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Tax Savings

How Does Taking Home Loan Help You To Save Taxes?

Do you know a home loan serves more than just fulfilling your dream of having your own house? Have you ever figured out how taking a home loan helps you to save taxes? If NO! In this article, we will clear all your doubts related to home loan and how it helps you in many ways. Let’s get started without further ado! When you own a house, you no longer have to worry about rent and other expenses. The home loan makes it easier for you to become a homeowner. In addition, it also offers tax benefits. The Income Tax Act of 1961 provides tax benefits for home loans in the following sections: Section 24 Section 80C Section 80EE [B-01] Housing Loan and Its Benefits A housing loan helps you to buy a house where you will get funding for 80% of the cost of the property. When you purchase a new home or take out a loan, you can add a co-owner or co-borrower. The bank will mortgage your property until the loan is repaid. Here’s a list of benefits of availing of a housing loan: Tax benefits Low-interest rates Capital appreciation No prepayment charges Balance transfer facility Ease in buying a house High repayment tenure Tax benefits on the second house Tax Benefits of Home Loans To encourage people to invest in property, the government of India provides various tax benefits on home loans. But you can save your money only if you are aware of all the tax benefits. There are two components to a home loan, and both are tax deductible: Principal and Interest- SectionsNature of deductionMaximum deductible limitSection 80CPrincipal repaymentRs. 1.5 lakhSection 24Interest periodRs. 2 lakh Note: You can also claim a tax deduction on stamp duty charges Under 80C – up to Rs. 1.5 lakhs Under section 80EE – up to Rs. 50,000 Here are a few points related to home loan tax benefits: If you have already made the investments under Section 80C, then there will be no benefit to the principal. However, if you want to claim a deduction on interest payment, you can claim it after 5 years of construction. In the event that you sell the property within five years of purchase, interest taxes are deducted from your taxable income. In case you take a loan for home improvement, then interest payments will qualify for tax deduction under Section 24. These won’t lower your tax dues. In the case of the joint holder, both holders can claim a deduction in their tax returns. Principal repaymentInterestFirst Holder1.5 lakh2 lakhSecond Holder1.5 lakh2 lakh How do tax slabs affect tax benefits? It is highly advisable to invest in buying a home if you are under the 30% tax slab. For those who fall under the 10% or 20% tax slab, it is better to look at other options. Options that you can explore instead of taking a housing loan for tax benefits are: National Pension Scheme (NPS) Family Mediclaim Public Provident Fund Equity Linked Savings Scheme Sukanya Samariddhi account Life Insurance Policy A home loan has one major advantage that no other loan can match. The tax savings on home loan interest are governed by a separate section 24B up to Rs. 2 lakh. So you can claim the tax benefit on interest in this particular section. There are a few additional deductions available, which you can claim. They are: Deductions under Section 80EE A maximum of Rs. 50,000 is allowed under Section 80EE. If you want to claim this deduction, the following conditions need to be fulfilled: The loan amount should be Rs. 35 lakh or less The property value should not be more than Rs. 50 lakh During the period from 1st April 2016 to 31st March 2017, the loan must be sanctioned Individuals must be first-time house owners Deductions under Section 80EEA The government always emphasizes the importance of purchasing a house. In the 2019 Budget, this additional deduction was introduced, a maximum of up to Rs. 1,50,000. Please find below the conditions that need to be followed: The property’s stamp value should not exceed Rs. 45 lakh The loan sanctioned date should be between 1 April 2019 to 31 March 2022 The owner should be a first-time house owner Can claim only one deduction out of Section 80EE and Section 80EEA Is there an annual property tax in India for homeowners? Yes, the house owner has to pay property taxes in India. They can, however, claim it as an expense when calculating income under house property. How to Claim Tax Benefits on Home Loans? By following a few simple steps you can easily claim your tax deduction: First of all, calculate the amount of tax deduction. You should be the owner of the house or co-borrower of the loan. Submit your home loan interest certificate so that the tax deduction at source can be adjusted. Calculation of Tax Benefits on Home Loan? The best way to calculate tax benefits is with the help of an online calculator. Only the following fields need to be filled out: Loan amount Tenure Interest Rate Loan Start Date Gross Annual Income Existing Deduction Under 80C/D A tax calculator offers several advantages: Accurate results Fast calculations Easy to use How is Tax Deduction Calculated on Second Property? When one of the homes is self-occupied, and the other is vacant, individuals can claim the same tax benefits as on their first loan. However, in let-out properties, a standard deduction of 30% on the total interest payments will be there. [B-02] Wrapping Up We hope you got all your answers about How Taking Home Loan Helps You To Save Taxes. Home loans offer several benefits, but they will be most beneficial if you fall into a higher tax bracket. If you still have any doubts, you can consult a financial expert like Piramal Finance.

08-11-2023

Home Loan

How To Raise Funds To Make The Down Payment On Your Home Loan

It can be challenging to save for the down payment of a new home. And, it’s not always easy to track your expenditures and figure out the best way to set aside money for a specific purpose. Fortunately, there are plenty of ways to raise funds for your home purchase that don’t involve selling valuable assets or taking out a mortgage on your primary residence. Here are six ways to raise funds to make the down payment on your home before you apply for a housing loan. [B-01] How Do Home Loans Work? When you apply for a home loan, the lender will ask you to put down 20% of the amount you plan to borrow. In other words, the rules mandate that buyers make a payment of up to 20% of the home’s value as a down payment. Only then can the bank or lender process the home loan for the remaining 80% of the amount. The rule applies to all cases where a loan of more than Rs. 30 lakhs is needed. When looking for a home loan, you must consider two critical things – interest rate and the repayment period. A home loan involves large sums of money. As a result, you must have a long enough repayment period to repay the money without financial trouble or ruin. At the same time, you must look for the best deal for the house loan interest rate. In some cases, you will be paying off the loan for a long time – decades. A high-interest rate would result in you paying a large interest over that period. Here are some ways to arrange the down payment for the clearance of the loan: Take a Personal Loan For Down Payment In this scenario, you apply for a personal loan and put a portion of the amount you borrow as a down payment. A personal loan isn’t purpose-specific and you can put it to use the way you want without interference from your lender. Therefore, it is legally possible to use your personal loan for the down payment on your new dream home. If you are taking a personal loan for the down payment, you must remember two things. One, a personal loan is given for a relatively shorter term when compared to other types of loan, including a home loan. Two, a personal loan has a higher interest rate than a housing loan. These two points must be factored in when you are considering taking a personal loan for a down payment on your new home. Take a Gold Loan For Down Payment If you have an existing relationship with a gold lender, you can create a gold loan for your down payment. A gold loan is an unsecured loan secured by your existing assets. In this scenario, you borrow a portion of your gold as collateral for the loan. Once you apply for the loan, the gold lender will determine your eligibility, down payment, and the amount you can borrow. Once approved, you will sign an agreement with the lender. The agreement will detail the loan terms and conditions. Borrow From Friends & Family For Down Payment Another way to fund a down payment is to borrow funds from friends and family. It can be a great option if you already have a network of friends and family to seek a loan. One of the advantages of borrowing money from friends and family is that you will not be charged interest in most cases. Therefore, you can target your income and savings towards paying interest on the home loan that you plan to take. It is also better than a personal loan as the repayment will be flexible given the informality of the transaction. Withdraw From PPF Account For Down Payment You can withdraw funds from your Public Provident Fund (PPF) account for use as a down payment. It can be a great option if you have been contributing to your PPF account for some time and are now ready to withdraw the funds. If you want to use your existing contribution to fund a down payment, you need to withdraw the amount from your PPF account. The other way is to borrow against your PF money. PF account holders have the option of getting a loan against it. Moreover, the government allows partial withdrawal if the money is used to purchase a house. If you want to go with the loan option, it will be available only if you have completed five years of service. Sell An Asset For Down Payment Another way to raise funds for a down payment is to sell an asset. Even if you don’t make much money from selling an asset, you can use the proceeds to make a down payment on your home. You can even borrow against the value of the home you sell to make the down payment. You can also consider selling a piece of land you inherited from your family or shares gifted by your parents. These assets are created for difficult times and can be used when buying your dream home. You can reinvest in these when you have a home and save the rent. Take a Loan Against Your Life Insurance Policy It is one of the most surprising ways to raise funds to make the down payment on your home purchase. You can use the loan against your life insurance policy to make a down payment on your home purchase. If you do not have a large insurance policy, you can take a loan against small ones to make up a part of the down payment. It could reduce the burden significantly. [B-02] Conclusion Home is one of the most important things in a person’s life. It represents security, stability and comfort. Although it is an expensive investment, it is important to plan for your future and ensure you can afford it. There are many ways to fund a down payment on your home purchase. A home loan is cleared only when the applicant has made the down payment for the property. Read more blogs like this on the Piramal Finance website to learn more about housing loans. You can also take a look at the products and services they offer.

08-11-2023

Business Loan

How To Apply For Online Business Loan: Complete Guide And Benefits Of It

To run a business, you need funds and resources. You need funds for both the running and expansion of the business. You can apply for an online business loan depending on your business needs. There are multiple options with varied business loan interest rates. With quick disbursal and processing, business loans are a great option. But there are various aspects that you should know about an online business loan. In this guide, we have shared the complete information on an online business loan. The business loan interest rate is also low, making it a great option. [B-01] Understanding Online Business Loan A business loan is an amount available to meet the business expenses. It is both a short-term and long-term loan. The main aim of the online business loan is to help infusion funds for business quickly. You can use the business loan to: Expand Meet daily expenses Buy new machinery Expand staff Conduct research Start a new line The business loan interest rate depends on the following: Amount Nature of the business Tenure Credit score The online business loan offers you transparency. It requires minimal documentation. The business loan can be both secured and unsecured. Secured loans are those backed by collateral or guarantee. You can pledge property, government securities, savings accounts, fixed deposit certificates, gold, or other assets. It should be under your or your co-applicant name. Unsecured loans are offered solely based on creditworthiness. The income, documents, business tenure, and other factors are considered while sanctioning this loan. Factors affecting Online Business Loan An online business loan is affected by multiple factors. This includes: Your credit score is a primary factor considered. The nature of the business determines the loan amount too. The annual turnover of the business plays a crucial role. The business debt-to-income ratio should be 50% minimum for approval. Top types of Online Business Loans There are three main types of online business loans: Term Loan A term loan is a short-term loan. You can use this loan to meet daily expenses. The business loan interest rate of the term loan is comparatively low. Credit Line A credit line is similar to a credit card. You will be issued a credit limit for your business. You can withdraw money if necessary and use it for business. Invoice Funding It is also called bill discounting or invoice factoring. It is used by small firms when there is a delay between issuing invoices and receiving payments from clients. You can get an advance based on invoice value. Documents required for an Online Business Loan The documents required for an online business loan are very basic. The documents include the following: Fill out the application form online. Proof of identity Aadhar card Passport Voter ID Driving license Proof of address Aadhar card Passport Voter ID Driving license Proof of income Latest ITR Bank statement for the last 6 months. The PAN card is a mandatory document. Proof of business continuity GST Registration Trade License Copy of partnership deed Registration Certificate issued by RBI or SEBI Certificate of Practice It will need you to submit the latest audited financials if asked. Benefits of Online Business Loan There are multiple benefits of online business loans. The primary benefits to enjoy are: Paperless application An online business loan is a paperless application. You are not required to fill out any long application forms. You can go to the website or mobile application and give the required information. You can complete the application as per comfort. Repayment tenure The tenure of the online business loan is around 36 months. You can repay the amount in instalments or prepay the loan if you wish. Simple eligibility The eligibility criteria for a business loan are very simple. You should be 23-65 years of age. The business should have been running for the last four years. In the case of a new business, you should own a previously successful business. You can be self-employed non-professional, or professional. Quick processing Online business loans are processed fast. Once you submit all the details, the request is taken into processing. Once the request is approved, the amount is disbursed within 24-48 hours. No collateral needed Most online business loans do not require collateral. It is for an amount of up to INR 10 lakhs. You are not required to put in any guarantor to secure the loan you have applied for. Multiple choices available There are multiple options available for the borrower. You can apply to any of these depending on your need. You can get a term loan, working capital loan, credit line, or invoice funding. Fees and interest rate The business loan interest rate is very cost-effective. Also, the processing fees are quite nominal. The rate charged by other moneylenders is very high. You can meet your business needs without having a high cost. The interest rate is around 17% PA. Builds credit history Applying for an online business loan helps to build a credit history. Timely repayment of the EMIs can improve prospects of acquiring high-value loans. Process to apply for an Online Business Loan The process to apply for an online business loan is very simple. You just need to have your documents and a stable internet connection. The following are the steps: Visit the lender’s website. Fill in the information in the online application. Make sure it is accurate. Upload all the necessary documents. Ensure to keep the images are legible. Wait for some time till the lenders go through the documents. Once the papers are verified, you will get approval. Get the loan agreement signed. Submit the document back on the portal. The money will be disbursed to your account within 24-48 hours. [B-02] Conclusion Online business loans are a boon for business owners. It offers hassle-free and quick funding to meet immediate business needs. The documentation process for the business loan is quite simple. Also, the business loan interest rate is quite friendly. This a great option to meet your immediate financial needs. It is offered without any security and with minimal documentation. It supports business expansion. You can apply for an online business loan from your mobile or laptop. To get more information on the same, you can visit Piramal Finance. The loan process is transparent, saves time, and is convenient.

08-11-2023

How To?

How to Apply for a Gold Loan | Steps to Apply for Gold Loan

A lot of individuals struggle to meet their everyday needs. That’s because the pandemic-related decline in the global economy is apparent. The only way to help you fulfil your financial obligations is with a gold loan. Gold loans are secured loans where you pledge your gold assets as security to get cash for unforeseen expenses and other needs. If you require short-term finance, gold loans are more affordable than credit cards and personal loans. But before approving a financial arrangement, full awareness is required. [B-01] What Are Gold Loans? In return for gold-related goods, lenders provide their customers with loans that are secured by gold. Typically, a percentage of the gold’s value is provided as the loan sum. The maximum credit amount that may be obtained depends on the gold loan amount per gram of gold, the amount of the gold being pledged, and other eligibility restrictions. It’s crucial to understand these factors in addition to having a fundamental understanding of what gold loans are. Borrowers must return the loan in instalments during the loan to get their gold items back (which might be made monthly or according to other predetermined repayment schedules, depending on the loan terms). When you understand what gold loans are and how to get them, you’ll see that they’re the best to use for important occasions and costs like weddings or unexpected obligations if you are convinced you can repay the loan quickly. Benefits of Gold Loan When obtained from respectable businesses, the best gold loans provide the borrower with a broad variety of benefits. Following are a few benefits of a gold loan: Little paperwork is needed since your gold will serve as collateral for the loan. Identity and address documents must be provided. No proof of income is needed. You have the option of paying the principal balance in full or only the interest after the loan period. You might save a lot of money since gold loans offer lower interest rates than personal loans. A gold loan has benefits such as fast processing and rapid distribution of borrowed funds. Loans secured by gold may easily be converted to cash. This loan has security. Therefore, having a poor credit history won’t prevent you from acquiring a loan. Gold loans have either zero or extremely low processing fees. How Do Gold Loans Operate? The fundamentals of gold loans are straightforward. A gold loan requires the customer to provide the gold to a lender in the form of coins or jewellery. It is possible to borrow up to 75% of the value of the pledged gold products. An Indian citizen who possesses items containing gold is eligible to apply for a gold loan. When you present the gold item to the lender, an assessor will look it over to make sure it is of good quality and is worth what it is currently selling for. As soon as you agree to the loan balance and any associated fees, you may start the paperwork. After accepting your loan, the lender will retain the gold and deposit the funds into your bank account (in possession, not ownership). The loan balance plus a lender’s interest should be repaid during the repayment procedure. A substantial loss or price decline for gold is often not very likely. Lenders are motivated to lend money because gold’s value is guaranteed to rise over time, unlike the other assets that can be used as security. Steps to Apply for Gold Loan and Eligibility Criteria Online or offline applications are accepted for gold loans. You must go to your nearby branch to submit an offline loan against a gold application. You may follow the procedures listed below to apply for a gold loan online: First, go to the Piramal Finance website. Select “Gold Loan” from the list of options under “Apply Now.” Complete the online gold loan application by providing your name, contact information (including email address), and residence address. Choose your state, city, and closest branch in the fourth step. To submit your gold loan application, click “Submit.” Write down the number on your reference id. A representative from the company will contact you soon. Eligibility Criteria You must be at least 18 years old to qualify for the eligibility criteria for a gold loan. Your source of income must be stable. What Paperwork Is Needed in India to Get a Gold Loan? The following records are necessary for an Indian gold loan: A PAN card, an Aadhar card, a driver’s license, a voter’s ID card, or a duplicate of a passport may be used as identification. Aadhar cards, driver’s licenses, voter ID cards, passport copies, landline/postpaid bills, water bills, electricity bills, or rent agreements (together with the most recent owner’s electrical bill) are all acceptable forms of identification as proof of residency. A pair of current passport-sized pictures Interest Rates on Gold Loans Gold loan interest rates range from 7% to 18%. The main things that affect the interest rate are the size of the loan and the borrower’s monthly income. The gold loan interest rate will be higher if you borrow more money. The interest rate will be lower if you have a stable, high income. The loan’s value is directly linked to how much gold you have. The purity of the gold doesn’t make a big difference in the interest rate. If you pay off the loan well before the pre-scheduled payback term of 3-6 months, certain NBFCs and banks may assess a foreclosure cost of up to 2%, excluding GST. A minimum service charge of Rs. 500, or 0.5% to 2% of the loan amount, is further charged. [B-02] Conclusion One of the first things you should consider before applying for a gold loan is the interest rate. Even though they have high-interest rates, gold loans are often obtained since they are a quick method to get funds. Take your time taking out a loan with a high-interest rate. The more you must pay each month, the greater the interest rate. To know more about how to apply for a gold loan, follow Piramal Finance.

08-11-2023

Cards

How to Change Credit Card PIN Online

With a credit card, you can instantly buy something and pay for it later. The credit card company will send you a monthly bill based on how much credit you use. So, a credit card is a very important financial tool. But with everything now being digital, many credit card scams occur daily. A PIN is a 4-digit number used to identify the card details. When you pay with a credit card, the payment service checks to see if your user ID and PIN match, and only then does it let you pay. When you take money out of an ATM, the same rule applies. Suppose your user ID and PIN are different. The transaction will not go through. To keep your credit card safe, it is very important to choose a strong PIN. Remember it, and change it every few months. Initially, with the welcome kit, you get a PIN for your credit card. Once you get the kit, you should change the PIN for safety. But the question is how to change the credit card PIN or how to generate a credit card PIN. If you want to know the answer, continue reading. [B-01] What is a Credit Card PIN? A PIN and a 4-digit chip protect a credit card. The four-digit number is a unique identifier given to every card user. Users need the PIN for every single transaction they do with the card. Whether you’re taking money out of an ATM or shopping online, you’ll need to give your credit card PIN to confirm the transaction. Due to this system, it is safe to use credit cards to buy things. It is very important that you never tell anyone your PIN. Activating Credit Cards You will get a 4-digit PIN with your credit card welcome kit. The first thing you should do when you get a new credit card is to change the PIN. You can’t use your credit card until you create a new PIN. The process has become much easier because most cards are no longer sent out already activated. Instead, they need a PIN to be used. Activating a card and making a new PIN are two separate things that users need to do. With “green” or self-generated PINs, making and changing PINs for credit cards is now easier. How to Generate a Credit Card PIN? You can create a credit card PIN at ATMs or online through the net banking account. How to Generate a Credit Card PIN via ATM? Step 1: Put your credit card in the ATM and select the language you want to use. Step 2: Tap “Create PIN using OTP.” Step 3: As soon as you click on that, a “One Time Password” will be sent to your registered phone number. Step 4: Put the OTP in. Step 5: Now, type in a 4-digit PIN of your choice. Step 6: Type the PIN again and click “Submit.” Step 7: After that, the bank will tell you that your PIN has been made. Call the bank if you have a problem while generating the PIN. How to Generate a Credit Card PIN via Net Banking? Step 1: Go to your online bank account and sign in. Step 2: Select “Credit card options.” Step 3: Hit the “Change PIN” button. Step 4: The bank will then send an OTP to the phone number you gave them. Step 5: Type in the OTP, then click “Continue.” Step 6: Type the PIN you want. Step 7: Retype the PIN and click the “Submit” button. Step 8: After that, the bank will inform you that your PIN has been generated. How to Change The Credit Card PIN? How to Change a Credit Card PIN through an ATM? Step 1: Place your credit card in the ATM and select the language you want to use. Step 2: Enter your credit card’s existing PIN. Step 3: Press “Change PIN.” Step 4: Once you press that, a “One-Time Password” will be sent to your mobile phone number. Step 5: Type the OTP. Step 6: Now, enter a new 4-digit PIN of your choice. Step 7: Type the PIN again and click “Submit.” Step 8: The bank will tell you that your PIN has been modified by sending you a message. How to Change a Credit Card PIN With Net Banking? Step 1: Go to your online bank account and sign in. Step 2: Select “Credit card options.” Step 3: Hit the “Change PIN” button. Step 4: After that, the bank sends an OTP to your registered phone number. Step 5: Type in the OTP, then click “continue.” Step 6: Enter your preferred PIN. Step 7: Retype the PIN and click Submit. Step 8: You will get a notification from the bank that your PIN has been updated. Tips to Keep Your Credit Card PIN Safe Make sure you are alone in the ATM while using your cards. Ensure that no fake card readers are attached to the card slot. You can check if the card slot is real by giving it a light shake and seeing if it moves and seems loosely attached. You should never tell anyone your PIN or write it down. Make sure not to send it through email, text, etc. Choose a PIN for your credit card that isn’t easy to guess, like your birthday, your parents’ birthdays, etc. Keep it simple, but don’t give anything away. Don’t save your PIN on internet sites where you buy or sell things online. Also, don’t let your credit card PIN be saved automatically on sites where you buy things. Use webpages that start with “https” for payments because they are safe and will protect your personal information. As a safety measure, you should change your PIN often and check your bank statements to see if anything strange has happened. Try not to use the same PIN for all of your cards. If one of your cards is stolen, it could mean the same for your other cards. Don’t give your PIN to anyone who asks for your personal information, even if it’s someone who works at the bank. Also, watch out for phone calls and emails that trick you into giving out your credit card number or other private details. [B-02] Wrapping Up The bank gives you a four-digit Personal Identification Number (PIN) when you get a credit card. This is to make sure that your transactions are safe. When you use your credit card to pay for something, you must verify the payment by entering your unique PIN. If you know how to change your credit card PIN, you can change it anytime to protect yourself from fraud. Piramal Finance has more blogs related to managing your personal finances. Visit their website to learn more and check out the products and services they offer.

08-11-2023

Home Loan

Explore the Various Uses of a Home Loan EMI Calculator

For many people, having a home is among the most crucial aspects of life. But buying a home is difficult because of high real estate costs and a lack of funding. Home loans have made it easier for the average person to get money. But any credit, including home loans, comes with many responsibilities. Thus to get an idea about your EMIs, you can use a home loan EMI calculator. Before borrowing a lot of money, knowing where your money is going is essential. To get a home loan, you need to plan because the repayment period is long and will affect your funds for a long time. If you know ahead of time how much you spend each month, you can avoid financial problems. It’s a free tool that only needs a few details from you to figure out the monthly payments. You can also figure out monthly payments manually, but it’s a bit of a hassle. Let’s start by using the home loan EMI calculator. [B-01] Importance of EMI EMI means Equated Monthly Installment. Each EMI comprises a part of the loan’s principal and the interest the bank charges to the lender. After each EMI is paid, the amount of the principal loan that is still owed goes down. The loan amount, the length of the loan, and the interest rate are all things that can make or break an EMI. For the same loan balance and interest rate, the EMIs will be lower with a longer tenure and higher with a shorter tenure. There are multiple ways to figure out a home loan’s monthly payment. A home loan EMI calculator is one of them, among others. But, just before we get to that, it’s important to know a few key terms. What is a Home Loan EMI calculator? The Home Loan EMI Calculator is a tool you can use online to figure out your monthly EMI. The calculator will tell you exactly how much EMI has to pay based on some information about home loans. It also has a chart that shows when payments will be made and how much the total payment will be. Benefits of Home Loan EMI Calculator There are many benefits to using the home loan EMI calculator. This online tool enables you to plan your home loan carefully. Let’s look at some benefits of a home loan EMI calculator. It is Easy, Convenient, Quick, and Right: When planning a home loan, you can’t go wrong by looking at the numbers. Manual calculations can cause errors. The home loan EMI calculator solves this problem because it always gives you the correct answers. Quick Calculations: Making calculations about your loan with a pen and paper will take hours. These calculations, however, can be performed with a single mouse click using the EMI online calculator. With this online EMI calculator, you don’t have to keep checking and rechecking your work. Planning for Money: You can avoid future money problems by using the EMI loan calculator. If you know the monthly payment for your home loan ahead of time, you can better plan your budget and get a payment that fits your needs. Good for Loan Management: With EMI payments, people sometimes have extra money that they can use to prepay. The home loan EMI calculator can help people look at their finances and figure out how the down payment will help them pay off the loan before the due date. Examining Loan Offers: A loan calculator lets customers compare offers by different banks. The results show each EMI and the total cost of borrowing. This will help clients choose the best loan for their needs by narrowing down their options. No need for personal information: You don’t have to worry about security when you use a home loan EMI calculator because you don’t have to give out your personal information. This makes it entirely safe to use. You may have had trouble getting a home loan, but now you’re ready to start the route to your new home. If so, the next step is to use an online loan calculator, like a home loan EMI calculator, to figure out your EMI. Some Steps to Calculate Home Loan EMI Here are three easy steps to use a home loan EMI calculator to figure out your EMI: Step 1: Put the home loan amount into the calculator. Find out how much the house you want to buy will cost, such as stamp duty and other fees. Then, figure out how much money you have saved up that you can use as a down payment on the loan. You can figure out how much of a loan you need by taking the down payment from the total cost of the property. Put this loan amount into the calculator to get to the first step of figuring out your EMI. Step 2: Put in the repayment tenor Lenders let people take a long time to pay back their home loans. Think about how long it will take you to pay back the loan. Then, put the number of years it will take to pay off the loan into the home loan calculator. Step 3: Type in the rate of interest Find out how much interest the lender charges. To finish the last step of the calculation, insert this interest rate into the calculator. Once you’ve put in all the numbers, you can click “calculate” or “enter,” and the house loan calculator will figure out the exact EMI you’ll have to pay for the loan. [B-02] Conclusion Most people are making EMI payments for multiple loans at once. If you belong to this group, you already know that taking on additional loans will impact your financial situation. The home loan EMI calculator allows you to take into account your other loans and guides you in choosing the tenure and rate of interest after figuring out the other payable EMIs. If you have the money to pay off your mortgage (or other loans) before the term is specified, you can also easily calculate the costs associated with the foreclosure. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Dream Mobile

How to Link Your Aadhaar Card with Your PAN Card and Mobile Number

In India, Aadhaar and PAN cards are common identity proofs. The government has made Aadhaar and PAN linking with a mobile number mandatory. Citizens should link their Aadhaar, PAN, LPG connection, and bank accounts. It helps the government keep track of citizens’ financial activities and helps prevent tax evasion and fraud. Linking your Aadhaar and PAN with your mobile number is a fairly simple process that you can do online from the comfort of your home. This article outlines the steps for Aadhaar and PAN linking with mobile numbers. [B-01] What are Aadhaar and PAN? Aadhaar Card is a unique identification document issued to every citizen of India, irrespective of age, gender, and profession. It contains 12 unique digits along with contact details and biometric information. The income tax department sanctions PAN cards for citizens of India. The PAN card contains a ten-digit unique number. Every taxpayer must have a government-issued PAN card. How to Link Aadhaar with PAN Card? The Government of India has extended the Aadhaar and PAN link dates to December 31, 2023. The last day to link without paying the fine of Rs. 1000 was March 31, 2022. PAN and Aadhaar linking can be done via online or offline modes. Apply online via the official income tax portal. Further, you can submit the documents mentioned for offline Aadhaar and PAN linking. Documents for PAN and Aadhaar Card linking PAN card Aadhaar card You can easily link your Aadhaar and PAN card online by following two simple steps:- Step 1: Pay the fee of Rs. 1000 on NSDL under the little head (500) and major head (0021). You can visit the Income Tax Payment Page and select Challan No. ITNS 280 under the non-TDS category. On the next page, you can select (0021) and (500) one by one. Scroll down to fill in the personal details like address, contact, and PAN card details for FY 2023–24. Now select the mode of payment for fees. Step 2: Deposit the Aadhaar and PAN link requests for 2023–2024. Follow the page and make payment for submitting the final application for the PAN and Aadhaar link. It usually takes 4-5 days to update and link them. There are three other methods to link your Aadhaar and PAN card. Method 1: You can link your Aadhaar and PAN card via SMS. Method 2: You can link via logging into your account. Method 3: You can link without logging into the account. You may check each step of the Aadhaar and PAN link methods. You will be able to choose wisely. Method 1: You can link your Aadhaar and PAN card via SMS. Send SMS to 567678 and 56161 from your registered mobile number. Use any one number to send an SMS. UIDPAN<SPACE><12 DIGIT AADHAAR><SPACE><10FDIGIT PAN> For example, UIDPAN 123456789123 HMRP1234L Method 2: You can link via logging into your account Step 1: Visit the income tax e-filing website and register if you have not already. Step 2: Fill in the user ID and password to log into the portal. Step 3: Go to “My Profile” and select “Link Aadhaar” under the “Personal Details” options. Step 4: Enter personal details like name, gender, DOB, and all the other details asked in the e-form. Fill in the Aadhaar number and double-check all the information. Give your consent to proceed and hit the Link Aadhaar button. Step 5: The screen will show pop-up messages informing you to accept the application. Method 3: You can link without logging into the account. Step 1: Visit www.incometax.gov.in and select the tab “Our Services” from the bottom. Step 2: Enter the PAN and Aadhaar card numbers on the page and click Proceed. The page will now show a payment message on the e-filling portal. You have to verify by clicking “Continue” and “Link Aadhaar.” Next, fill in the required details and submit a six-digit OTP to verify. You have successfully linked your PAN and Aadhaar cards. Follow the steps below to check the Aadhaar and PAN card link status: Step 1: Visit the e-filing portal of the income tax department. Step 2: Go to ‘Quick Links” on the homepage and select “Link Aadhaar Status.” Step 3: Enter your Aadhaar and PAN card numbers. Step 4: Click “View Link Aadhaar Status” and know the status. The website will show you the Aadhaar and PAN card link status. If the cards are linked, you can fill out the income tax return form. If the cards are not linked, then a pop-up will appear below. Now, if your mobile number is not linked to your Aadhaar, then you may check the steps below. How to link Aadhaar with a mobile number? Here are ways to link your Aadhaar with your mobile number without visiting your mobile operator. New SIM users can link their Aadhaar to their mobile number. Those who wish to get a new SIM and want to link it to their Aadhaar can visit the nearest mobile operator and follow the below steps: Buy a SIM card and provide an Aadhaar card copy and electricity bill as address proof. Complete the biometric scan to verify your Aadhaar. You can take your new SIM after verification; it will be activated in one hour. You can link your Aadhaar card with your mobile number online using an OTP by following the steps given below. Go to the telecom operator portal website from your phone. Enter the mobile number and request the OTP. OTP will be sent to the registered mobile number. Enter your OTP and proceed further. The user has to accept the terms and conditions and click Proceed to link Aadhaar with their mobile number. The user will receive a confirmation on the verified mobile number. [B-02] Conclusion The Government of India urges citizens to link their Aadhaar and PAN with their mobile numbers. It helps the government keep track of financial activities. For more such informative articles, visit Piramal Finance. They also offer a wide range of financial products and services. You can browse the various products and services on offer.

08-11-2023

Personal Finance

How Do I Teach My Child Financial Planning?

Schools teach only a few basic life skills. Financial literacy is not a part of the school’s curriculum. But, financial planning is a necessary life skill for every child. So, parents should start teaching their kids money management from a young age. 96% of parents feel that their children don’t have financial literacy. To teach financial skills, parents should talk with their children about making, spending, and saving money. There are age-appropriate activities to teach your kids the value of work and money. Teaching them budget and savings will help them understand the benefits. They must know how to manage their finances in the digital world. [B-01] Financial Responsibility – Why is it Important For Kids? 93% of teens in India are interested in digital payments. Yet, only 22% of those are confident about using it. Modern teens are self-opinionated and independent. Empower them with financial literacy to help them manage finances in a better way. Newer investment methods are available now, and today’s youth are more interested in crypto assets. Teaching financial planning right from a young age is important because it helps in: Understanding financial health Realising the importance of budgeting Instilling saving habits Avoid impulse shopping Planning before spending Knowing the rewards of a financially secure future Age-Appropriate Tips To Teach Financial Planning To Kids Experts say that you can teach your young child financial planning when they can start asking what they want. Children as young as one-year-old are capable of making simple decisions. Hence, teaching financial responsibility should begin at the preschool stage. Simple activities in everyday life will help them learn about money and its importance. Pre-Schoolers And Elementary Kids (7 And Under) Talk About Money Pre-schoolers understand the world around them by observing. Include money conversations in your household to teach financial skills. It is not good to scare your children with conversations about debt. Share your enthusiasm for savings and bargains. The important phrases to teach financial skills to preschool kids are share, save, and choose. Shop With Children Take your children shopping. Talk to them about discounts, deals, and how you can save money by choosing products from the sales rack. It will help them understand pricing and value. During checkout, encourage them to give cash at the counter and get the change back. Using real money instead of cards will help them understand that money is a tangible entity. Start a Savings Account Kids are always excited about piggy banks. Encourage them to put more money into the piggy bank to get their favourite toy. You should also start a savings account in the name of your children. Whenever your kids receive a large amount of money during the holidays, ask them to deposit it in their bank account. Include Math Games Playing grocery shopping, restaurant games, etc., at home will be interesting and educational for your child. Encourage your children to exchange fake money for goods and services. It will help them understand money exchange in the real world. When your kids are a little bigger, play math games. Give them a simple calculator to add and subtract numbers. Many apps are now available to teach maths to young kids. Older Kids And Teens (8-12) Encourage Them to Use Their Skills To Earn Older elementary kids can start making some money using their skills. Experts suggest that you don’t pay your kids for their chores. Instead, make them work outside the home and earn money, even if it is very small. For pet-loving kids, show them they can walk their neighbours’ dogs and get paid for it. If your kids enjoy crafting, they can make something and sell it to friends and family. Work with them to create a small business plan. Teach them how to add the cost of supply and work hours to fix the price of their product. If they are using skills like raking snow, dog walking, etc., they can also learn about pricing non-tangible entities. Talk to them about your job and how it helps turn your skills into money. When they see you excited about your job, they will become interested in making money. Talk More About Spending When your kids have saved enough in their piggy bank, they will want to discuss using it. Encourage them to find a good use for their savings. Use positive reinforcement to help them understand whether they are making good use of their money. They can splurge on sweets, buy a new video game, or buy something they have always wanted. Teach them about needs and indulgences by making them understand the consequences of their choices. If your child wants to buy a toy that was not budgeted, let them know that it will come out of their savings. Inculcate Philanthropy Talk to your child about donations and how they can help the less fortunate. Encourage your child to donate. Let them give away a portion of their savings for a charitable cause. It will teach them to spend money for the benefit of others. Teens And Older Kids (13+) Use Apps to Track Money Older kids have bigger allowances. They need to know the right way to budget and spend. Apps are available to track debit cards and wallets. Parents can make direct deposits on debit cards that their children can use to spend. The tracking app will help them understand where their money went. However, providing a credit card for teens is not a good idea unless they earn to make their credit card payments. Talk More About Spending And Saving Communication is the key to imparting financial planning knowledge to teens. Talk to them about controlling spending when going out with friends or on dates. Show your kids that you have been saving up for their college funds since their birth. Encourage your kids to research ways to pay for college. Enrol them in scholarships wherever applicable. Your kids should also learn that their education has a financial impact on you. Introduce them to investments. Provide them with the knowledge to choose stocks and track their value. [B-02] Conclusion India has great potential to be one of the top financially literate countries in the upcoming years. The country has 27.6% of people in the prime age group of 25-44, which can go up by 20%. Parents have a huge responsibility to help them learn about financial planning. If youngsters have a good financial education, it can increase their standard of living and improve the country’s economic growth. A financially savvy population will have a positive global influence. To learn more about financial planning for kids, visit Piramal Finance to access guides, tips, and tools.

08-11-2023

Personal Loan

A Quick Guide: 5 Easy Steps To Get A Personal Loan In India

Personal loans are short-term loans that can be used for a wide range of purposes. For example, you could use a personal loan to pay off your debt, fix up your house, or plan the wedding of your dreams. Personal loans are available from banks, credit unions, and online lenders. When you borrow money, you have to pay it back over time, often with interest. Personal loans in India work the same as how most other loans work. When you want a loan, you fill out the paperwork and send it to the bank. The bank checks your creditworthiness and then gives you a loan. When you say yes, the money will be sent to your bank account and you can use it however you want. Personal loans in India are on the rise because they are becoming more popular and people want them. People can easily take advantage of the many benefits of a personal loan. [B-02] Why Should You Acquire a Personal Loan in India? Personal loans in India have several benefits. You should consider them if you’re trying to decide between a credit card, another type of loan, and a personal loan. It will help you make an informed choice in the long run. Here are the main benefits of personal loans: Easily spreads out the cost of a big purchase - A personal loan lets you spread out the cost of a big purchase like a vacation, wedding, or new car over a longer timeframe. This makes it much more affordable. And, it also means you won’t have to cut back on your own finances to pay for it. Teaches you to take care of your own money - Personal loans aren’t always used to buy big things. You can also use them to better handle the debt you already have. This comes in the form of a debt consolidation loan. In this loan, you combine several debts, such as those from credit cards, overdrafts, and old loans, into one product. You could save money on interest because you will only pay one rate instead of multiple rates which could add up to a higher total cost. No collateral or security is required - By choosing an unsecured personal loan, you avoid the risk that comes with a secured loan which requires you to put up your home or another asset as collateral. This type of borrowing is based only on your credit score. Hence, you do not need to put up anything else as security. What Are The Different Kinds of Personal Loans in India? Personal loans are one of the quickest ways to get money. But a lot of us are unfamiliar with the different kinds of personal loans in India. Let’s check them out. Short-Term Personal Loan A short-term personal loan starts at Rs. 25,000 and can be paid back to the lender in a few months. This personal loan adds money to your account within a few hours and doesn’t require much paperwork. Wedding Loan The goal of this loan is to help families and couples deal with the stress of paying for a wedding. It can be used to pay for big things like the venue, where guests will stay, jewellery, food, decorations, etc. Most of the time, the rates on these loans are higher during the wedding season. Travel Loan This is the kind of loan you should get if you’re planning a trip and want to pay for it without using up your savings or messing up your monthly budget. A travel loan can get you the amount you need faster and at a lower interest rate. Agricultural Loan Farmers can get this type of personal loan in India that will help them buy equipment, tools, and raw materials that they need for farming. This loan has a very low-interest rate, which encourages farmers to make more money with what they do. Home Renovation Loan As time goes on, your home and way of life should change, too. As the name suggests, this loan can help you pay for repairs or improvements to your home. So, if you wanted to fix that leaky ceiling or get wood floors, this loan can help you do that without putting a dent in your savings. Medical Loan A medical loan is a type of personal loan that you use to pay for things like surgery, routine medical procedures, and trips to the emergency room. You can also use a medical loan to pay for high health insurance deductibles or to consolidate medical debt. Get a Personal Loan in India With These 5 Steps Apply Online - If you want to apply for a personal loan in India, the first thing you’ll need to do is fill out an application form. This form will ask you for information about yourself and your job. The lender will get a better idea about your background and income here. Lender verification - When the lender gets your loan application, they check the information you gave. They specifically look at your age, monthly salary, profession, etc., to see if you are eligible for the loan. KYC process - Once your basic information has been verified, the lender will start authenticating the documents you sent with your application form. Maintain a good credit score - On average, to get a personal loan in India, you need a credit score of 600 or higher. But, as was already said, different lenders have different credit score requirements. When you apply for a personal loan, your credit score is a big part of whether or not you will get it. Processing fee - Once the loan amount and tenure have been decided, you’ll have to pay a processing fee to get the loan money. After you pay the fee, the personal loan amount will be sent to your account in 3–5 business days. Conclusion Personal loans are becoming increasingly popular in India. The trend can be attributed to the numerous advantages that these loans offer. With a personal loan, you are free to use the money for whatever purpose you see fit. Personal loans, in contrast to others, are simple to obtain, have interest rates that are reasonable, and require a minimum amount of paperwork. To learn more about personal loans in India, Piramal Finance has similar blogs for you to gain insight from. As an emerging loan lending platform, they also offer a wide range of products and services for you to benefit from.

08-11-2023