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Mutual Funds

How to Choose Mutual Funds for the Short-Term?

Short-term mutual funds are one of the most popular ways to invest. They can be used by new and experienced investors. All you need to know is the basics, and you should be willing to learn more to make well-informed decisions. A mutual fund is a way to invest that combines the money of many investors into a single pool to make an investment product. The fund manager can then use this money to buy stocks, gold, bonds, and other securities. The fund manager maintains a ratio among these investments, which gives the mutual fund a specific interest rate. As a result, different mutual funds are used for different goals. How to choose the best short-term mutual funds for your investment? This article will help you through the selection process. [B-01] Step-by-step process of selecting a short-term mutual fund 1. Know your goal. The first stage in selecting a short-term mutual fund is determining your investment objectives. They include the amount of time you plan to hold the fund, the rate of return you expect, and so on. But even if you do not have a clear goal, you do not have to cut your journey short. For example, a higher education, a down payment on a house, or even retirement can be a goal. A mutual fund’s category—debt, equity, or hybrid—can be narrowed down based on your desired outcome. 2. Research the mutual funds before selecting. When it comes to choosing the right mutual fund, there are many things to think about. You need to consider your return expectations, risk appetite, financial goals, investment knowledge, etc. You can judge the investment by its historical behaviour, operating margin, the fund manager’s experience, and more. Before you start investing, you should do some research. This will help you make a better decision and give you a better idea of “what’s what” in the mutual fund world. 3. How much risk can you take? Every investment is subject to some level of risk. One of the primary objectives of any investor should be to reduce that risk while simultaneously increasing the potential for return on investment. It is imperative that when investing in short-term mutual funds, you select investments that expose your capital to the least amount of risk feasible. This is because, with a goal of less than one year, you may not have enough time to recuperate from any losses. 4. Decide how much money you can invest. When you need to reach your goals in a short period, you need to make swift and surefire investments and get your money back. In mutual funds, the “lock-in period” is the period when you cannot sell any of the units you purchased. Short-term investment goals do not work well with investments that have a lock-in period or are hard to cash out for any reason. The reason is simple: you will need the invested funds quickly. Your savings should be easily accessible once you have met your investment target. You may find it hard to complete your original mission if you are forced to wait to retrieve your investment. 5. Study the performance of the short-term mutual fund. The success of a fund is important and should be studied beforehand. You should check the periodical performance of the fund, like one month, three months or six months. It’s safe to assume that a short-term mutual fund is not worthwhile if it has underperformed in previous years. Checking the manager’s or team’s track record is crucial when assessing the success of a short-term mutual fund. Investors should select a fund based on the amount of risk they are willing to take. 6. You can choose between direct and regular plans. A mutual fund scheme can either be a direct or regular plan. In a direct mutual fund, investors purchase NAV units directly; investors can do so from a relevant fund house. In a regular mutual fund, an investor needs the assistance of a commissioner or broker (called an AMC) who charges a commission. Returns are somewhat better with a direct mutual fund since there are no commission charges. Commission fees are typically between 2% and 2.5 %, though they can be higher or lower depending on the asset manager and broker. For regular plans, the AMC would often compensate the brokerage for bringing in new customers via a commission. Due to this, the total returns on the investment will be lower. Before the introduction of short-term mutual funds in India, investors had little need to look beyond the tried-and-true method. However, now several portals provide you with the essential resources to make investing selections. 7. You need to create an investment strategy. Most people who invest do not focus on creating an investment strategy. But, it is a necessary part of how well your investment portfolio does. A systematic investment plan (SIP) is one of the most liked investment strategies. Using SIP, a selected amount is deducted from your account and invested in the mutual fund on a pre-decided date. All mutual funds allow SIPS of a set amount. SIP ensures that you are regular in your investment in mutual fund units. SIPs are an excellent strategy if you do not remember to make purchases. Instead, you do not need to set reminders because the money is transferred directly. [B-02] Conclusion Choosing short-term mutual funds may seem hard, but it is easier if you research and know what you want to achieve. If you follow the steps above for choosing the best short-term mutual funds, your odds of success will increase. Visit Piramal Finance for more insightful articles on investing and short-term mutual funds.
08-11-2023
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Other

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

Working capital is an accounting phrase that refers to the cash accessible to a company to help. It develops and expands as pay for day-to-day operations and short-term loans. Working capital is the money that a company has on hand to pay its short-term commitments. While working capital finance is vital for all firms, it is particularly important for small enterprises and start-ups. This is because smaller businesses may have less cash than larger ones. It might not have access to the same credit lines or other financing sources. [B-01] What exactly is Working Capital? Working capital refers only to the amount of money a corporation needs to meet its ongoing financial obligations. It is by no means a novel idea. A lack of operating capital will prevent a company from making necessary payments like rent, supplier invoicing, and employee salaries. What is the significance of Working Capital? Working cash is critical because it affects a company’s capacity to finance day-to-day operational expenditures. It helps fund growth plans and capitalise on new opportunities as they occur. For example, if a firm has effective working capital management it may be able to engage in innovative product development in new markets without jeopardizing its cash flow. In contrast, if the company has poor working capital loan interest rate management, it may be unable to react to opportunities or make critical business expenditures. Tips to prevent your Business from ever Running Out of Cash Collect early in the Float Game Collect early: Concentrate on accelerating your collection procedure and endeavour to get payments in advance wherever workable (retainers, deposits, pre-payments, C.O.D., etc.) If you have receivables, set up a structure for collecting them. And hire a collections company to hurry the process. Start taking credit cards and electronic payments if you haven’t already. Late payment: Reduce your payables to keep more money in the company. Get good vendor terms and wait to make payments until the due date. Trade discounts should only be used if doing so won’t impact your cash flow. Even if you don’t need it, you might still consider getting an active line of credit. The object of the float game is to amass money from clients before paying suppliers or staff. Get your Product to Market quicker The faster you turn things around, the lower your overhead expenses per entity will be, reincreasing your profitability. Analyze your processes to identify where technology might help you get things done faster. The goal here is to increase production and efficiency. Master the Art of Upselling “You want fries with that?” Use the art of the upsell or package to raise your income per client and per transaction. Focus on repeat business for continuous, predictable cash flow. This varies depending on your sector but it costs more to sell to an existing client than to get a new one. Increasing your clients’ lifetime value is the aim here. Preserve Variable Costs Reduce your company’s fixed expenses to maintain control over your cash flow. When workable, adopt J.I.T. management (Just in Time) and performance-based incentive methods to boost your margins. Consider outsourcing to someone who can do it more. If it isn’t a fundamental component of your company. Here, keeping an eye on your cash flow and monitoring your margins is important. Get Lean and Mean When your firm grows, it is simple to transform it into a “lifestyle.” Yet, the most successful business owners live within their means. And keep as much profit as possible flowing to the bottom line. Begin by paying yourself in a way that reduces your tax burden. Carefully evaluate every line item on your profit and loss statement to regulate your effective tax rate (but don’t spend your way out of a tax problem!). Another piece of advice is to use a cash-back business credit card to get rewards on purchases you would have made anyhow. Maintain as much profit as possible in your bottom line. Schedule your Cash Flow The last profit-boosting advice concerns how you set your budget. In normal times, you should create your budget every month, but in times of financial stress, you should check your cash flow and budget. Cash is needed for successful expansion, so get familiar with your S.G.R. and keep track of it often. Advantages of Effective Working Capital Management Increased Cash Flow When working capital is managed, businesses see increased cash flow. This enables them to reinvest in the firm, pay off debt, and seize opportunities as they occur. Profitability Increase Increased profitability results from good working capital management. Businesses now have more funds to reinvest in expansion efforts and operational efficiency. Improved Decision-making Better decision-making leads to an increased financial flow. Businesses may spend on R&D, and use critical individuals. And make other choices to help them compete and flourish in the marketplace. Lower Borrowing Costs Working capital management may result in reduced interest rates. And more favourable lending arrangements. Businesses with good working capital loan situations are more likely to secure funding on acceptable conditions. Increased Investor Trust Working capital management instils trust in investors. When investors perceive that a firm is managing its finances. They are more willing to invest in it. Providing it with the funds it needs to develop and prosper. [B-02] Conclusions The frequency of your cash flow checks will depend on how your company turns over money. You should check in every month or every week. Making sure you check it often is your responsibility. You will always be well-positioned to respond to change. And avert a cash flow catastrophe if you keep an eye on your cash situation. Additionally, you’ll be able to consider recurring payments like company tax and V.A.T. Making wise financial and investment choices for your organization’s future and ensuring. It doesn’t run out of money and needs an accurate cash flow projection. To learn more about such types of topics, visit Piramal Finance.
08-11-2023
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General Insurance

How to Change Nominee in Term Insurance?

A term life policy will financially protect you. Most of you think that insurance plans are just for family members. However, there are several reasons why one should get term life insurance. The insurance is fairly priced and gives cover for a certain time. When it comes to term life insurance, you have many choices. With a yearly renewable term life policy, the coverage may extend for at least a year. Term life insurance plans are offered with terms of 10, 15, 20, & 30 years. When getting term life insurance, three factors must be kept in mind: coverage, term, and business. The insurance covers you as long as you pay the premium. [B-01] What Exactly Is Term Life Insurance? Term insurance is a kind of life insurance that protects against the danger of early demise. When you get this insurance, you pick the sum insured and the term of the policy. After that, in the event of death within the policy’s term, the sum insured is paid to the candidate. Term insurance policies often do not offer a maturity benefit. That is, if the insured lives until the conclusion of the policy period, there is no payout. For example, suppose you purchase a 25-year term plan with an amount insured of Rs. 50 lakhs. Hence, a term insurance plan protects the risk on the insured’s life for as long as the plan is in place and all payments are made on time. Term Insurance Plan Features Here are some distinct features of term insurance plans that set them apart from other types of life insurance: As a pure safety plan, term plans provide the highest sum covered at the lowest cost. These plans are available for the long run. Some term insurance provides coverage for up to 85 years. If the insured dies during the period of the policy, the whole sum promised is given to the designee as a death benefit, as well as the policy is cancelled. Term plans have extra riders that you may add to your policy. Many plans also include riders that provide a broader range of coverage. Who Can Be a Nominee For Your Term Life Insurance Policy? The rules for life insurance nominees have been created to help you make the best decision as an insurance holder. An online term life insurance plan is a quick, safe, and cost-effective method to apply for insurance and select a nominee. The points below will tell you who may be a nominee for your term life insurance plan. Helpful Nominees It is customary to pick a close family member such as a spouse, kids, or parents as a nominee. If such is the case, the stated member of the family will be the Helpful Nominee of the death claim. The law states that any other lawful heirs are not liable for death benefits under the life insurance plan. Pick a close family member as the Helpful Nominee to prevent future legal heir problems. Minor Nominees You can nominate your kid. It is a wise choice since they must profit from the money insured when you die. If the youngster is under 18, they might be unable to manage the lump sum payment. To collect the death benefit for the minor, you must name a caretaker. The sum will be received by the caretaker in place of the minor. Multiple Nominees You have the choice of selecting many nominees for your term life insurance. You may also specify the per cent of the death benefit each person would get. If no exact percentage is stated when you register the nomination, the insurance firm will split the money insured evenly. How Do You Select a Term Insurance Nominee? Selecting a nominee for your term life insurance is a serious decision. To make an educated choice, consider the following: Know your choices to pick a proper candidate. You may choose a family member such as your parents, wife, kids, or close relatives as the nominee. You must show proof of term insurance interest for a distant family member to the insurer. If you do not comply, the claim may be denied. Consider the aim of the nomination in your specific context. If you have numerous financial heirs, for example, pick a nominee who can utilise the death payout to meet the needs of the family. How to Replace a Nominee in Term Life Insurance? You may need to replace the nominee in your term life insurance plan on a regular basis. If you think this is the case, you may always contact your insurer and request a revision of the nomination form. Let’s have a look at the processes involved in replacing a nomination. You may get the changes in the nomination form on your insurer’s site or in person at a branch office. Fill out the form completely and send it to your insurance firm. Fill in all of the new nominee’s information accurately. As a policyholder, you must show the insurer that your connection with the new nominee is genuine. To prevent future conflicts, request an acknowledgement from the insurer when they change the nominee data. If you haven’t yet designated a nominee for your term insurance, do so now. This will prevent your family from running into legal issues while settling claims. When Should a Nominee Be Chosen for Term Life Insurance? When you want to secure your family’s financial future, you must choose the right level of coverage for them. You must grasp the procedure’s terms and factors, especially the nominees for your term insurance plan. After learning about the nomination’s meaning and ramifications, it is best to proceed with the purchase of term insurance. Typically, deciding who and what is eligible for nominee benefits occurs at the policy’s beginning. However, you may modify the candidate after the policy is in place. As previously stated, it is up to a policyholder to determine what the word “nominee” means in terms of their financial status. Your choices may change over time, and you may need to adjust who gets the perks. As a result, you may replace your nominee during the insurance term. [B-02] Conclusion You must pick the proper person as your candidate for term life insurance if you have several options to pick from. If your parents are working or get a pension after retiring and do not need further help, name your wife as your nominee. You can also select your children if they are competent in making the greatest use of the money. If your kid is a minor, make a sound judgement on who to nominate so that the death claim is passed to the kid without any loss when she or he reaches the age of maturity. If you want to know more about the term life insurance, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Other

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

You should update your name or phone number associated with your EPF account for several reasons, such as moving to a new city or updating your information after getting married. Fortunately, since your UAN (Universal Account Number) houses all your account information in one location, making these adjustments is easier. You can easily change your name, phone number, and other details by logging into the EPFO e-SEWA site or by going to your local Employees’ Provident Fund Organization office. You could use the same account after it has been changed to check your PF balance and the progress of your balance transfer, download your PF book and keep track of other data. However, remember that you can only change your details once you link and validate your UAN with your Aadhaar number. Therefore, complete this step before moving on to the next one. [B-01] How to update a PF Account with a New Name and How to Change a PF Account’s Name Offline Complete the application form, sign it, and have your employer’s seal and signature placed on it. Include self-attested copies of records that reflect your legal name. You may submit a copy of your passport, licence, PAN card, Aadhaar card, and voter ID card. Next, give the form and supporting documentation to your employer, who will then give them to the relevant EPFO Field Officer. If you need to submit your application to the designated Field Officer immediately, stop by your neighbourhood EPFO office.Next, we will learn how to change your mobile number in an EPF account. How to Change the Mobile Number Online in an EPF Account Go to the EPFO e-SEWA portal first. Select “Contact details” from the drop-down menu in the “Manage” section. Press the “Change Mobile Number” button. Type in the new mobile number twice. Press the “Get authorisation PIN” button. To finish the process, enter the OTP sent to your mobile number and click “Save changes.” How to Change your Cell Phone Number Offline in an EPF Account Fill out the appropriate form with your phone number, ensuring it is connected to your Aadhaar card. This form will be sent to the regional PF office for approval after being signed and approved by your employer. Following the registration of the new mobile number, you will receive an SMS from the EPFO verifying the change. Required documents to Access EPF Account The government has established a list of documents that have been eligible for these revisions, and that list includes records like: Passports Voters ID card ESIC ID card Aadhaar card Bank or post office passbooks Driver licence Pan Card Certificates about education and schools A copy of your name-branded phone, electricity, or water bill Birth certificates and death certificates that the registrar has issued A certificate made based on the government service records (state or central) Enter the information that needs to be changed, the correct entry, and the incorrect entry in a table with three columns. Dealing with Issues in the Event of Incorrect EPF Details When making a withdrawal, incorrect information in your account may cause complications. There won’t be any issues with your withdrawal as long as you fill out the EPF withdrawal form. That is not the case, though. The paperwork you provide to your employer while registering for EPF balance check is also very important. It is crucial to verify that the information provided while registering is accurate since, otherwise, You may reject the online claim form for further reasons. The information provided on the form must correspond with the firm records for a claim to be approved. Some of the mistakes that could result in an EPF claim being rejected are listed below: Any incorrect or misspelt information entered into the EPF’s records during enrolment may lead to the denial of an EPF claim. When a member gets married, you should immediately correct the nominee information because failing to do so could cause complications when filing an EPF claim. Another piece of information that, if incorrectly entered, could cause several problems with EPF processes is the date of joining. Since the EPS pension is calculated using the date, it is essential. The computation of the number of years of EPF balance check contribution mainly depends on it. Online Credentials Change Process Most of the services are moving online, despite the website being in transition. EPFO has launched the EPFO UAN site to enable online adjustments. You need a UAN number, cell phone number, and password to access your EPF account through this website. The 12-digit UAN assigned to employees who make EPF contributions is unique. Throughout an employee’s career, the UAN remains constant. Visit the EPFO UAN portal and select “Profile” if you want to update your cell phone number. You can alter your mobile phone number by clicking on that tab. However, you must continue using your previous cell phone number while you complete the switch. If you need an active cell phone number and lose your login password, you’ll need to submit an online request through the help desk portal. [B-02] Conclusion You discover that the old number was registered with the EPFO when you change your mobile number and attempt to access your EPF information. You must now alter your EPF mobile number, so the EPFO portal displays the new number. And now you’re wondering how to update your mobile number with EPFO or alter your mobile number in your PF account. Changing your EPF cellphone number is necessary since you will be able to use the services or receive SMS notifications. These straightforward procedures can help EPFO members update their EPF account cellphone number online. Now you have all the necessary information regarding EPF balance check. For more details, read our blogs on Piramal Finance.
08-11-2023
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Personal Loan

How to Check If a Personal Loan App Can Be Trusted

The Indian government blocked 27 digital personal loan apps in India, leading to a huge crackdown on bogus loan apps. The Ministry of Electronics & Information Technology (MeitY) made this judgement after getting a demand from the Ministry of Home Affairs. There were far too many fake loan apps on the Google Play Store and Apple App Store, robbing users of their funds. Sadly, this came when you needed money and had been refused by regular lenders. Such events have shaken your trust in such loan apps greatly. But it wasn’t all gloom and doom as trusted apps also aided so many people in getting funds fast. This shows one thing: the industry for FinTech firms is expanding. If you want to borrow money from a reliable app and avoid falling victim to bogus lending apps, pay an alert to the warning signs listed below and make an educated choice. [B-01] What Exactly Are Personal Loans? A personal loan is borrowed at a fixed rate and repaid over time. These loans are unsecured. Thus, no security or assets are required. Use the loan proceeds to meet your urgent money needs, whatever these may be. Yet, obtaining a loan is a fantastic solution to all your money needs. A personal loan is likely one of the most vital duties. You must alter your budget to repay it on time, even without paying a lump sum. Yet, if you want a loan, make an effort to get one with the lowest personal loan interest rate available. Warning Signs That a Personal Loan App is Fake Learn More About the App Is the brand well-known? Is it trusted? Has anybody else checked out this lender? Before you place your faith in one of the apps, you must have answers to these concerns. Trust only well-known brands to ensure the legitimacy of payments. Inspect The App Store’s Developer Area Check the developer part to see if an app is bogus or not on the app or play store. A firm’s website should almost always be included. It’s a big red flag if there is none. Many false lending apps for iPhone or Android do not even include a website. In some cases, they may include a link to a fake website. Do not install such apps. Decide Whether the Lender’s Site is Safe Apps often list a website, which may or may not be an unsecured webpage. A secure webpage always has https:// before its URL. This protects your information from cyber felons. Avoid Offers with Short Deadlines Fake loan apps have one goal: to take your cash and vanish. As a result, they could shower you with what appear to be appealing deals while claiming that they are only available for a limited time. Valid lenders will not set such deadlines and will have a series of steps in place for starting any transfer of funds. If you are forced to act quickly, you are being fooled, and the app is fraudulent. Go Through The Reviews User reviews can often provide insight into the app’s validity. If the app has irritated enough debtors, there may be a review or two. So, before downloading the app, read the reviews. Advantages Of Taking Out A Personal Loan Usage Adaptability The flexibility of a personal loan is a huge benefit. Unlike a vehicle or housing loan, this monetary source is limitless and may be utilised for any need. In other words, you may use the money you borrow to pay for a wedding, vacation, education, medical costs, jewels, electronic items, and so forth. Said it’s a quick way to get you out of your current financial status. Rapid Payment Pre-approval is generally granted quickly. Meeting the qualifying conditions is critical when it relates to a fast personal loan. A high credit score is a distinct benefit. The time taken for a bank or lender to issue funds varies, although it is usually within 24 hours and no more than 72 hours. As a result, it is your greatest bet in a crisis. If you are a current client of the bank you are applying to, you may be entitled to rapid online approval. There Is Little Paperwork The paperwork that must be done, as with papers, is modest. This speeds up the operation. Don’t hesitate to get in touch with the customer service department at your nearest branch if you have any questions. They may even dispatch someone to your place to assist with the paperwork. No Collateral Is Needed. You will not be required to produce any collateral if you apply and are qualified for a personal loan. As a result, your investments are secure. This is a big benefit if you do not own any assets. As it is unprotected, a personal loan is regarded as the greatest way to get fast financial aid. Once you’ve completed the preliminary steps, you’re ready to proceed! Attractive interest Rates Personal loans have low-interest rates, making them open to all of you. This ensures that your EMI stays constant during the term of your loan. As a result, there’s no need to be concerned about the ever-changing interest rates that define other sorts of loans. Tax Advantages A personal loan also has the added benefit of allowing you to claim a tax credit when you use it to pay for home repairs or building. According to Section 24B, the benefit sum may be up to Rs 2 lakh, yet, you must submit enough proof to prove that the funds were used for the stated use. [B-02] Conclusion The questions listed above are just a few you should consider before providing your personal information as well as bank account info to a loan app. Many other factors can assist you in determining the legitimacy of your loan supplier and their personal loan apps. You should be aware of the distinctions between genuine and fraudulent loan apps. If you want to know more about personal loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Other

How to Calculate Your HRA Benefit in Minutes?

House Rent Allowance (HRA) is given to all eligible employees to cover their housing costs in a new city. It is a non-taxable part of an employee’s salary. HRA is not the same for each employee. It is based on the salary provided and the place of living. Hence, the employee can claim HRA benefits. HRA is deductible under Section 80C of the Income Tax Act,1961. Read on to find out how you can calculate HRA. [B-01] What is an online exemption HRA calculator? An online HRA exemption calculator has made it easy to calculate the HRA benefit. Online HRA calculators will ask you for your salary breakdown and compute your HRA. Formula to calculate HRA There are a few factors used to calculate HRA. These factors are as follows Total salary Property rent HRA compensation included in your salary Residence location (metro/non-metro cities) There are three ways to calculate HRA. HRA = The actual amount paid by your employer as HRA. HRA = 10% of the basic pay deducted as the actual rent. HRA = DA* + 50% of the annual salary (metro city residents) or DA + 40% of the annual salary (non-metro city residents) *DA = Dearness allowance Of the three, the lowest amount can be claimed as HRA relief under Section 10(13A) of the Income Tax Act. Consider the following example. Mr Sitaraman works in Chennai and earns a salary of ₹50,000. In Chennai, he lives in a rented house. The rent per month is ₹7,000. He receives HRA from his employer. This HRA benefit is eligible for tax. ParticularsAmount per month (₹)Base Pay30,000HRA8,000DA 8,000Provident fund 4,000TOTAL SALARY 50,000 Using the HRA calculation formula, Mr Sitaraman can calculate the following HRA. Formula 1: The amount of HRA paid by your employer = ₹8,000 x 12 = ₹96,000 Formula 2: 10% of the basic pay deducted as the actual rent Actual Rent = ₹7,000 x 12 = ₹84,000 10% of the Base Pay = ₹30,000 x 12 x 10% =₹36,000 Subtracting both, you get, ₹84,000 – ₹36,000 = ₹48,000 Formula 3: HRA = DA + 50% of the annual salary (metro city residents) or DA + 40% of the annual salary (non-metro city residents) Chennai is a metro city. Hence, 50% of the basic salary would amount to ₹1,80,000 (50% of ₹3,60,000). Therefore, HRA = ₹8,000 + ₹1,80,000 = ₹1,88,000. From the three formulas, the lowest amount is ₹48,000. Therefore, Mr Sitaraman can claim ₹48,000 under section 80C. The remaining ₹48,000 will be taxable as per Mr Sitaraman’s income tax slab. Online HRA calculator and HRA benefits If your employer provides HRA, an online HRA calculator can help you. Following are the steps to use an online HRA calculator: Step 1: Enter the total salary you receive and HRA your employer provides. This is mentioned in the salary slip. Step 2: Enter the amount you pay in rent and mention whether you live in a metro city or not. The HRA calculator will provide you with your taxable amount in minutes. What is the benefit of using an HRA calculator? The key benefit of using a credible HRA calculator in India is that it is easy and error-free. It is impossible to make a mistake on the calculator. You can use it as many times as you want. Furthermore, online HRA calculators simplify lengthy calculations. And finally, an HRA calculator can give instant results even if you change the numbers. Manual calculations will take a lot more time. Eligibility for HRA Relief Self-employed people cannot avail of the HRA benefit. This tax benefit is available to professionals only for the period when they rent a house. To be eligible for HRA benefits, you must fulfil the below criteria. You should be working with an entity which you do not own. You must be residing in a rented home and receive HRA from your employer. If you own a property in the same city, you are not eligible for the benefit. You need to provide a rent slip as proof to claim relief. You can claim relief if you live with your parents as long as you can provide rent receipts. Documents for HRA Exemption Claim You need the provide the following documents to claim HRA benefits: You and your landlord’s identity proof Tenure of occupancy Rent receipts signed by the owner. Copy of the Rental Agreement You also need to submit a copy of the landlord’s PAN card if the rent paid is more than ₹1 lakh per annum. Points to note while ruling out the HRA exemption Even though your employer may include HRA in your salary, this does not make you eligible for the exemption. You must live in a rented house to be eligible for tax relief. You cannot claim the total amount of your HRA as a tax deduction. The formulas will be used to calculate HRA, and the least of the three amounts will be eligible. Mumbai, Delhi, Chennai, and Kolkata are the only cities considered to be metro cities. The HRA deduction cannot be used to cover the cost of a spouse’s rent. [B-02] Conclusion There are few legal ways to save money on taxes. Hence a salaried worker should not pass up the chance to take HRA benefits. Be sure to keep all verifiable proofs with you when you claim an exemption. For security’s sake, it is best to send rent money through a bank account rather than hand over cash. The exempted amount is determined based on section 10(13A) of the Income Tax Act. If you enjoyed reading this article, visit Piramal Finance for more articles on personal finance, investment, taxation and business finance.
08-11-2023
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Home Loan

Home Renovation Loans: Interest Rates, Charges and Eligibility

There will always be the occasional need for home repairs or reconstruction. Home renovations can include changing the structure of your current home or other major repairs. Understandably, any home improvement project is going to cost a substantial amount of money. You may also need to make other repairs that are important and need to be done right away. When this happens, a home renovation loan can come in handy and keep you from having to use your savings. Banks and nonbanking financial companies (NBFCs) offer home renovation loans that give borrowers a lot of freedom to use their loan amount for various purposes and also give them more time to repay their loans. Furthermore, these funds have longer instalments and lower interest rates compared to other types of loans. [B-01] Eligibility criteria for home renovation loans These are the eligibility criteria to get a home renovation loan: Age: If you are between 18 and 65 years old, you can get a home renovation loan. If you are in this age range, the lender knows that you have enough money to repay your home renovation loan within the set time frame. Citizenship: You need to be a citizen of India. Employment: You must have a job with a publicly or privately owned organisation or an MNC that pays you a salary. Having a secure job is considered important to the lender because it proves that you will be able to repay your loan on time with your steady income. If you are self-employed or a business owner, you can also apply for a home renovation loan. The documents required are the same for both salaried employees and self-employed people. Residence: You must have permanent resident status or a rental home where you have lived for at least one year before applying for the loan. Credit Score: You need a good credit rating for just about any loan, whether it is a home renovation loan or any other type of loan. Most banks want a score of around 750. A good credit history shows that you can pay back loans on time and do not have a record of defaulting on payments. When deciding if a person is eligible for a home renovation loan, lenders may also look at things like their income, debts, assets, work history, and the stability of their business (if they own a company), among other aspects. Documents for home renovation loans When you are applying for a home renovation loan, the lender will require certain documents to be submitted with the application form. These documents are requested to determine whether you meet the lender’s eligibility requirements. These are the documents you need to send along with your application: Identification Proof: You will need identification documents such as a PAN card, an Aadhaar card, a valid driver’s licence, a passport, or a voter’s ID. Address Proof: You will need documents to confirm your residence, such as electricity bills, a valid driver’s licence, an Aadhaar card, a passport, or a voter ID. Application Form: You will need to send in your application form with passport-sized photos and supporting documentation. All of your information should be written exactly as it is on your eligibility documents. Interest rates for home renovation loans The rate of interest for home renovation loans ranges from 10.5% to 14%. The rate of interest for these loans is lower as compared to other loans, such as personal loans. The repayment period for home improvement loans can be up to 15 years. Processing fees and service charges for home renovation loans To process and approve your home renovation loan, the bank may have processing, administrative, or service charges or fees. Usually, this is a small amount, and it differs from one bank to another. Most banks, NBFCs, and housing finance companies (HFCs) charge service fees to both new and current borrowers for home renovation loans. Home renovation loans have processing fees that are between 0.25% and 2% of the total loan amount. It is important to note that the Reserve Bank of India (RBI) has imposed strict rules on lenders that charge prepayment fees on loans with a variable interest rate. Fixed-rate loans do have prepayment fees, but lenders can choose whether or not they want to charge them. Features of Home Renovation Loans These are some features of home renovation loans that are important to know before you apply: The term of the home renovation loan could range from 5 to 30 years, based on the lender’s terms. The loan can cover about 90% of the expected cost of the proposed home improvement. Customers can get loans with either fixed or changing interest rates. The documentation is simple. If you already have an existing home renovation loan but come across another lender offering the same loan with a better interest rate, you can transfer your existing loan to the new lender without any hassles. Home renovation loans give people a lot of freedom when it comes to using their loan amount. You can use your home renovation loan to make modifications inside and outside your home, such as adding a room, plastering or fixing the roof, securing leaks, fixing the pipework, and more. [B-02] Conclusion Renovating your home will not only make it more comfortable but also increase its value. With easily accessible home renovation loans, you do not have to worry about getting access to the finances you need to make home improvements. To make sure that your home renovation loan application gets approved quickly, you need to check that you are eligible to apply and prepare the required documentation. For more information on home renovation loans, visit the Piramal Finance website and browse through more useful articles like this one, including information and guidance on loans and more!
08-11-2023
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Home Loan

Get Home Improvement Loan Online

Many new trends may help you turn your house into a lovely home. You don’t have to wait for the cash to be arranged to get your house remodelled. You may fulfil your home remodelling goals with a home improvement loan online. A home renovation loan may be used for many things, like changing the floors, tiling, house expansion, garden design, and painting. The loan also covers costs like contractors, raw material buys, etc. Its goal is to relieve you of your financial load. [B-01] Perks of a Home Improvement Loan Online Let’s review some benefits of updating your house with a home improvement loan online: Room to Grow An online home improvement loan gives you a chance to expand your home. If desired, you may expand your house to fit a growing family or a new lifestyle. It is solely up to you whether you install an extra bathroom at the rear of the home or pull down a wall to make more space. Less Costly Than Purchasing a New House Maybe you’re tired of your bathroom faucet always leaking. Or, you despise that ugly carpet. When all the costs of purchasing and selling a house are included, upgrading often ends up being good for the budget. Makeover/Update the Look of Your Home Finally, updating your house enables you to change your daily life. Whether adding solar panels on your roof to reduce energy expenses or installing a new cooktop. That isn’t from the 1970s; you can make your house more trendy and sleek without relocating. Increases The Value of Your House One of the key reasons many opt to remodel is to boost the house’s worth. Updating may be a great method to raise the value of your home. This means more cash in your pocket when it’s time to sell. Personalisation When you remodel, you may make specific changes to your tastes. Do you, for example, like the aesthetic of a feature wall? You may use whatever colour you want and place it wherever you like. If you like lengthy showers, consider building a low-cost rainwater shower. You can add to or modify anything in your house; the choices are almost endless. Eligibility Criteria for a Home Improvement Loan Online Indian people may qualify for a home repair loan. Some lenders also provide NRIs with home repair loans. Home renovation loans are usually available to new loan forms or current debtors (in case of a debt transfer) aged 18 and above. Yet, lenders often expect to remodel loans to be returned by the time the debtor reaches the age of 70. This loan is available to both salaried and self-employed people or firm owners. Buyers may also improve their chances of getting a loan by adding a co-borrower, choosing a longer loan term, or listing an extra source of income. Loan buyers with credit scores of 750 or above have a better chance of getting a home renovation loan. Many lenders also offer lower-rate home improvement loans online to users with higher credit scores. Papers Needed For Home Renovation Loans Buyers may apply for a home improvement loan online singly or jointly. All owners of a house or property for which a loan is being secured must be co-applicants, although not all co-applicants must be co-owners. Close family members may be loan co/applicants. The following papers are required when asking for a home improvement loan online: Identity Proof Income Paperwork Papers for your home or property How To Get A Home Improvement Loan Online The process to get a home improvement loan online varies from one lender to the next. However, there are still some general steps you can follow. Fill The Application Form Getting a home improvement loan online starts with you filling out an application form online. Here, you give personal information like your name, phone number, address, monthly and yearly income, and educational credentials. Document Verification The second stage ensures that the papers you submit to the lender are authentic. This can take up to two days. The lender also checks whether you can pay back the loan sum within the stated period during this phase. Background Check The lender also runs an inquiry whereby they check the borrower’s past. The bank checks the data supplied by you via an exact residence address, place of work, or office contact data. Payment of Processing/Transaction Fees Only after you have completed the prior stages and paid the processing fees will the lender approve your loan request. The processing fees are to be paid by the borrower for the lender to begin the transaction. However, this step does not confirm your loan. Loan Approval The loan approval process is the most vital step. Here, the lender chooses whether to accept or reject your loan request. At this point, you get to know the maximum loan amount and the rates based on the lender’s sanctioned tenure. The lender will send you an official letter indicating the same. Technical Examination of Property or Real Estate Papers Following loan approval, the lender retains ownership of all original property papers until the loan amount is returned. Before granting the loan, the lender examines the property records and may even send a representative to see the property in person. [B-02] Conclusion Renovating your home may drain your funds, mainly if it is older and needs a lot of work. The prices of raw materials and labour might also vary a lot across the nation. Most people repair the houses during the festival season or for other big family events, such as weddings. This affects things further since there are many extra costs during festivals and wedding seasons. As a result, many people delay their home restoration plans due to a lack of cash, as house repair is low on the priority list. Many people have recently turned to lenders to get a home improvement loan online. This is because these loans can be applied for easily and paid back over a few months. Many lenders give clients fast home remodelling loans at low interest rates and no collateral requirements. If you want to know more about the many types of loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Personal Loan

5 Smart Tips To Get The Best Personal Loan Interest Rate Deals

Personal loans are easy for many people to get extra cash. They’re accessible and affordable. Anyone above 18 can get one. However, this ease comes with downsides as well. Interest rates on personal loans tend to be higher than those for other types of loans. Since they’re not secured against any asset or collateral, lenders need to charge higher rates to compensate for the risk they assume by loaning money. However, with the rise of lending platforms and increased competition, personal loan interest rate deals have never been better. With more lenders entering the market and offering competitive rates to attract customers, savvy borrowers can find great interest-rate deals on several of their loans. [B-01] How to Get the Best Personal Loan Deals? If you’ve been looking for the best personal loan interest rate deals, you’re in the right place. Read on for top tips on how to get the best personal loan interest rate deals from different lenders. Apply For Loans With Multiple Lenders The days of applying for a single loan are over. It is possible to get multiple loans from different lenders with little effort. This is because all options are available online and different lenders offer loans at different rates. It can help you get the best personal loan interest rate deal. There are various ways to get loans with multiple lenders. You can apply for loans through your alumni networks, your network of friends and family, and even your employer. Exploring options with multiple lenders will ensure you get the best deal possible. Over the years, the number of lenders has grown. As a result, the competition has skyrocketed. Almost all lenders are offering attractive personal loan interest rate deals to get new customers. If you are willing to explore multiple options, you can take advantage of this competition. Some may even be willing to offer better terms and conditions to get you to sign up with them. However, you must remember that applying for a loan with multiple lenders at the same time may adversely affect your credit score. Shop Around For The Best Rate You can save a lot of money on your loan if you shop for the best rate. Not only will you get a better interest rate deal on your loan, but you will also save on fees associated with the loan. It is because you will be comparing loan interest rates and fees between different lenders, depending on your loan goals, loan requirements, and loan type. This way, you can get the best combination of loan interest rate, loan amount, and fee amounts. You will have to speak with multiple loan managers at different lenders to find the best deal they can offer you. Negotiating with them may help relax the terms and conditions accompanying the loan. Use Comparison Tools To Spot Good Personal Loan Interest Rate Deals You must negotiate with multiple lenders for the best interest-rate deal on your loan. It can help you get the best interest-rate deal on your loan. Several websites and applications allow you to compare various loan programs. You can use them to narrow down your search. Lenders and their interest rates will be mentioned in one place. You only have to go through the list, find the lenders you want to apply to, and compare the interest rates they offer. It can be a preliminary exercise. Once you’re done comparing, you can reach out to these lenders. You can discuss the possibility of lowering the rates under an existing deal being offered to customers by the lender. It is crucial because the interest rates listed by lenders on their websites are not the lowest possible rates. There is always a margin that you can take advantage of if you’re ready to discuss the issue with the lender. Know Your Loan Goals And Requirements You can save money on your loans if you know your loan goals and needs. It can help you compare different lenders and get the best personal loan interest rate. For instance, if you need a loan to buy a house, consider comparing the interest rates of a home and an auto loan. This way, you can get the best interest rate on a loan that applies to your goals and requirements. Identifying a compatible lender becomes easier when you know what you want in a loan. For example, there may be a lender offering a significantly lower rate than the bank you usually get loans from. However, this lender is new to the market and not very customer-friendly. In that case, you may prefer to go with your existing bank rather than the new lender. It is because you are getting a better package with your existing bank. Research Your Loan Options Before Applying While shopping around for the best personal loan interest rate deals on your loans, it is first important to research the loan options available with the different lenders. You can compare loan terms and find the best interest-rate deal. By using an online calculator, you can research your loan options and get the best personal loan interest rates. You can also use this calculator to get an idea of the repayment amount and interest rate. This can be done without having to enter any personal information. It can help you compare loan terms and get the best interest-rate deal on your loan. In many cases, good deals from lenders get buried due to an overflow of information. Researching may help you rediscover those offers. Moreover, with research, you may learn how to present your case for a loan in the best possible way. [B-02] To Sum Up With the rise of digital lending, more people are becoming aware of the benefits of loans and are more conscious about borrowing money. And with more lenders entering the market and offering competitive rates to attract customers, savvy borrowers can find great personal loan interest rate deals on several of their loans. You can try the art and science of negotiation to get the best interest-rate deal on your loan. For more information on getting the best personal loan rate from lenders, visit Piramal Finance. They have many articles and blogs to help improve your finance skills.
08-11-2023
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