the full amount in monthly payments that they can afford. [B-01] Types of Personal Loans There are two types of personal loans: secured and unsecured. Let’s learn more about them. Secured A personal loan is considered to be secured if the borrower has to put up some form of collateral to get the loan. You might be able to avail of a personal loan if you have a savings account in a bank or a Certificate of Deposit (CD). Furthermore, you can also avail of a loan if you have a car or some other assets that can be used as collateral. If you can’t repay the loan, the lender can keep any collateral you put up for it. Unsecured An unsecured personal loan is not backed by anything. Since there is no collateral to collect, financial institutions usually see this as a riskier option. This could also mean that the borrower will have to pay a higher interest rate. Why Should You Apply For Personal Loans? Considering that there are many top-rated lenders, you can get an unsecured personal loan with the lowest interest rate. It also has many other benefits, such as: As soon as your application is approved, the money is added to your bank account. It gives you the freedom to choose how long the loan will last. If you applied online or via an online lending platform, you can view the status of your application. You can also get any help you need 24×7. There are minimal paperwork requirements to meet. The interest rate is set and stays the same throughout the loan tenure. You will not have to provide any security or collateral. What is The Most Money You Can Borrow? The most you can borrow depends on how much money you make. Most of the time, lenders approve loans based on their calculations, so that your EMI doesn’t come up to more than 40% to 50% of your monthly income. The amount of the loan is also based on whether or not you have other debts to repay. If you own a business or work for yourself, the lender will decide your loan amount on the basis of your profit and loss statement. On the other hand, as a salaried professional, the lender will look at your salary and other debts to find the best loan amount for your needs. How Can You Get an Instant Personal Loan in Minutes? Obtaining an instant personal loan from any lender is now much easier than it was a few years ago, thanks to the integration of online and digital services. Individuals can now apply for a personal loan online in minutes using net banking or mobile apps. The loan disbursement process has also become more efficient and quick. If an applicant provides accurate information to the lender, the loan could be disbursed within a week or a couple of days. You can follow the steps listed below to avail an instant personal loan: Step 1: Establish what you need. Decide why you require a personal loan and the amount you require. Ensure that you only borrow what you need. Step 2: Obtain the application form for the personal loan, and fill it out with all the required information. Step 3: Provide the necessary documentation. It will substantiate your identity, income, age, and address. Step 4: The lender will then review your application and validate the submitted documents. Step 5: If the lender determines that you are eligible, the loan amount will be deposited into your bank account. This will be done within a day or week depending on the lender. Required Qualifications For an Instant Personal Loan Those who want an instant personal loan have to meet the following qualifications: You must work with private limited companies and public sector workers, including those from central, state, and local bodies. People between the ages of 21 and 60. People who have worked for at least two years, including at least one year with their current employer. Those who have a net income of at least Rs. 25,000 per month. Documents Required to Apply for a Personal Loan Even though the documents needed depend on the lender, here are some of the most important ones you must send with your application form: Income proof (salary slip, bank account statement, ITR forms) Identity and address proof (Aadhar card, Voter ID, PAN card, utility bills, rent agreement, etc.) Official copies of your diplomas and license (only applicable for self-employed applicants) Can You Avail of a Personal Loan With Someone Else? You can apply for an instant personal loan with your spouse or any other family member, like your parents or siblings. When you opt to apply with a co-borrower, the lender will take into account both of your incomes when deciding your loan amount. This means you can apply for a loan with a higher amount. But you should be aware that if your co-borrower has a poor credit score, the lender might turn down your loan application. [B-02] Conclusion One of the most popular and known types of loans taken out in the modern era is an instant personal loan. Personal loans have a great number of benefits, but there are also several other factors that contribute to their popularity. These loans can be used as per your financial needs and go a long way towards reducing your financial burden. For more such blogs on instant personal loans, visit the Piramal Finance website. They also offer a variety of products and services for you to choose from.

08-11-2023

Personal Loan

How to Get an Instant Paperless Personal Loan Online?

Banking and non-banking financial institutions offer paperless personal loans to help you with urgent needs. Paperless personal loans are the best way to get some extra cash when money is tight. You must first determine what you need and choose the best type of paperless personal loan. Finding the right lender is necessary when you need a personal loan, especially if the interest rates are reasonable. Here are some tips to help you decide which paperless instant loan is the best. What are the things you should consider when choosing a paperless personal loan? 1. Documents You must provide digital copies of all the paperwork, like bank statements, income statements, and ITR reports. The documents should be submitted with your application. You can submit these documents as scanned documents (PDF) or images. However, some lenders may ask you for specific file formats. 2. Interest rates You may be offered an interest rate of 11 to 22%. The interest rate you are offered depends on your credit history, income and credibility. Your income and credit history influence the interest rates the most. 3. Fund distribution The principal amount is transferred directly to your account as a single payment. You are not required to do any additional formalities. This is the benefit of an online paperless personal loan. However, it also means you must provide the correct bank details. What are the benefits of a paperless personal loan? One of the best things about an immediate paperless personal loan is that it does not need any assets as collateral. It implies that you do not have to give the lender anything as security for the loan. Since the loan does not need any collateral, it is beneficial for those who do not have assets or strong finances. Because it is a paperless personal loan, the entire procedure is online. You will not have to request documentation. You will not have the stress of filling out forms, waiting in lines, and putting in time and effort to get approved. The paperless process is much more efficient and quick. Once your online paperwork has been confirmed, the personal loan transfer will happen swiftly. Several lenders also provide pre-approved loans to customers with existing profiles. These types of loans require even less documentation. You may not have to submit any documentation if you have a credit history with the lender. Other loans can only be used for specific expenses. For example, you can only use a car loan on your car. On the other hand, a paperless personal loan can be used for anything. You can use the borrowed money for medical expenses, vacations, marriages, education, etc. Who is eligible for an online paperless personal loan? Anyone can apply for a paperless personal loan. You must only meet the lender’s criteria to be eligible for a paperless personal loan. Different lenders have different eligibility criteria for a paperless personal loan. However, some of the criteria include the following. Your age must be between 21 and 60. Your credit score must be at least 700. This varies depending on the lender. Some lenders may accept higher or lower credit scores. Your monthly salary must be at least INR 25,000. Self-employed applicants and business owners should have a gross annual income of at least INR 5 lakhs. Salaried employees should have worked for at least 12 to 24 months before applying for a loan, and self-employed individuals should have run their businesses for at least three years before applying for a loan. How do I apply for a paperless personal loan? Getting a paperless personal loan is simpler than submitting a physical application. Visit the lender’s website and look through the loan options. Find paperless personal loans. Please review the lender's eligibility criteria and the documents you need to submit. If you do not have all the documents, collect them. You need to submit soft copies of these documents. Fill out the application form and upload the required documents. Once your application is checked, you will receive an e-approval. Some lenders check applications within minutes, but others may take 2-3 days. For more information, you can contact the lender’s helpline. You will receive a proposal from the lender. The proposal will include all details, such as the interest rate offered, EMIs, principal amount offered, conditions, and fees. Read through all the documents before you accept the proposal. Look through the charges you may have to pay. Some lenders charge pre-payment and foreclosure charges. Also, look through the default charges and delay fees before accepting. If the terms are to your liking, accept the proposal. The principal amount will be credited to your bank account. Who can acquire a personal loan if they do not have new documentation? Lenders often give personal loans without documentation to current clients. For example, your bank may offer you a paperless loan since they already have KYC data such as PAN card, Aadhar card, residence details, income details, debt repayment history, etc. Lenders may also provide you with pre-approved personal loans. However, this depends on your profile. There is no guarantee you will be offered a no-documentation loan. Collecting all documents before applying for a paperless personal loan is best. [B-02] Conclusion Lenders and borrowers can benefit from paperless personal loans in many ways. Personal loans have recently undergone significant changes and offer swift processes. Paperless loans can help you get any loan you need swiftly.

08-11-2023

Personal Loan

Checklist for First-time Applicants of Personal Loans

In times of financial crisis, a personal loan is a unique product that can quickly give you access to funds. The loan can be put toward anything you need, no matter how big or small. Due to this, personal loans are hugely successful in India. Personal loans are becoming more widely available from banking and financial firms. Technology has facilitated the distribution of this type of loan in many ways. The funds from a personal loan get transferred into your account within a few hours. If this is your first time applying for a personal loan, there are a few things you should bear in mind. Please refer to the following checklist to apply for a personal loan. [B-01] Checklist for First-Time Applicants Choose a Reliable Lender Many banking and non-banking financial institutions are available to consumers today. Personal loans from these banks and credit unions might be quite appealing. But that is the case only if you take the time to shop around and get the best deal. It’s simple to be swept up in the glitz and glamour and forget to check the fine print. Thus, as part of an efficient personal loan checklist, you should: Carefully research offerings from reputable lenders Evaluate the various possibilities Make an informed decision. Get the Necessary Paperwork Involved Proof of Identity It might be anything from a birth certificate, a passport, a driver’s license, a PAN card, or an Aadhaar card. All these will suffice as identification proof if necessary. Proof of Address For communication purposes, the bank needs to verify your current address. You can use utility bills, a passport, a bank statement or passbook, and an Aadhaar card as proof of residency. Proof of Employment The bank doesn’t need collateral for the personal loan. But it still needs assurance that you can pay it back. Thus, you will need all your employment information for this purpose. For this, you need two forms of identification as proof of employment: Employee identification card Employee company card Duration of Employment You graduate, land a job, and soon realize you must make a major purchase: a car. Due to the short term of your employment, the bank cannot approve your loan. The smallest length of employment required by banks is 12 months. Work Experience The bank will want to know that you have been a reliable worker. And you’re not someone who has taken extended breaks from work or been unemployed for a long time. Thus, you will need to provide letters of recommendation from former employers. The Credit Report A loan default can look very bad on your application. The bank will contact your banking relationships to verify your credit history. Form 16 from the current and prior years may be required under certain circumstances. After applying for a personal loan, the bank will only approve it if: They have confirmed that they can count on you to return the money. After you’ve verified all the information, you’ll get the loan. The lender urges the borrower to make every attempt to repay the debt. Forget about damaging your credit score; this option will get that debt off your back for good. Any application for a loan, including a personal loan, requires supporting paperwork. When applying for a personal loan, the standard documents requested by lenders are: Evidence of identity Proof of income Recent bank statement. Suppose this is your first time applying for a personal loan. In that case, you can make the procedure go much more quickly and smoothly. You can do this if you compile and have ready all the necessary documents at the time of application. Analyze the Fees and Charges The acquiring costs of a personal loan are included in the interest rate. Foreclosure fees, processing fees, prepayment fees, and many more fall under this category. Before applying for a personal loan, you must be aware of these fees. That’s because failing to do so can cause you financial hardship down the road. Evaluate the Interest Rate There are a large variety of financial institutions that offer personal loans today. Lenders frequently use fixed interest rates to entice a customer base. As a result, buyers can feel they have secured the most advantageous loan terms possible. But, a flat rate is not very beneficial. That’s because it does not consider the decreasing balance after each EMI payment. The interest added to the total amount you owe will make your pay significantly greater. Yet, before agreeing to the terms of a personal loan, calculate the interest component. Think About Your Liabilities A personal loan can be a useful source of quick cash in an emergency. But be sure to factor in any other loans you may already have. A firm grasp of your debt-to-income ratio is crucial. It is especially important to make payments on several loans and credit accounts. If you’re struggling to make ends meet, taking out a personal loan won’t help. And it will have a bad effect on your credit score. So, you should only apply for a personal loan if your debt-to-income ratio is 30% or less. Make a Repayment Plan Learn the terms of the repayment plan before agreeing to a personal loan. Your repayment strategy should be clear. For example, use a personal loan calculator to determine your EMI for a set loan amount. You must input your desired loan amount, interest rate, and term length to get a loan. Then the system for the due amount will automatically generate an EMI. And it is helpful to know the payable EMI to organize payments for your personal loan. Request Information on Foreclosure Procedures A loan foreclosure occurs when you settle your loan before the conclusion of the loan’s term. Lenders have established various procedures to prevent default on a personal loan. For example, lenders assess some prepayment penalties when you pay a loan early. That’s because they will not receive the sum they would have gotten from the loan’s interest payments. As a result, before applying for a loan, investigate the regulations about foreclosure. Also, you will thoroughly comprehend the costs involved in closing your loan in the future. Maintain a Record of Hidden Terms and Conditions Personal loans are very attractive due to the attractive rates and terms you get. But before you sign anything, make sure you read the fine print and check all the conditions. If you don’t thoroughly consider these factors, your financial plans may need adjusting. [B-02] Conclusion A personal loan is a savior in times of need. However, people new to the loan industry may have problems applying for the first time. The factors above are critical for any individual applying for a loan for the first time. You can rest assured that you will have a positive lending experience. Moreover, you’ll have access to funds whenever you need them if you follow these steps.

08-11-2023

Business Loan

How to Get a Collateral Free Business Loan with Ease?

A collateral free business loan is one of the easiest ways to resolve a financial crisis. These loans do not need you to provide any security. This makes them convenient. Besides, the lender does not have to check assets, making it quick to approve. Whether it is a startup or a large-scale business, the need for urgent funds can come at any time. Getting a business loan is time-consuming due to the lengthy procedures. This is where collateral-free loans can come to your rescue. This blog will explore how to easily get a collateral-free business loan. It will also discuss vital aspects to consider in a lender to get a collateral-free business loan. [B-01] Easy Ways To Get Collateral Free business loan. Getting approval for a collateral-free business loan might be difficult. So following these steps can help you get collateral free loans for your business. Research different lenders You must find the right lender when getting a collateral free business loan. The market is filled with lenders. But the question lies, which lender is ideal for you? You must look out for key factors when deciding on a lender. Check interest rates, features, customer services, repayment tenures, foreclosure charges, etc. Determining the foreclosure policy of any collateral free business loan is vital. This is because some lenders do not allow prepayment of your loan. Others might charge you a certain amount to clear your loan before the repayment tenure ends. But you will also find some lenders that allow you to prepay your loan at zero extra cost. These lenders are the best to go for. Since you will repay your loan in advance, you can save on the interest amount. Yet, if the lender charges extra for foreclosure, it might disrupt your savings. While this is one example, lenders offer several other benefits on collateral free loans. Detailed research will ensure that you select the most affordable and flexible loan. Fulfil The Eligibility Criteria There is a specific eligibility criterion for collateral free loans for businesses. The standards might differ for various lenders. Ensure that you check the lender’s eligibility needs. Also, check if you are a good fit for the lender. Otherwise, you might waste your time if the loan application is rejected midway. Once you know all the qualifying aspects, start preparing for the loan application. Matching the lender’s eligibility criteria will help boost the approval process. Besides, fulfilling the lender’s business loan criteria will help them trust you. This can speed up the loan processing. Maintain a Good Credit Score A good credit score is crucial to getting a collateral free business loan. Credit scores signify a history of paying debts on time. A good credit score can restore the lender’s faith in your loan application. Also, a proficient credit score determines your business’s credit stature. A credit score above 750 will reflect while the lender reviews your application. Gather All The Necessary Documents Every lender has a list of vital documents required to approve a collateral free business loan. The primary ones are KYC details, bank statements, and business proof. These will help the lender verify the authenticity of your business. Besides, these documents are beneficial to learn the capacity to generate profit of your business. The lender must know if your business can afford to pay the entire loan amount with interest. This is because the lender will not have any business assets to cease if you fail to pay the loan. You should note that missing out on even one document can lead to the rejection of the loan application. So once you find a lender, go through their list of required documents. Arrange each document and line up the paperwork. Sometimes, the presence of all documents also helps your application stand out. It may encourage the lender to approve it instantly. Consider These Points Before Choosing A Lender For Collateral Free Loans While collateral free loans are easy to find in the market, their approval process can be tricky. Consider the following points before picking a lender: The Process Must Be Transparent One of the main reasons to get a collateral free business loan is the urgent need for funds. Since it is time sensitive, you need to choose a lender with transparency in their procedure. The longer it takes you to figure out the procedure, the later you will have funds in your hand. Also, ensure the lender has no hidden conditions and is clear about their policies. This will eliminate the surprise factor and help you plan a fixed budget for loan repayment. Minimal Paperwork Should Be Needed The lender must ask for minimal documentation. Often, banks demand excess paperwork, which is not needed. Besides, you might not have those documents if you own a startup or are self-employed. If you conduct proper research, you will find a lender who asks for minimal paperwork. This will help you get a collateral free business loan with ease. Besides, it will save you time from arranging documents that are not needed. Quick Loan Approval When you approach a cooperative lender, it helps you get collateral free loans for MSME faster. Search lenders that use the latest technology in their firms. Select a lender with potent systems and helpful staff, so they enable you to get easy approvals. Sometimes lenders do not have a well-informed or cooperative staff. This can slow down the overall procedure of your collateral free business loan. As a result, you will have to delay your business expansion and growth. [B-02] Conclusion Business loans are vital for any business. When you apply for a collateral free loan, you must prove your business’s credit. To avail of a collateral free business loan, you need to gain your lender’s trust. So if you want the loan process to be easy, conduct proper research. Comparing lenders helps you get a collateral free business loan that meets your requirements. Visit Piramal Finance for more blogs like this one, and take a look at the products and services they offer as well.

08-11-2023

GST

How to File GST Return Online in India?

Usually, a taxable person registered under GST has to file a GST return. You can take the help of the GST portal to file the return every month, quarter, or year. It depends on the type of business and option chosen. You have to report sales, purchases, and taxes paid and collected in this return. Through a systematic taxation system like the GST, services for taxpayers like registration and filing returns are now hassle-free. Following the rules is now easy as they are clear and simple to understand. Taxpayers individually can use four different forms to file GST returns. The returns are for outward supplies, purchase returns, monthly returns, and annual returns. Some taxpayers choosing a “composition scheme” will have to send tax returns every three months. All tax returns will have to be filed online. [B-01] Who should submit a GST Return? All businesses under the GST system have to file a GST return. Depending on the type of business, the filing process must be figured out. The enrolled dealer who has made any of the following acts in business has to file a GST return: Purchase. Sales. Input Tax Credit for the GST paid on the acquisition. Sales tax on services and goods (on Sales). Sometimes it may happen that there are no transactions in the business yet the registered person has to file a nil return. How to File an Online GST Return? The following are the steps you ought to take to file your online GST return: Step:1 Visit the GST site (www.gst.gov.in). Step: 2 Your state code and PAN determine your 15-digit GST ID. Step: 3 The GST website or software can be used to do invoice uploading. Every invoice will be given a number that serves as a reference. Step: 4 After invoice uploading, you must file an inward return, a cumulative monthly return, and an outward return online. If you make any mistakes, you can fix them and file the returns again. Step: 5 File the supply returns outwardly on form GSTR-1 through the section of information of the GST Common Portal (GSTN) by the 10th of the next month. Step: 6 The recipient can see the detailed information of the supplies sent out through the supplier in the GSTR-2A. Step: 7 The recipient must check, confirm, and change the information about outgoing supplies. They also have to file information about debit or credit notes. Step: 8 The recipient must file the GSTR-2 form with information about taxable inward supplies of services and goods. Step: 9 The recipient can make changes to the detailed information of incoming supplies and send them to the supplier in GSTR-1A. The provider could either reject or accept these changes. Different Kinds of GST Returns Underneath The New Law List of GST returns in India when they must be filed, and how often: – Form Of ReturnWho needs to file and why?Time Of FilingDue dateGSTR-1A taxable registered supplier must report supplies of taxable services and goods outwardly as they occurOn a monthly basis11th of the existing month.GSTR-2A taxable registered receiver must claim the input tax credit for taxable services and goods that come into the business.On a monthly basis15th of the existing month.GSTR-3A taxable registered person has to file a return every month with details of outgoing and incoming supply and tax paymentsOn a monthly basis20th of the existing month.GSTR-4The composition supplier of components should file a return every three months.Quarterly18th day of the month following the upcoming quarter.GSTR-5Return for the non-resident taxable personOn a monthly basis20th of the existing month.GSTR-6Return for input distributor for servicesOn a monthly basis13th day of the existing month.GSTR-7Return is to be filed by authorities that deducted taxes at the source.On a monthly basis10th of the existing month.GSTR-8Tax collectors or e-commerce operators have to report suppliers and taxes collected.On a monthly basis10th day of the existing month.GSTR-9Registered taxpayers should file a return annuallyAnnual31st day of December of the following financial yearGSTR-10Taxpayers with cancelled or surrendered registrations must file a final return.Once GST registration is terminated3 months after cancellation or order, which is later.GSTR-11UIN-holders demanding refunds must submit inward supply details.On a monthlybasis28th day of the month, after the statement filing month Types of Forms of GSTR and Their Meaning GSTR 1 A taxable registered supplier has to fill out the GSTR-1 form. The person must provide information about the services and goods sold or given away. The provider fills out this form. The buyer must check the information and make changes if necessary. Then the buyer can fill in the form. GSTR 2 A taxable registered recipient must file the GSTR-2 form with information about the services and goods that came into the business. GSTR 3 A taxpayer who is registered has to file the GSTR-3 form with information from the GSTR-2 and GSTR-1 return forms. The taxpayer must check and do any changes that are needed. GSTR 4 Those taxpayers who opted for the composition scheme must fill out the GSTR-4 form. With the scheme of composition, small-businesses-owning taxpayers with a maximum turnover of Rs. 75 lakh can pay the tax. At a turnover percentage that is fixed, the rate depends on the nature of the business. According to this scheme, taxpayers won’t get a credit for taxes already paid. GSTR 5 All non-resident registered taxpayers must fill out the GSTR-5 form. GSTR 6 All taxpayers registered as Input Service Distributors must fill out the GSTR-6 form. GSTR 7 All taxpayers already registered, required by the GST rule to reduce tax at the source, must fill out the GSTR-7 form. GSTR 8 Under the GST rule, every e-commerce business that needs to gather tax at the source must fill out the GSTR-8 form. According to Subsection (1) of Section 43C under the Model of GST Law, this form will list detailed information on the sales made and the amount of collected tax. GSTR 9 Normal taxpayers file the GSTR-9 form and list their annual income and expenses. This information will be put together differently to match the returns every month. The taxpayer can change any of the provided information if they need to. GSTR 10 Any taxpayer who wants to get rid of their GST registration file a GSTR-10 form. GSTR 11 The GSTR-11 form must be filled out by anyone who has been given a UIN or Unique Identity Number and wants a refund of paid taxes on incoming supplies. [B-02] Conclusion The taxpayer will be penalized for late filing. According to GST Law, the late fee is Rs.100 per day for each CGST and SGST. The daily fine is Rs. 200. This rate is subject to change and will be communicated. Maximum fine: Rs. 5,000. IGST has no late filing fees. So fill out your GST Return today! Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Mutual Funds

How to Choose Mutual Funds for the Short-Term?

Short-term mutual funds are one of the most popular ways to invest. They can be used by new and experienced investors. All you need to know is the basics, and you should be willing to learn more to make well-informed decisions. A mutual fund is a way to invest that combines the money of many investors into a single pool to make an investment product. The fund manager can then use this money to buy stocks, gold, bonds, and other securities. The fund manager maintains a ratio among these investments, which gives the mutual fund a specific interest rate. As a result, different mutual funds are used for different goals. How to choose the best short-term mutual funds for your investment? This article will help you through the selection process. [B-01] Step-by-step process of selecting a short-term mutual fund 1. Know your goal. The first stage in selecting a short-term mutual fund is determining your investment objectives. They include the amount of time you plan to hold the fund, the rate of return you expect, and so on. But even if you do not have a clear goal, you do not have to cut your journey short. For example, a higher education, a down payment on a house, or even retirement can be a goal. A mutual fund’s category—debt, equity, or hybrid—can be narrowed down based on your desired outcome. 2. Research the mutual funds before selecting. When it comes to choosing the right mutual fund, there are many things to think about. You need to consider your return expectations, risk appetite, financial goals, investment knowledge, etc. You can judge the investment by its historical behaviour, operating margin, the fund manager’s experience, and more. Before you start investing, you should do some research. This will help you make a better decision and give you a better idea of “what’s what” in the mutual fund world. 3. How much risk can you take? Every investment is subject to some level of risk. One of the primary objectives of any investor should be to reduce that risk while simultaneously increasing the potential for return on investment. It is imperative that when investing in short-term mutual funds, you select investments that expose your capital to the least amount of risk feasible. This is because, with a goal of less than one year, you may not have enough time to recuperate from any losses. 4. Decide how much money you can invest. When you need to reach your goals in a short period, you need to make swift and surefire investments and get your money back. In mutual funds, the “lock-in period” is the period when you cannot sell any of the units you purchased. Short-term investment goals do not work well with investments that have a lock-in period or are hard to cash out for any reason. The reason is simple: you will need the invested funds quickly. Your savings should be easily accessible once you have met your investment target. You may find it hard to complete your original mission if you are forced to wait to retrieve your investment. 5. Study the performance of the short-term mutual fund. The success of a fund is important and should be studied beforehand. You should check the periodical performance of the fund, like one month, three months or six months. It’s safe to assume that a short-term mutual fund is not worthwhile if it has underperformed in previous years. Checking the manager’s or team’s track record is crucial when assessing the success of a short-term mutual fund. Investors should select a fund based on the amount of risk they are willing to take. 6. You can choose between direct and regular plans. A mutual fund scheme can either be a direct or regular plan. In a direct mutual fund, investors purchase NAV units directly; investors can do so from a relevant fund house. In a regular mutual fund, an investor needs the assistance of a commissioner or broker (called an AMC) who charges a commission. Returns are somewhat better with a direct mutual fund since there are no commission charges. Commission fees are typically between 2% and 2.5 %, though they can be higher or lower depending on the asset manager and broker. For regular plans, the AMC would often compensate the brokerage for bringing in new customers via a commission. Due to this, the total returns on the investment will be lower. Before the introduction of short-term mutual funds in India, investors had little need to look beyond the tried-and-true method. However, now several portals provide you with the essential resources to make investing selections. 7. You need to create an investment strategy. Most people who invest do not focus on creating an investment strategy. But, it is a necessary part of how well your investment portfolio does. A systematic investment plan (SIP) is one of the most liked investment strategies. Using SIP, a selected amount is deducted from your account and invested in the mutual fund on a pre-decided date. All mutual funds allow SIPS of a set amount. SIP ensures that you are regular in your investment in mutual fund units. SIPs are an excellent strategy if you do not remember to make purchases. Instead, you do not need to set reminders because the money is transferred directly. [B-02] Conclusion Choosing short-term mutual funds may seem hard, but it is easier if you research and know what you want to achieve. If you follow the steps above for choosing the best short-term mutual funds, your odds of success will increase. Visit Piramal Finance for more insightful articles on investing and short-term mutual funds.

08-11-2023

Other

How To Ensure Your Business Never Runs Out of Working Capital?

Working capital is an accounting phrase that refers to the cash accessible to a company to help. It develops and expands as pay for day-to-day operations and short-term loans. Working capital is the money that a company has on hand to pay its short-term commitments. While working capital finance is vital for all firms, it is particularly important for small enterprises and start-ups. This is because smaller businesses may have less cash than larger ones. It might not have access to the same credit lines or other financing sources. [B-01] What exactly is Working Capital? Working capital refers only to the amount of money a corporation needs to meet its ongoing financial obligations. It is by no means a novel idea. A lack of operating capital will prevent a company from making necessary payments like rent, supplier invoicing, and employee salaries. What is the significance of Working Capital? Working cash is critical because it affects a company’s capacity to finance day-to-day operational expenditures. It helps fund growth plans and capitalise on new opportunities as they occur. For example, if a firm has effective working capital management it may be able to engage in innovative product development in new markets without jeopardizing its cash flow. In contrast, if the company has poor working capital loan interest rate management, it may be unable to react to opportunities or make critical business expenditures. Tips to prevent your Business from ever Running Out of Cash Collect early in the Float Game Collect early: Concentrate on accelerating your collection procedure and endeavour to get payments in advance wherever workable (retainers, deposits, pre-payments, C.O.D., etc.) If you have receivables, set up a structure for collecting them. And hire a collections company to hurry the process. Start taking credit cards and electronic payments if you haven’t already. Late payment: Reduce your payables to keep more money in the company. Get good vendor terms and wait to make payments until the due date. Trade discounts should only be used if doing so won’t impact your cash flow. Even if you don’t need it, you might still consider getting an active line of credit. The object of the float game is to amass money from clients before paying suppliers or staff. Get your Product to Market quicker The faster you turn things around, the lower your overhead expenses per entity will be, reincreasing your profitability. Analyze your processes to identify where technology might help you get things done faster. The goal here is to increase production and efficiency. Master the Art of Upselling “You want fries with that?” Use the art of the upsell or package to raise your income per client and per transaction. Focus on repeat business for continuous, predictable cash flow. This varies depending on your sector but it costs more to sell to an existing client than to get a new one. Increasing your clients’ lifetime value is the aim here. Preserve Variable Costs Reduce your company’s fixed expenses to maintain control over your cash flow. When workable, adopt J.I.T. management (Just in Time) and performance-based incentive methods to boost your margins. Consider outsourcing to someone who can do it more. If it isn’t a fundamental component of your company. Here, keeping an eye on your cash flow and monitoring your margins is important. Get Lean and Mean When your firm grows, it is simple to transform it into a “lifestyle.” Yet, the most successful business owners live within their means. And keep as much profit as possible flowing to the bottom line. Begin by paying yourself in a way that reduces your tax burden. Carefully evaluate every line item on your profit and loss statement to regulate your effective tax rate (but don’t spend your way out of a tax problem!). Another piece of advice is to use a cash-back business credit card to get rewards on purchases you would have made anyhow. Maintain as much profit as possible in your bottom line. Schedule your Cash Flow The last profit-boosting advice concerns how you set your budget. In normal times, you should create your budget every month, but in times of financial stress, you should check your cash flow and budget. Cash is needed for successful expansion, so get familiar with your S.G.R. and keep track of it often. Advantages of Effective Working Capital Management Increased Cash Flow When working capital is managed, businesses see increased cash flow. This enables them to reinvest in the firm, pay off debt, and seize opportunities as they occur. Profitability Increase Increased profitability results from good working capital management. Businesses now have more funds to reinvest in expansion efforts and operational efficiency. Improved Decision-making Better decision-making leads to an increased financial flow. Businesses may spend on R&D, and use critical individuals. And make other choices to help them compete and flourish in the marketplace. Lower Borrowing Costs Working capital management may result in reduced interest rates. And more favourable lending arrangements. Businesses with good working capital loan situations are more likely to secure funding on acceptable conditions. Increased Investor Trust Working capital management instils trust in investors. When investors perceive that a firm is managing its finances. They are more willing to invest in it. Providing it with the funds it needs to develop and prosper. [B-02] Conclusions The frequency of your cash flow checks will depend on how your company turns over money. You should check in every month or every week. Making sure you check it often is your responsibility. You will always be well-positioned to respond to change. And avert a cash flow catastrophe if you keep an eye on your cash situation. Additionally, you’ll be able to consider recurring payments like company tax and V.A.T. Making wise financial and investment choices for your organization’s future and ensuring. It doesn’t run out of money and needs an accurate cash flow projection. To learn more about such types of topics, visit Piramal Finance.

08-11-2023

General Insurance

How to Change Nominee in Term Insurance?

A term life policy will financially protect you. Most of you think that insurance plans are just for family members. However, there are several reasons why one should get term life insurance. The insurance is fairly priced and gives cover for a certain time. When it comes to term life insurance, you have many choices. With a yearly renewable term life policy, the coverage may extend for at least a year. Term life insurance plans are offered with terms of 10, 15, 20, & 30 years. When getting term life insurance, three factors must be kept in mind: coverage, term, and business. The insurance covers you as long as you pay the premium. [B-01] What Exactly Is Term Life Insurance? Term insurance is a kind of life insurance that protects against the danger of early demise. When you get this insurance, you pick the sum insured and the term of the policy. After that, in the event of death within the policy’s term, the sum insured is paid to the candidate. Term insurance policies often do not offer a maturity benefit. That is, if the insured lives until the conclusion of the policy period, there is no payout. For example, suppose you purchase a 25-year term plan with an amount insured of Rs. 50 lakhs. Hence, a term insurance plan protects the risk on the insured’s life for as long as the plan is in place and all payments are made on time. Term Insurance Plan Features Here are some distinct features of term insurance plans that set them apart from other types of life insurance: As a pure safety plan, term plans provide the highest sum covered at the lowest cost. These plans are available for the long run. Some term insurance provides coverage for up to 85 years. If the insured dies during the period of the policy, the whole sum promised is given to the designee as a death benefit, as well as the policy is cancelled. Term plans have extra riders that you may add to your policy. Many plans also include riders that provide a broader range of coverage. Who Can Be a Nominee For Your Term Life Insurance Policy? The rules for life insurance nominees have been created to help you make the best decision as an insurance holder. An online term life insurance plan is a quick, safe, and cost-effective method to apply for insurance and select a nominee. The points below will tell you who may be a nominee for your term life insurance plan. Helpful Nominees It is customary to pick a close family member such as a spouse, kids, or parents as a nominee. If such is the case, the stated member of the family will be the Helpful Nominee of the death claim. The law states that any other lawful heirs are not liable for death benefits under the life insurance plan. Pick a close family member as the Helpful Nominee to prevent future legal heir problems. Minor Nominees You can nominate your kid. It is a wise choice since they must profit from the money insured when you die. If the youngster is under 18, they might be unable to manage the lump sum payment. To collect the death benefit for the minor, you must name a caretaker. The sum will be received by the caretaker in place of the minor. Multiple Nominees You have the choice of selecting many nominees for your term life insurance. You may also specify the per cent of the death benefit each person would get. If no exact percentage is stated when you register the nomination, the insurance firm will split the money insured evenly. How Do You Select a Term Insurance Nominee? Selecting a nominee for your term life insurance is a serious decision. To make an educated choice, consider the following: Know your choices to pick a proper candidate. You may choose a family member such as your parents, wife, kids, or close relatives as the nominee. You must show proof of term insurance interest for a distant family member to the insurer. If you do not comply, the claim may be denied. Consider the aim of the nomination in your specific context. If you have numerous financial heirs, for example, pick a nominee who can utilise the death payout to meet the needs of the family. How to Replace a Nominee in Term Life Insurance? You may need to replace the nominee in your term life insurance plan on a regular basis. If you think this is the case, you may always contact your insurer and request a revision of the nomination form. Let’s have a look at the processes involved in replacing a nomination. You may get the changes in the nomination form on your insurer’s site or in person at a branch office. Fill out the form completely and send it to your insurance firm. Fill in all of the new nominee’s information accurately. As a policyholder, you must show the insurer that your connection with the new nominee is genuine. To prevent future conflicts, request an acknowledgement from the insurer when they change the nominee data. If you haven’t yet designated a nominee for your term insurance, do so now. This will prevent your family from running into legal issues while settling claims. When Should a Nominee Be Chosen for Term Life Insurance? When you want to secure your family’s financial future, you must choose the right level of coverage for them. You must grasp the procedure’s terms and factors, especially the nominees for your term insurance plan. After learning about the nomination’s meaning and ramifications, it is best to proceed with the purchase of term insurance. Typically, deciding who and what is eligible for nominee benefits occurs at the policy’s beginning. However, you may modify the candidate after the policy is in place. As previously stated, it is up to a policyholder to determine what the word “nominee” means in terms of their financial status. Your choices may change over time, and you may need to adjust who gets the perks. As a result, you may replace your nominee during the insurance term. [B-02] Conclusion You must pick the proper person as your candidate for term life insurance if you have several options to pick from. If your parents are working or get a pension after retiring and do not need further help, name your wife as your nominee. You can also select your children if they are competent in making the greatest use of the money. If your kid is a minor, make a sound judgement on who to nominate so that the death claim is passed to the kid without any loss when she or he reaches the age of maturity. If you want to know more about the term life insurance, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Other

How To Change Name And Mobile Number In PF/EPF Account

You should update your name or phone number associated with your EPF account for several reasons, such as moving to a new city or updating your information after getting married. Fortunately, since your UAN (Universal Account Number) houses all your account information in one location, making these adjustments is easier. You can easily change your name, phone number, and other details by logging into the EPFO e-SEWA site or by going to your local Employees’ Provident Fund Organization office. You could use the same account after it has been changed to check your PF balance and the progress of your balance transfer, download your PF book and keep track of other data. However, remember that you can only change your details once you link and validate your UAN with your Aadhaar number. Therefore, complete this step before moving on to the next one. [B-01] How to update a PF Account with a New Name and How to Change a PF Account’s Name Offline Complete the application form, sign it, and have your employer’s seal and signature placed on it. Include self-attested copies of records that reflect your legal name. You may submit a copy of your passport, licence, PAN card, Aadhaar card, and voter ID card. Next, give the form and supporting documentation to your employer, who will then give them to the relevant EPFO Field Officer. If you need to submit your application to the designated Field Officer immediately, stop by your neighbourhood EPFO office.Next, we will learn how to change your mobile number in an EPF account. How to Change the Mobile Number Online in an EPF Account Go to the EPFO e-SEWA portal first. Select “Contact details” from the drop-down menu in the “Manage” section. Press the “Change Mobile Number” button. Type in the new mobile number twice. Press the “Get authorisation PIN” button. To finish the process, enter the OTP sent to your mobile number and click “Save changes.” How to Change your Cell Phone Number Offline in an EPF Account Fill out the appropriate form with your phone number, ensuring it is connected to your Aadhaar card. This form will be sent to the regional PF office for approval after being signed and approved by your employer. Following the registration of the new mobile number, you will receive an SMS from the EPFO verifying the change. Required documents to Access EPF Account The government has established a list of documents that have been eligible for these revisions, and that list includes records like: Passports Voters ID card ESIC ID card Aadhaar card Bank or post office passbooks Driver licence Pan Card Certificates about education and schools A copy of your name-branded phone, electricity, or water bill Birth certificates and death certificates that the registrar has issued A certificate made based on the government service records (state or central) Enter the information that needs to be changed, the correct entry, and the incorrect entry in a table with three columns. Dealing with Issues in the Event of Incorrect EPF Details When making a withdrawal, incorrect information in your account may cause complications. There won’t be any issues with your withdrawal as long as you fill out the EPF withdrawal form. That is not the case, though. The paperwork you provide to your employer while registering for EPF balance check is also very important. It is crucial to verify that the information provided while registering is accurate since, otherwise, You may reject the online claim form for further reasons. The information provided on the form must correspond with the firm records for a claim to be approved. Some of the mistakes that could result in an EPF claim being rejected are listed below: Any incorrect or misspelt information entered into the EPF’s records during enrolment may lead to the denial of an EPF claim. When a member gets married, you should immediately correct the nominee information because failing to do so could cause complications when filing an EPF claim. Another piece of information that, if incorrectly entered, could cause several problems with EPF processes is the date of joining. Since the EPS pension is calculated using the date, it is essential. The computation of the number of years of EPF balance check contribution mainly depends on it. Online Credentials Change Process Most of the services are moving online, despite the website being in transition. EPFO has launched the EPFO UAN site to enable online adjustments. You need a UAN number, cell phone number, and password to access your EPF account through this website. The 12-digit UAN assigned to employees who make EPF contributions is unique. Throughout an employee’s career, the UAN remains constant. Visit the EPFO UAN portal and select “Profile” if you want to update your cell phone number. You can alter your mobile phone number by clicking on that tab. However, you must continue using your previous cell phone number while you complete the switch. If you need an active cell phone number and lose your login password, you’ll need to submit an online request through the help desk portal. [B-02] Conclusion You discover that the old number was registered with the EPFO when you change your mobile number and attempt to access your EPF information. You must now alter your EPF mobile number, so the EPFO portal displays the new number. And now you’re wondering how to update your mobile number with EPFO or alter your mobile number in your PF account. Changing your EPF cellphone number is necessary since you will be able to use the services or receive SMS notifications. These straightforward procedures can help EPFO members update their EPF account cellphone number online. Now you have all the necessary information regarding EPF balance check. For more details, read our blogs on Piramal Finance.

08-11-2023