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Business Loan

How to Make a Great Business Plan for Procuring a Business Loan

A plan for getting an online business loan is like a map showing your business’s goals and how you plan to reach them. Before applying for a business loan from most lenders, you must show them a formal business plan. It is a good sign of how likely you are to be able to pay back the loan and how well your business will do financially. A strong business loan plan is an important part of any successful business, whether you’re trying to get money or are making a plan for strategic growth. Here are three important things to keep in mind when thinking about the interest rate on a business loan: [B-01] Keep it brief: The terms of business loans have to be clear and to the point. Investors look at many business plans daily, so it’s best to be clear and to the point. Know who your business plan is for and write it in terms they can understand. Don’t use confusing words, ensure investors are taken care of, and keep product descriptions simple. Don’t be scared: Most business owners don’t have degrees in business and aren’t experts in their field. Instead, they are always learning new things. Making a business plan might not be as hard as you think if you know everything, there is to know about your business and are excited about it. Steps to Creating a Business Plan that Lenders Will Like The statement of the idea Step 1: Figure out what makes your company stand out. It includes a value proposition, a target market, a product, a mission, and a brand. Step 2: Research the market and the business The next step is to study the market to learn more about your target market, suppliers, experts in the field, competitors, and the industry you work in. Step 3: Outline your business plan: After getting all the important information, the next step is to outline. You can follow the example set by the Indian government. Step 4: Figure out what your business loan needs to cover. Executive Summary To summarize your business, you should list your business type, a brief description of the management, financial needs, and how you plan to spend your money. Marketing Strategy Talk about your product or service, your target market, your analysis of the competition, and the marketing strategies you’ll use to reach your sales goals. Plan for making something Explain how the product is made and how much time and money each step takes. Financial strategy This part is very important for the investor because it gives a detailed financial report on how your business is doing. Don’t forget to add the following: Cash flow statement Breakeven evaluation Get your money back (ROI) Sales and profit forecasts for the next three years Loan objective How long will the loan last STEP 5: Helpful information to: Give potential investors as much solid information as possible to improve your chances of getting financing for your business. You can add more information to the appendix by putting in documents like: Copies of contracts and leases are examples of financial records. What market research shows Books about money Permits Licenses The invoices STEP 6: Reevaluate: Check your company’s strategy to ensure you haven’t omitted any important details. To make sure the investor doesn’t get distracted by the mistakes and can focus on your business loan plan, try to make as few mistakes and spelling mistakes as possible. What makes a business plan successful? A good business loan plan explains your business and how and why it makes money. A few basic things will help lenders understand your business and make you eligible for financing. At the same time, a business loan plan should have different parts for each company. Executive summary An executive summary is a summary of your business loan plan. It is usually only one page long. The goals of this section are to tell the reader about the company, summarise what they’ve learned in the other sections, and get them interested. However, how you use this part may depend on how old your business is. Reputable companies Executive summaries for businesses that have been around for a long time usually focus on past successes and future growth plans. In this case, the section might start with a statement of the company’s mission and then discuss how it works now and its finances. Startups Most people who get a startup business loan use the executive summary to talk about the business’s potential, target market, and how it plans to grow. The section could also talk about the competition in the market. Startup companies should use the executive summary to make a lender more confident in the business. What should be in a business plan for lenders? Lenders usually look at five things when deciding whether or not to lend money to a business: its character, its ability, its capital, its circumstances, and its collateral. Knowing these important things, you can make a business plan that speaks to a lender’s interests and preferences. Capacity Lenders may look at more than just your credit history, household income, and financial goals for your business. They may also look at your skills. If it makes sense, lenders will look at your management team to see if they have the skills to grow your business or keep it going in the right direction. Capital As part of the loan application process, lenders would look at your business plan to determine how much money you need to borrow and how you plan to pay it back. Also, they look at your income statement to see how much cash you have and how much debt you have. In the same way, lenders often prefer business owners who have put more money into their businesses. A personal financial contribution shows that you care about the business and can pay back a big debt. Conditions Ultimately, a lender’s biggest concern is whether or not your business will do well. So, they look at your business plan and the market’s state to determine how likely your business will succeed. A strong business plan can convince a lender to give you money because the market or the way you want to run your business gives you a better chance of success. Collateral Lenders sometimes want proof that you own something valuable that they can use as collateral for the loan. This can be real estate, equipment, stock, or even money owed to the company. Even if you don’t have any collateral, lenders might still give you a loan if you have a good business idea and credit history. [B-02] Conclusion A business plan explains how a company plans to do business and, in some cases, how the owner plans to use money, investments, and loans. It shows that a company is making money now and plans to keep making it in the future. A good business plan is well-written, realistic, clear, and, most importantly, convinces lenders that giving your company a loan is a good idea. Now that you have all the information, you can go to Piramal Finance for more information.

08-11-2023

Personal Loan

How to get Personal Loans over Mobile Apps

People can have unexpected financial requirements. Personal loans are the fastest way to get the money you need. The process of getting a personal loan from a bank takes time. And getting money from a lender with higher interest rates is risky. Personal loan apps are a good way to get a quick personal loan because they are risk-free and don’t require much paperwork. With personal loan applications and easy loan approvals, you may be able to get the loan at a fair interest rate. Read on to learn more about how mobile applications can help you get a personal loan. [B-01] Procedure to Apply for a Personal Loan Applicants must get the loan app from the App Store, which is available for iOS and Android. After installing the app, users must fill out some basic registration information. To apply for a personal loan, you need to be able to use the internet without any problems. Follow these steps to get an instant approval for a personal loan: Step 1: Sign up for the app that lets you get a personal loan. Step 2: Give your personal information and details about your finances. Step 3: Figure out if you are eligible for a personal loan. Step 4: Submit your “Know Your Customer” documents and bank statements. The personal loan application app will review the request once the process is done. On the app, you can see if the loan has been approved. After you get approved, the online lender puts the money in your savings account. EMIs are how the borrower will pay back the loan and any interest. The total amount borrowed, the number of years and the interest rate are used to determine how much the monthly payment will be. It’s easy to apply for a personal loan through any app. Each app has rules, interest rates, terms, and conditions. In general, most financial institutions charge 10.50% to 24% p.a as the interest rates. Documents Required for the Personal loan Application Adhaar card PAN card Photographs Statement of the bank account How is a Personal Loan Used? There is no restriction on the use of money obtained from a personal loan. You can use the personal loan for many things, such as: Weddings Taking care of the credit card charge Consolidating loan Educational purposes Medical emergencies Holiday vacation Home repairs Furniture purchase Criteria for Getting Personal l]Loans In India, there are many places where you can get a personal loan. They are public and private banks, non-banking financial institutions, and online loan apps. People can get quick personal loans if they meet the requirements. Loan approval depends on the bank and whether the applicant has a regular job or works for himself. For Salaried Individuals: Applicants must be over 21 years old. The borrower must be 60 years old when the loan is paid off. The minimum income per month must be between Rs. 15,000-20,000 For self-employed or Business People: Applicants must be at least 25 years old to borrow money. The borrower should be 65 years old when the loan comes due. A minimum income of Rs. 1 lakh per year You can also use the calculator tools on mobile apps and other financial websites to check if you meet the requirements. Factors to consider when applying for a personal loan Personal loans can be sanctioned right away and with little paperwork. A few things affect how smoothly the process of getting a personal loan goes. Credit score or CIBL score Your credit score shows your credit history, also called your CIBIL score. It is a big part of whether or not you can get a personal loan. 720 to 750 is the minimum score of credit for a personal loan. The ratio of debt to income Before giving out a personal loan, lenders look at a person’s debt-to-income ratio. They also look at how much you make each month. This check is to see if they can pay the EMI on the loan. Workplace position The lender will look at your work history when you apply for a personal loan. Before approving a loan, some loan apps check to see where you work and how long you have worked there. Personal Loans Through Mobile Apps have Several Advantages Personal loans are available through mobile apps made by banks and online lenders. These loan apps are being made to keep up with technological changes and give people quick access to cash. Personal loan mobile applications have several advantages, such as: Time and effort are saved: Borrowers don’t have to take the time to go to a physical branch at a set time for a personal loan. In the traditional way of getting a personal loan, applicants must sign many papers. Borrowers who get personal loans through mobile apps save time and trouble. Every transaction is recorded: The loan summary is saved in the application for a mobile personal loan. It tells the borrower how their finances are doing right now. So, it can be helpful to have access to other banking services. Access to money would be easier: When an application for a personal loan is approved, the loan amount is put into the account. Borrowers can benefit from getting money right away, especially in an emergency. [B-02] Conclusion Mobile loan applications are cutting-edge digital solutions. Borrowers who are having trouble meeting their financial obligations may benefit from them. With these personal loan applications, the way banks do business could be made easier. The customer’s experience is also improved. Before applying for a personal loan, it’s a good idea to find out what you need to do to qualify. You may find that you have more than one choice for a reliable loan app. A simple internet search and review of different personal loan applications can help. For more information on how to apply for a personal loan, check Piramal Finance.

08-11-2023

Business Loan

How to Grow Your Business With an Unsecured Business Loan in India

Which is the most crucial component of every company, large or small? Your business has money, also known as finance, and this capital enables it to expand and endure. However, there are occasions when you need to take out loans to build your firm, so small business loans might make all the difference. A firm’s growth is based on the constant flow of funds. You may need these funds to fulfil an order, acquire gear, grow the business, pay the staff, and so on. A major firm may be able to get this money. But, it is tough for a small firm to obtain capital without collateral. In such a situation, you take a business loan from a bank or another financial entity. Many lenders in India provide cheap interest rates on business and other loans. [B-01] What is an unsecured business loan? An unsecured business loan is granted based on your credit history and does not need collateral. These loans are used to develop or sustain a firm’s functions or to maintain cash flow. You may use it to bring extra money to a firm. It helps it achieve its goals. Interest rates vary from lender to lender. They might exceed 14.99%. Although the standard concept of an unsecured loan does not need security, the reality is a bit different. Rather than seeking particular collateral, the banks impose a general law on vital assets until the debt is repaid. This enables those with strong credit or solid firms to get loans without giving large assets to small firms’ loans. How to grow your business with an unsecured business loan Purchasing equipment Every single business needs goods to succeed. If your inventory is enough, your firm will function. Small firm loans are effective for securing such goods. Does your firm use machines in its production? Then, to enhance your output, you can be needed to improve your supply chain. This may include investing in new machinery, upgrading older ones, or repairing and replacing worn-out parts. You can satisfy all your needs with the help of business finance. Unsecured loans provide an instant financial injection that you might use to expand your production. Increase marketing Have you finished making your product? Now is the time to promote your business and spread the word. Marketing costs resources, regardless of whether you hire a marketing firm or run web adverts. Should you, instead, let your cash flow suffer? No. Instead of investing your current cash in your marketing efforts, submit a request for business funding. You can get an unsecured loan. Most lenders specify particular criteria for clients for business loans. Creating your marketing plan In today’s world, it is crucial to comprehend the market and use the right methods to attract clients. If you don’t know how to market your website, even if it’s great, your firm could be better off without one. Marketing requires analysts to do market research, analyse the data, and then use what they have learned to target the right audience, both online and offline. Since analysts are in demand, particularly those that study and analyse the sector, this costs money. Your company’s plan may be created with a small business loan. Enlarge your group A successful organisation needs a group of strong leaders. Recruiting demands both time and money. Workers are the best resources in any firm. So hiring great people is a way to ensure your business works well. You need to recruit the right staff and apply for a business loan to receive the money. This will pay for various recruiting and training expenses. These could be advertising job roles, locating candidates, conducting interviews, and onboarding them. Benefits of an unsecured business loan Different banks have different business loan eligibility criteria and benefits for their best-unsecured business loan offers. Here are some traits that these loans have in common: Unsecured business loans are those that do not need collateral or security. These loans are made based on the applicant’s reputation and payback history. The lender may also take into account other relevant aspects. Most banks ask that the said firm be profitable for at least two years. The loan sum might range between Rs. 10,000 and Rs. 1 crore. This is based on the size and needs of the firm. The loan term varies, ranging from 1 to 5 years or more. Unsecured business loan eligibility criteria Given below are the unsecured business loan eligibility criteria: Minimum age of 18 at the time of loan request and maximum age of 65 at the time of loan completion. A credit score of 750 or above is needed. Presence of a business for a minimum of one year in the same place with proof of profit. You must have a steady source of income and wage slips. Bank information or the most recent six months’ bank statement. Documents needed for unsecured business loan eligibility The papers needed for unsecured business loan eligibility are as follows: You will need to give a recent passport-sized photo of yourself, proof of your identity, address, signature, income, bank statements, and proof that your business will keep running. Customer letter for the end use or proposed end use of BIL funds OD sanction letter, where DP/OD limit is not listed in the bank statements. Certificate of professional qualification for experts Partnership deed, or MOA/AOA for partnership firms, and a certificate of incorporation, or Form 3CB and 3CD or Form 3CC and 3CE for companies, as applicable. [B-02] Conclusion Business loans that are not secured lack safety. A company or person will need this financing to start or expand a business. Unsecured business loans are an efficient way to get quick money for your needs as a firm. You could succeed in your goals and contribute to your company’s growth. For more blogs on how to grow your business with an unsecured business, check out Piramal Finance and explore their products and services.

08-11-2023

Tax Savings

How to Get Tax Benefits Using ELSS?

Investors look for ways to put their money to work that will help them make money, get regular returns, or save money on taxes. There are many ways to invest money on the market, but most of them give yields that are levied in accordance with the Income Tax rules. ELSS funds come into play here. Equity-Linked Savings Scheme Funds, or ELSS Funds, are equity mutual funds that help you pay less tax. Investing in ELSS funds is a good way to save on taxes when compared to the other investment options available. ELSS has a relatively short lock-in period and skilled fund management, both of which can help you build up your wealth. Here, you will find everything you need to know about ELSS Tax Saving investment. [B-01] What Is an ELSS Fund? ELSS funds are known as equity funds that put most of their money into stocks or instruments that are similar to stocks. Tax saving mutual funds is another name for ELSS funds because Section 80C of the Income Tax Act lets you keep up to Rs. 150,000 of your annual taxable income tax-free if you invest in this scheme. As the names indicate, an ELSS fund is a plan that invests in equity and has to be held for a minimum of three years. In the past few years, many people who pay taxes have started to invest in ELSS plans to get tax breaks. If you put money in ELSS plans, you can have a tax rebate on the amount you put in for Rs 150,000. Also, the money you make from this ELSS investment at the end of the three-year period will be considered a long-term capital gain (LTCG) and taxed at 10% (if your income is above Rs. 1 lakh). How Are ELSS Funds Operated? Diverse equity funds include ELSS Funds. These funds invest the majority of their capital in publicly traded company stocks, in a ratio that varies depending on the investment objective of the fund. The stocks are spread across a wide range of industries and market capitalization sizes. The greatest amount of capital growth is these funds’ long-term objective. After extensive market research, the fund manager selects stocks to maximise the portfolio’s risk-adjusted returns. Features of ELSS Mutual Funds Some of the most important features of ELSS funds are: At least 80% of the total amount that can be invested in ELSS is put into stock and stock-related instruments. The fund invests in stocks in a variety of ways, including across various market valuations, themes, and sectors. There is no limit on how long an ELSS investment can last. But there is a three-year lock-in period. Section 80C of the Tax Act gives tax relief on the amount invested in ELSS. The income is taken as long-term capital gains and taxed as per the current tax rules. What Kinds of Tax Benefits Do ELSS Funds Offer? ELSS mutual funds offer the following tax benefits: ELSS mutual funds have a three-year lock-in period and can get a tax break of up to 1.5 lakhs. This plan could save you up to 46,800 per year in taxes. Since ELSS funds mostly put money in equity schemes, long-term capital gains (LTCG) taxes are only 10% on gains over 1 lakh. Long-term returns on investments in ELSS mutual funds that are less than 1 lakh are not taxed. How Can You Profit by Investing in ELSS? Maximum returns in the shortest amount of time The redemption of ELSS fund units is only permitted after a three-year lock-in period. You can, however, hold the investment for longer than three years. To maximise returns, you can keep your funds invested for as long as possible. Better after-tax returns You can benefit from tax breaks, which increase fund returns. ELSS fund returns are classified as Long Term Capital Gains. Such gains from ELSS are not taxable up to Rs. 1 lakh. If increased, you must pay a 10% tax on the excess. Returns from the stock market that beat inflation ELSS, which is an indirect investment in the stock market, has the potential to earn higher returns than other 80C investments like PPF, FDs, and other fixed-income investments. Long-term investors can get the most out of ELSS funds because they may be able to climb out of the market’s short-term volatility. Things to Consider Before Putting Your Money into ELSS Funds Fund returns: Before you buy a fund, compare its performance to that of its competitors and a benchmark to see if it has been consistent in the past. If a fund does better than its benchmark or other funds, it can offer high returns. History of the fund house: It is best to pick fund houses which have done well for a long time, like five to ten years. Expense ratio: The expense ratio shows how much of your money goes toward managing the fund. If finance has a lower expected cost, you can get higher returns, so it’s always best to choose those. Financial parameters: When analysing the performance of a fund, you can also look at things like Standard Deviation, Alpha, and Beta. A fund with a larger standard deviation and a higher beta is riskier than one with a smaller standard deviation and a lower beta. Choose funds that have a higher Sharpe ratio. Fund manager: Another thing to think about is the fund manager since he or she is one of the most important people in managing your funds. The person in charge of the fund must be smart and have a lot of experience selecting the best stocks and putting together a strong portfolio. [B-02] Conclusion Investing in ELSS mutual funds is like “killing two things with one stone.” It’s a great way to save money on taxes, and it’s also a great way to invest and build wealth over time. It’s different from other ways to save on taxes because you have to keep it for at least three years. ELSS also lets you choose from different types of investments, such as large-cap, mid-cap, and small-cap, as well as others. So, it is currently one of the greatest ways to invest in India. For more information, you can visit the Piramal Finance website and explore their products and services.

08-11-2023

Personal Loan

How To Get A Personal Loan In Minutes

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

08-11-2023

Personal Loan

How to Get an Instant Paperless Personal Loan Online?

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

08-11-2023

Personal Loan

Checklist for First-time Applicants of Personal Loans

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

08-11-2023

Business Loan

How to Get a Collateral Free Business Loan with Ease?

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

08-11-2023

GST

How to File GST Return Online in India?

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

08-11-2023