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Personal Loan

How Can You Split the Principal and Interest in an EMI Loan?

Taking out a loan is a big step, and matters like these are very important. One should always be familiar with the terms used, notably EMI, principal, and interest. These factors combine to determine how much it will cost to repay the loan. Adding the principal and interest together gives the total money to be repaid. Read ahead to find out how to split an EMI loan. [B-01] What is EMI? An Equated Monthly Instalment (EMI) is a fixed monthly payment made by a borrower to a lender on a given date. Each month, equal monthly instalments are shared with the interest and the principal so that the loan is paid off in full over a given number of years. Intending to finish the loan, the borrower makes a fixed payment during a set interval of time with the lender. What Exactly is the Principal? The initial amount of money lent to a borrower is called the “principal.” Take out an INR 550,000 mortgage to buy a house, for example, and the principal is INR 550,000. However, that is not the total amount required to be repaid. The lender must include interest to determine the actual cost of borrowing that money. Explain the Term “Interest” In addition to the loan, interest is the percentage charged to the borrower for borrowing money. This is often referred to as the annual percentage rate (APR). The interest is a fee paid to a lender for borrowing money and is usually calculated using an annual percentage rate. You can calculate the APR as a percentage of the loan’s total principal balance. It is important to understand how each EMI is allocated to principal and interest repayments because many important decisions are affected by how the EMI is placed. Use an Excel spreadsheet to calculate the principal amount from an EMI. The PMT function in Excel can be used to calculate the EMI value, which has the following syntax: =PMT(RATE,NPER,PV,FV,TYPE) For example, if you want to find the EMI value for INR 100,000 loan that is payable over 5 years (i.e., 60 monthly instalments) at a 12% p.a. interest rate, enter the following formula into a cell in an Excel spreadsheet: =PMT(0.01,60,100000,0,0); It should be noted that the rate used in the formula should be a monthly rate, such as 12%/12=1% or 0.01 in the example above. It’s also worth noting that the function’s final two parameters (FV and TYPE) are optional and, if omitted, are assumed to be 0. Separate the principal and interest elements for each month using a calculator. Use the following formula to calculate the total interest: Principal loan amount x Interest rate x Time (aka the number of years in the term) = Interest. For example, if you take out an INR 20,000 five-year loan with a 5% interest rate, the simple interest formula is as follows: s INR 20,000 x.05 x 5 = INR 5,000. Factors on Which EMI Depends a) The EMI is determined when the loan is approved and remains constant throughout the loan term, assuming that none of the factors on which it is calculated change. b) If interest rates change, the EMI may change. It is also possible to maintain the same EMI while increasing or decreasing the loan tenure to reflect changes in interest rates or loan prepayment. c) The EMIs are designed in such a way that the interest portion accounts for the majority of the payments made in the first few years. In later years, the primary component rises. Tips for Reducing Interest Burden While Repaying the Loan: a) Make sure that the principal amount is repaid as soon as possible. The lower the principal amount (due to earlier repayment), the lower the amount of interest to be repaid. b) The borrowed party can also pay one additional EMI per year (in addition to the usual number of EMIs). This is a useful method for reducing the length of the loan and, as a result, the interest cost. c) Choosing an EMI that one can afford through a shorter loan term results in a lower interest payment. It also increases the EMI burden. As a result, when deciding the loan EMI amount, always keep the budget in mind. The Benefits of EMIs Because the monthly payment is already known and broken down over the loan term, the EMI option will not be a financial burden and will allow the borrower to make other investments. EMIs calculators will allow one to calculate monthly outflow based on the principal amount, the interest rate charged, and the period. It is simple to plan for other expenses. Negative Aspects of EMIs In addition to the interest cost, the lending party may charge extra in the name of the processing fee. Missing an EMIs can have serious effects. The lender has the legal right to take over the mortgaged asset if failed on payments. Conclusion The principal is the loan’s original amount, and interest is the added charge one pays to borrow it. The principal and interest determine the total cost of a loan and the length of time it will take to pay it off. With this, one can go forward and make sound decisions regarding financial management to fulfil the desires. [B-02] FAQs 1) Can people with poor credit get loans? Yes. One does not need to have excellent or even good credit to obtain a loan. Credit-builder loans are intended for people who have no or little credit history. People with bad credit can also obtain loans. 2) Does EMI include interest and principal? Yes. EMI consists of two terms: principal and interest. EMI is the payment the borrower makes as a repayment of the sum borrowed. How can we use the EMI Calculator? 3) The following is the exact EMI formula for calculating EMI amounts: (P R/12) [(1+R/12)N] / [(1+R/12)N-1] = EMI P = principal (the amount borrowed); R stands for Annual Interest Rate. N is the number of monthly instalments. Dig into Piramal Finance for more knowledge.
08-11-2023
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Personal Loan

Risk Factors Involved in Financing your Holidays With a Personal Loan

In life, there might be situations in which one feels the need to take out a loan. This is the most accessible and convenient option. The list for this can be quite long. It can be for medical expenses, financing items, consolidating debts, etc. There are many loans that one can choose from depending on their needs. The most common one is a personal loan. It is also known as an “unsecured loan.” It is an open-ended loan and can be used for almost anything. In case one is planning to go for a lavish abroad trip on loan, there are a few things to consider. The idea of being able to go on a luxurious holiday on loan seems quite lucrative. One can easily avail themselves of a personal loan for holiday. But there are a few risk factors that one must know before applying for a loan. [B-01] What are the risk factors involved? The rate of interest: The fact that someone qualifies for a loan does not always imply that they should take it. It should be well-researched. The rate of interest for some loans can be less than 10%. On the other hand, there are few for whom the speed is relatively high. Most of the time, the rate of interest is fixed depending on the credit score. However, this particular law of improving the rate falls under the lender’s duty. So they can charge whatever they want to. One needs to be careful when checking the APR, i.e., the annual percentage rate. It can show manipulated data. Hence, it is best to check the total amount to be paid. It should include additional charges, interest, and the principal throughout the tenure of the loan. Knowing the ultimate cost of the loan is a better way. Know about the penalty charged for early payoff: Can a person lawfully pay back the loan before time? Will there be any charges associated with it? It depends on what kind of loan has been taken. If one is willing to take a personal loan for a holiday, then such research must be done. The loan can be taken from a bank, a P2P (peer-to-peer) lender, or even some agencies. They are paying off the loan before it is due, which should ideally be their target. So, to do so, one must carefully go through the fine print. It must be made sure that no such penalties are charged, and even if they are, they should be minimal. Big upfront fees: What money does one need to spend to get the loan in their account? The upfront fees can widely vary from one lender to another. One must ensure that the upfront payment is fair and in line with the market level. Several providers have a varying range of fees. So, it is essential to do research and not take the first loan that gets approved. There are privacy concerns: Loan unions and banks have some stringent laws for privacy. Many more options need to be more formal. But they are expected to maintain all the privacy laws laid down by the banks. Insurance pitch: There are many personal loan options that salespeople pitch. It has extra insurance for the loan to be protected in case of unexpected events in life. It might hamper the chances of someone repaying the loan. In this case, one can contact a trusted agent and ask for a quote on disability insurance. It will be relatively cheaper that way. It would also give them better coverage. Interests that are precomputed: The initial payment schedule is used to calculate interest using precomputed interest. It is independent of how much the loan has already been paid off. On the other hand, simple interest bases the claim on what is left to be paid off as of the current date. It is essential to check how the lender calculates the interest. One should opt for simple interest if one looks forward to paying off the amount before the completion of the term. If one is taking a personal loan for holiday, then such research must be done beforehand. Payday loans: Is anyone interested in taking a personal loan for holiday that is short-term? Then it is easy to get tempted by the payday loan. This offer might seem lucrative, but government agents and financial gurus advise against opting for this loan. The interest rate is quite high. It is also planned so that one will have to roll over the loan for an extra term. Unnecessary complications: Taking a loan is a really simple process. A person gives a certain amount to someone, and that needs to be paid back with interest. If an agency makes a lucrative offer, it is important to understand that they will never lose money on behalf of their clients. They are here to do business, which is all about making money. Personal loans are quite basic and easy to understand. If it is not, then it is a matter of concern. [B-02] Conclusion Loans are going to make a profit only for the lenders. The borrowers need money and have a convenient way to borrow the required amount. That does not mean they have a profit. So if one is taking a personal loan for holiday, it should be justified. If one is looking for a finance agency, Piramal Finance is a good personal loan or financing option for buyers.
08-11-2023
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Personal Loan

Is It Possible To Get A Personal Loan For Studies Abroad Without A Mortgage?

Personal loans for studies abroad are a popular form of loan to pursue your higher studies. This is especially the case with Indian students. Because of how easy it is to apply for a personal loan, many students choose this option, which is mostly done online. But for students without collateral, there are still personal loans they can apply for to finance their education. While most banks require collateral, there are some banks and other financial institutions that offer personal loans with no mortgage required. This article explores these options and how to prepare your documents to apply for these loans. [B-01] What Is A Mortgage Or Collateral? To know more about a personal loan for studies abroad without a mortgage, it is important to understand what a mortgage is. A mortgage is an asset that borrowers can keep as security against their loan amount. Mortgages can include a fixed deposit, real estate, gold, agricultural land and so on. Various banks in India provide an overseas study loan without a mortgage up to a certain amount. It has been shown that a personal loan with no mortgage has a higher interest rate and a shorter repayment tenure. Types Of Personal Loans Personal Loans With Mortgage Or Collateral A loan with a mortgage or collateral requires the borrower to pledge assets to obtain and secure their loan. This asset can be in the form of a house, property, jewellery, insurance policies, fixed deposits and more. The mortgage is taken to protect the lender’s money and provides security if the debtor fails to pay back the loan. Often, such loans help the borrower to get a loan at a cheaper interest rate. It should be noted that collateral security is not required for personal loans up to Rs. 4 lakhs. Only when the loan exceeds a certain amount will security and a guarantor be required, and this amount is established by the lender. Personal Loans Without Mortgage Or Collateral A personal loan for overseas studies without collateral does not need the debtor to offer assets as security. Borrowers must provide relevant documents and meet applicable standards and eligibility criteria. These standards are set by the bank or lender and must be met to take personal loans without collateral for studying abroad. Documents Required For A Loan With No Mortgage The following documents must be submitted to the lender when applying for a loan with no mortgage: The loan application form Proof of family income (income tax returns, property proof, etc.) Standardized test results Transcripts of academic work Aadhaar card (and/or other KYC documents) Birth certificate 6-month bank statements PAN card Acceptance letter from the university or institution Declaratory statement Eligibility Criteria For A Loan With No Mortgage A personal loan without a mortgage for studies overseas requires applicants to satisfy the following criteria: A minimum of 60% in high school is needed to ensure employability Income of a financial co-applicant Official documents related to the degree program in which the student desires to enrol Application Process For A Loan With No Mortgage This is the application process for a loan without a mortgage being offered: Research the different lenders and the loans they offer and carefully go through their details including the terms and conditions. Choose the best personal loan lender without a mortgage. Examine all terms and conditions, such as the moratorium term, payback tenure, education loan interest rate, and so on. Go to the official website of the lender you have selected. The online application option makes it easy for people to apply for a personal loan from the comfort of their homes. Complete the application form. Scan and submit the necessary documents. Is It Possible To Get A Personal Loan To Study Abroad With No Mortgage? Public banks like State Bank of India, Bank of Baroda and others provide such loans of up to Rs. 7.5 lakh. Private banks including ICICI Bank, Axis Bank, HDFC and others also offer loans to a certain limit without collateral, sometimes up to Rs. 40 lakh in some cases. Private banks have payback terms of 10 to 12 years and the interest rates are between 10 to 12%. Other creditors that offer loans include NBFCs such as Incred and Auxilo. These NBFCs provide students with loans without collateral of up to Rs. 40 lakh as well and the interest rate ranges between 10 to 18%. Some international lenders include Leap Finance and Prodigy Finance. They assist borrowers by providing an education loan without a mortgage. This loan can be up to 80% of the overall cost with interest rates that range from 10% to 16%. Top Indian Banks Providing Loans With No Mortgage HDFC Bank Up to Rs. 30 lakh for domestic education Up to Rs. 45 lakh for foreign education No collateral is required for loans up to Rs. 7.5 lakh ICICI Bank Up to Rs. 50 lakh for domestic education Up to Rs. 1 crore for foreign education No collateral is required for loans up to Rs. 20 lakhs for undergraduate degrees and Rs. 40 lakhs for postgraduate degrees Bank of India Up to Rs. 10 lakh for domestic education Up to Rs. 20 lakh for foreign education No collateral is required for loans up to Rs. 7.50 lakh HSBC No collateral is required for loans up to Rs. 5 lakh State Bank of India (SBI) Up to Rs. 15 lakh for domestic education Up to Rs. 1.5 crore for foreign education No collateral is required for loans up to Rs. 7.5 lakh. Punjab and Sind Bank Up to Rs. 15 lakh for domestic education Up to Rs. 20 lakh for foreign education No collateral is required for loans up to Rs. 4 lakh IDBI Bank Up to Rs. 20 lakh for domestic education Up to Rs. 20 lakh for foreign education No collateral is required for loans up to Rs. 4 lakh [B-02] Conclusion For students who want to study abroad but lack the finances, securing a loan is one of the most important aspects of their education plans. For the many students who require a loan but do not have any assets to offer as collateral, multiple lenders will provide a loan without any collateral. If the student meets the eligibility criteria, they can apply for a loan and improve their chances by preparing their documentation well and researching all their options. For more articles like this, visit the Piramal Finance website to read more about getting personal loans with no mortgage.
08-11-2023
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Personal Loan

Why People Mostly Opt For Personal Loans Compare To Other Loans

Huge financial expenses may not show up when you are prepared for them. Instead, they might crop up when you’re least prepared for them. At such times, the best way out is to apply for a loan. Nowadays, you have many ways by which you can get a loan as per financial requirements. However, as recent trends have shown, more and more people are opting for personal loans compared to other loan types. But why is it so? To answer this query, here’s an article that seeks to discuss in detail the various reasons that can be attributed to the popularity of personal loans among the masses. It also draws a contrast between personal loans and other types of loans to help you understand why personal loans are better than loans. Hence, without further ado, let’s get started! [B-01] 6 Reasons to consider Personal Loan over other loan types Following are some of the reasons to consider personal loans over other types of loans: 1. Debt Consolidation One of the most popular uses of a personal loan is debt consolidation, particularly credit card debt. Personal loans charge an astonishingly low-interest rate compared to credit cards if you have a good credit score. Hence, you can easily use this low-interest financial product to clear off high-interest debt. 2. An alternative to payday lending If you need cash to cover an emergency, a personal loan can be the best alternative to a payday loan. Payday loans are usually used for borrowing small amounts of money to meet your immediate expenses until you get your next paycheck. Although you don’t need loan collateral for payday loans, they are usually very expensive. Payday loans are also known as predatory lending because these loans have very high-interest rates, have hidden provisions that require the borrower to pay additional fees, and do not consider a borrower’s ability to repay the loan amount. On the other hand, personal loans have much lower interest rates and fees than payday loans. Personal loans also offer more time to repay the loan amount than a payday loan, which must be repaid as soon as you receive your next paycheck. Moreover, unlike a payday loan, a personal loan does not involve hidden charges. In addition, while you can use a personal loan to improve your credit history, provided you repay the loan amount in time, a payday loan doesn’t help you improve your credit score. This is because payday loan lenders often don’t report the lending to the three major national credit reporting bureaus. This means that payday loans don’t show up on your credit score report. Personal loans not only boost your credit, but an improved credit score will also qualify you for better loans and interest rates in the future. 3. Home Repairs and Improvement Homeowners can utilise either home equity or personal loan to fix damages or upgrade their homes. However, as opposed to unsecured personal loans, a home equity loan is a secured loan. This means that a home loan would use your home as loan collateral. If you fail to repay the loan timely, you will lose your home. On the other hand, since a personal loan is an unsecured loan which means that it doesn’t require loan collateral, you won’t have to worry about losing your home if you fall behind on loan repayments. In addition, compared to a home equity loan, you can more easily and quickly secure a personal loan. Moreover, if you use the personal loan amount for home construction, renovation, or for making a down payment for your house, you can claim tax deductions of up to 2 lakh as per Section 24 B of the Income Tax Act, 1961. However, this tax deduction is subject to certain terms and conditions. 4. Vehicle Financing You can secure an auto loan for buying or leasing a car. However, since personal loans can be used for a wide range of purposes, you can also use them for leasing, buying, or repairing a vehicle. Although auto loans usually have lower interest rates as opposed to personal loans, auto loans are secured loans and thus use your vehicle as loan collateral. On the other hand, personal loans are unsecured and do not require collateral. Hence, if you are worried about missing your loan repayments and getting your vehicle repossessed, then availing of a personal loan might be the wisest choice for you. 5. Quick Disbursal Since it is mostly in times of financial need, you tend to look for taking loans – the quicker the loan is disbursed, the better. However, not all loans are disbursed quickly. The disbursal period of a home loan is about 3 to 4 weeks. On the other hand, the period of a personal loan is merely 24 hours to 72 hours. However, you must have a good credit score and meet the required eligibility criteria to get your loan disbursed quickly. If you satisfy these two requirements, personal loans are doubtlessly the best financial product for addressing urgent payment or cash requirements. 6. The versatility of Personal Loans A personal loan, unlike other loans, can be used for a wide range of purposes. It can be described as a multi-purpose loan. Banks and lenders don’t impose restrictions or limitations on the end user. This is one of the best things about a personal loan. On the other hand, home loans can be used only for housing purposes, such as buying or building a home or renovating a house. Similarly, an auto loan cannot be used for anything other than buying a car. However, you can use a personal loan to buy a car, build or buy a home, repair your home, and so on. [B-02] Conclusion Personal loans undoubtedly stand out among many loan options due to their unique features. Hence, it is no wonder that more and more people are availing of personal loans as opposed to other types of loans to meet their financial needs. However, before opting for a personal loan, thoroughly review your financial condition to check whether a personal loan is an ideal option for you. Always remember that borrowing money must not be done on a whim. The good news is that you can now apply for a personal loan from Piramal Finance. It is a registered finance company that provides hassle-free, quick, and easy personal loans with zero prepayment and foreclosure charges. Their team of expert advisors would also help you through the entire loan application process, thus ensuring fast approvals and quick disbursals in your account. Piramal Finance also guaranteed minimum documentation and pocket-friendly monthly EMIs. For further details, visit the official website now!
08-11-2023
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Personal Loan

What are the hidden charges of a loan?

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

How to Secure Your ATM – Tips and Measures

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

5 Tips to Attain Financial Peace in Your Life

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

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

Top and Best Performing SWP Mutual Funds In India

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