More articles for you

Your one stop place for everything related to finance and lending

Personal Loan

What are the hidden charges of a loan?

While taking a loan, most people worry about the charges they might have to pay once the loan is approved. But the monthly EMIs people need to pay for a loan sometimes include more than the regular principal and interest charged. Instead, if you see the invoice generated every month, you will see several underlying charges. Being unaware of these can put you in a tough spot because, most months, you will pay much more than necessary. Therefore, before you take out any loan, you should know about the possible charges you may have to pay in the disguise of available charges. This will further help you to avoid unnecessary payments and scams. In this article, we will walk you through the hidden costs of a loan to ensure you are properly aware of what needs to be done when you are charged with these deductions and how to avoid them. [B-01] Hidden charges you should know for a loan Although the exact hidden charges of a loan will vary from one type to another, we have discussed some of the most common ones that are similar to almost all credit types. This discussion will help you to understand how you are illegally getting charged for something you are not entitled to know. Processing and GST fee You should be aware that the first and foremost hidden charge is the GST and processing fees. Usually, loans are subjected to GST, provided it is taken for business purposes, or the person borrowing the credit has income proof through businesses. However, GST is not applicable for salaried people because the loan itself will help them avail of tax exemption according to Section 80C. Also, there should be no processing fee from the creditor’s side. Therefore, you should ask for the total breakdown of the monthly charges you need to pay. This will help you understand whether the creditor is charging any processing and GST fees. Foreclosure charges People often like to foreclose their loans when they cannot repay the loan EMIs anymore. Foreclosure is a kind of loan settlement when you can provide proof that you can pay half the total debt and request the concerned creditor to foreclose the loan. Another way you can foreclose the loan is by giving evidence of disability and inability to pay due to the loss of an income source unexpectedly without prior notice. Foreclosure charges are often applied on loans as compensation for the loss the creditor will suffer when the loan is settled much before the total repayment tenure. One needs to be sure of the foreclosure of the loan and proceed further after having a detailed discussion with the creditor about any hidden charges. You will meet some creditors who don’t charge anything on the foreclosure of the loan. Annual interest One of the essential things people usually need to learn about loans is that some loan types have fixed annual interest (home loans) while others can have flexible rates (personal loans). For the latter type, the interest charged will reduce each year based on the total debt outstanding and the payment term. If the payment term is more, but you have brought down the outstanding debt to half by paying more as EMI every month, you should be charged less. However, sometimes, you will find the creditors charging you the same even when the interest rate needs to be reduced according to the Flexi pay terms. As a result, you will continue to pay the interest for the rest of the repayment terms, even if you are not meant to. So, you should be aware of this hidden charge that will help you avoid making the payments unnecessary. Late payment interest charges Another hidden charge you might get charged is the late payment interest rate. Although it is the right of every creditor to charge you additionally for late payment of the interest or the monthly dues, there is a specific deadline for doing so. It means that most creditors offer a grace period of 10 days after the last due date for you to make the payment. If you pay the monthly installment within ten days of the grace period, you shouldn’t get charged for late payment. These ten days are a different timeline, allowing the borrower to make the payment without hassle. You will get charged with the late payment interest rate only when you pay the amount after the ten-day of grace period from the last due date. If the creditor continues to charge for the late payment interest rate within the grace period, it will be set illegally. Prepayment penalties Even if the creditor charges you for foreclosure, the action can be justifiable because loan settlement means having it closed much before the payment term and without you paying the full. But that will be done illegally when you get charged for prepaying the loan. Prepayment of the loan means you are paying the entire principal due much before the term’s end date. When you prepay the loan, you pay the principal amount and the interest charged to date. Suppose the creditor chooses to deduct any further charge for prepayment. In that case, that will be done illegally because you won’t be entitled to pay extra for paying the loan amount in complete earlier before the concerned payment term. Ways to avoid the hidden charges of a loan Since you may get uncharged illegally for the hidden charges, you should know about specific ways to avoid that. For instance, you should ask your creditor about any costs and processing fees that weren’t mentioned in the initial contract. Another thing you need to understand is that the loan amount you prepay or foreclose shouldn’t be charged with an extra penalty, regardless of anything else. [B-02] Conclusion Taking out a loan is the right of every person. But it would help if you learned more about the hidden charges of loans that will help reduce the amount you are being charged on taking any action. Besides, you can also set a lawsuit against the creditor if they charged you for something you aren’t entitled to. If you want to know further, you can connect with the experts at Piramal Finance.
08-11-2023
Read More
How To?

How to Secure Your ATM – Tips and Measures

The number of ATMs has skyrocketed in recent years. These ATM machines may be found in various places, including but not limited to the student center, banks, shopping centers, supermarkets, etc. The most alarming effect of their appearance is the increased risk of robbery at automated teller machines. The ATM security needs to be tightened. Anyone looking to steal from you knows that after taking money from an ATM, the customer will exit the machine with the currency. Victims of ATM robberies sometimes have their cash, credit cards, and valuables seized. According to the Bank Administration Institute, the hours between 7 p.m. and midnight are the most dangerous for ATM theft. [B-01] ATM Security Tips Banking institutions and ATM providers have installed new contactless machines since the outbreak. In an attempt to protect our clients from any infections, we perform these procedures. Card skimmers and hidden cameras are still widely used, so it’s in your best interest to be cautious while withdrawing money from an ATM. Follow these guidelines to ensure a smooth and safe experience with your ATM security. Be cautious. Keeping a watchful eye out is a need that cannot be overstated while utilizing an automated teller machine. Keep an eye out for anyone acting suspiciously near the ATM. Make sure no one is following you or snooping on you. Use an ATM that is monitored by ATM security cameras or has a person posted outside. Don’t count your cash until you’re at the ATM or some other safe place. It’s not a good idea to deal with money in plain sight. Keep your PIN safe and secure. Carefully guarding your personal identification number (PIN) is the most crucial ATM security measure while using an ATM to access your account. Remember to shield the ATM keypad with your palm whenever you input your PIN. Share your personal identification number (PIN) only with those you know you can trust. No legitimate financial institution will ever ask for your identification number. Instead of writing it down, remember it. Decide on a good spot. You should only use an ATM security if you care about your safety. Use only ATMs in well-lit, public areas or on heavily used streets. Refrain from withdrawing money from an ATM in an unfamiliar neighborhood or after midnight. Even if you want to use the ATM late at night, you should still ensure it is not in a poorly lit location. Do not use the ATM if you feel unsafe in the neighborhood or observe suspicious people hanging around. You shouldn’t ask random people for help. Getting help from others is a good idea if you get stuck using an ATM. Never give away your PIN or ask someone else to make a transaction for you, even in an emergency. You should refrain from counting your money in public. Rather than asking for help, it’s preferable to find another machine and not use the one you’re now using. Submit a request for financial assistance. Contact your financial institution if you have any issues using their ATM. In rare cases, despite having funds deducted from your account, you may still need those funds. Alternatively, you could have problems accessing your account altogether. Alternatively, the system may eject your card. If that happens, contact your bank immediately by calling their toll-free number. This toll-free number is available via the internet and the bank’s website. They promise to come up with a remedy. You may also use this feature if your card has been lost or stolen. Look at the cash machine like you mean it. Skimmers are small electronic gadgets that may record your keystrokes. In certain instances, they have fallen prey to ATM fraud manipulations. Ensure the keypad and card slot look right before inputting your PIN. Occasionally, these devices may even prevent you from spending money. If you are in this predicament, you may seek assistance by visiting a branch or calling the toll-free number. Don’t just throw away your ATM receipts; the information they contain might be used against you. ATM skimmers: know them Criminal organizations have put gadgets on real bank ATMs to steal your PIN and bank card information. A crew installs hardware on the ATM’s exterior, sends data wirelessly on weekends and at night, and then waits in a car nearby to retrieve it. If you find such an attachment, do not use the ATM and immediately call the bank using the 800 number or phone on the front of the ATM. Amounts from your ATM card and PIN are stolen using gear that seems like genuine ATM devices. A “skimmer” is a device attached to the front of a standard ATM card slot that steals your card information and transmits it to the criminals waiting in a nearby vehicle. A wireless camera that looks like a pamphlet holder could also watch you enter your ATM PIN. Criminals produce duplicate cards and use the PINs to steal thousands of rupees from many accounts using the bank’s automated teller machine. Don’t let yourself be sucked into a skimming scam at an ATM. Scammers might use high-speed card scanning technology to steal your information and access your account. The information from your card is stored on a tiny device that thieves can easily access at a later time. There is a risk of skimmer devices being installed on ATMs, and you are unaware of it. A tiny accessory that slides over a standard card reader slot can read the magnetic stripe on your card. Some skimmers are small enough to fit in the pocket of a dishonest businessperson. [B-02] Conclusion Due to the ubiquitous availability of ATMs, getting your hands on some cash is now a breeze. As a result, there are now more opportunities for users to be harmed. Although these gadgets are immensely useful, you must exercise caution when doing financial transactions with them. It’s as simple as using an ATM to make a purchase using NetBanking, but you still need to be careful. To know more regarding ATM security tips and skimmers, contact a reputed financial expert like Piramal Finance.
08-11-2023
Read More
Tips & Advice

5 Tips to Attain Financial Peace in Your Life

For most people, achieving financial peace is a top priority. Having enough cash and savings to support a good lifestyle is always a good thing. Creating a nest egg that would allow you to follow any career or retire at any time. It also entails releasing yourself from the strain of having to earn a specific amount of money annually. Unfortunately, there are so many people who lack financial freedom. The ongoing burden of increasing debt brought on by excessive spending keeps people from reaching their goals even when there are no intermittent financial issues. Nearly everyone runs into trouble, but with these 5 pieces of financial advice, you can learn to plan finances better. [B-01] Tips to Plan Finance Maintaining a Strict Budget Maintaining a strict budget is one of the most essential pieces of financial advice. In the modern world, getting new items can be simple at any moment. However, if you are not fiscally responsible, this convenience may quickly become a burden. Stressing yourself and your finances may result in spending more than you should. To stop the financial leak, you must create a budget and follow it with strict discipline. You must direct your money into investments rather than purchases. So, identify your requirements and write down your financial goals. Keep in mind to stick to your spending plan. Consider carefully any purchase for a product that is not necessary before clicking the buy button. Use the Debt Snowball Approach to Eliminate Consumer Debt As the first step to personal financial planning, decide to begin paying off your bills right away. Use either of the two debt repayment plans, the debt snowball or the debt avalanche, based on your finances. These debt repayment solutions can help you get rid of your debt. Debt Snowball Approach. Sort your obligations according to size, starting with the least. Start paying the bare minimum on all but the lowest debts. Pay the smallest loan the maximum amount you can. Once the obligation is paid in full, go on to the next one, which is the smallest. The Debt Avalanche Method.The minimal payment on each loan is made using the debt avalanche strategy. Pay down the debt with the highest interest rate with additional funds. Until you have paid off all of your bills, pay off the largest debt first. Then go on to the next largest loan. Budget 6–9 Months’ Worth of Expenses Aside for Emergencies Keeping some money aside for future needs is vital for personal financial planning. Your lifestyle, monthly income, and spending will all have an impact on how much money you need for urgent needs. Though it can be a good idea to save up at least six to nine months’ worth of expenses in an emergency fund. This will be a wise move in the unstable economic climate of today. Create a separate debt, liquid fund, or savings account. This will hold the funds essential to pay for or offset future events. To achieve your objective, plan your finances by starting to save a tiny bit every week or month. Continue to modify the amount based on certain factors. This will include your monthly expenses, family needs, job security, budget, and other considerations. Put an End to Spending Money on What You Don’t Have. Keep a record of your spending to maintain financial responsibility. It is normal to feel overwhelmed by marketing efforts such as ads, promotions, and discounts. Spending today without considering the future, though, might be risky for your financial stability. Spending less than you make is a smart rule of thumb to follow. Therefore, regardless of how little money you have, allocate a small percentage of it to savings and investments. At all costs, avoid spending it on items that you do not need. Planning finance is an efficient approach to keeping your spending under control and preventing pointless purchases. When considering an impulsive purchase, weigh the cost of your ‘desire’ against the time it would take you to earn the money to make the purchase. At least 15% of your Salary Should Go into Retirement Plan. According to research and financial experts, putting 15% or less of your annual salary aside for retirement is a decent way to do personal financial planning. Your retirement fund may also be influenced by particular considerations. As follows: When do you anticipate retiring? When did you start saving? Your current savings amount. Your way of life in retirement. After answering the aforementioned inquiries, you can start saving at least 15% of your salary. You can continue to increase that amount as your income increases. If you want to live the retirement of your dreams, you might want to start saving now. This will ensure that you won’t have to worry about how to support yourself later in life. [B-02] Conclusion This list of five pieces of financial advice or tips will help you develop positive habits that will put you on the path to financial peace. Simply writing down a plan with specific amounts and due dates will increase your motivation to reach your objective. This approach also guards against the need to go over budget. Once you start to make actual progress and are released from the constant burden of accumulating debt, financial peace is within your grasp. To read more such useful and informative blogs, head to Piramal Finance. These blogs and articles will help you learn some key finance skills. These skills will assist you in planning your finances a bit better. If you have any queries or doubts, then you can get in touch with their experts for expert advice.
08-11-2023
Read More
Other

10 Types of Investments and How They Work

Investments have become part and parcel of our lives. You may be salaried or self-employed. The habit of saving has been instilled in us since childhood. You must remember how we saved our pocket money in piggy banks while waiting to buy our desired item. That was your first step towards an investment. [B-01] Types of Investments Investment is nothing but saving for the future. Let me give you a brief idea. 1. Stocks Stocks are one of the easiest types of investments. When you buy stocks of a company, you become an owner of the particular company, equivalent to your shares. How they work: When you invest in stocks, the company stands to gain too. It is a way to finance money for the growth of the company. When the stock prices go up, you can sell them at a profit. As the stock market is variable, it is advisable to invest in stocks when they are at a lower price. Keep on researching and investing in stocks that are sure to yield profitable returns. Go ahead and become the owner of your favorite and most trusted publicly traded company. No doubt there is a risk, as the stocks can also go down. In that case, refrain from selling at a loss. 2. Bonds By investing in bonds, you are lending money to any business or government entity. Organizations issue corporate bonds. The government issues municipal bonds. How they work: You must be wondering what you stand to gain by lending money. In return, the borrower pays you interest. When the bond matures according to the contract, you get your principal amount back. Even though the rate of interest is lower than stocks, it is still considered to be safer. 3. Mutual Fund A mutual fund has become an easier and more attractive investment option nowadays. MF can be invested in both ways, either through a SIP (Systematically Investment Plan) or Lumpsum. In a SIP, you need to pay a fixed or variable monthly amount towards the investment, while in a lump sum, you need to invest a fixed sum. How they work: A mutual fund is managed by the fund manager, who invests your money in different avenues of investment, like government bonds, debt, and the equity of a company. The money will grow according to the market and contain risk as well. The investment can fetch better returns in the long term. 4. Bank saving products Every bank account holder is entitled to certain services. Suppose you want to get stable returns and invest in FD or RD. In FD, or Fixed Deposit, you invest for a fixed amount of time, while in RD, or Recurring Deposit, you can choose the flexibility of depositing a fixed amount monthly. The interest is compounded quarterly. You can also opt for the Sukanya Samriddhi Yojana (SSY). Parents or guardians of a girl child (10 years old and below) can open an account in her name for 21 years. The investment can be made up to 15 years from the date of account opening, and it will mature after 21 years. How they work: Both of these deposits help you achieve your short-term goals. In the end, you get your principal back plus monthly interest payouts. Senior citizens get an additional 0.5% rate of interest. You can also apply for loans against your FD. In the SSY scheme, parents can save for their daughter’s education. 5. Cryptocurrency Cryptocurrency is a newer investment option. Everyone is aware of Bitcoin. Ethereum and Litecoin are also emerging. These cryptocurrencies are unregulated by the government. Buying and selling are done at the cryptocurrency exchanges. Some retailers allow you to make purchases using virtual coins. However, the RBI is supposed to launch its own digital rupee. 5 banks, namely IDFC, ICICI, HDFC, SBI, and Yes Bank, have been selected for the trial run of the central bank’s digital currency. How they work: If you are interested, you can make a huge profit. Keep in mind that market fluctuations do occur. 6. Gold We Indians, especially the female population, are in love with gold. We see it more as an asset than an investment. Keeping gold in the form of jewelry or coins is becoming risky. That’s where the gold bonds come in. Sovereign Gold Bonds, or SGB, How they work: SGBs are tax-free if you let them reach their maturity. If you sell them before they mature, they become taxable. You can also earn interest every year. You do not need to worry about the storage of physical gold. 7. Life Insurance What is the best way to invest in yourself? The insurance policyholder makes a contract with the insurance company. You pay a certain amount of money for a specified period. How they work: At the time of the holder’s death, the beneficiary receives the face value of the policy along with some bonus for the value of the time invested in the investment. 8. PPF PPF, or Public Provident Fund, is one of the most secure forms of investment. A person can invest in this government-funded scheme by opening an account at the post office or bank. The scheme is for 15 years (with a lock-in period of 5 years), but the same can be extended up to another 5 years. How they work: PPF also has a relatively high rate of interest in comparison to FD or RD, and it is a secure investment. It compounds annually. The best part of the investment is: the maturity and interest are tax-free. 9. Real Estate In this type of investment, you purchase residential or commercial properties and rent them out. Not only will the property be an asset, but you can also enjoy the monthly rent. Even without purchasing the property, you can buy units of Real Estate Investment Trusts (REITs). REITs themselves invest in commercial properties, and you can earn based on the rental income. How they work: The market value of the property is always rising. You can use the rent you receive to pay your EMI. 10. Retirement Plans As soon as you join a company, a certain sum of money is then deducted from your salary, and equal money is paid by the company too. This scheme is known as the EPF, or Employee Provident Fund. An individual can also apply for the NPS, or National Pension Scheme. In this scheme, the government in turn invests in debt and equity. How they work: EPF is a retirement benefit plan that the company imposes on you. At the time of your retirement, you receive a lump sum. Post-retirement, under the NPS, every subscriber is facilitated to a regular income by the Government. [B-02] The Bottom Line Whatever investment you make, according to the Income Tax Act of 1961, you are eligible for tax exemption. You have to declare your deposits under Section 80C. Most of the time, we don’t have enough balance to invest according to our desires. That is when you can take personal loans (https://www.piramalfinance.com/personal-loan) from Piramal Finance. Please feel free to check out the other products and services like Housing Loans and much more.
08-11-2023
Read More
Tips & Advice

Top and Best Performing SWP Mutual Funds In India

The SWP also known as the Systematic Withdrawal Plan is the opposite of a SIP. In SWP, people invest in a mutual fund scheme with low risk. Then, they start to take out a set amount of funds, depending on what they need. SWP is ideal for those seeking a steady way to earn money. In this article, you’ll learn about various SWP Mutual Funds in India. [B-01] Top SWP Mutual Funds in India ICICI Pru Equity Growth Plan The ICICI Prudential mutual fund is called the ICICI Pru Equity Growth Plan. It aims to increase the value of investments over time. The portfolio has stocks, bonds, and market funds in it. Franklin India Equity Growth Plan It is an assertive hybrid SWP mutual fund in India. It mostly invests in domestic equities and a small amount in mid-cap and small-cap stocks. The goal of this mutual fund plan is future capital growth. Morning Star has granted this fund a 4-star rating. Parag Parikh Flexi Cap Fund The Parag Parikh Flexi Cap Fund is a varied equity mutual fund scheme. It is among the best SWP mutual funds in India, with an open-ended investment period. This fund buys stocks from large, mid-sized, and small Indian, and foreign companies. The fund is very committed to the idea of compounding, so it only offers the growth option. Canara Robeco Bluechip Equity Fund Canara Robeco Bluechip Equity Fund is a large-cap equity scheme. Bluechip invests in blue chip companies that have a large market capitalization, a good track record, and the potential to grow. More than 80% of the fund’s value is put into large-cap companies. Nippon India Value Fund It is an open-ended stock fund that uses a strategy called “value investing.” The focus of value investing is to take advantage of investment opportunities in all industries and market sizes. The fund tries to identify companies that are undervalued and have a chance of giving better returns over time. Several factors, such as financial strength, stock price, cash flows, earnings potential, and firm prospects, are used to choose these stocks. Pros of SWP Mutual Fund Flexible Income People can specify the amount, frequency, and dates at which fund units are automatically paid back. They can also halt or increase their investment to meet their needs. Tax Efficiency You can reduce your taxable income by not claiming the principal amount invested. So, SWP is a tax-efficient plan for getting cash back. Also, there are no TDS deducted from the SWP amount. Regular Income An SWP can be used as a second source of income when you need it. If the rate of increase in value is greater, you can get a steady income without having to reduce the amount you put in at the beginning. Helps Meet Financial Goals SWP lets you make a custom cash flow that will help you reach your financial goals. The fund can help you out when the market goes up and down. Who can Invest in SWP Mutual Funds? People in the high tax bracket can use SWP to save on capital gains tax. Due to indexation benefits, there will also be less tax on gains from debt funds. You can also use SWP to get your funds back from SIP investments (Systematic Investment Plan). If you have been saving for retirement, the best SWP plans can help you get a steady flow of funds every month for a long time. SWPs can be useful for risk-averse investors. They can put their funds in mutual funds with low risks, like arbitrage funds, and only get the capital gains through SWP. Things to Consider Before Putting Money into SWP Mutual Funds Mutual Fund Type The SWP is how you choose when, how often, and how much to take out of a mutual fund. You will need to do enough research to use the SWP mutual funds in India because the returns will depend on it. Make sure to check if it fits your financial goals, your risk tolerance, the length of time you want to invest, etc. Market Conditions Changes in the market have a direct effect on investments in mutual funds. When an investor is getting close to a financial goal, they may want to look at how the market is doing. This is to ensure that the returns on the fund don’t decrease if the money isn’t taken out on time. Pension Requirements The SWP mutual funds in India allow you to build an adequate retirement corpus. You should put the money in an SWP mutual fund in India that fits your level of risk. If you plan well, SWP is a great way to add to your income after you retire. Your Monetary Needs By using an SWP, you can decide when to make withdrawals based on your financial needs. If you need funds at different times to reach your financial goals, you make sure you get the funds at the right time. Taxes Any funds you take out using the SWP will be taxed as a capital gain. For equity funds that have been held for less than a year, the STCG (short-term capital gains) tax would be 15%. Above Rs. 1 lakh, the LTCG (long-term value gains) tax rate is 10% for investments held for more than one year. [B-02] Final Thoughts In conclusion, you need to do research and analysis before you invest in any mutual fund. So, before you put funds into any best SWP plan, you should find out about some specific factors. But, choosing the greatest SWP mutual fund in India is the best way to invest for the person who wants to make a steady income from stock funds. The best part is that there is no TDS on gains and they are tax-efficient. For more blogs like this, you can visit the Piramal Finance website and read more finance-related blogs.
08-11-2023
Read More
How To?

EPF Form 10D – Eligibility, Documents Required, And How To Fill

Working with all your abilities is the best part of your life. There are many things to learn and things to understand about your skills and limitations. It is also when you will have to make the most of your savings out of your earnings. In the event you are considering knowing more about an employee’s provident fund, there are a few things you will need to know, especially when it comes to being on the brink of filling out the EPF 10D form. Stay hooked to this read – it will help you learn about this subject. [B-01] What is EPF 10D Form? You must be the one about to retire, and thus, you are looking into info about the 10D form. An employee registered under the Employees Provident Fund Organization will cater to the EPF 10D form. You need to know that under this scheme, you will be eligible to be able to claim your superannuation remuneration after you retire. That means while you are 58, you can claim your pension scheme. An employee can reduce the pension as they reach 50 years of age at a rate of 4% each year. That is when you will have to fill out the 10D form. Let us look at some more details about EPF. Benefits of EPF Before delving into details, you need to first understand the advantages of EPF: Tax saving scheme: When you cater to EPF, you get tax-exempt from the income tax. The amount gets deposited into your EPF account. Capital appreciation: The government of India has created a fixed capital for the EPF. Hence, the employees need to bear the responsibility of investing money. Financial emergency: The accumulated fund can be used for unforeseen events and occurrences. Eligibility for EPF Here is the eligibility criteria for EPF: You should be a salaried employee A widow or a widower can also fill out the form. A major or a guardian could be eligible. A nominee could be eligible for Employees Provident Fund 10D form. A dependent parent can be eligible for the pension scheme of EPF. Documents Required for EPF 10D Form A few specific documents that the government has strictly mentioned must be provided to cater to EPF 10D: A complete descriptive role of the pensioner, their full signature, and thumb impression. You will need to provide three passport-sized photographs to the EPF office. If a disabled individual wants to get through EPF 10D, there is a dire need to undergo a detailed medical check-up. You will then need to provide the details attached to the EPF form. You will need to strictly specify the wages you receive or your salary threshold. In the unlikely event of the authorised company shutting down, and no authorised or designated individual to forward your list, you will have to get it sanctioned by the bank manager. These are a few documents that you will need to provide before finally signing for the EPF 10D form. However, it can take as many as 30 days for the pension amount to get credited to the beneficiary account. You must submit your 30-day receipt to the organisation once you receive your pension. If the commissioner fails to deliver the pension within thirty days of your buffering time, you must hold that individual accountable for the delay. As per the regulation, there is a penalty that must be paid for the delay by the commissioner. How to Fill Out the EPF 10D Form? Below is the process to fill out the EPF 10D form: The applicant will need to provide the name and relationship of the account holder. If you are filling out the form for yourself, you need not specify the relationship. The applicant must also mention the type of pension one caters to, whether or not it is a superannuation, disablement, widow or children, or nominee. You will then have to provide details such as the name, gender, marital status, date of birth, and father’s or husband’s name. Then, you will need to fill in the accounts of a number of your organization. In that respect, it is important to mention whether or not it is a regional office. You will have to provide the name and address of the organisation that you are employed under last before your retirement. You will then have to provide the date of leaving the service in (dd/mm/yy) format. You will also have to mention the reason behind leaving the organisation. You will also have to mention this if the pension is being drawn. A few details about the bank’s name under which the EPF account is being processed. Once you are done, you will need to attach all your documents and the form. [B-02] Final Thoughts An EPF is a tax-saving investment scheme ideal for salaried employees. It is a low-risk investment that provides a stable source of income upon retirement and helps you with financial emergencies. To apply for an EPF account, you need to fill out the EPF 10D form and provide the necessary documents. Now that you have a clear idea about EPF 10D form, you can visit the Piramal Finance website and read related blogs and articles.
08-11-2023
Read More
Personal Loan

What are the common fees associated with loans?

Loans are the best way to raise funds and cover expenses. Personal loans are the best kind of loans. They are quick, convenient, and have fewer interest rates. However, personal loans don’t only concern the interest charged on the loan amount. The other charges are the processing fee for personal loans and specific grants. It is essential to check if the loan is affordable after considering the interest rates of personal loans, processing fees, and other charges. The customer should not only match the interest rates. The foreclosure fees and repayment criteria should also be checked and then considered. [B-01] Fees and personal loan charges that are needed for a personal loan Processing fees Most of the administration costs are known as “processing fees.” Banks generally bear these costs when the loan is being processed. The processing fee of personal loans varies depending on the bank. The amount is not too much and is mainly within the range of 0.5% to 2.50%. Deduction of the processing fees can either happen straight from the account, or the amount of the processing fee will be deducted from the loan amount at the time of its foreclosure fees or repayment. Cheque bounce fees These fees are generally taken when the cheque given by the borrower bounces. It is a kind of personal loan charge. Sometimes, the cheque deposited by the customer bounces. It can happen because of an out-of-limit payment or technical issues. The processing fee for personal loans, in this case, is nominal. It is also known as a “cheque dishonour charge.” These amounts are typically deducted at the time of loan disbursement. Depending on the lender, the payment may differ. Repeated cheque bounce or dishonour can lead to higher charges wanted by lenders. Verification fees Before disbursing the loan, the bank will send a third-party official or an agency to the customer’s house. It is sent to verify the capability of the customer to repay the loan. The agent will check the credibility of the customer. They will verify the relevant credentials of the customer applying for the loan. The agent will verify the credit score. They will also check if the customer has taken loans before and the repayment patterns. This is the processing fee for personal loans. The banks collect these fees as part of the verification process. It is known as the verification fee. Penalties for foreclosure fees on the loan A foreclosure fee generally means early repayment of the loan amount. The customer who borrows the loan repays it before the specified time of the loan payment. The financial institution may lose money if the customer pays before the due date. This loss happens because they are not getting the calculated amount of interest as they prepare everything about the loan according to the tenor. This is also included in the processing fee for personal loans. The loan was disbursed before the fixed term. The bank charges for this loss. The bank charges a penalty for this loss. The amount charged by the bank for the foreclosure fees of the loan is called the penalty for foreclosure fees. The penalty is generally nominal. Banks can charge between 2% and 4% as the penalty for the foreclosure fees on the loan. Delayed EMI payment The repayment of the loan taken by the customer can be done in several ways. A customer can repay the amount withdrawn through the EMI. It is known as the “equivalent monthly instalments.” Legally, the customer has to repay the bank in the given amount of time by the bank. The customer is responsible for the timely payment of the EMI, and it is paid without any complications. If the customer fails to pay the bank within the given time, the bank will charge a penalty. The penalty for delayed EMI payments is the most vital processing fee for personal loans. The customer taking a loan must know about this charge. This is why customers should carefully plan their finances before taking a loan. Also, calculating the monthly EMI payment is equally important so that the repayment is done on time without any foreclosure fees or late repayment of the loan. How much can a lender charge for a processing fee? There are no certain rules or regulations by any financial banks on the charges of the processing fee for personal loans. The lenders can charge however much they want, but the law requires all individual loan fees to be transparent and non-discriminatory. The charges taken by the lenders should be affordable for the customer as per the actual loan amount. Typically, the amount of these processing fees vary depending on the banks or financial institutions. The amount should be lawfully correct, whether it is verification charges or foreclosure fees. Other fees or loan charges that the customer might face Application fee Banks take the application fee mainly to cover the cost of processing a loan application. Staff times, making copies of the customer’s credit report, verification forms, etc. The application fee is mandatory even if the customer is not accepted for the loan. The customer must be sure of qualifying before applying for the loan. It is also compulsory in cases of foreclosure fees. Some lenders might not charge the application fee. Origination fee. An origination fee is called an underwriting fee. This type of fee generally comes with mortgages or student loans. This fee depends on the credit score of the customers. A good score will require the customer to pay a lower fee. A bad credit score will make the customer pay a high rate for the origination fee. [B-02] Conclusion Wrapping it up, a personal loan comes with many processing fees. These charges should be disclosed to the customer beforehand. The costs are generally nominal but are compulsory. If anyone wants to know more about personal loans and finances, Piramal Finance will help with that.
08-11-2023
Read More
Personal Loan

What Is Loan Amortization?

Asset depreciating is quite a common concept. If a person owns a certain vehicle, they would know that the value of it depreciates. As time passes, it loses its value. This asset was tangible; according to the concept of amortization, the value of intangible goods decreases with time. Under intangible assets, there can be several things like a website, a patent, or many more. To be exact, these are any asset that is not physically present. Amortization is also about loans. It helps borrowers to make monthly payments systematically. So, just like a tangible asset, there is an intangible asset that depreciates. These assets include investment, copyright, trademark, software, and Loan Amortization. [B-01] What is Meant by Loan Amortization? A loan that is amortized needs to pay within a given period. In this repayment structure, the borrowers must pay the same amount throughout the loan tenure. The first payment portion is directed towards the interest. The next portion is directed towards the remaining loan amount. So, the total borrowed amount is a major part of the repayment amount. And a lesser part is assigned for the interest. Loan Amortization fixes the monthly minimum payment. But such a loan does not preclude borrowers from making any additional payments. If a person makes any extra payment, that will go towards repaying the principal amount. This would help borrowers to save total interest during the loan’s life. What are the Different Types of Amortizing Loans? There are various loans under this system. It is designed so that instalment payments can be made. A fixed amount must be paid every month, which is directed towards interest and principal amounts. A few common types of loans are: Auto loan. Student loans. Loan for home equity. Personal loans. Fixed-rate mortgage. What is the Difference Between an Unamortized Loan and Amortized Loan? In loan amortization, the payment of principal is made throughout the overall time of the loan. It is profitable for the ones who are making the payment. The amount given per month gets divided into two parts. A larger part goes towards repaying the principal loan. And a lesser part goes towards interests. The person needs to pay both the interest and the principal. The monthly payments are a bit higher compared to an unamortized loan. In the case of an unamortized loan, only the interest is paid back in the tenure of the loan. The borrowers need to make a payment known as a balloon payment. It is to be made at the end of the loan period. It needs one to make a payment of a huge sum of money. It is why the monthly payments are less. But for many, it might take a lot of work to make a balloon payment. Hence, one must plan for the payment ahead of time. To cope with this, one can make added payments during the loan. That amount would get directed towards the principal. Here are a few examples of unamortized loans: Interest-only loan. Credit cards. Home equity lines for credit. Mortgage loan. Few loans allow negative amortization. The payment made monthly is lesser than the interest accrued at that time. How Does Loan Amortization Function? In loan amortization, the balance is broken into an equal payment schedule. It is done based on the interest rate, loan amount, and loan term. This system allows the person to know how much they are paying. They would know how much of the amount would go into interest and principal repayment. They would also know how small the amount remains after they make payment. A loan amortization table can help a person. One can know how much they would save by making extra payments. The loan payment can be reverse-engineered to know how much they can afford to finance. One can also calculate the total interest paid annually for tax. How Can Someone Amortize a Loan? The best way to amortize a loan is by using a loan calculator. It can also be calculated using template sheets available in MS Excel. There is also a formula to amortize loans manually. For this, the total loan amount would be needed. One needs to know the rate of interest. Also, the tenure and payment frequency need to be known. The formula is: a / {[(1 + r) n]-1} / [r (1+r) n] = p, The following stands for: a: the principal amount of the loan. r: The monthly rate of interest. (Annual rate / total payment made in the entire year) n: The no. of payments that needs to be made in total (total no. of payments made in the entire year x length of the loan market in years) What is Meant by an Amortization Table? This table lists all the payments that need to be made. This table lets one know how much of the given amount goes to the principal and how much is for interest. What is typically included in the table? Loan details. The frequency of payments. Total payment. Any extra payment. Principal requirement. Interest costs. Any outstanding balance. [B-02] Conclusion Loan amortization is a profitable system for borrowers. In this system, the monthly payment gets divided into two parts. One part does for interest. The other part goes for the principal amount. This lets a person avoid balloon payment, which can be quite difficult for some people. But in this system, the monthly instalment is a bit high. It is because both the principal and the interest are getting paid. Before going for any loan, it is advised to do proper market research. If someone is looking for a finance option, then “Piramal Finance” is a good personal loan/financing option for buyers.
08-11-2023
Read More
Tips & Advice

Tips to Lower Car Insurance Costs

For car owners, the most important thing they need is car insurance. Car insurance will protect you financially when you are driving. When buying car insurance online, you want the best deal possible. However, with the rising costs of automobiles, car insurance premiums have also increased. Not everyone can afford the high premiums provided by insurance providers. So, here are a few tips you can use to lower your car insurance costs. [B-01] 1. You can choose a higher deductible for your car insurance. The higher the deductible amount, the lower the car insurance premium. The deductible is the amount you pay out of pocket before you make an insurance claim. When you choose a policy with a higher deductible, your premium is lower, and vice versa. There are two types of deductibles for car insurance. One is a compulsory deductible imposed by the insurance provider. It will not affect the premium you pay on your car insurance policy. The second is a voluntary deductible you choose to pay if you make a claim. You can choose the voluntary deductible according to your requirements. It will have a clear impact on the premium that you pay. Ideally, the amount you select as a deductible should be less than the ‘no-claim bonus’ (NCB) given to you by the insurance provider in the next year. 2. You should avoid claiming small expenses. As a car insurance policyholder, you are entitled to NCB every year you do not make a claim. When you renew your policy next year, this amount will be deducted from your premium, reducing your premium cost. If you want to take advantage of this facility, ensure you do not make claims for small expenses, such as a broken taillight or a headlamp. These will usually be less than the NCB you will be entitled to. Therefore, they will reduce your NCB; thus, you cannot reduce your car insurance premium in the next year. 3. You can get your NCB transferred to your new car. Your car insurance policy is linked to you, not your car. Hence, you can easily transfer the NCB you have accumulated to the new car you purchase. To do this, make sure to retain your car insurance even after you sell your old car. Request an NCB certificate from your insurance provider when you switch cars. The certificate will allow you to reduce the premium on the new insurance policy. 4. You need to install anti-theft devices in your car. You can install various anti-theft devices (ATDs), such as anti-theft alarms, gear locks, and steering locks, in your car. These devices protect your car from theft and burglary. This added security is seen as a benefit by many insurance providers. Therefore, many insurance providers may give you a discount on your car insurance premium if you install an ARAI-certified ATD in your car. Make sure the expense of installing such a device is worth it. 5. You can purchase your car insurance online. You can find several portals where you can compare different car insurance premium quotes, all within a few seconds. Most such websites will give you much better deals than those you find offline. The formalities and documentation for purchasing car insurance online are simple. The portals guide you through the entire process of document uploading and verification. The entire procedure will be completed in a matter of minutes, efficiently and safely. 6. You should shop around for better rates. Unlike life insurance, you do not have to renew your car insurance policy with the same provider every year. If the annual premium rate has increased in the past year, you can shop around and obtain quotes from other car insurance providers before renewing your policy. You might get a lower rate with another provider. Remember: The lowest-priced company need not necessarily be the best car insurance provider. Verify the creditworthiness of the insurance provider before applying. You can do this by identifying the financial strength of that insurance provider and going through user reviews and ratings. 7. You can decrease the size of your vehicle. Insuring a bigger car will always be more expensive than insuring a small car. If you are looking for some discounts, you can consider purchasing a smaller vehicle. Larger vehicles have bigger engines and a higher market value. Insurance providers often provide car insurance based on engine size and market value. So, before purchasing an SUV, make sure you can afford the annual insurance premium of your new car insurance policy. 8. You can change your coverage. It is mandatory in India for every car owner to buy a third-party insurance policy. However, if you have an old car, you might want to skip the collision or comprehensive coverage. Your insurance company will probably total your car if it were to be involved in an accident because it is cheaper. You will also find other coverage options, such as car rental coverage and roadside assistance. You can skip these options and lower your car insurance premium. However, it is recommended that you understand which options you are removing beforehand. Go through every point mentioned in your car insurance policy before signing the contract. [B-02] Conclusion If you love driving your car, there is no way you can say no to car insurance. However, insurance premiums have increased. This article highlights some ways you can lower your premium. Make sure you shop around for the best rates and discounts before finalizing the right policy. Do not forget to read through the terms and conditions of your car insurance policy. If you need a personal loan to purchase your car insurance online, Piramal Finance is a good place to start.
08-11-2023
Read More