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Business Loan

Types of Working Capital Loan

Working capital is the money used to run the day-to-day operations of a business. These could be rent, salaries, utilities, the purchase of raw materials, and other expenses. It is calculated as the difference between current assets and liabilities. Working capital reflects a company’s liquidity level and financial health. Without it, a business might not function smoothly. As a result, businesses often take out working capital loans to keep their operations running. These loans are not used for investments or buying long-term assets, but to meet the company’s short-term operational needs. [B-01] What is a Working Capital Loan? Businesses don’t generate revenue throughout the year. There are ups and downs in sales. And some businesses are seasonal. However, they need to keep the operations running. There might not be enough cash on hand or liquid assets. Hence, they require working capital. For this purpose, they secure a working capital loan. It helps during low sales and revenue periods. Banks and other financial institutions offer working capital loans to keep businesses going. The loans can be secured or unsecured. The repayment period is usually flexible, with a tenure that ranges between 6 and 48 months. The loan amount, interest rates, and tenure may vary from lender to lender. Not just that, working capital loans are of multiple types. Let’s have a look at its various types. Types of Working Capital Loans Cash Credit Cash credit is a short-term solution for working capital financing. It is a secured loan. Hence, collateral needs to be pledged. It can be stock-in-trade, assets, work-in-progress, finished goods, etc. It is necessary to open a separate cash credit account in order to take advantage of the facility. Cash credit lets you withdraw money without keeping a credit balance. You can withdraw more than the balance maintained in the account. The interest is charged on the daily closing balance or the used limits, not the amount sanctioned. Overdraft Facility The overdraft facility lets a current account holder withdraw more cash than what is available in their accounts. The overdraft limit and time period depend on the provided collateral. People who have a good credit history and a long-term relationship with the bank are generally preferred. Interest is charged on the amount drawn until repayment. Bill Discounting Bill discounting is a financial tool where a bank buys the bills or invoices of the seller. The bank pays the borrower the bill amount after deducting a commission or discount. Later, on or after the due date, the bank presents the bill to the purchaser and collects the bill amount directly from them. This method is most commonly used by traders, manufacturers, wholesalers, and businesses engaged in transport and logistics. Bank Guarantee A bank guarantee is offered by banks or lenders in lieu of collateral or commission. It is to ensure that in the event a debtor is unable to repay their debts, the bank will take care of the losses. For example, Company 1 wants to make a large purchase from Company 2. But Company 2 is unsure of the payment capacity of Company 1. So, Company 2 asks Company 1 to issue a bank guarantee regarding the payment. Company 1 will approach their lender for a bank guarantee. This will state that if Company 1 cannot make the payment by the due date, then Company 2 can seek payment from the lender of Company 1. Letter of Credit A letter of credit is a financial document generally used in international trade. It lets the two parties do business without worrying. It assures that if the borrower cannot pay the debt of another party, the lender will take care of the credit. Letters of credit serve as security, while bank guarantees act as insurance. Accounts Receivable Loan Accounts receivable loans are a way to raise funds for issued invoices. A business uses its accounts receivable as collateral to raise funds from a bank. Accounts receivable is the amount for which the invoice has been submitted but the payment has not yet been made. These loans are usually provided to businesses with a good sales reputation and a healthy credit history. Benefits of Working Loan Capital Working with loan capital comes with many benefits. Some of these include: There is no restriction on using the funds. The loans are easy to secure, and the disbursement is quick. This makes them a great option for immediate financial needs. Some types of working capital loans are unsecured and can be issued without collateral. Flexible tenure and reasonable interest rates. [B-02] Conclusion Working capital loans are a great option to meet your day-to-day business needs. Some of them are unsecured, which doesn’t require collateral. The loans can be taken easily, and the money is quickly disbursed. This helps in providing sufficient liquidity for reducing short-term obligations. Working capital loans also help in maintaining cash reserves and managing sales fluctuations. To read more informative blogs, you can visit us at Piramal Finance. Our experts will help you with all your finance-related queries.
08-11-2023
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Mutual Funds

Types of Mutual Funds – Best Mutual Fund Schemes in India

To have a secure future and meet your life goals on time, you must save and invest money. There are many options that you can choose from when it comes to investing your money. You must target an investment option offering higher returns than the inflation rate. This will ensure that you will be able to meet your future needs. Mutual fund schemes are one of the best options for making your money grow at a pace that is faster than the inflation rate. A mutual fund is an investment option wherein a fund manager manages a pool of money from various investors. The fund manager will make every investment decision based on in-depth research. There are many types of mutual funds that you can invest in, but you must pick the funds that align with your life goals. Read on to learn more about the types of mutual fund schemes in India. [B-01] Types of Mutual Fund Schemes There are many ways to classify the types of mutual fund schemes in India, but you can get confused about which one to pick. You can classify them into two mutual fund groups to get to know them better. Based on Asset Class Debt Funds: These funds invest money in less risky debt instruments. They offer fixed returns and are safe for new investors. Debt funds invest in secure options like bonds, debentures, and various assets that offer a fixed return. These funds do not have the Tax Deducted at Source (TDS) option, so you must pay the tax yourself. Equity Funds: These mutual funds schemes invest money in the equity market, i.e., stocks and shares of companies. They offer higher returns but also carry very high risks related to changes in the equity market. Some specialty funds also form a part of equity funds, like banking funds. The income you make from these funds is liable for income tax. They are among the most popular types of mutual funds for investors who want high returns. Hybrid Funds: These funds are also known as “balanced funds,” as they manage a balance of asset classes and carry a lesser risk. Most of these funds invest in a mix of equity and debt assets. The ratio between these two can vary based on specific funds. As such, the returns from hybrid funds are lower than equity funds but higher than debt funds. Money Market Funds: These mutual fund schemes invest in liquid assets such as T-Bills. If you have surplus money to invest but do not want to take on more risk, then this can be a good option. These funds are also known as “cash market funds” and have interest and credit risks. The returns from these funds are neither too low nor too high. Based on Specialty Index Funds: These funds invest in assets that reflect a given index on an exchange. Hence, these funds copy the returns of the index. Hence, the risk in these funds is not as high as when you invest in equity funds but is higher than that of fixed-income assets. Sector Funds: These mutual fund schemes invest in a given market sector, and the returns are directly linked to how that sector works. Hence, the risk you will face will also be linked to how the sector is doing, e.g., banking funds, auto funds, etc. Fund of Funds: It is one of the types of mutual funds that invests money in other mutual funds. Hence, the returns from these funds are linked to how the other funds work. They are also known as “multi-manager funds.” The risk here is very low, making this a safe option if you do not want to take huge risks. Global Funds: These funds invest money in assets in various countries, including your home country. The present risk is linked to the type of assets the fund manager invests in. Market-neutral funds: These mutual funds do not invest directly in the markets. They try for steady growth and fixed returns by investing in Exchange-Traded Funds (ETFs) and treasury bills. Hence, the risk present in the investment is much lower than in other options. Selecting the Best Mutual Funds in India If you want to invest in a mutual fund that will grow your money, you need to know how to select the best fund schemes. Equity funds can offer very high returns but are also very risky. On the other hand, debt funds have less risk but also offer low returns. Hence, it is not ideal to list the schemes you can invest in, as they might not meet your long-term goals. Here are some tips to help you select from various types of mutual funds: Your Goals: You will have to look for a mutual fund to help meet your life goals. This will help you find the right balance between risk and return. This fund must help you get to your life goals on time. Risk Appetite: The amount of risk you are willing to take will directly affect the returns you can get from mutual funds. In other words, if you are young, go for equity funds to benefit from long-term growth, but if you are about to retire, you can opt for debt funds as they have a lesser risk. Fund History: Look at the last 5- and 10-year histories of the mutual fund. This will help you learn if the returns from the fund will help you reach your goals. [B-02] Mutual funds offer you a great option to invest your money and make some returns on your investment. If you are new to mutual funds schemes and do not know which ones are the best for you, you need to get more information on the various funds before you decide. You must visit Piramal Finance to learn more about the world of mutual funds and be ready to decide which fund to invest in. They have many articles and blogs there to help you in the process.
08-11-2023
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Personal Loan

What are the Benefits of Choosing an Instant Personal Loan in 2022?

Time has made personal finance planning a walk in the park with the greatest offers on instant personal loans. Just a few clicks and you will have your loan amount in your bank. You do not have to apply for personal loans with many documents for verification. You do not need to wait in long lines to get approval for your loan. The disbursal time for loans has come down significantly. Many banks are willing to offer instant personal loans to promote their services. All it takes is verification of your documents. Once the bank is satisfied with your credentials, they will transfer the funds to your account instantly. In this article, we will shed some light on the benefits of instant personal loans. [B-01] Benefits of Instant Personal Loans It is necessary to understand the benefits of an instant personal loan. Taking a loan is a major financial decision, which requires making the correct judgement. Let’s find out how choosing instant personal loans will benefit your personal financial planning in 2022. Speedy delivery with instant personal loans The word “instant” ensures that the fastest loan processing is done for personal loans. It may take anywhere between a few hours to a few days for your loan to process. Personal loans are already the fastest-processing loans over other types of loans. Instant personal loans cut down on the time that it takes to process a conventional loan. Once you guarantee that repayment will be done, the loan is yours. No Security Against Instant Personal Loans Personal loans are usually not secured. This means that you do not have to put anything on the line when asking for a loan. Since not much verification is needed due to a lack of security, it is easier to get approval for a personal loan. Hence, this is very risky for the loan providers. Because of this, the interest rates are generally high. Multiple Uses of the Personal Loan You do not have to specify where and how you are going to use the amount from the instant personal loan. It could be for anything, such as house renovation, IT equipment purchases, a vacation overseas, and so on. You can use the amount for more than one purpose as well. This feature is extremely useful in case you change your mind about the use of the loan funds. You can repay the funds earlier in that case. Improving Credit Score If you do not have a credit history, you can get an instant personal loan and repay it on time to get a good boost. With a good credit score, you can conduct more thorough personal financial planning for the future. You can also get better offers on other loans that carry stricter credit guidelines. Paperless and with the Fewest Documents Nowadays, most of your details and data are stored online with various banks and lenders. Instant personal loans do not require a huge amount of documentation, as your details can be found online. KYC is popularly used for this along with bank statements. This is why instant personal loans are considered paperless. Banks can verify your details through online records in no time. This improves the processing time of the loan. Online channels for personal financial planning Since most of your details are available online for verification, you do not need much paper to submit. With online instant personal loan options, you can apply for one from anywhere. The online process is as simple as following a few selections and clicking a few buttons. From application to disbursement, everything can be done digitally. Cleaning Up Debts From Other EMIs If you have many EMIs weighing on your salary, you can clear them all with a single instant personal loan. You will be left with only one EMI and a lot of peace of mind. You can pay off huge credit-card bills and other huge payments with a single loan. A personal loan is easier to repay as compared to heavy EMIs from other purchases. Access to Special Offers with Super Benefits Lenders and banks have the data for the possible borrowers online. Accordingly, they offer instant personal loan deals with the best terms based on financial information. If your credit score has improved, the lenders will present you with better offers. Therefore, looking at instant personal loan offers first when you feel the need for a loan is the best choice. The benefits offered include better interest rates, beneficial repayment terms, loan sanction terms, and so on. The best solution for emergencies There might be cases where you have an urgent need for funds. It may be a medical emergency, certain pending dues with the last date nearby, or a need for instant purchase. Getting into debt with unreliable sources can be dangerous in the long run. You can look for instant personal loan offers for quick disbursal of funds from reliable lenders such as Piramal Finance. Here, your needs are kept in mind, and the loan is disbursed quickly for your use. [B-02] Conclusion If you have followed through with the points above, you must have understood the importance of personal loans. How instant personal loans are the best personal financial planning solutions today, is easily understandable. From their lack of heavy documentation to their quick processing and security-free terms, these factors make for the most beneficial loan terms to fulfil your demands. Piramal Finance experts can guide you when you wish to choose personal loans for the fulfilment of your dreams. With the guidance of a premier financial institution, you can find the best loan for your needs.
08-11-2023
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Personal Loan

What Are the Key Factors While Choosing a Personal Loan?

People have aspirations, and these dreams inspire them to work hard. These aspirations involve vital and emotionally rewarding life goals, such as having a fairy tale wedding, a pure home to call your own, switching the day job for self-employment, or beginning a new life in a distant place. When you make your goals a reality, you will face many hurdles. These difficulties might manifest as a lack of support, excessive ambitions, concentration, or money limits. While the other problems need some problem-solving, the last one may be overcome with a simple answer: a personal loan. Check personal loan eligibility to know which factors to analyze to get the best loan. [B-01] Reasons To Take A Personal Loan The personal loan is simpler since it needs less paperwork and does not need a security or guarantor. So, read the reasons to check personal loan eligibility that suits you the best: Consolidation of debts. Weddings and other family social events Paying off credit card debt To pay for holidays. To purchase a high-end household appliance. So, no matter why you want a personal loan, here are a few tips to help you find the best loan for you so that you can check personal loan eligibility: Capacity Before anything else, the bank will look at your payment potential. When seeking a loan, the debtor must provide the bank with a letter allowing people to check your credit record. Banks will look at your payment record with others and the number of loans you now have. The bank will then examine your income and compute your coverage for the debt service ratio. A bank typically sets a minimum coverage for a debt service ratio of 1.2 times. Assets To cover its risk, a bank may request assets or safety from the applicant. Even the most resilient firms might experience a period of loss owing to unforeseen factors that may impair a firm’s capacity to repay a debt. The amount of security a bank can request is determined by available assets, including real estate, firm assets, equipment, current account deposits, FDs, etc. Lenders A personal loan is the most common product that banks provide. People are often bombarded with texts and calls offering loans with tempting terms and rates. Using an internet platform to make an educated choice is the best option. On such sites, you can compare the many lenders, the terms, and the loan rates, and you will be notified of the bargains these many lenders are offering. Age In addition to the above reasons, banks consider your age when analyzing a loan form. Banks prefer to lend to people aged 30 to 50 because they are considered financially stable. Those in this age bracket have worked for a while and have plenty of time to repay the loan. People over 60 may have trouble getting a loan and may have to put up collateral before banks will give them one. Loan Amount and Repayment Plan Banks consider the repayment time and the loan amount. A person with a shorter payback duration is frequently preferred. For example, a person who requests a loan repayment time of 2-3 years will be given priority over those who request a longer payback period of ten years, and so on. Credit rating A credit score, also known as a CIBIL score, is a vital indicator of your qualifications for a bank loan. Before applying for a personal loan, you must verify your credit score, or CIBIL rating. While a higher credit score increases your chances of getting a personal loan authorized, it also affects the sanctioned loan balance and loan terms, such as the interest rate and EMIs. Your credit score reflects your financial situation. It provides the lender with a better understanding of your ability to repay debt. A credit score of 750 or more is suitable for getting a personal loan on favorable terms. Rates of interest A slew of lenders may contact you with attractive and slightly low rates. As appealing as this offer may be, be aware that when you select such low-rate loans, you may pay more due to many other unfavorable loan terms. Before applying for a personal loan, you should deeply study and analyze loan rates from several lenders. Another vital aspect is how loan rates are computed. In most cases, loan rates set using the declining balance system are regarded as ideal. Origination fees Loans may have origin costs from some lenders. The fee is a set sum that must be paid once a loan form has been submitted to the bank or verified. Learning the rate at which different lenders charge these costs will assist you in making the proper decision and avoiding expensive fees. Pre-payment fines and foreclosure Other expenses to be careful of are foreclosure and pre-payment penalties. These are fees that apply if the borrower intends to pay off their loan well before the end of the term. While some banks opt not to charge for closure costs, the majority charge between 2% and 5% of the outstanding amount. By comparing these fees, you can find lenders who are the most flexible about full or partial payments. Other costs Review the loan terms carefully to see if there are any other fees, like administrative fees, loan processing fees, etc., that are not listed above. Check the lender’s website or loan form paperwork for these fees. Knowing these extra fees can help determine how much you will be billed when applying for a personal loan. [B-02] Conclusion A personal loan might be an excellent way to solve money troubles. A personal loan could assist you in paying utility bills, medical bills, credit card bills, or school fees. However, it is a critical decision that necessitates careful consideration of several factors. You should consider why you want a personal loan, your goals, assets, and income, previous duties, and your capacity to repay the loan. There are many additional aspects to consider while selecting a personal loan. That has already been explored in this blog; when choosing a lender for personal loans, it is vital to evaluate all of these elements. Commit to a lender that provides reasonable rates and a flexible payback time to ensure your long-term financial wellness. Piramal Finance might be a viable choice for you. You can check out their webpage to check personal loan eligibility and explore products and services.
08-11-2023
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Other

UPI vs. NEFT: All You Need To Know

Net banking tools such as UPI and NEFT have gained popularity in recent years. Internet banking is used in even the most remote parts of the country. However, these can be very confusing at times. Continue reading to learn more about the subject. [B-01] Unified Payment Interface (UPI) Since the demonetisation of banknotes in 2016, the Unified Payment Interface (UPI) has become popular in India. It is a simple and secure method of digital payment. Since it allows for instant fund transfers between two parties’ accounts, UPI has become a popular method of transferring money. Benefits of UPI Here are some of the benefits of UPI: UPI enables online money transfers in real time. Access to multiple bank accounts via mobile is available 24/7, 365 days a year. Provides one-click two-factor confirmation as well as one-click payment. UPI is a far superior alternative, as it eliminates the need for people to rush to ATMs to withdraw money. They can also avoid using the traditionally used method of paying cash on delivery. UPI can be used to pay utility bills and make online payments instantly. How to Sign Up for UPI Payments Below are the steps to follow to register for UPI: Step 1: The user obtains a UPI app of choice from the App Store. Step 2: The user creates a profile by providing personal information. Step 3: The user chooses “Manage Bank Account” to connect their bank and account number with their virtual ID. NEFT (National Electronic Funds Transfer) NEFT is a method of moving funds. It has become a popular alternative to visiting a bank for fund transfers. NEFT helps transfer funds electronically from one bank to another. This mode of fund transfer benefits business authorities and corporations where a large amount of money is exchanged daily. Benefits of NEFT Here is why you should use NEFT: NEFT is a cost-effective method of money transfer. The NEFT system is built on a safe platform. There is no need to use a check or a demand draft (DD) to transfer funds. A fund transfer does not require a trip to the bank. With NEFT, money can be sent electronically and can be completed quickly. How can I make an NEFT transfer? Below is a step-by-step guide for making an NEFT transfer: Step 1: Access your bank’s internet banking page. Step 2: From the home screen, select the “Fund Transfer” option. Step 3: On the “Fund Transfer” page, select “NEFT.” Step 4: Select a beneficiary from the list to send money to. Step 5: To add a new beneficiary, go to the page’s “Add Beneficiary” button. Enter details such as the account number, name, IFSC code, bank branch, and type of account. Step 6: Check and confirm the entered information. Step 7: Confirm the beneficiary addition by entering the 4-digit OTP you received on your registered mobile number. Step 8: The newly added beneficiary will be ready for a fund transfer after the specified time. Step 9: Select the beneficiary, the bank account from which funds must be transferred, and the amount to be transferred. Then click the “Confirm” button to begin the transaction. UPI vs. NEFT Here is the difference between UPI and NEFT: Money Transfer Limit: NEFT does not have a daily limit on the amount of money that can be transferred. But at the moment, the maximum value of a UPI transaction is Rs. 2 lakh. Devices: The only necessity for NEFT is that banks need to be NEFT-enabled. To transfer funds using NEFT, log in to your net banking portal and add your recipient as a beneficiary. Name, account number, account type, and IFSC code must be entered in the Add New Payee section. On the other hand, UPI transactions can be completed on a smartphone that is connected to the internet. Offline Facility: Offline transfers are possible with NEFT but not with UPI. Usage: When it comes to sending money to someone, the Unified Payment Interface, or UPI, is a popular option among many users because it allows you to send or receive money using a scanner, a mobile number, or a UPI ID. NEFT, or National Electronic Fund Transfer, on the other hand, is a popular online money transfer method from one bank account to another. Beneficiary: In contrast to NEFT, UPI does not require the addition of a beneficiary. Sending money is as simple as using a virtual payment address (VPA) or a QR code. A single bank account can also be associated with multiple virtual payment addresses. This cannot be attained using NEFT. Business vs. Individuals: The NEFT mode of fund transfer benefits businesses where a large amount of money is transferred daily. UPI, on the other hand, is widely used for day-to-day exchange. [B-02] In a Nutshell The benefit of UPI is that it’s a real-time payment system that allows for the instant and quick transfer of funds between two bank accounts via a single mobile app. Providing a fast and easy alternative gives users a sense of security, which is very much needed in financial matters. With the banking industry reaching new heights and evolving the way we make payments, people are encouraged to take the required step toward becoming cashless. People prefer to pay with a variety of non-traditional payment methods that can be done over the internet. For more such articles, don’t forget to check out the Piramal Finance website.
08-11-2023
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Personal Loan

Situations in Life Where an Instant Personal Loan Can Be Beneficial

To efficiently handle your monthly income, you must engage in financial planning. And on top of that, there are plans you want to take advantage of. For example, you want to finance a marriage or plan a family vacation. But you need to learn how, and although you prepare for unexpected events, you still have to make tough choices about your money. An instant personal loan might be a lifesaver in such a situation. It can help you deal with a financial emergency by giving you access to additional money within 24 to 48 hours. You can also make interest-free monthly payments this way, even if you don’t have a credit card. [B-01] An Alternative to Cash Advance Loans If you require immediate cash, a personal loan rather than a payday loan can definitely assist you. Payday loans often have a repayment period of two weeks up to four weeks, or until the borrower’s next paycheck is received. Loan repayment deadlines are routinely missed because of the quick turnaround time. The borrowers renew most of the loans, which then accrue more interest on the total instant personal loan. It will result in a larger interest bill. Here are seven instances where you can apply for personal loans. Budgeting for Healthcare Debt can quickly accumulate in the event of an unexpected medical emergency. Your health insurance plan may cover a portion of the bill, but insurers rarely pay for unexpected medical care. A quick personal loan might help cover the basics in this case. In such a dire situation, prompt access to finances is essential. When money is tight, a loan from the bank might be a lifesaver. However, submitting a loan application to a bank might take some time. Instead, pick a website that will let you apply for a personal loan on their site and deposit the money into your account within two business days. Relocation Costs Moving across town can set you back a lot of money. So to help yourself, get an instant personal loan to cover your relocation costs. An instant personal loan can be used for various purposes, including paying for the packing, transporting, and storing of your household goods, as well as covering the cost of moving your vehicle across the country. As a result, neither your savings nor your emergency fund will need to be used. Budgeting for Weddings To pull off a family wedding requires a significant investment of both time and money. These costs typically exceed your budget and force you to look for alternative sources of financing. Not getting the required funds promptly might frustrate you and cause you to postpone your wedding preparations. In a pinch, a fast, instant personal loan might be your savior, allowing you to finish the wedding planning without adding any further burden to your life. Savings Account Sometimes, more is needed even if you exercise extreme caution with your money management. Examples in this category include household expenses and the education of kids. However, you can recover from this temporary setback and get the rest of the month back on track with the help of a small instant personal loan. Home Improvement Renovating your house might cost you a lump sum, and applying for a personal loan is the only way to do that if you don’t want to tap into your fixed deposits. You can receive an instant personal loan for that, and you may use the money you get from that loan to make improvements or other alterations to your residence. Vacation You might have planned a vacation with your family, but vacations are costly. At times, your savings might not be enough to fund the trip. This can delay the process and prevent your family from having a really great vacation. You can take out an instant personal loan. It will give you the finance you need, and you can easily repay it in small installments. Expenses Related to Festivals Indian festivals are known for their luxury. Some events may hold more meaning for you and your loved ones than others. However, festivals sometimes have hidden expenses that you should factor into your annual budget. An instant personal loan may be used for everything from buying gold jewelry to buying party supplies without worrying about draining your savings. You may choose EMI with a fast personal loan, even if you don’t have a credit card. Therefore, you may select a loan period that works for you and pay back the money over time. [B-02] Conclusion An instant personal loan is typical financing tailored to the specific needs of borrowers like you. It provides the financial breathing room to deal with life’s curveballs and regain monetary footing. Still, caution is warranted, as is adherence to the standard practices of responsible borrowing, such as paying EMIs on time and regularly keeping tabs on credit scores. By taking these easy steps, you may build a credit history and increase your chances of being approved for an instant personal loan with higher credit limits. Visit Piramal Housing Finance for more details!
08-11-2023
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Other

Small Business Ideas for Women Entrepreneurs in India with Low Investment

We are moving to a progressive society where women are on par with men in all respects. Women nowadays are more career-minded, talented, and bright. However, the development of women entrepreneurs in India has been sluggish compared to other nations. Still, the transformation appears imminent. Women’s increasing ability to start their own businesses is having an impact on the nation’s economy. There is a growing number of successful female entrepreneurs in the fashion, media, and interior design sectors. Several challenges are specific to new ventures. Most women entrepreneurs in India are the primary breadwinners in their households, but many also secretly have entrepreneurial aspirations. These would-be entrepreneurs might use some advice on how to come up with a workable business plan. Some concepts are obscure, some fuzzy, while others are too unbelievable to be embraced. No, we do not intend to give up our dreams. These frugal small business ideas for women entrepreneurs in India are great to start with and will assist them in developing their businesses over time without leaving their houses. [B-01] Fashion Designing Businesses centered on clothing and jewelry have always been a favorite for female entrepreneurs in India. Do you like designing and sewing your garments? If this describes you, you might make a killing by helping other people realize their inner fashionista through a business you started. As a low-overhead venture, fashion design is a great option for women looking to start their businesses. Set up a small but well-organized studio in your house, and sell your first garments to your friends and neighbors. You can build a successful career by looking at how well-known women fashion designers have done. Daycare Services The opening of childcare facilities and creches is becoming increasingly common as a viable option for women seeking to start their businesses. Frequently, working mothers search for childcare services that create a homelike atmosphere for their children. Women may launch this enterprise from their homes. Bakeries There is a significant market for bakery items. Launching and operating a successful bakery from the comfort of your home is possible if you have a passion for baking and a penchant for experimenting with delicious batters. In reality, all it takes to get a business off the ground is a fraction of the necessary know-how and a few inexpensive tools. Get started by baking some bread, cakes, and cupcakes. Use sites like Instagram and Facebook to advertise your services and solicit word-of-mouth recommendations from your network. Extracurricular Activities for Children This is different from other classes for kids, though. Parents of today (millennials) are increasingly pressed for time, both at work and home, and as a result, they are less likely to take their kids out for fun activities. They always seek new methods to improve their children’s lives, such as storytelling classes, do-it-yourself arts and crafts, creative writing, and spiritual growth. The majority of women have innate skills when it comes to taking care of children. These classes are open to everyone willing to learn, and no prior experience is necessary. As a bonus, starting online courses from the comfort of your home is easy, and employees have a great deal of leeway in scheduling. You may boost awareness of your work by telling your friends and family about it. Social Event Organizer The celebrations continue to grow in scale and splendor. People enjoy celebrating special events, such as birthdays, baby showers, farewell parties, weddings, and corporate functions, with a bit of extravagance and without having to worry about extra hassles. This is where the event planner comes in. This is a great place to begin if hosting parties at home is something you enjoy doing. Photography Some professions, like photography, are propelled solely by the need to create. It doesn’t take long to rise to fame if you have a talent for photography. Nowadays, with the help of digital technology, even amateur photographers can take pictures that look like a professional took them. Having an active profile on platforms like Facebook and Instagram is sufficient for widespread recognition. A photographer’s initial outlay of capital is for the purchase of necessary gear. Photography is now one of the top home-based businesses open to women entrepreneurs in India. Cataloging and Selling Goods Online With the help of online marketplaces, you can buy and sell goods without ever leaving your house but still get your errands done. With the advancement of technology, previously inaccessible resources are now within everyone’s reach. Another option for women entrepreneurs in India is to sell their wares on online marketplaces like Amazon and Flipkart. In today’s economy, women can showcase their talents and earn money through online marketplaces like Etsy. Vendors sell a wide variety of goods, including soaps, candles, and unique handmade creations. If you can prove your creativity, you will be compensated quickly. That’s the whole deal. Cooking A majority of Indian women tend to be excellent cooks. They are driven to be better cooks by their desire to provide their families with nutritious and tasty meals. A lot can be learned about new flavors and textures by merely experimenting in the kitchen. One of the most frugal ways for women entrepreneurs in India to start their businesses is through the culinary arts. Initiate your culinary career by enrolling in cooking classes and posting photos of your culinary creations on social media. Providing food delivery services from your kitchen could be a simple way to start your own business. [B-02] Conclusion Deck out the area with toys your children have outgrown and turn it into a play zone for toddlers. An eye for detail and compassion for children (women are merely equipped with these senses) are all that you need to transform this small business idea for women entrepreneurs in India into a prosperous one. Consult a finance expert at Piramal Housing Finance for more queries. They will gladly assist you.
08-11-2023
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Home Loan

Most Recommended Smart Ways to Manage Your Home Loan EMI

Have you been searching for the best way to manage your home loan EMI? How precious is managing your money? How do you choose the best method to manage your EMI loans? We have the most suitable solutions for your questions. Here, you get to know some of the best ways to manage your housing loan EMI. Here we learn about the consequences of some effective ways to lower your home loan EMI. [B-01] Smart ways that help you manage your home loan EMI Good money management For newly married couples and families, taking out a home loan might be a strain. It’s crucial to choose wisely when it comes to your money while taking out a home loan. Calculate and consider whether accepting the credit is appropriate for the family’s support. Keep track of all your investments. If there are any investments that you believe are superfluous, you should just close them. This will enable you to concentrate more on your mortgage. Payment in part Partial payment is a better choice, but not many people are aware of it. As a result, in a partial payment, you make monthly fixed payments to your home loan rather than the EMI. This lowers the cost and duration of the home loan as well. Select a mortgage with reasonable interest rates. This is another smart way to make it easy to pay your EMIs on your home loan. The EMIs on a home loan will be easier to pay if the interest rate is low. So, before picking a home loan, you should look at the interest rates and offers from other lenders. If you have a good credit score and have known your banker for a long time, you can use this to your advantage and ask for a lower interest rate. In this way, you can bring down the cost of your mortgage. Change the interest rate to one that is lower. Keep an eye out for changes in the way interest rates move and stay informed. As soon as you see a drop in your interest rate, you should think about switching to one that is lower. In general, different banks cut their rates at different times depending on when the interest rate resets. If your lender has a large reset interest band, even if other banks start lowering their rates, you may still have to pay a high-interest rate for a while. In essence, the magic is in knowing what’s going on in the market. If you switch to a lower interest rate than the one you have now, you will pay off your home loan faster. Investigate before applying Choosing the right lender and figuring out the right amount for your home loan in advance are two smart ways to handle your home loan EMI. When the size of a home loan goes up, EMIs tend to go up as well. Decide how much you can afford to pay each month. Then look for lenders who offer better deals based on that amount. Even a small drop in interest rates can be a relief in the long run. Before picking a home loan programme, you should think about both the pros and cons of flexible and fixed-rate loans. Always make your home loan payments on time. Your credit score will be impacted by unpaid EMIs, and you will be penalised. Such defaulters are noted by lenders. They also give the credit bureaus this information. So, one of the wise suggestions for managing your home loan EMI is to avoid falling into such a questionable group. Speak with your lender to request an EMI break if your finances have suddenly suffered for whatever reason. In some circumstances, lenders could permit their clients to postpone making EMI payments for a shorter period. Reduce the burden through refinancing. Replacing an existing home loan with a new one because the new lender offers a better term is the main goal of refinancing. Refinancing home loans is a common practice among borrowers to reduce EMIs, shorten home loan durations, or even change the program’s features altogether. A processing fee will be charged for this transfer, though. Therefore, determine whether the money you will save in the long run will be greater than the extra expenses you would face now. Keep your paperwork organised. Always keep an eye out for and keep your key financial paperwork current. Your numerous home loans will be simpler to manage as a result. [B-02] Summing-up This article’s goal is to provide a thorough analysis of crucial considerations when choosing the best method for managing home loan EMI. As we all know, managing your home loan EMI is very important. You must decide how to best manage your home loan EMI. If you want to handle your home loan well, you need to learn how to handle money. Take out only what you can comfortably pay back, and do everything you can to pay off your mortgage and other debts as soon as you can. It’s important to think about the things listed above before deciding which method to use. Also visit Piramal Finance for more in-depth, educational articles.
08-11-2023
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Investment

What are the Factors to Keep in Mind While Choosing a Good NPS Scheme?

Are you a retired employee or nearing retirement? Are you thinking of applying to the NPS scheme? Do you want to grow your money? Have stable returns? Read about the National Pension Scheme to learn more! The National Pension Scheme is an Indian government initiative. The NPS plan was designed for employees who want to ensure their financial security. It reduces the investment risk. The National Pension Scheme also provides good returns. There are a lot of perks to this pension scheme. You should think about these things before deciding on an NPS scheme to apply for. [B-01] What is an NPS account? The National Pension Scheme is a programme created for retirees who want financial stability. The NPS scheme was launched in 2004 only for government workers. NPS became available to the general public in 2009. Those between the ages of 18 and 65 have the option to invest in the NPS scheme. Your funds will be invested across four different asset classes. Upon maturity, you’ll have a reliable source of income from which to meet your obligations. Under NPS, the pension scheme is split between two separate accounts, Tier 1 and Tier 2. Tips to Keep in Mind Before Investing in NPS Scheme The National Pension Scheme is immune to market volatility. There are still a few things you should know before investing in an NPS scheme. A New Pension Scheme to Replace the Old The previous pension schemes for government employees in India were replaced with the National Pension Scheme. It may not be as profitable as older pension schemes. Limits on withdrawals In the case of a Tier 1 account, no withdrawals are permitted until maturity. Withdrawals in one lump sum are permitted only under special circumstances, like: Marriage of offspring Spending on college education Treatment for life-threatening illnesses Building and construction: It’s vital to note that you have to wait until your Tier 1 account is at least 10 years old before you can make a partial withdrawal. You can only make a partial withdrawal from your Tier 1 account three times. Withdraw Taxes at Maturity Individuals can take out 60% of their investment upon maturity under the National Pension Scheme. The remaining 40% is used to buy an annuity. But you’ll have to pay taxes on that 60% withdrawal you made. Earnings from annuity purchases are still taxed. For each individual, only one PRAN There is a strict limit of one NPS account per person. As a result, each individual should only have one PRAN. Financial Resource Limitations Investment caps are also in place under the National Pension Scheme. This cap has been established to protect the individual’s ability to meet their other financial obligations. The Return on Investment from NPS Is Affected by the Market There are four distinct investment options available to NPP participants: equity, government securities, corporate bonds, and alternative investment funds. The rate of return used here is based on current market conditions. Your NPS returns may suffer if the market takes a severe hit. Equity Most of the money in the NPS scheme is invested in the stock market, which offers a high risk but a potentially great return. Financial Obligations of Businesses In this case, investors usually put their money into corporate bonds or other fixed-income securities. Investors should expect a return on their money that is roughly equal to the amount of risk involved with this profile. Governmental Debentures The fund only purchases U.S. Treasury bonds and other government securities. These are what are known as “low-risk, low-return” funds. Different Types of Investment Funds This type of investment includes things like real estate investment trusts, mortgage-backed securities, infrastructure investment trusts, and so on. The active fund permits shareholders to keep as much as 75% of their capital in equities and 5% in alternative investment vehicles until age 50. After age 50, the equity part will decrease by 2.5% every year, reaching 50% at age 60, even if you are very aggressive with your investments. Younger investors would benefit most from the increased stock allocation. But a conservative investor only needs to own government and corporate debt. Option-based NPS Auto-Selection Investors who want their money spread out among various asset classes will find the auto-selection NPS most useful. The money allocation starts with a high equity portfolio. This starts at a young age. It diminishes the equity instruments as the subscriber approaches retirement age. The Aggressive Life Cycle Investment Fund Seventy-five per cent over thirty-five is the maximum allowed for equity allocation. From there, it declines to 15% by the time you’re 55. Mild life cycle investment fund Up until age 35, a maximum equity allocation of 50% is allowed. By the time a person is 55 years old, the number drops to 10%. Life Cycle Fund with a Conservative Attitude The top ceiling of equity allocation is 25% up to the age of 35. By the time you’re 55, it’s down to 5%. The above are the three alternatives available to the subscribers in the “auto-choice” category. At the end of each year, the portfolio is rebalanced. Equity, corporate debt, and investment securities are purchased using the available investment budget. [B-02] To summarise The purpose of this essay is to present a comprehensive study of factors to keep in mind before choosing a good national pension scheme. To grow your money, invest. Consider the NPS scheme. Before beginning an investment scheme, research the scheme and its provider. Leave no National Pension Scheme policy unread to avoid confusion. Start planning your post-retirement finances by learning about NPS. If the benefits meet your risk profile and investment goals, consider NPS. If you want more equity exposure, there are various mutual funds for a variety of investors. Also, visit Piramal Finance. It has more in-depth, finance-related articles. Keep reading to know more about finance and how one can grow money!
08-11-2023
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