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Education

How to Prevent Aadhaar Card Misuse?

The Aadhaar card has become one of the most important ways to prove your identity in India. You need it to open a bank account and file income tax returns, among other things. It is very crucial to keep the Aadhaar safe and stop people from misusing it. The Indian government has taken several steps to make Aadhaar more secure. The Unique Identification Authority of India (UIDAI) has a way for you to lock and unlock your Aadhaar number. This makes it possible to make a person’s Aadhaar number even more private and safe. [B-01] All About the Aadhar Card Number The Aadhaar number is the 12-digit number on the Aadhaar card that was given to you by the UIDAI. This is used to prove your identity and where you live to receive government benefits and assistance. While the Aadhaar card isn’t a permanent residency document, it is widely accepted as proof of identity and address. It is very important to protect the Aadhaar card and stop people from misusing it because of this. The UIDAI has many security features that can be used to protect your Aadhaar card. If you don’t have your Aadhaar card with you, you might use the virtual ID instead. To learn more about stopping your Aadhaar card misuse, read this article. Tips to Prevent Aadhaar Card Misuse Locking the Biometrics of Aadhar Card Online Use the online method to temporarily lock the Aadhaar card so that it can’t be used by someone else. You can check your Aadhar Card status on the UIDAI website. To lock your Aadhar, follow the steps below: Go to UIDAI’s official website. Tap the “Lock/Unlock Biometrics” option and send the declaration. Enter the number on the Aadhaar card that starts with “Aadhaar.” Enter the captcha code to move forward with the verification. Now, choose the option “Send OTP.” In 10 minutes, you’ll get an OTP code on the phone number you gave when you signed up. After entering the OTP code you get, tap the “Enable locking feature” option. The biometrics on your Aadhaar card will be blocked. Locking the Biometrics of Aadhar Card via SMS The first step in locking the Aadhaar card is to submit an OTP request. It can’t be misused through SMS. The layout of the SMS should be “Get OTP (the last 4 or 8 digit numbers of the Aadhaar Card)”. Send another SMS after receiving the OTP to lock your Aadhaar card. The text should look like this: “Lock UID (last 4 or 8 digits of Aadhaar number) and 6-digit OTP.” Email and mobile OTP registration For any digital services you want to use with your Aadhaar card, you will need to use the OTP that is sent to your registered phone number and email address. So, you need to link your email address and cell phone number to your Aadhaar card. The government has introduced a new feature called “time-based OTP” or “TOTP” to stop people and institutions from abusing OTPs. With TOTP, you can create a unique code that lets you use your Aadhaar card to get services. Using Virtual ID in Place of Aadhaar Number The Aadhaar Number can be used to get a 16-digit code called a “virtual ID” from the UIDAI website. You can keep using this ID until you create a new one. Virtual ID can be employed everywhere to replace your Aadhaar card and it also helps keep your Aadhaar card safe. It is fine to give your virtual ID to an institution as part of a KYC procedure or to verify the information. Once the process is done, you should create a new virtual ID so that your private details are safe and no one else can see them. As a result, Virtual ID is an excellent replacement for the Aadhaar card. Things to keep in mind Below are a few things you can do to stop Aadhaar card misuse: If your Aadhaar card is locked, you can’t use its biometric as a temporary way to prove who you are. Since you won’t be able to use the biometrics on your Aadhaar card, some of your bank transactions may be affected or take longer than usual. The OTP is the only way to get into the biometric part of your Aadhaar card. You’ll get an SMS with the OTP on the phone number you gave when you signed up. UIDAI’s service of locking and unlocking is free of charge. Before giving out your Aadhaar card information, you should always know why you are being asked for it. Never tell anyone your OTP. [B-02] Conclusion The Aadhaar card is a national ID that has a unique number for you. It is a valid form of ID and proof of address that is widely accepted. It lets you get a variety of services. In India, many facilities where you display your Aadhaar could keep paper copies of it. But they are not allowed to do that. UIDAI has made a lot of services available. They do this so that customers can keep their Aadhaar cards from being misused. Follow Piramal Finance, as it is a great financing option for everyone. Visit their website to learn more about such interesting topics.

08-11-2023

Personal Loan

How To Get A Personal Loan For Studies Abroad

Every year, students from India apply to colleges and universities in the US, UK, Singapore, Australia and many other countries to get their undergraduate or postgraduate degrees. Many families choose to take loans to finance their education. In such a financial situation, a student loan for studies abroad is often the first choice because it has low interest rates and good repayment terms and conditions. But getting a student loan can be difficult because it requires a lot of paperwork and detailed assessment by the lender. For this reason and more, a personal loan for study abroad purposes is a great option. [B-01] What Are Personal Loans Personal loans can be used for different purposes, depending on your needs. This includes paying for an education. The best aspect of taking out a personal loan for study abroad reasons is that you do not have to offer any of your assets as collateral since personal loans are unsecured loans. Personal loans are approved by lenders based on your income, credit history, ability to pay back and some other factors. Using a personal loan to finance an education allows students to use the loan amount for their fees as well as other related expenses such as accommodation, travel, academic materials and more without any restrictions. What Are Education Loans or Student Loans Education loans can help students finance their education. They are especially helpful for students who do not have access to money to pay their fees and other academic expenses. Education loans help students lessen the burden of their education-related expenses and allow them to plan their academic and professional future. Many lenders offer student loans for studies abroad and these loans can be used by students for multiple purposes, according to their various needs. Why Take a Personal Loan For Study Abroad Purposes A Single Loan Can Cover All ExpensesYou can use a student loan only for educational expenses. On the other hand, personal loans can be used to pay for plane tickets, food, housing outside of the college campus and much more. Flexible Tenure and Loan Amount With a personal loan, the loan amount can be increased if there is an increase in tuition fees, for example. Moreover, the term of personal loans can be extended to up to 60 months. Also, a student can take a personal loan of an amount of up to Rs. 75 lakh. Affordable Interest Rates The interest rate on education loans depends on multiple factors such as your academic record, the educational institution you intend to study in and the duration of the course. But the interest rates on personal loans can be much lower since they are based on your credit score and whether you meet the lender’s eligibility requirements which include age and other factors. Minimal Documentation Required Not much paperwork is needed to get a personal loan, but there are strict rules about who can get a student loan for studies abroad. People can get a personal loan for studies abroad if they have documents to prove their identity, job history, income and a good credit report. If the student does not have a source of income, their parent or guardian has to be the guarantor. Features of a Personal Loan For Study Abroad Purposes When applying for a personal loan for study abroad reasons, you should keep in mind these important aspects of a personal loan: Credit ScoreThe person who wants to borrow money should check their credit score before applying. Lenders look at credit scores to decide whether or not to approve personal loans. On a scale from 300 to 900, 750 is considered an ideal score. Loan AmountStudents and parents should carefully calculate all of their costs such as travel, housing, study materials, tutoring and more. They should also take into consideration the cost of living in the host country and apply for a sufficient loan amount. Interest RateStudents who want to study abroad should opt for a long-term personal loan so they can repay their loan in affordable EMIs once they get a job. In this context, it is important to check the interest rate being offered by the lender. Before applying for a personal loan for study abroad reasons, it is crucial to follow this process which begins with selecting the right lender to ensure you repay your loan on time. This is the process to be followed: Research different lenders and find out their interest rates, loan approval process, details on loan tenure and more. In addition to these important factors, check if they offer good customer service and other services you may require. Complete and submit the application form, which is either in person at the nearest branch or online. Submit or upload all the relevant documents along with your application form. It is important to read the loan offer document before you sign the loan agreement. Once the personal loan is approved, you are free to use the personal loan amount for any expenses you may have. Strictly follow your repayment schedule to ensure you do not default on your payments. Making your EMI payments on time can help you improve your credit score. Documents Required For a Personal Loan For Study Abroad Purposes Ensure you prepare the following documents before you apply for a personal loan for study abroad purposes: Identity proof documents such as a passport, Aadhaar card, passport, etc. Address proof documents such as a driving licence, passport, electric bill, etc. The last six months’ bank statements Passport-sized photographs [B-02] Conclusion Compared to other types of loans, the application and approval process of personal loans are simple. Personal loans can help students finance their education and give them many other benefits as well. While student loans for studies abroad are a popular option, personal loans for study abroad purposes are advantageous for many students since it allows them to get a loan without collateral. Furthermore, the eligibility requirements for personal loans can be met easily. For more information on personal loans, visit Piramal Finance to read more useful articles and receive guidance on education and personal loans!

08-11-2023

Personal Loan

How to Get a Personal Loan at the Best Possible Interest Rate

Personal loan interest rates are rising as the Reserve Bank of India (RBI) tries to curb record-high inflation. RBI does this to make lending more costly and to slow the economy, ideally without causing it to enter a crisis. Yet, rising rates imply that loans become more costly and less appealing than the pandemic’s record high demand. But could you still receive a personal loan with a fair personal loan interest? Here are some tactics to get a personal loan at the best rates. [B-01] Features of a Personal Loan No need for an asset A personal loan is unsecured. This implies you won’t have to provide security to get your loan. While this may cause your interest rate to increase, matching the eligibility rules can easily get you a low-interest rate. The least amount of paperwork is requiredIn this day and age, verification and paperwork are much faster. This is true for personal loans since they are quick to get and only need a few approval papers. Simple approval Personal loans are available with fast and simple approval. This is why it is the ideal option in times of money crisis. Also, the process has gone digital, which has reduced the time required for verification. Versatile in natureExcept for investing and illegal activities, a loan may be used for anything. Other types of credit, when granted, are for a specific reason and may only be used for that reason. A home loan, for example, is used to purchase a house, while a vehicle loan is used to buy a car. On the other hand, a personal loan may be used to cover any pressing needs. Simple Strategies For Reducing Personal Loan Interest Here are the tips to reduce a personal loan’s interest rate: Make Timely Debt RepaymentsPay your monthly obligations, including your credit card balance, in full. The other debts you have should likewise be repaid promptly. Then, you might get better terms on loans in the future. You will have a better chance of negotiating reduced personal loan interest rates and conditions with the lender if you have a solid EMI repayment history. Good Debt/Equity RatioThe capacity of a debtor to repay the debt relative to the total gross earnings is known as the debt-to-income ratio. You may get the ratio by dividing your total EMIs by your salary. A low rate may be obtained by showing the lender you have control over the finances by having a favourable ratio. High CIBIL Score The CIBIL score evaluates a buyer’s trust and is vital in reducing a personal loan interest rate. A high score indicates your ability to repay the loan on time and the low chance of default. Lenders often reduce rates for a strong CIBIL score. A good score is 750 or above. This shows responsible credit behavior and your ability to manage money. Employee ReputationLending firms prefer to provide loans to users who work for the state, federal government, or PSUs. Better terms may also be negotiable for reputable firms, MNCs, and similar entities’ staff members. Lenders anticipate that you will have a reliable source of income, respectable employment, and a plan to guarantee that you will pay back the loan when due. Loan AmountReducing the loan rates may be achieved by taking out a loan for a lower sum. As the sum is modest, the lender is certain that the loan will be returned on time, which lowers the likelihood of default. Check The Interest Calculation ProcessDespite the lender providing you with a lower personal loan interest rate, you can pay more interest throughout the loan. This is so that different lenders may calculate rates differently. The rate that is offered on loan may be fixed or fluctuating. A floating rate is subject to monthly adjustment, but a fixed rate means a set lending rate for the time of your loan. Typically, the rate is 1% to 2% higher than the variable rate. While a fixed rate does not change throughout repayment, the variable rate does base here on benchmark rates set by NBFC. Relations With The LenderYou can get a loan with a cheap personal loan interest rate and better service conditions if you have a good link with the lender. The lender would have noted your positive credit behaviour. The risk is lower than if you were a new client. Shorter TermWhile you can choose a longer loan term, going with a short term might help you pay less interest overall. As a result, the effective rate on the principal amount will be lower. In a global lending market, lenders may be eager to grant loans with low rates since lenders know that short-term loans have a lower default rate. Choose Lender’s Offers or Better DealsTry to connect with the top lenders on the market as you compare them. This can help determine any unique offers lenders may be willing to provide. Also, most lenders advertise special deals and discounts during the holiday season. Enrol for these emails or SMS’, and keep an eye out for them. Interest Rate ComparisonNot all lenders will provide loans with high rates. Check several banking firms’ personal loan interest rates before requesting a loan. Do your research and ask them for different offers. This will help you decide which lender would provide you with the best personal loan interest rate. Good Loan Repayment HistoryYou may get a low-interest loan by making prompt paybacks and paying your EMIs on time with no defaults. A solid payback record gives the lender trust and might help lower rates. [B-02] Conclusion A personal loan can be helpful when you are short on funds and need the money. Unlike other loans, which need you to submit collateral against it, this does not require you to submit security against it. Since personal loan interest rates are among the highest, it is best to borrow from a lender offering lower rates and shorter terms. Banks also provide the lowest interest rates to customers with excellent credit. To learn more about personal loan interest rates, visit Piramal Finance. You can also explore their products and services.

08-11-2023

Personal Loan

Looking For Instant Personal Loans In Ahmedabad?

Many types of loans are available from banks and other financial entities. Thanks to technological advancements, applying for a loan is now easier and faster. This could mean that getting a loan is less of a hassle than before. When it comes to loans, personal loan in India is the most sought-after option. More than 78% of credit applications in India are in this category. These loans are popular among potential debtors. That’s because they are risk-free to the lender. Getting a personal loan from a bank, an online lender, or even your credit union is possible. You must start paying back the lender according to the repayment plan as soon as you have the money. If you’re looking for answers about how to get a personal loan in Ahmedabad, then you’ve found the right blog. Read on for detailed advice on securing a private loan in Ahmedabad. [B-01] How to Get Instant Personal Loans in Ahmedabad? When you ask for an instant personal loan, the bank doesn’t need to investigate your credit history. The bank doesn’t need to verify any collateral or security to approve your loan. Online applications and less documentation have made the procedure more practical and simple. Thus, this part is for you if you are interested in learning how to get a personal loan via the internet. Follow the steps below to get instant personal loan in Ahmedabad: Seek a dependable lender Many financial institutions now provide loan applications that you can submit online. This eliminates the need to visit a branch physically. Scanning digital copies of your paperwork and submitting them is a great option. It is especially great for people with busy schedules. That’s because it allows them to complete the entire process from their homes. You could even use lunch breaks to complete the application. Various financial institutions have speedy processing times. This feature ensures speedy disbursal of funds into your account. Maintain an excellent credit history and credit score A credit score is a three-digit figure that measures your creditworthiness. Higher scores show greater reliability in meeting financial obligations. Also, the bank will feel more secure knowing they can rely on you to make all your loan payments on time. If you keep a good credit score, you can get a personal loan online without talking to a bank employee. Also, suppose you pay your bills on time and don’t apply for too many loans. In that case, you’ll build a good credit history and have a good credit score. Maintaining your bank balance A bank will be more ready to give you a personal loan if you win their trust. You can show you can make your loan payments by keeping a healthy bank balance. Prequalification for a loan is a possibility in particular scenarios. But, there are a few upsides to maintaining a sizable amount in your account. In the first place, it’s useful in a dire situation. Second, it improves your chances of getting a loan. Third, It improves your chances of getting a better interest rate on your savings account. Which, in turn, means your loan will get approved quicker. Thus, you must not disregard your regular account balance if you seek an online personal loan. Online/offline application The first step in getting a personal loan is filling out an application. The application will need personal and professional information. You can fill out the form at the bank’s branch or online. But online loan applications streamline the procedure and save you time. Bank verification Once the bank gets your loan application, its staff will verify your details. They do this to determine your eligibility for a loan based on many factors. For example, age, monthly income, occupation, etc. Now, suppose you are already a customer at this bank. In that case, the bank will verify your financial history by looking at your bank statements. It will also look at any loans you have already taken out. KYC process Once your personal information gets confirmed, the bank will check the KYC documents. These are the documents you provided with the application or brought to a local branch. Applying for a personal loan is now very easy. A bank representative will visit your house to collect the paperwork. Address Confirmation A person from the bank may pay you a personal visit to verify your residential address. But, if you are self-employed, bank staff will visit your business to verify your residency. Credit score check The bank will look at your repayment history, pay stubs, or tax records. They’ll do this after they’ve verified your identity and determined your eligibility. Loan approval An instant personal loan gets approved very quickly if you match the requirements. Also, it gets approved quicker if your details are valid and your credit score is at least 750. Loan amount, tenure, and interest rate The bank will determine the loan amount and interest rate it will offer you based on several factors. For example, credit history, age, employment history, and other professional details. Banks also let you pick your payback term based on your finances and repayment capacity. Processing fee After the terms of the loan get finalized, the loan gets disbursed in exchange for a processing fee. You pay fees for personal loans in full. Moreover, the loan gets deposited in your account within 3-5 days. [B-02] Conclusion You can use a personal loan for anything. These include medical care, wedding costs, travel bills, and other bills. But, you should only take out a loan that you are confident you will be able to pay back. The lender will reduce processing, approval, and disbursement times. They can do this if you provide genuine documents with accurate information. With any luck, the information presented herein will aid you in your pursuit of a personal loan.

08-11-2023

Personal Loan

How Much Personal Loan Can I Get in India?

Have you ever experienced a financial crisis due to rising product costs or demand? And considered applying for a loan but were put off by the lengthy and complicated procedure? If your answer is yes, you’ve come to the right place. This post will discuss everything you need to know about personal loans, how much you may acquire in India, and the related terms and circumstances. Continue reading to keep up to date on personal loan limits in India. [B-01] What is a Personal Loan? In layman’s terms, a personal loan is an unsecured loan. It may be used to pay various costs such as schooling, marriage, health care, etc. No collateral is required for this loan. But, the risk for lenders is greater than with a secured loan. According to a recent Reserve Bank of India press release, personal loans led the path towards the expansion of credit. The RBI noted a 20.8% growth in June of 2022. In addition, banks’ credit growth rose to 14% in the same month. This is in comparison to a 10.7% growth in the last quarter and 5.8% in 2021. Features of Personal Loans Let’s go through some aspects that will help you better comprehend what personal loans are. A personal loan does not need any security. It is determined by your creditworthiness and job history, as represented in your credit score. Banks don’t do end-use surveillance on the amount issued as a personal loan. A variable payback period spans from 1 to 60 months. It depends on your needs. A personal loan may be obtained with little paperwork. Within 48 to 72 hours, the sum of a personal loan is credited to your account. Personal Loan Amount Calculation Methods FOIR (Fixed Obligation to Income Ratio) FOIR is calculated by dividing your net monthly salary by your fixed monthly expenses. This demonstrates how much money you possess available (savings). Following that, the capacity of this disposable cash to cover debt payments is evaluated. The ideal FOIR proportion is between 40% and 50%, meaning your monthly expenses should not exceed 50% of your income. The FOIR ratio should be as low as possible to get the loan at better rates. Multiplier Method Many lenders use the multiplier method to assess whether a person can take a personal loan. This test is used to identify the personal loan amount based on a certain multiple of the applicant’s monthly net income. Depending on the lender and the applicant’s monthly income, the multiple could range from 10-24 times the applicant’s monthly income. So, if your creditor offers a loan amount 24 times the NMI (Net Monthly Income), and your NMI is Rs. 50,000, you can get a loan of Rs. 12 lakhs. Maximum Amount That a Personal Loan Can Cover While the amount varies by lender, you can typically obtain a loan of up to Rs. 20 to 30 lakhs if you are self-employed. Even so, some other variables may impact the loan amount. Factors Influencing Personal Loan Eligibility Employment Situation Lenders consider your employment situation. They assess the standing of the company for which you work. If you work for the government or a large firm, you may be eligible for a loan with a higher loan amount. If you have been with the company for more than a year at the time of the application, your chances are better. Income One of the major elements of risk before approving a personal loan application is the applicant’s monthly income. It would be perfect if you could earn at least Rs. 20,000 per month. Though income is not the only demand, earning more than Rs. 20,000 does not guarantee acceptance. Lenders consider the amount they will have to pay for their financial duties when calculating the debt/income ratio. Credit Rating A credit agency, such as CIBIL, provides a three-digit credit score. This scale runs from 300 to 900. It increases your credibility in the eyes of the lender. When evaluating your credit score, your initial debt payments, bills, and card payments, among many other things, are considered. If you’ve been paying all of your bills on time and have a good credit score, your chances of getting a new loan will increase. A score of at least 700 is preferred. Age The individual’s age is also very important. Borrowers must be between the ages of 22 and 58, based on the lender, for loans to be approved. Applying for a loan at or near retirement age can be difficult. This is because older people do not have a stable source of income. Personal Loan Amounts Available in India Bank NameLoan Sum (Rs.)Rate (per annum)Central Bank of IndiaUp to 20 lakhs8.45% Union Bank of IndiaUp to 15 lakhs8.90% UCO BankUp to 10 lakhs8.45%State Bank of IndiaUp to 20 lakhs9.60%IDBI Bank25,000 to 5 lakhs9.50%CitibankUp to 30 lakhs9.99%HSBCUp to 30 lakhs9.75%Federal BankUp to 25 lakhs10.49%Kotak Mahindra BankUp to 30 lakhs10.50% IndusInd Bank50,000 to 15 lakhs11.00%ICICI Bank50,000 to 25 lakhs10.50% Axis BankUp to 15 lakhs11.00%HDFC BankUp to 25 lakhs12.50%Standard Chartered Bank1 lakh to 50 lakhs11.00% [B-02] Conclusion Lenders will approve your application for a personal loan after considering your income, expenses, and credit score. The maximum bank loan amount you are eligible for is determined using either the multiplier method or the fixed duty/income ratio. A personal loan typically requires a minimum of Rs. 20,000 in net monthly income. However, if you are still confused, you can visit Piramal Finance and check out their blogs to understand personal loans better. You may also take a look at their products and services.

08-11-2023

Income tax return

How to Claim HRA While Filing Your Income Tax Return (ITR)?

You’ve been hearing a lot about HRA exemptions from coworkers, the HR director, and friends. It seems to be a profitable tactic to save taxes, yet you may be wondering: Can I claim HRA exemption? If so, what are the main needs that must be met to get this perk? How much HRA tax relief can I claim? Let’s find the answers to these pressing questions in the next sections. [B-01] What is HRA? HRA stands for House Rent Allowance. It is the sum the firm gives to staff to assist them in paying the costs of living in rental housing. HRA is paid as a sub-component of salary by most employers in the private and public sectors. The most exciting part is that salaried people who live in leased houses may claim HRA tax exemption under Section 10 (13A) of the Income-Tax Act. To claim exemptions such as HRA, LTA, and income tax deductions as per Chapter VI-A, you must submit Form 12BB to your employer. It should be noted that under Section 80GG of the Income Tax Act, self-employed people may also claim tax exemption for rent paid. How is HRA Tax Exemption Calculated? The deduction available is the least of the following amounts: Actual HRA received. 50% of [base pay + DA] for people who live in cities. 40% of [base pay + DA] for residents of non-metros. The actual rent must be less than 10% of the base pay and DA combined. Eligibility Criteria to Claim HRA If the following criteria are met, you may claim HRA exemption for the time you stayed in rental homes: You must be a salaried employee HRA-related tax perks are mainly given to salaried persons. This exemption is not open to self-employed persons. HRA is included in your CTC or payment package Your CTC or pay package is made up of many items, such as base salary, allowances, extra perks, and so on. To take advantage of this exemption, you must make sure that HRA is included in your CTC. Live in rental homes This exemption is only available if you live in a rented home. You must be paying rent. There is no tax perk if you live in a self-owned home. You’re surely curious if you can claim this deduction if you live in your parent’s home and pay rent to them. Yes! You may claim the exemption by paying rent to your parents. Your parents, on the other hand, must report rent income received from you on the income tax return. It is also suggested that you pay rent by bank transfer and sign the rental agreement. Submit a rent slip to your employer to inform them of your rent payment You must notify your employer of the rent you have paid and submit your rent slip. The landlord’s PAN must be given if the yearly rent is more than Rs. 1,000,000. Claim at the time of return Employers often do not provide HRA exemption on Form 16 owing to a lack of valid data. But if your HRA claim was not assessed in Form 16, you might claim the exemption directly in your IT return. How Do You Claim HRA Exemption While Filing Income Tax Returns? Section 80C of the Income Tax Act of 1961 exempts premiums from taxation. Also, any reward received under the savings policy is tax-free under Section 10 (10D). In most cases, your boss will require that you submit your home rent slip in the last quarter of the fiscal year to claim HRA exemption on Form 16 prepared by the employer. If you do not provide your rent slip to your employer, the firm will take TDS (Tax Deducted at Source) without considering the HRA on your wage slip. Even in this situation, you may claim HRA deduction on your ITR. You must manually compute the exempt HRA total. If you provide a rent slip to the employer: If you submit your house rent slip to your employer and other supporting papers, they will review the case and lower the tax withholding accordingly. Form 16 and your tax return will both disclose your exemption. Claiming HRA via your workplace is simple. However, if your yearly home rent exceeds Rs. 1 lakh, you must provide your landlord’s PAN card data to your boss to qualify for the HRA exemption. Also, because your Form 16 and ITR-1 forms are synced, filing for HRA tax exemption has become even easier since the amount is instantly pre-filled in the ITR forms when you submit your claim online. If the employer does not get the rent slip: If you did not submit your receipts to the employer, you might claim an HRA exemption in your ITR. In this situation, the firm would not have included the HRA exemption in the taxed wage, resulting in a greater TDS deduction. The excess TDS deduction will be repaid when you claim the HRA deduction on your ITR. Yet, you must compute the correct HRA exemption amounts and subtract the equivalent amount from your pay. Factors to Consider Before Making HRA Deductions Here are a few points to know regarding HRA tax exemptions: If you pay rent to your spouse, you cannot claim HRA tax exemptions. HRA exemption from income tax can be taken even when you have a house loan. If your landlord is an NRI, a TDS (Tax Deducted at Source) of 30% must be deducted from the rent before it is paid. [B-02] Conclusion A salaried employee should take advantage of the chance to claim an HRA tax exemption since it is one of the finest legal methods to save tax. Make a point to keep all solid pieces of evidence. To be on the safe side, send money via a bank account since it is hard to prove rent is paid in cash. The value of the exemption is assessed by section 10 (13A) of the Income Tax Act. If finding the sum of exemptions seems hard, you can visit Piramal Finance for more such blogs and explore their products and services.

08-11-2023

Personal Loan

Benefits of Using a Personal Loan During An Emergency

No one wants to be caught in an emergency guard. However, the essence of life needs you to wade through these hard moments, nevertheless. For example, with rising healthcare outlays and medical bills, owning an insurance plan alone is not the ultimate peace of mind. You may need cash in emergency medical situations. Similarly, savings can hardly get you through if you want to set up your small business or fund your child’s education in the UK, or the US. You would need cash at every step of these games. This is where financial tools such as personal loans come in handy. Such loans offer you access to critical funds with no expense limits, enabling you to fulfil your objectives that were until now thwarted by financial shortages. Most importantly, a personal loan in an emergency may be useful in saving the life of a loved one or yourself, as well as freeing you from the guilt that you will have to suffer if anything bad occurs. Continue reading as we delve deeper into the benefits of using a personal loan during an emergency. [B-01] Advantages of a Personal Loan in an Emergency A personal loan might be a superb solution when you need fast access to finances in an emergency. Here are some advantages of a personal loan in an emergency: 1. Fast access to key funds Given the rising demand for low-cost personal loans in recent years, it’s only logical that the variety of personal loan sources has increased as well. You’re in a better position than ever to make an informed choice about who your lender will be now that there aren’t any shortages of lenders. The best part is, the loan request procedure takes at most 24 hours (personal loan apps are way quicker). Once your loan request is granted and the sum approved, the cash will be sent directly into your bank account within an hour or two. 2. Easy to pay in EMIs Another benefit of obtaining a personal loan is that the full repayment load is spread out over 1 to 5 years, depending on your bank. This is preferable to having to return the whole loan amount all at once. On the contrary, you may have to return the loan sum at once, if you borrow from friends or relatives. If you can pay for the entire amount before the deadline, asking for extra time will be of no use. Cheap personal loans relieve you of such burdens while providing you with just what you want—timely finances. 3. No collateral is needed In contrast to a vehicle or a house loan, you do not need to offer collateral when asking for a personal loan. This is a major comfort for some of you who may demand a large sum to fund a large purchase but are concerned about not owning any assets (such as land or gold) that may be used as collateral against the loan. This concern about not having any assets is usually caused by the fear that you will be asked to give some kind of collateral. This isn’t the case with low-interest personal loans for emergencies. 4. Less paperwork The paperwork for taking a personal loan in an emergency is less. This expedites the loan sanction process. They may even send someone to your place to assist with the papers if the bank provisions. 5. Reasonable interest rates Personal loans feature low-interest rates making them accessible to all. This means that your EMI stays constant throughout the length of your loan. For this reason, there is no need to be worried about the volatile interest rates that define other types of loans. Steps to Get an Emergency Personal Loan While crises are difficult to deal with, getting a personal loan in an emergency does not have to be. To apply for a personal loan in an emergency, follow these four steps: Compare lenders and shop around To discover the best personal loan for your condition, compare as many banks as possible. Check not just interest rates but also repayment periods, lender fees, and qualifying standards. Choose a loan of your choice Pick the loan that best meets your needs after comparing lenders. Complete the form Once you’ve decided on a lender, you’ll need to fill out a complete form and provide any evidence needed, such as tax filings or pay stubs. Obtain your cash If you are accepted, the lender will also have you agree to the credit so that the cash may be given to you, normally by direct transfer. A personal loan normally takes around one week to finance, while some banks may fund loans as fast as the same day or the next working day following approval. Picking the Best Lender for a Personal Loan in an Emergency Here are a few things to think about as you assess your loan options: Criteria for eligibility While the criteria vary per lender, most require a strong credit score, verified income, and a low debt-to-income ratio. If you don’t meet these standards on your own, you may be able to get approval from a bank that gives poor credit loans or with the aid of a cosigner. Rates of interest Your rate of interest will play a key role in determining the total cost of your loan. The interest rate you are given is based on various factors, like your credit score and the repayment period you pick. In general, the higher your credit score, the better your loan interest rate will be. Terms of repayment Based on the lender, personal loan payback terms often vary from 1 to 7 years. While a longer term may result in a cheaper monthly payment, it is typically prudent to select the shortest period you can afford to keep your interest payments as low as possible. Also, many lenders give you higher rates if you choose shorter terms. Funding time If approved, you should get your loan in cash within one week. However, some lenders provide next- or same-day loans to eligible clients. Online lenders, on average, give quicker funding than credit unions or banks, which may be extremely useful when you want to pay for an unexpected need. Online service availability Online lenders often provide a speedier, more simplified approval and financing procedure than conventional lenders, making them a smart option for an emergency personal loan. [B-02] Key Takeaway Personal loans are now the top option for you if you need to meet an unexpected financial demand due to their many perks. The fact that the loan is unprotected, repayable in EMIs, and readily available adds simplicity to the lending procedure. The range of personal loan firms has also grown in recent years. If you want to know more about the benefits of personal loans in an emergency, visit Piramal Finance for related blogs and explore their products and services.

08-11-2023

Other

How to Grow Your Manufacturing Business?

To be successful as an entrepreneur, you need to grow your business. But both big and small manufacturing companies need to find ways to grow sustainably and deal with market changes. If you start your manufacturing business with the right skills and tools, you will be better prepared to deal with unexpected changes and problems. Growth is necessary for a business, but only if you can keep up with it. If your company cannot control how quickly or how much it grows, your team could be held back by poor communication, lack of skillset, and mistakes that cost a lot of money. This article discusses some of the tips you should remember when you want to grow your manufacturing business. [B-01] Why is growing a manufacturing business necessary? Manufacturing drives the national and international markets. Business owners know that manufacturing processes play a crucial role in the end-user experience since they serve as the foundation for new goods and ideas. Because of this, production is dynamic and developing to satisfy the demanding requirements of customers and consumers. Recently, the industrial sector has seen significant upheaval. The upheaval is to meet the growing quality demands of customers. It is challenging to expand your manufacturing company to compete with these rivals. But with the correct attitude, you can grow your company and attract new customers who will remain with you. The owner’s mindset is often visible to the industry. Owners take on many roles and try to do too much by themselves. Although they often lack a business education, they are experts in their field. Building the trust necessary to delegate is a deliberate endeavour that may be learned. Regardless of the state of the market, expansion requires being prepared to take on the available employment. If you want to increase sales and grow your business, you must create more prospects for quotations. Let us look at some strategies for expanding your manufacturing firm. Six ways to grow your manufacturing business 1. You have to choose the right people. Your team is your ticket to growth. When you share ideas with others, your staff helps your business grow. As a result, picking the right people to work with is necessary. One way to grow your manufacturing business is to conduct the hiring process only after you know what you need. Identify the gaps in your manufacturing business before starting interviews. 2. You have to stand out on social media. If you want your manufacturing business to do well, you need to be different. This does not always refer to the products but also social media. Use social media to create a digital presence for your business. A reliable website is necessary for a manufacturing business. It helps you stay in touch with your clients better and builds brand identity. You can grow your brand and reach a bigger audience with an improved digital presence. 3. You need to be updated digitally. Your business may have hit a wall if you are not using the right software. As a small business owner, you should invest in software that helps with product management, payroll, or other processes. Using software for small businesses, you can speed up tasks that take a lot of time, like building workflows and sending emails. This could give you more time to work on other things. When you use the right tools, your brand will grow, and it will be easier to run your business. 4. You need to spend money on your employees. One of the problems organisations face today is finding and keeping skilled and talented people. In other words, highly skilled people are in high demand. The main goal of your business should be to keep your best employees on board. This can be done by giving them good pay, flexible hours, more money, or other benefits. Also, you can consider offering education benefits to employees as well. Even though these perks cost money, it’s important to remember that it could cost less to hire a new employee with the same level of education and experience. Therefore, if you wish to retain your best employees, you should offer incentives that will make them want to stay. 5. You should listen to your clients. Customers are the key to any manufacturing business. Therefore, pleasing customers and keeping up with their demands are necessary. Altering customer behaviour is a challenge for manufacturers or any company. You must conduct regular surveys and polls to understand client demands. In such situations, social media can help. Having a strong social presence will give you an idea of what customers want. 6. You need to create a supply chain. When there are problems in the supply chain, sellers might be more likely to work with manufacturers they like, those who pay their bills on time, and those who invest in systems, technology, and the future. Recently, manufacturing companies have had to deal with several supply chain problems and challenges, such as a stop in business, rising freight costs, and a huge increase in demand. It’s more important than ever to have a strong supply chain that can handle problems you didn’t expect. [B-02] Conclusion Manufacturing companies are the core of any economy. if you plan to start your manufacturing company, you should understand that your employees, their skillset and your customers are your primary concern. By following the six tips given above, you can grow your manufacturing business. If this article interested you, check out Piramal Finance. Primal Finance has comprehensive articles on manufacturing businesses.

08-11-2023

Tax Savings

How to Get Tax Benefits on Loan Against Property

Applying for a loan requires patience. You must have all the documents. You must fulfil eligibility conditions to get the loan. Mortgaging to get a loan is quite a traditional way. It can be a house, commercial property, gold, or even a vehicle. A loan against property is one of the finest ways to get a loan quickly. You can mortgage with any financial institution and get funds promptly. The loan against property interest rate is comparatively low. There are various tax benefits linked to it. In this article, we discuss the basics of loans against property and the tax benefits you can get. [B-01] What is a loan against property? A loan against property is a secured loan. It is available against the mortgage. This mortgage can be your residential or commercial property or even a plot. The ownership of the property needs to be clear. The amount of the loan is based on the property value. It is usually 70-75% of the property value. This secured loan is available for both salaried and self-employed. Also, you can use this loan for the following: Meet the medical emergencies. Fund for education. Business expansion. Personal expenses. Eligibility criteria for loan against property The following are the eligibility criteria: Your age should be between 21 to 70 years. You should be a resident Indian. You should be salaried or self-employed. There should be a property in your name. Documents for loan against property The main documents required for the loan against property are: Identity Proof like Passport, Driving license, Aadhar card, Voter ID, and Job card issued by NREGA Address Proof like Passport, Driving license, Aadhar card, Voter ID, Registered Leave and Lease Agreement Utility bills like Telephone Bill /Electricity Bill. (Maximum 3 months old) Latest passport-size photograph Property documents to be mortgaged Documents to be added by salaried: Last 3 months’ salary slips 2 years Form 16. 6 months bank statement with salary credit Bank statements for the last 6 months 6 months’ salary slips Documents to be added by self-employed: Last 2 years ITR with computation. CA audited financials like profit and loss statements, balance sheets, or both. 6 months primary bank statement In case you have a co-applicant: Some cases might require a mandatory co-applicant. The documents needed are: Co-applicant can be a first-blood relative like a parent or child or spouse. All the names of co-applicants should be on the loan application. If the co-applicant is a child or sibling, he should have attained the age of maturity as per the income-ownership grid. Benefits of loan against property The main benefits of a loan against property are as follows: The loan against property interest rate is lower. Loan against property offers quick sanction and disbursal. It is secured, and you can get a higher amount based on your property value. LAP is one with a simpler and straightforward process. You need to submit the basic documents only. The loan repayment tenure is long. It can be around 15-20 years. You will have the property ownership. The title is not transferred to the lender but it restricts you from selling the property in due course. The option for pre-closure is available. A loan against property allows you optimum utilisation of your property. You can use the fund for multiple uses. Tax benefits of loan against property You are allowed tax benefits if the amount is used to purchase property, repair, or renovate. There are two sections under which you can avail of the tax benefit for a loan against property. Tax benefit under Section 24(B) You will get this benefit if you are salaried. You would be eligible for a deduction of up to INR 2 lakh. This is applicable if you use the loan amount for new residential construction. The deduction is allowed for the interest that you pay on EMI. The deduction is allowed for both paid and payable interest. If the total interest value crosses INR 2 lakh, you can carry forward the same for up to 8 years. Tax Benefit under Section 37(1) You should understand that this section is lined with expenses. This benefit can be used if you have used the loan amount for business needs. The interest paid, processing fees, and documentation fees are allowed for dedication as a business expense. Conditions for no tax benefit Section 80C is used for home loans. But the same section is not applicable for the loan against property. You can claim a deduction for interest payment under section 24 (B). But you cannot have any exemption under this section. Also, the tax benefit is not applicable if you use the fund for any other expenses. Tax benefits on top-up loans If you take an additional amount on your existing loan, it is called a top-up loan. You can enjoy the tax benefit on a top-up loan if you use it for purposes linked to house purchase, renovation, or repair. The maximum deduction available for this is INR 30,000. You can claim the deduction only when the property is self-occupied. Also, there is no limit for deduction if the property is rented out during repairs and renovations. The tax advantages of loans secured by property depend mostly on the principal repayment regarding the use of the funds, even in the case of top-up loans. You can claim the tax deduction under sections 80C and 24(b), respectively if the funds were used to build or buy a new property and not if you use the money for home improvements, renovations, or changes. [B-02] Conclusion Loan against property is one of the safest methods of acquiring funds. It is quick and needs low documentation. Also, you can use the funds for various purposes. The tax benefits associated with the loan against property are great. You can avail of them and get a deduction from your overall tax payments. Though some limitations are linked to a tax deduction, the option is still great. Also, you can visit Piramal Finance to gain all the required information on the loan against property interest rates. You can connect with the experts here and reach an informed decision. Apply for a loan against property in no time.

08-11-2023