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Tax

HRA in Salary: Understand HRA Exemption in Income Tax

House rent allowance, or HRA, is a benefit received by many salaried employees. Did you know if you rent out your property, you can get a tax exemption via an HRA? You may be excluded from paying taxes on HRA contributions if you meet Section 80GG requirements. Here, we will learn what an HRA is and how to calculate it. We will also understand how you can get an HRA exemption on your income tax. [B-01] What is House Rent Allowance? Employers often provide a housing allowance for those staying in rented accommodation. You may thus use this exemption whether you are self-employed or employed somewhere that does not provide an HRA. However, your house rent allowance is tax-free if you are a lessee. The tax benefits associated with the HRA exemption provision cannot be used by people who get HRA from their employer and also possess a primary residence. How to Calculate Your House Rent Allowance? Here is how to calculate your house rent allowance: If you live in a tier 1 city, your HRA will equal half of your monthly salary. The HRA should be between 40% and 50% in case you don’t receive any commissions or dearness allowance. Income Tax and HRA Salary Your HRA pay may be calculated using the following factors: Your net monthly rent payment minus 10% of your regular paycheck. The money you received as an HRA. You will get 50% of your regular salary (for a metropolitan area). The lowest total of these three is the HRA you may write off. HRA Assessment Calculation HRA is a deduction from taxpayers’ gross income if they pay rent. Online salary HRA calculators are available for you to use to determine your HRA refund. The HRA refund might also be calculated manually. Use the HRA calculator on the Income Tax India website. For example, if an employee has annual rental expenses above ₹10,00,000, the landlord’s PAN number must be included on their tax return. An employee can claim rent benefits in line with Section 80GG or the HRA exemption section. This is possible if they are paying rent costs but don’t get HRA as part of their compensation or pay rent without any income. Considerations for HRA Deductions The following factors should be considered for HRA deductions: If you file jointly and pay your spouse’s rent, you cannot take advantage of the HRA exemption. You may still benefit from the tax-free HRA status if you have a mortgage. If you pay your rent to your parents and have a receipt, you may apply for a house rent allowance. For tenants with an annual income above Rs.11,00,000, the PAN number of the tenant’s landlord is required. In the case of a non-resident Indian landlord, 30% of the rent must be withheld as TDS (Tax Deducted at Source). Local Housing Allowance and Housing Rent Subsidy Employees in tier-1 or metro regions may be eligible for a City Compensatory Allowance (CCA) from their employer. Workers at Tier-2 locations may be eligible for CCA under certain conditions. It’s not only based on a person’s starting wage but also on their position and pay scale. In other words, HRA is different in every city. An employee in Mumbai, for instance, would get more pay than their counterpart in Delhi. A City Compensatory Allowance (CCA) in addition to their House Rent Allowance (HRA), helps pay the higher cost of living associated with rented accommodation. Regarding taxes, CCA benefits are completely tax-free, whereas HRA recipients may deduct up to Rs1,000,000 from their income. Proof of Payment for HRA Exemption You must show your rent receipt to the tax office to claim a break. You should save a copy of the lease and the license agreement, as well as any utility bills, letters to the cooperative organization, etc., that pertain to the tenancy. A house rent allowance is a tax deduction for money spent on housing that is exempt from taxation under Section 80GG of the Income Tax Act. Suppose a worker has previously claimed a deduction for HRA contributions under another section of the Income Tax Act. In that case, the HRA exemption will not apply. Those who do not qualify for the house rent allowance but are still eligible for the HRA may deduct mortgage interest and other related costs under Section 80GG. Constraints Expanded Upon Linked to Article 80 GG Housing unit exemptions are only available to HUFs and individuals. Rent costs are deductible for self-employed and wage earners who don’t have any tax breaks available under Section 10. (13A). The HUF of which the worker is a member does not own the residence where the worker is engaged in business, nor does the HUF own any of the worker’s dependents. Section 80 GG deductions did not also claim any other rental homes they use as their primary residence. All self-declarations for deductions under Section 80 GG must be filed using Form 10-BA. The applicant must provide evidence in the form showing they are eligible. [B-02] Summing Up You may keep claiming HRA only if you opt for the old tax scheme. Remember that under the new tax legislation, you won’t be able to take advantage of any HRA exemption, except for small NPS payments (up to Rs. 50,000) and mortgage interest (up to Rs. 2 lakhs). As a result, if you are currently renting and have a house loan, you should not be shy about taking advantage of the double tax benefits. To learn more about HRA and HRA exemption, you can read similar blogs on the Piramal Finance website.

08-11-2023

Investment

Important Things to Check Before Making an Investment

When you’re in a hurry to get the most out of your investments, it’s easy to overlook important details. Things like making sure your portfolio is diversified and choosing the right combination of investment plan components. Think about doing these things before you make an investment plan. This way, you can avoid problems like this from occurring in the future. [B-01] Keeping a sober mind about your current financial situation is important. To get an accurate picture of your current financial situation, you should examine your resources, income, and expenditures in great detail. After that, you can choose the amount of money you would invest in the enterprise. After that, the amount of your investment plan will be determined based on your salary as well as your financial situation. Be careful to study the market and the financial instrument you want to use for your investments. Once you have decided on your available investing funds, the next step is to do thorough research on the market and the investment plan prospects you have. The schemes may be analyzed regarding their profit. You should also consider how long they last, their tax advantages, and their safety level. You may increase the safety of your possessions by dispersing them. You can diversify your portfolio by investing in several goods, giving you access to alternatives ranging from high to low. You will still have the revenues from your low-risk assets as a fallback option if your investments with a greater level of risk do not provide the desired outcomes. Enrich your portfolio Recognize that low-risk investment plan choices, because they are less vulnerable to altering market dynamics, give superior income stability and should be considered. As a result, you need at least one fixed deposit or some other kind of investment plan with a low level of risk. To determine how much money you have made, use the FD Calculator. Investing is a game played over the long term, and thus, you should put only some of your eggs in one basket. Make sure your portfolio is clear. It is desirable to have a diversified portfolio. Besides, it becomes more difficult to manage if the portfolio is also disorganized. There are so many different alternatives for investing, so it might be challenging to complete one’s income tax returns. It makes it more difficult to study and come to definitive decisions, such as whether the organization should be dissolved or brought back to life. As you construct your portfolio, you should exercise extreme caution. You should also seek the guidance of industry experts to prevent this situation. It is important to keep in mind the following elements that might affect your profits. The total earnings you get from an investment plan are determined by several elements, including but not limited to inflation, tenor, principle, taxes, and rate of return. Before making any investments, consider them and analyze them to get the most out of your money. For example, money’s buying power decreases over time when inflation develops. If an investment plan seems like a great idea, one must determine its worth after accounting for inflation. Increase your wealth by investing and using this checklist as a guide. When deciding between low-risk and high-risk investments or between short-term and long-term possibilities, it is critical to maintain composure and use reasoning in light of each choice’s possible dangers and benefits. You should always have some money stashed away in case you need cash. Important Things to Think About Before You Invest When one begins to add financial resources, one should immediately get started on a long-term investment strategy. A person should consider the following before investing money in a savings account, a mutual fund, stocks, or bonds. A document issued by the bank Starting an investment portfolio requires a checking or savings account as a precondition. You should use a bank account to invest in various other financial items. When assets are sold, it is easier to avoid changing the bank’s mission. It is wise to move all investments well in advance if there is a change in the number associated with a bank account. Determine who it is that is purchasing from you (KYC) Before making any more financial investments, this is a required criterion that must first be met. Keep extra copies of your identifying papers, such as your passport, Aadhaar card, and PAN card, on hand at all times. This is especially important if you travel often. Nominations When making investments, most investors need to include their nominee information. Submitting a nomination is suggested and often necessary. After registration, if an investor’s intended beneficiary or beneficiaries change, the investor must re-register new candidates for each investment. Holding one’s position either in a group or on one’s own Managing and overseeing one’s holdings is an essential component of every investment. When developing an efficient workflow, it is important to consider the joint, either, and survivor modes of operation. One must pay close attention to the order in which the holders are listed since the first holder is regarded as the principal holder and is the party on the receiving end of payments and communications. A significant amount of burden Recording and updating all the following details about investments: The date of the investment, The investment account or folio number, The holding method, The nominee’s bank account number. [B-02] Conclusion: There are various advantages to making investments. To achieve your goals of being financially secure, increasing wealth, and preparing for retirement, you must develop a personalised investing strategy. But before you make an investment plan, you should verify a few things first. You can contact a reputable financial institution such as Piramal Financing. They will help you establish a workable strategy.

08-11-2023

Personal Loan

Hybrid Flexi Personal Loan Calculator, Calculate Flexi Loan EMI

If you need quick cash to take care of your affairs, a Hybrid Flexi Personal Loan is your best option. Hybrid Flexi Personal Loans may be used for whatever the borrower sees fit and are quickly approved and disbursed. One of the most common ways to borrow money is because of its low-interest rate and lack of collateral requirements. Body [B-01] For what purpose does a flex loan calculator exist? With the help of a Flexi Hybrid loan EMI calculator, you can determine how much interest you’ll have to pay based on the money you borrow. In cases when immediate financial assistance is required, a “Flexi loan” may be brought out based on a previously established credit line. The loan principal may be repaid whenever you choose, and in exchange, you’ll have to pay the interest rate as an EMI for the period you select. The fact that you pay interest on the money you borrow is a major perk of this kind of loan. If you qualify for a Flexi loan for Rs. 7 lakh, only utilize Rs. 2.5 lakh, interest will be calculated based on the lesser amount. What Is The Function Of The Flexi Loan EMI Calculator? The flexible Loan Equated Monthly Installment (EMI) Calculator considers the loan amount and the interest rate you expect to pay. For example, if you borrow Rs. 10 lakhs at an interest rate of 13.25 per cent, your monthly payment would be Rs. 11,042. The interest portion of the EMI for this kind of loan is due in the first year. Flexi Loan EMI Calculator: How to Use It? The Flexi Hybrid Loan EMI Calculator is simple to use. Just fill in the loan amount and interest rate fields to apply for a personal loan. The interest accrued will then be shown. You must first enter the desired amount to apply for a personal loan. Two, the loan tenors will automatically fill in when you choose the suitable option from the drop-down menu. Make a call on the rate of interest to be offered. Enter the loan’s start date in the “Enter your Transactions” section. Select the month (mm) and year of the transaction before entering the partial payment or withdrawal amount. Add new purchases by selecting the + sign (part-payment or withdraw) Your first transaction will always be for a lesser amount. Because this is an imaginary monthly calculator, financial dealings can only be completed in the month funds are dispersed. In addition, this monthly sample calculator can only process a single transaction every month. After the data has been updated, your repayment schedule will be shown. Difference Between Personal Loan and Hybrid Flexi Loan Borrowing money might be helpful if you meet certain requirements, such as having a steady salary and a good credit history. To ensure that a loan covers all of one’s anticipated expenses, one must use caution while deciding. There are many different types of loans available, but two of the most popular are personal loans and Hybrid Flexi Personal loans. There are similarities and variations among the options, although they may all suffice for various budgetary needs. Examples include the loan’s kind, interest rate, disbursement method, term, and repayment schedule. Learn the key differences between a personal loan and a flexible hybrid loan. A personal loan is a loan in which the borrower receives money from a financial institution for a specific purpose, with the agreement that the borrower will return the loan within a certain time frame and at a specified interest rate. Once a loan has been approved and disbursed, the borrower is free to spend the funds in any way they see fit. A Hybrid Flexi Personal Loan is one in which the borrower is given a credit limit upon meeting the lender’s conditions. The borrower enjoys the convenience of having ready access to funds anytime they may be required. Rate of Interest on Personal Loans In most cases, the interest rate on a personal loan remains constant regardless of whether or not the loan is repaid. In contrast, with a Hybrid Flexi Personal Loan, the borrower is only responsible for paying interest on the funds that have been spent. These loans are significantly more accessible and versatile since interest on the unpaid balance is lowered. Loan Disbursement for Individual A Personal Loan is Disbursed in an Easy to Understand Manner. After the application process is complete and the loan is approved, the lender will transfer the agreed-upon loan amount into the borrower’s bank account. Borrowers using a Hybrid Flexi Personal Loan may now make partial payments while delaying the entire debt until later. To what extent you put this credit option to use depends on your circumstances. This allows for more adaptability. Rate of Interest on Personal Loans In most cases, the interest rate on a personal loan will remain constant regardless of whether or not the loan is repaid. By contrast, with a Hybrid Flexi Personal Loan, the borrower is only responsible for paying interest on the funds being used. These loans are significantly more accessible and versatile since the interest on the unpaid balance is lowered. Duration As a result of the higher risk associated with extending credit to individuals, personal loans often have shorter repayment durations. Details about the loan’s payments and term length The typical loan term length offered by lenders is 60 months. Hybrid Flexi Personal Loans provide borrowers additional time to prepare financially for loan repayment by allowing them to spread out payments over a longer period. You should be able to extend the time to repay the loan. Information Needed to Prove Eligibility for a Personal or Hybrid Flexi Loan For further details on any loan, borrowers should refer to the lender’s personal loan papers. To apply for a loan, you’ll need the following documents: Greeting Card Network Proof of Residency (Aadhar card, Utility Bill) Current three-month pay stub and bank statement from the last six months (for personal loans, self-employed individuals need to submit income proof) Form-16, or the income tax return. Jobseekers who want payment in cash are often turned down (in the case of salaried employees) All of your business’s financial documents if you’re self-employed. Additional paperwork may be necessary depending on the lender’s standards and your credit history. Which Personal Loan or Hybrid Flexi Loan Should You Get? A hybrid Flexi Personal Loan might be a good option if your cash flow needs aren’t all at once but rather spread out. Both your independence and your interest rate will improve. If you need a large sum of money with a clear purpose and value repayment flexibility and low rates of interest. Then a personal loan might be an excellent choice. With the help of the personal loan EMI calculator, you can figure out which loan option would serve your requirements at the lowest possible cost. [B-02] Conclusion The Flexi hybrid loan is easy to use and repay and provides you with access to a digital account. At any time convenient for you, you may see the current balance of your loan. The customer portal allows you to rapidly access information about your loan, such as loan statements, payment details, a ledger for partial prepayments, etc. The annual fee for this kind of financing is minimal. To learn more about Flexi hybrid loans, consult an expert at Piramal Housing Finance.

08-11-2023

Business Loan

Loan against Property for Business Growth

Investing in your business and growing it is a dream come true for most people. If you are an entrepreneur, finance has a large influence on the fate of your business. Poor financial planning or limited funds can prevent your business from achieving its full potential. However, banking and financial institutions provide several options that can help you. Among these, a property loan is a common and affordable option. A loan against property is as simple as it sounds. You can pledge your property and use it as collateral to get a loan. The lender will keep this property as a guarantee until you repay the loan. Once you repay your loan amount and interest, you are once again the property owner. The property can be seized if you do not repay the loan. This article explains a property loan, its benefits, and some tax benefits! [B-01] What exactly is a “loan against property”? A loan against property is financial assistance you take from a lender by keeping your property as collateral. The property you own is a guarantee to the lender that you will pay back the loan on time. This property can be your house, a flat, or a piece of land. The lender, in return, charges you a rate of interest on the principal amount you have to repay within a specific period. Remember, you can still use or live on the property. While the loan can be used for any expenses, we will focus on using the amount for business growth in this article. You invest this amount in your business and meet your business goals. Several banks and private financiers provide loans against property at convenient interest rates. What are the benefits of using a loan against property to finance your business venture? There are several benefits to using a mortgage loan to finance your business. These are the following: Low rate of interest Interest rates on loans against property are low. The low interest rate is to ensure you can pay off the loan. Banks often charge a low interest rate so that the maximum amount is invested in growing your business. In India, the interest rates for a mortgage loan start at 8% per annum and can go up to 25% per annum. The interest rate depends on various factors. Most lenders will check your credit score, loan history, income, and property value before providing a loan against property. Property utilisation Obtaining a loan against property is far superior to selling the property in the long run. A loan against property is much better than selling your property. The reason is simple: selling is an irreversible deal. Additionally, selling your home will result in a one-time lump sum payment. The amount will be the market price of the property. However, if you are living on the property, this can create two problems: You will have to look for a new place to live. The property value may decrease depending on the condition of the property. In contrast, you will also get a lump-sum payment when you take out a mortgage loan. However, you will not have to face these two problems. The amount you get depends more on your income, credit history, etc. than on the condition of the property. High loan amount The loan amount that you get from your bank depends on many factors, and one of the main factors is the market value of your property. If your property has a high market value, the loan amount may also be on the higher side. Banks will lend up to 65% of your property’s market value. In many cases, the loan amount can go up to INR 5 crore. This can also increase depending on your credit history, property location, the development of the area, and so forth. Low-cost EMI Loans against property have low EMIs. This is one of the major reasons for choosing a loan against property rather than selling it outright. The EMI is usually between INR 750 and 900 for every lakh borrowed. EMIs are far more manageable than a lump-sum payment. Flexibility Loans against property are highly flexible. The whole application process is transparent. Many lenders provide a self-tailoring option. You can choose the type of loan and the tenure of the loan. Many also provide a Flexi option. In this option, you only need to pay the amount you use rather than the entire principal amount. Should you take a loan against property to finance your business? It is difficult to answer this question objectively with one word. Financing a business is not very straightforward. You can apply for business loans, MSME loans, etc. to finance your business expenses. However, your eligibility for each loan and the interest rate vary. Therefore, you should compare all the options and choose the one that fits your requirements. However, a loan against property does have some tax benefits. For mortgage loans used to finance business, you can claim tax exemption under Section 37(1) of the Income Tax Act. The tax exemption is claimed against interest paid and associated fees. [B-02] Conclusion A loan against property is one of the most popular choices to finance business expenses. This type of loan depends on the market value of your property. Also, you can avail yourself of some tax benefits on both the principal and interest amounts. You have to compare the different loan options available to you before choosing one. To determine the best EMI option, use a loan against property calculator. If you’re still not sure where to start, reach out to the experts at Piramal Finance and learn more.

08-11-2023

Home Loan

Important Things You Should Know About a Mortgage Loan in 2022

When money is critical, it may take a lot of effort to obtain. A homeowner’s ability to quickly and inexpensively get the required funds by mortgaging their house is a major benefit in such a situation. The most attractive feature of a mortgage loan against property is that, unlike many other types of loans, you may qualify for one with very low-interest rates without giving up any house ownership in exchange. Everything you need to know about home mortgages is right here. [B-01] What is a Mortage Loan? Mortgage loans are simply loans that are backed by the equity in a person’s home. You might have a title dispute over a loan against property such as your house or commercial property. Mortgages may be acquired from traditional banks as well as non-banking lending companies. The lender will provide the principal sum plus interest. Monthly payments make it easier to repay the debt. Your collateral stays in the lender’s possession while you pay off the loan. Therefore, the lender has a legal claim to the property throughout the term of the loan and may repossess it and sell it at auction if the borrower does not return the debt. Like any other kind of financial instrument, it’s important to fully grasp the inner workings of a mortgage loan to avoid any unwelcome surprises down the road. Before you sign anything, please review the following important information. Five Important Things to Know About Mortage Loan in 2022 Variables That Affect Eligibility Requirements The Equated Monthly Installment (EMI) may be a starting point in determining whether you qualify for a loan. Traditional financial institutions often limit monthly payments to no more than 40–50% of a borrower’s gross income. In this case, we disregard any reimbursements or allowances. Additional debts, such as a loan against property, may further restrict your eligibility. Institutions may be sensitive about the number of people who rely on you financially. An increased reliance ratio indicates. Loan Type You are well aware of the options available to you in terms of mortgage loans, including both fixed-rate and adjustable-rate mortgages. A loan against property with a fixed interest rate is one whose interest rate will not change in response to market conditions. This is an interest rate that is one to two and a half percentage points higher than the cost of a variable-rate mortgage. Meanwhile, the interest rates on floating-rate loans fluctuate with the market. Loan Interest Rates for Various Mortgages There is the option of a fixed or variable interest rate for your home loan. Let’s see how the two concepts compare and contrast. As the name suggests, a fixed interest rate does not change at all during the loan’s duration. You can lock in a lower interest rate for the duration of a loan if you borrow for a shorter period. If you’re looking for a mortgage loan against property with a longer term, you may need more time to lock in a fixed interest rate. Interest rates that fluctuate with market conditions are called “floating.” The interest rate cannot be predicted, but you can get a ballpark estimate on the lender’s website. This rate is adjusted regularly by shifts in the Marginal Cost of Funds based Lending Rate (MCLR). Negotiate the Rate No matter what you decide to do, remember that you can negotiate the interest rate. The bank would have the upper hand in any negotiation, but you have some leverage as well, especially if you’ve been a customer for a long time. Your credit report shows a perfect record of on-time payments, right? Put it to use in bargaining for better terms and a larger loan. You’ll have more leverage with lenders when your credit score is good. Longer Tenure Leads to Costlier Loans The RBI has always maintained a hawkish monetary policy, which has resulted in longer lending periods and higher borrowing prices. Banks have also raised their adjustable mortgage rates in reaction to the hike in base rates. This will result in a higher monthly payment for the borrower. Most borrowers who get this notice of increase then request that the term of their loan against property be adjusted (extended) so that they may make smaller monthly payments. Switching Lenders Even though you have a loan with a bank now, it doesn’t mean you have to keep it there forever. If the necessity arises or you get a significantly better offer from another lender, you can switch lenders at any time. Most financial institutions no longer apply prepayment penalties on loans with adjustable rates. Therefore, the processing fee is the sole additional cost. Features of a Mortgage Loan Let’s look at the fundamentals of a mortgage loan against property now that we know what it is and how much interest it costs. There is a wide variety of property types, including real estate, that lenders will not accept. Lenders will often approve fully constructed assets, such as residences and stores. Freehold means the owner has the full legal right to transfer ownership, and marketable value means the property may be sold. Mortgage loans are considered secured loans because the lender gives you the loan amount in exchange for the use of your property as security. It’s possible to get a mortgage loan with a repayment period of up to 30 years, with payments spread out into more manageable EMIs. A mortgage loan against property may be tailored to your specific requirements. Benefits of a Mortgage Loan One way to use a home equity loan is to pay for a necessary medical procedure. Company expansion and financing kids’ college tuition; funding a kid’s wedding expenses Mortgage perks for renovating your property Now that we’ve covered what a mortgage loan is and how it works, let’s look at some of the benefits. Legally, you will remain the property owner even if you use the loan money to pay for anything you need. Mortgage loans are popular because lenders feel safer with them than with other types of unsecured loans. Home loans often have far more reasonable interest rates than individual loans. The conditions of repayment are negotiable. [B-02] Conclusion The process of obtaining a mortgage loan against property is more straightforward in theory than in practice. The time it takes to get a loan authorized might be substantial, even if it seems like all banks are eager to offer. A reputed institution like Pirimal Finance will be able to assist you if you want to learn more about a mortgage loan and how it works. Do not hesitate to visit them.

08-11-2023

Tips & Advice

Mandatory Documents For Car Insurance Claim Process

Whenever one thinks of claiming car insurance, a lot of questions come to mind. What are the documents required for a car accident claim? What are the steps to making a car insurance claim? What are the details required to fill out a motor insurance claim? Any automobile insurance coverage needs to include a claim procedure. A vehicle insurance claim is essentially a request made by a policyholder to their auto insurance provider for payment of the insured’s monetary loss. When the insured’s car is stolen, is involved in an accident, or suffers damage, a car insurance claim may be made. The insured’s stated value listed in the policy serves as the foundation for an automobile insurance claim. However, you must submit a few documents to make a claim. Continue reading to learn more about the paperwork needed to file an automobile insurance claim. [B-01] Documents Required for the Car Insurance Claim Process When filing an automobile file car insurance claim you must have a few documents on hand. A list of the required paperwork is provided below: Details of your automobile insurance coverage must be kept in hard copy or electronic form because it is unquestionably one of the fundamental criteria. Information on the insured vehicle: This comprises information about the car, like its licence plate number. To file a car insurance claim with any insurer, you must have an RC, or automobile registration certificate. Driver’s licence information is required in this section. The likelihood of your auto car insurance claims being denied increases if the driving licence is discovered to be fake. FIR: You must file an FIR if you want to file an insurance claim for your car after it has been stolen or involved in an accident. Payment receipts: Cashless claims and reimbursement claims are the two categories of auto insurance claims. If you choose to submit reimbursement claims, you must provide genuine receipts to be compensated for your expenses. With a cashless system, however, the relevant insurance directly settles and pays your invoices. Vehicle inspection address: When you file a claim with your auto insurance after an accident, you must include the address where the surveyor inspected the damaged vehicle. Tax Receipt: When filing an automobile insurance claim, you must also provide the insurer with a tax receipt. How Can Rejected Car Insurance Claims Be Eliminated? There is a good chance that your car insurance claim will be rejected. This is due to several factors, including the following: If you submit a driving licence that is invalid or expired, your car insurance claim may be denied. Place Of Accident: Since auto insurance is only valid within Indian territory, keep in mind that any accidents that happen while driving abroad will not be covered by your auto insurance provider. Renewing: If you don’t renew your auto insurance on time, your claim will be void when you go to file it. As a result, make sure to renew your auto insurance policy on time. Transfer of Insurance Policy: If you buy a used car, make sure the insurance policy and registration document are transferred into your name. The insurance company will not accept any claims if this is not done at the scene of the accident. Aim to complete this transfer within 14 days of the purchase. Claim Types and Documents Required Third-Party Claim Third-party claims are made to obtain coverage for third-party obligations. You must notify your insurance provider and the nearest police station if your car has damaged someone else’s life or their vehicle. If you are a victim, you must gather all the details about the car that injured you as well as the owner’s contact information. You must inform the police and your insurer about the accident in this situation as well. Own injury claim When your vehicle is harmed in an accident, damage claims are made. Whenever feasible, try to report the occurrence to the police and your insurance company. A surveyor will be dispatched by the insurer to evaluate the damage to your car. Don’t take the automobile away from the scene of the collision until then. Your insurance will pay the repair costs directly to the garage if you choose the cashless option at a network garage. If not, you will need to file a reimbursement claim with your insurer and provide them with the necessary paperwork for a car claim. Crime Claim If your insured vehicle is stolen, you may file a theft claim. In this case, you must first report the theft to the police, the RTO, and your insurer. Prepare the necessary claim documentation in advance before filing a theft claim. Additionally, if requested, give the insurance company the lost car’s keys. [B-02] Summing-up: The goal is to tell you what mandatory documents are required for an insurance claim. If your car is in an accident, having auto insurance can help in certain circumstances. You can make a car insurance claim to receive the policy benefits in return for the premium you paid to insure your vehicle. A claim can help you seek compensation, whether you have damaged your car or harmed someone else’s property or person. The necessary third-party insurance aids in providing coverage for any harm you may cause to a third party or their property, while the comprehensive insurance provides coverage for both you and the other party’s vehicle. In any event, by following the steps below and the documentation process, you can submit a file car insurance claim. Also visit Piramal Finance for more in-depth, educational articles.

08-11-2023

Personal Loan

A Detailed Guide on Paperless Personal Loans In India

Financial services have changed a lot in the past few years. Instead of waiting days for their banking needs to be met, Most clients today want quick and easy answers. This is possible now. Digital financial industry focus on building a cashless infrastructure. The government is already starting to make the economy digital. Many lenders now provide paperless personal loans. This is because we live in a digital age. Many companies provide personal loans and help clients with their immediate financial needs. Many experts say they will not use paper where consumer credit is going. [B-01] How to Apply for Paperless Personal Loan? Today, it’s easy for financial institutions to accept and check digital papers of applications. A branch office is no longer a place where customers can fill out loan applications offline. They could get permission for this from anywhere. Go to the official website of the lender. Fill out the online application with information about yourself. Send digital copies of all the paperwork that needs to be done. The bank will check the papers to make sure they are real. The loan money is sent to the customer’s bank account if the paperwork is okay. Necessary Documents A paperless personal loan is easy and quick to apply. To get the loan amount, the borrower has to give the business a lot of paperwork. These documents are needed to show that the person applying for the loan is a real person who can repay the loan. Applicants must upload these documents digitally, which makes it possible for the company to check them. Digital signatures have made it possible for customers to sign documents now. It makes the process go without paper. Here are some of the documents that need to be filled out for paperless personal loans: Proof of who you are (PAN, Voter ID, Aadhar, etc.) Address proof (Aadhar, Passport, Voter ID, utility bill, etc.) Financial statements: (digital copies of most recent financial statements retrieved from a net banking account) Salary slips (Paystub digital copies obtained from the employer) You can scan these papers and send them in via the application site if you have copies of them on paper. The business will get these papers and keep them in a safe place. During processing, the lender will look at these papers to ensure they are legal. Benefits of Paperless Personal Loans There are some good things about getting a personal loan without papers. Here are just a few of the most important ones: Minimal Papers Customers don’t have to go to the branch office anymore. They can send paper copies of their applications since the process is done on a computer. This way, you don’t have to fill out many forms, which can be a pain. When you don’t use paper to apply for a personal loan, you might not have to deal with all the extra problems with paperwork. Quick Payment There are now many more personal loans because the business world has become more digital. The loan money will be sent out immediately when the company verifies these papers. You can also get loans that have already been approved if you have an account at the bank. Environmental Benefits This is one of the most important reasons many businesses want to get rid of paper. Since the process has become digital, banks may save a lot of paper and use a more friendly approach. This way, you can reduce your carbon footprint and help the environment. Low Operational Costs By going digital, lenders can lower their total costs. This method makes it possible to eliminate all printing and paper costs. The money saved by using this method could be given to clients. High Security Most experts in the field say. Keeping paper files is a lot less safe than doing things without paper. Before, there was always a chance that important paper records would get lost. This could be removed if the application is. And the processes for checking are done digitally. Things to Consider Before Applying for Paperless Personal Loan Keep your credit score up Your credit score shows how trustworthy you are based on how you’ve paid bills in the past. Try to pay your bills as quickly as you can. Before you try to get a loan, pay off any debts you still owe. Your credit score will go up because of this. Getting a loan would help if you had a good credit score (750 or more). Compare the Lenders Check out the interest rates and requirements for getting a loan before you apply for one. And other details about all the Personal Loan options you can choose from. This is the best way to ensure you get the best loan possible with as low an interest rate. Count All Expenses Check the costs of your loan, such as the interest rate and processing fees. Also, before agreeing, check for things like prepayment and more. Know Your Capacity to Repay Before you take out a loan, make sure you can pay it back. Make sure your salary is enough to cover the monthly EMI payments. For a few years without making your finances too tight. Loans Without Paperwork Using Mobile Applications Now, many lenders give loans to customers through mobile apps. This lets them reach a wide range of customers and meet their needs. Customers might get something out of this plan. By managing their loan accounts with their cell phones. Using these tools to help. They can track their debt and when to pay it back. [B-02] Conclusion Lenders and borrowers can benefit from paperless personal loans because of the use of tech. Personal loans have changed a lot in recent years. Whether in terms of price or how quickly they pay out. By getting rid of the hard-to-do paper filing process, you can save a lot of time and still get the loan money. Most of the largest banks in the country offer pre-approved loans to their customers. Pre-approved loans don’t need proof because the lender already knows the borrower’s profile. In India, many people already use Piramal Finance to get loans without paperwork. They will keep getting more and more popular in the years to come.

08-11-2023

Home Loan

Why You Should Get A Loan Against Property in Mumbai

Loans are one of the best ways to achieve your dreams. Out of many, loans against properties are the ones that have seemed lucrative in recent times. It can help you get the money you need to invest in your venture or cover your personal needs. Do you also want a property loan in a place like Mumbai? Keep reading to learn more about these kinds of loans. To obtain this loan, you must pledge your property. We will find out various factors, benefits, and downsides of a loan against property in this article. This article is dedicated to the loans against properties, their features, benefits, and the reasons to go for them in Mumbai. [B-01] What is the correct description of a loan against property? As mentioned, A loan against property is a loan you take from a lender by pledging your assets. You use a property as a medium of guarantee between you and the lender to make sure you repay your loan. The lender keeps your property unless you completely repay your loan. This property could be your house, a flat, or even a piece of land that has a market value. The lender charges you a rate of interest on the principal amount for a set period in return. You must repay your loan within this time limit through monthly instalments, as directed by your lender. In India, there are several banks and private financiers that provide you with property loans at different interest rates. The correct market value of your property determines your loan amount, interest rate, and repayment tenure. Mumbai: As the location for a loan against property. Popularly known as the “dream city” of the country, Mumbai stands as a huge source of revenue generation. It adds approximately $600 billion to the country’s overall revenue, which is daunting. Being the hub of entertainment, cinema, fashion, and trade, its contribution to the GDP is about 6.2%. With that level of economic activity, it might seem quite tough to get a loan against property in Mumbai. But with the correct know-how and the right approach, you can easily crack this nut and get a property loan. What are the benefits of having a loan against property in Mumbai? There are several benefits to availing of a loan against Mumbai property, some of which are listed below. Attractive interest rates: Interest rates on loans against property in Mumbai are quite low, so you can easily pay off your debt in small, easily repayable instalments. In Mumbai, the rate of interest starts at 9.50% per annum, which is an ideal number. The interest rates also depend on your credentials, like your credit score, loan history, etc., and your bank’s offers. Disbursal within 3 business days: Once all your documents are verified and you get the bank’s approval, you will get your property loan amount within 3 business days. This process can even be faster, provided your bank gets done with the verification process as quickly as possible. Huge value funding: Depending on your credentials and eligibility, the loan amount is decided by your banks. You can get as high as 5 crore rupees, or even more if the bank finds you the perfect candidate for this loan. Convenient tenure of repayment: The tenure of repayment in many cases for a loan against property is high so that you can conveniently repay your loan amount through instalments. The tenure can often be stretched to 20 years or even 30 years, depending upon the maximum limit of the bank. Low EMI per lakh: For every lakh, the EMI amount is low for property loans in Mumbai, which stands as a huge advantage for you. The lowest EMI per lakh for 30 years starts from 750 rupees onwards for a loan against property in Mumbai. For instance, the State Bank of India charges INR 812 for every lakh, HDFC charges INR 769 for every lakh, PNB charges INR 787 per lakh, and Axis Bank charges INR 870 for every lakh. Similarly, many more banks charge similar rates for a loan against property in Mumbai. Visit all the websites and compare all the options to find the best fit for you. No prepayment or foreclosure charges: If you want to prepay your instalments, your bank will not charge you any penalty. Also, if you want to close your loan accounts before the maturity period, in that case, your bank won’t charge you any extra fees. What are the eligibility requirements and documents needed to apply for a loan against property in Mumbai? For eligibility: You must fall into the age range of 25 to 70 years and either be a salaried or self-employed individual. You should have a work experience of about one year and a credit score of 750 or more to avail of a property loan in Mumbai. Documents: You must show your ID proof, address proof, and a copy of your property documents. You should have your latest salary slip (for salaried individuals), bank statements (last 3 months), and IT returns (for salaried individuals) as well. [B-02] Conclusion: In many cases, a loan against property is an ideal choice, especially if you want to invest that money in growing your business. However, sometimes, for personal uses like purchasing a house or a flat, you can also do so. You can use property loan calculators and compare different interest rates before deciding on the best option. If you loved reading this article and you want to read more about property loans, personal loans, and different investment schemes, you can prefer to visit Piramal Finance.

08-11-2023

Home Loan

Loan Against Property to Buy a New House or Flat

Buying a new house near a city is still a dream for many people. With the increasing market price of flats everywhere, people rush to own houses. But sometimes, without any financial help or a loan, this dream remains a dream. A loan can help you fulfil your dream of owning your own house. And out of many loan options, a loan against property could be the right fit for you. Instead of using a house loan, you can use this loan to buy a new house. Have you also wanted to apply for a loan against property for a long time? Do you want to know how to use it to buy your own house? Want to find out about the interest rates, tenure, and offers that come with it? Well, then read on! In this article, you will learn about the loan against property, its features and benefits, and how to use it to buy your own house. [B-01] What is a loan against a property, and why is it applied? A loan against property, as the name suggests, is financial aid that you receive from a lender by keeping your property as collateral. The lender uses this property as a guarantee to make sure you repay your debt. In return, the lender charges you a rate of interest for a specific period within which you are bound to pay the loan. As soon as you clear all your dues and get the green card from your lender, your property is no longer collateral and completely belongs to you. However, if you can’t pay your debt, the lender has every right to keep your collateral. Mortgage loans are a good option for borrowers with no security money or shares to pledge. In India, several banks provide these loans at reduced interest rates with multiple offers. What are the benefits of using a loan against property to buy a new house? There are several benefits to using a loan against property to buy a new house: High loan amount: If you want a lump sum to buy a new house, a loan against property can be the right fit. In many cases, banks allow up to 65% of the total value of your property. This is huge, especially for you to buy a new house. This one is a viable option with ongoing market prices, where property rates are touching the sky. In addition, if the market value of the property you are pledging is high, then the mortgage loan amount will also be high. Eye-catching interest rates: Banks charge a low-interest rate to borrowers to help them easily pay off their instalments. The interest rate on loans against properties depends on your credentials and what your bank offers. However, the interest rate range is between 8% per year and 25% per year. You will likely get a handsome offer if you have a good credit score and a good loan history. Fast disbursal: The disbursal period on most mortgage loans is between one and three days. If your bank doesn’t require bulky paperwork and unnecessary processing and verification, your disbursal period will be shortened to a great extent. And if your bank allows for online processing, the amount will be disbursed in less than that amount of time. A long period of repayment: Since your property is pledged and the loan amount is quite high, banks give you a very reasonable amount of time to repay your loan. The repayment tenure is subjective and mostly depends on your bank, but it can be stretched up to 20 years in many cases. Minimum extra charges: Charges like your processing fee, statutory bills, stamp duty, etc., are often zero or minimal on loan against property. Banks also do not charge you extra fees or penalties in most cases. The whole process remains transparent so that you can exercise at your convenience. Should you use a loan against property to buy a new house instead of a home loan? In most cases, you should use a home loan to buy a house instead of a loan against property. Home loans are specially designed to help you buy your own house. On the contrary, a loan against property is used to pledge assets to get funds to invest in your business. Furthermore, home loans give twin tax benefits and other perks you won’t get from a loan against property. In a home loan, you can claim the benefit for principal repayment under Section 80(c), but not in the loan against property. However, if you can’t avail of a home loan for any given reason, you might prefer a loan against property. Only in this case can you prefer to pledge your assets to get yourself a loan. You also have to keep in mind the downsides that you will be facing, if any. [B-02] Summing it up: A home loan is ideal for buying or constructing a house, but in some cases, for technical reasons, you can opt for a loan against property. The demerit is that you can’t avail yourself of the perks you would be getting from a home loan. You should contact your bank and talk to your advisor before making such a decision. If you have come this far, you are probably hooked on topics like these. If yes, visit Piramal Finance to learn more about home loans, personal finance, investment schemes, etc.

08-11-2023