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Personal Finance

How personal loan helps you in a medical emergency: All you need to know

A medical emergency could happen at any time and any place. People belonging to middle-class families may not be able to get treatment if they don’t have access to free healthcare, especially for serious or life-threatening illnesses that require hospitalization. This is especially true for diseases like cancer and heart disease. This is where personal loans play an important role. Nearly 30% of Indians do not have health insurance. During a medical crisis, people often find that they do not have enough money to pay their medical bills. In this situation, a personal loan could be very helpful. A personal loan, which is unsecured credit and can be given immediately without any paperwork, can be used to pay for anything, even an unexpected medical bill. The applicant can fill out a personal loan application online. They can do that if it is easier for you to send all your proof documents by email. Once all the supporting documents and other information have been reviewed, the loan money can be put into the applicant’s bank account. Depending on the borrower’s money, the personal loans may be paid back in monthly instalments. [B-01] Eligibility Employees who get paid by public organisations and Limited Liability Companies (LLCs) (including central, state and local bodies) To be eligible for a personal loan, the applicant must be between 21 and 60 years old. The applicant must have worked in their current position for at least two years. Those who are self-employed must prove that they make at least (may vary with location) Rs 15,000 every month. The bank may ask for their tax returns and bank statements to confirm that they have a steady income. Documents Photos of identity documents like a passport, driver’s licence or Aadhaar card. A photocopy of a government-issued photo ID card like a passport, voter card, driver’s licence or Aadhaar card. Report from a financial company for the last three months (Passbook for previous six months) The applicant needs recent Form 16 Proof of end Use, two recent pay stubs, or a valid wage certificate. How to get a personal loan to pay for medical bills? If you apply for a personal loan with us, you won’t have to borrow money from friends and family to pay for unplanned medical costs. If you need to borrow money for a medical emergency, Piramal Finance can help. The loan request is reviewed as soon as possible and the loan is given to you. The first and most important step in getting a personal loan is figuring out what you need the money for. This way, you can only borrow what you need. To get a personal loan from Piramal Finance to pay for unplanned medical costs, follow these steps: Tell us a little about yourself, for example, what you do for a living and how much money you make every month. Tell us how much money you want to borrow and for how long, and you’ll get a decision from us right away. Give our agents the information they need to contact you. If your application is approved, the loan money will be sent to your account the next business day. Your CIBIL score may show if you have good credit risk and have repaid loans on time. If your CIBIL Score is good, your loan application will likely be approved quickly and with a fair interest rate for your loans. Why would you take personal loans in case of a medical emergency? A personal loan can be used for anything the borrower wants, including paying for immediate medical needs (like hospital bills), ongoing medical care (like prescription drugs and physical therapy), and any travel needed for medical treatment. A personal loan is a great way to pay medical bills for more than one reason. Payments are made quickly, and approval is easy If the paperwork is done right, a personal loan may be quickly approved and the borrower may find it easy to get the money. When a borrower contacts a reputable lender about getting a personal loan EMI to cover an unexpected medical expense, the lender will provide the loan as quickly as possible so that the patient can get the best treatment quickly. You will get the best possible medical care. You can use the money from a personal loan for anything, like medical care for yourself or a family member. With the help of a personal loan, you or a family member can get expensive medical care and medicines. Personal loan is a safe option A personal loan without collateral may be your best option if you do not have many valuable things to use as security. It may be difficult for some to find and pledge collateral if they are at the hospital taking care of a sick family member. Lenders decide whether to give a personal loan for a medical emergency based on the borrower’s credit history and CIBIL score. These things show how careful the borrower has been with money. Easy documentation When a family member is sick, the last thing someone would want to do is fill out a lot of paperwork. To start with, you do not have to complete much paperwork for a personal loan. This is one way that this type of loan is better than others. Customers must provide the standard “Know Your Customers” (KYC) documents, such as their CIBIL Score, proof of residency, bank account information, Aadhaar or PAN cards, and proof of income or company revenue. If the application process can be done online, the borrower may not even have to meet with the lender. Conserves reserves to guarantee financial stability Most Indians belonging to the middle class do not have enough savings and can only plan for the future with the money they have in the present. A patient who is required to pay expensive medical bills can end up in a financial crisis. A personal loan can be paid back with a person’s regular monthly income. So the person can save money. The borrower may keep more money than the loan amount to pay for medical costs. Keep your long-term financial plan in mind A big medical bill can quickly throw off a person’s financial plan because they may need to take money out of their regular investments, like systematic investment plans and insurance premiums. After getting a personal loan, it may become easier for them to reach their financial goals and keep track of their money. Multiple ways of repaying If borrowers have trouble paying back their loans, they may be able to change their repayment terms to lower their monthly payments. In this case, the borrower can repay the principal and interest of the personal loan at once or over a longer period. This makes it easier for them to keep track of their cash flow. If possible, one can also download a personal loan app to check all details of their loan. Conclusion A personal loan can help you pay for unexpectedly high medical bills. In such a case, a trusted lender like Piramal Finance can approve the loan quickly. Piramal Finance helps people who need a low-interest personal loan for medical reasons. They have an easy online application process. People often need money quickly to pay a medical bill. Thus, Piramal Finance approves these loans as quickly as possible so that the borrower, who may be worried about their health or that of a loved one, can get treated soon.
08-11-2023
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Personal Loan

Do’s & Don’ts of Repaying Your Personal Loan Early

Are you in a hurry to repay your personal loan? Being debt free can be financially liberating for you. However, rushing into repaying the personal loan should not boost your stress. Personal loans are an easy and good way to solve any financial crisis. Due to the ease of availing funds, several people jump on the chance of getting one. But investing a massive amount to clear a personal loan can cause trouble. Especially, if you have more than one debt. Some debts you might have are student loans, credit cards, and home loans. Read on to explore the dos and don’ts of repaying your personal loan early. [B-01] Things You Should Do When Repaying Your Personal Loan Early Personal loans are hassle-free when compared to other options. But if you are repaying your personal loan before the loan tenure ends, consider these aspects for better financial management: Plan Your Finances Have you planned the extra finances required for repaying your personal loan in one go? Clearing the entire loan amount will require ample funds to ensure your other expenses are manageable. For example, you must have sufficient funds to manage your daily expenses and additional debt repayments. If you get a big paycheck every month, things might be different for you. But if you plan to use your savings to repay the personal loan, you must ensure enough funds after paying the entire loan amount. Avoiding the extra interest changes might excite you. Yet you need to save enough for any urgent needs. You can avoid increasing your debts this way. Talk to Your Lender Talking to your lender and informing them that you plan to repay the personal loan early will help avoid surprises. Some lenders might not allow you to repay your personal loan early. In addition, some even have additional charges for prepayment. Read the terms and rules of the personal loan before making a decision. Knowing the policies will help you know more about the contract you signed with the lender. Suppose your lender is charging an additional cost for repaying the personal loan amount early. In that case, you can replan your budget. Always know the exact loan amount you have to pay the lender. The best way to learn about your repayment options is by contacting the lender. Prepare a Budget Before repaying your personal loan, prepare a budget. Depending on your needs, you can opt for quarterly, monthly or annual funding. Plan a budget according to your monthly expenses. Your daily expenses, like groceries, housing bills, rent, etc., should be fine if you decide to repay your loan early. The bare essentials you cannot live without, like shelter, food and security, must be given priority when you plan your pre-payment. In addition, you also need to save money for any other debts you may have. While repaying your personal loan early, you must make sure other debt payments are completed on time. If not, this may harm your credit score. Maintaining a good credit score is vital to avail of beneficial loan offers in the future. Mistakes to Avoid While Repaying Your Personal Loan Avoiding the following mistakes is crucial to secure your financial future: Do Not Use Your Retirement Fund For Debt Repayment Your retirement fund is the security net for your old age. Remember that as you get old, you will need more assistance, like personal care to ensure your safety. In addition, retirement life can surprise you with urgent medical expenses or bills. But not having a steady source of income might restrict you from taking up a personal loan even if you qualify for one. Generally, lenders and banks do not offer personal loans to people over 50. This is because senior citizens might not be able to pay the loan. This can cause losses to the lender or bank. Therefore, do not make the mistake of spending your retirement funds because you are in a hurry to become debt-free. Plan your expenses wisely and only opt for prepayment when you have enough savings or a good income source. Avoid Repaying Your Personal Loan Towards The End Commonly, there are two reasons for repaying your personal loan early. First, you want to spend on something other than the heavy interest rates. The other one is you want to become debt free as soon as possible. But clearing the entire personal loan amount towards the end might be a mistake. Suppose you want to save the extra money spent on the interest rate. In that case, you must repay the entire amount at the beginning or earlier. Paying the remaining amount towards the end will not help you save any amount on the interest. Instead, if you have only a few payments left, ensure to pay them in instalments and be consistent. Repaying your personal loan EMIs on time or prepaying the entire amount will help improve your credit score and avail additional benefits from the lender. Do Not Overthink Paying the entire personal loan amount will have several benefits if you’re doing it early on. If you have calculated your net income and have enough savings set aside, feel free to take this step. Overthinking about repaying your personal loan will only cause delay. Before you know it, you will end your loan tenure with a few repayments. After that, there is no point in rushing your personal loan as it will not improve your credit score. Every time you delay your decision to pay the loan, you will spend extra money on the interest. Once you have planned your finances well and talked to your lender, go for the early repayment without any hesitation. [B-02] Conclusion Now that you have all the necessary pointers about repaying your personal loan early, you can make a well-informed decision. Conducting proper research before repaying your personal loan is necessary. It is always better to talk to your lender before repaying your personal. This way, you can avoid any additional charges. Besides, your lender can advise you on what is best for your situation. To learn more about repaying personal loans, visit the Piramal Finance website today. You may also explore their products and services to take care of your money needs.
08-11-2023
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Personal Loan

Types of Loans, Eligibility, Documents and Benefits

The expansion of the finance market and improvements in technology have made it easy and digital to get a loan. You don’t even have to go to the bank branch these days to get a loan. You can use the Internet to apply for all types of loans from the comfort of your office or home. After you send in your paperwork, the loan is approved and put into your account within a few days. Read on to learn more about the different types of loans that are available for you to choose from. [B-01] Types of loans There are many types of loans. Secured and unsecured are two categories of loans. Based on these categories, types of loans include home, auto, gold, and personal loans. Home Loans Home loans are well-known types of loans used to purchase a home. Home loans are secured loans, and the legal papers of the home are bought to serve as security or collateral. Most home loans are given for 20 or 25 years. A home loan can last no longer than 30 years. When you apply for a home loan, you can get a tax break on the interest you pay on the loan. Also, a home loan has the lowest interest rate of all bank loans. The interest rate on a home loan ranges from 7% to 14%. Loans for Education These types of loans cover the costs of going to college. If you already have the skills for a degree but don’t have the money to get it, adding it to your CV could help you get a good job. Personal Loans These types of loans can be used for multiple purposes. Personal loans can be used for many things, like weddings, home repairs, trips, medical emergencies, etc. Personal loans have higher interest rates than loans that are backed by a security. In India, weddings are big events, and many people take out loans to prepare for their weddings. The interest rate is between 10% and 20% p.a. Auto Loans These types of loans can be used to buy a car, a two-wheeler, or a commercial vehicle for personal use. Most of the time, these are for a maximum of five years. And they have a higher rate of interest than a home loan. The interest rate on a car loan starts at 7% p.a. and varies across lenders. Consumer durables loans Durable consumer loans are used to buy things like electrical appliances, air conditioners, and coolers that will last a long time. Most lenders offer these loans at 0% interest, which makes them easier to repay. Gold Loans It is a loan that is backed up by gold. Gold loans can be used for anything, like a medical emergency, a wedding, or the start of a business. Most gold loans have interest rates between 10% and 26%. Working Capital Loan It’s a loan that doesn’t require collateral and is used to meet everyday business needs. Most of the time, these are short-term loans that can take up to a year to pay back. Working capital loans typically come with a higher interest rate than term loans. Loan for a set amount of time A loan is given for a set amount of time and has a fixed EMI. This financing is necessary when investing in a long-term asset or expanding into a commercial space. The interest rate may be fixed or change over time, depending on what the lender and borrower agree to. Eligibility for Common Types of Loans How do you find out if you can get a loan? The requirements for qualification change depending on the types of loans you hope to obtain. You can use the criteria listed below to see if you are eligible: Credit score above 750. Age between 21 and 60, Assets to use as collateral include fixed deposits, insurance policies, real estate that can’t be moved, bonds, gold, and so on. Having a good relationship with your bank or lender. History of payments. Monthly salary of more than Rs. 15,000 to Rs. 25,000. How Can I Get a Loan? Today, getting a loan is easy and doesn’t take much time. All you have to do is follow the steps below: – Choose the lender you want to get the loan from based on what you’ve learned. Also, make sure you meet the requirements. To apply for the loan, you can go to the lender’s branch or website. Gather all the paperwork and proof you need to apply for the loan and send it in. The bank or lender will let you know the status of your loan application within a certain amount of time. Have a plan for how you’ll spend the money and how you’ll pay it back before you commit to a loan. Think through the benefits and drawbacks of each option you’re considering. Get quotes from different banks and lenders, and compare interest rates and loan terms. Before deciding, you should also consider the fees and penalties. You can talk to an expert or a friend to determine which loan is best for you. Banks have experts who can help you choose a loan that fits your needs. Loan payments should be made on time because missing payments will hurt your credit rating and make it harder for you to get loans in the future. The only way to make a good choice is to do research and think things through. A loan can help you get started on your journey or make your dreams come true, but it can do the opposite if you don’t pay it back. So, choose wisely! Advantages of a Loan A loan can be used for many different things. With the help of a loan, you can pay for anything, from a house to education. Interest rates are set based on the repo rate set by the RBI. Instead of putting up security, you can also use a guarantee from a third party. Most of the time, the loan is paid back in EMIs spread out over the length of the loan. You can choose the repayment time at your convenience. You can easily get various types of loans online these days. [B-02] Conclusion To summarise, there are numerous bank loan options to suit a variety of situations. Even so, there’s no harm in taking out a loan if you need money for something unexpected. But before you take out a loan, you need to make sure you can pay it back on time. If you don’t, you could hurt your credit score. Check out the Piramal Finance blog section for more information regarding loans and other financial tools.
08-11-2023
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Personal Loan

Document List to Get Paperless Online Personal Loan

Personal loans are unprotected loans by nature. It implies that as a borrower, you are not needed to pledge any assets as collateral for the loan. So, how do NBFCs issue loans in the absence of collateral? They ask for various papers that are needed during the lending process. Personal loan paperwork is what they’re called. Every lender has a list of online personal loan documents that must be given when applying for a loan. [B-01] What Exactly is a Paperless Loan? A paperless loan takes place between a lender and a borrower online. Since it is done online, this form of loan is simpler and faster to handle. No extra time or effort is spent on paperwork processes. You may apply for paperless loans online by visiting the bank’s website. Some banks also offer online calculators that give an idea of data like EMI, net outflow, etc. What Exactly Are Personal Loan Documents? Asking for a loan is no longer a time-consuming process. Gone are the days when you had to file a loan request and then wait for a response from the lender before starting to prepare loan documents. You may now use a personal loan app to apply for fast and easy loans. All you need is a set of papers that must be submitted to the app. These are the terms of your personal loan. The papers will validate your identification, place of residence, job status, and income. What Are The Documents Needed For a Paperless Online Personal Loan? Paperless personal loans are easy and quick to apply for. However, to get the loan money, you need to provide some papers to the firm. These papers state that the applicant is a bona fide borrower capable of repaying the loan amount. This is vital. You must provide digital copies of these papers and allow the lender to verify them. With the e-sign feature, you may sign the papers digitally. This further contributes towards making the process paperless. The following papers are needed for paperless online personal loans: Identity verification (PAN Card, Voter ID, Aadhar Card, etc.) Address verification (Aadhar Card, Passport, Voter ID, utility bill, etc.) Bank records (digital copies of the most recent bank statements obtained via one’s bank account) Salary statements (Online copies of payslips received from the employer) If you have only physical copies of these papers, scan and submit them online. These papers will be collected by the firm and stored on a secure server. Eligibility for a Paperless Personal Loan Online Everyone has access to and may get online paperless loans. However, several basic qualifying terms must be met to get a paperless personal loan online. You must be an Indian citizen to be eligible for an online paperless loan. You must be at least 21 years old to get a paperless loan. To register, you must have a valid PAN Card. Proof of your current address is also needed. You can submit utility bills (electricity, water, telephone), a rent agreement, a bank passbook, or a domicile certificate for this. For proof of identity, you can submit a scanned copy of your Aadhar Card, driving licence, passport, Voter ID, PAN Card, etc. Photos of papers are needed to complete a mandated KYC procedure. You must have a source of income. You must report your income. However, online lenders do not demand proof of source of income. Your source of income will guarantee that you can repay your loan. It is difficult for those who do not have a steady source of income to get a quick paperless loan. Benefits of Paperless Online Personal Loans Apart from being easily accessible, the paperless loan offers other benefits. It can assist you in any moment of crisis. With a few taps on your mobile phone, you may acquire a fast paperless online personal loan. It’s a simple process that doesn’t need any proof of salary. There is no need to go anywhere. There is no need to produce any physical paperwork or documents. Higher approval rates when compared to conventional loans. The decision regarding your paperless loan request is made in less than a minute. You will not have to wait long to learn the status of your request. Both borrowers and the environment benefit from paperless online personal loans. It lowers the carbon impact by conserving paper. Paperless online loans decrease the amount of time taken in the loan request and approval process. Getting an internet loan is more secure than obtaining a physical loan. Your paperwork and data are safer online. How Can You Get Lower Personal Loan Interest Rates? When applying for a personal loan online, there are a few things to keep in mind to assist you in getting a lower interest rate. Among these are the following: Enhance Your Credit Score A good credit score indicates a person’s creditworthiness. Lenders will offer you a cheaper interest rate if you have a good credit score. So, verify your credit score before applying for a personal loan online. Do Not Miss Repayments When you fail to make credit card or loan payments, your credit score suffers. Before settling on an interest rate for an online personal loan, lenders often analyse your repayment history. If you have made on-time payments earlier, you are more likely to incur a reduced interest rate. Keep An Eye Out For Special Offers During holidays, banks usually provide special interest rates. If you apply for a loan while such offers are open, you may be given a cheaper interest rate. It is important to stay aware of any such offers as they only last for a limited period. [B-02] Conclusion A paperless and fast loan may give you cash right now. You may get money anytime, and anywhere. The money will be deposited immediately into your bank account. It is secure to utilise online paperless personal loan programmes. They guarantee the safety of your data. Online personal loans are available at daily interest rates. You must pay interest on the cash only on the day it is used. After that, you may refund it whenever you choose and save on the interest. If you want to know more about online personal loans, visit Piramal Finance. You may also explore their products and services.
08-11-2023
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Personal Loan

Top 5 Types of Personal Loans in India

Banks and other NBFCs provide many types of personal loans to satisfy a variety of needs. Because of tech advancements, the loan application process has become seamless. You may now find it very easy to get access to loans. The most known lending product in India’s debt market is personal loans. This group features more than 78% of loan requests in India. Many people like these loans since they are unsecured and come with a longer tenure. Read on to learn more about the five types of personal loans available. [B-01] What Are Personal Loans? Personal loans are loans that banks and NBFCs offer to help people pay for things like a wedding, education, vacation, home improvement, etc. They are like other kinds of loans where the borrower has to pay back the principal amount plus interest to the lender by the end of the loan term. Personal loan limits are often based on the borrower’s credit history and monthly income. Most banks and credit unions offer individual loan sums that start at Rs. 50,000 and go up to Rs. 15 lakhs. Different lenders have varied rules about who can get a personal loan. But, there are some general rules that all lenders follow. Additionally, the various types of personal loans may have different eligibility criteria and requirements. Five Main Types of Personal Loans 1. Travel Loan Trips, especially foreign vacations, may be costly. If you plan a trip to an exotic place with your family or friends, consider taking a travel loan to reduce the money load. A travel loan is a type of personal loan which is used to pay trip costs. Travel loans often come with travel insurance that is free with the loan. Main Features of Travel Loan Easy application and approval process. Most firms will provide you with a loan of up to 40 lakhs. The loan payback time might last up to 6 years. 2. Home Improvement Loan People can get a home loan to buy a house, but what should be done if the old home needs major repairs? This is where a home improvement loan comes into play. A home renovation loan is a type of personal loan from a bank or non-bank financial firm for renovating an old sweet house. When you remodel your old property, you not only have a good place to stay or live, but your old house’s economic value also increases. Main Features of Home Improvement Loan The loan sum might range between Rs. 2 lakh and Rs. 40 lakh. A home improvement loan has a payback term of up to 30 years. 3. Wedding Loan India is famed for its lavish wedding rituals. The wedding day is surely one of the most vital days in the life of the groom and bride and the parents & family members. Everyone hopes to make this day unique and memorable, which may need lavish spending, and one may not have as many liquid assets at their disposal. As a result, many families seek a wedding loan. Main Features of Wedding Loan The bride, groom, or family members can apply for a wedding loan. The loan sum might range from Rs. 1,000 and Rs. 25 lakhs. The payback time for a wedding loan might range from 3 months to 6 years. 4. Education Loan Personal loans are available from many lenders to help you pay for your education. Secured education loans are given against collateral such as your master’s degree or a real estate property. This education loan may be used to pay your tuition, housing fee, and other academic needs. Main Features of Education Loan Most banks would give you a personal loan for up to 20 lakhs to cover education-related costs. A personal loan term used to fund schooling may range between 5 and 6 years. 5. Pension Loan If you’re a retired person, you may find it hard to make ends meet, mainly if the person has medical costs. Many banks give pension loans to these types of people. A pension loan is a type of personal loan built specifically for retirees. Since it is solely for retired people, pension loans are exempt from the qualifying terms that apply to other personal loans. Main Features of Pension Loan Pension loans are only given to retirees with constant pensions. Payback time for pension loans might range between five to six years. What Are the Eligibility Needs for a Personal Loan? Personal Loan eligibility needs differ from lender to lender, though there are some common rules that all lenders follow. So let’s discuss them in this section. When the loan period starts, you must be at least 22 years old and no more than 58 years old. You must be working and have a steady source of income. A high credit record is needed. You must have identity proof and proof of income. You must own a bank account in your name. Papers Needed for Personal Loans Personal Loan papers differ from lender to lender. However, there are a few crucial papers that all lenders will need. A signed application form has been filled out. Identity proof (PAN card, passport, Driving License, Voter ID, etc.) Address proof (ration card, utility bill, rent agreement, etc.). Income verification (salary slips, Form 16, bank records, etc.). Last six months’ bank statements. KYC papers (Pan card, Aadhar card, etc.). How to Apply for Different Types of Personal Loans Personal loan applications are easy to fill out. You can apply online or go to a bank or credit union closest to you. Online applications must include personal and financial information. You can apply for a personal loan online through the lender’s website. The lender will review your loan request in a few days and give you the money if you’re eligible. If you want a personal loan from a bank, you will need to fill out an offline application form and bring it in with the necessary paperwork. The bank will process your loan request in a few days and give you the money if you meet the eligibility criteria. Many banks also offer online applications. You must check with your bank to see if their loan request process is online or offline. [B-02] Conclusion Now that you know the many types of personal loans in India, you can pick the one that best meets your needs. You may explore and compare the top loan providers online, choose one, meet their conditions, and get fast approval on the personal loan. When enrolling in any loan plan, review the terms and conditions thoroughly to ensure you completely understand the borrowing & repayment arrangements. Check out similar blogs on Piramal Finance and also learn about their products and services.
08-11-2023
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Lifestyle

How to Run a Successful Clothing Boutique Business?

A great clothing store needs the same effort as any other business to succeed, plus a little more work. If you want to run a successful clothing business, it’s crucial to keep in mind that you need a strong marketing plan. Use effective marketing methods, like marketing on media platforms and online ads, to reach more people. Look at each online shop’s offer to decide which is best for your business. It would be best if you also had a strong online presence and loyal customers who liked what you do. Once you have the basics down, it’s vital to stay unique and keep adding to your stock to keep your clients happy. [B-01] How Do You Get Started in the Clothing Business? When you’ve settled on your path, it’s time to find out how to begin a clothing boutique business. Find your niche. To begin, select your target market and the people wearing your garments. Pick a group whose needs aren’t being met or a group you’d be excited about helping. The more particular you are, the more likely you will reach your target buyers with ease and for less money. For example, you might design t-shirts with amusing messages meant for coders or new mothers. Make a business strategy. A business plan is a road map that will lead you and assist you in reaching your targets. It is, in fact, the core of every strong firm since it considers all factors and gives a clear picture of what has to be done. The market study, research, and financial and managerial methods are all part of a company’s strategy. However, bear in mind that such facts are not set in stone. You will most likely need to modify your company’s plan structure. Since the fashion and clothing business is markedly different from other sorts of firms. Analyse your industry. Another vital factor to examine is how the market operates. Analysing your rivals might help you get a better insight into your target audience’s behaviour and desires. As a result, use the internet to study how your rival interacts with its clients. Learn their offerings, bestsellers, and success formulas. Calculate the figures. It is vital to know your early costs when opening a clothes business. You will most likely require the following: A brand’s visual trademark (logo and website). Internet and phone bills are examples of building costs. Permits are needed to trade in a marketplace or on the street. Sewing or designing tools (sewing machines, fabrics, scissors). Rent for your office or website. Costs of marketing. Wages of your coworkers. You’ll be able to calculate your expenditures this way, which will help you establish the proper rates and make your firm successful. Establish Prices. Defining your costs and the cost of production allows you to calculate how much it will cost you to make or buy an item of apparel. To generate a profit and make your clothes business viable, aim for pricing 30%–50% more than your costs. Charge too little, and you will lose earnings; charge too much, and you will lose customers. You must also take into account the pricing of your competition. Finally, consider your brand’s image and how its worth is regarded. If you sell expensive garments, your clothing business will be seen as being more valuable. Organise your clothes business. To ensure the smooth running of your business, you must address the following critical issues: Your current location: Will you work from home, or will you need a workshop? Your company plans: Do you intend to be an internet store or a boutique clothing seller? Joining forces: Are you a one-man (or woman) show, or do you need the assistance of coworkers to get things started? Sales and marketing: Do you have an advertising plan? How would you carry out your marketing tasks? Funding: Are your finances enough to support your activities, or do you need extra resources? Create your clothesline. Designing, sourcing, and manufacturing are the most difficult aspects of beginning a clothing business. But it may also be the most rewarding. First and foremost, you must locate the resources. Don’t be afraid to seek guidance since it will save you time and money. Friends or coworkers who work in the business can assist you or link you with someone who can do manufacturing for your business. It’s time to put your idea into action when you’ve found the textiles. You must contact a clothing manufacturer if you do not intend to complete it all yourself. Assess the pricing, minimum order number, and quality while selecting a supplier. Also, obtain a sample before you begin production so you may make tweaks and assure high-quality items. Try out your collection. Once you have your test samples, you should take them to the market. Facebook Marketplace, market trading areas, or events your customers attend are good places to verify your concept. You may alter your apparel items based on consumer input, ensuring there is no room for error. Begin selling and advertising your work. The last stage is launching your clothing brand and spreading the word about it. Make use of social media to reach out to your consumers. There are also several free creative advertising ideas available to you. Remember to try out several strategies and stick with the ones that succeed. It will likely take time to grow your clothing company, but don’t lose hope. Be diligent, and you’ll start seeing results. [B-02] Conclusion Creating a clothing business might be hard, but it can also be lucrative. Successful businessmen understand that success in any field requires more than simply the product or service they provide. They understand their consumers and rivals, create a concrete strategy to reach their goals with their firm, work hard to advertise themselves and their goods successfully, and continue to learn from errors along the way. If you want to know more about the clothing business, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Tax Savings

Best Tax Saving Investment Options in 2022

As another fiscal year comes to a close, taxpayers and investors are busy arranging their taxes and investments for the next fiscal year. Tax-saving investment options range from ELSS to PPF, where gains are only derived from interest. But what will be valuable and relevant in 2022? Let’s take a close look at tax-saving investment options for 2022, as well as see how they vary to make your decision simpler. [B-01] Best Tax Saving Investment Options ELSS (Equity-Linked Savings Scheme) ELSS is simply a mutual fund investment with a tax-saving investment option. The fund primarily invests in stocks, which are believed to provide better returns but also have a higher level of risk. As previously stated, the only benefit of ELSS over normal mutual funds is the tax-saving investment option. It is covered by Section 80C of the Income Tax Act of 1961, and you may claim a tax credit of up to Rs. 1.5 lakh for your investment in them. Furthermore, it has a three-year lock-in period, and your earnings after this time are deemed long-term capital gains (LTCG) and are tax-deductible up to Rs. 1 lakh. Profits beyond Rs. 1 lakh will be taxed at a fixed 10% rate. You may invest in ELSS as a single amount or via a systematic investment plan (SIP). PPF (Public Provident Fund) The public provident fund is a long-term investment offered by the government of India that would provide you with a retirement fund. The lock-in term here is 15 years, and you may open an account with as little as Rs. 500. Unlike equity-linked plans, the profit is exclusively from interest, which is now 7.1%. PPF is under the same section 80c of the Income Tax Act of 1961, and your investment is tax-deductible up to Rs. 1.5 lakh. NPS (National Pension Scheme) NPS, like PPF, is a retirement tax saving investment option that is market-linked. Investors may choose from a variety of funds depending on fund allocation, risk, and return potential. The option also depends on your age, as NPS fund options differ for people of different ages. The success of your fund solely determines the reward from your NPS investment. Equity-focused NPS funds are known to provide better returns, but they also carry a higher level of risk. On the other hand, debt-based NPS funds offer reduced risk but a smaller potential return. NPS also falls under the same 80C section. However, there is an additional Rs. 50,000 tax savings possibility under Section 80CCD (1B), bringing the total tax saving potential to Rs. 2 lakhs. ULIP (Unit-Linked Insurance Plan) A ULIP is a life insurance policy that also includes an investing component. Life insurance is a must-have for your and your family’s safety, and adding an investing component to it makes it much more valuable. A portion of the premiums you pay in a ULIP policy goes toward your life insurance, while the remainder is invested in the fund. You may choose the fund here; however, availability varies by the insurance company. NSC (National Savings Certificate) NSC is a tax-advantaged investment that may be made at post offices. These are low-risk investments in debt assets. They have a five-year maturity duration and are not eligible for recurring investments. When you invest in NSC, you will get an NSC investment certificate. You must make fresh investments every time you invest in an NSC. Your NSC investments are tax-free, up to Rs 1.5 lakh per year. This interest is compounded annually and is taxed as “income from other sources.” Once it has matured, you will get your principal amount as well as the compounded interest for the five years. NSC’s current interest rate is 6.8% (in July 2022). Fixed Deposit (Five-Year Tenure) A five-year fixed deposit is an 80C tax-saving investment option, allowing you to save up to Rs 1.5 lakh in taxes each fiscal year. Interest generated on a tax-saving fixed deposit is added to the investor’s income and taxed according to their income tax slabs. Fixed deposit interest rates vary by bank. Premature withdrawal is not permitted in a tax-saving fixed deposit, as it is in a tax-saving PPF. You may invest in these fixed deposits at a bank or post office. Furthermore, the risk profile of fixed deposits is modest. However, you cannot make recurring investments in a fixed deposit. You must establish a new fixed deposit each time you want to invest. Mortgage Loans A house loan displays how to save taxes in India five times over. There are three methods to save money on taxes by using house loans. You will save a lot of money as a result of this. Section 80C deductions permit you to reduce the debt repaid within the current fiscal year. The maximum deduction is Rs. 1,50,000. Section 24 permits you to deduct any interest paid on your house loan up to Rs. 2,00,000. First-time buyers may receive a grant of up to Rs. 50,000 under Section 80EE. You may even get another home loan if you live in the house where you got your first one. The tax deduction for a second home loan is infinite. What Should You Do to Save Taxes in 2022? These investment alternatives will be relevant in 2022, and your pick should depend on your investment horizon and risk tolerance. For example, if you want to invest in a significantly shorter-term alternative for tax advantages, you may choose ELSS. ELSS, on the other hand, has a larger risk. If you are risk-averse, go with a PPF, which is not market-linked but has a longer tenure. The decision here should be a precise mix of your requirements and what these funds offer. Many choices, such as NPS, let you move to a new fund if your current fund is not working. [B-02] Conclusion Many people rush to invest in tax-saving instruments at the end of the fiscal year to save money. But this negates the main goal of allowing such deductions, which is to urge you to manage your personal finances. As a result, the ideal time to make tax-saving investment options is at the start of each calendar or fiscal year. You can also save taxes and build wealth by investing regularly in many tax-saving avenues. But you must ensure that you know all tax-saving investment options and only invest in the suitable ones. If you want to know more about tax-saving investment options, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Tax Savings

10 Financial Planning and Tax Strategies to Prepare for 2022

A new year brings fresh starts, ideas, chances, and experiences. With the start of FY 2022–2023, it could be a good time to begin your financial planning tasks, organise your money, and prepare for the year ahead. It’s never been a better time to work toward your financial goals and instil some financial control. It may have been hard in the last month of the fiscal year to meet the March 31st deadline for your tax and financial planning needs. As a result, assessing your finances in the middle of 2022 is one task you can do to ensure the rest of the year is free of worry. [B-01] 10 Financial Planning Strategies to Prepare for 2022 Here are the top 10 financial planning and tax strategies to prepare for 2022: Examine your portfolio. This financial planning tip can help buyers still worried about inflation, rates, and crisis risk. The recent market activity allows you to verify your risk level and ensure that your cash balances are still sufficient. You could also think carefully about whether or not this is a good time to change your portfolio. Your evaluation might include the following: Consider tactics for managing a rapidly changing environment. Consider the new chances given by this year’s rather large market pullbacks. Studying the cost-benefit analysis of potential projects. Purchase medical coverage for your family. You may even save money on taxes by buying health insurance for yourself and your family. Section 80D of the Income Tax Act permits you to deduct up to Rs. 25,000 for paying premiums for yourself, your spouse, and your dependent child. Also, if a taxpayer is over the age of 65, the person may get a tax deduction of up to Rs. 50,000 here under the clause. You may save as much as Rs. 50,000 if you pay for the parents’ health insurance. Review your cash management. Matching the features of various investment options with the desired demands is vital. Even inside a brokerage account, money market fund options have varying rates and certain liquidity hazards. Confirm that you are satisfied with the return on your money and the items providing that rate. Calculate your progress toward financial freedom. Even though the last few years have already been hard on many fronts, owners’ total net worth has grown steadily, even with this year’s market slump. After a period of great performance, compare your existing assets to the levels required to sustain financial freedom. With this research, decisions on savings rates, investment policies, and wealth transfer schemes may be made. In many cases, it is also a wonderful time to reflect on the positive changes and enjoy the outcomes of a focused financial planning tip. Invest in tax-advantaged assets. This financial planning tip might help you. As said before, Section 80C of the Income Tax Act permits certain tax breaks on sums invested in tools. It states that purchases of these assets are tax deductible up to a limit of Rs. 1.5 lakh. Select the relevant tax regime. Indian people currently have access to two tax systems. You may choose one of these when submitting your ITR. Yet, selecting a suitable tax system is critical to maximising tax savings. While a new tax system provides reduced tax rates, tax deductions are not permitted. So, if you wish to use the tax deductions under Section 80C of the Income Tax Act, you must follow the previous rules. Otherwise, you might choose the new tax system to reduce your income tax bill. You can use an online income tax tool to see whether the old or new tax system is more favourable to you. Create a reserve. You also need to keep an eye out for any urgent expenses that might come your way. If you still do not have a reserve to meet your urgent needs, create one as soon as possible. Begin by saving 10% of your monthly income and gradually increase. After a couple of years, you will have a considerable amount in the corpus. Examine buy-sell deals. Because the value of businesses has increased in recent years, the owners of privately held companies must evaluate any buy-sell agreements. They must also check that all parties agree on the listed price and the process to determine the price in the future. If you depend on insurance to help you meet your commitments, you should review your coverage in light of any changes. Plan ahead of time for the expiration of estate tax exemptions. If the family thinks about wealth transfer methods, you should start designing and adopting them now. If you’re thinking about shifting capital to reduce future tax payments, do it as soon as possible. Remember to make use of home loan tax breaks. Assume you get a house loan from a bank or NBFC. You may deduct your loan’s rate and principal parts from your taxable income in such instances. The maximum deduction allowed under this provision is Rs. 2 lakhs under Section 24 for house loan interest and Rs. 1.5 lakhs under Section 80C of the Income Tax Act for home loan principal. [B-02] Conclusion New Year’s goals are simple when you decide what is most vital. Wealth, health, and happiness should always be top priorities when it comes to living well. So, if you follow these top ten financial planning tips, you’ll be well on your way to a prosperous 2022. Many taxpayers rush to invest in tax-saving devices toward the end of the fiscal year to save money. Yet, this defeats the basic goal of allowing such deductions, which is to inspire people to save for the future. As a result, the optimal time to make tax-saving investments is at the start of each calendar or fiscal year. You may also save taxes and build wealth by investing regularly in numerous tax-saving routes. However, you must comprehend all tax-saving investing options and only invest in the relevant ones. You can visit Piramal Finance for more exciting blogs on financial planning and explore their products and services.
08-11-2023
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Personal Loan

How Pre-Closure of Personal Loan Can Impact Your Credit Score

Now and then life throws a curveball at us and catches us off guard. In such dire situations, a Personal loan can come to our rescue and steer us clear of financial troubles. The borrowers of personal loans don’t need to back it up with collateral and that’s why they are the go-to choice for most people. More often than not, borrowers prefer to pre-close the personal loan and shed the weight off their shoulders. Many people pursue this course if they intend to borrow another loan and don’t want to get caught up in the hassle of paying two loans at once. However, the pre-closure of a personal loan isn’t always a good idea. [B-01] Does a personal loan affect your CIBIL score? Well, the answer to this question is both straight and complicated at the same time. Let us delve deeper into the technicalities to better understand them. Things to consider before prepaying a personal loan Debt to income ratio The repayment of a personal loan reduces your debt-to-income ratio because your existing debt obligations will be fulfilled. This could come in handy if you intend on taking a new loan. Your loan servicers will assess your debt-to-income ratio and the lower your debt-to-income ratio is, the higher your chances of getting approved for a new loan. The math is up to you, if you are in dire need of getting a new advance from your bank, this option will float your boat. Savings While repaying your personal early would remove the ghosts of debt that loom over your head, washing out your savings and hastening to go debt free could prove very risky. Exhausting your savings will make you more susceptible in the face of emergencies. Moreover, you could incur pre-closure charges for the personal loan. There are always two sides to every coin. Contrary to the popular belief, pre-closure of a personal loan doesn’t get you into the good bank of the bank and much to your surprise, it can negatively affect the CIBIL score too. However, there is no one size fits all kind of solution and everyone’s financial posture is different. Let’s understand the Pros and Cons of pre-closure of the personal and you will be in a better position to assess what fits the bill for you. Pros Most banks or for that matter financial institutions have a minimum lock-in period which is usually one year, however, it could vary depending on your loan provider. Once the lock-in period is over, choosing to prepay the loan is a viable option for you. If you are opting for a pre-closure of your personal loan, this is how you could benefit:- Less Interest – If you foreclose a loan early, provided that the lock-in period is over, you could save a substantial interest on EMIs which otherwise would have extended till the loan term. Even if you make a part prepayment, the number of EMIs would get reduced and this would prove more economical for you as you could save a decent amount on interest. Debt-free – Another virtue of paying a personal loan early is that you could be having multiple financial obligations at once; car loan, home loan, credit card debt etc. Paying off a loan early will not only shed weight off your shoulders but allow you to channel in more cash flow towards your other loan obligation. Thus, placing you in a position to go debt-free early. Cons As we said, no talisman works for everyone when it comes to personal finances. Different things bode well with different people and pre-closure of a personal loan may not always prove to be in your favour after all. Impact of prepayment on CIBIL score – You would think that making timely payments towards your loan translates to a good CIBIL score, then paying off your loan early should spell well on your CIBIL score too. Sorry, you are not even close. When you pay off a loan, your credit report shows a closed account. However, credit bureaus take into consideration your open accounts for assessing your CIBIL score. Timely fulfilment of the active financial liabilities has a more significant impact on your score than the ones closed early. The open accounts are reflective of your past and present debt. Even though the timely payments on your closed loans are a crucial part of your credit history, the impact on your credit score isn’t too significant as they aren’t your current obligations anymore. Mind you, this logic doesn’t apply to credit card debt. Even if you pay all your credit card debt in one go, the credit card is considered an open account and hence things swing differently in this case. Pre-closure charges for a personal loan – You cannot escape prepayment charges even if your lock-in period is over. You have to bear prepayment charges when pre-closing your loan. The prepayment charges could vary from 3% to 6% depending on your provider. However, when pre-closing charges are contrasted against accrued interest during the tenure of a personal loan, they usually come out smaller. [B-02] To sum up A prepayment is an option if you find yourself in a financial position to do so. Personal loan prepayment is beneficial since it allows you to eliminate debt sooner. Prepayment of any amount on a personal loan has a good effect on credit scores, so even a small amount can help if you can’t pay it off in full. To lessen the financial pinch of paying interest during the initial lock-in period of a personal loan, you may want to extend the loan’s repayment term. The aforementioned advantages are only yours to reap, however, if you prepay the debt. Think about getting a personal loan from Piramal Finance, where you may get low rates and flexible payback terms.
08-11-2023
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