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Business Loan

Steps to Getting an Entrepreneur Business Loan in India

Are you applying for an entrepreneur loan in India in 2022? Want to know more about what an entrepreneur loan is, what its benefits are, who should apply for one, etc.? Then, this article is the right place for you to dive in. In this article, you will get to know the actual meaning of an entrepreneurial business loan, its features and benefits, the eligibility criteria, and how to apply for it. [B-01] Features of an Entrepreneurial Business Loan An “entrepreneur loan” is a type of loan that is only sanctioned to business companies and startups for meeting their business expenses. With an entrepreneur loan, you can take out a loan to invest in your business venture in order to improve the quality of your goods, buy new technology, invest in your infrastructure, etc. Since entrepreneurship is on the rise in the 21st century, these types of loans are frequently taken. The lender doesn’t require any type of collateral or security deposit while giving you the loan. For small, emerging business ventures, banks provide business loans to help them increase their market value, shares, profit margin, etc. In exchange, you must repay the debt in installments over a specified period of time. Benefits of an Entrepreneur Loan Here are some of the exclusive benefits of taking a business loan: Less burden while paying instalments When you apply for a business loan, banks frequently offer the tailoring option to reduce your burden while repaying the instalment. There is an option called the Flexi facility, which reduces the burden of monthly instalments and will help you pay off your debt easily. No requirement for collateral Banks don’t ask you for collateral or a security deposit while you’re applying for an entrepreneur loan. This is another advantage to help you skim through it in case you lack a property or shares to use as collateral. High loan amount Many banks allow you a higher limit of up to Rs 50 lakh, which is a huge amount for business startups. This amount solely depends on how well your business is supposed to do in the future. If you have a good scope and a promising future in the venture, you are more likely to get a handsome amount as a loan. Low-interest rates Interest rates on business loans are comparatively lower, and a low rate of interest is all that you need. The range is somewhere between 15% and 20% per year, which is reasonable for an entrepreneur loan. Quick disbursal Another advantage is the quick disbursal of money in an entrepreneur loan. As soon as you get access to the amount, you can use it to buy assets for your business or invest in goods. Quick approval The approval period is also pretty fast for an entrepreneur loan, which is mostly within 1 to 2 days. If you have good prospects and your venture has a promising future, you can even get approved in less time than that. Long repayment tenure The repayment tenure on an entrepreneur loan is mostly 5–8 years, depending on the bank. In some cases, the period goes up to 10 years or even 12 years, which means you will have ample time to repay your loan. Pre-approved offers You might even get pre-approved offers if the banks know that you have a business that is going to do well in the near future. Another reason for getting a pre-approval loan could be your clean credit history and excellent credit score. Eligibility Criteria for an Entrepreneur Loan Here are the eligibility criteria that you must fulfill to apply for an entrepreneur loan: Age limit You must be at least 21 years old to apply for a business loan and be under 65 years old. Some banks start at 25 years, while some close before 60 years, which remains highly subjective. Minimum turnover To qualify for any type of business loan, your company must have a minimum annual turnover of around Rs. 40 lakhs. This amount again depends on the bank where you apply, but Rs 40 lakh to Rs 50 lakh is the benchmark requirement. Business type Either you can be a person who is self-employed, a proprietary individual, or you can have private companies or partnership firms that are dedicated to manufacturing, trading, or providing services. Nuanced business ventures are taking over traditional business these days, which is why banks look for these types of businesses. Business experience The total business experience of the individuals in the current business must range from 3 to 5 years if you are looking to apply for an entrepreneur loan. Make sure that you are currently in the same business for which you are applying for a loan. Minimum annual income Your business, for which you are applying for a loan, must earn at least Rs 1.5 lakh per year. This is the minimum requirement to qualify for any type of business loan. Things to Keep in Mind While Applying for an Entrepreneurial Business Loan You should always attempt to improve your marketplace, which will have an impact on the minds of the lenders. You should make sure that your business has a high value and is going to make good profits in the near future. Another thing is improving your business experience as much as you can. Since an entrepreneur loan is still a debt, you should invest wisely in it to make good profits and take your business to the next level. [B-02] Summing Up Business loans in India are on the rise because of the emergence of various startups. Government schemes have also shown up, which have helped over 39,000 business startup ideas scale up. If you like reading articles and blogs on these topics, you should make your way to Piramal Finance. The blogs on this website are filled with information regarding investment, finance, SIPs, loans, etc.

08-11-2023

Stocks Markets

What are the Types of Stock Market Trading?

Stock market trading is among the most profitable investment opportunities in the world. Millions of traders go to stock markets to try their luck and trade talents daily. Though some learn the methods of the game and earn many profits, others lose money in the market. Traders often enter the stock market without determining which trading style is best for them. This article covers the many types of stock market trading to assist you in making better judgments and earning reasonable profits. So, to clear the air, let’s go through the many sorts of stock market trading in depth. But before that, let’s learn what trading is. [B-01] What is Trading? Trading is the gear that turns the economy’s wheel. It is the exchange of products and services between two or more entities in exchange for another product or money. A market is a location where trade occurs. There are both organized and unorganized markets. The organized market adheres to rules and regulations that all entities must obey. There are government bodies overseeing the preservation of market integrity. An unorganized market lacks regulations and authority. Trading in the stock market today refers to the buying and selling of stocks of publicly traded firms on the stock exchange. These stocks are traded on both the main and secondary markets. Five Types of Stock Market Trading The stock market is a sea of options for traders who like taking chances. If properly planned and carried out, it is very profitable. Trading styles might vary hugely since each trader has a distinct identity. Here are five types of stock market trading to choose from: Intraday Trading Day trading and intraday trading are the same. This trading involves buying and selling stocks on the same calendar day. It plainly states that if an owner buys a certain number of shares on a given day, traders must simply sell them before the offer expires. With this type of trading, investors can use margins by obtaining broker credit. Due to its short duration, this trading has a modest level of risk, but it might become harsh if the trader employs an excessive margin. Also, since this trading enables traders to receive payments with modest margins, it requires relatively less capital commitment. Delivery Trading Delivery trading is a long-term equity plan and is regarded as one of the safest methods to participate in the stock market. It is the most frequent kind of trading done in the stock market today. Investors engage in delivery trading to hold onto the equities traders have already acquired for longer. In contrast to intraday trading, this trading does not enable the use of margins. And the investor must have vital cash. This sort of trading requires full payment from the investor for all trades. Delivery trading requires the supply of stocks to a specific Demat account. It does not impose any time restrictions on equity dealing. Positional Trading Positional traders, like day traders, judge a stock’s trend before buying it. This trading does not allow selling first and buying later, as day trading does. It is a medium-term strategy for bold investors who can disregard short-term market volatility and rely on long-term rewards. When a positional trader sells an asset, people are bound to pay Demat trading fees. Some of these traders study the stock’s price movement to determine the exit and entry positions. They create resistance and support lines on a chart to grasp the stock’s trajectory. Some positional traders use hints to predict the future stock’s direction. Scalping There may be up to a hundred trades daily on the stock market. When scalping, a trader aims to make modest but large daily gains. The stakes are only kept for a short period of time. While scalping is a trading strategy used to increase earnings, it is not always viable. The losses may outweigh the rewards. Scalping calls for expert market know-how, much like day trading. Momentum Trading By following the momentum of equities, traders attempt to earn money on the stock market via momentum trading. The goal is to sell a stock while it is moving up so that you may obtain returns that are higher than average. The plan is to purchase stock in huge volumes while it is trending lower and then sell it when its price rises. The Impact of Internet Trading on the Stock Market Online trading services have helped popularize stock trading tremendously. It has made data and analysis available via smartphones and laptops. As many trading methods are available, you may choose the ideal one based on your profit goal, tolerance for risk, and equity goal. Needs for Stock Market Trading The first step in trading on the stock market is to open a Demat and trading account. On the stock market, direct trading is not permitted. You may create a Demat and trading account with a stockbroker who is a member of the stock market and SEBI (Securities and Exchange Board of India). A share market trading account allows you to make stock exchange transactions, while a Demat account stores shares digitally. Both are needed to begin trading in the stock market. You will need a bank account, PAN card, identity proof, and domicile to create these accounts. How can you start an Online Stock Trading Account? To create an online share trading account, you must first complete the following steps: Provide all relevant data, such as your PAN and bank account data. Upload the needed papers. E-sign the form. Fill up a form and begin trading in the stock market online. [B-02] Conclusion With the introduction of the internet, traders may now trade on the NSE and BSE from anywhere in the world. With more trading alternatives accessible, traders have a better chance of profiting than ever before. Now that you know about the many types of trading, it’s time to put your knowledge to use and create gravity-defying gains. For more blogs on stock market trading, check out Piramal Finance and explore their products and services.

08-11-2023

Tax

What Are the Types of Taxable and Non-Taxable Income?

Unless the rules specify otherwise, any money you receive is taxed. According to the IRS, taxable income covers both earned income, such as wages, and money received from trading or the trade of goods or services. Like other unearned income, such as taxes, rental income is levied on profits, interest, and Social Security. People getting a salary and other forms of income are taxed differently. You gain from e-filing your income taxes. However, you must still report the pay earnings in a form, either online or offline, to submit the returns, and knowledge of income granted by bosses to cover many costs might be helpful when filing the returns. Let’s now learn more about taxable and non-taxable income definitions and types. [B-01] What is Taxable Income? Taxable income is any payment a person or firm receives to calculate tax duties. The total income amount, also known as gross income, is used to compute how much the person or firm owes the state for taxes. One thing to keep in mind about taxable income is that it covers not just pay but also other types of salary, such as bonuses, permits, sales, and capital gains. Let’s know about them in brief. Types of Taxable Income Here are the types of taxable income: Gains on Capital These gains are income created by assets you own. It involves selling real estate, bonds, and stocks, among other things. Firm/Sales Profits You must declare any money earned from specific firms and investments. This includes any rental money from assets that you own. The rental tasks you receive are the same whether they are the result of a business or if you earn them for profit. Keep in mind that you may be able to report the rental expenses, which may offset the money you get. Profits from Partnerships The IRS does not tax these firms. Still, all revenue, deductions, and losses derived from them are passed on through partners. As a result, the partnership pays no taxes. You must report any pass-throughs on your yearly tax return if you are a partner. This must happen, although the pass-through does not directly relate to you. Profit on Investments This income is taxed. Taxable income includes earnings from a fixed deposit, bonds, debenture interest, dividend income, and rental income from real estate. Many Taxable Earnings This includes alimony, pensions earned after the loss of a pensioner, income from hobbies, gambling, and lottery gains, and profits from winning in game shows, among other things. Employee perks This type includes earnings from the boss. Salaries, wages, pensions, bonuses, perks, and so on are all included. What is Non-Taxable Income? Tax-free or non-taxable income is income you get that is not taxable. If you receive taxable income, be ready to pay both federal and state taxes based on where you reside. The following are the five principal types of earnings that are tax-exempt: Types of Non-Taxable Income These are the types of non-taxable income: Agricultural Earnings This income is exempt from income tax under Section 10(1) of the Income Tax Act. People and HUFs, on the other hand, have an income that exceeds Rs. 5,000 added to the total income. This is done only to know the slab rate that will apply to the people’s other income. Other income, in this sense, refers to money derived from sources other than agriculture. As a result, agricultural income is not taxed, although disclosing the revenue raises the total income tax rate. Gifts Marriage gifts are excluded from income tax. Gifts from close family and relatives are likewise tax-free. Property tax given as a gift is also exempt. Child Support If you get child support payments, these are non-taxable income and shouldn’t be included with your taxes. Study Allowance It is tax-free if you get money to help pay for your education. Bonds and Certificates The interest generated on the tax-free investment bonds is tax-free. Other Sources of Income Other non-taxable income sources include leave and travel allowances, housing rent allowances, interest earned on savings bank accounts, and leave paid to retiring federal and state workers. Distinction Between Taxable and Non-taxable Income? The Internal Revenue Code defines taxable income as gross income with fewer deductions. Gross income is the total amount of money collected from all sources. This implies that you pay taxes on sources other than your salary, such as investments. Since the IRS is unconcerned with how you receive your money, taxable income is vast. You must pay taxes even if your firm is unlawful. However, the IRS considers other forms of income to be nontaxable. The agency will not tax the clearly defined non-taxable income. That is why you need not be concerned about including it in your tax filings. Knowing non-taxable versus taxable income is one of the most vital aspects of taxes. You’ll find the process simpler if you’re also aware of the changes to watch out for while paying taxes. It would be helpful to learn about many sorts of taxable and non-taxable incomes, whether you pay taxes as an individual or as a firm. [B-02] Conclusion Income is any payment you make in exchange for offering a service. Without a doubt, money is the most common kind. But most people are unaware you have other income sources, such as in-kind goods and services. And also, these are all taxes. Learning what to include will help you file your taxes with ease. Use the tips and advice above to make sure that you assess and disclose your taxable income to prevent any issues. And if you are still confused about your taxable and non-taxable income, visit Piramal Finance and explore the products and services.

08-11-2023

Personal Loan

How Do Banks Review a Personal Loan Application?

You can use the money you borrow from a personal loan application to pay for anything—from a long overdue home rebuilding project to urgent medical expenses, a new start-up, a much-needed vacation, or anything at all. However, the outcome of your application for a personal loan from a bank depends on the results of the client verification process. We’ll examine the several criteria that banks use to evaluate a borrowers’ applications for personal loans. [B-01] Points Reviewed by Banks Before Approving a Personal Loan Application Here are certain factors that can influence the result of your personal loan application. Credit Score Your credit score is crucial for the approval of a personal loan. It helps lenders track your creditworthiness. The credit score depends on how the user has previously managed their credit. The thumb rule is that the higher the credit score, the better the chances of getting the loan approved. If the payment record is good, then loan approval is easy. Repayment Schedules Lenders prefer shorter repayment cycles or loan terms. A shorter payback period means that the lender can get the loan back quickly. However, the payback period should not be too tight. It might make your EMIs unrealistic. Personal Loan Documentation All necessary papers, like your PAN card, photo ID proof, address proof, and financial records, should be in order at the time of applying for a personal loan. The loan officer will verify them. If there is any issue with the documents, your loan application will likely be rejected. Employment Background A borrower with considerable work experience will have the edge over a new hire. While getting the loan, a new startup may face some issues compared to a successful business owner. Also, an application from a freelancer has a higher chance of getting rejected as compared to one from a salaried employee, especially a government sector employee. How to Apply for a Personal Loan Online? Banks always ensure it’s easy and quick to get a personal loan. You can stay at home and still get all the money you need with the help of online personal loan login. All you have to do is follow the steps below to log in to the bank’s website and file a personal loan application: Visit the lender’s website for an online personal loan. Click on the personal loan section. Select “Apply Now.” Choose whether you are a salaried or self-employed person. Fill in your personal information. Choose the loan amount and tenure. After that, you will need to upload the required documents. This includes your PAN card, Aadhaar card, proof of address, proof of income, most recent pay stub, most recent three months’ bank statements, and degree certificate. The loan application will be reviewed by a team of experts at the bank or NBFC. Once the personal loan is approved, the money will be sent to your bank account. Advantages of a Personal Loan Application Here are some advantages of obtaining a personal loan. Quick & Easy Personal loans can help you save time and effort. You can use the personal loan login facility online and apply for it from the comfort of your home. You can get the money in a few hours or days. Personal loans can be used right away. You must fill out a loan application and show proof of identity. The lender looks at your credit score and credit history. If the loan is approved, the lender puts the money into your bank account. The process is very simple and quick. There’s no need to go to the bank when you need cash quickly. No Security Required Personal loan applications don’t require collateral, and you can obtain a loan up to Rs. 30 lakh. It is an unsecured loan that you can secure without much hassle, unlike other loans. No Limitations on Use A personal loan can be used for various financial needs. This is because they are flexible and easy to get. For example, you could use them to buy the newest phone or fix your house. When you login for a personal loan online, the application doesn’t ask you why you want it. So, you can use the money for more than one thing. For instance, you could use some of it to buy a new bike and use the rest to pay for your next trip. The choice is up to you. Minimal Paperwork Personal loan applications require minimal documentation. Your credit score and credit history mainly determine if you can get one. If your credit score is good, you can easily get a loan for a large amount. Getting a personal loan is much easier than getting a business or home loan. Hence, you can apply for a personal loan online and not worry about being turned down. Affordable Interest Rate Depending on your credit history and the loan amount, you may get a good interest rate on a personal loan. You have nothing to worry about if you have a steady income, a good financial situation, and a high credit score. You can get a low-interest loan, making it easy to fit it into your budget. Settlement terms are flexible and can be extended for up to 60 months. This gives you plenty of time to pay off your debt. It can be a good way to get money in an emergency or make your dreams come true without any debt. [B-02] Conclusion Personal loans are a great choice for many people. It offers instant relief from your financial crunch and helps you save time, money, and effort. You can even combine multiple loans into one with lower interest rates. The best part is that you can use a personal loan for any purpose, whether home improvement or buying a new car. Apply today. For more assistance, login for a personal loan on Piramal Finance! Get loans at an attractive interest rate and repay them at your convenience.

08-11-2023

Business Loan

What Credit History Is Considered for a Small Business Loan?

A small business loan usually involves a lengthy application process. The lender you work with and the kind of loan you want will both have different requirements. To be eligible for a business loan, you must typically have a minimum credit score. Credit scores allow lenders to assess the risk involved with lending money to a person as well as the credit history of the borrower. Lower credit scores could make it harder for business owners to get the loans they want. In light of this, let’s take a look at the various credit scores needed for small business loans. [B-01] How to Get a Business Credit Score Many business owners are unaware that their firm can have a separate credit score from their personal one. To get a business credit score, the company must be recognized as distinct from you. The simplest way to do so is to get an Employer Identification Number (EIN) from the IRS. Business credit scoring agents will track your company’s credit history once you’ve been assigned a number. Why Credit History is Important to Apply for Small Business Loans Having all of this data in mind, you may be asking why, in the first place, your credit score is so crucial when asking for business loans. Throughout the small business debt insurance process, lenders assess the lender’s risk. It includes the chance that the client will not repay their loans. Many aspects, such as a firm’s inexpertise or low income, might imply potential risk. So, how does your credit rating factor in? Your credit score is a history of your economic activity. So, if you’ve been unable to settle your loans on time in the past, it’s a safe bet that you won’t be able to return your firm bills and loans on time. In contrast, if your personal fiscal history is mostly flawless, there’s a strong chance you’ll also keep track of your firm’s finances. Of course, you may have a business credit score as well. Personal credit scores are often more vital to lenders. Also, high personal and business credit ratings can help you qualify for a low interest rate. How Does Your Personal Credit History Affect Your Eligibility for a Small Business Loan? Most small businesses will lack a separate, credible, and well-established business credit score. At that moment, lenders will use your personal credit history as a proxy for your firm. A higher personal credit score will increase your chances of being approved for a loan. It also affects your loan term, EMIs, and the interest rate charged. Your personal credit score is also crucial for secured and unsecured loans. You may be able to apply with a lesser credit score if you provide a personal guarantee as collateral. You can get a loan without collateral as well. However, it will cost you more in terms of interest. So, you will need a high personal score to secure the desired loan. Minimum Credit Scores for Small Business Loans Here’s how your credit score affects your chances of getting a small business loan. Remember that this is only one of many factors considered by lenders during the approval process. A credit score of 550 or lower When the owners of a small business have credit scores in this range, most lenders will deny offering them loans. In some of these cases, you have to be eligible for a loan from a specialized lender. But the interest rates will most likely be very high. You may also be able to obtain merchant cash advances or invoice financing. But, do your research and proceed with caution as always. A credit score between 550 and 600 Your small business loan might not be approved by most banks at this point. The interest rates will still be high even if they do or if you have access to alternative lenders. A credit score between 640 and 700 This is still too low to meet the criteria for most banks’ loans. There are a lot of lenders available to you who might offer you a loan. But the interest rates will still be higher than they would be for traditional loans. A credit score between 700 and 750 Here is where you can simply apply for traditional bank loans and SBA loans. Most financing options are still available. But, you will usually need considerable documents and proof of your company’s ability to pay. Also, you might still find yourself on the high side of interest rates. A credit score of 750 or higher With low-interest rates and useful repayment terms, you’re in the best possible position. With this high credit score, you will be able to obtain affordable financing. Minimum Credit Scores Needed by Various Lenders The minimum credit scores needed by distinct groups of business lenders are listed below as a quick reference: A traditional bank needs a personal credit score of 680 or higher to grant a loan to your small business. To qualify for a loan from the Small Business Administration, you must have a personal credit score of 680 or higher. A personal credit score of 630 or higher is needed for many loans to buy vehicles, equipment, and other assets for businesses. For short-term loans from highly specialized alternative lenders, you need a personal credit score of at least 600. You must look for very specialized lenders if your credit score is below 600. The interest rates will be high. But, you may still be able to access merchant cash advances or invoices at this level. [B-02] Conclusion Don’t be afraid if you don’t have a business credit score. The vast bulk of small business loan requests will favor your personal credit score over your firm’s credit score. If you’re asking for an SBA loan or a bank term loan, you’ll simply need to produce a firm credit score. Visit Piramal Finance for more blogs on business loans and to take a look at their products and services.

08-11-2023

What Happens if I Break My Fixed Deposit Before Maturity?

Are you looking to save or invest money? If yes, a fixed deposit is a great option. It is simple to start and provides competitive FD interest rates. To lay it out, the investor deposits a lump sum into their FD account for a certain period at a predetermined interest rate. After the term, the investor can withdraw the principal plus interest. So, Fixed Deposits are also known as term deposits. When we are short on cash, one of the first things we do is break the FD. While this might seem like a good idea, it often is not. This article will help you decide whether it’s smart to cash out your Fixed Deposit before maturity. We have outlined the potential consequences and some alternatives as well. [B-01] Why it’s Not a Good Idea to Foreclose Your Fixed Deposit Account? Many account holders prematurely break their FD for various reasons. It could be due to a liquidity crisis or reinvestment for a higher return. Although it is a common practice, it might not always be a good idea. Here’s what happens when you close your Fixed Deposit account prematurely. Reduced Interest Rate Premature withdrawal results in a reduced FD interest rate and a penalty. For instance, let’s assume you have opened a 7% one-year fixed deposit. If you withdraw money after ten months, there will be a reduction of 1% on the income received on your fixed deposit. So, instead of getting 7%, you will receive 7% minus 1%, which amounts to 6%. So, your expected rate of return will be considerably lower than the possible return at the time of maturity. Penalty There is a penalty for early withdrawal of FD that results in a lower FD interest rate. It is typically between 0.5 and 1% of the interest rate. Fixed Deposits that include a sweep-in feature and recurring interest payouts will incur penalties. As a result, your return on the Fixed Deposit will be quite poor. The penalty can change over time as financial institutions update their policies. Disrupted Guaranteed Growth In an uncertain financial market, a Fixed Deposit offers a guaranteed return. You know you will not lose that money, even if the return might not be as lucrative as stocks. When you prematurely close your FD account, you lose that guaranteed growth and the possible return. That’s why we keep saying that closing your Fixed Deposit account before the term is over is not a good idea at all. Instructions for Making Premature Withdrawals from a Term Deposit To foreclose on a portion of a fixed deposit, the investor might choose one of these options. Either choose a fixed deposit foreclosure or a partial withdrawal. Foreclosing on a fixed deposit incurs a small penalty. Nonetheless, the depositor’s account gets credited instantly. When making a partial withdrawal, investors can take out a smaller percentage of their fixed deposit’s total value. The withdrawn sum would be deposited into the investor’s savings bank account, and the remaining amount would accrue interest just as it would have if still invested. To cash out the fixed deposit before its maturity date, you can do it in one of two ways: online or offline. Offline process: To cash out a fixed deposit before its maturity date, an investor needs to take these actions: Gather your supporting materials, like your Fixed Deposit certificates and proof of identity. The next step is to visit the bank’s home branch where you opened the FD account. Fill out the form for closing a fixed deposit account and return it to the bank officer. The bank’s representative will walk you through the steps necessary to foreclose on the fixed deposits. The money will get into your account when your fixed deposit is closed. Online process: Each financial institution has its own unique foreclosing fixed deposit method. You must have the internet banking service activated to close a fixed deposit online. Some banks don’t offer online account closing services for FD. In that case, you will have to visit your home branch. Alternatives to Breaking Fixed Deposits in an Emergency Other alternatives to breaking fixed deposits exist to meet urgent financial obligations. Here is a list of some of them: Instead of a fixed deposit, use a credit card. Many Indian banks, including SBI and SBM Bank (India) Ltd., need a minimum fixed deposit amount of Rs. 25,000 or Rs. 12,000 to make you eligible for their credit card rewards programs. Financial security is a condition for receiving one of these cards. Establishing a great credit history is another benefit of using these cards. You can get a loan on your fixed deposit account for quick cash. You can raise up to 90% of your available fixed deposit account balance. The interest rate on this loan is also often lower than that of a standard loan. A bank can use your predetermined amount as collateral instead of your credit score. You can invest smaller funds in multiple fixed deposits. This way, you can spread out your deposits and not depend on any one source. [B-02] Conclusion It can be helpful to break the fixed deposit if you locate a reinvestment opportunity or have a liquidity issue. You need to do the calculation to determine whether the alternative investment’s returns are greater than your fixed deposit return after factoring in the penalty and the lower return. If you’re wondering when you should cash in your fixed deposit, it’s better to do so while it’s still new, like a few months after you created the fixed deposit account. You can get more details on FD on the site of Piramal Finance.

08-11-2023

Cards

What Happens if I Pay Only the Minimum Amount Due on My Credit Card Bill?

Two numbers stand out when you get your credit card bill at the end of your monthly period. The first is the total sum owed, while the second is the minimum payment that you must make. Ideally, you must pay the credit card bill online for the full sum owed. But, if you find it tough to pay off your credit cards each month, credit card companies want you to pay the bare minimum sum. Firms need this in order to keep your account open. So, let’s go into the facts of what this minimum credit card payment is and if it benefits or harms you. [B-01] What is a Minimum Credit Card Payment? The minimum sum due on your credit card is the sum you must pay the credit card bill online by the due date. It is a small portion of the outstanding balance each month. The minimum payable sum is normally 5% of the entire due amount on your credit card. However, it could be more if – You used your credit card to make an EMI payment. You went above your credit limit. You have not paid off your prior month’s dues. The unpaid sum will be added to the present amount. What are the Benefits of Just Paying the Bare Minimum? Paying simply the bare minimum provides the following advantages: It assists you in avoiding a late payment cost. Allows you to better handle your money, notably during a financial crisis. Handles your account without the credit card companies reporting it as unusual. It has no effect on your credit score. Why is Paying the Minimum Due on a Credit Card Not a Smart Idea? If you feel that paying merely the minimum due each month will help you pay off your credit card debt, you are mistaken. Paying the minimum required payments will lower the sum owed for the current month. Yet if you carry on making minimum payments, your debt will be far from paid off. Even if you opt not to make any further purchases until you have paid off your debt, if you merely make the minimum payments, your debt will not be reduced. Instead, it will rise. This is due to the fact that the credit card is a revolving loan. Every day, interest is charged to your outstanding balance. You might quickly and unwittingly get into a debt trap if your funds are not well managed. How Do Minimum Credit Card Payments Work? A minimum payment is a minimal sum that you must pay towards your credit card each month on your credit card debt. To be deemed “on time” and prevent late fees and other fines, you must pay at least this sum. Certain lenders may even raise your interest rate if you make a late payment. Your minimum payment is usually set as a percentage of the due debt or as a fixed monetary sum. It is normally between 1% and 3% of the existing amount on your credit card and covers any fees and interest. In general, if your entire debt is affordable, you must pay the credit card bill online in full to prevent the accumulation of interest. It’s vital to know your credit card company’s minimum payment rules since they differ. Is it Okay to Keep Paying the Minimum Due Every Month? It is critical to pay at least the minimum amount due each month to keep your card active. However, it means you will have to pay high interest charges, and there will be no interest-free credit period. Credit card debts are expensive, and you must pay the credit card bill online in full each month. For times when there’s a financial contingency or cash crisis, you can just pay the minimum due that month. It will prevent late payment charges and your credit score from being adversely affected. Just make sure this is a short-term arrangement and not a habit. Reduce your spending and apply the excess money to your credit cards in case of a constant cash crunch. You might also look for other ways to boost your income, such as working part-time or seeking freelancing jobs. Applying for an online repayment plan can also assist you in selecting which credit cards to actively pay off first. The avalanche strategy, for example, directs your focus to the banks with the greatest lending rates. You may also use the “snowball” strategy, which suggests starting with the card with the lowest credit. If money is tight and you are having trouble making minimum payments, contact your credit card company to explain your situation. They may give you a payment plan, like converting it into EMIs, if you’re having money issues. Credit counseling is another option for people experiencing trouble making payments after applying for a credit card online. Non-profit groups that educate you on good money management skills often give this service for free. They may also assist you in building a debt management strategy to pay the credit card bill online. [B-02] Conclusion Credit cards offer great rewards and perks. They are one of the finest financial tools to get rapid access to finances, but only when used wisely. Many banks provide different sorts of credit cards. Each comes with its own set of rewards and bonuses based on your particular needs. If possible, paying more than the minimum payment on your credit card may save you a lot of money in interest and help safeguard your credit rating. Even better, settling your debt in full will assist you in avoiding paying any interest and maintaining a low usage ratio. Visit Piramal Finance for more blogs on loans and to take a look at their products and services.

08-11-2023

Income tax return

What is Advance Tax Payment? How and When to Pay Advance Tax

When income tax is paid ahead of the due date, it is said to be paid as “advance tax” for the relevant fiscal year. The payer must still provide a full-year income forecast under advanced tax laws. Under advance tax regulations, the payer has to give a full-year income projection. Further, the tax is paid at certain periods depending on the estimation above. To determine whether advance tax payments are required and, if so, how much, the taxpayer must estimate their income and then compute the expected tax on that amount. [B-01] What is Advance Tax Payment? Advance tax payments are due on or before the due dates established by the Income Tax Department. Since payments are made throughout the fiscal year, “pay as you earn” tax is another name for advance tax. According to the I-T Department, the government now accepts advance tax payments at any branch of several banks. You can make advance tax payments online and offline by following the procedure below. Online Advance Tax Payment Procedure After accessing the Income Tax Department’s online payment gateway, please proceed as follows: Make your choice for the kind of tax that applies here: (0020) Corporation Tax. Select “(100) Advance Tax” as your payment type. You choose the month of payment that works best for you. Fill in the required fields with your PAN, email, assessment year, phone number, and address. Click the “Proceed” button. Once you’ve done that, the website will take you to either the payment gateway or the net banking page, depending on how you choose to pay. Make the payment. Always keep duplicates of the challans you use to make payments if you need to reference them when submitting your business’s ITR. Offline Advance Tax Payment Procedure Please visit any participating bank branch to get a copy of the tax payment challan (Challan 280). Please complete this form to the best of your ability. The information requested on the form is identical to its electronic equivalent. Carry the completed Challan 280 form and the cash to the teller counter of the right bank. You pay your taxes with cash or a check. After you hand over your cash and challan, a bank employee will rip out a section of the challan, fill in your payment information, and stamp it as proof of payment. If you pay your taxes in advance, whether electronically or in person, you should retain your receipts securely as evidence of payment. It takes ten days for the change to appear on your Form 26AS. “Part C—Details of Tax Paid” on Form 26AS is where you should provide your tax payment information. Advantages of Paying Advance Tax There is less strain on taxpayers when taxes are paid in advance. People might save stress and financial hardship by making tax payments in advance. It shortens the time spent collecting taxes. If the government can generate interest on the money it collects, it will have more money available for spending. People who pay their taxes in advance are less likely to fall behind on their obligations. It’s useful for financial planning and gives firms a feel for their annual earnings. Who Must Pay Advance Tax? You must meet the following requirements to be eligible for advance tax payments: You need to have a tax bill of at least Rs. 10,000. It would help if you were either a wage earner or the owner of your own business. Profits from stock sales are taxable income. The return on savings deposits. Winnings received from a lottery. Rental income. Income from other sources. Which Tax Forms to Submit? Challan No. ITNS 280 must be submitted by the due dates specified. Challan No. ITNS 280 requires the following to participate: The full PAN specifics Please be sure to post the correct PAN data. Otherwise, your tax payments are credited to the wrong account. Assessment year The tax payment is being sent out ahead of time for the future fiscal year, so be sure to choose the right assessment year for which the tax is due. Choose your preferred method of payment The taxpayer is responsible for selecting the appropriate payment method. The term “advance tax” describes a situation in which taxpayers pay their tax liability before the end of the current fiscal year based on their expected yearly revenue. This kind of tax is known as self-assessment tax and is due if the payment is made after the fiscal year ends. A CIN number will be issued upon successful payment. You will need this CIN to file your tax returns, so write it down. Finally, double-check that the IT department has indeed obtained the ITNS 280 online payment. Who Needs to Make Advance Tax Payments? If your annual tax bill is $10,000 or more, you must make an advance tax payment following Section 208 of the Income Tax Act. In the case of FY 2019-2020, if your tax burden is expected to be more than $10,000, you will be obliged to make an advance tax payment in the current year. Those with income from sources other than a regular wage must pay taxes in advance. Your annual income must be greater than the threshold for professionals, self-employed individuals, and businesspeople. Earnings from stocks and bonds, interest from savings and checking accounts, rent, and other sources of rental income all count. Those above 60 do not have to pay the advance tax. Advance Tax Payments: Exemption People aged 60 and older are exempt from the advance tax payment requirement. Those who receive a salary and fall within the TDS net do not need to submit an advance tax payment. Non-wage income, however, is subject to taxation in advance. It includes interest, rent, capital gains, and other forms of investment income. The need to pay the advance tax is waived if the amount of TDS deducted is greater than the amount owed for the year. [B-02] Conclusion Individuals with income from sources other than a regular paycheck must make advance tax payments. It includes income streams such as rent, stock appreciation, interest on savings accounts, lottery wins, etc. You pay for it at certain banks or online. Income tax for a certain fiscal year paid in advance is referred to as “advance tax.” Generally, taxes are expected to be paid when a corresponding income is received. Nonetheless, the tax laws of the advance tax require the payer to provide an annual income forecast. You can also go through the website of Piramal Finance to clear all your doubts.

08-11-2023

Schemes

Steps to Fill Out an NPS Application Online to Avoid Any Delay

Investment has become the buzzword of the twenty-first century. There are various short-term and long-term investment schemes in the market that yield higher profits. And out of many such long-term investment schemes, the NPS scheme is one viable option. The goal of the National Pension System (NPS) is to give members greater control over their financial destinies by encouraging them to save regularly during their working years. [B-01] What is the National Pension Scheme, and what is its goal? The National Pension System is an initiative by the government to ensure social security among the retired class. It is a long-term investment scheme that allows you to invest regularly to build a corpus and get a salary after your retirement. The goal of the National Pension System is to instill the habit of saving money each month for a comfortable retirement. This is a long-term approach to ensuring that all Indians have access to a secure retirement fund. The PFRDA authorizes professional fund managers to invest in government bonds, bills, corporate debentures, and shares following the permitted investment conditions. The rate of return on the selected assets would determine the growth and accumulation of these payments over time. When regularly withdrawing from the National Pension System, members can take a portion of their earned pension savings as a lump sum or use it to purchase a life annuity from a PFRDA-authorized life insurance company. The Pension Fund Regulatory and Development Authority established the National Pension System (NPS) in 2004 for people to save money for their retirement (PFRDA). A National Pension System account can be opened by anybody between 18 and 60 interested in starting to save for retirement. An online guide to joining the NPS Citizens can sign up for a voluntary social security program called the National Pension System (NPS) online in the United Kingdom. In this case, the Pension Fund Regulatory and Development Authority (PFRDA) is in charge. It’s meant to be a pension system for those nearing retirement. How do you verify the amount in your NPS account? Finding out how much money is in your NPS account is easy. You can access your NPS account balance online through the web interface or the NPS tax benefit through apps for Android or iOS. Both your PRAN and your password will be required to sign in. After signing into your NPS account, viewing your available funds is a breeze. Step-by-step guide to funding your NPS account online Your NPS account can receive online deposits via either the National Pension System website or the NPS mobile app, which is compatible with Android and iOS devices. If the subscriber opens an online NPS account, they can fund it through various payment methods, including net banking, debit card, and credit card. Both of the online ways can be used to put money into Tier 1 and Tier 2 NPS accounts. If you visit the website of the NSDL, you will be able to access the details of your National Pension System account over the internet. If you are an individual subscriber to the NPS, you may access the Subscribers-NPS Link by clicking the Login button located in the website’s upper-right corner. Use the Registered User’s Regular link at the top of this page to enter the NPS. You can access your NPS account by entering your Permanent Retirement Account Number (PRAN) and password in this space. After successfully connecting to your National Pension System account, you can access your NPS account statements. These statements include information regarding your account activities (including your Tier 1 and Tier 2 contributions and withdrawals) and your holdings in the National Pension System. Downloadable versions of the NPS account statements may be obtained by selecting the “Transaction Statement” option, which furthermore grants access to the “Holding Statement” and the “Transaction Statement.” You will then receive an email with your NPS Tier 1 and Tier 2 account balances, and you will also be able to view them via a statement that can be downloaded from the website. You will get an electronic statement of your National Pension System account regularly. This statement will detail all transactions, including deposits and withdrawals, that have occurred during the relevant period. How to let the frozen state of your NPS account melt? Your account may be “frozen” if you do not contribute a minimum of one thousand dollars to Tier 1 of the National Pension System throughout each fiscal year. If you pay the $500 fine, your National Park Service account will be unfrozen for the remainder of the fiscal year (either offline or online). As a point of clarification, this punishment is in addition to the mandatory annual minimum contribution of $1,000 to NPS Tier 1. To get your frozen NPS account unfrozen, you will need to send an NCIS, which stands for an NPS Contribution Instruction Slip, to one of the permitted POP-SPs (Point of Presence – Service Providers). POP-SPs are the entities that have been delegated the responsibility of collecting contributions from members of the general public on behalf of the National Pension System. To complete the NCIS form, you will need your PRAN and payment details (cheque or DD number). To have your NPS account unfrozen or activated, you can make any nps online pay in the form of cash or checks. [B-02] Conclusion The goal of the NPS is to help its members save regularly throughout their working years so that they may retire with more security and autonomy. The goal of the National Pension System is to help individuals establish a pattern of saving a little money each month for their retirement. Our plan considers the big picture to ensure that all Indians have access to a secure retirement fund. Piramal Housing Finance may help you reach it!

08-11-2023