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Personal Loan

How to Reduce Car Loan EMI?

Buying a car, whether new or used is an exciting step. But for most people, it also means taking a car loan and paying EMIs every month. Over time, these EMIs can feel heavy on your budget, especially if you're trying to manage other expenses. The good news is that there are smart ways to reduce your car loan EMI and make your monthly payments easier. Whether you’ve taken a loan for a new car or a used car, you can still lower your EMI by planning wisely and making a few smart decisions. In this guide, we’ll share simple and effective tips to help you reduce your car loan EMI, so you can enjoy your drive without stressing about your monthly payments. [B-01] Tips to reduce your car loan EMI If the EMI of your car loan consumes a major part of your monthly income, you might have to sacrifice some of your expenses. To avoid this, you can follow a few simple tips given below. These tips will help you reduce your car loan EMI. Opt for a bigger down payment – Before buying a car, you should plan your purchase in such a way that you can pay a larger amount as a down payment. You cannot afford to pay the whole cost of the vehicle in one go, but you can try to accumulate a big portion for the down payment. A big down payment can reduce the principal amount of the loan. You can save money on interest by taking out a smaller loan. A smaller loan will have lower interest and monthly payments. Go for a loan with a long tenure – If you are not in a position to pay off higher EMIs but still want to finance a car, you should choose a loan with a longer tenure. If the repayment term of the loan is long, you will have to pay EMIs for a long period, but the amount of the EMIs will be less. Long-term loans have shorter monthly repayments as compared to short-term loans. You can use the vehicle loan EMI calculator to know the EMIs payable with different loan tenures. Use your surplus money to pay the outstanding loan amount – The major part of the initial EMIs of a loan is apportioned to the interest on the outstanding principal. If you want to lower your EMIs, try to pay off the outstanding principal amount whenever you have surplus money in your hands. It will assist you in lowering future monthly payments by saving interest on the outstanding loan amount. You can use the car loan interest rate calculator to see the effect of a decrease in the outstanding loan amount on your car loan EMIs. Take a loan from your existing bank – It is better to get your car financed from your existing bank in which you maintain your savings or current account. Your existing bank is aware of your creditworthiness and financial background. You can negotiate for a lower processing fee, and the bank can help you choose the most suitable financing scheme that allows you to pay reduced EMIs. Maintain a good credit score – Banks check your credit history before approving your loan. If you have a poor credit history, a bank can still approve your loan, but with high-interest rates. Therefore, you should plan your decision to buy a car at a time when you have a good credit score so that you can procure a loan at a low-interest rate. A loan with a lower interest rate can ensure you have small EMIs. Negotiate the final price of the car with dealers – Compare the prices and discounts offered by several car dealers before purchasing a car. You should opt to buy from a dealer who offers the maximum discount so that you have to get the lowest possible amount of loan from the lender. A lower purchase price results in a lesser loan amount, which will consequently result in lower EMIs. You can use the car loan interest rate calculator to calculate EMIs payable at different loan amounts. Choose a lender that offers loans at the lowest interest rate – You should get your car financed from a lender that offers you the best deal in terms of long tenure and low-interest rates. You should explore various finance schemes offered by banks and NBFCs and then choose the one that can provide you with the desired benefit of lower monthly payments. Select a car according to your repaying capacity – The decision to buy a car should be taken after considering your present and future financial needs. If you have other major expenses lined up, it’s better to buy a car that can fulfill your needs rather than an expensive, luxurious car. If you already own a car, you can exchange it for cash and increase the amount of the down payment for your new car to reduce the EMIs. NBFC loan options – Car dealers have tie-ups with non-banking financial institutions (NBFIs). You can get a beneficial financing scheme from these NBFCs. The car dealer has to sell the car, and the NBFC has to forward a loan, therefore, you can get a good offer from the car dealer’s NBFCs. Procure a loan with low processing fees – Processing fees and other administrative costs of a loan are negotiable. You can ask the bank to reduce or lower the processing fee. You can use your savings to increase your down payment and lower your loan amount, lowering your car loan EMIs. [B-02] Conclusion Buying a car is everyone’s dream. Getting a car loan can be the best option for buying a car. With the help of the above tips, you can reduce the burden of high EMIs. Plan your decision according to your level of income and expenses, and then choose a lender that can offer you the best deal. Take calculated steps from time to time to lower the burden of the outstanding loan and reduce your vehicle loan EMI.
08-11-2023
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Home Loan

Top Reasons Behind Why You Should Choose a Home Loan Balance Transfer in 2022

Looking to buy a new home in 2022? Fantastic! There are a few things you need to take care of before making a home loan transfer. You want to make sure you get the best rate possible so that you can save as much money as possible on your monthly payments. But how do you make the best possible home loan deal for you? A home loan balance transfer might be the answer. Keep reading to find out more! [B-01] Better Service A home loan transfer helps provide better service as it allows the customer to port their home loan to a bank or housing finance company. This is useful if the customer is not satisfied with the service provided by their current lender. In order to make a home loan transfer, the customer has to approach their new lender with the necessary documents. The new lender will then take over the processing of the home loan and the disbursement of funds. The entire process usually takes 4-6 weeks. A home loan balance transfer is a convenient and beneficial option for customers who are looking for better service and lower interest rates. Lowers Your Interest Rate One of the most common reasons people choose to transfer their home loan balance is to secure a lower interest rate. If you’re paying a higher home loan EMI, transferring your balance to a new lender could save you a significant amount of money. Additionally, a balance transfer can also help you pay off your home loan faster. When you transfer your loan balance to a new lender, you usually have the option to choose a different repayment period. For example, if you have 20 years left on your current home loan, you may be able to choose a 15-year repayment period with your new lender. This would mean that you would make higher monthly payments but could save money on interest and pay off your loan five years earlier. Better Loan Terms A primary reason to opt for a home loan balance transfer is to take advantage of better loan terms. Mortgage rates fluctuate over time, and by transferring your home loan to another lender, you can get a lower rate of interest, enjoy a longer tenure, and even avail of additional top-ups. This essentially means lower EMIs, which gives you greater financial freedom and helps you save money in the long run. Apart from the obvious financial benefits, a home loan balance transfer also gives you the opportunity to change your lender. This could be due to poor customer service, hidden charges, or any other number of reasons. Whatever the case may be, switching to another lender could help improve the overall experience of your home loan journey. Extended Loan Tenure People choose to transfer their home loan to extend their loan tenure. By doing so, they can bring down their monthly EMIs significantly. This can be extremely helpful if you are going through a tough financial patch and need some breathing room. It can also be helpful if you want to free up some cash for other purposes, such as investing or going on a vacation. Option to Change the Type of Interest Rate A home loan transfer gives you the option of changing the type of interest rate. A balance transfer on a home loan means transferring your home loan from one lender to another. Many times we take a home loan at a floating interest rate, but after some time, the rates of interest start increasing. In order to avoid that, we can opt for home loan balance transfer offers which will help us fetch lower interest rates for the rest of the tenure. At present, banks are offering home loans at both fixed and floating interest rates, so one can choose any type of interest rate depending on his/her convenience and repayment ability. Top-up Home Loan A home loan balance transfer helps with the option of getting a top-up home loan. With a top-up home loan, you can borrow a certain amount over and above your current home loan. The interest rate on a top-up home loan is much lower than that on a personal loan or a credit card. Also, the repayment tenure for a top-up home loan is usually longer. Thus, it helps you save on interest payments and also allows you to repay the loan over a longer period of time, which is convenient for you. Moreover, with a balance transfer, you can also negotiate with your current lender for a better deal on your home loan interest rate. This helps you save even more on interest payments. Therefore, if you are looking for ways to save on your home loan repayments, then a balance transfer is the way to go. [B-02] Parting Words The reasons for a home loan balance transfer may vary from person to person, but the goal is always the same: to get a lower interest rate and save money. If you’re thinking of transferring your home loan in 2022, be sure to do your research first and use a home loan calculator to compare interest rates between lenders. With careful planning, you can ensure your home loan balance transfer eligibility and save money in the long run. We hope that now you are all clear about the benefits of a home loan balance transfer. If you want more information, you can read similar articles on the Piramal Finance website.
08-11-2023
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Personal Loan

How to Use a Short-Term Loan during a Financial Emergency?

The need for money might arise at any time and any place because of factors beyond your control. For instance, losing a job, having money for an unexpected medical emergency, etc. And these are the circumstances that make you feel trapped, and that might make you panic. Utilising your emergency fund should always be your first choice when you are short on cash. To get through any financial emergency, you should take out a short-term loan if you are always strapped for cash and have used up your savings. Numerous quick personal loans are available and are designed for emergencies. [B-01] What Is a Short-Term Loan? A short-term loan may be used to satisfy a transient financial need from the borrower or their business. Certain that it is a kind of credit, it requires that the principal and interest be repaid by a given due date, which is often one year after the loan was granted. Small businesses or start-ups that have not yet been approved for a bank credit line are excellent candidates for short-term loans. The loan also includes smaller loans ranging in size from Rs 8000 to Rs 800,000. For individuals and organisations experiencing an immediate, unforeseen cash flow issue, short-term loans are acceptable. Below is a list of the several types of short-term loans available: Short Term Loans Business Cash Advances This short-term loan functions like a cash advance, even though it is a loan. Lenders provide loans in the amounts requested by borrowers. The borrower makes loan instalments by granting the lender access to the borrower’s credit facility. Till the loan is repaid, the lender retains a predetermined part of the revenues from each purchase made by a borrowing client. Access to Credit Using a credit line is comparable to using a company credit card. The line of credit has a predetermined credit limit and may be drawn upon by the company as required. It pays back the sum that was borrowed in instalments every month. Quick Loans Payday loans are short-term, emergency loans that are quite simple to get. High street lenders also provide them. The disadvantage is that when the borrower’s paycheck comes around, the whole loan, plus interest, should be paid in full. Instalment Loans Online When everything is done online, including approval requests, getting a short-term loan is straightforward. Shortly after the loan is granted, the funds are sent to the borrower’s bank account. Finance for Invoices This kind of borrowing uses accounts receivable or invoices that clients have not yet paid. The lender loans the money and charges interest based on how many weeks the payments are past due. Lenders will stop paying an invoice after it has been paid and deduct the interest from the loan before repaying the borrower the money owing to the business. Use of Short-Term Loan during a Financial Emergency No Physical Contact Is Necessary You may apply for a short-term personal loan by phone using a mobile app or online using a web browser on a computer. There is no need for you to leave your home. No branch needs to be visited. No originals or copies of any papers are required to be submitted. You only need to take a picture, scan a document, and send it by email or an app. All of this while relaxing at home. No Security Is Needed These loans are unsecured and don’t need any collateral. As a result, borrowers with nothing to commit as security are also eligible for these loans. Smaller Amounts, Smaller Payments Even though this is a one-of-a-kind occasion, you must also consider what it means for the future. The best alternative for sudden financial needs is a short-term personal loan, which allows for small, as-needed borrowing amounts. This suggests that the total payback amount for the little loan will result in a low monthly instalment. A Lower Rate of Interest than Credit Cards Most individuals use their credit cards to transfer money when they need fast cash. Even in these difficult circumstances, credit card cash loans are still not recommended due to their exorbitant interest rates. In contrast to credit card cash, which carries interest rates over 24%, quick loans with instalment payments have far lower interest rates. Although the financial crisis won’t last long, its interest rate burden will. So, credit card cash should never be preferred over small personal loans. Quick Disbursal The vast majority of these payday loans payout right away. You may finish the application process in a few hours, and the loan money will be in your bank account. You could, in certain cases, get the loan money in your account. The only method to deal with any financial emergency is to get money. There isn’t a decent choice since practically all other financing methods would take days or weeks to be approved, and banks already have a small staff. Loans Offered to Those with No Credit History Many lenders are currently providing loans to borrowers without a CIBIL Score due to the current difficult economic conditions. Can You Handle Any Expenses with a Short-Term Loan? Yes, you are allowed to take a short-term loan to pay for whatever costs you wish. In reality, practically every situation may be addressed with a short-term loan, including the following: Fixing your home’s leaking roof, broken appliances, etc. To get a new car loan when your old one breaks down. Accidental repairs, mechanical procedures, etc., for your present car. Prescription drugs, dental expenses, etc. Goods for the home, including groceries To pay for someone else’s or your educational expenses, such as tuition and materials. [B-02] Conclusion Short-term loans may be helpful in emergencies and when you may need a little more cash for a purchase you otherwise couldn’t afford. If you’re careful and make your payments on time, you may use a short-term loan to travel where you need to go, from an urgent situation to an enjoyable vacation. For more blogs on the use of short-term loans during a financial emergency, check out Piramal Finance and explore their products and services.
08-11-2023
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Successful Commodity Trading Strategies to Follow in 2022

Commodity trading is the buying and selling of real-world goods like gold, silver, steel, oil, etc., in digital and physical forms. The main goal of traders and investors in commodity markets is to make money from price changes and protect their spot positions. In recent years, commodities traded on an exchange have become a popular way to invest, along with stocks, bonds, mutual funds, exchange-traded funds, etc. But just like with any other investment, investing in commodities requires knowing the right commodity trading strategies and tricks. In addition, the commodities market is constantly changing, so there are just as many chances to make money as there are to lose money. Let’s look at seven successful commodity trading strategies that traders and investors can use to make money in this market segment: [B-01] 1. Find Your Commodity Market Niche Most well-known commodity traders only deal in one thing, like gold, cotton, wheat, or oil. Every one of these markets is special. You have to become an expert in one market and find a niche. You can check out a niche product and learn about its features. This is the first step in making a good plan for trading commodities. To find your market, you need to be more confident about the market you trade in. For example, if you know more about how silver prices move on the market, you might do better as a silver trader. But if your commodity trading strategy works best on the oil market, you should be an oil trader. 2. Study the Commodity Market Thoroughly Studying the market carefully is a good rule of thumb for any investment. Before putting money into the market, traders and investors must do research. This is even more important for trading commodities because, like stock markets, commodity markets are very volatile. Experts say you should buy when the markets slowly move from a normal trend to a bullish one. On the other hand, the best time to sell an item is when the market is going down. This is done by keeping short positions at resistance and using stop-loss orders. When traders and investors learn this skill, it makes trading commodities much more manageable and makes it more likely that they will make money. 3. Limit Yourself to One Commodity Market You need to narrow your focus if you want your product to give you consistent, long-term returns. To be a successful commodity trader, you must focus on one item or a specific part, such as an agricultural product. This is also a powerful but time-consuming way to trade commodities. Do in-depth research on a specific item if you want to trade. You should be able to find out how your product has sold in the past. If you trade in two very different commodities, like oil and silver, you could lose track of both. Still, you can sell other things in the same area if you want to sell more than one thing. For example, soy and wheat are both things that can be bought and sold. This means you can apply what you know about one field to another. 4. Conduct a Fundamental Analysis of the Commodity Market Before putting money into trading commodities, investors should do a lot of research on what they want to invest in. To do this, you need to know how the demand and supply of different goods work. If there isn’t much demand for a product and the supply increases, the interest rate may go down. On the other hand, the price of a good will go up if there isn’t enough of it to go around, but there is still a lot of demand for it. Beginners who don’t consider this factor and use fundamental analysis less often make mistakes. This is an essential thing to know about trading commodities. 5. Carry Out a Comprehensive Financial Analysis of the Commodity Market Before you start trading and investing in the commodity market, one of the most important steps is to do a thorough financial analysis of the commodities, their prices, and their performance over the past few years. This will help you find the commodities that have consistently done well. Traders and investors can figure this out by reading newsletters, journals, financial magazines, blogs, and articles about the best ways to trade on the commodity market. 6. Be Aware that the Commodity Markets are Subject to Seasonal Variation Traders and investors should never forget how strong seasonality is in commodity markets. Seasonality is essential in determining how much things will cost in the commodity market. In addition, it’s important to remember that commodities are real-world things whose availability and use can change with the seasons. For example, the amount of grain grown in a country depends on the monsoon and the weather in general. In the same way, things like heavy rain can affect the production of crops, which can then change the price of those crops. So, traders and investors need to keep up with the seasonality of commodity markets by using trading apps or talking to a professional advisor. 7. The Role of Breakout Trading in Commodity Markets In commodity trading, breakout trading is another essential thing to think about. It is a classic commodity trading strategy. A breakout happens when the price of an item moves below or above its range. In this case, the breakout trader will choose a long position if the price of the item goes above the higher value of the range and a short position if the price of the item goes below the lower value of the range. This commodity trading strategy is essential because commodity prices move toward the breakout, where the next trend emerges. So, this commodity trading strategy is necessary for trading commodities. [B-02] Conclusion Understanding the commodity market is one of the essential parts of being a successful trader. However, it is critical to remember that commodity trading strategies require time to function in the desired direction. Therefore, it is often necessary to seek the advice of a professional financial advisor who can help you with commodity trading tactics, commodity trading strategies, and general commodity market trading. Visit the Piramal website for more such articles.
08-11-2023
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All You Need to Know about House Rent allowance

Are you looking to invest in a house but need the funds right now? Or do you want to stay rent-free in your current home but need to know how it works? If so, you’re in the correct place. Furthermore, this article gives an understanding of how House Rent Allowance (HRA) is taxed in India and gives you tips on how to maximize tax benefits from HRA. So next time you’re wondering about house rent allowance, read on to find out all you need to know. [B-01] What is HRA or House Rent Allowance? If you’re living in a rented house and receiving social assistance, you may wonder what your house rent allowance (HRA) is. HRA is a welfare program that helps people receive social assistance to cover the cost of their rent. The amount of HRA you’re eligible for depends on your income and family size. You can apply for HRA online or at your local government office. If you’re applying for HRA online, submit all required information, including income tax forms and proof of address or permanent resident status. Keep your income and family size in mind when applying for HRA, as they can affect the total amount of HRA you’re eligible for. Remember that your HRA allowance is not tax-deductible, so it’s important to keep all your tax documents handy when applying. Eligibility Criteria to Claim a Tax Deduction on an HRA If you’re amid HRA negotiations and unsure of the eligibility criteria, don’t worry—we’ve got you covered. To be eligible to claim a tax deduction on your HRA, you must meet the following criteria: The home must be your primary residence, and you must live there full-time. The property cannot be used for commercial purposes, such as renting out rooms or flats. You can only claim a maximum of INR 1 lakh worth of deductions per year, including rent and other expenses related to living in the property. How is HRA Taxed in India? If you rent or own a property in India, you may be eligible for the HRA. This tax relief is currently taxed at 25%, making it one of the most beneficial tax breaks you can claim. To claim HRA, you must first file a claim form with the income tax department annually. After you’ve filed the claim form, you will receive a TDS certificate in return. This certificate confirms that your income is tax-exempt and that you are not liable to pay income tax on the HRA you have claimed. If you are claiming HRA on a joint return, both must fill out the claim form together. Make sure to keep all your tax documentation handy, as it will help you in case of any queries from the income tax department. Now that you know everything about HRA, it’s time to start saving. Tax Benefits of HRA If you rent your home, you may be eligible for a tax benefit called HRA. HRA can be useful if you’re self-employed or have a high income from your rental property. The amount of the deduction you can claim depends on your income and the rent you deduct. Essential Points to Remember in Claiming HRA Deduction It’s tax time again, so it’s time to calculate your HRA deduction. If you live in a qualifying property and your landlord offers you the HRA, you may be able to claim a deduction for the rent you pay for what is considered reasonable living costs. If you want to use the HRA this year, it’s essential to calculate your allowable expenses and submit your claim by December 31. There are other tax-deductible expenses you may be able to claim, too, like mortgage interest and charitable donations. How to Claim Deduction if You Do Not Receive HRA If you are an employee and do not receive an HRA, you can claim the deduction on your taxes. The HRA is calculated as 32% of your monthly rent payments, up to a maximum limit of INR 20,000/month. You must include the HRA amount on your tax return as income and deduct it from your taxable income accordingly. Make sure you claim the deduction on your tax return, as it can benefit you in many ways—financially, tax-wise, and even tax-free. Documents Required to Claim HRA Tax Exemption If you’re self-employed and rent accommodation from a landlord, you may be entitled to HRA. This allowance is tax-free and helps reduce your tax burden. To claim the allowance, you first need to be a tenant in a property owned or leased by someone else. You must provide your landlord with certain documentation, such as your payslip and bank statement for the last three months. The total rental income you receive each month is added to and deducted from your salary before tax is calculated. If the amount withheld exceeds your taxable income, the excess will be refunded in April of the following year. Remember that the HRA is not tax-deductible, so keeping accurate records of your income and expenses is important. Conclusion In today’s world, it is becoming increasingly difficult to afford a home of your own. With rent prices soaring and the job market still needing to provide the stability many were hoping for, it can be hard to justify spending a large chunk of your income on rent. That’s where the HRA comes in. This allowance allows you to claim a tax deduction on your rent, making it much easier to afford a home of your own. If you are confused about how HRA can be helpful for you or how you should file it, you must reach out to an institution like Piramal Finance. Their experts can help you understand the entire procedure in no time. Frequently Asked Questions There are many questions that HRA seekers have, so we’ve compiled a list of the most frequently asked questions (FAQs) about the allowance. How Much HRA Can I Claim? Claiming HRA is a great way to reduce your taxable income and get tax benefits. You can claim a maximum of INR 2,000/month. Is HRA Calculated Monthly or Yearly? In most cases, the HRA is calculated monthly. This means that the allowance will be deducted from your rent every month. If you are the landlord, the budget will be added to your rent every month based on the rental value of your property and not on its market value. [B-02] Can I Claim an HRA Tax Exemption When Paying Rent to a Family Member? Yes, you can claim an HRA tax exemption when paying rent to a family member. The amount of rent you can deduct as HRA is determined by your income and the amount of rent you pay. You need to file Form 6379 with your annual return and declaration form. If you claim more than INR 10,000 in rent from a family member during the year, you will also need to file an Income Tax Return (ITR).
08-11-2023
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Personal Loan

5 Reasons Why Gold Loans Are Better Than Personal Loans

At times, you will require access to finances and choose to apply for a loan. Mostly, people opt for personal loans since they do not require any collateral and are granted in a relatively short amount of time. However, another great option to get access to money quickly and easily is through gold loans. Banks promote personal loans as their main product, but it is important to know that their interest rates range from 12% to 28%. While they are easy to apply for and get approved, personal loans have their disadvantages. Gold loans, on the other hand, have multiple benefits such as lower interest rates, flexible repayment options and more. [B-01] What Are Gold Loans Lenders provide customers with loans that are secured by gold. Typically, a percentage of the gold’s value is provided as the loan sum. The maximum credit amount that may be obtained depends on the amount of gold being pledged and other factors. Borrowers must repay the gold loan amount in instalments within the set time frame to get their gold items back from the bank or financial institution. The repayment can be made monthly or according to other predetermined repayment schedules, depending on the terms of the gold loan. What Are Personal Loans A personal loan is an unsecured loan, and this means that the borrower does not have to pledge any of their assets as security. Personal loans allow people to borrow money for multiple purposes. For example, you can use a personal loan to pay for wedding expenses, medical emergencies or house upgrades. Banks and other financial institutions provide personal loans, and the money you borrow from the lender must be repaid in EMIs within a fixed period and with interest. Some banks may even have additional charges or fees to apply for personal loans. 5 Reasons Gold Loans Are Better Than Personal Loans When comparing gold loans and personal loans, there are extra benefits that gold loans offer. These are 5 advantages of applying for gold loans: 1. Easier Eligibility Requirements For personal loans, borrowers are not required to needed to provide assets as security. However, there are many requirements that borrowers have to meet to be eligible to apply. For example, they must be of a certain age, earn a certain amount of money and have a specific CIBIL score to be considered eligible to apply for a personal loan. For gold loans, many of these requirements are not required and the gold loan is granted based on the gold being given as security. 2. Lower Processing Fees For personal loans, lenders are required to carefully review the applicant’s income-related documents. As a result, they charge a small processing fee for personal loans. These personal loan processing fees can be from 0.5% to 1% of the loan amount. For gold loans, gold holdings are used as security. Therefore, people applying for gold loans do not need to produce papers related to their income. Because of this, processing fees are not included in this calculation. 3. Less Time Required For Approval When a borrower applies for a personal loan through a bank or an NBFC, the lender has to verify the borrower’s documents and assess their ability to repay the loan by checking their CIBIL score and other details since no security is provided. This process takes time and may cause the loan approval and disbursement process to be delayed. By contrast, the gold loan borrowing process is straightforward. The borrower pledges their gold assets as security and the gold is inspected. If approved, then the gold loan is granted to the borrower within one or two days. 4. Flexible Repayment Options Gold loans provide more flexible options for repayment than personal loans. This flexibility in repayments is because gold loans are secured loans. Gold loan borrowers may choose from a variety of repayment alternatives. Borrowers may repay gold loans in EMIs. Alternatively, they may also pay the interest up front and repay the principal throughout their loan term, or pay the principal and interest in one single sum at the end of the term. Lenders provide multiple options to repay gold loans depending on your financial situation. 5. Lower Interest Rate Gold loans offer lower interest rates compared to the interest rates of personal loans. A personal loan has interest rates of 16% to 22%, while the interest rates for gold loans are between 11 and 13 per cent. With a gold loan, a borrower will end up paying less than with a personal loan. With lower interest rates for gold loans, borrowers can save more of their money while also being able to get access to much-needed funds. [B-02] Conclusion There are many similarities between gold loans and personal loans. Both types of loans allow people to borrow sums of money for various purposes. Compared to a gold loan, a personal loan allows larger borrowing amounts and longer terms. However, a gold loan offers better interest rates, fewer additional fees and minimum eligibility requirements. For many people in India, gold remains one of the most popular investment options. Additionally, the relatively consistent gold prices provide investors with many opportunities. When there is a situation that places people in financial need, taking a gold loan helps people get access to funds while giving them the chance to save more of their money. Borrowing money against gold assets is a wiser investment than borrowing money personally. For more articles on the advantages of applying for gold loans, visit Piramal Finance and receive more financial information and guidance!
08-11-2023
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Tax Savings

Important Tips to Save Your 30% Tax Slab in 2022-23

Paying a 30 per cent tax slab on your total salary might seem overwhelming to many. But there are certain provisions maintained by the Central Government as per the Income Tax Act of 1961 that can help ease this financial burden. Here are a few things that can get you exemptions and waivers on your new tax slab: [B-01] Home Loan A home loan can help you achieve the dream of owning your own home. But did you know it will also help you cut down your tax slab? You can get tax deductions up to INR 150000 on the amount that you spend on the repayment of your principal borrowed amount, under Section 80C. In addition, you are also entitled to a tax exemption up to INR 200000 on the interest section of your home loan, under Section 24(b). This section will also get you tax benefits on home construction, provided the construction is completed within five years. Also, if you are planning to rent out your newly acquired property, the entire interest that you pay on your home loan will be tax exempted. First-time Homeowners are entitled to an additional tax reduction under Section 80EEA. They can claim a waiver of up to INR 150000 if the stamp duty value of their property is under INR 4500000. Health Insurance Policy Purchasing a health insurance policy has become inevitable in today’s world with all the rising medical costs and deteriorating quality of health. Not only does a health insurance policy relieve your financial strain, but it can also get you some exemptions on your income tax slab. You can claim tax deductions on the amount that you spend towards paying the premium of your health insurance under Section 80D. The amount exempted varies depending on your age. Also, these rates keep getting amended over time. Apart from this, you can also get an exemption of up to INR 5,000 on the amount that you spend on health check-ups (under Section 80D). Investments You can accumulate your wealth by investing money in government-mandated schemes and the capital market. Apart from the high returns, you also get to enjoy certain tax-saving benefits. Here is how you can reduce your tax slab by investing in various tax-saving instruments (under Section 80C): Equity Linked Savings Scheme (ELSS) is a great investment tool for those who can handle the risk factor. The lock-in period here is three years, and you can get a tax waiver up to a maximum of INR 150,000. You don’t have to pay any tax on the profits realized if your total capital gains are well within the limit of INR 100,000. 5-year fixed deposits can get you some tax exemption benefits in a risk-free way. You can claim tax waivers up to INR 150,000 (under Section 80C) if you invest in government-mandated schemes. Some such schemes include Senior Citizen Savings Scheme (SCSS), the National Pension Scheme (NPS), the Sukanya Samriddhi Yojana (SSY), and the Public Provident Fund (PPF) Life Insurance Plans Apart from health insurance policies, life insurance policies can also help you enjoy tax waivers of up to INR 150000 on the premiums (under Section 80C) that you pay. However, the annual premium that you pay should be less than 10 percent of your total sum assured if you have taken out the policy after the first day of April 2012. For policies availed before this period, the total premium should be less than 20 percent of the total sum assured. You can also get tax exemptions on the amount that gets disbursed upon the maturity of the life insurance policy or the death of the insured (under Section 10(10D)). The rules are as follows: Tax waivers up to INR 150000 can be claimed on the purchase or renewal of a policy as well as annuity payments made from a yearly salary (under Section 80CCC). You can claim tax waivers up to INR 150000 (under Section 80CCD(1)) on certain pension funds that come under Section 23AAB. If you have invested in ULIPs (Unit Linked Insurance Plans) you can enjoy these tax waivers if you lock in your investments for five years. You can’t withdraw any money from this scheme before this period. Living on Rented Premises You can enjoy tax exemptions on your HRA (House Rent Allowance) under Section 10(13A). The condition, however, is that there should be an HRA component in your salary breakdown. Three things are considered when it comes to calculating the total tax exemption on the rent that you have paid. First is the annual HRA that you have received. Second is 50 per cent of your yearly salary in case you are residing in any of the metro cities (40 per cent for non-metro city residents). And the third component is your total annual rent after deducting 10 percent of your basic salary. If there is no HRA component in your salary break-up or monthly income, you can still claim tax exemptions on your annual rental expenses (under Section 80GG). The components that are considered while calculating these deductions include your rent payment (up to INR 5,000 per month), 25 percent of your gross total income, and the total rent that you have paid after deducting 10 percent of your basic salary. Charity Donations You can claim tax waivers up to INR 2,000 for the cash donations that you make to specific organizations (under Section 80G). Complete tax exemptions can be enjoyed if you make wire or bank transfers. Political Party Donations You can claim tax waivers for the entire amount that you donate to your preferred political party (under Section 80GGC). However, the political party or organization should be registered under Section 29A of the Representation of the People Act of 1951. No tax benefits are available for cash deposits. [B-02] The Conclusion There are more such exemptions and waivers you can claim, to reduce your tax slab in 2022–2023. A consultation with a chartered professional accountant should help you get all the information you need. For more information, visit the Piramal website, which is your go-to destination for personal loans.
08-11-2023
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Personal Loan

Can I Apply for a Personal Loan If I Am Below 21?

Are you 21 years old and planning to take a personal loan in the near future? Check out all the details related to age for taking a personal loan here. ‍Personal loans are the best option if you need short-term financial help. It could be buying a car, paying for your education, or even moving to a new town. Getting an instant personal loan has never been easier, as several lenders will lend you money based on your financial profile and needs. However, you must understand the personal loan eligibility criteria before applying for any personal loan. One of the most critical requirements for a loan is to meet the minimum age criteria. But before we get to it, let’s first understand a personal loan. [B-01] What Is a Personal Loan? A personal loan is a financial product that allows you to borrow money from a bank or other financial institution. It can be used for various purposes, such as purchasing a car, paying off debt, or starting a business. The loan is often arranged through a financial institution, such as a bank or credit union. The lender will usually require you to submit several documents to qualify for the loan. These documents may include your credit score, income and expenses, and employment history. The lender will also require you to provide documentation of the purpose of the loan. It may include information about the purchase or debt you’re trying to pay off. Once all the required documents have been submitted, the lender will review your application and decide whether or not to approve the loan. Personal Loan Eligibility Before discussing the age requirements, other questions about personal loan eligibility must be answered. The one question most commonly asked is related to the documents required to meet personal loan eligibility. Here are the documents you need to prove your personal loan eligibility: Proof of Identity – Aadhaar/Passport/Driving Licence/Voter ID Address Proof – Aadhaar/Passport/Driving Licence/Voter ID Bank Statement – Passbook updated for the last six months Proof of Income – Salary Slip What Is the Minimum Age for a Personal Loan? To comply with common personal loan eligibility rules, one must be 18 or above to apply. However, even if you meet this personal loan eligibility requirement, some lenders allow you to borrow money only after you are at least 21 years old. If you’re unsure about the age requirement of the lender you’re applying to, you can always ask them what the minimum age is. Like all other criteria, the age requirement can be found in the marketing material supplied with the loan application or on the website of the lender you’re working with. But if you’re looking to get a large loan – to buy a car, your average income and credit score will determine the amount you can get. Moreover, given the greater risks involved in giving large loans to young individuals who lack a regular income source, banks may impose additional terms and conditions, including security guarantees. Can You Get a Personal Loan Without Being 21? Yes, as already stated, one is eligible for a personal loan after the age of 18. Therefore, an individual who is 21 years old can avail of a personal loan without hassle. Regardless of age, lenders usually welcome people who want to take a loan. But all lenders have age limit criteria that applicants must meet to qualify for the process. This age, in most cases, is 18. However, much depends on the kind of loan you want. For example, if you want a small loan to pay for your education, you can get a loan without being 21 years old. However, for a large loan to buy a car, house, or anything else that involves a sizable amount, you’ll have to be 21 years old. Although you may be technically eligible for such loans as you meet the personal loan eligibility requirement, you may not get one due to the lack of a viable income or a recognised proof of one. Once you’re 21 and have something to show for a regular, dependable income, lenders will be more inclined to approve your loan application, including the bank where you have your salary account. Should You Get a Personal Loan if You’re Below 21? One of the common questions when it comes to a personal loan is whether you should get a loan if you are young or, more specifically, if you’re below the age of 21. It is a very important question, especially if you want a loan to help you pay off your debt. Per the country’s laws, you can get a personal loan only when you are 18 or above. You are technically eligible to get a personal loan at 21, given that you meet the personal loan eligibility requirement. But taking a personal loan at a young age has its advantages and, for lack of a better word, even disadvantages. The advantages include developing a strong credit history from an early age. When you’re nearing 30 years of age and planning to start a family, you may need financial assistance in the form of a loan. A good financial history, reflected by a strong credit score of over 800, will ensure that you get a loan at that time without hassle. However, there are potential risks involved too, but none that can’t be mitigated. If you’re looking to take a personal loan, you sure have a way to pay it off. You must pay the EMIs or equated monthly payments scheduled by your lender in consultation with you on time. If you manage to do that, you will not only avoid the risks associated with a loan but also build a flawless credit history which will add to your financial independence later in life. Repayment Schedule for Personal Loan Most lenders will give you a repayment schedule (or option to pay) when you take out a personal loan. The repayment schedule will show you the amount you will have to pay monthly and the interest you will have to pay. Usually, the minimum repayment period is one year, but it could differ from case to case. It is important to repay your loan as it shows that you are serious about paying it off. It is better to repay your loan as soon as possible rather than leave it in a debt pile. So, if you take out a loan and don’t pay the money back, it will stay in a pile of debt, and you’ll have to pay a higher interest rate. So, paying your loan off as soon as possible is important. It’s in your best interest – pun intended. [B-02] Final Remarks Taking a personal loan to start a business or paying off a debt is an attractive proposition for most young individuals. It opens new education and career development possibilities for every individual who meets the personal loan eligibility requirements. But, at the same time, it brings potential risks, which must be understood in advance. However, if you wish to minimise the risks and maximise the advantages of taking a personal loan at a young age, you must look for options with built-in flexibility. Piramal Finance is known for such options, designed from scratch to suit the needs of individuals like you.
08-11-2023
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GST

GST Calculator – Know How To Calculate Your GST & Its Benefits

Every business that operates in India has to sign up for GST. They must have a GST Identification Code, also called a GSTIN. Customers have to pay this tax on every good and service they buy or use. Due to this, it is vital to know how to calculate GST correctly. You can use the GST calculator to figure out how much it will cost. GST, which is short for the Goods and Services Tax, is a tax that the Government of India has put in place on a national level. Online websites have several GST calculators that can be used to figure out how much GST will cost. [B-01] What is GST? The Goods and Services Tax (GST) is an indirect tax that is put on the sale of goods and services in India. It is a full, multi-step, destination-based tax that is charged on every value-added step. On July 1, 2017, GST took the place of most indirect taxes in the country. Under GST, there are five different tax rates for goods and services: 0%, 5%, 12%, 18%, and 28%. The government charges GST to sellers, manufacturers, and buyers of goods and services. GST is based on the idea of Value-Added Tax (VAT), which means that it is applied at each step of the supply chain. The GST amount is charged by the last dealer or supplier, and the consumer is expected to pay that amount. Some things, like gasoline, alcoholic drinks, and electricity, are not taxed under GST, though. According to the old tax system, each state government has its own tax on these products. Different types of GST GST can be put into four groups: Central Goods and Services Tax (CGST) State Goods and Services Tax (SGST) Union Territory Goods and Services Tax (UTGST) Integrated Goods and Services Tax (IGST) IGST is charged on interstate sales when the place of sale is in a different state than where the seller is located. Intrastate sales are taxed at the same rate as CGST and SGST, which is about half of the GST rate for IGST. This is because the place of sale is in the same state as the supplier. What is a GST Calculator? The GST calculator is a handy online calculator that you can use to figure out how much GST you have to pay for a month or quarter. This calculator can be used by buyers, manufacturers, and wholesalers, among others. How to use the GST Calculator? You can easily figure out your GST with the help of a professional GST calculator. Even taxpayers who want to use the differential GST rate to figure out GST can use the tool. Here are the steps to take when using a GST calculation tool to figure out GST: Step 1: Choose “GST Inclusive” or “GST Exclusive” based on what you need. Step 2: Type in the amount. Step 3: Choose the GST rate from the list of options in the drop-down menu. Step 4: Click “Calculate”. The result will show you the total GST amount as well as the amount before and after GST. Overall, the GST calculation process shows how easy it has become to figure out tax bills since the regime in question was put in place. It’s also clear that people now pay a lot less tax on the goods and services that manufacturers sell. The subsumption of the different indirect taxes, which made it hard for everyone to figure out how much tax they owed in total, is another example. Benefits of using a GST Calculator Here are some of the most important reasons why you should use a GST calculator: It lets users figure out the net or gross price of a product based on GST rates. You will be able to tell the difference between SGST, CGST, and IGST and accurately calculate each tax. It saves time because you get results right away. The GST calculator makes it easier to avoid calculation mistakes. It is easy to use and helps you figure out GST without much trouble. Filing GST Returns All businesses that have a registered GSTIN must file GST returns monthly, quarterly, or annually. Different businesses have different types of tax returns they need to file. Businesses that are required to file a GST return must detail their purchases, sales, taxes paid, and input tax credits (ITCs). It is mandatory to file the return with the tax authorities. And, the same data is used by the authorities when determining a company’s tax due. In this case, it’s important to know that to file GST returns, a business needs to have sales and purchase invoices that meet GST requirements. Depending on the kind of registration, a business must submit a variety of returns either monthly or quarterly. For example, a regular taxpayer has to file a form called GSTR-1 every month with information about what goods or services were sent out of the country. On the other hand, a business that is registered under the composition scheme must file a GSTR-4 return every three months. Advantages of GST Here are some of the advantages of adding GST on products: It helps keep a standard around the world. GST also helps ensure that the manufacturer and consumer are on the same page. The main goal of putting GST in place is to stop commercial goods from being taxed twice. It encourages makers and sellers to compete to make and sell high-quality goods, which helps the country’s GDP. After GST goes into effect, inflation, which is the most important problem in the market, is likely to go down. [B-02] Conclusion The Goods and Services Tax (GST) applies to all transactions that take place within the country. A GST calculator streamlines the process of estimating payable taxes. You only have to enter the amount and select relevant options to find the amount you have to pay. You can check out more blogs related to GST on the Piramal Finance blog. They also offer different products and services to cater to your financial needs.
08-11-2023
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